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Industry :  Mining / Minerals / Metals
BSE Code
ISIN Demat
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As on: May 19, 2022 02:53 PM

Dear Members,

Your Directors are pleased to present the 63rd Annual Report on the performance of your Company, together with the Audit Report and Financial Statements for the year ended 31st March 2021 and the Report thereon by the Comptroller and Auditor General of India.


During the year under review, the Company has recorded turnover of Rs.15,370 crores, achieved Profit Before Tax (PBT) of Rs. 8,901 crores and achieved Profit after Tax (PAT) of Rs.6,253 crores.

The major performance highlights are summarized as under:-

The company achieved production of 34.15 MT and sales of 33.25 MT.

Turnover for the year under review was Rs.15,370 crores as against Rs. 11,699 crores in the previous financial year 2019-2020 – an increase of 31.38 %. The Company achieved a record turnover for the

4th Quarter and also in Annual Turnover, both are highest since inception.

Profit before tax (PBT) from continuing operations was Rs. 8,902 crores compared to Rs. 6,123 crores in the previous financial year 2019-2020 – an increase of 45.37 %.

Profit after tax (PAT) was Rs. 6,253 crores compared to Rs. 3,610 crores in the previous financial year 2019-20 – an increase of 73.21 %.

NMDC recorded Profit before Tax (PBT) of Rs 4,266 crore and Profit after Tax (PAT) of Rs 2,838 crore in the 4th quarter of FY21, a 188% & 708% respective growth over the 4th quarter of CPLY. The Company has registered highest ever PBT & PAT both in any quarter since inception.

Net worth of the Company stood at Rs.29,756 crores as on 31.03.2021 – 8.07 % higher than the previous financial year 2019-2020 to Rs. 27,534 crore.

The Company declared an Interim Dividend of Rs.7.76 per share for FY 2020-2021.

Capital expenditure of Rs. 2,176.15 crore has been incurred during the year under review.

Completed Buyback of 13,12,43,809 equity shares of Re 1/- each @ Rs. 105/- per share.

The Board of Directors at its 539th meeting held on 13.07.2021 inter alia, approved the Scheme of Arrangement between the Company and NMDC Steel Limited and their respective creditors and shareholders, entailing inter-alia demerger of NISP.

Donimalai Iron Ore Mine of NMDC Ltd. has resumed mining operations since 18.02.2021.

Ministry of Steel, Government of India, has sold 21,95,02,378 (7.49%) equity shares @ Rs.165/- per share and raised an aggregate net amount of Rs. 3651.37 crores.

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

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

A 100% subsidiary company by the name NMDC Steel Ltd. having its registered office at Nagarnar, CG has been incorporated on 02.01.2015 as a Private Limited Company. The transfer of NISP shall be by way of a scheme of demerger into the wholly owned subsidiary company as incorporated by the name NMDC Steel Ltd.

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

Rationale for the Scheme of Arrangement

Government of India has charted a road map to augment India’s steel production to 300 MTPA by 2030. To fulfill this vision, green-field steel plants are being promoted through Special Purpose Vehicles ("SPVs") in mineral rich states of Chhattisgarh, Jharkhand, Karnataka and Odisha. It has been envisaged that the SPV being set up at these states would act as a facilitator and developer for the steel plant. It would acquire the required land, obtain statutory clearances for setting up the plant, organize water & power allocation for the site, along with dedicated raw material supply agreement. On completion of the above activities, the SPV would invite for suitable investor/s, who would construct, develop and operate the steel plant.

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

The decision to construct the NISP was taken keeping in view with linkage with iron ore reserves and availability of investable surplus. NISP has progressed significantly further than the other Steel SPVs. The only difference is that NISP is being developed and constructed within NMDC Limited as opposed to being developed in an SPV. Also, NMDC Vision 2025, whilst mentioning forward integration has specifically stated that its role would be that of a developer for steel plants and at suitable time invite investors to commission and operate the plants.

NMDC is therefore considering proposed scheme to add more value to Company’s stakeholders by demerging NISP into separate company and subsequently inviting investor.

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

Accordingly, to achieve the above objective, the Board of Directors of the NMDC Limited have decided to make requisite applications and/or petitions before the Ministry of Corporate Affairs, Government of India under Sections 230 to 232 of the 2013 Act (hereinafter defined) and other applicable provisions for the sanction of the Scheme. The broad contours of the scheme of demerger are briefly outlined as under:-

Appointed Date: April 01, 2021 or any such other date as may be decided by the Ministry of Corporate Affairs, Government of India ("MCA");

Effective Date: Date on which the certified copies of the order of the MCA sanctioning the Scheme are filed with the concerned Registrar of Companies;

Scheme: Transfer of Demerged Undertaking:

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

Scheme: Transfer of Assets and Liabilities: All assets and liabilities of the Demerged Undertaking, except certain assets/liabilities as specified under the Scheme, will be transferred to NSL at book value appearing in accounts of NMDC on the Appointed Date;

Consideration: As a consideration for transfer of Demerged Undertaking to NSL, NSL shall, without any further application, act, instrument or deed, issue and allot to all the equity shareholders of NMDC, whose names appear in the register of members as on the Record Date (defined below), 1

(One) equity share of NSL of INR 10 each fully paid-up for every 1 (One) equity shares held in NMDC of INR 1 each fully paid-up. No cash consideration will be paid to NMDC on account of the transfer of Demerged Undertaking and related assets / liabilities. Accordingly, demerger of the Demerged Undertaking from NMDC into NSL will be tax neutral on NMDC as NMDC will not receive any cash consideration;

Record Date: Date to be fixed by the Board of Directors of NSL and NMDC for determining the shareholders of the NMDC to whom fully paid up equity shares of the NSL will be issued pursuant to the Scheme;

Increase in Authorized Share Capital: Upon the Scheme becoming effective, the authorized share capital of NSL will automatically stand increased to INR 30,00,00,00,000 (Indian Rupees Three Thousand Crores);

Cancellation of existing shares of NSL: All the existing shares of NSL, currently held by NMDC, shall stand cancelled;

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

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

Employees: All staff / workmen / employees engaged or employed in relation to Demerged Undertaking as identified by the board of NMDC shall be deemed to have become staff / workmen / employees of NSL from the Appointed Date;

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

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

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

The Scheme of Arragement has been filed with National Stock Exchange, Bombay Stock Exchange and Calcutta Stock Exchange.

(B) Granting extension of ML no.2396 in respect of Donimalai for 20 years from 04.11.2018 to 03.11.2038 as per the provision of the Mineral (Mining by Government Company) Rules, 2015

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 NMDC’s 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 Hon’ble 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 Hon’ble High Court of Karnataka on 26-02-2019, reserved the matter for judgment. The Division Bench of the Hon’ble 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.CI 78 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 & Hon’ble 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 Hon’ble 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 Hon’ble 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 Hon’ble 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, Hon’ble 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 Hon’ble 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 Hon’ble Mines Tribunal. Hon’ble 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.

Present Status:

The Donimalai Iron Ore Mines (ML-2396) resumed the mining operations on 18.02.2021 based on the order dated 15.02.2021 of Department of Mines & Geology, Govt. of Karnataka which was issued subsequent to the amendments dated 27.09.2019 to the Mineral (Mining by Government Company) Rule , 2015.

Subsequently, Govt. of India has amended the MMDR Act vide Notification dated 28.03.2021 and as per 5th schedule under Section 21 the additional amount on grant or extension of Mining Lease payable by NMDC is "Equivalent to one hundred and fifty percent of the royalty payable" which amounts to 22.5% of additional royalty to be paid and the same has been complied.

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

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

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

(c) When the matter was listed for hearing on 19.02.2020, the Hon’ble Court after hearing both counsels directed as under:-

As prayed, list both the cases on 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 12th 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 before Hon’ble Mines Tribunal, Ministry of Mines, Govt. of India, New Delhi on 24.01.2020. The following prayers have been made in the revision application –

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

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

Present Status:

NMDC is pursuing the matter.

Impact of Covid-19 Pandemic

(a) Production

The production performance of NMDC Ltd. during Q1 of FY 2020-21 (April-2020 to June-2020) is impacted by 18.23 lakh tones due to Covid-19 restriction as compared to the same period in last year (FY 19-20)

(b) Commercial

The GOI had enforced a countrywide lockdown to contain the spread of COVID-19 which led to the shut-down of economic activities. Impact of this lockdown was primarily seen during the Q1 of FY 20-21. Despite relaxation extended to iron and steel sector under the Essential Services Act, most of the steel makers undertook production at reduced capacities and secondary sector were completely shut-down. This led to a drastic reduction of iron ore demand and accordingly NMDC sales got adversely affected to the tune of 26% (23.94 LT) over Q1 of FY 19-20. Despite the challenges, NMDC’s iron ore sales recovered in the subsequent quarters and registered an overall growth of 5% in FY 20-21 compared to FY 19-20.

(c) Finance

The COVID-19 had a marginal impact on the operations of the company due to the luck down in the country during the period from April 2020 to June 2020. There has been a loss of around 18.23 LT of production and 23.94 LT of Sales of Iron Ore during Financial Year 2020-21 (from April 2020 to June 2020). This has resulted in a loss in sales revenue of around Rs.737 crores and PBT of Rs.317 crores.

(d) Steps taken to fight Covid

1. Preventive Measures at Workplace

To ensure the safety and well-being of employees and their families of NMDC, COVID Guidelines have been issued and NMDC is undertaking the following preventive measures at workplace -

Thermal Screening: NMDC has installed thermal scanners at entry points to read the temperature of employees and has also distributed masks and sanitizers to employees and security personnel.

Mist Fog Sanitation: NMDC has deployed the latest technology to ensure safety in the office premises. The corporate office is sanitized twice a day using the mist fog disinfectant technique.

Work from Home Provision: Consultants, Trainees, Pregnant Women and Employees on Contract have been asked to work from home for the interim.

50% Workforce Policy: NMDC had a 50% workforce policy for its regular employees who alternate between working from home and office. The timings are staggered to accommodate social distancing.

2. Contribution to the Healthcare Facilities: Supplying Oxygen

Public Service is our duty and amidst the severe second wave of the pandemic, we are dedicated to assist the administration in fighting the resurgence of COVID-19. During the third week of April, 2021, NMDC Integrated Steel Plant handed over 270 large oxygen cylinders to the Bastar District Administration. The 270 cylinders supplied by NMDC have a capacity of 46.7 litres each which makes this batch equivalent to around 850 oxygen cylinders of normal use.

Earlier to this, NMDC contributed Rs.60 lakh to COVID-19 designated district hospital of Ballari, Karnataka which was spent on procuring beds and oxygen line extension.

