NMDC Ltd Directors Report.

Dear Members,

Your Directors are pleased to present the 62nd Annual Report on the performance of your Company, together with the Audit Report and Financial Statements for the year ended 31st March 2020 and the Report thereon by the Comptroller and Auditor General of India.


During the year under review, the Company has recorded turnover of Rs.11,699 crores, achieved Profit Before Tax (PBT) of Rs. 6,123 crores and achieved Profit after Tax (PAT) of Rs.3,610 crores.

The major performance highlights are summarized as under:-

• The company achieved production of 31.49 MT and sales of 31.51 MT.

• Turnover for the year under review was Rs.11,699 crores as against Rs.12,153 crores in the previous financial year 2018-2019 - a decrease of 3.74%.

• Profit before tax (PBT) from continuing operations was Rs.6,123 crores compared to Rs. 7,199 crores in the previous financial year 2018-2019 - a decrease of 14.95 %.

• Profit after tax (PAT) was Rs.3,610 crores compared to Rs.4,642 crores in the previous financial year 2018-19 - a decrease of 22.23%.

• Net worth of the Company stood at Rs.27,534 crores as on 31.03.2020 - 6.10% higher than the previous financial year 2018-2019.

• Due to Covid-19 pandemic, production was affected by 10 LT, loss of sale volume of around 5.5 LT, loss of sale revenue of around Rs.219 crore and PBT of Rs.120 crore.

• The Company declared an Interim Dividend of Rs.5.29 per share for FY 2019-2020.

• Capital expenditure of Rs. 2,490.99 crore has been incurred during the year under review.

• Under the Vivad Se Vishwas scheme for settlement of pending disputes, an amount of Rs.981 crore has been paid in full settlement of the disputes.

• Ministry of Steel, Government of India, has sold 8,05,82,119 (2.63%) equity shares @ Rs.114.72 per share and raised an aggregate net amount of Rs. 924.44 crores.

• Extension of Bailadila Iron Ore Mining Leases

- All the five NMDC Iron ore Mining leases are extended for further period of 20 years under Rule (3) of Mineral (Mining by Government Company) Rules, 2015.

• Coal Blocks allocation under Section-5 of the Coal Mines (Special Provision) Act, 2015

- Ministry of Coal has declared NMDC as successful allottee of Tokisud North Coal Mine (Non Coking Coal) & Rohne Coal Mine (Coking Coal).


Government of Karnataka issued letter no. CI 78 MMM 2016 dated 2.11.2018 granting extension of ML no.2396 in respect of Donimalai for 20 years from 4.11.2018 to 3.11.2038 as per the provision of the Mineral (Mining by Government Company) Rules, 2015. However, it imposed a condition of payment of an amount 80% of the average sale value as published by IBM from time to time on despatch of iron ore being payable along with the royalty and all other applicable taxes.

The impact of the said additional condition makes NMDCs mining operation at Donimalai unviable, the matter was internally discussed and also discussed at the Board level. Legal opinions were sought from Attorney General for India Shri KK Venugopal and Shri BP Acharya, Sr. Advocate and former Advocate General of the State of Karnataka. Both have opined that the condition being imposed by the Government of Karnataka is without the authority of law.

The matter was taken up with the Government of Karnataka at various levels, including the Chief Minister of the State by CMD. In spite of continuous follow-up, no positive response has come from the Government of Karnataka. Pending the decision on the representation by the Karnataka Govt., the operations have been temporarily suspended. In the circumstances, NMDC was left with no other remedy than approaching the Honble High Court of Karnataka by filing a Writ Petition; and, as directed, the WP No. 53514 of 2018 was filed on 29.11.2018.

After hearing the arguments of both the parties, the Division Bench of Honble High Court of Karnataka on 26-02-2019, reserved the matter for judgment. The Division Bench of the Honble High Court of Karnataka, Bangalore pronounced the judgement on 10.07.2019.

The operative portion of the Order is as under

i. Writ Petition is allowed;

ii. The condition imposed to levy premium equivalent to 80% of average sale price of iron ore published by the Indian Bureau of Mines while extending the period of lease vide Communication/Order No.CI78 MMM 2016 dated 02.11.2018 passed by the Secretary Department of Commerce & Industries, Govt. of Karnataka as amended by Corrigendum No.CI 78MMM 2016 dated 15.11.2018 and intimating the same through the letter No.DMG/MLS/ML- 2396/2018-19/6360 dated 23.11.2018 passed by the Director, Department of Mines & Geology, Bengaluru is set aside.

No Costs.

The Company addressed a letter to the Chief Secretary to Government of Karnataka, & Honble Chief Minister of Karnataka requesting them to intervene and direct the officials concerned to execute Mining lease deed extension of Donimalai Iron Ore Mine in compliance of the judgement of Honble High Court of Karnataka dated. 10-07-2019. The Government of Karnataka issued a letter withdrawing the approval of extension of mine lease period by 20 years accorded vide letter No. CI 78 MMM 2016 dated: 12.11.2018 and Corrigendum dated: 15.11.2018 immediately and auction the said block ML. No. 2396.

Aggrieved by the above withdrawal letter dt. 17.08.2019, NMDC filed Revision Application before the Honble Mines Tribunal, Ministry of Mines, New Delhi, challenging the Order/Letter No. CI 78 MMM 2016 dated 17.8.2019 issued by Govt. of Karnataka withdrawing the extension of Mining Lease No.2396 of Donimalai Iron Ore Mine, granted earlier vide its orders dated 02.11.2018 /15.11.2018 for a period of 20 years w.e.f. 04.11.2018 to 03.11.2038.

The Honble Mines Tribunal, issued letter no. 13/02/2019/ RC-I dated 20.08.2019 to both parties NMDC & GoK fixing the hearing on 21.08.2019. Despite the letter dt. 20.08.2019 issued by Revisionary Authority & Joint Secretary, Ministry of Mines informing Government of Karnataka that NMDC had filed a Revision Petition under Section 30 of MMDR Act 1957 ( Amended Act 2015), and fixing of hearing in the matter on 21.08.2019 Government of Karnataka issued Notification & NIT dated. 20.08.2019 for auction of Donimalai Iron ore mine ML 2396.

NMDC made submissions before the RA & JS, Ministry of Mines on 21-08-2019 and after the submissions made by NMDC, Honble Mines Tribunal ordered as under:

"Accordingly the impugned order dated 17.8.2019 and any consequent action thereon are stayed"

In the meanwhile, Ministry of Mines, Government of India issued notification substituting the word "shall" in place of word "may" in the Sub Rule 2 of Rule 3 and Sub Rule 3 of Rule 4 of Mineral (Mining by Government company) Rules, 2015. In view of the Notification issued by Ministry of Mines, GoI, substituting the word "may" with "shall" in Mineral (Mining by Government Company) Rules 2015, CMD, NMDC addressed letters to Honble Chief Minister of Karnataka requesting for execution of Mining Lease deed of Donimalai Mines ML No.2396 at the earliest, to avoid further Revenue loss to GoI, GoK and also for ensuring uninterrupted Iron Ore supplies to the Steel Industry. However, there is no action from Govt. of Karnataka till date.

Government of Karnataka is yet to file its Counter before the Honble Mines Tribunal. Honble Mines Tribunal informed all parties that the hearing in the RA application filed by NMDC will be held on 26.02.2020. However later the same was postponed to 04.03.2020. During the hearing held before Mines Tribunal on 04.03.2020, the representative of Government of Karnataka sought adjournment of hearing to 24.03.2020 by informing the Tribunal that the Ld. Addl. Advocate General of State of Karnataka would be appearing on behalf of State of Karnataka and also filing its counter.

Impact of the Honble Supreme Court of India Judgement with reference to the Writ Petition (Civil) No.114/2014 dated 02.08.2017

(i) The Company has been legally advised that there is no impact of the Honble Supreme Court of India Judgement with reference to the Writ Petition (Civil) No.114/2014 dated 02.08.2017 on NMDC. However, in case it is found applicable to NMDC at a later date, it may impact the profits of the Company. Meanwhile, the Bailadila Projects of NMDC have received the Show Cause Notices dated 31.07.2018 from District Collector Dantewada as to why NMDC should not be asked to deposit an amount of Rs.7,241.35 crores as compensation as calculated by Collector based on the above judgement. NMDC has been asked to submit its response by 31.08.2018. As per the legal opinion received, the above compensation is not applicable to NMDC and hence NMDC will seek legal recourse and contest before the Collector, Dantewada and other appropriate authorities. The company has contested the Show Cause Notice with District Collector, South Bastar, Dantewada.

(ii) On 26.09.2019, State Government issued revised show cause notices mentioning reassessed penalties for an amount of Rs. 1623.44 Crores. In this regard, once again, NMDC Ltd. did not accept the penalties imposed by the revised show cause notices.

(iii) Collector-Dantewada issued final demand notices on 15.11.2019 for an amount of Rs. 1390.03 Crores and Rs. 233.41 Crores towards EC Capacity violation and proposed production violation as per approved Mining Plan/Scheme respectively, i.e. total Rs. 1623.44 Crores.

