Your Directors are pleased to present the 64th Annual Report on the performance of your Company, together with the Audit Report and Financial Statements for the year ended 31st March 2022 and the Report thereon by the Comptroller and Auditor General of India.
1.0 (A) STATE OF COMPANY AFFAIRS & PERFORMANCE HIGHLIGHTS
During the year under review, the Company has recorded turnover of Rs 25,882 crores, achieved Profit Before Tax (PBT) of Rs 12,981 crores and achieved Profit after Tax (PAT) of Rs 9,398 crores.
The major performance highlights are summarized as under:-
• The company achieved production of 42.19 MT and sales of 40.56 MT.
• Turnover for the year under review was Rs 25,882 crores as against Rs 15,370 crores in the previous financial year 2020-21 - an increase of 68.39%.
• Profit before tax (PBT) from continuing operations was Rs 12,981 crores compared to Rs 8,901 crores in the previous financial year 2020-21- an increase of 45.84%.
• Profit after tax (PAT) was Rs 9,398 crores compared to Rs 6,253 crores in the previous financial year 2020-21 - an increase of 50.30%.
• Net worth of the Company stood at Rs 34,844 crores as on 31.03.2022 - 17.10% higher than the previous financial year 2020-21 to Rs 29,756 crore.
• The Company declared an Interim Dividend of Rs 14.74 per share for FY 2021-22.
• Capital expenditure of Rs 2,849 crore has been incurred during the year under review.
• The Board of Directors at its 539th meeting held on 13.07.2021 inter alia, approved the Scheme of Arrangement between the Company and NMDC Steel Limited and their respective creditors and shareholders, entailing inter-alia demerger of Nagarnar Iron & Steel Plant (NISP).
• The Promoter (President of India, acting through and represented by the Ministry of Steel, Government of India) has sold 21,95,02,378 (7.49% equity shares @ Rs 165/- per share and raised an aggregate net amount of Rs 3651.37 crores through offer for sale.
• The Promoter (President of India, acting through and represented by the Ministry of Steel, Government of India) has sold 1,47,942 (0.005%) equity shares @ Rs 165.50 per share and raised an aggregate amount of Rs 244.84 crores through Employee Offer For Sale.
(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 inter 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 has been incorporated on 02.01.2015 as a Private Limited Company. The transfer of NISP shall be by way of a scheme of demerger into the wholly owned subsidiary company as incorporated by the name NMDC Steel Ltd.
The Board of Directors at its 539th meeting held on 13.07.2021 inter alia, approved pursuant to the provisions of Section 230 to 232 of the Companies Act, 2013 and the 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 inter-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 Indias 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 SPV 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 Companys stakeholders by demerging NISP into a separate company and subsequently inviting investors.
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.
Accordingly, to achieve the above objective, the Board of Directors of NMDC Limited have 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.
The broad contours of the scheme of demerger are briefly outlined as under:-
• Appointed Date: April 01, 2021 or any such other date as may be decided by the Ministry of Corporate Affairs, Government of India ("MCA");
• Effective Date: Date on which the certified copies of the order of the MCA sanctioning the Scheme are filed with the concerned Registrar of Companies;
• Scheme: Transfer of Demerged Undertaking:
Under the Scheme, the NMDC Iron & Steel Plant at Nagarnar, Chhattisgarh ( "Demerged Undertaking") shall be demerged from NMDC Limited ("NMDC") into NMDC Steel Limited ("NSL"), which is currently a wholly owned Subsidiary of NMDC;
• Scheme: Transfer of Assets and Liabilities:
All assets and liabilities of the Demerged Undertaking, except certain assets/liabilities as specified under the Scheme, will be 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 shall, without any further application, act, instrument or deed, issue and allot 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 will be 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 will be tax neutral on NMDC as NMDC will not receive any cash consideration;
• Record Date: Date to be fixed by the Board of Directors of NSL and NMDC for determining the shareholders of the NMDC to whom fully paid up equity shares of the NSL will be issued pursuant to the Scheme;
• Increase in Authorized Share Capital:
Upon the Scheme becoming effective, the authorized share capital of NSL will automatically stand 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, shall stand 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/- 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 are issued and allotted to the shareholders of NMDC shall be 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 NMDC and NSL and on payment of consideration on an arms 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 Arragement has been filed with National Stock Exchange of India Ltd, BSE Ltd and The Calcutta Stock Exchange Ltd.
Joint Petition dated 18.01.2022 between NMDC Ltd., (Applicant / Demerged Company) and NMDC Steel Ltd. (Applicant / Resulting Company) has been filed before the Ministry of Corporate Affairs, Govt. of India vide File No.24/1/2022-CL-III 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.
The Demerged Company M/s NMDC Limited and Resulting Company M/s NMDC Steel Limited have 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
(iii) 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), the scheme
(iv) To dispense with the requirement of convening the meeting of equity shareholders of Resulting Company.
(v) To dispense with the requirement of convening the meeting of the unsecured creditors of the Resulting Company.
(vi) Directing issuance of notice of meetings of equity shareholders and unsecured creditors of the Demerged Company.
(vii) 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)
(viii) 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.
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.
The Demerged Company has 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.
The Resulting Company has 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.
Pursuant to the Ministry of Corporate Affairs Order dated 11.04.2022, a meeting of the Equity Shareholders of the Demerged Company has been convened on
07.06.2022 for considering the Scheme of Arrangement and Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, Government of India has been appointed as the Chairperson of the Equity Shareholders meeting. Due to unforeseen circumstances (unavailability of Chairperson) and due to unavailability of quorum, the meeting has been adjourned to 28.06.2022.
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 has been convened on 07.06.2022 for considering the Scheme of Arrangement. Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, Government of India has been appointed as the Chairperson of the unsecured creditors meeting. The meeting was duly convened on 07.06.2022 for seeking the approval of the unsecured creditors in the matter of Scheme of Arrangement and due to unavailability of the Chairperson appointed by MCA, the meeting of the unsecured creditors is duly adjourned to 28.06.2022.
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).
(C) Extension of Mining Lease of Donimalai Iron Ore Mine (ML No. 2396) for 20 years from 04.11.2018 to 03.11.2038 as per the provision of the Mineral (Mining by Government Company) Rules, 2015
The Government of Karnataka, while renewing the lease of NMDCs Donimalai Iron Ore Mine, had imposed a new condition asking for a premium of 80% on the average sale value. As the demand of the State Govt. was not as per the provisions of the MMDR Act -1957 and Mineral (Mining by Government Company) Rules, 2015, the company requested the State Govt. to reconsider its decision.
Since there was no positive response from the State Govt, the company has suspended its operations from 4th November 2018 and moved to the Honble High Court of Karnataka praying for a suitable direction in the matter. The Honble High Court of Karnataka in its judgement dated 10th July 2019 has passed an order setting aside the condition imposed for levying 80 % premium. On the basis of the judgement, NMDC has requested the State Govt. to consider the execution of Lease Deed of Donimalai Mine.
The Government of Karnataka issued an Order dated 17.08.2019 withdrawing the approval for extension of the Donimalai mining lease and with a direction to the Director of DMG to auction the said block. In this regard, the Company on 19.08.2019 filed Revision application before The Honble Mines Tribunal, Government of India. Meanwhile, the State Government issued a notification dated 20.08 .2019 inviting tender for auction of the Donimalai Mining block. 0n 21.08.2019
Honble Mines Tribunal heard the submissions and stayed the Order dated 17.08.2019 issued by the Government of Karnataka withdrawing the extension of lease and any consequent action thereon until the next date of hearing.
On 28.08.2020, a high-level meeting was conducted at Bengaluru between the Honble Chief Minister of Karnataka and Union Minister of Coal & Mines, in the presence of the CMD - NMDC Ltd. and senior officers of Centre and State Governments.
In the meeting it was decided to extend the Mining Lease of Donimalai Iron Ore Mine with a temporary premium of 22.5 % of the average sale value published by IBM. It was also decided in the meeting that Ministry of Mines, GoI will review the "Mineral (Mining by Government Company) Rules, 2015" for suitable amendments to decide the additional amount payable apart from the royalty / other statutory levies in respect of Mining Leases of Government Companies granted prior to 12.01.2015 and a High-Level Committee shall be constituted to examine the modalities in this respect.
Subsequently, on 29.11.2020, Ministry of Mines, Government of India has given its approval for extension of Mining Lease of Donimalai Iron Ore Mine in terms of the proceeding of the meeting held on 28/08/2020. On 01.12.2020, Government of Karnataka, permitted NMDC to commence mining operations, as an interim measure with immediate effect at Donimalai Iron Ore Mine for which NMDC shall unconditionally pay to the State Government 22.5% of the IBM Sale Price (for Karnataka) apart from the Royalty and other statutory levies.
