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Updated:18 Jun, 2021, 15:59 PM IST

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Updated:18 Jun, 2021, 16:00 PM IST


Dear Members,

Your Directors are pleased to present the 57th Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31st March 2015 and the Report thereon by the Comptroller and Auditor General of India.


During the year under review, the Company has recorded turnover of Rs.12,356 crores, achieved Profit Before Tax (PBT) of Rs.9,768 crores and achieved Profit After Tax (PAT) of Rs.6,422 crores.

The major performance highlights are summarized as under:

• Achieved highest ever Iron ore production of 304.41 LT since inception and crossed the 300 LT barrier for the second year in succession.

• Achieved highest ever Iron ore sales of 305.16 LT since inception and also crossed the 300 LT barrier for the second year in succession.

• Turnover for the year under review was Rs.12,356 crores compared to Rs.12,058 crores in the previous financial year 2013–14 recording an increase of 2.5%.

• Profit Before Tax (PBT) was Rs.9,768 crores compared to Rs.9,759 crores in the previous financial year 2013–14 recording an increase of 0.09%.

• Profit After Tax (PAT) was Rs.6,422 crores compared to Rs.6,420 crores in the previous financial year 2013–14 recording an increase of 0.03%.

• Net worth increased to Rs.32,326 crores as on 31.03.2015, 8% higher than Rs.29,983 crores in the previous financial year 2013–14 and is the best ever in the history of the Company.

• The Company has declared a total Interim Dividends of Rs.7.25 per share during FY 2014–15.

•Capital expenditure of Rs.3,136 crores incurred during the year is the highest since inception in any given year.

•Awarded the prestigious Platts Global Metal Award 2015 in "Raw Material and Mining Category". NMDC is the first mining company of India to have been bestowed with this most prestigious global award.

•Load trial commenced from Bailadila Iron Ore Deposit –11/B which has a capacity of 7.0 MT of ROM per annum.

•Incorporated two wholly owned subsidiary companies viz. Karnataka Vijaynagar Steel Ltd. and NMDC Steel Ltd.

.2 Profit & Dividend

During the year under review, your Company has earned profit before tax from continuing operations of Rs.9,769 crores on a turnover of Rs.12,356 crores in comparison with previous year's achievement of Rs.9,761 crores and Rs.12,058 crores respectively.

The Company has declared first Interim Dividend for FY 2014–15 @ Rs.3/– per share involving an outgo of Rs.1,189.41 crores. Second Interim Dividend for the financial year 2014–15 was declared @ Rs.4.25 per share involving an outgo of Rs.1,685.01 crores.

The Board of Directors at its meeting held on 28.05.2015 has recommended declaration of Final Dividend of Rs.1.30 per share subject to approval of the shareholders. The total dividend including final dividend if approved, aggregates Rs.8.55 per share.

The total dividend for the current year is Rs.3,390 crores. Share of Government of India at equity stake of 80% is Rs.2,712 crores.


The company proposes to transfer an amount of Rs.1,000 crores from net profit to General Reserve.


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


The Company has in place adequate Internal Financial Control Systems commensurate with its size and operations.


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


With respect to Rule 8(2) of the Companies (Accounts) Rules, 2014 there is no contract or arrangements with Related Parties referred to in Sub–Section(1) of Section 188 of the Companies Act, 2013.


The Auditor's Report and Secretarial Audit Report for the year under review does not contain any qualification, reservation or adverse remarks.


8.1 Projects under construction

8.1.1 Bailadila Deposit – 11/B

With a strategic vision to augment production, the construction of Deposit 11B mine at an enhanced capacity of 7.0 Million Tons of ROM per annum has been taken up. The estimated capital expenditure towards this is Rs.607 crores. Out of this Rs.320 crores is for Plant and Rs.188 crores is for mining machineries. Naxal activities have seriously hindered the progress of the project work. Construction activities have completed and integrated load trials were undertaken  on 29th March 2015.

8.1.2 Kumaraswamy Iron Ore Project

As an addition to present Donimalai Iron ore Mine and augmenting production capacity, the construction of Kumaraswamy Iron Ore Mine with a capacity of 7.0 MTPA is being taken up  with an estimated capital outlay of Rs.898.55 crores. MECON is appointed as the EPCM consultant. The entire project is being executed through six packages. Orders have been placed for all the packages and the works are in progress. Primary Crusher package trial runs are in progress. Civil & structural works are almost complete. Finishing works are in progress. Erection of fabricated structures for Down Hill conveyor package is in progress. Service centre, water supply, civil and structural works are in progress. The project is expected to be complete during the FY 2015–16.

8.1.3 1.2 MTPA Pellet Plant at Donimalai

One of the main objectives of this project is to prolong the life of the Tailing Dam at Donimalai by using slimes for making pellets. M N Dastur & Co. is appointed as the EPCM consultant. Execution of the Project is divided into Six Packages. The estimated capital expenditure is Rs.572 crores. Major civil works completed. Major Technological equipment erection completed. Trial runs are in progress. Project is scheduled to be completed in FY 2015–16.

8.1.4 3.0 MTPA Integrated Steel Plant in Chhattisgarh

As you are aware, your Company is setting up a 3.0 MTPA Integrated Steel Plant at Nagarnar near Jagdalpur in Bastar District of Chhattisgarh at an estimated cost of Rs.15,525 crores where the Company is in possession of about 2120 acres of land for the steel plant, township (Construction colony and Studio Apartments) and for other facilities.

