business excellence in gmr · pdf file4 e ceece egy fy 2013-14 gbem 2014 internal assessment -...

Business Excellence inGMR Energy

FY 2013-14

Business Excellence in GMR Energy | FY 2013-142

INSIDE THE REPORT

Self-Certification 04

Glossary of key terms 05

Glossary of figures & tables 07

Organizational Profile 10

Process Categories

Category 1. Leadership 27

Category 2. Strategic Planning 52

Category 3. Customer Focus 64

Category 4. Measurement, Analysis and Knowledge Management 73

Category 5. Workforce Focus 87

Category 6. Operation Focus 103

Business Results 116

Business Excellence in GMR Energy - FY 2013-14

Business Excellence in GMR Energy | FY 2013-14 3

Dear Colleagues

In our journey of 4 years with Business Excellence, we are proud to be associated with the legacy of the framework left by Malcolm Baldridge. He shared his birthplace Omaha Nebraska with Warren Buffet. He was a brilliant student of Yale, worked as foundry hand in an iron making company and rose to be its President. Thereafter he served in World War II, returned to rise up in another company Scovil to be its Chairman, while leading its transformation from a troubled brass mill to a highly profitable company. He was nominated to be Secretary of Commerce by President Reagan, reduced Commerce Department budget by 30%, administrative personnel by 25%, was a strong proponent of quality management even in government, worked hard to build trade bridges with Soviet Union, China and India and was considered one of the most successful Commerce Secretaries ever.

Your enthusiastic pursuit of GMR Business Excellence Model (GBEM) over these years has helped GMR Energy to build capabilities to improve continually and adapt to rapidly changing business environment. I must convey my deep appreciation of all your effort during FY14, when we took major steps to make GMR Energy more efficient and effective. While we worked together to make internal changes happen, we were also contending with an unprecedented downturn in the global and Indian economy. This did not slow us down, but in fact, made us more determined to make large scale improvements along the length and breadth of GMR Energy.

While we achieved significant gains through CIPs and Idea Factory and cleaned up our KM portal, I would list the big ticket transformational measures as the following:

1. Organization structure was changed from horizontal to vertical, with the formation of SBUs that made us flatter, more agile with greater empowerment down the line; our projects under construction and operating plants were given more authority and responsibility, with clear organization structures (Page No: 32 – 1.1A3, Page No: 88, 5.1A3)

2. To manage our rapid growth, we strengthened our governance processes through more rigorous application of audits, well beyond statutory requirements towards greater management assurance; for key business processes, decision matrix in the form of RASCI were formulated and implemented; DoPs for key processes were reviewed and updated; business reviews were re-designed (Page No: 37, 1.2A1)

3. For our projects, we applied highly improved and documented processes in GKEL, CTPP and Bajoli Holi, through a program which was code named ‘Bhavyatha’ (Page No: 114, 6.2B3)

4. We achieved major cost optimization in diverse areas – from GEMS mines operations in Indonesia to significant resource optimization across GMR Energy (Page No: 108, 6.1B2)

5. We drove Environment, Health, Safety and Governance in an integrated manner, with emphasis on ethics & integrity through the GRI G4 Corporate Sustainability framework (Page No:42, 1.2C1, Page No: 90, 5.1B1)

6. We are pursuing Asset Light Asset Right strategy to continually review our portfolio and maximize valuations (Page No: 56, 2.1A2)

I am confident, just as you are that these transformational measures will differentiate us in the market and yield results on all key areas of interest of investors, employees, suppliers, environment and society, in a balanced manner.

I thank each one of you for your precious contribution towards all-round business excellence in GMR Energy. Let us all continue on this journey focusing on our immediate priorities of liquidity, profitability and structure & processes, without losing sight of capability building for the long term.

With Best Wishes

GBS Raju


GBEM 2014 INTERNal aSSESSMENT - aPPlIcaNT SElf cERTIfIcaTION 1. applicant company

Applicant GMR Energy Limited

Address

IBC Knowledge Park, Phase II, D Block, 4/1, Off Bannerghatta Road

Bangalore – 560029

Karnataka (State), India.

Telephone 080-40432000

Website www.gmrgroup.in

2. Senior Management Details

Official Details SBU SBU Head

Company GMR Energy Limited Thermal (Coal) S N Barde

Name GBS Raju Hydro R V Sheshan

Designation Chairman – Energy GKEL R V Sheshan

Telephone +91 80 40432774 Gas & Liquid Raghunandanan GK

Fax +91 80 40432826 Corporate Functions Ashis Basu

E-Mail [email protected] Coal Assets Avinash Shah

Strategy & Development Aniruddha Ganguly

Finance & Accounts Bhaskar A Rao

3. Organization chart

Attached as Fig. OP-12 in the Organizational Profile reflects reporting relationships with GMR Energy Corporate Center, and includes the SBUs/functions in the organization.

4. No of Employees

In the Company: 1089

5. Site listing and location Details

SBU location No of Employees Service Description

Thermal Coal EMCO Warora, CTPP Tilda 358 Operating Asset, Project

G&L GPCL, GVPGL, GEL KKD, GREL 184 Operating Asset, Project

GKEL Kamalanga 269 Operating Asset

Hydro Delhi, BH, Alaknanda, Talong, Nepal (UMS, UK) 144 Project, Office

Corporate Functions Delhi 38 Support

Coal Assets Bangalore, Indonesia 21 Coal Mines

S&D Bangalore, Delhi 48 Support

F&A Bangalore 27 Support

6. Site listing and location Details

S NO line of Business Turnover

1 Power Generation, Power Transmission & Trading 2986 Crs.

7. We certify that we are eligible for participation in the GBEM Internal Assessment 2014, on account of being an applicant with an independent Board of Directors

8. application Release Statement

We understand that this application will be reviewed by a Team of Assessors. We agree to host the consensus meeting and the site visit, as part of this process, and to facilitate & support an open and unbiased assessment. We also agree to share non-proprietary information on our Business Excellence Processes, for the benefit of other GMR Group Companies.

Date: 13th August, 2014


GlOSSaRy Of KEy TERMSALAR Asset Light Asset Right

AOP Annual Operating Plan

APC Auxiliary Power ConsumptionAPTRANSCO Andhra Pradesh State Transmission Company

ATR Action Taken Report

BBS Behavior Based Safety

BCM Business Chairman

BD Business Development

BE Business Excellence

BH Bajoli Holi Hydro Project

BHR/CHR Business HR / Corporate HR

BOD Business Organization Development

BOP Balance of Plant

BPC Business Planning & Consolidation

BSC Balanced Score Card

BTG Boiler, Turbine, Generator

CA Corporate Affairs

CAPA Corrective Action, Preventive Action

CC Corporate Communication

CDM Clean Development Mechanism

CEA Central Electricity Authority

CEO Chief Executive Officer

CEPCOMCommercial & Contracts, Engineering, Procurement, Construction, Operations & Maintenance

CERC Central Electricity Regulatory Commission

CFO Chief Financial Officer

CFT Cross Functional Team

CIDP Comprehensive Individual Development Plan

CII Confederation of Indian Industry

CIP Continuous Improvement Project

CoBCE Code of Business Conduct and Ethics

COD Commercial Operation Date

CPD Central Procurement Department

CPP Captive Power Plant

C-SAT Customer Satisfaction

CSPD Corporate Strategic Planning Department

CSR Corporate Social Responsibility

CSS Customer Satisfaction Survey

CTPP Chhattisgarh Thermal Power Plant

CTU Central Transmission Utility

DC Development Center

DISCOM Distribution Company

DLP Data Loss Protection

DoP Delegation of Power

DR Disaster Recovery

EBIDTA Earnings before Interest, Taxes, Depreciation and Amortization

EEEC Employee Engagement & Ethical Culture

EHS Environment, Health & Safety

ELP Emerging Leaders Program

EMS Environment Management System

EPC Engineering, Procurement & Construction

ERM Enterprise Risk Management

ERP Enterprise Resource Planning

ESS Employee Self Service

F&A Finance & Accounts

FC Financial Closure

FMS Facility Management Services

G&L Gas & Liquid SBU

GAIL Gas Authority of India Limited

GBEM GMR Business Excellence Model

CTPP GMR Chhattisgarh Energy Limited

GCFO Group Chief Financial Officer

GCM Group Chairman

GCM SEF Group Chairman’s Social Entrepreneurship Fund

GEL GMR Energy Limited

GET Graduate Engineer Trainee

GHB Group Holding Board

GIL GMR Infrastructure Limited

GKEL GMR Kamalanga Energy Limited

GMRETL GMR Energy Trading Limited

GMRVF GMR Varalakshmi Foundation

GoI Government Of India

GPAC Group Performance Advisory Council

GPCL GMR Power Corporation Limited

GREL GMR Rajahmundry Energy Limited

GRI, G4 Global Reporting Initiative

GTA Gas Transportation Agreement

GUVNL Gujarat Urja Vikas Nigam Limited

HOD Head of Department

HPCL Hindustan Petroleum Corporation Limited

HRC HR Council

IDFC Infrastructure Development Finance Company

IDP Individual Development Plan

IEX Indian Energy Exchange


IISc Indian Institute of Science

IJP Internal Job Posting

IMS Integrated Management System

IPO Initial Public Offering

IPP Independent Power Producer

ISMS Information Security Management System

JRL Job Responsibility Level

KM Knowledge Management

KPI Key Performance Indicator

KSS Knowledge Sharing Session

LDC Load Dispatch Center

LDP Leadership Development Program

LNG Liquefied Natural Gas

LSHS Low Sulphur Heavy Stock

LT & ST Plans Long Term and Short Term Plans

LTI Loss Time Injury

LTIFR Loss Time Injury Frequency Rate

LTSP Long Term Strategic Plan

MAG Management Assurance Group

MDC Management Development Center

MDP Management Development Program

MIS Management Information System

MoC Ministry of Commerce

MoEF Ministry of Environment & Forests

MoP Ministry of Power

MoPNG Ministry of Petroleum & Natural Gas

MoU Memorandum of Understanding

MPP Merchant Power Plants

MT Metric Tonne

MTBF Mean Time Between Failure

MTPA Metric Tonne per Annum

NPV/IRR Net Present Value / Internal Rate of Return

O&M Operation & Maintenance

OA Open Access

OEM Original Equipment Manufacturer

OFI Opportunity for Improvement

OHSAS Occupational Health & Safety Advisory Services

ORM Operations Review Meet

P&L Profit & Loss

PAT Profit after taxes

PBT Profit before taxes

PDD Professional Development Dialogue

PDM Policy Deployment Matrix

PDP Professional Development Plan

PESTLE Political, Economic, Sociological, Technological, Legal, Environmental

PLF Plant Load Factor

PMI Project Management Institute

PMP Performance Management Process

PPA Power Purchase Agreement

PPEs Personal Protective Equipments

PSBSC Power Sector Business Steering Committee

PTS Project Technical Services

QMS Quality Management System

R&R Reward & Recognition

RASCI Responsible, Approve, Support, Consult, Informed

RE Renewable Energy

REC Renewable Energy Certificate

RLDC/SLDC

Regional Load Dispatch Center / State Load Dispatch Center

S&D Strategy & Development

SBU Strategic Business Unit

SCADA Supervisory Control and Data Acquisition Systems

SEB State Electricity Board

SERC State Electricity Regulatory Commission

SIPOC Supply Input Process Output Customer

SLA Service Level Agreement

SLT Senior Leadership Team

SMART Specific, Measurable, Attainable, Relevant & Time bound

SPG Strategic Planning Group

SPP Strategic Planning Process

SRLDC Southern Regional Load Dispatch Center

STEP Staff Training & Enhancement Program

STU State Transmission Utility

SWOT Strength, Weakness, Opportunity, ThreatTANGEDCO Tamil Nadu Generation & Distribution Company

TNEB Tamil Nadu State Electricity Board

TNI Training Need Identification

TPM Total Productive Maintenance

TPP Thermal Power Plant

TQMS Tata Quality Management Services

UMPP Ultra Mega Power Plant

VP Vice President

VPGL/GVPGL Vemagiri Power Generation Limited

WAN/VPN Wide Area Network / Virtual Private Network


GlOSSaRy Of fIGURES & TaBlES

Sr No. fig. No. Description

Organizational Profile

1 OP. 1 Peer Assessment – Operating/Under Implementation/Underdevelopment capacity & Key Financials

2 OP. 2 Competitive Changes

3 OP. 3 Key Business, Operational, Societal Responsibility, HR Strategic Challenges and Advantages

4 OP. 4 Source and type of Competitive & Comparative Information

5 OP. 6 GMR Energy – Key Events & Milestones

6 OP. 7 Energy Sector – Awards & Accreditations

7 OP. 8 Main products & Delivery mechanisms

8 OP. 9 GMR Energy Vision, Mission, Values & Beliefs

9 OP. 10 Workforce Profile – Segments & Diversity

10 OP. 11 Major Facilities, Technologies & Fuel

11 OP. 12 GMR Energy : Organogram

12 OP. 13 Market Segments, Customer Segments & Key Expectations

13 OP. 14 Stakeholder groups and Key Expectations

14 OP. 15 Suppliers, Partners, Collaborators, Relationship mechanisms, Supply Chain Requirement

15 OP. 16 Elements of Improvement system and Approach

16 OP. 17 Performance Improvement System

category 1. leadership

17 1.1-1 GMR Energy Leadership System

18 1.1-2 Deployment of GMR Leadership System and its effectiveness

19 1.1-3 Deployment of Vision & Values to Stakeholders

20 1.1-4 Personal Actions by Senior Leaders reinforcing Values

21 1.1-5 “3 Tier” Ethics Structure & Senior Leaders’ role in Management of Ethics

22 1.1-6 Leadership led improvements in Legal/Ethical Behavior, Safety, and Quality & Climate Change

23 1.1-7 Creating Sustainable Organization

24 1.1-8 Sustainability Themes & Focus Areas

25 1.1-9 Enhancing Leadership skills

26 1.1-10 Leadership Communications

27 1.1-11 Creating Focus on Action

28 1.2-1 GMR Energy – Board & Governance System

29 1.2-2 Leadership System Effectiveness

30 1.2-3 Proactive approaches surpassing Legal & Statutory Requirements & Addressing Societal Impact

31 1.2-4 Process of complying and surpassing Legal Requirements

32 1.2-5 Key Risks identified for sector & Mitigation plan

33 1.2-6 Management of Business Ethics

34 1.2-7 CS Approaches & Initiatives

35 1.2-8 GMR Energy Sustainability Initiatives Roadmap

36 1.2-9 GMRVF Project Planning

37 1.2-10 GMRVF Key Initiatives across GMR Energy Sites

category 2. Strategic Planning

38 2.1-1 Strategy Planning Process


39 2.1-2 Planning Horizons

40 2.1-3 Identification of Strategic Advantages, Challenges & Blind Spots

41 2.1-4 Data Collection and Analysis for SPP at the time of Environment Scan

42 2.1-5 Board Direction for Strategy Development

43 2.1-6 E&I in Strategic Planning Process

44 2.1-7 Strategic Objectives, Action Plans, Timelines and Performance Measures

45 2.1-8 Alignment of Strategic Themes and Opportunities for Innovation

46 2.2-1 Strategy Deployment Process

47 2.2-2 Financial Resource Planning

48 2.2-3 Risk Management Methodology

49 2.2-4 Abstract of HR Roadmap – FY15 to FY17

category 3. customer focus

50 3.1-1 Customer Life cycle support and relationship for positive customer experience – Short term & Medium Term

51 3.1-2 Customer Life cycle support and relationship for positive customer experience – Long term

52 3.1-3 Customer Listening – Potential, Competitor and Former customers – Short term market segments

53 3.1-4 Customer Satisfaction and Engagement Measurement

54 3.1-5 E&I on Customer Satisfaction and Engagement Measurement

55 3.2-1 Service Offerings

56 3.2-2 Process to identify and innovate service offering through experience and expectation of customer

57 3.2-3 Customer support across Life cycle

58 3.2-4 Customer & Market Segmentations

59 3.2-5 Building Customer Centric Culture

60 3.2-6 Customer Relationships

61 3.2-7 Complaint Management Process

category 4. Measurement, analysis & Knowledge Management

62 4.1-1 Performance Measurement System

63 4.1-2 Selection & Collection of Data

64 4.1-3 Organization Performance Measurement

65 4.1-4 Selection and Usage of Comparative Data

66 4.1-5 Comparative data usage for supporting Decision making & Innovation

67 4.1-6 Performance Review and Capability Analysis

68 4.1-7 Review Forums to assess Organization Performance

69 4.1-8 E&I through Organizational Performance & Review

70 4.2-1 Properties of Data, Information & Knowledge

71 4.2-2 Document Management System

72 4.2-3 “5 Pillar” Enterprise IT Service Model

73 4.2-4 IT Metrics Framework

74 4.2-5 Stakeholders Information sharing mechanisms

75 4.2-5A Integrated Data and Information System

76 4.2-6 IT Solutions and ERP modules

77 4.2-7 “5 Pillar” KM Framework

78 4.2-8 KM Platform at GMR Energy


79 4.2-9 E&I of KM Framework

80 4.2-10 IT Hardware, Software properties

81 4.2-11 Emergency availability of Data & Information

category 5. Workforce focus

82 5.1-1 GMR Energy HR System

83 5.1-2 Workforce Capacity & Capability Assessment Process

84 5.1-3 Organizing & Managing Workforce

85 5.1-4 Workforce Change Management

86 5.1-5 Workforce Process for improving Occupational Health & Safety

87 5.1-6 Approaches, Measures, & Initiatives related to EHS Workforce Change Management

88 5.1-7 Process for supporting workforce with benefits

89 5.1-8 Policies & Benefits tailored to diverse workforce

90 5.2-1 Methods for capturing inputs on Engagement/Satisfaction

91 5.2-2 Forums and Practices supporting high performance & Workforce Engagement

92 5.2-3 Performance Management System at GMR Energy

93 5.2-3A PMP Grievance Management Process

94 5.2-4 R&R for high performance

95 5.2-5 PMP support to Innovation, Customer & Business Focus

96 5.2-6 Correlation of Engagement results with Business Results

97 5.2-7 Learning & Development System

98 5.2-8 L&D Mechanisms

99 5.2-9 Succession Planning Process

category 6. Operation focus

100 6.1-1 Processes to Design & Innovate Work System and Identification of Internal & External Processes

101 6.1-2 GMR Energy – Work System

102 6.1-3 Key Work System capitalizing on Core Competency and Delivering Customer Value, Sustainability & Organizational Success

103 6.1-4 Work System Requirement

104 6.1-5 Cost Control Measures

105 6.1-6 Prevention of defects, errors and rework, minimizing cost of inspection, test and audits

106 6.1-7 Workplace Emergency Management Plan

107 6.1-8 Emergency Preparedness – Systems & Processes

108 6.2-1 Process for designing and innovating work processes

109 6.2-2 Key Work Processes, Work Process Requirements, Determination of work process requirements and measures

110 6.2-3 Process for improving and innovating work processes


ORGaNIzaTIONal PROfIlEP.2 ORGaNIzaTIONal SITUaTION

Overview of the Indian Economy

Key challenges Opportunities

GDP: In the past couple of years, there has been a fall in the rate of growth causing concern that the period of high growth is coming to an end. (growth fell to a low of 4.4% in 2013)

current account Deficit: India’s growth has been at the cost of a persistent current account deficit (which reached over 6% of GDP in 2012). India needs to import crude oil, machinery and many other raw commodities. Its export sector has struggled to match the growth of imports.

Rupee devaluation: The large current account deficit has caused the Rupee to fall, despite very low interest rates in US and Europe.

Inflation: India has struggled to keep inflation low. In 2013, inflation was nudging near 10%, hurting the living standards of the poor who are particularly vulnerable to the price of food. High inflation is also harming confidence for investment.

Urbanization: Parts of the Indian economy have made rapid growth, but it has proved difficult for the fruits of economic growth to filter through to all areas of the economy, especially isolated rural areas where there is poor infrastructure.

Government budget deficit: Despite years of economic growth, the government has found it difficult to balance the budget. The budget deficit is 4.8% of GDP in the year 2012–13. Public sector debt is 68.05% of GDP, one of highest for a developing economy. Tax collection is still limited by tax evasion and corruption (tax collection only accounts for 9% of GDP – one of lowest in the world).

Policy regime: Policy paralysis, stability of existing policies, market unfriendly policies

Regulatory framework is weak, subject to constant changes and regulatory bodies are composed of government appointed people robbing it of independent view

Stable democracy with peaceful political environment

Peaceful geo-political environment and no cause for alarm from our neighbors

Large market backed by

• a rapidly growing size of the middle class with purchasing power and

• growing young, educated population with high aspirations

Strong domestic savings driven by household savings and holding of gold and other reserves

Highly under-penetrated banking system and equity market

Strong entrepreneurial talent pool in the country with ‘animal instinct’

Large natural resource pool of minerals, still untapped

Fertile land with great scope of productivity improvement

Long coast line and river ways for low cost transportation

Huge infrastructure building up opportunity

7.9

4.9 5.9 6.4

0

2

4

6

8

10

2011 2012 2013 2014

Annual GDP Growth Rate of India (%)

8.87 9.30 10.92

6.95

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2011 2012 2013 2014

Average In*lation in India -‐ CPI (%)


-‐17.44 -‐20.16

-‐31.86

-‐4.20

-‐35.00 -‐30.00 -‐25.00 -‐20.00 -‐15.00 -‐10.00 -‐5.00 0.00

2011 2012 2013 2014

Current Account De,icit -‐ India (Billion USD)

-‐5.10 -‐5.80

-‐4.90 -‐4.50

-‐7.00 -‐6.00 -‐5.00 -‐4.00 -‐3.00 -‐2.00 -‐1.00 0.00

2011 2012 2013 2014

India Budget De-icit (% of GDP)

Overview of Power Sector

Indian Power Sector Key challenges Opportunities

financial Health of State Discoms:

Years of populist tariff schemes, political interference, huge AT&C losses of over 30% and operational inefficiencies have adversely affected the financial health of State Discoms which are currently plagued with humongous outstanding debt of Rs. 1.9 Lakh Crores

Distribution sector reforms:

Distribution sector is still mostly state government owned and there has been inadequate investment, modernization and penetration across the country, thus suppressing actual power demand. Over 30% of our population has no access to electricity even today.

fuel Security concerns:

Thermal capacity addition is plagued by the growing fuel availability concerns faced by the Industry. Significant gas based capacity of more than 20,000 MW is idle due to non-availability of gas. Coal supply by CIL is restricted to around 65% of actual coal requirement by coal based thermal plants, leading to increased dependence on imported coal with the cascading result of high power generation costs. Fuel import bill is the biggest component of our Current Account Deficit and a cause of weak Rupee and high inflation.

Under-procurement of Power by States:

Increasing power generation costs due to limited fuel availability, poor financial health of State Discoms, high AT&C losses have contributed in suppressed demand projections by State Discoms.

Inimical financing Environment:

Over the last 4-5 years, the lending rates have increased significantly from the time of project appraisal resulting in project cost overrun and strain on the financial health of power developers and that of the lenders as well. Power projects being capital intensive, long gestation projects, financial instruments are not available that can provide low, stable long term financing. Life Insurance Funds and Pension Funds are not allowed to be tapped for this kind of funding though they are ideally suited for it.

Per capita consumption: India’s per capita energy consumption is one of the lowest in the world. It has huge headroom for growth with rising income levels, increasing urbanization and growing youth population.

coal: India has the world’s 4th largest coal deposit. Most of the coal deposits are with government owned monopoly. If world-class processes and technologies can be rapidly adopted, and modern regulatory regime established with efficient transportation system, supply can improve significantly.

Huge potential of renewable energy: Wind energy potential of 102788 MW is largely untapped, with installed capacity of 19052 MW. Hydro potential of 84044 MW is also largely untapped, with installed capacity of 40661 MW, while solar potential is also largely untapped at 2647 MW of installed capacity.


Power evacuation:

Transmission of power is facing several points of bottleneck across the country, preventing free flow of power from suppliers to consumers, thus creating additional shortage of power to consumers and surplus of power for producers

Policy Paralysis:

The micro level policies governing the fuel cost pass-through, mega power policy; competitive bidding guidelines are not in consonance with the macro framework like The Electricity Act 2003 and the National Electricity Policy.

Environmental clearances: Environmental clearances are the major hurdle in the growth for investment project. It takes 1.5 -3 years for the clearances which delays the planning for the project. However, to fast track major investment projects and impart transparency in clearance procedures, the project monitoring group (PMG) under the cabinet secretariat has decided to digitize all applications for clearances relating to forest, environment and others by March 2015.

land acquisition: The new Land Acquisition Act was formulated to provide just and fair compensation to those whose land is taken away for constructing roads, buildings or factories, replacing 120-year-old legislation. The new law — Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act — stipulates mandatory consent of at least 70% of affected people for acquiring land for Public Private Partnership (PPP) projects and 80% for acquiring land for private companies. It also proposes that farmers and landowners be paid up to four times the market value for land acquired in rural areas and two times the market value in urban areas. However, the New government at the Centre indicated that it may change few provisions of the land acquisition law.

Unconventional energy: USA has moved ahead in terms of breakthrough shale gas technology., Iceland, Japan and New Zealand have proven technology for geo-thermal energy, Coal-bed Methane deposits in India are not insignificant. India has great opportunity to tap these for future energy security.

Public private partnership model:

There is a strong need to push for wider-scale implementation of public private partnership models. The private sector has been playing a key role in generating power; a more supportive environment will help in bridging the energy deficit of the country.

P.2 a cOMPETITIvE ENvIRONMENTThe electricity market is highly regulated by the government despite policies to deregulate it. While power generation is open to private players, power transmission and distribution markets open to private sector are very small. GMR Energy is not in the business of gas production. It has coal mines in Indonesia.

P.2 a1 cOMPETITIvE POSITIONWhat is your competitive position? What are your relative size and growth in your industry or markets served? What are the numbers and types of competitors for your organization?

Market has stagnated over the last couple of years due to over-capacity in base load, transmission constraints, fuel shortage

and poor financial health of Discoms.

Detailed peer assessment is carried out during Annual Strategic Planning process. As per the current regulations prevailing in the sector, Competition amongst peers is restricted to:

1. Capacity Addition through acquiring projects / developing new projects through regulated bids

2. Sale of Power through Long term bids, and medium & short term merchant market through bilateral and power exchanges.

Few players posing competition to GMR Energy in private Power Generation Sector is Reliance Power, Lanco Infra, Adani Power, JSW Energy, Tata Power, GVK Power and JP Power (Fig. OP.1)

Fig. OP.1 – Peer Assessment – Operating/Under Implementation/Underdevelopment capacity & Key Financials

companyMW (Ins)

MW (Under Development & Construction)

fuel Mix (%) Revenue (Rs. Mn) EBIDTa (Rs. Mn) PaT (Rs. Mn)

coal Gas Hydro Renewable fy12 fy13 fy14 fy12 fy13 fy14 fy12 fy13 fy14

Adani Power 7315 8460 99.6% 0% 0% 0.4% 40898 67748 107144.3 13252 9550 38842.3 (996) (23256) 5952.6

Tata Power 6468 7503 80% 9% 7% 5% 84958.4 95672.8 86270.4 27680.9 27457.3 29465.1 11697.3 10246.9 9540.8

Lanco Infra 3854 18247 54% 23% 16% 1% 101690 135698 47411.1 18394 24130 7380.4 (1164) (12136) 133.4

JSW Energy 3140 8080 96% 0% 0% 0% 61188 89243 58026.1 14478 27932 22675.7 2995 10549 6024.8

Reliance Power 3120 41776 67% 30% 0% 3% 20192 48786 55440 6239 16649 19140 8666 9635 10260

GMR Energy 2498 6013 55% 19% 26% 0.3% 22410 21520 29860 2510 1400 1510 (1340) (7280) (13380)

JP Power 2200 11150 77% 0% 23% 1% 16155.6 22525.8 26775 15267 17713.1 19077.9 4029.5 3291.5 197.3

GVK Power 1249 5533 18% 31% 74% 0% 404.5 9370.2 4082.7 117.2 672.4 327.8 (82.7) (2300.1) (2828.6)


P.2 a2 cOMPETITIvE cHaNGESWhat are any KEy changes taking place that affect your competitive situation, including opportunities for INNOvaTION and collaboration, as appropriate?

Fig. OP.2 – Competitive Changes

aspect competitive changes

Fresh Capacity Addition

• Fresh Capacity addition from private sector is decreasing and may lead to higher deficit in the latter part of 12th Plan

Domestic Fuel (Coal) • Coal Production Enhancement, Speedy Clearances and Restructuring of Coal India are high on the priority list of Coal Ministry, Target set to increase coal production by 13% (YoY)

Availability & Pricing of Natural Gas

• Near term outlook for domestic Natural gas production continues to remain bleak

• The Govt. is considering a bailout package for Gas based power plants that include ensuring cash-strapped state power distribution companies continue to buy electricity from them after a scheduled price hike making available power from plants that are idling for want of fuel and a new repayment plan for a few other idle power plants.

Project Funding

• Liquidity expected to be tight; debt for infra sector considering sectorial limits, current exposure & equity availability is a concern, however due to recently improved Industry & Sector outlook options of attracting funds from Private Equity and Retail investors through IPO Route would help GMR Energy

Clearances & Approvals

• Power Projects awaiting Environmental Clearances have been reviewed by Environment Ministry and Power Ministry and a process is set to speed up the process

Renewable Energy • Supreme court to reevaluate all the hydro projects being set up (Alaknanda is one such project which may be affected)

Financial Health of Discoms

• Scheme for Financial Restructuring has been approved by Cabinet committee on Economic Affairs, this scheme contains various measures required to be taken by State Discoms and State governments for achieving the Financial Turnaround of the Discoms by restructuring their debt with support through a transitional financial mechanism by the Central Govt.

P.2 B STRaTEGIc cONTExTIn spite of significant strides made in capacity addition, the power sector continues to be in the supply deficit regime with the peak and energy deficits for FY 14 being 3.9% and 4.4 % respectively. The capacity utilization of newly added capacity remained at low levels primarily driven by non-availability of fossil fuels – gas and coal. GMR energy was severely affected by the low availability of natural gas, which crippled its operations in the 388 MW VPGL and 220 MW GEL plants. In addition, the commissioning and operations of the 768 MW GREL plant, built at a cost of 3,803 Cr has been stalled due to non-availability of natural gas allocation.

Key aspects current Scenario Key Takeaways

Macro Environment

• India: CRISIL forecasts a 6% GDP growth for 2014-15 as compared to an expected 4.8% for 2013-14

• In the US, economy is beginning to see recovery & European economic recovery is on cards albeit at a slow pace in 2014

• FY 15 Interest rates are expected to remain the same; 8% CPI & 6% WPI is being forecasted for 2014-15

• Liquidity expected to be tight; debt for infra sector considering sectorial limits, current exposure & equity availability is a conc ern

• INR- USD exchange rates trend will remain uncertain; Re is expected to settle between INR/$ rate: 62-65 in FY15

• Expectation of economic upturn; mood remaining cautious

• Currency volatility is on the rise; open exposures need to be hedged, especially in CTPP

• Interest rates are not expected to come down; structured products appear to be the flavor of the day

• Funding concern for Sector is expected to continue as Banks have reached Sectorial limits


Key aspects current Scenario Key Takeaways

Demand & Supply

• Peak and Energy Deficits are currently low (3.9%, 4.4%) & will pick up in H2 FY15

• Lower demand is on a/c of slowdown, structural issues and good monsoon

• Fresh capacity addition from Pvt sector is decreasing & may lead to a higher deficit in the later half of 12th Plan

• Investor confidence has decreased, which will possibly accentuate the high deficit situation in the first half of 13th Plan

12th Plan

• Installed capacity has reached 230 GW with ~19.5 GW in the past one year, driven by Pvt. sector share of 42%.

• 88 GW addition is estimated (excluding renewables) by Planning Commission

• Capacity addition from FY 16 onwards and in 13th Plan could be adversely affected

• Suppressed demand scenario likely to ease by H2 FY15 (GDP related); coupled with RIL Gas price hike may increase short term demand for power

• Decreasing new investments leading to demand outpacing capacity addition by the end of 12th Plan

Power Tariffs

• Short term market rates in FY14 remained suppressed; Short term bid prices higher than prices on the power exchanges.

• Long term bids were at a higher range than the prices in the short term market. This is complete opposite of what was seen in the market two years ago.

• Key factors affecting the short term prices in FY 15 would be increase in fuel costs (+), financial restructuring of DISCOMs which would limit their short term power purchases (-) and connectivity of the southern grid with the national grid (-).

• Developers are also looking at locking up all their capacities on long-term basis given the coal linkage requirements

• Short- term prices may continue to follow FY14 trend, in FY15

Renewables

• 30 GW of renewable capacity planned wherein Solar power target is 20 GW by 2020

• Efforts to review the wind sector with the reinstatement of incentive schemes like GBI. However, low feed-in tariffs and availability of good sites for wind projects are a deterrent

• Renewable tariffs are still attractive (not yet bottomed out); maybe the right time to enter

Hydro

• 67% of 11th Plan target achieved with private sector share of 23%, which is expected to increase further in 12th plan.

• Huge untapped potential for the sector in NE India. Grid strengthening for evacuation of excess hydro power has been identified as the priority

• Capacity addition envisaged in the 12th plan is around 10,000 MW

• Our Hydro portfolio, with already much progress made, is expected to be a key differentiator for value creation in the current market environment

Coal

• Deficit of domestic coal is expected to continue and reach 230 MT by FY17. Will increase further if coal blocks are de-allocated.

• Better performance in terms of production leading to some ease in the fuel supply situation.

• Environmental Clearances for CIL linked mines to increase CIL production have been put on a fast track (MoEF ministry)

• International coal prices are expected to remain soft in the medium term with a gradual increase in CY15

• Newcastle coal index forecasted at US$84 per ton.

• Indonesian coal reference price continue to remain flat.

• CIL will meet FSA commitments for next 2 years due to lack of new bids & delays in start of PPAs

• International coal prices expected to remain flat with a slight upturn towards the end of FY15

Gas

• Near term outlook for domestic gas production continues to remain bleak.

• 9000 MW of projects are stranded due to shortage of gas

• With increased gas prices, production levels are expected to rise over next 2-3 years.

• Gas pooling seems unlikely to be implemented in the near future.

• Open Access and taxation issues with respect to gas transportation continue to persist

• As per EGOM, additional domestic gas coming on-stream shall be allotted to power sector while maintaining the priority of fertilizer sector above power sector.

• Short-term RLNG prices are not expected to decrease from the current level of US$14/MMBTU in FY15

• Domestic Gas supply outlook continues to be negative for the power sector

Policy & Regulatory Environment

• FRP for DISCOMs is in place.

• Coal shortfall being addressed thru’ CCEA directive.

• Uncertainties regarding coal block allocations & Tapering linkage still remain

• No headway in support for stranded gas assets

• Regulators are now inclined to consider fuel as a “non-profit” component in tariff- fuel as pass through as evidenced in Tata & Adani Order

• New SBDs have created a situation of conflict between the State and Center.

• Supreme Court to reevaluate all the hydro projects being set up (Badrinath is one of the project which may be affected)

• New CERC Regulations are in place – stricter operational norms

• Continuity of various positive policy initiatives remains a question with the impending elections

• Implementation of FRP a big step in installing discipline in DISCOM operations even though Maharashtra & Delhi have announced recent populist measures


What are your KEy business, operational, societal responsibility, and human resource STRaTEGIc cHallENGES and aDvaNTaGES?

Fig. OP.3 - Key Business, Operational, Societal Responsibility, HR Strategic Challenges and Advantages

Business/Operational/

HR challenges

Strategic Objectives /

ThemesStrategic Initiatives

Strategic advantages

capitalizing on core competencies and address the potential need for new

core competencies

B1 Ensuring Supply of Fuel – Coal for CTPP and Gas for GVPGL, GREL & GEL KKD

Ensure Fuel Security

• Pursue MOC / CIL to get MoU coal and linkage coal at the earliest

• Policy advocacy for gas pooling and follow up with MoP/MoPNG for domestic gas supply / allocation to GEL, GVPGL, GREL

• Exploring long term LNG opportunities for International market

• Strong Corporate Relations

• Experienced Coal Sourcing and Logistics Team

Stakeholder Relationship

B2 Maximize revenues in Operating Assets

Addressing Power Evacuation / Tariff / PPA related issues

• Ensuring 150 MW transmission corridor for power supply to TN

• Increase dispatch to DNH to 200 MW

• Ensure transmission corridor to potential customers from GKEL to NR and WR

• Ensure PPA / transmission corridor for power supply from CTPP

• Effective Management of Tariff revision petitions / Improve Deemed Generation

• GPCL/GREL as Spinning reserve

• Stakeholder Relationship Operational Excellence

B3 Sustainability

Triple Bottom line Focus/Process Improvement/Project Execution Excellence

• Sustainability Reporting – GRI G4

• Finalize Ash disposal for EMCO

• Compliance to EHS Practices

• Compliance to Internal Audit Findings

• BE Assessment

• Project Execution Excellence : ‘Bhavyatha’ at Bajoli Holi, CTPP

• Improve Operational Efficiency through Implementation of IT enabled business processes

• Sustainable farming based greenbelt development at GKEL, EMCO & CTPP

• BE Assessment & Implementation of FY15 Action plan

• External Training through GRI/CII

• Leadership Commitment towards sustainability

Operational Excellence, GMR Vision, Values & Beliefs

O1 Time and Cost overrun in execution of Projects

Completion of Projects within budgeted cost and time

• Timely COD for

» CTPP Project

» Transmission lines - Angul, Meramandali, Aravali,

• BH Project execution within Budgeted Time and Cost

• Operationalization of PT BSL within budgeted time and cost

• High level of Management Focus and intervention

• Stakeholder Relationship

Project Execution

O2 Improving Cash flows from Operations / Liquidity Initiatives

• Achieving Profitability/Cost Optimization across Operating Plants (Asset Light)

• Improve liquidity through Financial/BD Initiatives, and resolution of litigations

• Improving Operational Efficiencies and reducing O&M Costs

• Manage cash flows through receivables management

• Relocation/Sale of GPCL, GREL, Barge, Mangalore Land

• Overrun funding for EMCO, GKEL & CTPP

• Replacement / Securing disbursement from original lenders

• Filing DRHP and concluding GEL IPO

• High level of Management Focus and intervention

• Engaging renowned consultants / experts for driving Operational Excellence Initiatives

• Success in tariff revision petitions filed by other competitors

Operational Excellence


Business/Operational/

HR challenges

Strategic Objectives /

ThemesStrategic Initiatives

Strategic advantages

capitalizing on core competencies and address the potential need for new

core competencies

H1 Talent Management

Acquiring, managing and retaining the right talent

• Focused EE plan for Critical Resources & High performers

• Ensure 1:1 Step in and Long term successors for all critical positions

• Leadership and Capability Building

• Implementation of Hay Group recommendations

• Strong GMR Brand Value

• Organizational Design by McKinsey

• Job Evaluation and Organization Analysis by Hay Group

Stakeholder Relationship, Operational Excellence, Project Execution

B : Business, O: Operational, H : HR

P.2 a3 cOMPaRaTIvE DaTaWhat are your KEy available sources of comparative and competitive data from within your industry? What are your KEy available sources of comparative data from outside your industry? What limitations, if any, are there in your ability to obtain these data?

GMR Energy employs various mechanisms (As illustrated in Fig. OP.4), for sourcing comparative & competitive data.

Fig. OP.4 – Source and type of Competitive & Comparative Information

Key competitive & comparative Information

Source of Information

Strategic Bloomberg, Infra-line, Sigma Insights, PESTLE Analysis, Regulatory Orders, Annual Reports of other companies, Analyst Reports, Web sites of Regulatory Authorities

OperationsEngagement with Global Consultants, Best In Class – Benchmarking Framework, OEMs, Data published by CEA, SEBs, other informal channels e.g. Networking, New Recruits

Projects Engagement with Global Consultants, PMI, Infra-line

P.1 ORGaNIzaTIONal DEScRIPTIONGMR Group is one of India’s most diversified infrastructure conglomerates with significant experience and expertise in the development, construction and operation of large infrastructure projects. GMR Group also founded Raxa, a large, renowned private security company and GMR Varalakshmi Foundation, an independent professionally run Section 25 Company to channelize its significant corporate social responsibility programs. GMR Group also owns Delhi Daredevils, the IPL T20 cricket team.

GMR Infrastructure limited (GIL), formed in May 1996, and is the holding company for all infrastructure businesses of GMR Group, with interests in airports, power, roads and urban infrastructure. GIL is listed on the Bombay Stock Exchange

and the National Stock Exchange since 2006 with market capitalization of approximately Rs. 13,312.13 Crores.

GMR Energy Limited (GEL) created in October 1996, is a wholly owned subsidiary of GIL, and the holding company for all Special Purpose Vehicles that develop, construct and operate power projects. We have a gross operational capacity of 2498 MW and an additional gross capacity of 2318 MW under construction. In addition, we have a pipeline of power projects with an aggregate gross capacity of 3695 MW that is currently under various stages of development. Below table (Refer Fig. OP.5) sets forth our subsidiaries and their respective businesses.


Fig. OP.5 – GMR Energy Limited, Assets, Projects, Power Transmission, Coal Mines & Other subsidiaries

@ - Other power projects under development include:

• 300 MW planned capacity hydroelectric-based power project in the state of Uttarakhand (the “Alaknanda Power Project”)

• 225 MW planned capacity hydroelectric-based power project in the state of Arunachal Pradesh (the “Talong Power Project”)

• 600 MW planned capacity hydroelectric-based power project in Nepal (the “Upper Marsyangdi-2 Power Project”)

• 900 MW planned capacity hydroelectric-based power project in Nepal (the “Upper Karnali Power Project”)

• 350 MW planned coal-based power project in the state of Odisha (the “Phase II Kamalanga Power Project”)

• 1,320 MW planned capacity coal-based power project in the state of Madhya Pradesh (the “SJK Power Project”)

fig. OP.6 GMR Energy – Key Events and Milestones

Till FY12

FY13

FY14

Foray into power sector – • Commissioning of Power Plants – GPCL, GVPGL, GEL Mangalore (Later relocated to Kakinada), GMR Solar Project - Patan • Projects under construction – GKEL, EMCO, CTPP, Transmission Projects in Rajasthan • Projects under development : Hydro – Bajoli Holi, Alaknanda • Securing fuel sourcing by acquiring stake in in South Africa Coal mines, PT BSL : Indonesia, PT GEMS • Signing of PPA for long term power off take from – GPCL, GVPGL, GKEL (260 MW with Bihar State Electricity Board), EMCO (200

MW with MSEDCL), Gujarat Solar (25 MW with GUVNL), CTPP (35% of power tied with Chhattisgarh State Power Trading Company limited)

• Signing of Fuel Supply Agreement by EMCO Power plant (Unit 1) with SECL and by GKEL with MCL for firm linkage

• Tie up of 200 MW for EMCO power plant with DNH Electricity for a period of 7 years and 3 months • Commercial operation of EMCO Unit 1 – 300 MW • Project Execution Excellence through “Bhavyatha”

• SBU oriented structure for higher level of De-centralization and Empowerment • Commercial Operation of EMCO Unit 2, GKEL Unit 1,2 & 3, and Maru Transmission • Signing of Fuel Supply Agreement by EMCO with SECL(Unit 2) • FSA by GKEL with MCL for tapering linkage • Tie up of 150 MW from EMCO with TANGEDCO for a period of 15 years • Financial Closure achieved for 180 MW Bajoli Holi Hydro Power


P.1 a ORGaNIzaTIONal ENvIRONMENT

P.1 a1 PRODUcT OffERINGS

What are your organization’s main product offerings? What is the relative importance of each to your organizational success? What mechanisms do you use to deliver your products?

Electric Power is the dominant product of GEL. GEL also has coal trading business, which is at a nascent stage at the moment. The delivery mechanism & % split of revenue for Operating Assets are given in the table below: Table OP.8

Within the power generation business, we have followed a strategy of diversification in respect of our fuel source, geographic presence and off take arrangements.

We have 623 MW of gas-based, 200 MW of low-sulphur-heavy-stock (“LSHS”) based and 1,650 MW of coal-based capacity that is operational. Additionally, we have also diversified into renewable energy based power projects. We have 25 MW of operational solar power plant. In our portfolio of projects under

construction, we have 1,370 MW of coal-based, 768MW of gas-based and 180MW of hydro-based plants. We are also in the process of developing 2,025 MW of hydroelectric power projects that have not yet commenced construction. Most of our power projects are strategically located close to the fuel source to reduce our fuel transportation costs.

While we initially began our operations with a focus on the energy-deficient Southern region of India, we have now diversified across India with power projects in the Eastern, Western and Northern regions as well as into Nepal to develop large hydro power projects aimed at exporting power into India.

Our power off take arrangements is intended to achieve a balance between risk, cash flow and revenue through a combination of long-term and short-term power purchase agreements (“PPAs”). At present, a majority of our off take arrangements are long-term PPAs with various state utility boards. We also sell power on a short-term basis through our power trading company, GMR Energy Trading Limited (“GETL”), and through other power exchanges. Fig. OP.8 illustrates our product offerings and mechanism to deliver them.

Fig. OP.7 – Energy Sector: Awards & Accreditations


Fig. OP.8 – Main Products & Delivery Mechanisms

Sr. No.

