NMDC 2.0: Ambitious Targets, Green Future
In its bid to build NMDC 2.0, the minerals and mining major is looking to achieve a capacity of 100 million metric tonne (MT) by 2030, which, it hopes, will raise its domestic market share to 25 per cent, up from the present 17 per cent. The company also hopes to add gold, in addition to coal and other strategic minerals, in its portfolio. Chairman & Managing Director Amitava Mukherjee, a 1995 batch IRAS officer, is spearheading the company’s transformation towards NMDC 2.0.
The growth trajectory at NMDC has been impressive. In the last three years, its revenue registered a CAGR of approximately 28 per cent. Its production also increased from approximately 31 MMT to nearly 42 MMT. During the pandemic, when domestic production dipped by 17 per cent, NMDC saw a growth of 8.5 per cent.
Under Mukherjee, NMDC crossed the milestone of Rs 25,000 crore in topline. It also became the first central public sector enterprise to implement enterprise resource planning on SAP’s S/4 HANA platform. Mukherjee counts project management, digital initiatives, and policy formulation as his forte.
It was in 1968 that NMDC commissioned its first iron ore mine in Bailadila. Since then, it has been securing raw materials for India’s steel demand. In FY22 and FY23, NMDC achieved iron ore production of more than 40 MMT.
In the journey from 4 MMT to 40MMT, NMDC has been known to develop some of the finest mines. The company hopes to carry on the same momentum and further build on the tempo in its bid to become a 100 MMT mining company by 2030.
It was in the early 1990s that NMDC set up its R&D centre in Hyderabad. It has now become a full-fledged R&D centre extending technology support to other in-house projects as well as those of other organisations as well. NMDC’s R&D wing also helps sectoral clients like SAIL, CIL, and NTPC.
NMDC has a workforce of 5,500 employees. Taken mathematically, the value added by every employee to NMDC’s revenue is approximately Rs 5 crore.
Already the largest iron ore producer in the country, NMDC further aspires to increase its market share in the domestic iron ore market. With seven operating mines producing more than 40 MMT of iron ore, the company plans to ramp up the production capacity to 67 MMT per annum by FY26.
Besides setting up a Global Exploration Centre at Raipur, Chhattisgarh, NMDC has a collaboration with MECL, ISRO and IIT Kharagpur for joint mineral exploration activities -- all valuable steps towards creating a diversified portfolio.
It has an operating coking coal asset in Mozambique, and will soon be operationalising a gold deposit in Australia.
In keeping with the government’s vision of boosting infrastructure to fuel growth and the economy, NMDC has been rolling out ambitious projects and capex outlay. It is also working towards a self-reliant mining sector.
NMDC has been devoted towards building India into an iron and steel powerhouse. An eco-friendly, green energy enthusiast, the company also ensures that India’s development is sustainable, and future is green.
