The Company Board of Directors has proposed a final dividend of Re 1 per share subject to approval of shareholders. In addition, the first interim dividend of Rs. 2.30 per equity share for fiscal 2024-25 has been paid. The total dividend paid for the year is Rs 2,901 crore to the shareholders, a company statement said.
Commenting on the results, Amitava Mukherjee, Chairman and Managing Director, NMDC, said the company aims to achieve 100 million tonnes per annum (MTPA) production in the next five years. NMDC recorded 44.04 mt iron ore production in fiscal 2024-25, down from 45.02 mt in the preceding year.
The company auditor drew attention to the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024 passed by the state government in December 2024. The Bill is pending enactment, awaiting the assent of the President of India.
Karnataka Governor has referred this the Bill for Presidential assent along with reservations on its legality. This means it cannot be treated as law unless and until Presidential assent is received.
The Bill, in its present form, proposes retrospective applicability of tax on mineral rights and mineral-bearing lands. “Should it be enacted as currently drafted, the Company may be liable to pay tax amounting to approximately Rs 13,975.07 crore,” the auditor noted.NMDC said considering the pending legislative process, the reservations of the Governor, and the ongoing stakeholder discussions, the amount has been disclosed as a contingent liability in the financial statements.