Necessary statutory clearances including Environmental Clearance from Ministry of Environment & Forests (MOEF) and the Government of Chhattisgarh have been obtained. Rail Transport Clearance was received and the Final Detailed Project Report of Railway siding is also approved by East Coast Railway. Government of Chhattisgarh has sanctioned water and power for construction as well as for operation of the plant. Regarding power for operation of the steel plant, Chhattisgarh State Power Transmission Company Limited (CSPTCL) has awarded work order for the construction of 400 KV transmission line from Raipur to Jagdalpur (about 320 Kms.), 400/220 KV substation at Jagdalpur and 220 KV transmission line from 400/220 KV Substation to NISP Nagarnar and the work is progressing at site. The cost of construction of

400 KV transmission line from Raipur to Jagdalpur and substation at Jagdalpur will be equally shared  by NMDC & CSPTCL. For the 220 KV power from  Jagdalpur to Nagarnar the entire cost will be borne  by NMDC.

Engineering Consultancy and Project Monitoring Services contracts have been awarded to  M/s. MECON Ltd.  For expeditious execution and commissioning of the Steel Plant, the nine Major Technological packages in respect of various production units viz. Sinter Plant, Blast Furnace Complex, Raw Material Handling System, Coke Oven Plant,  By Product Plant, Steel Melting Shop, Thin Slab Caster & Hot Strip Mill, Lime & Dolo Plant and Oxygen Plant have been awarded on turnkey basis. Most of the auxiliary packages have also been awarded. Installation of the plant is moving at fast pace. Already more than 50% of major civil work has been completed and structural as well as equipment erection is at various stages of completion.

Tender enquiry is issued for Twenty two Auxiliary packages including Railway siding, Enabling works & Infra packages and same are at various stages of pre–award. Remaining Eighteen packages are at different stages of tender document finalization. Till date, NMDC has invested Rs.7,006 crores in the Steel Plant.

8.1.5  Ore Beneiiciation and Slurry Pipeline transportation system from Baiiauiia to Vizag

The Slurry Pipeline Transportation System is intended for transportation of Pellet Feed Concentrate from Bailadila to Vizag via Jagdalpur along National/State Highways with a provision of partial  off–take at Nagarnar for making Pellets required for feeding to NMDC's proposed Steel Plant at Nagarnar. For part of this Project, investment proposal involving 2 MTPA Ore Processing Plant at Bacheli, 15 MTPA Slurry Pipeline system from Bacheli to Nagarnar and 2 MTPA Pellet Plant at Nagarnar has been approved by NMDC Board. Mecon is engaged as the EPCM Consultant for this part of Project and basic engineering is in progress.

Other pre project activities viz., Detailed Route Survey, Environmental clearance, Forest clearance, crossing permission from Railways & National Highway Authorities, MoU with Chhattisgarh State Government for sanction of utilities (Water and Electrical power) are also taken up and are in progress.

8.1.6 Panthal Magnesite Project

J&K Mineral Development Corporation Limited (J&KMDC), A subsidiary of NMDC Limited has decided to set up a 30,000 TPA Dead Burnt Magnesite plant at Panthal, Jammu.

M/s Dastur & Co. is the EPCM consultant for this project. The project is planned to be executed in four major packages. Soil investigation work is completed. Work order is placed for "Balance Civil Works" package and execution is in progress.

8.1.7 Screening Plant III at Kirandul Complex

To augment the production capacity of Kirandul Complex the construction of 12.0 MTPA screening plant with loading facilities is envisaged. This plant caters to both Dep. 11–B & Dep. 14 of Kirandul Complex. 

The estimated capital expenditure is Rs.951 crores TATA Consulting Engineers (TCE) is appointed as the EPCM consultant. The entire project has been planned to be executed in seven packages.

MoEF has accorded 1st stage clearance in Jan’2012. Environmental clearances received on 05.11.2013. 2nd stage forest clearance received on 10.04.2015.

8.1.8 Doubling of Railway Line between Kirandul and Jagdalpur

NMDC has signed a MoU with Ministry of Railways on 21.12.2012 and the said Project is helpful to augment evacuation capacity of Bailadila Sector by rail from the existing 28 MTPA to 40 MTPA of iron ore. The estimated cost is Rs.1,143.60 crores at 2013 price level and the expected date of commissioning is Jan' 2019. An amount of Rs.150 crores has been deposited with East Coast Railways and the expenditure incurred as on 31.03.2015 is Rs.132.00 crores.

For execution purpose, Railways has divided the 150 km length of doubling work into three Sections namely, Jagdalpur to Silakjori 45.50 km, Kirandul to Gidam 52.23 km and Silakjori to Gidam 52.73 km. Work has already started and the progress in Jagdalpur to Silakhjori section is 34%, Kirandul to Gidam is 5.5%. In Gidam to Silakjori section, tender action is in process.

8.1.9 Steel Plant at Bellary

In pursuance of the MoU signed between the Government of Karnataka and your Company, action for setting up of a 3 MTPA Integrated Steel Plant at Bellary, in the State of Karnataka has been initiated by the Company. Acquisition of about 3000 acres of land for the proposed steel plant through Karnataka Industrial Areas Development Board (KIADB) was under progress subsequent to publication of statutory preliminary notifications in the gazette of Karnataka in this respect.

