Directors' Report for the year 2012-13
Your Directors are pleased to present the 55th Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31 March 2013 and the Report thereon by the Comptroller and Auditor General of India.
1.0 PERFORMANCE HIGHLIGHTS
During the year under review, the Company has recorded turnover of Rs.10,704 crores, achieved Profit Before Tax (PBT) of Rs.9,465 crores and achieved Profit after Tax (PAT) of Rs.6,342 crores.
The major performance highlights are summarized as under:
• Turnover for the year under review was Rs.10,704 crores compared to Rs.11,262 crores in the previous financial year 2011-12 recording a decrease of 5%.
• Profit before tax from continuing operations was Rs.9,462 crores compared to Rs.10,760 crores in the previous financial year 2011-12 recording a decrease of 12%.
• Profit after tax was Rs.6,342 crores compared to Rs.7,265 crores in the previous financial year 2011-12 recording a decrease of 13%.
• Net worth increased to Rs.27,505 crores as on 31.03.2013, 13% higher than Rs.24,396 crores in the previous financial year 2011-12.
• 1st Interim Dividend @ 200% on the paid up equity share capital of the Company aggregating Rs.793 crores was paid by the Company. 2nd Interim Dividend @ 100% on the paid up equity share capital of the Company aggregating Rs.396 crores was also paid by the Company. The total interim dividends paid by the Company aggregates Rs.1,189 crores.
• Supply of Iron Ore to domestic industries recorded 246.72 lakh tonnes as against the previous year supply of 269.16 lakhs tonnes, recording a decrease of 8%. Total exports of Iron Ore during the year was 16.02 lakh tonnes against 3.85 lakh tonnes in the previous financial year 2011-12 recording an increase of 316%.
• Sponge Iron production during the year under review was 36,289 tonnes as against previous year 37,260 tonnes.
• Diamond production for the year under review was 31,533 carats as against previous year 18,043.44 carats.
• A Joint Venture Company named Jharkhand National Mineral Development Corporation Limited (JNMDC) in Joint Venture with Jharkhand State Mineral Development Corporation Ltd. (JSMDC) was incorporated 06.08.2012 for exploration and exploitation of Iron Ore Deposits from Sasangoda Iron Ore lease, Jharkhand. The shareholding ratio between NMDC and JSMDC is 60% and 40% respectively and accordingly, JSMDC is a subsidiary of NMDC.
• Department of Disinvestment, Government of India completed further disinvestment of 10% of the shareholding of President of India through OFS route. The realization netted by Government of India on account of the said divestment is Rs.5,973.27 crores during the month of December 2012.
• The Equity Shares of NMDC has been included into CNX NIFTY Index of National Stock Exchange w.e.f. 01.04.2013.
• To further strengthen evacuation infrastructure, the following major initiatives have been taken:
(a) Uniflow Railway Line commissioned in May 2012 which further augments evacuation capacity by 3 million tonnes;
(b) In-principle approval has been accorded for construction of a slurry pipeline from Bacheli to Nagarnar at an estimated cost of Rs. 2123.81 crores;
(c) MoU signed with RINL for development of a Slurry Pipeline from Nagarnar to Visakhapatnam and a Pellet Plant in Visakhapatnam under Joint Venture route;
(d) Signed a MoU with Ministry of Railways on 21.12.2012 for doubling of KK line between Kirandul & Jagdalpur of around 150 kms at an estimated cost of Rs.827 crores.
2.0 FINANCIAL PERFORMANCE
2.1 Profit & Dividend
During the year under review, your Company has earned profit before tax from continuing operations of Rs.9,462 crores on a turnover of Rs.10,704 crores in comparison with those of previous year's achievement of Rs.10,760 crores and Rs.11,262 crores respectively.
The Company has paid 1st interim dividend @ 200% on the equity shares of Re.1/- each aggregating Rs.793 crores and 2nd Interim Dividend also @ 100% on the paid up equity share capital of the Company aggregating Rs.396 crores. The Board has recommended subject to shareholder's approval, payment of final dividend @ 400% on the paid up equity share capital of the Company aggregating Rs.1,586 crores. The total dividend payout for the year under review aggregates Rs.2,775 crores. The share of Government of India stands at Rs.2,300 crores.
The Company has not accepted any fixed deposits during the year under review.
4.0 HON'BLE SUPREME COURT VERDICT ON MINING IN KARNATAKA
As stated in the Directors' Report for the year 2011-12, the case on mining issues in Karnataka went on before the Green Bench of the Hon'ble Supreme Court, and it pronounced the judgement on 18.04.2013 after taking into account the interim orders it had passed in the matter, the survey report of the Joint Committee, the Final Report and the Modified Report of the Central Empowered Committee, and the submissions made by all the Parties concerned. In short, the judgement has approved and accepted (a) the findings of the survey conducted by the Joint Team; (b) the categorization of the mines into 'A', 'B', and 'C'; (c) the CEC's recommendations, including that of the role of the Monitoring Committee; and (d) the grant of fresh mining leases and consideration of pending applications be dealt with in accordance with law and the judgement.
The impact on NMDC in relation to its Donimalai and Kumaraswamy mines situated in Karnataka are given below in brief:
i) NMDC's mines at Donimalai and Kumaraswamy have been placed in Category-A. However, the Hon'ble Supreme Court took the view that NMDC has to pay the compensation as per Category-B even after NMDC's detailed submissions, including those based on historical factors;
ii) Monitoring Committee, appointed by the Hon'ble Supreme Court, will continue the sales of Donimalai and Kumaraswamy products through e-auction.
5.0 DISINVESTMENT OF SHARES BY GOVERNMENT OF INDIA
During the year under review, 39,64,71,600 equity shares of the face value of Rs.1/- each aggregating 10% of the total paid up equity share capital of the Company was disinvested by Department of Disinvestment (DoD), Govt. of India in the month of December 2012. The disinvestment was done under Offer for Sale (OFS) route through Stock Exchange mechanism as per SEBI rules/regulations. In this regard, the entire deal was executed through Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) with NSE being the designated Stock Exchange. The floor price was fixed by Government of India at Rs.147 per share. The average sale price in NSE as per their contract note is Rs.150.8014 per share and in BSE as per their contract note is Rs.150.84 per share. As informed by Department of Disinvestment, Government of India, the net realization accrued to Government of India on account of 10% disinvestment of NMDC's shares stands at Rs.59,73,27,22,792.80 i.e. Rs.5,973.27 crores. Post disinvestment of shares, the shareholding of Government of India stands at 3,17,19,46,580 equity shares constituting 80% of the total paid up equity share capital of the Company.
