Directors Report of NMDC Ltd.

Mar 31, 2025

Your Directors are pleased to present the 67^th Annual Report on the performance of your Company, together with the Audit Report and
Financial Statements for the year ended 31^st March 2025 and the Report thereon by the Comptroller and Auditor General of India.

1.0 STATE OF COMPANY AFFAIRS &
PERFORMANCE HIGHLIGHTS

During the year under review, the Company has recorded
turnover of H 23,668 crore, achieved Profit Before Tax
(PBT) of H 9,296 crore and achieved Profit After Tax (PAT)
of H 6,693 crore.

The major performance highlights are
summarized as under:-

•    The Company achieved production of 44.07 MT
as compared to 45.02 MT during the previous year
thereby recording decrease of 2.11%. Further, the
Company recorded sales of 44.40 MT as compared to
44.48 MT during previous year.

•    Turnover for the year under review was H 23,668
crore as against H 21,294 crore in previous
financial year 2023-24. ¹

•    Profit Before Tax (PBT) after exceptional item including
discontinuing operations was H 9,296 crore compared
to H 8,012 crore in the previous financial year 2023-24.

•    Profit After Tax (PAT) was H 6,693 crore compared to
H 5,632 crore in the previous financial year 2023-24.

•    Net worth of the Company stood at H 29,579 crore
as on 31.03.2025 i.e., an increase of 16.43% as
compared to previous financial year 2023-24.

•    The Company declared an interim dividend of

H 2.30 per share in March 2025 and the same was
paid to shareholders within the prescribed timelines.
Further, the Company has also recommended Final
Dividend of H 1.00 per share for financial year 2024-25
subject to approval of the shareholders in the Annual
General Meeting.

•    Capital expenditure of H 3,715 crore (including

H 150 crore incurred towards doubling of KK Line
from Kirandul to Jagdalpur) was incurred during the
year under review.

2.0    PHYSICAL PERFORMANCE

2.1    Production

Product	Achievement		% of change
	2023-24	2024-25
Iron Ore (Million tonnes)	45.02	44.07	(-) 2 %
Diamond (Carats)	295.61	4,602.03	(+) 1457%
Pellets (Tonnes)	2,63,053	1,70,605	(-) 35 %
Pellets (Tonnes) Through Job Work	-	5,91,901	-

3.0 SALES OF IRON ORE

Â	Physical (in Million Tones)			Value (J in crore)
Particulars	Achievement		% of	Achievement		% of
Â	2023-24	2024-25	change	2023-24	2024-25	change
Â
Domestic	44.48	44.40	(-) 0.17 %	21,049.47	22,803.40	(+) 8.33%
Export	-	-	-	-	-	-
Total Sales	44.48	44.40	(-) 0.17%	21,049.47	22,803.40	(+) 8.33%

3.1 Other Sales

Products	Achievement
	2023-24	2024-25
a) Wind Power		Â
Sales (lakh units)	178.42	189.44
Value (H in crore)	6.25	6.46
b) Pellet Domestic		Â
Sales (In WMT)	2,40,125	2,15,511
Value (H in crore)	232.40	206.55
c) Pellet Export		Â
Sales (In WMT)	-	4,80,308
Value (H in crore)	-	448.19
d) HR Coils (In WMT) Domestic		Â
Sales (In WMT)	-	43,834.82
Value (H in crore)	-	198.98
e) Sales of Services and Other Operating Revenue		Â
Value (H in crore)	4.74	5.69

4.0    FINANCIAL PERFORMANCE

4.1    Operating Results

Products	Achievement		% of Change
	2023-24	| ^(2024-25
Profit Before Tax (PBT) (H in crore)	8,012	9,296	16.03%
Profit After Tax (PAT) (H in crore)	5,632	6,693	18.84%
Net Worth (H in crore)	25,406	29,579	16.43%
Book Value per share (H)	28.901	33.64	16.40%
Earnings per Share	6.411	7.61	18.72%

* NMDC had come up with bonus issue in the ratio 2:1 during FY 2024-25. Accordingly, figures for the previous year have been adjusted, for comparison.

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

4.2    Profit & Dividend

During the year under review, your Company has earned
profit before tax of H 9,296 crore on a turnover of H 23,668
crore in comparison with previous year’s achievement of
H 8,012 crore and H 21,294 crore respectively.

The Company has declared Interim Dividend for FY
2024-25 @ H 2.30 per share in the month of March 2025
and the same was paid to the shareholders within the
prescribed timelines.

The total amount of payment towards 1^st Interim Dividend
was H 2,022.12 crore out of which H 1,229.25 crore was paic
to the Government of India in respect of its shareholding of
60.79% in the Company.

Further, the Board of Directors has recommended Final
Dividend for FY 2024-25 @ H 1.00 per share in the month
of May 2025, subject to the approval of shareholders in
the ensuing AGM.

4.3    Share Capital

During FY 2024-25, the shareholders of the Company in
the Extraordinary General Meeting held on 12^th December
2024 inter-alia accorded approval for (i) increase in the
Authorized share capital of the Company from H 400 crores
to H 1,000 crores and (ii) Issue of bonus shares in the ratio
2:1 i.e. two bonus equity shares of H 1/- each for every
existing equity share held as on the Record date i.e.

27^th December 2024.

a)    Authorized Share Capital

As on 31^st March, 2025, the Authorized Share Capital
of the Company was H1,000 crores divided into
1000,00,00,000 equity shares of H 1/- each.

b)    Paid-up Share Capital

Pursuant to approval of the shareholders and other
requisite approvals, a total of 586,12,11,700 bonus
equity shares of H 1/- each were issued to the
shareholders holding shares as on the record date.

The trading in the said bonus equity shares on stock
exchanges commenced with effect from
31^st December 2024 i.e. within T+2 days of the Record
date in terms of SEBI Circular dated 16.09.2024.

As on 31^st March, 2025, the Paid-up Share Capital
of the Company was H879.18 crores divided into
879,18,17,550 equity shares of H1/- each.

4.4    Transfer to Reserves

The Company proposed to transfer H 2,000 crore from net
profit to General Reserve.

4.5    Material changes and commitments, if any,
affecting the financial position of the company,
which have occurred between the end of financial
year of the company to which the financial
statements relate and the date of the report: Nil

4.6    Deposits

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

4.7    Non-Convertible Debentures (NCDs)

During the year under review, the Company has not issued
any Non-Convertible Debentures (NCDs).

5.0    INTERNAL CONTROL SYSTEMS WITH REGARD
TO FINANCIAL STATEMENTS

Necessary disclosure in respect of Internal Control Systems
and their adequacy has been made in Annexure-C to the
Independent Auditors’ Report dated 27.05.2025 which
forms part of the Annual Report.

6.0    (a) PARTICULARS OF LOANS, GUARANTEES

AND INVESTMENTS UNDER SECTION 186 OF
THE COMPANIES ACT, 2013

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

(b)    PARTICULARS OF CONTRACTS OR
ARRANGEMENTS WITH RELATED PARTIES
DISCLOSURES

Disclosure on related party transactions forms part
of the Notes to the Financial Statement (Standalone
and Consolidated) of the company for the financial
year 2024-25. Further, the requisite disclosure in Form
AoC-2 is also annexed herewith.

(c)    MAINTENANCE OF COST RECORDS

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

7.0    (a) STATUTORY AUDITOR’S REPORT

The Audit Report for both Standalone and
Consolidated Financial Statements for the year
2024-25 is unmodified and does not contain any
qualification, reservation or adverse remark.

(b) COMMENTS OF C&AG ON FINANCIAL
STATEMENTS

The Comptroller and Auditor General of India (C&AG),
vide their letter dated 6th August 2025, have provided
their comments on the standalone and consolidated
financial statements of the Company for the financial
year ended 31st March 2025, in accordance with
Section 143(6)(b) of the Companies Act, 2013. The
Management’s responses to the said comments
are enclosed as Annexure IX(a) and IX(b) to this
Report, respectively.

(c) SECRETARIAL AUDIT REPORT

The Secretarial Audit for the FY 2024-25 was done by M/s B.R. Agrawal & Associates, Practising Company Secretaries. The
Secretarial Audit Report is enclosed to this report. There are certain observations in the report, the management reply of
which is as under:-

Sl. No.	Summary of observation of Secretarial Auditors	Management’s Reply
1.	Composition of the Board: There was no Independent Directors on the Board of the Company as required under the provisions of the Companies Act 2013, SEBI (LODR) Regulations 2015 and DPE Guidelines.	The Company is a Central Government Company/CPSE and Directors on the Board including Independent Directors are appointed by the President of India acting through Administrative Ministry i.e Ministry of Steel, Government of
2.	Non-appointment of Woman Independent Director: There was no Woman Independent Director on the Board of the Company as required under the provisions of the Companies Act 2013, & SEBI (LODR) Regulations 2015.	India. During the period under consideration, the appointment of requisite number of Independent Directors was awaited from the Administrative Ministry, therefore, the provisions of Regulation 17 with regard to composition of the Board, could
3.	Quorum for Board Meetings: Pursuant to the provisions of Regulation 17(2A) of SEBI (LODR) Regulation 2015, the quorum for every meeting of Board of directors shall be 1/3rd (one-third) of its total strength or 03 (three) directors, whichever is higher, including at-least one Independent director. However, the specified quorum for the Board meetings could not be available in the Board meetings held 08.01.2025, 06.02.2025 and 17.03.2025.	not be complied with. Further, due to absence of Independent Directors on the Board of the Company since 29.12.2024, the quorum for Board meetings could not be present in the Board meetings held on 08.01.2025, 06.02.2025 and 17.03.2025. The Company had requested the administrative ministry, from time to time, for appointment of requisite number of Independent Directors including at least one Woman Independent Director on the Board of the Company.
4.	Non-Constitution of Audit Committee:- In absence of Independent Directors on the Board, the Company could not constitute any Independent Audit Committee and the other provisions relating to Audit Committee could not be complied with since 01.11.2024.	The Company is a Central Government Company/CPSE and Directors on the Board including Independent Directors are appointed by the President of India acting through Administrative Ministry i.e. Ministry of Steel, Government of India. The Audit Committee was duly constituted till 31.10.2024. However, due to inadequate number of Independent Directors on the Board, the provisions of Regulation 18 could not be complied with, since 01.11.2024.
5.	Non-Constitution of Nomination & Remuneration Committee:- In absence of Independent Directors on the Board of the Company, the Company could not constitute any NRC/Remuneration Committee and the other provisions relating to NRC/Remuneration Committee could not be complied with since 01.11.2024.	The Company is a Central Government Company/CPSE and Directors on the Board including Independent Directors are appointed by the President of India acting through Administrative Ministry i.e. Ministry of Steel, Government of India. The Nomination & Remuneration Committee was duly constituted till 31.10.2024. However, due to inadequate number of Independent Directors on the Board, the provision of Regulation 19 could not be complied with since 01.11.2024.
6.	Non-Constitution of Stakeholders Relationship Committee:- In absence of Independent Director on the Board of the Company, the Company could not constitute any Stakeholder Relationship Committee and the other provisions relating to Stakeholder Relationship Committee could not be complied with since 01.11.2024.	The Company is a Central Government Company/CPSE and Directors on the Board including Independent Directors are appointed by the President of India acting through Administrative Ministry i.e Ministry of Steel, Government of India. After the cessation of tenure of Independent Directors on the Board, the Stakeholders’ Relationship Committee could not be re-constituted. Further, no meetings of the Committee were held since 01.11.2024.

Sl. No.	Summary of observation of Secretarial Auditors	Management’s Reply
7.	Non-Constitution of Risk Management Committee:- In absence of Independent Director on the Board of the Company, the Company could not constitute any Risk Management Committee since 01.11.2024.	The Company is a Central Government Company/CPSE and Directors on the Board including Independent Directors are appointed by the President of India acting through Administrative Ministry i.e. Ministry of Steel, Government of India. After the cessation of tenure of Independent Directors on the Board, the Risk Management Committee could not be re¬ constituted. Further, no meetings of the Committee were held since 01.11.2024.
8.	Inadequate number of Directors on the Board for some time intervals: The number of Directors on the Board of the Company was largely in compliance with the requirement of minimum number of Directors, however, in the intermittent period, the number of Directors fell below the minimum prescribed limit of six (6) on 3 occasions for 5 days, 11 days and 40 days respectively.	The Company is a Central Government Company/CPSE and Directors on the Board including Independent Directors are appointed by the President of India acting through Administrative Ministry i.e. Ministry of Steel, Government of India. During the financial year 2024-25, there were three instances when the number of Directors fell below the minimum prescribed limit of six (6) Directors. Further, as on 31.03.2025, the Board comprised of six Directors comprising of CMD, 4 Functional Directors and

8.0 NEW PROJECTS & BUSINESS
DIVERSIFICATIONS:

In line with the Vision plan 2030, aimed at achieving a 100
MTPA production, NMDC has taken up several production
augmentations schemes and evacuation infrastructure
enhancements. Additionally, new deposits and OCSL plant
facilities are also envisaged to support this goal. During
the financial year 2024-25, the following Projects were
undertaken by NMDC:

A. Ongoing Projects:

1.    Screening Plant III - Kirandul Complex

2.    Slurry Pipeline Project which includes facilities like
15 MTPA Slurry Pipeline from Bacheli to Nagarnar
along with 2.0 MTPA Ore Processing Plant at Bacheli
and 2.0 MTPA Pellet Plant at Nagarnar

3.    Doubling of KK line between Kirandul & Jagdalpur

4.    Screening Plant II- Donimalai Complex

5.    New crushing Plant and Downhill Conveyor
system at Dep-14 &11C

6.    Additional Screening Line & upgradation of existing
downhill conveyor at Dep-5, Bacheli.

7.    Township Project at Kirandul

Projects / Schemes for capacity expansion

•    To augment the production and to improve evacuation
facilities from Bailadila Sector, the schemes like SP-III
Kirandul, New Crushing Plant of Dep.14 & 11C and
Downhill conveyor system at Kirandul, additional
screening lines in Bacheli, Rapid Wagon Loading
System (RWLS) at Kirandul etc. are envisaged.
Increasing the evacuation capacity being a major area
of focus for enhancing the life of mines, the schemes
like beneficiation plant at Bacheli & Kirandul and Slurry
pipeline from Bacheli to Nagarnar has been taken up.

•    In Screening Plant-III project at Kirandul the site work
in packages like MRSS package, Dry Circuit (major
technological package), Wet Circuit and Miscellaneous
Building packages are in progress. The Rapid
Wagon Loading System (RWLS) package has been
completed. The overall progress of the project is 70%
as on 31.03.2025.

•    In Screening Plant-II project at Donimalai the site
work of main technological package is in progress.

The overall progress of the project is 9.42%

as on 31.03.2025.

•    The Construction of New Crushing Plant & Downhill
Conveyor System for Dep-14 & 11C, Kirandul has
been awarded on 21.03.2025.

•    To increase the production capacity of the Bacheli
Complex, dedicated OCSL facilities are being
developed, with a targeted increase to 28 MTPA by FY
2029-30 and 35 MTPA by FY 2031-32. Furthermore,
the creation of additional lump ore stockpiles, pre¬
weigh bin arrangements, loading facilities etc. within
the existing loading plant are in different stages of
execution to enhance evacuation capacity.

•    In Kirandul Complex, key infrastructure developments,
including the installation of the 315 N3 conveyor,

the development of Rail No. 13, and the installation
of RWLS-2 and RWLS-3, are in different stages
of execution to improve both production &
evacuation capacity.

•    In Donimalai Complex, an additional screening line
in SP-I along with capacity upgradation of conveyor
is planned to enhance production. Furthermore,
creation of new mechanical stacking and reclaiming
facilities at RNJP is also being planned to improve the
evacuation system.

Projects / Schemes to enhance evacuation capacity

•    To augment the evacuation capacity from Bailadila
sector, many projects & schemes are taken up like
doubling of KK line, Slurry pipeline etc

•    Doubling of KK line between Kirandul & Jagdalpur
(150.462 km) is being executed by Railways as a
Deposit work and overall progress for this work

is 90%. Doubling of 128 km rail line is already
completed and is in operation. 12.42 km & 9.5 km
rail line doubling is expected to be completed by
November 2025 & March 2026 respectively. The
completion of this project will augment the evacuation
capacity of Bailadila sector through railway line
from 28 to 60 MTPA.

•    NMDC has taken up an ambitious project of laying
Slurry pipeline from Bailadila to Nagarnar. The capacity
of the line is 15 MTPA and this will be associated

with facilities like beneficiation plant at Bacheli, Pellet
plant at Nagarnar. Laying of slurry pipeline between
Bacheli and Nagarnar, 2.0 MTPA Ore Processing plant
at Bacheli and 2.0 MTPA Pellet Plant at Nagarnar are
taken up in Phase-1 for implementation.

•    Site development works of Ore Processing Plant (OPP)
at Bacheli and Pellet Plant at Nagarnar and enabling
works of Ore Processing Plant & Pellet Plant at
Nagarnar are completed along with soil investigation
studies. All the packages are awarded and the work
for the packages like Slurry Pipeline Laying, Slurry
Pumping System, Technological Package of Pellet
Plant at Nagarnar and for Ore Processing Plant at
Bacheli, Main Receiving Substation and Construction
activities are in progress at site. Around 102 km
of pipeline line laying was completed. The overall
progress of the project was 74% as on 31.03.2025.

Township Facilities

•    In order to provide better facilities to the employees,
NMDC is constructing a residential township of 365
units at Kirandul, Chhattisgarh. The construction work
is in progress. The overall progress of the project was
74% as on 31.03.2025.

•    NMDC is also in the process of constructing additional
high rise residential quarters at Bacheli, Kirandul,
Donimalai and Panna.

Solar Power Projects

•    As a part of the thrust to tap renewable energy
sources, NMDC installed wind energy of about 10.5
MW at Chitradurga, Karnataka State and a 1.5 MW
rooftop solar power plants in various production units.

Development of New Deposits & Digital Initiatives

•    NMDC is in the process of development of
new deposits 04 & 13 along with OCSL plants,
with both short-term and long-term objectives
under consideration.

•    NMDC is also working on additional initiatives
including the implementation of digital solutions for
stockpile management, and automatic sampling
systems are being implemented to streamline
operations and improve efficiency. Feasibility studies
are also underway for the inclusion of 190T dumpers
along with allied infrastructure and the installation of
the IPCC system.

9.0 OVERSEAS PROJECTS / NMDC GLOBAL
Australia

Legacy Iron Ore, Perth, Australia

Legacy Iron Ore Ltd (Legacy) is an ASX-listed mineral
resources company based in Perth, Western Australia,
focusing on gold, iron ore and base metals. NMDC
has 92.84% equity in the company. Legacy holds 25
prospective tenements across its Mount Bevan, South
Laverton, and East Kimberley project areas in Western
Australia. The tenements are in various stages of
exploration for a host of commodities, including iron (1),
gold (20), base metals and tungsten (4).

The Mount Bevan Project in Western Australia is of strategic
importance to Legacy. It endows a significant magnetite
Mineral Resource of 1.29 billion tonnes at 33.50% Fe
(JORC Inferred & Indicated). The project has been the
focus of considerable investment, with approximately
21,000 meters of reverse circulation (RC) and 3,000 meters
of core drilling for iron ore (haematite and magnetite) and
nickel exploration.

Legacy signed a Joint Venture (JV) Magnetite Agreement
with Hancock Magnetite Prospecting Ltd (Hancock)
to complete a pre-feasibility study (PFS). Under this
arrangement, Hancock has completed the PFS studies.
After completing of the prefeasibility studies (PFS), the
shareholding in JV changed to Legacy 29.4%, Hancock
51% and Hawthorn Resources 19.6% interest in Mount
Bevan JV. Aber completion of PFS, Hawthorn Resources
opted to exit with royalty option and accordingly the
shareholding in JV changed to Legacy 36.57% &

Hancock 63.43%.

Additionally, to further underpin the future potential and
strategic importance of the Mount Bevan tenement, Legacy
signed a joint venture agreement for lithium and other
minerals with Hancock in June 2023. Currently, Legacy has
a 55.5% interest in the asset. The Agreement formalizes
terms for Hancock to earn-in to all non-iron minerals,
focusing on the exploration and development of lithium and
other critical minerals.

The South Laverton Project includes Mount Celia, Yilgangi,
Yerilla and Patricia North gold assets. Mining Lease for
Mount Celia Gold Project has been granted by the Western
Australian Department of Mining Industry Regulation and
Safety (DMIRS) in the first half of 2023. Mount Celia has
a declared JORC-compliant Mineral Resource of 312,600
ounces at 1.39g/t Au supported by 30,173 meters of RC
drilling and 1,150 meters of core drilling.

Legacy has commenced Gold mining operations in Mt.
Celia Gold Project on 5^th November, 2023 and first sale
of ore has been done in March 2024. Legacy has entered
into an Ore Purchase Agreement (OPA) with Paddington
Gold Pty Ltd. The ore is being hauled to the Paddington
processing, with payment initiated on the first delivery
of each ore parcel. The average grade and recovery are

being determined from Grade Determination Activities
(GDA) undertaken by independent drilling contractors and
analytical laboratories. The life of the mine for the first
phase of mining is approximately 14 months. Resource
definition drilling is planned to increase confidence in the
Inferred mineral resource and extend the life of the Mt. Celia
Gold Operation mine. Legacy has entered into a right to
mine agreement with BGR mining wherein BGR is funding
the operational expenses and the profits will be shared as
per the agreed terms.

The Yilgangi and Patricia North tenements are in the early
to mid-stage of exploration maturity. Yilgangi has a Mineral
Resource of 10,000 ounces but can potentially develop as a
satellite gold deposit for Mount Celia’s operation.

The East Kimberley Project is 350 kms south of Kunnunura,
Western Australia. It includes Koongie Park, Sophie
Downs, Ruby Plains and Taylor Lookout tenements,
known to host prospective geology for base metals, gold,
rare earth elements (REE) and tungsten mineralisation.

The East Kimberley tenements are in the early stages
of exploration, with first- pass drilling for base metal
exploration completed.

Mozambique

International Coal Ventures Pvt. Ltd. (ICVL)

International Coal Ventures Pvt. Ltd. (ICVL), a joint venture
company of SAIL, RINL, NMDC, CIL & NTPC, acquired
a coking/thermal coal mine in Mozambique in 2014 and
operation of the same was taken over by ICVL. NMDC
holds 25.94% stake in ICVL. Benga mine, one of the
operational asset of ICVL, has produced about 0.67 million
tonne of Coal (0.53 million tonne of Coking Coal + 0.14
million tonne of Thermal Coal) in FY 2024-25 and exported
1.12 million tonnes of Coal (0.62 million tonnes of Coking
Coal + 0.50 million tonnes of Thermal Coal).

10.0    LEASES FOR MINERALS

10.1    Iron Ore

Your Company is having Five Iron Ore Leases in Chhattisgarh and two Iron Ore Leases in Karnataka. The present
status is as under: -

In Chhattisgarh

Sl. No.	Name of Mining Lease	Area in Ha	| ^|ML Validity
1	Bailadila Deposit-11 (A, B & C)	874.924	10.09.2037
2	Bailadila Deposit-14	322.368	11.09.2035
3	Bailadila Deposit-14NMZ	506.742	06.12.2035
4	Bailadila Deposit-5	540.05	10.09.2035
5	Bailadila Deposit-10	309.34	10.09.2035

Sl. No. Name of Mining Lease	Area in Ha	ML Validity
1 Donimalai Iron Ore Mines	597.54	03.11.2038
2 Kumaraswamy Iron Ore Mines	639.80	17.10.2042

10.2 Diamond Mining Leases:

Your Company is having Two Leases at Panna Diamond Mining Project, Madhya Pradesh. The details of leases are given below:

Sl. No. Name of Mining Lease	Area in Ha	ML Validity
1 MML (Main Mining Lease)	113.332	14.07.2025
2 SML (Supplementary Mining Lease)	162.631	30.06.2040

Your Company has recommenced mining operations
from 11.03.2024 after obtaining favourable judgement
from Hon’ble Supreme Court of India and Environmental
Clearance from MoEFCC.

10.3 Coal Mines

The status of coal mines allotted to NMDC Ltd. is as under:

a)    Tokisud North Coal mine (non-coking coal mine):

The coal mine was allotted on 17.08.2020, with
project area of 585Ha. NMDC has obtained transfer of
Environment Clearance (EC), Stage II Forest Clearance
(FC), permission for Railway siding, & obtained NoC
for ground water abstraction and has appointed
Mine Developer and Operator (MDO) to undertake
mining operation.

NMDC has made payment to the State Government
for transfer of Govt. land from previous allottee
(~48Ha), the forest land vested to NMDC has been
released on 06.04.2025. Out of the Ministry of Coal
vested freehold land in 102 deeds due to procedural
issues on purchase of land by previous allottee under
Chota Nagpur Tenancy Act, 1908, 95 deeds have been
cancelled. Hence, NMDC initiated land acquisition
under Coal Bearing Area (Acquisition & Development)
Act, 1957 & Notification under Section 7 has been
issued on 25.09.2024, NoC under Section 8 issued on

25.11.2024 and application for Section 9 submitted
on 04.12.2024.

The mining operation is expected to
commence by FY 2025-26.

b)    Rohne coal mine (Coking coal mine):

The coal mine was allotted on 18.06.2021. The mine
comprises of 1,245 Ha area, out of which 825 Ha has
been explored & 420 Ha is yet to be explored.

In the area to be explored (420 Ha), NMDC has
issued LoI to MECL for exploration, obtained transfer
of Stage I FC, compliance to Stage I FC submitted
& paid NPV charges. Exploration activity would
start after issuance of Stage II FC, which has been
delayed due to linking of the FC Stage I compliance
to conditions for compliance applicable to mining
area by MoEF&CC. MOEF&CC has delinked Stage
I FC conditions applicable to mining area & NMDC
submitted compliance of Stage I FC. MoEF&CC has
asked NMDC to submit the wildlife management plan
of the exploration area which is in progress.

In the explored area, NMDC has obtained transfer
of EC, Stage I FC. Out of ~97 Ha of land vested by
Ministry of Coal, the State Tribunal has restored some
part of the land & the same has been challenged in
Hon’ble High Court of Ranchi. For acquisition of entire
land (including restored land), NMDC has initiated
land acquisition under Coal Bearing Area (Acquisition
& Development) Act, 1957. Notification under Section
4 has been issued on 12.12.2023, Section 7 issued
on 02.08.2024, NoC under Section 8 issued on

25.10.2024 & application for Section 9 submitted on
23.03.2025. On Stage II FC in Mining area, compliance
of Stage I FC has been submitted and NPV charges
of 95.6 crore has been paid & compliance of
additional query is in progress. On modification of
Compensatory Afforestation land related condition
in Stage I FC MoEF&CC on 16.12.2024 issued a
circular of special provision for PSUs accordingly,
based on NMDC’s request, DFO has identified
~3000Ha of degraded forest land for Compensatory
Afforestation & field verification of the same is in
progress. After completion of the field verification,

KML file preparation, CA Scheme would be prepared
& compliance to Stage I approval would be submitted

The mining operation is expected to
commence by FY 2025-26.

10.4 Your Company has applied for various minerals
in different State for prospecting and mining
Operations, which are as follows:

1. Odisha-

Malangtoli Iron Ore Deposit

Your Company has carried out detailed exploration
of Malangtoli Iron ore deposit, Odisha during
1972-77 and established mineable reserve of 340
Million tonnes.

Your Company is putting efforts and pursuing the
matter with Ministry of Mines, Govt of India through
MoS, GoI for reservation of Malangtoli Iron Ore Block
in favour of NMDC where detailed exploration was
carried out by NMDC. Due to continuous persuasion
by your Company, Ministry of Mines, Govt of India
sent a letter to Govt of Odisha (GoO) on 04-01-2022
regarding their comments on the instant proposal and
observation made by IBM, Nagpur.

Director (Mines), Govt. of Odisha vide letter dated

06.10.2022 requested NMDC to provide the
information for reservation of Malangtoli Iron Ore
block (B, F & G Blocks) over an area of 39.03 sq. kms
under section 17 A (1A) for grant of Mining Lease.
Against the above communication of DMG, Odisha,
NMDC vide letter dated 25.10.2022 has submitted the
information as sought and requested DMG, Odisha
and Ministry of Mines to reserve the said Malangtoli
Iron Ore block under Section 17A (1A) of MMDR Act,
1957 for grant of mining lease as the applied area was
already explored by NMDC.

NMDC vide letter dated 12.12.2023, requested Chief
Secretary Govt. of Odisha (with a copy to MoM &

MoS, GoI) to send a positive response to Ministry
of Mines, GoI letter dated 04.01.2022, so that
prior approval to Malangtoli Iron Ore Block can be
provided by MoM, GoI.

A meeting was held on 02.02.2024 at MoM, GoI, under
the Chairmanship of Hon’ble Secretary, MoM, GoI
related to the reservation blocks under Section 17A of
MMDR Act, 1957. Hon’ble Secretary, MoM, GoI gave
his consent to discuss the matter with GoO regarding
reservation of Malangtoli Iron Ore Block in favour
of NMDC Limited.

CMD, NMDC vide letter dated 27.02.2024 requested
MoM, GoI (with a copy to Mos, GoI) to take up the
matter with GoO for reservation of Malangtoli Block.

As discussed in the meeting held on 02.02.2024
regarding Section 17A, MoM, GoI sent 4^th reminder
letter to GoO on 27.02.2024 for requisite information/
comments from GoO. On 08.04.2025 MoM, GoI sent
again 5^th reminder letter to GoO for their comments
related to reservation of Malangtoli Iron Ore Block.

On 08.07.2024 CMD, NMDC requested Chief
Secretary, Govt. of Odisha to take up the matter with
Additional Chief Secretary (Steel & Mines), Govt. of
Odisha to take action upon the MoM, letter regarding
reservation of Malangtoli Block.

During the visit to Dept. of Steel & Mines, GoO and
Directorate of Mines and Geology, GoO was visited
for enquiring the Malangtoli proposal, GoO officials
informed that Govt. of Odisha, Dept. of Steel & Mines
vide Notification dated 21.05.2024 has asked Odisha
Mining Corporation (OMC) to carry out Geological
exploration in the 12 Mineral Blocks of Sundergarh
and Keonjhar District, under Rule 67 of MCR, 2016.

Out of 12 allotted Blocks to OMC, Block No. 4
Samarchuan Blocks is overlapping with the NMDC
applied Malangtoli Iron Ore Block.

On 24.03.2025, NMDC sent a letter to the Secretary,
MoS to take up the matter with MoM, GoI regarding
Malangtoli area overlapping with 12 Mineral Blocks
allocated to OMC for G-2 level Exploration.

Your Company is putting efforts and pursuing the
matter with MoM, GoI for reservation of Malangtoli
Iron Ore Block in favour of NMDC. Matter is under
consideration with MoM, GoI.

Rakma Iron Ore Deposit

Your company has applied for Rakma Iron Ore
deposit vide letter dated 14.11.2023 to MoS, GoI has
submitted the Rakma Iron Ore Composite Licence
Blocks Reservation Proposal located in Keonjhar and
Sundergarh District, Odisha applied under Section 17A
of MM(D&R) Act, 1957.

On 14.03.2024, MoS, GoI asked NMDC to submit
reply on various queries related to the NMDC applied
Rakma Iron Ore Block. NMDC submitted the reply to
MoS, GoI on 16.03.2024.

On 16.04.2024 MoS, GoI forwarded NMDC application
to MoM, GoI for reservation of Rakma Iron Ore
Block and on 23.04.2024, MOM, GoI asked IBM to
send its comments related to NMDC applied Rakma
Iron Ore Block.

On 01.07.2024 MoM, GoI has sent 1^st Reminder
to GoO to furnished comments/views on the
aforesaid proposal.

During the visit to Dept. of Steel & Mines, GoO and
Directorate of Mines and Geology, GoO were visited
for enquiring the Rakma proposal. GoO officials
informed that Govt. of Odisha, Dept. of Steel & Mines
vide Notification dated 21.05.2024 has asked Odisha
Mining Corporation (OMC) to carry out Geological
exploration in the 12 Mineral Blocks of Sundergarh
and Keonjhar District, under Rule 67 of MCR, 2016.

Out of 12 allotted Blocks to OMC, Block No.1
(Badamgarh-Khajuridihi) Block is overlapping with
NMDC applied. Rakma Block.

Your Company is putting efforts and pursuing the
matter with MoM, GoI for reservation of Rakma
Iron Ore Block in favour of NMDC. Matter is under
consideration with MoM, GoI.

Kansa Nickel Block

As discussed during the meeting of Niti Ayog by Addl.
Secretary, MoM, dated 20.05.2024, NMDC submitted
the proposal for reservation of Kansa Nickel Block
(Area: 8.0 Sq. Km.) located in Jajpur District, Odisha
in favour of NMDC under Section 17A of MMDR Act,
1957 to MoS, GoI On 04.10.2024.

MoM, GoI on 11.11.2024 asked IBM and GoO to
furnish its comments related to NMDC’s applied
Kansa Nickel Block.

Dept. of Steel & Mines GoO, on 21.11.2024 forwarded
the proposal to DMG, Odisha for its comments on
NMDC proposal. During the visit to DMG, Odisha on
20/01/2025, it was informed by DMG Officials that
GSI has been asked to offer its views on the NMDC
applied Kansa Nickel Block proposal. GSI is conducting
exploration activities on the NMDC applied Kansa
Nickel Block. Depending on the results obtained after
exploration an appropriate decision will be taken.

GSI, Bhubaneswar on 20.01.2025 was also visited to
discuss the exploration status of Kansa Nickel Block.
GSI Directors informed that earlier based upon 180
Bore holes, GSI estimated Geological reserve (G-2
Level) of 40 MT with more than 1% Ni Content and
average occurrence of Nickel ore upto 100m depth.
GSI also stated that the Block is highly prospective
for Cobalt also. GSI officials said that the exploration
work may be completed by 3^rd quarter of FY 2025-26.
Further, they suggested based on G-2 level exploration
report NMDC may apply for Mining Lease.

2. Maharashtra

Karampalli Iron Ore and Damkodi-Metta Iron Ore
Blocks

Your company vide letter dated 30.09.2023 has
applied two Iron Ore Blocks Karampalli (21.81) Sq.Km
and Damkodi-Metta (24.68) Sq.Km. in Gadchiroli
District, Maharashtra to MoS, GoI for reservation
under Section 17A of MMDR Act, 1957.

MoS, GoI vide Office Memorandum dated 20.11.2023
sent the NMDC reservation proposal to Ministry of
Mines, Govt of India.

Your Company is putting efforts and pursuing the
matter with Ministry of Mines, Govt of India through
MoS, GoI for reservation of above two Iron Ore
Blocks. A meeting was held on 02.02.2024 at MoM,
GoI, under the Chairmanship of Hon’ble Secretary,
MoM, GoI related to the reservation blocks under
Section 17A of MMDR Act, 1957. Secretary, MoM, GoI
remarked in the meeting to examine the proposals of
Damkodi_Metta Iron Ore Block & Karampalli Iron Ore
Block in light of the legal provisions.

Based upon the queries raised by MoM, GoI, NMDC
submitted the reply to MoS, GoI on 28.02.2024 for
onward submission to MoM, GoI.

MoS, GoI forwarded the reply of NMDC to
MoM, GoI on dated 18.03.2024. Matter is under
consideration with MoM, GoI.

On 08.04.2024 MoM, GoI requested Govt. of
Maharashtra and IBM, GoI in their separate letters to
send comments on reservation of two applied Iron Ore
Blocks in Maharashtra.

On 02.06.2024 MoM, GoI in its reminder letter No.
M.VI-16.03.2024-Mines VI asked IBM to furnish
its comments/views with a report on the aforesaid
proposal at the earliest so that further necessary
action may be taken by MoM, GoI in the matter.

A meeting was held on 06.12.2024 under the
Chairmanship of Hon’ble Minister of Steel. The
meeting was related to the proposal of reservation
blocks pending with MoM, GoI, where State Govt.
already had offered its comments. Both the NMDC
applied Iron ore proposals of Maharashtra were also
discussed. Secretary (Steel) emphasized for the
reservation of these mineral blocks in favour of PSUs.
Secretary (Mines) assured to look after the matter in
positive manner.

3. Chhattisgarh

Iron Ore Mining Lease Area Enhancement

Your Company vide letter dated 13/12/2023 requested
the Secretary, MRD, Govt. of Chhattisgarh to take
up the matter with Ministry of Mines, Govt. of India
regarding enhancement of the maximum area limit for
Iron Ore Mining Lease from 50 Km2 to 100 Km2 in the
State of Chhattisgarh under first proviso of section 6
(1) (b) of MMDR Act, 1957.

On 18.01.2024, MRD, Govt. of Chhattisgarh forwarded
the proposal to DMG, GoCG. On 20/03/2025 CMD,
NMDC discussed the matter with Chief Secretary and
Secretary, MRD, GoCG. GoCG has assured to take-up
the matter with MoM, GoI.

Jheriya Diamond Block

NMET, MoM, Govt. of India vide letter dated

20.09.2022 sent the final allocation order of Jheriya
Block for carrying out regional diamond exploration
with a time line of 18 months at an estimated cost
of H 2.46 Crores.

EPMA study of 22 samples was completed and
Discriminant plot for various minerals was generated
which show negative results. Work progress of the
Jheriya block was reviewed in the 63^rd TCC meeting of
NMET on 22.03.2024.

The final Geological Report of Jheriya Block,
Chhattisgarh was submitted to NMET, GOI on

04.05.2024. Financial settlement was done with NMET
as per their e-mail dated 16.04.2024.

4. Karnataka-

Ramandurg Iron ore Block

Your company has submitted a proposal on

28.05.2024 to MoS, GoI, for reservation of Ramandurg
Iron Ore Block under section 17A of MMDR Act.

1957 for an area of 4.79 Sq.Km. for grant of mining
lease in favour of NMDC Ltd for non-captive purpose.
MoS, GoI sent queries on 29.05.2024 to NMDC for
clarification and the same were replied by NMDC to
MoS on 03.06.2024. MoS, GOI forwarded the proposal
to MoM, GOI on 18.06.2024.

On 08.11.2024 MoM, GoI asked GoK to furnish
comments on NMDC reservation proposal. The matter
is under consideration with State Govt.

DMS Mining Lease, Bellary District:

NMDC submitted an application on 25.03.2025 to the
Secretary, Ministry of Steel, Govt. of India to reserve
19.02 Ha. area of M/s Deccan Mining Syndicate’s
cancelled ML of Iron ore (ML No. 2525) in Sandur
Taluk, Bellary District, Karnataka as it falls within
Kumaraswamy ML of NMDC, under Section 17A
(2A) of MM (D&R) Amendment Act, 2015 for grant of
mining operation.

Lithium-

Your company has submitted a proposal to the
Director, DMG, Government of Karnataka (GoK)
to reserve 24.95 Sq.km area for Lithium and other
associated elements in Raichur District, Karnataka
under Section 17 (A) of MM (D&R) Act, 1957 for grant
of prospecting and mining operation.

Director, DMG, GoK has conducted a meeting with
AMD, GSI & NMDC on 28.08.2023 to discuss on
exploration of Lithium bearing pegmatites in Raichur
District, accordingly GoK notified GSI as per Rule

67(1) of Minerals (other than Atomic and Hydro
Carbons Energy Minerals) Concession Rules, 2016
for exploration of the area. Once the exploration is
completed, the State Government will further proceed
for allotment of block for Mining Lease.

5.    Andhra Pradesh
Jerella Bauxite Block

Your Company has applied for Korukonda (Jerella)
Bauxite block over an area of 9.90 Sq.km in Alluri
Sitharama Raju district (Earstwhile Vishakhapatnam
District) to Ministry of Steel, Govt. of India for
reservation under Section 17 (A) of MM (D&R) Act,
1957 vide letter dated 27.10.2023. Vide letter dated

04.01.2024,    MOM, GoI has enquired some information
from MoS related to reservation of the applied
block. On 12.01.2024, NMDC Ltd. has submitted

the information/relevant documents to MoS, GoI. On

16.01.2024,    the same was forwarded by MoS, GoI to
MoM, GoI for further course of action.

On 03.07.2024 MoM, GoI has asked IBM, Hyderabad
and GoAP to comment on the proposed block.

On 11.08.2024, DMG, Ibrahimpatnam asked DMG,
Paderu Alluri Sitharamaraju District, A.P. to offer its
comments on NMDC proposal.

DMG, Paderu, Alluri Sitharamaraju District, A.P. on

21.11.2024    has Sent its reply to DMG, Ibrahimpatnam.
The matter is under consideration with GoAP.

Chigargunta-Bisanatham gold block

Your Company had secured the Letter of Intent (LOI)
on 07.10.2022 for Chigargunta-Bisanatham Gold
block through the Mineral Auction of Andhra Pradesh
held in July, 2018.

The project had several uncertainties impacting capex
and thus, making the gold Project marginal with
significant downsides.

NMDC vide letter dated 08.12.2023 surrendered the
LoI to the Director, DMG, GoAP.

Industries and Commerce Department, GoAP
vide letter MEMO.NO.869/MIII(1)/2018 dated

11.02.2025    revoked the LoI of Chigargunta-
Bisanatham Gold Block.

6.    Jharkhand:

ML Jain and R Mc Dill (Karampada West Iron ore
Block):

An application has been submitted over an area
of 312.43 Ha by clustering Mining Leases of M/s
M L Jain & Sons and M/s R Mc Dill Co Pvt. Ltd,

West Singhbhum District, Jharkhand for reservation

of Composite Licence in favour of JNMDC on
20/09/2019 under Section 17A (2A) of MM(D&R)
Amendment Act, 2015.

As per the media news dated 02.02.2021, Ministry of
Mines, Govt. of India has informed to the Secretary,
Mines, Govt. of Jharkhand that the 7 Iron ore Leases
of Jharkhand which were lapsed on 31.03.2020, have
to be put for auction and if the successful bidder
fails to operate the mines, then it can be reserved
for State PSU.

DMG, Govt. of Jharkhand has completed G3 Lavel
of Exploration through GSI in 2021. NMDC is going
to write a letter to MoS, GoI to take up the matter
with MoM, GoI and Government of Jharkhand to
reserve the area covering 312.43 Ha by clustering
of expired leases of M/s M.L. Jain and Sons and
R. Mcdill Co. Pvt. Ltd in West Singhbhum District,
Jharkhand for Composite License under Section 17A
of MMDR Act, 1957.

NMDC vide letter dated 20.01.2025 submitted an
application to MoS, GoI for reservation of Karampada
West Iron Ore Block, located in West Singhbhum
District, Jharkhand under Section 17A of MMDR Act,
1957 for grant of Mining Lease in favour of JNMDC.

MoS, GoI vide on 22.01.2025 asked queries to NMDC
related to the applied Karampada West Iron Ore Block.

A detailed reply addressing the queries from the MoS,
GoI was sent to MoS on 18.02.2025.

Ghatkuri Iron Ore Deposit:

JNMDC submitted a proposal on 17.10.2017 to the
Secretary, Department of Industries Mines & Geology,
GoJ, for reservation of Ghatkuri Iron ore deposit,

West Singhbhum District, Jharkhand, under Section
17A(2A) of MM(D&R) Amendment Act 2015 for grant
of Prospecting and Mining operation to provide iron
ore linkage to the proposed Jharkhand Kolhan Steel
Limited (JKSL).

NMDC vide letter dated 01.02.2021 requested Addl.
Sec. MoS, GoI to take up the matter with MOEF
&CC for exempting the Ghatkuri Iron Ore area from
conservation zone and keep it under Mining Zone so
that this block can be reserved for JNMDC.

10.5 Exploration in Madhya Pradesh (M.P.)

Tripartite MoU among GoMP (MRD through DGM),
MPSMCL & NMDC was signed for exploration in the State
of Madhya Pradesh on 27.10.2016 for a period of 5 years
and further extended for 3 years w.e.f. 27.10.2021.

Exploration works completed and all the areas were
surrendered in October 2024.

10.6    Initiatives for Technological upgradation

State-of-the-art driven Fleet Management System
(FMS) for BIOM Bacheli & Kirandul Complex as part
of digital transformation to set the legacy in mining
sector and increase efficiency, productivity and safety,
has been commissioned in BIOM, Kirandul Complex
& BIOM, Bacheli Complex, and at present, it is under
comprehensive warranty.

The Fleet Management System includes complete
software and hardware structure which is designed for live
monitoring (online) and control of tracking devices, installed
on the vehicle being used for carrying out production
activity in the mine. The effective outputs from the system
are available to the user(s) online live for quick monitoring
and decision-making. Long-term statistical reports can
also be extracted for long-term management, planning and
integration with ERP (SAP).

The different modules of FMS are as follows:

1)    High & Low Precision FMS Guidance System

2)    Proximity Awareness System

3)    Fuel Management System

4)    Tyre Pressure & Temperature Monitoring System

5)    Fatigue Monitoring System

6)    Crusher Utility Management

7)    Health Monitoring System

10.7    NMDC-CMDC Limited (NCL)

NMDC-CMDC Limited (NCL) is a Joint venture Company of
NMDC Limited and CMDC Limited with a share capital ratio
of 51% and 49%, respectively. The present status of all the
projects of the Company is as follows:

Bailadila Deposit-4

Ministry of Mines, GoI has reserved Bailadila Iron Ore
Deposit-4, over an area of 646.596 Ha in favour of NMDC-
CMDC LIMITED (NCL) under section 17A (1A) OF the
MMDR Act, 1957 vide their Gazette notification no. 697(E)
dated 30/09/2019 for a period of 05 years for prospecting
and mining operations. MRD, GoCG has issued an LOI
for grant of ML vide letter dated 26.06.2021 in favour of
NCL for five years. The mining plan of Dep-4 has been
approved by IBM, Raipur, on 24.09.2021. NCL has applied
for obtaining Environment Clearance under the Environment
Protection Act, 1986, Forest Clearance under the Forest
Conservation Act, 1980 and Land Acquisition under the
LARR Act-2013.

Terms of Reference (ToR) for Industry-1 sector (ancillary
activities outside ML area) issued on 21.02.2022 and for
Mining Sector (mining activities inside ML area) issued
on 11.03.2022 for obtaining Environment Clearance.

Ecological studies, flora & fauna studies completed on
31.05.2022. Draft EIA/EMP report submitted to CECB,

Govt. of Chhattisgarh for public hearing on 31.03.2023.
Public Hearing for environmental clearance conducted
on 12.09.2023. CECB, Raipur, dated 03.10.2023, has
forwarded the proceedings of the public hearing and other
related documents to MoEF&CC, GOI, New Delhi. After the
conduct of the Public Hearing and finalization of the EIA /
EMP Report, application for the -

a)    Grant of the EC for Mining Lease has been submitted
for consideration of the EAC (Non-Coal Mining) on
the Parivesh 2.0 Portal of the MoEF&CC, Gol on

24.01.2024.    (EDS has been raised on 22.02.2024,
asking for Stage I Forest Clearance).

b)    Grant of the EC for the Beneficiation Plant has
been submitted for consideration of the SEIAA
- Chhattisgarh on the Parivesh 2.0 Portal of the
MoEF&CC, GoI on 25.01.2024. The proposal was
considered in the 549^th meeting of the State Expert
Appraisal Committee (SEAC-3), Chhattisgarh, held on

06.11.2024.    On reviewing the proposal, the SEAC has
asked for certain clarification and asked to submit the
reply along with Stage-I Forest clearance.

Preliminary notification under the provisions of sub-section
(1) of section 11 of the LARR Act-2013, had been issued by
the district collector, Dantewada, on 24.08.2023. The work
for the resettlement & rehabilitation plan is in process.

Forest application for forest diversion proposal is
registered vide Registration no FP/CG/MIN/146694/2021
dated 16.06.2022.

Biodiversity Conservation Plan and Soil Water &

Moisture Conservation Plan for the Tree Fern area has
been approved by the PCCF and Member Secretary,
Chhattisgarh State Biodiversity Board on 21.08.2023.
Wildlife Conservation Plan has been approved by the PCCF
(Wildlife and Biodiversity Conservation) cum Chief Wildlife
Warden on 25.09.2023.

The forest diversion proposal had been forwarded to the
MoEF&CC, New Delhi, online through the Parivesh Portal by
the State Government on 02.02.2024.

Indian Council of Forestry Research and Education,
Dehradun, had submitted its final report on
“Ascertaining the safe distance from the existing
tree fern habitat for carrying out mining activities and
infrastructure development” to the Forest Department,
GoCG on 20.12.2024.

Double-degraded forest land for raising compensatory
afforestation has been identified in Jajgir-Chapma District,
Gaurela-Pendra-Marwahi District, and Balrampur District.

Site inspection of the project area and CA land area
has been conducted by the Integrated Regional
Office, MoEF&CC, Nagpur on 06.12.2024 and

15.12.2024, respectively.

The forest diversion application has been considered in the
FAC meeting of the MoEF&CC, New Delhi on 16.04.2025.

Bailadila Deposit -13

Mining lease was granted for Bailadila Iron Ore Deposit-13
over an area of 413.745 Ha in favour of NMDC Limited for
50 years by State Govt. of Chhattisgarh vide order no. F3-
84/95/12 dated 07.01.2017 lease deed for the same was
executed on 10.01.2017 over an area of 315.813 Ha.

As per JV agreement dated 27.03.2007 by and between
CMDC and NMDC Ltd., mining lease of Bailadila Iron Ore
Deposit-13 has to be transferred in the name of NMDC-
CMDC Limited (NCL) and then NCL will undertake all
the required steps for development and operation of the
mine. Further, mining lease grant order no. F3-84/95/12
dated 07.01.2017 in respect of Deposit-13 issued by State
Govt. of Chhattisgarh, stipulate that ‘after the execution of
lease deed, NMDC will transfer the mining lease to the JV
Company NMDC-CMDC Limited’.

Mineral Resources Department, Govt. of Chhattisgarh,
has issued an order no. F3-84/95/12 dated 06.11.2017
for transferring the mining lease of Bailadila Iron Ore
Deposit-13 in favour of NMDC-CMDC Limited (NCL). Mining
Lease of Deposit-13 has been transferred in favour of
NMDC-CMDC Limited (NCL) on 04.12.2017. On 02.07.2018
M/s. Adani Enterprises Limited has been appointed as
MDO for Bailadila Iron Ore Deposit-13. MoEFCC, GOI, has
accorded transfer of Environmental Clearance in name of
NMDC-CMDC Limited from NMDC on 12.12.2019. Final
FC under Section 2(ii) of Forest Conservation Act 1980
was granted over an area of 315.813 Ha. in favour of
NMDC Limited by MoEF&CC on 09.01.2017. Action has
been initiated for transfer of existing FC in favour of NCL.
CECB granted approval to NCL for consent to Operate 2
MTPA on 27.04.2019.

The Revised Mine Plan of NCL was approved by IBM,
Raipur on 06.03.2019 for a capacity of 10 MTPA. The
validity of the Mining Plan of Deposit-13 was up to March
2021. Hence, Revised Mining Plan for the period 2021-26
has been prepared by NMDC and the same was approved
by IBM Raipur on 12.01.2021.

District Administrator, Dantewada issued orders to stop all
project activities of Dep-13 on 11.06.2019 due to protest by
local villagers against MDO and demanding enquiry against
FRA certificate issued by Gram Sabha. Forest Department,
GOCG, Raipur has issued show cause notice to NMDC for
cancelling the Stage-II Forest clearance of Deposit-13 on

06.03.2020 considering the report of District Administrator,
Dantewada to nullify the Gram Sabha proceedings.
NMDC-CMDC Limited (NCL) has submitted the reply to
the Forest Department, Govt. of Chhattisgarh against the
show cause notice issued for cancelling the Stage- II Forest
clearance of Deposit-13.

MRD, Govt. of Chhattisgarh has issued a notice to NMDC-
CMDC Limited (NCL) for lapsing the Mining Lease of
Deposit-13 for non-commencement of mining operation
within 2 years from grant of mining lease under Rule 20(3)
of MCR 2016 on 05.03.2020. NMDC-CMDC Limited (NCL)
has submitted the reply to the MRD, GOCG against the
notice issued for lapsing the Mining Lease of Deposit-13
for non-commencement of mining operation within 2 years
from the grant of mining lease under Rule 20(3) of MCR
2016. NCL vide letter no. NCL/HO/Dep-13/ML/2020/833/01
dated 25.03.2021 has submitted H 1,00,000/- (Rupees One
Lakh) towards revival of mining lease of Bailadila Iron Ore
Deposit-13 under Rule 20(5) of MCR (other than atomic and
hydro carbons energy minerals) 2016.

NCL vide letter no. NCL/HO/Dep-13/ML/2022/1014 dated

14.02.2022 has again requested the Under Secretary, MRD,
GoCG for providing a suitable decision in the matter of
lapsing of mining lease, so as to start the development and
operation of Deposit-13. Also, NCL vide letter no. NCL/HO/
Dep- 13/ML/2022/1015 dated 14.02.2022 has requested
Dy. Secretary (Forest), GoCG, for providing a suitable
decision in the matter of cancelling the Stage-II forest
clearance of Deposit-13, so as to start the development and
operation of Deposit-13.

