NMDC Ltd
Directors Reports
Dear Members,
Your Directors are pleased to present the 64th Annual Report
on the performance of your Company, together with the Audit Report and Financial
Statements for the year ended 31st March 2022 and the Report thereon by the
Comptroller and Auditor General of India.
1.0 (A) STATE OF COMPANY AFFAIRS & PERFORMANCE HIGHLIGHTS
During the year under review, the Company has recorded turnover of Rs
25,882 crores, achieved Profit Before Tax (PBT) of Rs 12,981 crores and achieved Profit
after Tax (PAT) of Rs 9,398 crores.
The major performance highlights are summarized as under:-
• The company achieved production of 42.19 MT and sales of 40.56
MT.
• Turnover for the year under review was Rs 25,882 crores as
against Rs 15,370 crores in the previous financial year 2020-21 - an increase of 68.39%.
• Profit before tax (PBT) from continuing operations was Rs 12,981
crores compared to Rs 8,901 crores in the previous financial year 2020-21- an increase of
45.84%.
• Profit after tax (PAT) was Rs 9,398 crores compared to Rs 6,253
crores in the previous financial year 2020-21 - an increase of 50.30%.
• Net worth of the Company stood at Rs 34,844 crores as on
31.03.2022 - 17.10% higher than the previous financial year 2020-21 to Rs 29,756 crore.
• The Company declared an Interim Dividend of Rs 14.74 per share
for FY 2021-22.
• Capital expenditure of Rs 2,849 crore has been incurred during
the year under review.
• The Board of Directors at its 539th meeting held on 13.07.2021
inter alia, approved the Scheme of Arrangement between the Company and NMDC Steel Limited
and their respective creditors and shareholders, entailing inter-alia demerger of Nagarnar
Iron & Steel Plant (NISP).
• The Promoter (President of India, acting through and represented
by the Ministry of Steel, Government of India) has sold 21,95,02,378 (7.49% equity shares
@ Rs 165/- per share and raised an aggregate net amount of Rs 3651.37 crores through offer
for sale.
• The Promoter (President of India, acting through and represented
by the Ministry of Steel, Government of India) has sold 1,47,942 (0.005%) equity shares @
Rs 165.50 per share and raised an aggregate amount of Rs 244.84 crores through Employee
Offer For Sale.
(B) Scheme of Arrangement between NMDC Limited and NMDC Steel Limited
and their respective shareholders and creditors (Demerger of NISP).
The Board of Directors at its 532nd meeting has inter alia
accorded in-principle approval for demerger of NMDC Iron & Steel Plant (NISP),
Nagarnar.
A 100% subsidiary company by the name NMDC Steel Ltd. having its
registered office at Nagarnar, CG has been incorporated on 02.01.2015 as a Private Limited
Company. The transfer of NISP shall be by way of a scheme of demerger into the wholly
owned subsidiary company as incorporated by the name NMDC Steel Ltd.
The Board of Directors at its 539th meeting held on
13.07.2021 inter alia, approved pursuant to the provisions of Section 230 to 232 of the
Companies Act, 2013 and the Companies (Compromises, Arrangements and Amalgamations) Rules,
2016 and other applicable provisions, if any, of the Companies Act, 2013, and / or any
statutory modification(s) or re-enactment thereof to the Scheme of Arrangement between the
Company and NMDC Steel Limited and their respective creditors and shareholders, entailing
inter-alia demerger of the Demerged Undertaking (as defined under the Scheme) of the
Company into Resulting Company on a going concern basis, as per the terms and conditions
mentioned in the Scheme.
Rationale for the Scheme of Arrangement
Government of India has charted a road map to augment India's steel
production to 300 MTPA by 2025. To fulfill this vision, green-field steel plants are being
promoted through Special Purpose Vehicles ("SPVs") in mineral rich states of
Chhattisgarh, Jharkhand, Karnataka and Odisha. It has been envisaged that the 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 a separate
company and subsequently inviting investors.
To this effect, in October 2020, the Cabinet Committee on Economic
Affairs gave its 'inprinciple' approval to the demerger of NISP from NMDC Limited and
strategic disinvestment of the NMDC Steel Limited by selling entire Government of India
stake in the NMDC Steel Limited to a strategic buyer.
Accordingly, to achieve the above objective, the Board of Directors of
NMDC Limited have decided to make requisite applications and/or petitions before the
Ministry of Corporate Affairs, Government of India under Sections 230 to 232 of the 2013
Act (hereinafter defined) and other applicable provisions for the sanction of the Scheme.
The broad contours of the scheme of demerger are briefly outlined as
under:-
• Appointed Date: April 01, 2021 or any such other date as may be
decided by the Ministry of Corporate Affairs, Government of India ("MCA");
• Effective Date: Date on which the certified copies of the order
of the MCA sanctioning the Scheme are filed with the concerned Registrar of Companies;
• Scheme: Transfer of Demerged Undertaking:
Under the Scheme, the NMDC Iron & Steel Plant at Nagarnar,
Chhattisgarh ( "Demerged Undertaking") shall be demerged from NMDC Limited
("NMDC") into NMDC Steel Limited ("NSL"), which is currently a wholly
owned Subsidiary of NMDC;
• Scheme: Transfer of Assets and Liabilities:
All assets and liabilities of the Demerged Undertaking, except certain
assets/liabilities as specified under the Scheme, will be transferred to NSL at book value
appearing in accounts of NMDC on the Appointed Date;
• Consideration: As a consideration for transfer of Demerged
Undertaking to NSL, NSL shall, without any further application, act, instrument or deed,
issue and allot to all the equity shareholders of NMDC, whose names appear in the register
of members as on the Record Date (defined below), 1 (One) equity share of NSL of INR 10
each fully paid-up for every 1 (One) equity shares held in NMDC of INR 1 each fully
paid-up.
No cash consideration will be paid to NMDC on account of the transfer
of Demerged Undertaking and related assets / liabilities. Accordingly, demerger of the
Demerged Undertaking from NMDC into NSL will be tax neutral on NMDC as NMDC will not
receive any cash consideration;
• Record Date: Date to be fixed by the Board of Directors of NSL
and NMDC for determining the shareholders of the NMDC to whom fully paid up equity shares
of the NSL will be issued pursuant to the Scheme;
• Increase in Authorized Share Capital:
Upon the Scheme becoming effective, the authorized share capital of NSL
will automatically stand increased to INR 30,00,00,00,000 (Indian Rupees Three Thousand
Crores);
• Cancellation of existing shares of NSL: All the existing shares
of NSL, currently held by NMDC, shall stand cancelled;
• Mirror Shareholding: After the Scheme becomes effective, the
shareholding of NSL will 'mirror' that of NMDC; Accordingly, upon the scheme being
effective, the issued, subscribed and fully paid-up equity share capital of the resulting
company, NMDC Steel Ltd. shall be 293,06,05,850 equity shares of INR 10/- to reflect the
same / equal number of equity shares as NMDC and mirror shareholding pre the proposed
demerger.
• Listing: The new shares of NSL which are issued and allotted to
the shareholders of NMDC shall be listed on BSE Limited, National Stock Exchange of India
Limited and Calcutta Stock Exchange Limited, after obtaining the requisite approvals;
• Employees: All staff / workmen / employees engaged or employed
in relation to Demerged Undertaking as identified by the board of NMDC shall be deemed to
have become staff / workmen / employees of NSL from the Appointed Date;
• Shared Assets: NMDC and NSL shall enter into shared services
agreements and longterm supply agreement, as may be necessary, on terms and conditions
that may be agreed between NMDC and NSL and on payment of consideration on an 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 of
India Ltd, BSE Ltd and The Calcutta Stock Exchange Ltd.
Joint Petition dated 18.01.2022 between NMDC Ltd., (Applicant /
Demerged Company) and NMDC Steel Ltd. (Applicant / Resulting Company) has been filed
before the Ministry of Corporate Affairs, Govt. of India vide File No.24/1/2022-CL-III u/s
230 - 232 of the Companies Act, 2013 read with Govt. of India, Notification No.GSR.582(E)
dated 13.06.2017. Pursuant to an application by the Authorized Signatories of both the
companies.
The Demerged Company M/s NMDC Limited and Resulting Company M/s NMDC
Steel Limited have broadly prayed for relief (s) as detailed below:-
(i) To give directions for convening the meeting of the equity
shareholders of the Demerged Company, to consider and, if though fit, to approve, with or
without modifications(s), the Scheme of Arrangement between NMDC Ltd. and NMDC Steel Ltd.
and their respective shareholders and creditors (the Scheme)
(ii) To dispense with the requirement of convening the meeting of
secured creditors of the Demerged Company
(iii) To give directions for convening the meeting of the unsecured
creditors of the Demerged Company to consider and, if thought fit, to approve, with or
without modifications(s), the scheme
(iv) To dispense with the requirement of convening the meeting of
equity shareholders of Resulting Company.
(v) To dispense with the requirement of convening the meeting of the
unsecured creditors of the Resulting Company.
(vi) Directing issuance of notice of meetings of equity shareholders
and unsecured creditors of the Demerged Company.
(vii) Directing publications of advertisement of the notices of the
meeting of the equity shareholders and unsecured creditors of the Demerged Company in the
newspapers namely Times of India (English Edition), Dainik Bhaskar (Hindi Edition) and
Eenadu (Telugu Edition)
(viii) Directing service of Notice of the application on the Regional
Director (South East Region), Regional Director (North Western Region) Registrar of
Companies, Hyderabad, Registrar of Companies,
Chhattisgarh and Jurisdictional Income Tax Department.
MCA after considering the prayers and submissions made by the Resulting
Company, directed that the meeting of equity shareholders of the Resulting Company is
dispensed with since the Resulting Company has furnished the requisite consent
affidavit(s) of all the equity shareholders.
The Demerged Company has submitted that there was only one secured
creditor as on 30.09.2021 in the name of State Bank of India and the said Bank has
furnished its consent affidavit for the proposed scheme. Hence, the meeting of secured
creditor of the Demerged Company was also dispensed.
The Resulting Company has submitted a certificate from an independent
Chartered Accountant stating that there are no/nil secured creditor as on 30.09.2021. With
regard to the unsecured creditor, the Resulting Company has furnished a certificate from
an independent Chartered Accountant stating that there are two unsecured creditors as on
30.09.2021 and both the unsecured creditors of the Resulting Company have furnished their
consent affidavit to this ministry. Hence, the meeting of the secured and unsecured
creditors of the Resulting Company was also dispensed.
Pursuant to the Ministry of Corporate Affairs Order dated 11.04.2022, a
meeting of the Equity Shareholders of the Demerged Company has been convened on
07.06.2022 for considering the Scheme of Arrangement and Smt. Rasika
Chaube, Additional Secretary, Ministry of Steel, Government of India has been appointed as
the Chairperson of the Equity Shareholders meeting. Due to unforeseen circumstances
(unavailability of Chairperson) and due to unavailability of quorum, the meeting has been
adjourned to 28.06.2022.
Pursuant to the Ministry of Corporate Affairs Order dated 11.04.2022, a
meeting of the unsecured creditors of the Demerged Company whose debt is of a value more
than rupees one (1) crore as on 30.09.2021 has been convened on 07.06.2022 for considering
the Scheme of Arrangement. Smt. Rasika Chaube, Additional Secretary, Ministry of Steel,
Government of India has been appointed as the Chairperson of the unsecured creditors
meeting. The meeting was duly convened on 07.06.2022 for seeking the approval of the
unsecured creditors in the matter of Scheme of Arrangement and due to unavailability of
the Chairperson appointed by MCA, the meeting of the unsecured creditors is duly adjourned
to 28.06.2022.
The Demerged Company, NMDC Ltd. published the newspaper advertisement
regarding the adjournment of the meetings of Equity Shareholders and Unsecured Creditors
in Times of India, Eenadu and Dainik Bhaskar, stating the adjourned meetings to be held on
Tuesday, 28.06.2022 at the same time and through the same means (i.e. VC / OAVM).
(C) Extension of Mining Lease of Donimalai Iron Ore Mine (ML No. 2396)
for 20 years from 04.11.2018 to 03.11.2038 as per the provision of the Mineral (Mining by
Government Company) Rules, 2015
The Government of Karnataka, while renewing the lease of NMDC's
Donimalai Iron Ore Mine, had imposed a new condition asking for a premium of 80% on the
average sale value. As the demand of the State Govt. was not as per the provisions of the
MMDR Act -1957 and Mineral (Mining by Government Company) Rules, 2015, the company
requested the State Govt. to reconsider its decision.
Since there was no positive response from the State Govt, the company
has suspended its operations from 4th November 2018 and moved to the 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 Government of Karnataka issued an Order dated 17.08.2019
withdrawing the approval for extension of the Donimalai mining lease and with a direction
to the Director of DMG to auction the said block. In this regard, the Company on
19.08.2019 filed 'Revision application' before The 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, in the
presence of the CMD - NMDC Ltd. and senior officers of Centre and State Governments.
In the meeting it was decided to extend the Mining Lease of Donimalai
Iron Ore Mine with a temporary premium of 22.5 % of the average sale value published by
IBM. It was also decided in the meeting that Ministry of Mines, GoI will review the
"Mineral (Mining by Government Company) Rules, 2015" for suitable amendments to
decide the additional amount payable apart from the royalty / other statutory levies in
respect of Mining Leases of Government Companies granted prior to 12.01.2015 and a
High-Level Committee shall be constituted to examine the modalities in this respect.