Govt. of Karnataka had issued final notification under Section 28(4) of KIAD Act 1966 declaring private land of about 2850 acres is acquired by State Govt. So far, the Company has deposited Rs.158.68 crores with KIADB, being the tentative cost of the land plus service charges payable to KIADB in terms of the agreement executed between your Company and KIADB.

As a next step, NMDC to deposit balance amount as per the rate finalized and approved by Govt. of Karnataka. Thereafter, KIADB to disburse the compensation to individual land owners and hand over the possession to NMDC.

Government of Karnataka also accorded approval towards allotment of water and power for operation of the proposed steel plant. M/s MECON has been engaged as consultant for preparation of Techno Economic Feasibility Report (TEFR).

8.1.10 Rail Link between Dalli–Rajhara–Rowghat–Jagdalpur Railway Line Project

Laying of Railway line from 0 to 17 km from Dalli–Rajhara to Dondi towards Rowghat has been completed. Work on the next phase i.e. from 18 to 42 km from Dondi to Kaveti is in progress. Construction of Rail line from DaIli–Rajhara to Rowghat 95 km is being co–ordinated by SAIL with Railways.

Work on the section from Rowghat to Jagdalpur, 140 km at an estimated cost of Rs.2,000 crores, which NMDC is partly funding, is yet to start. The project shall be used for both freight and passenger services. This section of the rail line work is proposed to be implemented by a Joint Venture Company (JVC) having equity participation of Govt. of Chhattisgarh, NMDC, SAIL and IRCON.

8.2 NMDC Global

Strategic Alliances

8.2. I

Gold in tanzania

In Tanzania, your Company has been granted 4 Mining Licenses for Gold over an area of 38.83 sq.kms. for a period of 10 years w.e.f. 12.03.2012. Your Company has been granted PL renewal of Masabi East area. Board has decided that Gold Mining Project at Bulyang'Ombe will be developed by NMDC. Necessary steps are being taken to start the mining activities in the Bulyang'Ombe ML areas and to put up a Pilot Plant for recovery of gold concentrate. The Pilot Plant will be commissioned in 2016–17. Renewal of Retention License at Siga Hill area is under process with Government of Tanzania.

8.2.2  Australia

Legacy iron ore, Perth, Australia

Legacy Iron Ore Ltd is an ASX listed entity based in Perth, Australia with a focus on iron ore, gold and base metals. NMDC had participated in the Legacy Iron's rights issue in August 2014 and subscribed to it's portion of equity with an investment of A$12.11 million. Post rights issue, NMDC's equity in Legacy Iron had increased from 48.82% to 78.56%.

Legacy is presently carrying out exploration in it's 21 exploration tenements in Western Australia in Iron Ore, Gold and base metals. Legacy has 60% interest in Mt Bevan Iron Ore Project which has a JORC compliant Indicated and Inferred resource of 1.17 billion tonnes magnetite. Legacy's major gold focus lies in the South Laverton region and base metals focus lies in the Koongie Park region of Western Australia.

8.2.3 Acquisition of significant stake in VPC's potash project in Russia

NMDC signed an MoU with Acron [on behalf of consortium led by NMDC and comprising fertilizer companies (NMDC–50%, RCF–15%, KRIBHCo–15%, NFL–10% and FACT–10%)] on 11th December 2014 during Indo–Russia bilateral. The due diligence has been completed and finalization of valuation is in process.

8.2.4 R&D for alternative iron making technology

NMDC is exploring the option to enter into an area of iron making R&D jointly with M/s ECT (Environment Clean Technologies) Limited, an ASX listed company in Melbourne, Australia which has developed and patented MATMOR technology and Neyveli Lignite Corporation. This technology, aimed at upgradation of low grade iron ore and steel mill waste, will be developed jointly as an alternative to the traditional steel making process and will use lignite in place of metallurgical coal. At present advanced lab scale testing to establish the process engineering and feasibility of the process is underway.

8.2.5 international coal ventures Pvt. Ltd. (icvl)

ICVL had recently acquired Rio Tinto Coal Mozambique (RTCM) by which ICVL has 65% ownership in Benga Coal Project and 100% interest in Zambeze, Tele East and other coal exploration projects. The SHA was signed on 28th July 2014 and transaction was completed on 7th October 2014. ICVL is presently engaged in post acquisition management and streamlining the coal operations at Benga mine.

8.2.6 Kopano NMDC Minerals (Pty) Limited

The JV with Kopano had reviewed several coal and manganese projects in South Africa. The Company had also taken up various strategic options for tie ups with other companies in the present market scenario.

8.3 Leases for minerals

8.3.1 Iron Ore In respect of Bailadila–1 & 3

Your Company has filed Writ Petition before the Hon'ble High Court of Delhi against allotment of Deposit–1 in favor of Tata Steel & PL of Deposit–3 in favor of ESSAR Steels. The Writ Petitions are being heard before the Hon'ble High Court of New Delhi. The PLs being pursued in Chhattisgarh

Your Company has applied for 2 PL's in Dantewada District and is pursuing the PLs with Chhattisgarh Govt. In Jharkhand  Sasangoda:

A JV Company (NMDC 60% & JSMDC 40%), Jharkhand National Mineral Development Corporation Limited  (JNMDC) has been incorporated on 06.08.2012, with its registered office at Ranchi. DMG, Government  of Jharkhand has granted PL for iron ore & Manganese in Sasangoda NE area in favor of JNMDC Limited  for a period of 3 years. Detailed Geological mapping and topographical survey have been completed. Forest  Clearance application for conducting drilling and other exploration works is submitted to MoEF. LOI has  been issued for carrying out exploratory drilling in the PL area. Forest permission is awaited.