Performance security has been renewed for another
five years as per the Mine Development and Production
Agreement (MDPA) on 05.11.2022.

The Board of NCL in its 48^th meeting held on 27.07.2021
has decided to constitute a High-Level Sub Committee
to assess the possible ways and means to commence
the mining operations from Bailadila Iron Ore Deposit
No. 13 and make its recommendation to the Board
for its consideration. In the 49^th board meeting of NCL
held on 28.10.2021, after detailed deliberation on the
recommendations of the Board level subcommittee has
instructed to get the views of the Legal Department /
Advocate General, Govt. of Chhattisgarh on the matter.

A legal opinion is sought from the Advocate General, Govt.
of Chhattisgarh, on 09.02.2022, in which it is suggested to
terminate the MDO contract. Further, on 07.06.2023, a legal
opinion was sought from the Attorney General of India by
which it is suggested to terminate the MDO contract.

The Board of NCL, in its 51^st meeting held on 03.06.2023,
after detailed deliberation on the legal opinion of the
Attorney General of India, has decided to issue a show
cause notice of termination of IMSA to M/s Adani

Enterprises Limited. Accordingly, a show cause notice of
termination, legally vetted by the Attorney General of India,
was issued to M/s Adani Enterprises Limited on 11.07.2023,
and a notice of termination of IMSA, legally vetted by
the Attorney General of India, was issued to M/s Adani
Enterprises Limited on 28.08.2023. M/s Adani Enterprises
Limited has issued a notice for the invocation of Arbitration
against the termination notice on 10.01.2024, and presently,
the arbitration is going on.

Baloda - Belmundi Diamond Block

Ministry of Mines, GOI vide G.S.R.744(E) dated 14.10.2021
granted reservation of Baloda-Belmundi Diamond Block for
PL or ML in favour of NMDC-CMDC limited under Section
17A(1A) of MMDR Act, 1957.

MRD, GoCG, Raipur vide letter dated 02.01.2023 has
issued final grant order for prospecting licence of
Baloda-Belmundi Diamond Block. PL deed of Baloda-
Belmundi Diamond Block with GoCG was signed
on dated 28.02.2023 and the same is registered on
dated 01.03.2023.

District Collector, Mahasamund vide letter dated

26.05.2023 has given permission to NMDC-CMDC Limited
to start the prospecting work.

The following exploration works have been completed:

•    31 Stream Sediments Samples Collected
and processed.

•    EPMA study of HIMs were completed from Banaras
Hindu University (BHU).

•    69 Soil Samples collected and will be analysed.

•    58 ground magnetic survey work completed and
suspected Kimberlite pipe noticed based upon the
survey. Drilling will be carried out in the suspected
Kimberlitic zone.

Pre-feasibility study of the block will be done by
outsourcing for which tendering process is under progress.

Bailadila Deposit No. 3 & 8

The Company has submitted proposal to the Secretary,
MRD, GoCG NMDC vide letter dated 16/06/2021 requested
Chief Secretary, Govt. of Chhattisgarh for reservation
of Bailadila Deposit No. 3 & 8 in favour of NMDC under
Section 17A of MMDR Act, 1957.

Ministry of Steel, Govt. of India vide D.O No:
S-28016/26/2020-NMDC, dated 03/08/2021 requested
Chief Secretary, Govt. of Chhattisgarh for reservation of
Bailadila Deposit No. 3 & 8. Further, after a meeting held
between the State Govt. of Chhattisgarh and NMDC, Govt.
of Chhattisgarh decided to reserve the said block in favour
of NMDC-CMDC Ltd. (NCL).

NMDC-CMDC Ltd. (NCL) vide letter dated 25/10/2021
submitted the proposal to Secretary, MRD, GoCG. MRD,
GoCG, vide letter dated 19/04/2022 forwarded the proposa
with recommendation to MoM, GoI.

MoM, GoI vide Office memorandum dated 18/05/2022
sought information from MoS, GoI related to Bailadila
Deposit No.3 & 8 (18.15) Sq.Km. NMDC vide letter dated
07.06.2022 sent its reply to MoS, GoI.

A meeting was held on 02/02/2024 at MoM, GoI, under the
Chairmanship of Hon’ble Secretary, MoM, GoI related to
the reservation blocks under Section 17A of MMDR Act,
1957. Hon’ble Secretary, MoM, GoI gave his consent to
examine the proposal of Bailadila Deposit No. 3 & 8.

NMDC Ltd. vide letter dated 29/02/2024 requested
MoM, GoI (with a copy to MoS, GoI & MRD, GoCG) to
consider the reservation proposal of the said block under
Section 17A of MM(D&R) Act, 1957. Matter is under
consideration with MoM, GoI.

NMDC submitted the reply to MoS, GoI on 16/03/2024
based upon the queries asked regarding Deposit no. 3&8
by MoS, GoI on 04/03/2024. On 23/04/2024 MoS, GoI

forwarded NMDC reply to MoM, GoI related to reservation
of Bailadila Deposit no. 3&8.

MoM, GoI on 13.05.2024, has sent second reminder to
GoCG for some information on urgent basis for reservation
of Deposit 3&8 in favour of NCL.

On 24.07.2024, MRD, GoCG asked DGM, GoCG to
offer comments on MoM, GoI letter dated 18.05.2022 &

13.05.2024 for the proposal of Deposit- 3&8.

In the internal meeting dated 06.12.2024, MoS, GoI
reviewed, NMDC shared details of applied Deposit no. 3&8
reservation block and the Secretary (Mines) assured to look
after the matter in positive manner.

A meeting was held on 06/12/2024 under the Chairmanship
of Hon’ble Minister of Steel. The meeting was related to
the proposal of reservation Blocks pending with MoM,

GoI, where State Govt. already had offered its comments.

In the meeting Secretary (Steel), Secretary (Mines) and
representatives from SAIL and NMDC were present.
Bailadila Iron Ore Deposit - 3 & 8 was also discussed.
Secretary (Steel) emphasized for the reservation of mineral
blocks in favour of PSUs. Secretary (Mines) assured to look
after the matter in positive manner.

11.0 SUBSIDIARY / ASSOCIATE / JOINT VENTURE (JV) COMPANIES MONITORING FRAMEWORK

NMDC has 5 (Five) subsidiaries and holds stake in 4 (four) Associate and 4 (four) JV Companies. The names of these Companies
and percentage of NMDC’s shareholding in these companies are as follows:

Â

Â

Â

Â

Â

NMDC Ltd.

Â

Â

Â

Â

Â

Â

Â

Â

r

Â

Â

Â

t

Â

Â

V

Â

Â

Â

Â

Subsi<

diaries

JV Con

ipanies

Â

Associate C

on panies

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

u —

Â

Â

95.86%

Â

j

Â

Â

Â

J&KMDC Ltd.

Â

I

Â

Â

Â

6.40%

Â

Â

Krishnapatnam Railway

j

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

;

Â

Co. Ltd.

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

¦

Â

92.84%

Â

1

Â

Â

Â

Legacy Iron Ore

Â

Â

Â

/

Â

Â

Â

\

Â

Â

Â

Â

Â

Â

Â

Ltd., Australia

Â

Â

Â

Â

Â

Â

Â

Â

International Coal

\

S

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

1 ,<

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

:

Â

Â

f

Â

Â

I

Â

Â

Â

Karnataka

Â

Â

Â

Â

Â

Â

-

Â

Â

100%

Â

l

Â

Â

Â

Â

Â

1

Â

Â

Â

Â

Â

Â

\

Â

_ J

Â

Â

Â

Â

Vijaynagar Steel Ltd.

Â

Â

Â

Â

Â

Â

Â

Â

(C

Â

Â

)

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

r

\

Â

100%

Â

1

Â

Â

Â

NMDC CSR Foundation

Â

i

Â

Â

Â

Â

.

Â

]

Â

Â

J

Â

Â

Â

Â

Â

J

Â

Â

............................?

Â

51%

1;

Â

NMDC-CMDC Ltd.

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

'

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Jharkhand National Mineral

1

Â

Â

Â

Â

Â

Â

Â

Â

Â

!

Â

Development Corporation Ltd.

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

'k-

•

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

r

\

Â

Â

Â

Â

Â

Â

Â

Â

"N

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

52%

!

Â

Bastar Railway Private Ltd.

Â

Â

Â

Â

Â

Â

Â

Â

Â

J'

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Notes:

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

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

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

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

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

3.    In case of NMDC SARL, Madagascar, where NMDC was holding 100% stake, attempts for closure were made in the past;
however, due to political instability, formal closure could not be received.

4.    Romelt SAIL (India) Ltd., an Associate company in which NMDC was holding 25% stake, is under closure.

5.    Chhattisgarh Mega Steel Ltd., an Associate company in which NMDC was holding 26% stake, is under closure.

6.    In case of Kopano NMDC Mineral (Pty.) Ltd., application for closure had been submitted.

12.0    ENVIRONMENT MANAGMENT

12.1    Environmental Clearances, Consent to

Establishments, Consent to Operates for the yeai
2024-25.

Bacheli:

a)    Ministry of Environment Forest & Climate Change,
GoI, New Delhi has granted Environmental Clearance
on 11.12.2024 for capacity expansion of Bailadila
Iron Ore Mine, Deposit-5 (ML area 540.05 Ha)
located at Bacheli, South Baster, Dantewada District,
Chhattisgarh from 10.00 MTPA to 12.00 MTPA
ROM Iron Ore (20% capacity expansion) under the
provisions of EIA Notification’ 2006.

b)    Consent to Establish for Industrial Wate Incinerator
at Bailadila Iron Ore Mine, Bacheli Complex

for capacity of 10 Kg/Hour obtained from
Chhattisgarh Environmental Conservation Board,
Raipur on 27.01.2025.

c)    Renewal of Consent to Operate for Bailadila
Iron Ore Mine, Deposit-5, Bacheli for production
of 10.00 MTPA ROM Iron Ore obtained from
Chhattisgarh Environmental Conservation Board,
Raipur on 27.03.2025.

d)    Renewal of Consent to Operate for Central
Work Shop (CWS), BIOM, Bacheli Complex for
repair and maintenance of HEMM obtained from
Chhattisgarh Environment Conservation Board,
Raipur on 06.05.2024.

Kirandul:

a)    Ministry of Environment Forest & Climate Change,
GoI, New Delhi has granted Environmental Clearance
on 17.02.2025 for capacity expansion of Bailadila
Iron Ore Mine, Deposit-14 NMZ (ML area 506.742 Ha
located at Kirandul, South Baster, Dantewada Districl
Chhattisgarh from 5.50 MTPA to 8.50 MTPA ROM Iro
Ore along with construction of 3,000 TPH & Downhill
under the provisions of EIA Notification’ 2006.

b)    Ministry of Environment Forest & Climate Change,
GoI, New Delhi has granted Environmental Clearance
on 20.02.2025 for capacity expansion of Bailadila
Iron Ore Mine, Deposit-14 (ML area 322.368 Ha)
located at Kirandul, South Baster, Dantewada
District, Chhattisgarh from 5.00 MTPA to 10.00
MTPA ROM Iron Ore along with construction of
3,000 TPH & Downhill under the provisions of EIA
Notification’ 2006.

c)    Renewal of Consent to Operate for Bailadila
Iron Ore Mine, Deposit-14&14NMZ, Kirandul for
production capacity of 10.50 MTPA obtained from
Chhattisgarh Environmental Conservation Board,
Raipur on 21.08.2024.

d) Renewal of Consent to Operate for Kumaramarenga
Railway Siding Project for Mobile Crusher and
Screens for production capacity of 250 Metric Tonnes
/ hour obtained from Chhattisgarh Environmental
Conservation Board, Raipur on 08.08.2024.

Donimalai Complex:

a. Renewal of Consent to Operate for Kumaraswamy Iron
Ore Mine, Donimalai Complex for production capacity
of 8.628 MTPA ROM Iron Ore (as per MPAP) obtained
from Karnataka State Pollution Control Board,
Bangalore on 06.03.2025.

Slurry Pipeline Project:

a. Extension of withdrawal permission (1300 m3/

Hour) obtained from Additional Director, CG State
Investment Promotion Board, Raipur on 09.07.2024.

12.2 Environmental Initiatives for the year 2024-25:

Hon’ble Prime Minister Shri. Narendra Modi has launched
the campaign “Ek Ped Maa Ke Naam” - to take a pledge
and to plant a tree as a symbol of love, respect and honour
towards our mother. To contribute in the above campaign
5,000 saplings have been planted by NMDC employees and
their family at Matri Van, Bacheli on 26.09.2024.

1.    Bacheli Project has entered an agreement with
Chhattisgarh Rajya Van Vikas Nigam Limited
(CGRVVNL) for plantation of 50,000 saplings. During
this year CGRVVNL has planted 20,000 saplings in
Bacheli Complex.

Distributed 1.25 lakh fruit bearing saplings to urban
& rural beneficiaries of Dantewada during 2024-25
through Chhattisgarh Forest Department. In addition,
BIOM, Bacheli Complex has entered into MOA with
CG Forest department for distribution of 1.00 lakh fruit
bearing sampling scheme 2025-26.

2.    Donimalai project has carried out mass plantation
drive in and nearby villages. 2500 plants of fruit
bearing species distributed and planted.

3.    BIOM, Kirandul Project has also planted 5000
samplings in village Padapur on the campaign
of Ek Ped Maa Ke Naam. Local mixed saplings
planted by the project employees, their families, and
community members.

4.    Diamond Mining Project (DMP), Panna, Madhya
Pradesh was planted 500 saplings and distributed the
same amount to villagers in and around the project.

5.    The Slurry Pipeline Project (SPL), has distributed 2,500
saplings to villagers & school children in Mawlibhatta,
Katakanda, Dilmili, Kurandi, Nagarnar & Chowkawada
under the Ek Ped Maa Ke Nam. Saplings of local fruit
bearing tree & medicinal plant such as Guava, Mango,

 

Aamla, Kachnar & Jamun were distributed to villagers
& school children with the help of Forest department
Jagdalpur. Also, saplings of Papaya & Jackfruit were
planted along with School children & Teachers in
school premises of Kurandi Middle school with the
help of Forest department Jagdalpur reaffirming
NMDC commitment to make our Earth Greener &
pollution free for our present & future generations.

12.3 Certified Compliance Report (CCR)

a)    Certified compliance report obtained from Ministry of
Environment and Forests Climate Change (MoEF&CC),
Sub-Office, Raipur on 25.11.2024 (for the capacity
expansion project of Bailadila Iron Ore Mine, Bacheli,
Deposit-10 from 6.0 to 7.2 MTPA ROM) for the
conditions stipulated in environmental Clearance letter
no. J-11015/141/2014-IA. II(M) dated 07.07.2017.

b)    Certified compliance report obtained from Ministry of
Environment and Forests Climate Change (MoEF&CC),
Sub-Office, Raipur on 04.09.2024 Bailadila Iron Ore
Mine, Bacheli, Deposit-14/11C, Kirandul (for the
capacity expansion project of Deposit-14 from 5 to
10MTPA & Deposit-14NMZ from 5.5. to 8.5 MTPA) for
the conditions stipulated in environmental Clearance
letter no. J-11015/483/2007-IA.M(M) dated 11.09.2007
& Amendment to EC on 01.12.2021.

13.0    PUBLIC DISCLOSURE OF SITE CLOSURE &
REHABILITATION RELATED ACTIVITIES

13.1    Measure to address or avoid significant
environmental or landscape impacts

The environmental attributes, which are likely to be
affected in the region, are land use, topography, water
resources, soil, air quality, socio-economic status, ecology,
and public health.

Measures to address some of the environmental aspects
are as follows:

(i)    Land use: Land reclamation and rehabilitation
along with the plantation will be done during the
closure of the mine.

(ii)    Topography: The mining would marginally affect
the overall view of the area, but will grossly modify
the local topography of the mined area at the end of
mining. The course of the present natural drainage
system will not be affected due to the present and
future mining operations. Several environmental
protective measure like buttress wall, garland drain,
check dams, settling ponds etc. are being constructed
in and around the mining area to arrest the foreign
material for further restricting the natural water

to be polluted.

(iii) Air Quality: The control measures adopted at all of

our mines to ensure the ambient Air Quality Standards

are as follows:

•    Proper maintenance of the heavy earth moving
machinery and vehicles.

•    Regular water sprinkling over the haul road as
well as over mine benches is being carried out by
water sprinklers of higher capacities.

•    Haul roads are graded regularly to clear
accumulation of loose materials & kept wet with
water sprinkling.

•    Wet drilling during primary & secondary drilling.

•    Use of sharp drill bits for drilling holes.

•    Blasting is carried out with optimum charge.

•    Avoiding blasting during high windy periods.

•    Avoiding excess filling of dumper & consequent
spillage on the road.

•    Dust suppression has been installed in crushing
plant, downhill conveyor, stockpiles, loading
plant areas etc. Dust suppression by atomized
spray in primary crusher.

•    The dry fog dust suppression system shall be
continued at different transfer points during the
non-monsoon season.

•    Covering of conveyors & using under chutes at all
the transfer points.

•    The screening plant is housed in a huge GI sheet
enclosure, which acts as a good shield for the
prevention of dust particles escaping out of the
plant building.

•    Fog canons provided at Loading plant for
suppression of dust.

•    Fixed water sprinklers in the loading plant areas
are provided and maintained.

•    Covering of all stock piles.

•    Creating green belt around the perimeter of
all the plants.

•    Ensuring good housekeeping within
plant premises.

•    Barrier plantation is being done at various places
in the townships areas such as along roadsides,
parks and colonies etc.

(iv)    Water Quality: The following control measures to
arrest water pollution :

•    Every year before onset of the monsoon de-
silting of Check dam & Check bunds is being
done to arrest the overflow of the silt into
the Nallah. Regular water sampling is being
done every year during winter period, pre¬
monsoon period, monsoon period and post
monsoon period.

•    Rain water run-off from the waste dumps in
the mine is well treated using check dams and
buttress walls to arrest the silt load and thereby
reducing the impact on the water quality.

•    In order to mitigate the impact on local water
bodies, Buttress walls and garland drains
constructed around the dumps to prevent the
flow of slime into the natural water course.

•    Effluents generate from the service centre and
auto workshop are being treated in effluent
treatment plant (ETP). The outflow/ treated water
being used for green belt generation.

(v)    Noise Levels: Higher noise levels may be
generated due to mining operations such as drilling,
blasting, and excavation. The following are some
protective measures:

•    Workers working in highly noise-prone areas
are provided with ear muffs or ear plugs as a
safety precaution, and workers are not allowed
to enter into noise-prone areas without the
use of ear masks.

•    Personal Protective Equipment (PPEs) like ear
muffs and ear plugs are provided to all the
employees and workers operating in mines
and plant areas.

•    Noise-proof & dust-proof cabins are provided for
all HEME with air-conditioners.

•    To isolate employees from noise and dust,
sound proof cabins are installed in crushing and
screening plants.

•    Proper and periodical maintenance
of HEM machinery

•    Noise levels are controlled by using optimum
explosive charge, proper delay detonators,
use of shock tubes and proper stemming to
prevent "blow-out"

•    The speed of dumpers is limited to a moderate
speed of 25 Kmph.

•    In order to mitigate the noise source,
rubber linings are provided to the vibrating
screens, chutes, and feeders at raw material
transfer points.

•    The transfer points all along the downhill/uphill
conveyor are provided with proper rubber lining
to reduce the noise generation.

(vi)    Energy Efficiency Measures:

1.    Energy audits are conducted at regular
intervals across the iron projects of NMDC
through collaboration with expert agencies.

The recommendations arising from these
audits are reviewed and appropriately
implemented to enhance energy efficiency and
operational performance.

2.    Minimum feed rates are maintained during the
downhill transportation of iron ore from the
mines to the screening plant to enable power
generation, which is utilized within the plant itself,
resulting in energy savings.

3.    The following measures are being adopted:

•    Solar Cell Sensor Switches and Solar
Lights are provided.

•    Solar heaters/solar devices are in use at
hospitals, canteens, buildings, and parks.

•    Energy-efficient motors have been installed
in the Screening Plant.

•    Power generation through a
downhill conveyor.

•    Leakages of oil, fuel, or lubricants are
plugged. Used oil, batteries, and cotton
waste are collected and sold through
authorised agencies.

•    Solar panels will be installed on the roof of
field offices, stores, OCSL plant structures
and conveyors depending on feasibility and
advancement of technology.

(vii)    Ground Vibration:

The following measures are undertaken to contain the
Peak Particle Velocity (PPV) due to blasting within the
permissible limits.

•    Proper blast design;

•    Avoiding excess confinement of charges;

•    Number of blast holes per delay
shall be kept one;

•    Proper stemming of holes shall always
be carried out;

•    Blasting is avoided during foggy whether and
when wind velocity is more than 25 km/hour;

•    Shorter stemming lengths of less than 2/3^rd of
burden distance is avoided to reduce overloading
of holes and also to control fly rock;

•    Maximum number of rows are restricted to two.
Number of delays used per blast adopted as per
field condition so as to reduce charge weight per
delay and creation of shock waves.

•    Blasting operations are carried out only during
day time as per statutory requirement;

•    A safe distance of about 500-m from centre
of blasting is maintained; and During blasting,
other activities in the immediate vicinity are
temporarily suspended.

•    Further, the existing afforestation also helps
in reducing the noise and vibration level

to some extent.

13.2 Commitment to rehabilitate land to minimize
negative impacts and maximize benefits

NMDC has an Environmental Policy with a commitment to
protect the environment. NMDC makes genuine efforts to
control pollution and meet statutory requirements. Further,
all the Iron Ore Mining Complexes have got separate
Integrated Management System (IMS) Policy (comprising of
ISO 9001:2015, ISO 14001:2015, 001:2015 ISO 45001:2018
and SA 8000:2014). The certifications to NMDC Ltd have
been accorded by the external agency "Bureau Veritas”
for the scope of "Mining and Processing of Iron Ore"
for FY 2024-25.

All the operating Mining Leases are submitting the Mining
Plan along with Progressive Mine Closure Plan (PMCP)
reviewed and updated in every five years period to Indian
Bureau of Mines for obtaining approval. In accordance with
the approved Progressive Mine Closure Plan, all the Mines
are operated with a close view to ensure all the protective
measures are taking care.

Before closing of any of the Mines, we are abiding to
submit the Final Mine Closure Plan (FMCP) in well advance
(Two years prior to the closure of mines) as per the extant
provisions of Mineral Conservation and Development
Rules-2017 to carry out all the reclamation and
rehabilitation programme. By complying the FMCP, NMDC
will undertake all the reclamation and rehabilitation activities
to return the degraded land into its original surface.

Further, as per Mineral Conservation and Development
Rules -2017, we are submitting Financial Assurance in the
form of Bank Guarantee for due and proper implementation

of the Progressive Mine Closure Plan contained in the
Mining Plan or Final Mine Closure Plan as the case may be
@ H 5.00 Lakh per Hectare of the mining lease area put to
use for mining and allied activities.

We are always work to emerge as a Global Environment
Friendly Mining Organization committed to rehabilitate land
to minimize negative impacts and maximize benefits.

13.3    Reporting on closure plan implementation and
site rehabilitation

All operating mining leases submit their respective Mining
Plans along with the Progressive Mine Closure Plans
(PMCP) to the Indian Bureau of Mines (IBM) for approval.
These plans are reviewed and updated every five years,
in accordance with the statutory requirements. Mining
operations are carried out in alignment with the approved
PMCP, ensuring that all prescribed protective and
environmental safeguards are effectively implemented.

In accordance with the provisions of the Mineral
Conservation and Development Rules, 2017, the Final Mine
Closure Plan (FMCP) is submitted at least two years prior
to the proposed closure of any mine. This plan outlines
all necessary reclamation and rehabilitation measures
to restore the degraded land to its original state. Upon
approval, NMDC undertakes the execution of all activities
as detailed in the FMCP.

Prior to initiating the final mine closure activities, advance
intimation is provided to the DGMS and Ministry of
Environment, Forest and Climate Change (MoEF&CC) as a
part of the compliance protocol.

As part of our environmental compliance, half-yearly reports
are submitted to MoEF&CC, and an annual Environment
Statement is filed with the respective State Pollution
Control Board, detailing the environmental management
measures undertaken.

NMDC also submits the Annual Return to the Indian
Bureau of Mines, which includes detailed information
on reclamation and rehabilitation activities carried out
during the previous year. Additionally, drone survey data
covering the mining lease area and a 100-metre periphery is
submitted, in line with IBM guidelines.

Closure Plans regularly updated

All the Progressive Mine Closure Plans are reviewed and
updated in every five-year period along with the Mining
Plan for further obtaining approval from Indian Bureau
of Mines (IBM).

13.4    Community involvement in closure planning

Our environmental policy is reinforced by the
implementation of ISO 14001 at our Bacheli, Kirandul,
and Donimalai mines. The Environmental Management
System (EMS) at each project site undergoes third-

party audits on yearly basis to ensure compliance and
continual improvement.

To support this framework, each of our project sites is
equipped with a specialized environmental management
team comprising domain experts. This reflects our strong
commitment to conserving natural resources, reducing
fugitive emissions, minimizing the environmental impact of
operations, and fostering environmental awareness among
employees and the local community.

We maintain active collaborations with renowned
institutions such as the Indian Council for Forestry Research
and Education (ICFRE), IIT-ISM Dhanbad, NIT Raipur,
and VNIT Nagpur. These partnerships help strengthen
our technical capabilities and provide expert guidance in
enhancing our environmental protection initiatives.

Our approach to environmental stewardship reflects our
broader commitment to sustainable mining practices. We
recognize the environmental and social impacts of our
operations and have developed a structured framework to
address them through interlinked focus areas. Each focus
area is supported by an internal management protocol,
shaped through rigorous peer review and in alignment with
evolving disclosure standards.

This framework is integral to our environmental charter
and closely aligned with our growth strategy, ensuring
that sustainability remains central to our long-term
operational vision.

13.5    Commitment to set aside sufficient funds to cover
closure and rehabilitation

The "Mine Closure Obligation Scheme" was voluntarily
introduced by NMDC during the financial year 2009-10.
Under this initiative, NMDC currently contributes INR 12
to 94 per tonne of ore excavated based on the individual
project, with the amount being deposited with LIC.

These funds are earmarked for implementing various
components of the Mine Closure Plan, including land
reclamation, stabilization of waste rock dumps, demolition
of infrastructure, and reforestation of disturbed areas.

As of 31.03.2025, the total corpus accumulated with LIC
under this scheme stands at INR 1,469 crore.

13.6    Managerial responsibility for land closure and
rehabilitation

The responsibility for the implementation of the Conceptual
Mine Closure, Reclamation & Rehabilitation Management
Plan of all the Mines rests with the Management Team at
different Project of NMDC. Internal reporting requirements
are being outlined by the Management at different projects
and are delegated to the relevant staff.

All the closure activities, reclamation & Rehabilitation
plan are being executed as per the approved Progressive
Mine Closure Plan.

Further, during the Final Mine Closure , all the closure
activities will be taken care as per the approved Final
Mine Closure Plan.

14.0 SAFETY

Mine Safety - Activities

NMDC has its training centres in all its projects. They are
equipped with infrastructure as required under Mines
Vocational Training Rules. These centres cater to the needs
of basic training, refresher training and training for skilled
workers and also for those injured on duty.

Health & Safety continue to be our priority with employees
& contractual workmen at our Projects adhering to the
SOPs & Safety norms. NMDC appreciate that safety
is a journey & is committed to continually improve its
performance and set high standards.

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 for carrying safety inspections.

Mine Level Tripartite Safety Committee Meetings (MLTSCM)
are being conducted once in a year at Project Level with
Senior Officials, Union Representatives and DGMS Officials
in which Safety Performance and its appraisal are made
and the recommendations are implemented.

Corporate Level Tripartite Safety Committee Meeting is
being held regularly once in a year at Head Office and the
recommendations are implemented.

NMDC is committed to maintaining the highest standards
of safety across all its mining operations. To ensure
robust safety governance, Safety Committees have
been constituted at each operating mine. Monthly Pit
Safety Meetings are held to discuss safety issues,
review workplace conditions, and implement necessary
corrective measures.

A comprehensive Safety Management System (SMS)

has been implemented across all mines. As part of this
system, regular Risk Assessment studies are undertaken
to proactively identify and mitigate potential hazards
in the workplace.

To further enhance safety standards and ensure compliance
with evolving regulations, Internal Safety Audits have been
institutionalized. These are carried out at two levels:

•    Intra-project safety audits, conducted within each
project on a regular basis.

•    Inter-project safety audits, conducted every six
months, enabling cross-learning and standardization
of best practices across projects.

In addition, External Safety Audits form an integral part of
our safety assurance process. These audits are conducted
in collaboration with expert agencies such as M/s ESIC,
providing an independent evaluation of our safety systems
and helping identify areas for improvement.

Safety training is a key focus area in NMDC’s operational
philosophy. Extensive safety training programmes are

conducted regularly to instil safe work habits and create
a strong safety culture among employees. Behaviour-
Based Safety (BBS) training is also provided to promote
awareness, accountability, and proactive safety behaviour
at all levels of the workforce.

The Severity Rate for the year 2024-25 is 19.18 and
Injury frequency rate is 0.15.

(Severity Rate = Mandays lost per 100000
Mandays worked).

OHS Activities:

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

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

NMDC strives to ensure that workers are not exposed to
occupational hazards that negatively affect their health.
NMDC also has well equipped hospitals with capable
medical teams available 24/7 to support the health & well¬
being of the workers & the surrounding community.

Integrated Management System (IMS) Comprising of
Quality Management System (QMS) - ISO 9001:2015;
Environmental Management System (EMS) - ISO
14001:2015; Occupational Health & Safety Management
System (OHSMS) - ISO 45001:2018 & Social Accountability
- SA 8000:2014 Certification Standards.

All the NMDC Production Projects viz. Bailadila Iron
Ore Mine, Kirandul Complex (BIOM, KC); Bailadila Iron
Ore Mine, Bacheli Complex (BIOM, BC); Donimalai Iron
Ore Mine & Kumarswamy Iron Ore Mine, Donimalai
Complex (DIOM & KIOM) are accredited with Integrated
Management System (IMS).

15.0 IMPLEMENTATION OF INTEGRITY PACT:

With the objective of improving transparency in
procurement, NMDC had entered into MOU with
Transparency International India for implementation of
Integrity Pact Programme during September 2007. NMDC
is the first Mining Navratna Company which entered into
Integrity Pact Programme in the year 2007.

Initially, the threshold value for procurement & contracts for
entering into the Integrity Pact have been fixed as follows: -

Contracts	H 50.00 crores
Procurements	H 15.00 crores

To widen the coverage of procurements / contracts under
Integrity Pact, the threshold limits have been revised during
2009 as under:

Contracts	H 20.00 crores
Procurements	H 10.00 crores

Subsequently, to cover majority of cases under Integrity
Pact, the threshold limits have been reduced to H1.00 crore
for procurements / contracts w.e.f. September 2018.

Contracts	H 1.00 crore
Procurements	H 1.00 crore

During 2024-25, 380 tenders valuing H4111 crores were
covered under this category.

Transparency in procurements

In order to enhance transparency in procurements &
increasing competitiveness, our company adopted the
following modes of tendering:-

•    e-Procurement:

All procurement tenders are processed through
e-Procurement mode at HO & Projects. Reverse
e-auctions are conducted for high value Equipments,
spares & consumables, wherever possible, by
declaring upfront in the tender document.

•    Mode of Tendering:

Efforts are continuously taken to minimize proprietary
& single tender purchases, details of Single Tender
/ Proprietary cases for the last 05 are H271.85 lakhs
(26 cases) during 2019-20, H3975.96 Lakhs (33 cases)
during 2020-21, H13939.95 Lakhs (56 cases) during
2021-22, H17689.98 Lakhs (93 cases) during 2022-23,
H19275.01 Lakhs (53 cases) during 2023-24.There has
been considerable decrease in procurement of items
on Proprietary on single tender purchases during
2024-25, total 24 cases of valuing of H 5472.05 Crores.

Open/global tenders are resorted to by
giving generalized specifications & drawings,
wherever possible.

•    Pre-qualifying conditions:

In view of digitalization & automation of HEMM
Equipments, PQC for HEM equipments tenders have
been reviewed and a structured PQCs have been
made by technical department for wide participation.

•    GeM Portal:

Procurement through GeM portal as per the guidelines
of GOI, is being done for the Materials which are
available in the GeM Portal. Total 2146 orders valuing
H718 crores were placed during the year 2024-25,
against the targeted value of H 500 Crores.

•    Integration of GeM Portal with NMDC ERP system:

GeM Portal is integrated with ERP
system on 06.03.2025

•    CPP Portal:

MM Dept. is posting tenders in the CPP portal except
Single tender and proprietary items. All the bidders
approaching through CPP portal for entering in NMDC
are invited for registration with NMDC or conducting
trial with NMDC for ensuring their quality product.

•    File Lifecycle Management (FLM):

MM dept has taken initiation for the implementation
of FLM - Digital file moment instead of paper file
movement at Head Office & Projects.

a)    100% procurement files moved
through FLM system

b)    Flip Book system designed & developed

c)    HTML Print Preview Report
designed & developed

d)    Name, Designation, Project
reflecting on Workflow

e)    DoP Clause inclusion option developed
and implemented.

f)    Generation of e-mail to sender and receiver on
movement of FLM file.

g)    Total no. of files processed through
FLM system 3498.

(HO-252, KDL-1069, BCH-1100, DIOM-570,
Panna-279, PPT-114, Others-114)

•    NMDC e-Procurement portal (SRM):

MM dept utilizing the NMDC e-Procurement portal
to carryout procurement activities in e-Procurement
mode. The tenders which are processed outside
GeM will be done through SRM portal. Open Tender
Enquiry - OTE has been developed and enabled.
Global Tender Enquiry - GTE has been developed and
enabled (With multi-currency option)

•    Trade Receivable Discounting System (TReDS):

NMDC has completed the registration on all three
TReDS portals (i.e. RXIL, Invoicemart (A. TReDS Ltd),
MlExchange) platforms to release the payments of all
MSE firms against their acceptance and confirmation.

NMDC has conducted various vendor meets with
MSE firms in association with MSME, Hyderabad and
instructed all MSE firms to register any one of TReDS
portal to process their payment through TReDS
platform and NMDC has released payment through
TReDS to some MSEs.

Total no. of invoices processed through TReDS portal
49 valuing of H 4.78 Crores.

16.0 NMDC’s R&D CENTRE AT HYDERABAD

The R&D Centre at Hyderabad serves as a vital hub for
innovation, focusing on product and process development
across the domains of ores and mineral processing
technologies. Its core mission is to continuously enhance
process performance and maintain NMDC’s leadership in
mineral development.

Over the years, the R&D Centre has made significant
contributions not only to NMDC’s operating projects
but also to various sectors of the Indian mineral and
metallurgical industries. Its excellence and impact have
been formally recognised by the Department of Scientific
and Industrial Research (DSIR), affirming its role as a
national resource in the field of mineral research.

The R&D Centre undertakes a broad spectrum of research
and development activities, including:

•    Mineralogical and Metallurgical Studies
(Iron Ore and Coal)

•    Mineral Processing and Flow Sheet Development

•    Bulk Material Handling and Storage Solutions

•    Chemical and Elemental Analysis

•    Development of Dry Beneficiation Technologies

 

A pioneer in beneficiation, NMDC’s R&D Centre is at the
forefront of developing dry beneficiation techniques for
various ores and minerals—addressing the growing need
for water-efficient, sustainable mineral processing solutions.

For a detailed account of R&D projects, capabilities and
activities, please refer to Annexure- II attached to the
Board’s Report.

GLOBAL EXPLORATION CENTRE, RAIPUR

The Global Exploration Centre of NMDC, located in Raipur,
is actively engaged in ongoing exploration activities
across NMDC’s mining leases. Each year, the Centre
contributes to the addition of new mineral reserves. NMDC
is committed to complete G1 level exploration across all its
existing mining leases.

17.0 IMPLEMENTATION OF OFFICIAL LANGUAGE
POLICY

NMDC continued the implementation of Official
Language Policy of Government of India effectively at its
Headquarters, Projects, and Units. Hindi Parangat training
to personnel was continued this year also in NMDC. So
far, 179 personnel from Head Office have successfully
completed their Hindi Parangat training. Hindi workshops
were organized every quarter at Head Office and in all the
projects. Official Language Implementation Committee were
also held every quarter.

Rajbhasha Technical Seminars were organized at Donimalai
Iron Ore Mines, Donimalai Complex and Bailadila Iron
Ore Mines, Bacheli Complex. Head Office organized an
Inter-PSU Hindi speech competition on August 6, 2024
for the personnel of all CPSUs located in Hyderabad.

A Hindi workshop for all CPSUs was organized on
January 10, 2025 under the aegis of TOLIC (Undertaking),
Hyderabad-Secunderabad.

Hindi fortnight was organized in all projects and units
along with Head office. On the occasion messages of
CMD were published in Hindi newspapers and were also
posted on social media platforms. Various competitions
were also organized and prizes were distributed. To
maintain continuity in the use of official language Hindi in
official work, monthly Hindi competitions were organized
in addition to Hindi fortnight and prizes were distributed
as encouragement.

Half yearly Hindi magazine "Khanij Bharati" was published
from the Head Office. In addition, projects also published
Hindi/bilingual/trilingual magazines such as Baila
Samachar, Bacheli Samachar, Doni Samachar, Heera
Samachar etc. Apart from this, 'Sarjana' were published in
Hindi from Kirandul.

A special workshop on the updated questionnaire of
the Parliamentary Committee on Official Language was
conducted for the Official Language Officers working at the
Headquarters and all the projects on August 28, 2024 at
NMDC Limited, HQ under the aegis of the Ministry of Steel.

Keeping in view the objective of propagating Official
Language Hindi among the students, NMDC organized
a speech competition for girl students on December
10, 2024 in the college campus of St. Ann's College for
Women, Hyderabad.

All India Seminar of Official Language Officers was
organized by NMDC Limited, Hyderabad under the aegis
of Ministry of Steel on 21 February 2025. The seminar
was attended by Senior Officers from Ministry of Steel as
well as Official Language Officers of Steel CPSEs, TOLIC
(Undertakings), Hyderabad-Secunderabad and Rajbhasha
Officers from all the projects and regional offices of NMDC.

Rajbhasha Kirti (Second) Prize was conferred on NMDC
Limited during Hindi Day and Fourth All India Rajbhasha
Conference organized by Department of Official Language,
Ministry of Home Affairs in New Delhi on 14 and 15
September, 2024. Further, Deputy General Manager (Official
Language) of the NMDC was awarded third prize in PSU
category in All India Kanthasth 2.0 Competition.

NMDC Limited, Head Office received the Rajbhasha Shield-
First Prize in the category of Mid-Sized PSUs in Hyderabad
from Town Official Language Implementation Committee
(Undertakings), Hyderabad-Secunderabad.

Official Language House Magazine "Khanij Bharati" of
Head Office also won First prize in the e-magazine category
of Town Official Language Implementation Committee
(Undertakings), Hyderabad-Secunderbad.

18.0 DETAILS REQUIRED TO BE FURNISHED IN
TERMS OF MICRO, SMALL AND MEDIUM
ENTERPRISES DEVELOPMENT ACT, 2006
(MSMED).

The company has taken the following steps to procure
goods and services from MSE firms, MSE SC/ST & Women
entrepreneurs. NMDC has conducted exclusive MSE SC
/ ST vendor meets at its projects in Chhattisgarh and
Karnataka and also at Hyderabad to understand the tender
process and our requirement.

NMDC has participated in the various vendor meets
organised by Ministry of Micro, Small & Medium Enterprises
in association with FICCI/DICCI. Besides NMDC has
organised 13 Nos. Vendor Meets / programmes at various
places in total during 2024-25.

NMDC interacted with prospective MSE entrepreneurs encouraging them for supply of goods for various plants at Bailadila,
Donimalai & Panna.

For encouraging MSE SC/ST firms, exclusive trials are being conducted and after successful trials the firms are given tender
enquiry in Limited Tender. Moreover, against the qualification criteria in tenders we have not received any complaint / request
with regard to relaxing tender terms & conditions.

The procurement from MSE firms during FY 2024-25 details are as below:

Category of MSE Firm	Â	Norms	Achievement
Procurement from MSE firms	Â	25%	17.9 %
Procurement from SC / ST MSE firms	Â	4%	2.68 %
Procurement from Women Entrepreneur	's MSE firms	3%	1.49 %

All above details are updated on Samadhaan Portal on monthly basis.

19.0    MANPOWER

19.1    Employee-Employer Relations

At NMDC, harmonious employee-employer relations
remain a cornerstone of our organizational strength and
productivity. The Company has consistently fostered a
collaborative and inclusive work environment built on
mutual respect, trust, and open communication.

Regular interactions with employee representatives, trade
unions, and welfare committees are held to address
concerns, improve workplace policies, and ensure
alignment with organizational goals. NMDC continues
to uphold high standards of industrial relations by
promoting transparency, equitable HR practices, and
proactive engagement.

During the year, there were no significant instances of
industrial unrest. Various capacity-building initiatives,
welfare measures, and grievance redressal mechanism
have been strengthened to enhance employee satisfaction
and productivity.

NMDC recognizes employees as its most valuable
asset and remains committed to maintaining cordial
and progressive employee-employer relationships that
contribute to the Company’s sustainable growth and
inclusive development.

19.2    Scheduled Castes & Scheduled Tribes:

36 persons belonging to Scheduled Castes and 38 persons
belonging to Scheduled Tribes were appointed during the
year 2024-25 against 217 posts filled in direct recruitment.

19.3    Strength of SCs and STs as on 31.03.2025.

The manpower strength of NMDC as on 31.03.2025 was
5,677. The other details are as under:-

Total number of employees	5677
Scheduled Castes	812 (14.30%)
Scheduled Tribes	1468 (25.86%)

Other Backward Class	1214 (21.38%)
Women	381
Persons with disabilities	108

19.4    Particulars of employees drawing remuneration
of J8.5 lakhs per month or J1.02 crores per
annum under Section 197 of the Companies Act,

2013    read with Companies (Appointment and
remuneration of Managerial Personnel) Rules,

2014    as amended.

Nil

19.5    Staff Welfare activities

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

19.6    Promotion of Sports

Sport tournaments were arranged for the employees, the
wards of employees and also for the local youth.

19.7    Statement on Prevention of Sexual Harassment of
Women at Workplace

•    NMDC Limited is committed to providing a safe,
secure, and respectful work environment for all
employees, with special emphasis on ensuring the
dignity and protection of women at the workplace.

The Company strictly complies with the provisions
of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.

•    In accordance with the Act, Internal Committees
(ICs) have been constituted at all establishments and
Projects of NMDC. These committees are empowered
to receive and redress complaints related to sexual
harassment in a timely and confidential manner.
Awareness programs and sensitization workshops
have been conducted during the year to educate
employees about appropriate workplace conduct and
the mechanisms available for redressal.

•    During the financial year 2024 - 25:

a.    No. of Complaints of sexual harassment received
during the Year : 03

b.    No. of Complaints of sexual harassment
disposed off during the Year : 01

c.    No. of Complaints of sexual harassment cases
pending more than Ninety Days : Nil

•    NMDC remains fully committed to fostering a work
culture that is free from harassment, promotes gender
equality, and upholds the highest standards of
integrity and respect.

19.8 Statement on Compliance with the Maternity
Benefit Act, 1961

NMDC Limited is committed to upholding the rights and
welfare of women employees in accordance with the
provisions of the Maternity Benefit Act, 1961. The Company
ensures that all eligible women employees are provided
maternity benefits as prescribed under the Act, including
paid maternity leave, nursing breaks, and protection against
dismissal during maternity leave.

During the financial year, NMDC has strictly adhered
to all statutory provisions of the Maternity Benefit Act,
including amendments thereof. Awareness sessions and
communication regarding entitlements under the Act have
also been conducted for employees. Suitable facilities and
a supportive work environment are provided to ensure the
health, dignity, and well-being of women employees during
and after maternity.

The Company remains committed to promoting gender
equity and supporting a family-friendly workplace.

20.0    Corporate Social Responsibility

20.1    Flagship programmes under CSR for FY 2024-25

The CSR flagship programmes and initiatives undertaken/
continued by the company during 2024-25 are as follows:

A) Education

•    Operation of Residential School for tribals
at Nagarnar, Bastar District, Chhattisgarh.
Established in the year 2010-11, at present the
school has around 600 students in Class I to XII.

•    Operation of Industrial Training Institute (ITI)s
at Nagarnar and Bhansi in Bastar & Dantewada
districts of Chhattisgarh. Annual intake in
Nagarnar ITI-36 and 128 in Bhansi ITI.

Board in FY 2024-25, has approved introduction
of Computer Operator and Programming
Assistant (COPA) trade in NMDC ITI Bhansi.

•    Support to nutritious & wholesome Mid-Day Meal
Scheme around Donimalai mines, with coverage
of 8000 Govt. school children in 38 Govt. schools
of Sandur Taluk in Bellary district in a radius of 25
Km from NMDC operations.

•    NMDC Balika Shiksha Sahayog Yojana,
providing scholarships to girl students from BPL
families of Bastar Division (Chhattisgarh) and
Donimalai (Karnataka) to encourage education
beyond 8^th standard.

•    Operation of Polytechnic College at Dantewada
with an intake of 126 students per year in
Mechanical and Electrical trades.

•    Balika Shiksha Yojana - sponsoring tribal girl
students from Bastar Division, Chhattisgarh to
Nursing Courses. The number of beneficiaries
was increased from 40 to 85 from this academic
year. Since 2011-12, 582 students have

been sponsored under this scheme resulting
in improvement in healthcare delivery in
Bastar Division.

•    Financial assistance for operation of Astha
Gurukul (residential school with 1200 capacity
for orphans, SC/ST & BPL children), Saksham
{100% specially-abled residential school of
capacity 100 in each Saksham I (for boys) &
Saksham II (for girls)} & Choo Lo Aasmaan
(coaching for various National level engineering/
medical examinations along with regular classes
from class 9^th to 12^th standard with annual intake
of 80 boys and 80 girls).

B)    Healthcare, Nutrition, Water & Sanitation

•    Free treatment at Project Hospitals, Hospital on
Wheels (mobile medical vans), Medical Camps,
visits of Project Hospital Doctors and Para
medical staffs to the surrounding villages.

•    Blindness Free Bellary initiative aiming to
eliminate preventable blindness in the region
through free eye screenings, surgeries and
awareness programs.

C)    Infrastructure/ Rural Development

•    Various infrastructural development works viz.,
Construction of CC Roads, drains, culverts,
boundary walls of Community Centres etc. in

nearby villages to improve connectivity and
living standards.

20.2    CSR Activities initiated during FY 2024-25:

•    138 multi-year CSR projects proposed by State
Authorities of Chhattisgarh with an outlay of

H 108.92 crores.

•    18 CSR projects proposed by State Authorities of
Karnataka with an outlay or H 20.10 Crores.

•    Establishing outdoor/ open gyms at public places in
Secunderabad, Telangana.

•    Development works in Mandya District of Karnataka,
Karimnagar of Telangana & West Godavari District of
Andhra Pradesh.

20.3    Reasons for not spending the entire CSR amount
during FY 2024-25

The statutory CSR obligation for FY 2024-25, calculated
as 2% of the average PBT of the preceding three financial
years amounts to H 191.14 Crores.

CSR projects approved during FY 2024-25 amounts to
approx. H 217 Crores wherein majority of them are classified
as ongoing projects. These initiatives are scheduled for
completion over the next three financial years, which
accounts for the partial utilization of the allocated CSR
budget during FY 2024-25.

21.0 HUMAN RESOURCES DEVELOPMENT

During the financial year 2024-25, Corporate HRD
organized the following programmes:

External Training

Employees were sent for various Training Programmes,
Seminars, etc. which were organized by various external
organizations, institutes and professional bodies.

In-Company Training

Curated Programmes were conducted by engaging reputed
organizations, Trainers, institutes and professional bodies
on the following subjects.

•    Primavera P6 EPPM Software and Delay Analysis

•    Happiness and wellbeing

•    Public Procurement, Contracts, Preventive Vigilance

•    Programme for IO/PO

•    Spreading awareness on Vision 2.0 of NMDC

•    Reservation in recruitment and Reservation Roster

Foreign Visits

In terms of the directives of DPE, Government of India,
no foreign trainings were organized. However, Corporate

HRD facilitated for participation in various international
events as below.

•    The Mining Show at Dubai

•    Mining Indaba at Cape Town, South Africa

•    IMARC, Australia

•    PDAC, Canada

•    AMP, Europe

22.0 VIGILANCE

The Vigilance department has undertaken several initiatives
during the fiscal year 2024-25, with a particular focus on
enhancing "Preventive Vigilance." This emphasis included
conducting Preventive Checks in key areas, addressing
complaints with appropriate corrective measures, and
implementing system improvements. Additionally, regular
training sessions on vigilance matters were organized
for employees by the Vigilance functionaries at both the
Corporate Office and various projects.

Training & Sensitization: Various sensitizing program
were conducted for awareness on vigilance matters for the
employees of the Corporation like:

•    Training Session for Project Officials on Disciplinary
Proceedings & Role of IO/PO, CDA Vs CCS

& Guidelines of DoPT & DPE on Disciplinary
Proceedings, Overview of the Vigilance & its
role in PSUs at Donimalai by Shri Upender
Vennam (CVO, BDL)

•    Training Session on Procurement in PSUs & related
Norms/Guidelines at NMDC Hyderabad by Shri.

Sanjay Aggarwal, Advisor, Public Procurement
Division Dept. of Expenditure, Ministry of Finance

•    Training Sessions on Prevention of Sexual Harassment
Act (POSH) & Ethics and Governance at NMDC
Hyderabad by Dr. Praveen Kumari Singh, Ex- Addl.
Secretary, CVC

•    Training Session on “Aspects of Preventive Vigilance”
at NMDC Hyderabad by Ms. Chandrima Roy (Ex¬
professor, IRFIM).

•    Session on “Procurement - Vigilance Perspective &
Recent Trends in Vigilance Complaints” by Shri. Amal
Das, Former CMD/Director (F)/Director (Pers.) NCL,
Former President, ICMAI

•    Training Sessions on “Recent Developments in
Public Procurement” & “Implementation of Important
Statutory Guidelines related to MSEs, MII, Concurrent
Application, Land Border Sharing by Shri. Amitabh
Datta, IES (Retd.), Advisor, Ministry of Railways (Retd.)
& Faculty, AJNIFM

•    Session on “CDA Rules, DoPT Guidelines, Disciplinary
Proceedings” by Shri. Upender Vennam, CVO

BDL and Midhani

•    Session on “Ethics & Governance” by Shri. K
Siva Subramani, IPS, DIG & Head of Branch,

CBI, Hyderabad

•    Training Session on “Procurement-A Vigilance
Perspective” by Smt. Harisha Vellanki, IRAS Dy.CVO/
Accounts & Medical South-Central Railways

•    Training Session on “Procurement through GeM”
by Shri. Anuj Kumar, Director-Administration &
Coordination, GeM

•    Training Session on “Leveraging Technology for
E-Vigilance & Forensic Audit” by Shri. P Sharath
Kumar, LLB, CFE, CFAP, FCA, CA & Fraud Examiner

•    Training Session on “Ethics & Governance” by
Shri. Himanshu Vishnoi, corporate coach at
DIOM, Donimalai

•    Key note address by Shri Mahesh M Bhagawat, IPS,
Addl DGP (L&O, Telangana) on Vigilance Awareness

•    Capacity building program on Ethics & Governance,
Awareness on Procurement by Shri Himanshu
Vishnoi, Shri Amal Das, Shri Amitabh Dutta at
Kirandul and Bacheli.

•    Training Session on “GeM Policy, Public
Procurement Guidelines” at Donimalai by Shri H.S.
Gowtama, GeM Portal

•    Capacity Building Programs for executives on “Labour
Compliance & Gender Sensitisation etc.” by Dr.
Praveen Kumari Singh, Advisor, Ministry of Labour,

Gol at Donimalai.

CVO, NMDC has also taken interactive sessions on
knowledge sharing and capacity building on Procurement
& other related topics at various Projects benefitting a large
volume of employees by creating awareness on the subject.

Quality Compliance: The systems and procedures
including the document handling, maintenance of records
is maintained to ensure that the Vigilance Department is
conforming to the Quality Management Systems as per
ISO 9001:2015 Standards. Vigilance Department in NMDC
has been upgraded to ISO 9001:2015 standards of Quality
Management System (QMS) for which M/s RINA India
Private Ltd. was engaged for routine surveillance audits and
Quality Certification until June 30, 2025.

Preventive Checks: Throughout the fiscal year 2024¬
25, the Vigilance department conducted a total of 361
Preventive Checks, comprising 77 surprise checks,

152 regular inspections, 109 file studies, 12 audit para

inspections, and 11 CTE type inspections across all
projects and the Head Office.

Complaint Handling: A total of 234 complaints were
received during the period and handled according to CVC
guidelines. The Complaint Handling Policy of NMDC,
effective from January 1,2022, was made available on the
company's website for wider dissemination.

E-Platform: Efforts were made to ensure transparency
in transactions through the company's website,
including details of contracts and bill payments.

