corporate social responsibility 1 (repaired)

8/7/2019 Corporate social responsibility 1 (Repaired)

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Largest Indian Power Company Powering People¶s Progress

PREFACE

Training is an important and inevitable part of MBA. The main objective of

Practical training is to develop skill in student by supplement to the theoretical study

of business management in general. Industrial training helps to gain real life

knowledge about the industrial environment and business practices. The MBA

Programme provides student with a fundamental knowledge of business and

organizational functions and activities, as well as an exposure to strategic thinking

of management.

In every professional course, training is an important factor. Faculties give us

theoretical knowledge of various subjects in the college but we are practically

exposed of such subjects when we get the training in the organization. It is only the

training through which I come to know that what an industry is and how it works can learn about

various departmental operations being performed in the industry,

which would, in return, help me in the future when I will enter the practical field.

Training is an integral part of MBA and each and every student

undergo the training in a company and then prepare a project report on the same after the

completion of training.

During this whole training I got a lot of experience and came to know about

the management practices in real that how it differs from those of theoretical

knowledge and the practically in the real life.

In today¶s globalize world, where cut throat competition is prevailing in the

market, theoretical knowledge is not sufficient.

practical knowledge, which would help an individual ³Experience is best teacher´.




ACKNOWLEDGEMENT

Through this acknowledgement I express my sincere gratitude towards all those people who

helped me in this project, which has been a learning experience.

I am highly grateful to Mr. Shibu John, HOD, Jamia Hamdard (MBA) NEW DELHI,for

providing this opportunity to carry out the six weeks training at Ayurvet Ltd, Delhi.

I am thankful Mr. VINOD RUHELA, HEAD-HR & Ms. Swati Gupta (HR) for guiding me

throughout this study. Without their help this dissertation would have not be completed.

The help rendered by Mr. Gurdev Singh (HR) for experimentation is greatly acknowledged.

I appreciate the co-ordination extended by my friends and also express my sincere thankfulness

to the entire faculty members of Jamia Hamdard University, Delhi, giving me the opportunity to

do this project/study and also assisting me for the same.

TABLE OF CONTENT




Serial No. Topics Page No

1 Executive Summary

2 Introduction

3 Objective of the study

4 Research methodology

5 Limitations of the study

6 Power generation sector in

INDIA

7 Company profile(About NTPC)

8 CSR at NTPC

9 Introduction to BTPS

10 CSR at BTPS

11 Introduction to HR department at

BTPS

12 Various HR sections at BTPS

13 Analysis of the questionnaire




14 Findings

15 Conclusion

16 Recommendations

17 Format of questionnaire

18 References

EXECUTIVE SUMMARY

The research conducted at NTPC Limited Badarpur, Delhi was descriptive as well as exploratoryin nature. A research study and survey was conducted to attain the objective of the research. Thetopic of the project was ³CSR ACTIVITIES UNDERTAKEN BY NTPC AND BY NTPCBADARPUR DELHI´. The research was conducted keeping in mind the following objectives:y

Understanding of and attitude of CSR

y

Actions taken in pursuit of a more socially responsible approach especially relating

to,

Human Resources,

Environment

Community, at local and national level

y

Structural arrangements for CSR

To carry out the survey questionnaire method was used to obtain the required information.Random/judgmental/convenient sampling were used as the mode of conducting the research.40 employees were surveyed in the survey including employees from HR, Finance and Technicaldepartment.All the information generated from the survey, interaction and research study was compiled inthe form of a highly presentable and comprehensible report.




After doing the research study it was found that NTPC Limited as a whole and NTPC Badarpur is highly engaged in various level of CSR activities. NTPC is highly concerned about itssurroundings and is continuously working to develop its surroundings and to minimize theimpact of its activities on the environment .NTPC, through its various divisions is contributing amajor part of India¶s power generation and with the help of these divisisons it is continuouslytrying to uplift the weaker section of the society and to preserve the environment.The survey conducted at NTPC Badarpur in order to access the awareness of the employeesabout the CSR activities undertaken by their unit shows that most of the employees wereunaware of the policies undertaken by NTPC Badarpur except the people working in CSR division .

