Nagaland State Mineral Development Corporation Limited

CONTENTS

Contents

INTRODUCTION

ACHIEVEMENT DURING THE 11TH FIVE YEAR PLAN

PRESENT STATUS

BASIC APPROACH TO 12TH FIVE YEAR PLAN

STRATEGIES FOR 12TH FIVE YEAR PLAN

IDENTIFIED VIABLE ACTIVITIES DURING THE 12TH FIVE YEAR PLAN

PROPOSED OUTLAY FOR 12th FIVE YEAR PLAN 2012-17

ACTIVITIES OF NSMDC DURING 2012-13

ACTIVITIES PROPOSED AND ITS DETAIL HEADWISE BREAK-UP FOR 2013-14

NEW PROJECTS PROPOSED FOR FUTURE

BREAK-UP OF SECTORAL OUTLAYS UNDER PLAN 2012-13

PRESENT FACULTY STRENGTH AND QUALIFICATIONS

STATUS OF THE EMPLOYEES OF NSMDC (AS ON 28.02.2013) & MONTHLY SALARY AND WAGES (As on 28.02.2013)

MONTHLY SALARY AND WAGES (AS ON 28.02.2013)

NAGALAND STATE MINERAL DEVELOPMENT CORPORATION LIMITED

ANNUAL PROGRESS REPORT (20012-13)

INTRODUCTION

In the light of cognizance taken by the Government that mineral development sector would be one of the main areas for generation of economic resources in the State, NSMDC came into being in the year 1981.

Nagaland is a small State in size, located in the extreme east of the country, sharing about 192 km International Border with Myanmar and as such placed in a strategic location. Nagaland is richly endowed with variety of minerals. The main established mineral reserves comprise of:

(i) Petroleum & Natural Gas (prognosticated reserve of 600 million tonnes) in the northwest along Nagaland-Assam border,

(ii) Coal (with inferred reserve of 150 million tonnes) in Tuensang, Mon & Mokokchung Districts

(iii) Limestone & Marble (with inferred reserve of 1000 million tonnes)

(iv) Magnetite with Nickel, Cobalt and Chromium (5 million tonnes of proved reserve)

(v) Rich deposits of varieties of Decorative & Dimensional Stones

(vi) Other associated metals like Zinc, Molybdenum & other possible precious metals such as Gold and Platinum groups (within ophiolites and metasediments) in Phek, Kiphire and Tuensang districts of south east Nagaland.

The Government desires to exploit the rich minerals to enhance the economic status of the state and to uplift the rural people where rich mineral deposits are available. With this objective, Nagaland State Mineral Development Corporation Limited (NSMDC), fully owned by the State Government was set up by the Govt. of Nagaland and incorporated in May, 1981 under Companies Act, 1956 with the main objectives of:

1. Initiating commercial exploitation of limestone, coal and other mineral deposits and
2. Promoting, establishing and developing economic activities in mines and mineral based industries.

The successive Plans have been formulated with the basic aim to promote and facilitate mineral-based industries in the State for economic growth as well as generation of employment opportunities. The investments will also be justified by cost benefit analysis. The planning strategies are focused to achieve the following objectives:

1. Development of infrastructures such as construction and up-gradation of mineral link roads and improvement of power in collaboration with relevant departments.
2. Initiation of mineral-based industries by facilitating and involving the people/private sector with technical guidance and assistance from the Government through the Corporation so as to generate economic growth and employment with full justification in quantified terms.
3. To enter into Profit sharing ventures with private Companies in various limestone and other mineral based projects.
4. To enter into joint ventures with various oil companies in exploration and production of hydrocarbons and its downstream industries.

ACHIEVEMENT DURING THE 11TH FIVE YEAR PLAN

(i) The Expansion and Modernization of Mini Cement Plant was taken up during 2004-2005 and based on the fund made available to the implementing agency spreading over 4 (four) years, the project was completed in 2007-08 i.e. in 4 years time and inaugurated on 27.06.2008. The total amount spent was Rs.2022.00 lakh which was made available by State Government as grant to the Corporation. This will be privatized and negotiation with Private Company is in progress.

(ii) NSMDC took up 3 (three) mineral link roads namely

1. Wazeho-Satuza Road
2. Ziphu-Mokie Road
3. Laluri-Nimi Road.

The total amount so far released by M/o DONER is Rs.2601.68 lakh leaving a balance of Rs. 52.01 Lakh. The constructions of other similar roads are being pursued. Construction of two bridges in the Laluri-Nimi Road is in good progress and for which Rs.1590.66 lakh was released in the 1st and 2nd phase. The construction is expected to be completed during the 2nd year of the 12th Five Year Plan.