Vigilance also promoted E-Procurement platforms for
tendering processes.

Integrity Pact: NMDC has adopted the Integrity Pact since
November 2007. As per the suggestions given by Vigilance
Department, the threshold value has been decreased to 1.0
Crore w.e.f. 07.09.2018.

Rotation of Vigilance officials: To ensure transparency
in vigilance works, necessary action has been taken for
rotation / repatriation of vigilance officers, and for inducting
of new officers in Vigilance department in compliance with
CVC guidelines.

Rotational transfer of officers in Sensitive Post:

Identification of Sensitive Posts has been carried out on
01.10.2022 for three years. The rotational transfer of officers
of other departments was also effected in compliance of
CVC guidelines.

Quarterly Review Meetings: The Quarterly Review-cum-
Coordination meeting of the Vigilance department with
CVO was held in April-2024, July-2024, October-2024 &
January-2025 and the said meeting was attended by all
the Vigilance Officers. Project-wise progress of vigilance
activities were reviewed. All VOs exchanged their views and
gave valuable suggestions.

Structured Meetings: Quarterly Structured Meetings of the
Vigilance department, chaired by the CMD, NMDC, were
held to discuss vigilance activities and address pending
issues for compliance. Review of Vigilance work was also
done by the Board.

Preventive Vigilance Training: In pursuance of CVC
directions / guidelines, training programs on Preventive
Vigilance is being arranged every month at NMDC in
compliance of CVC guidelines, covering Induction level and
mid-career level executives of HO, ROs and all Projects.

Vigilance Manual: To enhance transparency and
ensure the smooth functioning of Vigilance workings,

NMDC Vigilance Manual is in place, which serves as a
comprehensive guide for internal use in the organization,
outlining key guidelines and procedures laid down by the
Central Vigilance Commission.

Additionally, 4^th Edition of in-house bulletin Subodh have
been released on 1^st November 2024, which included
Vigilance-related articles, CVC circulars, and guidelines for
procurement awareness.

Online Vigilance Portal: NMDC Ltd has been working
in the online vigilance portal, which facilitates all most all
major day to day activities of the department.

System improvements suggested for
implementation during 2024-25

Several system improvement suggestions were proposed
during the fiscal year for compliance and implementation,
with several already implemented and the rest in progress.
The major initiatives /system improvements /suggestions/
recommendations which were implemented during the
period are briefed as below:-

1.    Vide circular No. HO(Works)/ Modifications/ Tender
Clauses/ 2024 dated 14.08.2024 has been issued from
the Works department for Restricting modifications

of Tender Clauses without consent/ approval of
Competent Authority.

2.    Office order no. NMDC/ DoP/2023/02 dated
29.04.2024 is issued regarding “Constitution of Tender
Opening Committee & Tender Scrutiny Committee”
for cost-based gradation of TSC members and
Constitution of TSC members.

3.    Contract Management Manual has been updated
with incorporation of guidelines of DoE manuals and
released on 18.10.2023 in the organization, which
were further updated on 20.07.2024 & Materials
management Manual is updated and hosted in NMDC
website on 28.10.2024.

4.    With respect to the “Commercial Loading of PIT
Iron” at NSL, Nagarnar, SOP for Road Dispatch
of Secondary products have been formulated and
implemented by the concerned department.

5.    An amendment to Rule 24 of the NMDC CDA
Rules has been issued vide Office Order No. 1(47)/
Rules/2009/Vol.V dated 12.11.2024.

Vigilance Awareness Week

The vigilance campaign conducted by NMDC from 16^th
August to 15^th November 2024, culminating in Vigilance
Awareness Week (28^th October to 3^rd November 2024),
aimed to embed the theme "gc'lzai HS gflV g ar? HS g'fig
- Culture of Integrity for Nation’s Prosperity" across the
organization. This initiative included a mix of preventive
vigilance and outreach activities to promote transparency,
ethical behaviour, and awareness among employees,
stakeholders, and the broader community. The following
sections outline the key activities under preventive vigilance
and outreach efforts conducted during the campaign.

A.    Preventive Vigilance Activities:

i.    Complaint Resolution: All complaints were
addressed as per CVC directives.

ii.    System Improvements: An amendment to Rule
24 of the NMDC CDA Rules has been issued
vide Office Order No. 1(47)/Rules/2009/Vol.V
dated 12.11.2024. Also, many other systemic
improvement suggestions were complied.

iii.    Digital Presentation: Online presentation at CVC
on 2^nd August 2024 was recognized and featured
in a CVC video shown during an event with the
Hon’ble President of India.

iv.    Manual Revisions: The Procurement Manual of
Goods was updated to align with DOE's 2022
guidelines and published on NMDC's website.

v.    Pledge Ceremony: Employees and 5272
students from 31 schools took integrity pledges.

vi.    Seminars and Workshops: Held 48 programs
on public procurement, cybersecurity, and
ethics, benefiting 1006 officers, Junior
executives & Workmen.

vii.    Quizzes: Conducted at various units, involving
146 participants, including a special quiz for the
Slurry Pipeline.

viii.    Special Magazine: Released ‘Subodh’ 4^th edition
with articles on Digital practices in Mining Sector,
ethics and CVC updates and monthly magazine
at Panna and Kirandul indicating the vigilance
events was released.

ix.    Grievance Meetings: Two sessions held
with contract labourers at Donimalai for
addressing concerns.

B.    Outreach Activities

i.    Gram Sabhas: Organized five meetings
with 320 villagers at Bacheli and Kirandul to
discuss transparency.

ii.    Street Plays: Performed five skits involving 43
students to spread anti-corruption messages,
shared via WhatsApp.

iii.    Rallies/Walkathons: Held on 31^st October 2024
in honour of Sardar Patel’s birth anniversary, with
community and employee participation.

iv.    Competitions: Essay and poster contests
with 2704 participants, showcasing entries in
offices and online.

v.    School Programs: Engaged 5272 students
from 31 schools in ethics-based activities like
storytelling and poster-making.

vi.    Media Outreach: Conducted ‘VigGyan’
campaigns, sent 1178 SMS and 3242 emails, and
published 45 newspaper articles.

vii.    Banners and Posters: Displayed 85 banners, 21
standees, 600 pamphlets, and 200 e-messages
promoting vigilance themes.

viii.    Valedictory Ceremony: Featured speeches,
prize distribution for competition winners, and
participation certificates for students.

23.0 IMPACT OF THE HON’BLE SUPREME COURT
OF INDIA JUDGEMENT WITH REFERENCE
TO THE WRIT PETITION (CIVIL) NO.114/2014
DATED 02.08.2017

i.    The Company has been legally advised that the
judgment of the Hon'ble Supreme Court in Writ
Petition (Civil) No. 114/2014 dated 02.08.2017 has
no direct impact on NMDC. However, should it be
applied to NMDC at a later stage, it could affect the
Company's profitability.

Meanwhile, the Bailadila Projects of NMDC received
Show Cause Notices dated 31.07.2018 from the
District Collector, Dantewada, questioning why NMDC
should not be directed to pay compensation of
H 7241.34 crores, as per the Supreme Court judgment.
NMDC was asked to respond by 31.08.2018.

As per the legal opinion obtained, the judgment is
not applicable to NMDC, and thus, no compensation
is payable. NMDC responded to the Show Cause
Notices and contested the demand before the
Collector, Dantewada, and other appropriate
authorities. The Company has also filed objections
with the District Collector, South Bastar, Dantewada.

ii.    On 26.09.2019, the State Government issued revised
Show Cause Notices reassessing penalties at
H1623.44 crores. NMDC once again did not accept the
revised penalties.

iii.    The Collector, Dantewada, issued final demand
notices on 15.11.2019 for 1390.03 crores towards
excess production and H233.41 crores for violation
of Environmental Clearance (EC) capacity, totalling
H1623.44 crores.

a)    NMDC deposited H600 crores on 10.12.2019
under protest with the Chhattisgarh

State Government.

b)    NMDC filed two Writ Petitions (Civil)
WPC/612/2020 and WPC/616/2020 before the
Hon'ble High Court of Bilaspur on 22.01.2020,
challenging the final demand notices dated
15.11.2019 on the ground of alleged excess

extraction of iron ore beyond the environmental
clearance capacity during 2000-2017. The
following reliefs were sought :

i.    To issue a writ of certiorari or any other
appropriate writ, declaring the demand
notice dated 15.11.2019 as illegal,
without jurisdiction, and in violation of
Article 19(1)(g) and Article 246 of the
Constitution of India.

ii.    To set aside the impugned demand
notice dated 15.11.2019 for penalty and
compensation relating to excess production
over EC limits. To grant any other relief
deemed fit by the Hon'ble High Court, in light
of the facts and circumstances of the petition.

c) The matter was listed for hearing on 19.02.2020.
After hearing both parties, the Hon'ble High
Court passed the following order.

As prayed, both cases were directed to be listed
for hearing on the next date. Considering the fact
that NMDC has already deposited H600 crores,
the Hon'ble Court ordered that no coercive
action shall be taken against the petitioner until
the next date of hearing.

The respondents were also directed to submit
data regarding the petitioner's production
exceeding the Environmental Clearance (EC)
limits by the next hearing.

The matter was last listed on 20.09.2024, and the
interim stay was extended thereafter. However,
the case has not been listed since then.

iv. A revision application (No. 12/(01)/2020/RC-II) was also
filed on 24.01.2020 before the Hon'ble Mines Tribunal,
Ministry of Mines, Government of India, New Delhi,
challenging the validity of the demand notices dated
15.11.2019. The following reliefs were sought: To set
aside the penalties related to alleged excess production,
arguing that the demand is without jurisdiction, illegal,
arbitrary, violative of natural justice, and ultra vires the
MMDR Act, 1957. To pass any other appropriate orders
in the interest of justice and the public good. Last
hearing was held on 17.01.2025 and adjourned.

NMDC is actively pursuing the matter.

24.0 DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Act, the Board
of Directors, to the best of its knowledge and
ability, confirm that:

i)    in the preparation of the annual accounts, the
applicable accounting standards have been followed
and there are no material departures;

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

iii)    they have taken proper and sufficient care for the
maintenance of adequate accounting records

in accordance with the provisions of the Act for
safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;

iv)    they have prepared the annual accounts on a going
concern basis;

v)    they have laid down internal financial controls to be
followed by the Company and such internal financial
controls are adequate and operating effectively;

vi)    they have devised proper systems to ensure
compliance with the provisions of all applicable
laws and that such systems are adequate and
operating effectively.

Based on the framework of internal financial controls and
compliance systems established and maintained by the
Company, the work performed by the internal, statutory and
secretarial auditors and external consultants, including the
audit of internal financial controls over financial reporting
by the statutory auditors and the reviews performed by
management and the relevant board committees, including
the audit committee, the Board is of the opinion that the
Company’s internal financial controls were adequate and
effective during FY 2024-25.

25.0    DECLARATION ON MEETING THE CRITERIA
OF INDEPENDENCE AS PER THE COMPANIES
ACT, 2013 AND SEBI (LISTING OBLIGATIONS
AND DISCLOSURE REQUIREMENTS)
REGULATIONS, 2015.

The Independent Directors have given a declaration
on meeting the criteria of independence as stipulated
in Section 149(6) of the Companies Act, 2013 and
Regulation 25(8) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 in the FY 2024-25.

26.0    COMPANY’S POLICY ON DIRECTORS’
APPOINTMENT AND REMUNERATION

Being a Government company, all Directors on the Board of
the company are appointed by the Administrative Ministry,
i.e. Ministry of Steel, Government of India and their terms of
appointment including remuneration are determined as per
extant policies / guidelines of Government of India.

27.0    NUMBER OF BOARD MEETINGS HELD

During the year under review, 12 (Twelve) meetings of
the Board were held. For further details, reference may
kindly be made to Corporate Governance Section of
the Annual Report.

28.0    NMDC STRATEGIC MANAGEMENT PLAN
(NMDC VISION 2025)

A long-term strategic management plan (SMP), ‘Vision
2025’ was formulated which envisaged an iron ore
production capacity of 67 MTPA. This expansion
plan included brownfield expansion of existing mines
and developing greenfield mines in partnership with
Chhattisgarh Mineral Development Corporation. A joint
venture of NMDC & CMDC (NCL) is in process of starting
operations from Dep-13 Iron Ore Mine in the Bailadila
Region. The Government of Chhattisgarh has notified the
allocation of Dep-4 to NMDC in Sep’19 for prospecting and
mining operations. Various clearances are in process for
development of the Mine. By the end of FY 2025, NMDC
has achieved an EC Capacity of 64.8 MTPA.

India is presently the world’s second-largest producer of
crude steel. In FY’25, the production of crude steel stood
at 152 MT with a growth of 5% over the previous year. The
growth in the Indian steel sector has been driven by the
domestic availability of raw materials such as iron ore and
cost-effective labour. Consequently, the steel sector has
been a major contributor to India’s manufacturing output.

The Government of India announced a production linked
incentive (PLI) scheme for speciality steel. The scheme
is expected to attract investment worth ~H 400 billion
(US$ 5.37 billion) and expand speciality steel capacity
by 25 million tonnes (MT) to 42 MT by FY’27. NMDC is
also reviewing its long-term plan based on the increase
in demand & growth in the iron & steel industry after the
pandemic. As per National Steel Policy, the country has
envisaged increasing its steel production capacity to 300
MTPA by FY’31. The wide range of continuing infrastructure
projects could support growth in steel demand to reach our
envisaged target of per capita steel consumption of 158 Kg
by FY’31 in the long term. NMDC is actively pursuing an
Iron Ore Production ramp-up plan to further increase its iron
ore production capacity to 100 MTPA by FY’30.

In FY’25, the Company has progressed significantly on
various activities to enhance its production capacity
completion of various projects and significant progress
in other ongoing projects. Rapid Wagon Loading System
(RWLSI) at Kirandul Complex has been completed and
Screening Plant (SP-III) at BIOM Kirandul Complex has
progressed well in construction activities. Further, NMDC
is planning to enhance the EC capacities of mines in the
mining complexes of Bailadila and Donimalai. Further to
the demerger of NMDC Steel Limited, NSL plant has been

commissioned and started production during FY 23-24. The
plant is under stabilization stage.

To augment the evacuation capacity from the Bailadila
sector, many projects & schemes are being taken up like
doubling of KK line, Rowghat Jagdalpur line, Slurry Pipeline,
etc. Doubling of KK line is being executed by Railways as
deposit work is in full swing and few completed sections
have been opened for traffic. Out of 150 km of planned
doubling of railway line, 84% of work has already been
completed & the project is likely to be completed by FY’26.
The completion of this project will augment the evacuation
capacity of the Bailadila sector through the Railway line
from 28 MTPA to 40 MTPA.

Activities for Phase-1 of Slurry Pipe Line including 2 MTPA
capacity Ore Processing Plant (OPP) at Bacheli, 15 MTPA
capacity Slurry Pipeline System (130 km) from Bacheli to
Nagarnar and 2 MTPA capacity Pellet Plant at Nagarnar,
are under progress. The first phase of project is likely to be
completed in FY’26.

Ministry of Coal has allocated two Coal Blocks namely
Tokisud North Coal block & Rohne Coal Block on 17^th
March 2020 for commercial sale & captive purposes. NMDC
has appointed MDO for Tokisud North Coal Block and
plans to start its operations in FY’26. Various activities like
land acquisition etc. are under progress.

Besides the expansion plan, the SMP also envisaged
the introduction of systemic interventions in six strategic
transformation areas - Business, Operations, Sustainability,
Capital Projects, Human Resource and IT. NMDC has
implemented an ERP system across all projects in FY’21,
License-to-Operate (the computer based model in which all
the statutory approvals will be brought under one umbrella).
Implementation of Mines Transport Surveillance System
(MTSS)- Weighbridge automation/ Virtual Fencing/ Geo
Fencing/ GPS/ Proximity Warning Device for dumpers/
CCTV Surveillance/ Wireless Networking has been
completed at Donimalai. NMDC has further taken initiative
to venture into the fleet management system and it is under
final stage of implementation in Bailadila Sector. Efforts
are being made to install an automatic (robotic) sampling
& analysis system, vision enhancement system, conveyor

monitoring system and 3D Volumetric and Laser Scanner
System to enhance its digital strength. As a part of its
Digital Strategy, NMDC has envisioned to implement the
Integrated Command and Control centre for its mines by FY
2030. NMDC has also prepared a Master Plan for various
Digital Initiates to enhance Efficiency, Productivity, Safety
and Sustainability in its operating mines in line with Vision
Plan 2030 of producing 100 MTPA Iron Ore by 2030.

As part of the master plan, the following digital initiatives
have been identified for implementation in a Phase manner:

•    Upgradation of Unified Mine Logistic Management and
Surveillance System (UMLMSS) at Donimalai Complex

•    Establishment of Integrated Control and
Command Centre (ICCC) with CCTV Surveillance
System and PA System

•    Realtime Stockpile Management System

•    Implementation of Digitally Enabled Drilling and
Blasting Design and Optimization Solution

•    Implementation Smart HEMM

•    Implementation of Smart Metering

•    Gate Pass Automation

•    Slope Stability Monitoring

•    Contract Labour Management

•    Condition Based Monitoring at Plants

•    Vision Enhancement for Dumper Movement
during Foggy Weather.

NMDC is publishing Business Responsibility and
Sustainability Report (BRSR) and Report as per the Global
Standards and is planning to achieve the global standards
in a time bound manner. As the world is now traversing
more uncertainty than ever, NMDC is focusing on building
sustainable and resilient businesses to survive in the long
run and to make a meaningful contribution against climate
change through environment, social and governance (ESG)
initiatives. All mines of NMDC have been awarded 5 Star
Rating by the Ministry of Mines.

29.0 CHANGE IN DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP)

The following changes had occurred in the Board of Directors during the financial year 2024-25:-

Sl. No.	Change in Directorship	Date of change	Reasons for change
1.	Cessation of Shri Dilip Kumar Mohanty as Director (Production)	30.06.2024	On account of Superannuation.
2.	Cessation of Smt. Sukriti Likhi as Government Director	19.08.2024	Withdrawal of nomination by Appointing Authority i.e. Ministry of Steel, Government of India.
3.	Appointment of Shri Subodh Kumar Singh as Government Director	06.11.2024	Appointment as per Order of Ministry of Steel, Government of India.
4.	Cessation of Dr. Anil Sadashivrao Kamble as Independent Director	31.10.2024	On account of completion of tenure appointment i.e. the period of Three Years as per Order of Appointment by Appointing Authority i.e. Ministry of Steel, Government of India.
5.	Cessation of Shri Vishal Babber as Independent Director	31.10.2024	On account of completion of tenure appointment i.e. the period of Three Years as per Order of Appointment by Appointing Authority i.e. Ministry of Steel, Government of India.
6.	Appointment of Shri Joydeep Dasgupta as Director (Production)	15.11.2024	Appointment as per Order of Ministry of Steel, Government of India.
7.	Cessation of Shri Subodh Kumar Singh as Government Director	18.12.2024	Withdrawal of nomination by Appointing Authority i.e. Ministry of Steel, Government of India.
8.	Cessation of Shri Sanjay Kumar Singh as Independent Director	28.12.2024	On account of completion of tenure appointment i.e. the period of Three Years as per Order of Appointment by Appointing Authority i.e. Ministry of Steel, Government of India.
9.	Appointment of Shri Sanjeet as Government Director	09.01.2025	Appointment as per Order of Ministry of Steel, Government of India.
10.	Cessation of Shri Sanjeet as Government Director	17.01.2025	Withdrawal of nomination by Appointing Authority i.e. Ministry of Steel, Government of India.
11.	Appointment of Smt. Priyadarshini Gaddam as Director (Personnel)	28.02.2025	Appointment as per Order of Ministry of Steel, Government of India.
12.	Appointment of Shri Amitava Mukherjee, Director (Finance) as Chairman & Managing Director	06.03.2025	Appointment as per Order of Ministry of Steel, Government of India.

On elevation of Shri Amitava Mukherjee, Director (Finance) as Chairman & Managing Director of the Company, he ceased to hold
the charge of Chief Financial Officer (CFO) of the Company w.e.f. 06.03.2025.

The following changes had occurred in the Key Managerial Personnel (KMP) during the financial year 2024-25:-

Sl. No. Change in Directorship	Date of change	Reasons for change
1. Cessation of Shri Akella Sri Pardha Saradhi as Company Secretary	31.08.2024	On account of Superannuation.
2. Appointment of Shri Pravin Shekhar as Company Secretary	01.09.2024	To fill the vacancy created due to Superannuation of Shri Akella Sri Pardha Saradhi as Company Secretary

30.0 AUDITORS FOR FY 2024-25

a. Statutory Auditors

As per communication received from 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 2024-25:

Sl. No.	Unit	Statutory Auditors
1	Head Office, R & D Centre, SIU & Consolidation	M/s VARMA & VARMA Chartered Accountants # 789, 3rd Floor, Road No. 36 CBI Colony, Jubilee Hills, Hyderabad Telangana: 500 033
2	Kirandul Complex, Bacheli Complex, Slurry Pipeline Project, Jagdalpur & Vizag Office	M/s M Bhaskara Rao & Co., Chartered Accountants 5-D, 5th Floor, Kautilya 6-3-652, Somajiguda, Hyderabad, Telangana: 500 082
3	Donimalai Complex	M/s R Bupathy & Co., Chartered Accountants No. 31,4th Floor, West Anjaneya Street, Opp. Karanju Anjaneya Temple, Near BMS College, Basavangudi, Bengaluru Karnataka : 560 004
4	Panna Project	M/s S Kakkar & Co., Chartered Accountants MG Marg, Civil Lines, Allahabad, Uttar Pradesh : 211 001

b.    Cost Auditors

M/s B Mukhopadhyay & Co,

Cost Accountants
B 20, Amarabati,

Sodepur

Kolkata - 700 110.

c.    Secretarial Auditors

M/s B.R. Agrawal & Associates

Company Secretaries

C/o Goyal Enterprises, Opp Hotel Simran,

Civil Station Road, Raipur, Chhattisgarh-492009

31.0 IMPLEMENTATION OF RIGHT TO INFORMATION (RTI) 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. A close monitoring of the RTI applications received is done to
ensure that the replies are sent in time. Transparency Audit /Third party Audit towards proactive disclosure under RTI Act, 2005
has been conducted.

The number of RTI queries received and disposed during the year is as under: (from 01.04.2024 to 31.03.2025)

Applications pending on 01.04.2024	Applications received during 01.04.2024 to 31.03.2025	Applications disposed off during 01.04.2024 to 31.03.2025	Applications pending as on 31.03.2025
Â
17	443	395	65

RTI Matters

NMDC has published on its website www.nmdc.co.in,
information under Section 4(1)(b) of the RTI Act 2005.
Details of Public Information Officer and Appellate Authority
are being updated regularly for the information of the
public. Annual reports of the Company which gives lot
of information on its working are widely circulated and
also available in NMDC's website. Further information is
disseminated through press conference, press handouts
etc. NMDC maintains all its records in a transparent
manner. Information is given to the maximum extent in the
form, in which it is asked for and in the local language as
well, when needed.

32.0    DETAILS OF SIGNIFICANT AND MATERIAL
ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE
GOING CONCERN STATUS AND COMPANY’S
OPERATION IN FUTURE - Nil

33.0    AWARDS RECEIVED BY THE COMPANY

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

•    NMDC won the “Performance Excellence Award
2023-24” at the 24^th CEOs Conference organized by
the Indian Institution of Industrial Engineering (IIIE) on
31^st May 2024 at Mussoorie.

•    NMDC received the “Sustainable Champion Award” at
the Sustainability Summit and Awards 2024, held on
29^th May 2024 at Goa.

•    NMDC was awarded First Prize in the NARAKAS
Rajbhasha Language Shield initiative at the 59^th
Half-Yearly Meeting of NARAKAS held on 29^th May
2024 at Hyderabad.

•    NMDC Bacheli Complex secured 3^rd Prize in the
“Metal Above Ground - Large Category” at the Mines
Safety Award 2024, organized by the All-India Mines
Safety Association under the aegis of DGMS.

•    The Government of India conferred the Rajbhasha
Kirti Award (Second Prize) to NMDC among PSUs of
the ‘C’ region for 2023-24 at a ceremony held on 14^th
September 2024 in Delhi.

•    Hindi House Journal of NMDC, HO received First
(Joint) Prize for Best Hindi Magazine from Town
Official Language Committee of CPSUs in Hyderabad
during the meeting held on 11^th November 2024.

•    During the Mines Safety Week Celebration
2024-25 held on 17^th November 2024 at M/s Kesoram
Industries Ltd. (Cement Division), Kalburgi, Karnataka,
Donimalai Complex received the following awards:

•    Donimalai Iron Ore Mine (DIOM): 1^st Prize
in "Crusher, Electrical Installations &

Illumination"; 2^nd Prizes in Drilling & Blasting,
Occupational Health & Welfare, and Contractual
Work vis Safety.

•    Kumaraswamy Iron Ore Mine (KIOM):

1^st Prizes in Contractual Work vis Safety,

Publicity & Innovation, and Occupational Health
& Welfare; 2^nd Prizes in Mine Workings and Safety
Management System.

•    Kumaraswamy Iron Ore Mine (KIOM) received the
“Appex India Occupational Health & Safety Platinum
Award,” and Donimalai Iron Ore Mine (DIOM) was
honoured with the “Appex India Best Fire & Safety
Award” at the event held on 23^rd November 2024

at Goa.

•    NMDC won six awards at the 46^th All India PR
Conference organized by PRSI in Raipur
(20^th-22^nd December 2024), including 1^st Prizes for
Corporate Film (Hindi) and R&D Promotion, 2^nd Prizes
for CSR Implementation and E-Newsletter, and 3^rd
Prizes for Annual Report and Social Media Campaign.

•    Donimalai Iron Ore Mine was conferred with the
“Platinum Award” for its outstanding performance
and commitment to occupational health and safety

at the 17^th EXCEED Occupational Health, Safety &
Awards Conference held on 20^th January 2025 in
Jaipur, Rajasthan.

•    NMDC was honoured with the “Best Digital
Transformation Initiatives (Mining & Steel)” award at
the 7^th Technology Excellence Awards 2025, held on
7^th February 2025 at Hyderabad.

•    NMDC was honoured with the prestigious titles of
“Company of the Year” and “Brand of the Year” at th
HybizTV Business Excellence Awards 2025, held on
13^th February 2025 at Hyderabad.

•    NMDC was recognized as a leader in governance
practices at the Governance Now 11^th PSU Awards
held on 28^th February 2025 at New Delhi.

•    NMDC was honoured with the Corporate Governance
and Sustainability Vision Award 2025 by the Indian
Chamber of Commerce at a ceremony held on

12^th March 2025 in New Delhi.

34.0    VIGIL MECHANISM

NMDC being a PSU, the guidelines of Central Vigilance
Commission (CVC) are applicable which provides adequate
safeguard against victimization of the employees. The
Board of Directors at its 451^st meeting held on
20^th September 2012 approved the internal Whistle Blower
Policy of NMDC. NMDC has effectively implemented
its internal Whistle Blower Policy under CVO NMDC,
the designated Nodal Officer for the purpose, which
has been uploaded in the website of the company
under the link https://www.nmdc.co.in/investors/
policies-and-documents .

35.0    DETAILS IN RESPECT OF FRAUDS REPORTED
BY AUDITORS UNDER SECTION 143(12)
OTHER THAN WHICH ARE REPORTABLE TO
CENTRAL GOVT - NIL

36.0    FORMAL ANNUAL EVALUATION OF BOARD,
COMMITTEES AND INDIVIDUAL DIRECTORS.

NMDC Ltd., being a Government Company, the terms and
conditions of appointment and remuneration of Functional
Directors are determined by the Government of India
through its Administrative Ministry, Ministry of Steel.

In terms of notification dated 5^th June, 2015 and 13^th
June, 2017 issued by Ministry of Corporate Affairs, Govt.
of India, Government Companies have been exempted
from applicability of some of the provisions /sections of
the Companies Act, 2013 inter alia Sub-sections (2), (3)

& (4) of Section 178 regarding appointment, performance
evaluation and remuneration.

37.0    IMPLEMENTATION OF RISK MANAGEMENT
POLICY

The Board at its 442^nd meeting held on 19^th January 2012
has approved the Risk Assessment and Risk Mitigation
Policy / Enterprise Risk Management (ERM) of the
Company. Accordingly, the Company has constituted a
Board level Risk Management Committee comprising of
Functional Directors (excluding CMD) and one Independent
Director. The constitution of the Committee as on date of
this Report is as under:-

Risk Management Committee

1)    Shri Sanjay Tandon, Independent
Director, Chairperson

2)    Director (Finance)

3)    Director (Commercial)

4)    Director (Technical)

5)    Director (Production)

6)    Director (Personnel)

The Company as a part of its current Risk Management
Policy has identified top Risks That Matters (RTMs) and
documented Mitigation Plan / Strategy for the same.

During the year under review, one meeting of the Board
level Risk Management Committee were held. For details,
please refer to the Corporate Governance Report annexed
to this report.

38.0    DIVIDEND DISTRIBUTION POLICY

The Board of Directors has approved Dividend Distribution
Policy which has been uploaded in the website of the
company under the link:

https://www.nmdc.co.in/cms-admin/Upload/Pol-
icies-Document/ae4bb5f07e7e4654a3f881c-
cec7b9163 20210920060806207.pdf

39.0    ERP, Digitalization and IT Infrastructure

1. NMDC has laid out a phased roadmap for digital

transformation aimed at enhancing efficiency, productivity,
and safety in its operating mines. As part of these initiatives,
the implementation of a Real-time Stockpile Management
System at the Bacheli Loading Plant has been awarded
to improve the visibility and management of stockpile
operations. This system is designed to optimize stockpile
management by providing real-time data, improving
accuracy in ore quantity assessment, and minimizing
manual intervention.

2.    Digital initiatives currently underway include:

•    Digitally Enabled Drilling and Blasting Design
Optimization Solution

•    Outdoor WiFi implementation at Bacheli, Kirandul,
Donimalai, and Panna

•    Procurement of Production Mode Sensing
Assembly along with a redundant IBMS Server and
integration with SAP

•    Unified Mine Logistics Management and Surveillance
System (UMLMSS)

•    Establishment of an Integrated Control and Command
Centre (ICCC) and Implementation of CCTV
Surveillance and PA Systems at Bacheli, Kirandul, and
Donimalai Complexes.

•    Development of Digital Twins for OCSL Plants, and

•    Implementation of Smart Metering.

3.    In pursuit of continuous improvement, other digital
solutions such as Vendor Invoice Management System,
E-Measurement Book, File Life Cycle Management, and
integration of SAP with GeM and FOIS with ERP at Kirandul
and Bacheli have been successfully implemented to boost
operational efficiency and transparency.

4.    The Supplier Relationship Management (SRM) system has
been implemented to strengthen interaction with the vendor
ecosystem, encompassing vendor onboarding, online
bidding, evaluation, and order placement.

5.    CSR Software has been deployed to enable physical
progress monitoring of CSR activities with geo-tagged
site images & videos and related information. It facilitates
tracking of project milestones and closures, and supports
detailed analysis based on focus areas such as Education
and Health Care, ensuring effective oversight and data-
driven decision-making.

6.    Dashboard enhancements have further strengthened data
visibility and operational efficiency in key logistics and
dispatch functions. These enhancements include Rake
loading efficiency by using metrics such as gross loading
hours and demurrage, enabling improved turnaround time
of rakes and cost control. Loading operations at railway
sidings managed by third parties in Bacheli and Kirandul
are also tracked to enhance accountability. Moreover, the
dashboard captures party-wise dispatch breakups under
Long-Term Agreements (LTA) and Auctions, Dashboards for
Pellets plant and Diamond project also introduced.

7.    Dedicated dashboard for monitoring of Engineering
Drawing and Documents put in place by integrating with
EDDMS Software.

8. NMDC was honoured with the “Best Digital

Transformation Initiative Award” by M/s QUANTIC.
Additionally, NMDC received the Digital Champions Award
at the India PSE Summit 2025, organized by Express
Computer (Indian Express Group) in Hyderabad.

40.0    COMPUTER & INFORMATION TECHNOLOGY
INITIATIVES

1.    Hospital Management System (HMS) has been
implemented at all the project hospitals of NMDC. It
is integrated with SAP S/4 HANA for HCM, MM and
EHS modules. All the laboratory equipments have been
interfaced with HMS resulting in automation of the entire
process. This has reduced the Turn Around Time of
diagnostics and the test results are sent to the employees
thro’ WhatsApp.

2.    The Network Infrastructure Upgrade under RailTel MOU is
in progress and likely to be completed by 30.06.2025. The
following works have been completed:

•    Core Switches, Distribution switches, Access switches
and Firewalls have been installed at all the locations.

•    OFC backbone under primary path has been
completed. OFC under secondary path is in progress.

•    Wireless Controller, Indoor wireless access points
have been installed.

•    Outdoor Wi-Fi has been implemented at
Kirandul Mines 11B.

3.    IT Policy has been prepared and put up for management
approval. Sandbox and Two Factor authentication has been
implemented. FortiManager and FortiAnalyzer has been
implemented at HO.

4.    Interactive Digital Touch Screens have been installed at
all the floors of NMDC HO which is an initiative towards
paperless office.

5.    Attendance captures thro’ Facial Recognition System has
been made mandatory for all employees.

41.0    OTHER DISCLOSURES

•    Compliance with applicable Secretarial Standards:

The Directors have devised proper systems to ensure
compliance with the provisions of all applicable Secretarial
Standards and that such systems are adequate and
operating effectively.

•    Disclosure under Insolvency and Bankruptcy Code,

2016: During the year, no application was made and
no proceeding is pending under the Insolvency and
Bankruptcy Code, 2016.

• Reporting on valuations done, if any: There was no
requirement for getting valuation done and therefore,
reporting for the same is not applicable.

42.0    REPORT ON MANAGEMENT DISCUSSION AND
ANALYSIS

A Report on Management discussions and Analysis
as required in terms of Regulation 34 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations,

2015 is at Annexure-I.

43.0    REPORT ON CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION, FOREIGN
EXCHANGE EARNINGS AND OUTGO UNDER
THE COMPANIES (ACCOUNTS) RULES, 2014.

A report on Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings and Outgo under
the Companies (Accounts) Rules, 2014 is as Annexure-II

44.0    CORPORATE GOVERNANCE

Report on Corporate Governance is at Annexure-III.

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

As required under the provisions of the Companies Act,
2013, the Annual Return is hosted on the Company’s
website and can be accessed from the link https://www.
nmdc.co.in/investors/financial-details/annual-return.

46.0    BUSINESS RESPONSIBILITY &
SUSTAINABILITY REPORT

In compliance with Regulation 34 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, the Business Responsibility & Sustainability Report
(BRSR) along with Reasonable Assurance carried out by
M/s Bureau Veritas (India) Pvt. Ltd. is at Annexure-IV.

47.0    SECRETARIAL AUDIT REPORT

Secretarial Audit Report in Form No.MR-3 pursuant to
Section 204(1) of the Companies Act, 2013 and Regulation
24A SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 is at Annexure-V.

48.0    GLOBAL COMPACT - COMMUNICATION ON
PROGRESS

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

49.0    STATEMENT CONTAINING SALIENT FEATURES
OF THE FINANCIAL STATEMENT / HIGHLIGHTS
OF PERFORMANCE OF SUBSIDIARIES /
ASSOCIATE COMPANIES / JOINT VENTURES
(FORM AOC-1) IS ENCLOSED TO THE
FINANCIAL STATEMENTS.

50.0    DISCLOSURE OF RELATED PARTY
TRANSACTIONS IN FORM AOC-2 IN TERMS OF
PROVISIONS OF THE COMPANIES ACT, 2013
IS ENCLOSED AT ANNEXURE-VII.

51.0    REPORT ON CSR ACTIVITIES

Report in terms of the Companies (Corporate Social
Responsibility Policy) Rules, 2021 is at Annexure-VIII.

The Report on CSR inter alia, outlines details of CSR
Policy and various CSR initiatives of the company for the
year under review.

52.0    ACKNOWLEDGEMENT

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

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

For and on behalf of the Board of Directors

If. ji.

(AMITAVA MUKHERJEE)

Place : Hyderabad    Chairman and Managing Director

Date : 30.07.2025    DIN: 08265207

1

   Profit Before Tax (PBT) from continuing operations
(before exceptional item) was H 9,298 crore compared
to H 8,295 crore in the previous financial year.

---

Mar 31, 2018

Dear Members,

The Directors are pleased to present the 60th Annual Report on the performance of your Company, together with the Audit Report and Financial Statements for the year ended 31st March 2018 and the Report thereon by the Comptroller and Auditor General of India.

PERFORMANCE HIGHLIGHTS

During the year under review, the Company has recorded turnover of Rs.11,615 crores, achieved Profit Before Tax (PBT) of Rs. 6,180 crores and achieved Profit after Tax (PAT) of Rs.3,806 crores.

The major performance highlights are summarized as under:-

- The company achieved record production of 355.76 LT and sales of 360.75 LT - Highest ever achieved since inception of the Company.

- Turnover for the year under review was Rs.11,615 crores as against Rs. 8,830 crores in the previous financial year 2016-17 - an increase of 32%.

- Profit before tax (PBT) from continuing operations was Rs.6,180 crores compared to Rs. 4,294 crores in the previous financial year 2016-17 - an increase of 44%.

- Profit after tax (PAT) was Rs.3,806 crores compared to Rs. 2,589 crores in the previous financial year 2016-17 - an increase of 47%.

- Net worth of the Company stood at Rs.24,354 crores as on 31.03.2018 - 8.15% higher than Rs. 22,519 crores in the previous financial year 2016-17.

- The Company declared an Interim Dividend of Rs.4.30 per share for FY 2017-18.

- Capital expenditure of Rs.2,346 crore has been incurred during the year under review.

PHYSICAL PERFORMANCE

Production

Product	Achievement			Percentage of change
2016-17		2017-18
Iron Ore (lakh tonnes)	340.05	355.76		4.62%
Diamond (Carats)	35,636	39,394		10.55%
Sponge Iron (Tonnes)	5,474	Nil		-
Pellets (Tonnes)	Nil	58,070		-

SALES OF IRON ORE

Particulars		Physical (in lakh tonnes)				Value (Rs. in crore)
	Achievement			% of change	Achievement		% of change
	2016-17		2017-18		2016-17	2017-18
Domestic	328.92		334.78	1.78%	7,804.15	10,421.00	33.55%
Export through MMTC	27.29		25.97	(-) 4.84%	904.75	1,069.93	18.26%
Total Sales	356.21		360.75	1.27%	8,708.90	11,490.93	31.94%

Other Sales

Products	Achievement
	2016-17	2017-18
a) Diamond
Sales (carats)	25,631	33,175
Value (Rs. in crore)	41.91	35.17
b) Sponge Iron
Sales (tonnes)	8,579	Nil
Value (Rs. in crore)	13.13	Nil
c) Wind Power
Sales (lakh units)	220	191
Value (Rs. in crore)	7.48	6.50

FINANCIAL PERFORMANCE

Operating Results

Parameter Achievement			Percentage of change
	2016-17	2017-18
Profit Before Tax (PBT) (Rs. in crore)	4,294	6,180	43.90%
Profit After Tax (PAT) (Rs. in crore)	2,589	3,806	47.01%
Net Worth (Rs. in crore)	22,519	24,354	8.15%
Book value per share (Rs.)	71.17	76.97	8.15%
Earnings per Share (Rs.)	7.22	12.03	66.62%

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

Profit & Dividend

During the year under review, your Company has earned profit before tax from continuing operations of Rs.6,180 crores on a turnover of Rs.11,615 crores in comparison with previous year’s achievement of Rs. 4,294 crores and Rs. 8,830 crores respectively.

The Company has declared Interim Dividend for FY 2017-18 @ Rs. 4.30 per share in the month of March 2018 involving an outgo of Rs.1,360 crores. The share of Government with equity stake of 72.43% is Rs.985 crores.

Transfer To Reserves

The Company proposed to transfer Rs. 1000 Crore from net profit to General Reserve.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT - Nil

Deposits

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

INTERNAL CONTROL SYSTEMS

Necessary disclosure in respect of Internal Control Systems and their adequacy has been made in Annexure-C to the Independent Auditors’ Report dated 28.05.2018 which forms part of the Annual Report

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

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

Related Party Disclosure

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

STATUTORY AUDITOR’S REPORT

The Audit Report for both Standalone and Consolidated Financial Statements for the FY 2017-18 is unmodified and does not contain any qualification, reservation or adverse remark.

SECRETARIAL AUDIT REPORT

The Secretarial Audit Report for the FY 2017-18 as done by M/s Hanumanta Raju & Co., Company Secretary in whole time practice does not contain any qualification, reservation or adverse remark.

NEW PROJECTS & BUSINESS DIVERSIFICATIONS

In line with the vision plan of augmenting its Production & Evacuation capacity, technology upgradation, diversification & value-added products, NMDC has taken up many ambitious projects. Some of the projects have been completed and others are nearing completion. Action for new projects have been initiated. During the financial year 2017-18, the details of Projects undertaken by NMDC are summarized as under:-

A Completed Projects

1 Crushing Plant & Downhill Conveyor - Kumaraswamy Iron Ore Mine

2 1.2 MTPA Pellet Plant - Donimalai B Ongoing Projects

1 Doubling of KK line between Kirandul to Jagdalpur

2 Doubling of KK line between Jagdalpur to Ambagaon

3 Screening Plant III - Kirandul Complex

4 Additional Screening Line & up gradation of existing conveyors (at Kirandul & Bacheli)

C Projects in pipeline

1 Screening Plant II - Donimalai Complex

2 15 MTPA Slurry Pipeline - Bailadila to Nagarnar

Projects / Schemes for capacity expansion

To augment the production and to improve the quality of product mix from Bailadila Sector, the schemes like SP-III Kirandul, relocating Crushing Plant of Dep.14 & 11/C and Downhill conveyor, additional screening lines in Bacheli & Kirandul, Rapid Wagon Loading System (RWLS) etc are envisaged. Waste mining and increase in evacuation capacity being a major area of focus for enhancing the life of mines, the schemes like beneficiation plant at Bacheli & Kirandul and Slurry pipeline from Bacheli to Nagarnar has also been taken up. In the FY18, the Company has achieved success in terms of completion of Kumaraswamy Iron Ore Project, Pellet Plant in Donimalai Complex. Both these projects were commissioned & PG tests completed and are in operation now.

The upcoming scheme in Donimalai Complex includes a second Screening Plant of 10.0 MTPA capacity for handling the ROM from Donimalai & Kumarswamy mines in addition to the existing Screening Plant. For improving the rake loading capacity in the Donimalai sector an additional Stacking & Loading facility of 7.0 MTPA along with Railway Yard at Ranjitpura is being planned for which Railway consultant is already appointed and TEFR is under finalization. Statutory clearance for 10 MTPA Screening Plant-II is awaited.

Projects / Schemes to enhance evacuation capacity

To augment the evacuation capacity from Bailadila sector, many projects & schemes are taken up like doubling of KK line, Rowghat-Jagdalpur new rail line, Slurry Pipeline etc. Doubling of KK line between Kirandul & Jagdalpur (150.462 km) is executed by Railways as a deposit work and is in advance stage. During the financial year 2017-18, Section 1 between Jagdalpur to Silakjhori, a length of 45.5 km of railway line was completed and opened for traffic. The works in other two sections are also in advanced stages and is expected to be completed by 2018-19.

Further, Doubling of KK line between Jagdalpur & Ambagaon (25 km) is also taken up through Customer funding model agreement. During the financial year 2017-18, Rail line between Jagdalpur to Amagura, a length of 14.3 km of railway line was completed and opened for traffic.

For increasing the rake loading capacity in Kirandul an uniflow system is being planned. This will reduce the rake loading time and turnaround time of rakes. The scheme for this project has been prepared and Railway consultant has been appointed, site survey completed and TEFR is under finalization.

NMDC has taken up an ambitious project of laying Slurry Pipeline from Bailadila to Jagdalpur and further up to Visakhapatnam. The Capacity of the line 15 MTPA and this will be associated with facilities like beneficiation Plant at Kirandul & Bacheli, Pellet Plant at Nagarnar and Vizag. The slurry Pipeline between Bachlei to Nagarnar is being executed by NMDC and from Nagarnar to Vizag is envisaged to be executed in SPV or BOO mode.

The statutory clearances for phase-I from Bacheli to Nagarnar in respect of Ore Processing plant (OPP), Bacheli and Pellet Plant, Nagarnar have been received. The activities for taking a corridor of land for Right of Use (ROU) for laying the Slurry pipe line is in progress.

Solar Power Projects

With the green energy initiative of Govt. of India focusing more on renewable energies, NMDC has taken up setting up of Solar Power projects (Rooftop) at its Office premises. This includes

- 30 KW rooftop solar power generation at Head Office.

- 1 MW rooftop solar power generation at production units of NMDC.

The rooftop solar power unit at Head office has been commissioned and is in operation since April 2017. Tenders for 1 MW solar power plant is under finalization.

Steel Plant Project at Nagarnar, Chhattisgarh

The progress of construction activities of steel plant in the year 2017-18 is noticeable in various fronts. At present, progress of civil work, structural and equipment erection are in advance stage and progressing in full swing.

The capex achievement w.r.t. steel plant during the financial year 2017-18 is Rs. 1809 Cr. and so far, expenditure incurred for construction of steel plant is about Rs.13,875 Cr. The value of work awarded during the financial year 2017-18 was Rs.280 Cr.

The steel plant project is getting ready for its commissioning of various units progressively, for which operational power supply system is already energized during first week March’ 2018. In order to facilitate the commissioning activities of steel plant, procurement action for initial requirement of various raw materials, spares, consumables, etc., are also under process. NMDC will put its all efforts to roll the first HR coil by March 2019 .

Promoting New Steel Plants through SPVs

NMDC is promoting Steel SPVs for setting up new steel plants in the state of Karnataka and Jharkhand. This initiative is under a collaborative approach of Ministry of Steel, GoI and respective State Government. The Steel SPVs shall acquire land, seek water and power allocation and iron ore linkage for setting up the Steel plant and then invite a strategic partner to develop and construct the Steel Plant.

The Steel SPV in Jharkhand has selected the site and has applied for allocation of land, water and power. In the state of Karnataka, NMDC has acquired 2800 acres of land through Karnataka Industrial Area Development Board (KIADB). NMDC has also sought for iron ore allocation in the state of Jharkhand and Karnataka for ore linkage to the steel SPVs. NMDC is planning to issue an EOI for a strategic partner for Karnataka steel SPV, after allocation of iron ore linkage. However, because of change in the MMDR Act with reference to allocation of mineral block through auction system, concerned State Govt. where SPVs are planned are reluctant to allocate mineral block directly to SPVs.

Implementation of Mine Transport Surveillance System:-

The implementation of Mine Transport Surveillance System (MTSS- KHADAN-CHOUKSI) at Donimalai Complex (Donimalai, Kumarswamy and Pellet Plant) has been completed.

The system has 7 integrated modules for different purposes:

1. Weighbridge automation system,

2. GPS-RFID based tracking,

3. Mine periphery surveillance,

4. Wireless networking,

5. CCTV surveillance,

6. Proximity warning device, and

7. Centralized monitoring & surveillance.

The MTSS is useful for improving mine safety & productivity.

OVERSEAS PROJECTS / NMDC GLOBAL

Legacy Iron Ore, Perth, Australia

Legacy Iron Ore Ltd is an ASX listed entity based in Perth, Australia, with a 78.56% equity stake in the Company. Legacy is carrying out exploration in its 19 exploration tenements in Western Australia in Iron Ore, Gold and base metals. Legacy also applied for allocation of tenements for tungsten in Western Australia. Legacy has 60% interest in Mt Bevan Iron Ore Project which has a JORC compliant Indicated and Inferred resource of 1.17 billion tonnes magnetite and discovered existence of Nickel in the northern side of Mount Bevan. Presently, Legacy is concentrating in exploration of Gold in Mount Celia where good occurrence of Gold is observed.

International Coal Ventures Pvt. Ltd. (ICVL), Mozambique

ICVL acquired a coking / thermal coal mine in Mozambique in 2014 and operation of the same was taken over by ICVL. ICVL undertook strategic review of Benga operations and re-started the mining operations with new contracts from Nov’2017. Benga Mine is presently operational and has achieved 100% of targeted ROM in May 2018.

Venture into Strategic Raw materials

Tungsten metal is of strategic importance due to its essential requirement in defence and aerospace sector and currently India meets its entire requirement through imports. NMDC has entered into MoUs with both MIDHANI and DMRL to explore tungsten investment opportunities in India and abroad. Presently NMDC is scouting for acquisition of tungsten assets in India and abroad as per requirement of Defence & Aerospace sector.

NMDC has also signed MOU with IREL for scouting of rare earth minerals in India and abroad.

Leases for minerals

Iron Ore

In Chhattisgarh

NMDC-CMDC Ltd., is a subsidiary of NMDC Ltd. with equity share holding of NMDC Ltd. and CMDC Ltd. in the ratio of 51:49. This subsidiary Company has been formed to develop, mine, process, raise and sell iron ore from Deposit No.13 & Deposit No.4 at Bailadila in South Bastar Dantewada, Chhattisgarh. The present Mining Lease Grant status of both the deposits are as follows:

Bailadila Iron Ore Deposit No.13

Mining lease was granted for Bailadila Iron Ore Dep-13 over an area of 413.745 Ha, in favour of NMDC Ltd. for 50 Years. Performance security has been deposited with the State Government in the form of a bank guarantee and Mine Development and Production Agreement was signed on 10.01.2017. The lease deed was executed and registered on 10.01.2017 over an area of 315.813 Ha. As per ML Grant Order No.F3-84/95/12 dated 07.01.2017 Mining lease has been transferred in favor of NMDC-CMDC Limited (NCL) on 04.12.2017. Intimation on transfer of Mining Lease in Form-N under Rule 50 of MCDR, 2017 has been submitted to the Regional Controller of Mines, IBM, Raipur on 29.12.2017. Intimation on transfer of records to transferee regarding Mining Lease under Rule 52 of MCDR, 2017 has been submitted to the Secretary, Mineral Resource Department, Govt. of Chhattisgarh on 29.12.2017. Transfer of EC and FC in favour of NMDC-CMDC Ltd. are in process. Modified mine plan has been prepared and will be submitted to IBM for approval. 3D Ore Body Modeling & resource estimation has been completed by using Surpac mine planning software and Geo-statistical tools of in WGS 84 datum. Action has been initiated for appointment of MDO. Tender has been floated and offers are under evaluation.

Bailadila Iron Ore Deposit No.4

M/s NMDC - CMDC Ltd. (NCL) has submitted the proposal to Secretary, MRD, Govt. of Chhattisgarh through DMG, Govt. of Chhattisgarh on 26.09.2017 for reservation of Bailadila Deposit No. 4 (646.597 ha) in favor of M/s. NCL under section 17A (2A) of MM (D&R) Amendment Act, 2015 for grant of ML. MRD, Govt. Chhattisgarh forwarded application to Ministry of Mines, GoI. The matter is being pursued with MoM, GoI

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.

In Jharkhand

Sasangada:

A JV Company (NMDC 60% & JSMDC 40%), Jharkhand National Mineral Development Corporation Limited (JNMDC) has been incorporated, with its registered office at Ranchi. DMG, Government of Jharkhand had granted PL for iron ore & Manganese in Sasangada NE area in favor of JNMDC Limited for a period of 3 years. M/s JNMDC applied for renewal of PL for a period of two years. Detailed Geological mapping and topographical survey have been completed. Lol has been issued for carrying out exploratory drilling in PL area. Forest Clearance application for conducting drilling and other exploration works was submitted.

FAC of MoEF & CC recommended for Forest Clearance. Drilling will be commenced after grant of renewal of PL.

Other PL/ML Applications:

Your Company is pursuing for reservation for Ghatkuri Iron ore area in West Singhbhum District. JNMDC (a JV company of NMDC & JSMDC) submitted a proposal to the Secretary, Department of Industries Mines & Geology, Govt. of Jharkhand, for reservation of Ghatkuri Iron ore deposit, West Singhbum District, Jharkhand, under Section 17A(2A) of MM(D&R) Amendment Act 2015 for grant of Prospecting and Mining operation to provide iron ore linkage to upcoming Jharkhand Kolhan Steel Limited. The matter is being pursued with Govt. of Jharkhand for reserving Ghatkuri iron Ore deposit in favor of JNMDC.

In Karnataka

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

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

In Odisha

Your Company is pursuing for reservation for Mankadnacha , Malangtoli, Khandadhar, Rakma iron ore deposits and Panduliposi Iron Ore & Manganese Deposit.

In Madhya Pradesh

Iron Ore Prospective Blocks:

Tripartite MoU among GoMP (MRD, through DGM), MPSMCL & NMDC was signed for geological and geophysical exploration in various Districts of M.P.

Govt. of Madhya Pradesh issued Gazette Notifications of Sidhi-Singrauli, Dhuarra and Sagar Iron Ore prospective blocks, which are applied under MoU for exploration and subsequent reservation.

