Table 1: NMDC Financials Recast for Capture Rate We first estimate the amount captured by the nmpc through unearned profit. Since the nmDc has multiple business segments, we use the segment reporting tables in the notes to the consoli- dated accounts. Revenues from the iron ore segment (Rs 11,926 crore); earnings before interest and tax (EBIT) (Rs 7,911 crore);4 assets (Rs 4,433 crore); and liabilities (Rs 863 crore) are avail- able here. Interest is zero, hence EBIT = profit before tax (PBT). We use the figures for tax (Rs 3,341 crore) and PBT (Rs 9,761 crore) from the consolidated profit and loss (P&L) statement to estimate the nmpc’s effective corporate tax rate (34%), and use it to estimate tax (Rs 2,708 crore) and profit after tax (PAT) (Rs 5,203 crore) for the iron ore segment. This includes both earned profit and windfall profit (and tax thereon). We use the 2013-14 accounts of the Nmpc to demonstrate our calculations. Table 1 compares financial statements with calculations for the capture rate. A similar analysis was carried out for Coal India Ltd (c11) and its subsidiaries for a 17-year period—i989-2006 (Figure 2). As can be seen, the loss rate in the early years was low. By the end of the period, the loss rate was clearly more than 50%. (b) Hydrocarbons: A recent doctoral thesis (Saksena 2009) uses a similar methodology to calculate royalty and the cv for fossil fuels (Figure 1). However, not enough data is availa- ble to calculate other metrics. For oil and gas, financials for 15 years—1990-2005 of the Oil and Natural Gas Corporation (onGcc) and Oil India Ltd (OIL) were used. Figure 3 clearly demonstrates that royalty fails to adjust to rice increases. Figure 3: Goa lron Ore (c) Goa State: To estimate values for Goa, we used the per- tonne figures from the Sesa Goa analysis and applied it to the state’s iron ore exports as reported by the Goa Mineral Ore Ex- porters Association (GMoEA) in its annual selected statistics. As domestic sales are ignored, the cv is underestimated. As all mining is in private hands, the royalty (actually revenue receipts of the mines department), is the amount captured by the state of Goa. Table 3: State of Goa, 2004-05—2011-12 (a) The loss (Rs 49,268 crore) was far in excess of the outstand- ing government debt (Rs 6,872 crore) and the cumulative fiscal EPWRE India Time Series