On 17.12.2020, Govt. of Karnataka ordered for execution of conditional mining lease deed of Donimalai Iron Ore Mine with effect from 03.11.2018 for a period of 04 years or till the implementation of High-Level Committee report, whichever is earlier.
Subsequently on representation of NMDC Ltd., on 10.02.2021 Govt. of Karnataka issued a modified order for execution of conditional mining lease deed for a period of 20 years i.e., up-to 03.11.2038 subject to the conditions in the Govt. Order dated: 01.12.2020 and 17.12.2020. NMDC executed the conditional Mining Lease deed on 12.02.2021 and same has been registered on 16.02.2021.
Donimalai Iron Ore Mine of NMDC Ltd. has resumed mining operations since 18.02.2021.
Further, it may be noted that Govt. of India has amended the MMDR Act - 1957 on 28.03.2021 and as per amended provisions all such Government companies or corporations whose mining lease has been extended after the commencement of the MMDR Amendment Act, 2015, shall pay such additional amount as specified in the Fifth Schedule of the Act for the mineral produced after the commencement of the MMDR Amendment Act, 2021. For such Mining Leases of Iron Ore an additional amount equivalent to 150 percent of the royalty will be payable. The additional amount shall be in addition to royalty or payment to the District Mineral Foundation and National Mineral Exploration Trust or any other statutory payment and the same is applicable to Donimalai Iron Ore Mine also.
(D) Impact of the Hon?ble Supreme Court of India Judgement with reference to the Writ Petition (Civil) No.114/2014, dated 02.08.2017 State Govt. of Chhattisgarh had been seeking compensation to be paid on the basis of the Common Cause Judgement of Honble Supreme court (Writ Petition Civil No 114 of 2014, dated 2nd August 2017) related to the mines in the State of Odisha. Show-cause notices were issued by the Chhattisgarh State Govt. for which the company has all along been reiterating the fact of nonapplicability of the said judgement of the Honble Supreme Court in the state of Chhattisgarh.
However, notwithstanding with the replies submitted by the company, Chhattisgarh State Govt. issued Demand notices on 15.11.2019 for an amount of Rs 1,623.44 Crore (Bacheli - Rs 1,131.97 Crore & Kirandul Rs 491.47 Crore) to be deposited within 15 days.
The Company paid an adhoc amount of Rs 600 Crore under protest and filed writ petitions in the Honble High Court of Bilaspur, Chhattisgarh and a Revision application with Mines Tribunal, Ministry of Mines, Government of India, New Delhi praying to set aside the demand notices.
Honble High Court of Bilaspur has heard the WPs on 19.02.2020. Honble High Court sought certain clarifications from the respondent & directed no coercive action and listed the case for further hearing. Due to COVID-19 situation, no further hearings could take place.
Revision application with Mines Tribunal, Ministry of Mines, Government of India, New Delhi has been heard on 09.03.2022, in which representatives of the State Government are directed to file comments/para wise reply within two weeks.
NMDC is pursuing the matter.
(E) Impact of Covid-19 Pandemic
The production performance of NMDC Ltd. during the FY 2021-22 was not impacted due to Covid-19 as the company has taken adequate precautions to ensure safety of the employees and workers. The company has undertaken an elaborate exercise of administering vaccines to all our eligible employees as per the guidelines of Ministry of Health & Family Welfare.
There was a limited impact of Covid-19 during the FY 21-22. During the second wave, a partial lockdown was imposed which affected the demand supply dynamics of iron & steel sector, the same affected the demand of raw materials e.g., iron ore during Q-1 FY 21-22. As the restrictions were lifted in subsequent quarters, NMDC volumes increased exponentially & as a result company could achieve more than 20% growth in terms of volume over previous year.
The COVID-19 had not impacted the operations of the company during the FY 2021-22.
2.0 PHYSICAL PERFORMANCE
|Product||Achievement||Percentage of change|
|Iron Ore (Million tonnes)||34.15||42.19||(+) 23.54 %|
|Pellets (Tonnes)||83,751||1,82,298.77||(+)117.67 %|
3.0 SALES OF IRON ORE
|Physical (in Million Tones)||Value (Rs. in crore)|
|Particulars||Achievement||% of change||Achievement||% Of change|
|Export through MMTC||2.29||0.00||%||1,749.69||9.19||(-) 99.47%|
|Total Sales||33.25||40.56||21.98%||15,233.70||25,546.66||67.70 %|
3.1 Other Sales
|Value ( in crore)||21.10||62.93|
|b) Sponge Iron|
|Value ( in crore)||-||-|
|c) Wind Power|
|Sales (lakh units)||1.59||1.47|
|Value ( in crore)||5.17||4.99|
|d) Pellet (In WMT)|
|Sales (In WMT)||92,773||1,96,972|
|Value ( in crore)||73.50||222.11|
4.0 FINANCIAL PERFORMANCE
4.1 Operating Results
|Parameter||Achievement||Percentage of change|
|Profit Before Tax (PBT) ( in crore)||8,901||12,981||(+) 45.84 %|
|Profit After Tax (PAT) ( in crore)||6,253||9,398||(+) 50.29 %|
|Net Worth (Rs. in crore)||29,756||34,844||(+) 17.10 %|
|Book value per share (?)||101.53||118.89||(+) 17.10 %|
|Earnings per Share (?)||20.62 (*)||32.07||(+) 55.53 %|
|(*) Adjusted on account of buyback)|
|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 has earned profit before tax from continuing operations of Rs 12,981 crores on a turnover of Rs 25,882 crores in comparison with previous years achievement of Rs 8,901 crores and Rs 15,370 crores respectively.
The Company has declared 1st Interim Dividend for FY 2021-22 @ Rs 9.01 per share in the month of Dec 2021 and 2nd Interim Dividend for FY 202122 @ Rs 5.73 per share in the month of Feb 2022 resulting an outgo of Rs 4,319.72 crores. The share of Government with equity stake of 60.79 % is Rs 2,626 crores.
4.3 TRANSFER TO RESERVES
The company proposed to transfer Rs 5,000 crore from net profit to General Reserve.
4.4 MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT: NIL
The company has not accepted any deposits covered under Chapter-V of the Companies Act, 2013 during the year under review.
4.6 NON-CONVERTIBLE DEBENTURES (NCDs)
During the year under review, the company has not issued any Non-Convertible Debentures (NCDs).
5.0 INTERNAL CONTROL SYSTEMS W.R.T. FINANCIAL STATEMENTS
Necessary disclosure in respect of Internal Control Systems and their adequacy has been made in Annexure-C to the Independent Auditors Report dated 26th May, 2022 which forms part of the Annual Report.
6.0 (a) PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013
Necessary details in this regard have been disclosed in the financial statements.
(b) PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES DISCLOSURES
Disclosure on related party transactions forms part of the Notes to the Balance Sheet both of Standalone and Consolidated.
(c) MAINTENANCE OF COST RECORDS
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.
7.0 (a) STATUTORY AUDITOR?S REPORT
The Audit Report for both Standalone and Consolidated Financial Statements for the year 2021-22 is unmodified and does not contain any qualification, reservation or adverse remark.
(b) SECRETARIAL AUDIT REPORT
The Secretarial Audit Report for the FY 2021-22 as done by M/s Hanumanta Raju & Co., Company Secretary in whole time practice contains qualifications and does not contain reservation or adverse remark.
NEW PROJECTS & BUSINESS DIVERSIFICATIONS:
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 2021-22, 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.
B. Projects in pipeline:
1. Screening Plant II- Donimalai Complex
2. New crushing Plant and Downhill Conveyor system at Dep-14 &11C
3. Town ship project at Kirandul
4. 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 SPIN 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-III project at Kirandul the site work in packages like site development package, MRSS packages, Dry circuit (major technological package) and RWLS are in progress.
The upcoming scheme in Donimalai Complex includes a Second Screening Plant of 10.0 MTPA capacity for handling the ROM from both Donimalai & Kumaraswamy mines in addition to the existing Screening Plant. Statutory clearances for 10.0 MTPA Screening Plant-ll are awaited.
Projects / Schemes to enhance evacuation 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 by Railways as a Deposit work and overall progress for this work is 76 %. Doubling of 85 Km rail line is already completed and is in operation. Another 21 km rail line doubling is expected to be completed by August-22. Works are in progress 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 through railway line from 28 to 40 MTPA.
NMDC has taken up an ambitious project of laying Slurry pipeline from Bailadila to Nagarnar and further up to Visakhapatnam. The Capacity of the line is 15 MTPA and this will be associated with facilities like beneficiation plants at Kirandul & Bacheli, pellet plant at Nagarnar. Laying of slurry pipeline between Bacheli and Nagarnar , 2.0 MTPA Ore Processing plant at Bacheli and 2.0 MTPA Pellet Plant at Nagarnar is taken up in Phase-1 for implementation.
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.