Name of Power Plant / Project

Off-take arrangement contracted capacity TermRevenue

(Rs. crores)

1 EMCO Energy Limited - Warora

PPA with Electricity Department, Union Territory of Dadra and Nagar Haveli dated March 2013

200 MW PPA for 7 years and 3 months from April 2013

743 Cr

(Unit 1 COD – Mar’13,

Unit 2 COD – Sep’13)

PPA with MSEDCL dated March 2010 200 MW PPA for 25 years from March 2014

PPA with TANGEDCO 150 MW PPA valid until September 2028

2GMR Kamalanga Energy Limited - Kamalanga

PPA with GRIDCO dated September 2006

(A) Up to 25% of power sent out

(B) right to buy all power generated in excess of a PLF of 80%, and

(C) all infirm power

PPA valid for 25 years from the commencement of operation of the last unit

238 Cr

(Unit 1 COD – Apr’13,

Unit 2 COD – Nov’13

Unit 3 COD – Mar’14)

PPA with PTC dated June 2007 300 MW 25 years from the start date of supply

PPA with Bihar State Electricity Board Nov 2011 260 MW PPA for 25 years from

November 2015

3 GPCL Chennai PPA with TNEB 196 MW PPA valid till Feb’15 1032 Cr

4 GEL Kakinada PPA with GETL dated October 2008 Upto 220 MW PPA valid until October 2015 Under Preservation

5 GVPGL – Rajahmundry

PPA with four state-owned distribution companies in Andhra Pradesh dated March 1997

370 MW PPA valid for 23 years from September 2006 209 Cr

6 Patan Power Plant (Gujarat Solar)

PPA with Gujarat Urja Vikas Nigam Limited dated December 2010 25 MW PPA valid for 25 years from

March 2012 63 Cr

7 Gujarat Wind Power PPA with Gujarat Urja Vikas Nigam Limited dated 27.06.2011 2.1 MW PPA valid for 25 years from

04.07.20111.08 Cr (FY13-14)

8 Tamil Nadu Wind Power

PPA with Tamilnadu Generation & Distribution Corporation Ltd. 1.25 MW PPA valid for 20 years from

15.12.20110.45 Cr (FY13-14)

9 Maru Transmission Transmission Service Agreement with Rajasthan DISCOMs Lump sum 25 Years from Sept.2012

(COD Sept 2013) 13.39 Cr (FY13-14)

10 Aravali Transmission Transmission Service Agreement with Rajasthan DISCOMs Lump sum 25 Years from Sept. 2012 Under

Construction

11 Power Trading Power Exchange & Bilateral Lump sum Short Term, Medium Term 701.45 Crs (FY14)

P.1 a2 vISION aND MISSIONWhat are the distinctive characteristics of your organizational culture? That are your stated PURPOSE, vISION, valUES, and MISSION? What are your organization are cORE cOMPETENcIES and their relationship to your MISSION?

The organizational culture is built across all levels in the

organization where people are encouraged to take stretched targets, empowered to achieve them, and are supported to take calculated risks and right decisions to achieve the business objectives. GMR Group Vision, Values & Beliefs and GMR Energy Mission truly reflect our culture. It is nurtured through regular communication, training, reward & recognition, and high level of personal commitment from senior leadership team.

“GMR Group will be an institution in perpetuity that will build entrepreneurial organizations making a difference to society through creation of value.”

Our vision

Fig. OP.9 – GMR Energy Vision, Mission, Values & Beliefs


core competencies: The current core competency of GMR Energy is Stakeholder Relationship and 2) Project Execution

GMR Energy, with its large portfolio of projects of 6013 MW under construction and development and 2498 MW under operation in FY14, was mostly oriented towards a complex, diverse and large set of stakeholders to execute projects successfully in a highly regulated environment. In the process, it has remained in the pursuit of all the elements of GMR Group Vision, Values & Beliefs and GMR Energy Mission.

Operational Excellence has been identified as core competency which needs to be further developed in the coming years, for which ground work is already well under way, by soon engaging a global consulting firm to support us. We aspire to create an

asset management process that would encompass end-to-end requirements from top & bottom line management to talent & performance management at asset level and at Sector level.

P.1 a3 WORKfORcE PROfIlEWhat is your WORKfORcE profile? What are your workforce or employee groups and SEGMENTS? What are their education levels? What are the key elements that engage them in accomplishing your MISSION and vISION? What are your organization’s WORKfORcE and job DIvERSITy, organized bargaining units, KEy WORKfORcE benefits, and special health and safety requirements?

GMR Energy workforce profile across SBUs, and Projects / Assets / Functions is illustrated in Fig. OP.10

Mission

“By 2020, GMR Energy wants to be the most profitable and one of the

leading integrated Energy companies in India and derive value by

• Diversifying strategically across Energy value chain

• Being a preferred employer

• Being socially responsible”

values and Beliefs

HumilityWe value intellectual modesty and detest false pride and arrogance

Deliver the promiseWe value a deep sense of responsibility and self discipline, to meet and surpass commitments made

Teamwork and relationshipsGoing beyond the individual, encouraging boundaryless behaviour

EntrepreneurshipWe seek opportunities - they are everywhere

LearningNurturing active curiosity - to question, share and improve

Social responsibilityAnticipating and meeting relevant and emerging needs of society

Respect for individualWe will treat others with dignity, sensitivity and honour

Fig. OP.10 – Workforce Profile – Segments & Diversity

Employee Strength Gender Profile

function / Site Nos. % Male female age Profile level wisel

BCM Office 9 1% 9 0

Upto 30 Years – 131 to 40 Years – 441 to 50 Years - 251 to 60 Years - 2

Senior Management (M4 & Above) – 0 Middle Management (M5) – 1Junior Management (M6,M7) – 5Support Staff (A1 to A4) - 3

Coal Assets 21 2% 18 3


Senior Management (M4 & Above) – 4Middle Management (M5) – 5Junior Management (M6,M7) – 9Support Staff (A1 to A4) - 3

Corporate Functions 38 3% 28 10




Employee Strength Gender Profile

function / Site Nos. % Male female age Profile level wisel

Ethics & Intelligence 3 0.005% 3 0

Upto 30 Years – 031 to 40 Years – 041 to 50 Years - 151 to 60 Years – 2


Finance & Accounts 27 2% 23 4



Gas & Liquid 184 17% 180 4



GCM Office 3 0.005% 3 0 60 to 64 Years - 3 Senior Management (M4 & Above) – 1Other - 2

GKEL 269 25% 254 15



Hydro 144 13% 137 7



S&D 33 3% 25 8



Thermal Coal 358 33% 335 23



GMR Energy has a committed and highly diverse workforce totaling 1089 with high dependence on workforce to develop, build and operate Power Assets. Structured HR processes, well supported by Business HR, facilitate the recruitment of right people, their training and development, career progression, retention and motivation. GEL also employs contract workforce to carryout routine and non-production related work in the areas of FMS, O & M etc.

We do not have any bargaining units in the company.

Our attrition rate is one of the lowest in the industry. The key factors that motivate the workforce and keep them highly engaged includes:

(a) GMR Brand Image (b) Challenging job assignments (c) Career progression (d) Freedom and Empowerment to take decisions in respective

work areas (e) Performance driven Culture (f) Regular Communication mechanisms like – Town Halls,

Business Organizational Development programs, Skip level meets etc.

As an integral part of its policy, GEL focuses on creating a culture of safe and healthy work environment by ensuring compliance to all statutory and safety requirements as applicable to its operations. All Employees at operating

plants and project sites follow the prescribed safety practices and are provided with Personal Protective Equipment. An integrated framework on IMS provides for detailed process and initiatives for improving quality, environment, health & safety for example, establishment of Occupational health center at our Operating Assets, Annual health checkup programs for all regular and contract workmen. An integrated Energy Sector EHS framework provides detailed processes and SOPs to continuously assess, adhere to Environment, Health & Safety parameters throughout GMR Energy, complying with OHSAS 18001, ISO 14001 and GRI framework of reporting.

P.1 a4 aSSETSWhat are your major facilities, technologies, and equipment?

IT infrastructure is extensively used across all offices & project sites of GMR Energy. Integrated ERP system (SAP) is used for carrying out all transactions, HR operations and project management. Project progress is monitored through extensive video conferencing and web enabled cameras, connected to War Rooms. Distributed Control Systems (DCS) and various other modern plant automation systems at our Operating Assets ensure real time monitoring and control of plant operations. The required software tools such as AutoCAD, Primavera, OSI PI, BPC, etc. are made available to the locations as per requirement. All locations are connected through WAN/VPN. The technology & the major equipment used at our plants and projects are given in the table below (Fig. OP.11)


Fig. OP.11 – Major facilities, Technologies & Fuel

Operating asset / Project

Beneficial Ownership

Gross capacity

Operational Status

Technologies fuelcommercial Operation

GPCL - Chennai 51% 200 MW Operational IC Engines LSHS FY99

GVPGL - Rajahmundry 100% 388 MW Operational Combined Cycle Natural Gas FY07

GEL KKD - Kakinada 100% 235 MW Operational Combined Cycle Natural Gas FY11

GREL - Rajahmundry 100% 768 MW Under Construction Combined Cycle Natural GasBased on Fuel Availability

EMCO - Warora 100% 600 MW Operational Subcritical Technology Coal FY14

GKEL - Angul 81.44%1050 MW (Phase I)

Operational Subcritical Technology Coal FY14

CTPP - Tilda 100% 1370 MW Under Construction Supercritical Technology Coal Est. FY15/16

Bajoli Holi 100% 180 MW Under Construction Renewable - Hydro Water Est. FY18

Gujarat Solar - Patan 100% 25 MW Operational Crystalline PV Technology Solar Radiation FY12

Gujarat Wind Power 100% 1.25 MW Operational Conventional Technology Wind power FY12

Tamilnadu Wind Power 100% 2.1 MW Operational Conventional Technology Wind power FY12

Maru Transmission 100% NA Operational NA - FY14

Aravali Transmission 100% NA Under Construction NA - -

P.1 a5 REGUlaTORy REqUIREMENTSWhat is the regulatory environment under which your organization operates? What are the applicable occupational health and safety regulations; accreditation, certification, or registration requirements; industry standards; and environmental, financial, and product regulations?

The power sector is highly regulated, from government determined pricing for coal to government determined pricing of electricity. Source of coal (Coal India Limited) is mostly government owned and dominant customer segment (State Electricity Boards) is also government owned.

The Electricity Act 2003 provides the core statutory framework governing various aspects of Power Sector in India viz. Generation, Transmission, Trading, Distribution & Retail Supply, and Unregulated Rural Markets. Key policies and regulations in relation to the power sector are provided below:

• Electricity Act 2003 • New Hydro Policy 2008• Environmental Protection Act 1986, the Air (Prevention and

Control of Pollution) Act, 1981• The Water (Prevention and Control of Pollution) Act,

1974 and other regulations promulgated by the Ministry of Environment and the Pollution Control Boards of the relevant states

• Mega Power Projects : Revised Policy Guidelines• Guidelines for Allocation of coal blocks / coal linkages for

power sector, Gas Allocation Policy• Tariff based Competitive bidding guidelines for Transmission

Service• CEA, CERC, SERC, and Dispatch Load Centers (NLDS,

RLDC) requirements • National Tariff Policy guiding Tariff related provisions,

principles

• National Electricity Policy

• Consumer protections and other regulations e.g. Foreign Investment Regulations

• Company’s Act – 2013, Factory’s Act, Environment Laws, Labor Laws, Occupational Health & Safety Standards Regulations, & Accounting Standards

• R & R policy of the respective state Govts

P.1 B ORGaNIzaTIONal RElaTIONSHIPS

P.1 B1 ORGaNIzaTIONal STRUcTURE

What are your organizational structure and GOvERNaNcE system? What are the reporting relationships among your GOvERNaNcE board, Board committees, and parent organization, as appropriate?

GMR Energy Limited (GEL) is a wholly owned subsidiary of GMR Infrastructure Limited (GIL), the flagship listed company of our Group. GEL is a holding company for all SPVs formed for implementing various power projects. GEL board comprises of 6 independent and 4 non- independent directors. Mr. GBS Raju is the Business Chairman (BCM) of the company. 3 Independent directors on GEL Board are also on the board of GIL. GEL board has various sub committees namely – Audit Committee, Shareholder’s Transfer & Grievance Committee, Nomination & Remuneration Committee, and IPO Committee. GEL organization is headed by BCM at Energy Sector level. SBU Heads report into BCM. Appropriate authority is vested with the SBU Heads and to Functional Heads/HODs which is commensurate with their responsibilities. The decision making process across the organization is guided by ‘Delegation of Power’ (DoP) document for the Sector and critical processes have clear RASCI (Responsibility, Approve, Support, Consult, Inform). The Organogram is depicted in OP.12


P.1 B2 cUSTOMERS & STaKEHOlDERSWhat are your KEy market SEGMENTS, cUSTOMER groups, and STaKEHOlDER groups, as appropriate? What are their KEy requirements and expectations for your products, cUSTOMER support services, and operations? What the differences in these requirements and expectations are among market SEGMENTS, cUSTOMER groups, and STaKEHOlDER groups?

Fig. OP.13 – Market Segments, Customer Segments & Key Expectations

Market Segments customer Segments Key Expectations

Long Term/ Medium Term

State Utilities/ Private DISCOMs

• Availability of supply as per contract• Rescheduling on mutual basis• Competitive tariff• Rebates for extended period.• Security/ guarantees against contracts

• Sale/ banking of their surplus power at competitive rates

• Error free billing and payment convenience• Dedicated contact point (easily accessible)

Short Term Trading – Power Exchange

REC Generators• Maximum clearance of REC• Maximum Realization• Regulatory updates

Open Access Industrial Consumers

• 100% availability to avoid penalties• Competitive tariff• Payment terms• Compensation terms• Additional availability during hours.

• Assistance for Approvals for scheduling,• Updates on Market outlook• Updates on Regulatory framework• Dedicated contact point (easily accessible)

IPPs/CPPs• Competitive tariff, Firm Contracts, • Payment terms• Compensation terms

Short Term Trading – Bilateral Agreements State Utilities

• Availability of supply as per contract.• Rescheduling on mutual basis• Competitive tariff• Rebates for extended period.• Security/guarantees against contracts

• Sale/banking of their surplus power at competitive rates

• Error free billing and payment convenience, Dedicated contact point (easily accessible)

Fig. OP.12 – GMR Energy: Organogram


Market Segments customer Segments Key Expectations

Short Term Trading – Bilateral Agreements

Open Access Industrial Consumers

• 100% availability to avoid penalties• Competitive tariff• Payment terms• Compensation terms• Additional availability during hours.

• Assistance for Approvals for scheduling,• Updates on Market outlook• Updates on Regulatory framework• Dedicated contact point (easily accessible)

Generators (For Sale)• Firm contracts• Payment security• Availability

• Dedicated contact point (easily accessible)• Updates on Market outlook

Other Traders

• Lowest tariff• Competitive trading margin• Supply for peak hours/few hours/few

days

Private DISCOMs

• Max. Availability,• Competitive tariff• Sale/banking of their surplus power at

competitive terms

• Error free billing and payment convenience• Dedicated contact point (easily accessible)• Flexibility of rescheduling on mutual basis

Fig. OP.14 Stakeholder Groups and Key Expectations

Stakeholder Group Key Requirements

Investors / Shareholders • Return on Investment

Employees

• Engagement• Attractive Compensation• Learning & Development• Career Progression

Suppliers / Partners / Contractors• Timely Payment & Repeat Orders• Long term Relationships• Ease of Doing business

Lenders / Financial Institutions• Repayment as per terms• Adherence to Planned Project Progress & Other Contractual requirements• Long term Relationships

Central / State Govt. Local Administrative Depts.,

• Compliance to applicable laws & Regulations• Implementation of Rehabilitation & Relocation Policies• Adherence to MoU Terms• Policy Advocacy

Community • Support in improving quality of life, Education, Medical Facilities, Basic Infrastructure, Area Development, Access, Protection of Environment, Livelihood

P.1 B3 SUPPlIERS aND PaRTNERS

What are your KEy types of suppliers, PaRTNERS, and cOllaBORaTORS? What role do these suppliers, PaRTNERS, and cOllaBORaTORS play in the production and delivery of your KEy products and cUSTOMER support services? What are your KEy mechanisms for communicating with suppliers, PaRTNERS, and cOllaBORaTORS? What role, if any, do these organizations play in implementing INNOvaTIONS in your organization? What are your KEy supply-chain requirements?

The supply chain plays a major role in meeting the key requirements and enabling us to sustain the advantages of competitive differentiators. The key requirements are 1) Cost 2) Timely Delivery and 3) Quality. In order to fulfill the value chain requirements, the communication mechanisms are letter, emails, discussions, site visits, etc. Suppliers/Partners often bring the initial spark of Idea leading to innovation during two way interactions besides helping us in implementation/evaluation of our innovative interventions.


Fig. OP.15 – Suppliers, Partners, Collaborators, Relationship mechanisms, Supply Chain Requirement

Type of Supplier, Partner, collaborator

Role played by them in Delivery of Product

/ Service

Relationship Mechanisms

Supply chain RequirementsRole played in work system / Innovation

Fuel Suppliers – Coal, Natural Gas, LSHS, (e.g. Mahanadi Coal Fields Ltd, South Eastern Coal Fields Ltd, Coal India (Other Subsidiaries), Indonesia Coal Suppliers, Reliance, Niko and BP, HPCL)

Supply of fuel for Operation of Power plants

MOU’s, Contracts, AMC’s, Tenders

• Price, Quality, Delivery• Credit Facility

Indigenization of Supply & Spares

O&M Contractors & Partners• Ensuring highest Plant availability

at lowest cost• Training of GEL Employees

Suppliers of Spares, Consumables, Commodities (SKF, FAG, HPCL, Kirloskar, Voltas, Bharat Bijlee, L&T)

• Price, Quality, Delivery• Genuine Spares• Flexible Payment Terms

Projects Partners, EPC Contractors, (Doosan, SEPCO, SEC, Gammon etc.)

Supply – Technology, Engineering, Equipment, Construction of Power Project, Commissioning

RFP’s, RFQ’s, Technical & Commercial Bids, Negotiations, Award of Contracts, LOI’s

• Proven capabilities in design, develop and execute large power projects

• Technology, • Timely Delivery• Quality Standards• Commercial Terms – Cost,

Payment Terms etc

Sharing of Global Benchmarks / Performance Data of other Best Sites, Improvement Projects

Global Consultants (McKinsey, BCG, KPMG, E&Y, , Deloitte, PWC etc.)

Project Execution Excellence, Operational Excellence, Global Best Practices and Trends

RFP’s, Technical & Commercial Bids, Negotiations, Award of Contract

• Proven Track Record• Scalable Solutions• Return on Investment• Learning & Development

Sharing of Global Best Practices, Benchmarking

GPAC (Group Performance Advisory Council)

Assessment of Group Core processes and Group / Sector Performance

GPAC Assessment, Presentation

• Subject Matter Expert, Domain Experts

• Vast Experience across Industries, Sectors

Performance assessment of Key Group Processes, Comparison with Industry/Sector & Other related organizations

P.2 c PERfORMaNcE IMPROvEMENT SySTEMWhat are the KEy elements of your PERfORMaNcE improvement system, including your evaluation, organizational lEaRNING, and INNOvaTION PROcESSES?

Fig. OP.16 Elements of Improvement System and Approach

Element approach Illustration Reference

Performance Review and Evaluation

PMP, GHB/GCM/BCM/SBU Head’s review, Plant Performance Review, Project Reviews, Surveys, Complaint Management, GBEM Assessment, SLA’s

BSC, PMP, Multi-level Review Forums - GHB, QBR, ORM’s at GKEL, EMCO, Project War Room reviews, ATR’s

Fig. 4.1-1, Fig. 4.1-6, Fig. 5.2-3

Continual Improvement

7 STEP Methodology, Cross Functional Team based approach, QC tools

Capex Optimization CIPs, CIPs at Operating Assets (Heat Rate Reduction, APC Reduction, Plant Preservation Cost Optimization), Cycle time Reduction, Safety Performance Improvement (LTIFR)

Fig. 4.1-8, Fig. 7.1.92, Fig. 7.1.93, Fig. 7.1.94

Innovation & Best Practice Sharing

Idea Factory, Leader Led SessionsIdeas implemented at Projects & Assets, Learning & Sharing of Key Improvements across Sectors through “Leader led Sessions”, Project Bijlee, Paani

4.1 C1, Fig. 7.1.95, Fig. 7.1.96


Fig. OP.17 Performance Improvement System


1.1 SENIOR lEaDERSHIP

Our Leadership Team Members led by our BCM, under the active directions of GHB, takes a lead role in driving the organization guided by our values & beliefs as mentioned in Fig. 1.1-1 and 1.1-2. The 3 Level Leadership Team of GMR Energy is Tier 1 – GHB & GCM, Tier 2 – BCM & SBU Heads, Tier- 3 – Project Heads, and Plant Heads & Functional Heads.

1.1 a vISION, valUES, aND MISSION

1.1 a1 vISION aND valUES

1. lEaDERSHIP

How do SENIOR lEaDERS set organizational vISION and valUES? How do SENIOR lEaDERS DEPlOy your organization’s vISION and valUES through your lEaDERSHIP SySTEM, to the WORKfORcE, to KEy suppliers and PaRTNERS, and to cUSTOMERS and other STaKEHOlDERS, as appropriate? How do SENIOR lEaDERS’ actions reflect a commitment to the organization’s valUES?

Our Group Vision has been developed through a series of Vision Building Exercise involving Senior Leadership Team members. This exercise was facilitated by External Consultant, using a Team based Approach, to capitalize on the Group’s Values & Beliefs.

Fig. 1.1-1 GMR Energy Leadership System

Senior Leadership Team of GMR Group plays a vital role in

formulating and revalidating the Vision and Group Direction

based on the Strengths and Aspirations of the Group.

In FY11, the Group Aspirations were re-visited through a

process called “Sankalp-2020” leading to formulation of

Individual business level Vision/Mission. Energy Sector

Mission was developed using the same process. In FY

13, the Group adopted Asset Light- Asset Right strategy

to ensure a Long term sustainable business model with the

theme of, ‘Develop, Build, Create value, Divest and Reinvest’.

Consequently the Senior Leadership Team of Energy Sector,

after due deliberation, identified following strategic Themes:

1) Profitability 2) Liquidity 3) Structure & Process in alignment

with the Group Strategic direction.


Fig. 1.1-2 Deployment of GMR Leadership System and its effectiveness

StepDeployment of leadership

SystemTill fy13 fy14

1

Obtain feedback from Stakeholders on vision & Mission

Engage and understand the requirements of Stakeholders, This sets the context for Strategy Planning

Investor Meets, Customer Meetings, Community Meets, EEEC Outcomes, Feedback from various communication forums e.g. Town Halls, Skip Levels, People Konnect

360 Deg. Feedback on Leadership Effectiveness, C Sat Outcomes

2

Set Direction:

Re-visiting Vision, Mission, Values Beliefs, Validating Strategy, Stimulate Stretch Goals

Sector level objectives, Shift in Strategic Direction : from “Growth” to “Asset Light Asset Right”

Focus on Consolidation, Sector level objectives cascading down to SBU Priorities with key focus on Strategic Themes – Liquidity, Profitability, Structure and Process

3

communicate Direction to Stakeholders :

Build commitment by communicating direction to all stakeholders

Annual General Meets, GCM Newsletter, Town Halls, Investor Meets, Customer Visits / Meetings, eCircular, Discussion with Govt Institutions/Ministries, Corporate Communication, Community Meetings, Supplier Meets

BCM Newsletter, SBU Specific Town halls

4

Plan & align :

The ST plan is deployed across SBUs, Functions aligned to Vision & Mission, Work System and Goals of Employees

Formation of New Depts. : PPA Management, Capability Center

Organization structure altered to create a flatter SBU oriented structure for higher level of De-centralization, Empowerment, and faster decision making, Introduced PDM and A3 approach to support Strategy Deployment

5

Execute Plans:

Motivate, Empower and Make available resources

BSC, Allocation of resources (In-house, Outsourcing e.g. Creation of Shared Service Center to manage Transactional Processes)

Capability and Capacity building measures across SBUs, Revised RASCI & DoP to match changes in Org. Structure, Detailed ERM Assessment for GKEL, Bajoli Holi and Power Trading

6

Drive High Performance: Organizational Performance reviews, and taking corrective action / resource allocation, R&R

GHB Reviews, GCM Reviews, Plant Head/Project Head Reviews, PMP, Contractor’ performance Review, Vendor Performance Review, Engagement with McKinsey to develop GMR way of Project Execution Excellence - “Bhavyatha” , Best In Class Benchmarking framework for G&L Assets, Employees’ R&R : Spot Awards, Group level CIP R&R, Best CIP at each site, Theme based Idea Factory : Winning Site & Top Contributors

BCM Reviews, SBU Head Reviews, ORMs for Thermal (Coal) Assets, Annual BE Roadmaps, Institutionalization of HR Council, BE Council, Safety Council, Comprehensive GMR Project Management Process for Hydro Projects, Integrated EHS Framework for Energy Sector, Leader Led Sessions, G&L Community Meets with focus on preservation

7

Develop People :

Enhance the Capability of people through training and development

Emerging Leaders’ Program, BE Assessors’ Certification program, GMR EDC, Learning Modules on 4 Pillars – Lead Self, Lead Others, Lead Business & Lead Change, and 11 Competencies (Virtual MDC)

P&L Training for Plant Heads/Project Heads, IMS Training for Lead Auditor, Internal Auditor and MR, BE Practitioners’ workshop for Senior Leaders, BBS Training, OEM Training, O&M Training, Bhavyatha Workshops

8

Enhance capability of Processes & Operations :

Adapt to new challenges and raise the bar through incorporation of new technology, organization knowledge and agility

Implementation of Super Critical Boiler Technology at CTPP Project, SAP Implementation across Assets, Projects and Corporate Functions

Implementation of IMS (Quality, Environment & OHSAS) at GKEL & EMCO, Deployment of Capability Center Roadmap

9

learn & Innovate :

Exhibit role model behavior while performing step 1 to step 8, Improve & Innovate to achieve stretched targets through Best Practices

Take lead role in Strategy formulation, Communication to Stakeholders, Promote Culture of Continuous improvement, Strong Focus on GMR Values & Beliefs, Nurture Innovation & Risk taking, Promote culture of comparison through Best Practice and Benchmarking (Best In Class framework at G&L Assets)

Learning Capture from previous projects - EMCO, InterGen & Island Power (Singapore Project), Operational Excellence Initiatives for Thermal (Coal) AssetsEngagement with Global Consultants on Stage Gate Audits (PwC), Organization redesign (McKinsey), and Job evaluation and Organization Analysis (Hay Group)


“Business Excellence is not a process or procedure but a way of thinking. It is about fighting and pursuing something diligently, with a strict and determined approach to doing it right. If you deliver Excellence right now, that gives you the best shot at the best future you’ve got coming. We need to ingrain this belief in minds of every employee to enable them make BE part of their day to day working. It is only this way we can aim for sustained excellence in our organization.”

S N Barde President - Thermal (Coal)

The senior leaders deploy the organization’s vision, mission and values to all employees, key suppliers and partners, and to customers through communication mechanisms as depicted in Fig. 1.1-3.

Fig. 1.1-3 Deployment of Vision & Values to Stakeholders

Stakeholder/customer communication By forum for communicating Directions Outcome/Example

Investors / Shareholders Board Members, GCM, GCFO Annual General Meetings, Annual Reports, Investors Meet

Equity Infusion, Acquisition, Divestment

Customers

BCM, SBU Head (Thermal Coal Assets, G&L Assets), Head Power Trading, Plant Heads, PPA Management Team

Customer Visits, Customer Meets Fig. 7.2.2, Fig. 7.2.6, Fig. 7.2.8, Fig. 7.2.9, Fig. 7.2.1

Suppliers / Partners / Contractors

SBU Heads, Head CPD, Plant Head, O&M Heads

Contract Award, Award of Service Orders/Purchase Orders, Partners’ Presentations, Formation of JV, Vendor Visits, Supplier Meets, Performance Review

Fig. 7.1.99

Lenders / Financial Institutions GCFO, Sector CFO, BCM Financial Closure, Lenders Consortium MeetsTimely FC of projects, Timely disbursement of Funds, Debt Restructuring

Town hall at EMcO Town hall at GKEl

launch of Hydro Power Project Management Manual and EHS framework

Energy Business chairman Interaction with GPcl Team


Central / State Govt. Local Administrative Dept

GCM, BCM, Corporate Affairs, SBU Heads, Plant Heads

Group updates, Policy Advocacy, Interactions with Govt Institutes and Ministries

Enhanced Stakeholder’s Relationship

Community SBU Heads, Project Heads, Plant Heads, GMRVF

Community Meets, GMRVF Projects review and Update, Stakeholder Engagement

Fig. 7.4.3, Fig. 7.4.4, Fig. 7.4.5

Employees GCM, BCM, SBU Heads, Plant Heads, Functional Heads

Annual Day Celebrations, GCM Newsletters, BCM Newsletters, Town Halls, Skip Level Meetings, Reward & Recognition

Fig. 7.3.8, Fig. 7.3.9

Personal actions, commitment, & passion of Senior leaders towards GMR Values, is demonstrated during their various formal & informal meetings (Fig. 1.1-4) like Skip Level meets, Departmental meets, Town hall meetings, Customer meets, Supplier meets, Talent Review meets, Plant visits, Participation in Seminars, summits, Conferences Trade fairs, etc. with

various stakeholders like employees, vendors, suppliers, customers, etc. GMR Values are the guiding force for various actions taken by Leadership at all levels in the Organization right from Setting the direction to Communicating the same, Planning & executing the direction with a constant focus on aspirational targets.

Fig. 1.1-4 Personal Actions by Seniors Leaders reinforcing Values (illustrative)

values Deployed Through Examples of Personal actions Outcome

Humility Interactions, Reviews, PresentationsLeadership recognize and appreciate others’ abilities, knowledge and achievements in open forums, Meetings, Reviews, Seek help & support to accomplish complex tasks

Engaged and motivated Employees, Willingness to learn

EntrepreneurshipContinuously seeking opportunities for sustainable growth

Leadership taking Lead and Active participation from Conceptualizing till Commissioning, First ever Barge Mounted Gas based power plant in India

Strong Asset Base supported by dedicated Business leaders, Presence across Energy Value Chain, Diversification wrt Geography, Fuel source and Off take Arrangement

Teamwork & Relationships

Culture of Collaboration, Formation of Cross Functional Teams, Celebration of Team Achievements, Formation of JV/Partnerships

Personal involvement in formation of Cross Functional Teams to accomplish complex tasks, and Continuous Improvement Projects, Appreciate Team work, Personal Involvement in recognizing Team Achievement (Idea Factory, Zeal Factory)

Fig. 7.1.92, Fig. 7.1.93, Fig, 7.1.94

Deliver the Promise

Structured Reviews, Identifying Bottlenecks and realigning resource deployment, Focus on Actions

Review of ATRs, Adhering to Critical milestones and timelines

BSC Achievement, Balancing Stakeholders expectations

Learning

L&D, Specific focus on Key Takeaways in Annual Operating Plans, Weightage on Personal learning in Annual Appraisals

GCM & BCM led Projects’ Key Learning Exercise – EMCO Project, InterGen, Island Power, Active participation in KM Communities (G&L Community, Short Term Power Market), Leader Led Sessions

Learning Capture from previous projects and using it for future projects, Project Execution Excellence through Bhavyatha

Social Responsibility

GMRVF Initiatives on 4 Thrust areas : Education, Health-Hygiene-Sanitation, Community Development & Livelihood

GCM’s & BCM’s personal involvement in conceptualizing to completion of GMRVF initiatives, active involvement through Engagement with Communities, Review of GMRVF Projects, Senior Leaders’ involvement in CD Initiatives at Projects and Assets

Fig. 7.4.3, Fig. 7.4.4, Fig. 7.4.5

Respect for Individual

One on One Interactions, Reviews, Day to day working

Leadership attentive to individuals, Open Door Policy, Take responsibility of failure, Recognize individual efforts in open forum

Positive Referrals, Enhanced Brand Image, Preferred Employer

1.1 a2 PROMOTING lEGal aND ETHIcal BEHavIORHow do SENIOR lEaDERS actions demonstrate their commitment to legal and ETHIcal BEHavIOUR? How do they promote an organizational environment that requires it?

Our Senior Leadership Team personally promotes an organization that fosters results & requires legal & ethical behavior by setting up un-compromising standards, through their personal behavior and actions. Legal and ethical misconduct is viewed seriously and acted upon. Fig. 1.1-

5 depicts 3 tiers Ethics Structure at GMR Energy. Code of Business Conduct & Ethics (CoBCE) has been in place & commitment to this is reinforced by various policies like Whistle Blower policy, Sexual Harassment policy, governed by Ethics & Intelligence Department at Group level. HR has formulated a mandatory program on Code of Business Conduct & Ethics (COBCE) that needs to be undertaken by all employees. Actions have been taken to ensure that each employee has read and accepted the GMR’s CoBCE through the e-enabled system. A multi-channel, multi-language Ethics Helpline with toll free number, managed by 3rd party (KPMG), has been


launched to provide a safe and secure way for employees, vendors and suppliers to report Ethical concerns. Also, considering the resource limitations, and direct reach of Ethics

and Intelligence department, Ethics Counselors have been appointed at Projects/Assets locations to provide a secure forum for free and frank exchange of concerns locally.

Fig. 1.1-5 “3 Tier” Ethics Structure & Senior Leaders’ role

Tier Senior leadership Involvement – roles & responsibilities

1st – Group Governance council & Ombudsperson

Providing Guidance for the Ethics & Intelligence Plans, Resolution of Ethical Concerns, Review of Ethics & Intelligence Processes and its effectiveness, Protecting Whistle blowers, Addressing Suppliers concerns, Role Model for Employees & Other Stakeholders

2nd – location Ethics counselors

Selection of Location Ethics Counselors, Oversee performance and effectiveness of Location Ethics Counseling

3rd – Ethics Helpline Nominating 3rd Party for managing Ethic Helpline, Assess performance of Ethic Helpline and Agency involved

A Legal portal for Energy sector has been developed which hosts information/update on all the legal cases for ready reference of Leadership Team to enable quick decision making. Similarly, a Compliance portal has been put in place to ensure, on time, 100 % compliance, to all statutory requirements. Commitment towards EHS is ensured through Periodic Safety & Environment Audits, Implementation of EHS framework, registration of CDM projects with UNFCCC to reduce Carbon foot print, and initiation of GRI –G4 based sustainability reporting for Energy Sector. Additionally, in the current year, E- Governance portal for enhanced EHS manageability is

being put in place. Also, a blue print on Sustainable farming based Green Belt development is being sketched out for our sites/locations. During the various reviews chaired by SBU Heads/BCM the regulatory compliance and deviations, if any are reviewed, including implementation of IMS as per ISO 9001:2008, ISO 14001, 18001. In addition, Periodic Audits are undertaken by MAG to assess the compliance level. Senior Leadership led Improvements in Legal/Ethical Behavior, Safety; Quality & Climate Changes are depicted in Fig. 1.1-6 below.

Fig. 1.1-6 Leadership led improvements in Legal/Ethical Behavior, Safety, and Quality & Climate Change

areas Till fy13 fy14

Legal & Ethics

COBCE Framework, Whistleblower Policy, Sexual Harassment Policy, Compliance Portal for Gas & Liquid Assets (GPCL, GVPGL/GREL, GEL KKD)

3rd Party Managed Ethics Helpline (Accessible over call, e mail, fax for all Stakeholders), e-Enabled COBCE Acceptance by all Employees, Energy Sector Compliance portal (Including Thermal Coal & Hydro), Energy Sector Legal Portal

EHS & Quality

Compliance to EHS Standards through IMS at G&L Assets, Quality Procedures and SOPs

IMS Certification (Environment + Quality + OHSAS) for EMCO, GKEL, Comprehensive Energy Sector EHS Framework, Implementation of Bhavyatha QA QC processes, Pre-bid safety evaluation of Contractors

Climate Change

3/4th of Installed Power Generation Capacity using Clean Fuel (Natural Gas), Use of Advanced Technology in Coal Based Thermal Power Plants for enhanced efficiencies and reduced emissions (Super Critical Boiler technology at CTPP), Balance Portfolio of Assets + Projects under construction + Projects under development (Coal, Natural Gas, LSHS, Hydro, Solar, Wind)

Focus on Sustainability (GRI G4 Framework), Green Initiatives, Development of Green Belts at EMCO & GKEL, Use of Effective Waste management (100% Fly ash utilization by Fly Ash Bricks manufacturers, Zero Discharge Philosophy for all Operating Assets), Emission targets set surpassing Statutory requirements, Resources conservation measures : Energy Conservation (Project Bijlee), Water Conservation (Project Paani) at EMCO, Use of Low Ash / Low Sulphur Coal

1.1 a3 cREaTING a SUSTaINaBlE ORGaNIzaTION

How do SENIOR lEaDERS create a SUSTaINaBlE organization? How do SENIOR lEaDERS achieve the following? create an environment for organizational PERfORMaNcE improvement, the accomplishment of your MISSION and STRaTEGIc OBJEcTIvES, INNOvaTION, PERfORMaNcE leadership, and organizational agility?

• create a WORKFORCE culture that delivers a consistently positive CUSTOMER experience and fosters CUSTOMER ENGAGEMENT

• create an environment for organizational and WORKFORCE LEARNING

• develop and enhance their leadership skills

• participate in organizational LEARNING, succession planning, and the development of future organizational leaders


In order to achieve competitive advantage in Energy sector and strengthen the organization in the context of changing domestic and global energy scenario, we realigned our organization structure to build robust Strategic Business Units (SBUs) with dedicated strategic and functional support. Through this reorganization, we have achieved focused P&L, and balance sheet responsibilities, enhanced authority & accountability, as well as empowerment resulting in faster decision making. This reorganization has helped us in building a framework which has successfully facilitated shift from functional leadership to business leadership, providing a robust leadership pipeline and leveraging the competencies and experience of senior leadership team.

“We envisage developing projects based on optimum fuel mix with a view to significantly increasing the share of Renewable Energy in our portfolio, where it stands currently. Our strategies focus on sustainable business growth, business continuance and process orientation for creating a sustainable organization”

ashis Basu President – Corporate Functions

Following are the key milestones in our sustainability journey:

Fig. 1.1-7 illustrates GMR Energy Approach towards creating a sustainable organization.

The Organizational work system (Fig.6.1-2) & Organizational Capability Assessment (Fig. 5.1-2) have been restructured and aligned to core competency to deliver customer value, achieve organizational success, and ensure sustainability (Fig. 6.1-3). Fig. 1.1-8 illustrates Sustainability Themes & Focus Areas emerging from Strategy Workshops.


Fig. 1.1-7 Creating Sustainable Organization

aspectKey approaches

(Till fy13)Key approaches fy14 Impact

Performance Improvement for accomplishment of Mission, and Strategic Objectives

- Energy Sector Strategy Development and Deployment

- Sector BSC, Reviews (GHB, PSBSC, CEO)

- Improvement projects at Projects & Assets

- Energy Sector restructuring with Empowered SBUs having P&L responsibility, - Sector BSC cascaded to SBU BSC’s - Strategy Deployment through Aligned approach – PDM and monitoring through

A3 sheets - SBU review architecture - Revised RASCI & DoP - Fraud Risk Assessment & Stage Gate Audits, - Monthly ORMs at Thermal Assets (GKEL, EMCO)

Fig. 7.4.1

Innovation- Launch of Idea Factory

at Projects, Assets & Corporate Functions

- Site specific Idea Factory themes launched, addressing Site Challenges, Involving large no. of Employees

Fig. 7.1.92, Fig. 7.1.93, Fig. 7.1.94, Fig. 7.1.95, Fig. 7.1.96

Organizational Agility

- Shift from Growth Focus to Consolidation

- SAP implementation at G&L Assets

- S Curves, Cost Curves, Primavera based Project Monitoring

- Project War Rooms (CTPP, GKEL, EMCO)

- Implementation of “Asset Light Asset Right”- Sector Key Themes – Liquidity, Profitability, Structure & Process, - Organization structure altered to create a flatter SBU oriented structure for

higher level of De-centralization, Empowerment, and faster decision making - Revised RASCI & DoP to match changes in Org. Structure- Shifting of some businesses to Delhi - Policy Advocacy and Engagement with Govt. - Collaboration with Institutes and Academia for Audits, Training Institutes, (CII,

NIST, IIMs), and with Global Consultants : McKinsey, KPMG, AT Kearny, BCG, E&Y, PwC etc. for Global Best Practices, Benchmarking

- Bhavyatha – GMR way of Project Execution excellence Implementation at Thermal Projects

- Hydro Power Project Management Manual for BH - Energy Sector EHS Framework - IMS Certification of EMCO & GKEL - Key Focus on Sustainability through “Global Reporting Initiative” – GRI G4

Report- SAP Implementation and Business Intelligence application OSI PI

implementation at EMCO, GKEL- Business Object based BPC Implementation across Energy Sector for effective

AOP Planning, Monitoring, Review and Control- War Room for Bajoli Holi Hydro Project- IT Platform and Hardware up gradation (Nth Version Policy) e.g. Compliance

Portal on SharePoint 2010 platform

Faster Decision making, Nimble to changes in External Environment, Long term Sustainable Business Model

Foster Customer Experience & Engagement

- Customer Support processes and C Sat for G&L Assets, Customer Complaint Register for G&L Assets

- Evolved new function – PPA Management team to support Thermal Coal Customers

- Internal Customer centricity through SLA’s - Power Trading C Sat Survey questionnaire reviewed by Independent Internal

Committee to ensure element of objectivity - Separate Survey Questionnaires for OA Customers – (Exchange and Bilateral)- Customer Interaction Template rolled out to capture outcomes of scheduled

and unscheduled interaction with Customers- Set up Regional Office at Hyderabad for South Bound Power Trading

Customers

Fig. 7.2.1, Fig. 7.2.2, Fig. 7.2.3, Fig. 7.2.4, Fig. 7.2.5, Fig. 7.2.6, Fig. 7.2.7, Fig. 7.2.8, Fig. 7.2.9

Organization & Workforce learning

- TNI and Learning &Development,

- GMR Virtual MDC - GMR EDC- E-Learning Modules,- Classroom training - BE Assessors Certification

Programs - Participation of Certified

Assessors (Internal/External) in Energy & Other Sectors’ BE Assessment

- Train the trainer workshops

- Key Learnings capture from Past Projects and sharing : EMCO, InterGen, Island Power

- O&M Training for Thermal Assets, OEM Training- KM Portal Restructured and Revamped- Implementation of Knowledge Capture Templates, and Technical Advisory, - KM Communities – G&L, Short Term Power Market, - Key Learnings Capture &

Sharing – EMCO Project, InterGen, Island Power, BE KM Council- Leader Led Sessions through KM platform enabling Cross Sector Learning and

Sharing (DIAL, GHIAL, Highways) - CII Certified GRI G4 Training, KSS on GRI G4 Training- Behavioral Based Safety Training (EMCO)

Fig. 7.3.1, Fig. 7.3.2, Fig. 7.3.3, Fig. 7.3.4, Fig. 7.3.5, Fig. 7.3.20, Fig. 7.3.21


aspectKey approaches

(Till fy13)Key approaches fy14 Impact

Development of Future Leaders

Emerging Leaders Program, Job rotation, Challenging Assignments, Exposure to specified course/seminars/conferences

- Hay Group for Job Evaluation and Organization Analysis to enable consistent and comprehensive Role documentation of unique roles in the organization

- Identification of Critical Positions, Mapping of the positions with potential Long Term/Step in Successors for entire Energy Sector, Gap Assessment and bridging by external/internal training and new recruitment

Strong Leadership Pipeline for Future

Enhancement of Personal Leadership Skills

- 360 Deg Feedback - Outcomes of Gallup –

Employee Engagement Score

- 360 Deg Feedback, - BE Practitioners workshops for Senior Leaders at GKEL, EMCO, - Outcomes of EEEC Survey- Action items emerging out of Skip Level Meetings, Town Halls

Strong Leadership Pipeline for Future, Sustainable Organization

Fig. 1.1-8 Sustainability Themes & Focus Areas

year Sustainability Theme Strategic focus Operational focus

Till FY12

- Growth Focus – Capacity Addition

- Diversified & Balanced Portfolio

- Presence Across Energy Value Chain

- Develop New Power Projects, Explore Opportunities for Acquisition (Domestic/Overseas)

- Diversified portfolio through Presence in Thermal (Coal), Gas, LSHS, Hydro, Solar, Wind Power

- Upstream (Coal Mines) and Downstream (Transmission & Distribution) Opportunities

Develop O&M Capabilities, Culture of Continuous Improvement, Training & Development, Focus on Safety, Quality, Environment through EHS Policy, IMS Certification of G&L Assets

FY 13 & FY14

- Shift in Business Model “Develop, Build, Create value, Divest and Reinvest”

- Group Focus on – Asset Light Asset Right- Sector Key Strategic Theme – Liquidity, Profitability,

Structure & Process

- Develop GMR Way of Project Execution Excellence : “Bhavyatha” for Thermal & Hydro Projects

- Hydro Power Project Management Manual, Sector EHS Framework, IMS Certification at newly commissioned GKEL & EMCO

- Operational Excellence Initiatives at Thermal Assets- RASCI & DoP, Stage Gate Audits- Focus on Employee Engagement, Green Initiatives and

Sustainability through GRI G4

Performance Improvement, accomplishment of Mission and strategic objectives, Innovation, Performance leadership & agility

Key approaches to these aspects are described in Fig. 1.1-7. As described in Fig OP.17, our performance improvement system is embedded in all process. Leadership Team guides the organization for the accomplishment of Strategic objectives, innovation (Fig 2.1-7) and BSC/PDM cascade (Fig. 4.1-1). From FY 15, all the Goals will carry 100% weightage on Performance as against 75% in previous years. Also, one of the goals mandatorily will be related to Capability Building for which a fixed 10 % weightage has been assigned / configured in the e-PMP system.

create Workforce culture to Deliver Positive customer Experience & customer Engagement

Senior leaders create a customer centric culture through a 4 block approach (Ref fig 3.2-5). Also, in order to enhance internal Customer – Supplier centricity to serve our Customers better, Service Level Agreements have been formulated and are being launched for – Thermal Operations with Power Trading, Coal sourcing & Logistics and, PPA Management Team. Various other approaches to create Customer Engagement in work culture are illustrated in Fig. 5.2-4 & 5.2-5

create Organizational & Workforce learning

Senior Leaders ensure the learning & development needs

are identified through PMP process and provide opportunities to complete the identified training programs to enhance learning. Senior leaders create environment for Organizational and Workforce learning through their Active involvement in launching BE Roadmaps for their respective SBUs, supporting deployment of Improvement Projects/ BE Practitioner program, IMS certification course for Lead Auditor/Internal Auditor/MRs, encouraging employees to share learning’s on KM portal, Training key Employees on GRI-G4, P & L Training for Plant / Project Heads, supporting KM initiatives aimed at capturing key learning’s from large scale Thermal Projects Acquired, Executed, and divested in Past for e.g. EMCO, InterGen, Island Power. Also, Leader led sessions at Group level provides an opportunity for learning, sharing, and cross pollinating some of the best practices on Energy conservation, water conservation, waste management and other process improvements.

