File picture of National Mineral Development Corporation
| Photo Credit: Special arragement
Public sector miner National Mineral Development Corporation (NMDC) on Thursday (February 6, 2025) said it had commenced the sale of hot rolled (HR) products procured from the facility of demerged entity NMDC Steel (NSL) during the quarter ended December.
It is also confident of recovery of more than ₹3,380 crore dues from NSL, bulk of that towards the iron ore supplied. The outstanding also includes amount due on account of employee services deployed and advance paid towards purchase of HR products.
“In view of the expected scaling up of operations and tie up with SAIL for marketing of NSL products, which will result in positive cash flow of NSL, the management is confident of recovery of these amounts,” NMDC said in the footnotes accompanying its results on Thursday.
Additionally, as per the scheme of demerger, NMDC pending recovery has classified an amount of ₹2,301.39 crore it incurred on behalf of the steel maker under “NonCurrent Assets – Other Financial Assets.” This amount has arisen on account of demerger as per the scheme approved by the MCA with no specific timelines for repayment of the said amount in the scheme.
The outstanding receivable from Rashtriya lspat Nigam (RINL) towards supply of iron ore, is ₹3,428.50 crore as on December 31, 2024, NMDC said. With the Cabinet Committee on Economic Affairs (CCEA) approving a revival plan and RINL expected to gradually reach its production capacity, under the restructuring package, NMDC remains confident that the entire outstanding amount will be fully recoverable. “Accordingly, no provision for these dues is considered necessary at this stage,” it said.
On the Supreme Court of India judgment in July 2024 that State Legislatures can tax mining lands and quarries, NMDC said it obtained legal opinion on the applicability of the judgement on the ongoing cases of the company.
“As per legal opinion obtained by the company, it has implication at Panna unit of the company only, under the Madhya Pradesh Rural Infrastructure and Road Development Act, 2005. As per the Act, the tax payable from 2005-06 to 2024-25 (up to December 2024) works out to ₹18.59 crore. Of that, in the earlier years, ₹10.77 crore was paid under protest and charged to statement of profit and loss. For the balance ₹7.82 crore, a provision was made during the quarter ended September 2024.
Published – February 06, 2025 11:43 pm IST