Corporate social responsibilityCorporate social responsibility (CSR), also known as corporate responsibility, corporate

citizenship, responsible business, sustainable responsible business (SRB), or corporate

social performance, is a form of corporate self-regulation integrated into a business model .

Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby

business would monitor and ensure its support to law, ethical standards, and

international norms . Consequently, business would embrace responsibility for the impactof its activities on the environment, consumers, employees, communities, stakeholders and

all other members of the public sphere . Furthermore, CSR-focused businesses

would proactively promote the public interest by encouraging community growth and

development, and voluntarily eliminating practices that harm the public sphere, regardless

of legality. Essentially, CSR is the deliberate inclusion of public interest into

corporate decision-making , and the honoring of a triple bottom line : People, Planet, Profit.

"More and more companies are accepting corporate citizenship as a new strategic and

managerial purpose requiring their attention. Once seen as a purely charitable activity a

source of general goodwill, with no bottom-line consequence citizenship is moving from the

margins of concern to the center at leading companies."




Today, there are many references to corporate social responsibility (CSR), sometimes

referred to as corporate citizenship, in our workplaces, in the media, in the government, in

our communities. While there is no agreed-upon definition, the World Business Council for

Sustainable Development defines CSR as the business commitment and contribution to the

quality of life of employees, their families and the local community and society overall to

support sustainable economic development. Simply put, the business case for CSR--

establishing a positive company reputation and brand in the public eye through good work

that yields a competitive edge while at the same time contributing to others--demands that

organizations shift from solely focusing on making a profit to including financial,environmental and social responsibility in their core business strategies. Despite what the

phrase corporate social responsibility suggests, the concept is not restricted to corporations

but rather is intended for most types of organizations, such as associations, labor unions,

organizations that serve the community for scientific, educational, artistic, public health or

charitable purposes, and governmental agencies.

All organisations have an impact on the society and the environment through theiroperations, products or services, and through their interactions with key stakeholder

groups including employees, customers/clients, suppliers, investors and the local

community. This is demonstrated in the diagram given below:




Meaning of Corporate Social Responsibility

There is no single commonly accepted notion of Corporate Social Responsibility (CSR).

CSR means many things but it usually centres on the concept of ³sustainable

development´.

It has been described/defined in many ways:




y

CSR is described as ³ how business takes account of its economic, social and

environmental impacts in the way it operates ± maximizing the benefits and minimizing

the downsides ´. In other words, it is about taking responsibility for the impact of our

business on all those who are affected by it.

y

According to World Business Council for Sustainable Development (WBCSD), CSR

is ³the continuining commitment by the business to behave ethically and to

contribute to economic development while improving the quality of life of the

workforce and their families as well as local community and society at large´

y

Business for Social Responsibility suggests the idea of CSR relates to business-

decision making linked to ethical values, compliance with legal requirements andrespect for people, communities and the environment, in a manner that meets or

exceeds ethical, legal, commercial and public expectations, that society has of

business.

Under these and most other definitions CSR is essentially about what organisations do,

how they do it and the impact of their behaviour on the wider society. It focuses on a

variety of issues ranging from actions in the workplace and marketplace to questions such

as community investment, environment impact, business ethics and human rights.

Thus CSR can be summed up as follows:

y

A voluntary activity in excess of legal compliance

y

Acting in an ethical values

y

Creating positive working environment for employees

y

Giving back to the local community and the society at large

y

Minimising the adverse impact of the operations of the company on the environment

Importance of Corporate Social Responsibility




Every business needs to recognise the impact of its operations on the world. The way they

do business dictates the footprint they leave behind. If they take the time to ³maximise the

benefits and minimise the downsides´ then they can help to create a better world.

Corporate social responsibility in business isn¶t just a do-gooders¶ charter or latest example

of regulatory overdrive. It is about creating sustainable businesses through the best

possible relationships with their communities and stakeholders.

The expectations of the traditional stakeholders ± shareholders, customers, and employees

are increasing and so, too, is the list of groups wanting to know how an organisation is run.