MoU with DMG, Jharkhand:

Your Company has signed MoU with Dept. of Mines & Geology (DMG), Jharkhand for exploration of  Iron ore and other minerals in the State of Jharkhand. Under the MoU signed, your Company is executing  exploration for iron ore in Silpunji – Kantoria area in West Singhbhum Dist. Geological mapping and  topographical survey on 1:4000 scale has been completed.

Other PL Applications:

Your Company has applied for 3 PL's (March 2011) in West Singhbhum District. In Karnataka

Your Company is pursuing for ML for Ramandurg and Kumarswamy Deposit (contiguous to ML No.1111).  Ramandurg iron ore deposit is subjudice, pending in the Hon'ble Supreme Court of India  The Hon'ble High Court of Karnataka vide order dated 02.01.2014 has disposed of the case of Kumarswamy  iron ore deposit providing relief to NMDC. Your Company has applied for 7 ML application (Aug 2007)  in Chitradurga, Bellary, Tumkur and Bagalkote Districts.

In addition, your Company has also applied for another 6 PL applications (June 2010) in Tumkur, Bellary and Chitradurga Districts. Your Company has applied for 5 ML applications in Karnataka (3 against Govt. Notification & 2 in Donimalai Range (Dec 2010). In Odisha

Your Company is pursuing for ML for Mankadnacha iron ore.

8.3.2 Gold In Jharkahand

Your Company is pursuing for ML / PL for Pahardia – Rungikocha (West Singhbhum District) and Parasi–  Kutachauli–Khotadih (Ranchi District).

8.3.3 Diamond In Andhra Pradesh

Your Company is pursuing forest permission for exploration in 3 PLs falling in the Forest area (Renewal application submitted) in Kalyandurg area, Anantapur District. Forest permission & renewal is expected shortly

Your Company has submitted two more PL applications for Diamond and Iron Ore in Anantapur district on 25.09.2012 and 23.10.2013 respectively. In Madhya Pradesh

Your Company has carried out exploration work in granted 2 PLs (Baghain & Sarang). Exploration report  submitted to State Government, based on the exploration work in Baghain PL area, 2 prospective  areas were identified and applied for PL's. Your Company has also been granted the PL of Rampura  Motwa (Renewal application submitted) for a period of two years. Your Company has applied  for two more PLs in Panna District of Madhya Pradesh. Exploration works in granted PL is under  progress.

Your Company is pursuing for 5 PLs in Panna district viz., Karmatia, Lakshmipur, Pali, Khirwa South &  Khirwa West for early grant in favour of NMDC.

Your Company has applied for RP for Diamond in Chhatarpur, Panna & Damoh Districts and PL for Iron  Ore in Sagar & Tikamgarh Districts.

Tikamgarh RP

Your Company was granted Reconnaissance Permit (RP) on 30.09.2009 in the Tikamgarh  District. Exploration work has been completed under RP and the Exploration cum Relinquishment  Report has been submitted. Your Company has applied for 5 PLs in Tikamgarh after completion of the  RP works.

8.3.4 Platinum Group of elements In Uttar Pradesh

Your Company is pursuing for PLs for Tsganan area, Dangli and Dangli RF in Lalitpur District.

8.3.5 Coal

The Honourable Supreme Court cancelled all  the Coal Blocks allotted by Govt. of India vide its verdict dated 24.09.2014. Thus our two Coal blocks viz Shahpur East and Shahpur West were also de–allocated. Hence, all the activities taken up for developing these blocks were stopped.

Based on the new Coal Mines (Special Provisions) Act, 2015, the company is trying to get a few good coal blocks through auction and Government allocation route.

8.3.6 Bauxite In Jharkahand

Your Company is pursuing for PL / ML for Mahaudih village, Kujam village, Utani, Akasi and Putrang villages, Kotih village, Kujam and Chirodih villages in Gumla District.

8.3.7 Dolomite: In Chhattisgarh

Your Company is pursuing ML application for Sadartera Dolomite Deposit.


A) The subsidiaries of NMDC are managed by Board 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.

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

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

c) Incorporation of two wholly owned subsidiaries

During the year under review, two wholly owned subsidiary companies by the name Karnataka Vijaynagar

Steel Ltd. and NMDC Steel Ltd. have been incorporated on 29.12.2014 and 02.01.2015 respectively.


The Company is in the process of implementation of integrated management Systems (IMS) which includes  ISO 9001:2008; ISO14001:2004; OSHAS 18001:2007 and SA 8000:2008 standards in respect of  four major production projects, i.e., NMDC’s four major production projects, i.e., Bailadila Kirandul Complex (Deposit–14/11C,  11B) Bailadila Bacheli complex (Deposit–5,  10&11a) and Donimalai and Kumaraswamy  Projects.