Sidhi-Singrauli Block - Remote Sensing Studies has been completed in collaboration with NRSC. Five Iron ore potential areas have been identified in Sidhi and Singrauli Districts namely Lohkhanti, Chitrangi North, Chitrangi South, Katri Kadi and Mauhariya Blocks. Geological mapping has been completed in Lokhanti Block and Katrikadi blocks. Ground Geophysical (Magnetic & VLF-EM) data has been acquired and interpreted for Lohkhanti area. The exploration work is under progress.

Dhaurra block - The team of NMDC Geologists visited the block and geological traverses were taken and Ground Geophysical Survey (Magnetic survey) has been completed. Anomaly map has been prepared depicting the iron ore formation. Geological mapping at 1:10000 scale has been completed and 100 chip/soil samples have been collected in grid pattern and along the iron ore formation.

In Andhra Pradesh

Your Company has applied for Ramgiri prospective block for Iron Ore in Anantapur district. NMDC has requested State Govt. to reserve this block in favour of NMDC under 17A (2A) of MM (D&R) Amendment Act, 2015.

Diamond

In Andhra Pradesh

Your Company is pursuing for grant of 3 PLs falling in the Forest area (Renewal application submitted) in Kalyandurg area, Anantapur District. FAC recommended for forest permission for drilling. NMDC requested Director, DMG for grant of renewal of PL’s in favor of NMDC. Once the Govt. of Andhra Pradesh grant the renewal of PL’s in favor of NMDC, exploration will be commenced in 3 PL areas.

In Madhya Pradesh Tikamgarh PL’s:

Based on RP works, 5 PL applications namely Acharra, Dargany Kalan, Jalandarpur, Sunrai Khas & Birorakhet were submitted to Mining Officer, Tikamgarh. All 5PLs (Dargany Kalan, Jalandharpur, Birorakhet Sunrai Khas and Acharra) for Diamond in Tikamgarh District in Madhya Pradesh, were forwarded by MP Govt. to MoM, GoI, New Delhi. The MoM, New Delhi requested Secretary, MRD, GOMP, Controller General of IBM and DG,GSI for their comments for grant of PL’s in favour of NMDC. MRD, Secretary sent comments for grant of the above PL’s in favor of NMDC. Matter is being pursed with MoM, New Delhi for prior grant. Your company will start detailed exploration in these areas after grant of PL’s.

Large area Diamond Prospective Blocks:

Your company has applied for three large area Prospective Blocks namely Damoh Block, Chhattarpur Panna Block-1 and Chhattarpur Panna Block-2 for diamond exploration. Tripartite MoU among GoMP (MRD, through DGM) MPSMCL & NMDC was signed for geological and geophysical exploration for various Districts of M.P. Govt. of Madhya Pradesh issued Gazette Notifications for above large prospective blocks, which are applied under MoU for exploration and subsequent reservation.

Remote Sensing Studies has been completed in collaboration with NRSC. Collected 815 Number of stream sediment samples from Chhattarpur Panna Block-1, & 2 and Damoh Block till April. 2018. Collection of Stream Sediment Samples is in progress. 206 Number of Stream Sediment samples have been transferred to Kalyandurg, A.P. for processing. Processing for heavy minerals separation is in progress. 24 nos of samples have been processed for Sorting of heavy indicator minerals using microscope.

In 16 prospective areas of Chhattarpur Panna Block-1 & 2 and Damoh blocks grids have been laid for undertaking VLF-EM & Ground Magnetic survey.

Ground Control Point fixed in Chhattarpur Panna Block-1 & 2 and Damoh blocks for Ground Geophysical Survey. Ground Geophysical Survey (Magnetic and VLF-EM Survey) is under progress.

Panna Prospective Blocks:

Tripartite MoU among GoMP (MRD, through DGM) MPSMCL & NMDC was signed for geological and geophysical exploration for various Districts of M.P.

Govt. of Madhya Pradesh issued Gazette Notifications for Karmatiya, Lakshmipur, Pali, Khirwa South and Khirwa West prospective blocks, which are applied under MoU for exploration and subsequent reservation. Exploration will be commenced in 5 Prospective Blocks.

Additional 12 Diamond Prospective Blocks:

Your company has applied for 12 additional Diamond Prospective Blocks in Panna, Damoh, Sagar and Chhatarpur districts for exploration under Section 4(1) of MMDR 1957. GoMP granted permission for carrying out exploration works. Forest permission has been obtained for Reconnaissance Survey. Ground Geophysical survey (Magnetic and VLF-EM) is under progress.

Prospective block for various minerals:

Your company has applied for prospecting of various minerals (Diamond, Gold, PGE, Nickel, etc.) in Jabalpur Katni Block (563 Sq. Km.). Tripartite MoU among GoMP (MRD, through DGM) MPSMCL & NMDC was signed for geological and geophysical exploration for various Districts of M.P. Govt. of Madhya Pradesh issued Gazette Notifications for prospective block, which is applied under MoU for exploration and subsequent reservation Preliminary exploration started.

In Chhattisgarh

Baloda - Belmundi Diamond Block - Your company has submitted the proposal to the Secretary, MRD, Govt. of Chhattisgarh vide letter dated 12.12.2017 for Baloda -Belmundi Diamond Block over an area of 156.80 sq km in Saraipali Tehsil, Mahasamund Dist. for reservation under section 17(A) (2A) of MM (D&R) Amendment Act, 2015 for Diamond for Prospecting and Exploitation. The matter is being pursued with Govt. of Chhattisgarh

Gold: In Rajasthan

Bhukia Gold Block - Your company has submitted the proposal to the Director of Mines & Geology, Govt. of Rajasthan vide letter dated 08.11.2017 for Bhukia Gold Block for over an area of 24 sq km in Banswara Dist. for reservation under section 17(A) (2A) of MM (D&R) Amendment Act, 2015 for Gold for Prospecting and Exploitation. The matter is being pursued with Govt. of Rajasthan.

Tungsten: In Maharashtra

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

Coal

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

As per the Section-5 of the Coal Mines (Special Provision) Act, 2015, Your Company is trying to get Coking & Non Coking Coal Blocks for captive and commercial mining through auction or allocation.

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

Your company has been allocated 5 blocks (2 iron ore blocks in Jharkhand & Maharashtra and 3 Gold blocks 2 in Karnataka & 1 in M.P.) by Ministry of Mines, GoI for G4 level exploration. Exploration work is under progress.

The above expansion plan of NMDC contemplates the high prospects of the growth of the Indian Steel Industry in the coming years with several factors indicating the same, such as, the thrust of the government on infrastructure development, growing urbanization, extensive plans of rail network expansion, improving power generation, etc. Low per capita steel consumption in the country at 63 kg/t vis-a-vis the world average of 208 kg/t also indicate the huge growth potential the Indian steel industry has.

In the financial year 2017-18, the Company has achieved success in terms of starting of construction activity of the fifth screening line in Screening Plant II and Rapid Wagon Loading System I in Kirandul Complex to increase the production and mechanised loading capacity. The clearances for the construction of the fifth screening line in Deposit 5 Screening Plant in Bacheli Complex has been obtained and the work is going to be started soon.

To augment the evacuation capacity from Bailadila sector, many projects & schemes are taken up like doubling of KK line, Rowghat-Jagdalpur line, Slurry Pipeline etc. Doubling of KK line between Kirandul and Jagdhalpur, 150.46 Kms is being executed by Railways in three sections. In 2017-18, the entire Section I Jagdhalpur to Silakjhori 45.5 km of the railway line was completed and was opened for traffic. The works in the other two sections Kirandul - Gidam and Gidam - Silakjhori are also in advanced stages and is expected to be completed in 2019. The completion of this project will augment the evacuation capacity of Bailadila sector through Railway line from 28 MTPA to 40 MTPA. NMDC has taken up an ambitious project of laying Slurry Pipeline from Bailadila to Jagdalpur and further up to Visakhapatnam. The capacity of the slurry pipeline is 15 MTPA and this will be associated with facilities like beneficiation Plant at Kirandul & Bacheli, Pellet Plant at Nagarnar and Vizag. The Slurry Pipeline between Bacheli to Nagarnar is being executed by NMDC and from Nagarnar to Vizag is envisaged to be executed in SPV mode. The works for Bailadila to Jagdalpur segment (140 Km) has been taken up and site levelling work for 2 MTPA pellet plant at Nagarnar has been completed and for 2 MTPA beneficiation plant at Bacheli is in progress.

Besides the expansion plan, the SMP also envisaged introduction of systemic interventions in six strategic transformation areas - Business, Operations, Sustainability, Capital Projects, Human Resource and IT. by Several initiatives in this respect are under implementation such as, License-to-Operate computer-based model (in which all the statutory approvals will be brought under one umbrella); installation of Mines Transport Surveillance System (MTSS)- Weighbridge automation/ Virtual Fencing/ Geo Fencing/ GPS/ Proximity Warning Device for dumpers/ CCTV Surveillance/ Wireless Networking at Donimalai Iron Ore Mine; driving cost reduction and other business-improvement initiatives, publishing of 1st sustainability report for 2016-17 etc.

SUBSIDIARY / ASSOCIATE / JOINT VENTURE COMPANIES MONITORING FRAMEWORK

a) NMDC has 7 subsidiaries and stake in 5 Associate and 5 JV Companies. The names of these Companies and percentage of NMDC stake in these companies are as follows:

* Under closure.

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

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

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

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

Notes:

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

2) A step down Subsidiary Company of NMDC-SAIL Ltd. by the name Chhattisgarh Mining Ventures Ltd. was incorporated on 08/11/2016.

ENVIRONMENT MANAGEMENT:

The Company has obtained Environmental Clearance for capacity expansion of Bailadila Iron Ore Mine, Deposit-10 from existing 4.2 to 6.0 MTPA on 07/07/2017. The company has also obtained all statutory clearances such as Environmental Clearance (27/04/2017), Final Forest Clearance (27/09/2017), Consent For Establishment (17/10/2017) for setting up of 4 MTPA Iron Ore Beneficiation Plant at Bacheli. The company also obtained stage-1 Forest clearance for diversion of 83.831 Ha Forest land for proposed slurry pipeline for transportation of iron ore concentrate from Bailadila to Nagarnar covering a distance of 139 Km. The company also obtained stage-1 Forest clearances under F.C. Act, 1980 for construction of road over 2.733 Ha Forest land from Loading Plant at Bacheli to main road and approach road for Kumaraswamy iron ore mine over 5.71 Ha from MOEFCC on 12/02/2018 and 27/09/2017 respectively. The valid operating consents are available for all projects under Air and Water Acts. The company has submitted applications in respect of 5 mining leases of Bailadila complex for obtaining forest clearances for renewal of Mining leases beyond 31/03/2020 for further period of 20 years.

Donimalai, Bailadila Deposit-5, 10, 14 and 11C obtained FIVE Star rating from IBM, Ministry of Mines. ICFRE, Dehradun has been engaged for preparation of EMP and R&R plans for 3 mining leases of Kirandul complex. The Company has participated in Chhattisgarh Hariyar plantation programme during the year 2017-18 and contributed Rs.25 Cr to Hariyar Kosh for undertaking block plantation in the State of Chhattisgarh. The Company is undertaking all environmental pollution control works such as de-silting of check dams / check bunds, tailing dams, construction of buttress walls at toe of waste dumps and geo-coir matting on waste rock dumps for stabilization of dumps. The Company is organizing monitoring studies covering all environmental parameters by recognized laboratories. The studies indicated that all environmental parameters are found to be well within the limits.

Sustainable Development Performance

The construction of STP with SBR technology is under progress at Kirandul (3 MLD) and Donimalai (3 MLD). Carbon foot print studies were conducted for FY 201718 and Green House Gas emissions disclosed in Carbon disclosure project.

First Sustainability Report of NMDC has been prepared as per Global Reporting Initiative (GRI) G4 framework, ushering in a new resolve in the organization to take Sustainable Development to greater heights by leveraging the decades of relentless efforts undertaken. the report is available on https://www.nmdc.co.in/ Docs/NMDC-Sustainability/NMDC-Sustainability-Report-2017.pdf. The Sustainability Report in the Diamond Jubilee Year is dedicated to the tireless efforts of our predecessors in the journey of triple bottom line excellence in the past and a reinforcement of our commitment to achieving greater heights in future to come.

SAFETY

Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectors are nominated / appointed for mining operations, mechanical and electrical installations as per statutory requirements.

Mine Level Tripartite Safety Committee Meetings 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.

28^th Corporate Level Tripartite Safety Committee Meeting of Bailadila Iron Ore Mines / Diamond Mining Project and Donimalai Iron Ore Mine / Kumarswamy Iron Ore Mine was conducted on 23.10.2017.

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 2017-18 is 0.43 and 0.20 for the year 2016-17. Integrated Management System (IMS) Comprising of Quality Management System (QMS) - ISO 9001:2008; Environmental Management System (EMS) - ISO 14001:2004; Occupational Health & Safety Management System (OHSMS) - OHSAS 18001:2007 & Social Accountability - SA 8000:2014 Certification Standards.

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

Upgradation of ISO 9001:2008 (QMS) and ISO 14001:2004 (EMS) to ISO 9001:2015 and ISO 14001:2015 are in progress.

OHS Activities:

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

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

Safety Management System:

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

IMPLEMENTATION OF INTEGRITY PACT:

As per the guidelines, NMDC has entered into an agreement with Transparency International in

implementation of Integrity Pact. Tenders of value Rs.10 crores and above for procurements & Rs.20 crores and above for contracts are covered under Integrity Pact. Due care is taken to see the guidelines in the Integrity Pact are followed strictly.

Transparency in procurements handled

In order to enhance transparency in procurements & for increasing competitiveness, the company took following initiatives :-

- e-Procurement:

- All procurements of value above Rs.2 lakh are tendered through e-mode at HO & Projects. Reverse e-auctions are conducted for high value spares & consumables, wherever possible,.

- Broad basing of vendors achieved for high value items viz. Milled Ferro Silicon, Crusher Spares, Under Carriage parts of Excavators, TCRR bits which resulted in substantial cost savings.

- GeM Portal: Procurement through GeM portal as per the guidelines of GOI initiated at all units.

- CPP Portal: All procurement tenders (including Single tender & Proprietary) are placed in the CPP portal inviting offers from other interested parties to expand vendor participation and obtain competitive rates.

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 and is endowed with state of art laboratory equipment to analyse optimum use of minerals. The lab equipment are WD-XRF, ICP-AES, GFAAS, SEM, CS, TGA, ring shear tester, dry & wet abrasion tester, automatic mineral analyzer, sink-float analysis, petrological / stereo microscope, density tester, batch & pilot plant facilities for mineral processing, agglomeration etc. For further details reference may be made to Annexure-II attached to the Directors’ Report.

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.

IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

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

A new course devised by Govt. of India “Hindi Parangat” was started at Hindi Training Centre of Head Office to make Officers and employees work in Hindi efficiently. Two batches of employees have already completed the course and third batch is under training. Hindi Workshops were conducted in every quarter at Head Office and all the Projects/Units. Training in “Hindi Unicode” was imparted to work in Hindi on computers. Regular classes were held in HO premises with the help of Hindi Teaching Scheme of Govt. of India to impart Hindi Stenography training to all the English Stenographers.

Incentive Schemes for writing noting, letters, Registers in Hindi and giving dictation in Hindi were implemented throughout the year. Hindi Fortnight was celebrated. Various Hindi competitions were conducted and prizes distributed to the participants. To promote use of Hindi, “Monthly Hindi Competitions” were also conducted. Meetings of Official Language Implementation Committees were held in every quarter at Head Office and all the Projects. To monitor use of Rajbhasha and suggest measures to augment the same, inspections and Desk trainings programs were conducted at various projects and units. Rajbhasha contact programs were held every month at various departments of HO by Officers of Rajbhasha Department and desk training in Hindi was imparted during such programs.

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

All India Seminar of Rajbhasha Officers of all the undertakings of Ministry of Steel, other PSUs situated in Hyderabad and of various projects and offices of NMDC was held at Head Office. House journal dedicated to Official language “Khanij Bharati” was published. Various Hindi/Bilingual magazines, news magazines were also published from Head Office and Projects viz, Sarjana, Baila Samachar, Bacheli Samachar, Doni Samachar, She News etc. “NMDC Rajbhasha Shield” was awarded to Projects and Offices for excellent implementation of Rajbhasha.

NMDC was awarded “Rajbhasha Samman” by Ministry Of Steel, Govt. of India for excellent implementation of Rajbhasha for the Year 2016-17. NMDC was also conferred with First Prize-”Rajbhasha Shield” by Town Official Language Implementation Committee (U), Hyderabad-Secunderabad in mid-sized category for outstanding implementation of Rajbhasha during 2016-17. NMDC’s Hindi Magazine “Khanij Bharati” was awarded “Best Magazine Award” among all the PSUs of Hyderabad-Secunderabad. “Khanij Bharati” was also awarded “Special Jury Award” by Public Relations Society of India, Hyderabad Chapter.

DETAILS REQUIRED TO BE FURNISHED IN TERMS OF MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED).

During the year 2017-18, NMDC has achieved the prescribed norms of percentage procurements of MSEs and MSE SC/ST i.e. 20 & 4% respectively.

The following are the details:

Sl.No.	Description	Year 2017-18 (1st Apr.’17 to 31st Mar.’18)
I	Total Annual procurement (in value) (excluding NISP)	Rs. 35935.34 Lakhs
I(A)	Total Annual procurement after deducting Exclusions	Rs. 10368.15 Lakhs
II	Total Value of Goods & Services procured from MSEs (including MSEs owned by SC/ST Entrepreneurs)	Rs. 3406.53 Lakhs
III	Total Value of Goods & Services procured from only MSEs owned by SC/ ST Entrepreneurs	Rs. 477.87 Lakhs
IV	% of Procurement from MSEs(including MSEs owned by SC/ST Entrepreneurs) out of total procurement at Sl No.I(A)	32.86%
V	% of Procurement from MSEs owned by SC/ST Entrepreneurs out of Total MSE procurement at Sl No.II	4.61%
VI	Total number of Vendor Development Programmes for MSEs	19

MANPOWER

Employee-Employer relations

The overall industrial relations situation was peaceful and cordial during the year. There was no strike/lockout against the Company’s policies affecting production and productivity.

Scheduled Castes & Scheduled Tribes

2 candidates belonging to Scheduled Caste and 1 candidate belonging to Scheduled Tribes were appointed in the year 2017 against 17 posts filled by direct recruitment.

Strength of SCs & STs as on 31^stMarch 2018

1.	Total number of employees =	5382
2.	Scheduled Castes amongst them =	917
3.	Scheduled Tribes amongst them =	1163
4.	Total SCs and STs =	2080
5.	Physically challenged employees =	99

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

NIL

Staff Welfare activities

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

Promotion of Sports

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

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

One complaint was received during the financial year 2017-18. Departmental Enquiry is underway.

HUMAN RESOURCES DEVELOPMENT

NMDC Limited has consistently fostered a culture that rewards continuous learning, collaboration and talent for the organization to be future-ready and to meet the challenges posed by ever- changing market realities.

Not only do we attract the best, but in order to continue to grow and thrive in the competitive marketplace, we have developed a strong culture of learning — where executives and workmen are supported and encouraged to constantly hone and build their skills and competencies.

By combining formal learning with vigorous on-the-job development, coaching and feedback, Executives and Workmen have improved their performance and advanced their careers in significant ways. This culture of learning keeps us relevant, agile and ahead of the competition.

Corporate HRD is a critical part of creating this culture of learning. The curriculum offered, accessed through the classroom, was custom designed to develop the skills to succeed. It is a vital strategic resource for NMDC’s future and its human capital.

Capability Building Programmes:

NMDC’s HRD Team has crafted initiatives that include core programmes straddling various dimensions of Leadership, Capability Enhancement and Skill(s) Development along with customized programmes that address diverse capability-building needs at various levels of the organization. These programmes cover not just functional competencies but behavioral inputs as well, to ensure comprehensive development of our human resources. Training is delivered both internally and via external bodies to meet the specific requirements of roles or to target professional development. Such training ensures that employees are aware of their personal and Company obligations related to their workplace, safety and environment standards, as well as industry and international standards. Corporate HRD has Organized 22 Nos of Customised In House Training Programmes covering 584

Executives during 2017-18, 177 Nos of External Training Programmes covering 505 executives on various subjects, 20 Nos of Executives were sent abroad for Foreign Training Programmes / AMP.

Leadership Development:

- . To develop leaders at various levels of Management Cadre, 98 executives of different level have undergone one week long training such as Advanced Leadership Programme and Advanced Management Programme in the centers of excellence like IIM, Raipur, ISB Hyderabad and ASCI Hyderabad which is more than 5% of executives.

- . To conduct a progressive intervention for creating a sustainable leadership pipeline at Mid-Level Managerial cadre through “High Potential Executive Programme (HI-PO) for AGMs/DGMs. Identified 40 Hi-potential executives out of 258 in the level of AGM & DGM which is a part of Bhavishya Nirman initiative and trained them in different phases to groom them as future leaders. They took up specific projects within their area as a part of this training, which was then presented to top management. The identified executives completed this Programme with Action Learning Projects, 10 days Class Room Programme under the guidance of senior executives as coaches.

-. With an objective to align the efforts of senior management Representatives and the Senior Union Representatives in NMDC Limited towards meeting our company’s goals in collaborative approach and equipping them effectively to face the future challenges together, we have started initiative of HR Conclave (AAROH) in NMDC Limited in 2014 . As a sequel, Corporate HRD organized a strategic Orientation Workshop (HR - Conclave) for Management and Trade Union Representatives on 4th & 5th April 2017 at Kodaikanal.

-. A Learning Intervention of one week duration on “Leadership”, “Change Management” and “Strategic Thinking” were organized from 3rd to 7th July 2018 at ISB Hyderabad covering 24 Nos. of NMDC Top Management Executives

Knowledge Management Framework:

Knowledge Management Culture at NMDC shall be viewed as a major contributor to build intellectual capital in NMDC encompassing free flow of knowledge across all locations it operates in. The basis for Knowledge Management (KM) initiative and process design is to consciously identify what knowledge is critical to NMDC, what knowledge already exists, what still needs to be known, where to get this knowledge from and how efficiently and effectively this knowledge is put to use to meet NMDC goals and challenges. The initiatives reinforce conscious learning and improvement philosophy through collaborative approach to knowledge sharing. To develop & implementation of Knowledge Management Framework across the Organization a cross Functional Committee has been constituted to develop a frame work on Knowledge Management to be implemented in our organization which is identified as one of the risks in the Area of Human Resources. The committee members have finalized a Draft Report on Knowledge Management frame work with concrete Short term and long term plan.

Employee Engagement Initiatives for Young Executives:

To develop a sense of camaraderie amongst the Young Executives at NMDC who are from across the Projects/Units/Regional Offices, ‘You Thrive’ - A unique Engagement Initiative for Young Executives has been planned at NMDC. A Policy prepared on ‘You Thrive’, for young executives below 35 years age has been communicated to all projects. ‘You Thrive’ has been launched formally in all Projects. Major Projects have started action on this in constituting committee with young executives as members. Inter-Project competitions on Quiz & Case studies are planned in May-June, 2018 at Hyderabad after completion of the same in Projects by end of April 2018.

SANDHAAN - Open Forum: Corporate HRD is continuing “Sandhaan - An Open Forum” programme which is an essential element for developing Two Way Communication within the Organization. Corporate HRD has conducted one workshop on “Sandhaan - A Open Forum” in DIOM, Donimalai.

Strengthening of Quality Circles: To strengthen the Quality Circles Movement, Corporate HRD has given more thrust on Quality Circles activities by adding 5% more QCs this year. 48 Numbers of Quality Circles were formulated, out of which 46 Nos of QCs participated in CCQC. 39 Nos of Quality circles won Gold Awards and 7 numbers of QCs won Silver Awards.20 Nos QCs participated in NCQC.

REWARDS & RECOGNITION FOR HRD INITIATIVES (2017-18)

- NMDC was conferred Best Supporting Organization Award in Quality Movement during 31^st Annual Chapter Convention held during 11-12 Sep 2017 in Hyderabad.

- NMDC limited was conferred with Platinum Award from Green Tech Foundation New Delhi for “Training Excellence -2017” for Customizing and Excelling in its Innovative interventions in 7^th Annual Green Tech HR Conference in Oct 2017.

- NMDC Was Conferred with Best HR Practices Award & Merit Certificate by NIPM, Kolkatta for BEST HR practices being implemented in NMDC Limited.

- ISTD, New Delhi conferred Certificate of Merit to NMDC limited, Hyderabad for Innovative Training Practices 2016-17 adopted and Implemented in NMDC for achieving business Excellence on 17th June 2017 at SCOPE complex, New Delhi

VIGILANCE

NMDC Vigilance Department guides and facilitates impartial, fair and transparent decision making and gives priority to preventive vigilance, with proactive measures. Department had taken several initiatives during the year. Emphasis was laid on adequate checks and balances in the form of well-defined systems and procedures. Various programmes were conducted for awareness on vigilance matters for the employees of the Corporation. The vigilance functionaries at the projects have conducted regular training classes for the employees on the vigilance matters. Executives of Vigilance Department were nominated for training / workshops being organized in India.

Vigilance Department in NMDC is certified under ISO 9001:2008 conforming to the Quality Management System. Surveillance Audit of Vigilance Department has been conducted by M/s. Integrated Quality Certification Pvt. Limited on 30.01.2018 and recommended for Certification which is valid up to 14.09.2018.

During the year (Apr, 2017 - March, 2018) 94 surprise checks, 104 regular inspections and 5 CTE type inspections were conducted.

During the period, 51 grievances were addressed in the CPGRAMS Portal. Complaints received were taken up for investigation and necessary disciplinary action wherever required was recommended.

Apart from these, the thrust area studies were conducted on following activities:-

1. Study of Job Rotation - Sensitive Posts.

2. Study of Procurement of Medicines

3. Study of Power Consumption in all units

As part of implementation of “Leveraging of Technology for transparency” in all the transactions, the initiatives/system improvements studies/suggestions/ recommendations made during the period are as below:-

1. On line Vigilance clearance system is has been implemented since July 2017 for executives below Board level.

2. On line submission of certificate regarding award of contracts on nomination basis has been implemented since Feb 2018.

3. Electronic complaint handling is deployed and a completely automated IT enabled module on investigation and subsequent action is being initiated.

4. Based on study and consequent suggestions from Vigilance Department, Surveillance system to monitor production and despatches of Iron ore produced is automated in Kumaraswamy and Donimalai Projects.

5. Based on study of estate matters by Vigilance department, steps for strengthening estate matters were initiated. Process of engaging domain experts is also going on.

6. Based on study of Handling/sale of Diamond by Vigilance, SOPs was forwarded and sub committee also approved it.

7. Based on suggestions from Vigilance Department, provisions for making tendering process more transparent and accountable were made in Contracts Manual.

8. Based on study regarding deployment of hired vehicle at Kirandul by Project Vigilance, as a part of system improvement a circular was issued

by the project to implement the suggestions of deploying of hired vehicle by following tendering system.

9. Integrity Index Development Project: Integrity Index Development Project initiated by CVC was taken up whole heartedly by the Organization. Integrity Index has been envisaged as a tool to facilitate internal assessment and improve performance. Considering it an ongoing activity a Senior Management Official has been nominated as IID Coordinator. Active all round participation in time bound manner by sharing necessary inputs and suggestions from time to time, as required by the consultant was done.

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 is entered into 145 contracts with a value of Rs. 21,115.15 crores. As such, more than 90% of the total value of the contracts is covered under Integrity Pact. In addition, procurements through e-procurement and sales through are in place.

The Vigilance Awareness Week 2017 was celebrated from 30.10.2017 to 04.11.2017. On the inaugural day administration of pledge to all the employees at Head Office and Units of NMDC at - Kirandul, Bacheli, Donimalai, Panna, NISP, Nagarnar, Sponge Iron Unit and Regional Offices was done. The theme for this year was “My Vision-Corruption Free India”.

To create awareness among the employees and Vendors/Contractors, facility to take Integrity Pledge online was created by sending SMS and voice messages. NMDC group mobile caller tone was changed during the Vigilance Awareness Week with message to spread vigilance awareness. A Season’s Greeting Card was made with useful information related to Vigilance, Integrity pledge etc. and sent to all the employees. Doordarshan Yadagiri telecast live interview with CVO on 01.11.2017 in connection with Vigilance Awareness Week. Also brief on the importance of the Vigilance Awareness Week and Week-long activities at NMDC aired through All India Radio, Hyderabad.

Quarterly Meeting of CVOs of Steel CPSEs under the administrative control of Ministry of Steel was held on 8.9.2017 at NMDC, Hyderabad.

A Quarterly meeting of Vigilance Officers in NMDC was conducted on 19^th & 20^th, September 2017.

DIRECTORS’ RESPONSIBILITY STATEMENT

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 31.03.2018, the applicable accounting standards had been followed along with proper explanation relating to material departures;

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

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

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

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

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

DECLARATION ON MEETING THE CRITERIA OF INDEPENDENCE AS PER THE COMPANIES ACT, 2013

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 2018-19. The Board of Directors at its 512^th meeting held on 28.05.2018 has noted the declaration as made by the Independent Directors.

COMPANY’S POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION

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

NUMBER OF BOARD MEETINGS HELD

During the year under review 8 meetings of the Board were held. For further details, reference may kindly be made to Corporate Governance Section of the Annual Report.

IMPLEMENTATION OF RISK MANAGEMENT POLICY

The Board at its 442^nd 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). The Company as a part of its current Risk Management Policy has identified top 15 Risks That Matters (RTMs) and documented Mitigation Plan / Strategy for the same. During the year under review, four meetings of the Board level Risk Management Committee were held.

DETAILS OF DIRECTORS OR KMP APPOINTED OR RESIGNED DURING THE YEAR.

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

	upto
Shri R. Sridharan,
!) CMD	05.09.2017
ii) Shri Syedain Abbasi, Govt. Nominee Director	10.10.2017

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

w.e.f.
i)	Shri N. Baijendra Kumar, IAS, CMD	06.09.2017
ii)	Shri Sunil Barthwal, Govt. Nominee Director	11.10.2017
iii)	Shri Bahram Navroj Vakil	06.09.2017
iv)	Shri Ashok Kumar Angurana	16.11.2017

The Board places on record its deep appreciation for the valuable contribution made by Shri R. Sridharan and Shri Syedain Abbasi during their tenure on the Board of the Company.

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 2017-18:

S.No.	Unit	Statutory Auditors
	Head Office, R&D Centre, SIU &	M/s. Tej Raj & Pal, Chartered Accountants
1		Plot No. 1278/2256/4294
	Consolidation	Govinda Prasad, Bomikhal
		Bhubaneswar - 751 010, Odisha
	Kirandul Bacheli NISP, Jagdalpur Vizag Office	M/s. O P Totla & Co., Chartered Accountants
2		C-16, First Floor, Shyam Market, Near LIC Building, Pandri, Raipur-492 004(C.G)
		M/s. Vijay Panchappa & Co.
		Chartered Accountants
3	Donimalai	Maruti Complex, II Floor Line Bazar Dharwad, Dharwad-580 001, Karnataka.
		M/s. Amit OM & Co.,
		Chartered Accountants
4	Panna	2nd Floor, Dr. Bajaj Complex 17/12, Tashkhand Marg-SP Next to PVR Campus, Civil Line Allahabad-211001(UP)

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

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. A close monitoring of the RTI applications received is done to ensure that the replies are sent in time.

The details of RTI applications received in Head Office and all the Units of the Company during the period 01.04.2017 to 31.03.2018 are as follows:

Month	No of Applications received	Information Provided	Rejected
April 2017	26	21	02
May 2017	20	21	00
June 2017	22	26	00
July 2017	24	23	00
August 2017	14	07	00
September 2017	08	17	00
October 2017	16	10	01
November 2017	18	17	01
December 2017	26	13	01
January 2018	15	30	03
February 2018	17	11	00
March 2018	20	18	00
TOTAL	226	214	08

Carried forward from 2016-17 as on 01.04.2017 - 14 Requests, 04 Applications have been transferred to other CPIOs.

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATION IN FUTURE - NIL

AWARDS RECEIVED BY THE COMPANY

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

1. NMDC has been conferred ‘SKOCH BSE Order-of-Merit Award’ for Corporate Excellence in CSR for its flagship CSR initiative ‘Siksha Sahayog Yojana’ in a function held at BSE, Mumbai on 20/6/2017.

2. On 19th Jul’2017, NMDC received ‘Certificate of Distinction’ under CSR Programmes from Mr. Jaco Cilliers, Country Director, UN Development Program, organized by Economic Times & KPMG India, New Delhi.

3. On 25th Jul’2017 NMDC received “Dun & Bradstreet PSU Award 2017 under the sector Mining - Metals & Minerals category” organized by Dun & Bradstreet.

4. On 05th Aug’2017, NMDC received Public relations Society of India (PRSI), Hyderabad chapter Award for its House Journal titled “Khanij Bharathi, Corporate Diary 2017 & Website www.nmdc.co.in from Sri B Ram Mohan, Mayor, Hyderabad.

5. On 11th Sep’2017, NMDC received Rajbhasha Samman from Hon’ble Union Minister of Steel Sri Chaudhary Birender Singh in New Delhi during the meeting of Hindi Advisory Committee of Ministry of Steel.

6. On 14th Sep’2017 NMDC received ‘SKOCH - Order-of-Merit 2017 Award’ in Cyber Security Category organized by SKOCH at New Delhi.

7. On 05th Oct’2017, NMDC received “Platinum Award - 2017” from Greentech Foundation for Training Excellence in HR organized by Greentech Foundation, New Delhi.

8. On 12th Dec’2017, NMDC received “CII - ITC Sustainability Award 2017 Commendation” for significant achievement under CSR category organized by Confederation of Indian Industry at New Delhi.

9. On 14th Dec’2017, NMDC received Golden Peacock Corporate Ethics Award 2017 from Sri Jawed Ashraf, IFS, High Commissioner of India to Singapore, organized by Institute of Directors, New Delhi.

10. NMDC Limited conferred with prestigious ET Now CSR Leadership Award-2018 in the categories of Women empowerment and Community Development at a function organized at Mumbai on 18th Feb’18.

11. On 20th Mar’2018, NMDC’s 5 Iron ore mines received 5 star rating from Sri Narendra Singh Tomar, Hon’ble Union Minister of Mines, organized by Ministry of Mines, Govt. of India.

12. On 27th Mar’2018, NMDC received ‘Governance Now PSU Award’ for Employee Productivity from Sri Mansukh Laxman Mandaviya, Hon’ble Minister for State for Road Transport & Highways, Shpping, Chemical & Fertilisers, Govt. of India, organized by Governance Now Magazine, New Delhi.

VIGIL MECHANISM

NMDC being a PSU, the guidelines of Central Vigilance Commission (CVC) are applicable which provides adequate safeguard against victimization of the employees. The Board of Directors at its 451^st 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 website and intranet of the Company for information of all the employees. In terms of Whistle Blower Policy, the Screening Committee will comprise of CMD and Chairman of Audit Committee. No complaint has been received by the Company under Whistle Blower Mechanism for the year under review. In order to spread awareness about Whistle Blower Policy, awareness programmes were conducted during the Vigilance Awareness Week 2017 at Projects.

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143(12) OTHER THAN WHICH ARE REPORTABLE TO CENTRAL GOVT. - NIL.

STRATEGIC DISINVESTMENT OF NMDC IRON & STEEL PLANT (NISP) AT NAGARNAR.

The Core Group of Secretaries on Disinvestment (CGD) in its meeting held on 28.02.2018 considered and concurred with the proposal of Ministry of Steel as regards deferment of the proposal of Strategic Disinvestment till the plant becomes operational. IMG noted the recommendations of CGD.

MOU SIGNED BETWEEN NMDC AND CHIPS, RAIPUR

The company has signed an MoU with CHiPS, Raipur on 24.05.2018.

The purpose of this MOU is to establish consent of NMDC & CHiPS Raipur to work together in:-

(a) The area of IT and electronics driven automation

(b) Development, standardization of technology and scaling for organization-wide deployment

(c) Business process modeling, engineering and / or re-engineering thereof, covering areas of work relevant to mining industry and to NMDC in specific as deemed necessary.

This will benefit NMDC on the following:-

Mining Value Chain (pit to port / pit to dispatch)

1. Back Office Automation - Standard ERP

2. Application Program Interface to connect data in near real time.

OFFER FOR SALE (OFS) IN F.Y. 2017-18

Pursuant to the Offer for Sale (OFS), the President of India (acting through and represented by the Ministry of Steel, Government of India), the Promoter of NMDC Limited sold equity shares aggregating 7,95,54,641 on 9^th January 2018 and 10^th January 2018 representing 2.51% of the paid-up equity share capital of the Company. The Floor Price for the Offer was Rs. 153.50 per equity share. The total sale proceeds received by the Government of India was Rs. 1224.53 Crore. Post completion of the said OFS, the equity stake of the Promoter in NMDC Limited stands reduced from 74.94% to 72.43%.

FORMAL ANNUAL EVALUATION OF BOARD, COMMITTEES AND INDIVIDUAL DIRECTORS.

All the Directors on the Board of NMDC are appointed by Govt. of India. As desired by Ministry of Steel, Govt. of India, assessment / evaluation of performance of 6 Non-official Directors (Independent) was submitted to Ministry of Steel, Govt. of India.

REPORT ON MANAGEMENT DISCUSSIONS AND ANALYSIS

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

REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO UNDER THE COMPANIES (ACCOUNTS) RULES, 2014 IS AT -ANNEXURE -II.

CORPORATE GOVERNANCE

Report on Corporate Governance is at Annexure-III

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

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

BUSINESS RESPONSIBILITY REPORT

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

SECRETARIAL AUDIT REPORT

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

GLOBAL COMPACT - COMMUNICATION ON PROGRESS

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

STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES / ASSOCIATE COMPANIES / JOINT VENTURES (FORM AOC-1) IS ENCLOSED AT ANNEXURE-VIII.

REPORT ON CSR ACTIVITIES

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

RECOMMENDATIONS MADE BY THE COMMITTEE ON PAPERS LAID ON THE TABLE (RAJYA SABHA) IN ITS 150^th REPORT - DETAILS TO BE PROVIDED IN THE ANNUAL REPORT.

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

ACKNOWLEDGEMENT

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

Your Directors acknowledge the support extended by the valued and esteemed international and domestic customers, Shareholders stakeholders, MMTC, Chennai Port Trust, Visakhapatnam Port Trust, Railways and other Departments of the Central and State Governments. We believe that 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 : 08.08.2018 N. BAIJENDRA KUMAR

Chairman-cum-Managing Director

---

Mar 31, 2017

Dear Members,

The Directors are pleased to present the 59th Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31st March 2017 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.8,830 crores, achieved Profit Before

Tax (PBT) of Rs.4,294 crores and achieved Profit After Tax (PAT) of Rs.2,589 crores.

The major performance highlights are summarized as under:

- Achieved production of 340.05 LT and sales of 356.21 LT. Highest ever achieved since inception of the Company.

- Turnover for the year under review was Rs.8,830 crores compared to Rs. 6,457 crores in the previous financial year 2015-16 recording an increase of 37%.

- Profit Before Tax (PBT) from continuing operations was Rs.4,294 crores compared to Rs.4,093 crores in the previous financial year 2015-16 recording an increase of 5%.

- Profit After Tax (PAT) was Rs.2,589 crores compared to Rs. 2,712 crores in the previous financial year 2015-16 recording a decrease of 4.5%.

- Net worth of the Company stood at Rs.22,519 crores as on 31.03.201 7, 22.66% lower than Rs.29,118 crores in the previous financial year 2015-16.

- The Company has declared an Interim Dividend of Rs.4.15 per share for FY 2016-17.

- Capital expenditure of Rs.3,468 crores has been incurred during the year under review.

- Completed buyback of 80,08,25,526 equity shares of Re.1/- each @ Rs.94/- per share under tender route involving an outgo of Rs.7,527.76 crores.

- Govt. of India has accorded in-principle approval for strategic disinvestment of NMDC Iron & Steel Plant (NISP) at Nagarnar.

2.0 PHYSICAL PERFORMANCE

2.1 Production

Product	Achievement		Percentage of change
	2015-16	2016-17
Iron Ore (lakh tonnes)	285.74	340.05	19.00%
Diamond (Carats)	35,558	35,636	0.22%
Sponge Iron (Tonnes)	6,614	5,474	(-) 17.24%

3.0 SALES OF IRON ORE

Particulars	Physical (in lakh tonnes)			Value (Rs. in crore)
	Achievement		% of	Achievement		% of
	2015-16	2016-17	change	2015-16	2016-17	change
Domestic	277.13	328.92	18.68%	5,975.13	7,804.15	30.61%
Export through MMTC	11.26	27.29	142.36%	352.80	904.75	156.45%
Total Sales	288.39	356.21	23.52%	6,327.93	8,708.90	37.63%

3.1 Other Sales

Products	Achievement
	2015-16	2016-17
a) Diamond
Sales (carats)	36,683	25,631
Value (Rs. in crore)	52.61	41.91
b) Sponge Iron
Sales (tonnes)	8,365	8,579
Value (Rs. in crore)	13.14	13.13
c) Wind Power
Sales (lakh units)	1 85	220
Value (Rs. in crore)	6.30	7.48

4.0 FINANCIAL PERFORMANCE

4.1 Operating Results

Parameter	Achievement		Percentage of change
	2015-16	2016-17
Profit Before Tax (PBT) (Rs. in crore)	4,093	4,294	4.91%
Profit After Tax (PAT) (Rs. in crore)	2,712	2,589	(-) 4.54%
Net Worth (Rs. in crore)	29,118	22,519	(-) 22.66%
Book value per share (Rs.)	73.44	71.17	(-) 3.09%
Earnings per Share (Rs.)	6.84	7.22	5.56%

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

4.2 Profit & Dividend

During the year under review, your Company has earned profit before tax from continuing operations of Rs.4,294 crores on a turnover of Rs.8,830 crores in comparison with previous year’s achievement of Rs.4,093 crores and Rs.6,457 crores respectively.

The Company has declared Interim Dividend for FY 2016-17 @ Rs.4.15 per share in the month of March 2017 involving an outgo of Rs.1,313 crores. The share of Government with equity stake of 74.94% is Rs.984 crores.

The Board of Directors at its meeting held on 25th May, 2017 has recommended declaration of final dividend of Re.1/- per share subject to approval of the shareholders at the AGM. The total dividend including final dividend if approved, aggregates Rs. 5.15 per share.

4.3 TRANSFER TO RESERVES

The Company proposed not to transfer any amount from net profit to General Reserve.

4.4 MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT - Nil.

4.5 DEPOSITS

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

5.0 INTERNAL CONTROL SYSTEMS

Necessary disclosure in respect of Internal Control Systems and their adequacy has been made in Annexure-C to the Independent Auditors’ Report dated 11.07.2017 which forms part of the Annual Report.

6.0 (a) PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE

COMPANIES ACT, 2013.

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

(b) RELATED PARTY DISCLOSURE

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

7.0 (a) STATUTORY AUDITOR’S REPORT

The Audit Report for both Standalone and Consolidated Financial Statements for the FY 2016-17 is unmodified and does not contain any qualification, reservation or adverse remark.

(b) SECRETARIAL AUDIT REPORT

The Secretarial Audit Report for the FY 2016-17 as done by M/s Hanumanta Raju & Co., Company Secretary in whole time practice does not contain any qualification, reservation or adverse remark.

8.0 NEW PROJECTS & BUSINESS DIVERSIFICATIONS

In line with the Vision plan of augmenting its Production & Evacuation capacity, technology upgradation, diversification &value-added products, NMDC has taken up many ambitious projects. Some of the projects have been completed and others nearing completion. Action for new projects have been initiated. During the financial year 2016-17, the details of Projects undertaken by NMDC are summarized as under:

A	Completed Projects
1	Crushing & Downhill system of 11B - Kirandul Complex
2	Crushing Plant & Downhill Conveyor - Kumaraswamy
3	1.2 MTPA Pellet Plant - Donimalai
B	Ongoing Projects
1	3 MTPA Iron & Steel Plant - Nagarnar, Chhattisgarh
2	Doubling of KK line between Kirandul to Jagdalpur
3	Doubling of KK line between Jagdalpur to Ambagaon
4	Additional Screening Line & upgradation of existing conveyors
C	Projects awaiting Statutory clearances
1	Screening Plant III - Kirandul Complex
2	Screening Plant II - Donimalai Complex
3	15 MTPA Slurry Pipeline - Kirandul to Nagarnar
D	SPVs
1	Rail SPV (IRCON - SAIL - NMDC-CMDC)
2	State of Karnataka (Steel)
3	State of Jharkhand (Steel)
E	International Projects
1	Tanzania Gold Mine
2.	Legacy Iron Ore Limited, Australia

11B Crushing Plant with Downhill Conveyor was successfully commissioned in 2015 and is in operation now. The associated facilities like service building and telecommunication packages etc are being carried out on the risk and cost of the previous contractors.

The 4th line in Screening Plant of Deposit-10/11A was also completed in 2016-17, which helped in handling of additional ROM upto the tune of 2 MTPA.

Projects / schemes for capacity expansion

To augment the production and to improve the quality of product mix from Bailadila Sector, the schemes like SP-III Kirandul, relocating Crushing Plant-14 and Downhill conveyor, additional screening lines, Rapid Wagon Loading System (RWLS) etc are envisaged. Waste mining and increase in evacuation capacity being a major area of focus for enhancing the life of mines, the schemes like beneficiation plant in Bacheli and Slurry pipeline from Bacheli to Nagarnar has also been taken up.

In the financial year 2016-17, the Company has achieved success in terms of completion of Kumaraswamy Iron Ore Mines, Pellet Plant in Donimalai Complex. The construction activities for Kumaraswamy Crushing & Downhill conveyor was completed in 2015. The Downhill conveyor being one of its kind in India for Iron Ore conveying, due care was taken for commissioning of the conveyor and gradually operate it on full load.

The 1.2 MTPA Pellet plant at Donimalai is under advance stage of commissioning and trial run was taken up during 201 6-17.

The upcoming schemes in Donimalai Complex includes a second Screening Plant of 10 MTPA for handling the ROM from Donimalai & Kumaraswamy mines in addition to the existing Screening Plant. For improving the rake loading capacity in the Donimalai sector an additional Loading facility of 7 MTPA along with Railway Yard at Ranjitpura is being planned. Railway consultant is being appointed to prepare the TEFR & DPR.

NMDC was in the process of setting up a Dead Burnt Magnesite Plant at Katra, about 55 km from Jammu on Jammu Tikri road through its JV Company JKMDC (a JV of NMDC and JKML with equity ratio 74:26). Required statutory clearances for this project was obtained and works were started.

NMDC has made an expenditure of about Rs.60 Crores in this project as of now.

But the project activities have been suspended due to the withdrawal of Environmental clearance by MoEFCC based on feedback from Shrine Board. To resume the project activities, NMDC has taken up the matter at various levels with State Govt., MoEFCC, etc.

Projects / Schemes to enhance evacuation capacity

To augment the evacuation capacity from Bailadila sector, many projects & schemes are taken up like doubling of KK line, Rowghat-Jagdalpur line, Slurry Pipeline etc. Doubling of KK line is executed by Railways as a deposit work and is in advance stage. During the year 2016-17, 33.96 km of railway line was completed in section 1 and 17.6 km was opened for traffic. The works in other two sections are also in advanced stages and is expected to be completed in 2018-19. The completion of this project will augment the evacuation capacity of Bailadila sector through Railway line from 20 MTPA to 40 MTPA.

For increasing the rake loading capacity in Kirandul an uniflow system is being planned. This will reduce the rake loading time and turnaround time of rakes. The scheme for this project has been prepared and in the process appointing a Railway consultant for preparation of TEFR and DPR.

NMDC is also participating in the Rowghat-Jagdalpur Rail line project as a major stake holder with 43% share along with SAIL, IRCON & Govt, of Chhattisgarh being other stake holders with 21%, 26% & 10% respectively. This line will be helpful in reduction of distance by about 260 Kms and facilitate NMDC in the cost competitiveness of Iron Ore supplies in Raipur region. This line will also be helpful for Steel Plant project at Nagarnar for inward & outward traffic and also provide a better customer connectivity for Iron Ore & Steel customers.

NMDC has taken up an ambitious project of laying Slurry Pipeline from Bailadila to Jagdalpur and further upto Visakhapatnam. The capacity of the line 15 MTPA and this will be associated with facilities like beneficiation Plant at Kirandul & Bacheli, Pellet Plant at Nagarnar and Vizag. The Slurry Pipeline between Bacheli to Nagarnar is being executed by NMDC and from Nagarnar to Vizag is envisaged to be executed in SPV mode. The works for Bailadila to Jagdalpur segment (140 Km) has been taken up. This project is challenging in terms of obtaining various clearances and permissions from statutory bodies and complexity of the route.

The project team along with environment department is working hard for obtaining the Environment & Forest clearances. The enabling work for Pellet Plant at Nagarnar has started and tendering actions for the technological packages have been initiated. The environment clearance for beneficiation plant at Bacheli has been obtained.

Steel Plant Project

The progress in the Steel Plant in 2016-17 has been quite good as compared to the previous years in all the fields.

Civil works completed by end March’2016 was 52.6% with an addition of 17.7% during 2016-17, resulting in cumulative completion of civil work of about 70.3%.

Structural erection completed by end March’2016 was 28.3% with an addition of 21.5 % during 2016-17, resulting in cumulative completion of structural erection of about 49.8%.

Equipment erection completed by end March’2016 was 10.8% with an addition of 12.2% during 2016-17, resulting in cumulative completion of equipment erection of about 23.1%.

The CAPEX achievement during the financial year 2016-17 was Rs.2845 Crore as compared to Rs.2507 Crore during 2015-16, with an increase of 13.5%.

The value of works awarded during the Financial year 2016-17 was Rs.617.1 Crore.

The progress in the fourth quarter of 2016-17 was commendable as compared to the other quarters of the financial year.

The project team at Nagarnar is working hard to complete the construction activities by December’2017 and to start the commissioning activities progressively.

Promoting New Steel Plants through SPVs

NMDC is promoting Steel SPVs for setting up new steel plants in the state of Karnataka and Jharkhand and jointly with SAIL at Chhattisgarh. This initiative is under a collaborative approach of Ministry of Steel, GoI and respective State Government. The Steel SPVs shall acquire land, seek water and power allocation and iron ore linkage for setting up the Steel plant and then invite a strategic partner to develop and construct the Steel Plant. NMDC shall ensure the ore linkage to the SPVs though JVs with State Mining corporations.

The Steel SPV in Jharkhand has selected the site and has applied for allocation of land, water and power. In the state of Karnataka, the land acquisition is in advanced stage through KIADB. NMDC has also sought for iron ore allocation in the state of Chhattisgarh, Jharkhand and Karnataka for ore linkage to the steel SPVs.

An MoU was signed between CSIR-CIMFR and NMDC Limited for the following activities at the different projects of NMDC Limited, for a duration of five years:

Phase-I

1. Field assessment and implementation of Mine Transport Surveillance System.

2. Air Quality assessment and implementation of dust suppression system in Crushing, Screening and Loading Plants, Stock Piles and transfer points.

Phase-II

1. Slope stability studies

2. Cost effective and safe blasting solutions

3. Any other activity of mutual interest as per the requirement of NMDC.

Mine Transport Surveillance System (MTSS) has been chosen for implementation at KIOM Kumaraswami, DIOM Donimalai and Donimalai Pellet Plant in first phase.

The brief details of Mine Transport Surveillance System (MTSS) are as follows:

1. Weighbridge Automation

2. Centralized billing and software solution

3. In-motion weigh bridge

4. Perimeter Surveillance/ Virtual Fencing

5. GPS and RFID based tracking

6. Proximity Warning

7. CCTV Surveillance

8. Wireless Networking

Solar Power Projects

With the green energy initiative of Govt. of India focussing more on renewable energies, NMDC has taken up setting up of Solar Power projects (Rooftop & Overland) at its Office premises and at its Paloncha unit. This includes

(a) 30 KW rooftop solar power generation at Head Office.

(b) 1 MW rooftop solar power generation at production units of NMDC.

(c) 5 MW overland solar power generation at SIU, Paloncha, a unit of NMDC.

The rooftop solar power unit at Head office has been commissioned and is in operation. The approval for investment decision for other two solar projects have been obtained and initiated tendering action.

Challenges in Project Execution

The major challenges faced in project implementation are due to delay in obtaining statutory clearances. The delay in obtaining statutory clearances for any particular package affect the integral commissioning of the facilities even if the upstream and downstream facilities are ready.

It is also seen that the project activities are suffering because of the poor financial conditions of the contractors, commercial dispute between the consortium members etc. Project department has taken many pro-active steps to overcome such situations by implementing time based payment mechanism, direct payment to vendors/ sub-contractors, partial taking over of works from the scope of the contractors in line with contract provisions, providing interest bearing advance etc.

8.1 OVERSEAS PROJECTS / NMDC GLOBAL

GOLD MINING PROJECT TANZANIA:

NMDC has got a Mining Lease (ML) of 38.83 km² at Bulyang ‘Ombe (Ntobo), Tanzania. It is planned to setup a Pilot Plant of 12 ton per hour initially. Metallurgical Tests of samples have been done. Selection of agency for Design, Engineering and Construction of the Pilot Plant through tendering process is in progress.