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

(b) NMDC filed two Writ Petitions (Civil), being No.WPC/612/2020 and WPC/616/2020 challenging validity of demand notices dated 15/11/2019 on the allegation of extraction of iron ore in excess to the environmental clearance capacity during 2000-2017, have been filed at Bilaspur High Court, C.G. on 22.01.2020. The following reliefs have been sought from the Honble High Court -

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

• to allow the present writ petition by setting aside the impugned notice dated 15/11/2019 for demand of penalty and compensation towards excess production over the Environment Clearance Capacities.

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

(c) When the matter was listed for hearing on 19.2.2020, the Honble Court after hearing both counsels directed as under:-

• As prayed, list both the cases on 12th March, 2020.

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

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

(iv) A revision application No. 138102/2020 challenging validity of demand notices dated 15/11/2019 on the allegation of extraction of iron ore in excess to the proposed production quantity as per approved Mining Plan/Scheme during 2000-2017, has been filed at Mines Tribunal, Ministry of Mines, Govt. of India, New Delhi on 24.01.2020. The following prayers have been made in the revision application -

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

• pass such other orders as Honble Tribunal deems fit under the facts and circumstances of the case, in the interest of justice and in the public interest.

As you are aware, in the month of February 2020, Covid-19 Pandemic developed rapidly into a global crisis forcing governments to enforce lockdowns of economic activity. The impact of Covid in NMDC and steps taken in this regard are summarized as under:-

i) Production:-

In the financial year (FY-2019-20), the impact of Covid-19 on production of iron ore in NMDC was for the period from 22.03.2020 to 31.03.2020 and it affected production of 10LT of ore from Bailadila sector.

ii) Commercial:-

The GOI had enforced country-wide lockdown which led to shutdown of economic activities from 24th March 2020. Even though steel & related raw materials were classified as essential services, but due to the stoppage of production at mines, restriction on movement of labour, goods and services, lesser availability of rakes and closure of secondary steel units. Sales of iron ore affected to the tune of around 5.5-6 Lakh T from its Bailadila Complex for the period from 24th to 31st March20 for FY 19-20. However, there was no impact on sales in Donimalai Complex (Karnataka) as NMDC had achieved the MPAP (maximum permissible annual production) i.e. 70 Lakh T before the lockdown was enforced. Hence, the total loss of sales volume assessed for affected period is about 5.5- 6 Lakh T of iron ore.

iii) Financial:-

The COVID 19 had a marginal impact on the operations of the company due to the lock down in the country in March 20. There has been a loss of around 10.01 LMT of Production and 5.50 LMT of Sate of Iron ore during FY 2019-20 (in March 20). This has resulted in a loss in sale revenue of around Rs 219 Crore and PBT of Rs 120 crore.

iv) Steps taken to fight Covid-19 Pandemic:-

NMDC as a responsible Corporate Citizen took a series of steps to prevent the outbreak of COVID in its townships and work places. To ensure all our employees and their families are aware of the precautions to be taken several circulars have been issued, posters and banners have been displayed at various locations. Social Media like Facebook, Twitter etc were used to the maximum extent to spread awareness. All Government instructions were strictly complied with and were also given publicity. To mitigate the hardship of our contract associates and employees, an ex-gratia of Rs. 1000/- each was paid to all employees and contract associates.

Sanitisation of work spots, transport vehicles, maintaining physical distancing by staggering shifts, rostering of employees, use of thermal scanning etc helped preventing any outbreak of COVID during the lockdown period.

To overcome the shortage of sanitizers and masks, self help groups were formed through our CSR initiative and about 1.5 lakh masks and 13000 litres of sanitizers were procured through them and distributed to the needy. Besides this NMDC also promoted annadanam at the Projects and about 13500 packets comprising of food grains and other necessary items like Sugar, Onion, Potato, Washing Powder, Matchstick, etc. were distributed to the needy tribal families/nearby villagers.

Migrant labour at NISP who wanted to go back home after the lockdown was relaxed, were given necessary assistance in coordination with the State Government.





Percentage of Change
2018-2019 2019-2020
Iron Ore (Million tonnes) 32.36 31.49 (-) 2.69 %
Diamond (Carats) 38,149 28,537 (-) 25.20 %
Sponge Iron (Tonnes) 2,475 0.00 -
Pellets (Tonnes) 1,15,623 1,10,481 (-) 4.45 %




(in Million Tones)

(Rs. in crore)


% of change


% of change
2018-19 2019-20 2018-19 2019-20
Domestic 31.18 29.07 (-) 6.77 % 11,452.33 9,995.82 (-) 12.72 %
Export through MMTC 1.18 2.44 (+) 106.78 % 545.65 1,573.18 (+) 188.31 %
Total Sales 32.36 31.51 (-) 2.63% 11,997.98 11,569.00 (-) 3.58 %



2018-19 2019-20
a) Diamond
Sales (carats) 29,346 33,723
Value (Rs. in crore) 38.86 34.29
b) Sponge Iron
Sales (tonnes) 495.58 1,943.88
Value (Rs. in crore) 0.94 4.39
c) Wind Power
Sales (lakh units) 1.62 1.59
Value (Rs. in crore) 5.51 5.39




Percentage of change
2018-2019 2019-2020
Profit Before Tax (PBT) (Rs. in crore) 7,199 6,123 (-) 14.95 %
Profit After Tax (PAT) (Rs. in crore) 4,642 3,610 (-) 22.23 %
Net Worth (Rs. in crore) 25,952 27,534 (+) 6.10 %
Book value per share (Rs.) 84.76 89.92 (+) 6.09 %
Earnings per Share (Rs.) 14.70 11.79 (-) 19.80 %

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

Profit & Dividend

During the year under review, your Company has earned profit before tax from continuing operations of Rs.6,123 crores on a turnover of Rs.1 1,699 crores in comparison with previous years achievement of Rs. 7,199 crores and Rs. 12,153 crores respectively.

The Company has declared Interim Dividend for FY 2019-20 @ Rs. 5.29 per share in the month of February 2020 involving an outgo of Rs.1,619.72 crores. The share of Government with equity stake of 69.65 % is Rs.1,128 crores.

Transfer to Reserves

The company proposed to transfer Rs.1,500 crore from net profit to General Reserve.

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:



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


Necessary disclosure in respect of Internal Control Systems and their adequacy has been made in Annexure-C to the Independent Auditors Report dated 16th June, 2020 which forms part of the Annual Report.


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

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.

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.


The Audit Report for both Standalone and Consolidated Financial Statements for the year 2019-20 is unmodified and does not contain any qualification, reservation or adverse remark.


The Secretarial Audit Report for the FY 2019-20 as done by M/s Hanumanta Raju & Co., Company Secretary in whole time practice does not contain any qualification, reservation or adverse remark.


In line with the Vision plan of augmenting its Production & Evacuation capacity, technology upgradation, diversification & value-added products, NMDC has taken up many ambitious projects. Some of the projects have been completed and others are nearing completion. Action for new projects have been initiated. During the financial year 2019-20, the details of Projects undertaken by NMDC are summarized as under:

Ongoing Projects:

1. Screening Plant III - Kirandul Complex

2. Additional Screening Line & up gradation of existing conveyor at Kirandul.

3. 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

4. Doubling of KK line between Kirandul & Jagdalpur Projects in pipeline:

1. Screening Plant II- Donimalai Complex

2. Additional Screening Line & up gradation of existing conveyor at Bacheli.

Projects/Schemes for capacity expansion

To augment the production and to improve the quality of product mix from Bailadila Sector, the schemes like SP-III Kirandul, relocating Crushing Plant of Dep.14 & 11/C and Downhill conveyor, additional screening lines in Bacheli & Kirandul, 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 also been taken up.

In screening Plant-III, Kirandul project, the site work in packages like site development package, RWLS package are in progress. Other packages like Dry circuit package, Wet circuit package etc. are at different stages of tendering process.

Additional Screening Line & up gradation of existing conveyor at Kirandul is expected to be commissioned by August 2020.

The upcoming scheme in Donimalai Complex includes a Second Screening Plant of 10.0 MTPA capacity for handling the ROM from Donimalai & Kumaraswamy mines in addition to the existing Screening Plant. Statutory clearances for 10.0 MTPA Screening Plant-ll is awaited. This project is linked with the grant of lease of Donimalai Mine.

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, Slurry Pipeline etc.

Doubling of KK line between Kirandul & Jagdalpur (150.462 km) is being executed by Railways as a deposit work and is in advance stage. 45.50 kms line between Jagdalpur & Silakjhori and 7.32 kms line between Dantewada & Gidam were completed during the FY 2017-18 and opened for traffic. Further, during FY 201819, 9.2 Kms line between Silakjhori and Kumharsodra was completed and opened for traffic. Works are in progress in other reaches. Doubling between Gidam & Kumharsodra (43 kms) is expected to be completed in FY 2020-21. Doubling between Kirandul & Bacheli (9 kms) is expected to be completed in FY 2021-22 and between Bacheli & Dantewada (34 kms) is expected to be completed in FY 2022-23.

For minimizing the rake loading time & increasing the evacuation capacity at Kirandul, installation of additional rail line for 2nd RWLS is being planned. DPR, in this regard is submitted to East Coast Railway, Bhubaneswar and approval is expected soon.

