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18 June 2024 | 01:09

Industry >> Mining/Minerals

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ISIN No INE584A01023 BSE Code / NSE Code 526371 / NMDC Book Value (Rs.) 87.60 Face Value 1.00
Bookclosure 27/02/2024 52Week High 286 EPS 19.02 P/E 14.00
Market Cap. 78056.69 Cr. 52Week Low 104 P/BV / Div Yield (%) 3.04 / 2.16 Market Lot 1.00
Security Type Other


You can view full text of the latest Director's Report for the company.
Year End :2023-03 

The Directors are pleased to present the 65* Annual Report on the performance of your Company, together with the Audit Report and Financial Statements for the year ended 31 * March 2023 and the Report thereon by the Comptroller and Auditor General of India.


During the year under review, the Company has recorded turnover of Rs.l 7,667 crores, achieved Profit Before Tax (PBT) of Rs. 7,637 crores and achieved Profit after Tax (PAT) of Rs.5,529 crores.

The major performance highlights are summarized as under:-

•    The company achieved production of 40.82 MT and sales of 38.22 MT.

•    Turnover for the year under review was

Rs.l 7,667 crores as against Rs.25,965 crores in the previous financial year 2021 -22 - a decrease of 32%.

•    Profit before tax (PBT) from continuing operations (before exceptional income) was Rs.

6,399 crores compared to Rs. 13,022 crores in the previous financial year 2021-22- a decrease of 51 %.

•    Profit before tax (PBT) after exceptional income was Rs. 7,637 crores compared to Rs. 13,022 crores in the previous financial year 2021 -22- a decrease of 41 %.

•    Profit after tax (PAT) was Rs.5,529 crores compared to Rs.9,448 crores in the previous financial year 2021 -22 - an increase of 41%.

•    Net worth of the Company stood at Rs.22,332 crores as on 31.03.2023 - 25% higher than the previous financial year 2021-22 to Rs. 17,875 crore.

•    The Company declared an Interim Dividend of Rs.3.75 per share and Final Dividend of Rs.

2.85 per share for F.Y 2022-23.

•    Capital expenditure of Rs.3,747 crore (including Rs.2,283 crore for Nagarnar Steel Plant) has been incurred during the year under review.

•    The demerger scheme of arrangement between NMDC Limited ("Demerged Company" or the "Company") and NMDC Steel Limited (NSL)

{"Resulting Company") and their respective shareholders and creditors (the "Scheme") pursuant to the provisions of Sections 230-232 of the Companies Act, 2013 ("Ad"), other applicable provisions and rules thereof thereunder (hereinafter referred to as the "Scheme"), involving demerger of NMDC Iron & Steel Plant Business Undertaking ("Demerged Undertaking" or " NISP") from Demerged Company to the Resulting Company has been duly sanctioned by the Ministry of Corporate Affairs ("MCA") vide its order dated 6th October 2022 ("Order"). The Company received the Order on 11th October 2022 and filed the same with the concerned Registrar of Companies on 13* October 2022. Hence, the Scheme is operative from 13th October 2022 (Effective Date). The Appointed Date of the Scheme is 1** April 2021.

(B) Scheme of Arrangement between NMDC Limited and NMDC Steel Limited and their respective shareholders and creditors (Demerger of NISP).

The Board of Directors at its 532nd meeting has infer alia accorded in-principle approval for demerger of NMDC Iron & Steel Plant (NISP), Nagarnar.

A 100% subsidiary company by the name NMDC Steel Ltd. having its registered office at Nagarnar, CG was incorporated on 02.01.2015 as a

Private Limited Company. The transfer of NISP was envisaged of a scheme of demerger into NMDC Steel Ltd.

The Board of Directors at its 539'h meeting held on 13.07.2021 inter alia, approved pursuant to the provisions of Section 230 to 232 of the Companies Act, 2013 and Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 and other applicable provisions, if any, of the Companies Act, 2013, and / or any statutory modification(s) or re-enactment thereof to the Scheme of Arrangement between the Company and NMDC Steel Limited and their respective creditors and shareholders, entailing infer-alia demerger of the Demerged Undertaking (as defined under the Scheme) of the Company into Resulting Company on a going concern basis, as per the terms and conditions mentioned in the Scheme.

Rationale for the Scheme of Arrangement

Government of India has charted a road map to augment India's steel production to 300 MTPA by 2025. To fulfill this vision, green-field steel plants are being promoted through Special Purpose Vehicles ("SPVs") in mineral rich states of Chhattisgarh, Jharkhand, Karnataka and Odisha. It has been envisaged that the SPY being set up at these states would act as a facilitator and developer for the steel plant. It would acquire the required land, obtain statutory clearances for setting up the plant, organize

water & power allocation for the site, along with dedicated raw material supply agreement. On completion of the above activities, the SPV would invite for suitable investor/s, who would construct, develop and operate the steel plant.

As part of expansion, value addition and forward integration programme, and also in consonance with the desire of the Government of India and Government of Chattisgarh, NMDC Limited is setting up a 3 MTPA capacity Greenfield integrated steel plant ("NMDC Iron & Steel Plant" or "NISP") at Nagarnar, located 16 km from Jagdalpur in Chhattisgarh State.

The decision to construct the NISP was taken keeping in view with linkage with iron ore reserves and availability of investable surplus. NISP has progressed significantly further than the other Steel SPVs. The only difference is that NISP is being developed and constructed within NMDC Limited as opposed to being developed in an SPV. Also, NMDC Vision 2025, whilst mentioning forward integration has specifically stated that its role would be that of a developer for steel plants and at suitable time invite investors to commission and operate the plants. NMDC is therefore considering proposed scheme to add more value to Company's stakeholders by demerging NISP into separate company and subsequently inviting investor.

To this effect, in October 2020, the Cabinet Committee on Economic Affairs gave its 'inprinciple' approval to the demerger of NISP from NMDC Limited and strategic disinvestment of the NMDC Steel Limited by selling entire Government of India stake in the NMDC Steel Limited to a strategic buyer.

1    Accordingly, to achieve the above objective, the Board of Directors of the NMDC Limited decided to make requisite applications and/or petitions before the Ministry of Corporate Affairs, Government of India under Sections 230 to 232 of the 2013 Act (hereinafter defined) and other applicable provisions for the sanction of the Scheme.

2    Joint Petition dated 18.01.2022 between NMDC Ltd., (Applicant / Demerged Company) and NMDC Steel Ltd. (Applicant /

Resulting Company) was filed before the Ministry of Corporate Affairs, Govt, of India vide File No.24/l/2022-CL-lll u/s 230 - 232 of the Companies Act, 2013 read with Govt, of India, Notification No.GSR.582(E) dated 13.06.2017. Pursuant to an application by the Authorized Signatories of both the companies.

3. The Demerged Company M/s NMDC Limited

and Resulting Company M/s NMDC Steel Limited

broadly prayed for relief (s) as detailed below: -

(i)    To give directions for convening the meeting of the equity shareholders of the Demerged Company, to consider and, if though fit, to approve, with or without modifications(s). The Scheme of Arrangement between NMDC Ltd. and NMDC Steel Ltd. and their respective shareholders and creditors (the Scheme)

(ii)    To dispense with the requirement of convening the meeting of secured creditors of the Demerged Company

(ii)    To give directions for convening the meeting of the unsecured creditors of the Demerged Company to consider and, if thought fit, to approve, with or without modifications(s),

(iii)    To dispense with the requirement of convening the meeting of equity shareholders of Resulting Company.

(iv)    To dispense with the requirement of convening the meeting of the unsecured creditors of the Resulting Company.

(v)    Directing issuance of notice of meetings of equity sharehodlers and unsecured creditors of the Demerged Company.

(vi)    Directing publications of advertisement of the notices of the meeting of the equity shareholders and unsecured creditors of the Demerged Company in the newspapers namely Times of India (English Edition),

Dainik Bhaskar (Hindi Edition) and Eenadu (Telugu Edition)

(vii)    Directing service of Notice of the application on the Regional Director (South East Region), Regional Director (North Western Region) Registrar of Companies, Hyderabad,

Registrar of Companies, Chhattisgarh and Jurisdictional Income Tax Department.

4.    MCA after considering the prayers and submissions made by the Resulting Company, directed that the meeting of equity shareholders of the Resulting Company is dispensed with since the Resulting Company has furnished the requisite consent affidavit(s) of all the equity shareholders.

5.    The Demerged Company submitted that there was only one secured creditor as on

30.09.2021 in the name of State Bank of India and the said Bank has furnished its consent affidavit for the proposed scheme. Hence, the meeting of secured creditor of the Demerged Company was also dispensed.

6.    The Resulting Company submitted a certificate from an independent Chartered Accountant stating that there are no/nil secured creditor as on 30.09.2021. With regard to the unsecured creditor, the Resulting Company has furnished a certificate from an independent Chartered Accountant stating that there are two unsecured creditors as on 30.09.2021 and both the unsecured creditors of the Resulting Company have furnished their consent affidavit to this ministry. Hence, the meeting of the secured and unsecured creditors of the Resulting Company was also dispensed.

7.    Pursuant to the Ministry of Corporate Affairs

Order dated 11.04.2022, a meeting of the Equity Shareholders of the Demerged Company was convened on 07.06.2022 for considering the Scheme of Arrangement and Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, Government of India was appointed as the Chairperson of the Equity Shareholders meeting. Due to unforeseen circumstances (unavailability of Chairperson) and due to unavailability of quorum, the meeting was adjourned to 28.06.2022.

8.    Pursuant to the Ministry of Corporate Affairs Order dated 11.04.2022, a meeting of the unsecured creditors of the Demerged Company whose debt is of a value more than rupees one (1) crore as on 30.09.2021 was convened on 07.06.2022 for considering the Scheme of Arrangement. Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, Government of India was appointed as the Chairperson of the unsecured creditors meeting. The meeting was duly convened on

28.06.2022 for seeking the approval of the unsecured creditors in the matter of Scheme of Arrangement.

9.    The Demerged Company, NMDC Ltd.

published the newspaper advertisement regarding the adjournment of the meetings of Equity Shareholders and Unsecured Creditors in Times of India, Eenadu and Dainik Bhaskar, stating the adjourned meetings to be

held on Tuesday, 28.06.2022 at the same time and through the same means (i.e. VC / OAVM).

10.    The meeting was convened on 28.6.22 for approval of the shareholders and Unsecured Creditors of the Company and the resolution of demerger was approved by both with the requisite majority.

11.    Chairperson of the meeting submitted the report as required under law to Ministry of Corporate Affairs, Government of India on 5th July, 2022 being the outcome of the meeting.

12.    The Second Motion Application was prepared and all the annexures to the application and petition were filed before the due date 12.7.22.

13.    The hearing in the demerger matter was fixed on 23.08.2022 and vide letter dated

01.08.2022,    the petitioner companies were informed about fixation of the date of the hearing in the matter and also directed to the petitioner companies to publish the notice of hearing in the newspaper in terms of Rule 16 of the Companies (Compromises, Arrangement and Amalgamation) Rules,

2016 and furnish a compliance report to this ministry. Further, it was also observed from the details of voting results of equity shareholders' meeting along with the Scrutinizers with the Scrutinizer's Report which was submitted to the Stock Exchanges on

30.06.2022 that there are 6,06,187 no. of equity shareholder as on the cutoff date i.e.

29.04.2022.    However, as per the email confirmation for sending the individual notice to the equity shareholders, the NSDL had confirmed that email communication was sent to 5,79,482 no. of equity shareholders on 05.05.2022. Hence, a clarification was also sought from the petitioner companies in the aforesaid letter dated 01.08.2022 regarding actual number of equity shareholders as on the cut-off date.

14.    Thereafter, the petitioner companies vide letter dated 10.08.2022 clarified that the total number of equity shareholders of the Demerged Company as on the cut-off date

was 6,06,187 which included 26,705 shareholders without email id. Therefore, the email communication was sent only to 5,79,482 shareholders, who were registered on NSDL/the depository through email address. Thereafter, this ministry also sought the comments of the petitioner companies as to why the individual notices were not issued to the 26,705 equity shareholders by speed post/ registered post etc. for convening the meeting of equity shareholders. The petitioner companies informed that notices could not be sent to 26705 equity shareholders of the Demerged Company as their email address were not registered with the Demerged Company. However, the notice of the meeting of equity shareholders was duly published in the newspaper on 05.05.2022 and the said notice clearly states that the members will be provided with the facility to attend and vote at the meeting through VC/OAVM through the, NSDL evoting system.

15. MCA vide its orders dated 06.10.2022 sanctioned the Scheme of Arrangement of M/s NMDC Limited (Demerged Company) and M/s NMDC Steel Limited (Resulting Company) under section 230-232 of the Companies Act, 2013. The Scheme shall be binding on the shareholders and creditors of the Demerged Company and Resulting Company and all concerned with effect from the appointed date i.e. 01.04.2021.

16 The broad contours of the scheme of demerger are briefly outlined as under:-

•    Appointed Date: April 01, 2021 ("MCA");

•    Effective Date: 13th October, 2022

•    Transfer of Demerged Undertaking:

Under the Scheme, the NMDC Iron & Steel Plant at Nagarnar, Chhattisgarh ("Demerged Undertaking") was demerged from NMDC Limited ("NMDC") into NMDC Steel Limited ("NSL"), which was earlier a wholly owned Subsidiary of NMDC;

•    Transfer of Assets and Liabilities: All assets and liabilities of the Demerged Undertaking, except certain assets/liabilities as specified under the Scheme, were transferred to NSL at

book value appearing in accounts of NMDC on the Appointed Date;

•    Consideration: As a consideration for transfer of Demerged Undertaking to NSL, NSL without any further application, act, instrument or deed, issued and allotted to all the equity shareholders of NMDC, whose names appear in the register of members as on the Record Date (defined below), 1 (One) equity share of NSL of INR 10 each fully paid-up for every 1 (One) equity shares held in NMDC of INR 1 each fully paid-up. No cash consideration was paid to NMDC on account of the transfer of Demerged Undertaking and related assets / liabilities. Accordingly, demerger of the Demerged Undertaking from NMDC into NSL was tax neutral on NMDC as NMDC did not receive any cash consideration;

•    Record Date: 28th October, 2022

•    Increase in Authorized Share Capital:

Upon the Scheme becoming effective, the authorized share capital of NSL automatically stood increased to INR 30,00,00,00,000 (Indian Rupees Three Thousand Crores);

    Cancellation of existing shares of NSL: All

the existing shares of NSL, currently held by NMDC, were cancelled;

•    Mirror Shareholding: After the Scheme becomes effective, the shareholding of NSL will 'mirror' that of NMDC; Accordingly, upon the scheme being effective, the issued, subscribed and fully paid-up equity share capital of the resulting company, NMDC Steel Ltd. shall be 293,06,05,850 equity shares of INR 10/- each to reflect the same / equal number of equity shares as NMDC and mirror shareholding pre the proposed demerger.