Subsequently, on 29.11.2020, Ministry of Mines, Government of India has
given its approval for extension of Mining Lease of Donimalai Iron Ore Mine in terms of
the proceeding of the meeting held on 28/08/2020. On 01.12.2020, Government of Karnataka,
permitted NMDC to commence mining operations, as an interim measure with immediate effect
at Donimalai Iron Ore Mine for which NMDC shall unconditionally pay to the State
Government 22.5% of the IBM Sale Price (for Karnataka) apart from the Royalty and other
statutory levies.
On 17.12.2020, Govt. of Karnataka ordered for execution of conditional
mining lease deed of Donimalai Iron Ore Mine with effect from 03.11.2018 for a period of
04 years or till the implementation of High-Level Committee report, whichever is earlier.
Subsequently on representation of NMDC Ltd., on 10.02.2021 Govt. of
Karnataka issued a modified order for execution of conditional mining lease deed for a
period of 20 years i.e., up-to 03.11.2038 subject to the conditions in the Govt. Order
dated: 01.12.2020 and 17.12.2020. NMDC executed the conditional Mining Lease deed on
12.02.2021 and same has been registered on 16.02.2021.
Donimalai Iron Ore Mine of NMDC Ltd. has resumed mining operations
since 18.02.2021.
Further, it may be noted that Govt. of India has amended the MMDR Act -
1957 on 28.03.2021 and as per amended provisions all such Government companies or
corporations whose mining lease has been extended after the commencement of the MMDR
Amendment Act, 2015, shall pay such additional amount as specified in the Fifth Schedule
of the Act for the mineral produced after the commencement of the MMDR Amendment Act,
2021. For such Mining Leases of Iron Ore an additional amount equivalent to 150 percent of
the royalty will be payable. The additional amount shall be in addition to royalty or
payment to the District Mineral Foundation and National Mineral Exploration Trust or any
other statutory payment and the same is applicable to Donimalai Iron Ore Mine also.
(D) Impact of the Hon?ble Supreme Court of India Judgement with
reference to the Writ Petition (Civil) No.114/2014, dated 02.08.2017 State Govt. of
Chhattisgarh had been seeking compensation to be paid on the basis of the Common Cause
Judgement of Hon'ble Supreme court (Writ Petition Civil No 114 of 2014, dated 2nd August
2017) related to the mines in the State of Odisha. Show-cause notices were issued by the
Chhattisgarh State Govt. for which the company has all along been reiterating the fact of
nonapplicability of the said judgement of the Hon'ble Supreme Court in the state of
Chhattisgarh.
However, notwithstanding with the replies submitted by the company,
Chhattisgarh State Govt. issued Demand notices on 15.11.2019 for an amount of Rs 1,623.44
Crore (Bacheli - Rs 1,131.97 Crore & Kirandul Rs 491.47 Crore) to be deposited within
15 days.
The Company paid an adhoc amount of Rs 600 Crore under protest and
filed writ petitions in the Hon'ble High Court of Bilaspur, Chhattisgarh and a Revision
application with Mines Tribunal, Ministry of Mines, Government of India, New Delhi praying
to set aside the demand notices.
Hon'ble High Court of Bilaspur has heard the WPs on 19.02.2020. Hon'ble
High Court sought certain clarifications from the respondent & directed no coercive
action and listed the case for further hearing. Due to COVID-19 situation, no further
hearings could take place.
Revision application with Mines Tribunal, Ministry of Mines, Government
of India, New Delhi has been heard on 09.03.2022, in which representatives of the State
Government are directed to file comments/para wise reply within two weeks.
NMDC is pursuing the matter.
(E) Impact of Covid-19 Pandemic
(a) Production
The production performance of NMDC Ltd. during the FY 2021-22 was not
impacted due to Covid-19 as the company has taken adequate precautions to ensure safety of
the employees and workers. The company has undertaken an elaborate exercise of
administering vaccines to all our eligible employees as per the guidelines of Ministry of
Health & Family Welfare.
(b) Commercial
There was a limited impact of Covid-19 during the FY 21-22. During the
second wave, a partial lockdown was imposed which affected the demand supply dynamics of
iron & steel sector, the same affected the demand of raw materials e.g., iron ore
during Q-1 FY 21-22. As the restrictions were lifted in subsequent quarters, NMDC volumes
increased exponentially & as a result company could achieve more than 20% growth in
terms of volume over previous year.
(c) Finance
The COVID-19 had not impacted the operations of the company during the
FY 2021-22.
2.0 PHYSICAL PERFORMANCE
2.1 Production
| Product |
Achievement |
Percentage of change |
|
2020-2021 |
2021-2022 |
|
| Iron Ore (Million tonnes) |
34.15 |
42.19 |
(+) 23.54 % |
| Diamond (Carats) |
13,681 |
0.00 |
- |
| Pellets (Tonnes) |
83,751 |
1,82,298.77 |
(+)117.67 % |
3.0 SALES OF IRON ORE
|
Physical (in Million Tones) |
|
Value (Rs. in crore) |
|
| Particulars |
Achievement |
% of change |
Achievement |
% Of change |
|
2020-21 |
2021-22 |
|
2020-21 |
2021-22 |
|
| Domestic |
30.96 |
40.56 |
31.00 % |
13,484.01 |
25,537.47 |
89.39% |
| Export through MMTC |
2.29 |
0.00 |
% |
1,749.69 |
9.19 |
(-) 99.47% |
| Total Sales |
33.25 |
40.56 |
21.98% |
15,233.70 |
25,546.66 |
67.70 % |
3.1 Other Sales
| Products |
Achievement |
|
2020-21 |
2021-22 |
| a) Diamond |
|
|
| Sales (carats) |
22,249 |
25219 |
| Value (' in crore) |
21.10 |
62.93 |
| b) Sponge Iron |
|
|
| Sales (tonnes) |
- |
- |
| Value (' in crore) |
- |
- |
| c) Wind Power |
|
|
| Sales (lakh units) |
1.59 |
1.47 |
| Value (' in crore) |
5.17 |
4.99 |
| d) Pellet (In WMT) |
|
|
| Sales (In WMT) |
92,773 |
1,96,972 |
| Value (' in crore) |
73.50 |
222.11 |
4.0 FINANCIAL PERFORMANCE
4.1 Operating Results
| Parameter |
Achievement |
Percentage of change |
|
2020-2021 |
2021-2022 |
|
| Profit Before Tax (PBT) (' in crore) |
8,901 |
12,981 |
(+) 45.84 % |
| Profit After Tax (PAT) (' in crore) |
6,253 |
9,398 |
(+) 50.29 % |
| Net Worth (Rs. in crore) |
29,756 |
34,844 |
(+) 17.10 % |
| Book value per share (?) |
101.53 |
118.89 |
(+) 17.10 % |
| Earnings per Share (?) |
20.62 (*) |
32.07 |
(+) 55.53 % |
| (*) Adjusted on account of buyback) |
|
|
|
| There has been no change in the nature of business for the
year under review. |
|
|
|
4.2 Profit & Dividend
During the year under review, your Company has earned profit before tax
from continuing operations of Rs 12,981 crores on a turnover of Rs 25,882 crores in
comparison with previous year's achievement of Rs 8,901 crores and Rs 15,370 crores
respectively.
The Company has declared 1st Interim Dividend for FY 2021-22 @ Rs 9.01
per share in the month of Dec 2021 and 2nd Interim Dividend for FY 202122 @ Rs 5.73 per
share in the month of Feb 2022 resulting an outgo of Rs 4,319.72 crores. The share of
Government with equity stake of 60.79 % is Rs 2,626 crores.
4.3 TRANSFER TO RESERVES
The company proposed to transfer Rs 5,000 crore from net profit to
General Reserve.
4.4 MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL
POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF FINANCIAL YEAR OF THE
COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT: NIL
4.5 DEPOSITS
The company has not accepted any deposits covered under Chapter-V of
the Companies Act, 2013 during the year under review.
4.6 NON-CONVERTIBLE DEBENTURES (NCDs)
During the year under review, the company has not issued any
Non-Convertible Debentures (NCDs).
5.0 INTERNAL CONTROL SYSTEMS W.R.T. FINANCIAL STATEMENTS
Necessary disclosure in respect of Internal Control Systems and their
adequacy has been made in Annexure-C to the Independent Auditors' Report dated 26th
May, 2022 which forms part of the Annual Report.
6.0 (a) PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION
186 OF THE COMPANIES ACT, 2013
Necessary details in this regard have been disclosed in the financial
statements.
(b) PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
DISCLOSURES
Disclosure on related party transactions forms part of the Notes to the
Balance Sheet both of Standalone and Consolidated.
(c) MAINTENANCE OF COST RECORDS
Section 148(1) of the Companies Act, 2013 specifies the provisions of
maintenance of Cost Records of the company. The company is maintaining such records as per
Rule 4(2) of the Companies (Cost Records and Audit) Rules 2014 under both regulatory and
non-regulatory services.
7.0 (a) STATUTORY AUDITOR?S REPORT
The Audit Report for both Standalone and Consolidated Financial
Statements for the year 2021-22 is unmodified and does not contain any qualification,
reservation or adverse remark.
(b) SECRETARIAL AUDIT REPORT
The Secretarial Audit Report for the FY 2021-22 as done by M/s
Hanumanta Raju & Co., Company Secretary in whole time practice contains qualifications
and does not contain reservation or adverse remark.
NEW PROJECTS & BUSINESS DIVERSIFICATIONS:
In line with the Vision plan of augmenting its Production &
Evacuation capacity, technology upgradation, diversification & value-added products,
NMDC has taken up many ambitious projects. Action for new projects have been initiated.
During the financial year 2021-22, the details of Projects undertaken by NMDC are
summarized as under:
A. Ongoing Projects:
1. Screening Plant III - Kirandul Complex
2. Slurry Pipeline Project which includes facilities like 15 MTPA
Slurry Pipeline from Bacheli to Nagarnar along with 2.0 MTPA Ore Processing Plant at
Bacheli and 2.0 MTPA Pellet Plant at Nagarnar
3. Doubling of KK line between Kirandul & Jagdalpur
4. Additional Screening Line & up gradation of existing downhill
conveyor at Dep-5, Bacheli.
B. Projects in pipeline:
1. Screening Plant II- Donimalai Complex
2. New crushing Plant and Downhill Conveyor system at Dep-14 &11C
3. Town ship project at Kirandul
4. Township project at Donimalai
Projects / Schemes for capacity expansion
To augment the production and to improve the quality of product mix
from Bailadila Sector, the schemes like SPIN Kirandul, New Crushing Plant of Dep.14 &
11/C and Downhill conveyor, additional screening lines in Bacheli, Rapid Wagon Loading
System (RWLS) etc. are envisaged. Waste mining and increase in evacuation capacity being a
major area of focus for enhancing the life of mines, the schemes like beneficiation plant
at Bacheli & Kirandul and Slurry pipeline from Bacheli to Nagarnar has been taken up.
In Screening Plant-III project at Kirandul the site work in packages
like site development package, MRSS packages, Dry circuit (major technological package)
and RWLS are in progress.
The upcoming scheme in Donimalai Complex includes a Second Screening
Plant of 10.0 MTPA capacity for handling the ROM from both Donimalai & Kumaraswamy
mines in addition to the existing Screening Plant. Statutory clearances for 10.0 MTPA
Screening Plant-ll are awaited.
Projects / Schemes to enhance evacuation capacity
To augment the evacuation capacity from Bailadila sector, many projects
& schemes are taken up like doubling of KK line.
Doubling of KK line between Kirandul & Jagdalpur (150.462 kms) is
being executed by Railways as a Deposit work and overall progress for this work is 76 %.
Doubling of 85 Km rail line is already completed and is in operation. Another 21 km rail
line doubling is expected to be completed by August-22. Works are in progress in other
reaches and are expected to be completed progressively by FY 2023-24. The completion of
this project will augment the evacuation capacity of Bailadila sector through railway line
from 28 to 40 MTPA.
NMDC has taken up an ambitious project of laying Slurry pipeline from
Bailadila to Nagarnar and further up to Visakhapatnam. The Capacity of the line is 15 MTPA
and this will be associated with facilities like beneficiation plants at Kirandul &
Bacheli, pellet plant at Nagarnar. Laying of slurry pipeline between Bacheli and Nagarnar
, 2.0 MTPA Ore Processing plant at Bacheli and 2.0 MTPA Pellet Plant at Nagarnar is taken
up in Phase-1 for implementation.
Site development works of Ore Processing Plant (OPP) at Bacheli and
Pellet Plant at Nagarnar are completed along with soil investigation studies. Works orders
are already issued for packages like Main Receiving Substation, Slurry Pumping system,
Slurry pipeline laying package, technological package of Pellet plant and Enabling works
of Ore Processing Plant & Pellet plant and construction activities are in progress at
site.
Solar Power Projects
As a part of Govt. thrust to tap renewable energy sources, 1 MW
capacity grid connected Roof Top Solar (RTS) power plants are installed in various
production units of NMDC (Bailadila Iron Ore Mine, Kirandul Complex & Bacheli Complex
and Donimalai Iron Ore Mine, Donimalai Complex) and are in operation. With this, NMDC has
joined other major corporates in harnessing solar power which has assumed a greater
significance in recent times. Further tender for Supply, Installation, and Commissioning
of 425 kWp Roof Top Solar Power Plant in Bacheli Complex, Dantewada, CG was also awarded
in Feb-22.
Steel Plant Project at Nagarnar, Chhattisgarh:
The State of the art 3.0 MTPA steel plant at Nagarnar is at advanced
stage of construction completion and reaching its commissioning phase. Conducting cold
trial, preliminary Acceptance Test etc of individual as well as integrated test of
equipment under various Technological packages are in progress as pre-commissioning
activities. Pre-commissioning activity has been started with heating of Coke-Oven battery.