NMDC has taken up an ambitious project of laying Slurry pipeline from Bailadila to Jagdalpur and further up to Visakhapatnam. The Capacity of the line is 15 MTPA and this will be associated with facilities like beneficiation plant at Kirandul & Bacheli, pellet plant at Nagarnar.

The slurry pipeline between Bacheli to Nagarnar is being executed by NMDC. An EoI is being issued for identifying the partners for execution of Slurry Pipeline from Nagarnar to Vizag on JV mode.

The activities for taking a corridor of land for Right of Use (ROU) for laying the Slurry pipe line is in progress.

Field demarcation/assessment of properties in pipeline corridor are completed for 57/61 villages. Draft 6(1) notification is also under preparation by engaging a consultant.

Site levelling 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 packages.

Tendering action for technology packages is in progress for OPP at Bacheli, Pellet Plant at Nagarnar and Slurry Pipeline packages.

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 and commissioned in the month of July-2019 in various production units of NMDC (Bailadila Iron Ore Mine, Kirandul Complex & Bacheli Complex and Donimalai Iron Ore Mine, Donimalai Complex). All the RTS power plants are in operation since then. With this, NMDC has joined other major corporates in harnessing solar power which has assumed a greater significance in recent times.

Steel Plant Project at Nagarnar, Chhattisgarh:

Steel Plant project at Nagarnar is progressing for construction completion stage and reaching its commissioning phase. Effect of COVID-19 resulted in shortage of manpower availability at site and has severely impacted the pace of work in all packages. Visit of foreign specialists for various testing & commissioning also got affected because of COVID-19. Due to the above reasons, it is expected that delay in completion of balance work of steel plant project is likely.

The power requirement for operation of steel plant is already made available at various sub-stations to ensure its supply to different package facilities. Railway connectivity to the plant to fulfil the initial inward and outward movement of materials is already in place. Conducting cold trial, Preliminary Acceptance Test, etc. of individual equipments are under progress as precommissioning activities. Project has obtained various statutory clearances viz., Consent To Operate (CTO), Factory licence for phase-I commissioning requirements (i.e for packages like RMHS, Coke Oven, Power & Blowing Stations, Oxygen Plant, Compressed Air Stations, etc.), IBR approvals for Power & Blowing Stations and Coke Oven Plant, etc. as a preparedness for commissioning of steel plant. The CAPEX achievement w.r.t steel plant during the year 2019-20 is Rs. 1451 crores and expenditure incurred so far is Rs. 16,994 crores.

Initiatives for Technological upgradation

i. Electronic number taking through optical Character recognition cameras, query based PLC print facility and integration with freight online information system of East Coast Railways

Wagon loading print facility system (WLPFS) for Kirandul Complex has been upgraded to electronic number taker assembly system with optical character recognition cameras and hybrid power supply system with battery backup for 24x7 continuous reading of wagon numbers, sick wagon detection and reporting before loading of all wagons thus eliminating manual number taking and subsequently saving time after placement of wagons. The WLFPS has been directly integrated to East Coast Railways (ECOR) freight online information system for direct data transfer after loading thus reducing the turnaround time of rakes. These systems are one of the first in India.

ii. Up gradation of Drive System for Belt Conveyor BC-414 & BC-504 to CST drive for Donimalai Complex.

Existing Squirrel Cage Induction motors with rotor resistance box for both the downhill conveyors from Screening Plant to Loading Plant is being upgraded from Conventional bevel helical gear box to PLC based Controlled start Transmission drive with viscous fluid clutch and disc brakes for smooth starting, high operational efficiency, running at full capacity, low maintenance, regeneration of energy and decreasing direct impact of load and life of motor.

iii. Installation of continuous conveyor belt monitoring system for BC 28 & 29 of Bacheli Complex.

Since there is no continuous monitoring system for 24 x 7 monitoring of lengthy downhill tunnel conveyor belts, an X-ray/eddy current PLC based continuous monitoring system has been proposed for monitoring continuously the condition of lengthy downhill steel chord tunnel conveyors having very difficult access. The system will monitor ripping, warping, breaking, misalignment of steel cords of belts. It can also be used for quick positioning for splicing, top and bottom rubber cover monitoring etc which saves time, decreases break down and increases productivity substantially.

iv. Automation of Screening Plant-1 of Kirandul Complex

SP-1 of Kirandul Complex is being automated with latest DCS system, SCADA and RIO network and integration with other plant DCS and ERP for the first time since inception. The automation will reduce fault finding and trouble shooting, increase efficiency, continuous monitoring of operations, energy and productivity of Kirandul Complex.

v. Compact & Energy efficient Hydraulic Drive:

Compact & Energy efficient Hydraulic Drive is ordered on Maha Hydraulics Private Limited for replacement of existing Mechanical Gear Box for bucket wheel drive in Bucket wheel reclaimer of Kirandul Complex, loading Plant.

Hydraulic Drive has the following advantages over the mechanical/conventional gear boxes.

a) Less Power consumption due to overall efficiency of Hydraulic drive being 86% against 74% of Electro-Mechanical Drive.

b) Unlimited Start Stops, Electrical Motor need not be stopped for stopping the Hydraulic Drive.

c) Optimized installed power, Hydraulic Drive delivers High Torque at Low Speed, can be operated at low speeds; Smooth starting of the Equipment.

d) Hydraulic Drive can absorb shock loads and can protect the driven equipment.

e) Very less by weight resulting in less counterweight and less load on Slew Bearing.

f) Low maintenance due to smooth & uniform acceleration, absorption of shock loads and anti vibration characteristics.

g) Total value of the Procurement, work is 121.25 lakhs.

h) The assembly is installed, commissioned on 08.11.2019 and working satisfactory.

vi. Up gradation of downhill braking system of Dep-11C.

Dep.11C of Kirandul Downhill conveyors, 124, 125 & 126 Existing Thruster Braking System is upgraded by Fail Safe Hydraulic Disc Brake assemblies with soft braking option (on Slow Speed side).

The Procurement and work are awarded to Sibre Brakes (India) Pvt. Ltd., Kolkata on 29.05.2020 at value of Rs. 366.16 lakhs. This Braking System is first of its kind in NMDC.

Overseas Projects/NMDC Global Australia Legacy Iron Ore Ltd., Perth, Australia

Legacy Iron Ore Ltd is an ASX listed entity based in Perth, Australia with a focus on iron ore, gold and base metals. NMDC has 92.32% equity in the company.

Legacy is holding 21 exploration tenements in Iron Ore, Gold, Base Metals & Tungsten in Western Australia. Legacy has 60% interest in Mt Bevan Iron Ore Project which has a JORC compliant Indicated and Inferred resource of 1.17 billion tonnes magnetite. Mt Bevan tenement also has potential for nickel-copper mineralisation. Currently exploration drilling is being carried out in Gold Targets to get the confidence & complete the feasibility study.

Legacys major gold focus lies in the South Laverton region and base metals focus lies in the Koongie Park region of Western Australia. Mt Celia Gold project has identified two gold occurrences namely Kangaroo Bore and Blue Peter deposits. Total 14,755m (183 holes) drilling was done in these tenements with a total gold resource of 3.41 mn tonnes @ 1.68 g/t (metal content of 184,100 ounces). Pit optimisation study conducted by AMC consulting has demonstrated good potential in both these deposits.

In FY20, Legacy has completed 500 mts of drilling in Gold/ Nickle tenements. Further drilling of 4000 mtrs is planned in current year in Mt Celia project to fill the gaps identified by pit optimisation study. Legacy has completed 2800 mtrs of RC drilling covering 29 holes in FY21 till May.

Legacy Iron Ore has raised AS 9.227 million through rights issue in Dec19. NMDCs equity in the company has increased to 92.32% after the Rights issue, from earlier stake of 78.56%.

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 1.78 MT of total saleable coal in FY20 compared to 1.32 MT in FY19, which is a all time high since inception.

Venture into Battery Raw materials

NMDC has reviewed its International Strategy, through one of the top global strategic consultant. Based on the outcome, NMDC will venture into Battery Raw Materials, which is also required for the countries future Electric Vehicle potential.



Extension of Bailadila Iron Ore Mining Leases:

All the five NMDC Iron ore Mining leases are extended for further period of 20 years under Rule (3) of Mineral (Mining by Government Company) Rules, 2015. The forest clearance for all the Mining Leases also got extended. The details are as under:-

S. No. Name of Mining Lease Area in Ha Date of grant of extension of ML Date of execution of lease ML Validity FC validity (coterminus with lease period)
1 Bailadila Deposit-11 (A,B & C) 874.924 3/5/2018 14/12/2018 10/9/2037 10/9/2037
2 Bailadila Deposit-14 322.368 17/12/2019 10/1/2020 11/09/2035 11/9/2035
3 Bailadila Deposit-14NMZ 506.742 17/12/2019 10/1/2020 6/12/2035 6/12/2035
4 Bailadila Deposit-5 540.05 17/12/2019 10/1/2020 10/9/2035 10/9/2035
5 Bailadila Deposit-10 309.340 17/12/2019 10/1/2020 10/09/2035 10/09/2035

Bailadila Deposit No.1 & 3:

The Company has filed Writ Petition before the Honble High Court of Delhi against allotment of Deposit-1 to Tata Steel & PL of Deposit-3 to ESSAR Steels. The Writ Petitions are being heard before the Honble High Court of New Delhi.

