Viability of NMDC's mining operations is threatened by Karnataka's pre-condition to share of 80% revenue for renewing mining leases of Donimalai, which has capacity of 4mtpa. The outcome of legal and diplomatic settlement may set a precedent for other mines. This was unexpected because public sector enterprises (PSEs) have been getting their leases renewed without sharing of any revenue - e.g. leases of Nalco's bauxite mines have been recently extended to 2029 and 2032without any share in revenue; many PSEs have been allotted coal blocks on a nomination basis