•    Listing: The new shares of NSL which were issued and allotted to the shareholders of NMDC were listed on BSE Limited, National Stock Exchange of India Limited and Calcutta Stock Exchange Limited, after obtaining the requisite approvals;

    Employees: All staff / workmen / employees engaged or employed in relation to

Demerged Undertaking as identified by the board of NMDC shall be deemed to have become staff / workmen / employees of NSL from the Appointed Date;

*    Shared Assets: NMDC and NSL shall enter into shared services agreements and longterm supply agreement, as may be necessary, on terms and conditions that may be agreed between the NMDC and NSL and on payment of consideration on an arm's length basis and which is in the ordinary course of business;

*    Costs, Charges and Expenses: All costs, charges, taxes including duties, levies and all other expenses, if any of NMDC and NSL, arising out of or incurred in connection with implementing this Scheme, shall be borne by NMDC;

*    Conduct of Business: From the Appointed Date and up to the Effective Date, NMDC shall be deemed to have been carrying on and shall carry on business and activities with respect to the Demerged Undertaking, for and on account of, and in trust for NSL.

The Scheme of Arrangement was filed with

National Stock Exchange of India Ltd, BSE Ltd

and The Calcutta Stock Exchange Ltd.

17.    Copy of the orders were received on

11.10.2022    by the NMDC Steel Ltd and NMDC Ltd. The Board of NMDC Ltd. on

13.10.2022    took on record the orders received from MCA. The Record Date being

28.10.2022,    List of eligible shareholders was obtained from NSDL and CDSL on


18.    Subsequently, the Board of NMDC Steel Ltd. on 08.11.2022 passed a resolution for allotment of equity shares subject to the conditions that approval of the Ministry of Steel, Govt, of India is mandatory as the increase in the Authorized Share Capital of the Company requires assent of the President of India.

19.    NMDC Steel Ltd. vide its letter dated

09.11.2022    formally applied to the Ministry of Steel seeking approval for increase in

Authorized Share Capital and completing the other formalities for credit of shares to the shareholders of NMDC Steel Ltd. as per the Record Date 28.10.2022.

20.    Ministry of Steel has in turn approached Department of Investment and Public Asset Management (DIPAM), Govt, of India,

Ministry of Finance vide their DO letter No.S-28016/1/2020-NMDC dated 18.11.2022 for enhancement of Authorized Share Capital and Paid-up Share Capital of NMDC Steel Ltd. upon its demerger from NMDC Ltd. DIPAM vide its letter dated 24.11.2022 have gave consent for the request to Ministry of Steel. Ministry of Steel vide its letter dated

01.12.2022 gave its consent for the request of enhancement of Authorized Share Capital and Paid-up Share Capital of NMDC Steel Ltd. upon its demerger from NMDC Ltd.

21.    Corporate Actions for credit of shares was taken up by NMDC Steel Ltd. with NSDL and CDSL on 05.12.2022. Physical share certificates, along with failed records and IEPF records was completed on 10.12.2022. On

31.12.2022,    in-principle approval was received from Bombay Stock Exchange. On

06.01.2023,    in-principle approval was received from National Stock Exchange. On

13.01.2023,    in-principle approval was received from Calcutta Stock Exchange. On

19.01.2023,    SEBI approval under Securities Contract Regulations 19(2}(b) was received.

On 27.01.2023, Final Listing Application was made to BSE, NSE and CSE.

22.    BSE vide its approval dated 16.02.2023 inter alia, gave the approval for the listing of 2,93,06,05,850 equity shares of Rs.10/-each and stated that with respect to the various letters and email resting with us as on February 16, 2023, in informing that effective from Monday, February 20, 2023, the equity shares of NMDC Steel Ltd. will be listed on the Exchange under Rule 19(2)(b) of SCRR,1957 and Trading Members of the Bombay Stock Exchange will be permitted to do business in the equity shares of NMDC Steel Ltd. Vide its Notice No.20230216-3 dated February 16, 2023, issued in this regard to the Trading Members of the Exchange.

23.    National Stock Exchange pursuant of Regulation 3.1.1 of the National Stock Exchange (Capital Market) Trading Regulations Part A, notified that the list of securities further admitted to dealings on the National Stock Exchange (Capital Market segment) with effect from February 20, 2023 and the designated security codes. Pursuant to Regulation 2.5.5 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it was notified that the respective lot sizes in respect of securities above shall be as specified.

24. Calcutta Stock Exchange vide its Ref No CSE/LD/157762023 dated 17.02.2023 inter alia, gave the approval for the listing of 2,93,06,05,850 equity shares of Rs.l 0/-each.

(B) Impact of the Hon'ble Supreme Court of India Judgement with reference to the Writ Petition (Civil) No.114/2014 dated


i} The Company has been legally advised that there is no impact of the Hon'ble Supreme Court of India Judgement with reference to the Writ Petition (Civil) No.l 14/2014 dated

02.08.2017    on NMDC. However, in case it is found applicable to NMDC at a later date, it may impact the profits of the Company. Meanwhile, the Bailadila Projects of NMDC have received the Show Cause Notices dated

31.07.2018    from District Collector Dantewada as to why NMDC should not be asked to deposit an amount of Rs.7,241.35 crores as compensation as calculated by Collector based on the above judgement. NMDC has been asked to submit its response by 31.08.2018. As per the legal opinion received, the above compensation is not applicable to NMDC and hence NMDC will seek legal recourse and contest before the Collector, Dantewada and other appropriate authorities. The company has contested the Show Cause Notice with District collector, South Bastar, Dantewada.

ii)    On 26.09.2019, State Government issued revised show cause notices mentioning reassessed penalties for an amount of Rs.

1623.44    Crores. In this regard, once again, NMDC Ltd. did not accept the penalties imposed by the revised show cause notices.

iii)    Collector - Dantewada issued final demand notices on 15.11.2019 for an amount of Rs.

1390.03 Crores and Rs. 233.41 Crores towards EC Capacity violation and proposed production violation as per approved Mining Plan / Scheme respectively, i.e. total Rs.

1623.44    Crores.

(a) NMDC deposited an amount of Rs. 600 Crores on 10.12.2019 under protest to the Chhattisgarh State Govt.,

(b)    NMDC filed two Writ Petitions (Civil), being No. WPC/612/2020 and WPC/616/2020 challenging validity of demand notices dated 15/11/2019 on the allegation of extraction of iron ore in excess to the environmental clearance capacity during 2000-2017, have been filed at Bilaspur High Court, C.G. on

22.01.2020.    The following reliefs have been sought from the Hon'ble High Court -

•    to issue a writ of certiorari or any other appropriate writ order or direction, declaring the levy of penalty and compensation vide impugned demand notice dated 15-11 -2019 as illegal, without jurisdiction and voilative of Article 19(1 )(g) and Article 246 of the Constitution of India.

•    to allow the present writ petition by setting aside the impugned notice dated

15/11 /2019 for demand of penalty and compensation towards excess production over the Environment Clearance Capacities.

•    any other relief as deem fit and proper by Hon'ble High Court in the facts and circumstances of the petition may kindly be passed.

(c)    When the matter was listed for hearing on

19.02.2020,    the Hon'ble Court after hearing both counsels directed as under:-

•    As prayed, list both the cases on 12* March,


•    Considering the fact that the petitioner has

already deposited more than 600 crore rupees pursuant to the demand notice made, no coercive step further shall be taken against the petitioner till 12th March, 2020.

*    The respondents are directed to produce the statistics as regards the production of the petitioner exceeding the capacity on 12th March, 2020.

iv) A revision application No. 12/(01 J/2020/RC-II challenging validity of demand notices dated 15/11/2019 on the allegation of extraction of iron ore in excess to the proposed production quantity as per approved Mining Plan / Scheme during 2000-2017, has been filed before Hon'ble Mines Tribunal, Ministry of Mines, Govt, of India, New Delhi on 24.01.2020. The following prayers have been made in the revision application -

*    to set aside the demand of penalties, towards the alleged excess production above the proposed production in the approved Mining Plan / Scheme, since the same is without jurisdiction, illegal, arbitrary, violative of principles of natural justice and ultravires the provisions of MMDR Act - 1957;

*    pass such other orders as Hon'ble Tribunal

deems fit under the facts and circumstances of the case, in the interest of justice and in the public interest.

NMDC is pursuing the matter.

(C) Impact of Covid-19 Pandemic

(a)    Production

The production performance of NMDC Ltd. during the FY 2022-23 was not impacted due to Covid-19 as the company has taken adequate precautions to ensure safely of the employees and workers. The company has undertaken an elaborate exercise of administering vaccines including Booster doses to all our eligible employees as per the guidelines of Ministry of Health & Family Welfare.

(b)    Commercial

The impact of Covid-19 Pandemic was negligent and NMDC has achieved its second best physical performance in FY'23 by producing 40.82 Mn T.

(c)    Finance

The COVID-19 had not impacted the operations of the company during the FY 2022-23.


2.1    Production



Percentage of change



Iron Ore (Million tonnes)






Diamond (Carats)




Pellets (Tonnes)



(+)11 %



Physical (in Million Tones)

% of

Value (Rs. in crore)

% of
















(-J6.02 %




Export through MMTC










Total Sales







(-)31.93 %

3.1 Other Sales








a) Diamond


Sales (carats)



Value (Rs. in crore)



b) Sponge Iron


Sales (tonnes)



Value (Rs. in crore)



c) Wind Power


Sales (lakh units)



Value (Rs. in crore)



d) Pellet (In WMT)


Sales (In WMT)



Value (Rs. in crore)





4.1 Operating Results








of change

Profit Before Tax (PBT) (Rs. in crore)





Profit After Tax (PAT) (Rs. in crore)





Net Worth (Rs. in crore)



(+) 24.93 %

Book value per share (Rs.)



(+) 24.94 %

Earnings per Share (Rs.)





There has been no change in the nature of business for the year

under review.


4.2    Profit & Dividend

During the year under review, your Company ha: earned profit before tax of Rs 7,637 crores on a turnover of Rs.l 7,667 crores in comparison with previous year's achievement of Rs.l 3,022 crores and Rs.25,965 crores respectively.

The Company has declared 1st Interim Dividend for FY 2022-23 @ Rs. 3.75 per share in the month of Feb 2023 and recommended. Final Dividend for FY 2022-23 @ Rs. 2.85 per share in the month of May 2023. Subject to the approval of shareholders in ensuring AGM.

Amount outgo towards 1st interim Dividend for FY 2022-23 was Rs.l,098.98 crores. The share of Government with equity stake of 60.79 % was Rs.668.07 crores.


The company proposed to transfer Rs.4,400 crore from net profit to General Reserve.



The company has not accepted any deposits covered under Chapter-V of the Companies Act, 2013 during the year under review.


During the year under review, the company has not issued any Non-Convertible Debentures (NCDs).


Necessary disclosure in respect of Internal Control Systems and their adequacy has been made in Annexure-C to the Independent Auditors' Report dated 23rd May, 2023 which forms part of the Annual Report.



Necessary details in this regard have been disclosed in the financial statements.


Disclosure on related party transactions forms part of the Notes to the Balance Sheet both of Standalone and Consolidated.


Section 148(1) of the Companies Act, 2013 specifies the provisions of maintenance of Cost Records of the company. The company is maintaining such records as per Rule 4(2) of the Companies (Cost Records and Audit) Rules 2014 under both regulatory and non-regulatory services.


The Audit Report for both Standalone and Consolidated Financial Statements for the year 2022-23 is unmodified and does not contain any qualification, reservation or adverse remark.


The Secretarial Audit Report for the FY 2022-23 as done by M/s Hanumanta Raju & Co., Company Secretary in whole time practice does not contain any qualification, reservation or adverse remark.


In line with the Vision plan of augmenting its Production & Evacuation capacity, technology upgradation, diversification & value-added products, NMDC has taken up many ambitious projects. Action for new projects have been initiated. During the financial year 2022-23, the details of Projects undertaken by NMDC are summarized as under:

A. Ongoing Projects:

1.    Screening Plant III - Kirandul Complex

2.    Slurry Pipeline Project which includes facilities like 15 MTPA Slurry Pipeline from Bacheli to Nagarnar along with 2.0 MTPA

Ore Processing Plant at Bacheli and 2.0 MTPA Pellet Plant at Nagarnar

3.    Doubling of KK line between Kirandul & Jagdalpur

4.    Additional Screening Line & up gradation of existing downhill conveyor at Dep-5, Bacheli.

5.    Township Project at Kirandul R. Projects in pipeline:

1.    Screening Plant II- Donimalai Complex

2.    New crushing Plant and Downhill Conveyor system at Dep-14 &11C

3.    Township project at Donimalai

Projects / Schemes for capacity expansion

To augment the production and to improve the quality of product mix from Bailadila Sector, the schemes like SP—III Kirandul, New Crushing Plant of Dep.14 & 11/C and Downhill conveyor, additional screening lines in Bacheli, Rapid Wagon Loading System (RWLS) etc. are envisaged. Waste mining and increase in evacuation capacity being a major area of focus for enhancing the life of mines, the schemes like beneficiation plant at Bacheli & Kirandul and Slurry pipeline from Bacheli to Nagarnar has been taken up.

In Screening Plant-Ill project at Kirandul the site work in packages like MRSS packages, Dry circuit (major technological package),wet circuit and RWLS, Miscellaneous building packages are in progress.

The upcoming scheme in Donimalai Comple: includes a Second Screening Plant of 10.0 Ml capacity for handling the ROM from both Donimalai & Kumaraswamy mines in additioi the existing Screening Plant. Stage -1 Forest clearance for the project is received in March 2023 and process for final Forest clearance i: progress.

