Manganese Ore India Limited

Manganese Ore India Limited

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Manganese Ore India Limited

MOIL a prominent PSU under Ministry of Steel formed in 1962 after taking over assets of CPMO, a British company is engaged in implementing CSR projects with due sincerity with a spirit and commitment of public sector.

As its operation is mostly in mining areas and rural areas of Maharashtra and MP, it has been implementing need based developmental programme focusing on rural develop infrastructure,livelihood, healthcare etc.

As an old company it is containing its development activities in collaboration with prominent implementing agencies available in the area. The sincerity in CSR is reflected through creation of required CSR structure and building CSR team and spending the CSR budget efficiently. The MOIL CSR Story has lessons for others.

MOIL LIMITED (formerly known as Manganese Ore India Limited) (MOIL) is a SCHEDULE A, MINIRATNA CATEGORY 1 PSU under the Ministry of Steel. The Company was formed in 1962 by taking over the assets of the erstwhile Central Provinces Manganese Ore Company Ltd., (CPMO), a British Company incorporated in UK. MOIL became a fully owned Government Company in 1977.

The Registered and Corporate Office is located in Nagpur. The Company operates 10 mines spread over the States of Maharashtra (6 Mines) and Madhya Pradesh (4 Mines). The locations of the mines are (a) Gumgaon, Kandri, Munsar & Beldongri in Nagpur district and Chikla and Dongri Buzurg in Bhandara District of Maharashtra, (b) Balaghat, Tirodi, Sitapatore and Ukwa located in Balaghat district of Madhya Pradesh. Dongri Buzurg, Sitapatore and Tirodi Mines are operated by Open cast method and the other mines are underground mines. Balaghat Mine in Madhya Pradesh is the deepest underground manganese mine in ASIA and produces the best quality of ore in the country.

The annual production is to the tune of 1.1 million tones and the share of MOIL in total countrys production is about 50%. It is the largest indigenous producer of manganese ore, a raw material for manufacturing of Ferro Alloys, an essential input for steel making and manganese dioxide ore for manufacturing dry batteries.

The company has diversified into manufacture of value added products. It is operating a 10000 TPA ferro manganese plant at Balaghat Mine and a 1000 TPA Electrolytic Manganese Dioxide (EMD) Plant at Dongri Buzurg Mine. EMD is a high value product used in the manufacture of dry batteries. The Plant is the only plant in India to manufacture EMD and has been set up through in-house R&D efforts.

MOIL has set up a 20 MW wind farm in the Nagda and Ratedi hills near Dewas in Madhya Pradesh. MOIL is the first PSU in the country to set up wind farm for promotion of non-conventional energy.

MOIL has set up a 500,000 TPA Integrated Manganese Beneficiation Plant at Balaghat Mine based on state of art bottom air pulsated technology. This plant is the only of its kind in India for manganese ore beneficiation. This plant has been set up to upgrade low and medium grades of ore and also to improve the percentage recovery of ROM in order to conserve the valuable mineral resource.

MOIL is the largest employer in the manganese mining industry in India with a manpower strength of about 6200 employees.

SHAREHOLDING PATTERN

MOIL has become a listed Company and is listed in Bombay Stock Exchange and National Stock Exchange since December 2010. The authorized capital of the Company is Rs.300.00 crores and the paid up capital of MOIL as on date is Rs.266.38 crores. The shareholding pattern is as under:

FINANCIAL AND PHYSICAL PERFORMANCE:

The achievements in respect of key indicators during the last 5 years are as under:

Details Unit 2012-13 2013-14 2014-15 2015-16 2016-17
Financial Performance
Revenue from Operations Rs. Cr. 975.03 1028.45 831.16 634.60 989.84
Total Income 1202.39 1324.60 1139.86 880.89 1210.97
Operating Profit Before Tax 401.51 466.31 333.96 18.10 240.77
Profit Before Tax 636.78 769.33 650.57 270.26 461.90
Profit After Tax 431.72 509.56 428.01 172.98 305.83
Dividend(*) 92.40 126.00 142.80 84.00 146.51
Net Worth 2765.64 3127.33 3381.70 3453.37 2805.35
Contribution to Exchequer 314.01 374.25 299.70 177.35 266.11
Earnings Per Share Rs. 25.70 30.33 25.48 10.30 20.21
Physical Performance
Manganese Ore Lakh MT 11.39 11.35 11.39 10.32 10.05
Ferro Manganese Tonnes 9210 10042 10045 6519 9950
Electrolytic Mn. Dioxide Tonnes 786 923 950 612 731
Productivity (OMS) Tonnes 0.790 0.805 0.818 0.718 0.722
Manpower No. 6485 6473 6417 6305 6201
(*) Includes interim dividend and proposed final dividend for FY 2016-17