3. Intensive Vaccination Drives

The road to recovery has been and will be built on the resistance and resilience of the frontline workers who refuse to lose heart even at the peak of the crisis. NMDC is happy to report that all our healthcare workers across project sites have been successfully vaccinated.

We are now conducting intensive vaccination drives to administer the COVID-19 vaccine to all our eligible employees, as per the guidelines of the Ministry of Health and Family Welfare.

4. Social Media COVID Awareness Campaigns

To ensure a streamlined flow of COVID communication between NMDC and its internal and external stakeholders, we are running the following campaigns on our Social Media channels –

#UniteToFightCorona: In line with the campaign to fight COVID-19, NMDC is raising awareness on the ‘Do’s and Dont’s’ during the second wave of the pandemic. In one of the posts, NMDC informed its stakeholders about the importance of proning for self-care with a detailed guide for the same.

Busting Myths: NMDC is taking measures to fight misinformation regarding the second wave of COVID-19 by urging users to trust authentic sources for news about the virus.

#TikaUtsav: NMDC encouraged all eligible citizens to get vaccinated and promoted the Prime Minister’s call of "Dawaibhi, Kadaibhi" through the TikaUtsav campaign on our social media.

5. COVID awareness through display of posters and hoardings

To create awareness on COVID-19, among external and internal stakeholders of NMDC, Posters and hoardings are displayed at inside and outside premises of NMDC with various captions

Apart from above measures, NMDC strengthened its project hospitals by providing more Oxymeters, Ventilators, PPE Kits, COVID-test kits etc.



Product 2019-2020 2020-2021 Percentage of change
Iron Ore (Million tonnes) 31.49 34.15 (+) 8.45 %
Diamond (Carats) 28,537 13,681 (-) 52.06 %
Pellets (Tonnes) 1,10,481 83,751 (-) 24.19 %



Physical (in Million Tones) Achievement

% of change

Value (Rs. in crore) Achievement

% of change
2019-20 2020-21 2019-20 2020-21
Domestic 29.07 30.96 (+) 6.50 % 9,995.82 13,484.01 (+) 34.90 %
Export through MMTC 2.44 2.29 (-) 6.15 % 1,573.18 1,749.69 (+) 11.22 %
Total Sales 31.51 33.25 (+) 5.52 % 11,569.00 15,233.70 (+) 31.68 %

Other Sales


Products 2019-20 2020-21
a) Diamond
Sales (carats) 33,723 22,249
Value (Rs. in crore) 34.29 21.10
b) Sponge Iron
Sales (tonnes) 1,943.88 -
Value (Rs. in crore) 4.39 -
c) Wind Power
Sales (lakh units) 1.59 1.52
Value (Rs. in crore) 5.39 5.17
d) Pellet (In WMT)
Sales (In WMT) 85,793 92,773
Value (Rs. in crore) 55.55 73.50


Parameter Achievement Percentage of change
2019-2020 2020-2021
Profit Before Tax (PBT) (Rs. in crore) 6,123 8,901 (+) 45.37 %
Profit After Tax (PAT) (Rs. in crore) 3,610 6,253 (+) 73.21 %
Net Worth (Rs. in crore) 27,534 29,756 (+) 8.07 %
Book value per share (Rs.) 89.92 101.53 (+) 12.91 %
Earnings per Share (Rs.) 11.79 20.62 (*) (+) 74.89 %

(*) Adjusted on account of buyback)

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.8901 crores on a turnover of Rs.15,370 crores in comparison with previous year’s achievement of Rs.6,123 crores and Rs.11,699 crores respectively.

The Company has declared Interim Dividend for FY 2020-21 @ Rs. 7.76 per share in the month of March 2021 involving an outgo of Rs.2,274.15 crores. The share of Government with equity stake of 68.29 % is Rs.1,553 crores.


The company proposed to transfer Rs.3,900 crore from net profit to General Reserve.



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


During the year under review, the company issued Non-Convertible Debentures (NCDs) having a tenure of five years for Rs. 523.80 Crore in Aug.2020 with coupon rate of @ 7.3% p.a. on private placement basis.


Necessary disclosure in respect of Internal Control

Systems and their adequacy has been made in Annexure-C to the Independent Auditors’ Report dated 22nd June, 2021 which forms part of the Annual Report.


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


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


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


The Audit Report for both Standalone and Consolidated Financial Statements for the year 2020-21 is unmodified and 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 2020-21, the details of Projects undertaken by NMDC are summarized as under:

A. Ongoing Projects:

1. Screening Plant III Kirandul Complex

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

Processing Plant at Bacheli and 2.0 MTPA

Pellet Plant at Nagarnar

3. Doubling of KK line between Kirandul & Jagdalpur

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

B. Projects in pipeline:

1. Screening Plant II- Donimalai Complex

C. Project / Schemes Commissioned

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

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, Construction Power and MRSS packages 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 was commissioned in Jan’2021 and PG tests were also completed.

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.

Projects / Schemes to enhance evacuation capacity

To augment the evacuation capacity from Bailadila sector, many projects & schemes are taken up like doubling of KK line. Doubling of KK line between Kirandul & Jagdalpur (150.462 kms) is being executed by Railways as a deposit work & funded by NMDC and is in advance stage. 45.50 kms line between Jagdalpur & Silakjhori and 7.32 kms line between Dantewada & Gidam were commissioned during FY 2017-18 and opened to traffic. 9.2 kms line between Silakjhori and Kumharsodra was commissioned during FY 2018-19 and 12.2 kms line between Kumharsodra and Kaklur was commissioned during FY 2020-2021 and opened to traffic. 11 kms line between

Gidam and Dabpal is completed during March 2021 and Inspection of Commissioner of Railway Safety (CRS) is awaited for commissioning. Works are in progress in other reaches. Doubling between Dabpal Kawargaon Kaklur (21 kms) & Dantewada and Kamlur (12.35 kms) are expected completion in FY 2021-22. Doubling between Kirandul - Bacheli Bhansi (20.13 kms) & between Bhansi and Kamlur (12.43 kms) are expected completion in FY 2022-23.

NMDC has taken up an ambitious project of laying Slurry pipeline from Bailadila to Nagarnar and further up to Visakhapatnam. The Capacity of the line is 15 MTPA and this will be associated with facilities like beneficiation plants at Kirandul & Bacheli, pellet plant at Nagarnar. The slurry pipeline between Bailadila to Nagarnar is being executed by NMDC. Laying of slurry pipeline between Bacheli and Nagarnar is taken up in Phase-1 implementation. A GEoI is issued for identifying the partners for execution of Slurry Pipeline from Nagarnar to Vizag on JV mode.

Regarding Right of Use (ROU) for laying the Slurry pipe line between Bacheli & Nagarnar, Gazette notification under Section 6(1) of P & MP Act, 1962 was published on 04.12.2020.

Site development works of Ore Processing Plant (OPP) at Bacheli and Pellet Plant at Nagarnar are completed along with soil investigation studies. Works orders are already issued for packages like Main Receiving Substation, Slurry Pumping system, Slurry pipeline laying and Enabling works of Ore Processing Plant and work is in progress at site. Tendering process for technology packages is in progress for OPP at Bacheli, Pellet plant at Nagarnar.

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: The progress of steel plant project at Nagarnar is inching towards its construction completion stage and reaching its commissioning phase.

The power requirement for operation of the plant is already made available at various sub-stations to ensure its supply to different facilities / units. Railway connectivity to the plant to take care of initial inward & outward movement of materials and water pipelines & pumping arrangement from intake point to plant for operational requirement is also ready for use.

Project has obtained statutory clearances which includes Consent To Operate (CTO), Factory licences for different packages, IBR approvals for Power & Blowing Stations and Coke Oven Plant, Water drawal permission, Explosive permission, etc. as a preparedness for commissioning of steel plant.

Conducting cold trail, Preliminary Acceptance Test, etc. of individual as well as integrated test of equipment under various Technological packages are in progress as pre-commissioning activities.

The capex achievement against steel plant during the FY 2020-21 is Rs.1625 crore and expenditure incurred so far is about Rs.18,536 crore.

Initiatives for Technological upgradation

1. Development of Vision Enhancement System for Foggy weather for Bailadila Complex (In Collaboration with CSIR-CIMFR)

To overcome the production loss due to foggy weather in the mine where visibility will be around 1 to 2 meters during monsoon season, NMDC and CSIR- CIMFR has made an agreement on 22.07.2019 for R&D collaborative project

"Development of Vision Enhancement System for Foggy Weather" at BIOM Bacheli Complex Deposit 5 with total project cost of Rs.509.75 Lakhs of which Rs 230.51 lakhs was funded by Ministry of Electronics and Information Technology (MeitY) for technology development.

"Vision Enhancement System" is an intelligent driver assistance technique for effective visualization of haul road i.e. dump truck transportation path in the mine as well as loading / unloading areas during foggy weather .This system uses advanced analytics, artificial intelligence and image processing techniques for real-time video processing, surveillance of HEMM, object detection, proximity warning using RADAR and GNSS. The system helps in improving production, productivity and safety in opencast mines. Trials are being done in two dumpers after installation for operation during foggy weather.

2. Fleet Management System for BIOM Bacheli & Kirandul Complex

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

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

3. 3D Volumetric laser scanner system for BIOM Bacheli, Kirandul Complex and DIOM Donimalai.

As part of digital transformation in mining sector and to increase the efficiency, productivity, storage of historic data in easily retrievable format, 3D volumetric scanner system is proposed to be introduced in all NMDC mines to measure the volume of iron ore stockpiles for effective stockpile management with remote monitoring and data processing services.

3D volumetric scanner system uses laser scanning to create 3D surface model of mining area by delivering millions of accurate 3D points (mm level accuracy) with high density. Precision targeting is obtained on account of very low beam divergence of laser. 3D scanner can be used for efficient open pit and topographical surveys, measuring all visible surfaces irrespective of texture, granularity, or color and for displacement of mining benches & waste dump. Accurate measurement can be obtained even in dusty environment.

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

In order to reduce customer dissatisfaction, eliminate human errors in collection, preparation and analysis of samples, transparency & accuracy in quality analysis, digitalization, storage and retrieval of large records along with integration in ERP (SAP HANA) and also as part of overall ramp up in production & dispatch of iron ore the proposal has been taken up and is in the process of implementation at all iron ore mines of NMDC. The salient features of the system are:-

Robot based fully automated sample preparation & Analysis lab with no manual interference for ore Quality analysis.

Falling stream sampling system with linear falling stream sampler.