8.1.1 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 has 78.56% equity in the Company.

Legacy is presently carrying out exploration in its 19 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 magnesite. Legacy’s major gold focus lies in the South Laverton region and base metals focus lies in the Koongie Park region of Western Australia.

8.1.2 International Coal Ventures Pvt. Ltd. (ICVL)

ICVL acquired a coking / thermal coal mine in Mozambique in 2014 and operation of the same was taken over by ICVL. ICVL post acquisition of Benga mine at Mozambique made efforts to bring down its cost of production and minimize cash loss in operation, which resulted in significant reduction in cost compared to the pre acquisition era. However, with the depressed coking coal prices, the operations continued to make losses. In view of the same, mining operations was stopped from 31st December 2015.

ICVL undertook strategic review of Benga operations by an external consultant to consider re-starting of operations whilst coking coal prices remained volatile during the year. ICVL is in the process of appointing new contractors for mining and transport operations to restart the coking coal mining operations at Mozambique.

8.1.3 Venture into Strategic Raw materials

Tungsten metal is of strategic importance due to its essential requirement in defence and aerospace sector and currently India meets its entire requirement through imports. NMDC has entered into MoUs with both MIDHANI and DMRL to explore tungsten investment opportunities in India and abroad.

8.2 Leases for minerals

8.2.1 Iron Ore

8.2.1.1 In Chhattisgarh

NMDC-CMDC Ltd., is a subsidiary of NMDC Ltd. with equity share holding of NMDC Ltd. and CMDC Ltd. in the ratio of 51:49. This subsidiary Company has been formed to develop, mine, process, raise and sale of iron ore from Deposit No.13 & Deposit No.4 at Bailadila in South Bastar Dantewada, Chhattisgarh. The present Mining Lease Grant status of both the deposits are as follows:

8.2.1.1.1 Bailadila Iron Ore Deposit No.13

Mining lease was granted for Bailadila Iron Ore Dep-13 over an area of 413.745 Ha, in favor of NMDC Ltd. for 50 Years. Performance security has been deposited with the State Government in the form of a bank guarantee for an amount of Rs.426.69 Crores and Mine Development and Production Agreement was signed on 10.01.2017. The lease deed was executed and registered on 10.01.2017 over an area of 315.813 Ha.

ML Grant Order No.F3-84/95/12 dated 07.01.2017 of Deposit No.13, issued by “MRD Government of Chhattisgarh”, Para 12 (9) (1) states that “after the execution of the lease deed, NMDC will transfer the Mining Lease to the Company “NMDC-CMDC Ltd.” Accordingly, NMDC is taking, necessary steps to transfer the Mining Lease of Deposit-13 in favor of “NMDC-CMDC Ltd.”

The deposit has mineable reserve of 324.69 MT of lron Ore and the project is having EC of 10 MTPA. The development of Deposit-13 is being undertaken by NMDC-CMDC Ltd.

8.2.1.1.2 Bailadila Iron Ore Deposit No.4

As per the Minutes of FAC held on 26th December 2016, Agenda No.14 (FNo.8-72/2016- FC), FAC deferred the proposal for approval under section 2(iii) of Forest Conservation Act, 1980 till the submission of inspection report by the team headed by Addl. Director General of Forest (FC). Since obtaining FC was one of the conditions of “LoI” issued by Govt. of Chhattisgarh vide its letter No.F2-20/2005/12 Raipur dated 13.01.2012, the Mining Lease Grant order was not issued by Government of Chhattisgarh and therefore the lease deed could not be executed before the due date of 11.01.2017.

The proposal for Forest Clearance of Deposit-4 was again deliberated in the FAC meeting held on 28.02.2017 (Ref: F No.8-12/2016-FC), under agenda No.7. FAC after thorough deliberation on the inspection report submitted by the Committee headed by ADG(FC), decided not to recommend the proposal.

Fresh application will be submitted to the Chhattisgarh State Government by NMDC-CMDC Ltd. for allocation of Deposit-4 in favor of NMDC-CMDC Ltd. under reservation as per section 17A(2A) of MM(D&R) Amendment Act, 2015.

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

8.2.1.2 In Jharkhand Sasangoda:

A JV Company (NMDC 60% & JSMDC 40%), Jharkhand National Mineral Development Corporation Limited (JNMDC) has been incorporated, 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. M/s JNMDC applied for renewal of PL for a period of two years. Detailed Geological mapping and topographical survey have been completed. Lol has been issued for carrying out exploratory drilling in PL area. Forest Clearance application for conducting drilling and other exploration works was submitted. FAC of MoEF & CC recommended for Forest Clearance. Drilling will be commenced after grant of renewal of PL.

8.2.1.3 Other PL/ML Applications:

Your Company is pursuing for reservation for Ghatkuri Iron ore area in West Singhbhum District.

8.2.1.4 In Karnataka

Your Company is pursuing for ML for Ramandurg and Kumaraswamy Deposit (contiguous to ML No.1111). Ramandurg iron ore deposit is subjudice and pending in the Hon’ble Supreme Court of India. For reservation of Ramandurg deposit under section 17A (2A) of MM (D&R) Amendment Act, 2015, NMDC has sent the proposal to Chief Secretary, Govt. of Karnataka. MoS, Govt. of India, also has requested Govt. of Karnataka, for reserving Ramandurg deposit having 5.17 Sq. Km area in favor of NMDC. In addition, your Company has applied for 3 prospective blocks contiguous to Donimalai ML under reservation. Secretary, Ministry of Steel, GoI has written a letter to Chief Secretary, Govt. of Karnataka for reservation of 3 blocks (154.50 ha) adjacent to Donimalai Iron Ore Mines for PL-cum-ML and one block (196 ha.) contiguous to Kumaraswamy Iron Ore Mines for ML.

8.2.1.5 In Odisha

Your Company is pursuing for ML for Mankadnacha and Malngtoli iron ore deposits.

8.2.1.6 In Madhya Pradesh

Iron Ore Prospective Blocks:

Three Prospective Blocks were applied for Iron Ore i.e. Sidhi Block, Bagrodha PF & Dulchipur RF and Dhaurra Village. GoMP has given permission to NMDC for prospecting works in Dhaurra area after getting statutory clearances from forest and revenue departments under Sub-section (1) of Section (4) of MM (D&R) Amendment Act, 2015. Tripartite MoU among GoMP (MRD, through DGM) MPSMCL & NMDC was signed for geological and geophysical exploration in various Districts of M.P. Director, DMG, GoMP granted permission for reconnaitary survey.

8.2.1.7 In Andhra Pradesh

Your Company has applied for Ramgiri prospective block for Iron Ore in Anantapur district. NMDC has requested State Govt. to reserve this block in favour of NMDC under section 17A (2A) of MM (D&R) Amendment Act, 2015.

8.2.2 Diamond

8.2.2.1 In Andhra Pradesh

Your Company is pursuing for grant of 3 PLs falling in the Forest area (Renewal application submitted) in Kalyandurg area, Anantapur District. FAC recommended for forest permission for drilling. NMDC requested Director, DMG for grant of renewal of PL’s in favor of NMDC. Once the Govt. of Andhra Pradesh grant the renewal of PL’s in favor of NMDC, exploration will be commenced in 3 PL areas.

8.2.2.2 In Madhya Pradesh

Your Company has applied for 17 Nos. of areas for Diamond and Iron ore (6 Prospective Blocks in Panna Dist., 5 PL’s in Tikamgarh Dist., 3 Large Prospective Blocks for Diamond, 3 Prospective Blocks for Iron Ore and 1 Prospective Block for various minerals like Diamond, Gold, PGE, Nickel, etc.).

Tikamgarh PL’s:

Based on RP works, 5 PL applications namely Acharra, Dargany Kalan, Jalandarpur, Sunrai Khas & Birorakhet were submitted to Mining Officer, Tikamgarh. All 5PLs (Dargany Kalan, Jalandharpur, Birorakhet Sunrai Khas and Acharra) for Diamond in Tikamgarh District in Madhya Pradesh, were forwarded by MP Govt. to MoM, GoI, New Delhi. MoM, New Delhi requested Secretary, MRD, GOMP Bhopal, Controller General of IBM and Director General of GSI for their comments for grant of Prospecting License in 5PL’s in favour of NMDC under 4(2)(a) of Mineral (Evidence of Mineral Content) Rules, 2015 and Rule 7 of MCR, 1960 & 3A to 3E of MCDR, 1988. MRD, Bhopal sent their comments to MOM, New Delhi for all the 5 PL’s. Your Company will start detailed exploration in these areas after grant of PL’s.

Large area Diamond Prospective Blocks:

Your Company has applied for three large area Prospective Blocks namely Damoh Block, Chhattarpur Panna Block-1 and Chhattarpur Panna Block-2 for diamond exploration. Tripartite MoU among GoMP (MRD, through DGM) MPSMCL & NMDC was signed for geological and geophysical exploration for various Districts of M.P. Director, DMG, GoMP granted permission for reconnaitary survey. The team of Geologists visited the large diamond blocks in Chhattarpur Panna Block 1 & 2, Damoh and Stream Sediments Sampling is under process in Damoh and Chhattarpur blocks.

8.2.2.3 Panna Prospective Blocks:

Tripartite MoU among GoMP (MRD, through DGM) MPSMCL & NMDC was signed for geological and geophysical exploration for various Districts of M.P. Director, DMG, GoMP granted permission for reconnaitary survey. Exploration will be commenced in 5 Prospective Blocks namely Karmatiya, Lakshmipur, Pali, Khirwa South and Khirwa West.

Prospective block for various minerals:

One area was applied for various minerals (Diamond, Gold, PGE, Nickel, etc.) in Jabalpur Katni Block (563 Sq. Km.). Tripartite MoU among GoMP (MRD, through DGM) MPSMCL & NMDC was signed for geological and geophysical exploration for various Districts of M.P. Preliminary exploration started.

8.2.3 Platinum Group of elements

8.2.3.1 In Uttar Pradesh

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

8.2.4 Coal

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

As per the Section-5 of the Coal Mines (Special Provision) Act, 2015, your Company is trying to get Coking & Non Coking Coal Blocks for captive and commercial mining through auction or allocation.

9.0 SUBSIDIARY / ASSOCIATE / JOINT VENTURE COMPANIES MONITORING FRAMEWORK

a) NMDC has 7 subsidiaries and stake in 5 Associates & 5 JV Companies. The names of these Companies and percentage of NMDC stake in these companies are as follows:

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

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

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

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

Notes:

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

2) A step down Subsidiary Company of NMDC-SAIL Ltd. by the name Chhattisgarh Mining Ventures Ltd. was incorporated on 08/11/2016.

10.0 ENVIRONMENT MANAGEMENT:

The Company has obtained Environmental Clearance for Screening Plant-III, Kirandul on 23/12/16 from MOEFCC, New Delhi and tree felling permission on 14/2/17 from Forest Department, Raipur. Consent for Establishment has also been obtained for proposed 2 MTPA Pellet Plant at Nagarnar from CECB, Raipur on 30/10/16. The Final forest clearance under F.C. Act, 1980 obtained for Transmission line of Pellet Plant at Donimalai on 1/2/17 from Regional Office, MOEFCC, Bangalore and diversion of 315.813 Ha forest land for Deposit-13 Mining Lease area from MOEFCC, New Delhi on 9/1/17. The Lease deed for Bailadila Deposit-13 was executed on 10/11/17. The expert appraisal Committee meetings were held for issue of Environmental clearance for capacity expansion of Bailadila Deposit-10 from 4.2 to 6.0 MTPA and proposed 10 MTPA Screening Plant-II at Donimalai and the committee recommended the projects for Environmental clearance. The draft EIA/ EMP report submitted to CECB, Raipur for arranging Public consultation for capacity expansion of Bailadila Deposit-14/11C project, Kirandul from 12 to 20 MTPA.

Carbon foot print studies were conducted for F.Y 2016-17 and Green House Gas emissions will be disclosed in Carbon disclosure project. Donimalai, Panna Diamond Mining Project, Bailadila Deposit-10 obtained FIVE Star rating from IBM, Ministry of Mines. Sustainable Mining Initiative Audit was carried out for iron ore mines located at Bacheli and Kirandul through FIMI, New Delhi. The recommendations of SMI will be implemented to obtain Five-star rating for Bailadila Deposit-14, 11C, 11B and 5 mines. Water Audit was also carried out at all projects of NMDC and recommendations of audit are under implementation by projects to conserve water and also to improve the efficiency of motors / pumps, arrest leakages, etc.

The Company has participated in Chhattisgarh Hariyar plantation programme during the year 2016-17 and contributed Rs.25 Crore to Hariyar Kosh for undertaking block plantation in the State of Chhattisgarh. The Company is undertaking all environmental pollution control works such as de-silting of check dams / check bunds, tailing dams, construction of buttress walls at toe of waste dumps and geo-coir matting on waste rock dumps for stabilization of dumps. The Company is organizing monitoring studies covering all environmental parameters by recognized laboratories. The studies indicated that all environmental parameters are found to be well within the limits.

10.1 Sustainable Development Performance

Under S.D. programme, your Company has awarded the work orders for construction of STP with SBR technology at Bacheli (2 MLD), Kirandul (3 MLD), Donimalai (3 MLD) and the work is under progress. Your Company has also deposited an amount of Rs.28.15 Crore towards Bio-diversity conservation plan expenditure at Bailadila Iron Ore Mines with Forest Department in CAMPA AC.

11.0 SAFETY Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectors are nominated/appointed for mining operations, mechanical and electrical installations as per statutory requirements.

Mine Level Tripartite Safety Committee Meetings 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. 27th Corporate Level Tripartite Safety Committee Meeting of Bailadila Iron Ore Mines / Diamond Mining Project was conducted on 24.10.2016 and Donimalai Iron Ore Mine / Kumarswamy Iron Ore Mine was conducted on 03.02.201 7.

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 2016-17 is 0.20 and 0.34 for the year 2015-16.

Integrated Management System (IMS) i.e. Quality Management System - ISO 9001:2008; Environmental Management System - ISO 14001:2004; Occupational Health & Safety Management System - OHSAS 18001:2007 & Social Accountability - SA 8000 Certification Standards.

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

OHS Activities:

Occupational Health Services have been provided with adequate manpower and infrastructure and are functioning in full-fledged manner at all the projects, headed by Qualified Doctors trained in OHS at Central Labour Institute, Mumbai. Periodical Medical Examination under statute is carried out regularly in all the projects, with a planned programme.

Safety Management System:

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

12.0 IMPLEMENTATION OF INTEGRITY PACT:

- With an objective of improving transparency in public procurement and contracts, NMDC Ltd. have entered into MOU with Transparency International India for implementation of Integrity Pact Programme on 24th September 2007.

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

- We are among the first 10 public sector companies having entered into MOU with Transparency International for implementation of Integrity Pact Programme among the various PSU’s with Integrity Pact compliance.

- For covering the majority of the procurements, initially in 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

I Batch of IEMs

1. Shri M. Gopalakrishna, IAS (Retd.) } from 04.10.2007 to 30.09.2010

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

II Batch of IEMs

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

III Batch of IEMs

1. Shri Ajit Kumar Jain, IAS (Retd.), From 26-12-2013 to 25-12-2016

2. Shri Ramesh Chandra Panda, IAS (Retd.), From 19-12-2013 to 18-12-2016

IV Batch (Present) of IEM

1. Shri Ramesh Chandra Panda, IAS (Retd.), From 19-12-2016 onwards

Review Meetings

Review meetings with IEMs are held on quarterly basis.

13.0 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.

14.0 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.

15.0 IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

Your Company successfully implemented Official Language Policy of Government of India in its Headquarters, Projects and Units.

A new course devised by Govt of India “Hindi Parangat” was started at Hindi Training Centre of Head Office to make Officers and employees work in Hindi efficiently. In addition, Hindi Workshops were conducted in every quarter at Head Office and all the Projects/Units for practical training of doing day-to-day official work in Hindi. Training in “Hindi Unicode” was imparted to work in Hindi on computers. Regular classes were held to impart Hindi Stenography training to all the English Stenographers.

Incentive Schemes for writing noting, letters, Registers in Hindi and giving dictation in Hindi were implemented throughout the year. Hindi Fortnight was celebrated. Various Hindi competitions were conducted and prizes distributed to the participants. To promote use of Hindi, “Monthly Hindi Competitions” were conducted. To encourage usage of Rajbhasha in Projects and units, “NMDC Rajbhasha Shield” Scheme was started.

Meetings of Official Language Implementation Committees were held in every quarter at Head Office and all the Projects. To monitor use of Rajbhasha and suggest measures to augment the same, inspections and Desk trainings programs were conducted at various projects and units. Rajbhasha contact programs which were held every month at various departments of HO by Officers of Rajbhasha Departments at Head Office to increase awareness towards Official Language. Desk training in Hindi was also imparted during such programs.

A Joint Hindi workshop for small undertakings of Twin cities was conducted at Head Office under the aegis of Town Official Language Committee (Undertakings), Hyderabad-Secunderabad. Also, an “Inter-Undertaking Hindi Competition” was organized for employees of all the undertakings. All India Conference of Rajbhasha Officers was also conducted at Head Office. House journal dedicated to Official language “Khanij Bharati” was published. Various Hindi/Bilingual magazines, news magazines were also published from Head Office and Projects viz, Sarjana, Takaneeki Sopan, Takaneeki Khitiz, Baila Samachar, Bacheli Samachar, Doni Samachar, NISP Patrika, She News etc.

NMDC was awarded First Prize “Rajbhasha Shield” by Ministry of Steel, Govt. of India for excellent implementation of Rajbhasha. NMDC was also conferred with First Prize-”Rajbhasha Shield” by Town Official Language Implementation Committee (U), Hyderabad-Secunderabad in mid-sized category for outstanding implementation of Rajbhasha.

16.0 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 and services. It always supports and encourages the participation of MSEs in various procurements duly indicating the concessions applicable for MSEs as per Govt. guidelines in all the tender documents. NMDC is continuously registering MSE vendors to enhance the vendor base.

During the FY 2016-17, NMDC has participated in various National and State Level Vendor Development Programmes / MSME Expos for Buyer - Seller meet at Hyderabad, Tirupati, Jagdalpur, Raipur, Bilaspur, Mathura, Belgaum, Kolar, Goa and Donimalai.

17.0 MANPOWER

17.1 Employee-Employer relations

The overall industrial relations situation was peaceful and cordial during the year. There was no strike/lockout against the Company’s policies affecting production and productivity.

17.2 Scheduled Castes & Scheduled Tribes

37 candidates belonging to Scheduled Caste and 56 candidates belonging to Scheduled Tribes were appointed in the year 2016 against 259 posts filled by direct recruitment.

17.3 Strength of SCs & STs as on 31st March 2017

1. Total number of employees = 5572

2. Scheduled Castes amongst them = 956

3. Scheduled Tribes amongst them = 1195

4. Total SCs and STs = 2151

5. Physically challenged employees = 100

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

NIL

17.5 Staff Welfare activities

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

17.6 Promotion of Sports

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

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

No complaint has been received and no case has been filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 during the financial year 2016-17.

18.0 HUMAN RESOURCES DEVELOPMENT

An ever changing highly competitive business landscape necessitates NMDC to place significant thrust on harnessing the potential of the people within the organization as a key differentiator for sustained growth. The Human Resources Development (HRD) function at NMDC is an integral part of the business, aimed at actively conceptualizing and implementing contemporary and customized HR initiatives, policies and practices in line with organizational vision.

Human Resources Development at NMDC has embarked upon creating a robust HR ecosystem by establishing strong linkages between its people, systems & processes by adopting novel high impact HR Initiatives in areas like Leadership Development, Culture Building, robust Performance Management, Skill Development and Employee Engagement.

Capability Building Programmes:

NMDC’s HRD Team has crafted initiatives include core programmes straddling various dimensions of Leadership, Capability Enhancement and Skill(s) Development along with customised programmes that address diverse capability-building needs at various levels of the organization. These programmes cover not just functional competencies but behavioral inputs as well, to ensure comprehensive development of our human resources. Training is delivered both internally and via external bodies to meet the specific requirements of roles or to target professional development. Such training ensures that employees are aware of their personal and Company obligations related to their workplace, safety and environment standards, as well as industry and international standards. Corporate HRD has Organized 24 Nos of Customised In House Training Programmes covering 690 Executives during 2016-17, 193 Nos of External Training Programmes covering 483 executives on various subjects, 28 Nos of Executives are sent abroad for Foreign Training Programmes/ AMP.

Leadership Development:

To create & sustain leadership pipeline, programmes like AMP, GMP & tailor-made customized interventions on leadership development are organized. 8 senior Executives are nominated for AMP and 53 Executives are imparted Training in GMP and Other Leadership development Programmes held during 2016-17.

High Potential Leadership Development Programme (HI-POs) for AGMs/DGMs:

Corporate HRD has planned a progressive intervention for creating a robust leadership pipeline by taking High Potential Leadership Development Programme for middle level Managers covering around 258 Executives. It will bridge the gap in pool of leaders in near future and also will create the necessary efficient leadership pipeline in long term for better business results.

- Conducted ADC and Psychometric Assessment for 241 Executives out of 258 Executives available in the E-5 and E-6 Grades.

- Prepared Merit List based on ADC, Psychometric assessment and Performance Rating for three Years and submitted to Top Management for Approval.

- Identified 28 Coaches and trained them under Coaching Skills Workshop.

- Detailed IDP and Training Plan is envisaged for identified high potentials.

AAROH-II:

A Strategic Orientation Workshop (HR Conclave) for Management and Trade Union Representatives is organized on 3rd & 4th April 2017 at Kodaikanal covering Management Representatives and Trade Union Representatives.

Project Management/Risk Management:

25 Nos of Executives in the level of E-5 &E-6 are imparted 6 Days Training in “Project Management”.

Mentoring and Coaching:

HRD has continued its thrust on Mentoring & Coaching programme which is an essential element for developing executives within the Organization. 24 Nos of Senior Executives are imparted Training on Mentoring and Coaching during 2016-17.

Strengthening of Quality Circles:

To further strengthen the Quality Circles Movement in NMDC, HRD has given more thrust on Quality Circles activities by adding 5% more QCs this year. 43 nos. of Quality Circles (QCs) are formulated and working in various conventions.

Executive Development Programmes:

3 Nos of EDP (one month) & 3 Nos MDP (one week) for Executive Trainees (ETs) selected under NMDC & NISP are conducted at ASCI, Hyderabad during FY 2016-17.

HRD AWARDS:

- Corporate HRD has bagged Green Tech Gold Award in Training Excellence.

- NMDC has won BEST HR Practices Case study Contest Award by SCOPE, New Delhi.

19.0 VIGILANCE

NMDC Vigilance Department guides and facilitates impartial, fair and transparent decision making and gives priority to preventive vigilance, with proactive measures. Department had taken several initiatives during the year. Emphasis was laid on adequate checks and balances in the form of well-defined systems and procedures. Various programmes were conducted for awareness on vigilance matters for the employees of the Corporation. The vigilance functionaries at the projects have conducted regular training classes for the employees on the vigilance matters. Executives of Vigilance Department were nominated for training / workshops being organized in India.

Vigilance Department in NMDC is certified under ISO 9001:2008 conforming to the Quality Management System. Surveillance Audit of Vigilance Department has been conducted by M/s. Integrated Quality Certification Pvt. Limited on 07.02.2017 and recommended for Certification which is valid up to 14.09.2018.

During the year (Apr, 2016 - March, 2017) 92 surprise checks, 107 regular inspections and 15 CTE type inspections were conducted. During period, 61 grievances were addressed in the CPGRAMS Portal. Complaints received were taken up for investigation and necessary disciplinary action wherever required was recommended. Apart from these, the thrust area studies were conducted on following activities:

1. Study of Cost Cap - HEM equipments

2. Study of Asset Register

3. Study of Mining Contracts

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 is entered into 109 contracts with a value of Rs.19,102 crores. As such, more than 90% of the total value of the contracts is covered under Integrity Pact. In addition, procurements through e-procurement and sales are in place.

The Vigilance Awareness Week 2016 was celebrated from 31.10.2016 to 05.11.2016 with the administration of pledge to all the employees by Dr. N.K. Nanda, Director (Technical) on 31.10.2016. The theme for this year was “Public participation in promoting Integrity and eradicating Corruption”.

Units of NMDC at - Kirandul, Bacheli, Donimalai, Panna, NISP, Nagarnar, Sponge Iron Unit and Regional Offices at New Delhi, Bangalore, Kolkata, Vizag, etc., have observed the Vigilance Awareness Week and similar programmes were conducted there also. CVC’s Annual Sectoral Review Meeting with Chief Executives/CMDs and CVOs of Steel and Mines and Defence Sector was held on 1.02.2017 at NMDC, Hyderabad.

20.0 DIRECTORS’ RESPONSIBILITY STATEMENT

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 31.03.2017, the applicable accounting standards had been followed along with proper explanation relating to material departures;

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

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

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

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

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

21.0 DECLARATION ON MEETING THE CRITERIA OF INDEPENDENCE AS PER THE COMPANIES ACT, 2013

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 2017-18. The Board of Directors at its 503rd meeting held on 25.05.2017 has noted the declaration as made by the Independent Directors.

22.0 COMPANY’S POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION

All Directors are appointed by Govt. of India.

23.0 NUMBER OF BOARD MEETINGS HELD

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

24.0 IMPLEMENTATION OF RISK MANAGEMENT POLICY

The Board at its 442nd meeting held on 19.01.2012 has approved the Risk Assessment and Risk Mitigation Policy / Enterprise Risk Management (ERM) of the Company. Accordingly, the Company has constituted a Board level Risk Management Committee comprising of all Functional Directors (excluding CMD). The Company as a part of its current Risk Management Policy has identified top 15 Risks That Matters (RTMs) and documented Mitigation Plan / Strategy for the same.

During the year under review, four meetings of the Board level Risk Management Committee were held.

25.0 NMDC STRATEGIC MANAGEMENT PLAN (NMDC VISION 2025)

A long-term strategic management plan (SMP), ‘Vision 2025’ was formulated in 2015 as per which its Iron ore Mining capacity was envisaged to be increased to 75 million tonnes per annum (MTPA) by 2018-19 and 100 MTPA by FY 2021-22.

Since the formulation of SMP, the business environment for commodities/iron ore witnessed severe downturn, necessitating a relook at the ambitious growth agenda. The prices of steel products and iron ore have come down significantly and global surplus scenario is likely to prevail in the foreseeable future for both the steel and the iron ore industry globally.

Taking into account the market scenario, the SMP was reviewed by NMDC in March, 2016 and expansion targets have been re-worked 50 MTPA by 2018-19 and 67 MTPA by 2021-22.

The above expansion plan of NMDC takes into account the high prospects of the growth of the Indian Steel Industry in the coming years with several factors indicating the same, such as, thrust of the government on infrastructure development, growing urbanization, extensive plans of rail network expansion, improving power generation, etc. Low per capita steel consumption in the country at 63 kg/t vis-a-vis the world average of 208 kg/t also indicate the huge growth potential the Indian steel industry has.

Besides the expansion plan, the SMP approved by the Board in June, 2015 also envisaged introduction of systemic interventions in six strategic transformation areas - Business, Operations, Sustainability, Capital Projects, Human Resource and IT. Several initiatives in this respect are under implementation such as, License-to-Operate computer-based model (in which all the statutory approvals will be brought under one umbrella, driving cost reduction and other business-improvement initiatives, etc.

26.0 DETAIL OF DIRECTORS OR KMP APPOINTED OR RESIGNED DURING THE YEAR.

The following Director ceased to be Director on the Board of the Company:

Smt. Bharathi S. Sihag, Govt. Nominee Director w.e.f. 08.02.2017

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

i) Shri R. Sridharan, CMD w.e.f. 07.12.2016

ii) Shri Saraswati Prasad, Govt. Nominee Director w.e.f. 08.02.2017

The Board places on record its deep appreciation for the valuable contribution made by Smt. Bharathi S. Sihag during her 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 2016-17:

S.No.	Unit	Statutory Auditors
1	Head Office, R&D Centre, SIU & Consolidation	M/s. Tej Raj & Pal, Chartered Accountants Plot No. 1278/2256/4294 Govinda Prasad Bomikhal Bhubaneswar - 751 010, Odisha
2	Kirandul Bacheli NISP, Jagdalpur Vizag Office	M/s. O P Totla & Co., Chartered Accountants C-16, First Floor, Shyam Market, Near LIC Building, Pandri, Raipur-492 004(C.G)
3	Donimalai	M/s. Vijay Panchappa & Co. Chartered Accountants Maruti Complex II Floor Line Bazar Dharwad, Dharwad-580 001, Karnataka.
4	Panna	M/s. Amit OM & Co., Chartered Accountants 2nd Floor, Dr. Bajaj Complex 17/12, Tashkhand Marg-SP Next to PVR Campus, Civil Line Allahabad-211001(UP)

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

28.0 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. A close monitoring of the RTI applications received is done to ensure that the replies are sent in time.

The details of RTI applications received in Head Office and all the Units of the Company during the period 01.04.2016 to 31.03.2017 are as follows:

Month	No of Applications received	Information Provided	Rejected
April 2016	(Pending as on 01.04.2016 - 08)	17	03
May 2016	26	13	04
June 2016	22	24	05
July 2016	44	37	02
August 2016	25	21	01
September 2016	20	26	01
October 2016	14	22	02
November 2016	11	07	01
December 2016	14	14	Nil
January 2017	05	04	02
February 2017	11	07	Nil
March 2017	18	11	02
TOTAL	241	203	23

Pending as on 31.03.2017 - 14 Requests 01 Applications have been transferred to other CPIOs.

29.0 DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATION IN FUTURE - NIL

30.0 AWARDS RECEIVED BY THE COMPANY

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

- Bailadila-10/11A, Bailadila Iron Ore Mine, Chhattisgarh; Donimalai Iron Ore Mine, Donimalai & Diamond Mining Project, Panna, MP received Five Star Rating from the IBM for Sustainable Development practices.

- Bailadila Iron Ore Complex awarded FIMI Golden Jubilee Award for excellence in Environment & CSR.

- Most Efficient PSU Award from Dalal Street Journal.

- Governance Now PSU Award for Strategic Performance under financial category from Governance Now Magazine.

- Ispat Rajbhasha Shield (First Prize) amongst PSUs of MoS for Implementation of Rajbhasha.

- India Pride Award in Mining category from Dainik Bhaskar Group.

- Kirandul, Bacheli, Doniamalai & Panna Projects got Green Tech Award (Silver) in the field of Environment & CSR.

- NIPM Award for Best HR Practices.

- Best CSR Practices Award and Most Caring Company Award by World CSR Congress.

- Global HR Excellence Award for Best HR Strategic Plan by Planman HR.

31.0 VIGIL MECHANISM

NMDC being a PSU, the guidelines of Central Vigilance Commission (CVC) are applicable which provides adequate safeguard against victimization of the employees. 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. In terms of Whistle Blower Policy, the Screening Committee will comprise of CMD and Chairman of Audit Committee. No complaint has been received by the Company under Whistle Blower Mechanism for the year under review. In order to spread awareness about Whistle Blower Policy, awareness programmes were conducted during the Vigilance Awareness Week 2016 at Projects.

32.0 DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143(12) OF THE COMPANIES ACT, 2013 OTHER THAN WHICH ARE REPORTABLE TO CENTRAL GOVT. - Nil.

33.0 BUYBACK OF EQUITY SHARES BY THE COMPANY

As informed in the Director’s Report for the Financial Year 2015-16, approval of the shareholders of the Company was sought by way of Special Resolution through postal ballot vide Postal Ballot notice dated 7th June 2016, the results of which were declared on 4th August 2016. Public Announcement dated 4th August 2016 was published in newspapers on 8th August 2016. The Draft Letter of Offer (DLOF) was filed with SEBI on 16th August 2016 for comments. The Letter of Offer incorporating the comments along with the Tender Form was despatched on 15th September 2016 to the Shareholders as on record date i.e., 19th August 2016. Buyback offer opened on 19th September 2016 and closed on 30th September 2016.

The details of Buyback offers received are summarized as under:

Category of Investor	No. of Equity Shares reserved in Buyback	No. of Valid Bids	Total Equity Shares Validly tendered	% Response
General category of other Shareholders	75,90,22,334	2	99,11,79,425	130.59
Reserved category for Small Shareholders	4,18,03,192	44	4,993	0.01
Total	80,08,25,526	46	99,11,84,418	123.77

All Equity Shares validly tendered by Small Shareholders i.e. 4,993 Equity Shares, have been accepted in full. As regards Equity Shares tendered by Shareholders in the General Category, the Additional Equity Shares tendered by them over and above their Buyback Entitlement, have been accepted on a proportionate basis. Accordingly, out of 99,11,79,425 Equity Shares validly tendered by the Shareholders in General Category, 80,08,20,533 Equity Shares have been accepted for the Buyback Offer, out of which the share of Government of India is 80,08,20,108 Equity Shares.

The total amount utilized in the Buyback of Equity Shares is Rs.7,527,75,99,444 excluding transaction costs viz. brokerage, applicable taxes such as securities transaction tax, service tax, stamp duty, etc. Government of India received Rs.7,527,70,90,1 52 out of the buyback transaction.

The settlement of all valid bids have been completed by the Clearing Corporation / BSE on October 07, 2016. Demat Equity Shares accepted under the Buyback have been transferred to the Company’s demat escrow account on October 7, 2016. The extinguishment of 80,08,25,526 Equity Shares accepted under the Buyback in dematerialized form has been completed on 10th October 2016. The paid-up capital of the Company post Buyback is Rs. 3,163,890,474 (pre shareholding was Rs. 3,964,716,000).

34.0 STRATEGIC DISINVESTMENT OF NMDC IRON & STEEL PLANT (NISP) AT NAGARNAR.

The Government of India has accorded in-principle approval for strategic disinvestment of NMDC’s Iron & Steel Plant (NISP) at Nagarnar on 27.10.2016. The entire process of strategic disinvestment would be overseen by an Inter-Ministerial Group (IMG) constituted by Ministry of Steel. The Board of NMDC has accorded approval for engagement of the following intermediaries:

i) M/s SBI Capital Markets Ltd. as Transaction Advisor.

ii) M/s J. Sagar Associates as Legal Advisor.

iii) M/s Protocol Insurance Surveyors & Loss Assessors Pvt. Ltd. as Asset Valuer.

35.0 FORMAL ANNUAL EVALUATION OF BOARD, COMMITTEES AND INDIVIDUAL DIRECTORS.

All the Directors are appointed by Govt. of India.

36.0 REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO UNDER THE COMPANIES (ACCOUNTS) RULES, 2014 IS AT ANNEXURE-I.

37.0 CORPORATE GOVERNANCE

Report on Corporate Governance is at Annexure-II

38.0 REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS

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

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

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.

40.0 SECRETARIAL AUDIT REPORT

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

41.0 BUSINESS RESPONSIBILITY REPORT

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

42.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS

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

43.0 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES / ASSOCIATE COMPANIES / JOINT VENTURES (FORM AOC-1) IS ENCLOSED AT ANNEXURE-VIII.

44.0 REPORT ON CSR ACTIVITIES

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

45.0 ACKNOWLEDGEMENT

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

Your Directors acknowledge the support extended by the valued and esteemed international and domestic customers, Shareholders, stakeholders, MMTC, Chennai Port Trust, Visakhapatnam Port Trust, Railways and other Departments of the Central and State Governments. We believe that 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.

(R. Sridharan)

Chairman-cum-Managing Director

Place : Hyderabad

Date : 21st August, 2017

---

Mar 31, 2015

Dear Members,

The 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.

1.0 PERFORMANCE HIGHLIGHTS

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.

Shri Narendra Singh Tomar, Union Minister of Steel and Mines interacting with senior officials during his maiden visit to NMDC, Head Office, Hyderabad. The Hon ble Minister was accompanied by Ms. Urvilla Khati, Jt. Secretary, Ministry of Steel, Shri Anupam Prakash, Director, Steel Ministry and Shri Nikunj Kumar Srivastava, PS to Steel Minister.

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.

NMDC Ltd. bagged the prestigious Platts Global Metals Awards 2015 in "Industry Leadership Award - Raw Materials & Mining" Category. Shri Narendra Kothari, CMD, NMDC received the coveted award at the function organized by Platts at Hotel Savoy London, UK. This award recognizes the performance of NMDC in consistently delivering strong returns to shareholders, while improving environmental efficiencies, implementing technological advances and displaying a commitment to sustainable, forward - thinking solutions, challenges of the political and business environments, etc.

2.0 PHYSICAL PERFORMANCE

2.1 Production

Product Achievement Percentage of change 2013-14 2014-15

Iron Ore (lakh tonnes) 300.25 304.41 1.4%

Diamond (Carats) 37,081.70 35,085.46 (-)5.4%

Sponge Iron (Tonnes) 29,734.36 28,993.96 (-)2.5%

3.0 SALES OF IRON ORE

Particulars Physical Value (in lakh tonnes) (Rs. in crore) Achievement % of Achievement % of 2013-14 2014-15 change 2013-14 2014-15 change

Domestic 282.03 280.49 (-)0.5% 10,268.06 10,828.16 5.5%

Export through MMTC 22.97 24.67 7.4% 1,631.46 1,369.53 (-)16%

Total Sales 305.00 305.16 0.05% 11,899.52 12,197.69 2.5%

3.1 Other Sales

Products Achievement 2013-14 2014-15

a) Diamond

Sales (carats) 43,487.63 38,788.58

Value (Rs. in crore) 49.85 50.06

b) Sponge Iron

Sales (tonnes) 30,572.34 25,191.38

Value (Rs. in crore) 56.01 48.09

c) Wind Power

Sales (lakh units) 31.05 176.16

Value (Rs. in crore) 1.05 5.96

4.0 FINANCIAL PERFORMANCE

4.1 Operating Results

Parameter Achievement Percentage of change 2013-14 2014-15

Profit Before Tax (PBT) (Rs. in crore) 9,759 9,768 0.09%

Profit After Tax (PAT) (Rs. in crore) 6,420 6,422 0.03%

Net Worth (Rs. in crore) 29,983 32,326 8%

Book value per share (Rs.) 75.62 81.54 8%

Earnings per Share (Rs.) 16.19 16.20 –

4.2 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.

4.3 TRANSFER TO RESERVES

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

4.4 DEPOSITS

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

5.0 INTERNAL CONTROL SYSTEMS

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

6.0 (a) PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF

THE COMPANIES ACT, 2013

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

(b) RELATED PARTY DISCLOSURE

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.

7.0 STATUTORY AUDITOR'S REPORT AND SECRETARIAL AUDIT REPORT

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

8.0 NEW PROJECTS & BUSINESS DIVERSIFICATIONS

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 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 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

8.2.1 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

8.3.1.1 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.

8.3.1.2 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.

8.3.1.3 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.

8.3.1.4 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).

8.3.1.5 In Odisha

Your Company is pursuing for ML for Mankadnacha iron ore.

8.3.2 Gold

8.3.2.1 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

8.3.3.1 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.

8.3.3.2 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

8.3.4.1 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

8.3.6.1 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: 8.3.7.1 In Chhattisgarh

Your Company is pursuing ML application for Sadartera Dolomite Deposit.

9.0 SUBSIDIARY / ASSOCIATE / JOINT VENTURE COMPANIES MONITORING FRAMEWORK

a) NMDC has eight subsidiaries and stake in five Associate / JV Companies. The names of these Companies and percentage of NMDC stake in these companies are as follows:

b) 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.

ii) 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.

10.0 ENVIRONMENT MANAGEMENT:

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 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.

11.0 SAFETY

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.

12.0 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. 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 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.

Safety Management System:

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

13.0 IMPLEMENTATION OF INTEGRITY PACT:

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.)

/ From 04.10.2007 to 30.09.2010

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

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 flow ability 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.

16.0 IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

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.

To 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.

18.3 Strength of SCs & STs as on 31st March 2015

1. Total number of employees = 5490

2. Scheduled Castes amongst them = 974

3. Scheduled Tribes amongst them = 1150

4. Total SCs and STs = 2124

5. Physically challenged employees = 46

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.

19.0 HUMAN RESOURCES DEVELOPMENT

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.

20.0 VIGILANCE

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".

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.

21.0 DIRECTORS' RESPONSIBILITY STATEMENT

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.

22.0 DECLARATION ON MEETING THE CRITERIA OF INDEPENDENCE AS PER THE COMPANIES ACT, 2013

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.

23.0 NUMBER OF BOARD MEETINGS HELD

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.

24.0 IMPLEMENTATION OF RISK MANAGEMENT POLICY

The Board at its 442nd meeting held on 19.01.2012 has approved the Risk Assessment and Risk Mitigation Policy / Enterprise Risk Management (ERM) of the company. Accordingly, the company has constituted a Board level Risk Management Committee comprising of all Functional Directors (excluding CMD) and one Independent Director.

25.0 NMDC STRATEGIC MANAGEMENT PLAN (NMDC VISION 2025)

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.

26.0 DIRECTORS

The following Directors ceased to be Directors on the Board of the Company for the year under review:

w.e.f.

i) Shri S.K. Das, Director (Commercial) 31.08.2014

ii) Shri Subimal Bose, Director (Production) 31.10.2014

iii) Shri S.J. Sibal, Independent Director 27.12.2014

iv) Shri S. Thiagarajan, Director (Finance) 31.12.2014

v) Shri Vinod Kumar Thakral, Govt. Nominee Director 16.03.2015

The following Directors were appointed on the Board of the Company for the year under review:

w.e.f.

i) Dr. T.R.K. Rao, Director (Commercial) 17.11.2014

ii) Shri P.K. Satpathy, Director (Production) 13.12.2014

iii) Shri D.S. Ahluwalia, Director (Finance) 01.01.2015

iv) Smt. Bharathi S. Sihag 16.03.2015

Additional Secretary & Financial Advisor

Ministry of Steel and Govt Nominee Director

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 2014-15:

Sl. No. Unit Statutory Auditors

1. Head Office, M/s. Venugopal & Chenoy R&D Center, Chartered Accountants SIU & Consolidation 4-1-889/16/2, Tilak Road Hyderabad - 500 001

2. Kirandul M/s. Brahmayya & Co. Bacheli Chartered Accountants NISP, Jagdalpur D.No.33-25-33B, Vizag Office Govindarajulu Naidu Street, Suryapet Vijayawada - 520002

3. Donimalai M/s.P K Subramaniam and Co. Chartered Accountants 11-5-23, Karthik Complex Above Vijaya Bank, Bresthwarpet Raichur - 584 001

4. Panna M/s Gopal Gupta & Co. Chartered Accountants, 7F-6 (Third Floor), Vinayak Central Plaza 172C/40, Mahatma Gandhi Marg Civil Lines, Allahabad - 211 001

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

28.0 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. A close monitoring of the RTI applications received is done to ensure that the replies are sent in time.

The details of RTI applications received in Head Office and all the Projects during the period 01.04.2014 to 31.03.2015 are as follows:

Month No. of Applications Received Information Provided Rejected

Apr-2014 (Including 10 Pending) 30 17 01

May-2014 15 18 01

Jun-2014 07 11 01

Jul-2014 18 07 04

Aug-2014 24 19 01

Sep-2014 15 18 01

Oct-2014 15 16 01

Nov-2014 16 13 Nil

Dec-2014 25 18 01

Jan-2015 16 19 02

Feb-2015 10 14 Nil

Mar-2015 20 18 Nil

Total 211 188 13

Pending as on 31.03.2015 - 10 Requests

29.0 DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATION IN FUTURE.

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

30.0 AWARDS RECEIVED BY THE COMPANY

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.

31.0 VIGIL MECHANISM

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.

32.0 REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO UNDER COMPANIES (ACCOUNTS) RULES, 2014 IS AT ANNEXURE-I.

33.0 CORPORATE GOVERNANCE

Report on Corporate Governance is enclosed at Annexure-II

34.0 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-III.

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

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.

36.0 SECRETARIAL AUDIT REPORT

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

37.0 BUSINESS RESPONSIBILITY REPORT

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

38.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS

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

39.0 REPORT ON CSR ACTIVITIES IN TERMS OF COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014 IS ANNEXED AT ANNEXURE-VIII

40.0 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES / ASSOCIATE COMPANIES / JOINT VENTURES (FORM AOC-1) IS ENCLOSED AT ANNEXURE-IX.

41.0 ACKNOWLEDGEMENT

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

---

Mar 31, 2014

Dear Members,

The Directors are pleased to present the 56th Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31st March 2014 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.12,058 crores, achieved Profit Before Tax (PBT) of Rs.9,759 crores (including discontinued operations) and achieved Profit after Tax (PAT) of Rs.6,420 crores.

The major performance highlights are summarized as under:

The Company has registered highest iron ore production and sales since inception - Crossed the 300 lakh tonnes milestone in production and sales parameter for the first time in the FY 2013-14:

Achieved Iron Ore Production of 300.25 LT, highest since inception.

Achieved Iron Ore Sales of 305.00 LT, highest since inception.

Production of Diamonds also registered a remarkable growth of 18% at 37,082 carats over previous year.

Turnover for the year under review was Rs.12,058 crores compared to Rs. 10,704 crores in the previous financial year 2012-13 recording an increase of 13%.

Profit before tax (PBT) from continuing operations was Rs.9,761 crores compared to Rs.9,462 crores in the previous financial year 2012-13 recording an increase of 3%.

Profit after tax (PAT) was Rs.6,420 crores compared to Rs.6,342 crores in the previous financial year 2012-13 recording an increase of 1%.

Net worth increased to Rs.29,983 crores as on 31.03.2014, 9% higher than Rs.27,505 crores in the previous financial year 2012-13.

The Company has declared Dividend of Rs.8.50 per share for FY 2013-14 which is highest since its inception.

Supply of Iron Ore to domestic industries recorded 282.03 lakh tonnes as against the previous year supply of 246.72 lakh tonnes, recording an increase of 14%. Total exports of Iron Ore during the year was 22.97 lakh tonnes against 16.02 lakh tonnes in the previous financial year 2012-13 recording an increase of 43%.

Sponge Iron production during the year under review was 29,734 tonnes as against previous year 36,289 tonnes.

Diamond production for the year under review was 37,082 carats as against previous year 31,533 carats.

Capital expenditure of Rs.2,518 crore has been incurred which is once again the highest since inception.

Major packages for the 3.0 MTPA Steel Plant being set up at Nagarnar have been awarded and construction activity is going on in full swing.

2.0 PHYSICAL PERFORMANCE

2.1 Production

Product Achievement Percentage of change

2012-13 2013-14

Iron Ore (lakh tonnes) 271.84 300.25 10.45%

Diamond (Carats) 31,533.39 37,081.70 17.60%

Sponge Iron (Tonnes) 36,289.00 29,734.36 (-)18.06%

3.0 Sales of Iron Ore

Particulars Physical Value (in lakh tonnes) (Rs. in crore) Achievement % of Achievement % of

2012-13 2013-14 change 2012-13 2013-14 change

Domestic 246.72 282.03 14% 9,602.72 10,268.06 7%

Export through MMTC 16.02 22.97 43% 955.99 1,631.46 71%

Total Sales 262.74 305.00 16% 10,558.71 11,899.52 13%

3.1 Other Sales

Products Achievement

2012-13 2013-14

a)Diamond

Sales (carats) 17,862.57 43,487.63

Value (Rs. in crore) 28.51 49.85

b) Sponge Iron

Sales (tonnes) 37,599.54 30,572.34

Value (Rs. in crore) (Net of Excise) 73.50 56.01

c) Wind Power

Sales (lakh units) -- 31.05

Value (Rs. in crore) -- 1.05

d) Services - Value (Rs. in crore) 37.95 45.86

e) Other Operating Revenue (Net of Excise) 5.60 5.91

4.0 FINANCIAL PERFORMANCE

4.1 Operating Results

Parameter Achievement Percentage of change

2012-13 2013-14

Profit Before Tax from continuing operations (PBT) (Rs. in crore) 9,462 9,761 3%

Profit After Tax (PAT) (Rs. in crore) 6,342 6,420 1%

Net Worth (Rs. in crore) 27,505 29,983 9%

Book value per share (Rs.) 69.37 75.62 9%

Earnings per Share (Rs.) 16.00 16.19 1%

4.2 Profit & Dividend

During the year under review, your Company has earned profit before tax from continuing operations of Rs.9,761 crores on a turnover of Rs.12,058 crores in comparison with those of previous year''s achievement of Rs.9,462 crores and Rs.10,704 crores respectively.

The Company has declared first Interim Dividend for FY 2013-14 @ Rs.3/- per share involving an outgo of Rs.1,189.41 crores. Second Interim Dividend for the financial year 2013-14 was declared @ Rs.5.50 per share involving an outgo of Rs.2,180.60 crores.

Considering that Rs.8.50 per share has already been declared as interim dividend, no final dividend was recommended by the Board.

The total dividend for the current year is Rs.3,370 crores. Share of Government is Rs.2,696 crores.

5.0 DEPOSITS

The Company has not accepted any fixed deposits during the year under review.

6.0 Hon''ble Supreme Court Verdict on mining in Karnataka

As stated in the Directors'' Report for the year 2011-12 & 2012-13, 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 to be dealt with in accordance with law and the judgement.

Accordingly, the Donimalai and Kumaraswamy mines situated in Karnataka have been placed in Category-A.

Further, the Monitoring Committee, appointed by the Hon''ble Supreme Court is continuing the sales of Donimalai and Kumaraswamy products through e-auction.

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 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. In Mar''2014 naxals have burnt the Downhill conveyor of 11 B over a length of 500 mts, which was scheduled to take trial run in May''2014. Trial runs of Secondary Crusher, EOT Crane in Secondary Crusher house, Scalping screen & some of the conveyor is completed. Substations are charged. Balance works are expected to be complete during FY 2014-15.

7.1.2 Kumaraswamy Iron Ore Project

As an addition to present Donimalai Iron Ore Mine and augmenting production capacity towards achieving the target of 50 MTPA in NMDC and 12 MTPA in Karnataka, 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 is being executed through six packages. Orders are placed for Crushing Plant Package, Downhill conveyor Package, Electrics and Substation package and Service Centre facilities packages and the works are in progress. Civil works are completed for Primary & Secondary Crusher house, Dumper platform, Mine office Building. Erection & trial runs of Primary & Secondary Crusher is completed. Civil & Structural works of Downhill conveyor system are under progress. The project is expected to be complete during the FY 2014-15.

7.1.3 1.2 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. is appointed as EPCM consultant. Execution of Project is divided into Six Packages. The estimated capital expenditure is Rs.572 Crores. All the packages are ordered. Major civil works completed. Major Technological equipment erection is completed and some of the equipment trial runs taken. Project is scheduled to be completed in FY 2014-15.

7.1.4 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, District Bastar, 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 and for other facilities.

Necessary statutory clearances including Environmental Clearance from Ministry of Environment and 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. 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.), 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. Stage-I Forest clearances for 400 KV Transmission line and 400/220 KV substation have been obtained.

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 package 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 and Equipment erection works for most of the aforesaid major technological packages are in progress. Most of the auxiliary packages have also been awarded and the works are in progress.

Tender enquiry is issued for two infra packages namely Storm water drainage & Central Plant store building. Remaining 14 packages are at different stages of tender document finalisation.

Till date, NMDC has already invested Rs.4,300 Crores in Steel Plant.

7.1.5 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 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.

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. Notification under the Act has been made for RoW and RoU.

7.1.6 BHJ (Banded Haematite Jasper) Beneficiation Plant at Donimalai

The intent of BHJ Beneficiation Plant at Donimalai is for processing low grade iron ore (of about 42%Fe) to produce Pellet Feed Concentrate (PFC of about 65% Fe). The PFC can either be used as a feed material in the upcoming Pellet Plant at Donimalai or can itself be sold as a product. Approved cost of this Project is Rs. 134.41 Crores. The implementation of this Project will be taken up after receipt of Forest Clearance for ''Change of land use pattern'' from MoEF.

7.1.7 Panthal Magnesite Project

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

M/s. Dasturco is 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 order for main technological package is expected to be placed in August 2014.

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.

MoEF has accorded 1st stage clearance in Jan''2012. Environmental clearances received on 05.11.2013.

7.1.9 Doubling of Railway Line between Kirandul and Jagdalpur

NMDC has entered into an MoU with Indian Railways on 21.12.2012 for the above work of 150 km length at an estimated cost of Rs.826.57 Crores at 2010-11 price level for which an amount of Rs.75 Crores has been deposited by NMDC during May 2013.

The works between Jagdalpur- Shilakjhori Section of 45.50 Kms has been already sanctioned by Railway Board and construction works of formation, minor and major bridges, staff quarter at Jagdalpur, collection of stone ballast, transportation of P-Way materials and linking works, S&T service buildings, goomties, rest rooms, traction substation, PWI office and modification of station buildings and foot over bridge between Jagdalpur-Silakjhori Section (45.50 km) is progressing.

For remaining portion between Silakjhori-Gidam (52.73 km) and Gidam-Kirandul (52.228 km), the detailed estimate has also been sanctioned by Railway Board for which approval of Major & Minor bridge drawings and preparation of tender schedules are under progress.

7.1.10 Steel Plant at Bellary

In pursuance of the MoU signed between the Government of Karnataka and your Company, action for setting up of 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.

As the next step, Govt. of Karnataka to issue final notification under 28(4) of KIAD Act 1966. 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. 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

7.2.3 Rail Link between Dalli-Rajhara-Raoghat-Jagdalpur Railway Line Project

MOU was signed between Ministry of Railways, Govt. Of Chattisgarh, SAIL & NMDC in 1998 which was again revised in December''2007. The objective of the MOU is to provide a Broad Guage (BG) rail link from Dalli Rajhara to Rowghat and Bailadila Iron Ore Mines.

The project will be commissioned by the Indian Railways in two phases. The 1st phase will connect Dalli Rajhara with Rowghat (95 kms). In the 2nd Phase, the remaining portion between Rowghat-Kondagoan- Jagdalpur (140 Kms) will be commissioned. The total time period of construction will be 5 years for the 1st Phase. The commencement of the work on the 2nd Phase will be taken up simultaneously along with the 1st Phase. The effective date of commencement of the period of 5 years will be the date of execution of this MOU.

NMDC will contribute a proportionate amount of Rs. 70.70 Crores (2004-05 price level) and any escalations therein, towards the construction of Rowghat-Kondagoan-Jagdalpur (140 Kms) line. Because of MOU, Railways will assign traffic transportation assignment of SAIL & NMDC on this route for 37 years.

Work of laying of Railway line from 0 to 17 km from Dalli-Rajhara towards Raoghat is in progress.

Work of next phase i.e. from 18km to 42 km is yet to start on getting tree felling permission from Forest Department and after addressing issues related to jobs to land loosers.

7.2.4 NMDC Global

Strategic Alliances

Kopano-NMDC Minerals (Pty) Ltd.

Kopana NMDC Minerals (Pty) Limited - NMDC and Kopano logistics services (Proprietary) Ltd (BEE partner) had established a 50:50 joint venture company to undertake exploration and development of the mineral properties in the Republic of South Africa

NMDC being the technical partner in this initiative had reviewed several coal and manganese projects with Kopano at South Africa and conducted an external review by appointing consultants for one coal prospect. The Company is actively pursuing operating coal assets for acquisition.

The Board Meeting of the Kopano NMDC Minerals (Pty) Limited was held at NMDC, Hyderabad on 12th March''2014.

MOU with Mosi OA Tunya Development Company (MOTDC), Zimbabwe.

Your Company had signed an MoU for conducting due diligence and joint development of mineral resources with Mosi OA Tunya Development Company, Zimbabwe, the designated organization proposed by Ministry of Tourism, Government of Zimbabwe. The Company has shortlisted two gold and one diamond prospect for detailed due diligence and development through Joint Venture.

7.3 Foreign Venture

7.3.1 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. 13.02.2012. Your Company has been granted Retention License at Siga Hill area and PL renewal of Masabi East area. NMDC 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 2015-16.

7.3.2 Australia

Legacy Iron Ore, Perth, Australia

Legacy Iron Ore Ltd, an ASX listed entity based in Perth, Australia in which NMDC has 48.82% 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 kilometers of prospective ground. Legacy has 60% interest in Mt Bevan Iron Ore Project from Hawthorn Resources Ltd in Western Australia.

7.4 Leases for minerals

7.4.1 Iron Ore

7.4.1.1 In respect of Bailadila-1 & 3

Your Company has filed Writ Petition before the Hon''ble High Court of Delhi against allotment of PL 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.

7.4.1.2 The PLs being pursued in Chhattisgarh

Your Company has applied 7 PL''s in Dantewada District and is pursuing the PLs with Chhattisgarh Govt.

7.4.1.3 In Jharkhand

Sasangada:

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, Govt. of Jharkhand has granted PL for iron ore & Manganese in Sasangada NE area in favor of JNMDC Limited for a period of 3 years. DFO Chaibasa has granted permission for carrying out Topographical Survey and Geological Mapping for a period of six months (again extended for six months) i.e. upto 04.09.2014. Topographical Survey and Geological Mapping is in progress in the area.

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.

7.4.1.4 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 7 ML applications in Karnataka (4 against Govt Notification & 3 in Donimalai Range (Dec 2010).

7.4.1.5 In Odisha

Your Company is pursuing for ML for Mankadnacha iron ore.

7.4.2 Gold

7.4.2.1 In Jharkahand

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

7.4.3 Diamond

7.5.3.1 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 one more PL application for Diamond in Anantapur district on 25.09.2012.

7.4.3.2 In Madhya Pradesh

Your Company has carried out exploration work in granted 2 PLs (Baghain & Sarang). Report is under preparation. Your Company has also been granted the PL of Rampura Motwa for a period of two years. Your Company has applied for one more PL in Panna District of MP. Exploration works in granted PL areas is under progress.

Your Company is pursuing for 3 PLs viz., Karmatia, Lakshmipur & Pali for early grant in favour of NMDC.

Your Company has applied for RP for Diamond in Chhatarpur & Panna Districts.

Tikamgarh RP

Your Company was 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. Your Company has applied 5 PLs in Tikamgarh after completion of the RP works.

7.4.4 Platinum Group of Clements

7.4.4.1 In Uttar Pradesh

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

7.4.5 Coal

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.

Environment Clearance Public Hearing successfully completed in Shahdol & Umaria districts and EAC, MOEF recommended project for Environment Clearance. Forest Clearance Proposals are under consideration with Forest Deptts.

Detailed Project Report (DPR) for both the blocks is under finalization by Consultant M/s SCCL.

7.4.6 Bauxite

7.4.6.1 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.

7.4.7 Dolomite:

7.4.7.1 In Chhattisgarh

Your Company is pursuing ML application for Sadartera Dolomite Block in Bastar District.

8.0 SUBSIDIARY / JOINT VENTURE / ASSOCIATE COMPANIES MONITORING FRAMEWORK

NMDC has five subsidiaries, one Joint Venture and stake in five Associate Companies. The names of these Companies and percentage of NMDC stake in these companies are as follows:

* Under closure.

Based on the legal opinion, during the year M/s. Legacy Iron Ore Limited, Perth has been classified as Associate Company against classifying on Subsidiary Company in the previous year.

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 / Joint Venture 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 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.

9.0 ENVIRONMENT MANAGEMENT:

The Company has been accredited with ISO:14001 Environmental Management System certification in respect of NMDC''s four major production projects, i.e., Bailadila Deposit-14/11C, Deposit-5,10/11A, Donimalai and Diamond Mining Project, Panna. The Certification is valid up to November''2014. Regarding Environmental clearances, the company has obtained E.C on

5/11/2013 for construction of 12.0 MTPA Capacity Screening Plant-III and associated facilities at Kirandul from MoEF, GoI. The Company has successfully completed EIA/EMP process in r/o Shahpur U/G Coal Mining Projects at EAC, MoEF on 13/12/2013 and receipt of E.C is awaited. The Company has submitted applications for obtaining Environmental Clearances for (i) construction of 10 MTPA Screening Plant-II at Donimalai (ii) 4.0 MTPA Beneficiation plant at Bacheli along with slurry pipeline from Bacheli to Nagarnar and (iii) 2.0 MTPA Pellet plant at NISP, Nagarnar. The Company has also obtained approval for wildlife conservation plan for entire Dantewada forest division. The Company has also obtained Forest permission for undertaking P.L. works in Rampura, Motwa, Baghain and Sarang Diamond PLs in M.P. The company in process of completing the required formalities at C.G. State Forest Department for forwarding of the Forest clearance proposals to Government of C.G / MOEF 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. Your 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 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, the Company has chosen S.D. Projects / activities such as Carbon Management, Water Management and Training on S.D for employees for the year 2013-14. The status of each project is given below:

(i) Training programme on S.D.

The Company has engaged M/s. P.E. Sustainability Solutions Pvt Ltd., Bhilai for imparting the S.D training programme covering a total of 5 training sessions amounting to 22 days and 400 employees at all projects of the Company.

(ii) Energy Management

The Energy Conservation Options as recommended by the COPES are implemented at all projects of the Company for becoming more energy efficient.

(iii) Carbon Management

The Company has undertaken Carbon foot print studies at all Iron ore projects through M/s. First Climate India Pvt Ltd., Kolkata for the year 12-13 & 13-14. The Company has achieved 2.5 percent reduction in carbon footprint over the previous years. The expenditure incurred.

(iv) Water Management

Work awarded to M/s. Dee Tech Projects Pvt Ltd., Chennai for construction of STP based on SBR Technology at Bacheli at a total cost of Rs.6.61 Crores. The work is under progress. The treated water shall be recycled.

(v) Soil & Water Conservation

The Company has executed soil & water conservations works in and around Kirandul Complex through State Forest Department at a cost of Rs.2.20 Crores.

10.0 SAFETY

Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectors are nominated/appointed for mining operations, mechanical and electrical installations as per statutory requirements.

Mine Level Tripartite Safety Committee Meetings 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 and Bailadila Iron Ore Mines/Diamond Mining Project are to be conducted in the month of May 2014.

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 0.33 and 0.52 for the year 2013-14.

11.0 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. I Surveillance Audit was conducted successfully at Donimalai Iron Ore Mine; BIOM, Bacheli Complex and BIOM, Kirandul Complex in the month of October/November 2013. Recertification Audit was conducted successfully at R&D Center in the month of October 2013.

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. I Surveillance Audit was conducted at BIOM, Kirandul Complex; BIOM, Bacheli Complex and Donimalai Iron Ore Mine in the month of November/December 2013. II Surveillance Audit of Diamond Mining Project, Panna was conducted in the month of September 2013.

OHS Activities:

Occupational Health Services have been provided with adequate manpower and infrastructure and are functioning in full-fledged manner at all the projects, headed by Qualified Doctors trained in OHS at Central Labour Institute, Mumbai. Periodical Medical Examination under statute is carried out regularly in all the projects, with a planned programme.

Safety Management System:

Safety Management System has been implemented in all our mines.

12.0 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 Crores and procurements above threshold value of Rs.10.00 Crores are the subject matters of Integrity Pact.

3. Shri A.K.Jain, IAS (Retd) and Shri Ramesh Chandra Panda, IAS (Retd) have been appointed as Independent External Monitors (IEMs) for overseeing the Integrity Pact programme.

4. Till March 2014 a total of 75 tenders with an indented value of Rs.20131.65 crore were covered under the Integrity Pact.

13.0 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.

14.0 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.

15.0 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 of NMDC various competitions like Hindi Noting, Drafting and Technical Terms, Hindi Anuvad, Unicode hindi typing on computer, Quiz, Hindi Sshabdahgyan Competition and creativity competition for house wives, (The procedure of item was Written in Hindi) etc were also conducted and prizes were awarded to winners during Rajbhasha Pakhwara.

To encourage the employees to implement official Language Hindi in the technical field 56 Rajbhasha Technical seminars were organized till now and Technical Seminar patrika "Takneeki Sopan, Takneeki kshitiz" and Rajbhasha Souvenirs" Sarjana, Kaanan Kusum" were also published.

NMDC was also awarded Rajbhasha Shield as 1st prize for the year 2012-2013 by the Town Official Language Implementation Committee (undertakings) Hyderabad- Secunderabad, for excellent implementation of the Official Language Policy.

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

NMDC supports and encourages the participation of local and small vendors in procurement of goods and services. NMDC is taking steps to improve the capacity and capability of local and small vendors. A special drive for registering Micro and Small Enterprises was initiated in FY 2012-13. During FY 2013-14, we have participated in National level vendor development programme, State level vendor development programme and other programmes conducted by Ministry of MSME, Hyderabad in the nearby areas. We have also attended vendor development programme conducted by Ministry of MSME at Visakhapatnam, Raipur and Mysore wherein prospective MSEs were explained of our requirement and invited applications for vendor empanelment from the interested MSEs.

17. Offer and allotment of equity shares to Eligible Employees of NMDC by Government of India as per CCEA approval.

Department of Disinvestment, Government of India has offered upto 1,98,23,580 equity shares of face value of Re.1/- each to the eligible employees of NMDC at a discounted price of Rs.141.10 per equity share. In response to the said offer, 280 shares was transferred from President of India to the eligible employee who participated in the offer.

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. During the year a tripartite settlement revising the wages of workmen was signed.

18.2 Scheduled Castes & Scheduled Tribes

24 candidates belonging to Scheduled Caste and 23 persons belonging to Scheduled Tribes were appointed in the year 2013 against 153 posts filled by direct recruitment.

18.3 Strength of SCs & STs as on 31st March 2014

1. Total number of employees = 5,664

2. Scheduled Castes amongst them = 995

3. Scheduled Tribes amongst them = 1,219

4. Total SCs and STs = 2,214

5. Physically challenged employees = 40

18.4 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.

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 & sports for the wards were held in different Projects during the year apart from promoting sports events under CSR.

19.0 HUMAN RESOURCES DEVELOPMENT

Training Coverage to all employees was 70% against the target of 30%. Training Index of average employees in Training Mandays as percentage of Working Mandays was 3.93 against a target of 3.0.

Employee Development Services are delivered through In-Company, External and Foreign training modes.

In-Company Programmes: 278 Executives participated in 08 programmes.

External Training Programmes: 126 programmes were attended by 386 NMDC participants. This includes Executives, JO''s and Workmen.

Foreign Programmes: 09 Foreign training visits involved 31 participants.

Formal Risk Management Programmes: 09 persons at Senior Management were trained on "ISO 31000-Enterprise Risk Management" to have a practical knowledge in understanding various steps, benefits in Risk Management Culture in the Organization.

Executive Trainees: 62 Executive Trainees [47-ET''s & 15-AM(Fin)] received the training during 2013-14.

HRD Interventions:

1. A three day HR Conclave "Aaroh" has been organized by external expert at Kovalam during 24-26 Feb, 2014 for all the Trade Union Leaders for better appreciation of their roles and also for Senior Management & Top Management to jointly work out a plan for Organizational Development to make NMDC a Healthy Vibrant Organization.

2. Sustainable Development Programme as per MoU parameter held at each location of our Projects / Units. We have covered 450 persons in this programme.

Quality Circles: Creating Sustainable Quality Circles is one of the focus areas of the Company. Total 27 Quality Circles presented their case studies in CCQC-2013 held in the month of Sep-2013 at Hyderabad and Bangalore. Our teams in the CCQC-2013 were adjudged 22 as ''Gold'' and 5 as ''Silver'' out of 109 Quality Circles. 10 Quality Circles participated in NCQC in which 06 as Par Excellence and 04 QC''s as Excellence achieved.

NMDC received the Best Organization Award for consistently supporting QC activities.

20.0 VIGILANCE

NMDC 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 as well as abroad (Kathmandu) by various organizations like Delhi Productivity Council, New Delhi on the "Role and Functions of Vigilance and Disciplinary Proceedings" during Dec, 2013.

As per the Action Plan, surprise and regular checks were conducted besides study of files. Irregularities and omissions under the provisions of the rules are identified and improvements in the systems are suggested. Based on the observations of Vigilance, recoveries were made from the contractors bills for not conforming to the contractual terms. During the year, 72 surprise checks, 72 regular inspections and 24 CTE type inspections were conducted.

Complaints received were taken up for investigation and necessary disciplinary action wherever required was recommended.

A Training Programme for the new incumbents has been conducted at the CBI Academy Ghaziabad so that they acquaint themselves with the processes & procedures to help them in discharging their duties as Vigilance Officers.

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. E-procurement cell in the Engineering Department has been set-up recently in November 2013.

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.20131.65 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.

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 was conducted on 19.10.2013 and ISO certificate was extended upto 09.02.2016.

In-house quarterly magazine of the Vigilance department "Sphoorthy" from the year 2013 - 14 has been published being released in the Vigilance Awareness Week 2013.

The Vigilance Awareness Week was observed from 28.10.2013 to 02.11.2013 with the theme "Promoting Good Governance - Positive Contribution of Vigilance". A talk on "Good Governance" by Justice N. Santosh Hegde, Former Lok Ayukta, Karnataka was organized. During the week, a workshop on "Good Governance" for officers of NMDC from all across the units of NMDC was conducted by Shri M.N. Rao, Director, Centre for Good Governance, Hyderabad. On the concluding day, a lecture by Dr. Y.R.K. Reddy, Advisor and Professional Speaker in Corporate Governance Policy was organized.

A training program was also organized in March, 2014 by the Vigilance Department through M/s TQ Services of Tata Projects Ltd. on "Welding and Painting Inspection" at NISP, Nagarnar for the benefit of our officers in the field of supervising fabrication, quality, conducting inspections at the vendor sites, site inspections etc.

21.0 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 2014, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii) 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.

22.0 DIRECTORS

The following Directors ceased to be Directors on the Board of the Company for the year under review:

i) Shri R.N. Aga, Independent Director 02.12.2013

ii) Mrs. Parminder Hira Mathur, Independent Director 02.12.2013

iii) Shri D. Rath, Independent Director 02.12.2013

iv) Shri C.S. Verma, Chairman-cum-Managing Director 21.04.2014

Shri Narendra Kothari assumed charge as Chairman-cum-Managing Director of the Company in terms of Order No.4(3)/2013-RM-I (Vol-II) dated 17.04.2013 of Ministry of Steel, Government of India w.e.f. 21.04.2014.

The Board places on record its deep appreciation for the valuable contribution made by Shri R.N. Aga, Mrs. Parminder Hira Mathur, Shri D. Rath and C.S. Verma during their tenure on the Board of the Company.

Shri S.K. Das, Director (Commercial) shall be superannuating on 31.08.2014. Accordingly, Shri S.K. Das is not seeking re-appointment in the ensuing Annual General Meeting of the Company. Hence, the re- appointment of Shri S.K. Das is not included in the notice convening the 56th AGM.

23.0 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 2013-14:

Sl.No. Unit Statutory Auditors

1. Head Office, M/s. Venugopal & Chenoy R&D Center, Chartered Accountants SIU & Consolidation 4-1-889/16/2, Tilak Road HYDERABAD 500 001

2. Kirandul M/s. Brahmayya & Co, Bacheli Chartered Accountants Raipur "Suhasini", 10-50-24 NISP, Jagdalpur Siripuram Jn. Central Work Shop VISAKHAPATNAM-530 003

Vizag Office

3. Donimalai M/s.P K Subramaniam and Co, Chartered Accountants 11-5-23, Karthik Complex Above Vijaya Bank, Bresthwarpet RAICHUR-584 001

4 Panna M/s Gopal Gupta & Co, Chartered Accountants, TF-6 (Third Floor), Vinayak Central Plaza, 179C/40, Mahatma Gandhi Marg, Civil Lines, ALLAHABAD - 211001

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. Cost Audit: Pursuant to Section 233B of the Companies Act, 1956, your Company carried out an audit of cost records relating to iron ore product, diamond and sponge iron product. The Company appointed M/s. Prasad & Bharathula Associates, Cost and Management Consultants as cost auditor with due approval of the Central Government to audit the cost accounts of the Company for the Financial Year ending 31st March, 2014. The cost audit report for the Financial Year 2012-13 was filed with Ministry and Corporate Affairs on 26.09.2013. The due date for filing the cost audit report for the Financial Year 2013-14 is September 27, 2014 and the report is yet to be filed.

24.0 CORPORATE SOCIAL RESPONSIBILITY (CSR)

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.

An amount of Rs.126.85 Cr. amounting to 2% of PAT of previous year i.e. 2012-13 has been allocated for CSR activities of 2013-14. Apart from this an amount of Rs.44.20 Cr. of unspent CSR fund of 2012-13 has been carried forward to 2013-14. Thus, the total annual CSR Budget for 2013-14 is Rs.171.05 Cr. Against this budget, an amount of Rs.152.85 Cr. has been spent on various CSR activities during the year 2013-14.

A Quick Retrospective of Major Initiatives in Vogue is as follows:

1. Education

Balika Siksha Yojana

NMDC has introduced a focused initiative called "Balika Siksha Yojana" for the benefit of the tribal girl students of Bastar region. Under this Yojana, the girl students are being sponsored for various academic and professional courses in Engineering, Medicine, BDS, Management, Nursing, Diplomas etc. The entire expenditure is borne by NMDC.

In the first year, (i.e.2011-2012) 25 tribal girls from Bastar region have been admitted to Nursing courses in M/s Apollo Hospitals, Hyderabad. During the academic years 2012-13 & 2013-14 second batch & third batch of 40 girls each have been sponsored in GNM & B.Sc. nursing courses at Apollo Hospitals, Hyderabad.

Siksha Sahayog Yojana

NMDC Siksha Sahayog Yojana, a unique scheme granting scholarships to the poor Tribal and SC students of 5 (Five) districts of Bastar region, Chhattisgarh and Karnataka has been extended to about 11,000 students to continue academic pursuit beyond 8th class upto Graduation in Engineering/Medicine. Under this scheme, scholarship is granted from class IX onwards till they pursue their graduation and the amount is paid through their individual accounts in Pos/Banks.

A survey has brought out that this has been widely accepted and has started positively impacting the students and also their families. The eligibility criteria during 2012-13 were relaxed to 40% pass marks in the qualifying examination to cover the maximum number of students which has resulted in distribution of 18000 scholarships. During the year 2013-14, 16472 scholarships were distributed.

Education Improvement program

NMDC has taken up a 3 year education improvement program in 84 Govt. Primary schools in Dantewada block of South Bastar district aimed at reducing drop-out rate, improve education standards etc. through special initiatives. A total of 4200 students, mostly tribals, are benefitting from this program. Out of the identified 1077 out of school children, 328 have been mainstreamed to formal schooling.

Polytechnic College at Dantewada

An amount of 31.94 crore has been sanctioned for constructing a Polytechnic College at Dantewada. NMDC has requested Chhattisgarh Govt. to exempt tribal students of Bastar from central counseling in admissions to Polytechnic College. Considering NMDC''s request Govt. of Chhattisgarh has granted administrative approval by delinking the tribal students of Bastar region from central counseling. Plans are being drawn to start new trades from the ensuing academic year of 2014-15.

2. Infrastructure Development

- Construction of SC/ST Girls Hostels at Ongole & Guntur with a contribution of Rs.31.50 lakh each in Partnership with Govt. of A.P. has been completed.

- Strengthening PHCs in Bellary in partnership with Govt. of Karnataka by upgrading them/equipping them with various necessary/desirable medical equipment at a cost of Rs.169.00 lakh. Additional fund of Rs.34.41 lakh required has been released.

- NMDC has partnered with State Govt. of Chhattisgarh for construction of Gaurav Path - 4 way lane at Dantewada at a cost of Rs.1300.00 lakh.

- Electrification related works in 67 villages of Bastar District at a cost of Rs.252.48 lakh.

- Construction of 30 Community Centres in 30 villages of Bastar District at a cost of Rs.30.00 lakh each at a total cost of Rs.900.00 lakh.

- Farmer''s development scheme at Dantewada was taken up in partnership with CG Govt. @ total expenditure of Rs.1500.00 lakh. The scheme includes providing fencing to farmers land, digging of borewells & installation of hand pumps. An amount of Rs.1200.00 lakh has been released till date.

3. Healthcare

NMDC runs three hospitals at Project sites, in collaboration with M/s Apollo and M/s Yashoda Hospitals offering free medical treatment not only to staff but to the local communities as well addressing the needs of an average 90000 out-patients &

9000 in-patients from local tribals every year.

NMDC operates ''Hospital on Wheels'' (HoW) service in Bailadila benefitting about 40000 tribal villagers in 45 villages by providing free medi-care facilities at their doorsteps.

4. Drinking water Facility

NMDC has partnered with State Govt of Karnataka for providing Drinking Water Facility in 7 villages of Bangalore Rural District, Karnataka at a cost of Rs.78.34 lakh.

5. Integrated Development of Villages

NMDC has identified 58 tribal villages around its Bailadila Projects in South Bastar (Dantewada) district and in the first phase, developmental activities in the areas of education, agriculture, healthcare and awareness, income generation through acquisition of income-earning skills, formation of SHGs, lift irrigation and modern tools & techniques of cultivation have been undertaken in 8 villages. Requisite tools and equipment are also provided to the beneficiaries. This has been extended to additional 10 villages around Kirandul Project, thereby bringing the total number of villages for integrated development to 18. Plans are on the anvil to include another 8-10 villages under the programme in the current financial year.

6. Skill Development

- Skill development training program in bamboo, bell metal & tumba art is being organized in Bastar District, CG to provide training to 460 unemployed tribal youth. An amount of Rs.31.60 lakh has been spent till date.

- Another skill development training program in installation of hand pumps & repairs of hand pumps for the development of 1260 youth of Bastar has been organized. An amount of Rs.59.92 lakh has been spent on training.

- NMDC has launched livelihood-linked skill development program leading to employment in various trades viz., welding, electrician, fitter, sales & marketing, data entry operator in partnership with IL&FS at Balrampur, Uttar Pradesh. Under this program, 1000 unemployed youth will be trained. The program guarantees placement to at least 75% of the successful trainees.

25.0 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.

A close monitoring of the RTI applications received is done to ensure that the replies are sent in time. During the year 2013-14, the Company received 201 applications out of which 13 were only rejected while providing the details for 188 applications.

26.0 R&D ACTIVITIES

Particulars required under the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 are at Annexure-I.

27.0 (a) CONSOLIDATED FINANCIAL STATEMENTS

In terms of Listing Agreement with Stock Exchanges, the duly audited Consolidated Financial Statements forms part of Annual Report.

(b) 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.

28.0 CORPORATE GOVERNANCE

The Board of Directors at their 427th meeting have approved the Policy on Corporate Governance. A separate report on Corporate Governance is enclosed at Annexure-III.

29.0 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.

30.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS

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

31.0 BUSINESS RESPONSIBILITY REPORT

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

32.0 AWARDS RECEIVED BY THE COMPANY

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

1. On 28th May''2013, NMDC received ''Dun & Bradstreet Corporate Awards 2012'' as Best Mining Company Under the sector Mining. Received top Indian Company under Mining Sector from Dun & Bradstreet Corporate Awards 2012. This award was presented by Sri Jayant Kumar Banthia, Chief Secretary, Govt. of Maharashtra.

2. On 29th Jun''2013, NMDC received ''CMSB Public Sector Enterprise / Government undertaking Excellence in CSR Award 2013'' from Council for Media and Satellite Broadcasting, New Delhi.

3. On 24th Jul''2013 CMD, NMDC received PSU Award in "Human Resource Utilization'' from Sri Praful Patel, Hon''ble Minister for Heavy Industries and Public Enterprises, Govt. of India, organized by Governance Now, News Magazine.

4. On 13th Sep''2013, NMDC received "Best Organization supporting Quality Circle Movement" Award from Sri Sarvey Satyanarayana, Hon''ble Minister of State for Road Transport and Highways, Govt. of India, organized by Quality Circle Forum of India, Hyderabad Chapter.

5. On 2nd Apr''2014 CMD, NMDC received ''Most Efficient Navratna Award'' from Sri TKA Nair, Advisor to the Hon''ble Prime Minister of India organized by Dalal Street Investment Journal, New Delhi.

33.0 ACKNOWLEDGEMENT

Your Directors gratefully acknowledge the support, cooperation and guidance received from the Ministry of Steel, Ministry of Mines and Ministry of Forests & Environment and other Departments of Government of India and the State Governments of Andhra Pradesh, Chhattisgarh, Karnataka, Madhya Pradesh 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 : 30.05.2014

---

Mar 31, 2013

Dear Members,

The 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 PHYSICAL PERFORMANCE

2.1 Production

Product Achievement Percentage change

2011-12 2012-13

Iron Ore (lakh tonnes) 272.60 271.84 -0.28%

Diamond (Carats) 18,043.44 31,533.39 75%

Sponge Iron (Tonnes) 37,260.00 36,289.00 -3%

Notes:

In respect to DMP, Panna:

1. Plant operation stopped from 01.07.2010 due to expiry of supplementary lease on 30.06.2010. Stage-I approval was cleared on 04.01.2011. The operations resumed w.e.f. 17.06.2011.

2. Obtained temporary permission for operation till 22.11.2011 and further extension was accorded upto 20.06.2012.

3. Received the final clearance on 14.06.2012 from MoEF for a period of 5 years upto 30.06.2015. The Mine and Plant are in operation.

3.0 SALES OF IRON ORE

Particulars Physical Value

(in lakh tonnes) (Rs. in crore) Achievement % of Achievement % of 2011-12 2012-13 change 2011-12 2012-13 change

Domestic 269.16 246.72 -8% 10,894.63 9,602.72 -12%

Export through MMTC 3.85 16.02 316% 272.93 955.99 250%

Total Sales 273.01 262.74 -4% 11,167.56 10,558.71 -5%

3.1 Other Sales

Products Achievement

2011-12 2012-13

a) Diamond

Sales (carats) 8,085.00 17,862.57

Value (Rs. in crore) 9.84 28.51

b) Sponge Iron

Sales (tonnes) 33,731.79 37,599.54

Value (Rs. in crore) 65.93 73.50

4.0 FINANCIAL PERFORMANCE

4.1 Operating Results

Parameter Achievement Percentage of change 2011-12 2012-13

Profit Before Tax from continuing operations (PBT) (Rs. in crore) 10,760 9,462 -12%

Profit After Tax (PAT) (Rs. in crore) 7,265 6,342 -13%

Net Worth (Rs. in crore) 24,396 27,505 13%

Book value per share (Rs.) 61.53 69.37 13%

Earnings per Share (Rs.) 18.33 16.00 -13%

4.2 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.

5.0 DEPOSITS

The Company has not accepted any fixed deposits during the year under review.

6.0 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.

7.0 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.

8.0 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.

After SESA GOA, it is the next iron ore mining Company and the first CPSE under the administrative control of Ministry of Steel, Government of India to be included in CNX NIFTY Index.

9.0 NEW PROJECTS & BUSINESS DIVERSIFICATIONS

9.1 Projects under construction

9.1.1 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.

9.1.2 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.

9.1.3 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.

9.1.4 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.

9.1.5 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.

9.1.6 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.

9.1.7 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.

9.1.8 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.

9.1.9 1.2 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.

9.1.10 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.

9.1.11 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.

9.1.12 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).

9.2 Other initiatives

9.2.1 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.

9.2.2 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.

9.2.3 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.

9.2.4 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.

9.2.5 NMDC Global Strategic Alliances 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.

9.3 Foreign Venture

9.3.1 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.

9.3.2 Australia 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.

9.3.3 Coking Coal

Your Company had reviewed various acquisition opportunities in coking coal in Mozambique, USA, Russia, Australia and Canada.

9.4 Leases for Minerals

9.4.1 Iron Ore

9.4.1.1 In respect of Bailadila-1 & 3 The PLs are as under:

9.4.1.2 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.

9.4.1.3 In Jharkhand Sasangada:

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.

9.4.1.4 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 I 7 ML application (Aug 2007) in Chitradurga, n Bellary, Tumkur and Bagalkote Districts. I

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).

9.4.1.5 In Odisha

The Company is pursuing for ML for Mankadnacha iron ore.

9.4.1.6 In Rajasthan

The Company is pursuing for PL applied near Malikhera village in Bhilwara District for iron ore.

9.4.2 Gold

9.4.2.1 In Jharkahand

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

9.4.3 Diamond

9.4.3.1 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.

9.4.3.2 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.

Tikamgarh RP

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.

9.4.4 Platinum Group of Elements

9.4.4.1 In Uttar Pradesh

The Company is pursuing for PLs for Tsganan area, Dangli and Dangli RF in Lalitpur district.

9.4.5 Coal 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.

9.4.6 Bauxite

9.4.6.1 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.

9.4.7 Dolomite:

9.4.7.1 In Chhattisgarh

The Company is pursuing ML application for Sadartera Dolomite Block in Bastar District.

10.0 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.

10.1 J&K Mineral Development Corporation Ltd (JKMDC)

The Annual Report of the subsidiary Company is annexed.

10.2 NMDC-CMDC Ltd (NCL)

The Annual Report of the subsidiary Company is annexed.

10.3 NMDC Power Ltd. (NPL)

The Annual Report of the subsidiary Company is annexed.

10.4 Jharkhand National Mineral Development Corporation Limited (JNMDC)

The Annual Report of the subsidiary Company is annexed.

10.5 NMDC SARL, Madagascar

The Annual Report of the subsidiary Company is annexed. The wholly owned subsidiary Company is under closure.

10.6 Legacy Iron Ore Co. Ltd., Australia

It is a listed Company in Australia. The Annual Report of the subsidiary Company is annexed.

11.0 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, GoI 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.

11.1 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, 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.

12.0 SAFETY

Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectors are nominated / appointed for mining operations, mechanical and electrical installations as per statutory requirements.

Mine Level Tripartite Safety Committee Meetings 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.

13.0 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.

OHS Activities:

Occupational Health Services have been provided with adequate manpower and infrastructure and are functioning in full-fledged manner at all the projects, headed by Qualified Doctors trained in OHS at Central Labour Institute, Mumbai. Periodical Medical Examination under statute is carried out regularly in all the projects, with a planned programme.

14.0 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.

15.0 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.

16.0 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.

17.0 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.

18. DETAILS REQUIRED TO BE FURNISHED IN TERMS OF MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED)

Necessary details required to be mentioned in the Annual Report in compliance with provisions of MSMED Act are as follows:

(Rs. In lakhs)

Sl. No. Particulars Year 2012-13

a. Total Annual Procurement (includes H.O., Kirandul, Bacheli, Donimalai, Panna & SIU). 30845.03

b. Total Value of Goods & Services procured from MSEs (including MSEs owned by SC / ST Entrepreneurs). 1711.33

c. Total Value of Goods & Services procured from only MSEs owned by SC / ST Entrepreneurs. Not Available

d. %age of Procurement from MSEs (including MSEs owned by SC/ ST Entrepreneurs) out of total Procurement. 5.55%

e. %age of Procurement from only MSEs owned by SC / ST Entrepreneurs) out of total Procurement. Not Available

f. Total No. of Vendor Development Programme for MSEs 03

g. No. of MSE Vendors Registered against MSE Vendor Development Program. 07

19.0 MANPOWER

19.1 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.

19.2 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.

19.3 Strength of SCs & STs as on 31st March 2013

1. Total number of employees = 5777

2. Scheduled Castes amongst them = 1021

3. Scheduled Tribes amongst them = 1273

4. Total SCs and STs = 2294

5. Physically challenged employees = 40

19.4 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.

NIL

19.5 Staff Welfare activities

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

19.6 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.

20.0 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.

21.0 VIGILANCE

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.

22.0 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;

ii) 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.

23.0 DIRECTORS

During the year under review, the following were appointed as Directors of the Company pursuant to orders of Ministry of Steel, Government of India:

i) Shri C.S. Verma, CMD w.e.f. 25.05.2012

ii) Shri E.K. Bharat Bhushan, Special Secretary & Financial Advisor, MoS 26.07.2012

iii) Shri J.P. Shukla, Joint Secretary, MoS 30.07.2012

iv) Shri Syedain Abbasi, Joint Secretary, MoS 18.10.2012

v) Dr. Noor Mohammad, Independent Director 26.11.2012

vi) Shri Vinai Kumar Agarwal, Independent Director 26.11.2012

vii) Shri Mahesh Shah, Independent Director 26.11.2012

viii) Shri Vinod Kumar Thakral, Additional Secretary & Financial Advisor, Mos 07.06.2013

The following Directors ceased to be Directors on the Board of the Company for the year under review:

i) Shri N.K. Nanda, CMD upto 24.05.2012

ii) Shri Y.K. Sharma, Independent Director 18.06.2012

iii) Shri Abdul Kalam, Independent Director 18.06.2012

iv) Shri K.S. Raju, Independent Director 18.06.2012

v) Shri U.P. Singh, Joint Secretary, MoS 16.07.2012

vi) Shri S. Machendranathan, Additional Secretary & Financial Advisor, MoS 16.07.2012

vii) Shri J.P. Shukla, Joint Secretary, MoS 18.10.2012

viii) Shri E.K. Bharat Bhushan, Special Secretary & Financial Advisor, MoS 28.04.2013

The Board places on record its deep appreciation for the valuable contribution made by Shri Y.K. Sharma, Shri Abdul Kalam, Shri K.S. Raju, Shri U.P. Singh, Shri S. Machendranathan, Shri J.P. Shukla and Shri E.K. Bharat Bhushan during their tenure on the Board of the Company.

24.0 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 2012-13:

Sl. No Unit Statutoty Auditors

1. Head Office M/s. VENUGOPAL & CHENOY R & D Center, SIU & Consolidation Chartered Accountants, 4-1-889/16/2,Tilak Road, HYDERABAD 500 001 Andhra Pradesh

2. Kirandul M/s. BRAHMAYYA & CO, Bacheli Chartered Accountants NISP, Jagdalpur "Suhasini", 10-50-24, Sripuram Junction, Central Work Shop Visakhapatnam -530 003 Vizag Office Andhra Pradesh

3. Donimalai M/s. P K SUBRAMANIAM AND CO, Chartered Accountants 11-5-23,Karthik complex, Above Vijaya Bank, Bresthwarpet, RAICHUR-584 001 Karnataka.

4. Panna M/s. GOPAL GUPTA & CO, Chartered Accountants 588, Mutthiganj, Ist Floor, Allahabad, Allahabad - 211 003.

b. Cost Audit

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.

25.0 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:

1. Education

- 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. Healthcare

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'' (HoW) service in Bailadilla benefitting 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.

A close monitoring of the RTI applications received is done to ensure that the replies are sent in time. The details of RTI applications received during the period 01.04.2012 to 31.03.2013 are as follows:

Month No. of Applications Information Rejected Received Provided

Apr-2012 (Including 14 Pending) 37 24 03

May-2012 31 21 06

Jun-2012 16 20 Nil

Jul-2012 14 14 03

Aug-2012 16 14 02

Sept-2012 18 13 02

Oct-2012 18 12 01

Nov-2012 19 22 01

Dec-2012 14 17 01

Jan-2013 12 10 02

Feb-2013 15 10 02

Mar-2013 17 16 01

Total 227 193 24

Pending as on 01.04.2013 - 10 Requests

27.0 R&D ACTIVITIES

Particulars required under the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 are at Annexure-I.

28.0 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.

29.0 CORPORATE GOVERNANCE

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.

30.0 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.

31.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS

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

32.0 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.

33.0 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.

iii) 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 1 7th Feb''201 3, Di rector(Per) received "Global HR Excellence Award" during The World CSR Congress.

xiv) On 18th Feb''201 3, 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.

34.0 ACKNOWLEDGEMENT

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

(C.S. VERMA)

Chairman-cum-Managing Director

Place : Hyderabad

Date : 03.07.2013

---

Mar 31, 2012

The Directors are pleased to present the 54th Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31 March 2012 and the Report thereon by the Comptroller and Auditor General of India.

1.0 PERFORMANCE HIGHLIGHTS

The year under review has been a milestone year in which the Company has established yet again, new landmarks in its performance in various parameters. The Company has recorded turnover of Rs.11,261.89 crores mark and achieved Profit after Tax (PAT) of Rs.7,256.39 crores, which was the highest ever in its history.

The major performance highlights are summarized as under:

- Turnover for the year under review was Rs.11262 crores compared to Rs.11369 crores in the previous financial year 2010-11 recording a decrease of 0.94%.

- Profit before tax from continuing operations was Rs.10,760 crores compared to Rs.9726 crores in the previous financial year 2010-11 recording an increase of 11%.

- Profit after tax was Rs.7,265 crores compared to Rs.6499 crores in the previous financial year 2010-11 recording an increase of 12%.

- Net worth increased to Rs.24,396 crores as on 31.03.2012, 27% higher than Rs.19200 crores in the previous financial year 2010-11.

- 1st Interim Dividend @ 100% on the paid up equity share capital of the Company aggregating Rs.396.47 crores was paid by the Company. 2nd Interim Dividend @ 100% on the paid up equity share capital of the Company aggregating Rs.396.47 crores was also paid by the Company. The total interim dividends paid by the Company aggregates Rs.792.94 crores.

- As an MoU signing PSE with the Government of India, your Company's performance during the year qualifies for "Excellent" rating.

- Supply of Iron Ore to domestic industries recorded 269.16 lakh tonnes as against the previous year supply of 237.52 lakhs tonnes, recording an increase of 13.32%. Total exports of Iron Ore during the year was 3.85 lakh tonnes against 25.63 lakh tonnes in the previous financial year 2010-11 recording a decrease of 84.98%.

- Sponge Iron production during the year under review was 37,260 tonnes as against previous year 38,962 tonnes.

- Diamond production for the year under review was 18043.44 carats as against previous year 10,866 carats.

- The Company has completed acquisition of 50% stake in Legacy Iron Ore Ltd., a listed Australian Company engaged in exploration of iron ore and other minerals in Australia. Acquisition of 50% stake in Legacy marks the Company's first foray in international arena and shall serve as the platform for other international acquisitions.

- A wholly owned subsidiary Company by the name of NMDC Power Ltd. has been incorporated on 12.12.2011 for the purpose of setting up of a Power Plant for supply of power to 3 MTPA Integrated Steel Plant being constructed at Nagarnar.

2.0 PHYSICAL PERFORMANCE

2.1 Production

Product Achievement Percentage change 2010-11 2011-12

Iron Ore (lakh tonnes) 251.55 272.60 8%

Diamond (Carats) 10865.93 18043.44 66%

Sponge Iron (Tonnes) 38962.00 37260.00 (-) 4%

Notes:

a) The Hon'ble Supreme Court of India has granted permission for operation of Diamond Mining Project upto 13.12.2020. However, on 01.07.2010, supplementary lease has expired. Accordingly, application has been submitted for Forest Clearance. Stage-I approval was cleared on 04.01.2011 and final / stage-II approval is awaited.

b) Silica sand mining operations are suspended since November, 2007 due to commercial reasons and the Lalapur Silica sand mines are kept under care and maintenance.

2.2 Sales of Iron Ore

Particulars Physical Value (in lakh tonnes) (Rs. in crore) Achievement % of Achievement % of 2010-11 2011-12 change 2010-11 2011-12 change

Domestic 237.52 269.16 13.32 9753.85 10894.63 12.00

Export through MMTC 25.63 3.85 (-)84.98 1531.48 272.93 (-)82.00

Total Sales 263.15 273.01 3.75 11285.33 11167.56 (-)1.00

2.3 Other Sales

Products Achievement 2010-11 2011-12

a) Diamond

Sales (carats) 18421.22 8085.00

Value (Rs. in crore) 12.88 9.84

b) Wind Power

Sales (lakh KWh) 137.11 -

Value (Rs. in crore) 4.48 -

c) Sponge Iron

Sales (tonnes) 39775.00 33731.79

Value (Rs. in crore) 63.12 67.29

3.0 FINANCIAL PERFORMANCE

3.1 Operating Results

Parameter Achievement Percentage change 2010-11 2011-12

Profit Before Tax from continuing operations (PBT) (Rs. in crore) 9727 10760 11%

Profit After Tax (PAT) (Rs. in crore) 6499 7265 12%

Net Worth (Rs. in crore) 19200 24396 27%

Book value per share (Rs.) 48.43 61.53 27%

Earnings per Share (Rs.) 16.39 18.33 12%

3.2 Profit & Dividend

During the year under review, your Company has earned profit before tax from continuing operations of Rs.10,760 crores on a turnover of Rs.11,262 crores in comparison with those of previous year's achievement of Rs. 9726 crores and Rs.11369 crores.

The Company has paid 1st interim dividend @ 100% on the equity shares of Re.1/- each aggregating Rs.396.47 crores and 2nd Interim Dividend also @ 100% on the paid up equity share capital of the Company aggregating Rs.792.94 crores. The Board has recommended subject to shareholder's approval, payment of final dividend @ 250% on the paid up equity share capital of the Company aggregating Rs.991.18 crores. The total dividend payout for the year under review aggregates Rs.1784.12 crores. The share of Government of India stands at Rs.1605.71 crores.

4.0 DEPOSITS

The Company has not accepted any fixed deposits during the year under review.

5.0 Hon'ble Supreme Court Verdict on mining in Karnataka

The Hon'ble Supreme Court suspended mining operations and transportation of iron ore in the area admeasuring 10868 ha in Bellary district vide its order in SLP(C) No.7366-7367/2010 dated 29.07.2011. NMDC complied with the said order and stopped all the mining activities including transportation of iron ore in both the mines i.e. Donimalai and Kumaraswamy.

Subsequently, Hon'ble Supreme Court of India vide the hearing held on 05.08.2011 made the following order:

(i) A macro level Environment Impact Assessment (EIA) study is to be undertaken by Indian Council of Forestry Research and Education (ICFRE) in collaboration with Wild Life Institute of India, FSI and such other domain experts as may be decided by ICFRE in consultation with Ministry of Environment and Forests (MOEF) in respect of Bellary District. This report shall be submitted within 3 months.

(ii) In order to balance the environmental concerns with economic development and keeping in mind mandate of Article 21 of the Constitution including inter generational equity, the Court under extraordinary circumstances allowed NMDC alone to operate its mine at Donimalai (mining lease area 608 ha) and KIOM (mining lease area 647.5 ha) to the extent of providing 1 million ton per month commencing on 6th August 2011 till further orders.

(iii) It has also been clarified that no part of these production shall be exported outside India till further orders. NMDC will sell the production to the states in consultation with Ministry of Steel, Govt. of India.

The Supreme Court order has made it possible to restart Kumaraswamy mines also where mining was stopped for quite some time due to Karnataka High Court order. As directed by Supreme Court, iron ore from Donimalai is sold through e-auction only conducted by Central Monitoring Committee.

5.1 Subsequently, in the hearing of the Forest Bench held on 13.04.2012 the Hon'ble Supreme Court inter alia directed as under:

i) The boundaries of the mining lease in respect of NMDC mines at Karnataka shall be as per the findings of the Joint team and as modified by Central Empowered Committee (CEC);

ii) In the larger public interest the mining operations in the two leases of NMDC has been permitted to be continued. However, NMDC will be liable to deposit penalty / compensation as payable for the mining leases falling in category 'B';

iii) The sale of iron ore should continue to be through E-Auction and the same is to be conducted by the Monitoring Committee as constituted by the Supreme Court;

iv) The system of sale through the Monitoring Committee may be reviewed after two years. The present members of the Monitoring Committee should continue for a period of next 2 years.

v) A ceiling of 25 million metric tonnes (MMT) has been fixed from all mining leases in Bellary District. A ceiling of 5 MMT for production of iron ore from all the mining leases in Chitradurga and Tumkur Districts has been prescribed;

vi) Preparation, Implementation and Monitoring of the Reclamation and Rehabilitation Policy will be under the supervision of Central Empowered Committee.

6.0 NEW PROJECTS & BUSINESS DIVERSIFICATIONS

6.1 Projects under construction

6.1.1 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 80% work is completed. The balance work will be completed and the project will be commissioned during 2012-13.

6.1.2 Uniflow System at Bacheli

East Coast Railways has been assigned the work of execution of the "construction of Uniflow Despatch Line at Bacheli on K.K Line of East Coast Railways of Waltair Division for Civil, OHE and S&T Works" as a "Deposit Work" for which an amount of Rs.30.92 crore has been deposited with East Coast Railways towards the estimated cost of the work based on the detailed estimate for Civil, S&T and OHE submitted by East Coast Railways.

The work has been completed on 31.03.2012 and trial run/commissioning of the line is awaiting clearance from Commissioner of Railway Safety.

6.1.3 Slurry Beneficiation and 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 State/National Highways with a provision of partial off-take at Nagarnar for making Pellets required for feeding to NMDC's proposed Steel Plant at Nagarnar. Techno Economic Feasibility Report (TEFR) is prepared by Mecon. IFCI carried out the Due Diligence of the TEFR and submitted the report during January, 2012. As a 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 is under active consideration of NMDC's Board.

6.1.4 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) and the scheduled date of commissioning of the Plant is 14.08.2013. Consultancy assignment for construction of Tailing Dam of capacity of 6.2 million tonnes is awarded on WAPCOS. Work of award of power supply and water supply packages are in various stages.

6.1.5 Kumaraswamy Iron Ore Project

To compensate the depleting reserve of Donimalai Iron Ore Mine and augmenting production capacity towards achieving the target of 50 MTPA, 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 are planned to be placed by May'2012. Construction work is in progress. The project is scheduled to be complete by June 2013.

6.1.6 Windmill in Karnataka

Wind Mill in Karnataka has been stopped since 15th October, 2010, due to non-availability of forest clearance for part of the evacuation line, laid by Suzlon, who has set up the wind farm. While the application for forest clearance is pending with MoEF, Suzlon is also planning to lay another evacuation line through alternate route to restart the wind mill at the earliest.

6.1.7 Low Silica Limestone Project, Arki (HP)

Mining Lease of the Arki Lime Stone Deposit is valid upto 7th August 2011. Mining lease renewal application was submitted on 23.04.2009 and the same is under consideration of Addl. Chief Secretary (Industries), Shimla. MOEF, New Delhi has accorded Environmental Clearance on 22.12.2010 subject to transportation of material by road for 1st five years and then by conveyor. An application has already been filed at State Govt. of H.P. on 3rd March 2011 for reconsideration as earlier State Govt. of H.P. has not agreed for transportation of limestone by road.

1st Stage Forest Clearance of Arki lease has already been received from MoEF on 15.12.2011 and action has been taken to obtain demand note from DFO, Kunihar towards compensatory afforestation, NPV etc.

For land acquisition, on 23.02.2011, Revenue Dept, of Govt, of H.P. has issued the notification for exemption in the 1851=03 Bigha Private Land under Clause (h) of section-5 of the Himachal Pradesh Ceiling on Land holding Act, 1972. Matter is being pursued for issuing the notification under section-4 of Land Acquisition Act.

Under the MoU between NMDC and SAIL, M/s Tata Consulting Engineers Limited (TCE), Kolkata was appointed as a consultant and has submitted the Final draft of feasibility Report of Arki Limestone Deposit and the same is being submitted to the respective Board of NMDC and SAIL. The Mining Plan with Progressive Mine Closure Plan earlier submitted to IBM Regional office at Dehradun and further to the office of the Controller of Mines (North) IBM, Ajmer has been scrutinized and the approval of the mining plan has been received.

6.1.8 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 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 favor 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.

M/s Dasturco is appointed as EPCM consultant. The Project is planned to be executed in four major packages. Soil investigation work Completed. Work order is placed for "Balance civil works" package. Tender enquiry floated for main technological package and discussions are underway to clear commercial issues.

Meanwhile, a PIL has been filed against Panthal Magnesite Project in Hon'ble high court of J&K in March'2012, which has issued an interim order for maintaining "status quo" of the project. NMDC / J&KMDC have initiated legal proceedings and has appointed senior advocate of J&K for filing the case.

6.1.9 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. Second stage clearance is awaited. Project is scheduled to be completed in 27 months after obtaining statutory clearances.

6.1.10 1.2 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 is divided into Six Packages. The estimated capital expenditure is Rs.572 Crores. Orders placed for Site leveling, Misc. Building, MRSS and Pelletization Package and Beneficiation packages. Works are in progress. Project is scheduled to be complete by April 2013.

6.1.11 3.0 MTPA Integrated Steel Plant in Chhattisgarh

As you are aware, your Company is setting up a 3.0 MTPA Steel Plant at Nagarnar near Jagdalpur, Chhattisgarh at an estimated cost of Rs.15,525 Crore where the Company is in possession of about 1801 acres of land. Formal allotment of additional 102.64 acres of Government Land is under process in the Government of Chhattisgarh. Besides, diversion of about 63.52 acres of forest land for utilization for setting up of the Steel Plant is also under process in the government. As such in total your Company will be in possession of about 1968 acres of land at Nagarnar for the Plant and Township.

All necessary statutory clearances have been obtained. Rail Transport Clearance was received on 17.02.2009.

Railway consultants were appointed on 29.12.2009 and detailed site survey for the rail line connectivity was completed on 16.05.2010 by the Consultants. East Coast Railway, Bhubaneswar cleared the feasibility report on 04.08.2010 for preparation of DPR. Accordingly, the DPR was submitted to East Coast Railway on 20.12.2010 for their approval which is under process. Further to the discussions with East Coast Railway officials in 25th November 2011, Engineering Scale Plan has been submitted to East Coast Railway, Waltair on 28.02.2012 which will form a part of the DPR.

State Govt, of Chhattisgarh has sanctioned water and power for construction as well as for operation of the plant. Chhattisgarh State Power Transmission Company Limited will construct power line from Jagdalpur to Nagarnar on deposit basis for which necessary charges have already been paid.

Engineering Consultancy and Project Monitoring Services contracts have been awarded to M/s MECON Ltd. Enabling works packages like site levelling, Plant Entrance Road, Construction water, Construction power and construction of plant boundary wall were awarded and works are in progress at site.

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 and 400/220 KV substation at Jagdalpur. The cost of construction of 400 KV transmission line from Raipur to Jagdalpur will be equally shared by NMDC & CSPTCL. PFC Consultancy Limited (A Public Sector Company) has been engaged as consultant for setting up a Coal based power plant of 250 MW capacity on Joint Venture basis to supply power to steel plant and remaining other units of NMDC. The JV partner will be selected through competitive bidding. A Special Purpose Vehicle (SPV) called "NMDC Power Limited "has been formed for the purpose.