Projects / Schemes to enhance evacuatior capacity

To augment the evacuation capacity from Bailadila sector, many projects & schemes are taken up like doubling of KK line.

Doubling of KK line between Kirandul & Jagdalpur (150.462 kms) is being executed b Railways as a Deposit work and overall progr for this work is 79 %. Doubling of 106 Km rai line is already completed and is in operation. Another 22 km rail line doubling is expected 1 be completed by Aug-23. Works are in progri in other reaches and are expected to be completed progressively by FY 2023-24. The completion of this project will augment the evacuation capacity of Bailadila sector throug railway line from 28 to 40 MTPA.

Site development works of Ore Processing Plant (OPP) at Bacheli and Pellet Plant at Nagarnar are completed along with soil investigation studies. Works orders are already issued for packages like Main Receiving Substation, Slurry Pumping system, Slurry pipeline laying package, technological package of Pellet plant and Enabling works of Ore Processing Plant & Pellet plant and construction activities are in progress at site. Around 25.5 km of pipeline line laying is completed.

Township project at Kirandul is awarded in October'2022. Clearances like Environmental clearance, lay out approval for Type-lll&IV from Town & Country Planning Dept, are received. Clearances like Consent to Establish, Layout approval for Type-V quarters and Building Permission from Nagarpalika are in process.

Solar Power Projects

As a part of Govt, thrust to tap renewable energy sources, 1 MW capacity grid connected Roof Top Solar (RTS) power plants are installed in various production units of NMDC (Bailadila Iron Ore Mine, Kirandul Complex & Bacheli Complex and Donimalai Iron Ore Mine, Donimalai Complex) and are in operation. Another 425 kWp Roof Top solar power plant in Bacheli Complex, Dantewada, CG was installed in March' 2023. Further, as per MNRE guidelines, to meet the target equal to 50% of the electricity consumption generated by Renewable Energy by financial year 2030, NMDC is planning is to set up a 4.5 MW ground mounted solar power plant at SIU, Paloncha, Telangana.

Initiatives for Technological upgradation

1. Fleet Management System for BIOM Bacheli & Kirandul Complex

As part of digital transformation to set the legacy in mining sector and increase efficiency, productivity and safety, State of the Art Technology driven Fleet Management System (FMS) is being implemented for BIOM Bacheli Complex and BIOM Kirandul Complex.

Fleet Management solution includes complete software and hardware structure which is designed for online monitoring and control of tracking devices, installed on the vehicle being used for carrying out production activity in the mine. The effective outputs from the system are available to the user(s) online for quick monitoring and decision making also long-term statistical reports can be extracted for long-term management, planning and integration with ERP (SAP HANA). The features of the system are High & Low Precision FMS Guidance System, Proximity Awareness, Health Monitoring, Fuel Management, Tire Pressure & Temperature, Fatigue Monitoring and Crusher Management.

NMDC has issued Letter of Intent (Lol) to M/s. Amnex Infotechnologies Private Limited Ahmedabad for the work of "Implementation of Fleet Management System at BIOM-Bacheli Complex and BIOM-Kirandul Complex of NMDC Limited" at a total contract price of Rs. 47.08 Cr, on 27.09.2021. Letter of award of Contract was issued on 04.10.2021 and Contract Agreement was signed on


M/s Amnex has started to supply the Offered FMS modules materials and also started the erection works. M/s Amnex has been given 2nd time interim extension to complete all the modules of FMS upto 03.07.2023.

2.    Fully Automated dispatch Iron ore Sampling and Analysing System for BIOM. Bacheli. Kirandul Complex and DIOM Donimalai

In order to reduce customer dissatisfaction, eliminate human errors in collection, preparation and analysis of samples, transparency & accuracy in quality analysis, digitalization, storage and retrieval of large records along with integration in ERP (SAP HANA) and also as part of overall ramp up in production & dispatch of iron ore the proposal has been taken up and is under process for issuing tender.

3.    Automated Capturing of Production & Dispatch data on real time basis from OCSI Plant Belt Scales of Kirandul.

Bacheli & Donimalai Complex

In order to reduce human interference, increase productivity, utilize manpower efficiently, storage of historic data in easily retrievable format, improve reliability of operation, having diagnostics, centralized control and integration with ERP (SAP HANA) the proposal was taken up as part of first phase of digital ERP initiative in each OCSL Plant of Kirandul, Bacheli & Donimalai Complex. Integration of all the real time relevant belt scales Production & Dispatch data with a centralized web based SCADA server on real time basis in all control rooms of OCSL plants and integration with ERP dashboard.

The work has been awarded to M/s Prudent Automation Pvt. Ltd on 07.05.2022. The work of automated capturing of data have been completed, tested and on Go-Live for Donimalai and Bacheli Complex. The work c Kirandul Complex is near completion and Go-Live proposed by 15th June, 2023.

4.    Replacement of existing Relay Logic Circuit (RLC) with Automation System (DCS) in Crushing Plant & Downhill D-14 of BIOM Kirandul Complex

Crushing Plant & DH-14 of Kirandul Comple was commissioned in the year 1966 and the existing electrical control system for process i based on Relay Logic Circuit (RLC). The system was initially supplied by M/s YASKAWA Japan and is in operation till date and has become obsolete.

In view of the digital transformation drive, in mining sector and to increase the efficiency, productivity, storage of historic data in easily retrievable format, improve reliability of operation, having diagnostics, centralized control and integration with other plants & ERP (SAP HANA) work has been taken up to upgrade the system from RLC to latest DCS automation system.

E-tender issued online and bids under evaluation. Award of contract will be finalise^ by July'23. Estimated time for completion after award of work 240 days.

5.    Replacement of existing Relay Logic Circuit (RLC) System. LTMCC control & communication cables etc with E-House. Automation System. & IMCC (intelligent MCC) for Loading Plant of BIOM Kirandul Complex

Loading Plant, Kirandul Complex was commissioned in the year 1966 and the existing electrical control system for process is based on Relay Logic Circuit which is operated continuously 24 x 7, 365 days a year for dispatch of iron ore through rakes and direct feeding through conveyor BC 614 to M/s AMNS. The system was initially supplied by M/s YASHKAWA, Japan.

Complete refurbishment of all Switchgears, different types of cables, control room, LTMCC, upgradation of RLC with latest automation has been taken up in two phases. In the first phase replacement of medium voltage switchgears and cables and in the second phase the present proposal has been taken up.

The present proposal caters to increase in the efficiency, productivity, storage of historic data in easily retrievable format, improving reliability of operation, having diagnostics, centralized control and integration with other plants & ERP (SAP HANA).

E-tender issued online and bids under evaluation. Award of contract will be finalised by June'23. Estimated time for completion after award of work is 30 days.

6. Replacement of existing Relay Logic

Circuit (RLC) with Automation Distributed Control System (DCS) and upgradation of LTMCC to IMCC of SP-1 of BIOM.

Kirandul Complex.

The existing electrical control system for process in Screening Plant-1 of Kirandul Complex is based on Relay Logic Circuit (RLC). The system was commissioned in the year 1966 and which is vital part of process plant to supply processed and sized Iron ore to final dispatch yard of Loading Plant.

Complete refurbishment of all Switchgears, different types of cables, LTMCC, up gradation of RLC with latest automation has been taken up in two phases.

A.    First phase of work has been taken up for replacement of LTMCC with IMCC (Intelligent motor control centre), interfacing/ integration of the system with PLC and ERR For this work, A/T No. HQMM/1018-21/1100000342/

1582 dtd 25.01.2023 issued to M/s Node Systems, Noida. Delivery is expected in June'23 & work completion by August' 23.

B.    The second phase of work is regarding DCS (Distributed Control System) PLC automation in place of existing RLC (Relay Logic Control) system at SP-1. E-tender issued online and bids under evaluation. Award of contract will be finalised by May'23. Estimated time for completion after award of work is 270 days.



Legacy Iron Ore, Perth, Australia

Legacy Iron Ore Ltd (Legacy) is an ASX-listed mineral resources company based in Perth, Western Australia, focusing on gold, iron ore and base metals. NMDC has 92.32% equity in the company. Legacy holds 24 prospective tenements across its Mount Bevan, South Laverton, and East Kimberley project areas in Western Australia. The tenements are in various stages of exploration for a host of commodities, including iron (1), gold (20), base metals and tungsten (3).

The Mount Bevan Project in Western Australia is of strategic importance to Legacy. It endows a significant magnetite Mineral Resource of 1.17 billion tonnes at 30.6% Fe (JORC Inferred & Indicated). The project has been the focus of considerable investment, with approximately 21,000 metres of reverse circulation (RC) and 3,000 metres of core drilling for iron ore (haematite and magnetite) and nickel exploration.

Legacy signed a Joint Venture (JV) Magnetite Agreement with Hancock Magnetite Prospecting Ltd (Hancock) to complete a prefeasibility study (PFS). Under this arrangement, Hancock will invest and undertake the developmental works in Mount Bevan Project. Currently, Legacy has a 42% interest in the asset. After completing the pre

feasibility studies, Legacy will retain a 29.4% interest in Mount Bevan JV.

Additionally, to further underpin the future potential and strategic importance of the Mount Bevan tenement, Legacy signed a joint venture agreement for lithium and other minerals with Hancock in June 2023. The Agreement formalises terms for Hancock to earn-in to all non-iron minerals, focusing on the exploration and development of lithium and other critical minerals.

The South Laverton Project includes Mount Celia, Yilgangi, Yerilla and Patricia North gold assets. Of these, the Mount Celia deposits are at the most advanced stage of development. Some of the significant milestones for Mount Celia's progress include signing the Mining agreement with the Native Title Group and the grant of the Mining Lease by the Western Australian Department of Mining Industry Regulation and Safety (DMIRS) in the first half of 2023. Legacy is committed to commencing open-cut mining in the latter half of 2023. Mount Celia has a declared JORC-compliant Mineral Resource of 312,600 ounces at 1.39g/t Au supported by 30,173 metres of RC drilling and 1,150 metres of core drilling.

The Yilgangi and Patricia North tenements are in the early to mid-stage of exploration maturity. Yilgangi has a Mineral Resource of 10,000 ounces but can potentially develop as a satellite gold deposit for Mount Celia's operation.

The East Kimberley Project is 350 km south of Kununurra, Western Australia. It includes Koongie Park, Sophie Downs, Ruby Plains and Taylor Lookout tenements, known to host prospective geology for base metals, gold, rare earth elements (REE) and tungsten mineralisation. The East Kimberley tenements are in the early stages of exploration, with first-pass drilling for base metal exploration completed.

International Coal Ventures Pvt. Ltd. (ICVL)

ICVL, a joint venture company of SAIL, RINL & NMDC, acquired a coking/thermal coal mine in Mozambique in 2014 and operation

of the same was taken over by ICVL. NMDC holds 26% stake in ICVL. Benga mine, one of the operational asset of ICVL, has produced about 1.63 Million tons in FY'23 (Both low ash & high ash) and exported 1.71 Million Tons.


8.2 Leases for minerals Iron Ore

Iron Ore Mining Leases:

Your Company is having Five Iron Ore Leases in Chhattisgarh and two Iron Ore Leases in Karnataka. The present status is as under


In Chhattisgarh

SI. No.

Name of Mining Lease

Area in Ha

ML Validity


Bailadila Deposit-11 (A,B & C)




Bailadila Deposit-14




Bailadila Deposit- 14NMZ




Bailadila Deposit-5




Bailadila Deposit-10



In Karnataka

SI. No.

Name of Mining Lease

Area in Ha

ML Validity


Donimalai Iron Ore Mines




Kumaraswamy Iron Ore Mines




Your Company has applied for various minerals in different State for Prospecting and Mining Operations, which are as follows:


Gold & Associated Mineral Deposit:-

Your company submitted application to the Secretary cum Commissioner, DMG, GoJ on 01 -01 -2019 for proposal to reserve 24.80 Sq. Km. area in Kuchai Tehsil, District Saraikela-Karswan, Jharkahnd, under Section 1 7A of MM(D&R) Act, 1957 for prospecting and mining operation of Gold & associated minerals. Director, (Mines) DMG. GoJ sought comments on 31-01-2023 from DMO, Khunti Dist., regarding any over lapping issues of the applied area with granted mineral concessions adjacent if any.The matter is being pursued with Govt, of Jharkhand for reservation.

Copper, Nickel, Cobalt and Molybdenum minerals:-

Your Company submitted the proposal to the Secretary-cum-Commissioner, Dept, of Mines &

Geology, Govt, of Jharkhand, vide letter dated

30.01.2019 to reserve an area of 16.70 Sq. Km in Tambadungri Village, Saraikela-Kharswan district, Jharkhand under Section 17A of MM(D&R) Act 1957 for grant of Prospecting and Mining operation of Copper, Nickel, Cobalt and Molybdenum minerals.

The matter is being pursued with Govt, of Jharkhand for reservation.

Iron ore Sasangada

Your Company has made a JV Company (NMDC 60% & JSMDC 40%), named Jharkhand National Mineral Development Corporation Limited (JNMDC) at Ranchi. DMG, Govt of Jharkhand has granted PL for iron ore & Manganese in Sasangada NE area in favour of JNMDC Ltd for a period of 3 years. Detailed Geological mapping and topographical survey completed.

As suggested by Ministry of Mines, Govt of India, JNMDC requested the Secretary, Dept of Industries Mines & Geology, GoJ, for reservation of Sasangada Iron ore and Manganese deposit

under Section 17 A of MM(D&R) Act 1957 for grant of Prospecting and Exploitation.

Director (Mines), DMG, GoJ suggested that, JNMDC to submit Fresh Composite Licence application after approval from JNMDC Board as per Section 17 A of MM(D&R) Amendment Act,2021 .The matter is being pursued with Govt, of Jharkhand for reservation.


Your Company (JNMDC) has submitted a proposal to the Secretary, Dept, of Industries Mines & Geology, Govt, of Jharkhand for reservation of Ghatkuri Iron ore deposit, West Singhbum District, under Section 17A of MM(D&R) Act 1957 for Prospecting and Mining operation in favour of JNMDC. As per carrying capacity studies of Saranda Region conducted by MOEF&CC the applied area falls under Elephant Coridor which is no mining zone. Your Company requested Addl. Sec. MoS, Gol on 01 -02-2021 to take up the matter with MOEF &CC for exempting the Ghatkuri Iron Ore area from conservation zone and keep it under Mining Zone so that this block can be reserved for NMDC. The Matter is being pursued with Govt, of Jharkhand (GoJ) and MoS, Gol.

Karnataka-Iron ore-

Ramandurg Iron Ore Mine- Your company requested to Ministry of Steel, Govt of India on 20-06-2020 to take up the matter with MoM, Gol to reserve Ramandurg Iron ore deposit (area - 5.1 7 sq. km) in favour of NMDC Ltd under section 17A of MM(D&R) Act,l 957. Matter is being pursued with MoS, Govt, of India and Govt, of Karnataka.


Your company has submitted a proposal to the Director, DMG, Govt of Karnataka to reserve 24.95 Sq. Km. area for Lithium and other associated elements in Raichur District, Karnataka under Section 1 7A of MM (D&R) Act, 1957 for grant of prospecting and mining operation. Director, DMG, GoKvide letter dated 22/07/2022 favourably recommended to the Secretary, Government (MSME & Mines),

Commerce &lndustries Dept., GoK for consideration and obtaining prior approval of Govt, of India to reserve in favour of NMDC for grant of prospecting & mining operation.

The matter is being pursued with Govt of Karnataka.


Iron & Manganese Ore

Your Company is pursuing for reservation for Malangtoli, Mankadnacha, Khandadhar (A & B Blocks), & Rakma iron ore deposits and Panduliposi Iron Ore & Manganese Deposit and Kansa block for Nickel. NMDC has carried out detailed exploration of Malangtoli Iron ore deposit, Odisha during 1972-77 and established mineable reserve of 340 Million tonnes.

Your Company is putting efforts and pursuing the matter with Ministry of Mines, Govt of India through MoS, Gol for reservation of Malangtoli Iron Ore Block in favour of NMDC where detailed exploration was carried out by NMDC. Due to continuous persuasion by your Company, Ministry of Mines, Govt of India sent a letter to Govt of Odisha on 04-01-2022 regarding their comments on the instant proposal and observation made by IBM, Nagpur.The matter is being persued with Govt of Odisha for reservation in favour of NMDC Ltd.

Director (Mines), Govt, of Odisha vide letter dtd.

6.10.2022 requested NMDC to provide the proposed reservation area map in triplicate for reservation of Malangtoli Iron Ore block (B, F & G Blocks) over an area of 39.03 sq. kms under section 17 A (1 A) for Exploration of prospecting which was applied by NMDC for reservation for grant of mining lease.

Against the above communication of DMG, Odisha, NMDC vide letter dtd. 25.10.2022 has submitted the maps as sought and requested DMG, Odisha and Ministry of Mines to reserve the said Malangtoli Iron Ore block under Section 17A (1 A) of MMDR Act, 1957 for grant of mining lease as the applied area was already explored by NMDC. Matter is being persued with MoS, Govt, of India and Govt, of Odisha.

Andhra Pradesh

Your Company has applied for Peravali -Betapalli in Kurnool & Anantapur Districts; Rajagollapalli in Chittoor district and Konetirajupalem -Kundam block in Nellore district for Gold and associated elements.

NMDC has requested State Govt, to reserve these blocks in favour of NMDC under 17A of MM (D&R) Act, 1957 for Prospecting & Mining. The matter is being pursued with Govt of AR

Exploration under Sub-section (1) of section (4) of MM (D&R) Act, 1957 in MoM, Gol allotted Blocks under NMET.

Your company was allocated 5 blocks (one iron ore block each in Jharkhand & Maharashtra; and 2 Gold blocks in Karnataka & 1 Gold block in M.R) by MoM, Gol for G4 level exploration.

All the blocks were explored successfully and Geological Reports were submitted to NMET & concerned State Governments. NMET reimbursed an amount of Rs 3.42 Crores to NMDC as per Schedule of Charges fixed by MoM, Gol and claim made by NMDC.

Your Company submitted a proposal to NMET on 06/07/2022 for G4 level Diamond Exploration at Jheriya Block, Janjgir-Champa District, Chhattisgarh.

NMET, MoM, Govt, of India allotted Jheriya Diamond Block (Area- 100.31 on

20.09.2022 for carrying out regional Diamond exploration with a time line of 18 months at an estimated cost of Rs. 2.46 Crores.

Your Company obtained forest permission over the forest area of Jheriya Diamond block on 20th Dec,2022 from DFO, Janjgir district, CG for collection of stream sediment sample and surface chip samples.

Your Company started first phase of exploration

i.e. collection of Stream Sediment Samples (SSS) from 24/01/2023 in Jheriya Diamond block and total 36 nos. of SSS are collected and processed through zigging at Panna Exploration Camp, MR Heavy liquid separation through TBE and Microscopic sorting of heavy Mineral indicators have completed at R & D Centre, NMDC, Hyderabad for further EPMA Analysis.

Chigargunta-Bisanatham gold block-

Your Company has become preferred bidder for Chigargunta-Bisanatham gold block for Mining Lease (ML area 262.01 Ha.) located in Chittoor Dist. in Andhra Pradesh through e-audion route with a final bid offer of 38.25%.

Hon'ble High Court of AP issued common orders in W. R Nos. 15965 (filed by Bharat Gold Mines All Employees Industrial Cooperative Society Ltd. and others) & 21750 (filed Global Gold Mines All Employees Industrial Cooperative Society Ltd.) of 2018, dt. 05/08/2022 and disposed the W.Rs. The operative portion of the orders are as "For all the aforesaid reasons, there are no merits in these writ petition and they are accordingly dismissed. There shall be no order as to costs. As a sequel, pending miscellaneous petitioners. If any, shall stand closed".

Your Company made payment of first instalment (10%) of upfront amount i.e, Rs. 1,23,80,650/- to Govt of AP in Sept, 2022.

Subsequently, Government of Andhra Pradesh issued LOI on 7th Od'2022 for grant of Mining Lease to your Company.

As an initial step for commencement of mining operation in a time bound manner, on 17.10. 2022 your Company appointed a Technical Advisor on contract basis for assisting all technical works pertaining to preparation of mining plan, underground mine & processing plant design, tailing disposal etc. along with Consulting Agency to be appointed for commencement and operation of Chigargunta Gold Mine.

Your Company made a payment of 2nd instalment of upfront payment {10%) @ Rs. 1.24 Cr to DMG, GoAP on 31/03/2023.

Mining Plan preparation and obtaining statutory clearances of Chigargunta-Bisanatham Gold Block is under progress.

NMDC has paid 1** & 2nd Instalments of upfront payments (10%+l 0%} amounting to Rs 2.48 crores and deposited the Performance Security (i.e Bank Guarantee for amount of Rs.l 2.39 Cr) to DMG, GoAR The Joint DGPS Survey of the Gold Block is completed. Efforts are on to seek all the clearances for execution of the Mining lease within stipulated time of October 2025.

Drone Based Mineral Exploration

Your Company has signed Contract Research Agreement & EOI with Geology & Geophysics Dept, and Mining Dept, of I IT, Khargapur signed on 16.03.2022. The development of data analysis, data science & machine learning technologies are creating an optimal ecosystem for mineral exploration & mining. Drone


Technology plays an important role in generation of meaningful digital spatial data.

NMDC becomes First CPSE to initiate "Drone Based Mineral Exploration in India". NMDC procured 2 Nos. Drones, One Magnetometer and one Hypersprectral + LIDAR Sensors.NMDC Executives became Drone Pilot after trained from TSAA, Telangana. Draft projects prepared for 3 types of studies, which would be taken up jointly with IIT-KGR

The acquisition of image data with drone based UAS is fast, easy, targeted and without the need of extensive time- and cost-consuming. It is mostly independent of cloud cover conditions and is even applicable in barely accessible areas. The heavily decreased influence of the atmosphere does not require difficult and complex atmospheric corrections. Drones present the perfect trade-off between coverage and scale of observation, and are essential when ground access is impossible, dangerous or logistically costly.

Drone based mineral exploration to condud-Geological exploration using hyperspectral remote sensing data collected by Hyperspectral imaging sensor, Geophysical exploration using magnetic data collected by magnetometer, Topographical mapping using 3D data collected by Li DAR, Environmental studies in mines, Photogrammetry and generation of anomalous maps for identification of potential mineralized targets.

Drone based Hyperspectral sensors have become a key tool for a large range of applications in remote sensing and are now widely used in geology, mineral mapping and exploration. During the last few years, lightweight hyperspedral imaging (HSI) sensors and geophysical instrument have been increasingly developed for use on Drone. These drone-borne sensors can close the gap between field- and air-or space-borne data and provide small-scale high-resolution hyperspedral imagery.

Drone based magnetic survey is used to colled magnetic data which is very important to define the location and the shape of the buried magmatic body, and to estimate if its magnetic properties are indicative for mineralization.

NMDC-CMDC Limited (NCL) a JV Company of NMDC Limited & CMDC Ltd:

NMDC-CMDC Limited (NCL) is a Joint venture Company of NMDC Limited and CMDC Limited with a share capital ratio of 51% and 49% respectively. The present status of all the projects of the Company is as follows:-

Bailadila Deposit-4

Ministry of Mines, GOI has reserved Bailadila Iron Ore Deposit-4 an area of 646.596 ha in favour of NMDC-CMDC limited (NCL) under section 1 7A (1 A) of MMDR Act, 1957 vide their Gazette Notification no. 697(E) dated 30/09/2019 for a period of 05 years for prospecting and mining operation. MRD, GoCG has issued LOI for grant of ML vide letter dated 26/06/2021 in favour of NCL for five years. The Mining Plan of Dep-4 has been approved by IBM, Raipur on 24/09/2021. NCL has applied for obtaining environment clearance under Environment Protection Act, 1986 and Forest Clearance under Forest Conservation act, 1980.

Terms of Reference (ToR) for Industry-1 sector (ancillary activities outside ML area) issued on

21.02.2022 and for Mining sector (mining activities inside ML area) issued on 11.03.2022 for obtaining environment clearance. Ecological studies, flora & fauna studies completed on

31.05.2022.    Draft EIA/EMP report submitted to CECB, Govt, of Chhattisgarh for public hearing on 31.03.2023.

Gram Sabha for acquisition of private revenue land held on 25.04.2023. Land acquisition applications for village Bhansi and Porokameli along with the requisite fee towards service charge of Land Acquisition, Administrative cost of Rehabilitation and Resettlement and cost for social impact assessment study is submitted on

25.05.2023.    District Collector, Dantewada has issued notification under section 4 of LARR Act 2013 for SIA studies on 26.05.2023.

Forest application for forest diversion proposal is registered vide registration no.

FP/CG/MIN/146694/2021 dated 16.06.2022. Forest Department has made available required degraded Forest Land for Compensatory Afforestation in the Forest Ranges of Marwahi

and Janjgir-Champa. DGPS Survey report of 846.296 Ha degraded forest land in Janjgir-Champa Forest division submitted to DFO, Janjgir-Champa on 19.04.2023, CA plantation scheme prepared & submitted. DGPS survey report for 530.302 Ha degraded forest land for Compensatory Afforestation at Marwahi forest division was submitted on 08.05.2023 and CA plantation scheme submitted. Tree enumeration work completed and report has been submitted to Forest Ranger Office, Bacheli. Revised forest diversion proposal for a revised area of 682.2722 Ha (570.100 Ha inside ML area + 100.077 Ha outside ML area + 12.0952 Ha Bade Jhad ke jungle) along with 44-point check list submitted to DFO, Dantewada and updated in PARIVESH Portal on 29.04.2023.

Draft Wild Life conservation & Management Plan, Biodiversity Conservation Plan and Soil, Water & Moisture Conservation Plan submitted to the office of DFO-Dantewada on 29.04.2023 for the scrutiny.

Bailadila Deposit -13

Mining Lease was granted for Bailadila Iron Ore Deposit-13 over an area of 413.745 Ha in favour of NMDC Limited for 50 years by State Govt, of Chhattisgarh vide order no. F3-84/05/12 dated 07/01/201 7 and Lease deed for the same has been executed on 10/01/201 7.

As per JV agreement dated 27th March 2007 by and between CMDC and NMDC Ltd., mining lease for Bailadila Iron Ore Deposit-13 had to be transferred in the name of NMDC-CMDC Limited (NCL) and then NCL would undertake all the required steps for development and operation of the Mine. Further, Mining Lease Grant Order No. F3-84/95/12 dated 07/01/201 7, in respect of Deposit-13 issued by State Government of Chhattisgarh, stipulate that 'after the execution of the lease deed, NMDC will transfer the Mining Lease to the JV Company NMDC-CMDC Limited'.

Mineral Resource Department, Government of Chhattisgarh, has issued an order no. F3-84/1995/12 dated 06/11/201 7 for transferring the mining lease of Bailadila Iron Ore Deposit-13 in favor of NMDC-CMDC Limited. Mining Lease of Deposit-13 has been transferred in favour of NMDC-CMDC Limited (NCL) on 04.12.201 7. On 02.07.2018 M/s Adani Enterprises Limited has been appointed as MDO for Bailadila Iron Ore Deposit-13.

MoEF&CC, GOI, has accorded transfer of Environmental Clearance in name of NMDC-CMDC Limited from NMDC on 12.12.2019.

Final FC under Section 2(ii) of Forest Conservation Act 1980 was granted over an area of 315.813 Ha. in favour of NMDC Limited by MoEF&CC on 09.01.201 7. Action has been initiated for transfer of existing FC in favour of NCL. CECB granted approval to NCL for consent to Operate 2MTPA on 27.04.2019.

The Revised Mine Plan of NCL was approved by IBM, Raipur on 06.03.2019 for a capacity of 10 MTPA. The validity of the Mining Plan of Deposit-13 was up to March 2021. Hence, Revised Mining Plan for the period 2021-26 has been prepared by NMDC and the same was approved by IBM Raipur on 12.01.2021.

District administrator, Dantewada issued orders to stop all project activities of Dep-13 on

11.06.2019 due to protest by local villagers against MDO and demanding enquiry against FRA certificate issued by Gram Sabha. Forest Department, GOCG, Raipur has issued show cause notice to NMDC for cancelling the Stage-ll Forest clearance of Deposit-13 on 06.03.2020 considering the report of District Administrator, Dantewada to nullify the Gram Sabha proceedings. NMDC-CMDC Limited (NCL) has submitted the reply to the forest Department, Govt, of Chhattisgarh against the show cause notice issued for cancelling the Stage-ll Forest clearance of Deposit-13.