Copper in Chhattisgarh:

The company has submitted the proposal to the Secretary, Govt. of Chhattisgarh for Nodenar-Modenar Copper Block over an area of 21.24 sq km for prospecting and exploitation in Bastar & South Bastar Dist. for reservation under section 17(A) (2A) of MM (D&R) Amendment Act, 2015. The matter is being pursued with Govt. of Chhattisgarh.


Iron Ore Sasangada:

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 obtaining forest clearance, drilling could not commence in the lease period. 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. The matter is being pursued with Govt. of Jharkhand for reservation.


The 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 grant in favour of JNMDC for Prospecting and Mining operation to provide iron ore linkage to upcoming Jharkhand Kolhan Steel Limited.

The matter is being pursued with Govt. of Jharkhand for reservation in favour of JNMDC.

M/s M L Jain & Sons and M/s R Mc Dill Co Pvt. Ltd:

The Company has submitted application for reservation of identified block by clustering mining Leases of M/s M L Jain & Sons and M/s R Mc Dill Co Pvt. Ltd (Total Area 312.43 Ha) in favour of JNMDC for Composite Licence under section 17A(2A) of MM(DR) Amendment Act-2015. The matter is being pursued with Govt. of Jharkhand for reserving deposit in favour of JNMDC.

Gold: In Jharkhand

Gold & associated mineral Deposit: Vide letter dt. 1.1.2019, NMDC submitted application to the Secretary cum Commissioner, DMG, GoJH 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 -NMDC 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.


The Company is pursuing for ML for Ramandurg and Kumarswamy Deposit (contiguous to ML No.1111). Ramandurg iron ore deposit is subjudice and pending in the Honble Supreme Court of India.

In addition, the company has applied for 3 Prospective blocks contiguous to Donimalai ML under reservation route.

Other Minerals:

The 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. The matter is being pursued with Govt. of Chhattisgarh for reservation.


Iron & Manganese Ore:

The Company is pursuing for reservation for Mankadnacha, Malangtoli, Khandadhar (A & B Blocks), Rakma & Murgaberha iron ore deposits and Panduliposi Iron Ore & Manganese Deposit.


Kansa Block-Vide letter dt. 1.1.2019, NMDC has submitted application to the, DMG, Govt. of Odisha for proposal to reserve 8.0 Sq. Km. area Jajpur, District, Odisha under Section 17A(2A) of MM(D&R) Amendment Act, 2015 for prospecting and mining operation of Nickel. The matter is being pursued with Govt. of Odisha for reservation.


Tripartite MoU among GoMP (MRD, through DGM), MPSMCL & NMDC was signed for geological and geophysical exploration in various Districts of M.P. Govt. of Madhya Pradesh issued Gazette Notifications of 3 iron ore prospective blocks, 20 diamond prospective blocks and 1 various minerals prospective block which are applied under MoU for exploration and subsequent reservation.

Iron Ore Prospective Blocks:

a) Sidhi Block in Sidhi & Singrauli, Districts

Identified 5 iron ore sub blocks. Geological mapping and Geochemical Mapping completed in 5 potential sub-blocks. NMDC completed Geophysical Surveys in One Block. Topographic Surveys using SP2 60 GNSS completed. Core drilling planned to establish the quantity and grade for which Forest application for drilling has been submitted. Matter is being pursued with Govt. of M.P.

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): The status of exploration are as under:

• 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 and also demarcated several additional anomalous areas in the diamond blocks by processing the Raw Aeromagnetic Data acquired provided by GSI in Diamond Blocks.

• Forest applications for drilling has been prepared and submitted. The matter is being pursued with Forest Dept. for obtaining permission for drilling.

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 for which Forest application for drilling has been submitted. The matter is being pursued with Forest Dept. for obtaining permission for drilling.

Tikamgarh PLs:

Based on RP works, 5 PL applications were submitted to Mining Officer, Tikamgarh. All 5PLs for Diamond in Tikamgarh District in Madhya Pradesh, were forwarded by MP Govt. to MoM, Gol, New Delhi. The MoM, New Delhi requested Secretary, MRD, GOMP, Controller General of IBM and DG, GSI for their comments for grant of PLs in favour of NMDC. MRD, Secretary sent comments for grant of the above PLs in favor of NMDC. Matter is being pursed with MoM, New Delhi for prior grant. The company will start detailed exploration in these areas after grant of PLs.


The 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.

The Company has applied for Peravali - Betapalli Block for Gold. NMDC has requested State Govt. to reserve this block in favour of NMDC under 17A (2A) of MM (D&R) Amendment Act, 2015 for Prospecting & Mining.


Khobna Tungsten Block - Your Company has submitted the proposal for reservation of Khobna Tungsten Block, Nagpur District, Maharashtra under section 17(A) (2A) of MM (D&R) Amendment Act, 2015 for Prospecting and Exploitation. The matter is being pursued with Govt. of Maharashtra.


Coal Blocks allocation under Section-5 of the Coal Mines (Special Provision) Act, 2015:

Ministry of Coal has declared NMDC as successful allottee of Tokisud North Coal Mine (Non Coking Coal) & Rohne Coal Mine (Coking Coal). Statutory payment for Tokisud North Coal Mine has been made based on allotment agreement and Allotment Order awaited. Allotment agreement of Rohne Mine is awaited.

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

Your company has been allocated 5 blocks (2 iron ore blocks in Jharkhand & Maharashtra and 3 Gold blocks 2 in Karnataka & 1 in M.P.) by Ministry of Mines, Gol for G4 level exploration. NMDC submitted the Geological Report of Iron Blocks and NMET reimbursed the exploration cost. NMDC also submitted Geological Report of Bukkapatna Gold Block to NMET. Exploration work is under progress in remaining two Blocks.


Your company has successfully bidded for Chigargunta- Bisanatham gold block for Mining Lease (ML area 263.01 Ha.) located in Chittoor district in Andhra Pradesh through e-auction route with a final bid offer of 38.25%. NMDC requested Govt. of Andhra Pradesh to issue the LOI to enable NMDC for taking further course of action. The matter is being pursued with Govt. of Andhra Pradesh for issuing LOI in favour of NMDC.


NMDC-CMDC Ltd., is a subsidiary of NMDC Ltd. with equity share holding of NMDC Ltd. and CMDC Ltd. in the ratio of 51:49. The present Mining Lease Grant status of both the deposits are as follows:

Bailadila Iron Ore Deposit No.13 Mining lease has been transferred in favour of NMDC - CMDC Limited (NCL). The modified mining plan has been approved by IBM Raipur. Environment Clearance has been transferred in favour of NCL. Action has been taken for transfer Forest Clearances. MRD, Govt. of Chhattisgarh has issued a show cause 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. NMDC-CMDC Limited (NCL) has submitted the reply to the MRD, GOCG and requested for its withdrawal.

Bailadila Iron Ore Deposit No.4

Ministry of Mines, Govt of India vide Gazette Notification No. G.S.R. 697 (E) dated 30.09.2019 has reserved an area of 646.596 ha in favour of NMDC- CMDC Limited (NCL) under sub-section (1A) of section 17 A of the MM (DR) Act- 1957 for prospecting and mining operations. Since NMDC has done the exploration work, NMDC-CMDC Limited (NCL) has submitted an application for grant of mining lease of Deposit no. 4 in schedule -VI of MCR, 2016 to Secretary, Mineral Resource Department, CG. Matter is being pursued with C.G. Govt for grant of ML in favour of NCL.


Baloda - Belmundi Diamond Block - Your 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 17(A) (2A) of MM (D&R) Amendment Act, 2015 for Diamond for prospecting and exploitation. The matter is being pursued with Govt. of Chhattisgarh.


a) NMDC has 8 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:


The company has obtained Amendment to ToR on 24/9/2019 from MOEFCC for Dep-11 ML for obtaining EC along with Public hearing exemption from MOEFCC vide letter dated 01.11.2019. On 9/12/2019, the company also obtained amendment to TOR for obtaining EC from MoEF&CC for KIOM by withdrawing ToR point nos.: 1&2. The company also obtained transfer of EC of Deposit-13 from NMDC to NCL on 12/12/2019.

The company obtained the extension of validity of existing Forest clearance co-terminus with extended lease period under F.C. Act, 1980 for Five Mining Leases of Bailadila Deposit-14, 14 NMZ, 11, 5 & 10.

The company has got valid operating consents for all production projects. The Company obtained Consent to Operate under Air (Prevention & Control of Pollution) Acts 1981 and Water (Prevention & Control of Pollution) Act 1974 from Chhattisgarh Environment Conservation Board (CECB) for the following Projects:

• Bailadila Deposit-10 for 6.0 MTPA production for a period up to 18/07/2020.

• Bailadila Deposit-14/11C for 12 MTPA production for a period of one year i.e. from 01.01.2020 to 31.12.2020

• Bailadila Deposit-11B for 7 MTPA production for a period of two years i.e. from 01.01.2020 to 31.12.2021

• NMDC Iron and Steel Plant at Nagarnar for a period up to 13/9/2020.

• Diamond Mining Project, Panna for 1,00,000 carat production for a period up to 31/10/2021 for the Diamond Mine and up to 30/6/2020 for processing plant.