Out of the 9 Major Technological packages, viz. Sinter Plant, Blast Furnace Complex, Raw Material Handling System, Coke Oven Plant, By Product Plant packages have been awarded. All orders have been issued. Civil construction works for major technological packages have been commenced at site. Auxiliary packages like Permanent water, Power and Blowing Station, Turbo Blowers and Main Receiving Sub -station are in final stages of order placement.

6.1.12 Steel Plant at Bellary, Karnataka

In line with 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 Area Development Board (KIADB) is under process subsequent to publication of statutory notifications in the gazette of Karnataka in this respect. Your 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 accorded approval towards allotment of water and power for operation of the proposed steel plant. M/S MECON have been engaged as consultant for preparation of Techno Economic Feasibility Report (TEFR).

6.2 Other initiatives

6.2.1 Bailadila Iron Ore Deposit-13

NMDC formed a Subsidiary Company NMDC-CMDC Ltd. with 49% partnership of CMDC Limited. The JVC was incorporated under the Companies Act, 1956 on 19th June 2008 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. Forest clearance proposal has been returned by MoEF as the area is having high bio-diversity values. IIRBT, Kolkata has been engaged for undertaking Bio-diversity study for approaching to MoEF for restoration.

6.2.2 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 on 30.09.2010 has 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 vide letter dated 30.11.2011 has given the prior approval for grant of ML in favour of NMDC over an area of 646.60 Ha.

Secretary, MRD Govt of Chhattisgarh vide letter dated 13.01.2012 has issued the letter of intent allocating the "precise area" of 646.60 ha to NMDC and asked NMDC to submit the Mine Plan approved by IBM within 6 month of the date of issue. Mining plan preparation is under progress.

6.2.3 Rail Link between Dalli-Rajhara - Raoghat, Jagdalpur Railway Line Project

The levelling 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 Anthagarh which is around 15 kilometers, is in progress. Further, tree felling and other works could not be taken up due to naxal activities.

6.2.4 International Coal ventures (P) Limited (ICVL)

The Joint Venture Company International Coal Ventures (P) Limited (ICVL) has been incorporated between SAIL, NMDC, NTPC, Coal India and RINL.

The objective of the joint venture is to primarily acquire coking and thermal coal assets abroad. Recently it has identified coal projects in Australia, New Zealand and Mongolia. These proposals will be taken forward jointly.

6.2.5 Memorandum of Understanding with Andhra Pradesh Mineral Development Corporation (APMDC), Govt. of A.P. and NMDC Limited for Mineral Exploration in the State of A.P.

NMDC has signed an MOU with Andhra Pradesh Mineral Development Corporation (APMDC) on 50:50 basis for joint exploration work for:

a) Iron ore in Chittur, Kadapa, Kurnool and Karimnagar districts.

b) Gold in Chittur, Ananthapur and Kurnool districts.

6.2.6 NMDC Global Strategic Alliances

Implementation Protocol with Severstal

Your Company has signed an implementation protocol with OAO Severstal for jointly setting-up an integrated steel plant with an initial capacity of 3 MTPA (expandable to 5 MTPA) in Bellary-Hospet area of Karnataka. The proposed partnership will complement the strengths of both the partners with NMDC organising the supply of iron ore and Severstal taking responsibility for supplies of coking coal. The techno-economic feasibility study has been completed by MECON and NMDC has since made significant progress on critical issues such as land acquisition, water allocation etc.

JV with Kopano Ke Matla Investment Company (Pty)

A JV Company, Kopano-NMDC Minerals Pty Ltd. has been incorporated in Johannesburg, South Africa to acquire and develop mineral prospects of steel making and energy raw materials such as Iron Ore, coal and manganese ore.

ITMK3 Based Nugget Plant

The ITMK3 initiative proposes the production of high quality iron nuggets by utilizing iron ore fines and non- coking coal. Your Company has made significant progress on the project by completing the empirical lab testing of the process based on a combination of input raw materials from NMDC's mines and tailing ponds as well as non-coking coal from India. The partners have agreed on setting up the plant at the spare land available with NMDC at Paloncha and executed a protocol agreement to expedite the initiative.

Met/Foundry Coke from Indian Thermal Coal (CARBONITE PROJECT)

Carbonite Acquisition LLC (CAL) have patented Carbonite, the upgraded coal product using variety of coal like bituminous, sub-bituminous etc., while emitting less C02 during the process. CAL expressed interest to be associated with NMDC for developing the technology for producing foundry and blast furnace coke. The development of new technology is basically aimed to upgrade thermal coal to suit to steel production. During July 2011, Dr. Wolfe and his associates continued to produce India Carbonite with simultaneous evaluation of the India coal samples, testing a variety of coal blends and analyzing the Carbonite output. The Carbonite research team is analyzing and utilizing each of the three India coal samples. They are also examining different formulations for briquetting.

Renewable Energy Bio-Mass Plant

NMDC has identified Renewable Energy as an area of interest as a responsible corporate and in line with this objective has explored entry into the Bio Mass based power plant sector. They have suggested that Donimalai site is favorable for installation of a biomass based power plant of minimum capacity of 5 MW, but, the exact capacity may be even 8-10 MW which can be ascertained after a Biomass Assessment Survey and the preparation of Feasibility cum DPR.

6.3 Foreign venture

6.3.1 Gold in Tanzania

In Tanzania, your Company is pursuing the gold exploration works in Bulyang'Ombe and Siga Hill area. NMDC has been granted Retention Licence at Bulyang'Ombe and Siga Hill areas. National Environmental Management Committee (NEMC) has granted Env. Clearance for the Bulyang'Ombe area. The Ministry of Energy & Minerals, Govt of Tanzania has granted 4 ML's in Bulyang'Ombe for a period of 10 years w.e.f. 13.02.2012. NMDC Board has decided that Gold Mining Project at in Bulyang'Ombe will be developed by NMDC.

6.3.2 Iron Ore

NMDC Global in line with its strategic objective of augmenting its resource base of iron ore has progressed in the acquisition of early stage iron ore mineral assets in Australia and Brazil. It now proposes to develop these tenements by leveraging its core competencies in mine exploration and development.

6.3.3 Australia

Acquisition of 50% Equity in Legacy iron Ore, Perth, Australia

NMDC Global has taken the first step towards the realization of its vision of making NMDC a Global Company by acquisition of 50% equity in Legacy Iron ore Limited, an ASX listed entity based in Perth, Australia. Legacy Iron Ore is a vibrant Perth-based Australian Exploration Company, established to search for iron ore and gold deposits. After the entry of NMDC in as a majority shareholder in Legacy, it also proposes to diversify into coal.

Legacy holds highly 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 recently announced JORC inferred category resource of 1.59 billion tonnes @30.2% Fe at its Flagship project Mt. Bevan where it will earn 60% interest as per the Farm In and Joint Venture agreement with Hawthorn Resources Ltd. This significant JORC resource increase provides evidence establishing Mt Bevan as a premier magnetite ore body with good potential for attractive project financials.

NMDC has since nominated three Directors on the Board of Legacy and Shri N.K.Nanda, Director (Technical) and the then CMD I/c, NMDC has been appointed as Chairman of Legacy.

6.3.4 Brazil Inked an MoU for Exclusivity for Amplus Iron Ore project in Amapa, Brazil

Your Company has signed an MoU with Amplus Mineracao LTDA, a Company having iron ore concessions in the State of Amapa in Brazil located 200 kms from the Port of Santana as per which it has been granted an exclusivity period during which it will complete due-diligence and enter into a binding term sheet for acquisition of significant equity into the project. Amplus Mineracao Ltda proposes to develop the property for production of lump ore and sinter feed products.

6.3.5 Coking Coal Mozambique

Your Company has taken forward its discussions for acquisition of equity with equivalent offtake in Sol Mineracao Mozambique, a prospective coking and thermal coal assets company. Sol Mineracao Mozambique owns the coking/thermal coal tenement 400L located in the Mutarara district of Tete Province spread over 37sq km with an exploration target of 500 million tons. The exploration activity is complete in the precise area and is due for the grant of Mining license.

Russia

Your Company continues to pursue acquisition of coking coal mineral assets in Russia and is presently in discussions for acquisition of strategic stake with a coking coal company located in Kuzbass basin in Kemerovo region, one of the largest coal mining areas in the world. The target asset has total recoverable reserves of about 50 million tons including 10 million tons reserves in open cast mines with an upside potential of an additional 100 million tons.

USA

Your Company has been scouting for various acquisition opportunities in coking coal in West Virginia, Virginia, Pennsylvania, Alabama and Kentucky. The assets being targeted are producing or near production coking coal mines. The Company continues to hold negotiations with the management/ promoters of the targeted assets.

6.3.6 Phosphate and Potash

Your Company has identified a large phosphate deposit at Australia for participation. NMDC entered into an MOU and has appointed a transaction advisor to conduct independent diligence on the Company and its assets. Based on the recommendation of the Transaction Advisor, the project was not pursued in view of the risks not being commensurate with the returns.

Further upcoming rock phosphate projects in Africa have been under consideration, which have the capacity to meet the quality requirements of Indian fertilizer industry.

6.4 Leases for minerals

6.4.1 Iron Ore

6.4.1.1 In respect of Bailadila-1 & 3

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

6.4.1.2 The PLs being pursued in Chhattisgarh

Your Company has applied for 12 PL's in Dantewada District (2006-2008). In addition to that, your Company has also applied for 3 PLs in Kanker District in Sept - 09. Your Company is pursuing all the applied PLs with Chhattisgarh Govt.

6.4.1.3 In Jharkhand Sasangada:

Your Company applied for PL / ML 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. The formation of JV Company is in process.

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. The Exploration work is under progress.

Ghatkuri (Notified Forest):

Your Company is pursuing 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. The case is being heard in the Hon'ble Supreme Court of India.

Your Company has applied for 3 PL's (1 in June 2010 & 2 in March 2011) in West Singhbhum District.

6.4.1.4 In Karnataka

Your 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. 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 7 ML applications in Karnataka (4 against Govt Notification & 3 in Donimalai Range (Dec 2010).

6.4.1.5 In Orissa

Your Company is pursuing for ML for Mankadnacha iron ore.

6.4.2 Gold

6.4.2.1 In Jharkahand

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

6.4.3 Diamond

6.4.3.1 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.

6.4.3.2 In Madhya Pradesh

Your Company has carried out exploration work in granted 2 PLs (Baghain & Sarang). Renewals have been applied for these two PLs. MoM, GoI has granted prior approval for grant of PL of Rampura Motwa. Your Company is also pursuing for other 2 PLs viz., Karmatia and Lakshmipur for early grant in favour of NMDC.

Tikamgarh RP

Your Company has been granted Reconnaissance Permit (RP) on 30.09.2009 in the Tikamgarh District of M.P. Exploration work is in progress & some areas have been identified for further exploration based on positive results.

6.4.4 Platinum Group of elements

6.4.4.1 In Uttar Pradesh

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

6.4.5 Coal

Shahpur East (Area. 693 ha) and Shahpur West (Area 587.5 ha) Coal blocks allotted by MoC, New Delhi under Government Dispensation route for commercial mining. Both coal blocks were regionally explored by GSI. Later NMDC conducted detailed exploration through MECL, Nagpur and obtained Geological Report of both the Coal blocks. Based on Geological Report, Mining Plans along with Mine Closure Plan was prepared through consultant and submitted to Ministry of Coal, Government of India, New Delhi for approval on 07/06/2010.

Presentation for approval of Mine Plan of Shahpur East Coal Block and Shahpur West Coal Block were made by NMDC on 15.11.2010 and 29.04.2011 respectively before Ministry of Coal.

Mine Plan of Shahpur West Coal Block after incorporating the queries as suggested by Standing Committee of MoC, New Delhi and the same was approved on 07.02.2012 by MoC, GOI. Approval letter on Shahpur East Coal Block is yet to be received.

Land acquisition applications for the both blocks are likely to be submitted to concerned District Collector, Shahdol and Umaria District by May, 2012.

In addition to that Mining Lease application of above both Coal blocks have been forwarded from MRD, Bhopal to Ministry of Coal for prior approval. Mining Lease applications are pending with MoC, New Delhi. Ministry of Coal, New Delhi requested to MRD, Bhopal to submit duly filled Form-K for Shahpur East and Shahpur West Coal block for prior approval of Mining Lease. NMDC forwarded the same to the office of MRD, Bhopal for onward submission.

Detailed Project Report of both the coal blocks is under preparation so that NMDC could go ahead with the development of the coal blocks engaging a suitable Mine Developer cum Operator.

The Status of Applied Coal Block under Government Dispensation route for captive use / Commercial Mining are as under:

No of Name of the Coal Coal Blocks Applied Reserve Grade Remarks Blocks

4 Rauthpara (Jharkhand) 16.11.2009 190 VIV/ UNGD Applied under government dispensation route

Parbatpur North (Jharkhand) 230 VIV/UNGD for captive use

Pachwara South (Jharkhand) 279 E-F

Tokisud South (Jharkhand) 160 E-F

1 Banai (Chhattisgarh) 06.05.2010 510 E-F Applied under governmen dispensation route for commercial mining

1 Kudanal- Lobori (Orissa) 29.10.2010 364 E-F Applied under government reapplied dispensation route for on commercial mining. MoS 19.12.11 forwarded the Application to MoC on 29.12.2011

1 Jhirki- Jhirki West 30.06.2011 301 WIV Applied under government (Jharkhand) reapplied dispensation route for on captive use. Pending 19.12.11 with MoS.

1 Bhalumara (Chhattisgarh) 26.04.2011 650 E-F Applied under government reapplied dispensation route for on commercial mining. MoS 19.12.11 forwarded the application to MoC on 29.12.2011

1 Bandha (M.P.) 06.03.2012 405 F-G Applied under government dispensation route for commercial mining. MoS forwarded the application to MoC on 12.03.2012

Your Company is in the process of signing a Memorandum of Agreement with Goa Industrial Development Corporation (GIDC) for development of Gare Palma Sector - III Coal Blocks in Chhattisgarh allotted to GIDC.

6.4.6 Bauxite

6.4.6.1 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.

6.4.7 Dolomite:

6.4.7.1 In Chhattisgarh

Your Company is pursuing ML application for Sadartera Dolomite Block in Bastar District.

7.0 SUBSIDIARY / JOINT VENTURE COMPANIES MONITORING FRAMEWORK

NMDC has five subsidiaries and stake in four Associate Companies. 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 / Joint Venture 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.

In terms of Listing Agreement/DPE Guidelines, the existing Indian Subsidiary Companies of NMDC are non-material, non-listed Companies.

7.1 J&K Mineral Development Corporation Ltd (JKMDC)

The annual report of the subsidiary Company is annexed.

7.2 NMDC-CMDC Ltd (NCL)

The annual report of the subsidiary Company is annexed.

7.3 NMDC SARL, Madagascar

The annual report of the subsidiary Company is annexed. The wholly owned subsidiary Company is under closure.

7.4 NMDC Power Ltd. (NPL)

In terms of provisions of Section 210 of the Companies Act, 1956, NPL has applied to Registrar of Companies, Hyderabad seeking approval for 1st financial year to commence from the date of incorporation i.e. 12.12.2011 till 31.03.2013. Approval from Registrar of Companies, Hyderabad is awaited. Accordingly, the Annual Report of NPL shall be annexed w.e.f. financial year 2012-13.

8.0 ENVIRONMENT MANAGEMENT:

Your Company has been accredited with ISO: 14001: EMS in respect of Bailadila Deposit-14/11C, Deposit-5, 10/11A, Donimalai and Panna Projects. Your Company has received Environmental Clearance for capacity expansion of Bailadila Deposit-10 from 3.3 to 4.2 MTPA and Deposit-11A from 1.7 to 2.8 MTPA from MoEF, GoI. Your company also received stage-1 approval for diversion of 65.936ha revenue forest land for construction of SP-III at Kirandul and 84.36 ha forest land at Arki Limestone Project from MoEF, GoI. Government of Karnataka, FEE Department has also accorded final forest clearance for renewal of Donimalai iron ore mine over 608ha of forest land. Your Company has also obtained temporary working permission from MoEF, GoI to continue the plant operations till 22.06.2012 at Panna Diamond Mining Project.

Your Company is organizing environmental monitoring studies at all production projects by engaging CPCB / MoEF approved laboratories and the results shows that all the environmental parameters are meeting the applicable standards prescribed by CPCB / MoEF

9.0 SAFETY Mine

Safety - Activities

NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectors are nominated/appointed for mining operations, mechanical and electrical installations as per statutory requirements.

Mine Level Tripartite Safety Committee Meetings 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. 23rd Corporate Level Tripartite Safety Committee Meeting of Donimalai Iron Ore Mine was conducted on 09.03.2012 and of Bailadila Iron Ore Mines/Diamond Mining Project was conducted on 12.04.2012.

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 2011-12 is 0.46 and 5.87 for the year 2010-11.

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. II Surveillance Audit was conducted successfully at BIOM, Bacheli Complex and BIOM, Kirandul Complex in the month of October 2011. I Surveillance Audit was conducted successfully at Donimalai Iron Ore Mine and at R&D Center in the month of October 2011.

OHSAS 18001:2007 Certification:

NMDC Projects - BIOM, Kirandul Complex, BIOM, Bacheli Complex and Donimalai Iron Ore Mine are accredited with OHSAS 18001:2007 Certification in the month of December 2009. II Surveillance Audit was conducted at BIOM, Kirandul Complex & BIOM, Bacheli Complex in the month of August 2011; Donimalai Iron Ore Mine in the month of November 2011 and Certification Audit of Diamond Mining Project, Panna was conducted on 23.11.2011 and was recommended for Certification.

OHS Activities:

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

Periodical Medical Examination under statute is carried out regularly in all the projects, with a planned programme. All the results are computerized and individual files are being maintained.

11.0 IMPLEMENTATION OF INTEGRITY PACT:

i) 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.

ii) 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.

iii) 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.

iv) 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.

v) Till date a total of 63 cases of tenders with an indented value of Rs.17905.81 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. A training programme on MS Indic and Intelligent Keyboard was also organized for the Rajbhasha officers and their subordinates of all Projects and Officers/Incharges of the Units related to Rajbhasha work on the occasion of Rajbhasha Sammelan.

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 were also conducted and prizes were awarded to winners during Rajbhasha Saptah / Pakhwara/Maah.

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 Rajbhasha Technical Seminars were organized and Technical Seminar Patrika and Rajbhasha Souvenirs were also published.

During the year House Journals viz. "SHE Samachar", "NMDC Patrika" in bilingual quarterly and Monthly bulletins "Baila Samachar", "Bacheli Samachar" and "Hira 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 1st Prize for the year 2010-11 by the Town Official Language Implementation Committee (Undertakings) Hyderabad-Secunderabad, for excellent implementation of the Official Language Policy.

15.0 Manpower

15.1 Employee-Employer relations

The overall industrial relations situation was peaceful and cordial during the year. There was no strike / lockout against company's policies affecting the production and productivity.

15.2 Scheduled Castes & Scheduled Tribes

15 persons belonging to Scheduled Castes and 13 persons belonging to Scheduled Tribes were appointed in the year 2012 against 139 posts filled in by direct recruitment.

15.3 Strength of SCs & STs as on 31st March 2012

1. Total number of employees = 5924

2. Scheduled Castes amongst them = 1070

3. Scheduled Tribes amongst them = 1288

4. Total SCs and STs = 2358

5. Physically challenged employees = 39

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.

NIL

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 the employees and games and sports for the wards were held in different projects during the year apart from promoting sport events under CSR.

16.0 HUMAN RESOURCES DEVELOPMENT

Employee's Development Services are delivered through In-Company, External and Foreign Training modes. The HRD Index of all the employees as percentage of total training man days / total working man days was 1.35 against the target of 1.11. The average training man days per employee was 3.8.

16.1 External Training Programmes & In-Company Training Programmes

Employees across the Company were nominated to External (290) and In-Company (103) Training Programmes at different locations on various subjects.

16.2 Foreign Training Programmes

9 Foreign Programmes were attended by 17 NMDC employees.

16.3 Executive Trainees

56 Executive Trainees joined the Company.

17.0 VIGILANCE

Smt. Usha Chandrasekhar, IPoS has taken charge as CVO, NMDC on 19.09.2011 after the completion of tenure of Shri. N V Raja Shekar, IFS as CVO, NMDC on 31.04.2012.

Vigilance Department in the Company has been focusing on "Preventive and Proactive Vigilance". Periodic Review Meetings with Vigilance officers were held from time to time 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 the other departments in the organization in improving upon the existing procedures and systems to achieve the overall objectives of the Company.

The Vigilance Department is certified for compliance to ISO Certification 9001:2008 standards. Surveillance Audit was conducted on 17.10.2011 by M/s. Integrated Quality Certification (P) Ltd. This has ensured continual improvement in Quality Management Systems.

Vigilance Department has been overseeing the implementation of Integrity Pact in the Company. Till date, 65 contracts valuing Rs.17967.67 Crores have been covered under this Pact.

Vigilance Awareness Week 2011 was observed from 31st October to 5th November 2011. During the Week, various programmes were conducted including talks by eminent personalities on "Participative Vigilance"; Essay Competition; Elocution and Quiz Programmes. On the Concluding Day, a talk by Shri. N Vittal, Former Central Vigilance Commissioner, CVC was organized. Prizes along with the Certificates signed by Shri. N Vittal and Shri. Rana Som, CMD NMDC Limited were distributed to the winners in the competitions held during the Week. Vigilance Awareness Week was also observed at all the Units of NMDC including Regional Offices.

As an initiative towards proactive vigilance, a Questionnaire on the effectiveness and awareness of vigilance among the employees was circulated to all the officers of the Units and Head Office for their feedback.

As another step towards proactive vigilance, NMDC Management has approved strengthening of vigilance functionary in the organization by four Senior Executives and five Junior Executives.

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 2012, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii) 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.

19.0 DIRECTORS

During the year under review, the following were appointed as Directors of the Company pursuant to orders of Ministry of Steel, Government of India:

Name of the Director W.e.f

i) Shri C.S. Verma, CMD w.e.f. 25.05.2012

ii) Shri N.K. Nanda, CMD w.e.f. 01.01.2012 (Additional Charge) upto 24.05.2012

iii) Shri S. Bose, Director (Production) 17.06.2011

iv) Shri S.K. Das, Director (Commercial) 11.08.2011

v) Shri Rabindra Singh, Dierctor (Personnel) 01.10.2011

vi) Shri S.J. Sibal, Independent Director 28.12.2011

In tems of Ministry of Steel's, Govt. of India letter No.4(13)/2010-RM-I (Vol-II) dated 25.05.2012, inter alia, it has been decided with the approval of Hon'ble Minister of Steel to assign additional charge of the post of Chairman-cum-Managing Director, NMDC Limited to Shri C.S. Verma, Chairman, SAIL for a period of three months with immediate effect or until further order, whichever is earlier, in addition to his regular assignment, subject to approval of the Competent Authority.

The Board vide circular resolution has also approved the appointment of Shri C.S. Verma as Additional Director and CMD, NMDC w.e.f. 25.05.2012.

The following Directors ceased to be Directors on the Board of the Company for the year under review:

Name of the Director W.e.f

i) Shri Rana Som, CMD 31.12.2011

ii) Shri V.K. Sharma, Director (Commercial) 30.07.2011

iii) Shri G.B. Joshi, Director (Personnel) 30.09.2011

The Board places on record its deep appreciation for the valuable contribution made by Shri Rana Som, Shri V.K. Sharma and Shri G.B. Joshi during their tenure on the Board of the Company.

20.0 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 2011-12:

Sl No Name & address of Auditors Units Covered

i) M/s VENUGOPAL & CHENOY Head Office and R&D Centre; Chartered Accountants Consolidation, 4-1-889/16/2, Tilak Road Sponge Iron Unit, Paloncha HYDERABAD 500 001, Andhra Pradesh Phone No. 040-24752853 / 24753454 Fax No. 040-24756885

ii) M/s Brahmayya & Co., Bailadila Dep-14/11C, Chartered Accountants Bailadila Dep-5,10 & 11A, "Suhasini",10-50-24, Sripuram Junction, Central Workshop, Visakhapatnam -530 003. Andhra Pradesh NISP, RO, Vishakapatnam Phone No.0891-2755821 / 2754071 Fax No.0891-2755848

iii) M/s P K Subramaniam & Co., Donimalai Iron Ore Mine, Chartered Accountants Chennai Office 11-5-23, Karthik complex, Above Vijaya Bank, Bresthwarpet, RAICHUR - 584 001 Karnataka.

iv) M/s Hari Gupta & Co, Diamond Mining Project Purvasha Panna. 5A/7A, Dr. Panna Lal Road, Allahabad - 211 002

b. Cost Auditors

During the year, the Company has come under the ambit of Cost Audit of Sponge Iron Activity and Windmill Power Generation.

The details of Cost Auditors appointed to conduct Cost Audit of the cost records maintained by the Company for 2011-12 are as under:

Name and address of Cost Auditors Units Covered

Shri P.V. Prasad Sponge Iron Project

H.No. 2-4-911, Road No.6 Windmill Power Generation

Samatapuri Colony, Post Saroor Nagar

Hyderabad - 500 035

21.0 R&D ACTIVITIES

Particulars required under the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 are at Annexure-I.

22.0 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.

23.0 CORPORATE GOVERNANCE

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.

24.0 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.

25.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS

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

26.0 CORPORATE SOCIAL RESPONSIBILITY (CSR)

NMDC has a legacy of not only meeting but surpassing the commitments & expectations of its stake holders. All through its existence, NMDC has endeavoured to positively uplift the lives of the communities around its areas of operations.

The sentiment that Social Responsibility is an integral part of the wealth creation process and when managed properly, can enhance the competitiveness of business, maximize the value of wealth creation to society and thereby contribute to Nation building is ingrained in the core philosophy of NMDC.

'Leadership with Care & Concern' is the guiding principle and core motivator of NMDC to make a difference.

Investing an amount of Rs.63.32 crore during the year 2011-12, which calculates to about 0.87% of its net profit after tax (PAT) of the previous financial year in the CSR, the Company has taken up the following major works in the identified thrust areas:

26.1 Education

NMDC's focus is increasingly 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 to make it their instrument to fight against poverty, disease & injustice by setting up free residential schools of high quality for tribal children, scholarships to 11000 tribal and poor students in 330 schools in Bastar Region at an annual expenditure of Rs.5 Crore, construction of schools and hostels for students including girl children, mid-day meal to 8000 rural children, setting up ITI's & Polytechnic for technical education, supporting the establishment of medical college & reservation of seats in management institute(IPE) for tribal & poor children.

26.2 Balika Siksha Yojana

NMDC has introduced a focused initiative called "Balika Siksha Yojana" for the benefit of the tribal girl students of Bastar region. Under this Yojana, the girl students will be sponsored for various academic and professional courses in Engineering, Medicine, BDS, Management, Nursing, Diplomas etc. The entire expenditure will be met by NMDC.

In the first year, 25 tribal girls from Bastar region have been admitted to Nursing courses in M/s Apollo Hospitals, Hyderabad.

26.3 Residential Public School for Tribal students at Kanker

NMDC is establishing a residential public school at Kanker for the tribal students of Bastar region. The school will be operational from the academic year 2012-13 with an initial intake of 400 students and will ultimately cater to 2000 tribal students. For the construction and management of the residential school, NMDC has signed an MOU with Kalinga Institute of Social Sciences, Bhubaneswar.

An amount of Rs.38.22 crore has been sanctioned for constructing the school building and other facilities.

26.4 Construction of Gurukul Astha at Dantewada

NMDC has agreed to revise financial assistance from Rs.12.91 crore to Rs.21.03 crore for the construction of a Gurukul Astha at Dantewada by the State Govt, for the benefit of ST, SC.OBC and Orphan students.

26.5 Polytechnic College at Dantewada

The Chhattisgarh Govt, has allotted about 8 acres of land for the Polytechnic College. An amount of Rs. 31.94 crore has been sanctioned for constructing the Polytechnic and other facilities in the campus.

Considering NMDC's request for special dispensation in the admissions of tribals of Bastar to Polytechnic College, Dantewada, Govt, of Chhattisgarh has granted administrative approval by delinking the tribal students of Bastar region from central counseling.

26.6 Education Improvement Program

Implemented 'Education Improvement Program in 84 Govt. Primary Schools with objectives of enhancing the quality of education of the children studying in the identified schools, bringing childr

---

Mar 31, 2011

Dear Members,

The Directors are pleased to present the 53rd Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31 March 2011 and the Report thereon by the Comptroller and Auditor General of India.

1.0 PERFORMANCE HIGHLIGHTS

The year under review has been a historic year in which the Company has established new landmarks in its performance in all parameters. For the first time in the history of the Company, turnover has breached the Rs.10,000 crores mark and Profit after Tax has crossed Rs.6,000 crores mark, the highest ever in its history. The sterling performance of the Company can primarily be attributed to increased offtake by domestic customers, improved rake supply by railways and increase in iron ore price.

The major performance highlights are summarized as under:

- Turnover for the year under review was Rs.11369 crores compared to Rs.6239 crores in the previous financial year 2009-10 recording an increase of 82%. The Company has for the first time in its history crossed the Rs.10,000 crores turnover mark.

- Profit before tax was Rs.9727 crores compared to Rs.5207 crores in the previous financial year 2009-10 recording an increase of 87%. Profit after tax was Rs.6499 crores compared to Rs.3447 crores in the previous financial year 2009-10 recording an increase of 89%.

- Net worth increased to Rs.19200 crores as on 31.03.2011, 35% higher than Rs.14256 crores in the previous financial year 2009-10.

- Interim Dividend @ 115% on the paid up equity share capital of the Company aggregating Rs.455.94 crores was paid by the Company.

- Pursuant to the Order of Ministry of Corporate Affairs, Government of India, Sponge Iron India Limited got merged with NMDC Limited. The acquisition of SIIL through the inorganic route of merger makes the Company's first foray into manufacturing area.

- As an MoU signing PSE with the Government of India, your Company's performance during the year qualifies for "Excellent" rating

- Supply of Iron Ore to domestic industries recorded 237.52 lakh tonnes as against the previous year supply of 206.53 lakhs tonnes, recording an increase of 15%. Total exports of Iron Ore during the year was 25.63 lakh tonnes against 34.32 lakh tonnes in the previous financial year 2009-10 recording a decrease of 25%.

- Sponge Iron production during the year under review was 38962 tonnes.

- During the year 137.11 lakh Kwh Power has been generated by wind electricity generators as compared to 194.05 lakh Kwh of power in the previous financial year 2009-10.

2.0 PHYSICAL PERFORMANCE

2.1 Production

Product Achievement Percentage change 2009-10 2010-11

Iron Ore (lakh tonnes) 238.03 251.55 6.0%

Diamond (Carats) 16529.21 10865.93 (-) 34%

Sponge Iron I year of (Tonnes) – 38962.00 operation

Notes:

a) The Hon'ble Supreme Court of India has granted permission for operation of Diamond Mining Project upto 13.12.2020. However, on 01.07.2010, supplementary lease has expired. Accordingly, application has been submitted for Forest Clearance. Stage-I approval was cleared on 04.01.2011 and final / stage-II approval is awaited.

b) Silica sand mining operations are suspended since November, 2007 due to commercial reasons and the Lalapur Silica sand mines are kept under care and maintenance.

2.2 Sales of Iron Ore

(in lakh tonnes)

Product Achievement Percentage change 2009-10 2010-11

Domestic 206.53 237.52 15%

Export through MMTC 34.32 25.63 (-) 25.3%

Total Sales 240.85 263.15 9.26%

Notes:

a) Production and Sales of Iron Ore were partially affected in the year 2010-11 due to frequent bandhs called by Maoist in Bailadila sector and restricted night movements of rakes due to Maoist activities.

b) Production and Sales were also affected during the year 2010-11 due to breakdown of Essar's slurry pipeline for the most part of the year.

2.3 Other Sales

Products Achievement

2009-10 2010-11

a) Diamond

Sales (carats) 7335.34 18421.22

Value (Rs. in crore) 6.94 12.88

b) Wind Power

Sales (lakh KWh) 194.05 137.11

Value (Rs in crore) 6.57 4.48

c) Sponge Iron (tonnes) – 39775.00

Value Rs. in crore – 62.74

3.0 FINANCIAL PERFORMANCE

3.1 Operating Results

Parameter Achievement Percentage change 2009-10 2010-11

Profit Before Tax

(Rs. in crore) 5207 9727 87%

Net Worth (Rs. in crore) 14256 19200 35%

Book value per share (Rs.) 35.96 48.43 35%

Earnings per Share (Rs.) 8.69 16.39 89%

3.2 Profit & Dividend

During the year under review, your Company has earned profit before tax of Rs.9727 crores on a turnover of Rs.11369 crores in comparison with those of previous year's achievement of Rs.5207 crores and Rs.6239 crores.

The Company has paid interim dividend @ 115% on the equity shares of Re.1/- each aggregating Rs.455.94 crores in February 2011. The Board has recommended subject to shareholder's approval, payment of final dividend @ 215% on the paid up equity share capital of the Company aggregating Rs.852.41 crores. The total dividend payout for the year under review aggregates Rs.1308.35 crores.

4.0 DEPOSITS

The Company has not accepted any Fixed Deposits during the year under review.

5.0 NEW PROJECTS & BUSINESS DIVERSIFICATIONS

5.1 Projects under construction

5.1.1 Bailadila deposit-11/B

As part of plan to enhance production, the construction of Deposit 11B mine at 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. Expenditure incurred till 31st Mar'11 for the plant is Rs.262 crores. Naxal activities have seriously hindered the progress of the project work. The project is likely to be commissioned by December 2011. Project progress till 31st Mar'11 is 67%.

5.1.2 Uniflow System at Bacheli

East Coast Railways is assigned the work of execution of the "Construction of Uniflow Dispatch Line at Bacheli on K.K. Line of East Coast Railways of Waltair Division for Civil, OHE and S&T works" as a Deposit Work for which an amount of Rs.15,60,86,038/- has been deposited with East Coast Railways on 02.01.2006 towards the estimated cost of the work based on the detailed estimate for Civil, S&T and OHE submitted by East Cost Railways. This has since been revised by Railway due to adverse ground condition of the area.

East Cost Railways have invited the Tender for execution of balance works such as earth work in formation, minor bridges, RCC retailing walls, drains, protection works, ballast supply, transportation of P-way-materials, P-way linking and other misc. works. The work is awarded on PDV-KVMR, Visakhapatnam. About 60% of the work is completed and the balance is likely to be completed by October 2011.

5.1.3 Slurry Beneficiation and Transportation system from Bailadila to Vizag

The Slurry Transportation system is intended for transportation of Pellet Feed Concentrate from Bailadila to Vizag via Jagdalpur along State / National Highways with a provision for partial take-off at Nagarnar for feeding to NMDC's proposed Steel Plant at Nagarnar. Techno-Economic Feasibility Report (TEFR) for the scheme prepared by MECON, New Delhi and IFCI is appointed as the agency for carrying out Due Diligence of the TEFR.

5.1.4 BHQ Beneficiation Plant at Donimalai

For treating low grade ore, Banded Hematite Quartzite (BHQ), a Beneficiation Plant is proposed to be set up at Donimalai Iron Ore Mine to treat 3.6 Lakh tonnes per annum of BHQ to produce 1.18 Lakh tonnes per annum of BF grade Pellet Feed Concentrate. Techno-Economic Feasibility Report (TEFR) for the scheme was prepared by MECON, Bangalore and Due Diligence Report of the TEFR was prepared by SBI Capital Markets Ltd. The project is scheduled to be commissioned by 2012-2013.

5.1.5 Slime-based Pig Iron Plant at Jagdalpur

Matter related to setting of slime based Pig Iron Plant has been closed because of construction of ISP.

5.1.6 Merger of Sponge Iron India Limited

Pursuant to the order of Ministry of Corporate Affairs, Government of India, the Company has filed certified copies of order of merger with the Registrar of Companies, Andhra Pradesh on 1st July, 2010. Consequent upon filing of the order of merger with the Registrar of Companies, Andhra Pradesh, Sponge Iron India Ltd stands merged with NMDC without being wound up. The appointed date of the Scheme is 30th June 2008 and the effective date is 1st July 2010 being the date on which the Order of Merger was filed with Registrar of Companies, Andhra Pradesh.

The erstwhile Sponge Iron India Limited is now functioning as Sponge Iron Unit of NMDC Limited.

5.1.7 Kumaraswamy Iron Ore Project

To compensate the depleting reserve of Donimalai Iron Ore Mine and augmenting NMDC's production capacity towards achieving the target of 50 MTPA, the construction of Kumaraswamy mine with capacity of 7.0 MTPA was envisaged. The Board has approved the revised capital outlay of Rs.898.55 crores for the project in its 427th meeting held on 26.11.2010. MECON is appointed as EPCM consultant. The entire project has been planned to be executed in six packages. Work orders are placed for all critical packages 1, 2 & 3 (Crushing Plant Package, Downhill Conveyor Package and Electrics & Substation Package). Orders for the minor packages will be placed in 2011. The project is expected to be completed by June 2013.

5.1.8 Windmill in Karnataka

9.0 MW Wind Power Project has been commissioned on 30th September 2008 and connected to KPTCL grid.

5.1.9 Low Silica Limestone Project, Arki (HP)

Mining Lease of the Arki Lime Stone Deposit is valid upto 7th August 2011. Mining lease renewal application was submitted on 23.04.2009 and the same is under consideration of Addl. Chief Secretary (Industries), Shimla. MOEF, New Delhi has accorded Environmental Clearance on 22.12.2010 subject to transportation of material by road for 1st five years and then by conveyor. An application has already been filed at State Govt. of H.P. on 3rd March 2011 for reconsideration as earlier State Govt. of H.P. has not agreed for transportation of limestone by road.

As Forest Clearance of Arki lease is co-terminus with expiry of mining lease, the forest clearance proposal of NMDC has been forwarded to CCF, Shimla on 4th March 2011. On scrutiny of the proposal, the case will be considered by MOEF for diversion of 84.36 Ha of Forest Land.

For land acquisition, on 23.02.2011, Revenue Dept. of Govt. of H.P. has issued the notification for exemption in the 1851.03 Bigha Pvt. Land under sub-section (h) of section-5 of the Himachal Pradesh Ceiling on Land holding Act, 1972. Matter is being pursued for issuing the notification under section-4 of Land Acquisition Act.

A draft Mining Plan for 3MTPA mine has been prepared and submitted to IBM, Dehradun as a pre-submission for the purpose of Mining Lease renewal. Simultaneously, action has been initiated for preparing the Feasibility Report and M/s Tata Consulting Engineers Ltd. has been awarded the work of preparing the same.

5.1.10 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 to produce dead burnt magnesite. The Joint Venture is named as J&K Mineral Development Corporation Ltd. 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 157th meeting held on 30.11.2009 decided to revive the project. Subsequently Board of NMDC endorsed to revive the project by setting up a 30,000 TPA Dead Burnt Magnesite plant.

ML renewed for 10 years w.e.f. 11th January 2009 and registered on 21st May 2010. ML has been transferred to J&KMDC on 10.01.2011. 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. Expert Appraisal Committee (EAC) meeting for environmental clearance was held on 23rd September 2010 and 23rd February 2011. MoEF asked NMDC to submit NOC from National Board of Wild Life (NBWL) with reference to Tricuta wild life sanctuary which is close to the mine area. Application has been submitted accordingly and a NOC from NBWL and EC from MoEF are awaited.

The Project is planned to be executed in four packages. M/s Dasturco is appointed as EPCM Consultant. Tender activity is in progress.

5.1.11 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. The plant would cater 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 EPCM Consultant. The entire project has been planned to be executed in seven packages. Tender activity is in progress. Environmental and Forest Clearances are awaited.

5.2 Other initiatives

5.2.1 Bailadila Iron Ore Deposit-13

NMDC formed a Subsidiary Company NMDC-CMDC Ltd. with 49% partnership of CMDC Limited. The JVC was incorporated under the Companies Act, 1956 on 19th June 2008 to develop Deposit-13 as standalone project of 10 MTPA. Due to change in Project Execution Philosophy of developing Deposit-13, Modified Mining Plan was prepared and got it approved by IBM, Nagpur in April 2010.

To know the techno-economic viability of the project, an in-house Techno-Economic Feasibility Report (TEFR) was prepared in June 2009 and found to be highly profitable. The subsidiary Company is seeking various statutory clearances of the project.

5.2.2 Bailadila Deposit-4

It is envisaged to develop Deposit 4 with CMDC Ltd. as a partner for supplying raw material to the steel plant at Nagarnar. Govt. of Chhattisgarh on 30.09.2010 has recommended the ML application of NMDC to Ministry of Mines, GOI for prior approval for grant of ML in favour of NMDC. Prior approval is expected shortly.

5.2.3 Rail Link between Dalli-Rajhara - Raoghat, Jagdalpur Railway Line Project

The work is under progress between Dalli-Rajhara - Raoghat (Phase-1). Levelling is under progress upto Bhanupratappur. Tree felling beyond Bhanupratappur is held up due to security concerns.

5.2.4 International Coal ventures (P) Limited (ICVL)

The Joint Venture Company International Coal Ventures (P) Limited (ICVL) has been incorporated between SAIL, NMDC, NTPC, Coal India and RINL.

The opportunities for acquisition of coal properties abroad are being pursued in Australia, Indonesia, Canada and USA.

5.2.5 Memorandum of Understanding with Department of Mines & Geology (DMG), Govt. of A.P., Andhra Pradesh Mineral Development Corporation (APMDC), Govt. of A.P. and NMDC Limited for Mineral Exploration in the State of A.P.

Your Company has signed an MoU on 29th January, 2010 for joint exploration work for Iron ore in Kadapa, Kurnool, Chittoor and Karimnagar Districts and for Gold in Chittoor and Anantapur districts of A.P. Preliminary exploration for iron ore was carried out in Kadapa and Karimnagar districts. Further exploration work will continue.

5.2.6 NMDC Global

Your Company has formed its international global investment division - NMDC Global in order to focus expanding its geographical footprint around the world and augmenting its resource base. The vision of NMDC Global is to secure future supplies of critical raw materials for the country's steel and fertilizer production and energy security by acquisition of overseas mineral assets of iron ore, coking coal, Manganese ore and fertilizer raw materials i.e. rock phosphate and potash.

Strategic Alliances

a) Your Company has signed a Memorandum of Understanding with OJSC Severstal, Russia, to jointly set up an Integrated steel plant with an initial capacity of 2 million TPA in Karnataka. A model of complete vertical integration of the steel making resources to product generation is being pursued.

b) The joint venture agreement was signed and a JV Company is being incorporated with M/s Kopano Ke Matla Investment Company (Pty) in the Republic of South Africa for exploring and exploiting the mineral resources in South Africa.

Solar Power Plant

To develop solar power development projects under the Jawaharlal Nehru National Solar Mission (JNNSM), your Company had submitted bids to develop solar power plant at Paloncha. NMDC was not considered in view of net higher tariffs.

Renewable Energy Bio-Mass Plant

As part of its ongoing initiatives to contribute to the conservation of environment, your Company is currently evaluating the possibility of setting-up a 5 MW bio-mass based power plant at one of its mine locations.

ITMK3 Based Nugget Plant

Your Company is currently engaged in conducting feasibility studies in partnership with Kobe Steel to set-up a 500,000 tpa iron nugget plant based on iron ore fines and low rank coals.

Met Coke from Indian Thermal Coal

Your Company has initiated discussions with the technology supplier and potential JV partner in the USA for setting-up a plant in India to produce Coke equivalent from Indian thermal coals.

5.3 Foreign venture

5.3.1 Gold in Tanzania

In Tanzania, your Company is pursuing the gold exploration works in Bulyang'Ombe and Siga Hill area. NMDC has been granted Retention Licence at Bulyang'Ombe and Siga Hill areas. EIA / EMP report for Bulyang'Ombe area submitted to National Environmental Management Committee (NEMC) for its approval. EC expected shortly, which shall enable grant of Mining Lease. NMDC is also in the process of identifying a Joint Venture partner for developing a gold mine in Bulyang'Ombe.

5.3.2 Iron Ore

Being the largest iron ore producer of the country, NMDC has in-house expertise in exploring, developing, commissioning and operating iron ore mines. Your Company plans to leverage these core competencies to acquire early stage exploration projects across the world.

Australia

Your Company has identified two exploration tenements, one in Western Australia (early exploration) and the other in South Australia (scoping study completed with preliminary reserve estimates) and has entered into exclusive negotiations with the license holders of these exploration tenements for possible acquisition.

Brazil

Your Company is also considering acquisition of a magnetite iron ore resource in Brazil which has completed its pre-feasibility stage. The strategy involves developing this mineral asset in collaboration with the current owners with a targeted production of 6 million tonnes per annum of magnetite concentrate.

5.3.3 Coking Coal

Acquisition of operating coking coal assets overseas is a national priority as India is dependent on imports for most of its requirement. Hence, in order to reduce risk and dependence on mining and marketing of iron ore and also to secure against increasing need of the country, your Company proposes to diversify into production of coking coal. The strategy for coking coal is to participate in the operating mines which is already producing or near production. Investment at exploration stage although not a priority is being considered in addition to acquisition of operating mines.

Russia

Your Company is considering acquisition of an operating coking coal mine in Far East Russia. The independent technical due- diligence of the target asset has been completed and the appointment of financial consultant cum transaction advisor is being considered.

USA

Your Company is also actively pursuing the acquisition of a metallurgical coal producer located in Alabama operating an underground mine, a surface mine as well as a preparation plant. The Company's mines are accessible by several truck routes and rail as well as direct barge to the port of export - providing a number of transportation alternatives to serve both domestic and international customers. The independent due diligence for financial and technical aspects have been initiated.

5.3.4 Phosphate and Potash

Your Company is also reviewing opportunities for acquisition of rock phosphate and potash mineral assets to meet the fertilizer requirement of India, one of the largest importers of these commodities in the world. The target regions for rock phosphate are in North Africa and Australia while for potash are in Canada and East Africa.

5.4 Leases for minerals

5.4.1 Iron Ore

5.4.1.1 In respect of Bailadila-1 & 3

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

5.4.1.2 The PLs being pursued in Chhattisgarh

Your Company has applied 12 PL's in Dantewada District (2006-2008). In addition to that, your Company has also applied 3 PLs in Kanker District in Sept - 09. Your Company is pursuing all the applied PLs with Chhattisgarh Govt.

5.4.1.3 In Jharkhand

Sasangada:

Your Company applied for PL / ML 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).

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. Exploration work is in progress.

Ghatkuri (Notified Forest):

Your Company is pursuing 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. The case is being heard in the Hon'ble Supreme Court of India.

5.4.1.4 In Karnataka

Your 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. 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 7 PL applications (Jul 2010 and Sep 2010) in Tumkur, Bellary and Chitradurga Districts and in Donimalai Range 3 ML applications (Dec 2010).

5.4.1.5 In Orissa

Your Company is pursuing for ML for Mankadnacha iron ore.

5.4.2 Gold

5.4.2.1 In Jharkahand

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

5.4.3 Diamond

5.4.3.1 In Andhra Pradesh

Your Company has carried out exploration work in 5 PLs (Revenue area) of Kalyandurg area, Anantapur Dist. and all these areas have proved non-prospective and surrendered to the State Govt. Your Company is pursuing forest permission for exploration in the other 3 granted PLs falling in the Forest area (Renewal application submitted in March 2010). Forest permission is expected shortly.

5.4.3.2 In Madhya Pradesh

Your Company has been granted 2 PLs (Baghain & Sarang) and exploration work for diamond is in progress.

Your Company is also pursuing for other 3 PLs viz., Rampura, Karmatia and Lakshmipur for early grant in favour of NMDC.

Tikamgarh RP

Your Company has been granted Reconnaissance Permit (RP) on 30.09.2009 in the Tikamgarh District of M.P. Exploration work is in progress.

5.4.4 Platinum Group of elements

5.4.4.1 In Uttar Pradesh

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

5.4.5 Coal

Your Company has applied for 10 coal blocks in Jharkhand, 3 coal blocks in West Bengal, one each in Maharashtra and Andhra Pradesh to MoC, New Delhi for allocation.

5.4.5.1 In Madhya Pradesh

Your Company was allotted 2 underground coal blocks viz. Shahapur East and Shahpur West coal in the Sahdol District by Ministry of Coal, GoI on 25.07.2007 for commercial mining under Govt. dispensation route. Your Company has carried out detailed geological exploration of both the coal blocks and submitted ML applications on 14.12.2009. Govt. of M.P. is in the process of forwarding the ML applications to MoC, GoI for prior approval. Mine plan for both the blocks were prepared and submitted to MoC on 07.06.2010 for approval. Approval is expected in June / July 2011. Action is on hand for obtaining all statutory clearances. Preparation of feasibility report, land acquisition survey are all under progress.

5.4.5.2 In Chhattisgarh

Your Company is in the process of signing a Draft Memorandum of Agreement with Goa Industrial Development Corporation (GIDC) for development of Gare Palma Sector-III coal blocks in Chhattisgarh allotted to GIDC.

5.4.6 Bauxite

5.4.6.1 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.

5.4.7 Dolomite:

5.4.7.1 In Chhattisgarh

Your Company is pursuing ML application for Sadartera Dolomite Block in Bastar District.

5.5 Business Diversification

Your Company has undertaken various business diversification initiatives as under:

5.5.1 3.0 MTPA Integrated Steel Plant in Chhattisgarh

Your Company is setting up a 3.0 MTPA Steel Plant at Nagarnar near Jagdalpur, Chhattisgarh where 995 acres of land was acquired in the 1st phase and 787.62 acres of private land was acquired in the 2nd Phase totaling to 1782.62 acres of land which is in possession of the Company at present. Formal allotment of additional 102.64 acres of Government Land is under process in the Government of Chhattisgarh. Besides, diversion of about 63.52 acres of forest land for utilization for setting up of the Steel Plant is also under process in the government. As such in total your Company will be in possession of about 1949 acres of land at Nagarnar for the Steel Plant. Techno Economic Feasibility Report and Investment of Rs.15,525 crores was approved by Board on 07.01.2010.

Environmental Clearance from MoEF was received on 15.09.2009 subject to the condition of obtaining prior approval from the Central / State Government for diversion of the 25.72 Hectares of Forest land under the Forest (Conservation) Act 1980 and subsequent amendments for utilization for setting up of the steel plant.

1st stage approval of the MoEF for the 25.72 Hectares Forest Land was received on 04.08.2010. Action for obtaining 2nd stage approval has been initiated and the approval is expected shortly. Permission to establish, under "Water (prevention and control of pollution) Act 1974 and Air (prevention and control of pollution) Act 1981", has been received from Chhattisgarh Environment Conservation Board on 28.08.2010. Application in prescribed form has been submitted before the Chief Inspector of Factories on 27.01.2011 for approval of the site for the Steel Plant for commencing construction works as required under Rule-3 of Chhattisgarh Factories Rules.

Rail Transport Clearance was received on 17.02.2009. Railway consultant was appointed on 29.12.2009 and detailed site survey for the rail line connectivity was completed on 16.05.10 by the Consultant. East Coast Railway, Bhubaneswar cleared the feasibility report on 04.08.2010 for preparation of DPR. Accordingly, the DPR was submitted to East Coast Railway on 20.12.2010 for their approval.

State Govt. of Chhattisgarh has sanctioned water for construction and operation on 06.08.2009. Chhattisgarh State Power Transmission Company Limited has approved and agreed to construct power line from Jagdalpur to Nagarnar to make construction power line available for which necessary charges already paid.

EHT Power for operation is required to be drawn from Raipur to Nagarnar over a distance of about 300 kilometers at 400 KV level and 400/220 KV substation will be established at Jagdalpur. This line and sub-station will be constructed by CSPTCL on a 50% cost sharing basis with NMDC. Further power from Jagdalpur to Nagarnar will be drawn at 220KV level for which the entire cost will be borne by NMDC. Commitment charges and security deposit for the power were paid in this regard.

Out of the 9 Major Technological packages, package for Sinter Plant and Blast Furnace Complex have been awarded. Offers received for another 5 packages E.g. 1. Raw Material Handling System. 2. Coke Oven Plant 3. By Product Plant 4. Steel Melting Shop and 5.Thin Slab Caster and Hot Strip Mill are under various stages of evaluation for order placement. Remaining two Major Technological packages (Oxygen plant and Lime & Dolo plant) and auxiliary packages which are of less lead time are being processed for tendering shortly. Engineering Consultancy contract with MECON was signed on 17/01/11.

Enabling works packages like site levelling, Plant Entrance Road, Construction water, and Construction power were awarded and works are in progress at site.

5.5.2 2.0 MTPA Pellet Plant at Bacheli

Project is kept on hold considering the proposed slurry pipeline from Bacheli to Vizag. It is planned to relocate the project from Bacheli, Dantewada to Nagarnar, Jagdalpur.

5.5.3 1.2 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 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. Civil works are in progress at site. Orders placed for Site Leveling, Misc. Building, MRSS and Pelletization Packages. Beneficiation Package order is being finalized. Project is scheduled to be completed by March 2013.