6.0 INCLUSION OF EQUITY SHARES OF NMDC INTO CNX NIFTY INDEX W.E.F. 01.04.2013
The Equity Shares of NMDC has been included into CNX NIFTY Index of National Stock Exchange w.e.f 01.04.2013. To commemorate the inclusion of NMDC shares into CNX NIFTY Index, an opening Bell Ceremony was held on 01.04.2013 at National Stock Exchange, Mumbai. CNX Nifty comprises of 50 large and liquid scrips representing 22 sectors. It represents 67% of free float market capitalization, 50% of total traded turnover of total number of companies traded at NSE.
Inclusion of NMDC shares in CNX Nifty Index of NSE is a historic occasion which will lead to greater visibility and bring out the true potential of the Company, both to domestic and international investors.
7.0 NEW PROJECTS & BUSINESS DIVERSIFICATIONS
7.1 Projects under construction
7.1.1 Bailadila Deposit-11/B
As part of plan to enhance production, the construction of Deposit-11B mine at an expanded capacity of 7.0 Million Tonnes of ROM per annum has been taken up. The estimated capital expenditure towards this is Rs.607 Crores, out of which 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. More than 90% work is completed. Trial runs of Secondary Crusher, EOT Crane in Secondary crusher house, Scalping screen & some of the downhill conveyors completed. Balance work will be completed during FY 2013-14.
7.1.2 Uniflow System at Bacheli
East Coast Railways was assigned the work of execution of the "construction of Uniflow Dispatch Line at Bacheli on K-K Line of East Coast Railways. The work is completed and the system is in operation.
7.1.3 Ore Beneficiation and Slurry Pipeline Transportation system from Bailadila 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 Steel Plant at Nagarnar. For part of this Project, investment proposal involving 2 MTPA Ore Processing Plant at Bacheli, Slurry Pipeline from Bacheli to Nagarnar and 2 MTPA Pellet Plant at Nagarnar has been approved by NMDC Board. Gazette Notification for 'Right of Use' for a corridor of land to lay the Slurry Pipeline has been issued by Govt. of India in August 2012. Mecon has been appointed as Consultant for Detailed Route Survey of Slurry Pipeline Project. Work is in progress.
7.1.4 BHJ Beneficiation Plant at Donimalai
For treating low grade iron ore Banded Hematite Jasper (BHJ), a Beneficiation Plant is being set-up at Donimalai Iron Ore Mine for processing 3.6 lakh tonnes per annum of BHJ iron ore to produce 1.18 lakh tonnes per annum of BF Grade Pellet Feed Concentrate at an estimated cost of Rs.134.42 crores. As part of plant construction, the work of setting up of Beneficiation Plant is awarded to Hindustan Dorr Oliver Limited (HDOL). However, further work has not progressed due to non-receipt of clearance from Forest Department.
7.1.5 Kumaraswamy Iron Ore Project
To augment the production capacity towards achieving the target of 40 MTPA by 2014-15, the construction of Kumaraswamy Iron Ore Mine with capacity of 7.0 MTPA | ... was taken up with an estimated capital outlay of Rs.898.55 Crs. MECON is appointed as EPCM consultant. The entire project has been planned to be executed in six packages. Work orders are placed for Crushing Plant Package, Downhill conveyor Package, Electrics and Substation package and Service Centre facilities packages. Orders for other minor packages like Approach road & Telecommunication system packages will be placed shortly. Construction works are in progress. The project is expected to be completed during the FY 2013-14.
7.1.6 Low Silica Limestone Project, Arki (HP)
Arki Limestone Deposit was identified as a potential source to supply SMS grade low silica limestone to steel plants of SAIL.
Under MOU between your Company and SAIL, M/s Tata Consulting Engineers Limited (TCE), Kolkata has been appointed as a Consultant for preparation of Feasibility Report of the project. TCE has submitted the final draft Feasibility Report and the same is under examination. Simultaneously, the Company obtained:
(i) 1st stage Forest clearance from MoEF for diversion of 84.36 ha forest land with certain terms and conditions.
(ii) Approval of the Mining Plan from IBM with Progressive Mine Closure Plan of Arki Limestone deposit on 27-04-2012.
7.1.7 Panthal Magnesite Project
NMDC has formed a joint venture Company with J&K Minerals Limited in the year 1989 to explore and exploit Panthal magnesite mine and to produce dead burnt magnesite. The Joint Venture is named as J&K Mineral Development Corporation Ltd (J&KMDC) and is a subsidiary of NMDC. After an initial phase of uncertainty regarding future of the Panthal Magnesite Plant due to inadequate demand in the market, J&KMDC Board in its 93rd meeting held on 27.08.2009 decided to revive the project. NMDC Board in its 417th meeting held on 07.01.2010 endorsed to revive the project by setting up a 30,000 TPA Dead Burnt Magnesite plant.
Mining Lease renewed for 10 years w.e.f from 11.01.2009 and registered on 21.05.2010. Mining lease was transferred to J&KMDC on 10th Jan'2011. It has been registered on 07.04.2011 at Hon'ble court of Katra in favour of J&KMDC.
Public hearing for Environmental Clearance (EC) was held successfully. MoEF has issued E.C on 03.05.2011 subject to obtaining NOC from NBWL. NBWL vide its letter dated 14.11.2011 & corrigendum dated 31.01.2012 has issued NOC to J&K state Forest department. J&K has issued NOC dated 13.03.2012. Two nos. of PIL's which were filed against Panthal Magnesite Project in Hon'ble high court of J&K in March'2012, was dismissed by Hon'ble high court of J&K.