Enhancing Personal leadership Skills

Feedback through PMP, 360 degree Leadership Assessment, Skip level meetings, other informal feedbacks provide a holistic view to the leaders to chalk out plans for improving their personal leadership skills (Fig. 1.1-9), and creating future leaders for organization. Their personal efforts are complemented with training on Executive Leadership Programs and following HR processes related to workforce and leader development as described in 5.2 C1 & Fig.5.2-8


Fig. 1.1-9 Enhancing Leadership Skills

Participation in Organizational learning, Succession Planning, and development of future leaders

A primary responsibility of Leadership Team is using every interaction as a potential opportunity to mentor and develop future Leaders. Leadership Team encourages adoption of new Technology, and best practices which are shared in various review forums. Leadership thoughts to enhance organizational performance trigger Engagement with Consultants (McKinsey/Hay), Academia (IIM-Kozhikode), NIST for behavioral based Safety programs, CII for Energy Audits, PWC for Project stage Gate Audits etc. leading to all-round Organizational learning on key aspects of Performance. GMR Energy has identified critical job positions that must be filled in by experienced, well qualified and appropriately skilled employees. Senior leaders participate in succession planning (Fig. 5.2-9) to ensure a pipeline of future leaders is ready to take over higher responsibilities. They personally evaluate the recommendations for developmental needs of the next level of leaders and discuss their skill and competency development plans. (Ref: Succession Planning Workshop conducted in FY 14)

1.1 B cOMMUNIcaTION aND ORGaNIzaTIONal PERfORMaNcE

1.1 B1 cOMMUNIcaTION

How do SENIOR lEaDERS communicate with and engage the entire WORKfORcE? How do SENIOR lEaDERS achieve the following?

• encourage frank, two-way communication throughout the organization

• communicate KEy decisions

• take an active role in reward and recognition programs to reinforce HIGH PERfORMaNcE and a cUSTOMER and business focus

Senior leaders use various mechanisms for timely & effective communication and for engaging the workforce as given in Fig. 1.1-10. To encourage and motivate distinguished performances in various areas, GMR Energy has a bouquet of R&R, which gets updated and improved based on VOE, ESS and other inputs from workforce. Senior leadership actively participates in the R&R functions, creating higher level of motivation and inspires others to imbibe good practices. For E.g. Spot Awards, Best CIP at each location, Theme based Idea Factory – Leading site, and Contributor, Group Level CIP Awards.

Fig. 1.1-10 Leadership communication mechanisms

To Workforce Key approaches Improvements Effectiveness

Two way communication

Town Halls, Skip Level Meetings, GCM&BCM Visit to Projects, Assets, People Konnect Town hall meetings in all SBUs

Communication Effectiveness – EEEC Outcomes, Employees perception on LeadershipCommunicate

Key Decisions

GCM Newsletter, BCM Newsletter, eCirculars, gNet, Interim Updates, Policies, Minutes of Meetings, ATR’s, E Mails to Employees

SBU Heads Communication

Reward & Recognition

Spot Award, Idea Factory, Best CIP, I Value U, Zeal Factory

Site wise Best CIP R&R, Site specific Theme based Idea Factory R&R (Winning site, Top contributors)

Increased Idea Generation, More no. of unique employees contributing ideas


Fig. 1.1-11 Creating Focus on Action

create focus on Processes used by Senior leaders

Attaining Vision & Organizational Strategic Objectives

- Vision, Mission, Values & Beliefs - Strategy Development & Deployment workshops - Review Architecture - RASCI, DoP, Governance- Sector Strategic Themes – Liquidity, Profitability, Structure & Process - Stakeholder Engagement, Policy Advocacy- Employees Reward & Recognition, Engagement, Motivation - Sector BSC, SBU BSCs, PDM, A3 Sheets, Goal Sheets

Improving Performance

- Organization Restructuring, Empowered SBUs with P&L Accountability- Reviews (GHB, GCM, BCM, SBU Heads, Plant Heads, Project Heads) - Annual BE Roadmaps for SBUs- Organizational Design by McKinsey- Engagement with Global consultant McKinsey to develop a “GMR way” of Project Management (Bhavyatha),

Operational Excellence at Thermal Assets- Hay Group facilitated Job Evaluation and Organization Analysis to enable consistent and comprehensive Role

Documentation- Culture of Continual Improvement through 7 STEP Methodology at Assets, Projects and Corporate functions - Nurture innovation through e-Enabled Employees’ suggestion scheme : IDEA FACTORY- Actively engage in Employees’ Reward & Recognition

Environment, Health, Safety & Quality

- Process Standardization through IMS at G&L Assets, Thermal Coal Assets - Energy Sector EHS Framework, Hydro Power Project Management Manual- Enhance focus on Cost of Quality - Behavioral Based Safety Assessment, Bridging gaps by External Training (NEBOSH)- Sustainable Farming based Green belt Development

Climate Change

- Zero Discharge philosophy at Operating Assets- Sustainability Reporting under GRI G4 Framework - Focus on Resource conservation through Project Bijlee & Project Paani- Balanced portfolio, Significant generation through Clean Fuel and Renewable sources- Use of Advanced Technology leading to higher efficiencies, Reduced Emissions - EHS Targets set to surpass Statutory requirements

1.2 GOvERNaNcE & SOcIETal RESPONSIBIlITIES

1.2 a ORGaNIzaTIONal GOvERNaNcE

1.2 a1 GOvERNaNcE SySTEM

How does your organization review and achieve the following KEy aspects of your GOvERNaNcE system?

• accountability for management’s actions

• fiscal accountability

• transparency in operations and selection of and disclosure policies for GOvERNaNcE board members, as appropriate

1.1 B2 fOcUS ON acTION

How do SENIOR lEaDERS create a focus on action to accomplish the organization’s objectives improve PERfORMaNcE, and attain its vISION? How do SENIOR lEaDERS to identify needed actions? How do SENIOR lEaDERS include a focus on creating and balancing value for cUSTOMERS and other STaKEHOlDERS in their organizational PERfORMaNcE expectations?

Leadership Team brings Organization wide focus through our Strategic themes as mentioned in 1.1 A1. These themes are integrated with our Work System (Fig. 6.1-2) and aligned with BSC/PDM, Strategic objectives, Goals, Initiatives and Action Plans (Fig. 2.1-7). Balancing of stakeholders’ requirements is done through identifying goals on all 4 perspectives of Balanced Score Card. This is reinforced through redesigned Goal sheets

largely focusing on efficiency and effectiveness measures along with 10% weightage for L & G, which comprises of aspects like Innovation, KM, People development, Corp Sustainability & Process Improvement. Fact based Performance reviews (Fig. 4.1-7) by senior leaders, trigger action plans to create continuous focus on accomplishment of strategic objectives (Fig. 7.4.1). These actions become trigger for building new capabilities and thus review findings become an important input to Strategic Planning Process (Fig. 2.1-1) New initiatives that drive breakthrough performance are implemented by formation of CFTs (Bulls Eye at GKEL, Hydro Power Project Management Manual) and, through Improvement Projects. Senior leaders also identify required actions through Assessment feedbacks like IMS audits, MAG Audits, Financial Audits, Customer/ Supplier satisfaction surveys to enhance process and organizational capabilities. Creating focus on safety & climate change is also a part of senior leaders focus as illustrated in Fig. 1.1-11


We have adopted RASCI (Responsible, Approve, Support, Consult, and Inform) framework to capture key processes and the decision rights matrix. RASCI goes beyond conventional financial powers and looks at key business process decisions that have long term implications. RASCI helps to ensure that all key stakeholders whose involvement is necessary to ensure quality decision making, are mandatorily brought in during the decision making process. Keeping in line with RASCI, All important operational decisions are taken at the Business steering committee meetings. The biggest change which necessitated the revamping of the DOP was the reorganization of GMR into SBUs. The Energy DOP reflects the powers necessary to be given to the SBU heads for their smooth functioning, and provides for the following:

• Easyreferencedocumenttoensureproperandpromptexerciseofpower,thuseliminatingdelays

• Clarityinensuringrestraint/controlofunauthorizedexerciseofpowerwhereverfeltnecessary

• Addressingactual/perceivedinequalitiesinfinancialpowersforpeopleatsamelevels/gradeswithintheSector

• Aworkabledocumentgivingappropriatepowerstoemployeesatdifferentlevels

Internal Audit process has been revamped and aligned with SBU structure, with ownership of SBU heads for better controls and Compliance management. Stage Gate Audits through PWC were carried out for Hydro Projects to ensure our conformance to all necessary clearances and approvals at every Project stage gate for better control on time, cost, and quality. Besides this, Fraud Risk Assessment for EMCO, GKEL & CTPP has also been completed.

GMR Energy has complied with the requirements of Corporate Governance contained in the Company’s Act particularly those relating to composition of the Board, Constitution of committees such as Audit Committee, CSR Committee, Shareholders Transfer Committee, Nomination & Remuneration Committee (Committee scope revisited and enhanced based on the amendments in Companies Act-2013.) and Investor Grievance Committee.

• independence in internal and external audits

• protection of STaKEHOlDER and stockholder interests, as appropriate

The Board consists of a total of 10 directors, of which 6 are independent directors, which constitutes more than 50% of our Board of Directors. Of 4 non-independent directors, 3 are Executive Directors and 1 Director is nominee director of Investors. Fig. 1.2-1 illustrates GMR Energy Governance System and its impact on our Stakeholders.

Fig. 1.2-1 GMR Energy – Board & Governance System


areas Key approaches & Impact to Stakeholder c S cO E SH

Accountability for Management’s Actions

Management Actions / decisions placed before Board, Internal Audit Findings reported to Audit Committee, Audit Committee considers concerns raised in regard of COBCE – Whistle Blower Policy, Board & Committees are reported with ATR’s arising out from the last meeting/s and status, Key Incident Reports and Key litigations reported to Audit Committee, Board for review/discussion/decision

√ √ √ √ √

Fiscal Accountability

Internal & External Auditor checks, verifies and review the Accounts, Accounting Policies, Disclosures in financial statements and compliance to Accounting standards and Company Law √ √ √

Transparency in Operations

Formed various committees – Nomination & Remuneration Committee, Allotment Committee, Management Committee, Mechanisms to escalate / report concerns through COBCE, Whistle Blower, Ethic Helpline, Ethics & Integrity part of Agreements, Appointment Letters, Contracts, JVs, SO’s/PO’s, Review of Ethical Concerns and Closure-communication to concerned individuals, Disclosure of Management Approach and Key Results through Sustainability Framework – GRI G4 Framework

√ √ √ √ √

Selection of Governance Board Members and Disclosure policies for them

Independent directors elected in Board based on skills, expertise and relevant experience, Code of Conduct adopted by Board for adherence, Directors’ disclosure of their interest in Other firms/corporate bodies

√ √

Audit Independence & its effectiveness (Internal / External)

Process to appoint Statutory/External Auditor – Considered and recommended by Audit Committee and Board – Appointment by shareholders

Process to appoint Internal Auditor – Recommended by Audit Committee and appointed by Board

Defining of Scope of Internal Auditors, Internal Auditor performance assessment, Policy of Change of Audit Firms

√ √ √

Protection of Stakeholders & Shareholders

Disclosure of Quarterly / Half yearly / Annual Reports, Financials, MIS to Investors/Shareholders/Other Stakeholders, Closure status on Shareholders concerns raised √ √ √ √ √

Sustainability & Risk Management

Sustainability Initiatives, Sustainability Reporting, Sector ERM Framework, Bhavyatha Risk Management Processes, Stage Gate Audits, Fraud Risk Assessments, Risk Audits (Bajoli Holi, Power trading)

√ √ √ √ √

Succession Planning

Critical Roles Identification & Mapping, Recruitment, Job Rotation, Assigning Challenges roles, Leadership development Programs, ELPs, GHB Review and Appointment of Business Chairman √ √

Group Responsible : GIL Board, GHB, GCM, BCM, SBU Heads, Company Secretary

Our Intent : Comply with International/National/Local Laws & Regulations, Local Ordinances, Vision-Mission-Values & Beliefs, LT & ST Strategy Plan, Governance, Ethics-COBCE

c – customer, S – Supplier, cO – community, E – Employee, SH – Shareholder

1.2 a2 PERfORMaNcE EvalUaTION

How do you evaluate the PERfORMaNcE of your SENIOR lEaDERS, including the chief executive? How do you use these PERfORMaNcE evaluations in determining executive compensation? How do you evaluate the PERfORMaNcE of members of your GOvERNaNcE Board, as appropriate? How do SENIOR lEaDERS use these PERfORMaNcE reviews to advance their development and to improve both their personal leadership EffEcTIvENESS and that of your board and lEaDERSHIP SySTEM as appropriate?

Performance of Senior Leaders is evaluated by the Quarterly Business Reviews and achievement of the Business Objectives as per BSC. Senior Leadership team evaluates their effectiveness based on the feedback of various surveys

like Employee Engagement, GBEM assessments, MAG Audits, Customer Satisfaction, and other forums like Skip level meetings, Town hall meetings, etc. All these approaches give feedback which are then addressed through appropriate action plans and owners. Our Robust performance review mechanism including GHB, and GCM reviews, GEL Audit Committee; Board meetings also provide inputs for improving leadership effectiveness. Action taken reports are prepared for each review.

360 degree performance feedback approach for senior leaders has been deployed to help them get a clear feedback from subordinates, peers & Superiors to further evaluate their performance & enhance their effectiveness. Fig 1.2-2 shows the various approaches being used by leaders for their performance evaluation and performance improvement.


Fig. 1.2-2 Leadership System Effectiveness

Group Performance Advisory Council (GPAC) has identified six core processes the Group needs to excel viz.

a. Setup Corporate Governance Standards that ensure fairness, transparency, accountability and responsibility and reflect the Group’s Values and Beliefs

b. Develop and build talent pipeline to lead the organization and build the institution to deliver the Group’s 2020 aspiration

c. Win and develop new projects to expand the business in current and planned areas

d. Maintain and operate assets in a sustainable manner and as per world class standards

e. Sustain and improve relationship with stakeholders and build a strong and sustainable brand image for the Group

f. Incorporate Risk Analysis and Scenario Planning in investment and strategic decisions

These processes are assessed at Group level and are essential parameters used by GPAC [Group Performance Advisory Council] to determine Group performance which becomes one of the significant basis for determining the Executive compensation.

1.2 B lEGal aND ETHIcal BEHavIOR

1.2 B1 lEGal aND REGUlaTORy BEHavIOR

How do you address any adverse impacts on society of your products and operations? How do you anticipate public concerns with current and future products and operations? How do you prepare for these concerns in a proactive manner, including conserving natural resources and using EffEcTIvE supply chain management PROcESSES, as appropriate? What are your KEy compliance PROcESSES, MEaSURES, and GOalS for achieving and surpassing regulatory and legal requirements, as appropriate? What are your KEy PROcESSES, MEaSURES, and GOalS for addressing risks associated with your product & operations?

At GMR Energy, all statutory regulations and voluntary codes are adhered to with absolute diligence. Across all our units we implement a structured system to monitor, track, report, and ensure compliance to the regulatory norms. We also have adequate software and systems to monitor compliance. During the reporting period, there were no incidents of non-compliance and no monetary fines / penalties were imposed.

Our approaches to proactively address societal impacts including conserving natural resources during design stage and supply chain stages of the Project life cycle are detailed out in Fig. 1.2-3 These approaches support us to understand societal concerns and plan in a proactive manner. During the execution of operation, all the sites are assessed for Hazard/Risks under the EHS framework.

Fig. 1.2-3 Proactive approaches surpassing Legal & Statutory Requirements & Addressing Societal Impact

Project / Operations life cycle

Mechanisms to anticipate and address Societal Impact

Output Key compliance & Measures

Land Identification & Project viability check

- Ensure the land identified for the project meets siting criteria / guidelines of Statutory Agencies viz. MoEF, Railways, Highways etc.

- Due diligence studies to assess the project feasibility- Filters to study impact of Land development incl. Legal

Status

- Project Viability- Title Report, - Project : Go – No Go

- Compliance with Siting Guidelines by MoEF and other ministries

- No major litigation cases

Land Acquisition

- Govt. regulations, - Due Compensation, - Focus Group Discussions with local community, Gram

Panchayats etc

- Execution of Land Agreement- Compliance with Siting

Guidelines by MoEF, Land Acquisition Act 2013


Design & Project Construction

- Creating an ambient natural environment with green spaces and landscapes

- EHS Management at Design stage and Construction- Address societal Issues and concerns gathered from

sites and legal requirements

- Excellence in Environmental Health & Safety Management

- Optimization of Material and Energy Inputs for Construction

- Comply with all Statutory Regulations

- Safety Results (Fig. 7.3.24, Fig. 7.3.25, Fig. 7.3.26, Fig. 7.3.27, Fig. 7.3.28, Fig. 7.3.32, Fig. 7.3.33, Fig. 7.3.34)

Project Hand Over

- Statutory approval for Commissioning, - Awareness on Safety Systems and Energy

Conservation System- Interaction & Feedback from stakeholders such

as Community, and Regulatory Bodies for smooth commissioning and hand over

- NOC from Authorities, - Commissioning Certificate- Training to employees

- Comply with all Statutory Regulations

- Training Results (Fig. 7.3.1, Fig. 7.3.2, Fig. 7.3.3, Fig. 7.3.4, Fig. 7.3.5)

Operations Life Cycle

- Statutory Compliances- Climate Change Action plan- Adherence to Corporate Law and Board/Shareholders

relationship management

- Reduced Environmental Degradation,

- Compliance with Applicable Company Law

- Comply with all Statutory Regulations (Fig. 7.4.6 to Fig. 7.4.16)

Each Hazard/Risk has defined control system, which is frequently checked through Internal and External EHS Audits (Fig. 1.2-4).

Fig. 1.2-4 Process of Complying and surpassing Legal Requirements

Enterprise Risk Management has been established at GMR Group. Our Risk management team has mapped organizational risks under various categories of risks including EHS, legal & regulatory, Project Management etc. Risk profiling includes – Risk Identification, Quantification, Prioritization, & Risk mitigation plan with Risk Owners and Champions assigned against each risk. Controls and plans are in place to mitigate these risks. (Fig 1.2-5).

Fig. 1.2-5 Key Risks Identified for Sector & Mitigation Plan

Sr. No. Risks/Issues Mitigation Plans

1 Evacuation Infrastructure readiness

- Angul & MM Transmission line from GKEL - commissioning by August 2014- Ensuring corridor availability for DNH (200 MW) and TN 150 MW Ensuring corridor availability for CTPP

by March 2015- Ensure transmission corridor to Haryana and Bihar from GKEL

2 Case 1 Tariff Revisions & CERC Based Tariff determination

- Obtain tariff revision for Haryana, MSEDCL & DNH- Obtain tariff determination for GRIDCO

3 PPA management for untied power

- Pre-pone Bihar PPA to Sep. 2014- Participate in case-1 bids for untied power at GKEL and CTPP- Maximize merchant tariff realization through combination of Bilateral and day ahead contracts

4Fuel Availability and optimization (GCV & landed Cost) for profitable operation

- Materialization of FSA above the defined limit- Ensuring high GCV coal availability at plants - Ensuring MoU coal availability at CTPP by Sept. 2014


Sr. No. Risks/Issues Mitigation Plans

5 Interest Costs & Overrun funding- Complete bond issuance for EMCO- Overrun funding for CTPP by June 2014- Maximize WC limit

6 Restructuring - Complete SCB & Axis loan restructuring by Aug 2014- Complete GREL restructuring ( 80:20 basis)

7 BSL COD & GEMS CSA off take- Operationalization of CSA with GEMS by June 2014- Commence Belani mine development by June 2014- Coal trading as per target

8 Litigations- Resolve & realize the ongoing litigations:- Sec 11, DNH Deemed Fixed Charges, MSEDCL off take point, Entry Tax ( GKEL), DGFT claims, MAT

claims ( APT) , Interest on delayed payments ( TNEB) & VPGL Tariff revision petitions

9 Cost Optimization - Operating cost reduction ( Operational Excellence & Cost Audits)- Auxiliary power consumption & SHR reduction at EMCO & GKEL

10 Streamline and Stabilize SBU org structure

- Implement Hay Group recommendations- Ramp up in Hydro, O&M ( CTPP) & Finance

1.2 B2 ETHIcal BEHavIOR

How does your organization promote and ensure ETHIcal BEHavIOR in all your interactions? What are your KEy PROcESSES and MEaSURES or INDIcaTORS for enabling and monitoring ETHIcal BEHavIOR in your GOvERNaNcE structure, throughout your organization, and in interactions with cUSTOMERS, PaRTNERS, suppliers, and other STaKEHOlDERS? How do you monitor and respond to breaches of ETHIcal BEHavIOR?

GMR Group believes that for an organization to succeed, grow and excel, it needs to be anchored to its Values and Beliefs and motivate all its employees to consistently display these values in the course of their interactions. Our CoBCE, embodies the Group’s Values and Beliefs and endeavors to lay down guidelines for Employees/Suppliers/Partners of the Group to follow to in their day to day work life.

Fig. 1.2-6 illustrates GMR Management of Business Ethics. CoBCE is intended to provide guidelines for the Professional, Ethical, Legal and Socially Responsible behavior that the Group expects from its employees. All employees on regular rolls of the Company including Full Time Directors, Advisors, External Consultants, Expatriates and employees on contract are governed by this Policy.

As explained in 1.1 A2, CoBCE has been further reinforced by various policies like Whistle Blower policy, Sexual Harassment policy. All employees need to read and imbibe the CoBCE and follow it in letter and spirit, so as to maintain the highest standards of values in their conduct to achieve organizational objectives. Actions have been taken to ensure that each employee has read and accepted the GMR’s CoBCE through the e-enabled system. Approaches like Ethics Helpline; Location Ethics Counselors provides a secure forum for employees/vendors/suppliers to report Ethical Concerns.

Fig. 1.2-6 Management of Business Ethics


During the meetings with various stakeholders, endeavor is made to make them aware of the expected ethical behavior. Periodic communication & e-acceptance is sought from employees to reinforce ethical behavior. New recruits & employees are given communication & mandatory training on CoBCE through Induction & e-enabled module. Clause on Compliance to CoBCE is included in all Agreements/Service Orders/Purchase Orders executed with Customers/Vendors/Partners as appropriate. All processes of stakeholder transactions are audited.

1.2 c SOcIETal RESPONSIBIlITIES aND SUPPORT Of KEy cOMMUNITIES

1.2 c1 SOcIETal WEll-BEING How do you consider societal well-being and benefit as part of your strategy and daily operations? How do you consider the well-being of environmental, social, and economic systems?

Societal well-being is clearly and unambiguously conveyed as our key business priority in our Vision, Mission and Values & Beliefs.

Our sustainability journey is a critical part of our readiness for the future. This growth requires a structural shift in the manner in which we conduct our business and review all aspects of our performance – strategies, risks, operational efficiencies, EHS benchmarks, and employee wellbeing and community relations. We are working on several fronts to create the platform to meet this challenge and along with it create a sustainable growth.

Sustainable farming based greenbelt development, Sustainability Surveillance under E-governance as per GRI – G4, etc. are few such futuristic initiatives. To reinforce our commitment towards sustainability, we have taken specific targets in achieving resource efficiency, conservation of natural resources, reduction in carbon emissions, etc. in FY 2014-15.

The next big step forward is to enunciate, roll out and institutionalize our process of excellence within the overall Sustainability framework. It includes leveraging the strategic planning process, mapping our environmental and social impacts and defining the way forward in all areas of sustainable growth.

Fig. 1.2-7 CS Approaches & Initiatives

area contribution Means fy12 fy13 fy14 Measures

Environmental Wellbeing

Sustainability Measures such as CDM Registration of Projects, Carbon Footprint, Energy Sector EHS Framework

- Commenced Environmental Performance Monitoring

- Green Belt Development at G&L Assets

- Energy Sector Carbon Footprint Assessment

- Environment Performance Monitoring at Projects, Assets, Green belt development and Carbon Footprint

- Corporate Environment Audit

- Compliance Review- Sustainability Report

(Pre-work) - Energy Sector EHS

Framework- Wildlife Conservation plan of

GIB in EMCO

Fig. 7.4.6, Fig. 7.4.7, Fig. 7.4.8, Fig. 7.4.9, Fig. 7.4.10, Fig. 7.4.11, Fig. 7.4.12, Fig. 7.4.13, Fig. 7.4.16

Societal Wellbeing

Thrust areas of GMRVF1. Education2. Health, Hygiene &

Sanitation3. Community Development4. Livelihood

Education:

1. Set up of DAV English medium school (CBSE) at GKEL

2. Partnered with 70 Govt. School, 66 Govt. Anganwadis, and set up 10 Balvadis (Pre-school) reaching out to a total of 17000 school children

3. Besides 22 training programs to 350 teachers, 47 vidya volunteers are also provided to Govt School to ensure quality education to 8000 children

4. 700 Govt school children covered under Kidsmart Centers (Early learning centers) at Seven project locations for technology aided quality education

5. Life skills training program initiated at 10 Govt. School reaching out to 6000 school children

6. Set up 22 ‘After school’ learning centers across energy projects, providing Academic support to 1000 School children

7. Trained 222 school children for competitive examinations across 8 coaching centers

The Sustainability team headed by Head – S&D formulates the Sustainability Strategies and reviews its progress. Fig. 1.2-7 illustrates our CS Approaches on wellbeing of Environmental, Social & Economic Systems. In FY14, Focus on CSR has been strengthened by embarking on Triple bottom line initiatives and reporting under GRI G4 Framework. A 3 year Sustainability Road map (Fig. 1.2-8) has been

formulated and is under deployment. Selected employees have been

trained on GRI Certified – “Sustainability Reporting” training courses,

and training sessions have been organized to impart wide spread

awareness amongst EHS Team (Corporate & Site), Corporate ERM,

Internal Audit (MAG) and other Sectors (SEZ & GMR EPC Team).


Societal Wellbeing

Thrust areas of GMRVF1. Education2. Health, Hygiene &

Sanitation3. Community Development4. Livelihood

Health care 1. Full-fledged – well equipped hospital set up at GKEL (Vivekananda Hospital)

available round the clock to both local community and employees2. 23 medical clinics operational reaching to over 25000 people per year3. Mobile medical units served to over 4400 elderly people on a regular basis4. 2 ambulanced catered to 32 emergencies5. 83 Health awareness programs organized across locations reaching to over

10000 people6. Medical care, clinical investigations & Food and medicinal support being

extended to 56 sickle cell anaemic affected children, 127 malnourished children & 10 HIV / AIDS affected children near CTPP Project

7. 8 nutrition centers are run to provide supplementary nutrition, pre-natal & post-natal care for pregnant and lactating women

livelihood1. 50 youth from energy locations have been sponsored to different vocational

trainings at GMRVF Vocational training centers (Hyderabad & Delhi)2. Community based vocational centers have been set up at Chhattisgarh and

EMCO (Warora) project sites providing training to over 277 youth in the areas of Electrical, Two-wheeler repairing, Mobile Repairing etc

3. 300 Self-help groups have been promoted by Foundation and the members of these groups are encouraged to take up different income generation activities

4. Under “EMPOWER” initiative of GMRVF, women are provided with different skill trainings and the products made by them are marketed.

5. Rural families are supported with several farm and non-farm livelihood interventions to enhance their income

Fig. 7.4.3-5-6

Economic Wellbeing

Increased Power Generation leading to higher electrification, Uninterrupted power Supply to Industries, Consumers

- Sustained Power Generation from G&L Assets

- Commissioning of Solar and Wind power projects

- Commissioning of all Units of EMCO & GKEL

- CoD of Maru Transmission- Skill assessment of Land

losers and mapping with Unskilled/Semiskilled/Skilled Jobs

Fig. 7.1.1, Fig. 7.1.3, Fig. 7.1.15, Fig. 7.1.17

Fig. 1.2-8 GMR Energy Sustainability Initiatives Roadmap (GRI G4)


1.2 c2 cOMMUNITy SUPPORT

How does your organization actively support and strengthen your KEy communities? What are your KEy communities? How do you identify these communities and determine areas for organizational involvement, including areas related to your cORE cOMPETENcIES? How do your SENIOR lEaDERS, in concert with your WORKfORcE, contribute to improving these communities?

The Company’s definition of CSR stems from the ‘Vision’ itself, which states “GMR Group will be institution in perpetuity that will build entrepreneurial organization, making a difference to society through creation of value.” Thus making a difference to society has been made an integral part of the Group’s vision implying that all businesses have to keep this societal goal as part of doing the business itself. The concept of ‘shared value’ is inherent in the goal of ‘creation of value’ in which the whole society benefits, rather than just aiming for profit maximization.

‘Social responsibility’ is one of the core values adopted by GMR Group and it is to be practiced in all businesses and by all employees of the company. All employees are oriented towards living up the 7 values and beliefs including social responsibility. Thus it is very much a part of DNA of the Group companies.

Furthermore, to actualize its CSR professionally, the Group set up the GMR Varalakshmi Foundation in 2003. The Vision statement for the Foundation reads as “To make sustainable impact on the human development of under-served communities through initiatives in Education; Health and livelihoods.”

The Foundation has the mandate to work with the under-served

sections of communities around the areas of business operations. Thus, the key communities for GMR Group’s CSR activities are the communities affected by the business operations of the Group. The Foundation conducts need assessment studies in the project locations and accordingly prepares long-term and Annual Operating Plans for each location. These plans are implemented so as to create maximum impact of social investments made by the Group. Fig. 1.2-9 illustrates GMR Corporate Social Responsibility Project Planning. Regular feedbacks from community, GCM Review of CSR Projects, and inputs from Govt. Agencies/NGOs are used to improvise on CSR Initiatives and Deployment.

Fig. 1.2-9 GMRVF Project Planning


Fig. 1.2-10 GMRVF Key Initiatives across GMR Energy Sites

Sr. No.

Site

Key Initiatives Undertaken

EducationHealth, Hygiene &

Sanitationcommunity

Developmentlivelihood

1 EMCO (Warora)

1. After School Learning Centers (3)

2. NAVODAYA Coaching (3)3. Kid Smart Centre (1)4. E-Learning and Education

Centre (4)5. Pratibha Centre (1)6. Govt School Support (6

Schools)7. Transportation Facilities8. TOMS shoes Distribution

1. Health Clinics (6)2. Nutrition Centers (6)3. Mobile Medical Unit (1)4. Special Health Camps5. Individual Toilets6. Health Awareness Programs

1. Community Libraries (6)

2. Gym (4)3. Celebration of

Special Events and Awareness Sessions for communities

1. Vocational Training to Youths at CEL-H

2. Vocational Training Centre - Warora

3. Tailoring Centre (3)4. Income Generation Activities

(13 Types)5. Self Help Groups (76 groups)6. Agriculture Improvement

Programs (65 Demonstration)

2 GKEL (Kamalanga)

1. Support to govt. schools (10)2. Support to govt. Anganwadis

(16)3. Running tuition centers (2)4. Running Kid Smart centers

(2)5. Providing educational

scholarships

1. Regular health camps for women and children

2. Regular health camps for elders

3. Regular adolescent health camps and school health check-ups

1. Community libraries (4)

2. Strengthening cultural groups and institutions

3. Support to youth groups for sports and cultural activities

4. Celebration of designated days

1. Promotion of cash crop cultivation, vegetable production, mushroom cultivation, fish farming, goat farming, poultry etc. among 700 families

2. Sponsoring youth for vocational trainings

3. Tailoring training for women

3CTPP (Chhattisgarh Project)

1. Scholarships for needy students

2. Navodaya coaching support3. Running 2 Kid Smart centers4. Provision transport facility for

college going girls5. Support to 6 Govt. schools

and Anganwadis

1. Running 6 dispensaries in partnership with Mission Hospital, Tilda

2. Running an ambulance3. Providing care and

support to sickle cell and malnourished children

4. Support to establishment of X-Ray unit at Govt. Hospital

5. Set up Blood Bank at Mission Hospital with support from CTPP

6. Weekly health awareness programs

1. Constructed community halls in two villages

2. Renovated one pond and constructed 4 Nirmal Ghats

1. Provided vocational training to over 300 youth in 3 channels

2. Promoted federation of women SHGs and facilitated Cash Credit Limit to 3 SHGs

3. Agricultural equipment bank4. Trainings on improved

agricultural practices for farmers

5. Tailoring training for women6. Supported 100 families for

income generation activities

4 GPCL (Chennai)Supporting 10 Govt schools and 12 Anganwadi in improving the quality of education

Health camps and health awareness for children, women and community

- -

5 GVPGL / GREL (Rajahmundry)

1. Education support to 842 children from 8 Govt. schools across 5 villages with several educational initiatives

2. 92 children are reached out through 4 Bala Badis in 3 villages Provided

3. Education support to 113 HIV infected and affected children

4. Distributed TOMS Shoes among 840 children

5. Running 3 school gardens and 6 reading rooms benefiting 460 children

6. Kid Smart Early Learning Center set up at one Govt. school helping 120 children to learn better

7. Distributed specially designed workbooks to 650 children

1. Supported 28 HIV infected children with regular nutrition and counseling services

2. Provided door step health care services to 830 senior citizens

3. Oriented 600 women on Reproductive and Child Health care issues

4. 1300 people from Vemagiri village benefited from the Suvidha Pubic Toilet

5. Supported 75 pregnant and lactating women with regular nutrition supplements and health awareness through 2 Nutrition Centers

1. 1800 readers visited 2 Community Libraries set up at Vemagiri and Kadiyapulanka villages

2. GMRVF assisted 24 fire victim families from 4 villages

-


Sr. No.

Site



Sanitationcommunity


6 GEL (Kakinada)

1. On-going support to Govt. Schools and students for improvement of education quality

2. Provided educational support to 64 HIV orphans/semi-orphans

3. Supported about 670 students with notebooks sponsored by colleagues of GEL, Kakinada

4. Established balvadi’s and on-going Support to pre-school education

1. Running free health clinic 2. Conducted medical camps 3. Supplementary nutrition food

support to 10 HIV infected children

4. Facilitated cataract surgeries for 28 people from 2 fisher folk villages

1. Support to 132 fire victim families

2. Computer Based Functional Literacy Program

-

7 GEL (Mangalore)

Supporting 3Govt schools and 6 Anganwadi in improving the quality of education- 2000children

Health camps and health awareness for community -9 villages - 5000 /Health Insurance for community member-346 members

Youth and Children’s club- 235 members

52 SHGS 542 members and 192 micro enterprises

8 SJKPL (Shahdol)

Pre School Education - AWs, Tuition Centers, Creative Events, Summer Camp, Library & Infrastructure Support

Medical Clinic, General & Specialized Health Camps, Health awareness for Women & children, School Health Check-up, Adolescent Girls Awareness

Hand Pump Repair, Repair of Health Sub Center, Promotion of village level institutions

Self Help Groups, Bank & NRLM Linkage, Agri Development Trainings, Crop Demonstrations, Livelihoods in Poultry & Patchwork, Nabard Linkages for Farmers Clubs, Sponsoring of village youth

9 GBEL (Tikamgarh)

1. ASLCs (3)2. NAVODAYA Coaching (3)3. Govt School Support (6

Schools)4. TOMS shoes Distribution

1. Health Clinics (3)2. Health Awareness Programs

1. Community Libraries (3 )

2. Gym (2)3. Celebration of

Special Events and Awareness Sessions for communities

1. Tailoring Centre (2)2. Income Generation Activities

(3 Types)3. Self Help Groups (26 groups)4. Agriculture Improvement

Programs (35 Farmers)

10 Bajoli Holi (Hydro)

1. 6 CCCs in Govt. Schools2. Community Library &

Community Resource Centre

3. ITI Coaching 4. Navoday Coaching Classes5. Early learning Centre /Kid

smart Centre(ELC/KSC)6. TLM support to GSS School

Holi and GPS holi7. Utensils support to all

School8. Govt. Primary and Middle

schools9. Iron Kitchen Shed 10. Installation of 2 smokeless

Chulah in GSSS Holi11. TLMs and Material support

to AWCs12. 2 Dental Health & Hygiene

camp13. 3 special days celebration

1. support 1 x-Ray Unit2. 1 ECG Machine Unit to

CHC3. Medicine Support to CHC

Holi4. Support in 2 round pulse

polio campaign5. Maternity and Child health

Centre in Deol6. Physiotherapy and 3

General Health Camp in Deol, Bajol and Holi

7. Outreach Medical Service8. 3 Emergency Medical

Support9. 1 eye camp at CHC Jabbal

1. Road Safety Signage

2. Disability Certification of 23 disable persons

3. 5 Solar light Units at Nayagram and Bajoli

4. Public Toilet Repaired in Holi

5. 2 Horticulture Training for farmers

6. Stakeholders Management Committee

1. 3 Sewing Schools in Holi, Deol and Nayagram

2. Craft center Holi (knitting, decoration, weaving)

3. 2 Green House support to promote Agri Business (off season)

4. 2 Value Addition Training Nayagram and Deol

5. 1 women and 2 youths provided material support to start their own business from Holi and Kuleth

6. Construction of concrete way for Mahila Mandal Deol

7. Tent House Support to Mahila Mandal Bantooh benefited 25 women

8. Sports Kit to 4 youth group9. Support to 2 cultural group


Sr. No.

Site



Sanitationcommunity


11 Alaknanda (Hydro)

1. After School Learning Centers (ASLCs)

2. Community Library 3. Computer Centre4. Transportation Facility

(School Bus)5. Navodaya School Entrance

Tuition Classes6. Special Days Celebrations 7. Need Based Support to

the Govt. Schools and Aganwadies

8. Creative Activities and Interschool Competitions

1. Medical Clinic2. Ambulance3. Outreach Health Services4. Special Health Camps5. Awareness cum training

programs on various issues like “Reproductive Child Health Care”

1. Small Infrastructural Support to the community

2. Need based support to the community

1. Vocational Training to Unemployed Youth

2. Financial Support for Sports activities

3. Financial support to promote self-enterprises

4. Marketing and Technical support to Women “SHGs”

5. Training Programs and IGAs for Women “SHGs”

12 Talong (Hydro)

1. 4 Balwadis (Pre-schools education) with regular creativity development activities and nutritional support

2. Support to hostellers in Attarao Middle School

1. Qualified Nurse was appointed on part time basis for providing basic health care services in 9 project affected villages

- -

13 Upper Marsyangdi – Nepal

1. Support teacher in 3 Government schools

2. Other activities like competitions etc. to ensure quality education

1. 2 health volunteer (ANM) in Tal & Ghermu health post

2. Free medical counseling3. ANC check up service4. Providing essential Medicine

every 6 months

1. Distributed 40 good quality mats to 3 SHGs from Tallo Chipla, Uppalo Chipla and Jitai Jagat villages

2. Supported youth club of Upper Tagring Lamjung with sport material to conduct football tournament

1. Supproted Amma Samuh in establishing Rice Mill at Mipra village

2. Organized 2 days training on Elaichi farming and vegetable cultivation for 32 villagers from Tagring and Ghermu VDCs

3. Supported a Fire victim family in Lili Lamjung with Relief material

14 Upper Karnali – Nepal

1. 2 Balbadis are running in the project area

2. Infrastructure support to 15 Government schools

1. Running government approved health post in village Ramaghad

2. Trained male and female health staff for health check-up

3. Free medicine to the villagers

4. Organized various health camps like immunization

-

1. Mobilized and selected 20 youth from the project villages for vocational training at GMR Varalakshmi Centre for Empowerment and Livelihoods at Delhi

2. Provided agriculture support and veterinary support like distribution of pesticides and treatment to animals etc. benefiting 56 farmers

3. Conducted an intensive agriculture mapping drive in project to understand farmers’ challenges and problems towards farming of various crops

15 Corporate - Bangalore

1. Running 15 tent schools for migrant labor children

2. Running After School Learning Centers

1. Regular health camps in migrant labor settlements

2. Regular health awareness programs

- 1. Running one vocational training center

16 Corporate - Delhi

1. Supporting 2 Govt. schools2. Running 2 Bala Badis3. Running Bridge course for

dropout girls4. Running After School

Learning Centre

1. Running one regular medical clinic and one weekly gynecological clinic

2. Conducting regular health awareness programs

1. Running Children Creativity Centers

1. Running one vocational training center

2. Running one tailoring training-cum-production center

3. Managing EMPOWER Shop at Delhi Airport to market the products made by women SHGs


Other Relief Works Taken up Through foundation comparative analysis of results of Class I children in two Govt. schools at Chhattisgarh clearly indicates that the Kid Smart children are performing better in academics when compared to other children in normal school.

class I Raikheda School equipped with Kid Smart centre

class I Bhatapara School

Name of the student %Name of the

student%

Kajal Verma 88% Draupati 73%

Yashvi 86% Saraswati 62%

Ayush 78% Chiranjiv 61%

Khilesh 77% Dev 56%

Rohan Kumar 76% Dhaneshwari 56%

Suraj Verma 76% Tukeshwar 56%

Deepak Verma 74% Murari 47%

Karan Dheevar 68% Gokul 43%

Hema Verma 72% Urvashi 43%

Karanraj Verma 66% Tilak 46%

Thalendar 66% Jageshvari 37%

Umeshwari Verma 68% Ashok 37%

Khushbu 65% Durga 36%

Devendar 66% Khilendra 38%

Pooka Bharti sen 71% Sumit 35%

Ravi Kumar 33%

case Study 2-Supplementing Govt. Health care Services

The Community Health Center (CHC), Holi in Himachal Pradesh, is the only health facility in the sub-tehsil Holi and on an average 45 patients per day avail health services here. GMRVF undertook a survey of the facilities (both physical and manpower) at CHC, Holi in 2012. During this, lack of X-Ray machine and radiographer were identified as deficiencies which critically affect the quality of medical services in the Holi sub-tehsil. People have no option but to visit Chamba, District Headquarter, which is about 72 km from Holi and normally takes 4 hours bus ride, for X-ray and ECG services. The worst part is that there are only two buses from Holi to go to Chamba. Additionally it is difficult to return on the same day. On the basis of this requirement, GMRVF

• GMRVF team with the support of the local GMR Hydro Team and Local Administration had initiated some relief works in the Project Affected Areas of Lambagarh and Benakuli. As a part of this, the local Hydro and GMRFVF team air-dropped 100 packets of relief material (each packet containing Pulses; Potato; 5 kg of flour; Match Box; Candles; Milk, Biscuits and medicines like ORS etc.) at Lambagarh and Benakuli on 18th June 2013. These 2 panchayats were worst affected along with Pandukeshwar in the Project Affected Area of AHEP.

• The GMRVF team carried out initial assessment and rapid needs assessment in the affected area to plan for relief and rehabilitation programs.

• Rented Space, furniture, logistic support and human resource were provided to resume the classes of the damaged schools in the area.

• Medical support was extended to the disaster affected community at the time of urgent need.

• “Facilitation Centre” was set up at Foundation office from where necessary information, application drafting facility, storage and transportation services were extended to the disaster affected families/ communities.

• Financial support worth Rs 1.2 lakhs leveraged from like-minded social organizations and financial assistance was given to 44 BPL students of the area.

• GMRVF as a member of “Chamoli District Disaster Coordination Committee” worked pro-actively to strengthen rehabilitation initiatives of various agencies working in the district.

case studies developed and awards received by GMRvf on cD initiatives

case Study 1- Educational Innovation - Kid Smart Early learning centres

With an objective of creating an exciting learning environment through computer-based learning, activities and reading for children of age group 3 to 9 years GMRVF with IBM initiated nine GMR-IBM Kidsmart Centres or Early Learning Centres (ELC) at seven project locations.

These ELCs target children from Govt. Schools who have been deprived of technology aided quality education. Each ELC has three corners -Technology corner, Craft corner and Reading corner with specific activities designed for each corner. These corners give the child a chance to explore and learn things in a more fun way. Over 700 children are benefiting from these centres which helped in increasing children’s interest in studies and in improving their academic performance. A


with the support of GMR Bajoli- Holi Hydro Electric Project had donated one X-Ray and ECG machine to the CHC. The Foundation also had appointed a radiographer to operate the machine. The X-Ray and ECG machine have come to the community as a big relief as there was no such facility in the near vicinity.

Since April 2012 over a period of 2 years, total 434 people have been benefitted from these facilities (X-ray and ECG) at CHC Holi. Foundation made an attempt to convert the value of services provided through these facilities into monetary terms considering the costs of transportation for patients and attendants, charges for availing the services and miscellaneous expenses like food etc.

From this, it is estimated that the community has saved Rs 14 lakhs which otherwise would have spent on above mentioned items. If the income foregone for 2 days is also considered, this saved amount would be to an extent of Rs. 16.50 lakhs. If the pain and drudgery of 8 hours of bus ride for the patients is further added to this, the benefits of these facilities created by GMRVF are unimaginable. Not to add that many of them would not have had gone to Chamba and would have suffered and worsen up.

case Study 3-Securing future!

“Having multiple income generation activities not only increased our family income, but also reduced the risks associated with a single livelihood. Now we are earning more, and are more secure about our future” says Bholeswar. Bholeswar Bhoi, is a small holder farmer from ST community, from Barasahi village near Kamalanga in Odisha. His family of 12 includes his three sons, one daughter, daughter-in-laws and grandchildren. He owns two and half acres of land of which he sold a small part to GKEL for setting up its power plant. Bholeswar and his three sons worked on the farm. Bholeswar was struggling to manage the entire family and to support the college education of his daughter, Loli, who is the only member from his family who has gone for higher education.

GMRVF trained Bholeswar in improved agricultural practices and also supported him to take up groundnut cultivation, backyard poultry and fish farming activities. Two of his sons work at power plant site as unskilled labour. The third son was supported to take training in mobile repairing at Cuttack and also for setting up a mobile repairing shop. With increased income sources, Bholeswar’s family conditions improved. They have constructed two additional rooms in their house and are able to support Loli’s education.

Bholeswar’s family is one of the several families benefited by the livelihoods program implemented under Corporate Social Responsibility of GKEL in Dhenkanal district of Odisha.