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. With this, NMDC has joined other major corporates in harnessing solar power which has assumed a greater significance in recent times. Further tender for Supply, Installation, and Commissioning of 425 kWp Roof Top Solar Power Plant in Bacheli Complex, Dantewada, CG was also awarded in Feb-22.
Steel Plant Project at Nagarnar, Chhattisgarh:
The State of the art 3.0 MTPA steel plant at Nagarnar is at advanced stage of construction completion and reaching its commissioning phase. Conducting cold trial, preliminary Acceptance Test etc of individual as well as integrated test of equipment under various Technological packages are in progress as pre-commissioning activities. Pre-commissioning activity has been started with heating of Coke-Oven battery. MECON has been awarded with the job of O&M (Operation & Maintenance) of plant during commissioning and subsequent operation of the plant.
The plant will produce an impressive array of products viz. HR Plates, API - 5L Quality Plates Sheets, HR Coils, High Carbon Steel, Silicon Steel and Automotive Steel.
Initiatives for Technological upgradation
1. Development of Vision Enhancement System for Foggy weather for Bailadila Complex (In Collaboration with CSIR-CIMFR)
To overcome the production loss due to foggy weather in the mine where visibility will be around 1 to 2 meters during monsoon season, NMDC and CSIR- CIMFR has made an agreement on 22.07.2019 for R&D collaborative project "Development of Vision Enhancement System for Foggy Weather" at BIOM Bacheli Complex Deposit 5 with total project cost of Rs 509.75 Lakhs of which Rs 230.51 lakhs was funded by Ministry of Electronics and Information Technology (MeitY) for technology development.
"Vision Enhancement System" is an intelligent driver assistance technique for effective visualization of haul road i.e., dump truck transportation path in the mine as well as loading / unloading areas during foggy weather.
The System was installed last year (FY 21-22) during rainy season and it was found that the vision for dumper operation needs further improvement. Accordingly, further intensive lab test and R & D activities have been undertaken for improvement in the system which will be tested during forthcoming monsoon in the month of July-Aug22.
2. 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 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 has been issued on 04.10.2021 and Contract Agreement has been signed on 14.10.2021.
M/s Amnex has started the work of survey of Mining Machineries for implementation of Fleet Management System at Bacheli and Kirandul Complex & preparation of Implementation Plan.
The time line for completion of all modules except Health Monitoring System is 9 Months. For Health Monitoring Modules, additional 6 Months time will be given for implementation.
3. 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.
4. Automated Capturing of Production & Dispatch data on real time basis from OCSL Plant Belt Scales of Kirandul, Bacheli & Donimalai Complex.
As part of first phase of digital ERP initiative in mining sector and to reduce human interference, increase productivity, utilize man power efficiently, storage of historic data in easily retrievable format, improve reliability of operation, having diagnostics, centralized control and integration with ERP (SAP HANA), it is proposed to integrate all the relevant belt scales of each OCSL Plant of Kirandul, Bacheli & Donimalai Complex with a centralized web based SCADA server for on line collection & display of production & dispatch data 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 with a completion period of 60 days from the date of approval of drawings i.e., 19.05.2022.
5. Implementation of Integrated Print Facility System with Freight Online Information System (FOIS) of railways at Loading Plant BIOM Bacheli Complex
As part of the drive towards reduction of turnaround times for rakes and to increase dispatches and various other benefits, railways (ECoR) had made it mandatory for implementation of integration of wagon loader print facility with FOIS at private railway sidings including BIOM Kirandul & Bacheli Complex.
The work was awarded to M/s Prudent Automation Pvt Ltd and the implementation of the above in NMDC Ltd was taken up and completed first at NMDC Kirandul mechanized railway siding on 15.06.2021.
In a similar way implementation was completed at NMDC Bacheli mechanized siding on 25.03.2022 and the system is working satisfactorily.
6. Replacement of existing Relay Logic Circuit (RLC) with Automation System in Crushing Plant & Downhill D-14 of BIOM Kirandul Complex
Crushing Plant & DH-14 of Kirandul Complex was commissioned in the year 1966 and the existing electrical control system for process is 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) it is proposed to upgrade the system from RLC to latest automation system. The proposal is in approval stage and further implementation will be taken up after award of work.
7. 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). The proposal also includes supply and commissioning of E-House for automation & IMCC and is in approval stage and further implementation will be taken up after award of work.
8.1 OVERSEAS PROJECTS / NMDC GLOBAL Australia
Legacy Iron Ore, Perth, Australia
Legacy Iron Ore Ltd is an ASX listed entity based in Perth, Australia with a focus on Gold, Iron ore and base metals. NMDC has 90.02% equity in the company.
Legacy Iron holds significant interest in Mt Bevan, Magnetite project in Western Australia with 1.17 billion tonnes of JORC Inferred & Indicated resource (@30.6% Fe). Legacy Iron also has Gold, Base metals & Tungsten tenements in Western Australia. Legacy has 22 tenements-Iron ore (01 tenement), Gold (17 tenements), Base Metals and Tungsten (04 tenements). All these tenements are in different exploration stages. Mt Celia is reaching Pre-feasibility Stage and Mt Bevan has defined Iron Ore resources. Other projects have valid targets of different commodities.
Exploration: So far Legacy has conducted 19,111m of RC and 2850m of diamond drilling in Mt Beven Magnetite Project, 2429 Mts RC drilling for Mt Bevan Nickel exploration, 30,173 Mts RC drilling and 1150 Mts diamond drilling in gold tenements and 2133 Mts drilling in Base metal tenements.
JORC resource at Mt. Celia Gold project now stands at 312,600 ounces @1.39 g/t gold. Legacy Iron is conducting Pre-feasibility studies in its Mt Celia Gold project with an aim to develop viable gold mining project.
Joint Development of Mt Bevan: To progress Mt Bevan iron ore project and conduct the prefeasibility studies, Legacy (60% stake) along with its partner Hawthorn Resources (40% stake) had signed JV agreement with M/s Hancock Magnetite Prospecting Ltd. Pursuant to this arrangement,
M/s Hancock will invest and undertake the developmental works in Mt Bevan. After completion of the pre-feasibility studies, Legacy will have 29.4% stake in Mt Bevan JV.
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 1.747 Million tons in FY22 (Both low ash & high ash) and exported 1.54 Million Tons.
8.2 Leases for minerals Iron Ore
lron 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:-
|Sl. No.||Name of Mining Lease||Area in Ha||ML Validity|
|1||Bailadila Deposit-11 (A,B & C)||874.924||10/09/2037|
|Sl. No.||Name of Mining Lease||Area in Ha||ML Validity|
|1||Donimalai Iron Ore Mines||597.54||03/11/2038|
|2||Kumaraswamy Iron Ore Mines||639.80||17/10/2022|
Kumaraswamy ML No. 1111- Extension of Kumaraswamy ML which is expiring in Oct-2022.
Your Company submitted application to Government of Karnataka on 22-02-2021 for extension of Mining Lease of Kumaraswamy Iron Ore Mines M.L. No. 1111 for a period of 20 years. Director (Mines) Department of Mines and Geology, Government of Karnataka forwarded the application on 05-01-2022 for the extension of Kumaraswamy Iron Ore Mining Lease (M.L. No. 1111) to the Secretary (MSME & Mines), Commerce and Industries Department, Govt of Karnataka. Extension of Kumaraswamy ML is awaited.
Iron ore: In Jharkhand
A JV Company (NMDC 60% & JSMDC 40%), Jharkhand National Mineral Development Corporation Limited (JNMDC) has been incorporated 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. Due to delay in grant of forest permission, drilling could not be carried out in the lease period. 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 17A(2A) of MM(D&R) Amendment Act 2015 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 17A of MM(D&R) Amendment Act,2021.The matter is being pursued with Govt. of Jharkhand for reservation.
Your Company 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(2A) of MM(D&R) Amendment Act 2015 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, GoI 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 GoJ and MoS, GOI.
Gold: In Jharkhand
Gold & associated mineral Deposit:
Your company submitted application to the Secretary cum Commissioner, DMG, GoJ on 0101-2019 for proposal to reserve 24.80 Sq. Km. area in Kuchai Tehsil, District Saraikela-Kaswan, Jharkahnd, under Section 17A (2A) of MM(D&R) Amend. Act, 2015 for prospecting and mining operation of Gold & associated minerals. The matter is being pursued with Govt. of Jharkhand for reservation.
Various minerals: In Jharkhand
Tambadungri Copper, Nickel, cobalt and molybdenum mineral -
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 Saraikela-Kharswan district, Jharkhand under Section 17A(2A) of MM(D&R) Amendment Act 2015 for grant of Prospecting and Mining operation of Copper, Nickel, cobalt and molybdenum mineral. The matter is being pursued with Govt. of Jharkhand for reservation.