Infrared fully automated drying oven.

Fully automated WD XRF analyzer..

Sample through put per day 120 (three shifts)

High accuracy fused bead analysis.

Fully Expandable / Upgradable laboratory based on requirements..

Control system with PLC, HMI and SAP integration.

Redundant Servers, PLC, SCADA, networking and power supply with 150 Hours of remote support per year.

Moisture Analyzer for all samples.

Dust extraction system.

Bagging machine with Bar Code Printer.

This proposal is one of kind in its category for implementation in India.

5. Up gradation of PLC to Process Control System for Crushing Plant & Loading Plant of DIOM, Donimalai

As part of digital transformation in mining sector and to increase the efficiency, productivity, storage of historic data in easily retrievable format, improve reliability of operation, having diagnostics, centralized control and integration with other plants & ERP (SAP HANA) PLC is being up graded to process control / process automation / process expert system. The proposed system has the following main features and benefits:-

It is a complete solution for automation and control, power monitoring, motor control, drives as well as a common operating and monitoring platform to monitor and control the process and support energy efficiency with high availability, Hot-Standby, Parallel redundant control system, 24 x 7 online support and wireless backup.

The centralized control system & room to monitor the operations of Crushing, Screening & Loading plants. .

Close monitoring of the status & diagnostics of various equipment including safety and Operational interlocks.

Integration of existing equipment/ instruments.

"Energy Management System" (EMS) for continuous monitoring of electrical parameters and management.

"Asset Management System" (AMS) for monitoring the major components of system.

Detailed Management Information System (MIS) reports like plant availability, effective utilization, Target Vs Achievement, energy consumption and break down analysis achievable through dash board type of reporting.

6. Installation of 4 x 25kwp grid Interactive roof top solar power plants for Kailash Nagar Barrack of CISF, Camp office Dep-11/C, Time office Dep-11B & Service center Dep-14 of BIOM, Kirandul Complex.

Harnessing of Non-Polluting renewable energy resources to control green house gases is receiving importance from Government of India. The solar mission , which is part of the National Action Plan on Climate change has been set up to promote the development and use of solar energy for power generation and other uses with the ultimate objective of making solar energy competitive with fossil based energy options.

As part of this green initiative, an action has been taken by NMDC for increasing the consumption of renewable power in different work areas of the mine. As such office buildings in the mine have been proposed with grid interactive hybrid solar roof top power plants with monitoring stations which are in the final stages of award for implementation.

OVERSEAS PROJECTS / NMDC GLOBAL Australia Legacy Iron Ore, Perth, Australia

Legacy Iron Ore Ltd is an ASX listed entity based in Perth, Australia with a focus on Gold, Iron ore and base metals.

NMDC has 90.05% equity in the company. Legacy is holding 21 exploration tenements in Gold, Iron Ore, 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 & mining study is being carried out mainly in Gold Targets (Mt. Celia) to get the confidence & complete the feasibility study.

Legacy’s major gold focus lies in the South Laverton region ((Mt. Celia, Yilgangi, Sunrise Bore) and base metals focus lies in the Koongie Park region of Western Australia. South Leverton’s Mt Celia Gold project has identified two gold occurrences namely Kangaroo Bore and Blue Peter deposits. Recently completed resource estimation (June’21) at Kangaroo Bore, Blue Peter & Margot Finds deposits based on additional drilling, have resulted in significant increase of total indicated & inferred resources. Revised total gold resource is 6.96 mn tonnes @ 1.38 g/tonne for 309,000 Oz of metal, out of which 155,200 Oz are indicated resource metal (50%).

The majority of the indicated resource is within the upper 150 m & therefore considered acceptable to open pit mining. This estimate is based on drilling completed up to early 2021. Additional drilling has been carried out since this period. In FY’2021, legacy has completed 7272 mts of drilling in Gold/ Nickle tenements. Legacy has raised a capital of 3.15 mn AUD through sale of shares @ 2 cents per share ( a total of 157,500,000 fully paid ordinary shares to numerous sophisticated and exempt investors). NMDC stake in Legacy has reduced from 92.32 to 90.05 % after this private placement.

The Company is working towards development of the Mt Celia projects including the Kangaroo Bore and Blue Peter deposits, and for further pre-feasibility work.

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 1.38 MT tons in FY’21 (Both low ash & high ash). Mining was hampered from 1st May’2020 to 17th Aug’2020 (3.5 months) due to Covid lockdown.

Exploring opportunities in Battery Raw materials

NMDC has reviewed its International Strategy and identified Battery Raw Materials as one of the prospective areas for exploring opportunities in addition to Gold.

Leases for minerals In Chhattisgarh lron Ore

Extension of Bailadila lron Ore Mining Leases:

Your Company has got extension for the five lron Ore Mining leases a 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:-

Sl. No. Name of Mining Lease Area in Ha Date of grant of extension of ML Date of execution of lease ML Validity FC validity (co-terminus with lease period)
1 Bailadila Deposit-11 (A,B & C) 874.924 03/05/2018 14/12/2018 10/09/2037 10/09/2037
2 Bailadila Deposit-14 322.368 17/12/2019 10/01/2020 11/09/2035 11/09/2035
3 Bailadila Deposit-14NMZ 506.742 17/12/2019 10/01/2020 06/12/2035 06/12/2035
4 Bailadila Deposit-5 540.05 17/12/2019 10/01/2020 10/09/2035 10/09/2035
5 Bailadila Deposit-10 309.340 17/12/2019 10/01/2020 10/09/2035 10/09/2035

Extension of Mining Leases in Karnataka: Extension of Mining Lease of Donimalai Iron Ore Mine (ML No. 2396) for 20 years from 04.11.2018 to 03.11.2038:

While renewing the Mining Lease of Donimalai Iron Ore Mine (DIOM), GoK had imposed a condition to pay a premium of 80% on the average sale value in addition to existing statutory payments which is not as per the provisions of the MMDR Act -1957 and Mineral (Mining by Government Company) Rules, 2015. NMDC requested GoK to reconsider its decision.

Since there was no positive response GoK, NMDC suspended its operations from 4th November 2018 and moved to the Hon’ble High Court of Karnataka praying for a suitable direction in the matter. The Hon’ble High Court of Karnataka in its judgement dated 10th July 2019 has passed an order setting aside the condition imposed for levying 80 % premium. On the basis of the judgement, NMDC has requested the State Govt. to consider the execution of Lease Deed of Donimalai Mine. The GoK issued an Order dated 17.08.2019 withdrawing the approval for extension of the Donimalai mining lease and with a direction to the Director of DMG to auction the said block. In this regard, the Company on 19.08.2019 filed ‘Revision application’ before The Hon’ble Mines Tribunal, Government of India. Meanwhile, the State Government issued a notification dated 20.08 .2019 inviting tender for auction of the Donimalai Mining block. 0n 21.08.2019 Hon’ble Mines Tribunal heard the submissions and stayed the Order dated 17.08.2019 issued by the Government of Karnataka withdrawing the extension of lease and any consequent action thereon until the next date of hearing.

On 28.08.2020, a high-level meeting was conducted at Bengaluru between the Hon’ble Chief Minister of Karnataka and Union Minister of Coal & Mines, where CMD NMDC Ltd. and senior officers of Centre and State Governments are also attended. In the meeting it was decided to extend the Mining Lease of Donimalai Iron Ore Mine with a temporary premium of 22.5 % of the average sale value published by IBM. It was also decided in the meeting that Ministry of Mines, GoI will review the "Mineral (Mining by Government Company) Rules, 2015" for suitable amendments to decide the additional amount payable apart from the royalty / other statutory levies in respect of Mining Leases of Government Companies granted prior to 12.01.2015 and a High-Level Committee shall be constituted to examine the modalities in this respect. Subsequently, on 29.11.2020, Ministry of Mines, Government of India given its approval for extension of Mining Lease of Donimalai Iron Ore Mine in terms of the proceeding of the meeting held on 28/08/2020. On 01.12.2020, Government of Karnataka, permitted NMDC to commence mining operations, as an interim measure with immediate effect at Donimalai Iron Ore Mine for which NMDC shall unconditionally pay to the State Government 22.5% of the IBM Sale Price (for Karnataka) apart from the Royalty and other statutory levies.

On 17.12.2020, Govt. of Karnataka ordered for execution of conditional mining lease deed of Donimalai Iron Ore Mine with effect from 03.11.2018 for a period of 04 years or till the implementation of High-Level Committee report, whichever is earlier.

Subsequently on representation of NMDC Ltd., on 10.02.2021 Govt. of Karnataka issued a modified order for execution of conditional mining lease deed for a period of 20 years i.e., up-to 03.11.2038 subject to the conditions in the Govt. Order dated: 01.12.2020 and 17.12.2020. NMDC executed the conditional Mining Lease deed on 12.02.2021 and same has been registered on 16.02.2021.

Donimalai Iron Ore Mine of NMDC Ltd. has resumed mining operations since 18.02.2021. Further, it may be noted that Govt. of India has amended the MMDR Act – 1957 on 28.03.2021 and as per amended provisions all such Government companies or corporations whose mining lease has been extended after the commencement of the MMDR Amendment Act, 2015, shall pay such additional amount as specified in the Fifth Schedule of the Act for the mineral produced after the commencement of the MMDR Amendment Act, 2021. For such Mining Leases of Iron Ore an additional amount equivalent to 150 percent of the royalty will be payable. The additional amount shall be in addition to royalty, payment to the District Mineral Foundation and National Mineral Exploration Trust or any other statutory payment.

Kumaraswamy Iron Ore Mine, Bellary – Karnataka

The Mining lease deed was registered on 14/7/2020 for a validity up-to 22/10/2022. Application, in terms of Mineral (Mining by Government Company) Rules – 2015, for extension of Mining Lease for another period of 20 years has been submitted to the State Government on 23.02.2021.

Mining Lease of DMP, Panna – Madhya Pradesh

Mineral Resources Department, Govt. of Madhya Pradesh, vide its order dated 20/2/2020 extended the supplementary Mining lease for Diamond Mining Project, Panna for further period of 20 years i.e. from 01/07/2020 to 30/06/2040. The Mining lease deed for the same had been registered on 22/6/2020.

Obtained validity extension of Forest clearance on 6/1/2021 for 74.018 Ha for a period from 1/7/2020 to 30/6/2040. State Wildlife Board meeting held on 14/1/2021 and Standing committee of NBWL meeting held on 18/2/2021 for renewal / extension of wildlife permission for 20 years beyond 31/12/2021 to MOEF&CC subject to approval of Hon’ble Supreme Court.