The company has obtained Environmental  Clearance on 05–11–2013 and 2nd stage  Forest Clearance on 10.04.2015 from MoEF  & CC for construction of Screening Plant –  III for expansion of production capacity of Bailadila Dep–14/11c,11B projects at Kirandul complex South Bastar Dantewada District C.G; Obtained Stage–1 Forest Clearance on 12.11.2014 for diversion of 315.813 ha forest land and Environmental Clearance on 7.05.2015 from MoEF &CC for development of Bailadila Iron Ore Project, Deposit–13, (JV with CMDC Ltd) at Kirandul Complex South Bastar Dantewada District, C.G.; Obtained Terms of Reference for Bailadila Iron Ore Project Deposit–4 (JV with CMDC Ltd) at Bacheli South Bastar Dantewada District C.G for processing of Environmental Clearance application.; On 4.4.2015, successfully completed public consultation for construction of 2 MTPA Beneficiation Plant at Bacheli complex South Bastar Dantewada District C.G.; Obtained Stage 2 forest clearance on 10.04.2015 for Arki Limestone Project at District Solan H.P for Diversion of 84.36 Ha forest land falling within Mining lease of Arki Limestone Project, Shimla.

The Company is organizing environmental monitoring studies at all the production projects by engaging MOEF recognized laboratories. Studies indicate that PM10, PM2.5, SO2, NOx and CO levels at all the production projects are well within the prescribed limits as per MoEF / CPCB and State Pollution Control Board Standards.

10.1 Sustainable Development Performance

In compliance with GoI, Department of Public Enterprises, New Delhi guidelines on Sustainable Development (S.D) for central public sector enterprises (CPSE's) for the purpose of performance evaluation under MoU system, for the year 2014–15, the company has undertaken the SD activity of:

a) Installation of STP at Donimalai Project for sewage water treatment and recycling of water at a cost of Rs.8.42 crores.

b) Carbon Disclosure Project (CDP): In order to disclose Green House gas assessment on global platform, NMDC has taken up GHG assessment for the year 2014–15 and disclosing of GHG emissions of the projects under Carbon Disclosure and Climate Change program at NMDC four major Iron Ore Mining projects i.e., Bailadila Kirandul Complex, Bailadila Bacheli Complex and Donimalai and Kumaraswamy projects. The studies are under progress.

c) Performance evaluation of SD projects of NMDC Bailadila Dep–5, 10&11A, Bailadila Dep–14/11C, Donimalai for the period 2013–14 has been successfully completed.


Mine Safety – Activities

NMDC has its training centers at 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 have been conducted in each of the operating mines. This meeting is 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 Meetings are being held regularly once in a year at Head Office. 25th Corporate Level Tripartite Safety Committee Meeting of Donimalai Iron Ore Mine / Kumaraswamy Iron Ore Mine was conducted for Bailadila Iron Ore Mines and Diamond Mining Project.

Safety Committees have been constituted in every operating mine and pit safety meetings are held every month discussing the safety matters and corrective actions related to work atmosphere. Man days lost per 1000 man days worked for the year 2013–14 is 0.52 and 0.21 for the year 2014–15.


ISO 9001:2008 Certification:

NMDC Projects – BIOM, Kirandul Complex; BIOM, Bacheli Complex; Donimalai Iron Ore Mine and R&D Center are accredited with ISO 9001:2008 Certification. Surveillance Audit II for Donimalai Iron Ore Mine was successfully conducted in the month of October 2014. Surveillance Audit II for BIOM, Bacheli Complex and BIOM, Kirandul Complex is scheduled. Surveillance Audit I for R&D Centre was successfully conducted in the month of November 2014.

OHSAS 18001:2007 Certification:

NMDC Projects – BIOM, Kirandul Complex; BIOM, Bacheli Complex; Donimalai Iron Ore Mine and Diamond Mining Project, Panna are accredited with OHSAS 18001:2007 Certification. Re–Certification Audit for DMP, Panna was successfully conducted in the month of January 2015. Surveillance Audit II was conducted at BIOM, Kirandul Complex; BIOM, Bacheli Complex in the month of March 2015 and Donimalai Iron Ore Mine in the month of April 2015.

OHS Activities:

Occupational Health Services have been provided with adequate manpower and infrastructure and are functioning in fullfledged 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, with a planned programme.

Safety Management System:

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


With the objective of improving transparency in public procurement and contracts, we have entered  into MoU with Transparency International India for implementation of Integrity Pact Programme during  September 2007.

We are one of the first Mining Navaratna Company to have entered into the Integrity Pact Programme  during the year 2007.

For covering the majority of the procurements initially (2007), the threshold values for entering into  the Integrity Pact have been fixed as follows:

Civil Works – Rs.50.00 crores

Contracts – Rs.50.00 crores

Procurement – Rs.15.00 crores

To widen the coverage of Integrity Pacts, the threshold limits have been revised from 2009 onwards  as follows:

Civil Works – Rs.20.00 crores

Contracts – Rs.20.00 crores

Procurement – Rs.10.00 crores

1st Batch of IEM

1. Shri M. Gopalakrishna, IAS (Retd.)

2. Dr. S. Ramnarayan, Prof. ISB, Hyderabad  

From 04.10.2007 to 30.09.2010

2nd Batch of IEM

1. Shri S. Anwar, IAS (Retd.), From 21.09.2010 to 30.09.2013

2. Dr. J.S. Juneja, Former Chairman, NSIC, From 01.10.2010 to 30.09.2013

3rd Batch of IEM

1. Shri Ajit Kumar Jain, IAS (Retd.), From 26.12.2013

2. Shri Ramesh Chandra Panda, IAS (Retd.), From 19.12.2013

The review meetings with IEMs are conducted regularly on a quarterly basis.