MECON has been awarded with the job of O&M (Operation & Maintenance) of plant
during commissioning and subsequent operation of the plant.
The plant will produce an impressive array of products viz. HR Plates,
API - 5L Quality Plates Sheets, HR Coils, High Carbon Steel, Silicon Steel and Automotive
Steel.
Initiatives for Technological upgradation
1. Development of Vision Enhancement System for Foggy weather for
Bailadila Complex (In Collaboration with CSIR-CIMFR)
To overcome the production loss due to foggy weather in the mine where
visibility will be around 1 to 2 meters during monsoon season, NMDC and CSIR- CIMFR has
made an agreement on 22.07.2019 for R&D collaborative project "Development of
Vision Enhancement System for Foggy Weather" at BIOM Bacheli Complex Deposit 5 with
total project cost of Rs 509.75 Lakhs of which Rs 230.51 lakhs was funded by Ministry of
Electronics and Information Technology (MeitY) for technology development.
"Vision Enhancement System" is an intelligent driver
assistance technique for effective visualization of haul road i.e., dump truck
transportation path in the mine as well as loading / unloading areas during foggy weather.
The System was installed last year (FY 21-22) during rainy season and
it was found that the vision for dumper operation needs further improvement. Accordingly,
further intensive lab test and R & D activities have been undertaken for improvement
in the system which will be tested during forthcoming monsoon in the month of July-Aug'22.
2. Fleet Management System for BIOM Bacheli & Kirandul Complex
As part of digital transformation to set the legacy in mining sector
and increase efficiency, productivity and safety, State of the Art Technology driven Fleet
Management System (FMS) is being implemented for BIOM Bacheli Complex and BIOM Kirandul
Complex.
Fleet Management solution includes complete software and hardware
structure which is designed for online monitoring and control of tracking devices,
installed on the vehicle being used for carrying out production activity in the mine. The
effective outputs from the system are available to the user(s) online for quick monitoring
and decision making also long-term statistical reports can be extracted for long-term
management, planning
and integration with ERP (SAP HANA). The features of the system are
High & Low Precision Guidance System, Proximity Awareness, Health Monitoring, Fuel
Management, Tire Pressure & Temperature, Fatigue Monitoring and Crusher Management
NMDC has issued Letter of Intent (Lol) to M/s. Amnex Infotechnologies
Private Limited Ahmedabad for the work of "Implementation of Fleet Management System
at BIOM-Bacheli Complex and BIOM-Kirandul Complex of NMDC Limited" at a total
contract price of Rs 47.08 Cr, on 27.09. 2021.Letter of award of Contract has been issued
on 04.10.2021 and Contract Agreement has been signed on 14.10.2021.
M/s Amnex has started the work of survey of Mining Machineries for
implementation of Fleet Management System at Bacheli and Kirandul Complex &
preparation of Implementation Plan.
The time line for completion of all modules except Health Monitoring
System is 9 Months. For Health Monitoring Modules, additional 6 Months' time will be given
for implementation.
3. Fully Automated dispatch Iron ore Sampling and Analysing System for
BIOM, Bacheli, Kirandul Complex and DIOM Donimalai
In order to reduce customer dissatisfaction, eliminate human errors in
collection, preparation and analysis of samples, transparency & accuracy in quality
analysis, digitalization, storage and retrieval of large records along with integration in
ERP (SAP HANA) and also as part of overall ramp up in production & dispatch of iron
ore the proposal has been taken up and is under process for issuing tender.
4. Automated Capturing of Production & Dispatch data on real time
basis from OCSL Plant Belt Scales of Kirandul, Bacheli & Donimalai Complex.
As part of first phase of digital ERP initiative in mining sector and
to reduce human interference, increase productivity, utilize man power efficiently,
storage of historic data in easily retrievable format, improve reliability of operation,
having diagnostics, centralized control and integration with ERP (SAP HANA), it is
proposed to integrate all the relevant belt scales of each OCSL Plant of Kirandul, Bacheli
& Donimalai Complex with a centralized web based SCADA server for on line collection
& display of production & dispatch data on real time basis in all control rooms of
OCSL plants and integration with ERP dashboard.
The work has been awarded to M/s Prudent Automation Pvt. Ltd on
07.05.2022 with a completion period of 60 days from the date of approval of drawings i.e.,
19.05.2022.
5. Implementation of Integrated Print Facility System with Freight
Online Information System (FOIS) of railways at Loading Plant BIOM Bacheli Complex
As part of the drive towards reduction of turnaround times for rakes
and to increase dispatches and various other benefits, railways (ECoR) had made it
mandatory for implementation of integration of wagon loader print facility with FOIS at
private railway sidings including BIOM Kirandul & Bacheli Complex.
The work was awarded to M/s Prudent Automation Pvt Ltd and the
implementation of the above in NMDC Ltd was taken up and completed first at NMDC Kirandul
mechanized railway siding on 15.06.2021.
In a similar way implementation was completed at NMDC Bacheli
mechanized siding on 25.03.2022 and the system is working satisfactorily.
6. Replacement of existing Relay Logic Circuit (RLC) with Automation
System in Crushing Plant & Downhill D-14 of BIOM Kirandul Complex
Crushing Plant & DH-14 of Kirandul Complex was commissioned in the
year 1966 and the existing electrical control system for process is based on Relay Logic
Circuit (RLC). The system was initially supplied by M/s YASKAWA, Japan and is in operation
till date and has become obsolete.
In view of the digital transformation drive, in mining sector and to
increase the efficiency, productivity, storage of historic data in easily retrievable
format, improve reliability of operation, having diagnostics, centralized control and
integration with other plants & ERP (SAP HANA) it is proposed to upgrade the system
from RLC to latest automation system. The proposal is in approval stage and further
implementation will be taken up after award of work.
7. Replacement of existing Relay Logic Circuit (RLC) System, LTMCC,
control & communication cables etc with E-House, Automation System, & IMCC
(Intelligent MCC) for Loading Plant of BIOM Kirandul Complex
Loading Plant, Kirandul Complex was commissioned in the year 1966 and
the existing electrical control system for process is based on Relay Logic Circuit which
is operated continuously 24 x 7, 365 days a year for dispatch of iron ore through rakes
and direct feeding through conveyor BC 614 to M/s AMNS. The system was initially supplied
by M/s YASHKAWA, Japan.
Complete refurbishment of all Switchgears, different types of cables,
control room, LTMCC, upgradation of RLC with latest automation has been taken up in two
phases. In the first phase replacement of medium voltage switchgears and cables and in the
second phase the present proposal has been taken up.
The present proposal caters to increase in the efficiency,
productivity, storage of historic data in easily retrievable format, improving reliability
of operation, having diagnostics, centralized control and integration with other plants
& ERP (SAP HANA). The proposal also includes supply and commissioning of E-House for
automation & IMCC and is in approval stage and further implementation will be taken up
after award of work.
8.1 OVERSEAS PROJECTS / NMDC GLOBAL Australia
Legacy Iron Ore, Perth, Australia
Legacy Iron Ore Ltd is an ASX listed entity based in Perth, Australia
with a focus on Gold, Iron ore and base metals. NMDC has 90.02% equity in the company.
Legacy Iron holds significant interest in Mt Bevan, Magnetite project
in Western Australia with 1.17 billion tonnes of JORC Inferred & Indicated resource
(@30.6% Fe). Legacy Iron also has Gold, Base metals & Tungsten tenements in Western
Australia. Legacy has 22 tenements-Iron ore (01 tenement), Gold (17 tenements), Base
Metals and Tungsten (04 tenements). All these tenements are in different exploration
stages. Mt Celia is reaching Pre-feasibility Stage and Mt Bevan has defined Iron Ore
resources. Other projects have valid targets of different commodities.
Exploration: So far Legacy has conducted 19,111m of RC and 2850m of
diamond drilling in Mt Beven Magnetite Project, 2429 Mts RC drilling for Mt Bevan Nickel
exploration, 30,173 Mts RC drilling and 1150 Mts diamond drilling in gold tenements and
2133 Mts drilling in Base metal tenements.
JORC resource at Mt. Celia Gold project now stands at 312,600 ounces
@1.39 g/t gold. Legacy Iron is conducting Pre-feasibility studies in its Mt Celia Gold
project with an aim to develop viable gold mining project.
Joint Development of Mt Bevan: To progress Mt Bevan iron ore project
and conduct the prefeasibility studies, Legacy (60% stake) along with its partner Hawthorn
Resources (40% stake) had signed JV agreement with M/s Hancock Magnetite Prospecting Ltd.
Pursuant to this arrangement,
M/s Hancock will invest and undertake the developmental works in Mt
Bevan. After completion of the pre-feasibility studies, Legacy will have 29.4% stake in Mt
Bevan JV.
International Coal Ventures Pvt. Ltd. (ICVL)
ICVL, a joint venture company of SAIL, RINL &NMDC, acquired a
coking/thermal coal mine in Mozambique in 2014 and operation of the same was taken over by
ICVL. NMDC holds 26% stake in ICVL. Benga mine, one of the operational asset of ICVL, has
produced about 1.747 Million tons in FY'22 (Both low ash & high ash) and exported 1.54
Million Tons.
8.2 Leases for minerals Iron Ore
lron Ore Mining Leases:
Your Company is having Five Iron Ore Leases in Chhattisgarh and two
Iron Ore Leases in Karnataka. The present status is as under:-
In Chhattisgarh
| Sl. No. |
Name of Mining Lease |
Area in Ha |
ML Validity |
| 1 |
Bailadila Deposit-11 (A,B & C) |
874.924 |
10/09/2037 |
| 2 |
Bailadila Deposit-14 |
322.368 |
11/09/2035 |
| 3 |
Bailadila Deposit-14NMZ |
506.742 |
06/12/2035 |
| 4 |
Bailadila Deposit-5 |
540.05 |
10/09/2035 |
| 5 |
Bailadila Deposit-10 |
309.34 |
10/09/2035 |
In Karnataka
| Sl. No. |
Name of Mining Lease |
Area in Ha |
ML Validity |
| 1 |
Donimalai Iron Ore Mines |
597.54 |
03/11/2038 |
| 2 |
Kumaraswamy Iron Ore Mines |
639.80 |
17/10/2022 |
Kumaraswamy ML No. 1111- Extension of Kumaraswamy ML which is expiring
in Oct-2022.
Your Company submitted application to Government of Karnataka on
22-02-2021 for extension of Mining Lease of Kumaraswamy Iron Ore Mines M.L. No. 1111 for a
period of 20 years. Director (Mines) Department of Mines and Geology, Government of
Karnataka forwarded the application on 05-01-2022 for the extension of Kumaraswamy Iron
Ore Mining Lease (M.L. No. 1111) to the Secretary (MSME & Mines), Commerce and
Industries Department, Govt of Karnataka. Extension of Kumaraswamy ML is awaited.
Iron ore: In Jharkhand
Sasangada
A JV Company (NMDC 60% & JSMDC 40%), Jharkhand National Mineral
Development Corporation Limited (JNMDC) has been incorporated at Ranchi. DMG, Govt of
Jharkhand has granted PL for iron ore & Manganese in Sasangada NE area in favour of
JNMDC Ltd for a period of 3 years. Detailed Geological mapping and topographical survey
completed. Due to delay in grant of forest permission, drilling could not be carried out
in the lease period. As suggested by Ministry of Mines, Govt of India, JNMDC requested the
Secretary, Dept of Industries Mines & Geology, GoJ, for reservation of Sasangada Iron
ore and Manganese deposit under Section 17A(2A) of MM(D&R) Amendment Act 2015 for
grant of Prospecting and Exploitation.
Director (Mines), DMG, GoJ suggested that, JNMDC to submit Fresh
Composite Licence application after approval from JNMDC Board as per Section 17A of
MM(D&R) Amendment Act,2021.The matter is being pursued with Govt. of Jharkhand for
reservation.
Ghatkuri
Your Company has submitted a proposal to the Secretary, Dept. of
Industries Mines & Geology, Govt. of Jharkhand for reservation of Ghatkuri Iron ore
deposit, West Singhbum District, under Section 17A(2A) of MM(D&R) Amendment Act 2015
for Prospecting and Mining operation in favour of JNMDC. As per carrying capacity studies
of Saranda Region conducted by MOEF&CC the applied area falls under Elephant Coridor
which is no mining zone. Your Company requested Addl. Sec. MoS, GoI on 01-02-2021 to take
up the matter with MOEF &CC for exempting the Ghatkuri Iron Ore area from conservation
zone and keep it under Mining Zone so that this block can be reserved for NMDC. The Matter
is being pursued with GoJ and MoS, GOI.
Gold: In Jharkhand
Gold & associated mineral Deposit:
Your company submitted application to the Secretary cum Commissioner,
DMG, GoJ on 0101-2019 for proposal to reserve 24.80 Sq. Km. area in Kuchai Tehsil,
District Saraikela-Kaswan, Jharkahnd, under Section 17A (2A) of MM(D&R) Amend. Act,
2015 for prospecting and mining operation of Gold & associated minerals. The matter is
being pursued with Govt. of Jharkhand for reservation.
Various minerals: In Jharkhand
Tambadungri Copper, Nickel, cobalt and molybdenum mineral -
Your Company submitted the proposal to the Secretary-cum-Commissioner,
Dept. of Mines & Geology, Govt. of Jharkhand, vide letter dated 30.01.2019 to reserve
an area of 16.70 Sq. Km in Saraikela-Kharswan district, Jharkhand under Section 17A(2A) of
MM(D&R) Amendment Act 2015 for grant of Prospecting and Mining operation of Copper,
Nickel, cobalt and molybdenum mineral. The matter is being pursued with Govt. of Jharkhand
for reservation.