The company also obtained authorization under Hazardous Waste Management & Transboundary movement Rules 2016 for Bailadila Deposit-11B for used oil 75 KL from CECB, Raipur for a period of 5 years w.e.f 23.08.2018 to 22.08.2023.

The company also Obtained NOC from Central Ground Water Authority (CGWA) for Kumarmarenga Railway siding for ground water withdrawal which is valid for 2 years up to 14/05/2021 and approval from MoEF&CC on 10/7/2019 for change of nomenclature from renewal of mining lease to infrastructure for Deposit-10 Float ore over an area of 142.80 Ha.

The Environment Management works carried out by NMDC in the FY 2019-20 includes various R&R works such as plantation of around 1.3 Lakh saplings in and around the lease areas, construction and repair of buttress walls, check dams, garland drains, rainwater harvesting pits etc. The works also include seed broadcasting and laying of geo-coir matting on the inactive dump sites.

The Company is organizing monitoring studies covering all environmental parameters by recognized laboratories. The studies indicated that all environmental parameters are found to be well within the limits.

Sustainable Development (SD) Performance

Under S.D. programme, construction of Sewage Treatment Plant with SBR technology at Bacheli at a cost of Rs.6.61 Cr has been constructed. Similar treatment plant at Kirandul at a cost of Rs 8.0 Cr for treatment of domestic effluents is under construction stage. BIOM, Bacheli Complex was awarded Greentech Environment Award (Winner) and 4 first prizes and 2 second prizes in various categories including 1st prize in Overall Performance category in Mines Environment and Mineral Conservation Week. Every year Carbon Footprint studies are being conducted for disclosure of Greenhouse Gas Emissions in Carbon Disclosure Project (CDP).


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 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. Mine Level Tripartite Safety Committee Meeting of Donimalai Complex (DIOM & KIOM) has been conducted on 12.09.2019 and other projects viz. Bailadila Iron Ore Mine, Kirandul Complex; Bailadila Iron Ore Mine, Bacheli Complex and Diamond Mining Project, Panna could not conduct the Mine Level Tripartite Safety Committee Meeting due to Covid-19 pandemic.

Corporate Level Tripartite Safety Committee Meetings are being held regularly once in a year at Head Office.

30th Corporate Level Tripartite Safety Committee Meeting of Bailadila Iron Ore Mines/Diamond Mining Project and Donimalai Iron Ore Mine/Kumarswamy Iron Ore Mine could not be conducted due to Covid-19 pandemic.

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

Man days lost per 1000 man days worked for the year 2019-20 is 0.15 and 7.04 for the year 2018-19.

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) - OHSAS 18001:2007 & Social Accountability - SA 8000:2014 Certification Standards.

All the NMDC Production Projects viz. BIOM, KC; BIOM, BC; DIOM; KIOM; DMP, Panna including R & D Centre are accredited with Integrated Management System (IMS)

OHS Activities:

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

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

Safety Management System:

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


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 2019-20, 63 tenders valuing Rs.445 crores were covered under this category.

Transparency in procurements handled

In order to enhance transparency in procurements & increasing competitiveness, your 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. This was further reduced to Rs.271.85 lakhs (26 cases) during 2019-20.

• Pre-qualifying conditions: PQC for conveyor belts & HEM equipments tenders have been revisited and a structured PQCs have been made keeping in view wider participation.

• GeM Portal: Procurement through GeM portal as per the guidelines of GOI, is being done for the Materials which are available in the GeM Portal. Total 1017 orders valuing Rs.16.00 crores were placed during the year 2019-20.

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.


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.


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


NMDC effectively implemented Official Language Policy of Government of India in its Headquarters, Projects and Units.

Giving a thrust on training in Hindi language "Hindi Parangat" training continued during the year at Hindi training center of Head Office. Eight batches of employees have already completed the course successfully. Hindi Workshops were conducted in every quarter at Head Office as well as Projects for practical training of official work in Hindi. Training in "Hindi Unicode" was imparted to work in Hindi on computers. Regular classes are held in its premises with the help of Hindi Teaching Scheme of Govt of India to impart Hindi Stenography training to English Stenographers.

Incentive Schemes for writing noting, letters, Registers in Hindi and giving dictation in Hindi were implemented throughout the year. Hindi Fortnight was celebrated. Various Hindi competitions were conducted and prizes distributed to the participants. In order to maintain tempo of working in Hindi throughout the year, monthly Hindi competitions, viz, Noting and letter writing, Entries on Registers, Dictation etc. were conducted.

Meetings of Official Language Implementation Committees were held in every quarter at Head Office and all the Projects. To monitor use of Rajbhasha and suggest measures to augment the same, inspections and Desk training programs were conducted at various projects and units. Rajbhasha contact programs were held every month at various departments of HO by Officers of Rajbhasha Department to increase awareness towards Official Language. Desk training in Hindi was also imparted during such programs. Quotes of famous personalities in Hindi were framed and displayed at important places in office premises. Hindi books were purchased on subjects of common interest.

NMDC also continued its efforts for propagation of Rajbhasha at town level. A Joint Hindi workshop for small undertakings of Twin cities of Hyderabad-Secunderabad was conducted at Head Office under the aegis of Town Official Language Committee (Undertakings), Hyderabad-Secunderabad. Also, an "Inter-Undertaking Hindi Elocution Competition" was organized for employees of all the undertakings.

All India Rajbhasha Conference was also conducted at Head Office under aegis of Ministry of Steel. Senior Officers from MOS its undertakings, Officers from PSUs in Hyderabad and Rajbhasha Officers/Nodal Officers from all the projects and units of NMDC attended the same. Rajbhasha Technical Seminars were conducted at BIOM, Bacheli, BIOM, Kirandul & and Diamond Mining Project, Panna. House journal dedicated to Official language "Khanij Bharati" was published. Various Hindi/Bilingual/ Trilingual magazines, news magazines were also published from Head Office and Projects viz, Sarjana, Baila Samachar, Bacheli Samachar, Doni Samachar, Heera Samachar, She News etc. To encourage usage of Rajbhasha in Projects and units, shields were distributed under "NMDC Rajbhasha Shield" Scheme.

Rajbhasha Kirti Puraskar (Second) for PSUs in C region was conferred on NMDC consecutively for the second year by Government of India, Ministry of Home Affairs for the year 2018-19. NMDC also received First Prize-"Rajbhasha Shield" from Town Official Language Implementation Committee (Udertakings), Hyderabad- Secunderabad in mid-sized category for outstanding implementation of Rajbhasha during 2018-19. NMDCs Hindi Magazine "Khanij Bharati" was awarded "Best Magazine Award" in printed magazine category among all the PSUs of Hyderabad-Secunderabad consecutively for the third year. PRSI National Award (First) for 2019 and PRCI Golden award was also conferred on "Khanij Bharati". Rajbhasha Sammaan was conferred on NMDC by World Hindi Council for outstanding implementation of Rajbhasha.


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 5 Nos. Vendor Meets/programmes at various places in total during 2019-20. 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 2019-20 are given below:-

Category of MSE Firm Norms Achievement
Procurement from MSE firms 25% 38.24%
Procurement from SC/ST MSE firms 4% 4.30%
Procurement from Women Entrepreneurs MSE firms 3% 4.03%

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.


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

Scheduled Castes & Scheduled Tribes

08 candidates belonging to Scheduled Caste and 203 candidate belonging to Scheduled Tribes were appointed in the year 2019 against 426 posts filled by direct recruitment.

Strength of SCs & STs as on 31stMarch 2020

1. Total number of employees = 5739
2. Scheduled Castes amongst them = 881
3. Scheduled Tribes amongst them = 1435
4. Total SCs and STs = 2316
5. Physically challenged employees = 101

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


Staff Welfare activities

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

Promotion of Sports

Inter Project tournaments, both indoor and outdoor, for employees and games & sports for the wards of employees were held in different Projects during the year apart from promoting sports events under CSR.

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 2019-20.


At NMDC Limited, Our people are at the heart of our business - everything we do, including our success, is dependent on them. Ensuring our employees are engaged, and have the skills and knowledge not just to perform in their roles but to grow, develop and feel fulfilled is essential for us to prosper as a company.

We have a range of Learning and Capability building initiatives that are designed to improve personal performance while achieving our business goals. These initiatives are in line with the current learning trends to suit the needs of todays learning: there is additional focus on creating an eco system of learning across the learning through local and corporate initiatives.

Learning and Development initiatives offered during 2019-20 were aligned with Business Goals. The ongoing core programmes were revitalised to reflect the emerging capability requirements. In addition to core programmes, customised programmes were also offered to address the needs expressed by businesses, aimed at building specific capabilities at various levels of the organisation.

Corporate HRD has Organized 24 Nos of Customised In House Training Programmes covering 497 Executives during 2019-20, 127 Nos of External Training Programmes covering 392 executives on various subjects, 108 Nos of Executives were sent abroad for Foreign Training Programmes/AMP/Visits.