In 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, GoI to reserve Ramandurg Iron ore deposit (area - 5.17 sq. km) in favour of NMDC Ltd under section 17A(1A) of MM(D&R) Act,1957. 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 17A (2A) of MM (D&R) Amendment Act, 2015 for grant of prospecting and mining operation. Sr. Geoologist, DMG, Raichur has submitted his recommendation along with Technical Report to Director, DMG, GoK for reservation of applied area in favour of NMDC for Prospecting and Mining Operations. 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 persuing the matter with Ministry of Mines, Govt of India through MoS, GoI for reservation of Malangtoli Iron Ore Block in favour of NMDC. Due to continuous persuasion of your Company, Ministry of Mines,
Govt of India sent a letter to Govt of Odisha on 0401-2022 regarding their comments on the instant proposal and observation made by IBM, Nagpur.
The matter is being pursued with Govt of Odisha for reservation in favour of NMDC Ltd.
In Madhya Pradesh
Tripartite MoU among GoMP (MRD, through DGM), MPSMCL & NMDC was signed for geological and geophysical exploration in various Districts of M.P. In this regard, Govt. of Madhya Pradesh issued Gazette Notifications of 3 iron ore prospective blocks, 20 diamond prospective blocks and 1 for various minerals prospective which are applied under MoU for exploration and subsequent reservation.
Status of Exploration Works:
Iron Ore Prospective Blocks:
Sidhi Block in Sidhi & Singrauli, Districts
a) Identified 5 iron ore sub blocks. Geological mapping, Geophysical Surveys and Geochemical Mapping completed in 5 potential sub-blocks. Topographic Surveys using SP2 60 GNSS completed. To establish the quantity and grade, a total of 964 meters of core drilling carried out. Chemical analysis of core samples is under process.
b) Dhaurra block - Based on Geophysical survey, Geological mapping and surface geochemical sampling, one low grade iron ore body has been identified.
c) Dulchipur-Bagroda block- Based on Geological field traverses and surface geochemical sampling, one low grade iron ore body has been identified.
Diamond Prospective Blocks (3 Large Block,
5 Small Blocks and 12 Additional Blocks):
Remote Sensing Studies have been completed in collaboration with NRSC. Chhattarpur Panna Block 1, Chhattarpur Panna Block 2 and Damoh Block, Panna (5 Prospective Blocks) and Additional 12 Diamond Blocks.
> Established several target areas after conducting ground magnetic, VLF-EM & Gravity surveys and stream sediment sampling. Also demarcated several additional anomalous areas in the diamond blocks by processing the Raw Aeromagnetic Data obtained from GSI in Diamond Blocks.
> APCCF (LM), Bhopal granted permission for drilling in 5 Blocks (2 Large Blocks & 3 Additional Blocks). Drilling party selected through open ternder. Total 3882 meters of drilling completed in 5 blocks and balance drilling in revenue areas is under progress.
> Matter is being pursued with Forest Dept. for obtaining permission for drilling in 4 Additional Blocks.
Prospective block for various minerals:
After Remote Sensing Studies and detailed Geological traverses one Ferro -Manganese block identified in Jabalpur -Katni Block. Large scale geological mapping, surface Geochemical Mapping and Ground Geophysical Survey (Magnetic survey) and Topographical survey completed in one identified Ferro -Manganese sub block. Core drilling planned to establish the quantity and grade. Forest Permission obtained for core drilling in one Manganese Block (14 BHs) from APCCF (LM),
Bhopal. Exploratory drilling will be conducted shortly.
Govt. of M.P. granted working permission for reconnaissance survey for various minerals in Jabalpur, Katni and Mandla Districts and NMDC identified areas for Manganese, Ferro-Manganese and Bauxite for further exploration. Geological mapping completed in 2 identified bauxite sub blocks and chemical analysis is under progress.
In Andhra Pradesh
Your Company has applied for Ramgiri prospective block for Iron Ore in Anantapur district. NMDC has requested State Govt. to reserve this block in favour of NMDC under 17A (2A) of MM (D&R) Amendment Act, 2015.
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 (2A) of MM (D&R) Amendment Act, 2015 for Prospecting & Mining. The matter is being pursued with Govt of AP.
Your Company requested Chief Secretary, Govt. of Bihar (GoB) for provision of free area/ block for exploration for Gold & Associated Elements in Jamui Dist., Bihar. Chief Secretary forwarded the application to Prin. Sec, Mines & Geology Dept., GoB for further necessary action. The matter is being pursued with Govt of Bihar.
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.P.) 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 is putting efforts to get approval from NMET, Ministry of Mines , Govt of India for the project proposal entitled "Reconnaissance Survey (G4) for Genesis of BIF hosted high grade iron ore of Bailadila Deposits with special reference to geological controls on mode of occurrence of ORE- BENEATH-ORE and implication on future game changing exploration in India".
Chigargunta-Bisanatham gold block-
Your Company has become preferred bidder for Chigargunta-Bisanatham gold block for Mining Lease (ML area 263.01 Ha.) located in Chittoor Dist. in Andhra Pradesh through e-auction route with a final bid offer of 38.25%. The matter is subjudice due to pendency of Writ Petition filed by M/s Bharath Gold Mines All Employees Industrial Cooperative Society Ltd. before Honble High Court of Andhra Pradesh. The matter is being pursued with Govt. of Andhra Pradesh for issuing LOI in favour of NMDC.
Drone based Mineral Exploration NMDC-IIT, Kharagpur.
Your Company has signed Contract research agreement on 16/03/2022 with Geology & Geophysics Dept. & Mining Dept. of IIT, Kharagpur.
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:-
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 17A (1A) 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.
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 07/01/2017 and Lease deed for the same has been executed on 10/01/2017.
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 07/01/2017, 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 06/11/2017 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 04.12.2017. 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 09.01.2017. 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-II 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- II 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 non-commencement 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 non-commencement 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 23.03.2021.
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-II Forest clearance of Deposit-13, so as to start the development and operation of Deposit-13.
Baloda - Belmundi Diamond Block
The Company has submitted the proposal to the Secretary, MRD, Govt. of Chhattisgarh for Baloda - Belmundi Diamond Block over an area of 156.80 sq km in Saraipali Tehsil, Mahasamund Dist. for reservation under section 17A (2A) of MM (D&R) Amendment Act, 2015 for prospecting and exploitation.
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(1A) 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.
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 17A (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 Sq.km area of Dep-1 mine in favour of NMDC- CMDC Limited under rule 17A(2) of MMDR Act 1957 (as amended) for undertaking prospecting followed by mining operations.
9.0 SUBSIDIARY / ASSOCIATE / JOINT VENTURE (JV) COMPANIES MONITORING FRAMEWORK
a) As on 31.03.2022, NMDC has 6 subsidiaries and stake in 5 Associate and 5 JV Companies. The names of these Companies and percentage of NMDC stake in these companies are as follows:
# Voluntary Liquidation - NCLT, Hyderabad bench dissolved NMDC Power Limited vide order dated 14.10.2021.
## Voluntary Liquidation - NCLT, Kolkata bench disposed of Jharkhand Kolhan Steel Limited vide order dated 17.12.2021
###Govt. of India, Ministry of Corporate Affairs vide its letter dated 16.08.2021 inter alia, communicated that pursuant to sub-section (5) of section 248 of the Companies Act, 2013, the name of M/s. NMDC- SAIL Ltd. has been struck off by Registrar of Companies and the said company is dissolved.
The subsidiaries of NMDC are Board managed with the primary interest to manage such Companies in the best interest of the shareholders. The framework for Subsidiary / Associate / JV Companies are as under:-
i) All investments in these Companies are approved by the Board of Directors.
ii) The Company nominates its representatives on the Board of these Companies.
iii) The minutes of the Board meeting of these Companies are placed before the Board of NMDC Limited.
Subsidiary / Associate / Joint Venture Companies have been categorized in line with disclosures as made in the financial statements.
10.0 ENVIRONMENT MANAGEMENT:
NMDC has obtained the Environmental Clerance (EC) under EIA notification 2006 from MOEF&CC for regularisation of Deposit-11 ML for the production capacity of 11.30 MTPA ROM Iron Ore. Amendment of existing Environmental Clerance of 14/11C by excluding 11C part (1.5 MTPA Iron Ore Production), modifying to Deposit-14&14NMZ for the production capacity of 10.5 MTPA ROM production obtained from MOEF&CC on 1.12.2021.
Your company has also obtained TOR from MOEF&CC on 22/3/2022 for capacity expansion of Deposit-14 ( from 5 to 10 MTPA ROM Iron Ore) & Deposit-14 NMZ (from 5.5 to 8.5 MTPA ROM Iron Ore). The work order was issued for appointment of QCI/NABET consultant for preparation of EIA/ EMP report. The baseline studies are under progress covering pre-monsoon season2022.