In Karnataka Iron ore
Ramandurg Iron Ore Mine- Your company requested to Ministry of Steel,
Govt of India on 20-06-2020 to take up the matter with MoM, GoI to reserve Ramandurg Iron
ore deposit (area - 5.17 sq. km) in favour of NMDC Ltd under section 17A(1A) of
MM(D&R) Act,1957. Matter is being pursued with MoS, Govt. of India and Govt. of
Karnataka.
Other Minerals
Your company has submitted a proposal to the Director, DMG, Govt of
Karnataka to reserve 24.95 Sq. Km. area for lithium and other associated elements in
Raichur District, Karnataka under Section 17A (2A) of MM (D&R) Amendment Act, 2015 for
grant of prospecting and mining operation. Sr. Geoologist, DMG, Raichur has submitted his
recommendation along with Technical Report to Director, DMG, GoK for reservation of
applied area in favour of NMDC for Prospecting and Mining Operations. The matter is being
pursued with Govt. of Karnataka.
In Odisha
Iron & Manganese Ore
Your Company is pursuing for reservation for Malangtoli, Mankadnacha,
Khandadhar (A &
B Blocks), & Rakma iron ore deposits and Panduliposi Iron Ore &
Manganese Deposit and Kansa block for Nickel. NMDC has carried out detailed exploration of
Malangtoli Iron ore deposit, Odisha during 1972-77 and established mineable reserve of 340
Million tonnes.
Your Company is putting efforts and persuing the matter with Ministry
of Mines, Govt of India through MoS, GoI for reservation of Malangtoli Iron Ore Block in
favour of NMDC. Due to continuous persuasion of your Company, Ministry of Mines,
Govt of India sent a letter to Govt of Odisha on 0401-2022 regarding
their comments on the instant proposal and observation made by IBM, Nagpur.
The matter is being pursued with Govt of Odisha for reservation in
favour of NMDC Ltd.
In Madhya Pradesh
Tripartite MoU among GoMP (MRD, through DGM), MPSMCL & NMDC was
signed for geological and geophysical exploration in various Districts of M.P. In this
regard, Govt. of Madhya Pradesh issued Gazette Notifications of 3 iron ore prospective
blocks, 20 diamond prospective blocks and 1 for various minerals prospective which are
applied under MoU for exploration and subsequent reservation.
Status of Exploration Works:
Iron Ore Prospective Blocks:
Sidhi Block in Sidhi & Singrauli, Districts
a) Identified 5 iron ore sub blocks. Geological mapping, Geophysical
Surveys and Geochemical Mapping completed in 5 potential sub-blocks. Topographic Surveys
using SP2 60 GNSS completed. To establish the quantity and grade, a total of 964 meters of
core drilling carried out. Chemical analysis of core samples is under process.
b) Dhaurra block - Based on Geophysical survey, Geological mapping and
surface geochemical sampling, one low grade iron ore body has been identified.
c) Dulchipur-Bagroda block- Based on Geological field traverses and
surface geochemical sampling, one low grade iron ore body has been identified.
Diamond Prospective Blocks (3 Large Block,
5 Small Blocks and 12 Additional Blocks):
Remote Sensing Studies have been completed in collaboration with NRSC.
Chhattarpur Panna Block 1, Chhattarpur Panna Block 2 and Damoh Block, Panna (5 Prospective
Blocks) and Additional 12 Diamond Blocks.
> Established several target areas after conducting ground magnetic,
VLF-EM & Gravity surveys and stream sediment sampling. Also demarcated several
additional anomalous areas in the diamond blocks by processing the Raw Aeromagnetic Data
obtained from GSI in Diamond Blocks.
> APCCF (LM), Bhopal granted permission for drilling in 5 Blocks (2
Large Blocks & 3 Additional Blocks). Drilling party selected through open ternder.
Total 3882 meters of drilling completed in 5 blocks and balance drilling in revenue areas
is under progress.
> Matter is being pursued with Forest Dept. for obtaining permission
for drilling in 4 Additional Blocks.
Prospective block for various minerals:
After Remote Sensing Studies and detailed Geological traverses one
Ferro -Manganese block identified in Jabalpur -Katni Block. Large scale geological
mapping, surface Geochemical Mapping and Ground Geophysical Survey (Magnetic survey) and
Topographical survey completed in one identified Ferro -Manganese sub block. Core drilling
planned to establish the quantity and grade. Forest Permission obtained for core drilling
in one Manganese Block (14 BHs) from APCCF (LM),
Bhopal. Exploratory drilling will be conducted shortly.
Govt. of M.P. granted working permission for reconnaissance survey for
various minerals in Jabalpur, Katni and Mandla Districts and NMDC identified areas for
Manganese, Ferro-Manganese and Bauxite for further exploration. Geological mapping
completed in 2 identified bauxite sub blocks and chemical analysis is under progress.
In Andhra Pradesh
Your Company has applied for Ramgiri prospective block for Iron Ore in
Anantapur district. NMDC has requested State Govt. to reserve this block in favour of NMDC
under 17A (2A) of MM (D&R) Amendment Act, 2015.
Your Company has applied for Peravali - Betapalli in Kurnool &
Anantapur Districts; Rajagollapalli in Chittoor district and Konetirajupalem -Kundam block
in Nellore district for Gold and associated elements. NMDC has requested State Govt. to
reserve these blocks in favour of NMDC under 17A (2A) of MM (D&R) Amendment Act, 2015
for Prospecting & Mining. The matter is being pursued with Govt of AP.
In Bihar
Your Company requested Chief Secretary, Govt. of Bihar (GoB) for
provision of free area/ block for exploration for Gold & Associated Elements in Jamui
Dist., Bihar. Chief Secretary forwarded the application to Prin. Sec, Mines & Geology
Dept., GoB for further necessary action. The matter is being pursued with Govt of Bihar.
Exploration under Sub-section (1) of section (4) of MM (D&R) Act,
1957 in MoM, Gol allotted Blocks Under NMET.
Your company was allocated 5 blocks (one iron ore block each in
Jharkhand & Maharashtra; and 2 Gold blocks in Karnataka & 1 Gold block in M.P.) by
MoM, Gol for G4 level exploration.
All the blocks were explored successfully and Geological Reports were
submitted to NMET & concerned State Governments. NMET reimbursed an amount of Rs 3.42
Crores to NMDC as per Schedule of Charges fixed by MoM, Gol and claim made by NMDC.
Your Company is putting efforts to get approval from NMET, Ministry of
Mines , Govt of India for the project proposal entitled "Reconnaissance Survey (G4)
for Genesis of BIF hosted high grade iron ore of Bailadila Deposits with special reference
to geological controls on mode of occurrence of ORE- BENEATH-ORE and implication on future
game changing exploration in India".
Chigargunta-Bisanatham gold block-
Your Company has become preferred bidder for Chigargunta-Bisanatham
gold block for Mining Lease (ML area 263.01 Ha.) located in Chittoor Dist. in Andhra
Pradesh through e-auction route with a final bid offer of 38.25%. The matter is subjudice
due to pendency of Writ Petition filed by M/s Bharath Gold Mines All Employees Industrial
Cooperative Society Ltd. before Hon'ble High Court of Andhra Pradesh. The matter is being
pursued with Govt. of Andhra Pradesh for issuing LOI in favour of NMDC.
Drone based Mineral Exploration NMDC-IIT, Kharagpur.
Your Company has signed Contract research agreement on 16/03/2022 with
Geology & Geophysics Dept. & Mining Dept. of IIT, Kharagpur.
NMDC-CMDC Limited (NCL) a JV Company of NMDC Limited & CMDC Ltd:
NMDC-CMDC Limited (NCL) is a Joint venture Company of NMDC Limited and
CMDC Limited with a share capital ratio of 51% and 49% respectively. The present status of
all the projects of the Company is as follows:-
Bailadila Deposit-4
Ministry of Mines, GOI has reserved Bailadila Iron Ore Deposit-4 an
area of 646.596 ha in favour of NMDC-CMDC limited (NCL) under section 17A (1A) of MMDR
Act, 1957 vide their Gazette Notification no. 697(E) dated 30/09/2019 for a period of 05
years for prospecting and mining operation. MRD, GoCG has issued LOI for grant of ML vide
letter dated 26/06/2021 in favour of NCL for five years. The Mining Plan of Dep-4 has been
approved by IBM, Raipur on 24/09/2021. NCL has applied for obtaining environment clearance
under Environment Protection Act, 1986 and Forest Clearance under Forest Conservation act,
1980.
Bailadila Deposit -13
Mining Lease was granted for Bailadila Iron Ore Deposit-13 over an area
of 413.745 Ha in favour of NMDC Limited for 50 years by State Govt. of Chhattisgarh vide
order no. F3-84/05/12 dated 07/01/2017 and Lease deed for the same has been executed on
10/01/2017.
As per JV agreement dated 27th March 2007 by and between
CMDC and NMDC Ltd., mining lease for Bailadila Iron Ore Deposit-13 had to be transferred
in the name of NMDC-CMDC Limited (NCL) and then NCL would undertake all the required steps
for development and operation of the Mine. Further, Mining Lease Grant Order No.
F3-84/95/12 dated 07/01/2017, in respect of Deposit-13 issued by
State Government of Chhattisgarh stipulate that after the execution of
the lease deed, NMDC will transfer the Mining Lease to the JV Company NMDC-CMDC limited'.
Mineral Resource Department, Government of Chhattisgarh, has issued an
order no. F3- 84/1995/12 dated 06/11/2017 for transferring the mining lease of Bailadila
Iron Ore Deposit-13 in favor of NMDC-CMDC Limited. Mining Lease of Deposit-13 has been
transferred in favour of NMDC-CMDC Limited (NCL) on 04.12.2017. On 02.07.2018 M/s Adani
Enterprises Limited has been appointed as MDO for Bailadila Iron Ore Deposit-13.
MoEF&CC, GOI, has accorded transfer of Environmental Clearance in
name of NMDC-CMDC Limited from NMDC on 12.12.2019. Final FC under Section 2(ii) of Forest
Conservation Act 1980 was granted over an area of 315.813 Ha. in favour of NMDC Limited by
MoEF&CC on 09.01.2017. Action has been initiated for transfer of existing FC in favour
of NCL. CECB granted approval to NCL for consent to Operate 2MTPA on 27.04.2019.
The Revised Mine Plan of NCL was approved by IBM, Raipur on 06.03.2019
for a capacity of 10 MTPA. The validity of the Mining Plan of Deposit-13 was up to March
2021. Hence, Revised Mining Plan for the period 2021-26 has been prepared by NMDC and the
same was approved by IBM Raipur on 12.01.2021.
District administrator, Dantewada issued orders to stop all project
activities of Dep-13 on 11.06.2019 due to protest by local villagers against MDO and
demanding enquiry against FRA certificate issued by Gram Sabha. Forest Department, GOCG,
Raipur has issued show cause notice to NMDC for cancelling the Stage-II Forest clearance
of Deposit-13 on 06.03.2020 considering the report of District Administrator, Dantewada to
nullify the Gram Sabha proceedings. NMDC-CMDC Limited (NCL) has submitted the reply to the
forest Department, Govt. of Chhattisgarh against the show cause notice issued for
cancelling the Stage- II Forest clearance of Deposit-13.
MRD, Govt. of Chhattisgarh has issued a notice to NMDC-CMDC Limited
(NCL) for lapsing the Mining Lease of Deposit-13 for non-commencement of mining operation
within 2 years from grant of mining lease under Rule 20(3) of MCR 2016 on 05.03.2020.
NMDC-CMDC Limited (NCL) has submitted the reply to the MRD, GOCG against the notice issued
for lapsing the Mining Lease of Deposit-13 for non-commencement of mining operation within
2 years from grant of mining lease under Rule 20(3) of MCR 2016.
NCL vide letter no. NCL/HO/Dep-13/ ML/2020/833/01 dated 25.03.2021 has
submitted Rs 1,00,000/- (Rs. One Lakh) towards revival of mining Lease of Bailadila Iron
Ore Deposit-13 under Rule 20(5) of MCR (other than atomic and hydro carbons energy
minerals) 2016 vide Challan no: 146803648 dated 23.03.2021.
NCL vide letter no. NCL/HO/Dep-13/ML/2022/1014 dated 14.02.2022 has
again requested Under Secretary, MRD, GoCG for providing suitable decision in the matter
of lapsing of mining lease, so as to start the development and operation of Deposit-13.
Also, NCL vide letter no. NCL/HO/Dep- 13/ML/2022/1015 dated 14.02.2022 has requested Dy.
Secretary (Forest), GoCG for providing suitable decision in the matter of cancelling the
Stage-II Forest clearance of Deposit-13, so as to start the development and operation of
Deposit-13.
Baloda - Belmundi Diamond Block
The Company has submitted the proposal to the Secretary, MRD, Govt. of
Chhattisgarh for Baloda - Belmundi Diamond Block over an area of 156.80 sq km in Saraipali
Tehsil, Mahasamund Dist. for reservation under section 17A (2A) of MM (D&R) Amendment
Act, 2015 for prospecting and exploitation.
Ministry of Mines, GOI vide G.S.R.744(E) dt 14.10.2021 granted
reservation of Baloda-Belmundi Diamond Block for PL or ML in favour of NMDC- CMDC limited
under section 17A(1A) of MMDR Act, 1957. NCL vide letter dated 13.01.2022, submitted
application to Secretary, MRD, GoCG for grant of Prospecting License for Baloda-Belmundi
Diamond Block.
Bailadila Deposit No.1 and 3 & 8
The Company has submitted proposal to the Secretary, MRD, GoCG dated
06/10/2021 & 25/10/2021 to reserve Dep. No. 1, 3&8 respectively in favour of
NMDC-CMDC Limited (NCL) under section 17A (2) of MM (D&R) Act, 1957.