MOIL: MISSION, VISION AND OBJECTIVES

MISSION

To create long-term value for their stakeholders, through exploration and development of natural resources, in an efficient, safe, cost-effective and eco-friendly manner.

VISION

To sustain, market leadership in Indian Manganese industry and be a globally diversified enterprise, through strategic alliances and technological up-gradation.

OBJECTIVES

  • To strive towards objective of catering to the manganese demand in the country by enhancing MOIL production to 3 mn MT by 2030.
  • To explore various diversification options into related businesses & geographies and add value to shareholders.
  • To enrich the lives of employees and providing the best opportunities for growth.
  • To make MOIL mining areas clean, green and eco-friendly.

CSR ACTIVITIES OF MOIL

MOIL, as a premier Public Sector Enterprise, is aware of its obligation and responsibility to the society and the people in need especially in the areas surrounding its mines, projects and establishments that are located in remote and underdeveloped tribal villages whose population comprise tribal and rural population. In order improve the quality of life in these villages and also of the people of different states and region in general, MOIL would like to carry out various schemes to achieve this objective in a variety of areas especially in the fields of health, education, sanitation, skill development, self-employment, environmental awareness, etc.

The main objective of CSR efforts of MOIL is to help people by providing the much needed support for education, health care, improved living conditions, etc., also equip them to become economically independent through skill development programs. MOIL will ultimately benefit in the long run when its sustained CSR efforts will lead to the overall development of the people and the locality in which it operates and beyond it as well.

The Company has been carrying their systematic development of the community in the peripheral areas of its mines through various CSR programmes such as infrastructure development, medical care, education, drinking water, roads, electrification, etc., in the adjoining villages. The CSR in MOIL is a continuous process and forms part of its regular operations.

The Company has a well-defined CSR Policy approved by its Board of Directors. The policy has been made after taking into account various Government guidelines and Companies Act with regard to CSR activities. The Company has formed a Boards CSR Committee which examines various proposals put up to it and recommends the same according to merit to the Board for final approval. After obtaining Boards approval, the Company executes the individual projects for a particular financial year. As per MOILs approved CSR policy, upto 20% of the annual CSR budget may be spent towards CSR projects outside the operational areas of the Company.

MOIL has been diligently complying with the Government guidelines and Companies Act with regard to CSR activities. The Company has been earmarking budget provisions as per requirement under the Act. The expenditure as compared to budget provision during the last five years is given below:

Rs. in Crores
S.No. Details 2012-13 2013-14 2014-15 2015-16 2016-17
1. Budget 6.80 9.50 13.42 13.75 11.27
2. Actual 10.56 10.36 13.58 14.47 11.43

For the year 2017-18 a budget provision of Rs.9.22crores has been made for CSR.

MOIL FOUNDATION

MOIL has taken up the special initiative of inclusive rural development programme and has formed a separate society viz. MOIL Foundation to carry out inclusive rural and community development programes.

In this connection, MOIL has associated professional agencies like BAIF and Maharashtra Institute of Technology Transfer for Rural Areas (MITTRA), an associate organisation of BAIF, Pune who have decades of experience in rural development programmes. MOIL has entered into MoU with MITTRA who has prepared a detailed project report for the project. Initially 21 villages have been identified in Nagpur, (5 villages) Bhandara (11 villages) districts in Maharashtra and Balaghat (5 villages) district in Madhya Pradesh. Major areas of developmental activities shall be in the following areas:

Livelihood Support to destitute persons
Women Empowerment Education
Water Resources Management Anganwadi based intervention
Agricultural Training Community Resources Dev.
Livestock Development Training Infrastructure Development
Quality of Life Health, Cleanliness & Sanitation

In addition, a number other areas shall also be included as per requirement at the time of execution of the work.