Interim Appeal filed on 26/3/2021 before Hon’ble Supreme Court for obtaining approval of Court.

Bailadila Deposit No.1 & 3

Your Company has filed Writ Petition before the Hon’ble

High Court of Delhi against allotment of Deposit-I to

Tata Steel & PL of Deposit-3 to ESSAR Steels. The Writ

Petitions are being heard before the Hon’ble High Court of New Delhi.

Exploration Works:

Exploratory Drilling in Iron Ore Working Mines of NMDC:

Your company has carried out exploratory drilling of 17,712.50mts exploratory drilling against the MoU target of 17,500 mts during 2020-21 through GEC, Raipur to establish the additional resources & enhance the life of Mines and for better quality control.

Mineral blocks applied for reservation: In Jharkhand Iron ore: Sasangda

The JNMDC (JV Company of NMDC 60% & JSMDC 40%) has been incorporated at Ranchi. JNMDC was granted PL for iron ore & Manganese in Sasangda NE area 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. As suggested by MoM,

GOI, JNMDC submitted the proposal to the Secretary, Dept of Industries Mines & Geology, GoJ, for reservation of Sasangda 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.


Your Company has submitted a proposal to the Secretary, Dept. of Industries Mines & Geology, Govt. of Jharkhand for reservation of Ghatkuri Iron ore deposit, West Singhbum District, under Section 17A(2A) of MM(D&R) Amendment Act 2015 for Prospecting and Mining operation in favour of JNMDC. On 01.02.2021 Company requested Addl. Sec. MoS, GoI to take up the matter with MOEF &CC for exempting the Ghatkuri Iron Ore area from conservation zone and keep it under Mining Zone so that this block can be reserved for JNMDC. The Matter is being pursued with GoJ and MoS, GOI.

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

The JV Company JNMDC) 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 Prospecting and Mining operation under section 17A(2A) of MM(DR) Amendment Act-2015. On 30-04-2020 Commissioner, West Singhbhum, Chaibasa recommended that the above mining leases can be reserved to JNMDC for prospecting and Mining operations. The matter is being pursued with Govt. of Jharkhand for reservation.

Gold Block In Jharkhand

Your Company submitted application to the Secretary cum- Commissioner, DMG, GoJ 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.

Tambadungri Block for Copper & various minerals in Jharkhand

Your Company submitted the proposal to the Secretary-cum-Commissioner, Dept. of Mines & Geology, Govt. of Jharkhand for reservation of Tambadungri block, Saraikela-Kharswan district over an area of 16.70 sq. kms for prospecting and mining operation of Copper, Nickel, cobalt and molybdenum minerals under Section 17A(2A) of MM(D&R) Amendment Act 2015. The matter is being pursued with Govt. of Jharkhand for reservation.

In Karnataka Iron ore

Your 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 Hon’ble Supreme Court of India.

In addition, your company has applied for 3 blocks contiguous to Donimalai ML under reservation route for prospecting and mining operations. Your Company requested Ministry of Steel, Govt of India vide letter dated 20-06-2020 to take up the matter with Ministry of Mines, Govt. of India for reservation of Ramandurg Iron ore deposit (area - 5.17 sq. km) in favour of NMDC Ltd under section 17A(1A) of MM(D&R) Act,1957. Matter is being pursued with Govt. of Karnataka and Govt. of India.

Lithium Block, Raichur district, Kaarnataka

Your company has submitted a proposal to the Director, DMG, Govt of Karnataka to reserve 24.95 Sq. Km. area for lithium and other associated elements in Raichur District, Karnataka under Section 17A (2A) of MM (D&R) Amendment Act, 2015 for grant of prospecting and mining operation. Sr. Geologist, DMG, Raichur has submitted his recommendation to Director, DMG, GoK on 20/02/2021 for reservation of applied area in Raichur Dist. for NMDC for Prospecting and Mining Operations. The matter is being pursued with DMG, Govt. of Karnataka for reservation.

In Odisha lron & Manganese Ore

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

In Madhya Pradesh under Tripartite MoU:

Your Company has signed a Tripartite MoU among GoMP (MRD, through DGM), MPSMCL & NMDC for geological and geophysical exploration in various Districts of M.P. Based on this, Govt. of Madhya Pradesh issued Gazette Notifications for 3 iron ore prospective blocks, 20 diamond prospective blocks and 1 prospective block for various minerals which are applied under MoU for exploration and subsequent reservation. lron Ore Prospective Blocks: Sidhi Block in Sidhi & Singrauli, Districts

a) Geological mapping and Geochemical Mapping completed in the identified 5 potential sub-blocks. NMDC completed Geophysical Surveys and topographical survey and planned for core drilling in One Block to establish the quantity and grade. Obtained the forest permission for drilling in the same block. Tender has been issued for drilling which is in process to identify a suitable party to carry out exploratory drilling.

b) After carrying out Geophysical survey, Geological mapping and surface geochemical sampling,

NMDC has identified two low grade iron ore blocks.

c) Diamond Prospective Blocks (3 Large Blocks, 5 Small Blocks and 12 Additional Blocks): The status of exploration is as under:-

After carrying out Remote Sensing studies in collaboration with NRSC, processing of Aeromagnetic data & studies and geophysical studies & Geochemical studies, NMDC identified anomalous areas & diamond target areas for further exploration. Applications submitted for forest permission to carry out exploratory drilling in 8 blocks. APCCF (LM), Bhopal granted permission for drilling in 5 blocks. Tender issued and is in process to identify suitable agency to carryout exploratory 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, Ground Geophysical Survey (Magnetic survey) and Topographical survey completed in the block. Application submitted to Forest department for obtaining forest permission to carryout exploratory core drilling planned to establish the quantity and grade. Matter is being pursued with forest dept., Govt. of M.P.

Govt. of M.P. granted working permission for reconnaissance survey for various minerals in Jabalpur, Katni and Mandla Districts and NMDC identified areas for Manganese, Ferro-Manganese and Bauxite for further exploration.

In Andhra Pradesh

Your Company has submitted two applications, one for Ramgiri prospective block for lron Ore in Anantapur district and Peravali-Betapalli Gold block in Kurnool & Anantapur districts for reservation under Section 17A (2A) of MMDR Amendment Act, 2015 for Prospecting & Mining. Matter is being pursued with DMG, Govt. of A.P.


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.

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

Your company as a National Exploration Agency (NEA) was allocated 5 Mineral Blocks (2 iron ore blocks in Jharkhand & Maharashtra and 3 Gold blocks 2 in Karnataka & 1 in M.P.) by Ministry of Mines, GoI for carrying out regional (G4) level exploration under NMET. NMDC has completed the exploration of all the five blocks and submitted the Geological Reports successfully to NMET Technical Committee. NMDC submitted the invoices for 5 blocks to NMET, MoM, GOI for cost reimbursement. NMET, MoM, GoI reimbursed the exploration cost of 204.49 lakhs to NMDC for three blocks. The reimbursement of exploration cost for the balance two blocks is in the process by NMET, MoM, GoI.

Mineral e-auction for acquisition of Mineral Blocks:

Your Company has become the preferred bidder for Chigargunta-Bisanatham gold block for grant of Mining Lease (ML area 263.01 Ha.), A.P. through e-auction route with a final price offer of 38.25%. NMDC requested Govt. of Andhra Pradesh to issue the LOI to enable NMDC for taking further course of action. DMG, GoAP informed NMDC that after clearance of W.P., the LoI will be issued. As sought by DMG, GoAP, NMDC submitted the revalidated BG of Rs. 2.48nCrores to DMG, GoAP on 22.02.2021 for a period of two years w.e.f. date of Issue.

NMDC filed Implead Application no. 1 of 2021 on 01/03/2021 to add / implead proposed party i.e. NMDC Limited as respondent no.5 in the Writ Petition No. 15965/2018. Implead Application No. 1 of 2021 still pending. The matter is being pursued with Govt. of Andhra Pradesh for issuing LOI in favour of NMDC at the earliest.

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

NMDC-CMDC Ltd (NCL)., 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:

Reservation of Bailadila Iron ore Deposit No.4, Dantewada, Chhattisgarh

Ministry of Mines, Govt. of India has reserved Bailadila

Iron Ore Deposit-4 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 vide their Gazette Notification no. 697(E) Dated- 30-09-2019 for Prospecting & Mining operations. NCL on 28/08/2020 has requested Govt. of Chhattisgarh for incorporation of revised coordinates and compartment area of Deposit-4 in the Letter of Intent (LOI) for grant of mining lease. Notification obtained from Ministry of Mines for amendment in co-ordinates of Bailadila Deposit-4 of NMDC-CMDC Ltd on 18/2/2021. LOI for grant of mining lease for Deposit-4 issued by MRD, Chhattisgarh on 26-06-2021.

Bailadila Iron Ore Deposit No.13

State Government of Chhattisgarh, vide its order no. F3- 84/05/12 dated: 07/01/2017, granted the Mining lease of Bailadila Iron Ore Dep-13 for Iron Ore in village Kirandul, Tehsil - Bacheli, Distt.- South Bastar Dantewada (CG) for 50 years in favor of NMDC Ltd. and Lease deed for the same has been executed on 10/01/2017.

As per JV agreement dated 27th March 2007 by and between CMDC and NMDC Ltd., mining lease for Bailadila Iron Ore Deposit No.13, had to be transferred in the name of NMDC - CMDC Limited (NCL) and then NCL would undertake all the required steps for development and operations of the Mine. Further, Mining lease Grant Order No. F3-84/95/12 dated 07/01/2017, in respect of Deposit No.13 issued by State Government of Chhattisgarh, stipulate that "after the execution of the lease deed, NMDC will transfer the Mining Lease to the JV Company "NMDC-CMDC Ltd."

Mineral Resource Department, Government of Chhattisgarh, has issued an order No. F 3-84/1995/12, dated: 06/11/2017 for transferring the mining Lease of Bailadila Iron Ore Deposit-13 in favor of NMDC-CMDC Ltd. Mining Lease of Deposit-13 has been transferred in favor of NMDC-CMDC Ltd. on 04.12.2017.

On 02.07.2018 M/s. Adani Enterprises Limited had been declared as successful bidder for appointment as MDO for Bailadila Iron Ore Deposit-13. A strike commenced on 07.06.2019 (ended on 12.06.2019) by nearby villagers, protesting against MDO and demanding enquiry against FRA certificate issued by Gram Sabha. District Collector, Dantewada vide Order No. 300/Reader/2019 dt.11.06.2019 issued orders to stop all project activities of Dep-13.