GMRVF which is the CSR arm of the GMR Group has been given the

lead role in fulfilling the social commitments of GKEL through initiating participatory community development programs to ensure quality of life of people living near GKEL. Among various social initiatives that GMRVF has taken up, the project that has been implemented to create livelihood opportunities for the project affected people has perceptible impact and contributed significantly for the human development of under-served communities.

Traditionally most of the people in the periphery communities were involved in agriculture and allied activities for their livelihoods. But since last few years there have been a number of changes in their way of living and thinking due to massive industrialization process undertaken in Dhenkanal - Angul industrial corridor. Some of the major relevant issues are: (1) Several farmers are moving away from agriculture after small and big industries came up in this area. They are more interested to work as unskilled labourers in the industries rather than working as farmers –the vocation they are good at. (2) The local youth legitimately have hopes of skilled work in industry, though they often lack skills and competence. (3) Often, marginalized sections of the society such as SC, ST, OBC and women are not able to adequately participate in initiatives.

As a result they oppose industrialization process and the overall situation becomes volatile and doesn’t remain conducive for business to settle down and grow. Moreover protection of environment becomes sole responsibility of the industries without any community participation or ownership. In order to address the above mentioned issues, a comprehensive livelihood program was designed and implemented for 700 land loser families in GKEL periphery communities which not only created employment opportunities for the land loser families and unemployed youths, but also created a green belt in the communities.

As part of the livelihood program, improved agriculture practices were introduced for better productivity and return. To make the agriculture more economically remunerative, different crops was promoted. Farmers belonging to SC and ST communities were provided with training and inputs (seeds, fertilizers and agriculture equipment) to undertake groundnut, maize, paddy and vegetable cultivation. Technical support was mobilized from the government departments to ensure better result. Likewise backyard plantation of papaya and teak was promoted. Papaya and teak plantation is known for great profitability. These plants require less maintenance than the other horticulture plants. Training and support was provided to women members of the families to start mushroom production ventures. Similarly allied activities such as goat farming, backyard poultry, duckery and fish farming were promoted which increased their family income.

Vocational training has been provided to 261 unemployed youths and


women from land loser families on basic computer, electrician, mobile repairing, and tailoring and basic beautician course. Nearly 90 % of these unemployed youths and women belong to the SC, ST and OBC communities. Where ever possible, trained youth were engaged in the construction work at the GKEL project site; otherwise support was provided to the candidates to explore self- employment opportunities. Trained youth are self-employed as mobile mechanic, tailors and

beauticians. The tailoring center women are engaged in production of garments and selling their products in the local market. The Foundation extended hand-holding support to them to ensure that they are able to build on their training.

Livelihood project has created shared value for both the community stakeholders and GKEL. The details of livelihoods programs are given below.

faMIlIES aSSISTED UNDER lIvElIHOOD PROJEcT

Sl. No Name of livelihood activityNo of families assisted

Sc ST OBc General Total

1 Fish Farming 9 13 43 0 65

2 Goat Farming 17 18 54 1 90

3 Backyard Duckery 0 7 18 0 25

4 Backyard Poultry 111 106 181 22 420

5 Vegetable Cultivation 209 15 324 22 570

6 Cash Crop (Groundnut & Maize cultivation) 15 65 74 0 154

7 Backyard Plantation ( Papaya & Teak) 200 14 413 0 627

8 Mushroom cultivation 56 20 230 10 316

9 Vocational Training for unemployed youth 8 13 46 0 67

10 Tailoring Training for women 56 16 125 2 199

Total Number of families supported 2533

The family income of the most marginalized section of the society has increased @ Rs 7000/- per family for about 500 families within a period of 6-12 months from farm based activities. The agricultural land which was lying fallow was utilized again, the community assets like ponds generated income for the whole village. The women groups initiated collective ventures which developed trust and connectedness in the communities. The backyard plantation program contributed for a healthy environment in the locality which is a major concern in the periphery communities of any power project. All these changes have also generated goodwill for GKEL. The community did not create hindrances in the construction work at the GKEL project site. Overall the livelihood project played important role in integrating business with community by developing human and natural capital among the most marginalized section of the population.

aWaRDS aND REcOGNITIONSBest CSR Practice Award: GMR Kamalanga Energy Ltd. emerged as winner of Best CSR Practice Award-2014 for undertaking exemplary livelihood initiatives for the communities neighbouring GKEL. This is an Odisha level event being organized by New Delhi based media group Think Media Inc. in collaboration with Indiacsr, ILFS and Global Hunt.

GMR Chhattisgarh Energy Ltd. received an Award for BEST CSR PRACTICE from Think Media Inc. (a National level venture established with an objective of sharing inspirational news across the society). The entry titled ‘Village Development Centre (VDC): A One in All Package for CSR’ has been selected for the award based on the significance of the issues addressed, scale of impact, people’s participation, innovativeness, etc. Village Development Centre is a single-window

service delivery point set up by Foundation at Raikheda village from which several of Foundation run programs such as Kid Smart Centre, Tailoring Centre, Community Library etc. are being operated.


GMR Varalakshmi Foundation received “Appreciation Award for excellent work in UK Disaster relief by the CM, Uttarakhand” for the disaster relief and rehabilitation works carried out at the disaster affected area. The relief works carried out by GMR Group at Uttarakhand are as follows:

On 16th - 17th June 13, disaster in the form of cloud burst and flash floods hit the state of Uttarakhand. GMRVF’s school Bus, another bus and ambulance were lost in this disaster. Many Govt. school buildings were damaged in the area due to the disaster. Within our project area at Badrinath, 229 Families lost either their house/land/other assets. More than 20000 pilgrims were stuck at several places in our project area and were evacuated by army and local administration through air service.

Staff of GMR Alaknanda Hydro Electric Project and GMR Varalakshmi Foundation (our CSR arm) rendered yeoman service in the immediate aftermath of all-round devastation and destruction in Uttarkhand in the wake of this disaster. GMR was among the first agencies to start

humanitarian response through food and medicines distribution in the area with the support of local district administration. Our Foundation team carried food, water and medicines to the villages and supplied them to the people stranded at different places. The team also assisted ITBP personnel in rescue operation.

Our GMR Aviation Team participated in the Rescue Operations at Uttarakhand to support people stranded at different places. Braving inclement weather and heavy odds, Aviation Team took the plunge and carried out rescue operations from 22nd June to 2nd July in the difficult terrains of Gaucher, Joshimath and Badrinath using 2 Bell Helicopters of GMR Aviation Ltd. The Helicopter team operated about 50 sorties and evacuated 210 personnel.

While the rescue phase focused on the tourists and pilgrims, now the long term process of rehabilitating the communities in affected villages has to start. To contribute to this enormous task before the Government, all GMR employees donated their one day salary amounting to Rs 90.34 lakhs and GMR Group made a matching donation of Rs 1 crore.


2.1 STRaTEGy DEvElOPMENTGMR Energy follows a structured Strategy Planning Process (Fig. 2.1-1) to develop its Strategic Plan. The process starts with a communication from CSPD during Nov-Dec culminating into GHB approved, AOP and three year rolling strategic plan by end of March every year. Until FY 14, development of Strategic Plan from start to end was being driven by SPG. FY 15 onwards, Respective SBUs have been fully empowered to develop SBU level Strategic Plan to ensure better accountability and harmonization of Plans. SPG continues to perform the Environment scan to provide high level inputs to all SBUs to enable them formulate their own Strategy, based on Group direction, and Strategic themes identified for the Sector.

2.1 a STRaTEGy DEvElOPMENT PROcESS

2. STRaTEGIc PlaNNING

2.1 a1 STRaTEGIc PlaNNING

How does your organization conduct its strategic planning? What are the KEy PROcESS steps? Who are the KEy participants? How does your PROcESS identify potential blind spots? How do you determine your cORE cOMPETENcIES, STRaTEGIc cHallENGES, and STRaTEGIc aDvaNTaGES (identified in your Organizational Profile)? What are your short- and longer-term planning time horizons? How are these time horizons set? How does your strategic planning PROcESS address these time horizons?

Our Strategic Planning process is based on the Annual Strategy Calendar, and is spearheaded by BCM along with SBU Heads that sets the direction for the organization (Fig. 2.1-1).

Fig. 2.1-1 Strategy Planning Process

Our Strategic themes viz. Profitability, Liquidity, Structure and Process have been identified as an outcome of extensive deliberations by Energy Leadership Team during the Strategy workshop for FY 14. GHB directions and Sector Strategic themes form the basis for

Strategy formulation and for preparing ST/LT plans and milestones.

GMR Energy considers 1 year as the short term planning cycle and 3

years as long term planning cycle as explained in Fig. 2.1-2.


Fig. 2.1-2 Planning Horizons

Planning Horizon

No. of years

Reason this was chosen How the SPP addresses the Time horizon

Short Term 1 Year

- Operations Focus & Milestones review of Projects- Earning commitment to stakeholders- known period for regulatory environment, also corresponds to

Budgeting timeline

- Sector, SBUs and Functional : Annual Operating Plans (Goals, Key Initiatives, Key Milestones, Targets, Measures Assigned)

- Financials - ST Capability & Capacity Plans

Long Term 3 Years- Typically Energy Project Cycle Time (Concept to commission)

varies around 3 years- Regulatory environment predictable but not fully known

- LT Opportunity Scan, Project Bid Winning, Long Term capacity & capability Plans,

- Financial Plan (Cash Flows, Fund Raising – Debt, Equity etc.)

SPG provides key inputs on regulatory & policy framework, Environment scan, Scenario Analysis, Comparative Analysis for development of BSCs at SBU level to ensure balance, alignment, and integration throughout the organization. Information is collected on an ongoing basis from various sources like regulatory forums, media, websites, seminars, studies, meetings etc., both internal and external. The Strategy team analyses this information to understand the market, competition, Customer and business environment and key impact of the same on GMR Energy in the short and long term.

Fig. 2.1-3 Identification of Strategic Advantages, Challenges and Blind Spots

The overall business environment analysis is then used by respective SBUs as an input for development of LT & ST Strategy for GMR Energy. The current core competencies of GMR Energy have been identified as 1) Stakeholder Relationship 2) Project Execution. Operational Excellence has been identified as future core Competency. For a Competency to be classified as Core Competency, the evaluation is done based on the following: 1) Value creation for Customers 2) Better than Competitor 3) Access to future revenue score 4) Best compared to other strategic levers in the organization 5) To the extent it supports Vision focus. Potential Blind spots i.e. Strategic issues- events or trends which have an uncertainty of occurrence and their consequent

impact on the relevant organizational performance are identified by interacting with consultants, industry experts, and participation in industry forums to understand multiple perspectives and develop mitigation and contingency plans accordingly (Fig. 2.1-3)

2.1 a2 STRaTEGy cONSIDERaTIONS

How do you ensure that strategic planning addresses the KEy factors listed below? How do you collect and analyze relevant data and information pertaining to these factors as part of your strategic planning PROcESS?


• your organization’s strengths, weaknesses, opportunities, and threats

• early indications of major shifts in technology, markets, products, cUSTOMER preferences, competition, the economy and the regulatory environment

• long-term organizational SUSTaINaBIlITy, including needed cORE cOMPETENcIES, and PROJEcTIONS of your future PERfORMaNcE and your competitors’ or comparable

organizations’ future PERfORMaNcE

• your ability to execute the strategic plan

The Strategic planning process in GMR Energy follows a structured process of data collection and analysis. The various inputs, method of collating the inputs, and the analysis carried out is explained in Fig. 2.1-4. The Strategic Planning process relies significantly on the data collected from various sources on the key factors (Fig. 2.1-1) which is analyzed and is an input to strategy formulation.

“Being in infrastructure industry, our mission is to create and deliver value to all of our key stake holders on a long term / on sustainable basis. In this mission, we believe that “Business excellence” is a proven frame work that will help us achieve our mission.”

Rv Sheshan President - Hydro & GKEL

Fig. 2.1-4 Data Collection and Analysis for SPP at the time of Environmental Scan

Ref. Key factorsSources of Data /

InformationData collection and

analysisforum

Usage of Information

Responsibility

A Group / Board Direction

Long Term Vision document – Sankalp 2020, Presentations made to GHB, GCM

Board, GHB, GCM DirectionsBoard Meetings, GHB Review, GCM Review, QBR

Direction setting for current and new businesses

GMR Energy Leadership Team, SBU Heads

B

Strength Weakness Opportunities Threats

Stakeholders’ inputs, Internal Performance, Market Inputs, Competition performance, Surveys outcomes, BE Assessment Feedback

SBU Analysis, Trend of Plan vs. achievements, Root Cause Analysis, Competitor Comparisons, Risk Analysis

SPP, SBU ReviewsStrategic Planning leading to Goal Setting, BSC, AOP

SPG, Functional Heads

C

Any early indications of major shifts in technology

Industry Reports, Sector Research data (Bloomberg, Infra Line) Contractors/Suppliers Inputs, Consultants Reports, Govt. Notifications, Seminars, Exhibitions

Engineering scans technology for appropriateness, CPD assesses contractors ability to utilize new technology, HR and O&M assesses Technical Competency gaps and TNI

ORMs, Thermal Newsletter circulation to all stakeholders

Decision on adopting new technology

SBU Heads, Business Development

D

Any early indications of major shifts in market

CERC Reports, CEA Publications, Infra-line data, Consultants & Analysts reports

Installed Power generation capacity, PLF, Peak Deficit, Non-Renewable vs. renewable share, State wise power Generation – Consumption analysis, Infrastructure development, Avg. Tariff, Short Term Trading trends

SBU reviews, Power Trading Reviews, KM Community Meets

Decision on Location of Power plant, PPA Terms & Conditions, Logistics needs

BD, SBU Heads, Head Power Trading, Logistics

E

Any early indications of major shifts in products, offerings & Customer Preferences

Customer Interaction, Customer Visits, Customer Complaints, Inputs from Relationship Managers

C Sat Analysis, Customer Complaints aggregation & Analysis, Inputs captured through scheduled & unscheduled interactions with Customers

SBU Reviews, Power Trading Reviews

Decision on Review and improve Customer offerings, PPA Terms & Conditions, Policy Advocacy

SBU Heads, PPA Management, Power trading

F

Any early indications of major shifts in Competition

Sector Reports, Publications and Subscribed reports (Bloomberg, Infra-line), Consultants Presentations

Competitor Analysis - Financial Results, Operations, Growth Strategies, Fuel Sourcing plans, Long Term / Short Term power tie up

SBU Reviews, SPG Reviews, Power Trading Reviews

Portfolio planning, Tariff Strategy, Bidding Strategy, Cost Optimization initiatives

SPG, SBU Heads, Power Trading


Ref. Key factorsSources of Data /

InformationData collection and

analysisforum

Usage of Information

Responsibility

G

Any early indications of major shifts in Regulatory Environment

Central & State Govt. Notifications, Legal Inputs, Consultants presentations

Changes in Regulatory requirements, Updates in policies, impact on GMR Energy

EHS Reviews, Secretarial & Legal Reviews, Finance Reviews

Compliance, Audits

Functional Heads, Secretarial, Legal, EHS, Finance

HLong Term Organizational Sustainability

Customer Feedback, Community Interactions, Risk Assessment, BE Assessment outcomes, Sustainability Reports of other organizations, Employee Engagement Surveys, CIPs

Assessment of Customer Centricity – C Sat and Action plans, EEEC Survey outcomes and Action plans, Diversity Assessment, Leadership Pipeline, L&D Plans, EHS Initiatives, Community Projects, Innovation, Culture of Continuous Improvement

GHB,GCM & BCM Reviews, SBU Head Reviews, HR Councils, GMRVF reviews, EHS Reviews, ERM Reviews, BE KM Council

Risk Mitigation, Community Initiatives, GRI Reports, Succession planning, Training Need Identification, EHS Framework and Initiatives, CIPs

SBU Heads

INeeded Core Competencies

Internal Competency Analysis, Competition analysis

Comparison of Process and Services

SPGCore Competencies and Strategic Planning

SPG, SBU Heads

JAbility to execute plans

GHB/GCM/BCM/SBU Head Reviews, Sector & SBU BSC’s achievement, Process & Risk Audits

Project Progress, O&M Reviews, Achievement of action plans, Audit outcomes

Half Year & Yearly GHB Reviews, SBU Reviews, MAG Audits, Quarterly GCM Review, BCM Review

Assessment of ATR’s, Corrective and preventive actions, Capability & Capacity building needs, TNIs, Infrastructure and other resource requirements

SBU Heads, Support Functions

Our Governance Board reviews strategic direction at the time of Annual Reviews. An illustration of the Board Directions and subsequent initiatives and their impact has been shown in Fig. 2.1-5. The E&I for Strategy Development process is given in Fig. 2.1-6.

Fig. 2.1-5 Board Direction for Strategy Development

year Board’s Direction Initiatives Taken Impact

Till FY12

Growth Focus, Diversification, Presence Across Energy Value ChainFocus on Fuel Security

- Acquisition and Development of new Thermal (Coal) Projects – EMCO, GKEL, CTPP

- Transmission Projects - Solar & Hydro Portfolio- Acquisition of South Africa, and Indonesia

Coal Mines, Interests in Domestic Coal mines - Rampia

- Increased installed generation capacity- Balanced assets portfolio- Secured fuel supply through Overseas and domestic coal sources

FY13 Focus on Consolidation, “Asset Light Asset Right” - Divestment & Asset Monetization

- Divestment in Island power- GREL Debt Restructuring- Divestment of SA coal mines

FY14

Sector Key Strategic Themes – “Liquidity, Profitability, Structure & Process”

- Energy Sector Restructuring- Continued Divestment focus, - Focus on Structure & Process

- Energy Sector restructured to 8 SBUs & Functions (Thermal Coal, G&L, Coal Assets, Hydro, GKEL, Corporate Functions, S&D & Finance) with P&L Accountability

- Review Architecture (McKinsey facilitated)- Divestment options for G&L Assets- Revisited and redeployed - RASCI & DoP- Bhavyatha Implementation through Hydro Power Project

Management Manual - Energy Sector EHS Framework- Risk Assessment of Power Trading & BH - Stage Gate audit (by PWC) of Bajoli Holi Hydro Project- Enterprise IT Outsourcing - Hay Group study: Job Evaluation & Job design


Fig. 2.1-6 E&I in Strategic Planning Process

year Trigger action Impact

Till FY12

Need to revisit GMR Energy Vision

Strengthen Strategy Deployment & Action Planning

Energy Sector Vision aligned to Group Aspirations – Sankalp 2020

Deployment of Strategy through BSC (Till CEO & CEO-1 level)

Sector Vision aligned with Group Direction

FY13 Need for incorporating key inputs from Individual Depts

Strategy Workshop conducted with all Dept. Heads presenting Dept. inputs for SPP (BD Inputs, Assets Inputs, HR Inputs, Fuel Resources Inputs)

Balance between Bottoms up, and Top down approach in SPP

FY14 Review and Strengthen Strategy Deployment in view of Organization restructuring to SBUs

Strategy Deployment across SBUs through BSC’s, PDM’s & A3 Sheets

Formulation of detailed action plans (PDM, A3) ensuring seamless cascade of SBU Heads SOs to their N-1 and people down the lineSBU alignment with Sector Objectives

2.1 B STRaTEGIc OBJEcTIvES

2.1 B1 KEy STRaTEGIc OBJEcTIvESWhat are your KEy STRaTEGIc OBJEcTIvES and your timetable for accomplishing them? What are your most important GOalS for these STRaTEGIc OBJEcTIvES?

Our key Strategic objectives, Action Plans and timelines to accomplish the same, along with the Performance measures are shown in the table below (Fig. 2.1-7)

Asset Light Asset Right strategy has been adopted by the Group to focus on

1. Cash Flow, Profitability, Liquidity

2. Continuous Performance Improvement

3. Having a line of fund to capture attractive opportunities

4. Becoming more responsive to market – Faster response and more proactive action

5. Releasing management bandwidth for more productive assets

We continuously develop and expand our business and portfolio of assets by capitalizing on opportunities to increase value to our shareholders. As part of our strategy, we selectively evaluate and consider opportunities for acquiring new units other assets that are complementary to our power business. We focus on areas where we see value enhancement opportunities. For example, we have acquired interests in coal mining assets in Indonesia in order to mitigate our fuel risk. We may also seek to divest, in whole or in part, our assets opportunistically to increase value to our shareholders in the future. For example, we divested our interest in the Eloff Mine and Kendal Mine in South Africa, both held by Homeland, on account of the lack of infrastructure to evacuate coal from South Africa to India, as a result of which, a majority of the coal produced from these mines was sold domestically in South Africa.

As part of our effort to diversify our asset base, we are pursuing a long-term growth objective of focusing on our hydro and renewable power projects. In particular, we have completed financial closure of Bajoli Holi Power Project, a 180 MW run-of-the-river power facility being constructed in the state of Himachal Pradesh and issued the notice to proceed. We are working on the financial closure of our Alaknanda Power Project, a 300 MW run-of-the-river power facility to be constructed in the state of Uttarakhand, and we have entered into a joint development agreement with the International Finance Corporation (the “IFC”) to develop the Upper Marsyangdi-2 Power Project, a 600 MW run-of-the-river power facility to be constructed in Nepal.


Fig. 2.1-7 Strategic Objectives, Action Plans, Timelines and Performance Measures

Sr.Strategic

ObjectivesStrategic action Plans Performance measures Unit Target : fy15 SBUs

1

Achieving Profitability/ Cost Optimization across Operating Plants

Improving Operational Efficiencies and reducing O & M Costs.

EBIDTA & PAT (Optg) Rs. Crs.

EMCO:555/(86)CTPP: 103/(321)Transmission:50/(1.5)GKEL : 636/(285)GEL KKD : 2/(47)VPGL: 13/(59)GPCL: 50/24 Power Trading : 10.37 (9.31)

Thermal (Coal), GKEL, Gas & Liquid, Strategy & Development

Free Cash Flow from Operations Rs. Crs.EMCO: 1661CTPP: 739Transmission:55

Thermal (Coal), GKEL, Gas & Liquid

Cash Flow improvement through Operational Excellence at Thermal Coal Assets

Timelines Mar 15 Strategy & Development

Delivered Coal Cost Rs. /KcalEMCO:0.77CTPP: 0.95GKEL: 0.59

Thermal (Coal), GKEL

Control Admin costs in Hydro SBU Rs. Crs. As planned Hydro

Achieving Production & Profitability for Coal Assets

PTBSL Production, EBIDTA & PAT MMT & USD M 0.41,19.18 & (0.55) Coal Assets

GEMS MTSA & Profitability Targets USD M 18 & 22.1 Coal Assets

Coal Trading Margins USD M 3 Coal Assets

2

Improve Liquidity through Financial/BD – Initiatives, and resolution of litigations

Manage Cash Flows through Receivables Management

Receivables Rs, Crs.

EMCO : One month outstanding revenueGKEL : 100 CrsGas & Liquid : 2 months of Revenue

Thermal (Coal), Gas & Liquid

Resolution of litigations pertaining to Sec 11, MAT Claim, VPGL loss recovery & Interest on TNEB dues

Rs. Crs. & Timelines

Sec 11 (67): Sep’14MAT (20) : Jul’14Loss Approval(447) : Mar’15Int. on TNEB Dues (163) : Sep’14

Gas & Liquid, Corporate Functions

Effective Management of Tariff Revision Petitions/Improve Deemed GenerationGeneration

Tariff Revision for Transmission Projects Rs. Crs. 25 Thermal (Coal)

EMCO Tariff Revision for MSEDCL & DNH Rs. Per KWH 0.19 for MSEDCL

0.04 for DNH Thermal (Coal)

Deemed Generation from DNH for FY 14 sales Rs. Crs. 67 Thermal (Coal)

Tariff determination & Revisions for GRIDCO & Case 1 PPA

Rs. Crs. & Rs. Per KWH 6387 & 0.15 GKEL


Sr.Strategic


2

Improve Liquidity through Financial/BD – Initiatives, and resolution of litigations

Overrun funding/ Loan Restructuring / Asset Relocation-Sale

Refinancing of EMCO Debt Timeline July 14 Thermal (Coal), F&A

CTPP Project Cost Overrun, Funding Plan Rs. Crs, D:E 2726/55:45 Thermal (Coal),

GKEL, F&A

Refinancing of Existing Term Loan for GKEL Timeline Mar 15 GKEL

Deferment of SEPCO payment for 2-3 yrs. for GKEL (1050 MW Contract)

Rs. Crs/Timeline 267 / Sept 14 GKEL

SCB Loan Restructuring for Coal Assets USD M 500 Coal Assets, F&A

GREL Restructuring based on 80:20 funding of FY15 interest Timelines July 14 Gas & Liquid, F&A

Sale of Mangalore land Rs. Crs / Timelines 100 / Dec 14 Gas & Liquid

Sale / Relocation of Barge, GPCL & GREL Timelines

Barge (USD 150 M) & GPCL: Dec 14GREL: Mar 15

Gas & Liquid, Corporate Functions

Filing DRHP & concluding GEL IPO GEL IPO Timelines/

RsCrs. Q4 FY15/1500 F&A

3

Completion of Projects within Budgeted Cost & Time

On time completion of Projects under development /Construction

CoD of 1st & 2nd Unit of CTPP TimelineUnit 1 - 1st Sept 14Unit 2 – 1st March 15

Thermal (Coal)

CoD of Angul & Meramandali Transmission lines Timeline 1st July 14 & 1st

Aug 14 GKEL

Control PTBSL Capex USD M 12.54 Coal Assets

Control Hydro Capex Rs. Crs. As planned Hydro

Project Progress for Bajoli Holi & Alaknanda Timelines Milestones as

planned Hydro

EC & Forest clearance for Talong Timelines Sept 14 & Dec 14 Hydro

Completion of PDA for both Nepal Projects Timelines Jun 14 & Aug 14 Hydro

4

Ensure Fuel Security

Pursue MOC/CIL to get MoU Coal and Linkage Coal at the earliest

Fuel Allocation for CTPP Timeline Sep-14 Thermal (Coal)

CERC/ERC approval for use of imported Coal for GKEL Timeline Sep-14 GKEL

Addressing Power Evacuation/Tariff/PPA related issues

Ensure PPA/Transmission Corridor for Power supply from CTPP

Secure PPA tie up for CTPP Timeline Unit 1 - Sept 14 Unit 2 – Oct 14

Thermal Coal, Corporate Functions

Approval of Spinning Reserve concept by GOI & positioning GPCL & GREL as part of this.

GPCL & GREL as spinning reserve Timeline Dec-14 Gas & Liquid

5

Triple Bottom Line focus/ Process Improvement / Project Execution Excellence

Building a Renewable portfolio GHB Approval for Business Plan Timeline Sep-14 Corporate Functions

Finalize Ash Disposal for Coal based Power Plants Ash Disposal % 100% Thermal Coal, GKEL

Compliance to EHS Practices No. of Fatalities/Serious incidents/LTI No. ZERO / <0.18

Thermal Coal, GKEL, Gas & Liquid, Coal Assets, Hydro

Compliance to Internal Audit Findings No. of Non Compliances No. ZERO

Strategy & Development, Thermal Coal, GKEL, Gas & Liquid, Coal Assets, Hydro

Implementation of Bhavyatha Framework in Hydro SBU

No. of processes No. As planned Hydro

Adherence to Stage Gate process for Alaknanda Timelines Jun-14 Hydro

Prepare & Publish Energy Sector Corporate Sustainability Report

Sustainability Report Timelines Sep-14 Strategy & Development


Sr.Strategic


5

Triple Bottom Line focus/ Process Improvement / Project Execution Excellence

BE Assessment & Implementation of FY15 Action Plan

BE Assessment Timelines Oct 14 / Marc 14 Strategy & Development

Sustainable Farming based Green Belt development at EMCO,GKEL & CTPP

Adherence to Plan % Adherence 100% Strategy & Development

Implementation of ERM framework /SBU Dashboard in Coal SBU

ERM framework/SBU Dashboard Timeline Sept-14 / Jun- 14

Strategy & Development, Coal Assets

Improve Operational Efficiency through implementation of IT enabled business processes

IT Projects Fully implemented % 90% Corporate Functions

6

Acquiring, managing and retaining the right Talent

Focused EE plan for Critical Resources and High Performers

EE score Score >4.2

Thermal Coal, GKEL, Gas & Liquid, Coal Assets, Hydro, Corporate Functions

Ensure 1:1 Step In and Long Term Successors for all Critical positions

Identification of Successors for all Critical positions % Completion 100%

Thermal Coal, GKEL, Gas & Liquid, Coal Assets, Hydro, Corporate Functions, Strategy & Development

Implementation of Hay Group Recommendations Adherence to Plan % 100%

Thermal Coal, GKEL, Gas & Liquid, Coal Assets, Hydro, Corporate Functions, Strategy & Development

2.1 B2 STRaTEGIc OBJEcTIvES cONSIDERaTIONS

How do your STRaTEGIc OBJEcTIvES achieve the following?

• address your STRaTEGIc cHallENGES and STRaTEGIc aDvaNTaGES

• address your opportunities for INNOvaTION in products, operations, and your business model

• capitalize on your current cORE cOMPETENcIES and address the potential need for new cORE cOMPETENcIES

• balance short-and longer-term challenges and opportunities

• consider and balance the needs of all KEy STaKEHOlDERS?

• enhance your ability to adapt to sudden shifts in your market conditions

Strategic Challenges are addressed through Strategic objectives by leveraging Strategic advantages and Core Competencies. Initiatives with goals are identified for Strategic objectives which are deployed through BSC/PDM/A3 sheets. These are finalized through extensive deliberations in the strategy meet. The linkage of Strategic Objectives to the Challenges, Advantages, core Competency and opportunities for innovation is indicated in Fig. OP. 3 and Fig. 2.1-8. The time horizon based focus over the three year period for the key strategic objectives, helps in balancing short term and long term challenges and opportunities.

“Running our business, pressing the 7 ‘levers’ of GMR Business Excellence Model (GBEM) allows us, as business leaders, to run our business in a holistic manner, focusing on short term priorities without losing sight of long term goals”

aniruddha Ganguly President - Strategy & Development

As part of SPP, Stakeholder needs are captured through various forums (Fig. 2.1-1). These needs are then addressed through relevant corporate objectives and initiatives for ST/LT. Besides this, GRI-G4 approach, along with BSC used for deployment of Strategy revalidates that all stakeholders’ interest has been balanced.


Fig. 2.1-8 Alignment of Strategic Themes and Opportunities for Innovation

Strategic Themes

Trigger for Innovation

Opportunities and Innovations introduced

Service Offering Operations Business Model

Liquidity

Change in External / Internal Operating Environment, Sector Outlook, Board Direction, GHB Reviews

1. Reduction in Power Trading Billing cycle time

1. Reduction in REC Application cycle time

2. Capex optimization of BH Hydro power project by revisiting Power house layout

1. GREL Debt restructuring2. HEG Coal mines Divestment3. Island power divestment

Profitability Improvement projects at G&L Assets – Optimizing Cost of Plant preservation

Operational Excellence Initiatives at Thermal (Coal) Assets

Structure & Process

1. Key Relationship Manager for Power Trading Clients

2. Setting up Regional office at Hyderabad to effectively serve South Bound Power Trading customers

1. Develop and deploy Hydro Power Project Management Manual

2. Benchmarking of O&M Contract workforce at Thermal Coal asset – EMCO

3. To improve Energy Sector LTIFR

1. Revamping the Delegation of Power matrix for the Energy Sector

2. Stage gate reviews for Projects – Bajoli Holi, PTBSL

2.2 STRaTEGy IMPlEMENTaTION

2.2 a acTION PlaN DEvElOPMENT aND DEPlOyMENT

2.2 a1 acTION PlaN DEvElOPMENTWhat are your KEy short- and longer-term strategies and acTION PlaNS? What are your KEy short-and longer-term acTION PlaNS and their relationship to your STRaTEGIc OBJEcTIvES? What are the KEy planned changes, if any, in your products, your cUSTOMERS and markets, your suppliers and PaRTNERS, and how you will operate?

The 3 Step Strategy Deployment Process is depicted in Fig. 2.2-1. GMR

Energy develops a rolling 3 year strategic plan which is reviewed each

year. Key changes in the Environment and strategic assumptions are

reviewed in the half yearly and annual reviews by GHB. SBU Specific

Action plans and Initiatives for achieving the Strategic Objectives

are developed based on SBU Strategies discussed during Strategy

Development Process (Fig. 2.1-1). Respective SBUs develops

their own Strategy Deployment plans following PDM approach and

detailed A3 sheets which comprises of Goals, Measures and Action

Plan owners. Goal sheets are formulated to align and integrate the

individuals’ goals vis a vis SBU Targets.

Fig. 2.2-1 Strategy Deployment Process


2.2 a2 acTION PlaN IMPlEMENTaTIONHow do you DEPlOy acTION PlaNS throughout the organization to your WORKfORcE and to KEy suppliers and PaRTNERS, as appropriate, to achieve your KEy STRaTEGIc OBJEcTIvES? How do you ensure that the KEy outcomes of your acTION PlaNS can be sustained?

The ST One year plan i.e. Annual Operating plans are broken down in to monthly targets / milestones (Fig. 2.2-1). These are implemented by the entire workforce and outsourced partners through the Work System. Departmental actions are further cascaded to employees through Individual Goal sheets as described in 2.2 A1. These actions are implemented through a) Departmental work processes on an on-going basis b) Initiatives with specific start and end dates c) deploying policies and frameworks e.g. IMS deployment for Thermal (Coal) Assets and d) deployment to suppliers and partners (Refer to outsourcing process described in 6.1-1). Progress on implementation is tracked and monitored during monthly functional reviews, BCM Reviews, GCM Reviews and during half yearly and annually conducted GHB reviews. The outcomes from implementing the above actions are sustained through 6 Thrust areas so as to reinforce Customer and Business focus through high performance 1) Top Management Action Focus (Fig. 1.1-11), 2) Skill & Competency Building through L&D Mechanisms (Fig. 5.2-8), 3) Performance Reviews (Fig. 4.1-7) followed by process improvement, 4) Cross Functional involvement for accelerated learning (Ref. 5.2 A2) 5)Implementation of Improvement Projects (7 STEP Methodology) (Fig. 7.1.92, Fig. 7.1.93, Fig. 7.1.94), 6) R&R for the workforce to reinforce improved actions (Fig. 5.2-4)

2.2 a3 RESOURcE allOcaTIONHow do you ensure that financial and other resources are available to support the accomplishment of your strategies and acTION PlaNS, while meeting current obligations? How do you allocate these resources to support the accomplishment of the plans? How do you assess and manage the financial and other risks associated with the plans to ensure the financial viability of your organization?

GMR Energy follows a “bottoms-up” approach for resource allocation to accomplish the strategic objectives. The Strategic plan captures key actions and responsible person for initiating necessary actions in order to achieve the respective SBUs strategic objectives. Each Function within SBU evaluates the resource requirement in terms of both: Human Capital and Financial Plan which is reviewed during various stages of AOP Discussions and approved by SBU Head, BCM & GHB. The business steering committee also reviews the consolidated resource requirements for the business and makes the adjustments considering the business priorities and availability of resources. Once the AOP is approved by the board, it is assured that the planned resources are made available to the respective functions for execution of the action plans. Status of the resource allocations are reviewed periodically every month / quarter depending upon their criticality in order to ensure that they are made available as per plan. Any changes in the strategy and resource requirements lead to a review of the HR and finance strategy as well. Fig. 2.2-2 explains the financial resource planning and allocation process.

Fig. 2.2-2 Financial Resource Planning


The strategic plan covers the portfolio analysis to assess the value of the operating assets & on-going projects. Risks arising out of our Operations, Projects and Other Corporate processes are assessed through Risk Management Methodology (Fig. 2.2-3) under ERM Framework.

Fig. 2.2-3 Risk Management Methodology

The Internal Audit and ERM Framework paves the way for sustained financial viability and business performance on strategic objectives and action plans.

2.2 a4 WORKfORcE PlaNSWhat are your KEy human resources or WORKfORcE plans to accomplish your short- and longer-term STRaTEGIc OBJEcTIvES and acTION PlaNS? How do the plans address potential impacts on your WORKfORcE members and any potential changes to WORKfORcE caPaBIlITy and caPacITy needs?

HR Function undertakes its own (Fig. 2.1-1) environment scan which addresses potential impacts both in terms of capacity and capability of the workforce. This input to the SPP translates into Strategic Objectives at Sector level under L&D perspective and accordingly HR Objectives along with HR ST and LT Action plans are mapped. Fig. 2.2-4 shows the Sector HR Strategic initiatives supported by LT & ST Plans.

2.2 a5 PERfORMaNcE MEaSURESWhat are your KEy PERfORMaNcE MEaSURES or INDIcaTORS for tracking the achievement and EffEcTIvENESS of your acTION PlaNS? How do you ensure that your overall acTION PlaN measurement system reinforces organizational alIGNMENT? How do you ensure that the measurement system covers all KEy DEPlOyMENT areas and STaKEHOlDERS?

SBU Specific Strategic Objectives, Strategic Initiatives, Measures, and targets assigned are included in SBU Head’s Balanced Score Card.

The BSC’s are then cascaded through detailed PDMs (For Officers directly reporting to SBU Head including Key Functional Heads) and is further supported by A3 sheets ensuring alignment across levels. The Cascading methodology ensures that the Annual Operating Plans for SBU is cascaded down to Functional AOPs and further to individual Goal sheets. The monthly review of these through Review Forums (Fig. 4.1-7) ensures organizational alignment. Measures are defined at both the levels i.e. At Sector Level and at SBU level depending upon nature of action plans. The effectiveness and efficiency of the strategic planning process itself is measured through 1) Extent of achievement of targets including AOPs 2) Compliance to SPP Cycle time and 3) Feedback from stakeholders.

2.2 a6 acTION PlaN MODIfIcaTIONHow do you establish and DEPlOy modified acTION PlaNS if circumstances require a shift in plans and rapid execution of new plans?

As has been seen over the past several years, the Energy Sector is not subject to very rapid and dramatic shifts in market, external / internal environment and policies. During Half yearly reviews the strategic plans, progress status and strategic assumptions are reviewed to assess any shifts and changes in the operating environment. Correspondingly Strategic Objectives and action plans including measures are modified accordingly. This methodology ensures that action plans are updated in context of current business scenarios and enable us to respond to any significant shift in the strategy.

2.2 B PERfORMaNcE PROJEcTION


Fig. 2.2-4 Abstract of HR Road map – FY15 to FY17

for the KEy PERfORMaNcE MEaSURES or INDIcaTORS identified in 2.2a(5), what are your PERfORMaNcE PROJEcTIONS for both your short- and longer-term planning time horizons? How does your projected PERfORMaNcE on these measures or indicators compare with the projected PERfORMaNcE of your competitors or comparable organizations? How does it compare with KEy BENcHMaRKS, GOalS, and past PERfORMaNcE, as appropriate? If there are current or projected gaps in PERfORMaNcE against your competitors or comparable organizations, HOW will you address them?

Our business Strategy consists of the following principal elements:

• Focus on the completion of Power Projects under construction

• Increasing the Operational efficiency and profitability of our Power Projects.

• Benefit from India’s growth in the power generation sector and demand for power

• Expand our power asset base by expanding our areas of operation geographically and diversifying our fuel type.

• Maintain an optimal balance between long-term and short-term off-take arrangements

• Pursue development and acquisition opportunities to expand as well as to streamline our business and portfolio of assets.

In FY 15, the focus will be to address all Power evacuation related bottlenecks, and maximize off-take to ensure seamless supply of power to DISCOMs/OA Customers. Both the Units of our Coal based Thermal Project - CTPP will achieve commercial operation. We are also engaging Global Consultant to help us drive Operational Excellence at our Thermal Assets, and improve our Cash flows. Our Gas based Assets may continue to remain under preservation because of the shortage in Gas Supply. At this point of time, it is of utmost importance for us to overcome the above constraints in the shortest possible time, which is also vital for most of our peer companies in the Power Sector today. We are optimistic that by the end of FY 15, we shall achieve the stage of steady state operations, and it will then become imperative for us to Project our Operational & Financial performance, and start comparing it with our peer companies in the Industry.


3.1 vOIcE Of THE cUSTOMERDescribe HOW your organization listens to your CUSTOMERS and acquires satisfaction and dissatisfaction information.

3.1 a cUSTOMER lISTENINGGMR Energy sells power generated from its Assets in Long term markets to DISCOMS. Medium term and Short term markets constitute 20% of electricity sold in India, and Long term constitutes the balance. Period of Long term contract varies from 7 years to 25 years, Medium term contract varies from 1 year to 7 year, and Short term contract varies from 1 hour to 1 year. The surplus power available from GMR Energy assets after the Long Term PPA tie up commitment, and third party assets is sold under medium/short term market through GMRETL,

3. cUSTOMER fOcUS

subsidiary of GIL. For GMR Energy the plan is to tie up 85% of power generated through Long/Medium term PPAs, while balance would be sold in Short term power markets through GMRETL, subsidiary of GIL.

3.1 a1 lISTENING TO cURRENT cUSTOMERHow do you listen to cUSTOMERS to obtain actionable information? How do your listening methods vary for different cUSTOMERS, cUSTOMER groups, or market SEGMENTS? How do you use social media and web-based technologies to listen to cUSTOMERS, as appropriate? How do your listening methods vary across the cUSTOMER life cycle? How do you follow up with cUSTOMERS on the quality of products, cUSTOMER support, and transactions to receive immediate and actionable feedback?

The current customer life cycle is defined in three stages:

customer life cycle Stage 1 Stage 2 Stage 3

Short Term Market Segment Business Development, Opportunity scanning and Customer acquisition Post-Acquisition Final Settlement

Long Term Market Segment Business Development, Opportunity scanning and Customer acquisition Post-Acquisition Yearly Settlement

As a key element of Customer centricity, we have various touch points to listen/interact and observe customers as detailed in Fig. 3.1-1 & 3.1-2 which enumerates action-ability on Service Offerings, Customer Support and Transactions across Short term and Long term market segments. The inputs gathered through various learning and listening mechanisms differ in Qualitative Aspects (e.g. Market offerings in terms

of pricing, trading margin etc.) and Quantitative Aspects (Emerging market trends, Volumes, Future potential etc.) to understand segment specific needs. These inputs are further analyzed to improve our offerings and support mechanisms. Teams for Sales, Operations and Customer Support (PPA Management) are deployed to ensure regular follow up and deliver consistent support across the Customer life cycle.

fig. 3.1-1 customer life cycle support and relationship for positive customer experience – Short term & Medium Term

life cyclecustomer Touch

points

Mechanisms Immediate and actionable information

Impactlisten Interact Observe

customer offerings

customer Support Transactions

Business Development, Opportunity scanning and Customer acquisition

GMRETL Website, States Website, electronic media & print media

√ √

Provide offers with competitive rates and trading margin

Flexibility on commercial aspects such as payment terms rebates, scheduling/rescheduling terms

Focused personal interactions with customers (with good payment track record)

Giving market intelligence on day to day basis to the customers to meet the requirements

Educate customers on Open access regulations.

Sharing GMR’s transparent trading policies

Providing regular updates on the outlook of power market

Obtaining letter of intent (LOI)

Execution of the agreements

Providing and obtaining EMD,CPGs and LCs

Improvement in contracts management


Cold calls to Industrial consumers √ √

Hot calls to Industrial consumers √ √

Regular meetings √ √ √

Public domain (other websites/seminars/conference)

√



points



customer offerings


Post-Acquisition

Key relationship manager of PT √ √

Compliance to the contract

Scheduling/rescheduling of power

Early payment rebate

Information about power scheduled, deviations & outages if any

Supplying power through Alternate arrangement, if required

Raising provisional bills

Payment of scheduling charges to RLDC/SLDC

Receiving payments for power sold

Fig. 7.1.39, 7.1.40, Fig. 7.2.5, Fig. 7.2.7

Trading Operations team √ √

RLDC/SLDC website √

Trading F&A team √ √

Customer communication through Phone, email, fax

√ √

Meetings with key officials √ √ √

Final Settlement

Customer satisfaction survey √ √ √ Providing final

Regional Energy Accounting (REA)

Contract closure certificate if required by the customer

Reconciliation of energy supplied

Resolution of customer concerns/queries

Raising final energy bills, surcharge bills, penalty bills, if any

Settlement of final amount.

Receiving back CPG and returning the BG/LCs

Fig. 7.1.42, Fig. 7.2.6, Fig. 7.2.7

Customer feedback (through phone/meetings)

√ √ √

Key relationship manager √ √

Trading F&A team √ √

RLDC/SLDC website, and reports √

Fig. 3.1-2 Customer Life cycle support and relationship for positive customer experience – Long term


points



customer offerings


Business Development, opportunity scanning and customer acquisition

States Website, electronic media & print media

√ √

MOU based long term contract

Competitive tariff based bidding (for long term and medium term)

Focused personal interactions with customers

Providing Company information/data as required

Sharing GMR’s vision of long term commitment to supply power

Obtaining letter of intent (LOI)

Execution of the agreements

Providing and obtaining EMD,CPGs and LCs

Improvement in bidding strategy

Long term contracts, Fig. OP. 8

Cold calls to Utilities/Discoms √ √

Public domain (other websites/seminars/ conferences)

√

Bidding team √

Post-Acquisition

PPA Management team √ √

Compliance to the contract

Scheduling/rescheduling of power

Early payment rebate

Information about power scheduled, deviations & outages if any


Relationship development at all levels

Raising provisional bills

Payment of scheduling charges

Receiving payments for power sold

Fig. 7.1.47, Fig. 7.1.49

Plant/Trading Operations team √ √

RLDC/SLDC website √

Plant/Trading F&A team √ √

Customer communication through Phone, email, fax

√ √

Meetings with key officials regularly √ √ √



points



customer offerings


Yearly Settlement

Customer feedback (through phone/meeting)

√ √ √

Providing final Regional Energy Accounting (REA) on monthly basis



Raising final energy bills, surcharge bills, penalty bills, if any

Settlement of final amount.

Receiving back CPG and returning the BG/LCs.

Fig. 7.2.1PPA management team √ √ √

Plant/Trading F&A team √ √ √

RLDC/SLDC website √ √ √

3.1 a2 lISTENING TO POTENTIal, cOMPETITOR & fORMER cUSTOMERHow do you listen to former cUSTOMERS, potential cUSTOMERS, and cUSTOMERS of competitors to obtain actionable information and to obtain feedback on your current and future products, cUSTOMER support, and transactions, as appropriate?

A long Term market is highly tenured, and involves dealing with one single customer only – (State Utilities/DISCOM) for consistently steady and long period. Long Term Markets are not as volatile and emerging as short term markets in terms of Pricing, Margin, Volumes, and Opportunities. Hence the concept of Potential, Former, and Customers

of Competitors for GMR Energy is more pertinent to opportunities that prevail in Short Term Power Market. Thus, as described in Fig. 3.1-3 various approaches to listen to potential and customers of competitors to obtain actionable information to improve the current and future service offerings are for these customers in Short Term Market. Feedback gathered through the below mechanisms are used to comprehend the aspects of pricing, service, geography that differentiates GMR Energy from the Competition in this market. This helps us understand and analyze critical parameters that need specific improvement in future offerings, support mechanisms, and transaction methods (e.g. offering competitive tariffs and trading margins). GMR Energy continuously interacts with Govt. Bodies, State Electricity bodies to acquire new franchisees.

Fig. 3.1-3 Customer Listening – Potential, Competitor and Former customers – Short term market segments

Type of customer

Tool / Mechanism

Information exchange (listen/Interact/Observe)Usage for Improvement in Offering, customer

Support and Transactions

Potential / Former

Phone, fax, emails, meetings, seminars, Associations meetings

- Their current and future requirements- Their current and future planning- Their current suppliers and feedback on their

performance- Current Supplier’s terms and conditions for supply.- Update on our new offerings/partners/generators and

its advantages- Exchange views/presentations on evolving regulatory

provisions and future potential in power market

- Provide more competitive offers- Provide locational advantage- Improvement in customer interaction frequency and

multilevel interactions- Operationalization of regional offices for power trading

to tap potential market and thereby enhance customer base

- Launched Franchisee model to increase customer’s base

Customer of Competitor

Phone, fax, emails, meetings, seminars, Associations meetings

- Current Supplier’s terms and conditions for supply.- Update on our new offerings/partners/generators and

its advantages- Exchange views/presentations on evolving regulatory

provisions and future potential in power market

- Improve our offerings. E.g. . One of the USP for enhancing the cliental base in WR was supply from EMCO assuring higher availability being in the same region

- Offer competitive tariffs and trading margins- Increase in customer interactions

3.1 B DETERMINaTION Of cUSTOMER SaTISfacTION aND ENGaGEMENT3.1 B1 SaTISfacTION aND ENGaGEMENTHow do you determine cUSTOMER satisfaction and ENGaGEMENT? How do these determination methods differ among cUSTOMER groups and market SEGMENTS, as appropriate? How do your measurements capture actionable information for use in exceeding your cUSTOMERS’ expectations and securing your cUSTOMERS’ ENGaGEMENT? Customer Satisfaction and Engagement is determined for Short term and Long term Customers on Service offerings and Customer support. Feedback is obtained for complete life cycle and is carried out on an annual basis. The methodology is shown in Fig. 3.1-4, it involves identification of key drivers and attributes impacting satisfaction and engagement.

Fig. 3.1-4 Customer Satisfaction and Engagement Measurement


These surveys are designed and administered in-house. Based on the feedback received from the BE External Assessment, as an improvement this year, an independent internal committee was constituted to ensure element of objectivity in the survey. Also, separate survey questionnaires were developed for OA customers (Exchange and Bilateral) to ensure specific focus on needs and requirements of these segments. Information collected through these surveys is aggregated across customer segments, and analyzed for identifying specific improvement areas.

Similar approach is used to determine Customer satisfaction and engagement for Long term customers for our G&L assets (GPCL & GVPGL), however the same could not be carried out for FY14 as these assets were negligibly running, and were under preservation. For Thermal assets (EMCO & GKEL) similar approach would be deployed in the current year as they have just started to achieve operational stability. C Sat Survey outcomes, BE Assessment OFI’s and internal review of Customer Satisfaction & Engagement measurement processes are used to trigger improvements as indicated in Fig. 3.1-5

Fig. 3.1-5 E&I on Customer Satisfaction and Engagement Measurement

year Trigger Improvement Done Impact

FY 14

BE Assessment OFI

Survey questionnaire reviewed by Independent Internal Committee to ensure element of objectivity To bring in more objectivity in the survey process

Internal Review Separate Survey Questionnaires for OA Customers – (Exchange and Bilateral) Segmented Feedback

3.1 B2 SaTISfacTION RElaTIvE TO cOMPETITORSHow do you obtain information on your cUSTOMERS’ satisfaction relative to their satisfaction with your competitors? How do you obtain information on your cUSTOMERS’ satisfaction relative to the satisfaction levels of cUSTOMERS of other organizations providing similar products or to industry BENcHMaRKS, as appropriate?

There is no industry level data available on customer satisfaction to understand the specific trends and do benchmarking in results, however an effort has been made to capture feedback on relative satisfaction of our customers with competitors through C Sat feedback form (against the same set of performance standards across customer life cycle). Also customer feedback captured through informal approaches like Meetings, Interactions, and Visits etc. is used to improve on various customer support processes like Bidding, Operations, Billing and Payment, considering services offered by competitors to OA customers. For e.g. Power Trading Regional office was established in Hyderabad to strengthen relationship with State Utilities based on the feedback shared by few OA Clients from southern region (TN and AP). This has helped in expediting issuance of NOC by State Utilities for corridor booking. Similarly we also learnt from one of our OA client that GMR documentation process for early billing is relatively more efficient than the other Trading companies.

3.1 B3 DISSaTISfacTIONHow do you determine cUSTOMER dissatisfaction? How do your measurements capture actionable information for use in meeting your cUSTOMERS’ requirements and exceeding their expectations in the future?

Feedback from various touch points, customer meets, visits, repeat complaints, complaints escalation, and loss of key customers indicates the dissatisfaction levels of customers. These points are being reviewed by Dept. Head during regular review meetings; detailed root cause analysis is carried out to identify critical improvement areas impacting the key service offerings and customer support. Based on the same, action plans for implementation are identified and assigned.

The Key Relationship Managers analyzes the complaints not resolved within stipulated timelines, and suggests modification in the processes so as to meet and exceed the customer expectation accordingly.

3.2 cUSTOMER ENGaGEMENT

3.2 a PRODUcT OffERINGS aND cUSTOMER SUPPORT

3.2 a1 PRODUcT OffERINGSHow do you identify cUSTOMER and market requirements for product offerings and services? How do you identify and innovate product offerings to meet the requirements and exceed the expectations of your cUSTOMER groups and market SEGMENTS (identified in your Organisational Profile)? How do you identify and innovate product offerings to enter new markets, to attract new cUSTOMERS, and to provide opportunities for expanding relationships with existing cUSTOMERS, as appropriate? What are your new product offerings and changes to cUSTOMER support added in recent years?

GMR Energy (Power Trading) identifies customers and market requirements based on key requirements of customers, which are quantity of purchase/sale of power, period of purchase/sale of power, historic data of customer regarding purchase/sale of power, competitive price for sale/purchase of power and scanning the market conditions (Fig. 3.2-1). We identify the requirements of customers and offer them reliable power at competitive price based on period of supply, market rates, and flexible contractual terms. We also provide market intelligence to customers about the rate, and availability/requirement of power so as to facilitate them in taking quick decisions regarding purchase/sale of power. To enter into new market, we study the historic sale/purchase of power by that customer, financial capability of the customer, and explore opportunity for sale/purchase of power to customer in future at competitive pricing. We have dedicated Service Relationship Manager assigned to all our customers/clients selling/buying power through us across customer life cycle. We also have dedicated teams for marketing/sales, contractual compliances, commercial settlement, and collecting feedback from customers to support them across entire life cycle.


Fig. 3.2-1 Service Offerings

customer type

customer RequirementService Offering

Performance MeasuresTo meet requirements

To enter new markets / new customers

State Utility

- Availability of supply as per contract.- Rescheduling on mutual basis- Competitive tariff- Rebates for extended period- Security/guarantees against contracts - Sale/banking of their surplus power at competitive

rates- Error free billing and payment convenience- Dedicated contact point (easily accessible)

- Cost effective generation- Provide alternate supply sources in case of

outages/planned maintenance.- Facilitating banking of power at competitive

terms- Provide power through banking arrangement- Provide insight into market through regular

meetings- Dedicated key relationship Manager with

alternate back up resource

- Identify load pattern of various States to match the surplus/deficit requirement for banking/sale

- Availability of units- Compliance to

shutdown schedules- Compliance to daily

schedules/generation- Compliance to

agreement terms and conditions

- Customer Satisfaction survey index

OA customers

- Portfolio management - (Power Sale / purchase, Renewable certificates - Sale / purchase)

- 100% availability to avoid penalties- Competitive tariff- Payment terms- Compensation terms- Additional availability during hours.- Assistance for Approvals for scheduling- Updates on Market outlook- Updates on Regulatory framework- Dedicated contact point (easily accessible)

- Additional Peak load generation- Provide alternate supply sources in case of

planned/unplanned outage- Dedicated key relationship Manager with


- Ensure 100% availability through tie up with multiple generators/discoms.

- Identify States with opening up of OA

- Compliance to daily schedules/generation

- Compliance to terms and conditions of agreement


Private Discoms

- Max. Availability,- Competitive tariff- Sale/banking of their surplus power at competitive

terms- Error free billing and payment convenience- Dedicated contact point (easily accessible)- Flexibility of rescheduling on mutual basis

- Facilitating banking of their surplus power at competitive terms

- Provide them power through banking arrangement

- Provide insight into market through regular meetings

- Dedicated key relationship Manager with alternate back up resource

- Identify load pattern of various States to match the surplus/deficit requirement for banking/sale

- Compliance to daily schedules/generation

- Compliance to terms and conditions of agreement


Generators

- Firm contracts- Payment security- Availability- Dedicated contact point (easily accessible)- Updates on Market outlook

- Provide LC/BG as applicable- Dedicated key relationship Manager with


- New upcoming IPPs/CPPs

- Success rates in tenders

- Volume of power sold- Compliance to terms

and conditions of agreement


RE Generators

- Maximum clearance of REC- Maximum Realization- Regulatory updates

- Strategically Bid on both power exchanges to achieve maximum volume clearance and realization

- New RE generators - No. of REC sold

Traders- Lowest tariff- Competitive trading margin.- Supply for peak hours/few hours/few days

- Additional Peak load generation at short notice

- Tap their portfolio for supply as alternate source

- Volume of power sold

Fig. 3.2-2 Process to identify and innovate service offering through experience and expectation of customer


3.2 a2 cUSTOMER SUPPORTHow do you enable cUSTOMERS to seek information and cUSTOMER support? How do you enable them to conduct their business with you and provide feedback on your current and future products and your cUSTOMER support? What are your KEy means of cUSTOMER support, including your KEy communication mechanisms? How do they vary for different cUSTOMERS, cUSTOMER groups, or market SEGMENTS? How do you determine your cUSTOMERS’ KEy support requirements? How do you ensure that cUSTOMER support requirements are DEPlOyED to all people and PROcESSES involved in cUSTOMER SUPPORT?

We offer Customer Support across customer life cycle including support for seeking information, conducting business, and collecting feedback as shown in Fig. 3.2-3. Support and communication requirements are determined through segregation of Voice of Customer (Fig. 3.1-1, 3.1-2). We identify the requirements of customers and offer them reliable power at competitive price based on period of supply, market rates, and flexible contractual terms. We also provide market intelligence to customers about rate and availability / requirement of power to enable them conduct business with us. These requirements, along with feedback from customers, survey findings and BE Assessment findings are used to improve customer support processes.

Fig. 3.2-3 Customer Support across life cycle

criteriaBusiness Development, opportunity scanning and

customer acquisitionPost-acquisition

final/yearly Settlement

Avenues that enables customers to seek information and support

Each power trading person has been assigned responsibility of dealing with identified States Utilities /Discoms/generators/OA consumer.

Primary and secondary responsibility are also defined. These people deal with the officials at various levels and develop understanding with them with regards to V&B and functioning of GMR

Providing offers and information on regular basis on sale/purchase opportunity

Contact details of Person is provided as part of agreement for various requirements such as scheduling/rescheduling of power, billing related queries and for any other purpose required for smooth execution of the contract

Mobile Phone, fax, e-mails details are provided for seamless access

GMRETL website is maintained with contact details of key personnel’s and updates on GMRETL’s portfolio of services

Executing various tie ups to enable customer to conduct business with us

Identify suitable Seller/ buyer and initiate tie up on back to back basis

Apply for scheduling of power to RLDC along with necessary NOCs

Comply with daily schedules and informing them about any curtailments/rescheduling requirements.

Raising error free billing on weekly basis

Provide final bills matching with REA

Provide completion certificates if required

Enabling and capturing feedbacks for our current and future offerings

Feedback on tariff, trading margin, supply quantum and source, supply duration of GMR vis-à-vis competition

Multi-level meetings with customer’s representatives are held to seek their feedback on our services and any improvements required, if any. Future requirements are also discussed during these meetings

c-sat form

Avenues for determining customer’s support requirements

Meeting with Load dispatch and procurement cellsMulti-level meetings with customer’s representatives of procurement cell, billing and accounts

c-sat form

3.2 a3 cUSTOMER SEGMENTaTION

How do you use cUSTOMER, market, and product offering information to identify current and anticipate future cUSTOMER groups and market SEGMENTS? How do you consider cUSTOMERS of competitors and other potential cUSTOMERS and markets in this segmentation? How do you determine which cUSTOMERS, cUSTOMER groups, and market SEGMENTS to pursue for current and future products?

GMR Energy identifies current and future market segments (Fig. 3.2-4) based on emerging business needs. During the annual Strategic planning process, business needs are analyzed and information is used to identify present, potential and future market segments, also listening data collected from various mechanisms (Fig. 3.1-1, 3.1-2) are segregated, collated and analyzed to study customer insights. The information collated

includes nation-wide demand/supply gap, retail tariff of open access industrial consumers in various states, energy volume and exchange rate trends. Various generation opportunities are evaluated on pan-India basis through opportunity scan. The power sale strategy is determined based on the financial stability of state utilities, demand, location of our plants, power surplus/deficit scenario, political scenario, transmission feasibility, competitor analysis, power purchasing capability for both long term and medium term. Customer segments have evolved accordingly, as an outcome of Market intelligence research reports. In FY13, REC Generators segment was added to tap opportunities of trading in REC Certificates through Power Exchange (IEX, Power Exchange of India Limited) of which we are the registered Trader, and authorized to trade on behalf of Generators and Consumers. Similarly in FY14, ‘Other Traders’ was added as one of the segments to support our growth plans based on the future outlook.


Fig. 3.2-4 Customer & Market Segmentations

3.2 a4 cUSTOMER DaTa USE

How do you use cUSTOMER, market, and product offering information to improve marketing, build a more cUSTOMER-focused culture, and identify opportunities for INNOvaTION?

Customer & service offering information are passed on to complete customer response chain for use by customer facing employees (Key Relationship managers), Teams (O&M, Power

Trading F&A, Power Trading BD, PPA Management) during daily and periodic review meetings. To conduct the business effectively service offered to customers are communicated through various mechanisms listed in Fig. 3.2-3. The consolidated inputs collated for service offerings and support requirements are utilized effectively to improve and enhance for e.g. Improvement in Customer interaction frequency, Multi-level interactions (including Key Management members of customers)

fig. 3.2-5 Building customer centric culture

“The will to win, the desire to succeed, the urge to reach your full potential. These are the keys that will unlock the door to Excellence”

G B Nayak Head O&M and PPA Management – G&L SBU


referrals. For e.g. deployment of Key relationship manager, setting up of regional trading offices ensures that Voice of Customers is used to respond to Customers views and drive initiatives and improvements across functions in order to meet their requirements. Our overall BD strategy in Trading, is conceptualized, and aligned with specific customer needs for e.g. Facilitating Banking of Power at Competitive terms for Long Term Customers, Flexibility on commercial aspects – Rebates, payment schedule etc. for Short term- Open Access customers, to acquire new customers in the Acquisition stage. At operational levels, Customer focused measures get built into Goal sheets/KRAs of all key employees in Customer value chain – (Trading, PPA Management, and Assets Team). Feedback from Customers, obtained through surveys, field visits, customer meets etc. is analyzed for identifying areas for improving the extent of Customer Engagement level. Following improvements have been made lately to strengthen relationship building with all our Customer groups – 1) Creation of PPA Management Team to ensure strong interface with Long Term Customers – State Utilities, 2) Setting up of Regional offices to support Short term OA Customers, and 3) Assigning dedicated point of contact across Customer life cycle, to listen to them, and support their requirements

Fig. 3.2-6 Customer Relationships

lifecycle Process MechanismsMeeting & Exceeding

requirementsBy Whom Results

Business Development, Opportunity scanning and Customer acquisition(acquire and Build Market Share)

Awareness, Initiate interaction

GMRETL Website, States Website, Electronic media & Print media, Calls to customers (Hot, Cold), Regular meetings, Public domain (Other websites/seminars/conferences)

Provide offers with competitive rates and trading margin

Educate customers on Open access regulations

Providing regular updates on the outlook of power market

Power Trading BD Team, PPA Management Team

No. of workshops/Customer interactions, No. of opportunities converted into leads

Discussion of Contract terms

Visit, Meetings, E Mails/Fax

Flexibility on commercial aspects (payment terms rebates)

Scheduling/rescheduling terms

Power Trading BD Team, PPA Management Team, Operations Team, Power Trading & Thermal Assets F&A Team

No. of visits, No. of meetings, Bids won

Award of Contract

E Mails/Fax/CourierAcknowledgement of award of contract, Resolution of customer query

Power Trading BD team, PPA Management Team, Power Trading and Thermal Assets F&A Teams

Contracts Awarded vis a vis Bids won

Post-Acquisition

(Retain)Sale/Buy of power

Key Relationship Process, Customer visit, Phone Interactions, Email/Fax

Compliance to the contract.

Scheduling/rescheduling of power.

Early payment rebate Information about power scheduled, deviations & outages, if any


Key Relationship Manager of PT, Trading Operations team, Trading F&A Team

Compliance to schedule of supply, No. of unplanned outages/deviations impacting supply

Final Settlement (Increase Engagement)

Final Settlement, Customer Satisfaction Survey, Customer Feedback

Final Settlement process

Providing final Regional Energy Accounting (REA)


Contract closure certificate if required by the customer


Power Trading teams (Key Relationship Manager, F&A, Operations), PPA Management Team, Thermal F&A Team

No. of concerns raised by Customers, Customer Satisfaction

Regular KM Sessions (Short term power market), Customer focused training, Refresher course for customer facing employees and closure of BE Assessment finding on customer focus have brought more emphasis to the customer centric culture (Fig. 3.2-5)

3.2 B BUIlDING cUSTOMER RElaTIONSHIPS

3.2 B1 RElaTIONSHIP MaNaGEMENTHow do you market, build and manage relationships with cUSTOMERS to achieve following?

• acquire cUSTOMERS and build market share

• Retain cUSTOMERS, meet their requirements and exceed their expectations in each stage of the cUSTOMER life cycle

• Increase their ENGaGEMENT with you?

The Customer Engagement and relationship building starts with 1) Business Development and Customer Acquisition 2) Post Acquisition 3) Final/Yearly settlement. Specific activities during these stages (as indicated in Fig. 3.2-6) aim to create a supportive and positive response while striving to meet and exceed customer expectations, which helps us to sustain loyalty, enhance repeat business, and seek positive


3.2 B2 complaint Management

How do you manage customer complaints? How does your cUSTOMER complaint management PROcESS ensure that complaints are resolved promptly and EffEcTIvEly? How does your cUSTOMER complaint management PROcESS enable you to recover your cUSTOMERS confidence, and enhance their satisfaction and ENGaGEMENT?

Our Complaint management system helps us to manage, resolve and communicate complaints across Customer groups for all the Customer life cycle stages as indicated in fig. 3.2-7. We have a dedicated person to manage, aggregate and analyze complaints from various sources for speedy resolution.

long term PPa – State Utilities:

A Complaint register is maintained for logging Complaints received through Fax, E mails from State Utilities. These are aggregated by the Site Planning Team, and assigned to the concerned department for necessary action. Nodal points are defined for receiving Complaints of different natures viz. LDC, Daily Exchange operation and Actual Energy Billing.

The nominated person also keeps the Plant Head informed on the closure of Complaints, ageing and progress from time to time. All the complaints are analyzed for corrective action as appropriate in the areas of load dispatch, maintenance schedules, protection coordination for relays, tripping. The

Plant Head closely monitors the progress on closure, supports implementation of corrective action and ensures timely feedback to the State utilities on status of Complaints [Refer Fig. 3.2-7].

Short Term – Open access customers:

For, Power Trading, customers send their complaints to the nominated person assigned to them across Customer life, or service relationship managers directly through e mail/fax. All complaints received are registered in “Complaint Register” and assigned to the concerned department for necessary action. Customers are also encouraged to register their complaints on website www.gmrenergytrading.in.This acts as a fast track window for immediate closure. All the complaints are analyzed for corrective action as appropriate in the areas of contracts, Scheduling, billing & payment for Power Trading. In case of complaints from key customers, Sr. leaders meet customers to enhance their confidence and ensure seamless support on their requirements. [Refer Fig. 3.2-7].

Along with customer complaints register, GMR (Power Trading) also maintains an error register for registering all the errors highlighted by the Customers while conducting business. Errors are analyzed and process revisions are made based on the learning’s and improvements made in the areas of Operations & Maintenance to improve the service offerings.

Fig. 3.2-7 Complaint Management Process


4.1 MEaSUREMENT, aNalySIS, aND IMPROvEMENT Of ORGaNIzaTIONal PERfORMaNcE

4.1 a PERfORMaNcE MEaSUREMENT

4.1 a1 PERfORMaNcE MEaSURES

How do you select, collect, align, and integrate data and information for tracking daily operations overall organizational PERfORMaNcE including progress relative to STRaTEGIc OBJEcTIvES and acTION PlaNS? What are your KEy organizational PERfORMaNcE MEaSURES, including KEy short-term and longer-term financial MEaSURES? How frequently do you track these MEaSURES? How do you use these data and information to support organizational decision making and INNOvaTION?

Our Performance Measurement system is described in Fig 4.1-1. Strategic objectives and their key Performance measures are identified through Strategic Planning Process. Detailed Action Plans along with targets, owners, and KPIs are prepared and deployed through A3 sheets to achieve these objectives. Daily operations are carried out and managed through Work system & Work processes (Fig.6.1-2 & 6.2-2) and efficiency and effectiveness measures (Fig. 6.2-2). Data related to all KPIs are selected for measurement through Data Selection Process (Fig.4.1-2), to assess the overall and daily operations performance including safety and climate change. Process related data is captured through Plant DCS, SAP, OSI-PI, BPC, then aggregated and integrated into relevant KPIs which are reported through MIS to various stakeholders. These information and reports are analyzed and reviewed to assess the organizations daily and overall performance (Fig.4.1-7 and 8) and to take suitable preventive and corrective actions to improve the same.

4. MEaSUREMENT, aNalySIS aND KNOWlEDGE MaNaGEMENT

Fig. 4.1-1 Performance Measurement System

Gaps between planned and actual levels of Performance are the triggers for decision making, improvements, breakthrough ideas and innovations (Fig. 4.1-3). The integrated data is used for decision making at the operational, business and corporate level. Data from the External sources and non- automated systems is captured manually, from established independent and external agencies. For example, data on Employee Engagement is collected by External agency like Gall Up, and

coordinated by HR group, Information about Industry outlook, Market and Competition by Bloomberg, Data on Org Structure and Design by McKinsey, Job Analysis and Design by Hay Group, Design Engineering & Project Planning by Geo Data (Owners Engineers for BH Hydro Project) /Technical Advisory Committee. This ensures reliability, integrity and accuracy of data and information.


Fig. 4.1-2 Selection & Collection of Data

At the functional & business level, SAP system integrates power

sales, and cost related data, which is regularly monitored,

analyzed and reviewed against AOP targets, comparisons and

benchmarks.

The Planning and Technical services Team at Operating Assets, Power Trading Team, generates daily reports, which reflects previous day’s, Month-to-date, Year-to-date Performance against AOP. These data and information are aggregated in the form of monthly MIS for the respective functions.

Fig. 4.1-3 Organization Performance Measurement

PurposeTracking done by

Selection collection alignment IntegrationDecision Making / Innovation

(Examples)

Strategic

GHB, GCM & BCM Reviews, SBU Reviews

Vision, Mission, Strategic Objectives, Sector & SBU BSC’s

Environment Scan, Sector SWOT, Benchmark Data, Consultants Inputs, Independent 3rd Party Reports (Including Quality, Safety, Environment), Surveys, BSC

Cascading of Sector BSCs across SBUs

GHB Reviews, GCM & BCM Reviews, SBU Reviews

Energy Sector restructuring to SBUs, Divestment (Island Power, HEG Coal Mines), ALAR Strategy, Revamping of RASCI & DOP, Stakeholder Focus, Policy Advocacy, Project Execution Excellence : “Bhavyatha”, Strategy Deployment through PDM/A3, Hay Group study

Organizational Performance

SBU Heads, Group Corporate Functions (Legal, MAG, E&I, IT, HR etc.)

Key work process Measures, Action Plan Indicators of Long Term & Short Term Strategic Plans, SBU BSC Measures

SAP Reports & MIS Derived from SAP/BPC/OSI PI/DCS. MAG Audits, Survey Outcomes (Employee Engagement, Customer Satisfaction, IT/FMS Satisfaction) Outcomes, EHS Reports, ORMs

SBU BSC’s (Derived from Sector BSC), Cascaded to Functions through PDM & A3 sheets, IMS Process Measures

SBU Head Reviews, Project Reviews, HR Council, BE Council, EHS Reviews, IT Reviews, ORMs

Roll out of EHS Framework & Hydro Power Project Management Manual, IMS Deployment at GKEL & EMCO, Internal SLA’s, CIPs


PurposeTracking done by

Selection collection alignment IntegrationDecision Making / Innovation

(Examples)

Daily

Plant Heads, O&M Heads, Project Head, Functional Heads

AOP Targets, PDM Measures, Key Work Process Measures

Plant Daily Generation Report, Power Sales Report, Customer Complaint Management, SAP Reports, Asset Monitoring Dash Boards

A3 Sheet, Goal Sheets

Daily Morning Meetings, Plant O&M Reviews, EHS Reviews

Asset Monitoring Dash Board, AOP Tracking through BPC, Project Planning and monitoring through Primavera, “S” Curves, Cost Curves

4.1 a2 cOMPaRaTIvE DaTaHow do you select and ensure the EffEcTIvE use of KEy comparative data and information to support operational and strategic decision making and INNOvaTION?

Selection of Comparative data is based on 1) Similarity of Business and Process 2) Configuration & Technology 3) Stakeholder needs 4) Industry and Market Analysts reports 5) External Consultants 6) Strategy sessions. The sources of collection of comparative industry data/information as part of the strategic planning process includes – Bloomberg, Infraline, Analysts reports. This data/ information are utilized to formulate

Sector & SBU strategy. Our key operational Performance parameters are compared with best in class industry data (Fig. 4.1-4) provided by the Regulatory bodies both, for our Thermal, and Gas based Assets. McKinsey has been engaged to help us carve out GMR way of Project Execution Excellence under Project Bhavyatha, and to support us on major organizational redesign exercise. We are currently working with Hay’ Group on Job Evaluation & Design to enable consistent and comprehensive role documentation of unique roles in the organization. Based on the Energy Audit conducted by CII recently, specific areas of improvement have been identified to optimize the Energy consumption.

Fig. 4.1-4 Selection and Usage of Comparative Data

NIST, the spearhead of EHS course provider in India, has been engaged to drive behavioral based safety programs (based on NEBOSH standards of Safety Excellence) at our Thermal Assets. For our Gas based Assets under Preservation, a community of practice, aimed at sharing of learning’s/best

practices internally on Equipment Testing, Cost management etc. has been initiated to leverage optimally. Fig. 4.1-5 reflects usage of comparative data across Key Functions for supporting Decision making and Innovation.


Fig. 4.1-5 Comparative data usage for supporting Decision Making & Innovation

function

comparisonUsage to support decision

making Major Improvements / Innovations and Result

Ref.competitive / comparative Data

Source of comparative Data and Information

Operational Strategic

Operation & Maintenance (Thermal Coal & Gas and Liquid)

PLF, Plant Availability, Heat Rate, Aux. Power Consumption, Specific Fuel Consumption, Specific Oil Consumption, MTFB, Unplanned Outages

Power Infra line, Bloomberg, Lateral Recruits, Benchmarking, OEM, Consultants, Energy Audits (CII, TERI), CERC, Sigma Insights

Launch of Improvement Projects at Operating Assets, Theme based Idea Factory at Assets

Implementation of “Best In Class” Asset Management philosophy

Improvement in Plant Heat Rate (Fig. 7.1.5), Reduction in APC (Fig. 7.1.6), Increased Plant Availability (Fig. 7.1.4), Reduction in Plant Preservation Costs (Fig. 7.1.51)

Project Management

Project Management Processes, Design Engineering and Project Planning, Project Cost, Project Timelines

Previous Projects, Inputs from Consultants : McKinsey, Owners’ Engineers Reports, Central Electricity Authority, Central Board of Irrigation & Power, Indian National Hydro Power Association (INHA), International Water Power Magazine, Central Water Commission, Private Project Developers

Project completion within Costs, Timelines and with assured quality

GMR way of Project Execution Excellence

Bhavyatha Implementation at EMCO, GKEL, CTPP & Hydro: Bajoli Holi

HREmployee Engagement, Job Evaluation, Job Design, Employees’ wage

External Consultants - Gallup, Hay Group, Aon Hewitt

Employee Related policies & Benefits, Compensation Review

Succession planning, Man power Planning, Competency Development

Consistent and comprehensive documentation of Unique roles in the organization

EHS LTIFR, BBS AssessmentNIST, Sustainability Reports of other organizations

BBS Training to employees, Industry practice / standards Implementation

Strengthening of EHS Practices, Surpassing standards : Behavioral Based Safety

NEBOSH Training to Employees, Improvement in LTIFR (Fig. 7.3.26)

FinanceEBIDTA, PBT, PAT, Cost of Borrowing, Debt-Equity

Investor Meets, Annual Reports of other organizations

Performance Improvement on Costs, Revenues, Financial Closure

Debt Restructuring Debt Restructuring of GREL Project

IT

IT Spend (As % of Turnover), IT Spend per Employee, Systems Availability, Time taken for Recovery

Industry Standards

IT Systems availability, IT Operation Costs, Timely Closure of IT Helpdesk calls

IT Support to SBU Decision making

Improved availability of IT Systems, Reduction in IT Costs, Improvement in C Sat

Power TradingVolume of Power Traded, Tariff, Trading Margin

Power Infra Line, Short Term power Market study

Increased Revenue, Improvement in Trading Margin

Achievement of Power Trading AOP Targets

Cycle time reduction in billing, Power Trading Revenue (Fig. 7.1.31), Trading Margin (Fig. 7.5.14)

LogisticsOcean Freight , Freight Trends

Clarkson’s Market Report, Coal Spot, RS Platou Reports

Negotiating Ocean Freight for our Spot Shipments

Long term contract of Affreightment (COA) / Time Charter Rates (TC)

Reduction in Ocean Freight as compared to Spot Market freight

4.1 a3 cUSTOMER DaTaHow do you select and ensure the EffEcTIvE use of vOIcE-Of-THE-cUSTOMER data and information (including complaints) to support operational and strategic decision making and INNOvaTION?

As mentioned in 3.2 A4, Customer data (Fig. 3.1-1, 3.1-2 & 3.1-3) for Daily, Operational and Strategic impacts (Fig. 4.1-3) are mapped in SAP – SD and integrated with various reviews for driving improvements. The Customer requirements, findings, market study/research, satisfaction/ dissatisfaction feedbacks from different relationship mechanism (Fig 3.2-5) including Websites (GMRETL/State), Print media including Comparative industry data on pricing, volume and other service offerings is evaluated for making improvements thereby providing a scope for creation of improved offerings for all Customer groups for

supporting operational and strategic decision making. Analysis and Learning from Customer satisfaction and dissatisfaction surveys and feedbacks are shared across all employees in the Customer value chain for operational decision making and improvements.

4.1 a4 MEaSUREMENT aGIlITyHow do you ensure that your PERfORMaNcE measurement system is able to respond to rapid or unexpected organizational or external changes?

To keep the Performance measurement system current with business needs and direction, the relevance of the key measures are reviewed. As conditions change internally/externally, a new measure is added, or existing measure is dropped or targets of existing measures be revised. PMS (Fig. 5.2-3) is guided by SPP (Fig. 2.1-1). Risk Assessment and management


Fig. 4.1-6 Performance Review and Capability Analysis

An Action taken Report/ Progress Report forms the basis of ensuring that agreed actions are being taken and closed systematically. Management Assurance Group, nominated by the Board, is an independent body which carries out fiscal Audits, reviews DoP compliance for the sector, and identifies improvement opportunities to bridge gap between the Actual and desired Performance. E&I based on review outcomes are illustrated in Fig. 4.1-8

methodology (Fig. 2.2-3) helps to elicit risk perceptions on unexpected changes that might arise due to internal/external changes that have bearing on business and customers’ related performance. Strategic and operational functional reviews at Sector/SBU level, mid-term strategy reviews by GHB also encompass expected/unexpected internal or external changes in regulatory requirements (SERC/CERC guidelines), Policy matters in Power sector, Funding requirements, etc. These approaches lead to potential improvements, learning and innovation which are incorporated in our services, processes and business models through Performance Improvement system (Fig OP.17) Further, in order to improve the reach, range, and effectiveness of the Performance Measurement system, IT infrastructure, systems and processes are regularly reviewed. Implementation of SAP, BPC, Legal Portal, and Intranet help to keep our Performance Measurement system current and sensitive to unexpected changes.

4.1 B PERfORMaNcE aNalySIS aND REvIEWHow do you review organizational PERfORMaNcE and

capabilities? How do you use your KEy organizational PERfORMaNcE MEaSURES in these reviews? What aNalySIS do you perform to support these reviews and to ensure that conclusions are valid? How do you use these reviews to assess organizational success, competitive PERfORMaNcE, financial health, and progress relative to STRaTEGIc OBJEcTIvES and acTION PlaN? How do you use these reviews to assess your organization’s ability to respond rapidly to changing organizational needs and challenges in your operating environment?

The organizational Performance Measures and Capability Analysis (Fig.4.1-6) are reviewed at various levels. These reviews ensure focus on Strategic objectives and Action Plan accomplishment (Fig. 4.1-7).The conclusions made in the various reviews are validated in SBU/BCM/GHB reviews. Based on the Governance system (Fig. 1.2-1), the Board (GHB) and Committees of the Board, reviews the performance of the organization and progress against targets on half yearly basis, including safety.


Fig. 4.1-7 Review Forums to assess Organization Performance

Purpose Work System forum Perf. Measures analysis Donevalidations done with

Reviews to assess

Org. Successcompetitive Performance

financial HealthProgress on

SO’s

Strategic

Governance System

Board Meeting, GHB & GCM Reviews

Sector BSC Measures

Competitive: Competitive positioning, Competitors Financial & Operational PerformanceIndustry: Industry Performance and growth, Govt. policies, Industry Outlook, Technology shiftsStrategic: Sector SWOT, Scenario Analysis, Portfolio reviews, Cash flow analysis, Risk Reviews, Risk Mitigation Prioritization

GMR Group Performance, Industry average, Competitor performance, Consultants Reports, Govt. Reports (CERC, SERC’s), Publication, Bloomberg, Power Infraline

Meeting Vision & Mission, Institution Building, Long term sustainability

Profitability, Competitive Position - Installed Capacity, Growth Projections (New projects / Acquisition)

Revenue, Operation Expenses, EBIDTA, PBT, PAT, Gross Margin, Cash Flows, Debt Equity, Credit Rating, Cost of Borrowing

Plan Vs. Actual – Sector BSC Measures

Leadership System

Strategy Workshop, GHB/GCM/BCM Reviews

Org. Perf.

Leadership System

GCM Reviews / BCM Reviews / SBU Head Reviews

Sector BSC / SBU BSC Measures, AOP Targets

Divestment Scenario (ALAR analysis), Analysis of Performance on Strategic Themes – Liquidity, Profitability, Structure & Process, Org. Design, Job Evaluation, Analysis on Stakeholders needs, Customer Centricity, Operational Excellence, Employee Engagement, AOP Variance Analysis, Statutory, Legal, Ethics & Regulatory Analysis

Sector BSC, SBU BSC’s, Functional AOP’s, Consultants Study – (Hay Group, McKinsey Study), IMS Audits, Research Institutes / Govt. Bodies Reports (CII, TERI, CERC Guidelines)

Org. Sustainability, Org. Restructuring, Job evaluation & Job Design, CSR Beneficiaries, Diversity (Portfolio, Employees, Culture, Fuel, Geographical Location, Presence across value Chain), Employees Perception on Leadership, Engaged Employees, Job Enrichment

Project Execution Excellence, Operational Excellence, Customer Satisfaction, Employee Engagement, Men to MW Ratio, Cost of Generation, MTBF, LTIFR, Emission

Project completion within budgeted cost and time, Operational Expenses, Plant O&M Parameters (Heat Rate/APC/Sp. Fuel Consumption), Unplanned outage, PLF, Cost Reduction through Improvement Projects, Trading margin, Receivables, Billing cycle time

Plan Vs. Actual – SBU BSC’s Measures

Operation System

SBU Reviews, ORMs, Function Reviews

Cause & Effect Analysis, Pareto, 80:20, 5 Why analysis, OEM Diagnostic Studies, Energy Audits and Analysis, Process Reviews & Audits, Training Effectiveness, Employees Reward & Recognition

Customer System

Power Trading Reviews, PPA Reviews, ORMs

C Sat Analysis, Customer Acquisition Analysis, Customer Complaints analysis & Aggregation, Tariff Analysis, Short Term power market analysis, Peak Power Shortage analysis

Support System

Risk Reviews, S&D Reviews, BE&KM Reviews, BE Council, GMRVF Reviews, EHS Reviews

Risk Analysis (Sector/SBU/Plant-Project level), Safety Analysis, Emergency Preparedness Reviews, Sustainability Initiatives reviews, Community need Analysis, Carbon Footprint, Water foot print, Waste Management


Purpose Work System forum Perf. Measures analysis Donevalidations done with

Reviews to assess

Org. Successcompetitive Performance

financial HealthProgress on

SO’s

Daily

Operation System

Plant Head Reviews, Project Head Reviews

Asset, Project, Function AOP / A3

O&M Variance Analysis - Plan Vs. Actual (Daily + Month-to-date + Year-to-date) e.g. Heat Rate, APC, Sp. Fuel Consumption, Sp. Oil Consumption, Lead time to start, Inventory, BD, Root Cause Analysis, Near Miss Analysis, S Curves, Project Cost Curves, Contract Manpower availability AOP, Internal

Benchmarks, SLA’s, KPI’s, IMS Standards, KWP’s Measures, Compliance to Statutory requirements

On time Project Completion, Adherence to Dispatch Schedule (PPA Customers, Power Trading Customers, Closure of open points within timelines, Complaint Closure, Daily Fund Availability, Effective Training, Safe Work Environment

Project Completion timelines, Wage Parity with Industry, LTIFR, Plant Utilization, Plant Availability

Accounts payables, Accounts Receivables, Variance between Actual performance and AOP Targets

Performance of Functional AOP’s, A3 Measures and Goal sheets, SLA Parameters

Customer System

Power Trading Operation Reviews

Adherence to Dispatch Schedule and Load Variation Requests, Power Traded, Customer complaints

Support System

Logistics Review, HR Reviews (Operations), Finance Reviews (Treasury), Safety Reviews

Cash Flows and Fund transfers, Recruitment cycle time, Critical positions filled based on competency mapping, Freight Forecasting, Fuel Availability at plants, Coal Evacuation and Transportation, IT Systems Availability & Adherence to Maintenance Schedules, IT Helpdesk Calls (To resolve)

Fig. 4.1-8 E&I through Organizational Performance and Review

yearReview forum

Trigger Improvement Benefit

2012

PSBSC Reviews, BCM Review of Projects

Improvement Culture at Assets & ProjectsCIPs initiated at Projects & Assets involving large cross section of employees

Capex Optimization projects at CTPP (Fig. 7.1.92), Time Optimization projects at EMCO & GKEL (Fig. 7.1.94), Improvement in Plant Operational parameters at GPCL, GVPGL, GEL KKD (Fig. 7.1.93)

2013GHB, GCM Review

GMR Way of Project ExecutionEngaged McKinsey to develop GMR way of Project Execution Excellence

To enable on time completion of GKEL, EMCO & CTPP Projects

Focus on Asset Quality and LiquidityImplementation of Asset Light Asset Right Strategy

Divestment of HEG Coal Mines (South Africa), Island Power - Singapore

2014

GHB, GCM Review

Review of Organization Design, Need for Agile organization with quick decision making and Empowerment

Energy Sector was restructured in 8 SBUs / Functions having full-fledged support team in each SBUs, New functions evolved e.g. PPA Management Team

Quick Decision making (Revised RASCI & DoP), Empowerment, Focus on Customer Centric initiatives

Employee Job Evaluation and Job DesignA comprehensive Job analysis carried out by External Consultant - Hay Group

Consistent and comprehensive documentation of Unique roles in the organization

Systematic process to ensure Strategy Deployment

PDM & A3 Sheet driven Strategy Deployment across SBUs

Aligned and Integrated cascading of Sector BSC to SBU BSC’s

Policy Advocacy, Move Closer to Business, Enhance Relationship and Engagement with Govt. Agencies

Office Set up at Delhi, SBUs like Thermal Coal, Corporate Functions relocated to Delhi, Corporate Affairs strengthened

Quick Decision making, Improved Engagement with Govt. Agencies

Replicate learnings from Bull’s Eye(GKEL) at Hydro Projects

Developed a comprehensive Hydro Power Project Management Manual

To enable on time completion of Bajoli Holi Hydro power project within the budgeted cost.

BCM Review Focus on EHS ProcessesEHS policies reviewed and revamped Energy Sector EHS Framework Rolled out, Behavior based Safety program (NEBOSH Standards)

Improved EHS Processes at Assets & Projects, Improvement in LTIFR (Fig. 7.3.26)


yearReview forum

Trigger Improvement Benefit

2014

SBU Head Review

Make Thermal Coal Assets – Best In Class

Capability Center Initiatives & Roadmap, SAP Implementation, ORMs, Spare Management and Vendor Development, Process Focus, BE Practitioners program, Engaging Global Consultant to drive Operational Excellence

IMS Certification at EMCO & GKEL, Monthly ORM’s, SAP PM & MM Module Go live

BE ReviewAlign BE Initiatives with Business Priorities and Challenges

Annual BE Roadmaps for SBUs, Site Specific Idea Factory Themes launched, BE Council launched

SBU wise focus on BE, Improvement in Idea Generation and Employees involvement (Fig. 7.1.95)

4.1 c PERfORMaNcE IMPROvEMENT4.1 c1 BEST-PRacTIcE SHaRINGHow do you use PERfORMaNcE review findings to share lessons learned and best practices across organizational units and WORK PROcESSES?

The best practices arising out of Performance Reviews are discussed and shared with concerned Process owners. Concept of ‘Learning Capture format’ and ‘Technical Advisory’ has been launched in FY 14 by Capability Center in conjunction with BE Team, to methodically capture the Learning’s emanating from Operational Review Meetings for Thermal Assets. Specific Incidents, be it maintenance, or Operations related, endangering the desired Plant Performance are assigned to the respective Process owner for carrying out detailed root cause analysis, working out Corrective and Preventive Action, and capturing key Learning’s. These learning are uploaded on the KM portal and available to larger community for sharing and reuse, as appropriate. ‘Technical Advisory’ aids implementation of best practices across Thermal Assets. Similarly, based on the Gas & Liquid Performance Review findings, a community of Practice on Gas & Liquid has been initiated to share best practices being followed at Gas based Assets on Equipment testing, preservation and cost containment. Besides this, based on the directive from GHB, Initiatives like Project Paani and Bijlee have assumed emphatic significance at Group level on

sharing of best practices on Water and Energy conservation. Accordingly, EMCO has identified 11 Projects on Energy, and 2 on Water conservation which are being implemented with complete rigor and focus.

4.1 c2 fUTURE PERfORMaNcEHow do you use PERfORMaNcE review findings and KEy comparative and competitive data to project future PERfORMaNcE?

Schedule Performance Reviews (Fig. 4.1-7) are done to review functional and organization performance on Corporate/Functional BSC measures and initiatives which primarily focuses on the present, future and assess the requirements/gaps for the future performance.

4.1 c3 cONTINUOUS IMPROvEMENT aND INNOvaTION How do you use organizational PERfORMaNcE review findings to develop priorities for continuous improvement and opportunities for INNOvaTION? How are these priorities and opportunities DEPlOyED to work group and functional-level operations throughout your organization? When appropriate, HOW are the priorities and opportunities DEPlOyED to your suppliers, PaRTNERS, and cOllaBORaTORS to ensure organizational alIGNMENT?

“Our business in life is not to get ahead of others, but to get ahead of ourselves – to break our own records, to outstrip our yesterday by our today”

G Subbarao CEO Corporate Affairs

Improvement/Innovation is an important focus area for the organization which is also reflected and reinforced through our Strategic themes: 1) Profitability 2) Liquidity 3) Structure & Process. Sector BSC, SBU Heads – BSC & PDMs are accordingly aligned and cascaded down to Functional BSC/Individual Goal sheets/KRAs. Based on the findings of various Performance reviews (Fig 4.1-7 & 4.1-8) and other inputs, through its improvement process (Fig. 6.2-3), opportunities and innovations are created through following approaches: 1) Deployment of Annual BE Roadmaps for all SBUs 2) Provide Tools (7 STEP Methodology), Techniques (SLAs, SIPOC), and Team Approaches (CIP Teams) for effective deployment

of improvement Plans 3) Identify improvements in various processes – (Project Bhavyatha - Hydro/Bulls Eye – GKEL/EHS/IMS/Stage Gate Audits) 4) Roll out of Improvement Projects based on specific challenges/opportunities (17 CIPs across various SBUs were identified and rolled out in FY 14) 5) Sector wide Implementation of Idea Factory to focus on small improvements 6) Archive Improvement/Innovations learning into KM Portal ( Learning Capture, Technical Advisory, Learnings from past Projects – EMCO/InterGen/Island Power/ Financial closure) 7) Engagement with Global Consultants (Our Partners) like McKinsey, Hay to drive large scale organizational transformation programs. 8) Providing inputs to suppliers,


partners to ensure their involvement and support aligned with our business priorities.

4.2 MaNaGEMENT Of INfORMaTION, KNOWlEDGE, aND INfORMaTION TEcHNOlOGy

4.2 a DaTa, INfORMaTION, aND KNOWlEDGE MaNaGEMENT

4.2 a1 PROPERTIESHow do you manage your organizational data and information and knowledge to ensure the following properties?

• accuracy

• Integrity and reliability

• Timeliness

• Security and confidentiality

Tata Consultancy Services is our Business IT Partner in managing end to end IT Services / Solutions. Fig. 4.2-1 explains the processes to ensure properties of data, information and knowledge. Multiple checks on data, information and knowledge by concerned process / sub-process owners are carried out before the same is captured and shared. Access to all SAP applications is secured through SAP access control and single sign on. For non-SAP Applications access is ensured through user PERNR, Application log in IDs maintained in Active Directory and passwords. Original Business Critical Documents, Employee Records, Other critical Information (In both forms – Hard copies & Soft form), Engineering Information etc. are maintained and preserved in Electronic and Physical vaults as appropriate. Selected critical documents are scanned and uploaded along with other available soft copies on SAP DMS Server and EDMS (Fig. 4.2-2).

Fig. 4.2-1 Properties of Data, Information & Knowledge

Properties Data Information Knowledge

AccuracyReal time data captured through DCS/SAP/BPC, Maker / Checker concept adopted for all critical transactions

Creation and Approval through multiple levels (As per DoP), Periodic Audits by MAG, MIS Based on SAP / DCS / System generated reports

Validation by Domain Experts / Functional Heads, Multiple reviews across the level

IntegritySAP Master Data Control, Access controls managed and monitored through GRC module of SAP

Process Standardization and Transaction level authorization matrix.

Authorization of Knowledge Document on KM Portal, Process Flow mapped in SAP (Release Strategy)

ReliabilityScheduled data back up on SAP modules/BPC/KM Portal/gNet. Built in Redundancy of IT Software (Mailing Solution, SharePoint application, Business Critical Application), Hardware & Network Infrastructure, Business Briefcase (Back up for Individual Business Critical Information)

TimelinessSeamless availability of SAP Modules and other business critical applications across GMR Locations supported by state of art LAN / WAN / VPN. Multiple mode of communication for providing timely exchange of information – MS Office Communicator (Lync), VoIP, Video Conferencing

KM Portal Accessible across from within and outside of GMR Network (Over Intranet & Internet through VPN)

SecurityAntivirus, Firewall, Endpoint Security, Physical Security, Data Back-up (Differential & Full), Authorization, Password Control

Finger print based Access Control, Fire proof cabinets, Data Loss Prevention system, Digital Rights Management System

Data Loss Prevention system, Digital Rights Management System, Access Control

Confidentiality

Data transfer restriction on User PCs to avoid data leakage & virus entry in GMR Network (USB, Bluetooth, SD Cards), Encryption over WAN Links, End Point Encryption system, Intrusion Prevention & Detection System

Non-Disclosure Agreements, Multiple level Authentication based access controls at Data center, Server Farms, and Network, ISMS compliant to ISO 27001 and BS 25999

Non-Disclosure Agreements, Data Loss Prevention System

Fig. 4.2-2 Document Management System

Storage Document Types Impact

SAP DMS Server

Certificates/Clearances/Permissions/Licenses/Approvals, Company Information, Executed Documents, Deeds, Letters, Court Orders, POAs, LOAs, Receipts, Revenue Records, Lease Documents, Sale Documents, Title Certificates, Public Notice, Test Reports, Performance Guarantee Test Reports, Minutes of Meetings, Employee Records, Antecedents, Agreements, Addendums

Back up of Original Documents, Reduction in Paper Usage, Easy accessibility across GMR Project Sites, Assets, Corporate Office, and Remote Offices, Secured Data, ConfidentialityEngineering Document

Management Systems (EDMS)Concept Drawings, General Lay outs, Designs, Detailed Engineering Drawings, Revisions

4.2 a2 DaTa, INfORMaTION aND avaIlaBIlITyHow do you make needed data and information available to your WORKfORcE, suppliers, PaRTNERS, cOllaBORaTORS, and cUSTOMERS, as appropriate?

Fig. 4.2-3 explains the 5 Pillar Enterprise IT Service Model which is aligned to Group IT Philosophy and seamlessly supports Sector & SBU IT Objectives. In all areas of business, there is a growing demand to demonstrate that all enterprise

investments and resources can be tied directly to business value. The IT delivery approach is made to recognize that business value will always be measured in improved business performance, as perceived by the business stakeholders, there by moving towards “Demonstrable Metrics Framework” that is specific for each business units within GMR Energy. The Metrics Framework groups’ business value into three main classes as depicted in Fig. 4.2-4


Fig. 4.2-3 “5 Pillar” Enterprise IT Service Model

fig. 4.2-4 IT Metrics framework

Sr No. IT Support Expectations Measures

1 Run the Business This concept is about running IT Services efficiently to support Business NeedsReduced Cost of IT Operation, Increased Performance

2Support Business Growth

Visibly and measurably improving business operations resulting in higher degree of alignment to the business needs

IT Support to Expansion projects, New Acquisitions, Sustained Operational Improvements

3 Transform BusinessThis phenomenon is about new business horizons – in new business lines, business models and revenue streams

IT led Business Process Innovations

The required data and information is made available to various stakeholders as depicted in Fig. 4.2-5 and integrated using IT Applications like SAP, gNet (GMR Group Intranet), Shared Network Drives and connected through LAN (Local Area Network), WAN (Wide Area Network) and over Internet as mentioned in Fig. 4.2-5A.

Fig. 4.2-5 Stakeholders Information sharing mechanisms

Stakeholder Data and Information Type forums / Mechanisms

EmployeesIndividual Working hours, Leave Information, Benefits, Training, Learning & Development Modules, Compensation, Operational Information, Financials, Vision-Mission-Values & Beliefs, COBCE, Group & Sector News, Policies, External Knowledge

gNet, HR4U Portal, GCM Newsletter, BCM Communication, Town Halls, Skip Level Meetings, e-Circulars, Virtual MDC (eLearning Modules), Internet

CustomersDaily, Weekly, Monthly Power Sale / Buy Reports, Generation Reports, Availability, LoI’s, Order Confirmation

GMRETL Website, E Mail Reports, Fax

Suppliers / Partners / Contractors

Vendor Registration, RFP’s, RFQ’s, PO/SO, Invoice / bill Processing Updates, Vendor Payment

E Mails, Vendor Management System

Investors / Govt. Agencies / Lenders / Other Stakeholders

Annual Report, Project Progress, Specific Information sought, Performance ProjectionsGMR Website, Presentations, E Mails, Fax

Fig. 4.2-5A Integrated Data and Information System


Fig. 4.2-6 IT Solutions and ERP Modules

IT Solution / ERP Module

Key Deliverables

SAP FI/CO/TR These modules cater to all the requirements of Finance Departments to handle Key F&A Processes : Budget Management/Accounts Payable/Accounts Receivable/Asset Accounting/Treasury activities etc

SAP MM Module Caters to all activities of procurement including enquiries, quotes, ordering and Store management activities : Receipts, Issues, Stock Analysis, Reporting, Inventory Control

SAP SD Module This module handles all sales related activities of Energy Direct Sales, Trading, Scrap Sales, Consultancy Services Billing etc.

SAP PS Module Project Management Package of SAP catering from Concept to Commission, total integration with other SAP Modules – FI,CO,MM,SD, Reports on Project Progress, Cost Monitoring (Project / Package / WBS Level – Plan vs. Actual)

SAP PM ModuleThis module covers all the aspects of Plant Maintenance including the PM Schedule, Notifications, Maintenance Activities (Planned Maintenance, Preventive Maintenance, Breakdown Maintenance), Maintenance History, Trends, Maintenance Costs, Permit to work - Safety Work Permit

SAP HCM Module This module handles the HR Function of Organization Management, Employee Records, PMP Process, Payrolls, Recruitment, Time Management etc

SAP DMS Module Caters to the electronic storage for key business critical documents, e.g. Bids, Contracts, Negotiation details, MoM, Contracts, Copies of PO’s. Has inbuilt features of access controls and version maintenance

SAP GRC This Governance Risk Compliance module controls the access given to each user based on the roles performed by the individual within organization elements strictly following Sector & SBU DoP and RASCI

SAP BPCThis Business Planning and Consolidation application provides platform for Enterprise wide Budget Plan, Review, Forecasting, Approval, Monitoring and Archival. This has inbuilt features e.g. Revisiting and Adjusting expense plans, forecasting, Expediting book closures, enable sound decision making based on Data, trends, MIS

EDMS This Engineering Document Management System is a Network wide archival platform for all technical & engineering related information e.g. Approved Drawings, GA Layouts, PI Diagrams etc. Inbuilt features like access control, version maintenance

Compliance Portal This portal provides enterprise wide platform for all Operating Assets, Projects, Corporate Offices and other entities to Define, Adhere, Monitor including escalation of Compliance Adherence / Gaps

Legal Portal Details pertaining Legal Aspects across GMR Energy, Monitoring, Escalation, Resolution

Share Point Document Management System

A solution that enables project teams (Smaller groups) to keep track of various documents, also enables sorting, filtering, access control, versioning and easy retrieval of documents

Correspondence Management

Provides online track of correspondences like post, email, and phone. The incoming and outgoing correspondences section in the solution enables the admin to keep a track of the status of incoming as well as outgoing correspondences based on a unique correspondence ID

GMR EPC Contract Management System

Developed internally to handle the EPC contract and C&C Activities of inspection, Management, Certificate generation, Accounting of Material Receipts at various stages, Title transfers etc. The project Head can get all required progress report of the materials handled and the payment progress. This is a web based solution, provides a collaborative platform for cross functional teams engaged in Project EPC Activities

GMR Energy is foremost Integrated Energy Organization to implement all key SAP modules and other Customized IT Applications (Fig. 4.2-6) in record time across Project Sites, Assets, Corporate Office and Remote offices. This has resulted in ensuring seamless access to Enterprise ERP for enhanced

availability, accuracy, reliability, security, and confidentiality of Data and Information. Information on COBCE, Whistle blower policy and other statutory requirements are communicated to suppliers, vendors, partners in form of RFP, Agreements and PO’s/SO’s.

GMR website also provides information about the company, COBCE, Vision, Mission, and Values & Beliefs. Stakeholder information sharing is illustrated in Fig. 4.2-5. The Data and information requirements are evaluated in various reviews (Fig. 4.1-7).

4.2 a3 KNOWlEDGE MaNaGEMENT

How do you manage organizational knowledge to accomplish the following?

the collection and transfer of WORKfORcE knowledge

the transfer of relevant knowledge from and to cUSTOMERS, suppliers, PaRTNERS, and cOllaBORaTORS

the rapid identification, sharing, and implementation of best practices

the assembly and transfer of relevant knowledge for use in your INNOvaTION and strategic planning PROcESS.

Fig. 4.2-7 illustrates 5 Pillar KM Framework at GMR Energy which is aligned to Group KM Philosophy and supports Sector and SBUs Knowledge Management requirements revolving around key KM theme of “Capture, Share & Re-use”.

Fig. 4.2-7 “5 Pillar” KM Framework


Fig. 4.2-8 KM Platform at GMR Energy

Managing Organizational

Knowledge

Process to Use Knowledge

collect Transfer Impact / Improvement (Illustrative)

From Workforce

Knowledge Documents, Learning capture templates, Learning from Key Projects, Process documentation through employees past experience, Articles, Newsletter, Innovative Ideas relating to Site/ Function specific challenges

Knowledge Sharing Sessions/Power Talks, KM Portal, IMS Process Documents, Newsletter (SPARKLE), BE Council, KM Communities, Leader Led Sessions

Key learning’s compiled and shared EMCO, Island Power, InterGen, Implemented Ideas, Best Practice adoption (G&L, Thermal Coal), Project Bijlee & Project Paani Implementation

From CustomerScheduled & Unscheduled Interaction with Customers, Customer Feedback, Customer Complaint Management System

Dissemination of Key Information through Morning Meetings, Dept. Head Reviews, Communities of Practice

Opportunities explored in Short term power market, Regional Office set up at Hyderabad to move closer to the Customer base in Southern Region

From Supplier/Partner/Collaborator

Vendor Workshops, Supplier Presentations, Seminars, Technical literatures, Manuals, Media, Internet, Visit at Vendor’s Site

Best Practice suggested, Employee Training (O&M), Troubleshooting support

Improved Plant Availability, Operational Efficiencies

From External Consultants, Auditors, Banking Partners, Industry Visits

Statutory Audit Reports, Reports/Analysis from McKinsey, BCG, KPMG, AT Kearny, Accenture, E&Y, PwC, Deloitte, Hay Group, TQMS, Visit to Other Organizations, BE External/Internal Assessments

Global Best Practice presentations to GHB/GCM/BCM, SBU Heads, Sharing of BE Assessment outcomes

Job Evaluation & Job Design, Organization Restructuring (Sector philosophy to SBUs way of working), Operational Excellence Initiatives at Thermal Coal Assets, Project Execution Excellence – “Bhavyatha”, Stage Gate Audits, Improvement through closure of BE OFI’s

From Corporate Communication Team

Key Highlights from News Papers, Publications, Update from other Print & Electronic Media

E Mails to Specific group of Users, Presentations, Panel Discussions

Increased awareness on latest trends in Infrastructure space, Fuel Availability/allocation, Petition updates, Tariff Trends etc

For Rapid identification, sharing, and implementation of best practices

Inputs from Consultants, Best Practice Sharing across SBUs and other Sectors, ORM’s

Presentations made to GMR Leadership by Global Consultants, Best Practice contest, Leader Led Sessions (Capture-Share-Reuse) across Energy, DIAL, GHIAL, Highways

Behavioral Based Safety Assessment & training at Thermal Coal Assets by NIST (NEBOSH Standards)

For transfer of Knowledge for use in Strategic Planning Process

Environment Scan, Macro & Micro Economic Analysis, Industry & Sector Outlook, Competitor performance, Projection – trends

Strategic Planning Process, Sector & SBU BSC’s, LT & ST Plans, Deployment plans through PDM/A3 sheets/Goal sheets

Super Critical Technology used in place of Subcritical in CTPP project to leverage on higher efficiency and reduced emissions

For best Practice sharing various forums are used e.g. HR Council, BE Council, Safety Council, Interaction with Other Sectors (e.g. Sharing of DIAL BE Journey experiences by DIAL CEO), KM Communities – G&L, Short Term power market, Thermal O&M Community (being launched).

Illustration of E&I of KM Framework is given in Fig. 4.2-9.

Fig. 4.2-9 E&I of KM Framework

year Initiatives & Improvements Objectives

2012 KM Portal, Knowledge Sharing Sessions, Power Talks by Functional HeadsSharing of Knowledge, Discussion on Technical Topics,

Knowledge Repository

2013“KM Gyanotsav” at Assets & Projects, KSS, KM Chats, KM Reward & Recognition, KM Champions

at Sites

Sustain & Enhance Employee engagement in KM Initiatives,

Involvement of Senior Leadership in KM Initiatives

2014

KM Portal Restructured and Revamped, Implementation of Knowledge Capture Templates,

Technical Advisory, KM Communities – G&L, Short Term Power Market, Learning Capture from

previous projects (EMCO InterGen, Island Power), BE KM Council, Leader Led Sessions through

KM platform enabling cross pollination of Best Practices across various businesses

To position KM as Business Differentiator, aligning KM with

Sector & SBU objectives to deliver value

In order to capture Competitive knowledge, Best in Class practices and Global developments/trends, renowned global consultants are invited like McKinsey, PwC, E&Y, KPMG, BCG, Hay Group, Accenture, AT Kearny. Engagement with academia & other institutes like IIMs, TQMS, CII, TERI, GRI and visits to other companies and organizations are organized. For example, Senior Leadership Team of GMR Energy visited

power plants of peer companies like Adani, Sterlite Power to study Best Practices adopted in the areas of Plant O&M and other support functions.

Fig. 4.2-8 illustrates Process to manage organizational knowledge to collect and transfer knowledge from Employees, Customers, Suppliers, Partners, and other stakeholders.


KSS @ GEl KKD

KSS @ Hydro

KSS @ GvPGl

KSS @ cTPP

Fig. 4.2-10 IT Hardware, Software properties

attribute

Process used to ensure that this attribute is achieved for

IT Infrastructure – Hardware IT applications - SoftwarePerformance

Measures

Security

FY12 – Compliance to International

Standards

FY13 – USB Blocking, Fire walls, DLP

FY14 – Security Operations Center

FY12 – IT Audits, No NC’s FY13 – VAPD ConductedFY14 – Enhanced Application Security Control implemented

Compliance to IT Security Standards

4.2 B MaNaGEMENT Of INfORMaTION RESOURcES aND TEcHNOlOGy

4.2 B1 HaRDWaRE aND SOfTWaRE PROPERTIESHow do you ensure that hardware and software are reliable, secure, and user friendly?

For ease of management and maintaining availability and reliability, Group IT has standardized the hardware, software, databases, security, and development platforms. GMR Group hosts all application on its Central Data Center. Enterprise wide SAP and other critical applications along with Network segments, and Database are configured with multiple redundancy levels based on principle of “No Single Point of Failure”. The reliability, security, user friendliness and environment friendliness of IT Hardware, Software and Systems is mentioned in Fig. 4.2-10.


attribute

Process used to ensure that this attribute is achieved for

IT Infrastructure – Hardware IT applications - SoftwarePerformance

Measures

Reliability

FY12 – ISO 27001 for Data Centers and BS 25999

Certification for Business Continuity Management

FY13 – Implementation of BMC Helpdesk tool following ITIL

practice

FY14 – Improvement in IT Operations through ITIL Framework

FY12 – Application DR DrillsFY13 – Application and Infrastructure DR DrillsFY14 – Continued DR drills aligned to Enterprise Risk Management Framework

System Availability

User Friendliness

FY12 – Streamlined Helpdesk Operations

FY13 – Productivity Hub

FY14 – SLA based Service Delivery

FY12 – Customized Reports for UsersFY13 – Business Process AutomationFY14 – eMail enabled Approvals, Reports, Dashboards

Employee Satisfaction

Environment Friendly

FY12 – Virtualization of Servers leading to Energy Savings

FY13 – Increased Compute performance, reducing no. of

servers, hence Energy Consumption Reduction

FY14 – Refreshed SAP Landscape to reduce DC Server

Count

FY13 – EHS DashboardsFY14 – EHS Automation

Green Initiatives

4.2 B2 EMERGENcy avaIlaBIlITy In the event of an emergency, HOW do you ensure the continued availability of hardware and software systems and the continued availability of data and information to EffEcTIvEly serve cUSTOMERS and business needs?

To ensure seamless availability of IT Infrastructure during Emergency, GMR Energy has implemented the Disaster Recovery System and Business Continuity Plan (BCP). For all Critical Applications and Servers, 24X7 Support Contracts have been in place with IT Service Providers. Periodic back of all systems as defined back up procedure (Fig. 4.2-11) is carried out. All Critical applications like MS Exchange, SAP are implemented on H/W cluster with “Auto Failover” system

design feature to ensure high availability of user interfacing applications. All Application software media and license are kept at two different places, eliminating risk of damage to software in case of emergency. For primary use, Central Data Center at Bangalore is kept under operation. In case of Emergency at Primary Data center, all IT Operations and support seamlessly moves on to the Secondary Data Center (DR & Back up) at Chennai. A Copy of back up media is kept offsite to ensure the data security and timely retrieval in case of emergency. To ensure User Data availability, Business Briefcase concepts have been designed and deployed where in all users across GMR sites can access a dedicated Network Storage Space assigned to archive and seamlessly access Business Critical Information from anywhere.

Fig. 4.2-11 Emergency Availability of Data and Information

application In the event of non-availability of system at GMR Energy Recovery Point / Recovery Time

E Mail Resilience through Cluster, Hot Standby through DR 30 Mins to 4 Hrs

SAP Resilience through Cluster, Hot Standby through DR 30 Mins to 4 Hrs

gNet Resilience through Cluster < 60 Mins

Other Applications & User Data on

PC / LaptopBack up of Data stored on Central Storage 8 Hrs to 24 Hrs


5.1 WORKfORcE ENvIRONMENTOur HR Strategy as mentioned in Fig. 2.2-4 is formulated based on our Business strategy to support culture of high performance aligned with our Vision & Values, and to provide an effective, safe and secure working environment to all our Employees for achieving ST & LT organizational goals. With the aim of deploying Group’s revised “Asset Light Asset

5. WORKfORcE fOcUS

Right” business strategy, a multi-pronged approach focused on People, process & technology has been adopted, aimed at driving much greater efficiency and productivity across the sector. HR Council has been formulated in FY14 to set strategic direction and establish priorities for HR professionals across GMR Energy to support SBU objectives. This is being deployed through our HR system as depicted in Fig. 5.1-1.

Enhancing Employee Productivity & Engagement

Developing Internal Talent Pipeline

Manpower Optimization

Attracting right talent

To foster healthy climate, provide better facilities and to have regulatory compliance

Employee Communication

Retention of Key Talent, Employee

Engagement

Job Analysis, Link grades, designations, roles – (Hays Group)

Fig. 5.1-1 GMR Energy HR System

5.1 a WORKfORcE caPaBIlITy & caPacITy

5.1 a1 caPaBIlITy aND caPacITyHow do you assess your WORKfORcE caPaBIlITy and caPacITy needs, including skills, competencies, and staffing levels?

Assessment of workforce Capability and Capacity is done using the process given in Fig. 5.1-2. Manpower Planning, as part of AOP process involves – 1) Arriving at SBU wise requirements based on ST and LT business priorities, 2) Validation by Work design Team,3) Approval by GHB. This leads to formation of Human Capital Plan for BHR to initiate Hiring process and filling of approved vacancies. Workforce Capability needs are identified through a combination of methods ranging from PMP, IDP, Hay Competency Framework, O & M curriculum for Employees transitioning from Projects to O&M.

5.1 a2 NEW WORKfORcE MEMBERSHow do you recruit, hire, place, and retain new members of your WORKfORcE? How do you ensure your WORKfORcE represents the diverse ideas, cultures, and thinking of your hiring and cUSTOMER community?

The Recruitment process focuses on developing Talent pipeline. Lateral Entrants with specialized skill sets are hired from diverse sectors through applications received on the Company

web site, tie-up with Placement agencies, Internal Job postings and Employee Referrals. Placement of lateral entry recruits is done on the basis of organizational requirement emerging from ‘Sanctioned- Positioned-Vacancy’ analysis, keeping in view the qualifications, past experience and specialization. To ensure inclusion of Diversity in terms knowledge, gender, culture, region, Recruitment is done across the country and aligned to the role requirements. For instance, at Project sites, there is more emphasis on local hiring based on their fitment, skill level, and suitability for the role. Buddy system helps new joiners imbibe the organizational culture. Customized Induction program is designed based on geography and workforce group to assimilate the employees to new working environment. For. E.g. GMR Darshan for AVP & above employees. Deployment of Online Hire-craft Tool, introduction of pre-employment background verification has led to improvement in Recruitment cycle time and yield. Various mechanisms, processes and initiatives that have been put in place for higher retention of new joiners includes: (a) Competency based placement, (b) Well defined Job Descriptions (Hay Outcome), (c) Buddy to handhold and guide them (d) Periodic interactions with HR, (e) Career growth path indicating management expectations, (f) Cross functional orientation (g) Challenging projects, (h) linkage of remuneration with performance (i) Development initiatives, (j) Open communication


While our business was all set to take a major leap to the next level of maturity, we were confronted with multiple challenges of a volatile global economy, uncertainty in regulatory and policy environment, fuel shortages, poor financial health of DISCOMs and many more. Given these changes in the business environment and transition from project phase to operations phase, it was felt essential to align our organization structure to focus on speed of decision making, profitability, liquidity and capability building. So an organization re-design initiative was undertaken with McKinsey, based on the principle of Strategic Business Units (SBUs) to ensure:

• Tight linkage between structure and business portfolio, pointing towards high level of performance orientation• Sharp focus on accountability with complete ownership of cost heads and revenue heads• Flat and lean structure to ensure high sense of empowerment, quick decision making ability and decision points brought down to

where the action is • Matrix relationships (dual reporting) as key enablers and expert support; reporting to Group Corporate for support functions as

before • Robust governance mechanism to ensure appropriate checks and balances for key processes• Current strengths and capabilities preserved

The organization is structured into 5 SBUs and 3 major functions spread across multiple sites/locations. Hay Group has been engaged to carry out a comprehensive Job Evaluation study to ensure 1) Finalization of Job Descriptions for all the unique roles 2) Evaluation of Roles/Jobs across the Group 3) Finalization of Banding /Grading framework for the Group, including Technical and Managerial Bands 4) Carrying out Organization Efficiency Analysis 5) Assessing employees fitment to the roles through: a) CTR (Capability Talent Review) & Talent Q for GM, AGM & below. The workforce is organized into our own employees; contract workmen supervised by contractors’ supervisors, and outsourced services.

The individual members of our management team have significant experience in the power industry and have a strong understanding of the financial and technical aspects of our business. Our key managerial personnel have, on average, over 30 years of experience in the power sector. We invest substantial resources in training our workforce. We also have an in-house knowledge management program and invest extensively in environmental health and safety initiatives in our offices and at our power project sites. In addition, we have developed in-house engineering and project management teams dedicated to our thermal and hydroelectric power projects under development, which provide engineering and consulting services to such power projects. For instance, our in-house engineering and project management teams have undertaken the designing and engineering of hydroelectric power projects, such as Bajoli Holi, Alaknanda, Talong, Upper Marsyangdi-2, and Upper Karnali Power Projects. We believe these factors contribute significantly to our ability to attract and retain talent.

5.1 a3 WORK accOMPlISHMENTSHow do you manage and organize your WORKfORcE to achieve the following?

• accomplish the work of your organization

• capitalize on the organization’s cORE cOMPETENcIES

• reinforce a cUSTOMER and business focus

• exceed PERfORMaNcE expectations

• address your STRaTEGIc cHallENGES and acTION PlaNS

Fig. 5.1-2 Workforce Capacity & Capability Assessment Process

Energy Business Strategic Plan – Strategy

Workshop, SBU wise AOPs

ST Plan: Capacity – New Projects, Functional manpower plans, Capability – Core Competencies, Hay’s competency framework LT Plan: Future Competencies & Growth Plans

Capacity Gap Analysis Projects, Assets & Corporate -‐ Manpower requirements (Approved V/s. Vacant), Productivity Levels, Attrition, and Retirement trends

Capability Gap Analysis Leadership Competency Assessment, Operational Excellence Competency Gaps

HR Strategy – LT Plans & ST : Annual Manpower Plan Finalize based on Hay group recommendations, comparison with competition, and Group Companies (As approved by GHB)

Recruitment Plan

Outsourcing Plan

Job Rotation, Re-‐structuring & Rotation

Plan

Training Plan


Various aspects for managing and organizing workforce for work accomplishment have been mentioned in Fig. 5.1-3

Fig. 5.1-3 Organizing & Managing Workforce

aspect approaches Till fy12 fy13 fy14

Accomplish Work of Organization

Organization Structure which has evolved as per business needs

CEO driven Single Entity Structure (Key Functions – BD, Projects, Asset Mgmt., Support Functions)

Transitioning from Projects to O & MImplementation of SBU structure through RASCI, DOP, Creation of new work units for e.g. Capability Center, Renewables

Capitalize on the organization’s Core Competencies

Stakeholder Relationship

Corporate Affairs and Communication functioning separately

Reorganization of Corporate Affairs function to provide greater focus on Stakeholder Advocacy (CC merged with CA)

Merger of Corporate Secretarial and Corporate Legal

Relocation of Thermal (Coal) and Corporate Functions SBUs to Delhi to move closer to Ministry of Power, Regional offices to move closer to power trading customers

Project ExecutionCreation of PTS to facilitate Engineering, Quality, and Planning of Project Management

Introduction of Project Bhavyatha for ensuring Project Execution Excellence

Tie Up with PMI, Roll out of Hydro Power Project Management Manual , EHS framework, Learning Capture from EMCO, Island Power, InterGen etc

Operational Excellence

Best in Class framework at Gas & Liquid Assets, TPM based Projects, Enhancing Operational Efficiencies through CIPs

Containing Plant preservations costs for Gas Assets

Capability Center Roadmap, Implementation of IMS, BE Practitioners program at EMCO & GKEL (Thermal Coal Assets)

Reinforce A Customer, and Business Focus

Manpower planning and recruitment, Training, Performance Reviews

PPA with state Utilities, Key Account Management for Power Trading Customers, PSBSC Reviews

Introduction of PPA Management Team to create interface with State Utilities, and enhance relationship

Enhancing OA Customer base, Capitalizing on Opportunities in Short Term Power Markets, Operation Review meets for Thermal Coal Assets, SBU Reviews

Exceed Performance Expectations

PMP, Training, Employee Reward & Recognition, Special Incentives etc

Performance linked variable pay, Employee R&R – Idea Factory, SPOT Awards, Zeal Factory, CIPs for Projects & Assets

CIPs for Corporate Functions, Milestone based Incentives for Contract Employees at GKEL (Project Bull’s Eye)

Roll out of Annual BE Road maps, Appreciation letters to Individuals, Focus on Sustainability initiatives through GRI

Address Strategic Challenges and Action Plans

Cascading of BSC to PDM, A3, Individual Goal sheets as per PMP Guidelines

Up gradation of skill sets through CEPCOM, Knowledge sharing sessions

Project Reviews by BCM, GCM, Project War Room Reviews, Focus on ATRs

Introduction of PDM, A3 approach, Imp. of Hay Group Recommendations, P & L training modules for Plant Heads, Succession Planning workshop

5.1 a4 WORKfORcE cHaNGE MaNaGEMENTHow do you prepare your WORKfORcE for changing caPaBIlITy and caPacITy needs? How do you manage your WORKfORcE, its needs, and your needs to ensure continuity, prevent WORKfORcE reductions, and to minimize the impact of WORKfORcE reductions, if they do become necessary? How do you prepare for and manage periods of WORKfORcE growth?

The approaches for workforce change management are given in Fig 5.1-4. Recruitments, Transfers / Job Rotations /Enhancements and Training, build capacity and capabilities in the workforce to take on business challenges to achieve organizational vision. For e.g. P & L Training for Plant Heads, ELP for Key employees in GM & above cadre, Visit of O & M team to China for securing supply of essential spares. Employees are constantly provided with opportunities to handle more responsibilities and increase scope of work through Job enhancement, training, Job rotation, and nominations as BE Champions. To address workforce and business needs we constantly endeavor to up skill/retrain employees so that they can be redeployed for new roles. For e.g. Employees from Projects have been redeployed to O & M, and from PTS have been redeployed to Projects, Capability Centre based on their expertise and suitability for the role. During relocations basic requirements like travel, movement expenses, help for housing and children education are taken care of.

Fig. 5.1-4 Workforce Change Management

aspect approaches

Changing capability &

Capacity needs

- Transfers across locations and functions e.g.

- SPG Head to lead Renewables Portfolio, GKEL SBU Head entrusted with Dual Responsibility of Hydro & GKEL

- Implementation of Hay Group recommendations

Ensure continuity and

prevent work force

reduction

Redeployment of Employees from 1)Projects to O &M , 2) PTS to Projects & Transmission, 3) Engineering & Quality Assurance to Capability

Centre

Manage Periods of

workforce GrowthEmerging Leadership Program, P & L Training for Plant Heads, PMP


For e.g. Benefits extended to all Employees transferred from Thermal Coal Assets, and Corporate Functions, from Bangalore to Delhi office (based on specific business need). Performance issues are addressed through a PIP process which ensures that capability gaps are identified, specific support provided, and employees are retained. With the above initiatives, the main focus is to ensure that the organization is optimally staffed and hence the sanctioned manpower levels are adhered to.

5.1 B WORKfORcE clIMaTE

5.1 B1 WORKPlacE ENvIRONMENTHow do you address workplace environmental factors including accessibility, to ensure and improve WORKfORcE health, safety, and security? What are your PERfORMaNcE MEaSURES and improvement GOalS for each of these WORKfORcE needs? What are any significant differences in these factors and PERfORMaNcE MEaSURES or targets for different workplace environments?

GMR’s environmental, health and safety (EHS) governance structure is designed to help the organization realize its vision, implement its EHSQ policy, achieve its goals and help create long-term business value for the company. This includes contributing to GMR’s sustainability strategies and processes.GMR believes in integrating strong EHS management practices into its industrial enterprises across all business operations. Each business enterprise has been covered under stupendously articulated Corporate Environmental, Health, Safety & Quality (EHSQ) Policy. Sustainable practices reduce risks to life and property, and improve system efficiency which helps to conserve natural resources. When such practices become institutionalized, they reduce costs. Several unique schemes have been implemented to prevent pollution and conserve natural resources to achieve sustainable development.The Company is aggressively implementing national policies, regulation and objectives in EHS Management and Pollution Control measures. Continuous efforts are laid to build the strong foundation towards EHS excellence in all its operations.The governance system ensures the compliance to the EHS regulatory requirements through conducting regular EHS Audits. The organization works with a diverse group of internal and external stakeholders to address emerging EHS issues and related business challenges. Our governance framework and effective management systems enable us to ensure that management of risk and regulatory compliance are overseen at the highest levels of the company.With our Corporate EHSQ Policy as the foundation, implementation of EHS framework across all sites ensures the effectiveness of implementation of EHS systems and processes.Key Guiding PrinciplesTop management focus: • Organization leaders shall ensure establishment of EHS consciousness and culture, in all business activities• EHS shall be among the top most priorities of Business Leaders in Project Site or Operating Plants

clear accountabilities:• Businesses shall ensure a clear way of defining and cascading EHS expectations• During project execution it is most important to have highly trained workforce with excellent awareness on GMR EHS requirements,

also at contractor and sub-contractor level, including EPC contractors.• To ascertain the awareness/skill level of workforce, 3 days orientation program through some special agency competent in the

field of behavioral safety, shall be conducted.• Gate pass to the contract workers shall be issued based on their awareness certification. All contractor workers will be under

critical observation for their action/behavior on the job. Any shortcoming observed in respect of safety will necessarily send the worker to the Refresher/Re-certification course on awareness for at least 3 days.

EHS team:• Shall focus on core activities with technical expertise, analytical rigor, and shall have a strong working relationship with “the line”• Shall conduct audits, lead continuous process improvements and report out with analysis

line management: • Shall be responsible and accountable for overall EHS performance • Performance management systems must be tailored to achieve the objectives of EHS management.

EHS performance management: • Project / plant EHS team shall be vigilant about all EHS non-conformances, and act upon all areas of improvement promptly and

coach and train line staff and contractor staff. • Corporate EHS shall provide guidance and support to Project / Plant in all aspects, in achieving best EHS performance at all

times.

corporate sustainability focus:

• The entire team shall move towards fulfillment of the Corporate Sustainability requirements in terms of reporting, analysis, improvements and governance as per GRI G4 guidelines and National Voluntary Guidelines under our GMR Business Excellence framework


EHS Organogram

EHS team’s role includes audits, ensure 100% statutory compliance, disseminate Regulatory Updates, register eligible projects under CDM, implement Sustainability Initiatives such as Carbon Footprint, GRI, National Voluntary Guidelines, implement ISO 14001 and OHSAS 18001 management system, allocate budget and resources, implement Corporate Policies, Procedures and Systems, develop HIRA and SOP’s, investigate incident, prepare RCA and CAPA.

EHS management is governed by our EHS Beliefs, EHS Cardinal Rules, and EHS Policy guided by EHS framework for Energy Sector. GMR Energy has an IMS Policy aligned to standards of OHSAS 18001, ISO 14001, and ISO 9001:2008 Fig. 5.1-5 shows the Workforce Process for proactively addressing and improving Occupational health and safety. Hazard identification and risk assessment, surprise safety audits etc. are carried out on a periodic basis. Employees are encouraged to report Near Miss Incidents through the Safety awareness portal. The various processes for reinforcing safety orientation among all employees and Contractors include Safety Awareness, Induction, and Training. Safety Week is celebrated every year at Sites/Locations with participation of employees in Safety Quiz, Slogan, Poems, and Poster competitions. All the incidents and accidents are investigated by Accident Enquiry Committee (AEC) headed by senior leaders. Approved CAPAs are circulated to all concerned to avoid recurrence of similar type of accidents. Safety training for employees is carried out as per training calendar.

BCM - Energy

HEAD - S & D

SECTOR EHS HEAD

Safety Officer

Plant Head

SITE EHS HEADENVIOURNMENT OFFICER

Fig. 5.1-5 Workforce Process for improving Occupational Health & Safety


Besides this, In order to make work environment safer, following improvements have been made in Safety Management systems 1)Roll out of EHS framework for Energy Sector, 2)Introduction of Hydro Safety Manual and procedures, 3) Introduction of Safety Evaluation of Contractors at Pre-bid stage of awarding contracts 4) Behavioral based Safety program for Thermal Coal Assets. In order to ensure a healthy work environment, the furniture and ambience provided to the employees is ergonomically comfortable. Flex Boards on

Fig. 5.1-6 Approaches, Measures & Initiative related to EHS Workforce Change Management

attributesInitiatives till

fy11fy12 fy13 fy14 Measures

HealthPeriodic Health Check up

Periodic Health Check-up, Medical Camps – Eye camps

Ensure periodical medical health check-up for all employees and contract workmen

Ensure periodical medical health check-up for all employees and contract workmen

1) No. of Employees covered under Annual Health Check Ups (Fig. 7.3.34)

Safety

PEP talk/Tool Box Talks, Internal trainings, Daily and Regular Inspections by Site safety officer.

Audit by site safety team, 100% statutory compliance

Corporate Safety Manual, Implementation of Management Information system(MIS), Develop EHSQ Policy, Safety principles, Internal Safety audit protocol for all Assets & Projects, Accident/Incident investigation by Corporate team, Safety Week celebrations, Prepare & plan to conduct trainings as per Requirement, Basic Safety Qualification (BSQ) for all New employees

To achieve less than 0.35 LTIFR (measured as per IS: 3786) in FY13, Develop, Amend Legal Register and monitor Statutory Compliance ,Hazard Identification and Risk assessment(HIRA) and Job Safety Analysis(JSA) for Critical Jobs, Conducting periodical Mock drill in Projects & assets ,BBS(Behavioral Based Safety ) training Program to all the employees, Develop Safe Working Procedures, and Inspection Checklists

To achieve less than 0.2 LTIFR(measured as per IS:3786) in FY13, On-site Emergency preparedness Plan, Introduced Hydro Safety Manual & procedures,Fire Safety Manual, EHS Framework, Work initiated on having EHS Software for Measurement & Monitoring EHS performance across sites

1) LTIFR(Lost Time Injury Frequency Rate – Fig. 7.3.26) 2)Lost Time Injury Severity Rate (Fig. 7.3.27)3) No. of Incidents/Accidents (7.3.25)4) Increase in number of Safety Suggestions/ Near miss reportage (Fig. 7.3.28)5) Compliance to Statutory requirements 6) Number of Manuals, safe operating procedures, HIRA documents developed7) Number of Internal audits conducted8) Mock drills Conducted (Fig. 7.3.31)9) Compliance to Training Calendar (Fig. 7.3.21)

Environment

Adherence to Environment Compliances such as EC, CTE, CTO, FC, CRZ etc. CDM Registration of eligible projects and Carbon Footprint commenced

Carbon Footprint in Assets commenced (In house) CDM Registration of GVPGL

CDM registration of Solar, Wind, GREL, Bajoli Holi, Alaknanda

Corporate Environment Audit, Compliance Review, Sustainability Reporting Initiative, EHS Framework, Wildlife Conservation Plan of GIB in EMCO

1) Adherence to all statutory requirements (Fig. 7.4.6 to Fig. 7.4.15), Carbon Footprint Assessment (Fig. 7.4.17), and commencement of the Sustainability Journey

Security Security at Sites and offices is managed through RAXA , Our In - House Security Agency

1) No. of thefts detected/averted2) Recovery of cost of Equipment’s stolen in remote locations where security personnel are deployed 3) No. of new equipment’s installed

Fig. 5.1-7 Process for supporting workforce with benefits

Office Safety and safe work practices are installed at strategic locations for awareness. Annual health check-up is done for all employees. In view of the potential security threats, strict monitoring is done at all entry points. We have also installed CCTV at operating plants, Access Control system, and Visitor Management system. Security for all locations has been assigned to RAXA. Emergency mock drills are conducted regularly. The measures for all these factors with their KPIs and targets are given in Fig 5.1-6


Fig. 5.1-8 Policies & Benefits tailored to diverse workforce

EmployeesGKEl

KamalangacTPP Tilda

EMcO Warora

vPGl-GREl Rajahmundry

GEl Kakinada

GPcl chennai

Hydro Bajoli Holi

corp. Relations – Sites & corporate

Delhi & Mumbai Office

Privilege in vogue

Perquisites √ √ √ √ √ √ √ √ √Membership fees to Professional Institution, LTA, Mobile Expense reimbursement, Data Card policy

Medical facilities & Group Insurance

√ √ √ √ √ √ √ √ √

Medical Expenses Reimbursement, Group Mediclaim & Personal Accident Insurance, Annual health checkup. Family pension through Group Insurance Scheme

Staff Welfare programs

√ √ √ √ √ √ √ √ √GCM outstanding achievement award, KM, Marriage gifts, children ed. assistance, Foundation day, Ex-gratia, Spot award

Leave Policy √ √ √ √ √ √ √ √ √ Leave Entitlements

Travel Policy √ √ √ √ √ √ √ √ √Domestic, Foreign, Local conveyance reimbursement

Hardship Allowance

√ √ √ √ For Remote sites/locations

Township Policy

√Family Accommodations, Recreational facilities in vicinity of the Plant

City Compensatory Allowance

√ To compensate for higher cost of living

Project Bonus √ √For Projects under construction to drive completion within Budgeted cost and time

Uniform Allowance

√For Corporate Relations interfacing with Govt. Machinery/ Regulatory offices

Transfer Policy √ √ √ √ √ √ √ √ √Transfer/Relocation, Temporary transfer, Deputation

5.1 B2 WORKfORcE POlIcIES aND BENEfITSHow do you support your WORKfORcE via policies, services, and benefits? How are these tailored to the needs of a diverse WORKfORcE and different WORKfORcE groups and SEGMENTS?

In line with market practices and changing economic dynamics, the Group continually reviews and benchmarks its HR policies to support Employees with various services and benefits and ensure their optimal utilization. Process for supporting workforce benefits is shown in Fig. 5.1-7. HR Policy manual comprising of various HR policies, processes and formats is available on gNet (Company Intranet). These Policies are

uniform across all sectors (Fig. 5.1-8); however location specific policies are introduced to facilitate the employees posted at various locations. For. E.g. City Compensatory Allowance has been introduced lately for Employees posted at Mumbai and Delhi.

These policies are regularly visited and modified to incorporate the changing needs and aspirations of employees through HR Council at Group level. Company is sensitive to various sectorial, functional, geographical needs and provisions are incorporated to cater to such specific needs in terms of additional facilities and benefits like, Hardship leave, Guest house, transport facilities, winter uniforms etc.

5.2 WORKfORcE ENGaGEMENT

5.2 a WORKfORcE PERfORMaNcE

5.2 a1 ElEMENTS Of ENGaGEMENTHow do you determine the KEy elements that affect WORKfORcE ENGaGEMENT? How do you determine the KEy elements that affect WORKfORcE satisfaction? How are these elements determined for different WORKfORcE groups and SEGMENTS?

Fig. 5.2-1 lists various formal and/or Informal methods for capturing inputs for Satisfaction and Engagement. We identify key factors which affect employee engagement and satisfaction by conducting study which involves Focused Group Discussions across the organization, an external third party survey, inputs from exit analysis; skip level meetings, Town Halls, HR Council, HR Connect, etc. For contract workmen an in-house study at respective sites/locations for determining the factors for engagement and satisfaction is conducted.


Fig. 5.2-1 Methods for capturing inputs on Engagement / Satisfaction

level1 segmentation

formal approach to take inputs Informal approachMeasures or indicators tracked to verify

workforce engagement /satisfaction

Senior Management

(M5/S9 onwards)

SLT , Gallup Survey, Skip Level Meets, Exit Interviews, Town Hall, PMP, Performance Dialogue, BOD, Satisfaction survey/Feedback on specific HR Processes

Daily interactions, Senior Leadership visits

EEEC Survey, Managers scores (Fig. 7.3.18)

Middle Management

(M7 to M5/S10) Skip level meetings, Town Halls, Department Meetings, Exit Interviews, Dipstick Engagement survey / Feedback on specific HR Processes

Daily interactions, Senior Leadership visits, Buddy discussions, R&R Sessions

EEEC Survey (Fig. 7.3.18)

Operational /Support staff (A1 to A4)

Skip level meetings, Town Halls , Department Meetings , Exit Interviews

Daily interactions, Senior Leadership visits, Buddy discussions, R&R Sessions

EEEC Survey (Fig. 7.3.18)

5.2 a2 ORGaNIzaTIONal cUlTUREHow do you foster an organizational culture that is characterized by open communication, HIGHPERfORMaNcE WORK, and an engaged WORKfORcE? How do you ensure that your organizational culture benefits from the diverse ideas, cultures, and thinking of your WORKfORcE?

Our culture is driven by values and is evident in the transparent and participative team behavior which has resulted in an environment of high performance and accountability. In FY 13, In house EEEC survey (Employee Engagement & Ethics Culture) was conducted to understand elements of organizational culture and the employee value proposition. This was validated with the leadership group of the organization,

followed by detailed Action planning by HOD’s with their respective Teams to address the survey findings. Transparency is characterized by open communication which results from role clarity whereby the individual goals are derived from corporate goals through SPP, multiple review mechanisms (Fig. 4.1-7), two way communications by senior leaders (Fig. 1.1-10), Employee Engagement is driven through various Business Excellence initiatives like CIPs, Theme based Idea Factory, Implementation of BE Roadmaps for SBUs’, R & R at Group and Sector level. Besides this, Forums like HR Council & BE council also provide inputs for Workforce performance and Engagement. Intranet provides ready information to our employees on access to policies, important events in the company, ESS, Idea Factory Portal, KM Portal (Fig. 5.2-2)

Diversity—Participative team behavior is fostered through creation of cross functional forums such as Bull’s Eye at GKEL, Bhavyatha for Hydro, ORM, Ash Disposal, Coal blending which are actively involved in the decision making process based on their diverse expertise, thinking and experiences of each function. Employees who are recruited locally across regions foster better understanding of the market and cultural nuances. The inclusion of participants in these forums is reviewed from time to time. In addition CIP Teams with cross functional

representation are formed across sites/locations to tackle business issues and for Continual Improvement (Fig. 7.1.92-93-94). To formalize CIP Team formation, a CIP policy, specifying roles and responsibilities of Team Lead and Members, is in place. In the current year, Employee Engagement Initiatives have been categorized under 5 main pillars of Gallup Q-12 survey viz. Alignment, Motivation, Involvement, Communication & Development.

“Every job is a self - portrait of the person who does it! Autograph your work with Excellence!”

avinash Shah President - Coal Assets


alignment Initiatives

Motivation Initiatives


communication Initiatives

Development Initiatives


Fig. 5.2-2 Forums and Practices Supporting High Performance and Workforce Engagement

Sr. Noforums/Practices

PeriodicitySenior

leadersWorkforce

GroupsSupporting High Performance

Supporting Workforce Engagement

Outcomes

1 Town hall meets Half YearlySBU Heads, Plant Heads

All Employees

Sharing of SBU Head’s views, Feedback from Employees, Recognition of performance, Organizational Announcements, Sharing of Company expectations, Strategy & Financials

Better understanding and involvement in the purpose of the company, Fostering a feeling that employee’s opinion counts, Appreciation for good work to act as role model

Fig. 7.3.18, Improved Communication Effectiveness

2

Review Forums (SBU Reviews, BCM Reviews, GCM Reviews, GHB Reviews)

Monthly/Quarterly/Half yearly

GHB Members, GCM, BCM, SBU Heads, Plant Heads

Functional Heads, Key Management Members

Organizational Success, Competitive performance, Financial Health, Progress related to Strategic Objectives

Co-creation – Participation in strategy formation, action planning, Communication – Clarity on objectives, plans / revised plans, Appreciation of good work and sharing

Fig. 7.4.1, Fig. 7.1.92-93-94-95-97

3Reward & Recognition

GCM, BCM, SBU Heads, Plant Heads, Dept Head

Eligible employees under different Employee R&R Policies

Rewards and recognizes performance and role model behavior

Reinforcement of behavior demonstrating company values

Fig. 7.3.18, Fig. 7.1.92-93-94-95-97

4Skip Level Meetings

Half YearlySkip Level Managers

All Employees Appreciation for good workInteraction with Leadership team, encouraging frank, two way communication

Fig. 7.3.18

5 BCM Newsletter Half Yearly BCM All EmployeesTeam achievements, Progress made on critical milestones

Outlook on Business Challenges, priorities, Directions, Expectations and opportunities

Fig. 7.3.18

6

In-house magazines – SPARKLE, PRERNA, Dakshin, Environment Newsletters, Secretarial Newsletters

Monthly, Quarterly

Functional Heads

All EmployeesIncludes achievements of important milestones to motivate other teams

Covers write up on engagement, events organized, provides information on employee’s personal achievements, fosters understanding of policies

Fig. 7.3.18

7 BE Council Monthly Head S&D Site BE SPOCsPlatform to share achievements in BE Initiatives, Best practice sharing

Sets priorities for Continual Improvement, Best Practice sharing

Fig. 7.1-92 to 97

8 HR Council MonthlyCorporate HR, CHRO

UHR Members Best Practice sharingSets priorities for HR Professionals to support SBU objectives

Fig. 7.4.1

9 Annual BE Nites Annual

GCM, BCMs, CEO of Group Companies

All EmployeesRewards & Recognition for Best Improvement Projects, Felicitation of involved members

Interactions with GCM, BCM, CEOs of other sectors

Fig. 7.1-92 to 97

10Foundation Day Celebrations

Annual

GCM, BCMs, CEO of Group Companies, Entire Leadership Team

All EmployeesReinforces commitment to company

Caring attitude and platform for employees to network and get to know each other better, fostering team building, involves families of employees, various annual awards are given

Fig. 7.1.92 to 97

11PMP Roadshows

AnnualCHRO, HR Team

All EmployeesReinforces culture of high performance

Fosters understanding on policies Fig. 7.3.18

5.2 a3 PERfORMaNcE MaNaGEMENTHow does your WORKfORcE PERfORMaNcE management system achieve the following?

• support HIGH-PERfORMaNcE WORK and WORKfORcE ENGaGEMENT

• consider WORKfORcE compensation, reward, recognition, and incentive practices

• reinforce a cUSTOMER and business focus and achievement of your acTION PlaNS

GMR Energy has an E Enabled PMP system with an objective to accurately plan, review and evaluate performance (Fig. 5.2-3) and to identify individual development needs for career growth and succession planning; incentivize good performance. Based on 3 year rolling Strategic Plan for the Sector, Annual Operating Plan for SBUs is finalized, along with BSC for the Sector. In FY 13, to strengthen the strategy deployment process, Policy deployment Matrix, and A3 Plans were introduced at SBU Head level to detail out clear Goals, Measures, Targets, Action Plans, Timelines, Responsibilities for achieving Strategic objectives.


Based on the Sector BSC and PDMs, Individual Goals and KRA’s are identified for all Employees in the Organization. In order to enhance Performance driven culture within Support staff (A1 to A4), from FY 13 , Goal based Performance Assessment has been introduced besides behavioral attributes. PMP carries 75 % weightage on Achievement of Goals, 15 % weightage on assessment of values & beliefs, 10 % weightage on assessment of self-development and training. Every Goal, for completion, is measured in terms of timelines, Cost, Quality, and Morale.

Fig. 5.2-3 Performance Management System at GMR Energy

Performance Assessment Guidelines for meeting targets, achieving stretch targets, exceeding targets and introducing break through improvements are clearly outlined as part of PMP to support high Performance and ensure Customer & Business Focus (Fig. 5.2-4, 5.2-5). Formal midyear reviews provide feedback to Appraisee on whether they are “on-track/off-track” against set targets. Performance Review Dialogue between the Appraisee and Appraiser ensures clarity of roles and responsibilities, generates alternatives for dealing with various problems, and sets goals for further improvement. The overall rating awarded to an individual during the Annual

Performance Review takes into account 1) Performance against assigned KRA’s 2) Additional Tasks – Engagement in activities beyond the assigned goals (Participation in CFT’s, CIPs, IMS deployment) 3) Core Values 4) Potential (Current & Higher positions) 5) Training & Developmental needs 6) Job Rotation Aspirations, thus ensuring high Engagement. Compensation for Employees has 2 major components – Fixed and Variable. The Variable Component (Performance Pay) is based on individual performance, Sector Performance and Group Performance. Compensation benchmarking studies are carried out at Group level to ensure competitive compensation to our employees. From FY 14, the Overall Rating system in the PMP has undergone a change from 4 point scale to 5 point scale to ensure finer distinction of Performance. The performance management process of the group provides an opportunity for employees to raise any PMP related grievances related to rating, compensation and promotion. Grievances raised by the employees after issuance of annual PMP letters are effectively examined and communicated to the employee, in the shortest possible time frame, in a fair and transparent manner.

Fig. 5.2-3A PMP Grievance Management Process

Fig. 5.2-4 R&R for high performance

Category compensation Recognition Reward

Employees on Roll Variable pay based on performanceBE Nite, Appreciation letters during Town hall

meets, Dept Meet

Best CIP at each site, Idea Factory : Highest

individual contributor & Leading Site, Spot

Award, Employee of the month, Zeal Factory, I

Value U (Fig. 7.3.8)

Contract Workmen Daily wage Safety R&R – kit for daily use

Fig. 5.2-5 PMP Reinforcing Innovation, Customer & Business Focus

factors supported by PMP to reinforce

PMP Process used to achieve these factors

Risk taking for innovation Improvement Projects (CIPs), Idea Factory (Fig. 7.1.92-93-94-95)

Customer Focus Customer perspective in BSC (Fig. 7.4.1), Operational Excellence initiatives, IMS deployment

Business FocusAlignment of KRAs through cascading from BSC (Fig. 7.4.1), BSC Reviews, R&R, Performance linked Variable pay, Incentives

Achievement of Action plans


Employee R&R @ EMcO

cTPP - leading site with maximum ideas

Employee R&R @ GPcl

Employee R&R @ GKEl

Employee R&R @ GEl KKD

Employee R&R @ GvPGl

5.2 B aSSESSMENT Of WORKfORcE ENGaGEMENT5.2 B1 aSSESSMENT Of ENGaGEMENTHow do you assess WORKfORcE ENGaGEMENT? What formal and informal assessment methods and MEaSURES do you use to determine WORKfORcE ENGaGEMENT and WORKfORcE satisfaction? How do these methods and MEaSURES differ across WORKfORcE groups and SEGMENTS? How do you use other INDIcaTORS, such as WORKfORcE retention, absenteeism, grievances, safety, and PRODUcTIvITy, to assess and improve WORKfORcE ENGaGEMENT?

The primary method for determining employee engagement is through Engagement Surveys carried out by External Agency / In-house. The survey covers all segments of employees and determines the extent of engagement and satisfaction at each level. An In-house Employee Engagement & Ethical Culture survey was conducted in FY13, and based on the survey results and findings, action plans have been formulated through a collaborative approach. Other approaches for assessment of workforce engagement includes Skip Level Meetings, Town Halls, Departmental Meetings, BoD Meetings, Exit Interviews, and Feedback from HR council, BE Council, Induction Program, Customer Feedback Surveys. Participation


levels of employees in various organizational initiatives like Bhavyatha, CIPs, IMS, KM, Safety, Idea Factory, is also an important indicator of Employee Engagement. In addition to the formal and informal methods, lag indicators like Employee Productivity, Absenteeism, Grievances, Safety & Employee Attrition rates are used to gauge the Employee Engagement. The sensitivity towards safety is established through Safety Council meetings; large participation in Safety awareness sessions etc. and the impact is evident from the increase in reporting of Near misses / unsafe situations (Fig 7.3.28, 7.3.30). Employee Grievances are captured through PMP, Skip Levels, Open Forums like Town Halls, HR Councils. Data from these sources are collated, analyzed and necessary actions as deemed fit are initiated. Voluntary exit of employees and analysis of the reasons for exit provide indicators regarding Employee’s dissatisfaction. Even though absenteeism is negligible, it is tracked.

5.2 B2 cORRElaTION WITH BUSINESS RESUlTS

How do you relate your WORKfORcE ENGaGEMENT assessment findings to KEy business RESUlTS reported in category 7 to identify opportunities for improvement in both WORKfORcE ENGaGEMENT and business RESUlTS?

The workforce engagement has an impact on the achievement of organizational goals, and there by on the business results apart from the attrition rate (Fig. 5.2-6). We have a structured method of analyzing EES results and launching interventions that enhance the engagement and satisfaction levels. Efficacy of these approaches is validated by improvement in business results.

Fig. 5.2-6 Correlation of Engagement results with Business Results

HR Objective HR Initiatives HR Result Business Result

Employee EngagementImplementation of EEEC Action plans Engagement Score

LTIFR (Fig. 7.3.26), Cost

Reduction (Fig. 7.1.92-93-

94), Sale of Power (Fig.

7.1.31), Equipment outage

(Fig. 7.1.9, Fig. 7.1.23)

CIPs, Idea Factory, CFTs, KM Initiatives Employees’ involvement in Improvement Initiatives

Capability & Capacity Building

L&D Initiatives Training coverage and effectiveness

Career Progression Job rotation, IJP

Hiring Recruitment Cycle time and effectiveness

Workforce Safety BBS (NEBOSH), Safety Training Safety Training man-hours

Welfare Annual Health Check-up of Employees % coverage of eligible employees

Employee Welfare events organized at Sites

& OfficesEmployees' perception on welfare events

Business ExcellenceBE Practitioners’ for Senior Leadership at

Thermal AssetsImplementation of BE Practitioners’ action plans

5.2 c WORKfORcE aND lEaDER DEvElOPMENT

5.2 c1 lEaRNING aND DEvElOPMENT SySTEMHow does your lEaRNING and development system address the following factors for your WORKfORcE members and leaders? • your organisation’s cORE cOMPETENcIES, STRaTEGIc

cHallENGES, and accomplishment of its acTION PlaNS, both short-term and long-term

• organisational PERfORMaNcE improvement and INNOvaTION

• ethics and ethical business practices

• cUSTOMER fOcUS

• their lEaRNING and development needs, including those that are self-identified and those identified by supervisors, managers, and SENIOR lEaDERS

• the transfer of knowledge from departing or retiring WORKfORcE members

• the reinforcement of new knowledge and skills on the job

The development and learning needs are identified from the long term goals, strategic challenges, short term focus areas, and training needs identified during Annual Appraisals. Our

Learning and Development process (Fig 5.2-7) for workforce is focused on supporting high performance through various approaches driven by HR, Energy Development Center, BE, EHS, QA/QC along with subject matter experts, training consultants, tie-ups with institutes (IIMs) for training and developing leadership pipeline (Fig. 5.2-8). Fast track high performing employees are shortlisted based on elaborative selection process annually. They are given the opportunity to pursue a customized Emerging Leaders Program (ELP) staggered over a period of one year at Indian Institute of India (IIM) - Kozhikode, Kerala. The third batch was launched on Dec 10, 2013. The batch concluded in April 2014.


Learning and Development programs are designed so that the core competencies in areas like Project Management, and Operational Excellence are strengthened and employees at all levels are ready to face strategic challenges and achieve business goals. For e.g. In FY 14, we enrolled as member of Global Executive Council with PMI so as to bring in outside-in view, and external expertise of PMI for driving Excellence in Project Management Processes. Other example is of

O & M Training organised for O & M staff in China. Tacit knowledge from departing employees and superannuating employees is captured at the time of “handing over” through exit documentation along with discussion with departmental colleagues and/or briefing of the successor prior to the employee’s departure. In case of retirements, a successor is assigned well in time to grasp the key learning’s.

Fig. 5.2-7 Learning and Development System

Fig. 5.2-8 L & D Mechanisms

factors Employees Including leaders contract Workmen Outcome

Core Competencies, Strategic Challenges, Strategy Accomplishment

Bhavyatha Workshops, Leader Development Programs, Emerging Leaders program, Project Management, Negotiation skills, 360 Deg. Evaluation, Job rotation/Enhancement, Sustainability Training, P&L Training for Plant Heads, BSC-PDM-A3 sheet workshops, Training by OEM (SEPCO, SEC)

Others – O&M Training, SAP Training, Virtual MDC, Technical/IMS Training for sites, Process Training, Quality, In-house Behavioral & Team building training, Behavioral Competency framework (4 Pillars & 11 Competencies), Member of Global Executive Council with PMI, Engagement with global consultants, Participation in Global Summits (World Economic Forum etc.)

Quality & Safety training through Tool Box Talk, Class room training, Safety Induction Training

Training Effectiveness (Fig. 7.3.20)

Performance Improvement & Innovation

Leaders – External Workshops, Engagement with Global Consultants, Visits to Power plants of Peers

Others – BE Interventions – BE Practitioners workshops, CIPs, Idea Factory, Quality Framework – IMS, Knowledge Capture, Share & Reuse, Small Group Activities

Quality Tools, Small Group Activities

Process improvements/CIP benefits (Fig. 7.1.92-93-94), KM benefits (Fig. 7.1.96)

Ethical PracticesInduction, Mandatory clearance of COBCE through online trainings, Ethic Training for Location Ethic Counselor

Awareness PostersEthics Results (EEEC) (Fig. 7.3.18) , No. of Ethical concerns (Fig. 7.4.2)

Customer Focus Customer Centric Trainings, Customer Workshops -Customer satisfaction (Fig. 7.2.1, Fig. 7.2.6)

Personal Development Plans

Training need identification during Annual Appraisal - Training Effectiveness (Fig. 7.3.20)


5.2 c2 lEaRNING aND DEvElOPMENT EffEcTIvENESS How do you evaluate the EffEcTIvENESS and efficiency of your lEaRNING and development system?

The efficiency of the learning and development system is evaluated based on the training need completion, PDP

compliance. Reaction feedback is a mechanism used across

geographies for immediate effectiveness monitoring. 360 degree

feedback and Talent Reviews help evaluate the effectiveness

of Leader development initiatives. Where e-learning modules

are being used they are generally accompanied by a self-test

which enables instant feedback.

5.2 c3 caREER PROGRESSIONHow do you manage EffEcTIvE career progression for your entire WORKfORcE? How do you accomplish EffEcTIvE succession planning for management and leadership positions?

Annual appraisal process covers discussion on Employee Aspirations and helps in sketching out developmental plans

accordingly. All the open positions within the organization are notified through email for helping employees make career choices. The opportunities for employee’s development / career enhancement are provided when the Company ventures into new geographies, undertakes new projects or expands the role of existing functions. Employees are also offered opportunities to work in Cross Functional Teams, continuous improvement initiatives, etc. Entry level recruits are rotated across the organization, covering all major functions to aid in their development. Employees also get an access to opportunities within GMR Group. Enablers for career progression include Job Rotations, Promotions, and Special Assignments, Deputation and further education support and multiskilling of employees. Employees are provided with opportunity to move horizontally and develop new skill sets. Career progression and succession planning for senior leadership team includes interventions like 360 degree feedbacks, IDP and Emerging Leaders Program. Middle management employees are provided with training and development inputs like IDP, On-the-job training and based on their performance, appropriate career advancement moves are initiated. Employees in support staff cadre are also provided with opportunity to move into line functions if they have upgraded their qualifications and skill sets (Fig. 5.2-9).

Fig. 5.2-9 Succession Planning Process

factors Employees Including leaders contract Workmen Outcome

Transfer of KnowledgeKnowledge Transfer through Handover processes by departing employee Knowledge Sharing Sessions, KM Communities, Learning Capture, Leader Led Sessions

On the job training KSS (Fig. 7.1.97), KM Community Meets

Reinforce New Knowledge/Skills

Employees attending external trainings/seminars encouraged to share their learning with other employees, In-house modules on Behavioral training, Online courses through Virtual MDC, On the job training

Class room & On the job training

No. of Employees covered under Virtual MDC (Fig. 7.3.1 to Fig. 7.3.5),

SafetySafety Training, Safety Inductions, BBS & PPE Trainings, Mock Drills, Emergency Preparedness Training, First Air Training

Safety Training modules for contract workmen, Tool box training

No. of Safety Training (Fig. 7.3.32), Employees covered, No. of Accidents (Fig. 7.3.25), Near Miss (Fig. 7.3.28), Safety suggestions implemented

Climate Change Sustainability Training, GRI G4 Awareness Awareness postersNo. of Employees covered under GRI Awareness sessions

Effectiveness of career progression is tracked by Employee perception score, Attrition levels in talent group, Employee’s participation in employee growth initiatives and Number of job rotations. Critical positions across SBUs and Functions are identified through Talent review process. Accordingly Step-in successors, Long-term successors and Transition Managers are identified and mapped to critical positions. Gaps between present and desired competency levels are addressed through Development

Center and Professional Development Dialogue approaches. The effectiveness of succession planning is tracked through various parameters like - % of key positions filled internally, Ratio of successors for a critical position, Employee perception on effective succession planning, Number of talent employees covered under ELP/LDP programs.


which will use external resources?

The overall work system consists of Leadership & Governance, Operation, Customer and Support systems. In the reviews (BCM/GCM/GHB) and workshops, the need for changing the work systems is assessed based on changing requirements of the stakeholders, including Environmental changes – Regulations, Business model, and Technology. In FY 14, taking into consideration multiple challenges like Uncertainty in regulatory and Policy Environment, Fuel shortage, and transition from Project phase to operations phase, an organizational re-design initiative was undertaken with McKinsey, based on the principles of Strategic Business Units (SBUs) with focus on speed of decision making, profitability, liquidity & Capability building (Fig. 6.1-2).

6. OPERaTION fOcUS

Fig. 6.1-1 Processes to Design and Innovate Work System and Identification of Internal & External Processes

6.1 WORK SySTEMSAt GMR Energy, the work systems are of significant importance throughout the organization. The work systems design (Fig. 6.1-1) takes into consideration Stakeholders requirements including our Core Competencies and Strategic objectives.

6.1 a WORK SySTEM DESIGN

6.1 a1 DESIGN cONcEPTSHow do you design and innovate your overall WORK SySTEMS? How do you capitalize on your cORE cOMPETENcIES? How do you decide which PROcESSES within your overall WORK SySTEMS will be internal to your organization (your KEy WORK PROcESSES) and


Fig. 6.1-2 – GMR Energy: Work System

Strategic Themes Operational System customer System

Operational Excellence, Project Execution Excellence customer centricity

Liquidity Receivables, Divestment OpportunitiesFlexible payment terms, Consider Rebates for extended payment

timelines

ProfitabilityImprovement Projects to enhance Operational Efficiencies e.g. Heat

Rate improvement, APC reduction, Plant Preservation Cost optimizationAdherence to Dispatch Schedule, Reducing unplanned outages

Structure & Process

RASCI, DoP, IMS Certifications, Bhavyatha Implementation, Energy

Sector EHS Framework, Hydro Power Project Management Manual,

Safety Manual for Hydro, Stage Gate Audits

PPA Management Team, Regional Set up for Power Trading

Customers, Key Relationship Managers, Customer Support,

Customer Complaint Management, C Sat

The design of work system aims to synergize the various functions, and align key processes to serve the stakeholders in an efficient way. System is devised around our strategic themes – 1) Liquidity 2) Profitability 3) Structure and process, guided by our Long term vision, Values and beliefs, and driven by our core work processes (Fig 6.2-2). Our work system and processes involve the use of External and Internal resources. We outsource such activities which are resource intensive, highly transactional in nature, semi-skilled repetitive activities, and requiring high skilled expertise. For e.g. 1) Creation of shared Service Center to support non - core HR & Finance processes like new hire – profile sourcing, Employee

reimbursements, Vendor payments etc.2) Outsourcing of IT – Operation support and development work to TCS 3 ) Outsourcing of O & M for Coal Handling and Ash Handling systems at our Thermal Assets ( GKEL, EMCO).

capitalizing on core competencies

Our identified core competencies (Refer OP – P.1 A2) give us a sustainable competitive advantage for executing our key processes efficiently and addressing our stakeholder requirements. Examples of capitalization on core competency to improve work system and enhancing stakeholder value is shown in Fig. 6.1-3

(Fig 1.1-1)

Fig. 6.1-3 Key Work System capitalizing on Core Competency and Delivering Customer Value, Sustainability & Organizational Success

Work SystemExample of Improvements /

Initiatives

capitalizing element and core

competency

Delivering customer value

achieve Organizational

Success

Ensure Sustainability

Leadership System

Launch of IMS system across the organization

Robust process for Operational Excellence

Uninterrupted supply of Power, Reduced forced outages, Improving Plant Availability (Higher PLF)

Meeting AOP Targets, Process centric culture

Drive process centricity, Risk mitigation integrated at each key work process level

Launch of Hydro Power Project Management Manual, Bhavyatha deployment, Member of Global Executive Council of PMI

Robust process for Project Management

On time completion of Project

Completion of Project within budgeted cost & time

Risk mitigation integrated at various stages of Project Execution

Implementation of RASCI,DOP for SBU structure

Robust process for operationalizing SBU structure

Improving speed of deployment

Clarity in roles, responsibilities, interfaces

Good Governance system


Work SystemExample of Improvements /

Initiatives

capitalizing element and core

competency

Delivering customer value

achieve Organizational

Success

Ensure Sustainability

Leadership System

EHS – Launch of EHS framework, Safety manual for Hydro, Introduction of Safety Performance evaluation of Contractors at Pre bid stage, Behavior based Safety (NEBOSH Standards) at Thermal Assets, Multi-level Reviews

Robust process for creating Culture of Safety and Green initiatives.

Improving Plant Safety, and creating Environment sustainability

Higher Safety Standards

Preparedness of Safety at workplace (Fig. 7.3.25 to 7.3.28) Compliance with site safety & Environment Norms (7.4.6 to 7.4.15)

Operational System

Involvement of leadership to ensure robustness of Execution – (RASCI,DOP), O & M through Operational Excellence Initiatives (McKinsey)

Through Project Management Manuals, Bhavyatha Framework, IMS Implementation

On time completion of Project, Adherence to Dispatch schedule, Internal SLAs – (EMCO with Trading, PPA, Logistics)

Creation of Robust operational support system

Sustained Plant Performance (Fig. 7.1.1 to 7.1.31)

Customer SystemCreation of PPA Management Team for Long Term Customers, Regional set up for Trading Customers

Deliver through IMS processes with focus on time, cost, quality & delivery


Customer feedback, Customer Satisfaction

Customer support across Customer life cycle, Tapping new opportunities for e.g. banking of power, REC sale (Fig. 7.1.32), Increase in OA Customer base (7.2.8 & 9)

Support System

SAP, PI Server, BPC, Compliance portal, GMRETL website

Timely Availability of Performance data & MIS

On time Completion of Project

Speed up Decision making process, Support Reviews, and identify Improvement Opportunities

Efficient Data & Information Management system

BE / IMS / Safety champions at sites/locations for implementation of BE initiatives/IMS & Safety systems.

Creating culture of Continual improvement


Enhancing Operational efficiencies, Employee Engagement

Organizational & Personal Learning – (Learning Capture from EMCO, InterGen, Island Power)

MAG Audits /Stage Gate AuditsProcess Audits & Improvements

Enhanced process controls leading to reduced unplanned outages

Enhanced Compliance levels

Good Governance

Training for Contract workmen (Safety, On the Job, Class Room)

Enhanced workforce productivity, reduced rework

Uninterrupted operations / Power Generation

Conforming to the requirement of safe and secure workplace

Engaged & Motivated workforce (Fig. 7.3.18)

6.1 a2 WORK SySTEM REqUIREMENTS

How do you determine KEy WORK SySTEM requirements, incorporating input from cUSTOMERS, suppliers, PaRTNERS, and cOllaBORaTORS, as appropriate? What are the KEy requirements for these WORK SySTEMS?

The key requirements for Work Systems are determined

based on the expectations/feedback/inputs from customer segments, regulators, suppliers, collaborators, partners, employees, and other Stakeholders in terms of Scope, Volume, Agility, Frequency, Flexibility needs, Regulatory and Legal Compliance, Governance, RASCI & DoP requirements, Customer Satisfaction, Employee Engagement & Satisfaction, Green requirements like Reduction in Carbon foot prints and desired performance levels as described in Fig. 6.1-4


Fig. 6.1-4 Work System Requirement

Work System

Design Requirement

Incorporating Inputs from

Safety & Green Requirementcustomers

Suppliers / Partners / collaborators/Internal-External Stakeholders

Leadership System

Business Model robustness for sustainability, Business Development, Entry into new Markets & Segments, Identifying and implementing new technology for Cost / Cycle time reduction, Cost Control and High performance work culture, Re-visit Vision & Values and communication to Internal / External Stakeholders, Risk Assessment & Mitigation, CSR Initiatives, Governance, RASCI & DoP

Customer Feedback,Customer Satisfaction, Customer Complaint & Resolution, Voice Of Customer

Regulatory & Statutory Requirements, Market Scan, New Opportunities, Employee Engagement and Ethical Culture survey outcomes, Community Needs, Vendor Satisfaction, Audit Outcomes, BE OFI’s

GMR Group Initiatives, OHSAS & EHS Framework, Sustainability Framework GRI G4, Bijlee & Paani Projects (Fig. 7.1.96), Energy Audits by CII, Emission Levels (Fig. 7.4.6 to Fig. 7.4.13)

Customer System

Excellence in Service Offerings during 1. Business Development, Opportunity scanning and Customer acquisition, 2. Post Customer Acquisition, and 3. Annual / Final Settlement, Agility in auctioning on Voice of Customer, Best in class Customer Support, Engagement and Complaint Management processes

Operation System

Asset Management (Thermal Coal, G&L, Renewable), Project Planning and Execution Management (Thermal, Hydro), Develop & Operate Coal Mines, Procurement, Coal Sourcing (Domestic & Imported), Logistics(Ports & Shipping), Coal Trading, Inventory Management, Waste Management, Operational Excellence, Project Execution Excellence

Support System

Competency based PMP, Timely support to functions, Ensure Compliance, Providing required IT Infrastructure & Resources including Communication Tools (Email, VoIP, Video Conferencing), SAP Support, MIS on AOP Plan vs. Actual (BPC), Maintaining Environment, Health & Safety Standards, Legal Support, Business Excellence & Knowledge Management initiatives

6.1 B WORK SySTEM MaNaGEMENT

6.1 B1 WORK SySTEM IMPlEMENTaTIONWhat are your organization’s WORK SySTEMS? How do you manage and improve your WORK SySTEMS to deliver cUSTOMER valUE and achieve organizational success and SUSTaINaBIlITy?

Our Work Systems are 1) Leadership system 2) Operational System 3) Customer System and 4) Support System (Fig. 6.1-2), each comprising of work processes as shown in Fig. 6.2-2. Our Work System aims to ensure meeting of Strategic Objectives by driving initiatives which continuously contribute to deliver Stakeholder Value, Profitability, Organizational Success and Sustainability.

6.1 B2 cOST cONTROlHow do you control the overall costs of your WORK SySTEMS? How do you prevent defects, service errors, and rework and minimize warranty costs or cUSTOMERS’ PRODUcTIvITy losses, as appropriate? How do you minimize the costs of inspections, tests, and PROcESS or PERfORMaNcE audits, as appropriate?

There is AOP based cost control focus for each element of expense across SBUs, Assets, Projects, Corporate Office and Regional Offices. With Implementation of BPC (Business Process Consolidation) seamlessly integrated with SAP platform, Cost monitoring, analysis and control have become more effective. All expenditures are subject to necessary approval, and SAP Release strategy aligned with the Energy Sector DoP guidelines. For on-going projects (CTPP, Bajoli Holi - Hydro) cost focus is ensured through Bhavyatha processes (Cost Control & Authorization for Expense). Capability Center Initiatives (Refer Fig. 6.1-2) to Standardize and indigenize spares, O&M Contract reviews, Vendor development, Cost & Budget control ensures focus on monitoring and reduction of costs. All expense deviations are critically reviewed in forums like – ORMs, SBU reviews, Project Reviews, BCM and GCM Reviews. In the current year for Coal Thermal Assets, the plan is to engage reputed Global Consultant to improve Cash flows through Process Improvement initiatives. For G&L, specific targets have been taken to further contain the Plant Preservation Costs.

“If you are going to achieve Excellence in big things, you develop the habit in little matters. Excellence is not an exception, it is a prevailing attitude.”

Bhaskar a Rao CFO – Energy Sector


Fig. 6.1-5 Cost Control Measures

year Work System cost control Measures / Initiatives Impact

FY 12 Operation Systems- Capex Optimization in CTPP Project (Raw water reservoir & Ash pond, Non Plant Buildings, Roads &

Drains, Coal Handling Plant, Water Treatment Plant)- Operational Efficiency improvement CIPs at G&L Assets

Fig. 7.1.92-93-94

FY 13

Operation Systems - Capex Optimization in Maru & Aravali Transmission Projects Fig. 7.1.92

Leadership Systems - Bhavyatha Implementation at Thermal projects

Support Systems - IT Capex optimization at Island power Project Fig. 7.1.92

FY 14

Operation Systems

- Plant Preservation Cost optimization (Import power reduction, APC Reduction, HVAC Power Optimization)

- Capex optimization at Bajoli Holi Hydro Project by power house layout optimization- Spares Indigenization for Coal Mill & Coal Feeder at EMCO- Minimizing Transit losses of Coal (Pilferage) - Implementation of Action items identified during CII Energy Audit at EMCO- For our Solar Plant, Conversion of electric powered solar street lights to a centralized solar power street

lighting system, by using the modules available with us, to reduce Aux power consumption- Initiated IMS certification, Engagement with TERI to improve Solar Plant performance- Engagement with Global Consultant to improve Cash flow for Thermal Assets through process

improvement initiatives

Fig. 7.1.93

Leadership Systems- Cost control thru Stage gate audits for Bajoli Holi, PT BSL Coal mines- Revisited Energy Sector DoP to support SBU Organization.- Fraud Risk Assessment

Support System - Debt Restructuring Fig. 7.5.10

Fig. 6.1-6 Prevention of defects, errors and rework, minimizing cost of inspection, test and audits

cost control by year focus areas (Examples)Methodology &

Results

Prevention of Defects,

Service errors and Rework

2012 GT Reliability improvement at GEL KKD by reducing no. of spurious tripping Fig. 7.1.93

2013 Improvement in Chiller reliability and availability at GEL KKD Fig. 7.1.93

2014 DCS logic modification to reduce unplanned outages at EMCO & GKEL Fig. 7.1.9, Fig. 7.1.23

Minimizing Cost of

Inspection, Tests & Audits2014 Supplier Capability Assessment to ensure quality supplies Fig. 7.1.99

In order to drive sustainable profitable growth, cost optimization exercise was initiated in GEMS led by McKinsey in 2013. The main objective of the program was to create an aligned roadmap to continue achieving profitable growth, and start implementation of the most critical lever – Contracting Excellence, with focus on below areas.

1. Conduct a rapid review of its current strategy, in light of changing market conditions

2. Establish an aligned aspiration (e.g. market cap or value creation) and cascade this to specific business initiatives (e.g. production improvement, capital & infrastructure, procurement and contracting)

3. Prioritize the improvement levers, quantify size of the prize and develop detailed action steps (e.g. procurement and contracting excellence, mine operations cost reduction, overall equipment efficiency / utilization, mine planning, infrastructure development, capital planning etc.)

4. Implement procurement & contracting excellence lever immediately to capture tangible impact within 4-6 months.

This has resulted in an annualized savings of $14mn.”

Fig. 6.1-5 illustrates Cost control measures taken across our work systems. The QA-QC dept. within Capability Center has deployed a stringent quality plan of audit inspection and compliance to method statement, factory inspection, empanelment of vendor/contractor based on quality which

ensures timely actions to prevent defects, errors and reworks.

Concept of ‘Cost of Quality’ is being introduced for our Thermal

Coal Assets as part of BE Practitioners’ program to reduce

rework and, defects (Fig. 6.1-6).


6.1 c EMERGENcy REaDINESSHow do you ensure WORK SySTEM and workplace preparedness for disasters or emergencies? How does your disaster and emergency preparedness system consider prevention, management, continuity of operations, and recovery?

We have an elaborate Emergency Preparedness and Response Plan (EPRP) as shown in Fig. 6.1-8, for different emergency scenarios as 1) Manmade emergency, 2) Natural Disasters and 3) Systems failure. In line with Energy Sector EHS Framework, Corporate EHS Department provides guidelines to Projects, Assets and Corporate/Regional Offices for formulating site specific EPRP plan. Site team develops EPRP in concurrence with local internal/external stakeholders which is reviewed by Corporate EHS and released for implementation. Emergency Management involves 5 prong approaches: Prevention, Preparedness, Response, Recovery and Mitigation. Our process for emergency readiness and to ensure continuity of business is addressed in Fig. 6.1-7

fig. 6.1-7 Workplace Emergency Management Plan

Fig. 6.1-8 Emergency Preparedness – Systems and Processes (illustrative)

EmergencyNature of Major

EmergencyStakeholder

ImpactedPreparedness for

PreventionPreparedness for

Management

Preparedness for continuity of

OperationsRecovery Responsibility Result

Manmade emergency

Accidents, Structure Collapse, Equipment Failure, Electrocution, Fire, Explosion, Labor Unrest, Local Problems, Riots, Terrorism, Bomb Threat

Employees, Contractor & Customer

Comprehensive EHS Management System covering all sites and offices which includes Safety Manual, Emergency Response Plan, HIRA, EHS Induction, Safety Meeting, Special Training, Supervision, Internal/ External EHS Audits

Emergency Preparedness & Response Plan for handling personal accidents, fire break out & contingencies. Tie up with Medical service providers. Periodic drills and Table Top exercise are conducted as per plan to assess awareness & preparedness

Periodic drills and Table Top exercise. Periodic review of Hazard Identification & Risk Assessment

Adequate insurance cover. Medical treatment, recovery programs and their close monitoring

O&M Head & Plant Head

Fig. 7.3.31

Natural Disaster

Earth Quakes, Landslides, Volcanic eruptions, Floods, Cyclone/ Heavy wind, Tsunami, Drought, Epidemics


Earth quake resistant structural designs conforming to IS codes, obtain information regarding emergency from local disaster management control agency of the area as required, Routine Medical checkup/ vaccination at site and nearby, water quality monitoring, wellness program

Emergency Preparedness & Response Plan in conjunction with contactors, local disasters authorities to prevent / minimize loss of life and assets.Tie-up with medical service providers

Mechanism for salvage operation to ensure quick turnaround and resumption of work

Adequate insurance cover. By repair, recovery programs and their close monitoring

Plant Head Fig. 7.3.31

Systems Failure

IT & Control System (DCS, UPS etc.)


Reputed system placed. Routine Maintenance and Monitoring

Functionality ensured by design

Ensuring required environment like temperature for the systems as and where required, On line System testing for auto change over

Adequate insurance cover

O&M Head & Plant Head

IT Systems Availability & DR Results


6.2 WORK PROcESSES

6.2 a WORK PROcESS DESIGN

6.2 a1 DESIGN cONcEPTSHow do you design and innovate your WORK PROcESSES to meet all the KEy requirements? How do you incorporate new technology, organizational knowledge, product excellence, and the potential need for agility into these PROcESSES? How do you incorporate cyclE TIME, PRODUcTIvITy, cost control, and other efficiency and EffEcTIvENESS factors into the design of these PROcESSES?

Processes are designed through step-by-step adoption of

“Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.”

Raghunandanan GK President – G & L

6.2 a2 WORK PROcESS REqUIREMENTSHow do you determine key work process requirements? What are your organization’s key work processes? What are the key requirements of these work processes?

Process to determine the work process requirement is described in Fig. 6.2-1. The process requirements are reviewed

through SBU Head reviews, BCM & GCM Reviews, Customer Meetings, Community Meetings, Vendor Interactions (Refer Fig. 4.1-5). Fig. 6.2-2 describes Various Key work processes in GMR Energy, Work process requirements, Mode of determining key work requirements, various control measures in place and In-process and End-of-Process measures for these work processes.

Recurring deficiencies are highlighted during reviews and respective process is modified using DMAIC approach. E.g. REC Application cycle time reduction, Power Trading Billing cycle time reduction, Revisiting Energy Sector DoP and rolling it out to support SBU Structure.

SIPOC (S – Supplier, I – Input, P – Process, O – Output, C – Customer). Fig. 6.2-1 helps the process owner to systematically design and innovate the work process. Process objectives are clearly set and defined prior to designing of the work process. Each process has a process owner who leads the implementation and monitoring of process. In process & End of process measures are defined during mapping of each work process. The process owner critically examines the steps taken to address customer needs, bridge technological gaps, training needs, and resource requirement etc. in order to ensure that process design requirements are met. Regular Measurement and monitoring help control the final outcomes e.g. Plant Efficiency, Cost of Generation, Project execution timelines etc.

Fig. 6.2-1 Process for designing and innovating work processes


Fig. 6.2-2 Key Work Processes, Work Process Requirements, Determination of work process requirements, & Measures

Sr, No.

Key Work Processes

Work Process Requirements

Mode of determining key

requirementscontrol Measures In-Process Measures

End-of-Process Measures (Outcome

Measures)Results

LEADERSHIP & GOVERNANCE SYSTEM

1

Leadership, Communication & Continual Improvement

Set Organization vision & values, Governance, Social Responsibility, Promote Legal & Ethical Behavior, Balancing stake holder expectation, Create sustainable Organization, Achievement of strategic objectives Empowerment, Employee & Stake Holder communication, Reward & Recognition

Group vision and values, Stakeholder Engagement, Learning from other companies, Statutory Requirements,Employee Engagement survey

GHB, GCM, BCM & SBU Head Reviews, HR Council, Internal/ External Audits

Adherence to Strategic Planning Process, Skip Level Meetings, Town Hall Meetings, No. of CSR Projects (GMRVF), % of Employees covered under COBCE, No. of CIPs and Employees involved, Employees covered under various Reward & Recognition

% achievement of Strategic objectives, Employee engagement score, % completion of Town hall outcome, Communication Effectiveness,No. of CIPs completed, Ideas generated

Fig. 7.4.1, Fig. 7.3.18, Fig. 7.1.92-93-94, Fig. 7.1.-95

2Strategy Planning (SPG)

Formulation of sector & SBU Strategy, Strategic Objectives, Strategy Deployment Plans and initiatives. Balancing Stakeholders needs, AOP’s

Group vision; Sankalp 2020, Environment Scan, competitive analysis, Internal and External Stakeholder inputs, Risk Assessment

GHB, GCM, BCM & SBU Head Reviews, Monthly MIS, AOP Review

Adherence to process timelines, Achievement of critical milestone.

Implementation of action plan and achievement of Targets as specified in BSC

Fig. 7.4.1

OPERATION SYSTEM

3

Business Development - Renewable, Power Trading

BD Plan, Opportunities for new projects and acquisition, Due diligence, Final Bid, project specific clearances, Divestment opportunities

Market Scan, Environment scan, Internal and External stakeholder inputs, Sector Strat Plan

SBU Review , AOP review, Project specific reviews

Adherence to process timeline for Due diligence, Final Bid and Project plan. Adherence to pro-rata targets in BD-BSC

Bids submitted vs. won, Adherence to Project Cost, Quality & Timeline, and Adherence to Compliance

Fig. 7.1.100 to Fig. 7.1.104

4

Project Mgt.

(Thermal, Hydro Transmission) Coal Assets Management

Project delivery within Scope, Budget, Quality, Time, Safety and Environmental requirements, Project specific clearances, Continuous Improvements

Project Management Plan, AOP Targets, Project schedules, Quality Assurance Program, Stake holder inputs

Daily, Weekly, Monthly Reviews by Project Head; GCM/BCM/ SBU Heads Review, Project Audits – Bhavyatha, MAG

AOP Plan vs. Actual, Adherence to S-Curve, Cost Curve, Quality Assurance record, EHS measures, CIPs

Project delivery within Budgeted cost and timelines,Adherence to Compliance

Fig. 7.1.100 to Fig. 104

5

Operation & Maintenance of Assets (G&L, Coal, Renewables, Transmission)

AOP Targets (Plant Performance, EHS, Compliance, Financials), Operational Excellence

AOP, Capability Center Road Maps (Benchmarking Targets, Best in class, Energy Audits, EHS Audits, Process Audits, Cost & Budget Control), Management Reviews, Stakeholder Inputs

ORM, Daily, Weekly, Monthly Reviews by O&M, Plant Head & SBU Head, Toolbox meetings

Unplanned Outages, Improvement Projects, Adherence to IMS Processes, No. of suggestions, Site EHS Compliance, APC

Gross Generation, Net Power Export, Cost of Generation, Heat Rate

Fig. 7.1.1, Fig. 7.1.2, Fig. 7.1.15, Fig. 7.1.16Fig. 7.1.14, Fig. 7.1. 5Fig. 7.1.19, Fig. 7.1.29

6

Coal sourcing

(Domestic/ Imported)

Adherence to AOP Targets, Coal supply within Budgeted cost, Quality & Timelines

AOP, Management Reviews, Stakeholder – External/ Internal

ORM, Daily Review, Review with SBU Heads, Monthly Coal Sourcing Reviews

AOP Plan vs. Actual, Adherence to Coal quality & logistics cost, Transit Losses

Plant Availability, Cost of Generation

Fig. 7.1.4, Fig. 7.1.18, Fig. 7.1.12-13-14, Fig. 7.1.27-28-29

7Logistics (Port & Shipping)

Adherence to AOP Targets, Coal transportation within Budgeted cost, Quality & Timelines

AOP, Management Reviews, Stakeholder – External/ Internal

AOP Reviews, Daily / weekly/Monthly Reviews

AOP Plan vs. Actual, Adherence to Quality & cost, Handling Losses, Lay Time, Transit Loss, Demurrage

Logistic Cost, On Time Performance of Shipment

On time performance


Sr, No.

Key Work Processes





Measures)Results

8 Coal TradingAdherence to AOP Targets

SBU Strat Plan & AOP (Coal Assets), Stake Holder Requirements – Internal/ External, Market Scan

Daily, Weekly, Monthly Reviews by SBU Head

Meeting AOP Target, Coal Trading Margin, New Customer Added

Revenue, Volume of Coal Traded

Coal Trading Revenue, Volume of coal traded

CUSTOMER SYSTEM

9

Customer Management (PPA Management, Power Trading)

Power dispatch as per existing PPA’s; Trading power of GMR Assets and other Generators

SBU Strat Plan & AOP, Internal (EMCO, GKEL, GEL KKD, GPCL, VPGL) & External (DISCOMS, Utility’s, Generators, Open Access Customers) Stake Holder Requirements, Market Scan

Daily, Weekly, Monthly Reviews by Power Trading, PPA Management, O&M Head, Plant Head & SBU Head. BCM, GCM & GHB Review

Meeting AOP Target, Customer Workshops, interaction, visits, Compliance to Schedule of supply, Complaint Received/ Resolved, Repeat Complains, Trading Margins, New Customer Added, Billing Cycle time

Volume of Power Sold (PPA/ Power Trading); Volume of Power Traded; Customer satisfaction survey Feedback


SUPPORT SYSTEM

10Environment Health and Safety

Environmental Clearances and necessary approvals,

Safe & Healthy Work Environment

Compliance to Statutory & Regulatory Requirements

Statutory, Regulatory & Approvals, Climate Change Mitigation Initiatives, Water Conservation Initiative, Proactive Hazard Analysis and Employee Engagement Feedback, IMS & Safety Audits, HAZOP Study

ORM, Daily, Weekly, Monthly Reviews by O&M Head, Plant Head. SBU Head, BCM, GCM & GHB Review

Completion of baseline EIA and related studies.

Site Safety Performance and AOP target Measures – LTFIR, FIFR, Fire Incidents

Environment Clearance Obtained.

No. of Reportable Accidents

Safety Awards/Certifications

Fig. 7.3.25

11Finance and Accounts Management

Fund Availability, Financials and MIS, Working Capital, Budgetary Controls, Cost Control, Returns; Loan Interest Cost, Compliance to Statutory Requirements

Strategic Planning Process, Stakeholder Requirements, Financial Policies, Audits, Accounting Standards. Long Term & Short Term Plans; Risk Management. and Past Learning, Debt And Funding Forecasting and Management

Monthly MIS, Quarterly Board and Audit Committee Review, Weekly Meeting with SBU Head

Adherence of Timelines ( MIS, Budget calendar, Internal/External Audits), Timely Closing of Accounts, Accuracy of Data, Compliance with Taxation Laws, Timely Arrangement of Funds

Effective Cost of Capital, Variance analysis, Accuracy of MIS reports and budgets, Completion of quarterly accounts, reduction of overdue receivables, Timely payments for project expenses, monthly reconciliation

Fig. 7.1.42

12Capability Building (Capability Center)

Technical Support , Progress Review, Quality Assurance, Engineering, Process Improvement, Center of Excellence

AOP Targets, Stake Holder Requirements – Internal / External, Survey Report, Market Scan

ORM, Review with SBU Head, BCM

No. of Processes implemented, Benchmarking, Implementation of BE Practitioners Action plan

Progress on Road MapAdherence to Capability Center Roadmap

13 Legal Management

Legal support to SBUs for quick resolution of Petitions and achieving success on litigations

SBU Heads Inputs, Petitions filed by peer companies, Regulations being challenged in power sector

Review with SBU Head, BCM, GCM & GHB

Compliance with Legal Requirements, Timely updation of Status on litigations on Legal portal

Success in Legal litigations, Resolution of Petitions

Legal litigations and petitions won


6.2 B WORK PROcESS MaNaGEMENT

6.2 B1 KEy WORK PROcESS IMPlEMENTaTIONHow do your KEy WORK PROcESSESS relate to your WORK SySTEMS? How does your day-to-day operation of these PROcESSES ensure that they meet KEy PROcESS requirements? What are your KEy PERfORMaNcE MEaSURES or INDIcaTORS and in-process MEaSURES used for the control and improvement of your WORK PROcESSES?

The designed work processes are implemented through SIPOC/IMS framework. The process document (As per IMS design) – covering purpose, process flow, interfaces, in-process measures, output measures or indicators (Fig 6.2-2), Work Instructions/Operating Guidelines, forms, records and references - are available with the Operation Efficiency/Planning Team at Sites. To ensure that the key design requirements are met, the workforce allocation is done as per organizational workforce capability /capacity needs. The necessary infrastructure, technology, equipment/material, expertise (Fig OP. 11) for process management are made available. Internal & External training programs on tools/techniques/skills are conducted to enhance process management capabilities of workforce. Awareness sessions are coordinated by Business Excellence Team, and process owners to create the understanding about the process steps & measures. For e.g. Bhavyatha Process workshop conducted by BE Team for Hydro at Bajoli Holi, Process Assessment workshop for Thermal Assets, and key Corporate processes. All in-process and output process measures are reviewed

periodically through MIS, and various reviews that take place at SBU/BCM/GCM/GHB level. Deviations from desired outcomes are analyzed for any gaps in process design, deployment, resource allocation etc. and CAPA is taken accordingly (Ref Fig 4.1-7).

6.2 B2 SUPPly-cHaIN MaNaGEMENTHow do you manage your supply chain? How do you ensure that suppliers you select are qualified and positioned to enhance your PERfORMaNcE and cUSTOMER satisfaction? How do you evaluate supplier PERfORMaNcE? How do you deal with poorly performing suppliers?

coal allocation for our Thermal Assets (EMCO & GKEL) has been obtained through FSA with Coal India Limited, for 80-85 % of installed capacity. This allocated coal is transported to our sites by Rail. Balance requirement of Coal is met through imported coal planned from our co-owned mines in Indonesia, and from Open market/E Auction mode.

Natural gas supply to our Gas based Assets (GVPGL & GEL-KKD) is done through a GSPA with RIL and a GTA with GAIL and RGTIL. However in view of the current scenario of gas supply from KG basin, option of importing Liquefied Natural Gas is being evaluated which includes Liquefaction of Natural gas at the loading port, transportation by LNG tankers, regasification of LNG at discharge port, and inland transportation of gas through pipeline, mobile cascades, rail, or road.

Project Procurement Process is carried out through the Group procurement process with support from respective

Sr, No.

Key Work Processes





Measures)Results

14 Procurement

Delivery of Material / Services within stipulated Time and within Budget and as per required Quality

AOP Targets, Stake Holder Requirements (Asset, Project Sites)

ORM, Daily, Weekly. Monthly Review with Stake holders

PR-PO Cycle, GRNAward of PO/SO, Supplier Satisfaction

Fig. 7.1.99

15 IT

Thorough understanding of Business processes, work flow, automation to drive effectively crosses functional teams in Plant & process automation industry vertical, IT Systems & resource availability to individual users/functions

Aligned with business strategy and approved AOP, business case based initiatives

GCIO, BCM, GCM reviews

Number of business process automated and adopted, IT Systems Availability

User Satisfaction, Process Improvement through IT

Fig. 7.1.105

16Human Resource Management

Competent and motivated talent pool in required strength, high performance culture, Capacity & Capability of workforce, Engaged & satisfied workforce, Leadership capability

AOP Targets, HR LT and ST plans

CHR council review, monthly MIS, monthly reviews, BCM reviews

No. of training programs, Adherence to - Training calendar, Hiring plan, Communication Calendar, No. of Employees covered under R&R

Employee Engagement Score, Achievement of Short term and Long term HR Plans

Fig. 7.3.18, Fig. 7.4.1


The core of our Group’s success is our commitment to excellence in project execution. To this end, we initiated a project on achieving excellence in project execution, which has been deployed along with McKinsey. The objectives of this exercise are two-fold:

• Develop a “GMR Way” of Project Management, which is customized to our particular business model and culture, and

• Deliver time and cost optimization for our existing projects, and institutionalize this approach for future projects

In order to achieve Excellence in Project Execution, an engagement program with McKinsey was taken up to map, document, and codify the GMR way of Executing a Project encompassing all key stages of Project life cycle – Assess, Select, Define, Execute, Operate.

Subsequently, these processes were deployed at our Coal based Projects to the extent applicable during the life cycle. This was followed by implementation of Project Bulls Eye at GKEL aimed at improving productivity through micro planning, idea generation, and strengthening of review architecture.

We further leveraged organizational learning on Bhavyatha, Bulls Eye, through an In house engagement program to prepare proactively for our Hydro business. As a result, a comprehensive “Hydro Power Project Management Manual” using a 3 pronged approach centered on: Bull’s Eye learning’s (GKEL), Bhavyatha and BE framework detailing out the principles of Organization design, Structure, Roles, Responsibilities, Interfaces has been put in place for uniform adoption by our upcoming Hydro Projects.

C & C teams at SBU/sites, Owners Engineer, it consists of preparation of technical specifications, floating of bids, finalizing of GCC and SCC, identifying of global/domestic suppliers, floating of RFQs, pre-bid meetings, evaluation of techno-commercial bids, quotations, submission of technical evaluation reports, commercial cost evaluation, approval as per DoP, and placing of order. Warranty spares for our Thermal Coal Assets have been supplied by OEM as part of Project Construction Agreements; additionally critical spares have been identified and a robust process of sourcing the same from other channels is being put in place. To contain cost and lead time, process to develop new vendors/indigenize critical spares has been initiated.

Supplier Selection: A data base of all approved suppliers (meeting the supplier selection / qualification criteria) across GMR group is available as a pre-approved vendor master in SAP MM Module. New vendors can register themselves through E-Smart Vendor registration process available on GMR Website.

Supplier Performance Evaluation: Suppliers’ performance is evaluated through a systematic process managed by Central Procurement Dept. For Projects vendors, the selected suppliers are evaluated based on Supplier Analysis Score Card which comprises 6 criteria’s of performance evaluation: Cost, Financial Strength, Technical Strength, Execution Capability, Corporate Governance, and Commercial Terms & Conditions. For Assets, selected vendors are evaluated based on 4 criteria’s – Quality, Cost, Delivery and Management & System. An outcome of the Suppliers Evaluation is shared with respective suppliers. Suppliers with consistent poor performance are blacklisted from the approved master vendor list.

6.2 B3 WORK PROcESS IMPROvEMENT

How do you improve your WORK PROcESSES to achieve better PERfORMaNcE, reduce variability, and improve products?

BE Practitioners workshop at EMcO BE Practitioners workshop at GKEl


Basic trigger to identify work process improvement opportunities are strategic objectives, stretched goals and consequent process outcomes in line with organizational challenges. Fig. 6.2-3 illustrates process for improving and innovating work processes. All KPIs are monitored at Corporate/SBU as well as functional levels through Balanced Scorecard, Monthly MIS, and Daily Reports, etc. (Ref Fig 4.1-7) Transactional feedback

is the mechanism through which the feedback is captured from Internal Suppliers/Customers, Process owners, stakeholders etc. for day to day management of the process. Approaches like review mechanisms, Internal SLA’s, deployment of PM & MM modules for Thermal Assets, Improvement Projects, SWOT, etc. are used to achieve better performance of processes and improve customer services.

Fig. 6.2-3 Process for improving and innovating work processes

Various analytical and quality tools (OSI-PI, variance, trend, root cause, 7 STEP problem solving process, brainstorming, etc.) are used to improve processes and reduce variability. Deployment of Idea Factory, Bhavyatha for Hydro/Thermal, Improvement Projects, BE Practitioners program creates a sector wide focus on building a culture of continual improvement. Quality & Safety awareness is created through Quality weeks, and internal quality audits. Safety week and audits are being conducted periodically throughout the year. To prevent the recurrence of variations/deviations, CAPA is identified to change/modify the process if required, or, take actions such as (i) Improving awareness (ii) Discipline in adhering the process

guidelines (iii) Training interventions for workforce capability issues (v) R&R for improvement projects (Fig. 7.1.92-93-94, Fig. 7.3.8). IMS audits are conducted to identify the process gaps and propose CAPA towards IMS deployment across all processes. Process audits are being planned with focus on identification of improvement opportunities. Based on the IMS design, each process and its sub processes are reviewed by the respective process owners periodically for deviation from intended outcomes and design, cycle time, productivity and the cost incidence of the process. These deviation(s) form the basis for identification of opportunities for improvement and updating as per new process requirements & business needs.


7.1 PRODUcT aND PROcESS OUTcOMES

313.47 477.14 560.41 851.92

3,597.34

4,538.92

-‐

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

4,500.00

5,000.00

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15

Fig. 7.1.1 : EMCO -‐ Gross Power Genera7on (MU's)

277.32 424.53 502.71 770.77

3,239.09

4,127.64

-‐ 500.00

1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 4,500.00


Fig. 7.1.2 : EMCO -‐ Power Export at Bus Bar (MU's)

47.90% 43.31% 42.30%

65.73%

86.59% 86.36% 85.00%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 CERC

Fig. 7.1.3 : EMCO -‐ PLF (%)

73.45% 76.32%

57.76%

89.12% 86.59% 92.99%

85.00%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%


Fig. 7.1.4 : EMCO -‐ Plant Availability (%)

2,587 2,607

2,461 2,405

2,300 2,342

2,425

2,100 2,150 2,200 2,250 2,300 2,350 2,400 2,450 2,500 2,550 2,600 2,650


Fig. 7.1.5 : EMCO -‐ Heat Rate (Kcal/kwh)

12.31% 11.04%

10.30% 9.53% 9.96%

9.06% 9.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%


Fig. 7.1.6 : EMCO -‐ Aux. Power Consump;on (%)


8.56

4.54

1.48 0.68

1.14 0.86

-‐

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00


Fig. 7.1.7 : EMCO -‐ Sp. Oil Consump6on (ML/kwh)

1.86%

0.67% 0.66% 0.83%

3.00%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%


Fig. 7.1.8 : EMCO -‐ DM Water Consump;on (%)

14

1 5 7

93

25

0 10 20 30 40 50 60 70 80 90

100


Fig. 7.1.9 : EMCO -‐ Unplanned Outages (Nos.)

93%

100% 102%

98%

86% 88% 90% 92% 94% 96% 98%

100% 102% 104%

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.1.10 : EMCO -‐ Adherence to Export Schedule (Actual Export / Scheduled Export) (%)

22.16

-‐ -‐

15.12

-‐

5.00

10.00

15.00

20.00

25.00

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.1.11 : EMCO -‐ Loss of Genera7on (MU's)

3.89

2.36 2.40 2.14 2.10 2.09

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50


Fig. 7.1.12 : EMCO -‐ Variable Cost (Rs/kwh)

4.36

3.56 3.92

2.64

1.73 2.21

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00


Fig. 7.1.13 : EMCO -‐ Fixed Cost (Rs/kwh)

8.25

5.92 6.32

4.78 3.83

4.30

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00


Fig. 7.1.14 : EMCO -‐ Cost of Genera8on (F+V) (Rs/kwh)


55.37 358.78 636.96 886.00

6,079.70

-‐

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00


Fig. 7.1.15 : GKEL -‐ Gross Power Genera7on (MU's)

48.78 321.47 574.83 797.00

5,532.00

-‐

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00


Fig. 7.1.16 : GKEL -‐ Power Export At Plant Bus bar (MU's)

9.50%

0.00%

26.95%

36.59%

79.36% 85.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY15 CERC

Fig. 7.1.17 : GKEL -‐ PLF (%)

19.53%

43.31%

54.67%

88.06% 85.00%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY15 CERC

Fig. 7.1.18 : GKEL -‐ Plant Availability (%)

2362 2361 2355 2400 2342 2,425

0

500

1000

1500

2000

2500

3000

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14

AOP FY15

CERC

Fig. 7.1.19 : GKEL -‐ Heat Rate (Kcal/kwh)

17.19%

10.93% 10.66% 10.00% 9.00% 9.00%

0.00%

6.00%

12.00%

18.00%

24.00%


Fig. 7.1.20 : GKEL -‐ Aux. Power Consump=on (%)

3.23

0.00

2.55

1.33 1.00 0.98

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50


Fig. 7.1.21 : GKEL -‐ Sp. Oil Consump9on (ML/kwh)

0.45% 0.72%

1.01%

3.00%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY15

Fig. 7.1.22 : GKEL -‐ DM Water Consump=on (%)


0 0

1

4

0

1

1

2

2

3

3

4

4

5

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.1.23 : GKEL -‐ Unplanned Outages (Nos.)

1

0

2

5

0 0 0

2

0 0

1

0 0

1

2

3

4

5

6


Cold Start up -‐ 4.5 hrs Warm Start up -‐ 2.5 hrs Hot Start up -‐ 1.5 hrs

Fig. 7.1.24 : GKEL -‐ No. of Startup exceeding specified @melines

3.91

-‐ 0.07

5.34

-‐

1.00

2.00

3.00

4.00

5.00

6.00

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.1.25 : GKEL -‐ Loss of Genera7on (MU's)

38.56 36.98

47.52 51.14

-‐

10.00

20.00

30.00

40.00

50.00

60.00

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.1.26 : GKEL -‐ Inventory (Rs. Crs)

3.19

-‐

1.60 1.39

1.71

-‐

0.50

1.00

1.50

2.00

2.50

3.00

3.50


Fig. 7.1.27 : GKEL -‐ Variable Cost (Rs/kwh)

12.48

-‐

4.77 3.90

1.96

-‐

2.00

4.00

6.00

8.00

10.00

12.00

14.00


Fig. 7.1.28 : GKEL -‐ Fixed Cost (Rs/kwh)


15.67

-‐

6.37 5.29

3.67

-‐ 2.00 4.00 6.00 8.00

10.00 12.00 14.00 16.00 18.00


Fig. 7.1.29 : GKEL -‐ Cost of Genera9on (Fixed+Variable) (Rs/kwh)

1587.43 1687.19 1038.24

2350.84

6447.19

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

FY11 FY12 FY13 FY14 AOP FY14

Fig. 7.1.30 -‐ Volume of Power Traded (MU's)

604.84 559.39 423.66 701.45

2834.98

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00


Fig. 7.1.31 -‐ Power Trading Revenue -‐ Sale of Power (Rs. Cr.)

0.00 0.26

11.45

8.47 7.23

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00


Fig. 7.1.32 : Sale of RECs (Rs. Cr.)

100% 100% 100% 100% 100%

0%

20%

40%

60%

80%

100%

120%


Fig. 7.1.33 : Compliance to Terms & Condi9ons of Contract agreement -‐ Power Trading (%)

30% 25% 31%

42%

100%

0%

20%

40%

60%

80%

100%

120%


Fig. 7.1.34 : Success Rate in Tenders -‐ Power Trading (%)

0 911

60472

52186 47280

0

10000

20000

30000

40000

50000

60000

70000


Fig. 7.1.35 -‐ No. of REC's sold (Nos.)


0 0

16

48

0

10

20

30

40

50

60


Fig. 7.1.37 : Contracts awarded (Bilateral) (Nos.)

84.0

99.7

82.0 80.0

100.0

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0


Fig. 7.1.39 -‐ Compliance to schedule of supply -‐ Power Trading (%)

7

21

0 0

5

10

15

20

25


Fig. 7.1.40 -‐ Unplanned outages / Devia9ons impac9ng supply -‐ Power Trading (Nos.)

16 16 16

6 8

0 2 4 6 8

10 12 14 16 18


Fig. 7.1.41 : Billing Cycle 1me -‐ (GMRETL to OA Clients) (Days)

75.09

116.63

93.92

64.99

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00


Fig. 7.1.42 : Receivables -‐ (Yearly Average) -‐ Power Trading (Rs. Cr.)

1,881

1,866

1,862

1,870 1,870

1,850

1,855

1,860

1,865

1,870

1,875

1,880

1,885


Fig. 7.1.43 : GPCL -‐ Heat Rate (Kcal/kwh)

3.66% 3.60% 3.69% 3.79%

4.58%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00%


Fig. 7.1.44 : GPCL -‐ APC (%)

51.82% 50.65%

36.15%

47.71%

40.88%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%


Fig. 7.1.45 : GPCL -‐ PLF (%)


7.52

9.85 11.14 11.55 11.49

0

2

4

6

8

10

12

14


Fig. 7.1.46 -‐ GPCL -‐ Cost of Genera7on (Rs/kwh)

97.71% 88.54%

70.82%

93.76% 96.60%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%


Fig. 7.1.47 -‐ GPCL -‐ Plant Availability (%)

0.29

0.22

0.17

0.13

0.32

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35


Fig. 7.1.48 -‐ GPCL -‐ Maintenance Index (Rs/kwh)

1.67% 0.75%

13.20%

5.47%

1.25%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%


Fig. 7.1.49 -‐ GPCL -‐ Forced Outages (%)

62

23

92 99

92

0

20

40

60

80

100

120


Fig. 7.1.50 -‐ GPCL -‐ Forced Outages (Nos.)

739.76 625.00

531.24 502.72

1350.00

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

1600.00

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 Quarterly Target

Fig. 7.1.51 -‐ GEL KKD -‐ Import Power (MWH)

4.51

5.59 5.03

4.72 4.84

0.00

1.00

2.00

3.00

4.00

5.00

6.00


Fig. 7.1.52 -‐ GEL KKD -‐ Plant O&M Cost (Rs. Crs)

1020 1252

1095 1075

2184

0

500

1000

1500

2000

2500


Fig. 7.1.53 : GVPGL -‐ Import Power (MWH)


7.01

11.70

9.05 8.76

12.46

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00


Fig. 7.1.54 : GVPGL -‐ Plant Preserva8on Cost (Rs. Lakhs)

16.30 17.87 17.37 17.17

24.92

0.00

5.00

10.00

15.00

20.00

25.00

30.00


Fig. 7.1.55 : GVPGL -‐ Admin & FMS Cost (Rs. Lakhs)

822 849 871 820

1092

0

200

400

600

800

1000

1200


Fig. 7.1.56 -‐ GREL -‐ Import Power (MWH)

19.53 17.08

13.18 13.27

19.40

0.00

5.00

10.00

15.00

20.00

25.00


Fig. 7.1.57 -‐ GREL -‐ Plant Preserva7on Cost (Rs. Crs)

10.07 9.12

5.81 4.78

12.68

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00


Fig. 7.1.58 : GREL -‐ Admin & FMS Cost (Rs. Lakhs)

2.32

10.10

40.98 37.59

42.56 40.10

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00

FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14

Fig. 7.1.59 : Gujarat Solar -‐ Gross Power Genera:on (MU's)

2.30

40.59 37.27

42.14 39.69

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00


Fig. 7.1.60 : Gujarat Solar -‐ Power Export (at Bus Bar) (MU's)

13.80%

18.91% 18.71% 18.68% 19.43% 18.31%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%


Fig. 7.1.61 : Gujarat Solar -‐ PLF on Gross Genera9on (%)


73.81%

99.00% 99.97%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%


Fig. 7.1.62 : Gujarat Solar -‐ Plant Availability (%)

0.60%

0.95% 0.85%

0.98% 1.00%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%


Fig. 7.1.63 : Gujarat Solar -‐ Aux. Power Consump?on (%)

6

55

7

0

10

20

30

40

50

60


Fig. 7.1.64 : Gujarat Solar -‐ Unplanned Outages (Nos.)

418.16

328.02

28.65

0 50

100 150 200 250 300 350 400 450


Fig. 7.1.66 : Gujarat Solar -‐ Loss of Genera9on (MU's)

17.57

8.02

12.23 12.74 14.17

13.02

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00


Fig. 7.1.68 : Gujarat Solar -‐ Fixed Cost (Rs/kwh)

17.57

8.02

12.23 12.74 14.17

13.02

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00


Fig. 7.1.69 : Gujarat Solar -‐ Cost of Genera:on (F+V) (Rs/kwh)

2.02

1.18

4.10

5.11

4.15 3.99

0.00

1.00

2.00

3.00

4.00

5.00

6.00


Fig. 7.1.70 : Gujarat Wind -‐ Gross Power Genera9on (MU's)

1.93

0.02

3.97

5.00

3.97 3.91

0.00

1.00

2.00

3.00

4.00

5.00

6.00


Fig. 7.1.71 : Gujarat Wind -‐ Power Export (at Bus Bar) (MU's)


15.00% 12.89%

17.00%

28.00%

23.00% 22.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%


Fig. 7.1.72 : Gujarat Wind -‐ PLF (%)

87.56%

95.00%

89.46%

95.00%

90.87%

95.00%

80.00% 82.00% 84.00% 86.00% 88.00% 90.00% 92.00% 94.00% 96.00% 98.00% 100.00%


Fig. 7.1.73 : Gujarat Wind -‐ Plant Availability (%)

4.72%

2.00%

3.05%

2.00%

4.34%

2.00%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00%


Fig. 7.1.74 : Gujarat Wind -‐ Aux. Power Consump>on (%)

2.92

5.26

1.96 1.99 2.26

2.69

0.00

1.00

2.00

3.00

4.00

5.00

6.00


Fig. 7.1.79 : Gujarat Wind -‐ Fixed Cost (Rs/kwh)

2.92

5.26

1.96 1.99 2.26 2.69

0.00

1.00

2.00

3.00

4.00

5.00

6.00


Fig. 7.1.80 : Gujarat Wind -‐ Cost of Genera:on (F+V) (Rs/kwh)

0.13

0.82

2.55 2.70

1.64

2.69

0.00

0.50

1.00

1.50

2.00

2.50

3.00


Fig. 7.1.81 : Tamilnadu Wind -‐ Gross Power Genera:on (MU's)

0.12

0.81

2.50 2.65

1.61

2.64

0.00

0.50

1.00

1.50

2.00

2.50

3.00


Fig. 7.1.82 : Tamilnadu Wind -‐ Power Export (at Bus Bar) (MU's)

5.00%

23.00% 23.00% 25.00%

15.00%

25.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%


Fig. 7.1.83 : Tamilnadu Wind -‐ PLF (%)


85.23%

95.00% 97.56%

95.00%

89.68%

95.00%

76.00%

80.00%

84.00%

88.00%

92.00%

96.00%

100.00%


Fig. 7.1.84 : Tamilnadu Wind -‐ Plant Availability (%)

4.97%

2.00% 2.00% 2.00% 2.00% 2.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%


Fig. 7.1.85 : Tamilnadu Wind -‐ Aux. Power Consump>on (%)

35.10

5.35 2.99 2.84

5.11 3.55

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00


Fig. 7.1.90 : Tamilnadu Wind -‐ Fixed Cost (Rs/kwh)

35.10

5.35 2.99 2.84

5.11 3.55

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00


Fig. 7.1.91 : Tamilnadu Wind -‐ Cost of Genera;on (F+V) (Rs/kwh)

5 3 1

33.37

1.35 0.5

30

18

6

0 5

10 15 20 25 30 35 40

FY12 FY13 FY14

No. of CIPs Rs. Cr No. of Employees involved

Fig. 7.1.92 : Capex Op1miza1on CIPs

8 7 4 3.00

20.82

1.21

48 42

24

0

10

20

30

40

50

60

FY12 FY13 FY14


Fig. 7.1.93 : Cost Reduc4on CIPs

42 39 12 0 1.87 0.22

252 234

72

0

50

100

150

200

250

300

FY12 FY13 FY14


Fig. 7.1.94 : Process Improvement CIPs

205 209

353

84 91 117

0.46 3.98 1.78 0

50 100 150 200 250 300 350 400

FY12 FY13 FY14

Ideas received Ideas approved Savings (Rs. Cr)

Fig. 7.1.95 : Idea Factory

11

1.58 2 0.67

0

2

4

6

8

10

12

No. of Projects Savings (Rs. Cr)

Project Bijlee Project Paani

Fig. 7.1.96 : Project Bijlee & Paani

27 19

39

53

67 69

0 10 20 30 40 50 60 70 80

FY12 FY13 FY14

KSS & Power Talks (Nos.) Employee ParCcipaCon

Fig. 7.1.97 : KSS / Power Talks and Employee Par=cipa=on to KM Ac=vi=es


Fig. 7.1.98 – Learning documents compiled

Fig. 7.1.100 : S Curve – EPC – CTPP Project Fig. 7.1.101 : S Curve – Engineering Progress – CTPP Project

4.15 4.01 3.96 4.16 3.86 4.03 4.11 4.05 3.99 4.15

3.76 4.01 4.15 4.06 3.96 4.1

3.61 3.99

5.00 5.00 5.00 5.00 5.00 5.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Overall Experience with GMR (Index)

Sourcing & Contract Management (Index)

PO Process : Supply / Service (Index)

Onsite Working condiQons (Index)

Payment process (Index) Vendor SaQsfacQon Score (Index)

FY12 FY13 FY14 Target

Fig. 7.1.99 : Supplier Sa1sfac1on Index

Fig. 7.1.102 : S Curve – Procurement – CTPP Project Fig. 7.1.103 : S Curve – Construction – CTPP Project


Fig. 7.1.104 : S Curve – Over all progress – CTPP Project


7.2 cUSTOMER-fOcUSED OUTcOMES

4.3

4.4

4.1

4.2

3.95 4.00 4.05 4.10 4.15 4.20 4.25 4.30 4.35 4.40 4.45

FY11 FY12 FY13 FY14 Target

Fig. 7.2.1 : GPCL -‐ CSI (Index)

68

65

72

63

58

60

62

64

66

68

70

72

74


Fig. 7.2.2 -‐ GPCL -‐ Customer Mee5ngs (Nos.)

148 182

250

130

0

50

100

150

200

250

300


Fig. 7.2.3 : Customer workshops / Interac;ons -‐ Power Trading (Nos.)

148 182

250

130

0

50

100

150

200

250

300


Fig. 7.2.4 : Customer Visits / Mee5ngs -‐ Power Trading (Nos.)

3

0 0

1

1

2

2

3

3

4


Fig. 7.2.5 : Concerns raised by Power Trading Customers (Nos.)

4.60 4.64

4.60

5.00

4.40

4.50

4.60

4.70

4.80

4.90

5.00

5.10


Fig. 7.2.6 : Customer Sa4sfac4on Survey Index -‐ Power Trading (Index)


10

8 7

4

0

2

4

6

8

10

12

FY11 FY12 FY13 FY14

Fig. 7.2.7 : Complaints received -‐ Power Trading (Nos)

0 0 3

25

0

5

10

15

20

25

30


Fig. 7.2.8 : Customer Base -‐ OA Customers -‐ Bilateral (Nos)

27

43

103 114

0

20

40

60

80

100

120


Fig. 7.2.9 : Customer Base -‐ OA Customers -‐ Exchange (Nos.)


7.3 WORKfORcE-fOcUSED OUTcOMES

2.04

2.75

1.39 1.34

1.92

2.71

2.01

1.19

0.00

0.50

1.00

1.50

2.00

2.50

3.00

FY11 FY12 FY13 FY14

Technical (Mandays/Employee) Behavioral (Mandays/Employee)

Fig. 7.3.3 : Training Ra.o

250 251 215

91

145 166

34 16

0

50

100

150

200

250

300

FY11 FY12 FY13 FY14

Internal (Nos) External (Nos)

Fig. 7.3.4 : Training Programs

3129

5098

4265

1186 633 839

402 40

0

1000

2000

3000

4000

5000

6000

FY11 FY12 FY13 FY14

Internal (Mandays) External (Mandays)

Fig. 7.3.5 : Training Mandays

11 33 0 0 11 33 0 0 23 20 0 0 6 7 6 2

203

100

429 458

0 50

100 150 200 250 300 350 400 450 500

FY11 FY12 FY13 FY14

PDD CIDP LDP DC ELP YG & STEP CEPCOM

Fig. 7.3.6 : Employees covered under Talent Management

260 288

187

79

135 120

28 15

0

50

100

150

200

250

300

350

FY11 FY12 FY13 FY14

Technical (Nos) Behavioral (Nos)

Fig. 7.3.1 : Training Programs

1935

3142

3740

913

1827

3103

526 273

0

500

1000

1500

2000

2500

3000

3500

4000

FY11 FY12 FY13 FY14

Technical (Mandays) Behavioral (Mandays)

Fig. 7.3.2 : Training Mandays


8

98

52 76

22 10

0 0 1

31

0 4 0 11 3 4 0 3 3

153

0 5 9 5 0

20 40 60 80

100 120 140 160 180

FY11 FY12 FY13 FY14 Spot Awards Best Performer Best Employees Outstanding ContribuGon

Employees FacilitaGon I Value U Zeal Factory Star of the Month

Fig. 7.3.8 : Employees covered under Reward & Recogni<on

50

139

48 68

8 16 7 9

0 20 40 60 80

100 120 140 160

FY11 FY12 FY13 FY14

SLM THM

Fig. 7.3.9 : Leadership Communica8on

403 417

249

171

70 30

0 50

100 150 200 250 300 350 400 450

FY11 FY12 FY13 FY14 DIAL FY14 GHIAL FY14

Fig. 7.3.10 : Talent Acquisi6on (Nos.)

29.5

58

94

25.8

88.23

30.6 35.7

18.87

0

20

40

60

80

100

FY12 FY13 FY14 DIAL FY14 GHIAL FY14 Cycle Time of Recruitment (No of Days)

Recruitment Cost (Rs. Lakhs)

Fig. 7.3.11 : Cost of Hiring and Cycle Time

20

12

4 5

15 17

0 0 0

5

10

15

20

25

FY11 FY12 FY13 FY14

Within Sector (Nos) Within Group (Nos)

Fig. 7.3.12 : Job Rota1on under IJP

10.74 9.52

10.60

18.64

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00

FY11 FY12 FY13 FY14

Fig. 7.3.13 : A+ri-on (%)

100 100 100 100 100 100 100 100

0

25

50

75

100

FY11 FY12 FY13 FY14 Employees coverage under V&B (%)

Employees coverage under COBCE (%)

Fig. 7.3.14 : Employees coverage under V&C and COBCE


31.74

40.40 40.89

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

FY12 FY13 FY14

Fig. 7.3.15 : % employees gap addressed -‐ CEPCOM Based (%)

6.45 5.03

9.20

13.90

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

FY11 FY12 FY13 FY14

Fig. 7.3.16 : A,ri.on levels of New Joiners (Within one year) (%)

3.76 4.04 4.00 3.62

3.99 4.05

0.00

1.00

2.00

3.00

4.00

5.00

2011 2012 2013 2014

Energy Group

Fig. 7.3.18 : Employee Engagement Score

131 153

110

147

27 20 17 31

0 20 40 60 80

100 120 140 160 180

FY11 FY12 FY13 FY14

New employees eligible under PMP [First Cycle] (Nos)

% employees rated EE & Above (Nos)

Fig. 7.3.19 : New Employees Eligible under PMP (First Cycle) (Nos.)

4.30 4.30

4.35

4.37

4.26

4.28

4.30

4.32

4.34

4.36

4.38

FY11 FY12 FY13 FY14

Fig. 7.3.20 : Training Effec3veness Index (Level 1 -‐ Reac3on Feedback) (Score)

50

75 78 80

0

10

20

30

40

50

60

70

80

90

FY11 FY12 FY13 FY14

Fig. 7.3.21 : Adherence to Training Calendar (%)

2

13

24

64

0

10

20

30

40

50

60

70

FY11 FY12 FY13 FY14

Fig. 7.3.22 : Posi-ons closed through Portal [No consultants] (%)

95

97

96

93

91

92

93

94

95

96

97

98

FY11 FY12 FY13 FY14

Fig. 7.3.23 : Adherence to Hiring Plan (%)


Hay Group (Job evaluation Job design) year 2014

No. of Employees Assessed 1150

No. of Unique positions identified 234

No. of CTRs completed 1150

163

59

1

50

88

12

0 20 40 60 80

100 120 140 160 180

No. of cri2cal posi2ons iden2fied

% posi2ons for which step in and long term successors mapped

% mapped posi2ons actually filled by ST/LT

successors

FY13 FY14

Fig. 7.3.23A : Succession planning

1923

910

369

0

500

1000

1500

2000

2500


Fig. 7.3.24 : First Aid Cases (Nos)

6

0 1

7

12

6

1

5 6

4

0

2

6

2

0

2

4

6

8

10

12

14


Fig. 7.3.25 : Medical Treatment Cases (Nos) No. of Reportable incidents (Nos) LTI (Nos) Fatality (Nos)

Fig. 7.3.25 : Medical Treatment Cases, Reportable Incidents, LTI, Fatality

0.12

0.18 0.20

0.18 0.20

0.00

0.05

0.10

0.15

0.20

0.25


Fig. 7.3.26 : LTIFR (Rate)


0.56

488.90

550.03

366.03

0 0.044 0.098 0.06

0 42.8 14.89 11.23

0.00

100.00

200.00

300.00

400.00

500.00

600.00


LTI Severity (Rate) Fatality Incidence Frequency (Rate) First Aid Injury Frequency (Rate)

Fig. 7.3.27 : LTI Severity Rate, Fatality Incidence Frequency Rate, First Air Injury Frequency Rate

141

51

0

20

40

60

80

100

120

140

160


Fig. 7.3.28 : Near Miss (Nos)

4790

13734

18368

10463

0 2000 4000 6000 8000

10000 12000 14000 16000 18000 20000


Fig. 7.3.29 : Tool box mee2ng (Nos)

299

2703

4930

3843

0

1000

2000

3000

4000

5000

6000


Fig. 7.3.30 : Unsafe Condi3ons, Unsafe Act (Nos)

18 18

0 2 4 6 8

10 12 14 16 18 20


Fig. 7.3.31 : Mock Drill conducted (Nos)

3616

1367 1311

409

0

500

1000

1500

2000

2500

3000

3500

4000


Fig. 7.3.32 : Safety Training programs (Nos)

0 0 0 0 0

1

2

3

4

5


Fig. 7.3.33 : OH Diseases detected (Nos)

No OH Diesases case detected


0 0 0

10175

0

2000

4000

6000

8000

10000

12000


Fig. 7.3.34 : Coverage of Workforce under periodic medical examina;on (Nos)

0 0 0 0 0

0.2

0.4

0.6

0.8

1


Fig. 7.3.35 : Reportable Environment Incidence (Oil spillage, toxic / ash discharge, Acid leakage,

ESP failure etc.) (Nos)

No Reportable Environment Incidence

0 0

28

44

0 5

10 15 20 25 30 35 40 45 50


Fig. 7.3.36 : EHS Promo1onal Campaign (Nos)

0 0

20

9

0

5

10

15

20

25

FY11 FY12 FY13 FY14

Major Fire Incidents (Nos) Minor Fire Incidents (Nos)

Fig. 7.3.37 : Fire Incidences (Nos.)


7.4 lEaDERSHIP aND GOvERNaNcE OUTcOMES

fig. 7.4.2 : Ethical culture Survey, concerns Raised-Resolved, Resolution cycle Time & System Improvement

Sr No. Process fy12 fy13 fy14

1 Ethical Culture Survey Nil 3.83 Planned Every Alternate Year

2 Ethics/ Fraud Awareness Training Programs conducted. Nil Nil 12

3 Ethics complaints received. ( Whistle Blower) Nil Nil 3

4 Corrective action on WB complaints received. Nil Nil 3

5 Resolution Cycle time (Energy) Nil Nil < 45 Days

6 Alert Notes based on Intelligence inputs Nil Nil 12

7 System Improvement Notes based on WBP/other complaints Nil Nil 6

29

39

55 61

0

10

20

30

40

50

60

70


Fig. 7.4.3-‐1 : Senior Leadreship personal involvement in Founda<on Ac<vi<es (Nos)

340

827 863

657

0 100 200 300 400 500 600 700 800 900

1000


Fig. 7.4.3-‐2 : GMR Site Employees Involved in Founda?on Ac?vi?es (Nos)

68681

93200 94750 95000

0 10000 20000 30000 40000 50000 60000 70000 80000 90000

100000


Fig. 7.4.4 : No. of Beneficiaries (Nos)

383.2

416.6 428.6

457.79

340

360

380

400

420

440

460

480


Fig. 7.4.5 : GMRVF Spend (Rs. Lakhs)

26.4

28.2

25.5

26

26.5

27

27.5

28

28.5

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.4.6 : GKEL -‐ Stack Emission : SPM (mg/NM3)

Statutory limit 50 mg/NM3


19.0

108.0

44.0

0.0 7.7

81.0

42.0

0.6 11.0

70.0

41.0

0.6 13.0

106.0

41.0

0.6 0.0

20.0

40.0

60.0

80.0

100.0

120.0

SOX (MT) NOX (mg/NM3) Dust SPM (mg/NM3) PPM Ammonia (PPM) CO2

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.4.7 : EMCO Stack Emission Statutory limit SOX -‐ 46MT NOX -‐ 150 mg/NM3 Dust -‐ SPM -‐ 50 mg/NM3 PPM -‐ Ammonia -‐ 50 PPM CO2-‐

265

4228

120 544

254

4121

137

528

181

2933

98 374 239

3871

129

499

0

500

1000

1500

2000

2500

3000

3500

4000

4500

SOX(MT/Annum) NOX (MT/Annum) Dust(MT/Annum) CO2 (1000 MT/Annum)

FY11 FY12 FY13 FY14

Fig. 7.4.8 : GPCL Stack Emission Statutory limit SOX -‐ 190 ppm NOX -‐ 1100 ppm Dust -‐ 150 mg/NM3

59.05

33.64

13.50 7.90

0.30

64.81

36.64

13.26 8.34

0.35 0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

PM10 (µg/m3) PM2.5 (µg/m3) NOX (µg/m3) SO2 (µg/m3) CO-‐1Hr (mg/m3)

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.4.9 : GKEL Ambient Air Quality Statutory limit PM10 -‐ 100 µg/m3 PM2.5 -‐ 60 µg/m3 NOX -‐ 80 µg/m3 SO2 -‐ 80 µg/m3 CO-‐1Hr -‐ 4 mg/m3

76.00

44.00

7.20 9.63

79.00

32.67

7.17 10.40

63.33

26.67

7.57 10.67

58.00

24.67

9.50 12.90

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

PM10 (µg/m3) PM2.5 (µg/m3) SOX (µg/m3) NOX (µg/m3)

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.4.10 : EMCO Ambient Air Quality -‐ Loca?on Switch Yard Statutory limit PM10 -‐ 100 µg/m3 PM2.5 -‐ 60 µg/m3 SOX -‐ 80 µg/m3 NOX -‐ 80 µg/m3


74.00

40.33

8.00 10.33

63.33

28.67

7.03 10.47

63.67

23.67

6.50 9.33

60.00

24.00

7.70 8.50

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00


Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.4.11 : EMCO Ambient Air Quality -‐ Loca>on Reservoir Statutory limit PM10 -‐ 100 µg/m3 PM2.5 -‐ 60 µg/m3 SOX -‐ 80 µg/m3 NOX -‐ 80 µg/m3

80.00

45.00

10.00 11.00

75.00

37.00

8.00 12.00

71.00

31.00

8.00 12.00

70.00

32.00

9.00 12.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00


Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14

Fig. 7.4.12 : EMCO Ambient Air Quality -‐ Loca?on CHP Statutory limit PM10 -‐ 100 µg/m3 PM2.5 -‐ 60 µg/m3 SOX -‐ 80 µg/m3 NOX -‐ 80 µg/m3

8.91 8 8.73 8.47

24.68

31.05

23.52 20.14

22.42 26.55

21.74 22.93

0

5

10

15

20

25

30

35

FY11 FY12 FY13 FY14

SOX (µg/m3) NOX (µg/m3) PM10 (µg/m3)

Fig. 7.4.13 : GPCL Ambient Air Quality Statutory limit SOX -‐ 80 µg/m3 NOX -‐ 80 µg/m3 PM10 -‐ 100 µg/m3

73.6 74.1 59.4 58.7

61.9 61.9 61.9 61.9 58.9 58.9 58.9 58.9

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 GKEL -‐ Plant Noise Level (dbA -‐ Day) GKEL -‐ Plant Noise Level (dbA -‐ Night)

EMCO -‐ Plant Noise Level (dbA -‐ Day) EMCO -‐ Plant Noise Level (dbA -‐ Night)

Fig. 7.4.14 : Plant Noise Level (GKEL & EMCO)

Statutory Limit Day -‐ 75 dbA Night -‐ 70 dbA

58.80 59.20

58.60

59.90

57.50 58.00 58.50 59.00 59.50 60.00

FY11 FY12 FY13 FY14

Fig. 7.4.15 : GPCL -‐ Plant Noise Level

Fig. 7.4.15 : GPCL -‐ Plant Noise Level

Statutory Limit 75 dbA


15000 15000 10000 12000

25000 30000

40000 40000 40000

50000

30000

20000 20000 18500

0

10000

20000

30000

40000

50000

60000

GKEL -‐ No. of saplings planned

GKEL -‐ No. of saplings actual

EMCO -‐ No. of saplings planned

EMCO -‐ No. of saplings actual

CTPP -‐ No. of saplings planned

CTPP -‐ No. of saplings actual

FY11 FY12 FY13 FY14

Fig. 7.4.16 : Green Belt development -‐ GKEL, EMCO, CTPP

543534 527719

374104

498505

0

113956

321755

0 0

100000

200000

300000

400000

500000

600000

FY11 FY12 FY13 FY14 GPCL -‐ Carbon Footprint -‐ (Tons of CO2/Annum) GVPGL -‐ Carbon Footprint -‐ (Tons of CO2/Annum)

GVPGL -‐ Points Credited -‐ (CER's)

Fig. 7.4.17 : Carbon Footprint -‐ G&L Plants


7.5 fINaNcIal aND MaRKET OUTcOMES

1968 2241 2152

2986

5326

0

1000

2000

3000

4000

5000

6000

FY11 FY12 FY13 FY14 Target FY14

Fig. 7.5.1 : Revenue (Rs. Cr)

473

251 140 151

1131

0

200

400

600

800

1000

1200


Fig. 7.5.2 : EBITDA (Rs. Cr)

196

-‐54

-‐620

-‐1348

-‐580

-‐1600

-‐1400

-‐1200

-‐1000

-‐800

-‐600

-‐400

-‐200

0

200

400


Fig. 7.5.3 : PBT (Rs. Cr)

78

-‐134

-‐728

-‐1338

-‐621

-‐1600

-‐1400

-‐1200

-‐1000

-‐800

-‐600

-‐400

-‐200

0

200


Fig. 7.5.4 : PAT (A.er minority) (Rs. Cr)

24.03

11.20

6.51 5.06

21.24

0.00

5.00

10.00

15.00

20.00

25.00

30.00


Fig. 7.5.5 : EBITDA Margin (%)

3.96

-‐5.98

-‐33.83

-‐44.81

-‐11.66

-‐50

-‐40

-‐30

-‐20

-‐10

0

10


Fig. 7.5.6 : PAT Margin (%)


2.92

1.36

0.40 0.14

0.98

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50


Fig. 7.5.9 : EBITDA / Interest (Ra9o)

1.64

3.81 4.62

7.85

5.54

0

1

2

3

4

5

6

7

8

9


Fig. 7.5.10 : Net Debt : Equity (Ra7o)

1347

1130

630

1476 1477

0

200

400

600

800

1000

1200

1400

1600


Fig. 7.5.11 : Cash & Cash Equivalent (Rs. Cr)

8.66 7.42

3.57

8.03

25.79

0.00

5.00

10.00

15.00

20.00

25.00

30.00


Fig. 7.5.14 : Trading Margins (Rs. Cr)

Corporate Head Office: IBC Knowledge Park, 10th Floor, "D" Block,Bannergatta Road, Bangalore - 560 029

www.gmrgroup.in

Energy Revenue increased by

38.43% 125%Trading margin

improved by

LTIFR reduced to 0.18 from 0.20

Cost Optimization exercise inGEMS leading to annualized savings of

Idea generation improvedby 40.79% (YoY), Total savingsfrom Implemented ideas14 Mn USD

` 6.22 Cr

EMCO Unit 1 & 2 and GKEL Unit 1,2 & 3commissioned leading to increase

in installed power generationcapacity by 1650 MW