(iii) Common Facility Centres – A scheme to benefit rural villages sponsored by NEC was taken up during 2007-2008. One Unit was established at Khonoma and inaugurated on 17th November 2007. The other was set up at Longsa and inaugurated on 8th April 2008. The total cost involved is Rs.44.44 lakh. Both the Units were handed over to the village council for management as planned.

(iv) Water Supply to Wazeho Cement Factory – With the expansion and modernization in progress, the water requirement increases both for factory as well as the Colony. This was taken up with Welfare Commissioner, Kolkata and the office of Welfare Commissioner and they agreed to sponsor 75% of the cost. The balance required amount was made up from the State Government and this project was completed during 2008-09. The total amount incurred is Rs.19.80 Lakh.

(v) Employment Generation Schemes – NSMDC has taken up mineral based industries to generate employment as well as to lift the standard of living in the rural areas. Accordingly, small and tiny projects are taken up during 11th Five Year Plan period.

To start with, NSMDC had taken up 8 Units of Stone Crushers at the cost of Rs. 24.00 Lakh each for the Entrepreneurs having Stone-Deposits. 75% of the Project cost is provided to the Entrepreneur on term loan to be paid back within 5 years. NSMDC procure the machinery and help in installation of the machines. So far 7 such crusher units had been completed and the other 1 (one) will be completing during 2012-13.

This is a continuous process and with recovery of loans from entrepreneurs, more facilities will be given to new capable entrepreneurs.

(vi) Entrepreneur Development – NSMDC felt that providing training to own employees and educated unemployed youth is a must in this competitive world. We therefore, encourage the youth to be trained. We have so far trained 20 nos. of youth to run and operate machineries in the stone working plants.

The corporation had so far trained 9 graduate youths in commercial Accountings; some of them had been recruited in reputed Banks and other offices in the state Capital.

Facilities are being created and provided to the State Social Welfare Department who provide training to the wives of the factory workers in Knitting and Tailoring.

(vii) MIGC – This Mineral Industry Growth Centre was planned in the beginning of the 11th Five Year Plan. During the year 2011-12 Rs.250.00 lakh was provided under SPA and construction is in good progress. It is expected to be completed during 2013 – 2014.

(viii) Consultancy & Facilitating Activities – During the last 4 (four) years we have taken up initiation of new projects and for which TEFR & DPRs are initiated. DPR for 6 Nos Link Roads, 2 Bridges etc., were made and more to be prepared for our future plan. We have prepared the DPRs for small and tiny mineral based and stone based industries for the Entrepreneurs.

Preparation of DPR for Export oriented projects such as Mega Cement Plant, Dimensional & Decorative Projects, Coal mining projects, Mineral Link Roads, etc are in the pipe line.

(ix) Head Office extension was started before the 11th Five Year Plan but due to fund constraint this could not be completed till date. The same will continue.

(x) New Government Programs:

Climate change – NSMDC is providing nominal amounts for this purpose since 2008-09 and is taking up tree plantations at the project sites. Better dust controlling systems are being installed in the cement plant.

Gender Equity is under our programme and recruiting women wherever they can be employed. We are also sending our officers to Gender Budgeting training programmes to be well equipped with the Government policy for implementation.

Disability and disaster management are yet to be taken up seriously but awareness of these matters are being created among the employees.

PRESENT STATUS

NSMDC, being a fully Government owned Corporation, salaries and administration expenses are provided by State Government. NSMDC works on development of mineral to open avenues for future generation. We believe we are doing a noble job in the interior areas where communication and other infrastructures were almost nil when we started our activities. Today, the places where our projects has taken roots at least road connectivity has been established and other development activities are also being taken up. With initiation of NSMDC, more than Rs.40.00 crores (excluding State Share) worth of work has been brought under different centrally sponsored schemes to facilitate mineral exploitation. We are happy to see all the above changes. The following projects were implemented or are being implemented by NSMDC.

a) 150 TPD Mini Cement Plant Wazeho, upgraded from 50 TPD and awaiting Government clearance for Privatization.

b)Two Dimensional and Decorative Stone Plants at Chumukedima and Wazeho are in operation.

c)Two Common Facility Centres at Khonoma and Longsa were handed over to respective village councils for operation and management as envisaged.

d)Three Mineral Link Roads namely

i)Laluri-Nimi (20Km)

ii)Ziphu-Moke (9Km) and

iii)Wazeho-Satuza (8Km) are being completed.

e) Eight Stone Crushing units are being completed under Self Employment Generation Scheme.

BASIC APPROACH TO 12TH FIVE YEAR PLAN

Towards 12th Five Year Plan, the Planning Commission has given 12 (twelve) strategy challenges for faster growth of the nation’s economy. Wherever the challenges are related to NSMDC, we adopted the challenges accordingly as stated below.