14.0 NMDC's R&D Centre at Hyderabad

NMDC has a R&D Centre at Hyderabad which has been recognized as a "Centre of Excellence" by UNIDO.  The centre has capabilities for undertaking studies on mineralogy, batch ore dressing, mineral beneficiation  pilot plant, agglomeration, pyro and hydro metallurgy, bulk solids flowability with facilities for chemical  analysis, electronic data processing and development of new products.

15.0 Global Exploration Centre, Raipur

NMDC's Global Exploration Centre at Raipur is continuously doing exploration in the mines of NMDC  and adding new reserves every year. NMDC has offered to State Governments to undertake exploration  to quantify mineral resources in the State and under section 4(1) of the MMDR Act, 1957 in line with  GSI, MECL, AMD and State DMG. As per new MMDR Act, 2015, NMDC has been authorized by Central  Government to carry out exploration works.


NMDC continued its efforts to successfully implement Official Language Policy of Govt. of India at its Headquarter, Projects and Units. In order to train officers and employees to do their official work in Hindi,  04 Hindi Workshops at Headquarters and 22 Hindi Workshops at Projects / Units were conducted during  the year. Training on Unicode Hindi Software  was also imparted. Hindi Stenography  training classes were conducted and  12 Stenographers passed Hindi Stenography  training.

Organizing meeting of Rajbhasha  Representatives nominated in various  departments at Head Office for increasing usage of Rajbhasha was an innovative effort. An orientation programme for Hindi officers of Projects / Units was organized to give impetus and right direction in implementation of Official Language. During the year Rajbasha Technical Seminars were conducted.  propagate use of Official Language, cash incentive schemes for noting and drafting in Hindi, working on computer in Hindi, dictation in Hindi were operated. Hindi

Fortnight was organized during which various  competitions were conducted and prizes  were distributed.

Meetings of Official Language  Implementation Committees of Headquarter  and various projects/units were conducted in  every quarter. To monitor implementation of  Official Language Policy and suggest ways  and means to improve upon that, inspections  of various projects and units were done and  desk trainings were also conducted during  such inspections. Various Departments at  Headquarter were also inspected.  Hindi / bilingual magazines viz Sarjana,  Takaneeki Sopan, Takaneeki Khitij, Baila  Samachar, Bacheli Samachar, Doni Samachar, NISP Patrika and NMDC Samachar were published from Head  Office and Projects.

17.0 Details required to be furnished in terms of Micro, Small and Medium Enterprises Development  Act, 2006 (MSMED).

NMDC is looking to improve its Vendor base under MSE category in procurement of goods. It always  supports and encourages the participation of local and MSEs in various procurements. NMDC has given  Expression of Interest for vendor empanelment of MSEs during 2014–15.

During the FY 2014–15, NMDC has participated in various National and State level Vendor development  programmes / MSME Expo for Buyer – Seller meet at Hyderabad, Warangal, Raipur, Bangalore and Hubli.  Besides, NMDC has also participated in the National Vendor Development Programme organized by Dalit  Indian Chamber of Commerce & Industry (DICCI) at Hyderabad.

18.0 Manpower

18.1 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.

18.2 Scheduled Castes & Scheduled Tribes

22 candidates belonging to Scheduled Caste and 10 persons belonging to Scheduled Tribes were appointed  in the year 2014 against 130 posts filled by direct recruitment

18.4 Particulars of employees drawing remuneration of Rs.5 lakhs per month or Rs.60 lakhs per annum  under Section 197 of the Companies Act, 2013 read with Companies (Appointment and  Remuneration of Managerial Personnel) Rules, 2014. : Nil

18.5 Staff Welfare activities

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

18.6 Promotion of Sports

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

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

No case has been filed during the year 2014–15 under the provisions of the Sexual Harassment of Women  at Workplace (Prevention, Prohibition and  Redressal) Act 2013.


The activities under Human Resource  Development witnessed a paradigm shift  during FY 2014–15. Online Training Need  Assessment started first time during FY  2014–15.

Apart from Learning and Development  (L&D) Interventions in various Customized  Interventions like Project Management,  Entrepreneurship Development, Advanced  Management Programs (AMP), Mentoring  and Coaching etc., certain decisive HR  Interventions has been done in the area of  "Organization Climate Survey (OCS)" and "Employee Satisfaction Survey (ESS)". For the first time,  Assessment Development Centre concept was introduced for the Succession Planning by covering  32 nos. Executives in the level of E–7 and above.

A total 780 nos. Executives attended In–Company Training Programs conducted by reputed  Management Institutes like ASCI, ESCI, IPE, COD and a total 643 nos. Executives covered  by External Training Programs on various topics conducted by various professional bodies all  over India.

Under the Foreign Training Programs, a total 26 nos. of Executives benefitted from exposure to  prestigious Professional bodies, Management Institutes and Colleges located abroad. Apart from the  above, two women Executives participated in three months duration Course conducted by ASCI in  collaboration with International Certificate Program in Business Management (ICP–WX) in Slovenia  (Europe).