MITTRA has done commendable work in the field of agriculture with a view to augment income of the farmers through introduction of latest techniques as detailed below:

  • System of Rice Intensification (SRI) which is a sowing technology that requires less water than conventional practice. Local farmers have been motivated to adopt this practice and resulted in high yield as compared to the conventional method. This has received tremendous welcome from the local farmers.
  • Soil Health Card – It was observed that one of the major reasons for low yield from the land was lack of micro-nutrients in the soil and other mineral ratios. In order to identify the deficiencies, soil testing was carried out and Soil Health Cards were issued to the farmers to make them aware of the use of right quantity of fertilizers to generate maximum yield. The Soil Health Card indicates details of analysis of the soil profile in terms of macro and micro nutrients availability / deficiency in the soil. This initiative has helped the farmers to a great extent to improve the yield.
  • In addition, the project has introduced Vermi Composting, Crop Diversification, Vegetable Cultivation, Drip System in Sugarcane, Water Resource Management, etc., which has given good results and helped the local community to enhance their income.

In addition, MOIL Foundation in association with MITTRA has done considerable good work in the areas of livestock development, education, health care, SHGs, conducting awareness programmes on a variety of topics including less cash transactions, etc., in the villages identified for development.

The other major CSR initiatives of MOIL are as follows:

Health Care:

The Company has been providing health care to the needy people in various ways. At the first instance, the villages adjoining the mines are provided with basic medical care regularly. Besides, regular medical diagnostic camps are organized with the help of the local bodies to provide health care also increase awareness on HIV/AIDS, alcoholism, etc.

The Company has supports charitable organizations by providing fully equipped ambulances for providing medical attention to the needy people. In addition, other implements such as tri-cycles, calipers, crutches, hearing aids, are also being provided to the poor and needy.

One of the major initiatives under health care is sponsoring of free cataract surgeries. In this connection, the Company has sponsored more than 2000 free cataract surgeries including IOL implantation to the poor people hailing from rural areas.

MOIL has embarked on a novel project viz. Light to Lives with a view to endeavour to create awareness and develop sustained efforts to alleviate blindness in the rural communities around the mining areas and other needy villages. The project covered the rural areas of Nagpur and Bhandara districts of Maharashtra. The project was spread over a period of 5 years starting and envisaged 9500 cataract surgeries, 450 paediatric surgeries besides providing spectacles. So far about 5500 cataract surgeries and 450 paediatric eye surgeries have been completed besides 10500 spectacles have been distributed.

Education:

The Company has constructed schools in the remote villages around its mines. In addition, renovation/repair works have been carried out at a number of schools run by the State Government agencies and improved its quality. Many of these schools were not even having desks / benches and the Company has provided desks and benches to these schools. The Company also provides free text books, uniforms, stationary, etc., to the needy children besides providing school bus facilities to attend high schools in the nearby towns. The Company also provides computers, educational aids, etc., to these schools in order to improve the quality of education. In addition to above, several steps are being taken to provide quality education to the children in the best manner possible.

In a major step towards providing quality education to rural children, MOIL in association with DAV Group of Schools has constructed a large school at Village Sitasaongi, in Bhandara district in academic session April 2014 onwards. The school caters to the educational needs of a number of villages in this remote backward area. The school has modern educational facilities with 35 classrooms, scientific laboratories, library, etc. The total cost of the project is Rs.8.00 crores. The school is managed by DAV Management and funded by MOIL. Presently, the strength of the school is about 940 students in class to nursery to Class X.

Encouraged by the good response, MOIL is planning to set up another MOIL-DAV School in Munsar, near Ramtek in Nagpur district. The School is expected to be in operation from the academic year 2020.

Infrastructure Development:

In order to improve the quality of life to the rural people, the Company has taken up the following works under its CSR:

  • Construction of approach roads and internal roads in the villages.
  • Constructions of culverts in remote villages to make them accessible in all weather conditions.
  • Construction of community centers, sabhamandaps, parks, children playgrounds, etc.
  • Construction of drainages, bus shelters, etc.
  • Providing solar street lights.