Your company is in the process of enhancing the ROM Iron ore production capacity of Kumaraswamy Iron Ore Mine from 7 to 10 MTPA. The public hearing was successfully held on 22.3.22 at KIOM. The action plan is under progress for the public hearing demands. The final EIA/EMP report, Form- II etc will be uploaded in PARIVESH shortly for Expert Appraisal Committee for obtaining of EC.
Your company is in the process of enhancing the ROM Iron Ore production capacity of Bailadila,
Deposit-5 from 10 to 12 MTPA of ROM Iron Ore. QCI/NABET accredited consultant has been appointed for preparation of EIA/EMP report in line with the MOEF&CC circular issued on 11.4.2022 upto 20% based on the environmental safeguard conditions. The baseline studies are under progress covering pre-monsoon2022.
Your company has got valid operating consents from State Pollution Control Boards for all production projects. The Company obtained renewal of Consent to Operate under Air (Prevention & Control of Pollution) Acts 1981 and Water (Prevention & Control of Pollution) Act 1974 for all projects.
Your company also obtained the consent for operation of 100 bedded Hospital at Bacheli and is valid till 27/8/2026.
Your company also obtained authorization under Hazardous Waste Management & Transboundary movement Rules 2016 from CECB for Bailadila Deposit-5 for handling 100 KL used oil. The authorization is valid till 2/8/2025.
Your company obtained final forest clearance from MoEF&CC, Integrated Regional Office, Raipur on 21/12/2021 for diversion of 7.116 Ha of forestland for associated facilities for Iron Ore Beneficiation Plant at Bacheli.
The sub-committee comprising of Expert Appraisal Committee, representatives of MOEF&CC, Delhi, Representatives of MOEF&CC, Nagpur & Bhopal and Field Director (Panna Tiger Reserve) visited the Panna Diamond Mining Project, Panna on 29th-31st October2021.
Your Company has amended Tripartite agreement and released Rs 699 Lakhs in December 2021 for implementation of Dhurli Samuh Gramin Jal Praday Yojana in 24 no.s villages under Dantewada District, Chhattisgarh. The total revised cost for implementation of the above water supply scheme is Rs 5453.85 Lakhs.
Your company is taking utmost care for environmental protection and ecological restoration work that includes plantation in and around the lease areas, construction and repair of buttress walls, check dams, check bunds, garland drains, rainwater harvesting pits, broadcasting of seedlings and laying of geo-coir matting on the inactive waste dumping sites are being implemented.
Your Company is carrying out greenhouse gas (GHG) accounting studies for the three iron ore mining projects, environmental monitoring studies covering all environmental attributes, ground water quality & water levels by recognized laboratories. The studies indicated that all environmental parameters are found well within the limits.
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.
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.
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 after completing the Mine Level meetings at all Mines.
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. Man days lost per 100000 man days worked for the year 2021-22 is 2.16 and 3.69 for the year 2020-2021.
Integrated Management System (IMS)
Comprising of Quality Management System (QMS) - ISO 9001:2015; Environmental Management System (EMS) - ISO 14001:2015; Occupational Health & Safety 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); Diamond Mining Project, Panna (DMP, Panna) including Research & Development Centre (R&D Centre) are accredited with Integrated Management System (IMS).
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.
Safety Management System:
Safety Management system has been implemented in all our mines. Risk Assessment studies are being conducted regularly.
12.0 IMPLEMENTATION OF INTEGRITY PACT:
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:|
|Contracts||: 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 2021-22,137 tenders valuing Rs 2862.68 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 tendering:> 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 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.The Increase during FY 2021-22 is due to implementation of MII Policy in NMDC.
> Pre-qualifying conditions: PQC for conveyor belts & HEM equipments tenders have been reviewed and 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 1713 orders valuing Rs 172.42 crores were placed during the year 2021-22.
> CPP Portal: MM 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.
13.0 NMDC?S R&D CENTRE AT HYDERABAD
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-II attached to the Directors Report.
"Hindi Parangat" training continued unabated through teams app, following all the safety measures in view of the COVID-19 pandemic.
During the year, Hindi Workshops were organized online in every quarter at headquarters and various projects. Meetings of the Official Language Implementation Committee were held on-line every quarter at headquarters and projects.
Hindi week/fortnight was organized at NMDC Headquarters and all the projects and offices. During this, some Hindi competitions were held online and some with physical presence. CMDs messages were circulated through social media channels like Twitter, Facebook, YouTube.
Rajbhasha half yearly house journal of Headquarter "Khanij Bharati" and various Hindi/bilingual/tri- lingual magazines namely, Baila Samachar, Bacheli Samachar, Doni Samachar, Heera Samachar were also published from the projects and units of NMDC.
Monthly Hindi competitions were held in all production projects to promote the use of official language.
A short documentary film on "Journey of Rajbhasha Implementation" in NMDC was made and screened at the meeting of the Hindi Advisory Committee of the Ministry of Steel.
Diamond Mining Project, Panna organized various programs as the Convenor of Town Official Language Implementation Committee.
The project also organized Hindi Kavi Sammelan. Official Language Technical Seminars were held at Kirandul Complex, Bacheli Complex and Diamond Mining Project, Panna and magazines of technical articles were published in Hindi.
The Government of India, Ministry of Steel conferred "Ispat Rajbhasha First" award on NMDC Ltd, Headquarters for the year 2020-21. NMDC received "Official Language Shield" as the First Prize for the year 2020-21 in the category of Mid- Sized Undertakings for the outstanding implementation of official language from Town Official Language Implementation Committee (Undertaking), Hyderabad-Secunderabad. "Khanij Bharati" received the First prize of Town Official Language Implementation Committee (TOLIC), Hyderabad-Secunderabad. Khanij Bharati Magazine also received the National First Award of The Public Relations Society of India.
16.0 DETAILS REQUIRED TO BE FURNISHED IN TERMS OF MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED).
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 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 08 Nos. Vendor Meets / programmes at various places in total during 2021-22. NMDC interacted with prospective MSE entrepreneurs encouraging them for supply of goods for various plants at Bailadila & Donimalai.
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 2021-22 are given below:-
|Category of MSE Firm||Norms||Achievement|
|Procurement from MSE firms||25%||44.67 %|
|Procurement from SC / ST MSE firms||4%||4.90 %|
|Procurement from Women Entrepreneurs MSE firms||3%||3.07 %|
NMDC also received the Best Performer under the Navratna Category during the year 2019 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.
17.1 Employee-Employer relations
The overall industrial relations situation was peaceful and cordial during the year. There was no strike / lockout against the Companys policies affecting production and productivity.
17.2 Scheduled Castes & Scheduled Tribes
01 candidates belonging to Scheduled Caste was appointed in the year 2021-22 against 10 posts filled by direct recruitment.
17.3 Strength of SCs & STs as on 31st March 2022
|1.||Total number of employees :||5539|
|2.||Scheduled Castes :||827|
|3.||Scheduled Tribes :||1395|
|4.||Other Backward Class :||1137|
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 the Companies (Appointment and remuneration of Managerial Personnel) Rules,
2014 as amended.
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
Sports tournaments were arranged by respective Projects for the employees, the wards of employees and also for the local youth apart from promoting sports events under CSR.
17.7 Disclosure under Section 22 of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013
No complaint has been received and no case has been filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 during the financial year 20212022.
18.0 HUMAN RESOURCES DEVELOPMENT
At NMDC, we believe in building a learning culture to foster high performance and an agile workforce. A robust Learning culture is imperative in NMDC which seeks to be defined by its performance capabilities.
• We believe that business sustainability has become a crucial component of long-term business goals. It involves figuring out newer ways to remain productive in a fast-changing landscape. But as both technological change and employee preferences evolve, keeping up to date with the required skills and more holistic ways of addressing such changes becomes an important means to ensure businesses remain sustainable. At the core of addressing such business needs, a robust learning culture is need of the hour.
• At NMDC we have created high impact learning culture which reflects both in the rising size of the learning needs and its demands within the business as an important part of our future goals.
• NMDC Corporate HRD department plays a vital role in enabling its workforce to deal with market uncertainty and ensure its businesses can continuously innovate. Throughout, our learning and development programs have always played a pivotal role in helping business by fine-tuning our employees capabilities.
• NMDC strongly believes in a strong learning mechanism which can impart skills in a timely and effective manner and minimize the impact of the various threats posed by external forces and uncertainties.
• Keeping in mind the need to have a robust learning mechanism in NMDC, Corporate HRD function at the forefront is playing an important role in ensuring the organizational workforce is trained and equipped with requisite skills and can face future challenges.
Productivity today in NMDC, is related to how efficiently and effectively our employees can use new-age digital technologies to make their work more efficient, impactful and meaningful. And to do so, knowledge and skills play an important role. Keeping this in view, NMDC is investing on its workforce by means of various learning and development programmes to retain and add its value. Bolstering this, NMDC spentRs 15 Crores (approx.l on Learning and Development during the year 2021-22.