Quality Circles and Skill Development of Workers was given added flip. Like previous year, the   Company has bagged Best organizational Award in QCs by Quality Circle Forum of India, Hyderabad.  A total of 25 QCs participated out of which 19 got Gold, 5 Silver and 1 Bronze. NMDC Quality  Circles (12 QCs) participated at National Convention in December 2014 at Pune and won Par  Excellence (5 QCs), Excellence (2 QCs) and Distinguished (5 QCs). Awards at National level.

HRD Department has got "Excellent" rating under MoU Parameters during FY 2014–15 and Training  Mandays per Employee is 4.5 against the Target of 3.2 Mandays achieved.

For overall performance in "Training Excellence" Indian Society for Training in Development (ISTD),  Hyderabad Chapter conferred NMDC Best  Corporate HRD Award during the year.


NMDC’s Vigilance Department had taken several initiatives during the year. Various programmes were conducted for awareness on vigilance matters for the employees of the Corporation. Emphasis was laid on adequate checks and balances in the form of well defined systems and procedures. The vigilance functionaries at the projects have conducted regular training classes for the employees on the vigilance matters. Executives of Vigilance

Department were sent for training / workshops being organized in India. During the year 119 surprise checks, 91 regular inspections and 22 CTE type inspections were conducted. Complaints received were taken up for investigation and necessary disciplinary action, wherever required, was recommended.

The following thrust area studies have been taken up for the year 2014–15 for improvements if any, which are as follows.

i) Ore despatches by rail & road including penalty and demurrage payments including chemical analysis of ore.

ii) Maintenance contracts of HEM Equipments (MARC & CAP).

iii) Availability of HEM equipments.

iv) CSR activities.

Vigilance Department in NMDC is certified under ISO 9001:2008 conforming to the Quality Management System. It has been certified as per ISO standards since October 2006 by Integrated Quality Certification Private Limited, Bangalore. For re–certification of Quality Management System (QMS) of Vigilance Department, M/s TQ Services conducted an external audit on 19.10.2013 and ISO certificate was extended up to 09.02.2016. Surveillance Audit was conducted by M/s TQ Services on 09.12.2014.

In–house quarterly magazine of the Vigilance department "Sphoorthy" is being published periodically.

As part of implementation of "Leveraging of Technology for transparency" in all the transactions, information about limited tender enquiries above Rs.30 lakhs, details of contracts concluded above Rs.10 lakhs, works awarded on nomination basis, single tender basis above Rs.1 lakh, information regarding bill payments to the contractors etc., are provided on the company's website. Efforts to encourage e–procurement, e–tender, e–auction are being made continuously.

NMDC has adopted implementation of Integrity Pact since November, 2007. The threshold limit of Rs.20 crores in case of civil works and contracts and Rs.10 crores in case of procurement is being followed.

Till date, the Integrity Pact has been entered into 75 contracts with a value of Rs.20,131.65 crores. As such, more than 90% of the total value of the contracts are covered under Integrity Pact. In addition, implementation of e–procurement and e–auction have been taken up.

The Vigilance Awareness Week was observed from 27.10.2014 to 01.11.2014 with the theme "Combating Corruption – Technology as an enabler". An interactive session by Shri A.P. Choudhary, CMD–RINL (Retd.) on the said theme was arranged for the employees.

During the week, a workshop on "ERP – Technology as an enabler for transparency" by Shri T.C.A.S. Prasad, Advisor (ERP) was organized. On the concluding day, a talk by Dr. S. Subramanian (Retd. IPS), Founder–Patron, Vigilance Study Circle was arranged on the topic "Ensuring ethical climate in organizations".

Shri D.S. Ahluwalia, Director (Finance), NMDC received the 'Dun & Bradstreet India's Top PSUs Awards 2015' in Metals and Minerals Sector on behalf of the company from Shri Anand G Geete, Hon'ble Minister of Heavy Industries and Public Enterprises on 23rd July A work shop on "e–Selling and e–Procurement" through M/s mjunction, Kolkata was organized in Hyderabad on 28.03.2015. The workshop was inaugurated by Shri Narendra Kothari, CMD, NMDC and was attended by 150 executives from within the organization as well as from other PSUs.


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

(a) in the preparation of the annual accounts for the financial year ended 31.03.2015, the applicable accounting standards had been followed along with proper explanation relating to material departures;

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

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

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

(e) the Directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

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


The Independent Directors have given a declaration on meeting the criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013 in the FY 2015–16. The Board of Directors at its 483rd meeting held on 10.04.2015 has noted the declaration as made by the Independent Directors.


During the year under review 9 meetings of the Board was held. For further details, reference may kindly be made to Corporate Governance Section of the Annual Report.



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 all Functional Directors (excluding CMD) and one Independent Director.


The Board of Directors at its 485th meeting has approved the Vision Plan of NMDC (SMP–2025). In terms of the Vision Plan, NMDC has an aggressive Growth Agenda for FY2025 incorporating the following:

Increase Iron Mining capacity to 75 MTPA by FY19 and 100 MTPA by FY22 from present level of 34 MTPA.

Strengthen exploration and forward–integrate to value added business (Pellet, Steel).

Strategically diversify into other commodities based on growth potential, relevance to NMDC.

Invest in other geographies selectively based on "mining potential" and "business environment".