6.0 R&D ACTIVITIES

Particulars required under the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 are at Annexure-I.

7.0 SUBSIDIARY / JOINT VENTURE COMPANIES MONITORING FRAMEWORK

NMDC has three subsidiaries and stake in four Joint Venture / Associate Companies. The names of these Companies and percentage of NMDC stake in these companies are as follows:

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 / Joint Venture 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.

In terms of Listing Agreement/DPE Guidelines, the existing subsidiary Companies of NMDC are non-material, non-listed Companies.

7.1 J&K Mineral Development Corporation Ltd (JKMDC)

The annual report of the subsidiary Company is annexed.

7.2 NMDC-CMDC Ltd (NCL)

The annual report of the subsidiary Company is annexed.

7.3 NMDC SARL, Madagascar

The annual report of the subsidiary Company is annexed. The wholly owned subsidiary Company is under closure.

7.4 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.

8.0 ENVIRONMENT MANAGEMENT:

Your Company has been accredited with ISO 14001-2004 EMS by M/s DNV, Hyderabad in respect of four major production projects i.e. Bailadila Deposit-14 / 11C, Deposit-5, Donimalai and Diamond Project. The EMS certification is valid upto 13.06.2011.

Your Company has obtained Environmental Clearance from MoEF for Arki Limestone Project on 20.12.2010 and successfully completed EAC meetings at MoEF in respect of Panthal Magnesite cum DBM Plant and Bailadila Deposit-13 project, Kirandul for obtaining Environment clearance. The Environmental clearances are awaited from MoEF.

Your Company has also obtained consent for establishment from State Pollution Control Boards for capacity expansion of Donimalai iron ore mine and Pellet plant on 15.09.2010 and for Integrated Steel Plant at Nagarnar on 29.08.2010.

Your Company has also received final forest clearance for 10.763 ha forest land for railway siding for NISP and 1st stage forest clearance for Panna supplementary ML on 23.11.2010 and for change in land use pattern of Bailadila Deposit-14ML on 23.11.2010 from MoEF, GoI.

Your Company is organizing environmental monitoring studies at all production projects by engaging CPCB / MoEF approved laboratories and the results shows that all the environmental parameters are meeting the applicable standards prescribed by CPCB / MoEF.

9.0 SAFETY

Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectors are nominated / appointed for mining operations, mechanical and electrical installations as per statutory requirements.

Mine Level Tripartite Safety Committee Meetings 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. 22nd Corporate Level Tripartite Safety Committee Meeting of Donimalai Iron Ore Mine was conducted on 19.11.2010 and Bailadila Iron Ore Mines / Diamond Mining Project was conducted on 07.02.2011.

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 2010-11 is 5.87 and 3.01 for the year 2009-10.

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. One Surveillance Audit was conducted successfully at BIOM, Kirandul Complex and BIOM, Bacheli Complex in the month of January 2011. Re-certification Audits were conducted successfully at Donimalai Iron Ore Mine and at R&D Center in the month of October 2010.

OHSAS 18001:2007 Certification:

NMDC Projects - BIOM, Kirandul Complex,

BIOM, Bacheli Complex and Donimalai Iron

Ore Mine are accredited with OHSAS 18001:2007 Certification in the month of December 2009. One Surveillance Audit was conducted at BIOM, Kirandul Complex and BIOM, Bacheli Complex in the month of January 2011 and Donimalai Iron Ore Mine in the month of November 2010.

OHS Activities:

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

Periodical Medical Examination under statute is carried out regularly in all the projects, with a planned programme. All the results are computerized and individual files are being maintained.

11.0 IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

NMDC Limited made all efforts for implementation of the Official Language Policy and for use of Official Language in all its Units and Head Office during the year.

Hindi workshops were conducted for officers and employees to make them efficient to use Hindi in day-to-day official work. Eligible employees were imparted training in Hindi Computer. To bring awareness about the official language among the employees and their family members as well as the employees of other offices situated in the vicinity of its offices is various programmes such as Hindi Divas, Hindi Saptaha, Hindi Pakhwara, Rajbhasha Maah were conducted during the year. Various Hindi Competitions were also conducted and Winners were suitably awarded prizes. Incentive schemes were implemented for more and more usages of Hindi in the Offices of the Company and suitable prizes were awarded to the employees.

To encourage use of official language in technical fields also Rajbhasha technical seminars in Hindi were organized by the production units of the Company. Technical Seminar books and Rajbhasha souvenirs were also published.

Hindi House Journal viz. 'NMDC Patrika' and 'SHE Samachar' - bilingual quarterly

magazines, Baila Samachar, Bacheli Samachar and Hira Samachar, Monthly Hindi bulletins were published, Doni Samachar-a trilingual monthly bulletin was also published during the year.

NMDC Limited was awarded Steel Ministry's Rajbhasha Shield for 'C' Region for the excellent implementation of the official language policy and progressive use of Hindi during 2008-09. The award was presented by the Honorable Minister of Steel on 29th November, 2010.

NMDC was also selected for Rajbhasha Shield 1st Prize for the year 2009-10 by Town Official Language implementation committee (undertakings) Hyderabad-Secunderabad, for excellent implementation of the Official Language policy.

12.0 Manpower

12.1 Employee-Employer relations

The overall industrial relations situation was peaceful and cordial during the year. There was no strike / lockout affecting the Production and Productivity. The wages / salaries of employees have been revised w.e.f. 01.01.2007.

12.2 Scheduled Castes & Scheduled Tribes

24 persons belonging to Scheduled Castes and 115 persons belonging to Scheduled Tribes were appointed in the year 2010 against 312 posts filled in by direct recruitment.

12.3 Strength of SCs & STs as on 31st March 2011

1. Total number of employees = 6128

2. Scheduled Castes amongst them = 1102

3. Scheduled Tribes amongst them = 1359

4. Total SCs and STs = 2461

5. Physically challenged employees = 38

12.4 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.

The Ministry of Corporate Affairs, Government of India vide GSR No.289 (E) dated 31.03.2011 has raised the limit of employee's salary to be disclosed in the Directors' Report from the existing limit of Rs.2 lakhs per month (Rs.24 lakhs per annum) to Rs.5 lakhs per month (Rs.60 lakhs per annum).

The Ministry of Corporate Affairs, Government of India vide its Circular No.2/29/1998-CL.V (General Circular No.23/2011) dated 3rd May 2011 has subsequently clarified that the said notification shall be applicable to all Directors' Report under Section 217 of the Companies Act, 1956 approved by the Board of Directors on or after 01.04.2011, irrespective of the accounting year of the Annual Account, being approved by the Board.

Accordingly, there was no employee of the Company who received remuneration in excess of the limits prescribed under Section 217(2A) of the Companies Act, 1956 as amended in terms of Companies (Particulars of Employees) Amendment Rules, 2011.

12.5 Staff Welfare activities

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

13.0 HUMAN RESOURCES DEVELOPMENT

Employee development services are delivered through In-Company, External and Foreign Training modes. Training Coverage of all employees was 80%. Training index of JOs and Executives as average training mandays per employee per year was 3.9 and HRD index of all employees in training mandays as percentage of working mandays was 1.27 against a target of 1.1.

13.1 External Training Programmes & In-Company Training Programmes 130 Programmes were attended by 500 NMDC participants. This included about 375 Executives, 87 Workmen and 38 Junior Officers. 80% of participants filed feed back reports on return from training and 88% gave excellent rating.

13.2 Foreign Training Programmes

6 Foreign Programmes were attended by 9 NMDC employees.

13.3 Executive Trainees

48 Executive Trainees joined the training.

14.0 VIGILANCE

Activities of the Vigilance Department in the Company have been revitalized during the year giving special focus on "Preventive & Proactive Vigilance". Periodic Review Meetings with Vigilance Officers were held and during the meetings discussed 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 and the Government from time to time. Based on the studies and inspections, the deviations from the existing procedures have been identified and appropriate remedial / preventive measures have been suggested. Further, Vigilance Department coordinated with the departments in the Company in improving upon the existing procedures to achieve the overall objectives of the Company.

Special emphasis was made on thrust areas - "Study of Purchase, Procurement of major items (Plant, Mining, Electrical) etc., and Civil Works" and system improvements were suggested wherever needed.

Corporate Vigilance Department at Head Office is certified for compliance to ISO Certification 9001:2008 standards. Surveillance Audit was conducted on 18.10.2010 by M/s Integrated Quality Certification (P) Ltd. This has ensured continual improvement in Quality Management Systems.

Integrity Pact has been implemented in the Company in December 2007. Till date, 39 contracts valuing Rs. 9270.00 crores have been covered under Integrity Pact. During the period, new IEMs have been appointed as the tenure of the previous IEMs was completed.

Vigilance Awareness Period 2010 was observed from 25th October to 1st November. Various programmes were conducted including talks by eminent personalities on the topic - "Generation of Awareness and Publicity against Corruption".

The Company is moving towards Open Tender in more and more cases. The percentage of tenders during 2008-09 was 65% and it has gone up to 87.5% during 2010-11. Similarly, the contracts concluded on Single Tender and Nomination basis have come down from 7.3% and 1.7% during 2008-09 to 1.5% and 1% respectively during 2010-11.

15.0 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 2011, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii) 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.

16.0 DIRECTORS

During the year under review, the following were appointed as Directors of the Company pursuant to orders of Ministry of Steel, Government of India:

Name of the Director w.e.f

i) Lt. Gen. (Retd.) Arvind Mahajan 01.04.2010

ii) Shri S. Machendranathan 24.05.2010

iii) Shri G.B. Joshi 13.08.2010

iv) Shri R.N. Aga 03.12.2010 (reappointed)

v) Mrs. Parminder Hira Mathur 03.12.2010

vi) Shri D. Rath 03.12.2010

The following Directors ceased to be Directors on the Board of the Company for the year under review:

Name of the Director w.e.f

i) Shri R.N. Aga 03.06.2010

ii) Dr. (Mrs.) Indira Misra 03.06.2010

iii) Ms. Teresa Bhattacharya 24.12.2010

The Board places on record its deep appreciation for the valuable contribution made by Dr. (Mrs.) Indira Misra and Ms. Teresa Bhattacharya during their tenure on the Board of the Company.

17.0 AUDIT

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 your Company for the year 2010-11:

Sl. No. Name & address of Auditors Units covered

1 M/s Ramamoorthy (N) & Co. Head Office and R&D Centre; 4-1-1229, Gulshan Manzil, Boggulakunta Consolidation, Abids, Hyderabad-500 001. Sponge Iron Unit, Paloncha Silica Sand Project, Lalapur.

2 M/s Sriramamurthy & Co. Bailadila Dep-14/11C, D No. 47-9-39/173C, Sai Sadan Apartments Bailadila Dep-5,10 & 11A, Dwarakanagar, Visakhapatnam-530 016 Central Workshop, NISP, RO, Vishakapatnam

3 M/s. D.V. Sarovar & Co. Donimalai Iron Ore Mine First Floor, D.No. 45/3 Ward No.V, Car Street, Bellary-583 101

4 M/s Hari Gupta & Co, Purvasha Diamond Mining Project 5A/7A, Dr. Panna Lal Road, Panna. Allahabad-211 002

18.0 CORPORATE GOVERNANCE

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.

19.0 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.

20.0 Global Compact - Communication on Progress

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

21.0 Corporate Social Responsibility (CSR)

Being a responsible corporate citizen, NMDC views its business as maximization of value for all stakeholders and CSR is considered to be a vital source of Competitive advantage.

With 'People' at heart of its philosophy and approach to CSR, NMDC is striving to carryout meaningful work in the fields of Education, Health care, sustainable income generation and Agricultural development thus contributing to the Nation building.

Education

Recognizing that education is an integral path of human development, NMDC has been contributing to empower Tribal, Scheduled Caste and Poor children to make it their instrument to fight against poverty, disease & injustice by setting up free residential schools of high quality for tribal children, scholarships to 10000 tribal and poor students in 330 schools in 5 districts of Bastar at an annual expenditure of Rs.4 crores, construction of schools and hostels for students including girl children, mid-day meal to 10000 rural children, setting up ITI's & Polytechnic for technical education, supporting the establishment of medical college & reservation of seats in management institute(IPE) for tribal & poor children.

A Quick Retrospective-Major Education related initiatives of 2010-11

Dantewada, South Bastar

Education Improvement Program in 84 Schools in Dantewada block of Bastar region in Chhattisgarh with a view to improve the quality of education through special coaching before/after school hours, reducing the drop-out rate and main- streaming dropped out children back to the schools has been initiated.

A Polytechnic College with two trades (Mechanical & Electrical) has been established at Dantewada in South Bastar, Chhattisgarh. 112 students are pursuing their studies.

Nagarnar, Bastar

A residential school for tribal children of Bastar region has been established at Nagarnar, Bastar in Chhattisgarh.

194 children from remote villages have been brought into the school in classes I to III through visit of NMDC volunteers to naxal affected areas. The school will be expanded in up to class XII in a phased manner.

Established an ITI with two trades at Nagarnar, Bastar, Chhattisgarh. Further 'Trades' will be added gradually as part of its expansion programme.

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.

A Quick Retrospective - Major infrastructure related initiatives of 2010-11.

Construction of High-level bridge on Sankini river at Dantewada, South Bastar.

Establishment of 5 schools / Hostels in Bastar & South Bastar.

Establishment of Special Schools 'Prayas' at Bhilai & Raipur.

Construction of by-pass road for Jagdalpur.

Healthcare

Access to healthcare is a pre-requisite for societal prosperity. NMDC runs three hospitals at Project sites, in collaboration with M/s Apollo and M/s Yashoda Hospitals offering free medical treatment not only to staff but to the local communities as well addressing the needs of an average 80000 out-patients & 8000 in-patients from local tribals every year.

NMDC operates 'Hospital on Wheels' (HoW) service in Bailadila benefitting about 20000 tribal villagers in 37 Villages by providing free medi-care facilities at their doorsteps.

NMDC has released the balance Rs.10 crores against the committed total financial assistance of Rs.50 crores to State Govt. Of Chhattisgarh for establishment of Medical College at Jagdalpur.

Integrated Development

Initiated Integrated development work in 5 villages in South Bastar, Dantewada, Chhattisgarh in addition to the 8 villages where similar works are already in progress focusing on Literacy, Health & Hygiene, Agriculture, Infrastructure development & Income generation activities.

Promotion of Sports

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

22.0 IMPLEMENTATION OF RIGHT TO INFORMATION ACT, 2005

Your Company is proactively complying with the provisions of the Right to Information Act, 2005. All information sought under the Act have been furnished within the stipulated time period.

23.0 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 crores and procurements above threshold value of Rs.10.00 crores are the subject matters of Integrity Pact.

3. After the implementation of said programme, Head of Safety Department 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 date a total of 41 cases of tenders with a value of Rs.9810.55 crores were covered under the Integrity Pact.

24.0 LIST OF AWARDS RECEIVED BY THE COMPANY

1. NMDC received Dun & Bradstreet - Rolta Corporate Award 2009 under Mining category.

2. CMD, NMDC was awarded Mine Tech 10 Life Time Achievement Award for his contribution for the overall development of Indian non coal mining industry by Indian Mining and Engineering Journal on 07.05.2010.

3. NMDC was awarded Fe - EVI Green Business Leadership Award under Metals & Mining category for excellence in the area of environment and green business on 05.06.2010.

4. On 26th April 2010, NMDC received Greentech Safety Award 2010 (Silver Award) in Metal & Mining Sector for outstanding achievement in Safety Management for Bailadila Iron Ore Project Deposit-5, 10 / 11A from Hon'ble Minister for Power, Government of India.

5. On 1st December 2010, Director (Per) received PSU Excellence Award for Corporate Social Responsibility and Responsiveness from Hon'ble Minister for Heavy Industries, Government of India.

6. On 29th November 2010, NMDC received Steel Ministry's Rajbhasha Shield for Region 'C' for best implementation and use of Official Language for the year 2008-09 from Hon'ble Minister for Steel, Government of India.

7. On 15th February 2011, CMD, NMDC received "NIPM Ratna" Award from National Institute of Personnel Management, New Delhi Chapter.

8. On 14th March 2011, NMDC received the best Supply Chain Management award in the mineral sector as per the survey conducted by the Centre for Monitoring of Indian Economy.

25.0 ACKNOWLEDGEMENT

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

(Rana Som)

Chairman-cum-Managing Director

Place : NEW DELHI

Date : 27.05.2011

---

Mar 31, 2010

On behalf of the Board of Directors, I take pleasure in presenting the 52nd Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31 March 2010 and the Report thereon by the Comptroller and Auditor General of India.

1.0 PERFORMANCE HIGHLIGHTS

- Turnover for the year under review was

Rs.6239 crore compared to Rs.7564 crore in the previous financial year 2008-09 recording a decrease of 18%.

- Profit before tax was Rs.5207 crore compared to Rs.6648 crore in the previous financial year 2008-09 recording a decrease of 22%. Profit after tax was Rs.3447 crore compared to Rs.4372 crore in the previous financial year 2008-09 recording a decrease of 21%.

- Net worth increased to Rs. 14250 crore as on 31.03.2010, 23% higher than Rs.11615 crore in the previous financial year 2008-09.

- Interim Dividend @ 75% on the equity shares of Fle.l/- .each aggregating Rs.297.35 crore was paid.

- As an MoU singing PSE with the Government of India, your Companys performance during the year qualifies for excellent performance.

- Supply of Iron Ore to domestic industries recorded 206.53 lakh tones as against the previous year supply of 225.98 lakh tonnes, recording a decrease of 9%. Total exports of Iron Ore during the year was 34.32 lakh tonnes against 38.74 lakh tonnes in the previous financial year 2008-09 recording a decrease of 11%.

- During the year 194.05 lakh Kwh Power has been generated by wind electricity generators as compared to 65.46 lakh Kwh of power in the previous financial year 2008-09.

I am pleased to present in brief the physical and financial performance of your Company during the year under review:

2.0 PHYSICAL PERFORMANCE

2.1 Production

Product Achievement Percentage change 2008-09 2009-10

Iron Ore (lakh tonnes) 285.15 238.03 (-)17%

Diamond

(Carats) - 16529.21 100%

Note:

a) The Honble Supreme Court of India has granted permission for re-opening , of Diamond Mining Project for a maximum period of 15 years with certain conditions. After fulfilling the conditions, the project work started on 20th June, 2009.

b) Silica sand mining operations are suspended since November, 2007 due to commercial reasons and the Lalapur Silica sand mines are kept under care and maintenance.

2.2 Sales of Iron Ore

(In lakh tonnes)

Product Achievement Percentage change 2008-09 2009-10

Domestic 225.98 206.53 -9%

Export through

MMTC 38.74 34.32 -11%

Notes:

a) Production and sales of Iron Ore were partially affected in 2009-10 due to constraints caused by Maoist activities in evacuation of products from Bailadila mines.

b) The effect of recession continued during the first quarter of 2009-10.

c) The serious damage to Essar pipeline affected evacuation.

2.3 Other Sales

Products Achievement 2008-09 2009-10

a) Diamond

Sales (carats) - 7335.34

Value (Rs. in crore) - 6.94

b) Silica Sand

Sales (lakh tonnes) 0.02 --

Value (Rs. in crore) 0.08 --

c) Wind Power

Sales (lakh KWh) 65.46 194.05

Value (Rs in crore) 2.22 6.57

3.0 FINANCIAL PERFORMANCE

3.1 Operating Results

Parameter Achievement Percentage change 2008-09 2009-10

Profit Before Tax (Rs. in crore) 6648 5207 (-)22%

Net Worth (Rs. in crore) 11615 14250 23%

Book value per share (Rs.) 29.30 35.94 23%

Earnings per Share (Rs.) 11.03 8.69 (-)21%

3.2 Profit & Dividend

During the year under review, your Company has earned profit before tax of Rs.5207 crore on a turnover of Rs.6239 crore in" comparison with those of previous years achievement of Rs. 6648 crore and 7564 crore.

The Company has paid interim dividend @ 75% on . the equity shares of Re.1/- each aggregating Rs.297.35 crore. The Board has recommended subject to shareholders approval, payment of final dividend of Rs.396.47 crore. (Total dividend aggregating Rs.693.82 crore).

4(0 DEPOSITS

The Company has not accepted any Fixed Deposits during the year under review.

5.0 NEW PROJECTS & BUSINESS DIVERSIFICATIONS

5.1 Projects under construction

5.1.1 Bailadila deposit-11/B

To achieve targeted production of 50MTPA by 2014 - 15 the construction of Deposit 11B mine at expanded capacity of 7.0 million tones of ROM per annum has been taken on priority. The estimated capital expenditure towards this is Rs.607 crore. Out of which Rs.320 crore is for Plant and Rs.188 crore is for mining machineries. Expenditure incurred till 31st Mar10 for the plant is 213 crore. Due to Naxalite activities progress of the project work is getting hampered. The expected date of completion is March 2011. Project progress till 31st Mar10 is 56%.

5.1.2 Uniflow System at Bacheli

M/s East Coast Railways have been assigned the work of execution of the "Construction of Uniflow Dispatch Line at Bacheli on K.K. Line of East Coast Railways of Waltair Division for Civil, OHE and S&T works" as a Deposit Work for which an amount of Rs.15,60,86,038/- has been deposited with East Coast Railways on 02.01.2006 towards the estimated cost of the work based on the detailed estimate for Civil, S&T and OHE submitted by M/s East Cost Railways. This has since been revised by Railway due to adverse ground-condition of the area.

M/s East Cost Railways have invited the Tender for execution of balance works such as earth work in formation, minor-bridges, RCC retailing walls, drains, protection works, ballast supply, transportation of P-way-materials, P-way linking and other misc. works. Tender was opened on 23.03.2010 and further finalization of the contract for execution of work by M/s East Cost Railways is in progress. The time for completion of work is 15 months from the date of award of work by M/s East Coast Railways. >

5.1.3 Fourth Line in Screening Plant-ll of Bailadila-14/11C

The work of installing Fourth line in Screening Plant II of Bld-14/11C was awarded to M/s TRF and the firm completed the work and the Performance Guarantee test conducted during November 2009. Report of the Performance Guarantee test is under approval.

5.1.4 Slime-based Pig Iron Plant at Jagdalpur

Matter related to setting of slime based Pig Iron Plant has since been closed because of construction of ISP.

5.1.5 Merger of Sponge Iron India Limited

The Scheme of Amalgamation/Merger between the Company and Sponge Iron India Ltd has been approved by Ministry of Corporate Affairs, Government of India (MCA) pursuant to its order dated January 18, 2010. In view of disinvestment of shares by. Govt, of India and to facilitate consolidation of accounts, the Company through its Legal Counsel to the merger process Amarchand & Mangaldas has made an application to MCA seeking orders for further extension of time upto 2nd July, 2010 for filing the sanction order with Registrar of Companies, Hyderabad. Orders from MCA are awaited.

5.1.6 Kumaraswamy Iron Ore Project

To compensate the depleting reserve of Donimalai Iron Ore Mine and augmenting production capacity towards achieving the target of 50 MTPA, the construction of Kumaraswamy mine with capacity of 7.0 MTPA was envisaged. MEGON is appointed as EPCM consultant. The entire project has been planned to be executed in six packages. Tender Enquiries floated for packages 1, 2 & 3 (Crushing Plant Package, Downhill Conveyor Package & Electrics and Substation package) and the same are under various stages of finalization. Down hill conveyor Package (Package -2) is the most critical Package & the project completion / commissioning is 24 months from the date of issue of LOA for this package.

5.1.7 Windmill in Karnataka

9.0 MW Wind Power Project has been commissioned on 30th September 2008 and connected to KPTCL grid. 1.5 MW Wind Energy Farm has been commissioned on 31st March 2009 and connected to KPTCL grid.

5.1.8 Low Silica Limestone Project, Arki (HP)

Mining Lease is due in August 2010. Joint inspection of Mining Lease was done by a Committee of SDM, DFO and officials from PED, PHED, HPSCB and Mining Office on 7th April, 2010. Mining Officer, Solan, has forwarded inspection report for the State Geologist on 30.04.2010. Inescapability certificate for 1851.03 Bigha of Private land issued by Deputy Commissioner, Solan to Commissioner of Industries on 09.09.2009. Additional Secretary advised Commissioner of Industries to obtain approval of Principal Secretary (Rev) for relaxation under Revenue Land Maximum Limit Amendment Act, 1972. NMDC vide letter dated 17.03.2010 has also requested Principal Secretary (Rev) to accord relaxation as desired. Draft P&R scheme has been prepared as per guidelines of State Government. Application for Govt. / Forest land (84.36 Hect) was submitted on 01.09.2009; RO submitted tree enumeration and revenue details to DFO on 27.01.2010; DFO made inspection on 10.02.2010. Public Hearing was conducted successfully on 12.01.2010. Director (Env. S&T) / Member Secretary, State Pollution Control Board forwarded proceedings of PH to the Secretary, Ministry of Environment & Forest. NMDC has requested Govt, of Himachal Pradesh, HPSCB and Ministry of Environment & Forest to consider transport of Limestone by road for 4 - 5 years as per TOR issued by Ministry of Environment & Forest. Application has been submitted to the Commissioner of Industries for permission to draw water from Gambhar Khad as per the scheme of I & PH Dept. on 04.01.2010. MoU was signed between NMDC & SAIL on 16.11.2009. Working Group met on 06.01.2010 and decided action plan. Corpus fund is being created. Scope of work for feasibility report has been finalized. Working group visited Arki mine, ACL mine, Plant and proposed siding at Bharatgarh and decided further course of action. As per the advice of State Geol, action has been initiated for submission of application for inclusion of left out areas in Mining Lease boundary.

5.1.9 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 to produce dead burnt magnesite. The Joint Venture is named as J&K Mineral Development Corporation Ltd 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 157th meeting held on 30.11.2009 decided to review the project. Subsequently Board of NMDC decided to review the project by setting up a 30,000 TPA Dead Burnt Magnesite plant.

Mining Lease has been renewed for further period of 10 years in favour of NMDC. Public hearing has been conducted successfully and public hearing proceedings forwarded by J&K SPCB to MOEF, New Delhi. W.O has been issued in favor of M/s.MN Dastur as EPCM consultant. Demand note has been raised by SMVDSB towards tree felling, compensatory afforestation and NPV.

5.2 Joint Ventures

5.2.1 Bailadila Iron Ore Deposit-13

Your Company has formed a Joint Venture Company NMDC-CMDC Ltd. with CMDC to develop Deposit 13 as a stand alone project of 10 MTPA. Necessary statutory clearances / approvals to execute the project are awaited.

5.2.2 Bailadila Deposit-4

It is envisaged to develop Deposit 4 as joint venture with CMDC as a stand alone project for supplying raw material to the steel plant at Nagamar.

5.2.3 Rail Link between Dalli-Rajhara - Raoghat Railway Line Project

Two Tahsils under Bhanupratappur Sub-Division have been affected due to construction of Railway line. (1) Bhanupratappur Tahsil (2) Anthahgarh Tahsil. Land acquisition was done in 15 villages of Bhanupratappur Tahsil and 12 villages of Anthagarh Tahsil. Action has been taken for land acquisition in 27 villages in two Tahsils. Land registration has been completed in both the Tahsils and the land was handed over to Railway Department well in time.

The construction of quarters for Railway staff in Village-Kanhargaon and construction of Railway office at Bhanupratappur was already commenced and the construction of Railway track is under progress.

5.2.4 International Coal ventures Limited (ICVL)

The Joint Venture company International Coal ventures limited (ICVL) has been incorporated.

The opportunities for acquisition of coal properties abroad were pursued in Australia, Indonesia, Canada and USA.

5.2.5 Memorandum of Understanding with Department of Mines & Geology (DMG), Govt, of A.P., Andhra Pradesh Mineral Development Corporation (APMDC), Govt, of A.P. and NMDC Limited for Mineral Exploration in the State of A.P.

Your Company has entered into an MoU on 29th January, 2010 with Department of Mines & Geology (DMG), Govt, of Andhra Pradesh and Andhra Pradesh Mineral Development Corporation (APMDC), Govt, of Andhra Pradesh for mineral exploration in the State of Andhra Pradesh.

Details in respect of any other Joint Ventures.

5.3 Foreign venture

5.3.1 Tanzania

In Tanzania, your Company is pursuing the gold exploration works in BulyangOmbe and Siga Hill area. NMDC has been granted Retention Licence at BulyangOmbe and Siga Hill areas. EIA/EMP report for BulyangOmbe area submitted to National Environmental Management Committee (NEMC) for its approval. EC expected shortly, which shall enable grant of Mining Lease.

5.3.2 Tunisia „

Your company participated for the SRA Ouertane Project in Tunisia in consortium with Rashtriya Chemicals and Fertilizers (RCF) as lead member, Krishak Bharati Cooperative Limited (KRIBHCO) and Gujarat State Fertilizers Company (GSFC) submitted a Non-binding Pre-qualification bid for a Rock Phosphate deposit.

The lead member - M/s Rashtriya Chemicals and Fertilizers (RCF) in the consortium made an macro financial review of the project and dropped the proposal for further participation in view of the perception of financial risk involved and also the uncertainties with respect to basic infrastructure such as water availability, ports and railways till getting firm commitment as well as start of development of infrastructure by the Govt, of Tunisia. The non-commitment of lead sponsor - M/s RCF to the submission of binding offer canceled the whole process.

5.3.3 Australia - Your company has submitted proposal in consortium with ABS Boulder for acquiring stake in Ridley Magnetite Iron Ore project in Australia.

5.4 Leases for minerals

5.4.1 Iron Ore

5.4.1.1 In respect of Bailadila-1 & 3

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

5.4.1.2 The PLs being pursued in Chhattisgarh are -

Your Company has applied 8 PLs in 2006-07 & 2007-08 in Dantewada District. In addition to that, your company has also identified 4 new Iron ore area and applied for PLs in Dantewada and 3 PLs in Kanker districts in July / Sept - 09. Your Company is pursuing all the applied PLs with Chhattisgarh Govt.

5.4.1.3 In Jharkhand

Sasangada: Your Company applied for PL/ML 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).

Your Company has signed MOU with Dept. of Mines & Geology (DMG), Jharkhand for exploration Iron ore & other minerals in the State of Jharkhand. Under the MoU signed, your Company shall be taking up exploration for iron ore in West Singhbhum Dist. (Silpunji -Kanturia & Sasangada area).

Ghatkuri (Notified Forest): Your Company is pursuing 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 PSUs. The case is pending before Honble Supreme Court of India. In addition, your company is also pursuing for MLs for Budhaburu, Ankua RF and Jhilingburu.

5.4.1.4 In Karnataka

Your Company is pursuing for ML for Ramandurg, Kumaraswamy (contiguous to ML No.1111), Kudre Kanive Kaval, Jaisingpur, Bhavihalli, Narayanpura, Vyasanakere & Hanumanhalli, Sy. No. 278 of Kenkere, Ramthal & Aihole, Bababudangiri.

5.4.1.5 In Orissa

Your Company is pursuing for ML for Mankadnacha.

5.4.2 Gold

5.4.2.1 In Jharkahand

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

5.4.3 Diamond

5.4.3.1 In Andhra Pradesh

Your Company is carrying out exploration work in

5 PLs (Revenue area) of Kalyandurg area, Anantapur Dist. Your Company is pursuing forest permission for exploration in the other 3 PLs falling in the Forest area.

5.4.3.2 In Madhya Pradesh - 4

Your Company has been granted 2 PLs (Baghain

6 Sarang) and exploration work is in progress. Your Company is also pursuing for other 3 PLs viz., Rampura, Karmatia & Lakshmipur for early grant in favour of NMDC.

Your Company has also been granted RP over and area of 2092 Sq. Km in Tikamgarh District, M.P. for

diamond exploration. Application for forest clearance has been submitted. After obtaining forest clearance, RP work will be taken up.

5.4.3.3 Beach Sand

Your Company carried out exploration for Beach Sand in Ganjam Dist., Orissa. As the results are not promising, the area has been relinquished.

5.4.4 Platinum Group of elements

5.4.4.1 In Uttar Pradesh

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

5.4.5 Coal

5.4.5.1 In Chhattisgarh, your Company has applied for 8 Coal Blocks viz. West of Beijin Phatepur, Girari, Gitkum/yari, Ongaon-Potia, Batatikolga Central, Puta Parogia & Karline and Tara Coal Block in Raigarh and Sarguja District.

5.4.5.2 Your Company has applied afresh for 4 Coal Blocks in Jharkhand viz. Pachwara South, Tokisud South, Rautpara and Parabatpur (North).

5.4.5.3 In Madhya Pradesh, your Company was granted 2 underground Coal Blocks viz. Shahapur

East and Shahpur West in Sahdol District. The Coal exploration in the above 2 Blocks has been completed by MECL (Nagpur) and Geological Report is prepared. Mining lease is applied for and Mine plans are under preparation for submission to Ministry of Coal.

5.4.5.4 In Orissa, your Company has applied for 1 Coal Block i.e. Kupano- Labo.

5.4.6 Bauxite

5.4.6.1 In Jharkahand

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

5.4.7 Dolomite:

5.4.7.1 In Chhattisgarh

Your Company is pursuing ML application for Sadartera Dolomite Block in Bastar District.

5.5 Business Diversification

Your Company has undertaken various business diversification initiatives as under:

5.5.1 3.0 MTPA Integrated Steel Plant in Chhattisgarh

- In-Principle decision is taken for setting up of 3.0 MTPA integrated Steel plant at Nagarnar, near Jagdalpur, Chhattisgarh where NMDC already has 995 acres of land in its possession.

- Foundation stone for the plant has been jointly laid on 03.09.2008 at the hands of Honorable Shri Ram Vilas Paswan, Union Minister for Chemicals, Fertilizers and Steel and Shri. Raman Singh, Chief Minister of Chhattisgarh.

- MOUs have been signed between Chhattisgarh Government and NMDC as well as between NMDC and CMDC on 03.09.2008.

- IEM (Industrial Entrepreneur Memorandum) acknowledgement received on 18/11/2008.

- TEFR & Investment of Rs. 15,525 crore approved by Board on 07.01.2010.

- Environment Clearance already received on 15.09.09.

- Rail transport clearance received on 17.02.09.

- Railway consultant has been appointed on 29.12.09 and preparation of feasibility report is under progress.

- State Govt, of Chhattisgarh has already sanctioned water for construction and operation purpose.

- Chhattisgarh State Power Distribution Company Limited has approved and agreed to construct power line to make construction power available by end July 2010.

- Discussions are in progress with Chhattisgarh State Power Distribution Co. Limited & Chhattisgarh State Power Transmission Co. Limited for operational power.

- Acquisition of additional private land of approx. 787.62 acres is in advanced stage at Dist. Administrative level.

- Allotment of Govt. Revenue land of 102.64 acres is under consideration of Government of Chhattisgarh.

- The process of short listing of technology suppliers for 6 major packages has been already completed and remaining 2 major packages will be completed by end of May 2010. NMDC decided to set up Oxygen plant package on BOO basis.

- Out of 8 major packages, Limited Tender Enquiry for 3 packages has been already floated.

- Process for appointment of consultant on EPCM (Engineering Procurement & Construction Management) is in progress.

- Forest clearance for 25.72 Hect. (63.56 acres) forest land is awaited to. enable start construction activities.

5.5.2 2.0 MTPA Pellet Plant in Chhattisgarh

The main objective of this project is to prolong the life of Tailing Dam at Bacheli Complex. TEFR has been prepared. Design basis for Pellet Plant Bacheli is frozen. W.O has been issued in June 09 in favour of M/s MN Dastur as EPCM consultant. Execution of Project is divided into Six Packages. The estimated capital expenditure towards this is Rs.807 crore. Now it is planned to construct the Pellet Plant adjacent to Steel Plant at Nagarnar. Raw material will be transported through a slurry pipeline. The comple ^sal is being prepared.

5.5.3 1.2 MTPA Pellet Plant at Donimalai

The main objective of this project is to prolong the life of Tailing Dam at Donimalai. TEFR has been prepared. Survey work Completed. Soil investigation Completed. Design basis for Pellet Plant Donimalai is frozen. W.O has been issued in June 09 in favour of M/s MN Dastur as EPCM consultant. Execution of Project divided into Six Packages. The estimated capital expenditure towards this is Rs.572 crore. Tender Enquiry floated for Pelletization, Beneficiation, Site leveling & MRSS Packages.Project is scheduled to be completed by Sep12.

5.5.4 MOU has been signed with the West Bengal Mineral Development & Trading Corporation Limited for exploring coal blocks allotted to them. No further development.

5.6 New Initiatives

5.6.1 SOLAR POWER PLANT

Your Company is venturing into to development of solar power development projects in India. It plans to register as a Solar power developer under the Jawaharlal Nehru National Solar Mission (JNNSM) for which NTPC Vidyut Vyapar Nigam Limited (NVVN) has been appointed as nodal agency by Ministry of Renewable Energy, Government of India.

5.6.2 A Demonstration beneficiation plant for BHJ is being considered at Donimalai (3 LAKH TPA). The flow sheet has been finalized. MECON has been finalized as Consultant for preparation of TEFR.

5.7 Strategic alliances

5.7.1 Your Company signed MOU with Rio Tinto India Private Limited to co-operate in investigating mutually advantageous potential investment opportunities primarily for iron ore and other commodities both within India and globally.

5.7.2 Moving globally your Company has also joined hands with Kopano Ke Matla Investment Company (Pty) in the Republic of South Africa for e oloring and exploiting the mineral resources in _ _ jth Africa.

5.7.3 Your company signed MOU with Tata Steel on 22nd Jan, 2010 to jointly explore the possibility of setting up integrated steel plants, downstream value-addition projects, acquisition and development of mineral resources for steel making etc.

6.0 R&D ACTIVITIES

Details as required under the Companys Rules 1988 (Disclosure of particulars in the Report of Board of Directors) are at Annexure-I.

7.0 SUBSIDIARY COMPANIES

7.1 J&K Mineral Development Corporation Ltd(JKMDC)

The annual report of the subsidiary company is annexed.

7.2 NMDC-CMDC Ltd (NCL)

The annual report of the subsidiary company is annexed.

7.3 NMDC SARL, Madagascar

The annual report of the subsidiary company is annexed.

7.4 NAM - India MDC (Pty) Ltd, Namibia

The annual report of the subsidiary company is annexed.

7.5 Statement pursuant to section 212 of the Companies Act, 1956, pertaining to the Subsidiary Companies is at Annexure-ll.

8.0 ENVIRONMENT MANAGEMENT:

Your Company prompted to design, develop, document and implement Environmental Management Systems in line with ISO 14001 Environmental Management System standards at all its Iron Ore and Diamond production projects, with the aim of strengthening and achieving continuous improvement in environmental performance.

- The four major production projects, Bailadila Dep-14/11C, Dep-5, Donimalai and Diamond Project have been accredited with ISO 14001- 2004 EMS by M/s DNV, Hyderabad. The Environment Management System Certification was issued on 4.12.2008 and is valid up to 2011.

- The Corporate approach to environmental management seeks continuous improvement in performance by taking account of evolving scientific knowledge and community expectation.

- Environmental monitoring studies at all the production projects have been successfully completed for the year 2009 to 2010 by the MOEF recognized external agencies and also by Jhe respective State Pollution Control Board- authorities. The studies indicate that SPM, RPM, S02, NOx and CO levels at all the production projects are well within the prescribed limits as per CPCB and State Pollution Control Board Standards.

9.0 SAFETY

Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of, basic training, refresher training and training for skilled workers and also for those injured on duty.

In each mining project of NMDC sufficient - number of workmen inspectors are nominated/ appointed for mining operations, mechanical and electrical installations as per statutory requirements.

Mine Level Tripartite Safety Committee Meetings have been conducted in each of the operating mines. Except DMP, Panna all the projects have conducted the meetings this year. 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 is made and the recommendations are implemented.

Tripartite Safety Committee Meetings are being held regularly once in a year at Head Office. This year due to changes in Zonal/Regional Offices of DGMS, Corporate Level Tripartite Safety Committee Meeting will be conducted with the consultation of DGMS officials at the earliest.

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 2009-10 is 3.01 against 5.66 for the year 2008-09.

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. Certification Audits were conducted successfully at BIOM, Kirandul Complex and BIOM, Bacheli Complex in the month of November 2009. II Surveillance Audits were conducted successfully at Donimalai Iron Ore Mine in the month of February 2010 and at R&D Center in the month of October 2009.

OHSAS 18001:2007 Certification:

NMDC Projects - BIOM, Kirandul Complex, BIOM, Bacheli Complex and Donimalai Iron Ore Mine are accredited with OHSAS 18001:2007 Certification in the month of December 2009. -

OHS Activities:

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

Periodical Medical Examination under statute is carried out regularly in all the projects, with a planned programme. All the results are computerized and individual files are being maintained.

11.0 IMPLEMENTATION OF OFFICIAL

LANGUAGE POLICY

Successful efforts for the implementation and progressive use of Official language were made by NMDC Ltd. in all its production Units and Head Office during the year 2009-10.

Training in Hindi was imparted to the employees. Hindi-Workshops were also conducted for the officers and employees having working knowledge of Hindi. Various programmes such as "Hindi Divas, Hindi Pakhawada, Rajbhasha Maah", District level competitions in Hindi etc were organized during the year to bring awareness among the employees and their family members and also among the employees of other offices situated in and around Head Office and various production

Units. Incentive Schemes at Central and Regional level were implemented and suitable prizes were awarded to the eligible employees.

Rajbhasha Technical Seminars in Hindi were organized during the year in Production Units. Rajbhasha Souvenir and technical Seminar books were also published. Apart from these publications - Hindi House Journals viz. NMDC Patrika published bi-lingual along with Baila Samachar, Bacheli Samachar, Hira Samachar - monthly Hindi bulletins and Doni-Samachar tri- lingual monthly bulletin were published.

During the year NMDC Ltd. has also conducted Hindi Officers meet under the auspices of Steel Ministry in which Hindi Officers of all the PSUs of Steel Ministry including Hindi Officers from the Ministry participated.

NMDC Ltd was awarded the Government of Indias Indira Gandhi Rajbhasha Puraskar (2nd Prize) for excellent implementation of the Official Language policy and progressive use of Hindi amongst the PSUs of Region C for the year 2007-08. Sri Rana Som, CMD, NMDC Ltd. received the shield from Her Excellency President of India Mrs. Prathibha Patil at a function held at Vignan Bhavan, New Delhi on Hindi Divas, 14th September, 20Q9.

NMDC Ltd. was also awarded Rajbhasha , Shield - 1st prize for the year 2008-09 by Town Official Language implementation committee (undertakings) Hyderabad-Secunderabad, for excellent implementation of the Official Language policy amongst the PSUs situated in twin cities.

12.0 Manpower

12.1 Employee-Employer relations

The overall industrial relations situation was peaceful and cordial during the year. There was no strike/lockout affecting the Production and Productivity.

12.2 Scheduled Castes & Scheduled Tribes

122 persons belonging to Scheduled Castes and 152 persons belonging to Scheduled Tribes were appointed during the year 2009 against 609 posts filled in by direct recruitment.

12.3 Strength of SCs & STs as on 31th March 2010

1. Total number of employees = 5895

2. Scheduled Castes amongst them = 1072

3. Scheduled Tribes amongst them = 1303

4. Total SCs and STs = 2375

12.4 Physically challenged = 37

12.5 Particulars of employees drawing Rs.2 lakhs per month or Rs.24 lakh per annum under Section 217 (2-A) : NIL

12.6 Staff Welfare activities

Education, health and township facilities, workers participation in Management Scheme and other Bipartite fora have been functioning satisfactorily. Inter Project Tournaments, both indoor and outdoor, cultural programmes etc. were held in different Projects during the year.

13.0 HUMAN RESOURCES DEVELOPMENT

Your Company has taken various HRD initiatives during the year under report 81% of the employees were covered in various training events. HRD index, i.e. training mandays/working mandays achieved for all the employees during the year is 1.21 against the target of 0.99.

13.1 In-Company Training Programmes

Your Company conducted 11 in-company training programmes covering 237 employees during the period under review. The areas covered include Pygmalion Manager, Disciplinary Proceedings, Auto Desk Auto Cad, Finance for Non-Finance, MDP, Legal Aspects of Tenders, Contract Management & Arbitration etc.

13.2 External Training Programmes

Your Company nominated 348 executives to 126 External Training Programmes during the year under report.

13.3 Foreign Training Programmes

Your Company deputed 20 Executives to attend training/seminars/conferences and study tours abroad in 7 events during the year.

13.4 Executive Trainees

Your Company recruited 92 Executive trainees (Mining, Mechanical, Electrical Civil, Mineral Processing, Materials Management, Geology, Industrial Engineering, Commercial and Finance) during the year.

14.0 VIGILANCE

Your Companys Vigilance Department is certified to confirm to ISO 9001 : 2008 Quality Management Systems. Vigilance Department is playing a productive role for continuous simplification of systems and procedures to facilitate faster and effective decision making in a transparent manner. To ensure compliance of laid-down systems and procedures, Vigilance Department conduct surprise checks, regular inspections and CTE type inspections. Based on the outcome, preventive / administrative actions and system improvements are initiated. Awareness programmes are conducted in all units of the organization to sensitize employees on the evil effects of corruption.

15.0 DIRECTORSRESPONSIBILITY 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 ending 31st March 2010, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii) The Directors have selected such Recounting 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 or loss of the company for the year under report; t

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) that the Directors have prepared the annual accounts on a going concern basis.

Q DIRECTORS

During the year under review, the following were appointed as Directors of the Company pursuant to orders of Ministry of Steel, Government of India:

Name of the Director w.e.f

i. Shri Y,K. Sharma 19.06.2009

ii. Shri Abdul Kalam 19.06.2009

iii. Shri rvS. Raju 19.06.2009

iv. Shri S.Thiagarajan 09.07.2009

The following Directors ceased to be Directors on the Board of the Company for the year under review:

Name of the Director w.e.f

i. Shri K.R. Venkateswarlu 30.06.2009

ii Shri B.S. Meena 23.01.2010

The Board places on record its deep appreciation for the valuable contribution made by Shri K.R. Venkateswarlu and Shri B.S. Meena during their tenure on the Board of the Company.

17.0 AUDIT

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 your Company for the year 2009-10:

SI No. Name & address of Auditors Units to be covered

1. M/s. Ramamoorthy (N) & Co., Head Office and R&D Centre; 4-1-1229, Gulshan Manzil, Silica Sand Project, Lalapur Boggulakunta, Abids, Consolidation Hyderabad-500 001

2. M/s. Sriramamurthy & Co. Bailadila Dep-14/11C, D No. 47-9-39/173C, Bailadila Dep-5,10 & 11 A, Sai Sadan Apartments, Dwarakanagar, Central Workshop, Visakhapatnam-530 016 NISP, RO, Vishakapatnam

3. M/s. D.V. Sarovar & Co, Donimalai Iron Ore Mine First Floor, D.No. 45/3 Ward No.V, Car Street, Bellary-583 101

4. M/s. Hari Gupta & Co, Purvasha, Diamond Mining Project, Panna 5A/7A, Dr. Panna Lai Road, Allahabad-211 002

» 18.0 CORPORATE GOVERNANCE

The details on Corporate Governance are given at Annexure-lll.

19.0 Report on Management Discussions

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

20.0 Corporate Social Responsibility

At NMDC, the purpose of its business is maximization of value for all stakeholders and CSR is considered as a source of competitive advantage.

The focus of our CSR initiatives is integrated development of community in the .villages surrounding our establishments which are among the most backward tribal villages of India.

NMDC has initiated integrated development of villages to facilitate sustainable Income generation through employment / self employment by targeting education and skill development. NMDC is also offering facilities in healthcare and infrastructure to enable the beneficiaries engage in income generation activities.

List of Major CSR Initiatives take up during 2009-10

Integrated Development of Villages

Pre-project survey taken up in 58 villages and completed in 45 villages. Integrated development works initiated in 8 villages during 2008-09 are in progress. Further, integrated development activities of 5 villages in Bailadila @ Rs 820.32 lakhs are to be initiated shortly.

Hospital on Wheels

Hospital on Wheels facility launched on 1/1/2009 to provide Medicare in ^villages predominantly inhabited by tribals, inBailadila is running successfully.

Medical Vans equipped with ultra modern medical equipment are visiting the villages every day. For Hospital on Wheels, the requisite manpower inclusive of two duly qualified Doctors has been provided.

During the year 2009-10, 29552 patients have been treated.

Scholarship Scheme

The Scholarship Scheme to motivate SC/ST students to pursue studies beyond 8th Class upto Degree in Engg/Medicine is in operation in five Districts of Bastar & eight villages surrounding Donimalai Project.

For the 2008-09 academic year, an amount of Rs. 209M fakhs covering 6404 students has been disbursed Waking the total outgo ©n Scholarships at Rs. 252:55 lakhs for ttie a<&demic year 2S08-09.

For the Financial year 2009-10,the member of Scholarships is around 23000 at at cost of Rs. 650-lakhs.

Educattion

Activities relating to the establishment of residential Schools at Geedam Kuwakonda, Dantewarda and Nagandar in Chhattisgarh Sitapur in UP, Pofftecrrnic at;Danewada and Nagahhaar as well as ITT at Nagahhar are in various stages of progress.

Literacy improvement programme in 84 schools of Dantewada @ Rs.388.02 lakhs to be initiated shortly.

Mid-day meal Programme

Mid-day meal prografrtfrie covering 10,000 children in & around Donimalai Project is running successfully.

Skill Development

Skill Development workshops on Jute / Bamboo / B6II Metal / Terracotta / Sisal crafts to develop the latent skills of the Bastar Villagers have been organized. The results are very encouraging & are yielding revenue to the trained un-employed youth.

Schemes with partnership of State Governments

Works relating to Solar Electrification in Dantewada and Kuwakonda blocks and Solar Lighting in the houses and on the roads in Bijapur, Dantewada, Bastar and Narayanpur Districts of Chhattisgarh @ Rs. 1611.29 lakhs are nearing completion.

Work on the establishment of a GurukulAstha for SC/ST/OBC Orphans at Geedam @ Rs 1291.19 lakhs has commenced.

During 2009-10, an additional contribution of Rs 375 lakhs for the construction of houses for the slum-dwellers in Bellary District, Karnataka has been made. With this the total contribution is Rs 1875 lakhs till date.

Apart from the contribution of Rs 558.34 lakhs for creating of various kinds of infrastructure in Chhattisgarh, NMDC has committed an additional amount of Rs.6853.86 lakhs for a variety of works including By-pass road to Jagdalpur as proposed by the State Authorities.

Infrastructure Development

Expenditure on various infrastructure development works viz., Roads, Culverts, Community Halls etc has been to the tune of Rs 1303.93 lakhs.

CSR works in other than peripheral areas

- Construction of Flood, Relief Shelter at Kusheshwar Asthan, Bihar is in progress.

- Establishment of a Residential School in Sitapur Dist, UP is in progress.

- Hospital on Wheels facility in Sitapur & Lakhimpur Kheri Districts of U.P. in operation.

- Contributed Rs. 1000 lakhs for Flood Relief works in Andhra Pradesh & Karnataka.

- Relief to victims of Fire accident at Rohru, H.P.

- Relief to flood victims in Rohru, H.P.

- Contribution of Rs 50 lakhs for the establishment of Multi Disciplinary Hospital at Hyderabad.;

Promotion of Sports

- Promotion of Archery in Chhattisgarh.

- Sponsorship of World Snooker championship 2009.

- Promotion of Handball in Chhattisgarh.

- Sponsorship of National Rapid & Blitz Championships 2009.

- Support to District Football Association, Panna.

- Provided Sports material to Nagarnar, Amaguda & Manganpur Gram Panchayats.

Misc. CSR activities

- Support to Ramakrishna Mission Sanatorium, Ranchi for the purchase of Vehicles.

- Sponsorship of Rajyotsava Chhattisgarh 2009.

- Contribution to Bastar Dussehra Lokotsav 2009.

- Assistance to M/s SPIC MACAY.

- Assistance to International Levi Festival at Shimla.

- Financial Support to various other reputed Organizations.

21.0 IMPLEMENTATION OF RIGHT TO INFORMATION ACT, 2005

Your Company is proactively complying with the provisions of the Right to Information Act, 2005. All information sought under the Act have been furnished within the stipulated time period.

22.0 DISINVESTMENT OF SHARES BY GOVERNMENT OF INDIA

During the year under review, Government of India disinvested 8.38% of its holding in the Company aggregating 332,243,200 equity shares of the face value of Re.1/- each through an Offer for Sale. The Government of India received Rs. 9930.42 crore out of the said disinvestment process. Accordingly, the equity shareholding of President of India in NMDC stands at 90%.

23.0 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 (Til) 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 M. Gopalkrishna, IAS (Retd.) and Dr. S. Ramnacayan, Professor, ISB were appointed as independent external monitors (IEMS) for ovqrseeing the Integrity Pact programme.

5. During the year, under, review, a total of 13 cases of tenders with a value of Rs. 914.31 crore were covered under the Integrity Pact.

24.0 ACKNOWLEDGEMENT

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

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

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

For and on behalf of the Board of NMDC Ltd

Rana Som

Chairman-cum-Managing Director

Place : Hyderabad Date : 04.06.2010