MRD, Govt, of Chhattisgarh has issued a notice to NMDC-CMDC Limited (NCL) for lapsing the Mining Lease of Deposit-13 for noncommencement of mining operation within 2 years from grant of mining lease under Rule 20(3) of MCR 2016 on 05.03.2020. NMDC-CMDC Limited (NCL) has submitted the reply to the MRD, GOCG against the notice issued for lapsing the Mining Lease of Deposit-13 for noncommencement of mining operation within 2 years from grant of mining lease under Rule 20(3) of MCR 2016.

NCL vide letter no. NCL/HO/Dep-13/ML/2020/833/01 dated 25.03.2021 has submitted Rs. 1,00,000/- (Rs. One Lakh) towards revival of mining Lease of Bailadila Iron Ore Deposit-13 under Rule 20(5) of MCR (other than atomic and hydro carbons energy minerals)

2016 vide Challan no: 146803648 dated


NCL vide letter no. NCL/HO/Dep-13/ML/2022/1014 dated 14.02.2022 has again requested Under Secretary, MRD, GoCG for providing suitable decision in the matter of lapsing of mining lease, so as to start the development and operation of Deposit-13. Also, NCL vide letter no. NCL/HO/Dep-13/ML/2022/1015 dated 14.02.2022 has requested Dy. Secretary (Forest), GoCG for providing suitable decision in the matter of cancelling the Stage-ll Forest clearance of Deposit-13, so as to start the development and operation of Deposit-13.

Performance security has been renewed for another five years as per Mine Development and Production agreement (MDPA) on 05.11.2022.

Baloda - Belmundi Diamond Block

Ministry of Mines, GOI vide G.S.R.744(E) dt

14.10.2021    granted reservation of Baloda-Belmundi Diamond Block for PL or ML in favour of NMDC-CMDC limited under section 17A(1 A) of MMDR Act, 1957. NCL vide letter dated

13.01.2022,    submitted application to Secretary, MRD, GoCG for grant of Prospecting License for Baloda-Belmundi Diamond Block.

MRD, GoCG, Raipur vide letter dated

28.04.2022    has issued LOI for grant of Prospecting License for Baloda-Belmundi Diamond Block (156.80 sq. km) under Rule

17A(1 A) of MMDR Act 2015 (as amended) in favour of NMDC-CMDC Limited for three (3) years.

The Company has submitted permission letter from forest department for carrying out prospecting work in 33.23 forest area of Baloda-Belmundi Diamond block and affidavit to work in revenue land with due consent of land owner and asked MRD, GoCG to issue final grant order for prospecting licence of Baloda-

Belmundi Diamond Block on 20.05.2022.

MRD, GoCG, Raipur vide letter dated

02.01.2023    has issued final grant order for prospecting licence of Baloda-Belmundi Diamond Block.

The Company has submitted Scheme of prospecting for Diamond Exploration in Baloda-Belmundi Diamond Block to IBM, Raipur and Mining Officer, Mahasamund, GoCG on

06.01.2023.    PL deed of Baloda-Belmundi Diamond Block with GoCG on dated

28.02.2023    and the same is registered on dated


District Collector, Mahasamund vide letter dated

26.05.2023    has given permission to NMDC-CMDC Limited to start the prospecting work. First phase of exploration (Stream Sediments Sampling) has been done in the allotted block from 08.05.2023 to 09.05.2023

Bailadila Deposit No.1 and 3 & 8

The Company has submitted proposal to the

Secretary, MRD, GoCG dated 06/10/2021 & 25/10/2021 to reserve Dep. No. 1,3&8 respectively in favour of NMDC-CMDC Limited (NCL) under section 17 A (2) of MM (D&R) Act, 1957.

MRD, GoCG vide letter dated 24.11.2021 has recommended to MoM, GOI for reservation of 21.3 area of Dep-1 mine in favour of NMDC-CMDC Limited under rule 1 7A(2) of MMDRAct 1957 (as amended) for undertaking prospecting followed by mining operations.

MoM, GOI has turned down the request for reservation of Dep-1 in favour of NMDC-CMDC Limited since NMDC, CMDC and NMDC-CMDC Limited has exceeded the area limit prescribed for ML of 10 sq. km under section 6 of MMDR Act vide letter dated 04.07.2022.

MRD, GoCG, Raipur vide letter dated 20.04.2022 has recommended to MoM, GOI for reservation of 18.15 area of Dep-3 & 8 mine for prospecting cum mining in favour of NMDC-CMDC Limited under rule 1 7A of MMDR Act 1957 (as amended).


Environmental Clearances:

1.    Your company has obtained Environment Clearance (EC) from State Environmental Impact Assessment Authority (SEIAA), Bangalore on 16.11.2022 for construction of Multi storied Residential complex {Type-lll {560 units, 14 towers, stilt+10), Type-IV (96 units, 2 towers, stilt+8) & Type-V ( 21 units, 1 tower, Stilt+7)}.

2.    Your company has obtained Environment Clearance from State Environmental Impact Assessment Authority, (SEIAA), Raipur on

15.3.2023    for Construction of multi storied residential complex {Type-Ill (200 units, 5 towers, stilt+10). Type-IV (144 units, 3 towers, stilt+8) & Type-V (21 units, 1 tower, Stilt+7}}

3.    Your company has obtained recommendations by Environment Appraisal Committee (EAC), MoEF&CC for grant of Environment Clearance for Capacity Expansion of Kumaraswamy Iron Ore Mine from 7 to 10 MTPA Iron Ore on 10.11.2022.

Terms of Reference (TOR)

• Your company has obtained TOR on

6.2.2023    from MoEF&CC, New Delhi with specific and standard conditions for Main Mining Lease & Supplementary Mining Lease

of the Diamond Mining Project, Majhgawan (Panna), Madhya Pradesh for preparation of EIA/EMP report.

Certified Compliance Report

1.    Your company has obtained Certified Compliance Report (CCR) with respect to the conditions stipulated in the existing Environment Clearance dated 23/7/2007 accorded to Bailadila Iron Ore Mine -Deposit 5 from Integrated Regional Office (IRO), Raipur along with a closure report on 30/1/2023.

2.    Your company has obtained Certified Compliance Report (CCR) from IRO, Bangalore with respect to the conditions stipulated in the existing Environment Clearance dated 25/1/2021 accorded to Kumaraswamy Iron Ore Mine, Bellari (Karnataka).

Forest Clearances:

1.    Your company has obtained extension of validity of Forest Clearance co-terminus with Mining Lease by another 20 years i.e. up to 17/10/2042 in respect of the KIOM over an area of 324.70 Ha from Government of Karnataka, Forest, Ecology and Environment (FEE) Deptt, Bangalore.

2.    Your company has obtained the Final Stage Forest Clearance from MOEF&CC for

diversion of 5.71 Ha of forestland for widening of existing approach road w.r.t KIOM (ML No. Ill 1) S.M Block Forest, Donimalai, Sandur, Karnataka on 10.11.2022.

3. Your company has obtained Stage-1 Forest Clearance from MOEFCC on 6.3.2023 for diversion of 53.67 Ha of forest land (near M.L No. 2396 of NMDC) in Donimalai forest block, Sandur Taluk, Ballari Distt for construction of new screening plant-ll, Tailing Dam and laying of water pipeline at Donimalai.

Wild Life Clearance:

•    Diamond Mining Project Panna, has obtained Wild life Clearance from PCCF / Chief Wild Life Warden, Madhya Pradesh for a period of 20 years (valid up to 30.6.2040).

Consent to Operate

•    Your company has obtained valid operating consents from State Pollution Control Boards under Air (Prevention & Control of Pollution) Acts 1981 and Water (Prevention & Control of Pollution) Act 1974 for all projects. Your company also obtained validity extension of consent to establish for Screening Plant-Ill at Kirandul, Pellet Plant at Nagarnar & Iron Ore Beneficiation Plant at Bacheli.

Environment, Social Governance:

•    Your company has conducted ESG studies in line with the SEBI guidelines and prescribed frameworks. The Sustainability report for the year 2021-22 has been released on

26.1.2023 and FY 2022-23 the report will be released along with annual report of the company.


Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

Health & Safety continue to be our priority with employees & contractual workmen at our Projects

adhering to the SOPs & Safety norms. NMDC appreciate that safety is a journey & is committed to continually improve its performance and set high standards.

In each mining project of NMDC sufficient number of Workmen Inspectors are nominated/appointed for Mining operations, Mechanical and Electrical installations as per statutory requirements for carrying safety inspections.

Mine Level Tripartite Safety Committee Meetings (MLTSCM) are being conducted once in a year at Project Level with Senior Officials, Union Representatives and DGMS Officials in which Safety Performance and its appraisal are made and the recommendations are implemented.

Corporate Level Tripartite Safety Committee Meeting is being held regularly once in a year at Head Office and the recommendations are implemented.

Safety Committees have been constituted in every operating mine and Pit Safety meetings are held every month for discussing the safety matters and corrective actions related to work atmosphere.

In order to ensure that safety systems are up to date & also comply with the latest safety regulations, a cross-project Internal Safety Audit has been started in NMDC.

Safety Management System has been implemented in all our Mines. Risk Assessment studies are being conducted regularly.

NMDC provides extensive safety training programmes to inculcate safety habits & mindset at work to its employees. Behavioral based safety training is also given to the employees.

The Severity Rate for the year 2022-23 is 15.09.

(Severity Rate = Mondays lost per 100000 Mondays worked).

OHS Activities:

Occupational Health Services have been provided with adequate manpower and infrastructure and are functioning in full-fledged manner at all the Projects, headed by Qualified Doctors trained in OHS at Central Labour Institute, Mumbai.

Periodical Medical Examination under statute is carried out regularly in all the projects.

NMDC strives to ensure that workers are not exposed to occupational hazards that negatively affect their health. NMDC also has well equipped hospitals with capable medical teams available 24/7 to support the health & well being of the workers & the surrounding community.

Integrated Management System (IMS)

Comprising of Quality Management System (QMS) - ISO 9001:2015; Environmental Management System (EMS) - ISO 14001:2015; Occupational Health & Safely Management System (OHSMS) - ISO 45001:2018 & Social Accountability - SA 8000:2014 Certification Standards.

All the NMDC Production Projects viz. Bailadila Iron Ore Mine, Kirandul Complex (BIOM, KC); Bailadila Iron Ore Mine, Bacheli Complex (BIOM, BC); Donimalai Iron Ore Mine & Kumarswamy Iron Ore Mine, Donimalai Complex (DIOM & KIOM) are accredited with Integrated Management System (IMS).


With the objective of improving transparency in procurement, NMDC had entered into MOU with Transparency International India for implementation of Integrity Pact Programme during September 2007. NMDC is the first Mining Navratna Company which entered into Integrity Pact Programme in the year 2007.

Initially, the threshold value for procurement & contracts for entering into the Integrity Pact have been fixed as follows: -

Contracts :

Rs. 50.00 crores

Procurements :

Rs. 15.00 crores

To widen the coverage of procurements / contracts under Integrity Pact, the threshold limits

have been revised during 2009

as under:


Rs. 20.00 crores

Procurements :

Rs. 10.00 crores

Subsequently, to cover majority of cases under Integrity Pact, the threshold limits have been reduced to Rs.1.00 crore for procurements / contracts w.e.f September 2018.

During 2022-23,183 tenders valuing Rs.1568.79 crores were covered under this category.

12.1 Transparency in procurements handled

In order to enhance transparency in procurements & increasing competitiveness, our company adopted the following modes of ten dering :-

> e-Procurement:

*    All procurements of value above Rs.2 lakh are tendered through e-mode at HO & Projects. Reverse e-auctions are conducted for high value Equipments, spares & consumables, wherever possible, by declaring upfront in the tender document.

*    Broad basing of vendors done for high value items viz. Milled Ferro Silicon, Crusher Spares, Under Carriage parts of Excavators, TCRR bits, conveyer belts and plant items which resulted in substantial savings in cost.

> Mode of Tendering:

Efforts are continuously taken to minimize proprietary & single tender purchases. Instead, open/global tenders are resorted to by giving generalized specifications & drawings, wherever possible or with OEM Part Numbers. Single Tender / Proprietary purchases have been reduced from Rs.1579.15 lakhs (85 cases) during 2017-18 to Rs.287.67 lakhs (34 cases) during 2018-

19.    Rs.271.85 lakhs (26 cases) during 2019-

20,    Rs.3975.96 Lakhs (33 cases) during 2020-21, Rs.13939.95 Lakhs (56 cases) during 2021-22. Rs.17689.98 Lakhs (93 cases) during 2022-23. The Increase during FY 2022-23 is due to implementation of Mil-

Make In India Policy in NMDC.

>    Pre-qualifying conditions:

PQC for HEM equipments tenders have been reviewed and a structured PQCs have been made keeping in view wider participation.

>    GeM Portal:

Procurement through GeM portal as per the guidelines of GOI, is being done for the Materials which are available in the GeM Portal. Total 2811 orders valuing Rs.840 crores were placed during the year 2022-23.

> CPP Portal:

AAM Dept, is posting tenders in the CPP portal except Single tender and proprietary items.

All the bidders approaching through CPP portal for entering in NMDC are invited for registration with NMDC or conducting trial with NMDC for ensuring their quality product.


NMDC R&D centre is dedicated to undertake product and technology development projects related to ores, minerals and steel making to maintain its excellence in process performance. R&D centre has made significant contribution not only to NMDC operating projects but also to Indian industries and is recognized by Department of Scientific and Industrial Research (DSIR). R&D centre undertakes works related to mineral processing, flow sheet development, mineralogical studies, material handling & storage, metallurgical studies of iron ore and coal, chemical analysis etc. It is a pioneer in the field of beneficiation and continuously working for development of dry beneficiation technology for different ores and minerals. It is endowed with state of art laboratory equipment to analyze different minerals, coals, metals and non-metals. For further details, reference may be made to Annexure-ll attached to the Directors' Report.


NMDC's Global Exploration Centre at Raipur is continuously doing exploration in the mines of NMDC and adding new reserves every year. NMDC has offered to State Governments to undertake free exploration to quantify mineral resources in the State.