Talent Management, Mentorship as well as Leadership Development for Women & Capability Development Programmes:

a) 7% of Executives (E0& above) are imparted Training for Continuation of Talent Management and Career Progression through one week Training in Centre of Excellence within India e.g. IITs, IIMs, NITs, ICAI etc. 52 Executives at IIM Kozhikode, 22 Executives at XLRI and 23 Executives at IPE, Hyderabad

b) Conducted six number of Mentorship Programme for Women employees for Work life Balance as well as Leadership Development (Nos of Initiatives) 3 Programs are conducted with AMP and 3 Programs are organized with Art of Living (AoL)

c) Organised the 6 Nos of Capability development Programmes for employees to build their technical & managerial competencies for higher positions including special focus on Web Learning programme(s). 2 No of Programmes at IIT Kharagpur and 3 programs with M/S EDS technologies and 1 program with M/s Geosys Information Pvt Ltd, Hyderabad.

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 25 Gold Awards and 1 Silver Awards in CCQC. 12 QCs participated in NCQC and bagged one Par Excellence Award, 10 Excellent Category Awards and one Meritorious Award

CMDs Trophy for Young Managers:

We have continued this scheme of a competition based on "Research Paper and its Presentation" for Young Managers under the age of 40 years that is designed to promote Literature survey, Research and Innovative thinking among our Young Managers. The Winners to participate in International/National conference/Visit. Winners are sent to Ferrous & Steel Outlook 2020 organized by S&P Global Platts during 21 -23 Nov 2019 at Singapore. Runners are sent to 4th Indian Iron Ore, Pellet and DRI Summit in Delhi during 2nd and 3rd March 2020.

Employee Engagement Initiatives for Young Executives "Youthrive":

We have continued to develop a sense of camaraderie amongst the Young Executives at NMDC who are from across the Projects/Units/ROs, You Thrive - A unique Engagement Initiative for Young Executives has been organised at NMDC this Financial year as well. Winners and Runners are rewarded suitably.

Implementation of Succession Management Policy:

Updated the Succession Management plan and the same is approved by the Board as to create succession Matrix for the development of our senior executives to occupy key positions by emphasizing on performance and potential of those executives working in this Organization.

Knowledge Management Framework (Samanvay):

Department of Public Enterprises (DPE) has developed Common Knowledge Management Portal "Samanvay" for all CPSEs in collaboration with ONGC with the intent to generate a platform for all CPSEs to collaborate and learn. The Knowledge Management Portal (https:// samanvay.cpse.in) was smoothly implemented in NMDC Limited on which we can share our Best Practices, Case Studies, tacit knowledge, breakthrough innovations etc.

This portal also has a separate section on Infrastructure facilities such as R&D, Training, and Equipment etc which can be shared with other CPSEs.

Celebration of International Womens day 2020:

NMDC Limited has observed week Long International Womens Day 2020 with great fervour and zeal at Corporate Office from 02.03.2020 to 07.03.2020 as to disseminate the information about NMDCs exemplary works/activities towards women empowerment in line with Compaign #Har Ek Kaam Desh Ke Naam# Ispatilrada. On this occasion, all the women executives/ employees, Apprentices, Trainees including contract workers were welcomed with a Greeting Card, Flowers and Sweets. A host of events were lined-up throughout the week to mark this event. During this week, Women employees visited Kasthurba Ashram and distributed Fruits to residents of Kasthurba Ashram - A home for destitute women. We have Conducted Yoga/ Health and Wellness Programme to Women employees of Corporate Office by M/s Jayganaga Life Coaching Academy, Odisha. Felicitated of Nursing Students undergoing Training under Balika Shiksha Yojna and arranged motivational talk by Sr. Women Executives. We have conducted Competitions for women employees, staff and Trainees on the eve of International Womens day. All women actively participated in the Competitions.

Learning from Each Other (LEO):

A series of workshops titled "Learning from Each Other" were organized at NMDC during the year 2019-20. The aim of these workshops were to share the best practices, methods and techniques followed by NMDC in specific identified areas and learn tools and techniques to sustain these practices through interaction with each other. Senior executives of NMDC HO and experts in related areas interacted with participants in these workshops.

Culture Building through Learning Workshops:

At NMDC Limited, to create a deeper bond among employees, and thus improve overall happiness, we have Conducted Brain Storming sessions with all top Leaders of the Organizations. To ensure crossemployee and departmental interaction, the teams were randomly selected and nominated for Culture Building workshops designed for two days and Three days at all levels. We believed that by making our people a priority and creating programs that encourage them to build relationships and friendships, they will be happier and, in turn, with NMDC".

Skill Development Training:

Signed an MOU with NSDC for imparting Skill Development Training and RPL Certification for 400 workmen in NMDC limited. First PSU to sign MoU with NSDC

Your Company is also playing a proactive 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.

Rewards & Recognition for HRD initiatives (2019-20):

• NMDC was conferred Best Supporting Organization Award in Quality Movement during 33rd Annual Chapter Convention held during 28-29 August 2019 in Hyderabad.

NMDC has bagged Special Commendation Award in "Innovative Training Practices" category by ISTD.


Vigilance department had 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 Company. The vigilance functionaries at the projects have conducted regular training classes for the employees on the vigilance matters. With a view of value addition and skill development of the executives of Vigilance Department, they were nominated for various training/workshops being organized in India.

It has been ensured that the systems and procedures including the process of document handling, maintenance of records etc. of the Vigilance Department is conforming to the Quality Management Systems as per ISO 9001:2015 Standards.

Vigilance Department in NMDC has upgraded its process and systems to ISO 9001:2015 standards of Quality Management System (QMS). In this regard one agency, viz. M/s Vexil Business Process Services Private Limited, Delhi was engaged for audit, suggesting system improvement and assisting in obtaining certification. Accordingly, after the Surveillance Audit and necessary compliance on 7.01.2020, NMDC Vigilance Deptt. has been awarded ISO 9001:2015 standards of Quality Management System (QMS) which will remain valid up to 5th Feb, 2022.

During the year (April2019 - March 2020), 70 nos. of surprise checks, 82 nos. of regular inspections and 2 nos. of CTE type inspection was conducted by Vigilance Department. Complaints received were taken up for investigation and necessary suggestions for system improvement/ disciplinary action wherever required was recommended. During the period, 4 nos. of major penalties was imposed.

As part of 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. Efforts to encourage e-procurement, e-tender & e-auction are being made continuously.

NMDC has adopted implementation of 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 272 contracts with a value of Rs. 25,069.00 Crores. 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.

A Quarterly meeting of Vigilance Officers in NMDC is being conducted regularly and the last meeting was conducted on 4th & 5th, Feb 2020.


As per the Action Plan, surprise and regular checks were conducted besides study of files. Irregularities and omissions under the provisions of the rules are identified and improvements in the systems suggested wherever required. Based on the observations of Vigilance, recoveries from the contractors bills for not conforming to the contractual terms were suggested.

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

SMS based Information System for concreting work

During various site inspections, it was noticed that inadequate or lack of strict supervision resulted in poor quality of work on account of using less than stipulated reinforcement/ poor workmanship/ insufficient curing etc. In some cases, cubes were also not taken. To have a better control over quality of concreting work and as a system improvement an SMS system for sending information regarding start of concreting work at site has been introduced as the same was successfully implemented in Port Sector and DCI. Feasibility to use CCTV Cameras is also being explored.

Computer generated "Material Requisition Number" (MRN) for issue of Diesel for Hired Vehicles

Implementation of computerized MRN for issue of diesel for hired vehicles in existing Inventory Management System (IMS) done resulting in elimination of possible manipulations/overwriting in POL slips, manual intervention, excess drawal issues.

Reward Point Management System

The system was introduced in place of manually printed coupons which were given to contract labourers for purchase of food items through co-operative stores. This prevented manipulations in signature, duplication/fake coupons submission etc.

Visitor Management System (VMS)

At one of the projects was not in use and instead manual mode of gate pass was being issued. On vigilance intervention, usage of VMS software was restarted and issue was ensured through the software only and is operational from October, 2019 onwards.

Module for Hospital Management System (HMS)

To avoid issue of unaccounted medicines and irregularities in receipt & issue of medicines at Yashoda Aarogyavardhini Hospital at Donimalai, on intervention of Vigilance Department, new HMS has been ordered for the hospital on December, 2019.

Review of CCTV Cameras installed

CCTV cameras have been installed at various sensitive locations in offices/plant premises. Review of positions of the cameras time to time is done with a view to cover all sensitive areas and also to ensure working of CCTV cameras, a committee is constituted and made responsible for regular monitoring of the same.

Procurement of Medicines through Open Tender System

Procurement through Open Tender System was initiated in place of purchase from manufacturer/Authorised Dealer against hospital price list to fulfil the annual requirement for the Project hospitals. During the financial year (2018 - 19), against the estimated value of Rs. 128.42 lakhs, actual procurement was made for Rs. 92.28 lakhs resulting in a saving of Rs. 36.14 lakhs to the Corporation, and for the financial year (2019 -2020 till December) against the estimated value of Rs. 79.43 lakhs, actual procurement was made for Rs. 57.08 lakhs resulting in saving of Rs. 22.35 lakhs.

Engagement of hired vehicles

As suggested, tendering process for engagement of hired vehicles in compliance with CVC guidelines was adopted at Donimalai Project.

Action plan to improve INTEGRITY INDEX of the Organization

was prepared and various initiatives were already implemented like composition of Interview Board by including External Representative, policy review & changes at regular intervals like review of Fraud Prevention Policy, Banning of Business Policy etc.