MRD, GoCG vide letter dated 24.11.2021 has recommended to MoM, GOI for
reservation of 21.3 Sq.km area of Dep-1 mine in favour of NMDC- CMDC Limited under rule
17A(2) of MMDR Act 1957 (as amended) for undertaking prospecting followed by mining
operations.
9.0 SUBSIDIARY / ASSOCIATE / JOINT VENTURE (JV) COMPANIES MONITORING
FRAMEWORK
a) As on 31.03.2022, NMDC has 6 subsidiaries and stake in 5 Associate
and 5 JV Companies. The names of these Companies and percentage of NMDC stake in these
companies are as follows:
*Under closure.
# Voluntary Liquidation - NCLT, Hyderabad bench dissolved NMDC Power
Limited vide order dated 14.10.2021.
## Voluntary Liquidation - NCLT, Kolkata bench disposed of Jharkhand
Kolhan Steel Limited vide order dated 17.12.2021
###Govt. of India, Ministry of Corporate Affairs vide its letter dated
16.08.2021 inter alia, communicated that pursuant to sub-section (5) of section 248 of the
Companies Act, 2013, the name of M/s. NMDC- SAIL Ltd. has been struck off by Registrar of
Companies and the said company is dissolved.
The subsidiaries of NMDC are Board managed with the primary interest to
manage such Companies in the best interest of the shareholders. The framework for
Subsidiary / Associate / JV Companies are as under:-
i) All investments in these Companies are approved by the Board of
Directors.
ii) The Company nominates its representatives on the Board of these
Companies.
iii) The minutes of the Board meeting of these Companies are placed
before the Board of NMDC Limited.
Notes:
Subsidiary / Associate / Joint Venture Companies have been categorized
in line with disclosures as made in the financial statements.
10.0 ENVIRONMENT MANAGEMENT:
NMDC has obtained the Environmental Clerance (EC) under EIA
notification 2006 from MOEF&CC for regularisation of Deposit-11 ML for the production
capacity of 11.30 MTPA ROM Iron Ore. Amendment of existing Environmental Clerance of
14/11C by excluding 11C part (1.5 MTPA Iron Ore Production), modifying to
Deposit-14&14NMZ for the production capacity of 10.5 MTPA ROM production obtained from
MOEF&CC on 1.12.2021.
Your company has also obtained TOR from MOEF&CC on 22/3/2022 for
capacity expansion of Deposit-14 ( from 5 to 10 MTPA ROM Iron Ore) & Deposit-14 NMZ
(from 5.5 to 8.5 MTPA ROM Iron Ore). The work order was issued for appointment of
QCI/NABET consultant for preparation of EIA/ EMP report. The baseline studies are under
progress covering pre-monsoon season'2022.
Your company is in the process of enhancing the ROM Iron ore production
capacity of Kumaraswamy Iron Ore Mine from 7 to 10 MTPA. The public hearing was
successfully held on 22.3.22 at KIOM. The action plan is under progress for the public
hearing demands. The final EIA/EMP report, Form- II etc will be uploaded in PARIVESH
shortly for Expert Appraisal Committee for obtaining of EC.
Your company is in the process of enhancing the ROM Iron Ore production
capacity of Bailadila,
Deposit-5 from 10 to 12 MTPA of ROM Iron Ore. QCI/NABET accredited
consultant has been appointed for preparation of EIA/EMP report in line with the
MOEF&CC circular issued on 11.4.2022 upto 20% based on the environmental safeguard
conditions. The baseline studies are under progress covering pre-monsoon'2022.
Your company has got valid operating consents from State Pollution
Control Boards for all production projects. The Company obtained renewal of Consent to
Operate under Air (Prevention & Control of Pollution) Acts 1981 and Water (Prevention
& Control of Pollution) Act 1974 for all projects.
Your company also obtained the consent for operation of 100 bedded
Hospital at Bacheli and is valid till 27/8/2026.
Your company also obtained authorization under Hazardous Waste
Management & Transboundary movement Rules 2016 from CECB for Bailadila Deposit-5 for
handling 100 KL used oil. The authorization is valid till 2/8/2025.
Your company obtained final forest clearance from MoEF&CC,
Integrated Regional Office, Raipur on 21/12/2021 for diversion of 7.116 Ha of forestland
for associated facilities for Iron Ore Beneficiation Plant at Bacheli.
The sub-committee comprising of Expert Appraisal Committee,
representatives of MOEF&CC, Delhi, Representatives of MOEF&CC, Nagpur & Bhopal
and Field Director (Panna Tiger Reserve) visited the Panna Diamond Mining Project, Panna
on 29th-31st October'2021.
Your Company has amended Tripartite agreement and released Rs 699 Lakhs
in December 2021 for implementation of Dhurli Samuh Gramin Jal Praday Yojana in 24 no.s
villages under Dantewada District, Chhattisgarh. The total revised cost for implementation
of the above water supply scheme is Rs 5453.85 Lakhs.
Your company is taking utmost care for environmental protection and
ecological restoration work that includes plantation in and around the lease areas,
construction and repair of buttress walls, check dams, check bunds, garland drains,
rainwater harvesting pits, broadcasting of seedlings and laying of geo-coir matting on the
inactive waste dumping sites are being implemented.
Your Company is carrying out greenhouse gas (GHG) accounting studies
for the three iron ore mining projects, environmental monitoring studies covering all
environmental attributes, ground water quality & water levels by recognized
laboratories. The studies indicated that all environmental parameters are found well
within the limits.
11.0 SAFETY
Mine Safety - Activities
NMDC has its training centers in all its projects. They are equipped
with infrastructure as required under Mines Vocational Training Rules. These centers cater
to the needs of basic training, refresher training and training for skilled workers and
also for those injured on duty.
In each mining project of NMDC sufficient number of workmen inspectors
are nominated/appointed for mining operations, mechanical and electrical installations as
per statutory requirements.
Mine Level Tripartite Safety Committee Meetings (MLTSCM) are being
conducted once in a year at Project Level with Senior Officials, Union Representatives and
DGMS Officials in which Safety Performance and its appraisal are made and the
recommendations are implemented.
Corporate Level Tripartite Safety Committee Meeting is being held
regularly once in a year at Head Office after completing the Mine Level meetings at all
Mines.
Safety Committees have been constituted in every operating mine and pit
safety meetings are held every month for discussing the safety matters and corrective
actions related to work atmosphere. Man days lost per 100000 man days worked for the year
2021-22 is 2.16 and 3.69 for the year 2020-2021.
Integrated Management System (IMS)
Comprising of Quality Management System (QMS) - ISO 9001:2015;
Environmental Management System (EMS) - ISO 14001:2015; Occupational Health & Safety
Management System (OHSMS) - ISO 45001:2018 & Social Accountability - SA 8000:2014
Certification Standards.
All the NMDC Production Projects viz. Bailadila Iron Ore Mine, Kirandul
Complex (BIOM, KC); Bailadila Iron Ore Mine, Bacheli Complex (BIOM, BC); Donimalai Iron
Ore Mine & Kumarswamy Iron Ore Mine, Donimalai Complex (DIOM & KIOM); Diamond
Mining Project, Panna (DMP, Panna) including Research & Development Centre (R&D
Centre) are accredited with Integrated Management System (IMS).
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.
12.0 IMPLEMENTATION OF INTEGRITY PACT:
With the objective of improving transparency in procurement, NMDC had
entered into MOU with Transparency International India for implementation of Integrity
Pact Programme during September 2007. NMDC is the first Mining Navratna Company which
entered into Integrity Pact Programme in the year 2007.
Initially, the threshold value for procurement & contracts for
entering into the Integrity Pact have been fixed as follows:-
| Contracts |
: Rs 50.00 crores |
| Procurements |
: Rs 15.00 crores |
| To widen the coverage of procurements / contracts under
Integrity Pact, the threshold limits have been revised during 2009 as under: |
| Contracts |
: Rs 20.00 crores |
| Procurements |
: Rs 10.00 crores |
Subsequently, to cover majority of cases under Integrity Pact, the
threshold limits have been reduced to Rs 1.00 crore for procurements / contracts w.e.f
September 2018.
During 2021-22,137 tenders valuing Rs 2862.68 crores were covered under
this category.
12.1 Transparency in procurements handled
In order to enhance transparency in procurements & increasing
competitiveness, our company adopted the following modes of tendering:> e-Procurement:
• All procurements of value above Rs 2 lakh are tendered through
e-mode at HO & Projects. Reverse e-auctions are conducted for high value spares &
consumables, wherever possible, by declaring upfront in the tender document
• Broad basing of vendors done for high value items viz. Milled
Ferro Silicon, Crusher Spares, Under Carriage parts of Excavators, TCRR bits, conveyer
belts and plant items which resulted in substantial savings in cost.
> Mode of Tendering: Efforts are continuously taken to minimize
proprietary & single tender purchases. Instead, open/global tenders are resorted to by
giving generalized specifications & drawings, wherever possible or with OEM Part
Numbers. Single Tender
/ Proprietary purchases have been reduced from Rs 1579.15 lakhs (85
cases) during
2017- 18 to Rs 287.67 lakhs (34 cases) during
2018- 19. Rs 271.85 lakhs (26 cases) during
2019- 20, Rs 3975.96 Lakhs (33 cases) during
2020- 21, Rs 13939.95 Lakhs (56 cases) during
2021- 22.The Increase during FY 2021-22 is due to implementation of MII
Policy in NMDC.
> Pre-qualifying conditions: PQC for conveyor belts & HEM
equipments tenders have been reviewed and structured PQCs have been made keeping in view
wider participation.
> GeM Portal: Procurement through GeM portal as per the guidelines
of GOI, is being done for the Materials which are available in the GeM Portal. Total 1713
orders valuing Rs 172.42 crores were placed during the year 2021-22.
> CPP Portal: MM Dept. is posting tenders in the CPP portal except
Single tender and proprietary items. All the bidders approaching through CPP portal for
entering in NMDC are invited for registration with NMDC or conducting trial with NMDC for
ensuring their quality product.
13.0 NMDC?S R&D CENTRE AT HYDERABAD
NMDC R&D centre is dedicated to undertake product and technology
development projects related to ores, minerals and steel making to maintain its excellence
in process performance. R&D centre has made significant contribution not only to NMDC
operating projects but also to Indian industries and is recognized by Department of
Scientific and Industrial Research (DSIR).
R&D centre undertakes works related to mineral processing, flow
sheet development, mineralogical studies, material handling & storage, metallurgical
studies of iron ore and coal, chemical analysis etc. It is a pioneer in the field of
beneficiation and continuously working for development of dry beneficiation technology for
different ores and minerals. It is endowed with state of art laboratory equipment to
analyze different minerals, coals, metals and non-metals. For further details reference
may be made to Annexure-II attached to the Directors' Report.
"Hindi Parangat" training continued unabated through teams
app, following all the safety measures in view of the COVID-19 pandemic.
During the year, Hindi Workshops were organized online in every quarter
at headquarters and various projects. Meetings of the Official Language Implementation
Committee were held on-line every quarter at headquarters and projects.
Hindi week/fortnight was organized at NMDC Headquarters and all the
projects and offices. During this, some Hindi competitions were held online and some with
physical presence. CMD's messages were circulated through social media channels like
Twitter, Facebook, YouTube.
Rajbhasha half yearly house journal of Headquarter "Khanij
Bharati" and various Hindi/bilingual/tri- lingual magazines namely, Baila Samachar,
Bacheli Samachar, Doni Samachar, Heera Samachar were also published from the projects and
units of NMDC.
Monthly Hindi competitions were held in all production projects to
promote the use of official language.
A short documentary film on "Journey of Rajbhasha
Implementation" in NMDC was made and screened at the meeting of the Hindi Advisory
Committee of the Ministry of Steel.
Diamond Mining Project, Panna organized various programs as the
Convenor of Town Official Language Implementation Committee.
The project also organized Hindi Kavi Sammelan. Official Language
Technical Seminars were held at Kirandul Complex, Bacheli Complex and Diamond Mining
Project, Panna and magazines of technical articles were published in Hindi.
The Government of India, Ministry of Steel conferred "Ispat
Rajbhasha First" award on NMDC Ltd, Headquarters for the year 2020-21. NMDC received
"Official Language Shield" as the 'First Prize' for the year 2020-21 in the
category of Mid- Sized Undertakings for the outstanding implementation of official
language from Town Official Language Implementation Committee (Undertaking),
Hyderabad-Secunderabad. "Khanij Bharati" received the First prize of Town
Official Language Implementation Committee (TOLIC), Hyderabad-Secunderabad. Khanij Bharati
Magazine also received the National First Award of The Public Relations Society of India.
16.0 DETAILS REQUIRED TO BE FURNISHED IN TERMS OF MICRO, SMALL AND
MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED).
The company has taken the following steps to procure goods and services
from MSE firms,
MSE SC/ST & Women entrepreneurs. NMDC has conducted exclusive MSE
SC / ST vendor meets at its projects in Chhattisgarh and Karnataka to understand the
tender process and our requirement. NMDC has participated in the various vendor meets
organised by Ministry of Micro, Small & Medium Enterprises in association with FICCI.
Besides NMDC has organised 08 Nos. Vendor Meets / programmes at various places in total
during 2021-22. NMDC interacted with prospective MSE entrepreneurs encouraging them for
supply of goods for various plants at Bailadila & Donimalai.
For encouraging MSE SC/ST firms, exclusive trials are being conducted
and after successful trials the firms are given tender enquiry in Limited Tender.