NMDC effectively continued its efforts to implement and comply with the Official Language Policy of the Government of India in its headquarters, projects and units.

Hindi Parangat training continued whole the year through on- line mode. So far 170 employees of Corporate Office have been successfully imparted Parangat training. Hindi workshops were organized in every quarter at headquarters and various projects. Official Language Implementation Committee meetings were held every quarter at headquarters as well as at projects.

Hindi Kavi Sammelan was organized by Corporate Office at Hyderabad with Hindi poets of international fame. Honorable Members of Hindi Salahakar Samiti of Ministry of Steel alongwith NMDC family attended the event. Rajbhasha Technical seminars were organized at Bailadila Iron Ore Complex, Kirandul and Diamond Mining Project, Panna.

Inter-PSU Hindi competition was conducted by Corporate Office for all the PSUs of Hyderabad.

Hindi Fortnight was organized at Corporate Office as well as at all the Projects and Units.

Messages of CMD were published in Hindi dailies of Hyderabad and posted on various social media platforms. Various competitions were conducted and prizes were distributed.

Apart from Hindi Fortnight, to maintain continuity in promotion activities for use of Rajbhasha in official work various monthly competitions were organized and prizes distributed.

A meeting of official language representatives of various departments of Corporate office was held to speed up the use of official language in all departments.

NMDC actively participated in 12th World Hindi Conference held at Fiji. Two Officers from the company attended conference.

The official language house journal "Khanij B ha rati" of the headquarters was published. Various Hindi/bilingual/trilingual monthly magazines namely Baila Samachar, Bacheli Samachar, Doni Samachar, Hira Samachar were also published from the projects. "Takaniki Kshitij" and "Hira panna" magazines were published respectively from Kirandul and Panna Projects.

Diamond Mining Project, Panna shoulders the responsibility as convenor of Town Official Language Implementation Committee of Panna. Project organized Half yearly meetings and other programs for all the member offices for

implementation of Rajbhasha in Panna.

Special Hindi workshop for member offices of TOLIC, Vishakhapatnam was organized by RO, Visakhapatnam under the aegis of Nagar Rajbhasha Implementation Committee, Visakhapatnam.

Head Office of NMDC Ltd received the most coveted Rajbhasha Kirti Puraskar (Third) for PSUs in "C" region for the Year 2021 -22. NMDC was honored with Rajbhasha Kirti award for the fourth year consecutively.

NMDC received "Rajbhasha Sammaan" award from Ministry of Steel amongst Steel PSUs.

Head Office of NMDC Ltd won first prize "Rajbhasha Shield" for the year 2021-22 in the category of medium sized undertakings for excellent implementation of Official Language by Town Official Language Implementation Committee (Undertaking), Hyderabad-Secunderabad. NMDC received this award for the seventh year consecutively.

Hindi House journal of Corporate Office "Khanij Bharati" also received First prize of Town Official Language Implementation Committee (Undertaking), Hyderabad-Secunderabad in e-magazine category.


The company has taken the following steps to procure goods and services from MSE firms, MSE SC/ST & Women entrepreneurs. NMDC has conducted exclusive MSE SC / ST vendor meets at its projects in Chhattisgarh and Karnataka and also at Hyderabad to understand the tender process and our requirement. NMDC has participated in the various vendor meets organised by Ministry of Micro, Small & Medium Enterprises in association with FICCI. Besides NMDC has organised 12 Nos. Vendor Meets / programmes at various places in total during 2022-23. NMDC interacted with prospective MSE entrepreneurs encouraging them for supply of goods for various plants at Bailadila, Donimalai & Panna.

For encouraging MSE SC/ST firms, exclusive trials are being conducted and after successful trials the firms are given tender enquiry in Limited Tender.

Moreover, against the qualification criteria in tenders we have not received any complaint / request with regard to relaxing tender terms & conditions. For the last 3 years NMDC is achieving the targets as per Public Procurement Policy. The results of 2022-23 are given below: -

Categoiy of MSE Firm



Procurement from MSE firms


77.49 %

Procurement from SC / ST MSE firms


5.25 %

Procurement from Women Entrepreneurs MSE firms


4.65 %

NMDC also received the Certificate of Appreciation from Ministry of MSME for highest procurement amongst Navratna CPSEs during 2021-22 and The Best Performer under the Navratna Category during the year 2019 and for our exemplary work towards promotion of SC/ST entrepreneurs based on the performance parameters namely (i) procurement from SC/ST

entrepreneurs, (ii) No. of Vendor Development Programs for SC/ST and (iii) Number of SC/ST entrepreneurs benefitted as per the data uploaded on Sambandh Portal.

17.0    MANPOWER

17.1    Employee-Employer relations

The overall industrial relations situation was peaceful and cordial during the year. There was no strike/lockout against the Company's policies affecting production and productivity.

17.2    Scheduled Castes & Scheduled Tribes

59 candidates belonging to Scheduled Caste and 114 candidates belonging to Scheduled Tribes were appointed against 435 posts filled by direct recruitment.

17.3 Strength of SCs & STs as on 31st March 2023

1. Total number of employees


2. Scheduled Castes amongst them


3. Scheduled Tribes amongst them


4. Other Backward Class


5. Physically challenged employees


17.4    Particulars of employees drawing remuneration of Rs.8.5 lakhs per month or Rs.1.02 crores per annum under Section 197 of the Companies Act, 2013 read with Companies (Appointment and remuneration of Managerial Personnel) Rules, 2014 as amended-NIL.

17.5    Staff Welfare activities

Adequate facilities for education, health, accommodation and recreation were in place. Various Bipartite fora have been functioning satisfactorily.

17.6    Promotion of Sports

Sport tournaments were arranged for the employees, the wards of employees and also for the local youth.

17.7    Disclosure under Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013

One complaint has been received under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 during the financial year 2022-2023.


At NMDC, your employees are crucial assets and their contribution is critical to its success and performance. We value and invest in your employees so as to attract and retain talent, increase productivity and profitability, and achieve its goals and objectives. In NMDC, we provide a robust learning culture environment in which learning is encouraged, supported, and integrated into the daily activities.

In your company, a high impact learning culture is provided where learning is not just a one-time event but is an ongoing & continuous process that is integrated into the daily work environment. This means that your workforce is encouraged and supported to learn on the job and to continuously develop their skills and knowledge. At NMDC learning is a collaborative process. Employees are encouraged to work together to share knowledge, skills, and experiences, and to learn from each other.

Corporate HRD Learning and Development department is aligned with its business as well as strategic goals. This means that your employees are trained to develop the skills, knowledge and attitude that are critical to achieving its objectives. In a high impact learning culture, your company recognizes that each of its employee has unique learning needs and styles. Therefore, learning is personalized to meet individual needs and preferences.

We believe that in NMDC, a high impact learning culture is critical factor that will attract and retain top talent, drive innovation and growth, and stay competitive in today's rapidly changing business environment. By creating a culture that supports and encourages continuous learning and development, organizations can build a workforce that is agile, engaged, and committed to achieving its goals. NMDC spent Rs.21.03 Crores (approx.) on Learning and Development during the year 2022-23 as compared to Rs.15 crores(approx.) in previous year.

In your company, productivity and employees are closely related, as employees are the ones who perform the tasks and activities that contribute to an organization's overall productivity. We firmly believe that, employee productivity is critical to our success, and organizations that prioritize employee engagement, skills and knowledge, health and well-being, workload management and job design, and employee satisfaction can create an environment that support high levels of productivity.

Business sustainability and learning are closely interconnected. We believe that business sustainability is about creating value for all stakeholders over the long term, while balancing economic, environmental, and social considerations. By adopting sustainable business & best practices we have reduced environmental footprint, build strong relationships with stakeholders, and created a more resilient and prosperous future for all. Overall, learning can play a critical role in supporting business sustainability. By building a culture of sustainability, driving innovation, supporting continuous improvement, engaging stakeholders, and building a more sustainable business model, organizations can enhance their sustainability practices and drive long-term success.

For a high-performance organization, it's imperative that the knowledge and skills are continuously upgraded by virtue of imparting new age learning technologies. It is pertinent to mention here that, during 2022-23 Learning and Development initiatives were aligned with our business goals. The on-going core programmes were revitalised to reflect the emerging capability requirements. In addition to core programmes, customised e- learning programmes were also offered to address the needs expressed by businesses, aimed at building specific capabilities at various levels of the organization.

A. TRAINING PROGRAMMES (In-House / External)

Corporate HRD has organised customized In House Training as well as External Training programmes covering executives during 2022-23. Corporate HRD Conducted several specialized & curated Programmes on:

Ý Specialised intervention w.r.t Reservation

Policy for SC/ST, OBC, Ex Servicemen, PWD and EWS in PSE

Ý    Sexual Harassment of Women at Work Place (Prevention, Prohibition & Redressal ACT 2013).

Ý    Successfully organised and conducted in house training & programme on New labour codes by XLRI Jamshedpur by covering 25 executives from various disciplines.

Ý    Online Training programme for Inquiry Officers (lOs) & Presenting Officers (POs) by CBI Academy

Ý    Workshop on Arbitration and Contract Management Negotiation Skills.

Ý    Environment, Health and Safely Awareness masterclass in Dubai.

Ý    Conducted various health & wellness programme by various bodies.

Ý    Workshop on Recent Amendments in Arbitration and Conciliation Act 1966.

Ý    Online Programme on Design thinking for top management by CM.

Ý    Conducted Gender Sensitisation program at Head office

Ý    Organised program on GEM & Contracts, IO/PO, tender & contracts, public procurement, GEM & Disciplinary Matters.

Ý    NMDC HR conclave approved for all NMDC HR executives with I SB Hyderabad as academic partner in 3 cohorts. 2 cohorts are already successfully conducted at Kolkata and Kerala. The program was well appreciated by

NMDC top leadership and participants.3rd HR Conclave to be conducted shortly.


COVID-19 pandemic has brought with it a great deal of stress and anxiety for many people. To overcome unprecedented challenges of COVID 19 before us alongside Fear, Stress & Anxiety, happiness programme was conducted by NMDC for the employees not only to increase the level of happiness within the organisation but also help employees at various levels to understand why happiness is worthwhile goal for achieving high performance in life and work.

Covered 500 executives Managers & above executives in a unique tailored programme namely "IKIGAI- A Happy Workforce Programme- Phase 2". Keeping in view the feedback from the phase-1 &2 participants, the programme is further extended to 540 executives "IKIGAI- A Happy Workforce Programme- Phase 3"

Culture building and happiness programs can help to create a positive work environment that foster employee engagement, retention, and productivity.

This can lead to improved business outcomes and a stronger brand reputation, ultimately driving long-term success.


Signed MoU with National Skill Development Corporation (NSDC) for Skill Development

Program and RPL Certification for 1600 NMDC workmen in collaboration with NSDC. Job Roles Identified and currently selection of Training Partner (TP) is in hand by NSDC in consultation with NMDC.


Strengthened the Quality Circles movement, by giving more thrust on quality circles activities to solve problems and facilitate high standards in the workplace by participation from all projects


Ý    Conducted Preventive Vigilance Training Module for mid-career Executives by covering a total of 478 (Mid-career) & 186 (Induction Level) upto 2022-23 plus employees sensitizing them on various Preventive vigilance aspects.


There has been no foreign training in terms of government directives.

Ý    Mining Indaba teams deputed to South Africa, P-DAC teams deputed to Canada, IMARC teams deputed to Australia, Vishwa Hindi Sammelan, Fiji and Company work related viz pre-dispatch Inspection, Board Meeting w.r.t to Legacy.

Ý    Conducted Successfully 2 Advanced Management Program (AMP) Study tour for 13 nos Senior executive in association with ASCI, Hyderabad.


Successfully organised and conducted various specialised programme during the year viz. Web based learning programmes, Professional Residential programme with Premier Institutions, Specialised Curated programmes, Technical, Managerial & Behavioural and also on Health and Wellness.


SAP Learning Solutions & HRD Dash Board.

While learning can be challenging at times, it is important to embrace this challenge and view it as an opportunity for growth and development. By committing to lifelong learning and embracing new challenges, we can unlock our full potential and achieve greater success in all areas of our lives.

In line with the implementation of ERP-SAP in NMDC, Corporate HRD is working on the SAP Learning Solution Module which paves the way for this development and delivers high-quality training and development programs that are scalable, flexible, and cost-effective. They can also provide valuable data and insights to help organizations continuously improve their training programs and drive business success and opens up new learning possibilities for learners, trainers, companies, and educational institutions.

In NMDC, SAP Digital initiatives are extremely important for learning and development, as they help in delivering training programs more efficiently and effectively.


Vigilance department has taken several initiatives during the year. Emphasis was laid on adequate checks and balances in the form of well-defined systems and procedures.

Various sensitising programmes were conducted for awareness on vigilance matters for the employees of the Corporation like:

I.    Interactive session, talk by Shri K.RSingh, Director (Procurement Policy Division), Dept, of Expenditure, Ministry of Finance, New Delhi on Recent developments in Public Procurement Policy and challenges ahead on


2.    Interactive session, talk by Shri M.Srinivas, Director (Vigilance)-Engg., Ministry of Railways, New Delhi on Vigilance Perspective in Tenders and Contracts on 14.09.2022.

3.    Interactive session, talk by Dr. Upender Vennam, IPoS, CVO, BDL, Hyderabad on

15.10.2022 from 10:30 am to 01:30 pm on Training for Inquiry Officer and Presenting Officer.

4.    Interactive session by Shri Prakash Mirani, JS & Addl. CEO, GeM, Ministry of Commerce & Industry, New Delhi on 24.02.2023 on GeM Contracts & Management with focus on Customized bids.

The vigilance functionaries at the projects have conducted regular training classes for the employees on vigilance matters.

Executives of the Vigilance Department have attended training/workshops organized in India.

1.    Officers have been imparted training on "Vigilance course" during September-2022 and February-2023 at CBI Academy, New Delhi.

2.    Officers have been imparted training on "Preventive Forensics" at National Forensic Science University, Gandhinagar during October-2022.

3.    Officers have been imparted training on "Contract Labor Payment related issues and Challenges" during March-2023.

The systems and procedures including the document handling, maintenance of records is maintained to ensure that the Vigilance Department is conforming to the Quality Management Systems as per ISO 9001:2015 Standards. Vigilance Department in NMDC has been upgraded to ISO 9001:2015 standards of Quality Management System (QMS) for which M/s Vexil Business Process Services Private Limited, Delhi was engaged for routine surveillance audits and Quality Certification.

During the year (April 2022 - March 2023), 100 Surprise checks, 72 Regular inspections, 58 Files Study, 16 CTE Inspections, 18 Audit Paras study are conducted by Vigilance Department.

Complaints received were taken up for investigation and necessary suggestions for system improvement/ disciplinary action wherever required were recommended.

A total of 80 complaints were received through various source information (2 of PI DPI, 4 of CVC-NA, 1 of CVC-IR, 4 of MoS, 2 of CBI & 67 of Others) during the period which were handled/disposed of as per CVC guidelines/complaint handling procedure.

E-Platform: As part of the implementation of "Leveraging of Technology for transparency" in all the transactions, details of contracts concluded above Rs. 10 lakhs, all works awarded on nomination basis, single tender basis above Rs. 1 lakh, information regarding bill payments to the contractors, etc. are provided on the company's website. Vigilance department made all out efforts for E-Procurements through online e-procurement platforms like MSTC, GeM etc. and it has now been ensured at NMDC that all tenders of value 2 lakhs and above shall be floated / issued through E-Procurement platform. In this regard, Vigilance dept, is regularly creating awareness by intimating fresh guidelines issued by statutory authorities / agencies and advising/ involving the concerned departments for compliance.

NMDC has adopted the Integrity Pact since November 2007. As per the suggestions given by Vigilance Department, the threshold value has been decreased to 1.0 Crore w.e.f. 07.09.2018 for both Procurement and Contracts as against the earlier threshold limit of Rs. 20 crores in case of Civil works and Contracts and Rs. 10 crores in case of Procurement on approval of NMDC Board. The Integrity Pact has been entered into in 191 contracts with a value of Rs. 1,698.23 Crores during the period, April 2022-March 2023. All the contracts wherein the Integrity Pact was to be signed as per the threshold limit was adhered to and more than 90% of the total values of the contracts are covered under Integrity Pact.

As a part of preventive checks, a study on implementation and applicability of "Integrity Pact (IP)" in NMDC inline with the latest Standard Operation Procedure issued by CVC (vide

circular no. 05/01/22 dated 25.01.2022), was carried out at Vigilance Department at HO. Certain points of CVC circular no. 05/01/22 dated 25.01.2022 were not incorporated in existing IP format of NMDC and CMM-2016, are suggested for incorporation and be updated in Integrity Pact format provided in both Contract Manual and Materials Management Manual.

To ensure transparency in vigilance works, necessary action has been taken for rotation / repatriation of vigilance officers, and for inducting of new officers in Vigilance department for compliance of CVC guidelines and 6 Officers have been inducted in June-2022 and 4 officers have been repatriated to their parent department. Identification of Sensitive Posts has been carried out on 01.10.2022. The rotational transfer of officers of other departments was also effected in compliance of CVC guidelines and a total of 112 officers were rotated / transferred during 2022-23.

The Quarterly Review-cum-Coordination meeting of the Vigilance dept, with CVO was held in June 2022, in September 2022, in November 2022, December 2022 & in February 2023. The said meeting was attended by all the Vigilance Officers. Project-wise presentations were made and matters pertaining to vigilance inspections and system improvements recommended / implemented etc. were discussed. Few common matters were also discussed in open-house wherein all VOs exchanged their views and gave valuable suggestions.

In pursuance of CVC directions / guidelines received during the month of August/ September 2020, a 02 days module and Road map for imparting training on preventive vigilance separately for Induction level (new entrants) and Mid-career level Executives were drawn up and was integrated with our HRD's regular training plan. A total of 43 trainees / new inductees were covered for the Induction level training and 186 trainees / mid-level executives were covered under mid-career level training in the training programmes conducted under the Preventive Training Module as suggested by CVC.

With the intervention of Vigilance Dept., Circular on detailed revised guidelines & procedure regarding storage & handling loss for issue of HSD & MS has been issued on 19.10.2022.

It has been informed & discussed during Structured Meeting of CVO with CMD on

27.09.2022, 28.12.2022 and 18.02.2023 to update Contract Manual and Materials Management Manual, etc. in-line with the Manuals released by the Department of Expenditure on 1st July 2022.

Ethical and transparent practices in any organization are as essential as generating revenue, and neither of these can be sacrificed for the other. Hence, it is imperative to ensure that the decisions taken are not only fair, but also appear to be fair. To accomplish this, it is vital to have written down procedures and also to ensure that they are being followed. For the purpose, NMDC Vigilance Manual has been released on 2nd June 2022. This first edition of the NMDC Vigilance Manual attempts to provide information on essential guidelines and procedures established by the Central Vigilance Commission and other organizations involved in anti-corruption activities.

With the purpose of enhancing transparency and accountability among the employees, to stress on the importance of the monitoring system and the prevalence of the noteworthy practices in our organization, 2 Editions of Subodh have been released on 11th November 2022 and 18th February 2023.

Vigilance Portal: NMDC's vigilance department has taken the initiative to implement an Online Vigilance Portal in an effort to digitalize existing processes, in order to adhere to NMDC's digital mission and to address existing flaws. It will improve transparency, accountability and data integrity. NMDC Vigilance portal is an end-to end digital platform for all Vigilance functions from lodging of a complaint to till its logical conclusion. This will also have provisions for recording various preventive, punitive and administrative matters of vigilance department. This will be a digital repository for all vigilance activities. This will also provide data analytics like

age-wise pendency and status of complaints; department wise, area wise complaint/preventive check undertaken; frequency of complaint from same person or against same officials etc. This will help in preparation of proactive vigilance action plan and thrust areas on quarterly/annual basis.

The portal has been envisaged to include following modules:

1.    Online Complaint Management Module

2.    Preventive Checks Module

3.    DE Cases Monitoring Module

4.    Online Vigilance Clearance/status Module

5.    MIS reporting Module

6.    Management Dashboard

7.    Digital Knowledge Base

Structured Meetings with CMD have been regularly conducted on 29.06.2022,

27.09.2022, 28.12.2022 & 18.02.2023. Board Meeting was conducted on 13.10.2022.

System improvements suggested for Implementation during 2022-23:

As per the Action Plan of the Vigilance dept, for the year 2022-23, Surprise and Regular checks were conducted besides the study of files.

Irregularities and omissions under the provisions of the rules were identified and improvements in the systems were suggested wherever required. Totally, 54 System Improvement suggestions were recommended for implementation.

Some of the initiatives/system improvements, studies/suggestions/recommendations made during the period are briefed as below: -

1. Procurement of Compressor Oil Cooler (COC) Assembly, a study on observations of CAG Audit Report-2022 was carried out by Vigilance dept. Bacheli, which mainly pointed out

the non-availability of the equipment due to inordinate delays in procurement. Competent Authority had approved the following System improvements:

a)    Inordinate delays should be avoided for efficient running of the machinery.

b)    The decision to process the Procurement through OTE or LTE or STE should be taken by the indenter based on the required item, available details of the required item.

c)    The negotiation should be exception rather than the rule and may be resorted to only in exceptional circumstances.

2.    Procurement of PPE kits at Bacheli Complex, a detailed study was carried out by Vigilance dept., Bacheli. Competent Authority had approved the following System improvements:

a)    The purchase based on the sample should be avoided. The procurement based on the sample will not give an equal opportunity to all the prospective bidders and there will be scope for interpretation.

b)    To issue proper guidelines for the time-frame for acceptance / rejection of the material.

3.    Procurement of Steel Cord Belt, a study was carried out by Vigilance dept, at HO which mainly highlighted the reason for procurement of the item on Single Tender Enquiry (STE)/Nomination basis. Competent Authority had approved the following Ssystem improvements:

a)    Inordinate delays should be avoided for efficient running of the machinery.

b)    The organization should develop greater number of sources for the continuity of the supplies, for the price stability etc.

c)    The organization may develop a testbed comprising the toughest parameters for testing the product at the project sites. This will give an edge for the organization as it is possible to test the item before put into the use.

4.    Accumulation of Non-Moving Inventory, a

study on Audit para was carried out by Vigilance dept. Kirandul. Competent Authority had approved the following System improvements:

a)    There should be regular review mechanism & survey of non-moving items at each of the Production Unit of NMDC and provision through ERP for the same.

b)    The Planning and Coordination Department should forecast the requirement and indent correctly.

c)    Materials Management Department should enter into Rate Contracts or Long Term Contracts, for Just-in-time concept for the receipt of the material, as and when required.


As per CVC Circular No. 20/09/2022 dt. 08/09/2022, Vigilance Awareness Week-2022 was observed at NMDC Limited from 31st Oct, 2022 to 6th Nov, 2022 on the theme of VAW-2022, i.e., "Corruption free India for a developed Nation".

On the Inaugural day of VAW-2022, Integrity Pledge was administered to the employees of NMDC at HO by CVO and by respective Project Heads/Regional Managers at Projects and ROs. Hyperlink for taking e-pledge was also provided at NMDC's website.

During observance of Vigilance Awareness Week-2022, following Participative Vigilance activities were conducted:

1.    Address by Eminent Speaker & Director, Shri A.S.Rajan, Sardar Vallabhbhai Patel National Police Academy, Hyderabad on 31.10.2022 at 03:30 pm on the theme of VAW-2022, Corruption Free India for Developed Nation.

2.    Vendors Meet was organized on 02.11.2022; 67 Vendor Rep.s attended, their views and grievances were discussed.

3.    Interactive session by CTE, Shri Ashok Kumar, CVC, New Delhi on 04.11.2022 at 10:30 am on Procurement of Goods, Services and Works.

Various activities including awareness programmes and prescribed individual/inter-departmental competitions like Slogan writing, Essay writing, Elocution, Quiz competition, poster drawing competition on the VAW theme were arranged for the employees during the Vigilance

Awareness Week-2022. Awareness and sensitization programmes, Gram Sabhas & Grievance redressal camps were conducted at project level for other stakeholders also as a part of VAW-2022. For propagation of VAW-2022 theme, wide display of banners & posters, newspaper release/teasers and extensive use of social media was undertaken. An article on 'Ethical dilemma in Public Procurement-A Pragmatic Approach at NMDC' by CVO, NMDC was published in CVC's News Letter 'VIGEYE VANI' during the campaign period in Oct, 2022 edition. An In-house journal of NMDC Vigilance dept., "SUBODH" was also released during the VAW-2022 week by CMD, NMDC Ltd. Various competitions for school/college children were conducted at Head Office & all Projects. All the winners/participants of various activities/competitions were given away the prizes during the Valedictory Function held on the concluding day of VAW-2022 on 5th Nov, 2022 at HO and all Projects.

During the observance of VAW-2022, all the precautions as per COVID-19 guidelines were strictly followed.

During VAW-2022, Land records have been examined exhaustively in mission mode and all records are available with Estate Dept./Respective Project.


Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its knowledge and ability, confirm that:

i)    in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures;

ii)    ii. they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

iii)    they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv)    they have prepared the annual accounts on a going concern basis;

v)    they have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively;

vi)    they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Based on the framework of internal financial controls and compliance systems established and maintained by the Company, the work Integrated Annual Report 2022-23 Directors' Report | 86 performed by the internal, statutory and secretarial auditors and external consultants, including the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the audit committee, the Board is of the opinion that the Company's internal financial controls were adequate and effective during FY 2023.


The Independent Directors have given a declaration on meeting the criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013 and Regulation 25(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in the FY 2022-23.


All Directors are appointed by Govt, of India including fixation of their remuneration.


During the year under review 9 meetings of the Board were held. For further details, reference

may kindly be made to Corporate Governance Section of the Annual Report.


A long-term strategic management plan (SMP), 'Vision 2025' has been formulated which envisages an iron ore production capacity of 67 MTPA. This expansion plan includes brownfield expansion of existing mines and developing greenfield mines in partnership with Chhattisgarh Mineral Development Corporation. A joint venture of NMDC & CMDC (NCL) is in process of starting operations from Dep-13 Iron Ore Mine in the Bailadila Region. The Government of Chhattisgarh has notified the allocation of Dep-4 to NMDC in Sep'19 for prospecting and mining operations.

India is presently the world's second-largest producer of crude steel. In FY'23, the production of crude steel stood at 125.5 MT with a growth of 4.8% over the previous year. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India's manufacturing output.

The Government of India announced a production-linked incentive (PLI) scheme for speciality steel. The scheme is expected to attract investment worth ~Rs. 300 billion (US$ 3.6 billion) and expand speciality steel capacity by 25 million tonnes (MT) to 42 MT by FY'28. NMDC is also reviewing its long-term plan based on the increase in demand & growth in the iron & steel industry after the pandemic. As per National Steel Policy, the country has envisaged increasing its steel production capacity to 300 MTPA by FY'31. The wide range of continuing infrastructure projects could support growth in steel demand to reach our envisaged target of per capita steel consumption of 160 Kg by FY'31 in the long term. NMDC is actively pursuing an Iron Ore Production ramp-up plan to further increase its iron ore production capacity to 100 MTPA by FY'30.

In FY'23, the Company has progressed significantly on various activities to enhance its production capacity. The augmentation of

Capacities of crushing and screening plants at Bailadila and Donimalai is in process and various statutory clearances are being processed. There is also progress in the construction of the fifth line in Screening Plant Dep-5 & up-gradation of the downhill conveyor system in BIOM Bacheli Complex. Rapid Wagon Loading System (RWLS-I) and New Screening Plant (SP-III) at BIOM Kirandul Complex are under construction. Further, NMDC is planning to enhance the EC capacities of mines in the mining complexes of Bailadila and Donimalai.

To augment the evacuation capacity from the Bailadila sector, many projects & schemes are being taken up like doubling of KK line, Rowghat-Jagdalpur line, Slurry Pipeline, etc. Doubling of KK line is being executed by Railways as deposit work is in full swing and two completed sections have been opened for traffic. Out of 150 km of planned doubling of railway line, 79% of work has already been completed & the project is likely to be completed by FY'25.

The completion of this project will augment the evacuation capacity of the Bailadila sector through the Railway line from 28 MTPA to 40 MTPA.

Activities for Phase-1 of Slurry Pipe Line including 2 MTPA capacity Ore Processing Plant (OPP) at Bacheli, 15 MTPA capacity Slurry Pipeline System (130 km) from Bacheli to Nagarnar and 2 MTPA capacity Pellet Plant at Nagarnar, have also been initiated. The project is likely to be completed in FY'26.

Ministry of Coal has allocated two Coal Blocks namely Tokisud North Coal block & Rohne Coal Block on 1 7th March 2020 for commercial sale & captive purposes. NMDC has appointed MDO for Tokisud North Coal Block and plans to start its operations in FY'24.

Besides the expansion plan, the SMP also envisaged the introduction of systemic interventions in six strategic transformation areas - Business, Operations, Sustainability, Capital Projects, Human Resource and IT. NMDC has implemented an ERP system across all projects & steel plant in FY'21, License-to-Operate (the computer-based model in which all the statutory approvals will be brought under one umbrella).

Implementation of Mines Transport Surveillance System (MTSS)- Weighbridge automation/Virtual Fencing/ Geo-Fencing/ GPS/ Proximity Warning Device for dumpers/ CCTV Surveillance/ Wireless Networking has been completed at Donimalai. NMDC has further taken initiative to venture into the fleet management system and it is being implemented in Bailadila Sector. Efforts are being made to install an automatic (robotic) sampling & analysis system, vision enhancement system, conveyor monitoring system and 3D Volumetric and Laser Scanner System to enhance its digital strength.

NMDC is publishing Sustainability Report as per the Global Reporting Initiative (GRI) Standards, capturing initiatives taken by NMDC over the years in Economic, Environmental and Social aspects. As the world is now traversing more uncertainty than ever, NMDC is focusing on building sustainable and resilient businesses to survive in the long run and to make a meaningful contribution to the battle against climate change through an increasing investing environment, social and governance (ESG) initiatives. Three Mines of NMDC has been Awarded 5 Star Rating by the Ministry of Mines.


The following Directors ceased to be Directors on the Board of the Company:-



(i)Shri Sumit Deb


ii) Shri Somnath Nandi, Director (Technical)


iii Smt. Rasika Chaube


The following Directors were appointed on the Board of the Company:-


Date of Appointment

i) Shri Abhijit Narendra, Govt. Nominee Director


ii) Shri V. Suresh, Director (Commercial)


iii) Shri Vinay Kumar, Director (Technical)


The Board places on record its deep appreciation for the valuable contribution made by Shri Sumit Deb, Smt. Rasika Chuabe and Shri Somnath Nandi during their tenure on the Board of the Company.

26.0 AUDIT

a. Statutory Auditors

On the advice of the Comptroller and Auditor General of India, New Delhi, your Company appointed the following firms of Chartered Accountants as Statutory Auditors of the Company for the year 2022-2023:



UnitStatutory Auditors

1 Head Office R & D Center SIU &


M/s SAGAR & ASSOCIATES Chartered Accountants House No.6-3-244/5 Saradadevi Street, Premnagar, Hyderabad Telangana: 500 004

2 Kiradul Complex Bacheli Complex NISR Jagdalpur & Vizag Office

M/s AGASTI & ASSOCIATES Chartered Accountants 334/24,Gurunanak Nagar Durg, Chhatishgarh:- 491 001

3 Donimalai Complex

M/s YOGANANDH & RAM LLP Chartered Accountants Third Floor, Shri Narasimha Nilaya No. 263/1,

Second Cross, T. Mariappa Road, Second Block, Jayanagar, Bengaluru Karnataka : 560 011

4 Panna Project

M/s Neeraj Prakash & Associates

Chartered Accountants 328/208, Lukerganj Purosottam Kunj Near Dr. Banerjee, Allahabad

Uttarpradesh : 211 001

b.    Cost Auditors

M/s B Mukhopadhyay & Co,

Cost Accountants B 20, Amarabati,


Kolkata - 700 110.

c.    Secretarial Auditors

M/s D. Hanumanta Raju & Co.

Company Secretaries B-l3, FI, RS. Nagar Vijaynagar Colony Hyderabad - 500 057


All the provisions of the RTI Act 2005 are being complied with by the Company. In order to ensure timely disposal of RTI applications, PIOs have been appointed in each of NMDC's Units. A close monitoring of the RTI applications received is done to ensure that the replies are sent in time. Transparency Audit /Third party Audit towards proactive disclosure under RTI Act, 2005 has been conducted.

The details of RTI applications received in Head Office and all the Units of the Company during the period 01.04.2022 to 31.03.2023 are as follows:


Opening balance as on 01.04.2022

Applications received during the year




Balance as on


Online applications





Offline applications













The details of awards received by the Company are as follows: -

•    NMDC received the Public Relations Awards 2022 conferred by Public Relations Society of India (PRSI), winning the first position in four categories i.e. Corporate Website, Annual Report, Layout and Design of Newsletter and CSR Corporate Video on 21 st Apr'22 at Hyderabad.

•    NMDC won the Gold Award in the category of social responsibility for the project 'Promotion of Technical Education & Skill Development in Dantewada District through NMDC ITI Bhansi' and the Silver Award in the category of digital inclusion for the 'Project Kalpataru' for ERP implementation in the 80th SKOCH Summit and SKOCH Awards on 9th Apr'22 conducted by SKOCH, New Delhi.

•    Donimalai Iron Ore Mine has received "PLATINUM AWARD" Under Apex India Best FIRE & SAFETY MEASURES Award 2022 on 22nd Aug'22.

•    Kirandul Iron ore Mine has received "CSR Award 2022" for its strong focus and contribution to education by 'Greentech Foundation' in the 9* CSR India summit and Awards ceremony held on 24th Aug'22 at Guwahati.

•    Kumarswamy Iron Ore Mine has received "Outstanding Achievement" in Environment Protection by 'Greentech Foundation' on 24* Aug'22 at Guwahati.

•    NMDC received the Rajbhasha Kirti Award for 2021 -22 at the Hindi Diwas Samaroh organised by the official language department, Ministry of Home Affairs, Government of India on 14* Sep'22 at Surat.

•    NMDC received the National Awards for Excellence in CSR and Sustainability bestowed by ET Ascent on 21rf Sep'22 at Bengaluru.

•    NMDC recognized as the 'Best PSU1 in other Minerals & Metals (Central PSUs) category by Dun & Bradstreet during its 'PSU and Government Summit 2022' in the publication 'India's Top PSUs 2022' released on 29* Sep'22.

•    NMDC received following awards from Town Official Language Implementation Committee, Hyderabad-Secunderabad on 28* Oct'22.

o First Prize amongst mid-sized PSUs for implementation of Official Language

o Best Magazine award to our Hindi Magazine "Khanij Bharati" in E-magazines category amongst PSUs in Hyderabad

o Seven Officers received various prizes in Hindi Competitions held by TOLIC at Town Level.

•    NMDC bagged the Champion of Champions Award, sweeping the 16th PRCI Global Communication Conclave 2022, to bring home fourteen Corporate Communication Excellence Awards, i.e. Gold awards for Most Resilient Company of the Year; Internal Communication Campaign, Corporate Brochure; Best PSE Implementing CSR. It won Silver Awards in the categories of Best Use of CSR for Childcare; Corporate Community Impact; Best Corporate Event; Unique HR Initiatives; Annual Report; Arts, Culture & Sports Campaign and Bronze Awards for Visionary Leadership; Website of the Year;

Innovative Environmental Program and Consolation Award for Best Use of Social Media. The awards were organised by Public Relations Council of India (PRCI) in Kolkata on 14* Nov'22,

•    NMDC won the coveted IEI (Institution of Engineers, India) Industry Excellence Award 2022 for its outstanding business performance at the inaugural session of the 37th Indian Engineering Congress in Chennai on 16* Dec'22.

•    NMDC won 7 awards at the Public Relations Society of India (PRSI) National Awards 2022 for its Public Relations and CSR efforts towards building an Atmanirbhar Bharat in Bhopal on 25* Dec'22.

•    NMDC swept five awards i.e. PSU Leadership Award 2022, CSR Leadership, CSR Commitment (Overall), HR Excellence (Overall) and Nation Building at the "Governance Now 9th PSU Awards" held in New Delhi on 16*Feb'23.

•    NMDC stall won 2nd prize in the annual conference & awards function of the IME Journal, Bhubhabneswar at AKS university, Satna on 25* Feb'23.

•    NMDC's iron ore mines - Kirandul Deposit -14 MZ, Kirandul Deposit - 14, NMZ and Bacheli Deposit - 5 have been awarded 5 Star Ratings by the Indian Bureau of Mines (IBM) in Nagpur on 2nd Mar'23.


NMDC being a PSU, the guidelines of Central Vigilance Commission (CVC) are applicable which provides adequate safeguard against victimization of the employees. The Board of Directors at its 451 * meeting held on 20.09.2012 approved the internal Whistle Blower Policy of NMDC. NMDC has effectively implemented its internal Whistle Blower Policy under CVO NMDC, the designated Nodal Officer for the purpose, which has been uploaded in the website of the company under the link

Document/405f4d8884cb49bdbf42fc548d4edd a2 20210920061059Q02.Pdf



NMDC being a Government Company, the terms and conditions of appointment and remuneration of Functional Directors and Independent Directors are determined by the Government through its administrative Ministry, Ministry of Steel.

In terms of notification dated 5th June, 2015 and 13th June, 2017 issued by Ministry of Corporate Affairs, Govt, of India, Government Companies have been exempted from applicability of some of the provisions /sections of the Companies Act, 2013 inter alia Sub-sections (2),(3) & (4) of Section 178 regarding appointment, performance evaluation and remuneration.


The Board at its 442nd meeting held on 19.01.2012 has approved the Risk Assessment and Risk Mitigation Policy / Enterprise Risk Management (ERM) of the Company.

Accordingly, the Company has constituted a Board level Risk Management Committee comprising of Functional Directors (excluding CMD) and one Independent Director. The constitution of the Committee is as under:-

Risk Management Committee

1)    Shri Vishal Babber, Independent Director

2)    Director (Finance)

3)    Director (Commercial)

4)    Director (Production)

5)    Director (Personnel)

6)    Director (Technical)

The Company as a part of its current Risk Management Policy has identified top Risks That Matters (RTMs) and documented Mitigation Plan / Strategy for the same

During the year under review, three meetings of the Board level Risk Management Committee

were held.


The Board of Directors has approved Dividend Distribution Policy which has been uploaded in the website of the company under the link

Document/ae4bb5f07e7e4654a3f881ccec7b91 63 20210920060806207.pdf

37.0    ERP Implementation, Digitalization and IT Infrastructure

In the process of continuous improvement in Digitalisation and Innovative activities, your company has rolled out Dash Boards for the functionalities like Material Module, Quality Management, Human Resource Management & Environment, Health and Safety etc. Launched Ex-employee Portal & Vigilance Complaint Portal.

As a part of automated data capturing on real time basis, Belt Scales weightometers of Plants in Donimalai Mines, Kumaraswamy Mines, Dep-10&11A of Bacheli Mines are integrated with SAP Integration of Automated Data Capture for other mines is under progress and will be done shortly.

Facial Biometric Recognition System for attendance has been launched also in Kirandul, Bacheli & Donimalai and integrated with SAP

Towards Revamping of IT Infrastructure & Technology refresh for providing seamless back up and support to ERP and other Future Digital Initiatives, an MOU entered with RailTel for Implementation of IT Network Infrastructure on

01.12.2022. The age old, redundant network infrastructure will be replaced shortly.

Further automations for digitalisation environment like implementation of Vendor Invoice Management System, development of E-Measurement Book, Integration of SAP with Fleet Management System, Hospital Management System are in process and will be completed shortly


1. A Facial Recognition System based attendance recording system has been

implemented at all the units of NMDC. This system is interfaced with SAP for preparation of paydata used for payroll.

2.    Reward Point Management System along with IR Clearance module has been made live at Bacheli, Kirandul and Panna. This system automates and digitizes the process of issue of manual food coupon being issued to contract labour.

3.    A work order has been issued to M/s.YRO Systems Pvt. Ltd, Chennai for implementation of Hospital Management System (HMS) at all project hospitals of NMDC. Implementation work is in progress.

4.    Technical support is being extended to the team for implementation of Fleet Management System (FMS) at Bailadila Complex.

5.    Internet leased lines at Bacheli and Donimalai have been upgraded to 200 Mbps and Kirandul to 300 Mbps respectively.

6.    An MOU has been signed with M/s.Railtel for ICT and Digital Transformation Services in NMDC.


A Report on Management discussions and Analysis as required in terms of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is at Annexure-I.




Report on Corporate Governance is at



As required under the provisions of the Companies Act, 2013, the Annual Return is hosted on the Company's website and can be accessed from the link https:www.nmdc. .co. in/investors/financial-details/annual-return


In compliance with Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Business Responsibility & Sustainability Report (BRSR) is at Annexure-IV.


Secretarial Audit Report in Form No.MR-3 pursuant to Section 204(1) of the Companies Act, 2013 and Regulation 24A SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is at Annexure-V.


Report on compliance with principles of Global Compact is at Annexure-VI.



Report in terms of the Companies (Corporate Social Responsibility Policy) Rules, 2021 is at Annexure-VIII. The Report on CSR inter alia, outlines details of CSR Policy and various CSR initiatives of the company for the year under review.


Details to be provided in the Annual Report in terms of recommendations made by the Committee on Papers laid on the Table (Rajya Sabha) in its my Report is enclosed at Annexure-IX.


Your Directors gratefully acknowledge the support, cooperation and guidance received from the Ministry of Steel, Ministry of Mines, Ministry of Forests & Environment, Ministry of Corporate Affairs, SEBI, DIPAM and other Departments of Government of India and the State Governments of Andhra Pradesh, Chhattisgarh, Karnataka, Madhya Pradesh, Jharkhand and Telangana.

Your Directors acknowledge the support extended by the valued and esteemed international and domestic customers, Shareholders stakeholders, MMTC, Chennai Port Trust, Visakhapatnam Port Trust, Railways and other Departments of the Central and State Governments. We believe that our long-term success is dependant on our domestic customer relationship and responsiveness. We will do everything possible to provide our customers better, timely and value added services.

The success of your Company is due to the commitment and dedicated efforts of the managers and employees at all levels. Your Directors place on record their appreciation and also acknowledge the support and co-operation of All India NMDC Workers' Federation and their members for the smooth functioning of the Company's operations.