M/s Dasturco is EPCM consultant for this project. The Project is planned to be executed in four major packages. Soil investigation work Completed. Work order is placed for "Balance civil works" package and the works were resumed after dismissal of PIL and are in progress.
7.1.8 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 both Dep. 11-B & Dep. 14 of Kirandul complex. The estimated capital expenditure is Rs.951 crores. TATA Consulting Engineers (TCE) is appointed as EPCM consultant. The entire project has been planned to be executed in seven packages. Tender activities are in progress.
MoEF has accorded 1st stage clearance in Jan'2012. Final Clearances from MoEF are awaited.
7.1.9 MTPA Pellet Plant at Donimalai
One of the main objectives of this project is to prolong the life of Tailing Dam at Donimalai by using the slimes for making pellets. M N Dastur & Co. appointed as EPCM consultant. Execution of Project divided into Six Packages. The estimated capital expenditure is Rs.572 crores. Orders placed for Major Packages. Major civil works completed. Technological equipment received at site. Structural & erection works are in progress. Project is scheduled to be completed in FY 2013-14.
7.1.10 Doubling of Railway Line
NMDC has signed a MoU with Ministry of Railways in the august presence of Hon'ble Minister of Steel & Hon'ble Minister for Railways on 21.12.2012 for Doubling of KK line between Kirandul & Jagdalpur at an estimated expenditure of Rs.826 crores for enhancement in the infrastructure facilities for evacuation of the iron ore produced at the Kirandul and Bacheli complexes to various customer destinations with a timeline of 5 years and 8 months. East Coast Railways have taken up the work.
7.1.11 3.0 MTPA Integrated Steel Plant in Chhattisgarh
As you aware, your Company is setting up a 3.0 MTPA Steel Plant at Nagarnar near Jagdalpur, District Bastar, Chhattisgarh at an estimated cost of Rs. 15525 crores where the Company is in possession of about 2120 acres of land for the steel plant, township and for other facilities.
Necessary statutory clearances including Environmental Clearance from Ministry of Environment and Forests (M0EF) and the Government of Chhattisgarh have already been obtained. Rail Transport Clearance was received. Final Detailed Project Report (DPR) along with cost estimates submitted to East Coast Railway for their approval which is under process.
Government of Chhattisgarh has sanctioned water and power for construction as well as for operation of the plant. For providing 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.) and 400 / 220 KV substation at Jagdalpur. 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 200 KV power line 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. Enabling works packages like soil investigation, temporary power and plant entrance road have been completed.
Other enabling works like site levelling, Plant Road network, Construction water, Construction power and construction of plant boundary wall were awarded and works are in progress at site.
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. Civil & structural works for the aforesaid major technological packages are in progress.
While one of the major auxiliary package i.e. Power & Blowing Station has been awarded, other auxiliary packages like Permanent water, Power and Blowing Station, Turbo Blowers and Main Receiving Sub-station are in different stages of order placement.
For providing residential accommodation to the employees of NMDC and consultants, construction of studio apartments near the plant site have been taken up of with 110 units in the first phase are ready for occupation. Works for construction of permanent township, construction colony are also under progress.
7.1.12 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. However, on consideration of Writ Petitions, the Hon'ble High Court of Karnataka (Circuit Bench, Dharawad) passed an interim order staying issue of final notification. The matter is at present pending for hearing before the Hon'ble High Court. The Company has deposited Rs.158.67 crore 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. 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).
7.2 Other initiatives
7.2.1 Bailadila Iron Ore Deposit-13
NMDC formed a Subsidiary Company NMDC-CMDC Ltd. with 49% partnership of CMDC Limited to develop Deposit-13 as standalone project of 10 MTPA.
Mining plan for the area has been approved by Indian Bureau of Mines (IBM) on 12.09.2008 for obtaining forest clearance which is being pursued.
7.2.2 Bailadila Deposit-4
It is envisaged to develop Deposit 4 with CMDC Ltd. as partner for supplying raw material to the steel plant at Nagarnar. Govt of Chhattisgarh recommended the ML application of NMDC to Ministry of Mines, GOI for prior approval for grant of ML in favour of NMDC. Ministry of Mines on 30.11.2011 has given the prior approval for grant of ML in favour of NMDC over an area of 646.60 Ha. Mine Plan is under approval.
7.2.3 Rail Link between Dalli-Rajhara - Raoghat, Jagdalpur Railway Line Project
The leveling for erection of railway track between Dalli Rajhara to Bhanupratappur, which is around 35 kilometers from Bhanupratappur to village Kewanti around 10 kilometers and from Kewanti to Antagarh, which is around 15 kilometers, is in progress. Tree felling and other works could not be taken up due to Naxal activities.
Further progress is still at halt due to stoppage of tree felling and railway line leveling & alignment work by agitating villagers near village Kewanti, Bhanupratappur. Now it can only be resumed after deployment of sufficient paramilitary forces in disturbed area.
7.2.4 International Coal ventures (P) Limited (ICVL)
The Company International Coal Ventures (P) Limited (ICVL) has been incorporated between SAIL, NMDC, NTPC, Coal India and RINL. The objective of the Company is to primarily acquire coking and thermal coal assets abroad.
7.2.5 NMDC Global
Kopano-NMDC Minerals (Pty) Ltd.
The JV with Kopano (Johannesburg, South Africa) has become functional and the first board meeting was held. Proposals related to coal assets are being reviewed by the JV.
ITMK3 Based Nugget Plant
Your Company had made significant progress in the ITMK3 initiative by testing the raw material i.e. domestic coal and NMDC iron ore. Feasibility study is kept in abeyance due to process stabilization issues.
7.3 Foreign Venture
7.3.1 Gold in Tanzania
In Tanzania, your Company has been granted 4 Mining Lease for Gold over an area of 38.83 sq. kms. for a period of 10 years w.e.f. 13.02.2012. Your Company has been granted Retention Licence at Siga Hill area and PL renewal of Masabi East area. NMDC Board has decided that Gold Mining Project at in Bulyang'Ombe will be developed by NMDC. Necessary steps are being taken to start the mining in the Bulyang'Ombe ML areas.