Further, the following are in the final stages of implementation like a) Implementation of ERP, b) Audit of existing contract terms and conditions with a view to reduce vulnerability for arbitration, c) Policy changes based on exit interview etc.

Laboratory Information Management System

in Chemical Lab and Geology Department was implemented to improve transparency and avoid manual intervention while coding of samples being sent to Chemical Lab for analysis.

Improvement in Sampling activities at Loading Plant

System Improvement is done in the sampling activities at loading plant wherein announcing the party name in the PA System has been discontinued, and Digital Display Monitors have been installed at loading sites for knowing the exact status of wagon filling on continuous basis for representative sampling.

Calibration of Belt Scale Weighers

Out of Vigilance intervention, Calibration of belt scale weighers through external agencies on monthly basis was agreed (previously monthly external calibration was done for loading plant belt scales only). Accordingly work order has been issued for all the belt scales. Further, plant electrical department has purchased 06 Nos. of new belt scales for replacing the old belt scales for better accuracy and precision in weighment and procurement action has been taken up.

Recruitment and Promotion Policy of NMDC

Given the history of issues cropped up during past phases of recruitment and promotions and in view of recommendations given by Vigilance Department, NMDC Recruitment and Promotion Policy, 2018 and the rules framed there under in the Company was approved by the Competent Authority and put in place.

An amendment was also issued on 04.09.2019 to the NMDC Promotion Policy, 2018.

"NMDC Fraud Prevention Policy was proposed for implementation since the year 2013, but did not happen. Its been followed up vigorously and modified and made more robust and will be implemented shortly with Board approval.

Mine Transport Surveillance System (MTSS)

Has been implemented to monitor production and despatches of Iron Ore in Kumaraswamy and Donimalai Projects of NMDC.

Strengthening of Online Complaint Handling facility

Incorporating additional features to authenticate the complainant was done and is made available on NMDC website.

Installation of Weightometer

Suggestion for installation of weightometer on NMDC conveyor instead of the partys conveyor at one of the projects for making the process of weighment of material dispatched to parties/customers, more authentic.

Online Submission of Certificate

System for online submission of certificate regarding award of contract on nomination basis has been implemented.

Strengthening of Online Vigilance Clearance System

For further strengthening of Online Vigilance Clearance System certain modules were introduced like outside employment, separation from the Company etc., in addition to the existing modules such as Vigilance Clearance for HBA, Deputation, Superannuation etc.

Study of Estate Matters

Based on an elaborate and corrective study, Vigilance department had submitted suggestions for streamlining the Estate Matters so that valuable resources like Mining Areas, Potential Mines (Green field areas), Boundaries etc., are not embroiled in legal tangle. In view of the Vigilance recommendations Domain experts were appointed for dealing with matters pertaining to Estate in the organization and necessary action has been initiated in this regard.

Vigilance Awareness Week - 2019

To spread awareness among employees and general public, Vigilance Awareness Week was observed from 28th October to 2nd November, 2019 and various activities were organized. In order to create awareness among the employees, text messages through SMS were sent regarding vigilance awareness and to take Integrity Pledge online. A link was provided on NMDC website for taking online Integrity Pledge.

During the Vigilance Awareness Week, as desired by the Commission, competitions were conducted for school and college students by forming Integrity Club.

Competitions included Debate, Panel Discussions,

Poster Making, Elocution and Essay Writing on topics like Integrity- a way of life, Eradicate corruption- Build a New India, Moral Values and Ethics, Importance of morals and ethics in students etc. for inculcating greater awareness on prevention of corruption and anti-corruption measures.

Banners and Slogans related to Vigilance Awareness were displayed at various places in the School/College premises during the entire Week. Banners & Slogans were also displayed in prominent places in the organization for creating awareness. Apart from the above, competitions like Elocution and Quiz were held among the employees of NMDC.

The Week witnessed display of innovative ideas to spread awareness against corruption and promote integrity as a way of life. Events like CANDLE MARCH with a theme "Better to light a candle than curse the darkness" and "United against corruption", FORMATION OF CVC LOGO by School childrens, WALKATHON/AWARENESS WALK, SIGNATURE CAMPAIGN in support of theme "Integrity - A way of Life", MOTIVATIONAL VIDEO SHOW, FORMATION OF HUMAN CHAIN & RALLY, GROUP SONG against corruption, SKITS by School Children etc. in various places in states of Chhattisgarh, Madhya Pradesh, Karnataka, Telangana etc. were conducted by NMDC Projects/Offices. More than 10,000 school/college students and employees participated in the events conducted by NMDC during this week.

Bi-Annual Vigilance Conclave (5th to 7th Sep 2019)

A Three day Vigilance Conclave by Ministry of Steel and co-organized by NMDC Ltd. for officials of CPSEs under Ministry of Steel to spread awareness regarding the basic principles and procedures to be followed while taking important administrative/commercial decisions on procurements, by way of addressing the concerns in the areas relating to the Procurement, Tendering, Vigilance, Finance, Arbitration, Materials Management etc. Eminent speakers addressed around 150 delegates from various disciplines from CPSEs like SAIL, NMDC, MECON, RINL, MOIL, MSTC, FSNL and KIOCL. During the Vigilance Conclave deliberations were made on public procurement and works contracts, delays in finalization of bill payments, Overview of GEM and GFR, PIDPI/Complaint Handling mechanism, a Workshop on Resolving Disputes through Arbitration, a Session on Cyber Forensic Audit was also included.

Rotation of Working

Rotation of Officials working in sensitive posts is being done on regular basis as per CVC guidelines.

Uploading of Works awarded

Uploading of Works awarded on nomination basis, single tender basis, above 10 lakhs on NMDC Portal is done on monthly basis as per the CVC guidelines.

Workshop on Contracts & Arbitration (6th &7th Feb2020)

Workshop on Contracts & Arbitration (6th &7th Feb2020) was conducted by Vigilance department at Hyderabad wherein 70 executives from NMDC and 30 executives from few Hyderabad based PSUs like M/s BDL, M/s Midhani and M/s ECIL attended. The topics on basics of Contracts, Pre-tender stage, Post-tender stage, Tender and Tender Scrutiny Committee and Arbitration were covered during the workshop.


Pursuant to Section 134(5) of the Companies Act, 2013 with respect to Directors Responsibility Statement it is hereby confirmed that:-

(a) in the preparation of the annual accounts for the financial year ended 31.03.2020, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the Directors had 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 and loss of the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis; and

(e) the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


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 2020-21.


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


During the year under review 10 meetings of the Board were held. For further details, reference may kindly be made to Corporate Governance Section of the Annual Report.


A long-term Strategic Management Plan (SMP), Vision 2025 has been formulated which envisages iron ore production capacity of 67 MTPA by 2021-22. 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 Bailadila Region. Government of Chhattisgarh has notified the allocation of Dep-4 to NMDC in Sep19 for prospecting and mining operations.

The recent pandemic of Covid-19 & lockdowns across the country had impacted the demand of steel in short to medium term. Most of the downstream industry were closed or operated at low capacity. Under the impact of low demand & economic slow down across the globe, current operations & future plans of the various industry including iron & steel will be impacted severely. NMDC will also review its long plan based on the situation that arise after reaching the new normal. The National Steel Policy had envisased to increase per capita steel consumption in the country to a level of 158 Kg by FY31 from 61 Kg in 2015. India is on constant growth path in increasing per capita steel consumtion and has reached to 74.6 kg in 2019 vis-a-vis world average of 229 Kg per capita. Weathering the shocks of current pandemic, the Indian economy is now expected to step on the higher growth trajectory. The wide range of continuing infrastructure projects could support growth in steel demand to reach our envisased target of 158 Kg by FY31 in the long term.

In the financial year 2019-20, the Company has progressed significantly on various activities to enhance its production capacity and there is extensive progress in the construction of the fifth line in Screening Plant II is nearing completion, Rapid Wagon Loading System (RWLS-I) and New Screening Plant (SP-III) at BIOM Kirandul Complex are under construction. Work on the 5th line in Screening Plant Dep-5 & up-gradation of the downhill conveyor system in BIOM Bacheli Complex is likely to commence in 2020-21.

To augment the evacuation capacity from Bailadila sector, many projects & schemes are taken up like doubling of KK line, Rowghat-Jagdalpur line, Slurry Pipeline, etc. Doubling of KK line is being executed by Railways as a deposit work. Section I Jagdalpur to Silakjhori 45.5 km of railway line was completed & opened for traffic. 48% of the section II between Gidam to Silakjhori (52.73 Kms) is also completed. Overall progress is 60.5% & project is likely to be completed by FY23. The completion of this project will augment the evacuation capacity of Bailadila sector through 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, has also been initiated. Site Levelling work for Pellet Plant at Nagarnar & Ore processing plant at Bacheli has been almost completed. Other packages are also being awarded.

Further, NMDC has been allocated with 2 Coal Blocks- Tokisud North & Rohne, in Jharkhand. NMDC will venture various mode of operations & start the operation of Coal Mines in near future.

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 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 and will be implemented across all Mines in a phased manner. Implementation of ERP across all Mining Projects and Steel Plant is in final stage of completion.