Moreover, against the qualification criteria in tenders we have not
received any complaint / request with regard to relaxing tender terms & conditions.
For the last 3 years NMDC is achieving the targets as per Public Procurement Policy. The
results of 2021-22 are given below:-
| Category of MSE Firm |
Norms |
Achievement |
| Procurement from MSE firms |
25% |
44.67 % |
| Procurement from SC / ST MSE firms |
4% |
4.90 % |
| Procurement from Women Entrepreneurs MSE firms |
3% |
3.07 % |
NMDC also received the Best Performer under the Navratna Category
during the year 2019 for our exemplary work towards promotion of SC/ ST entrepreneurs
based on the performance parameters namely
(i) procurement from SC/ST entrepreneurs,
(ii) No. of Vendor Development Programs for SC/ST and
(iii) Number of SC/ST entrepreneurs benefitted as per the data uploaded
on Sambandh Portal.
17.0 MANPOWER
17.1 Employee-Employer relations
The overall industrial relations situation was peaceful and cordial
during the year. There was no strike / lockout against the Company's policies affecting
production and productivity.
17.2 Scheduled Castes & Scheduled Tribes
01 candidates belonging to Scheduled Caste was appointed in the year
2021-22 against 10 posts filled by direct recruitment.
17.3 Strength of SCs & STs as on 31st March 2022
| 1. |
Total number of employees : |
5539 |
| 2. |
Scheduled Castes : |
827 |
| 3. |
Scheduled Tribes : |
1395 |
| 4. |
Other Backward Class : |
1137 |
| 5. |
PwDs (Divyangjan) |
100 |
17.4 Particulars of employees drawing remuneration of Rs 8.5 lakhs per
month or Rs 1.02 crores per annum under Section 197 of the Companies Act,
2013 read with the Companies (Appointment and remuneration of
Managerial Personnel) Rules,
2014 as amended.
NIL
17.5 Staff Welfare activities
Adequate facilities for education, health, accommodation and recreation
were in place. Various Bipartite fora have been functioning satisfactorily.
17.6 Promotion of Sports
Sports tournaments were arranged by respective Projects for the
employees, the wards of employees and also for the local youth apart from promoting sports
events under CSR.
17.7 Disclosure under Section 22 of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act 2013
No complaint has been received and no case has been filed under the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013
during the financial year 20212022.
18.0 HUMAN RESOURCES DEVELOPMENT
At NMDC, we believe in building a learning culture to foster high
performance and an agile workforce. A robust Learning culture is imperative in NMDC which
seeks to be defined by its performance capabilities.
• We believe that business sustainability has become a crucial
component of long-term business goals. It involves figuring out newer ways to remain
productive in a fast-changing landscape. But as both technological change and employee
preferences evolve, keeping up to date with the required skills and more holistic ways of
addressing such changes becomes an important means to ensure businesses remain
sustainable. At the core of addressing such business needs, a robust learning culture is
need of the hour.
• At NMDC we have created high impact learning culture which
reflects both in the rising size of the learning needs and its demands within the business
as an important part of our future goals.
• NMDC Corporate HRD department plays a vital role in enabling its
workforce to deal with market uncertainty and ensure its businesses can continuously
innovate. Throughout, our learning and development programs have always played a pivotal
role in helping business by fine-tuning our employee's capabilities.
• NMDC strongly believes in a strong learning mechanism which can
impart skills in a timely and effective manner and minimize the impact of the various
threats posed by external forces and uncertainties.
• Keeping in mind the need to have a robust learning mechanism in
NMDC, Corporate HRD function at the forefront is playing an important role in ensuring the
organizational workforce is trained and equipped with requisite skills and can face future
challenges.
Productivity today in NMDC, is related to how efficiently and
effectively our employees can use new-age digital technologies to make their work more
efficient, impactful and meaningful. And to do so, knowledge and skills play an important
role. Keeping this in view, NMDC is investing on its workforce by means of various
learning and development programmes to retain and add its value. Bolstering this, NMDC
spentRs 15 Crores (approx.l on Learning and Development during the year 2021-22.
For a high-performance organization, it's imperative that these
knowledge and skills are continuously replenished by virtue of imparting new age learning
technologies.
It is pertinent to mention here that, towards
2021-22 Learning and Development initiatives we were aligned with our
business goals. Despite the pandemic, the on-going core programmes were revitalised to
reflect the emerging capability requirements. In addition to core programmes, customised
e-learning programmes were also offered to address the needs expressed by businesses,
aimed at building specific capabilities at various levels of the organisation.
A. TRAINING PROGRAMMES [In-House / External)
Corporate HRD has organised customized In House Training as well as
External Training programmes covering 3575 Executives during 2021-22.
Corporate HRD Conducted several specialized & curated Programmes
on:
> Reservation Policy for SC/ST, OBC, Ex Servicemen, PWD and EWS in
PSE
> Sexual Harassment of Women at Work Place (Prevention, Prohibition
& Redressal ACT2013]
> Online Training programme for Inquiry Officers (IOs] &
Presenting Officers (POs] by CBI Academy
> Curated Business Leader Programme by Art of Living.
> Workshop on Arbitration and Contract Management Negotiation
Skills.
> Workshop on Recent Amendments in Arbitration and Conciliation Act
1966.
> Communication Skills for Managers.
No executives were sent abroad for Foreign Training Programmes during
2021-22 /AMP/Visits due to COVID-19 pandemic.
B. WEB BASED LEARNING INITIATIVES
Successfully organised and conducted various specialised programme
during the year viz. Web based learning programmes, Professional Residential programme
with Premier Institutions, Specialised Curated programmes, Technical, Managerial &
Behavioural and also on Health and Wellness.
C. STRENGTHENING OF QUALITY CIRCLES
Strengthened the Quality Circles Movement in NMDC, by giving more
thrust on Quality Circles activities by adding 5% more QCs this year. We have bagged 18
Gold Awards in CCQC. Also, Excellence and Par Excellence award in National Convention on
Quality Concepts (NCQC)-2021. NMDC also participated in Internal Convention on Quality
Controls Circles (ICQCC-2021).
D. TALENT MANAGEMENT
> Corporate HRD has drawn a plan to conduct various Training
Programme on Talent Management.
> New Learning and Development Intervention Induction Training
Programme for Young Executive Trainees (Finance) & Executive Trainees (GATE) with
Indian Business School (ISB] one of its kind done by any of the PSU in Country.
E. TRAINING ON PREVENTIVE VIGILANCE
> Conducted Preventive Vigilance Training Module for mid-career
Executives by covering a total of 400 plus executives sensitising them on various
Preventive vigilance aspects.
F. CULTURE BUILDING & HAPPINESS WORKSHOPS
COVID-19 has thrown unprecedented challenges before us alongside Fear,
Stress & Anxiety. To overcome and tackle this, happiness programme was conducted by
NMDC for the employees not only to be better equipped to identify the level of happiness
within organisation and help employees at various levels to understand why happiness is
worthwhile goal for achieving high performance in life and work.
Covered 240 executives DGM & above executives in a unique tailored
programme namely "IKIGAI- A Happy Workforce Programme- Phase 1". Keeping in view
the feedback from the phase-1 participants, the programme is the further extended to 500
executives (AGM & Sr Manager level)"IKIGAI- A Happy Workforce Programme- Phase
2"
These types of programmes equipped our people to support engagement and
productivity within NMDC and strengthen their sense of belongingness, purpose, meaning and
satisfaction -not only at the offices but in their life as a whole.
G. SKILL DEVELOPMENT TRAINING
NMDC and NSDC has entered into MoU on 01.11.2021 for imparting training
and RPL certification for 1600 employees in 4 years (400 each) in mining and steel sector.
Your Company is also playing a pivotal role to support the National
Skill Development Mission through active participation in the activities of Skill Council
for Mining Sector (SCMS) and providing Training and Recognition of Prior Learning (RPL) in
all Projects.
H. DIGITAL INITIATIVES
Introduction of SAP Learning Solutions & HRD Dash Board.
Lifelong learning is a challenge that learners, employees, and
employers are equally faced with. Traditional classroom training ties up time and
resources, takes employees away from their day- to-day tasks, and drives up expenses.
This situation calls for new strategies leading directly to the work
space and centers of employees. The employee's PC at work or at home becomes a personal
training center. E-learning can be used in a wide variety of areas. It can help to cut the
cost of training by providing more learners with easier access to training measures.
In this line, keeping under the ambit of ERP-SAP implementation in
NMDC, Corporate HRD working on the SAP Learning Solution Module which paves the way for
this development. It opens up new learning possibilities for learners, trainers,
companies, and educational institutions.
I. REWARDS & RECOGNITION
NMDC was conferred 2nd prize for innovative training
practices at National level for the year 2019-20 by Indian Society for Training and
Development received on 10.04.2021, Further NMDC was also conferred
cash prize towards the same.
19.0 VIGILANCE
Vigilance department has taken several initiatives during the year.
Emphasis was laid on adequate checks and balances in the form of well-defined systems and
procedures. Various programmes were conducted for awareness on vigilance matters for the
employees of the Corporation.
The vigilance functionaries at the projects have conducted regular
training classes for the employees on vigilance matters. Executives of the Vigilance
Department were nominated for training/ workshops being organized in India.
The systems and procedures including the document handling, maintenance
of records are done to ensure that the Vigilance Department is conforming to the Quality
Management Systems as per ISO 9001:2015 Standards.
Vigilance Department in NMDC has upgraded to ISO 9001:2015 standards of
Quality Management System (QMS) for which M/s Vexil Business Process Services Private
Limited, Delhi was engaged for routine surveillance audits and Quality Certification.
During the year (April 2021 - March 2022), 55 surprise checks, 68
regular inspections, was conducted by Vigilance Department. Complaints received were taken
up for investigation and necessary suggestions for system improvement/ disciplinary action
wherever required were recommended. A total of 57 complaints were received through various
source information during the period which were handled / disposed off as per CVC
guidelines / complaint handling procedure.
As part of the implementation of "Leveraging of Technology for
transparency" in all the transactions, details of contracts concluded above Rs 10
lakhs, all works awarded on nomination basis, single tender basis above Rs 1 lakh,
information regarding bill payments to the contractors, etc. are provided on the company's
website. Vigilance department made allout efforts for E-Procurements through online
e-procurement platforms like MSTC, GeM etc. and it has now been ensured at NMDC that all
tenders of value 2 lakhs and above shall be floated / issued through E-Procurement
platform. In this regard, Vigilance dept. is regularly creating awareness by intimating
fresh guidelines issued by statutory authorities / agencies and advising/ involving the
concerned departments for compliance.
NMDC has adopted the Integrity Pact since November 2007. As per the
suggestions given by Vigilance Department, the threshold value has been decreased to 1.0
Crore w.e.f. 07.09.2018 for both Procurement and Contracts as against the earlier
threshold limit of Rs 20 crores in case of Civil works and Contracts and Rs 10 crores in
case of Procurement on approval of NMDC Board. The Integrity Pact has been entered into in
476 contracts with a value of Rs 28,918.77 Crores for the period April 2021-March 2022.
All the contracts wherein the Integrity Pact was to be signed as per the threshold limit
was adhered to and more than 90% of the total values of the contracts are covered under
Integrity Pact.
To ensure transparency in vigilance works, necessary action has been
initiated for rotation / repatriation of vigilance officers, and for inducting of new
officers in Vigilance department for compliance of CVC guidelines by 30.06.2022. The
rotational transfer of officers of other departments was also effected during the period,
in compliance of CVC guidelines and a total of 95 officers were rotated / transferred.
The Quarterly Review-cum-Coordination meeting of the Vigilance dept.
with CVO was held in June 2021 at Hyderabad, in September 2021 at Raipur, in December 2021
at Hospet and in March 2022 at Hyderabad for the first quarter, second quarter, third
quarter and fourth quarter respectively. The said meeting was attended by all the
Vigilance Officers posted at Head Office and Projects like Kirandul, Bacheli, Donimalai,
Panna & NISP. Project-wise presentations were made and matters pertaining to vigilance
inspections and system improvements recommended / implemented etc. were discussed. Few
common matters were also discussed in open-house wherein all VOs exchanged their views and
gave valuable suggestions.
In pursuance of CVC directions / guidelines received during the month
of August / September 2020, a 02 days module and Road map for imparting training on
Preventive Vgilance Module separately for Induction level (new entrants) and Mid-career
level Executives were drawn up and was integrated with our 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 off line
class-room mode at few locations like Head office and through online relay under the
concept of extended classrooms at remote locations & Projects. A total of 56 trainees/
new inductees(executives) were covered for the Induction level training and 408
trainees/mid-level executives were covered under mid-career level training in the training
programmes conducted under the Preventive Training Module as suggested by CVC.
SYSTEM IMPROVEMENTS UNDERTAKEN / IMPLEMENTED DURING THE YEAR 2021-22
As per the Action Plan of the Vigilanec dept., viz-a-viz the action
plan of individual vigilance officers for the year 2021-22, surprise and regular checks
were conducted besides the study of files. Irregularities and omissions under the
provisions of the rules were identified and improvements in the systems were suggested
wherever required.
The initiatives/system improvements studies/
suggestions/recommendations made during the period are briefed as below:-
1. Write-off of Handling Losses against the issue of Motor Spirit (MSI
and High-Speed Diesel (HSDl:
A study was conducted to evaluate the effectiveness of the current
write-off technique for reconciling the handling losses against the issue of Motor Spirit
(MS) and High-Speed Diesel at Projects. It was observed that the conventional method of
recording and calculating the losses was incongruent with recent technological
developments. The vigilance department advised revising the internal circular on
write-offs and employing an IT-based solution such as FMS to record fuel levels, or for
receipt of fuel, etc.
