Last week the Supreme Court passed an order directing the Karnataka Mining Environment Restoration Corporation
(KMERC) to recompense 50% of NMDC Ltd's contribution made since 2019. In Karnataka, KMERC has been charging 20% of iron ore sale proceeds from NMDC versus 10% being charged from other category 'A' miners.
"Essentially, the value of this component is pegged at about 71,400 crore from CY19, which KMERC is required to return to NMDC within the next two months," said analysts from Nuvama Research. With this, the broking firm has raised FY24 other income by £1,400 crore, leading to a 30% FY24 earnings per share increase.