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. NMDC has also completed study of Life Cycle Assessment of Iron Ore in FY20. This study will provide opportunity to acess impact on resources, energy and emissions, on iron ore production including overall carbon footprint for downstream industries.


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

i) Dr. Narendra K. Nanda, Director (Technical) 31.05.2019
ii) Dr. T.R.K. Rao, Director (Commercial) 31.05.2019
iii) Shri Sandeep Tula, Director (Personnel) 31.08.2019
iv) Shri Saraswati Prasad, Govt. Nominee Director 16.03.2020
v) CA. Arun Kumar Srivastava, Independent Director 12.11.2019
vi) Smt. Bhagwati Mahesh Baldewa, Independent Director 12.11.2019
vii) Shri Pradip Bhargava, Independent Director 26.11.2019
viii) Dr. Syamal Kumar Sarkar, Independent Director 26.11.2019
ix) Shri S.M. Nigam, Independent Director 26.11.2019

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

i) Shri Alok Kumar Mehta, Director (Commercial) 01.06.2019
ii) Shri Sumit Deb, Director (Personnel) 01.09.2019
iii) Shri D. Kuppuramu, Independent Director 06.11.2019
iv) Shri Vijoy Kumar Singh, Govt. Nominee Director 17.03.2020


Sl.No. Unit Statutory Auditors
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 Gurunanak Nagar Durg Chhatishgarh:- 491 001
3 Donimalai Complex M/s YOGANANDH & RAM LLP Chartered Accountants Third Floor, Shri Narasimha Nilaya No. 263/1, Second Cross, T. Mariappa Road Second Block, Jayanagar, Bengaluru Karnataka : 560 011
4 Panna Project M/s Amit OM & Co Chartered Accountants 2nd Floor, Dr. Bajaj Complex 17/12, Tashkhand Margh-SP Next to PVR Campus, Civil Line Allahabad-211 001(UP)

The Board places on record its deep appreciation for the valuable contribution made by Dr. Narendra K. Nanda,

Dr. T.R.K. Rao, Shri Sandeep Tula, Shri Saraswati Prasad, CA. Arun Kumar Srivsatava, Smt. Bhagwati Mahesh Baldewa, Shri Pradip Bhargava, Dr. Syamal Kumar Sarkar and Shri S.M. Nigam 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 2019-2020.

b. Cost Auditors

Tanmaya S Pradhan & Co

Cost Accountants

SWASTHAN Brooks Hill Sambalpur,

Odisha- 768001

c. Secretarial Auditors

M/s D. Hanumanta Raju & Co.

Company Secretaries B-13, F1, P.S. Nagar Vijaynagar Colony Hyderabad - 500 057


All the provisions of the RTI Act 2005 are being complied with by the Company. In order to ensure timely disposal of RTI applications, PlOs have been appointed in each unit 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 01.04.2019 to 31.03.2020 are as follows:

Month No of Applications received Information Provided Rejected
Pending (as on 01.04.2019) 04 - -
April, 2019 27 15 01
May, 2019 13 19 04
June, 2019 21 03 01
July, 2019 16 25 01
August, 2019 10 11 01
September, 2019 12 13 03
October, 2019 14 09 02
November, 2019 22 14 03
December, 2019 18 17 03
January, 2020 14 15 -
February, 2020 14 17 01
March, 2020 08 05 01
TOTAL (received during the year 2019-20) 189 163 21

05-Requests pending as on 31.03.2020 04-Applications have been transferred to other CPIOs




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

i) NMDC received the prestigious S&P PLATTS Global Metals Award 2019 under CSR category, organized by S&P PLATTS at London;

ii) NMDC received HSE (Health, Safety & Environment) Excellence Award 2019 in Mining Category during HSE Summit, organized by Synnex Group, Mumbai ;

iii) NMDC received "Innovative Stakeholders Interface" Award under SCOPE Corporate Excellence Awards 2019, organized by SCOPE, New Delhi ;

iv) Honble Vice President of India Shri M. Venkaiah Naidu presented NMDC with the "Best Supporting Organization to Quality Circle Movement" award at the 33rd Annual Chapter Convention organized by Quality Circle Forum of India (QCFI), Hyderabad. NMDC bagged 24 gold and one silver award;

v) NMDC received the "Rajabhasha Kirti Awards" second prize amongst Undertakings in C region on the occasion of Hindi day ;

vi) NMDC received the Rajbhasha Shield (First Prize) and also received First Prize for Hindi House Journal of NMDC "Khanij Bharati" from Town Official Implementation committee (Undertakings), Hyderabad/Secunderabad;

vii) NMDC received an award for innovative exhibiting Pavillion under large stall category in International Mining Equipment, Mineral & Metal Exhibition (IME) 2019 at Kolkata ;

viii) Kumaraswamy Iron Ore Mine (KIOM) bagged "First Prize" in the State level Overall Performance of Zone-IV in the Mine Safety Observance Week-2019 at Chitradurga of Karnataka;

ix) Kumaraswamy Iron Ore Mine, has bagged 18th Annual Greentech Safety Winner Award at New Delhi;

x) NMDC bagged five awards at the 41st All India Public Relations Conference organized by Public Relations Society of India (PRSI) at Hyderabad;

xi) META SIP QC team of R&D Centre received "PAR EXCELLENCE AWARD" in NCQC-2019 at Varanasi ;

xii) Shri N. Baijendra Kumar, IAS, CMD, NMDC was presented with Business Leadership Award 2020 and NMDC, the Best Performer in Financial, CSR in Infrastructure Development from Shri Arjun Ram Meghwal, Union Minister State, Ministry of Parliamentary Affairs, Government of India during Seventh edition of the Governance Now PSU Awards at New Delhi;

xiii) NMDC bagged 8 Corporate communication Excellence Awards 2020 during 14th global communication conclave by Public Relations Council of India (PRCI) at Bangalore.


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. However, no complaint has been received by the Company under internal Whistle Blower Mechanism for the year under review. In order to spread awareness about Whistle Blower Policy, regular awareness programmes were conducted including the various programmes conducted during the Vigilance Awareness Week 2019 at Projects and Head Office.




The Department of Investment and Public Asset Management ("DIPAM"), along with Nippon Life India Asset Management Limited (formerly Reliance Nippon Life Asset Management Limited), as the asset management company of the Scheme ("AMC"), has formulated a sixth Further Fund Offer ("FFO 6") of the Scheme, which has been offered to the public for subscription in accordance with the SEBI (Mutual Funds) Regulations, 1996 and other applicable laws, rules and regulations, as framed from time to time.

In regard to the FFO 6 and as informed by Ministry of Steel, Govt. of India, the President of India, acting through the Ministry of Steel, Government of India, has sold 8,05,82,119 (2.63%) equity shares of NMDC to the AMC @ Rs.114.72 per share and raised an aggregate net amount of Rs. 924,43,96,643.07 (Rs. 924. 44 crores). The date of disinvestment is 3rd February 2020. No part of the disinvestment proceeds of Government of India in the equity shares of NMDC accrued to the Company.

Pre and Post Shareholding of the Promoter:

Promoter holding Prior to disinvestment No. of Shares disinvested After disinvestment Value
No. of Shares 221,30,35,712 8,05,82,119 213,24,53,593 Rs. 924,43,96,643.07 (8,05,82,119 equity shares for Rs. 114.72 per share of face value of Rs. 1 each)
% 72.28 2.63 69.65


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


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

Risk Management Committee comprising of Functional Directors (excluding CMD). The Company as a part of its current Risk Management Policy has identified top 15 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.


The Board of Directors has approved Dividend Distribution Policy which has been uploaded in the website of the company under the link https://www. nmdc.co.in/Docs/Dividend%20Distribution%20 Policy.pdf.


NMDC is embarking on a digital transformation journey which is in line with the GOI Digital India Initiative. As part of this Journey, SAP has been selected as the ERP Tool that will form the backbone for NMDCs business operations. This project has been christened as "Project Kalpataru" and will address NMDCs core requirement of having a strong ERP backbone by fully integrating the business solutions encompassing all the functions of the organization. This platform apart from improving productivity and operational efficiency will also enable the organization to use solutions like Mobility and Analytics to provide deeper insights into the business operations and equip NMDC to address the business challenges in a proactive manner.

As part of the Project implementation, As-Is Study covering all project locations was conducted, Business Blueprint has been finalized taking into consideration the leading practices that are followed in India and Globally to bring "One NMDC" way of operations. Go-Live is planned in Nov 2020.

Other Digital Initiatives like implementation of Fleet Management System, GIS Solution which will be integrated with ERP have also been initiated.


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



Report on Corporate Governance is at Annexure-III


The extract of Annual Return as provided under SubSection (3) of Section 92 read with Rule 12(1) of the Companies (Management & Administration) Rules, 2014 is at Annexure-IV. The extract is also placed on the website of the company under the link https://www. nmdc.co.in/Financial%20 Information/Default.aspx


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


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-VI.


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



Report in terms of the Companies (Corporate Social Responsibility Policy) Rules, 2014 is at Annexure-IX.


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-X.


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 our long-term success is dependant on our domestic customer relationship and responsiveness.

We will do everything possible to provide our customers better, timely and value added services.

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

Place : Hyderabad N. BAIJENDRA KUMAR, IAS
Date : 30th July, 2020 Chairman-cum-Managing Director