2. System improvements suggested in the Contract Award Process:
An online/offline demonstration for evaluating techno-commercial
proposals of any specialty software may be required at the procurement stage. Nonetheless,
a vigilance investigation revealed that the existing MM Manual contains
no guidelines or provisions to be followed in such cases. The Vigilance
department has suggested recording Online/Offline demonstrations and drafting
SOPs/Guidelines to be followed in instances where Online/Offline demonstrations were
included in tender documents for evaluating techno-commercial offers.
3. System improvements suggested in Empanelment of Contractor:
The contractors were empaneled for various types and values of works
based on eligibility criteria at respective projects of the Corporation. During one of the
investigation, it was discovered that most of the new contractors visited the office to
inquire about the empanelment procedure since they were unaware of its existence. The
vigilance department suggested standardizing the format for empanelment across all
projects and putting it in public domain.
4. System improvements suggested for PMC for large contracts:
The vigilance department suggested for appointment of PMC for large
projects and for developing a proper SOP in cases where PMC consultant withdraws from
project for any reason. The same has been implemented by the concerned departments.
5. As per the CVC guidelines, all the companies coming under the
category of Navratna or having the turnover of Rs 10,000 crores and above are required to
have three IEMs in their panel. Vigilance department ensured the compliance of the above
guidelines and appointment of third IEM at NMDC was made on 29.04.2022.
6. A Complaint Handling Policy was prepared and uploaded in Vigilance
Portal of NMDC with SOP / guidelines for lodging Vigilance complaints. It got implemented
w.e.f. 01.01.2022.
Vigilance Awareness Week
As per CVC Circular No. 05/09/2021 dt. 01/09/2021, Vigilance Awareness
week-2021 was observed at NMDC Limited from 26th Oct - 1st Nov, 2021 on the theme
"Independent India @75 " Self Reliance with Integrity".
On the Inaugural day of VAW-2021, Integrity Pledge was administered to
the employees of NMDC at HO by CMD and by respective Project Heads / Regional Managers in
the Projects and ROs respectively.
Various activities including sensitization programmes and
individual/inter-departmental competitions like Slogan writing, Essay writing, Elocution,
Quiz competition, inter-departmental House-keeping competition and Drawing of e-posters on
the VAW theme were arranged for the employees during the Vigilance Awareness Week-2021. A
workshop on 'Corporate
Governance and Technology, and Whistle Blower Mechanism in PSUs' was
organized on 28.10.2021 at HO wherein Ms. Praveen Kumari Singh, Addl. Secretary,
CVC was the keynote speaker and CMD, NMDC was the chief guest. In
addition to this, workshops on E-Tendering and use of GeM Portal and Statutory compliances
and Contract labour management were conducted as a part of VAW-2021. Awareness and
sensitization programmes on use of PIDPI for employees, school / college children and
other stakeholders were conducted at Head Office/ Regional Offices & all Projects. All
the winners / participants of various activities / competitions were given away the prizes
during the Valedictory Function held on the concluding day of VAW-2021 on 1st
Nov, 2021 at HO and all Projects.
During the observance of VAW-2021, all the precautions as per COVID-19
guidelines were strictly followed.
20.0 DIRECTORS? RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Act, the Board of Directors, to the
best of its knowledge and ability, confirm that:
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed and there are no material departures;
ii) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the end of the
financial year and of the profit of the Company for that period;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities;
iv) they have prepared the annual accounts on a going concern basis;
v) they have laid down internal financial controls to be followed by
the Company and such internal financial controls are adequate and operating effectively;
vi) they have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems are adequate and operating
effectively.
Based on the framework of internal financial controls and compliance
systems established and maintained by the Company, the work performed by the internal,
statutory and secretarial auditors and external consultants, including the audit of
internal financial controls over financial reporting by the statutory auditors and the
reviews performed by management and the relevant board committees, including the audit
committee, the Board is of the opinion that the Company's internal financial controls were
adequate and effective during FY 2022.
21.0 DECLARATION ON MEETING THE CRITERIA OF INDEPENDENCE AS PER THE
COMPANIES ACT, 2013 AND SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)
REGULATIONS, 2015.
The Independent Directors have given a declaration on meeting the
criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013 and
Regulation 25(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 in the FY 2021-22.
22.0 COMPANY?S POLICY ON DIRECTORS APPOINTMENT AND REMUNERAITON
All Directors are appointed by Govt. of India including fixation of
their remuneration.
23.0 NUMBER OF BOARD MEETINGS HELD
During the year under review 9 meetings of the Board were held. For
further details, reference may kindly be made to Corporate Governance Section of the
Annual Report.
24.0 NMDC STRATEGIC MANAGEMENT PLAN (NMDC VISION 2025).
A long-term strategic management plan (SMP), 'Vision 2025' has been
formulated which envisages an iron ore production capacity of 67 MTPA. This expansion plan
includes brownfield expansion of existing mines and developing greenfield mines in
partnership with Chhattisgarh Mineral Development Corporation. A joint venture of NMDC
& CMDC (NCL) is in process of starting operations from Dep-13 Iron Ore Mine in the
Bailadila Region. The Government of Chhattisgarh has notified the allocation of Dep-4 to
NMDC in Sep'19 for prospecting and mining operations.
India is presently the world's second-largest producer of crude steel.
In FY'22, the production of crude steel stood at 120 MT with a growth of 18% over the
previous year. The growth in the Indian steel sector has been driven by the domestic
availability of raw materials such as iron ore and cost-effective labour. Consequently,
the steel sector has been a major contributor to India's manufacturing output.
The Government of India announced a production- linked incentive (PLI)
scheme for speciality steel. The scheme is expected to attract investment worth ~Rs. 400
billion (US$ 5.37 billion) and expand
speciality steel capacity by 25 million tonnes (MT) to 42 MT by FY'27.
NMDC is also reviewing its long-term plan based on the increase in demand & growth in
the iron & steel industry after the pandemic. As per National Steel Policy, the
country has envisaged increasing its steel production capacity to 300 MTPA by FY'31. The
wide range of continuing infrastructure projects could support growth in steel demand to
reach our envisaged target of per capita steel consumption of 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.
In FY'22, the Company has progressed significantly on various
activities to enhance its production capacity with the start of full-scale operation of
Donimalai Mine and laying of the foundation stone for a 7.0 MTPA Screening and
Beneficiation Plant at NMDC's Donimalai Iron Ore Mine by Hon'ble Minister of Steel,
Government of India. There is also progress in the construction of the fifth line in
Screening Plant Dep-5 & up-gradation of the downhill conveyor system in BIOM Bacheli
Complex. Rapid Wagon Loading System (RWLS-I) and New Screening Plant (SP-III) at BIOM
Kirandul Complex are under construction. Further, NMDC is planning to enhance the EC
capacities of mines in the mining complexes of Bailadila and Donimalai.
To augment the evacuation capacity from the Bailadila sector, many
projects & schemes are being taken up like doubling of KK line, Rowghat- Jagdalpur
line, Slurry Pipeline, etc. Doubling of KK line is being executed by Railways as deposit
work is in full swing and few completed sections have been opened for traffic. Out of 150
km of planned doubling of railway line, 76% of work has already been completed & the
project is likely to be completed by FY'24. The completion of this project will augment
the evacuation capacity of the Bailadila sector through the Railway line from 28 MTPA to
40 MTPA.
Activities for Phase-1 of Slurry Pipe Line including 2 MTPA capacity
Ore Processing Plant (OPP) at Bacheli, 15 MTPA capacity Slurry Pipeline System (130 km)
from Bacheli to Nagarnar and 2 MTPA capacity Pellet Plant at Nagarnar, have also been
initiated. The project is likely to be completed in FY'24.
Ministry of Coal has allocated two Coal Blocks namely Tokisud North
Coal block & Rohne Coal Block on 17th March 2020 for commercial sale & captive
purposes. NMDC has appointed MDO for Tokisud North Coal Block and plans to start its
operations in FY'23.
NMDC is in the advanced stages of setting up a
3.0 MTPA greenfield Steel Plant at Nagarnar in Chhattisgarh, which is
expected to operationalize in FY'23. Commissioning activities started with the start of
coke oven heating in Jan'2022. Testing & trials are in progress in each package.
Packages like operational power facilities, operational water packages and plant &
instrument air packages are commissioned.
Besides the expansion plan, the SMP also envisaged the introduction of
systemic interventions in six strategic transformation areas - Business, Operations,
Sustainability, Capital Projects, Human Resource and IT. NMDC has implemented an ERP
system across all projects & steel plant in FY'21, License-to-Operate (the
computer-based model in which all the statutory approvals will be brought under one
umbrella). Implementation of Mines Transport Surveillance System (MTSS)- Weighbridge
automation/ Virtual Fencing/ Geo-Fencing/ GPS/ Proximity Warning Device for dumpers/ CCTV
Surveillance/ Wireless Networking has been completed at Donimalai. NMDC has further taken
initiative to venture into the fleet management system and it is being implemented in
Bailadila Sector. Efforts are being made to install an automatic (robotic) sampling &
analysis system, vision enhancement system, conveyor monitoring system and 3D Volumetric
and Laser Scanner System to enhance its digital strength.
NMDC is publishing Sustainability Report as per the Global Reporting
Initiative (GRI) Standards, capturing initiatives taken by NMDC over the years in
Economic, Environmental and Social aspects. As the world is now traversing more
uncertainty than ever, NMDC is focusing on building sustainable and resilient businesses
to survive in the long run and to make a meaningful contribution to the battle against
climate change through an increasing investment in environment, social and governance
(ESC) initiatives. All Mines of NMDC have been Awarded 5 Star Rating by the Ministry of
Mines.
The following Directors ceased to be Directors on the Board of the
Company:-
| upto |
|
| i) Shri P.K. Satpathy, Director (Production) |
31.08.2021 |
| ii) Shri Alok Kumar Mehta, Director (Commercial) |
30.09.2021 |
| The following Directors were appointed on the Board of the
Company:- |
|
| w.e.f. |
|
| i) Shri Dilip Kumar Mohanty, Director (Production) |
05.10.2021 |
| ii) Smt. Sukriti Likhi, Govt. Nominee Director |
23.04.2021 |
| iii) Shri Sanjay Tandon, Independent Director |
01.11.2021 |
| iv) Dr. Anil Kamble, Independent Director |
01.11.2021 |
| v) Shri Vishal Babber, Independent Director |
01.11.2021 |
| vi) Shri Sanjay Singh, Independent Director |
29.12.2021 |
The Board places on record its deep appreciation for the valuable
contribution made by Shri P K Satpathy and Shri Alok Kumar Mehta during their tenure on
the Board of the Company.
26.0 AUDIT
a. Statutory Auditors
On the advice of the Comptroller and Auditor General of India, New
Delhi, your Company appointed the following firms of Chartered Accountants as Statutory
Auditors of the Company for the year 2021-2022:
| 1 |
Head Office R & D Center SIU & Consolidation |
M/s SAGAR & ASSOCIATES Chartered Accountants House
No.6-3-244/5 Saradadevi Street, Premnagar, Hyderabad Telangana: 500 004 |
| 2 |
Kiradul Complex Bacheli Complex NISP, Jagdalpur Vizag Office |
M/s AGASTI & ASSOCIATES Chartered Accountants C-37,
Sector-1, Raipur Chhatishgarh: 492007 |
| 3 |
Donimalai Complex |
M/s YOGANANDH & RAM LLP Chartered Accountants Third
Floor, Shri Narasimha Nilaya No. 263/1, Second Cross, T. Mariappa Road Second Block,
Jayanagar, Bengaluru Karnataka : 560 011 |
| 4 |
Panna Project |
M/s Neeraj Prakash & Associates Chartered Accountants
328/208, Lukerganj Purosottam Kunj Near Dr. Banerjee, Allahabad Uttarpradesh : 211 001 |
b. Cost Auditors
M/s B Mukhopadhyay & Co,
Cost Accountants B 20, Amarabati,
Sodepur
Kolkata - 700 110.
c. Secretarial Auditors
M/s D. Hanumanta Raju & Co.
Company Secretaries B-13, F1, P.S. Nagar Vijaynagar Colony Hyderabad -
500 057
27.0 IMPLEMENTATION OF RIGHT TO INFORMATION ACT, 2005
All the provisions of the RTI Act 2005 are being complied with by the
Company. In order to ensure timely disposal of RTI applications, PlOs have been appointed
in each of 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 01.04.2021 to 31.03.2022 are as follows:
|
Opening balance as on 01.04.2021 |
Applications received during the year |
Information Provided/denied/ forwarded |
Balance as on 31.03.2022 |
| Online applications |
34 |
373 |
386 |
21 |
| Offline applicaitons |
04 |
158 |
158 |
04 |
| TOTAL |
38 |
531 |
544 |
25 |
28.0 DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE
REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY?S
OPERATION IN FUTURE - NIL
29.0 AWARDS RECEIVED BY THE COMPANY
The details of awards received by the Company are as follows:-
1. NMDC bagged Runners Award in 30th National Award for Innovative
Training Practices Award 2019-20 held at SCOPE Complex New Delhi on 10.04.2021.
2. NMDC sweeped eight awards at the Governance Now 8th PSU Awards
Ceremony conducted virtually on 29.07.2021. Under the Leadership Category, the company won
the CMD Leadership and Emerging Communication Leader of the Year awards, besides six
awards under the Organization Category for CSR Commitment, Nation Building, Digital PSU,
Research and Innovation, HR Excellence and Communication Outreach.