Legacy Iron Ore, Perth, Australia
Legacy Iron Ore Ltd, an ASX listed entity based in Perth, Australia in which NMDC has 49.61% equity holds prospective iron ore tenements in both the Central Yilgarn and Pilbara areas of Western Australia. All project areas are located close to established infrastructure. Legacy's major gold focus lies in the South Laverton region, where the Company holds some 560 square kilometres of prospective ground.
Legacy has acquired 60% interest in Mt Bevan Iron Ore Project from Hawthorn Resources Ltd in Western Australia and also acquired three coal tenements in Queensland.
7.3.3 Coking Coal
Your Company had reviewed various acquisition opportunities in coking coal in Mozambique, USA, Russia, Australia and Canada.
7.4 Leases for Minerals
7.4.1 Iron Ore
22.214.171.124 In respect of Bailadila-1 & 3
The PLs are as under:
126.96.36.199 The PLs being pursued in Chhattisgarh
Your Company has applied 3 PL's in Dantewada District (2006-2008) and is pursuing the PLs with Chhattisgarh Govt.
188.8.131.52 In Jharkhand
The Company applied for PL in the west Singhbhum district. State Govt. recommended to Central Govt. for prior approval for grant of PL in favour of JV Co. (NMDC & JSMDC). MoM, GoI has conveyed its prior approval for grant of PL in favor of JV of NMDC Ltd & JSMDC for a period of 3 years. Grant order from State Govt. is awaited.
DMG Govt of Jharkhand asked NMDC to provide the Consent letter of Forest Department, Latest ownership certificate of NMDC-JSMDC, JV Company & Latest Income Tax Payment certificate to facilitate for grant of PL to NMDC-JSMDC JV Company. A JV Company, Jharkhand National Mineral Development Corporation Limited (JNMDC) has been incorporated on 06.08.2012, with its registered office at Ranchi. All the information have been provided to the DMG and the matter is pursued with the DMG, Govt of Jharkhand for grant of PL in favour of JNMDC.
MoU with DMG, Jharkhand:
The 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, the 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.
Ghatkuri (Notified Forest):
The Company is pursuing PL & ML application for Ghatkuri Iron Ore Deposit for exploitation in JV with State Government. Your Company has filed Impleadment Petition requesting the Apex Court to direct maintaining status-quo of the State Government Notification of 27.10.2006 which reserves exploitation of Ghatkuri deposit by PSU's. Hon'ble Supreme Court of India vide order dated 26.07.2012 has dismissed all the appeals filed by the private parties. The Company is pursuing the matter of grant of ML with the state Govt.
The Company has applied for 3 PL's (March 2011) in West Singhbhum District.
184.108.40.206 In Karnataka
The Company is pursuing for ML for Ramandurg and Kumaraswamy deposit (contiguous to ML No.1111). Both the MLs are subjudice, pending in the Hon'ble Supreme Court of India and in Hon'ble High Court of Karnataka respectively. The Company has applied for 7 ML application (Aug 2007) in Chitradurga, Bellary, Tumkur and Bagalkote Districts.
In addition, the Company has also applied for another 6 PL applications (June 2010) in Tumkur, Bellary and Chitradurga Districts. The Company has applied 7 ML applications in Karnataka (4 against Govt Notification & 3 in Donimalai Range (Dec 2010).
220.127.116.11 In Odisha
The Company is pursuing for ML for Mankadnacha iron ore.
18.104.22.168 In Rajasthan
The Company is pursuing for PL applied near Malikhera village in Bhilwara District for iron ore.
22.214.171.124 In Jharkahand
The Company is pursuing for ML / PL for Pahardia - Rungikocha (West Singhbhum District) and Parasi-Kutachauli-Khotadih (Ranchi District).
126.96.36.199 In Andhra Pradesh
The Company is pursuing forest permission for exploration in 3 PLs falling in the Forest area (Renewal application submitted) in Kalyandurg area, Anantapur District.
The Company has submitted one more PL application for Diamond in Anantapur district on 25.09.2012.
188.8.131.52 In Madhya Pradesh
The Company has carried out exploration work in granted 2 PLs (Baghain & Sarang). Renewals have been granted for these two PLs for two years. 2nd renewal for 1 year has also been applied. The Company has been granted the PL of Rampura Motwa for a period of two years. The Company has applied for one more PL in Panna District of MP. Exploration works in granted PL areas is under progress.
The Company is pursuing for 3 PLs viz., Karmatia, Lakshmipur & Pali for early grant in favour of NMDC.
The Company has been granted Reconnaissance Permit (RP) on 30.09.2009 in the Tikamgarh District of M.P. Exploration work has been completed under RP and the Exploration cum Relinquishment Report has been submitted. The Company has applied 5 PLs in Tikamgarh after completion of the RP works.
7.4.4 Platinum Group of Elements
184.108.40.206 In Uttar Pradesh
The Company is pursuing for PLs for Tsganan area, Dangli and Dangli RF in Lalitpur district.
Shahpur East and Shahpur West Coal Blocks
The Company was allocated two coal blocks i.e. Shahpur East (Area 693 Ha) and Shahpur West (587.5 Ha) Coal Blocks in M.P. by Ministry of Coal, Govt. of India, on 25.07.2007 under Government Dispensation Route for Commercial Mining. Both blocks were regionally explored by GSI. Later NMDC conducted exploration through MECL, Nagpur and obtained Geological Reports for both the coal blocks. Mining Plans and Mine Closure Plans for Shahpur East and Shahpur West Coal Blocks have been approved by MoC.
Prior approval was granted by MOC for grant of ML of Shahpur West Coal Block. Matter is being pursued for getting prior approval for ML of Shahpur East Coal Block.
Land survey for acquisition of land for infrastructure and boundary demarcation in Shahpur East and Shahpur West Coal Blocks have been completed and Application for land acquisition for both the coal blocks have been submitted to Collectors, Shahdol & Umaria Districts.
Detailed Project Report (DPR) for both the coal blocks is being prepared by the Consultant M/s SCCL and is under finalization.
Applications for 12 coal blocks submitted to MOC against notification for competitive bidding for Power and Commercial Mining.