1. Enhancing the Capacity for Growth:

Mineral Industry is the Back-Bone of all the other Industries. In order to boost the economy of the State, and also to increase the State GDP, the State is to be industrialized to the extent possible. Importance is therefore to be given to –

i)The development of the infrastructures in the mineral deposit areas.

ii)Development of the mineral resources.

iii)Establishment of the mineral based industries.

2. Enhancing Skills and Faster Generation of employment:

a) Entrepreneur Development:

Modern management need expertise and well skilled professionals which makes training a must for growth. Capacity building, the process of training a person to increase knowledge and skill of doing a particular job appears to be of paramount importance. This is one of the most effective and tested tools for performance enhancement by upgrading knowledge and skills. This also increases confidence; reduce supervision cost thereby increasing productivity. Keeping these benefits in mind, NSMDC has already started ground works by creating training facilities such as Small scale Stone Cutting & Polishing Units at Wazeho and Chumukedima, where from youths are being trained. A Small Scale Mineral Industry Growth Centre at Keruphe, is proposed to be set up with the bare minimum machinery & equipments. Accordingly, NSMDC has taken up capacity building of in-house personnel regularly and also to impart operational as well as managerial capabilities to entrepreneurs.

During the 12th Five year Plan, NSMDC proposed to take the following measures:-

i)Continue to impart in-plant training to the youths from the operating factories such as Stone-working Plant at Chumukedima, Marble working Plant at Wazeho and Mini Cement Plants, Wazeho.

ii)Continue to impart training to the youths in commercial accounting from the Head Office at Kohima as well as from the running Plants.

iii)To continue upgradation of skills for the corporation’s own officers and staff in various disciplines.

b)Employment Generation Scheme:

Towards the objective of initiating, promoting facilitating economic activities in the mineral sector and as part of the Government’s programme on Self Employment Generation, NSMDC will continue the schemes to facilitate private entrepreneurs in setting up small scale and tiny mineral based projects. The requirement of fund shall be sought from Financial Institutions, CM’s Corpus Fund and Corporation’s Corpus Fund for channeling to the entrepreneurs as a continuing scheme. Initially this was “Corpus Fund” for “People Development Programme” to facilitate small and tiny Decorative and Dimensional Stone Projects only. Since then, Government has accorded approval to let NSMDC become channeling agency for various mineral based projects. “NSMDC Corpus Fund” was then started during 2008-09 and scope widened to cover both stone and mineral based projects under “Employment Generation Schemes”. Under this Scheme, small and viable Mineral based industries are to be identified and Feasibility Report shall be prepared by NSMDC. This will be followed by selection of Entrepreneurs and imparting of trainings. NSMDC will provide 75% of the Project cost on Loan with nominal rate of interest, recoverable within 5 years.

3. Managing Environment:

Global warming has alerted many nations and the world bodies are doing their best to protect the environment and reduce global warming. NSMDC on its part has also taken up measures relating to environmental protection such as dust emission control and aforestation. This include installation of dust arresters such as Bag filters, scrubbers etc. in the Cement Factory.

The corporation has also taken up control measures on Global Warming such as

(i) Preservation of naturally grown-up trees in its project site

(ii) Afforestation and land reclamation programme for the Limestone Mines and

(iii) Awareness campaign on preservation of environment.

During the 12th Five Year Plan, the Corporation took up –

i) Forest preservation

ii) Afforestation and

iii) Construction of Check-Dams.

STRATEGIES FOR 12TH FIVE YEAR PLAN

The rate of growth of the State GDP is an indicative of the degree of development especially in the industrialization of the state. Unfortunately Nagaland does not make much headway in the industrialization and still remains industrially backward even after 50 years of statehood. Nagaland lags behind so many younger states so far as industrialization is concerned. Some of the factors of its backwardness in industrialization may be locational disadvantage, lack of important infrastructures such as railways, roads, and power. Apart from these, one important factor is lack of political will power. Due importance is never given to the Industrial sector, especially in the mineral based industries inspite of Government’s recognition of its importance as noted in the introduction.

Nagaland is endowed with rich minerals with lot of potential to set up mineral based industries. The Mineral Industry is considered to be the backbone of all other industries as it provides the basic raw materials for all other industries. Inspite of this, Nagaland still remains industrially backward. It is high time that due importance is given to the mineral sector which will automatically lead to the establishment of other industries in the state. Development of mineral based industries means development of rural areas and also creation of job opportunities for the rural people. Rural people can enjoy the fruits of developments and their economy can be uplifted. Thus the mineral based industries create maximum benefits to the under privileged people in the rural areas. The Central government and the government of Nagaland may therefore consider giving topmost priority to the mineral based industries during the 12th Five Year Plan (which otherwise hitherto remains secondary).

Keeping the above in mind, NSMDC proposes to give more effort on the following areas.

During the 12th Five Year Plan, NSMDC proposes to take up the mineral developments activities as well as to continue the existing projects as in the following manner:-

1.Promotional & Facilitating Activities: