This research examines the capital budgeting procedures used by the National Mineral Development Corporation (NMDC), a prominent player in India's mining and minerals sector, and how these approaches impact the decision-making process. Capital budgeting is a crucial financial process for companies to assess long-term investment projects, especially in capital-intensive industries like mining that need substantial investments in exploration, production, and infrastructure. This study delves into the primary capital budgeting methodologies utilized by NMDC, including net present value (NPV), internal rate of return (IRR), payback period, and discounted cash flow (DCF) assessments. Consideration is given to how these methods impact the prioritization and selection of large-scale projects, as well as how they help bring investment decisions in line with NMDC's strategic goals. By analyzing recent financial data, case studies of big projects, and managerial insights from NMDC, this study determines how well these strategies reduce mining-related risks. Concerns about the environment, new laws, and fluctuating commodity prices are all examples of such risks.