220.127.116.11 In Jharkahand
The 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.
18.104.22.168 In Chhattisgarh
The Company is pursuing ML application for Sadartera Dolomite Block in Bastar District.
8.0 SUBSIDIARY / JOINT VENTURE / ASSOCIATE COMPANIES MONITORING FRAMEWORK
NMDC has six subsidiaries, stake in five Associate Companies and one JV Company. The names of these Companies and percentage of NMDC stake in these Companies are as follows:
* Under closure
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 / Joint Venture 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 meeting of the Board of Directors of Subsidiary Companies are reviewed by the Board of NMDC.
8.1 J&K Mineral Development Corporation Ltd (JKMDC)
The Annual Report of the subsidiary Company is annexed.
8.2 NMDC-CMDC Ltd (NCL)
The Annual Report of the subsidiary Company is annexed.
8.3 NMDC Power Ltd. (NPL)
The Annual Report of the subsidiary Company is annexed.
8.4 Jharkhand National Mineral Development Corporation Limited (JNMDC)
The Annual Report of the subsidiary Company is annexed.
8.5 NMDC SARL, Madagascar
The Annual Report of the subsidiary Company is annexed. The wholly owned subsidiary Company is under closure.
It is a listed Company in Australia. The Annual Report of the subsidiary Company is annexed.
9.0 ENVIRONMENT MANAGEMENT:
The Company has been accredited with ISO 14001 Environment System certification in respect of NMDC's four major production projects, i.e., Bailadila Deposit-14/11C, Deposit-5, Donimalai and Diamond Mining Project Panna. The Certification is valid up to November'2014. The Company has obtained Terms of Reference from MoEF, Gol for preparation of EAI / EMP report for combined peak production capacity of 1.3 MTPA in Shahpur East and Shahpur West underground coal mining projects for obtaining Environmental Clearance. The Company has obtained Final Forest Clearance from MoEF on 14.6.2012 for diversion of 74.018 ha of forest land for renewal of supplementary ML Diamond Mining Project Panna. The Company is in the process of compliance of First Stage Forest clearance conditions for obtaining final forest clearance for diversion of 84.36 Ha of forest land for Arki Lime stone Project and 65.936 ha Forest Land for construction of screening plant at Kirandul complex. The Company has initiated advance action and submitted Forest Clearance application forms to State Forest Department, Raipur for obtaining forest clearance for renewal of Mining Lease of Bailadila Deposit-14, 14 NMZ, Kirandul Complex and Deposit-5 and Deposit 10, Bacheli Complex.
The Company is organizing environmental monitoring studies at all the production projects by engaging the MOEF recognized laboratories. The 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.
9.1 Sustainable Development Performance
In compliance with Gol, 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, your Company has chosen five S.D. Projects / activities such as Bio-Diversity survey & Conservation Plan, Energy Management, Carbon Management, Water Management and Training on S.D for employees for the year 2012-13. The Company has reviewed the above S.D. Projects by Board level S.D. Committee and details are given bellow:
(i) Bio-Diversity Survey and conservation plan:
The Company has engaged M/s. IIBRD,Kolkata for undertaking Biodiversity studies and conservation plan at Bailadila Iron Ore Mining Complex, C.G, Donimalai - Kumaraswamy Iron Ore Mining Complex, Karnataka and Diamond Mining Project, Panna, M.P. The study recorded around 208 species belonging to 10 Faunal Groups and 213 floral species within which 77 are tree species, 53 are shrubs and 76 are herbs in the Core and Buffer Areas of Bailadila iron ore complex and the area is suitable for the sustenance of wild animals in their preferred habitat. Canopy cover in most places of the forest area is within 40-70% which is known to be dense forest as per the FSI classification. Under bio-diversity conservation plan, the Company has proposed to undertake development of habitat conservation through plantation, soil conservation, grass land development and development of water bodies in buffer zone areas.
(ii) Energy Management
The Company has completed Energy Audit studies at NMDC projects through M/s. Centre of Plant Engineering Services (COPES), Secunderabad. The Energy Conservation Options as suggested by the COPES shall be implemented for becoming more energy efficient.
(iii) Carbon Management
The Company has undertaken Carbon foot print studies at all projects through M/s. First Climate India Pvt. Ltd., Kolkata. The firm estimated the carbon footprint for F.Y 2011-12 in accordance with ISO: 14064 and GHG protocol following tier-2 approach and Scope I, 2 and 3 emissions. The Company has purchased voluntarily 2500 no.s of Renewable Energy Certificates (non-solar).
(iv) Water Management
The Company is in the process of appointment of an agency on EPP basis for construction of STP using SBR technology at Bacheli complex for recycling of treated water in the process and other purposes.
(v) Training programme on S.D
The Company has arranged training programme on S.D aspects covering Bio-diversity, water management, energy management, carbon management, etc covering about 438 employees at all projects.
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 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. 24th Corporate Level Tripartite Safety Committee Meeting of Donimalai Iron Ore Mine was conducted on 04.04.2013 and Bailadila Iron Ore Mines/Diamond Mining Project on 05.04.2013.
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 2012-13 is 0.32 and 0.46 for the year 2011-12.
10.0 ISO CERTIFICATION
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. Re-Certification Audit was conducted successfully at Donimalai Iron Ore Mine; BIOM, Bacheli Complex and BIOM, Kirandul Complex in the month of October / November 2012. II Surveillance Audit was conducted successfully at R&D Center in the month of September 2012.
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 was conducted at BIOM, Kirandul Complex; BIOM, Bacheli Complex and Donimalai Iron Ore Mine in the month of December 2012. I Surveillance Audit of Diamond Mining Project, Panna was conducted in the month of August 2012.
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, with a planned programme.
11.0 IMPLEMENTATION OF INTEGRITY PACT
1. With a view to maintain transparency in all dealings with contractors and vendors and keeping with international practices, NMDC & Transparency International India (TII) developed an Integrity Pact Programme.
2. All the tenders for the contracts and civil works above threshold value of Rs. 20.00 crore and procurements above threshold value of Rs.10.00 crore are the subject matters of Integrity Pact.