For a high-performance organization, its imperative that these knowledge and skills are continuously replenished by virtue of imparting new age learning technologies.
It is pertinent to mention here that, towards
2021-22 Learning and Development initiatives we were aligned with our business goals. Despite the pandemic, 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 organisation.
A. TRAINING PROGRAMMES [In-House / External)
Corporate HRD has organised customized In House Training as well as External Training programmes covering 3575 Executives during 2021-22.
Corporate HRD Conducted several specialized & curated Programmes on:
> Reservation Policy for SC/ST, OBC, Ex Servicemen, PWD and EWS in PSE
> Sexual Harassment of Women at Work Place (Prevention, Prohibition & Redressal ACT2013]
> Online Training programme for Inquiry Officers (IOs] & Presenting Officers (POs] by CBI Academy
> Curated Business Leader Programme by Art of Living.
> Workshop on Arbitration and Contract Management Negotiation Skills.
> Workshop on Recent Amendments in Arbitration and Conciliation Act 1966.
> Communication Skills for Managers.
No executives were sent abroad for Foreign Training Programmes during 2021-22 /AMP/Visits due to COVID-19 pandemic.
B. WEB BASED LEARNING INITIATIVES
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.
C. STRENGTHENING OF QUALITY CIRCLES
Strengthened the Quality Circles Movement in NMDC, by giving more thrust on Quality Circles activities by adding 5% more QCs this year. We have bagged 18 Gold Awards in CCQC. Also, Excellence and Par Excellence award in National Convention on Quality Concepts (NCQC)-2021. NMDC also participated in Internal Convention on Quality Controls Circles (ICQCC-2021).
D. TALENT MANAGEMENT
> Corporate HRD has drawn a plan to conduct various Training Programme on Talent Management.
> New Learning and Development Intervention Induction Training Programme for Young Executive Trainees (Finance) & Executive Trainees (GATE) with Indian Business School (ISB] one of its kind done by any of the PSU in Country.
E. TRAINING ON PREVENTIVE VIGILANCE
> Conducted Preventive Vigilance Training Module for mid-career Executives by covering a total of 400 plus executives sensitising them on various Preventive vigilance aspects.
F. CULTURE BUILDING & HAPPINESS WORKSHOPS
COVID-19 has thrown unprecedented challenges before us alongside Fear, Stress & Anxiety. To overcome and tackle this, happiness programme was conducted by NMDC for the employees not only to be better equipped to identify the level of happiness within organisation and help employees at various levels to understand why happiness is worthwhile goal for achieving high performance in life and work.
Covered 240 executives DGM & above executives in a unique tailored programme namely "IKIGAI- A Happy Workforce Programme- Phase 1". Keeping in view the feedback from the phase-1 participants, the programme is the further extended to 500 executives (AGM & Sr Manager level)"IKIGAI- A Happy Workforce Programme- Phase 2"
These types of programmes equipped our people to support engagement and productivity within NMDC and strengthen their sense of belongingness, purpose, meaning and satisfaction -not only at the offices but in their life as a whole.
G. SKILL DEVELOPMENT TRAINING
NMDC and NSDC has entered into MoU on 01.11.2021 for imparting training and RPL certification for 1600 employees in 4 years (400 each) in mining and steel sector.
Your Company is also playing a pivotal role to support the National Skill Development Mission through active participation in the activities of Skill Council for Mining Sector (SCMS) and providing Training and Recognition of Prior Learning (RPL) in all Projects.
H. DIGITAL INITIATIVES
Introduction of SAP Learning Solutions & HRD Dash Board.
Lifelong learning is a challenge that learners, employees, and employers are equally faced with. Traditional classroom training ties up time and resources, takes employees away from their day- to-day tasks, and drives up expenses.
This situation calls for new strategies leading directly to the work space and centers of employees. The employees PC at work or at home becomes a personal training center. E-learning can be used in a wide variety of areas. It can help to cut the cost of training by providing more learners with easier access to training measures.
In this line, keeping under the ambit of ERP-SAP implementation in NMDC, Corporate HRD working on the SAP Learning Solution Module which paves the way for this development. It opens up new learning possibilities for learners, trainers, companies, and educational institutions.
I. REWARDS & RECOGNITION
NMDC was conferred 2nd prize for innovative training practices at National level for the year 2019-20 by Indian Society for Training and
Development received on 10.04.2021, Further NMDC was also conferred cash prize towards the same.
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 programmes were conducted for awareness on vigilance matters for the employees of the Corporation.
The vigilance functionaries at the projects have conducted regular training classes for the employees on vigilance matters. Executives of the Vigilance Department were nominated for training/ workshops being organized in India.
The systems and procedures including the document handling, maintenance of records are done to ensure that the Vigilance Department is conforming to the Quality Management Systems as per ISO 9001:2015 Standards.
Vigilance Department in NMDC has 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 2021 - March 2022), 55 surprise checks, 68 regular inspections, was 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 57 complaints were received through various source information during the period which were handled / disposed off as per CVC guidelines / complaint handling procedure.
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 companys website. Vigilance department made allout 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 476 contracts with a value of Rs 28,918.77 Crores for the period April 2021-March 2022. 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.
To ensure transparency in vigilance works, necessary action has been initiated for rotation / repatriation of vigilance officers, and for inducting of new officers in Vigilance department for compliance of CVC guidelines by 30.06.2022. The rotational transfer of officers of other departments was also effected during the period, in compliance of CVC guidelines and a total of 95 officers were rotated / transferred.
The Quarterly Review-cum-Coordination meeting of the Vigilance dept. with CVO was held in June 2021 at Hyderabad, in September 2021 at Raipur, in December 2021 at Hospet and in March 2022 at Hyderabad for the first quarter, second quarter, third quarter and fourth quarter respectively. The said meeting was attended by all the Vigilance Officers posted at Head Office and Projects like Kirandul, Bacheli, Donimalai, Panna & NISP. 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 Vgilance Module separately for Induction level (new entrants) and Mid-career level Executives were drawn up and was integrated with our HRDs regular training plan. The said training programs on Preventive Vigilance is being arranged every month at NMDC in compliance of CVC guidelines, covering Induction level and mid-career level executives of HO, ROs and all Projects. Keeping in view the present scenario of the pandemic, the sessions for training on PV has been arranged through Hybrid mode, i.e., through off line class-room mode at few locations like Head office and through online relay under the concept of extended classrooms at remote locations & Projects. A total of 56 trainees/ new inductees(executives) were covered for the Induction level training and 408 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.
SYSTEM IMPROVEMENTS UNDERTAKEN / IMPLEMENTED DURING THE YEAR 2021-22
As per the Action Plan of the Vigilanec dept., viz-a-viz the action plan of individual vigilance officers for the year 2021-22, 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.
The initiatives/system improvements studies/ suggestions/recommendations made during the period are briefed as below:-
1. Write-off of Handling Losses against the issue of Motor Spirit (MSI and High-Speed Diesel (HSDl:
A study was conducted to evaluate the effectiveness of the current write-off technique for reconciling the handling losses against the issue of Motor Spirit (MS) and High-Speed Diesel at Projects. It was observed that the conventional method of recording and calculating the losses was incongruent with recent technological developments. The vigilance department advised revising the internal circular on write-offs and employing an IT-based solution such as FMS to record fuel levels, or for receipt of fuel, etc.
2. System improvements suggested in the Contract Award Process:
An online/offline demonstration for evaluating techno-commercial proposals of any specialty software may be required at the procurement stage. Nonetheless, a vigilance investigation revealed that the existing MM Manual contains
no guidelines or provisions to be followed in such cases. The Vigilance department has suggested recording Online/Offline demonstrations and drafting SOPs/Guidelines to be followed in instances where Online/Offline demonstrations were included in tender documents for evaluating techno-commercial offers.
3. System improvements suggested in Empanelment of Contractor:
The contractors were empaneled for various types and values of works based on eligibility criteria at respective projects of the Corporation. During one of the investigation, it was discovered that most of the new contractors visited the office to inquire about the empanelment procedure since they were unaware of its existence. The vigilance department suggested standardizing the format for empanelment across all projects and putting it in public domain.
4. System improvements suggested for PMC for large contracts:
The vigilance department suggested for appointment of PMC for large projects and for developing a proper SOP in cases where PMC consultant withdraws from project for any reason. The same has been implemented by the concerned departments.
5. As per the CVC guidelines, all the companies coming under the category of Navratna or having the turnover of Rs 10,000 crores and above are required to have three IEMs in their panel. Vigilance department ensured the compliance of the above guidelines and appointment of third IEM at NMDC was made on 29.04.2022.