Besides the above, so may other infrastructural developmental works are being taken up on a regular basis.

Sports and Cultural Activities:

The Company encourages sports and cultural activities. Besides organizing sports events, providing sports materials to the school children, the Company supports sports and cultural events wherever possible.

Environmental Protection:

In order to provide health and clean environment, the Company has been encouraging several activities towards protection of environment. Large scale tree plantation, construction of parks, etc., are taken up under CSR.

Disaster Relief:

With a view to provide relief at times of disaster, the Company has provided motorized boats in the Bhandara and Chandrapur districts located near Nagpur for flood relief. In addition, the Company has been contributing to disaster relief funds on a number of occasions.

Impact of CSR projects

The CSR Projects of MOIL have made deep impact on the local population living in the peripheral villages of the Mines. Some of the major achievements are enumerated below:

  • The infrastructure activities especially construction of roads connecting the interior villages to the main highway has enabled greater mobility and easy access to the nearby towns for the villages on all seasons. The all-weather roads have made it easy for the villages to get their produce to the town market and helped to augment their income.
  • The MOIL-DAV Public School, in fact, has made a very deep impact in the field of providing quality education. The school has grown from strength to strength and is presently operating at full capacity. The under-privileged children who live in remote villages are getting quality education very near to their places. The school has also helped to bring out the hidden talents and the students of the school participated in all India level competitions and brought laurels for themselves and to the school. The school has created such an impact that the students studying in the nearby big towns are migrating to DAV-MOIL Public School to get high quality education.
  • The Light to Lives and the Right to Sight programmes aimed at eradication of blindness in the villages of Vidarbha region, has made a very good impact. The people who never thought of getting quality eye care have been provided with free cataract surgery at no cost and brought back their eye sight.
  • The inclusive rural community development programme launched by MOIL Foundation, has been a great success. More and more number of farmers are now participating in the crop development, livestock development and other programmes, especially SHGs in large numbers. The active participation has paved way for higher income generation, hygiene, quality of life, etc.

The core business of MOIL is mining and marketing of manganese ore. Manganese ore is a vital raw material for steel making in the form of ferro alloys. The proved resources of manganese ore are very limited in the country and MOIL is the largest producer of this vital mineral. Keeping in view the projected growth in the steel production capacity in the country to 300 million tonnes by 2030 as enumerated in the National Steel Policy, there will be huge demand for manganese ore in the coming years. It is therefore necessary to augment the availability of manganese ore in the country. MOIL has been allotted large area adjoining its mines in Maharashtra and Madhya Pradesh which will be developed to enhance the capacity of manganese ore production in the coming year. It is in this context, the CSR projects that are already done and are under progress will help to gain the good will of the local population who will support MOIL’s efforts to expand its operation in the coming years.

Way Ahead

  • With the success of the rural development programme, MOIL would like to take it forward to cover more villages in the next phase.
  • Considering the success of DAV-MOIL Public School, the Company is planning to set up a school in rural area of Nagpur district to cover the remote villages in this area.
  • To take forward the eradication of blindness to other rural areas those are not presently covered.
  • To further strengthen the infrastructure facilities in the remote villages to facilitate greater connectivity.
  • To carry forward the objectives of Swachh Bharat Mission in a big way to achieve the final goal of creating a clean India.

As a premiere CPSE, MOIL is committed to spend the mandatory 2% of profit for CSR projects and will strive to accomplish this objective and even go a step beyond in the coming years.

As a well managed PSU, working in mining belt with huge development needs backed by a CSR tradition in the company, MOIL has been implementing CSR efficiently. This is the situation where innovation can be brought in to increase the impact of CSR investments through design and implementation of innovative CSR projects. Innovation can help in bringing latest knowledge and technology to use the resources more efficiently for better impact on the beneficiaries.

About the author

CSR VISION
CSR VISION is India’s ( probably world’s ) first monthly magazine in print devoted to CSR and Sustainable Development for bringing together all stakeholders of SUSTAINABLE DEVELOPMENT at a global and local levels and act as a platform for promoting strategic CSR and sustainable development practices through dissemination of information and knowledge.