Question : National Mineral Development Corporation

(a) whether the Government is aware that National Mineral Development Corporation (NMDC) Ltd.’s cancellation of the mine lease of the Dorimalai mine by the State Government has cast a shadow over its business model and could further hurt its stock valuation;
(b) if so, the details thereof and the Union Government’s reaction thereto;
(c) whether the Government is aware that the cancellation could hurt its reputation as it hinges on renewal of mine leases from State Governments and NMDC-operated several mines in Chhattisgarh are due for renewal in early 2020;
(d) if so, the details thereof and the Government’s reaction thereto;
(e) whether the NMDC Ltd. has sought relief from the Union Government in this regard and if so, the Government’s reaction thereto; and
(f) the total business done by the NMDC during the last five years?

THE MINISTER OF STEEL (SHRI DHARMENDRA PRADHAN)

(a)to(e): NMDC has filed a Revision Petition under Section 30 of Mines and Minerals (Development and Regulation) Act, 1957, before the Revisionary Authority in the Ministry of Mines against the Government of Karnataka’s order to put the mining block for e-auction which was previously held by NMDC. The revisionary authority has stayed the order of the Government of Karnataka in his quasi judicial capacity. In Chhattisgarh, NMDC has already applied to the State Government for renewal of 4 Iron ore mining leases that are expiring on 31.3.2020. Further, Ministry of Mines, Government of India has amended the Minerals (Mining by Government Company) Rules, 2015 and substituted ‘may’ for reasons to be recorded in Rule 3, in sub-rule (2) and rule 4, in sub-rule (3) with ‘shall’ for reasons to be recorded vide Gazette Notification No. GSR 695(E) on dated 27.9.2019 which will ensure seamless renewal of leases for Government PSEs.

(f) The total business done by NMDC Ltd during last 5 years is furnished below:-

Year 2018-19 2017-18 2016-17 2015-16 2014-15
Turnover (Rs. Crore) 12,153 11,615 8,830 6,457 12,356

********