6. A Complaint Handling Policy was prepared and uploaded in Vigilance Portal of NMDC with SOP / guidelines for lodging Vigilance complaints. It got implemented w.e.f. 01.01.2022.
Vigilance Awareness Week
As per CVC Circular No. 05/09/2021 dt. 01/09/2021, Vigilance Awareness week-2021 was observed at NMDC Limited from 26th Oct - 1st Nov, 2021 on the theme "Independent India @75 " Self Reliance with Integrity".
On the Inaugural day of VAW-2021, Integrity Pledge was administered to the employees of NMDC at HO by CMD and by respective Project Heads / Regional Managers in the Projects and ROs respectively.
Various activities including sensitization programmes and individual/inter-departmental competitions like Slogan writing, Essay writing, Elocution, Quiz competition, inter-departmental House-keeping competition and Drawing of e-posters on the VAW theme were arranged for the employees during the Vigilance Awareness Week-2021. A workshop on Corporate
Governance and Technology, and Whistle Blower Mechanism in PSUs was organized on 28.10.2021 at HO wherein Ms. Praveen Kumari Singh, Addl. Secretary,
CVC was the keynote speaker and CMD, NMDC was the chief guest. In addition to this, workshops on E-Tendering and use of GeM Portal and Statutory compliances and Contract labour management were conducted as a part of VAW-2021. Awareness and sensitization programmes on use of PIDPI for employees, school / college children and other stakeholders were conducted at Head Office/ Regional Offices & 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-2021 on 1st Nov, 2021 at HO and all Projects.
During the observance of VAW-2021, all the precautions as per COVID-19 guidelines were strictly followed.
20.0 DIRECTORS? RESPONSIBILITY STATEMENT
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) 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 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 Companys internal financial controls were adequate and effective during FY 2022.
21.0 DECLARATION ON MEETING THE CRITERIA OF INDEPENDENCE AS PER THE COMPANIES ACT, 2013 AND SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015.
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 2021-22.
22.0 COMPANY?S POLICY ON DIRECTORS APPOINTMENT AND REMUNERAITON
All Directors are appointed by Govt. of India including fixation of their remuneration.
23.0 NUMBER OF BOARD MEETINGS HELD
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.
24.0 NMDC STRATEGIC MANAGEMENT PLAN (NMDC VISION 2025).
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 Sep19 for prospecting and mining operations.
India is presently the worlds second-largest producer of crude steel. In FY22, the production of crude steel stood at 120 MT with a growth of 18% 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 Indias 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. 400 billion (US$ 5.37 billion) and expand
speciality steel capacity by 25 million tonnes (MT) to 42 MT by FY27. 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 FY31. The wide range of continuing infrastructure projects could support growth in steel demand to reach our envisaged target of per capita steel consumption of 158 Kg by FY31 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 FY30.
In FY22, the Company has progressed significantly on various activities to enhance its production capacity with the start of full-scale operation of Donimalai Mine and laying of the foundation stone for a 7.0 MTPA Screening and Beneficiation Plant at NMDCs Donimalai Iron Ore Mine by Honble Minister of Steel, Government of India. 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 few completed sections have been opened for traffic. Out of 150 km of planned doubling of railway line, 76% of work has already been completed & the project is likely to be completed by FY24. 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 FY24.
Ministry of Coal has allocated two Coal Blocks namely Tokisud North Coal block & Rohne Coal Block on 17th March 2020 for commercial sale & captive purposes. NMDC has appointed MDO for Tokisud North Coal Block and plans to start its operations in FY23.
NMDC is in the advanced stages of setting up a
3.0 MTPA greenfield Steel Plant at Nagarnar in Chhattisgarh, which is expected to operationalize in FY23. Commissioning activities started with the start of coke oven heating in Jan2022. Testing & trials are in progress in each package. Packages like operational power facilities, operational water packages and plant & instrument air packages are commissioned.
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 FY21, 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 investment in environment, social and governance (ESC) initiatives. All Mines of NMDC have 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 P.K. Satpathy, Director (Production)||31.08.2021|
|ii) Shri Alok Kumar Mehta, Director (Commercial)||30.09.2021|
|The following Directors were appointed on the Board of the Company:-|
|i) Shri Dilip Kumar Mohanty, Director (Production)||05.10.2021|
|ii) Smt. Sukriti Likhi, Govt. Nominee Director||23.04.2021|
|iii) Shri Sanjay Tandon, Independent Director||01.11.2021|
|iv) Dr. Anil Kamble, Independent Director||01.11.2021|
|v) Shri Vishal Babber, Independent Director||01.11.2021|
|vi) Shri Sanjay Singh, Independent Director||29.12.2021|
The Board places on record its deep appreciation for the valuable contribution made by Shri P K Satpathy and Shri Alok Kumar Mehta during their tenure on the Board of the Company.
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 2021-2022:
|1||Head Office R & D Center SIU & Consolidation||M/s SAGAR & ASSOCIATES Chartered Accountants House No.6-3-244/5 Saradadevi Street, Premnagar, Hyderabad Telangana: 500 004|
|2||Kiradul Complex Bacheli Complex NISP, Jagdalpur Vizag Office||M/s AGASTI & ASSOCIATES Chartered Accountants C-37, Sector-1, Raipur Chhatishgarh: 492007|
|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-13, F1, P.S. Nagar Vijaynagar Colony Hyderabad - 500 057
27.0 IMPLEMENTATION OF RIGHT TO INFORMATION ACT, 2005
All the provisions of the RTI Act 2005 are being complied with by the Company. In order to ensure timely disposal of RTI applications, PlOs have been appointed in each of NMDCs Units. A close monitoring of the RTI applications received is done to ensure that the replies are sent in time.
The details of RTI applications received in Head Office and all the Units of the Company during the period 01.04.2021 to 31.03.2022 are as follows:
|Opening balance as on 01.04.2021||Applications received during the year||Information Provided/denied/ forwarded||Balance as on 31.03.2022|
28.0 DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY?S OPERATION IN FUTURE - NIL
29.0 AWARDS RECEIVED BY THE COMPANY
The details of awards received by the Company are as follows:-
1. NMDC bagged Runners Award in 30th National Award for Innovative Training Practices Award 2019-20 held at SCOPE Complex New Delhi on 10.04.2021.
2. NMDC sweeped eight awards at the Governance Now 8th PSU Awards Ceremony conducted virtually on 29.07.2021. Under the Leadership Category, the company won the CMD Leadership and Emerging Communication Leader of the Year awards, besides six awards under the Organization Category for CSR Commitment, Nation Building, Digital PSU, Research and Innovation, HR Excellence and Communication Outreach.
3. NMDC received "Rajbhasha Kirti Award" on 14.09.2021 for implementation of Rajbhasha for the year 2019-20 at a function held at Vigyan Bhawan, New Delhi. NMDC has been winning this accolade for the last three years in a row, which goes on to show its dedication towards the implementation of Hindi as the Official Language.
4. NMDC received runner up award and another thirteen Corporate Communication Excellence Awards on 20.09.2021 at the Global Communication Conclave organised by Public Relations Council of India (PRCI) in Goa.
5. NMDC is bestowed with best PSE for CSR initiatives award at D&Bs Indias top PSU awards on 27.09.2021.
6. Donimalai Complex, NMDC Ltd. has been awarded for "PLATINUM AWARD" in "10th Exceed Environment Award 2021" under "Environment Preservation" Category in Mining & Metallurgy Oil Sector on 07.10.2021 at Dehradhun.
7. NMDC has bagged Gold Award in Environmental Sustainability category and Kumaraswamy Iron Ore Mine bagged Platinum Award in Environment Management category. The function was organised by Sustainable Development Foundation (a unit of EK KAAM DESH KE NAAM) and the awards were presented in the 10th conference held on 08.10.2021 at Dehradun.
8. NMDC Head Office received First Prize of TOLIC (U) under mid-sized Central PSU category. Rajbhasha Shield for 2019-20 and 2020-21 were received for the sixth year consecutively and "Khanij Bharati" Rajbhasha Patrika of Head Office was also awarded First Prize for 2020-21 among the Published Magazine category on 25.10.2021 at Hyderabad.
9. NMDC received nine 5-star ratings for three years for all its operating iron ore mines viz. Kumaraswami, Bacheli Deposit-5, Deposit 14 NMZ and Deposit No 10 at the
5th National Conclave on Mines and Minerals on 24.11.2021.
10. SIU, Paloncha received First Prize of Southern Region for implementation of Rajbhasha in the Conference organized at Hyderabad on 04.12.2021 by Gol, Ministry of Home Affairs, Rajbhasha Department.
11. NMDC received 1st prize in the Ispat Rajbhasha Award for 2018-19 and 2020-21 and the Ispat Rajbhasha Prerna Award for 2019-20 in the meeting of the Hindi Salahakar Committee of the Ministry of Steel held in Madurai on 03.03.2022. The Honourable Union Minister of Steel, Shri Ram Chandra Prasad Singh, presented the accolades to Shri Sumit Deb, Chairman and Managing Director, NMDC.