Reservation of Baloda- Belmundi Diamond Block in Chhattisgarh in favour of NCL:

NMDC-CMDC Ltd (NCL), a JV company has submitted the proposal to Secretary MRD, Chhattisgarh for reservation of Baloda - Belmundi Diamond block under section 17A(2A) of MM (D&R) Amendment Act,2015 in favour of NCL for Prospecting and Mining operation of Diamond. Secretary, MRD, GoCG vide his letter dated 14/12/2020 requested Secretary, Ministry of Mines, Govt of India seeking approval for reservation of Baloda-Belmundi Diamond Block for NMDC-CMDC Ltd. for prospecting and mining operation for a period of 5 years under section 17 A (2) MM (D&R) Amendment Act, 2015. As sought by Ministry of Steel, Govt of India, NMDC has submitted reply to MoS, GoI regarding comments / recommendation on the instant proposal for the above block on 31-08-2021.

b) The subsidiaries of NMDC are Board managed with the primary interest to manage such Companies in the best interest of the shareholders. The framework for Subsidiary / Associate / JV Companies are as under:-

i) All investments in these Companies are approved by the Board of Directors.

ii) The Company nominates its representatives on the Board of these Companies.

iii) The minutes of the Board meeting of these Companies are placed before the Board of NMDC Limited.


1) Subsidiary / Associate / Joint Venture Companies have been categorized in line with disclosures as made in the financial statements.

2) A step down Subsidiary Company of NMDC-SAIL Ltd. by the name Chhattisgarh Mining Ventures Ltd. was incorporated on 08/11/2016. Govt. of India, Ministry of Corporate Affairs vide its letter dated 30.01.2020 inter alia, communicated that pursuant to sub-section (5) of section 248 of the Companies Act, 2013, the name of M/s Chhattisgarh Mining Ventures Ltd. has been struck off by Registrar of Companies and the said company is dissolved.

# Govt. of India, Ministry of Corporate Affairs vide its letter dated 16.08.2021 inter alia, communicated that pursuant to subsection (5) of section 248 of the Companies Act, 2013, the name of M/s NMDC-SAIL Ltd. has been struck off by Registrar of Companies and the said company is dissolved.

NMDC is in the process of obtaining Environmental Clearance (EC) under EIA Notification 2006 for Regularization of Environmental Clearance (from EIA 1994 to EIA 2006) for BIOM, Deposit-11 ML (11.30 MTPA ROM Iron Ore and 2.7 MTPA waste excavation) and Amendment for existing EC of 14/11C by excluding 11C part (1.5 MTPA Iron Ore Production). EIA/EMP report, Form-II & Questionnaire uploaded in PARIVESH Portal on 11.3.2021 for Deposit-11ML. Addendum EIA/EMP report and Form-4 uploaded in PARIVESH Portal on 11.3.2021 for obtaining EC from MoEF&CC. The Environment Appraisal Committee (EAC) meeting is now awaited. Your company also obtained Regularization of Environmental Clearance (from EIA Notification 1994 to EIA 2006) for Kumaraswamy Iron Ore Mine (7 MTPA ROM Iron Ore and 1.6 MTPA of waste excavation) from MoEF&CC on 25.1.2021.

Your company obtained Terms of reference (ToR) for capacity expansion of KIOM from existing 7 MTPA to 10 MTPA Iron ore production and waste excavation from 1.6 MTPA to 6.25 MTPA from MoEF&CC on 23.3.2021.

Your company also obtained Transfer of EC for Tokisud North Coal (2.32 MTPA (ROM) cum- coal washery (2.32 MTPA ROM) from MOEF&CC on 9/2/2021 and corrigendum on 1.4.2021 mentioning the capacity as 2.32

MTPA from erstwhile lease holder of M/s. Essar Power M.P. Ltd.

Further, your company also obtained Validity Extension of Environmental Clearance for Augmentation of Screening Plant and associated facilities (12 MTPA) for BIOM, Dep-14/11C & 11B from MoEF&CC on 1/12/2020, The EC is now valid up to 4/11/2023.

Your Company has got valid operating consents from State Pollution Control Boards for all production projects. The Company obtained renewal of Consent to Operate under Air (Prevention & Control of Pollution) Acts 1981 and Water (Prevention & Control of Pollution) Act 1974 for the following Projects:

Bailadila Deposit-10: Renewal obtained on 10/7/2020 for a period of 5 years valid up to 31/5/2025.

Bailadila Deposit-11A: Renewal obtained on 5/9/2020 for a period of one year valid up to 4.9.2021.

Bailadila Deposit-14/11C: Renewal obtained on 31/12/2020 for a period of 2 years valid up to 31/12/22.

NISP, Nagarnar: Renewal of consent obtained on 10/9/2020 for a period of one year valid up to 31/08/2021.

Diamond Mine, Panna: Renewal obtained on 18/6/2020 for Processing Plant valid upto 31/10/2021.

Your company also obtained Authorization under Hazardous Waste Management & Transboundary movement Rules 2016 from CECB for Bailadila Deposit-5 for handling 100 KL used oil on 30/09/2020 for a period of 5 years valid up to 2/8/2025.

Your company also obtained stage-1 Forest clearance from MoEF&CC, Regional Office, Nagpur on 24.11.2020 for diversion of 7.116 Ha of forestland for associated facilities for Iron Ore Beneficiation Plant at Bacheli for Iron Ore Beneficiation Plant, Bacheli. Final Forest clearance was obtained for Slurry Pipeline Project for 83.831 Ha forest land from MoEF&CC, RO, Nagpur on 20/11/2020.

Your company obtained Final Forest clearance from MOEF&CC, RO, Nagpur on 27/11/2020 for diversion of 2.733 Ha for construction of road from Loading plant, Bacheli to Kirandul main road.

Your company also obtained permission of CG State Forest Dept for felling of 159 no.s of trees for construction of electrical sub-station at Kirandul in Dep-14 NMZ Mining Lease on 11.5.2020. Obtained permission for felling of 7811 no.s of trees in 36.870 Ha in Deposit-10

ML for mining purpose on 5.4.2021

Your company obtained validity extension of Forest clearance on 6/1/2021 for 74.018 Ha in forest land in supplementary mining lease from 1/7/2020 to 30/6/2040 (co-terminus the extended lease period) from Forest Deptt, Bhopal.

Hon’ble Supreme Court appointed monitoring committee meeting was held on 4/9/2020. As per State Wildlife Board meeting held on 14/1/2021, PCCF (WL)/CWLW recommended the proposal of Panna DMP on 30/01/2021 for renewal / extension of wildlife permission for 20 years beyond 31/12/2020 to MOEF&CC subject to approval of Hon’ble Supreme Court.

As per Standing committee of National Board for Wildlife meeting held on 18/2/2021, committee recommended the proposal subject to compliance of conditions (approval of Hon’ble Supreme Court of India) stipulated by CWLW and NTCA. The recommendations were communicated vide letter dated 11/3/2021 to Pr. Secretary Forests, Bhopal by MoEF&CC. Further, interlocutory application (I.A) filed on 26/3/2021 before Hon’ble Supreme Court for obtaining approval of Supreme Court Your Company has signed an MoU with DFO, Dantewada on 1/2/21 for implementation of R&R / EMP works at Kirandul complex at a total cost of Rs.1,615 lakhs as per the recommendation of ICFRE, Dehradun.

Environmental protection and ecological restoration works include plantation in and around the lease areas, construction and repair of buttress walls, check dams, check bunds, garland drains, rainwater harvesting pits, broadcasting of grass seeds and laying of geo-coir matting on the inactive waste dumping sites are being implemented. Your Company is carrying out environmental monitoring studies covering all environmental attributes, ground water quality & water levels through recognized laboratories. The studies indicated that all environmental parameters are found well within the limits.

Sustainable Development (SD) Performance

Under S.D. programme, a 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. NMDC won Greentech award with 4 first prizes and 2 second prizes in various categories. Every year Carbon Footprint studies are being conducted for disclosure of Greenhouse Gas Emissions under 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) was conducted on 08.01.2021. Mine Level Tripartite Safety Committee Meeting of Bailadila Iron Ore Mine, Kirandul Complex and Bailadila Iron Ore Mine, Bacheli Complex was conducted through virtual mode on 21.12.2020 and 22.12.2020 respectively. Mine Level Tripartite Safety Committee Meeting of Diamond Mining Project, Panna was conducted on 06.02.2021.

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 was conducted thru virtual mode on 09.02.2021, 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 100000 man days worked for the year 2020-21 is 3.69 and 16.64 for the year 2019-20.

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 rores

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 2020-21,85 tenders valuing Rs.1092 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:-


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 and Rs.271.85 lakhs (26 cases) during 2019-20 and Rs.3975.96 Lakhs (33 cases) during 2020-21.

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 948 orders valuing Rs. 39.00 crores were placed during the year 2020-21.

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.


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


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

Parangat Hindi training continued through team’s app following all safety measures in view of the COVID-19 pandemic. So far 09 batches of Parangat training have successfully been completed. Hindi workshops were organized online every quarter in headquarters and various projects during the year. Official Language Implementation Committee meetings were held online every quarter in headquarters as well as at projects.

An National Seminar of Official Language Officers was organized on 18th March, 2021 at NMDC Headquarters, Hyderabad under the aegis of Ministry of Steel. The seminar was organized on the subjects of

(1) Simplification of Hindi as official language and

(2) Development Journey of Hindi as official language of the Union. The seminar was attended by officials from Ministry of Steel, Ministry of Home Affairs, Department of Official Language, Central Hindi Training Institute, Member Secretaries of TOLICs, and Steel PSUs. Workshop on Memory Based Translation Software "Kanthastha" was organized at NMDC Headquarters, Hyderabad on 9th March, 2021 under the aegis of Government of India, Department of Official Language. The workshop was attended by Officers from member offices of Town Official Language Implementation Committee (Undertaking), Hyderabad-Secunderabad and Official Language Officers of NMDC Headquarters as well as Member Secretaries of various Town Official Language Committees.

Hindi Fortnight was organized through digital mode at NMDC Headquarters. Messages of CMD were circulated through social media like Twitter, Facebook, YouTube. Online competitions were organized. Hindi functions were also organized in the projects.

The official language house journal "Khanij Bharati" of the headquarters was published. Various Hindi/bilingual/ trilingual magazines namely Baila Samachar, Bacheli Samachar, Doni Samachar, Hira Samachar were also published from the projects. "Sarjana" and "Takaniki Kshitij" magazines were published from the Kirandul Project.

Official Language Technical Seminars were organized at Bailadila Iron Ore Mine, Kirandul Complex, Diamond Mining Project Panna and SIU, Paloncha.

