FY 2024-25 was a defining year for the company - marking the transition from commissioning to commercial operations. With all core production units stabilized and operating at their intended capacity, we successfully completed our first year of integrated steel-making.

Chairman & Managing Director

NMDC Steel Limited

NMDC Steel Limited embodies a bold vision - to reshape India's steel industry. Commissioned in 2023 as the most modern, sophisticated, state-of-the-art Steel Plant, NSL has realised the full measure of its capacity and strength.

FY 2024-25 was a defining year for the company - marking the transition from commissioning to commercial operations. With all core production units stabilized and operating at their intended capacity, we successfully completed our first year of integrated steel-making.

The global steel industry, though inherently resilient, continues to navigate a challenging landscape imbued with geopolitical uncertainties, volatile energy prices, and protectionist trade policies - factors that have disrupted supply chains and eroded cross-border competitiveness. Despite these global headwinds, India's domestic steel sector has remained robust, buoyed by the government's sustained focus on infrastructure development, accelerating urbanisation, and the momentum of the 'Make in India' initiative.

India has now emerged as the world's second-largest steel producer, propelled by rising demand from key sectors such as construction, transportation, energy, and capital goods. This environment presents favourable tailwinds for integrated steel producers, particularly those with efficient operations and secure access to critical raw materials.

Against this backdrop, NMDC Steel has delivered a prominent scale-up in both operational and financial performance in FY 2024-25. Revenue from operations rose to Rs8,503.05 crores, a substantial increase from Rs3,048.99 crores recorded during the seven months of commercial operations in the previous fiscal. While we are still in the early stages of our financial journey, the reported net loss of Rs2,373.78 crores in FY 2024-25 primarily reflects one-time stabilisation expenses, fixed overhead absorption and elevated input costs. These transitional factors are expected to ease progressively as we ramp up capacity utilisation, refine our product mix and implement measures to improve energy cost efficiency going forward.

The Nagarnar Steel Plant was envisioned as a key national industrial enabler. Strategically located near NMDC's iron ore mines and supported by strong rail and road connectivity, it has fostered the development of a secure, integrated supply chain. In FY 2024-25, NSL achieved a production output of 20.00 lakhs Tonnes of hot metal, 15.07 lakhs Tonnes of liquid steel and 14.39 lakhs Tonnes of hot rolled coils. These milestones represent the strength of operational systems, reliability of infrastructure and seamless coordination across all plant functions.

This performance was driven by a series of targeted technical and operational enhancements. Integration of level-2 automation, vehicle tracking systems and real-time analytics into core workflows enabled faster response time, reduced manual intervention and greater process stability. In parallel, focussed initiatives in blast furnace optimisation, burden quality control, slag volume reduction and hearth management, each contributed to boosting throughput and energy efficiency.

A key area of growth during the year was special-grade steel. In FY 2024-25, NSL produced 1.19 lakhs Tonnes of high-performance steel grades designed for automotive, structural and industrial applications. Accounting for 8.3% of total output, this progress paved the way to better serve advanced end-user segments such as infrastructure, engineering, energy and mobility.

As we look ahead to FY 2025-26, we are targeting the production of 30 lakhs Tonnes of hot metal and 26 lakhs Tonnes of hot rolled coils from NSL. Strategic expansion into higher- value steel segments and an enhanced digital infrastructure will bolster our competitive edge. The pursuit of renewable energy solutions including solar initiatives and green power procurement will aim to reduce energy costs and shrink our carbon footprint.

NSL continues to strengthen quality systems across the entire value chain - accredited with ISO 9001, 14001, 45001 and 50001 certifications, along with the acclaimed CE certification from TUV Nord for hot rolled structural products. These recognitions reflect disciplined operations and commitment to global standards, ensuring the consistent delivery of high-quality steel to diverse markets.

Adoption of energy-efficient technologies, such as Coke Dry Quenching, Waste Heat Recovery Boilers and Top Pressure Recovery Turbines contributed to a reduction in emission intensity and decreased dependence on fossil fuels. The Zero Liquid Discharge (ZLD) system successfully recycled over 90% of treated water, while commitment to biodiversity was upheld through afforestation and due compliance to forest conservation norms.

In FY 2024-25, NSL expanded the learning and development programs with nuanced modules in hydraulics, ERP systems, energy conservation, safety awareness, and contract management - empowering the workforce with critical skills for a rapidly evolving industrial landscape.

Our commitment to community development and inclusive growth is steely. Over 5,000 people from host communities are now engaged in our operations, contributing meaningfully to the regional economic spirit. NSL runs a school for tribal and underserved children, alongside a hospital that ensures free healthcare to employees and nearby communities.

Efforts to localise procurement yielded strong results, with sourcing from local vendors growing to Rs210.5 crores in FY 2024-25 - strengthening regional enterprises and fostering resilient, community-rooted supply chains.

At NMDC Steel, our governance framework is built on the principles of transparency, accountability, and regulatory compliance. Oversight is ensured through a Board-led structure that provides strategic direction and adherence to applicable norms. We are committed to upholding the highest standards of corporate governance, with the objective of creating long-term value for all stakeholders — including shareholders, customers, suppliers, creditors, the Government of India, State Governments, regulatory agencies, and society at large.

As we look ahead to FY 2025-26, we are targeting the production of 30 lakhs Tonnes of hot metal and 26 lakhs Tonnes of hot rolled coils from NSL. Strategic expansion into higher-value steel segments and an enhanced digital infrastructure will bolster our competitive edge.

The pursuit of renewable energy solutions including solar initiatives and green power procurement will aim to reduce energy costs and shrink our carbon footprint. With streamlined logistics and a more responsive supply chain, we are well-positioned to grow our market presence and continue delivering value to all stakeholders.

I extend my sincere gratitude to our employees, customers, suppliers, government partners, investors and the communities we serve. Each of you play a defining role in shaping this transformative phase of operational and institutional growth. As we step into the coming year, we do so with a shared commitment to building a company that exemplifies industrial excellence, delivers sustainable steel, and creates enduring value for the tribal heartland of India.