3. After the implementation of said programme, Head of Safety Dept. was appointed as Nodal Officer and a Review Committee comprising of Functional Directors of NMDC was constituted. This Committee was also vested with the powers to modify the Integrity Pact procedure and systems.
4. Shri S. Anwar, IAS (Retd) and Dr. J.S. Juneja, Former Chairman, NSIC have been appointed as independent external monitors (IEMs) for overseeing the Integrity Pact programme.
5. Till March 2013 a total of 67 cases of tenders with an indented value of Rs. 19,347.08 Crore were covered under the Integrity Pact.
12.0 NMDC's R&D CENTRE AT HYDERABAD
NMDC has an R&D Centre at Hyderabad which has been bestowed with "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.
13.0 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 free exploration to quantify mineral resources in the State.
14.0 IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY
During the year under review, NMDC Limited made all efforts for the implementation of the Official Language Policy and for the use of Official Language in all its Projects, Units and Head Office.
Hindi Workshops were conducted for employees to make them efficient to use Official Language in their day-to-day official work. During Hindi Workshops all employees were imparted Micro Soft Indic Computer training on Phonetic Hindi Keyboard.
To bring awareness among the employees and their family members as well as employees of Central Govt. / Central Govt. Undertakings/ State Govts Offices situated in the vicinity of NMDC Office various competitions like Hindi Essay, Hindi Noting, Drafting and Technical Terms, Hindi Anuvad, Laughter Competition, Unicode hindi typing on Computer, Quiz, Hindi Shabdahgyan, Cooking Competition (procedure of recipe in Hindi) etc were also conducted and prizes were awarded to winners during Rajbhasha Pakhwara.
Monthly Hindi Cash Incentive Schemes were implemented to propagate the usage of Hindi and large number of employees were benefitted under this scheme.
To encourage the employees to implement Official Language Hindi in the technical fields 53 Rajbhasha Technical Seminars were organized till now and Technical Seminar Patrika "Takneeki Sopan, Takneeki Kshitiz" and Rajbhasha Souvenirs "Sarjana , Kaanan Kusum" were also published.
During the year monthly bulletins "Baila Samachar, Bacheli Samachar" in Hindi and Doni Samachar in trilingual were also published.
NMDC Limited was awarded "Ispat Rajbhasha Protsahan Shield" by the Honorable Minister of Steel, Ministry of Steel, New Delhi for the undertakings situated in 'C' Region, for the excellent implementation of the Official Language Policy and Progressive Use of Hindi in the year 2010-11.
NMDC was also awarded Rajbhasha Shield as 2nd Prize for the year 2011-12 by the Town Official Language Implementation Committee (Undertakings) Hyderabad-Secunderabad, for excellent implementation of the Official Language Policy.
15.1 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. However, on two occasions unions went for strike against Government's policy of disinvestment of Company's shareholding.
15.2 Scheduled Castes & Scheduled Tribes
25 persons belonging to Scheduled Caste and 32 persons belonging to Scheduled Tribes were appointed in the year 2012 against 205 posts filled by direct recruitment.
15.4 Particulars of employees drawing Rs.5 lakhs per month or Rs.60 lakhs per annum under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Amendment Rules, 2011.
15.5 Staff Welfare activities
Adequate facilities for education, health, accommodation and recreation were in place. Various bipartite fora have been functioning satisfactorily.
15.6 Promotion of Sports
Inter Project tournaments, both indoor and outdoor, for employees and games & sports for the wards were held in different Projects during the year apart from promoting sports events under CSR.
16.0 HUMAN RESOURCES DEVELOPMENT
One in-house programme on 'Reservation for SC/ST/OBC was organized. Advanced Management, Mentorship Development & Leadership programme have been organized for Senior Executives. In various International Conferences like Mining Indaba in South Africa and PDAC in Canada, some Sr. Executives had participated. 20 Quality Circle Projects have been completed during the year. HRD Department has also organized a National Seminar on New CSR & Sustainability Guidelines of DPE successfully. The efforts of HRD Department resulted in training man days of 3.23 per employee per year as against the MoU target of 3.0 per employee per year. A number of knowledge-based Seminars, Conferences, Workshops etc. were also sponsored in which NMDC Executives had participated actively.
Vigilance Department in the Company has been focusing on "Preventive and Proactive Vigilance". Periodic Review Meetings with Vigilance officers were held on quarterly basis wherein various discussions were held about vigilance activities carried out during the year and also to draw-up future Action Plans in conformity with the directives of the Central Vigilance Commission. Further, Vigilance Department coordinated with other departments in the organization in improving the existing procedures and systems to achieve the overall objectives of the Company. The Vigilance Department also carried out various studies in the fields of Contracts, Procurement, Recruitment and Commercial activities etc and suggested system improvements to the management for implementation.
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 20.10.2012 and awarded the certificate of compliance to Quality Management System on 10.02.2013.
Vigilance Department has been overseeing the implementation of Integrity Pact in the Company. Till date, the Integrity Pact has been entered into 65 contracts with a value of Rs. 18438.62 crores.
The Vigilance Awareness Week was observed from 29.10.2012 to 02.11.2012 on the inaugural day, Pledge was administered by Director (Technical) to all the employees of Corporate office of NMDC, which was followed by a talk by Shri. V V Lakshmi Narayana, Jt. Director, CBI, Hyderabad. Talks were arranged by eminent personalities on "Transparency in Public Procurement". On the concluding day, a talk by Shri Pratyush Sinha, Former Central Vigilance Commissioner, Central Vigilance Commission was organized. Prizes were distributed by the Chief Guest to all the winners of the competitions held during the Vigilance Awareness Week.
As a part of the week, a Workshop on e-procurement was conducted by General Manager (Materials) for the benefit of officials of NMDC and vendors. All the vendors who attended were guided and assisted for obtaining digital signature to participate in prospective e-tender. They were also trained in the e-procurement portal of CI India, the service provider for NMDC. A talk on e-procurement and e-tendering for Transparency in Public Procurement" by Shri. Jitendra Kohli, Founder and Managing Director of Electronic Tender was also organised. Various queries raised by the NMDC officials related to e-procurement and e-tendering were clarified.
The Vigilance Department intranet portal developed inhouse was inaugurated by Shri. R. Sri Kumar, Vigilance Commissioner, Central Vigilance Commission on 18.12.2012. The portal features information on the CVC Circulars, Rules of the organization, FAQ's on vigilance, knowledge bank on vigilance related issues and provision for online submission of APRs.
NMDC Vigilance Department in coordination with Vigilance Study Circle, organised a 5-day Training Programme from December 18th to 22nd, 2012 on "Vigilance for Organisational Excellence" for Vigilance Executives of various PSUs including NMDC, Banks and other Insurance Companies at NMDC Learning Centre.
18 .0 DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 217(2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby confirmed that:
i) In the preparation of the annual accounts for the financial year ended 31st March 2013, the applicable accounting standards have been followed along with proper explanation relating to material departures;
i i ) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were 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 the year under report;
iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts on a going concern basis.
Pursuant to Section 233B of the Companies Act, 1956, your Company carried out an audit of cost records relating to Iron Ore Product and Sponge Iron Prouduct. The Company appointed Shri P V Prasad, Cost Accountant of H.No.2-4-911, Road No.6, Samatapuri Colony, Post Saroor Nager, Hyderabad - 500 035 as Cost Auditor, with due approval of the Central Government, to audit the cost accounts of the Company for the financial year ending on 31st March, 2013.
The cost audit report for the financial year 2011-12 was filed with the Ministry of Corporate Affairs on December 26, 2012 much earlier than the due date of February 28, 2013. The due date for filing the cost audit report for the financial year 2012-13 is September 27, 2013 and the report is yet to be filed.
20.0 CORPORATE SOCIAL RESPONSIBILITY (CSR)
NMDC is one of the very few organizations which have overtly realized the linkage of a business organization with the well-being of the society. It is a matter of pride that several CSR initiatives have been in place right from the inception of the Company and they have become an integral part of the business model of NMDC.
During the year 2012-13 an amount of Rs.72.38 crore has been invested in CSR activities, which works to about 1.14% of its net profit after tax (PAT) of the previous financial year.
In the CSR area, the Company has focused on the following major works in the identified thrust areas:
• Recognizing that Education is an integral and critical aspect of human development and a powerful instrument for emancipation, NMDC's focus has been on improving the literacy rate & quality of education in the tribal belt of Bastar in Chhattisgarh.
• NMDC has been contributing to empower Tribal, Scheduled Caste and Poor children by setting up free residential schools of high quality for them.
• Scholarships to 18000 tribal and poor students in 412 schools in Bastar Region at an annual expenditure of Rs 5 Crore.
• Construction of schools and hostels for students including girl students.
• Mid-day meal to 8000 rural students.
• Setting up ITI's & Polytechnic for technical education, focussing on backward region.
• Supporting the establishment of a medical college & reservation of seats in management institute (IPE) for tribal & poor children.
Specific Education-related initiatives during 2012-13
1.1 NMDC Shiksha Sahayog Yojana
• This is a Scholarship Scheme of NMDC designed to reduce the dropout rate of students belonging to SC/ST communities. It involves direct transfer of scholarship amount to the Bank/PO Account of the student.
• Students belonging to Bastar Region are covered under this scheme.
1.2 Balika Siksha Yojana
• This is a focused initiative through which tribal girls are sponsored to professional courses. During 2011-12, 25 tribal girls and during 2012-13 40 tribal girls are pursuing GNM & B.Sc. (Nursing) courses under the scheme in Apollo Hospitals, Hyderabad.
1.3 Education improvement programme in South Bastar, Dantewada District
• An education improvement programme covering South Bastar schools and 4,200 beneficiaries is in progress in the South Bastar (Dantewada) District through Naandi Foundation.
NMDC is also running a Polytechnic College at Dantewada since 2010 in Electrical and Mechanical streams with an intake of 120 students. A new building at an estimated expenditure of Rs.3,194.80 lakhs is under construction.
2. Infrastructure Development
• Infrastructure Development viz., Roads Bridges and Buildings is the most effective indicator of development process, particularly relevant in the Indian context where infrastructure alleviates poverty, providing access to opportunities.
• NMDC prioritizes its interventions to bridge the critical gap of poor connectivity by laying several kilometers of metalled & tarred roads and by building bridges and culverts to improve connectivity.
2.1 Infrastructure Development related initiatives during 2012-13
• Construction of SC/ST Girls Hostels at Ongole & Guntur @ Rs.31.50 lakh each in Partnership with Govt. of A.P. is in progress.
Upgradation of Hostels for SC/ST/BCs in Bellary @ Rs.190.00 lakh in partnership with Govt. of Karnataka is completed.
• Strengthening PHCs in Bellary in partnership with Govt. of Karnataka by upgrading them/equipping them with various necessary/desirable medical equipment @ Rs.169.00 lakh is under implementation.
• Partnering with MGM Eye Institute, Raipur for expanding their infrastructure & other facilities & provide free treatment/mega eye camps for patients sponsored by NMDC.
• NMDC has partnered with the Govt. of Chhattisgarh for construction of Gaurav Path - 4 way lane at Dantewada @ Rs.1300.00 lakh.
• Electrification related works in 67 villages of Bastar District @ Rs.252.48 lakh.
• Construction of 30 Community Centres in 30 villages of Bastar District @ of Rs.30.00 lakh each at a total cost of Rs.900.00 lakh.
• Construction of 'Shanti Dham' a home for destitute, mentally challenged and aged people @ Rs.505.00 lakh in Bellary District in partnership with Govt. of Karnataka.
3.1 Healthcare related initiatives during the year 2012-13
• The three hospitals at Project sites offer free medical treatment not only to NMDC employees and their families but to the local communities as well, addressing the needs of an average of 80000 out-patients & 8000 in-patients from local tribals every year.
• NMDC operates 'Hospital on Wheels' (H°W) service in Bailadilla benefitting Tribal Patients being treated at NMDC Hospital about 20000 tribal villagers in 45 villages by providing free medi-care facilities at their doorsteps.
4. Drinking water Facility
4.1 Drinking Water Facility related initiatives during the year 2012-13
NMDC has partnered with State Govt of Karnataka for providing Drinking Water facility in 7 villages of Bangalore Rural District, Karnataka @ Rs.78.34 lakh.
5. Integrated Village Development
5.1 Integrated Village Development related initiatives during the year 2012-13
The work of Integrated Village Development has been taken up in 18 villages through reputed NGOs.
The work involves focus on Literacy, Health & Hygiene, Agriculture, Livelihood Development, Infrastructure Development, etc.
6. Skill Development
6.1 Skill Development related initiatives during the year 2012-13
• 40 youth from Bastar Region were trained in Air Conditioning, Refrigeration, Automobile Repairs & Services at Raipur and successfully placed.
• 14 Tribal youth of Bastar Region were trained in Retail, BPO, and Hospitality Sectors and successfully placed.
26.0 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, PIOs have been appointed in each of NMDC's units.
21.0 STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956
Statement pursuant to section 212 of the Companies Act, 1956 relating to the Subsidiary Companies is at Annexure-II.
The Board of Directors at their 427th meeting have approved the Policy on Corporate Governance. A separate section on Corporate Governance is enclosed at Annexure-III.
22.0 REPORT ON MANAGEMENT DISCUSSIONS AND ANALYSIS
A Report on Management discussions and Analysis as required in terms of Clause 49(F) of the Listing Agreement is enclosed at Annexure-IV.
23.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS
Report on compliance with principles of Global Compact is enclosed at Annexure-V.
24.0 BUSINESS RESPONSIBILITY REPORT
SEBI vide its Circular No. CIR/CFD/DIL/8/2012 dated 13.08.2012 has inter alia stipulated that considering the larger interest of public disclosure regarding steps taken by listed entities from an Environmental, Social and Governance ("ESG") perspective, it has been decided to mandate inclusion of Business Responsibility Reports ("BR reports") as part of the Annual Reports for listed entities. Accordingly, a new Clause 55 has been included in the Listing Agreement of the Stock Exchanges which inter alia stipulates that listed entities shall submit, as part of their Annual Reports, Business Responsibility Reports, describing the initiatives taken by them from an environmental, social and governance perspective, in the format as suggested. The requirement to include Business Responsibility Reports as part of the Annual Reports shall be mandatory for top 100 listed entities based on market capitalization at BSE and NSE as on March 31, 2012. The provisions of this circular shall be applicable with effect from financial year ending on or after December 31, 2012. The equity shares of NMDC are listed both in BSE / NSE and also form part of top 100 listed entities based on market capitalization criteria. Accordingly, as NMDC is fulfilling the criteria as stipulated, it is required to comply with clause 55 of the Listing Agreement. As such, Business Responsibility Report is annexed at Annexure-VI.
25.0 AWARDS RECEIVED BY THE COMPANY
The details of awards received by the Company for the year under review are as under:
i) On 25th May'2012 NMDC received Bureaucracy Today Star PSU Excellence Award 2012 under CSR category organized by Bureaucracy Today.
ii) On 28th May'2012 NMDC received i) Overall PSU Excellence, ii) Best Navratna Company iii) Best Mining PSU awards from Dr. Verappa Moily, Hon'ble Minister for Corporate Affairs, Govt. of India organized by Dun & Bradstreet.
On 05th Jun'2012 CMD, NMDC received Rajbhasha Protsahan Shield for the year 2010-11 for implementation of Offficial Language policy in the Undertakings/ Offices under MoS for the excellent work done in Hindi. This award was presented by Sri Beni Prasad Verma, Hon'ble Minister for Steel, Govt. of India.
iv) On 01st Jun'2012, NMDC received 1st Rank in Mining Sector out of "Top 500 companies 2011" Organized by Dun & Bradstreet. This award was presented by Sri Kapil Sibal, Hon'ble Minister for Communication & IT Govt. of India.
v) On 12th Jul'2012 Director(Finance), NMDC is conferred with "Achievers and Leaders Award (Finance)" from Institute of Public Enterprises (IPE) and Banking Financial Services & Insurance (BFSI), Hyderabad.
vi) On 13th Jul'2012 Director(Technical), NMDC received Abheraj Baldota Memorial Award 'Mining Engineer of the year' for the year 2010-11 from Mining Engineers Association of India.
vii) On 23rd Jul'2012 Director(Finance), NMDC received "Icon of the Accounting Profession' Award from Institute of Public Enterprises (IPE), Hyderabad.
viii) On 06th Sep'2012 Director(Per.) has been conferred with HR Leadership Award at the Asia Pacific HRM Congress 2012 at Bengaluru. He was also honoured with a citation on inclusion of his name as one of the "Most Powerful HR Professional of India".
ix) On 20th Dec'2012 CMD, NMDC received PSE Excellence Award as Company of the year in the Navratna category for the year 2012 from Sri OP Rawat, Secretary, Department of Public Enterprises organized by Department of Public Enterprises & Indian Chamber of Commerce.
x) On 28th Jan'2013, NMDC received India Pride Award in the category "Metals, Minerals & Trade including Mining" for the year 2012-13 from Dr. M Veerappa Moily, Hon'ble Union Minister for Petroleum & Natural Gas, Govt. of India organized by Dainik Bhaskar Group.
xi) On 14th Feb'2013, NMDC received Quality Excellence Award for Best CSR practices from Star of the Industry Group, Mumbai.
xii) On 16th Feb'2013, Director(Per) received "Most talented HR Leader in PSUs" Award during the World CSR Congress.
xiii) On 17th Feb'2013, Di rector(Per) received "Global HR Excellence Award" during The World CSR Congress.
xiv) On 18th Feb'2013, NMDC received Fifty 'Most caring Companies of India" Award during the CSR Congress at Mumbai.
xv) On 23rd Mar'2013, NMDC received 'Best PSU Award 2013' under 'Most efficient Navratna in Non-Manufacturing' category from Sri Ajit Singh, Hon'ble Minister for Civil Aviation, Govt. of India organized by Dalal Street Investment Journal, New Delhi.
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.
Place : Hyderabad
Date : 03.07.2013