Diamond Mining Project, Panna organized various programmes for implementation of Official Language as convenor of Town Official Language Implementation Committee.

Head Office of NMDC Ltd was declared the winner Rajbhasha Kirti Puraskar (Third) for PSUs in "C" region for the Year 2019-20. NMDC shall be getting Rajbhasha Kirti award for the third year consecutively. Head Office of NMDC Ltd was declared the winner of the first prize "Rajbhasha Shield" for the year 2019-20 in the category of medium sized undertakings for excellent implementation of Official Language by Town Official Language Implementation Committee (Undertaking), Hyderabad-Secunderabad. NMDC shall be getting this award for the fifth year consecutively.


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 04 Nos. Vendor Meets / programmes at various places in total during 2020-21.

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 2020-21 are given below:-

Category of MSE Firm Norms Achievement
Procurement from MSE firms 25% 32.97%
Procurement from SC / ST MSE firms 4% 4.12%
Procurement from Women Entrepreneurs MSE firms 3% 3.05%

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 Company’s policies affecting production and productivity.

Scheduled Castes & Scheduled Tribes

01 candidates belonging to Scheduled Caste was appointed in the year 2020-21 against 10 posts filled by direct recruitment.

Strength of SCs & STs as on 31st March 2021

1. Total number of employees: 5569

2. Scheduled Castes amongst them: 855

3. Scheduled Tribes amongst them: 1393

4. Backward class employees: 1094

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

Various sporting activities, both indoor and outdoor, for employees and for the wards of employees were held in different Projects and at Corporate Office 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 2020-2021.


At NMDC Limited, our human capital and business share a bond of co-creation and we enable them to rise to their best and in turn they help us to drive excellence. Augmenting the quality of human capital not only motivates your employees but also fosters innovation and thereby increasing the competitive advantage of your company.

You Company’s workforce is thriving due to which , business flourishes, and the economic value thus generated can then be transferred back to the employees.

NMDC is not only as good as its people but its human capital is a measure of the financial value the employees bring in, through their competencies, capabilities, and experience. The essence of human capital lies in the understanding that every employee is unique and that there is constant scope for maximizing their strengths and developing their potentials through continual investments in them.

At NMDC Limited, we devise effective growth paths through unique Learning and Development platforms of engagements which not only help raise productivity, but also inspire passion. We engage with our employees at regular intervals with a host of interventions which enable them to rise through access to the right tools of learning, skill enhancement, and creative stimulus.

NMDC’s Learning Architecture is designed to create a strong and integrated culture of learning — as well as a common language that allows us to speak as one NMDC across all Projects, regional Offices and HO as part of our strategy. Our goal is to leverage learning as a strategic tool that continually supports our employees and our growth across the country.

Learning and Development initiatives offered during 2020-21 were aligned with Business Goals. Despite the pandemic, the on-going core programmes were revitalized to reflect the emerging capability requirements. In addition to core programmes, customized e- learning programmes were also offered to address the needs expressed by businesses, aimed at building specific capabilities at various levels of the organization.

Corporate HRD has Organised 24Nos of Customized In House Training Programmes covering 624 Executives during 2020-21, 29 Nos of External Training Programmes covering 181 executives on various subjects, No executive was sent abroad for Foreign Training Programmes / AMP/Visits due to COVID-19 pandemic and governmental directives.

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 15 Gold Awards in CCQC. 15 QCs participated in NCQC and bagged 2 Par Excellence Award, 10 Excellent Category Awards and 3 Distinguish Meritorious Award

LMS_(Learning Management System)

Designed "Gyan Jyoti" Portal, which is a Knowledge Management Portal for smooth implementation of Knowledge Management Framework across the Organization Web Based Learning Initiatives during COVID times Organized 58 Nos of Web Based Learning Initiatives during COVID times

E- Learning Programmes

Keeping in mind the spread of Covid 19, NMDC has Purchased 100 Nos of comprehensive world class e-learning Licenses through Udemy which offers comprehensive self-paced learning options. The e-learning modules are actively used to complement the class room training to ensure blended learning to the participants

"SAMANVAY"- Knowledge Management Framework

Department of Public Enterprises (DPE) has developed Common Knowledge Management Portal "Samanvay" for all CPSEs 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.

A cross functional Committee is constituted to ensure smooth implementation of Knowledge Management Framework "Samanvay" across the Organization. Talent Management

Corporate HRD has drawn a plan to conduct various Training Programmes on Talent Management.

Customised Online Executive Education Programme on "Communication and Presentation Skills" For NMDC Executives is organized by ISB, Hyderabad during 2020-21.

"YOU THRIVE" - Employee Engagement Initiatives for Young Executives

You thrive Annual Business Quiz- Organization level is organized through Microsoft Teams and Video Conferencing Mode on 17th & 19th October 2020. Winners are Team from DMP, Panna & Runners are Team from

BIOM, Kirandul

Training of NISP Employees

Organised six days On site Training Programme of "Train the Trainers Module" on "Making Safety as a Way of Life The NMDC Way"" covering 20 Nos of NMDC Executives

Learning from Each Other (LEO) Workshops

These workshops are planned provide a structured process for sharing of best practices between PSUs by facilitating learning from experience. The aim of these workshops were to share the best practices, methods and techniques followed by Various PSU Organizations in specific identified areas and learn tools and techniques to sustain these practices through interaction with each other. Senior executives of PSUs and experts in related areas interacted with participants in these workshops.

Action is under progress

Culture Building & Happiness through Learning Workshops

COVID-19 has thrown unprecedented challenges before us alongside Fear, Stress & Anxiety. To overcome and tackle this, happiness programme was conducted by NMDC for the employees not only to be better equipped to identify the level of happiness within organisation and help colleagues understand why happiness is worthwhile goal. These programmes equipped our people to support engagement and productivity within NMDC and strengthen their sense of belonging, purpose, meaning and satisfaction -not only at the offices but in their life as a whole

Skill Development Training:

NMDC and NSDC has entered into MoU on 31.12.2019 for imparting training and RPL certification for 400 employees in mining and steel sector. NSDC regretted the implementation of projects due to operational challenges on ground especially during pandemic. MoU got cancelled due to pandemic and physical training could not be done by NSDC. Now, NMDC is going to enter MoU with for 1600 employees for 4 years (400 each each) to be trained from FY 2020-21 to FY 2023-24.

Company is also playing a pivotal role to support the National Skill Development Mission through active participation in the activities of Skill Council for Mining Sector (SCMS) and providing Training and Recognition of Prior Learning (RPL) in all Projects.

Rewards & Recognition for HRD initiatives (2020-21):

1. ISTD Special Commendation Award for the ‘National Award for Innovative Training Practices" category for the year 2018-19.

2. NMDC was conferred winner of 9th Annual Greentech HR award 2020 for outstanding achievements in "Training and Excellence" category by Genentech.

3. NMDC was conferred 2nd Prize for innovative training practices at National level for the year 2019-2020 by ISTD, New Delhi.

4. NMDC was also conferred a cash prize of INR 30,000 by ISTD, New Delhi towards 2nd Prize for 2019-2020.

Vigilance department has taken several initiatives during the year. Emphasis was laid on adequate checks and balances in the form of well-defined systems and procedures. Various programmes were conducted for awareness on vigilance matters for the employees of the Corporation. The vigilance functionaries at the projects have conducted regular training classes for the employees on vigilance matters. Executives of the Vigilance Department were nominated for training/ workshops being organized in India.

The systems and procedures including the document handling, maintenance of records are done to ensure that the Vigilance Department is conforming to the Quality Management Systems as per ISO 9001:2015 Standards. Vigilance Department in NMDC has upgraded to ISO 9001:2015 standards of Quality Management System (QMS). In this regard, a work order has been issued to M/s Vexil Business Process Services Private Limited,

Delhi for certification. Accordingly, Surveillance Audit was conducted by M/s Vexil on 18.01.2021. and ISO certificate valid up to 5th Feb 2022.

During the year (April’2020 March 2021), 47 surprise checks, 59 regular inspections, was conducted by Vigilance Department. Complaints received were taken up for investigation and necessary suggestions for system improvement/ disciplinary action wherever required were recommended. During the period, 4 major penalties were imposed. A total recovery of 65.38lacs was made during the financial year.

As part of the implementation of "Leveraging of

Technology for transparency" in all the transactions, details of contracts concluded above Rs. 10 lakhs, all works awarded on nomination basis, single tender basis above Rs. 1 lakh, information regarding bill payments to the contractors, etc. are provided on the company’s website. Efforts to encourage e-procurement, e-tender & e-auction are being made continuously.

NMDC has adopted the Integrity Pact since November

2007. As per the suggestions given by Vigilance Department, the threshold value has been decreased to 1.0 Crore w.e.f. 07.09.2018 for both Procurement and Contracts as against the earlier threshold limit of Rs. 20 crores in case of Civil works and Contracts and Rs. 10 crores in case of Procurement on approval of NMDC Board. The Integrity Pact has been entered into 339 contracts with a value of Rs. 26046.91 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.

To ensure transparency in vigilance works, rotational transfers of vigilance officers were carried out and new officers were inducted in Vigilance department. A Vigilance Review-cum-Coordination meeting for the last quarter of 2020-21 was called by CVO during 8th & 9th Feb, 2021 at Head Office, Hyderabad. The said meeting was attended by all the Vigilance Officers posted at Head Office and Projects like Kirandul, Bacheli, Donimalai, Panna & NISP. Project-wise presentations were made and matters pertaining to vigilance inspections and system improvements recommended / implemented etc. were discussed. Few common matters were also discussed in open-house wherein all VOs exchanged their views and gave valuable suggestions. Earlier meetings were held through virtual mode in view of Covid-19 pandemic.

In pursuance of CVC directions / guidelines received during the month of August / September 2020, a 02 days module and Road map for imparting training on preventive vigilance separately for Induction level (new entrants) and Mid-career level Executives were drawn up and was integrated with our HRD’s regular training plan. The said training programs on Preventive Vigilance is being arranged every month at NMDC in compliance of CVC guidelines, covering Induction level and mid-career level executives of HO, ROs and all Projects. Keeping in view the present scenario of the pandemic, the sessions for training on PV has been arranged through Hybrid mode, i.e., through class room mode at few locations like Head office and through online relay under the concept of extended classrooms at remote locations & Projects.

Till the end of Year 2020-21, a total of 02 Nos. of Training modules on PV was planned & arranged for Induction level and which was attended by 36 No. of Induction level executives, whereas, 11 No. of training modules on PV was planned / arranged for Mid-Career level and which was attended by 248 No. of mid-career level executives.