3. NMDC received "Rajbhasha Kirti Award" on 14.09.2021 for
implementation of Rajbhasha for the year 2019-20 at a function held at Vigyan Bhawan, New
Delhi. NMDC has been winning this accolade for the last three years in a row, which goes
on to show its dedication towards the implementation of Hindi as the Official Language.
4. NMDC received runner up award and another thirteen Corporate
Communication Excellence Awards on 20.09.2021 at the Global Communication Conclave
organised by Public Relations Council of India (PRCI) in Goa.
5. NMDC is bestowed with best PSE for CSR initiatives award at
D&B's India's top PSU awards on 27.09.2021.
6. Donimalai Complex, NMDC Ltd. has been awarded for "PLATINUM
AWARD" in "10th Exceed Environment Award 2021" under "Environment
Preservation" Category in Mining & Metallurgy Oil Sector on 07.10.2021 at
Dehradhun.
7. NMDC has bagged Gold Award in Environmental Sustainability category
and Kumaraswamy Iron Ore Mine bagged Platinum Award in Environment Management category.
The function was organised by Sustainable Development Foundation (a unit of EK KAAM DESH
KE NAAM) and the awards were presented in the 10th conference held on 08.10.2021 at
Dehradun.
8. NMDC Head Office received First Prize of TOLIC (U) under mid-sized
Central PSU category. Rajbhasha Shield for 2019-20 and 2020-21 were received for the sixth
year consecutively and "Khanij Bharati" Rajbhasha Patrika of Head Office was
also awarded First Prize for 2020-21 among the Published Magazine category on 25.10.2021
at Hyderabad.
9. NMDC received nine 5-star ratings for three years for all its
operating iron ore mines viz. Kumaraswami, Bacheli Deposit-5, Deposit 14 NMZ and Deposit
No 10 at the
5th National Conclave on Mines and Minerals on 24.11.2021.
10. SIU, Paloncha received First Prize of Southern Region for
implementation of Rajbhasha in the Conference organized at Hyderabad on 04.12.2021 by Gol,
Ministry of Home Affairs, Rajbhasha Department.
11. NMDC received 1st prize in the Ispat Rajbhasha Award for 2018-19
and 2020-21 and the Ispat Rajbhasha Prerna Award for 2019-20 in the meeting of the Hindi
Salahakar Committee of the Ministry of Steel held in Madurai on 03.03.2022. The Honourable
Union Minister of Steel, Shri Ram Chandra Prasad Singh, presented the accolades to Shri
Sumit Deb, Chairman and Managing Director, NMDC.
12. The Director (Finance), Shri Amitava
Mukherjee, was awarded the 'FE CFO of the Year Award' by Financial
Express for the year 2022.
30.0 VIGIL MECHANISM
NMDC being a PSU, the guidelines of Central Vigilance Commission (CVC)
are applicable which provides adequate safeguard against victimization of the employees.
The Board of Directors at its 451st meeting held on 20.09.2012 approved the internal
Whistle Blower Policy of NMDC. NMDC has effectively implemented its internal Whistle
Blower Policy under CVO NMDC, the designated Nodal Officer for the purpose.
31.0 DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION
143(12) OTHER THAN WHICH ARE REPORTABLE TO CENTRAL GOVT - NIL
32.0 Offer for Sale (OFS) in F.Y. 2021-22
Pursuant to the Offer for Sale (OFS), the President of India (acting
through and represented by the Ministry of Steel, Government of India), the Promoter of
NMDC Limited sold equity shares aggregating to 21,95,02,378 (nos.) on 6th July
2021 and 7th July 2021 representing 7.49% of the total paid up equity share
capital of the company. The Floor Price for the Offer was Rs 165.00 per equity share. The
Transaction value of the OFS was of Rs 3651,37,22,349.08. Post completion of the said OFS,
the equity stake of the Promoter in NMDC Limited stands reduced from 68.29% to 60.80% as
on 8th July 2021.
Employee OFS in F.Y. 2021-22:
In accordance with the approval given by Alternative Mechanism on 5th
July 2021, the President of India, acting through Ministry of Steel, Government of India
offered up to 89,108,907 equity shares of face value of Rs 1/- each to the eligible
employees of the Company at a price Rs 165.50 per equity share. Accordingly, the Promoter
of NMDC Limited sold 1,47,942 (no.s) equity shares to the eligible employees of the
Company on 20th July 2021 at an offer price of Rs 165.50 per equity share.
Transaction value of the Employee OFS is of Rs 24,484,401.00 (Gross of stock exchange
transaction charges and all applicable taxes and charges). Post completion of the employee
OFS, the equity stake of the Promoter in NMDC Limited stands reduced from 60.80% to 60.79%
as on 23rd July 2021.
33.0 FORMAL ANNUAL EVALUATION OF BOARD, COMMITTEES AND INDIVIDUAL
DIRECTORS.
NMDC being a Government Company, the terms and conditions of
appointment and remuneration of Functional Directors and Independent Directors are
determined by the Government through its administrative Ministry, Ministry of Steel.
In terms of notification dated 5th June, 2015 and 13th June, 2017
issued by Ministry of Corporate Affairs, Govt. of India, Government Companies have been
exempted from applicability of some of the provisions /sections of the Companies Act, 2013
inter alia Sub-sections (2),(3) & (4) of Section 178 regarding appointment,
performance evaluation and remuneration.
34.0 IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Board at its 442nd meeting held on 19.01.2012 has
approved the Risk Assessment and Risk Mitigation Policy / Enterprise Risk Management (ERM)
of the Company. Accordingly, the Company has constituted a Board level Risk Management
Committee comprising of Functional Directors (excluding CMD). The Company as a part of its
current Risk Management Policy has identified top Risks That Matters (RTMs) and documented
Mitigation Plan / Strategy for the same
During the year under review, two meetings of the Board level Risk
Management Committee were held.
35.0 DIVIDEND DISTRIBUTION POLICY
The Board of Directors has approved Dividend Distribution Policy which
has been uploaded on the website of the company under the link https://
www.nmdc.co.in/cms-admin/Upload/Policies- Document/ ae4bb5f07e7e4654a3f881ccec7b9163_
20210920060806207.pdf.
36.0 ERP Implementation, Digitalization and IT Infrastructure
NMDC went Live on SAP S/4 Hana in January, 2021. ERP Project,
christened Kalpataru made NMDC the first CPSE in India to implement Enterprise Resource
Planning on the SAP S/4 HANA platform. This Project was undertaken to address NMDC's core
business requirements through a strong ERP backbone, which will provide a fully integrated
solution encompassing all the business functions of the organization. It is a
transformational advancement in the digital journey of NMDC and will improve the overall
business process of the company. This will also act as a lighthouse project for the
domestic mining sector ushering into an era of automation and digitalization driven
growth.
The modules / functionalities implemented are Production Planning (PP),
Plant Maintenance (PM), Quality Management (QM), Sales & Distribution (SD), Material
Management (MM), Human Capital Management (HCM), Finance & Control (FICO), Environment
Health & Safety (EHS), Project System (PS), Industry Solution for Mining.
FY 2021-22 is the first year when the entire account closing activity
has been done in SAP.
Post Go-Live, SAP Digital Compliance Solution (DCS) have been
implemented for generation of E-Invoicing, E-Way Bill transactions in real time and filing
of GST returns. HR functionalities have been made available to employees through Employee
Self Service (ESS). Management Dashboard for Production, Iron Ore Sales/ Dispatches and
CSR has been launched and the same for other functionalities will be made functional
shortly.
All the transactions are happening smoothly and the focus now is to
increase the digital footprint, bringing in more and more of automation for automated data
capture in real time like integrating Belt Scale and PLC system for Plant Data and
integration of Fleet Management System(FMS) with SAP for Mining field operation data
leading to IT/ OT integration.
Roll out of functionalities like Supplier Relationship Management (SRM)
for E-Tendering and Vendor Invoice Management (VIM) solution for automated capture of
payment invoices into SAP and parking for payment is underway. Vendor through this system
will be able to know the status of their invoice and payment thru the portal. Ex-Employee
portal will also be made functional soon. Focus will be also on utilizing the full
potential of Document Management and Mobility Solutions. ERP solution will be rolled out
in the Coal Division of NMDC in next few months. Technology refresh of IT infrastructure
to support ERP and future digital initiative alongwith best in class IT security solutions
will also be our top priority.
36.1 COMPUTER & INFORMATION TECHNOLOGY INITIATIVES
1. The corporate website, tender website, exemployees portal and
intranet website of the company has been revamped and launched on 26.01.2022. This has
been developed using the latest technologies and responsive design. It is GIGW compliant,
security auditec and very user friendly. It has a video header and uses CDN to deliver it.
It also has SEO friendly CMS. The press release section also has integration with social
media.
2. A Virtual Data Room (VDR) has been commissioned for NISP Demerger
activity. This facilitates the various stakeholders like Legal Advisor, Transaction
Advisor, User Departments to share and exchange information.
3. The email mailboxes of top management and common departmental mail
ids have been moved to the cloud (Microsoft O'365). This provides enhanced mailbox size of
50 GB and it is hosted in the cloud.
4. Facial Biometric Attendance Recording System has been recently
implemented at HO, R&D, Panna, NISP and Ros. Implementation is in progress at Bacheli,
Kirandul and Donimalai.
5. Microsoft Teams is being used extensively to conduct virtual
meetings, webinars. One conference room at HO and Donimalai have been revamped with large
display, PTZ camera, Wi-Fi ceiling mics etc. The same setup is being implemented at
Bacheli and Kirandul also.
37.0 REPORT ON MANAGEMENT DISCUSSIONS AND ANALYSIS
A Report on Management discussions and Analysis as required in terms of
Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
is at Annexure-I.
38.0 REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN
EXCHANGE EARNINGS AND OUTGO UNDER THE COMPANIES (ACCOUNTS) RULES, 2014 IS AT -
Annexure-II.
39.0 CORPORATE GOVERNANCE
Report on Corporate Governance is at Annexure-III
40.0. EXTRACT OF ANNUAL RETURN UNDER SECTION 92(3) OF THE COMPANIES
ACT, 2013.
As required under the provisions of the Companies Act, 2013, the Annual
Return is hosted on the Company's website and can be accessed from the link
https://www.nmdc.co.in/investors/financial- details/annual-return
41.0 BUSINESS RESPONSIBILITY REPORT
In compliance with Regulation 34 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, Business Responsibility Report (BRR) is at
Annexure-IV.
42.0 SECRETARIAL AUDIT REPORT
Secretarial Audit Report in Form No.MR-3 pursuant to Section 204(1) of
the Companies Act, 2013 and Regulation 24A of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 is at Annexure-V.
The Observations of the Secretarial Auditors are relating to the
Composition of the Board of Directors with respect to the requisite number of Independent
Directors of the Company, Constitution of the committees and quorum for the meeting, which
is not as per the requirements of SEBI (LODR) Regulations, 2015 and the Companies Act,
2013 during the financial year 2021-22.
In this regard it is stated that NMDC Limited being a Central Public
Sector Enterprise under administrative control of Ministry of Steel, Govt. of India and as
per Articles of Association, the President of India shall appoint all members on the Board
of Directors. The present composition of the Board of NMDC Ltd. consists of 4 (Four)
Executive Directors including Chairman and Managing Director and 2 (Two) Government
Nominee Directors and 4 (Four) Independent Directors. At present there is a vacancy of 2
(Two) Independent Directors including vacancy of atleast one Woman Independent Director
needs to be filled in by Ministry of Steel, Govt. of India. All the observations are due
to not having requisite number of Independent Directors. The Company is regularly
following up with Ministry of Steel, Govt. of India for appointment of requisite number of
Independent Directors on the Board of the Company. The Board of the Company has also been
informed in this regard at regular intervals.
43.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS
Report on compliance with principles of Global Compact is at
Annexure-VI.
44.0 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT /
HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES / ASSOCIATE COMPANIES / JOINT VENTURES (FORM
AOC-1) IS ENCLOSED AT ANNEXURE-VII.
45.0 REPORT ON CSRACTIVITIES
Report in terms of the Companies (Corporate Social Responsibility
Policy) Rules, 2021 is at Annexure-VIII. The Report on CSR inter alia, outlines details of
CSR Policy and various CSR initiatives of the company for the year under review.
46.0 RECOMMENDATIONS MADE BY THE COMMITTEE ON PAPERS LAID ON THE TABLE
(RAJYA SABHA) IN ITS 150TH REPORT - DETAILS TO BE PROVIDED IN THE ANNUAL REPORT.
Details to be provided in the Annual Report in terms of recommendations
made by the Committee on Papers laid on the Table (Rajya Sabha) in its 150th Report is
enclosed at Annexure-IX.
47.0 ACKNOWLEDGEMENT
Your Directors gratefully acknowledge the support, cooperation and
guidance received from the Ministry of Steel, Ministry of Mines and Ministry of Forests
& Environment and other Departments of Government of India and the State Governments
of Andhra Pradesh, Chhattisgarh, Karnataka, Madhya Pradesh, Jharkhand and Telangana.
Your Directors acknowledge the support extended by the valued and
esteemed international and domestic customers, Shareholders stakeholders, MMTC, Chennai
Port Trust, Visakhapatnam Port Trust, Railways and other Departments of the Central and
State Governments. We believe that oui long-term success is dependant on our domestic
customer relationship and responsiveness. We will do everything possible to provide our
customers better, timely and value added services.
The success of your Company is due to the commitment and dedicated
efforts of the managers and employees at all levels. Your Directors place on record their
appreciation and also acknowledge the support and co-operation of All India NMDC Workers'
Federation and their members for the smooth functioning of the Company's operations.
| Place : New Delhi |
|
| Date : 27.06.2022 |
SUMIT DEB |
|
Chairman and Managing Director |
|
DIN:08547819 |