RAIPUR: The supplies from the mines in one of the worst Maoist-affected areas Dantewada, south Chhattisgarh, enabled the nation’s largest iron ore public sector enterprise (PSE) National Mineral Development Corporation (NMDC) achieve its stable performance amidst the tough challenges faced in the preceding financial year.
During the appraisal of audited financial results for the year 2019-20 approved by the mining giant’s Board of Directors, the impact of Covid-19 on the performance of the company was also reviewed.
“Due to nationwide lockdown the last few days of FY-2019-20 were affected and has resulted in an estimated loss in sale revenue of Rs 220 crore and profit before tax (PBT) of Rs 120 crore”, stated the statement released by the NMDC.
Dantewada iron ore complexes operated by the state-run iron-ore producer brought a much-needed boost and succour for the company particularly when the Karnataka government withdrew the lease for Donimalai mine a year ago, though the NMDC remains optimistic on its renewal, the organisation’s spokesperson said.
Besides the two iron-ore complexes in Dantewada, the NMDC operates one at Donimalai in Karnataka.
NMDC has produced 31.49 million tonnes and sold 31.51 million tonnes of iron ore during 2019-20 against production of 32.36 million tonnes and sales of 32.36 million tonnes during previous year.
“This was a tough quarter (in 2019-20) with all the disruptions and the disturbances. We are delighted with the stable performance despite the challenges faced. During this quarter, we focused on empowering our workforce and technological upgradation. We look forward on marked improvement in our performance in the following months”, said N Baijendra Kumar, NMDC Chairman-cum-Managing Director.
The Company’s turnover for the year 2019-20 is Rs.11,699 crore against Rs.12,153 crore during
The Chhattisgarh government in December last year extended the lease of four iron-ore mines for NMDC for 20 years. The extension was due in March 2020