System improvements undertaken / implemented During the Year 2020-21

As per the Action Plan, surprise and regular checks were conducted besides the study of files. Irregularities and omissions under the provisions of the rules are identified and improvements in the systems are suggested wherever required. Based on the observations of Vigilance, recoveries from the contractor’s 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:-

1. Test Certificate for Mechanical Strength of Mobile Lighting Towers: Circular was issued in the tender of the Lighting towers to ensure the quality, tenderers shall submit requisite test Certificate in relevant IS codes for high mast and Type Test certificate for the Mechanical strength, stability and wind loads from the Govt. Laboratory for the towers along with their offer.

2. Time bound reply for CTEO’s observations: Circular regarding the time frames for submission of the reply by Technical Department and preparation of reply to CTEO by Vigilance department were fixed to speed up the process.

3. System improvements related to contract labour payments: Contractors have to submit a copy of bank statement/pass books/online PDF statement as a proof of contract labour monthly wages to executing department /personal department before submitting final bill to IR section to improve the transparency.

4. System improvement in Open Tender Enquiries have been implemented by bringing about transparency in all stages of tendering process, uploading of open tenders in CPP Portal and providing separate payment channel / portal for collection of tender document fee / EMD amount and ensuring refund of EMD within 15 days time.

5. System improvements in Pre – Contract Award Process: System improvement in Pre-Contract Award Process has been done to avoid the lapses in execution of the contract by ensuring scrutinization of all the requisite clearances from Revenue, Forest and other statutory authorities before issue of work order to avoid any future litigation / arbitration.

6. Reduction of detention charges and shunting charges during despatch: As per suggestion of Vig. dept., supervision of the dispatch activities at loading plant, drop test for CLO (Iron ore) siding wagon loader has been conducted in presence of customer representatives and improved the supervision at site of Loading resulting in reduction of detection and shunting charges approx. 40%

7. System improvement in issue and consumption of the HSD records: Review of digital signatures of the officers who are authorized to draw the fuel from the central stores periodically to avoid the unauthorized consumption and issue of the POL and HSD

8. Banning of negotiation with lowest bidder:

Vigilance dept. has studied the cases of negotiations held with L1 bidder during the tender process and has advised to avoid negotiations with L1 bidder in order to improve the transparency of the system.

9. Improvement in the quality control of the civil works: To improve the quality of the civil works, the records of hindrance, free-issue and other site and statutory registers shall be verified by the concerned Engineer-Incharges and HODs as per the norms without fail. Also digitalization of records is also proposed by the Vigilance dept. which is under implementation.

10. Rotation of officials working in sensitive posts: As per CVC guidelines, the persons holding sensitive posts and long standing were identified and rotated during the year 2019-20. A total of 145 No. of officials were rotated / transferred out.

11. System improvement has been done in Sample preparation of iron ore by mechanical methods in place manual methods in one of the out sourced Mines (KIOM) of the NMDC.

12. Constitution of Standing Committee for quality assurance of construction projects – to maintain the quality assurance in the construction projects of NMDC a committee was nominated consisting of experts of the relevant fields as per the recommendations of the vigilance department.

Vigilance Awareness Week

As per the directives of Central Vigilance Commission, the Vigilance Awareness Week for 2020(VAW-2020) was observed in NMDC Ltd. from 27.10.2020 to 02.11.2020 on the theme " , – Satark Bharat, Samriddh Bharat (Vigilant India, Prosperous India)".

On the Inaugural day of VAW-2020, Integrity Pledge for organisation was administered to all employees by Shri Sumit Deb, CMD through virtual mode across all the Projects/R&D & Regional Offices(ROs) of NMDC Ltd. located in the states of Chhattisgarh, Karnataka, Madhya Pradesh, Andhra Pradesh, Jharkhand & New Delhi.

Various activities including sensitization programmes and individual/inter-departmental competitions like Slogan writing, Essay writing, Elocution, Quiz competition, inter-departmental House-keeping competition and Drawing of e-posters on the VAW theme were arranged for the employees during the Vigilance Awareness Week-2020. In addition to the conduct said regular activities, around sixteen areas/activities were also covered during VAW-2020, the list of which was provided by the CVC with a direction to take up those areas/activities in campaign mode.

Precautions as per COVID-19 guidelines were strictly taken during the observance of Vigilance Awareness Week -2020 and most of the events/activities during VAW-2020 was arranged through On-Line mode, as far as possible.


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 31.03.2021, 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 Board of NMDC is not having Independent Director in FY 2021-22 as on the date of report. The company being Government Company, the power to appoint Directors (including Independent Directors) vests with Govt. of India.


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


During the year under review 8 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. This expansion plan includes brownfield expansion of existing mines and developing greenfield mines in partnership with Chhattisgarh Mineral Development Corporation. A joint venture of NMDC & CMDC (NCL) is in process of starting operations from Dep-13 Iron Ore Mine in the Bailadila Region. The Government of Chhattisgarh has notified the allocation of Dep-4 to NMDC in Sep’19 for prospecting and mining operations.

The pandemic of Covid-19 & lockdowns across the country in Q1 FY’21 had impacted the demand for steel in short. Most of the downstream industries were closed or operated at low capacity. Under the impact of low demand & economic slow down across the globe, future plans of the various industries including iron & steel had been impacted severely. However, quick recovery of steel & iron ore demand in the international market, especially from China, the domestic Iron & Steel industry have recovered fast from the impact of Covid. Although the plan of NMDC has been derailed due to the impact of two waves of Covid-19, NMDC is also reviewing its long-term plan based on the situation that arises after reaching the new normal and increase in demand & growth in the iron & steel industry. As per National Steel Policy, the country has envisaged increasing its steel production capacity to 300 MTPA by FY’31. The wide range of continuing infrastructure projects could support growth in steel demand to reach our envisaged target of per capita steel consumption of 158 Kg by FY’31 in the long term. NMDC is actively pursuing an Iron Ore Production ramp-up plan to further increase its iron ore production capacity to 100 MTPA by FY’30 from its existing mines and further to 100MTPA from the acquisition of new mines through the reservation route. In the financial year 2020-21, the Company has progressed significantly on various activities to enhance its production capacity from 43 MTPA to 46 MTPA and there is also progress in the construction of the fifth line in Screening Plant Dep-5 & up-gradation of the downhill conveyor system in BIOM Bacheli Complex. Rapid Wagon Loading System (RWLS-I) and New Screening Plant (SP-III) at BIOM Kirandul Complex are under construction. Further, NMDC is planning to enhance the EC capacities of mines in the mining complexes of Bailadila and Donimalai.

To augment the evacuation capacity from the Bailadila sector, many projects & schemes are being taken up like doubling of KK line, Rowghat-Jagdalpur line, Slurry Pipeline, etc. Doubling of KK line is being executed by Railways as deposit work. Section I Jagdalpur to Silakjhori 45.5 km of the railway line has been completed & opened for traffic. 26% of section II between Kirandul to Gidam (52.228 Kms) is also completed. Further 84% of works in Section III between Gidam and Silakjhori has been completed. Overall progress is 72% with the commissioning of 74 kms & the project is likely to be completed by FY’23. The completion of this project will augment the evacuation capacity of the Bailadila sector through the Railway line from 28 MTPA to 40 MTPA. Activities for Phase-1 of Slurry Pipe Line including 2 MTPA capacity Ore Processing Plant (OPP) at Bacheli, 15 MTPA capacity Slurry Pipeline System (130 km) from Bacheli to Nagarnar and 2 MTPA capacity Pellet Plant at Nagarnar, has also been initiated. The work has been divided into 10 packages, out of which 3 packages namely Site Levelling work for Pellet Plant at Nagarnar, Ore processing plant at Bacheli & Geo Tech investigation (BP-03) at Bacheli has been completed. Five more packages have been awarded & work is in progress. The remaining 2 packages are in the advance tendering process. The project is likely to be completed by June 2023. Further, NMDC has been allocated with 2 Coal Blocks- Tokisud North & Rohne, in Jharkhand. NMDC is in the process of appointing an MDO for the operation of Tokisud North coal block & will start the operation near future through MDO.

Besides the expansion plan, the SMP also envisaged the introduction of systemic interventions in six strategic transformation areas - Business, Operations, Sustainability, Capital Projects, Human Resource and IT. NMDC has implemented an ERP system across all projects & steel plant in FY’21, License-to-Operate (the computer-based model in which all the statutory approvals will be brought under one umbrella). Implementation of Mines Transport Surveillance System (MTSS)- Weighbridge automation/ Virtual Fencing/ Geo-Fencing/ GPS/ Proximity Warning Device for dumpers/ CCTV Surveillance/ Wireless Networking has been completed at Donimalai and will be implemented across all Mines in a phased manner based on the success of the system. NMDC has further taken initiatives to venture into fleet management system, automatic (robotic) sampling & analysis system, vision enhancement system, conveyor monitoring system and 3D Volumetric and Laser Scanner System to enhance its digital strength. NMDC is publishing Sustainability Report as per the Global Reporting Initiative (GRI) Standards, capturing initiatives taken by NMDC over the years in Economic, Environmental and Social aspects. As the world is now traversing more uncertainty than ever, NMDC is focusing on building sustainable and resilient businesses to survive in the long run and made a meaningful contribution to the battle against climatic change through increasing investing environment, social and governance(ESC) initiatives.


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

i) Shri N. Baijendra Kumar, CMD Shri Vijoy Kumar Singh, Govt. 31.07.2020
ii) Nominee Director 04.11.2020
iii) Shri Ashok Kumar Angurana, Independent Director 15.11.2020
iv) Shri D. Kuppuramu, Independent Director 16.03.2021

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

i) Shri Sumit Deb, CMD 01.08.2020
ii) Shri Shashank Priya, Govt. Nominee Director 17.12.2020
iii) Shri Somnath Nandi, Director (Technical) 18.12.2020

The Board places on record its deep appreciation for the valuable contribution made by Shri N. Baijendra Kumar, Shri Vijoy Kumar Singh, Shri Ashok Kumar Angurana and Shri D. Kuppuramu 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 2020-2021

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 4 Panna Project M/s Neeraj Prakash & Associates Chartered Accountants 328/208, Lukerganj Purosottam Kunj Near Dr. Banerjee, Allahabad Uttarpradesh : 211 001

b. Cost Auditors

M/s B Mukhopadhyay & Co,

Cost Accountants

B 20, Amarabati,


Kolkata 700 110.

c. Secretarial Auditors

M/s D. Hanumanta Raju & Co.