To accomplish the growth agenda, the company has to manage multiple Strategic Transformations:

Business Strategy: From "single commodity, geography" to "multiple commodities and globally diversified".

Operations Strategy: From 34 MTPA Iron Miner to 100 MTPA with integration to value–added businesses.

Sustainability Strategy: From being in suppliers' market to being compliant and profitable in buyers'  market.

Capital Projects Strategy: To manage significant capital investment in next 5 – 10 years.

Human Resources Strategy: From having mining skills to having skills in mining, metals, other businesses.

IT Strategy: From a basic level of IT maturity to be enabled by Leading Practices of Digital Innovations.

Imperative to find new markets & customers to sell 75 MTPA and 100 MTPA of Iron Ore by FY 2019 and FY 2022 respectively.

Even optimistic offtake scenario from existing customers would lead to significant surplus ore to be sold.

Global and Indian Iron Ore industry is projected to remain in over–supply situation.

India is likely to face increasing pressure of Iron–ore import from Big–3 miners (Vale, BHP Billiton  and Rio Tinto).

Need to assess our product–mix, pricing strategy to retain existing customers; collaborate with key customers to be long–term and strategic partners in future.

Needs proactive support from Govt. of India for policies related to Allocation of Iron ore leases , Auction of Iron ore Mines and Export of Iron Ore.

The Board places on record its deep appreciation for the valuable contribution made by Shri S.K. Das, Shri Subimal Bose, Shri S.J. Sibal, Shri S. Thiagarajan and Shri Vinod Kumar Thakral during their tenure on the Board of the Company.

27.0 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  2014–1

b. Cost Auditors

M/s Prasad Bharathula & Associates  Cost and Management Consultants House No.2–4–911, Road No.6 Samatapuri Colony, Post. Saroornagar Hyderabad – 500 035

c. Secretarial Auditors

M/s D. Hanumanta Raju & Co. Company Secretaries B–13, F1, P.S. Nagar, Vijaynagar Colony Hyderabad – 500 057


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


For the year under review, no orders were passed which is impacting the going concern status and company's operation in future.


The details of awards received by the Company for the year under review are as follows:

1. On 19th Jan'15, NMDC received Golden Peacock Corporate Social Responsibility Award 2014 from Ms. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development.

2. On 29th Jan'15, NMDC received Greentech Environment & CSR Awards 2015 from Sri Bhaskar Chatterjee, CEO of Indian Institute of Corporate Affairs, Ministry of Corporate Affairs, organized by Greentech Foundation, New Delhi.

3. On 21st Mar'2015, NMDC received National Safety Award (Mines) for the year 2011 for Bailadila Iron Ore Mine, Bacheli Complex for the longest accident free period from His Excellency President of India, Shri Pranab Mukherjee.

4. On 22nd Mar'2015, NMDC received "Udyog Ratna Award' from Sri KE Krishna Murthy, Hon'ble Dy. Chief Minister & Revenue Minister, Govt. of AP, organized by Delhi Telugu Academy.

5. On 24th Mar'2015, NMDC received "Most Efficient Navratna of the year" in the Non–Manufacturing category from Sri Suresh Prabhakar Prabhu, Hon'ble Minister for Railways, organized by Dalal Street Investment Journal.

6. On 13th May'2015 NMDC received "Top Indian Company Award 2015 under the sector Mining – Metals & Minerals category" organized by Dun & Bradstreet.

7. On 19th May'2015, NMDC received BT– Star PSU of the year Award (Best PSU in Maharatna and Navratna category) from Lt. Gen AK Singh, Lt. Governor of Andaman and Nicobar Islands, organized by Bureaucracy Today Magazine, New Delhi.

8. On 21st May'2015, NMDC received the prestigious " Platts Global Metal Awards 2015 under the category Industry Leadership Award – Raw Materials & Mining", organized by Platts at Hotel Savoy, London, UK.

9. On 29th May'2015 NMDC received Platinum HR Award –2015 for outstanding achievements in "Training Excellence in HR" organized by Greentech Foundation, New Delhi.

NMDC being a PSU, the guidelines of Central Vigilance Commission (CVC) are applicable which provides adequate safeguard against victimization of employees. No person has been denied access to the Audit Committee. The Board of Directors at its 451st meeting held on 20.09.2012 approved the internal Whistle Blower Policy of NMDC.

In terms of the said Policy, CVO NMDC has been designated as the Nodal Officer for implementation of Internal Whistle Blower Policy. The internal Whistle Blower Policy has also been uploaded on the intranet of the Company for information of all the employees.



Report on Corporate Governance is enclosed at Annexure–II


A Report on Management discussions and Analysis as required in terms of Clause 49(F) of the Listing Agreement is enclosed at Annexure–III.


The extract of Annual Return as provided under Sub–Section (3) of Section 92 read with Rule 12(1) of the Companies (Management & Administration) Rules, 2014 is at Annexure–IV.


Secretarial Audit Report in Form No.MR–3 pursuant to Section 204(1) of the Companies Act, 2013 is  enclosed at Annexure–V.


In compliance with Clause 55 of the Listing Agreement, Business Responsibility Report (BRR) is enclosed at Annexure–VI.


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




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 and Jharkhand.

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

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

 (Narendra Kothari)

Chairman–cum–Managing Director

Place : Hyderabad

Date : 25.06.2015

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