12. The Director (Finance), Shri Amitava
Mukherjee, was awarded the FE CFO of the Year Award by Financial Express for the year 2022.
30.0 VIGIL MECHANISM
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 451st 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.
31.0 DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143(12) OTHER THAN WHICH ARE REPORTABLE TO CENTRAL GOVT - NIL
32.0 Offer for Sale (OFS) in F.Y. 2021-22
Pursuant to the Offer for Sale (OFS), the President of India (acting through and represented by the Ministry of Steel, Government of India), the Promoter of NMDC Limited sold equity shares aggregating to 21,95,02,378 (nos.) on 6th July 2021 and 7th July 2021 representing 7.49% of the total paid up equity share capital of the company. The Floor Price for the Offer was Rs 165.00 per equity share. The Transaction value of the OFS was of Rs 3651,37,22,349.08. Post completion of the said OFS, the equity stake of the Promoter in NMDC Limited stands reduced from 68.29% to 60.80% as on 8th July 2021.
Employee OFS in F.Y. 2021-22:
In accordance with the approval given by Alternative Mechanism on 5th July 2021, the President of India, acting through Ministry of Steel, Government of India offered up to 89,108,907 equity shares of face value of Rs 1/- each to the eligible employees of the Company at a price Rs 165.50 per equity share. Accordingly, the Promoter of NMDC Limited sold 1,47,942 (no.s) equity shares to the eligible employees of the Company on 20th July 2021 at an offer price of Rs 165.50 per equity share. Transaction value of the Employee OFS is of Rs 24,484,401.00 (Gross of stock exchange transaction charges and all applicable taxes and charges). Post completion of the employee OFS, the equity stake of the Promoter in NMDC Limited stands reduced from 60.80% to 60.79% as on 23rd July 2021.
33.0 FORMAL ANNUAL EVALUATION OF BOARD, COMMITTEES AND INDIVIDUAL DIRECTORS.
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.
34.0 IMPLEMENTATION OF RISK MANAGEMENT POLICY
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). 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, two meetings of the Board level Risk Management Committee were held.
35.0 DIVIDEND DISTRIBUTION POLICY
The Board of Directors has approved Dividend Distribution Policy which has been uploaded on the website of the company under the link https:// www.nmdc.co.in/cms-admin/Upload/Policies- Document/ ae4bb5f07e7e4654a3f881ccec7b9163_ 20210920060806207.pdf.
36.0 ERP Implementation, Digitalization and IT Infrastructure
NMDC went Live on SAP S/4 Hana in January, 2021. ERP Project, christened Kalpataru made NMDC the first CPSE in India to implement Enterprise Resource Planning on the SAP S/4 HANA platform. This Project was undertaken to address NMDCs core business requirements through a strong ERP backbone, which will provide a fully integrated solution encompassing all the business functions of the organization. It is a transformational advancement in the digital journey of NMDC and will improve the overall business process of the company. This will also act as a lighthouse project for the domestic mining sector ushering into an era of automation and digitalization driven growth.
The modules / functionalities implemented are Production Planning (PP), Plant Maintenance (PM), Quality Management (QM), Sales & Distribution (SD), Material Management (MM), Human Capital Management (HCM), Finance & Control (FICO), Environment Health & Safety (EHS), Project System (PS), Industry Solution for Mining.
FY 2021-22 is the first year when the entire account closing activity has been done in SAP.
Post Go-Live, SAP Digital Compliance Solution (DCS) have been implemented for generation of E-Invoicing, E-Way Bill transactions in real time and filing of GST returns. HR functionalities have been made available to employees through Employee Self Service (ESS). Management Dashboard for Production, Iron Ore Sales/ Dispatches and CSR has been launched and the same for other functionalities will be made functional shortly.
All the transactions are happening smoothly and the focus now is to increase the digital footprint, bringing in more and more of automation for automated data capture in real time like integrating Belt Scale and PLC system for Plant Data and integration of Fleet Management System(FMS) with SAP for Mining field operation data leading to IT/ OT integration.
Roll out of functionalities like Supplier Relationship Management (SRM) for E-Tendering and Vendor Invoice Management (VIM) solution for automated capture of payment invoices into SAP and parking for payment is underway. Vendor through this system will be able to know the status of their invoice and payment thru the portal. Ex-Employee portal will also be made functional soon. Focus will be also on utilizing the full potential of Document Management and Mobility Solutions. ERP solution will be rolled out in the Coal Division of NMDC in next few months. Technology refresh of IT infrastructure to support ERP and future digital initiative alongwith best in class IT security solutions will also be our top priority.
36.1 COMPUTER & INFORMATION TECHNOLOGY INITIATIVES
1. The corporate website, tender website, exemployees portal and intranet website of the company has been revamped and launched on 26.01.2022. This has been developed using the latest technologies and responsive design. It is GIGW compliant, security auditec and very user friendly. It has a video header and uses CDN to deliver it. It also has SEO friendly CMS. The press release section also has integration with social media.
2. A Virtual Data Room (VDR) has been commissioned for NISP Demerger activity. This facilitates the various stakeholders like Legal Advisor, Transaction Advisor, User Departments to share and exchange information.
3. The email mailboxes of top management and common departmental mail ids have been moved to the cloud (Microsoft O365). This provides enhanced mailbox size of 50 GB and it is hosted in the cloud.
4. Facial Biometric Attendance Recording System has been recently implemented at HO, R&D, Panna, NISP and Ros. Implementation is in progress at Bacheli, Kirandul and Donimalai.
5. Microsoft Teams is being used extensively to conduct virtual meetings, webinars. One conference room at HO and Donimalai have been revamped with large display, PTZ camera, Wi-Fi ceiling mics etc. The same setup is being implemented at Bacheli and Kirandul also.
37.0 REPORT ON MANAGEMENT DISCUSSIONS AND ANALYSIS
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.
38.0 REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO UNDER THE COMPANIES (ACCOUNTS) RULES, 2014 IS AT - Annexure-II.
39.0 CORPORATE GOVERNANCE
Report on Corporate Governance is at Annexure-III
40.0. EXTRACT OF ANNUAL RETURN UNDER SECTION 92(3) OF THE COMPANIES ACT, 2013.
As required under the provisions of the Companies Act, 2013, the Annual Return is hosted on the Companys website and can be accessed from the link https://www.nmdc.co.in/investors/financial- details/annual-return
41.0 BUSINESS RESPONSIBILITY REPORT
In compliance with Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Business Responsibility Report (BRR) is at Annexure-IV.
42.0 SECRETARIAL AUDIT REPORT
Secretarial Audit Report in Form No.MR-3 pursuant to Section 204(1) of the Companies Act, 2013 and Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is at Annexure-V.
The Observations of the Secretarial Auditors are relating to the Composition of the Board of Directors with respect to the requisite number of Independent Directors of the Company, Constitution of the committees and quorum for the meeting, which is not as per the requirements of SEBI (LODR) Regulations, 2015 and the Companies Act, 2013 during the financial year 2021-22.
In this regard it is stated that NMDC Limited being a Central Public Sector Enterprise under administrative control of Ministry of Steel, Govt. of India and as per Articles of Association, the President of India shall appoint all members on the Board of Directors. The present composition of the Board of NMDC Ltd. consists of 4 (Four) Executive Directors including Chairman and Managing Director and 2 (Two) Government Nominee Directors and 4 (Four) Independent Directors. At present there is a vacancy of 2 (Two) Independent Directors including vacancy of atleast one Woman Independent Director needs to be filled in by Ministry of Steel, Govt. of India. All the observations are due to not having requisite number of Independent Directors. The Company is regularly following up with Ministry of Steel, Govt. of India for appointment of requisite number of Independent Directors on the Board of the Company. The Board of the Company has also been informed in this regard at regular intervals.
43.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS
Report on compliance with principles of Global Compact is at Annexure-VI.
44.0 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT / HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES / ASSOCIATE COMPANIES / JOINT VENTURES (FORM AOC-1) IS ENCLOSED AT ANNEXURE-VII.
45.0 REPORT ON CSRACTIVITIES
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.
46.0 RECOMMENDATIONS MADE BY THE COMMITTEE ON PAPERS LAID ON THE TABLE (RAJYA SABHA) IN ITS 150TH REPORT - DETAILS TO BE PROVIDED IN THE ANNUAL REPORT.
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 150th Report is enclosed at Annexure-IX.
Your Directors gratefully acknowledge the support, cooperation and guidance received from the Ministry of Steel, Ministry of Mines and Ministry of Forests & Environment 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 oui 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 Companys operations.
|Place : New Delhi|
|Date : 27.06.2022||SUMIT DEB|
|Chairman and Managing Director|