Company Secretaries

B-13, F1, P.S. Nagar

Vijaynagar Colony

Hyderabad – 500 057


All the provisions of the RTI Act 2005 are being complied with by the Company. In order to ensure timely disposal of RTI applications, PIOs have been appointed in each of NMDC’s Units. A close monitoring of the RTI applications received is done to ensure that the replies are sent in time.

The details of RTI applications received in Head Office and all the Units of the Company during the period 01.04.2020 to 31.03.2021 are as follows:

Month No of Applications received Information Provided Rejected
April 2020 (Pending As on 01.04.2020) 5 6
May 2020 9 7
June 2020 9 10
July 2020 12 9
August 2020 14 11
September 2020 40 7
October 2020 20 41
November 2020 18 21
December 2020 31 20
January 2021 27 38
February 2021 14 21
March 2021 9 8 (Pending As on 01.04.2020)
TOTAL 209 199 4


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

1. NMDC Received Public Relations Society of India (PRSI) National Awards 2020 for Best PSU implementing CSR (3rd Prize) and Annual Report

(2nd Prize) in virtual mode by Uttarakhand Governor, Union Education Minister and PRSI President.

2. NMDC 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.

3. NMDC, has been honoured with ‘National HR BEST Practices Award 2019’ by the National Institute of Personal Management (NIPM) at Hyderabad

4. NMDC conferred with two coveted awards for its excellence in unique CSR initiatives at Apex India CSR Excellence Awards – 2019 at Hyderabad.

5. Kirandul Complex of NMDC has been conferred with the Platinum Award in metal & mining sector by Apex India Foundation for its commitment to promote education under its CSR initiatives at Hyderabad.

6. NMDC was awarded the Business Leader of the

Year, PSU sector in organizational category for CSR Initiatives (Social Development) and the Best CSR Practices category, at the World CSR Day & Congress at Mumbai.

7. "Rajbhasha Kirti"award - for implementation of Rajbhasha in "C" region. This was the third time in a row that NMDC has been selected for Rajbhasha Kirti award.

8. NMDC has been declared winner of Rajbhasha Shield -First Prize for implementation of Rajbhasha by Town Official Language Implementation Committee, Hyderabad-Secunderabad (Undertakings). NMDC has bagged First prize for the Fifth Year in a row.


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.


The Board of Directors of the Company at its meeting held on 10th November 2020 approved buyback of not exceeding 13,12,43,809 (Thirteen Crore Twelve Lakh Forty Three Thousand Eight Hundred Nine) fully paid-up equity shares of face value of Re. 1/- each (representing 4.29% of the total number of fully paid-up equity shares in the paid-up share capital of the Company) at a price of Rs. 105/- (Rupees One Hundred Five only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 1378,05,99,945/- (Rupees One Thousand Three Hundred Seventy Eight Crore Five Lakh Ninety Nine Thousand Nine Hundred and Forty Five only) (excluding transaction costs) being 5.00% and 5.05% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the Company, respectively for the financial year ended 31st March 2020, from all the existing shareholders / beneficial owners of Equity Shares as on the record date i.e. 23rdNovember 2020 on a proportionate basis through a Tender Offer route. The Buyback was within the statutory limits of 10% of the aggregate of fully paid up share equity capital and free reserves of the Company under the Board of Directors approval route.

Public Announcement dated 11th November 2020 was published in newspapers on 12thNovember 2020. The Draft Letter of Offer (DLOF) dated 19thNovember 2020 was filed with SEBI on 19thNovember 2020 for observations. The Letter of Offer dated 12th December 2020 was sent electronically to the registered email id’s of the Shareholders as on record date. Buyback offer opened on 17th December 2020 and closed on 31st December 2020.

The details of valid bids considered by the Registrar to the Buyback offer are summarized as under:

Category of Investor Number of Equity Shares reserved in Buyback Number of Valid Bids Number of Equity Shares validly tendered Number of Equity Shares accepted % Response
Reserved category for Small Shareholders 1,96,86,572 240 32,165 32,165 0.16
General category of other Shareholders 11,15,57,237 15 13,12,85,789 13,12,11,644 117.68
Total 13,12,43,809 255 13,13,17,954 13,12,43,809 100.06

All valid bids were considered for the purpose of acceptance in accordance with the Buyback Regulations. The total number of Equity Shares bought back under the Buyback Offer are 13,12,43,809 at a price of Rs.105/- per Equity Share. The total cash outflow in the Buyback of Equity Shares is 1378,05,99,945/- (Rupees One Thousand Three Hundred Seventy Eight Crore Five Lakh Ninety Nine Thousand Nine Hundred Forty Five only) (excluding transaction costs viz. brokerage, advisor’s fees, intermediaries fees, public announcement publication fees, filing fees, turnover charges, applicable taxes inter alia including Buyback taxes, securities transaction tax, goods and services tax, stamp duty and other incidental and related expenses). Government of India received Rs. 1377,28,18,710/- (Gross consideration) out of the buyback transaction.

The settlement of all valid bids was completed on 8th January 2021. The extinguishment of 13,12,43,809 Equity Shares accepted under the Buyback has been completed on 11th January 2021. The equity share paid-up capital of the Company post Buyback is Rs. 293,06,05,850 (pre buyback paid-up capital was Rs. 306,18,49,659). Post completion of the Buyback, the share of Govt. of India (Promoters of the Company) in NMDC stands at 68.29%.

Offer for Sale (OFS) in F.Y. 2021-22

Pursuant to the Offer for Sale (OFS), the President of India (acting through and represented by the Ministry of Steel, Government of India), the Promoter of NMDC Limited sold equity shares aggregating to 21,95,02,378 (no.s) on 6th July 2021 and 7th July 2021 representing 7.49% of the paid-up equity share capital of the Company. The Floor Price for the Offer was Rs. 165.00 per equity share. The Transaction value of the OFS is of Rs. 3651,37,22,349.08. Post completion of the said OFS, the equity stake of the Promoter in NMDC Limited stands reduced from 68.29% to 60.80% as on 8th July 2021.

Employee OFS in F.Y. 2021-22:

In accordance with the approval given by Alternative Mechanism on 5th July 2021, the President of India, acting through Ministry of Steel, Government of India offered up to 89,08,907 equity shares of face value of Re.1/- each to the eligible employees of the Company at a price Rs.165.50 per equity share. Accordingly, the Promoter of NMDC Limited sold 1,47,942 (no.s) equity shares to the eligible employees of the Company on 20th July 2021 at an offer price of Rs. 165.50 per equity share. Transaction value of the Employee OFS is of Rs. 2,44,84,401.00. Post completion of the employee OFS, the equity stake of the Promoter in NMDC Limited stands reduced from 60.80% to 60.79% as on 23rd July 2021.


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, four 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 the first ever CPSE to implement the state-of-the-art Enterprise Resource Planning (ERP) solution on SAP S/4 HANA in January 2021. The implementation project known as "KALPATRU" has the distinction of being the largest of its kind and with all Core SAP modules implemented. The business objective for SAP implementation-related digital transformation was to provide end-to-end integrated business application solutions across all functions of Production, Maintenance, Procurement, Inventory, Finance, Sales and HR Management of NMDC. This implementation was complex and business critical as it was to be implemented in a Big-Bang methodology i.e. all modules at all locations in one go by incorporating many peripheral processes like Health, Environment & Safety, Treasury & Risk Management, Document Management, Manufacturing Interface, Dashboard and Analytics etc. All core modules of ERP have been implemented along with industry solutions for Mining. Industry solutions for Steel will be fully implemented once the Steel plant starts operations. ERP solutions have been implemented with minimal or no disruptions to business activity. Implementation was planned within a period of 18 months and Go-live was achieved in 21 months in spite of Covid-19 challenges.

This planned Digital ERP Transformation will enable

NMDC to improve decision-making and respond faster to customer needs with access to real-time data. It will also help NMDC utilize the insights from SAP into integrating and consolidating all business processes end-to-end thereby substantially improving productivity and operational efficiency.

The new ERP system will serve as a backbone for further digital initiatives in NMDC. This robust platform will further enable NMDC to expand its solution landscape by adopting new age solutions around Mobility, Analytics, Robotics, Process Automation, IOT, IT/OT Integration, Artificial Intelligence in the near future.


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 ANNUAL RETURN UNDER SECTION 92(3) OF THE COMPANIES ACT, 2013.

Pursuant to Section 92(3) of the Companies Act, 2013, Annual Return in Form MGT-7 is hosted on the Company’s website and weblink for the same is https:// www.nmdc.co.in/Financial%20Information/Default.aspx


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



In terms of the provisions of Section 204 of the Companies Act, 2013, the Board of Directors appointed M/s D. Hanumanta Raju & Co, Company Secretaries, Hyderabad as the Secretarial Auditors to conduct Secretarial Audit of the Company for the FY ended on 31st March 2021. The Secretarial Audit Report in Form MR -3 pursuant to Section 204(1) of the Companies Act, 2013 and 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is placed at Annexure-V to this Report. The observations of the Secretarial Auditors are relating to the composition of the Board of Directors with respect to the requisite number of Independent Directors of the Company, Constitution of the committees and quorum for the meetings, which is not as per the requirements of SEBI (LODR) Regulations, 2015 and the Companies Act, 2013 during the financial year 2020-21.

In this regard it is stated that NMDC Limited being a Central Public Sector Enterprise under administrative control of Ministry of Steel, Govt. of India and as per Articles of Association, the President of India shall appoint all members on the Board of Directors. The present composition of the Board of NMDC Ltd. consists of five (5) Functional Directors including CMD and two (2) Government Nominee Directors. Accordingly, the Board of NMDC has no Independent Director as on date. 8 (Eight) posts of Independent Directors; Includes vacancy of at least one woman Independent Director needs to be filled in by Ministry of Steel, Govt. of India. All the observations are due to not having requisite number of Independent Directors. The Company is regularly following up with Ministry of Steel, Govt. of India for appointment of requisite number of Independent Directors on the Board of the Company. The Board of the Company has also been informed in this regard at regular intervals.


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



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


Details to be provided in the Annual Report in terms of recommendations made by the Committee on Papers laid on the Table (Rajya Sabha) in its 150th Report is enclosed at Annexure-IX.


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

Your Directors acknowledge the support extended by the valued and esteemed international and domestic customers, Shareholders stakeholders, MMTC, Chennai Port Trust, Visakhapatnam Port Trust, Railways and other Departments of the Central and State Governments. We believe that our long-term success is dependant on our domestic customer relationship and responsiveness.

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

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

Place : New Delhi SUMIT DEB
Date : 12.08.2021 Chairman and Managing Director