By Rusen Kumar
NEW DELHI: NMDC, incorporated in 1958, is the largest iron ore mining company in India, has spent Rs.174.18 Crores during the year 2016-17 which is 2.17% of the average net profit of 3 preceding years as specified in the Companies Act, 2013., Annual Report 2016-17 revealed.
Average Net Profit of the Company for last three financial years was Rs. 8010.77 Crore. Prescribed CSR Expenditure was Rs.160.22 Crore.
NMDC has spent its CSR funds on development projects as under in FY 2016-17 broadly under the following heads, which also form part of Schedule VII of the Companies Act.
- Drinking Water
- Health and Hygiene
- Free Medical Treatment
- Financial Assistance
- Rural Development
“CSR is raison d’être of NMDC and not just a part of business strategy. NMDC’s CSR programmes are carried out in areas which are remote, backward and face serious law and order problems due to left-wing extremism.” It said.
“The area is among the most backward regions of India and inhabited predominantly by Scheduled Tribes and Scheduled caste population who are poor, underprivileged, deprived, suffer malnutrition and devoid of support for their socio-economic needs. It is only because of its strong focus on social responsibility programmes aiming at enhancing the quality of life of the local communities that NMDC has been successfully mining in these areas.”, it added.
“NMDC is the model PSE in the field of CSR and its model of stakeholder consultation mechanism for implementation of its CSR has been recommended by Department of Public Enterprises, Government of India for emulation by all other CPSEs.”, report said.
“The Company is investing substantially in developing social infrastructure such as educational institutes, sanitation, healthcare, drinking water, infrastructure development and employable skill development, integrated village development, etc. primarily in peripheral areas of its operations.” Report added.
“NMDC has framed a comprehensive CSR policy for addressing its objectives, focus areas, organizational mechanism, guidelines for identifying the CSR activities along with the implementation and monitoring strategies. The policy also addresses in detail the budgetary allocation, approval methodology and fund utilization mechanism.”, annual report said.
Contribution of Rs. 25 Cr to CG Govt. for tree plantation
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. It 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.
“NMDC 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.”, it added.
Carbon disclosure project
Carbon foot print studies were conducted for FY 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.
With iron-ore production of around 34 million tonnes per annum (MTPA) in FY’17, NMDC has a market share of about 25% domestically (excluding captive iron ore production).
NMDC is operating three highly-mechanised iron ore mine complexes. Two complexes are located in Dantewada (Chhattisgarh) namely Bailadila Iron Ore Mine, Kirandul Complex & Bailadiala Iron Ore Mine, Bacheli Complex with yearly production of around 22 MT. One complex in Donimalai Iron Ore Complex, located in Bellary (Karnataka) produces 12 MT per annum.
NMDC has been operating a diamond mine namely Diamond Mining Project, Panna (M.P.), which is the only mechanized diamond mine in Asia, with yearly production of around 35,000 carats. NMDC also has a sponge iron unit of 200 TPD, at Paloncha (Telangana).
(Report is based on Annual Report, 2016-17 of NMDC Limited)