As a result, more and more companies are working harder not only to make a positive

impact on society and the environment through their operations, products or services, but

also to demonstrate it to these groups.

A comprehensive set of policies, practices and programmes incorporated throughout a

business can increase productivity, contribute to competitiveness, improve staff

recruitment and retention rates and create a more positive corporate image.

Unfortunately, many companies only use the responsible business approach as a risk

management tool. This limits the benefits that could be achieved through focusing on

opportunity rather than risk. Socially responsible business is not about restricting business

growth; it¶s about creating new opportunities, the better way of doing business .




The main aim of the research was to examine how far the notion of Corporate Social

Responsibility has permeated the NTPC organisation in both attitudinal and behavioural

sense.

The essence of the research study was to explore the underlying attitudes, beliefs and

assumptions of NTPC with regard to social, ethical and environmental issues and to




investigate what actions have been taken by the enterprise in pursuit of a more socially

responsible approach.

The research was designed to focus specifically on a number of key areas. These include:

y

Understanding of and attitude of CSR

y

Actions taken in pursuit of a more socially responsible approach especially relating

to,

Human Resources,

Environment

Community, at local and national levely

Structural arrangements for CSR

RESEARCH METHODOLOGY

NATURE OF RESEARCH

The present research on Corporate Social Responsibility is both exploratory and descriptive in

nature, which helps in analyzing the CSR activities undertaken by NTPC as a whole and by

NTPC Badarpur.

DATA COLLECTION AND DATA SOURCE

The methodology for Data collection is a balance of primary and secondary sources. Primary

sources include personal visits to the companies and secondary includes the information

collected from various books, magazines and websites.




For primary data:

j

Structured Questionnaire/ interviews

j

Personal visit to the company

For secondary data:

j

NTPC news jornals

j

Internet

SAMPLING DESIGN

j

Sampling Unit :-It is defined as the geographical area from which sampling is to be

done. Here it is NPPC Ltd Badarpur, Delhi.

j

Sampling plan :-Both Random and judgemental sampling is done.

j

Sample Size :- 40




STATISTICAL TOOLS AND INSTRUMENTS

The study will be analyzed through statistical tools and instruments such as:

j

Pie Chart

j

Bar Diagram

j

Percentage

j

Questionnaire

LIMITATIONS OF THE STUDY

Various limitations encountered by me during this study are as follows-

1-The data related to the CSR activities at NTPC Badarpur was not easily available.

2-There was a vast amount of data available on CSR activities of NTPC as a whole which

was difficult to be sorted out.

3-While conducting a survey on the employees regarding there awareness about CSR

activities conducted in their organization it was found that most of the employees were noteven aware about the activities.

4-Most of the employees were not even ready to fill the questionnaire due to their busy

schedule.

5-During personal interview with some of the employees dealing with the CSR activities in

the division some were not even ready to provide relevant information due to lack of time.

6-No information was available on this topic at BTPS intranet.




Electricity sector in IndiaThe electricity sector in India is predominantly controlled by the Government of

India 's public sector undertakings (PSUs). Major PSUs involved in the generation of

electricity include National Thermal Power Corporation (NTPC), National Hydroelectric

Power Corporation (NHPC) and Nuclear Power Corporation of India (NPCI). Besides

PSUs, several state-level corporations, such as Maharashtra State Electricity

Board (MSEB), are also involved in the generation and intra-state distribution of

electricity. The PowerGrid Corporation of India is responsible for the inter-state

transmission of electricity and the development of national grid.

The Ministry of Power is the apex body responsible for the development of electrical

energy in India. This ministry started functioning independently from 2 July 1992; earlier,

it was known as the Ministry of Energy. The Union Minister of Power at present

is Sushilkumar Shinde of the Congress Party who took charge of the ministry on the 28thof May, 2009.

.

The Ministry of Power (MoP) is coordinated by Central Electricity Authority (CEA) in all

technical and economic aspects. Along with the CEA, other subsidiary organizations of the

Mop are:

National Thermal Power Corporation (NTPC)

National Hydro Electric Corporation (NHEC)

Power Finance Corporation of India (PFCI)

Nuclear Power Corporation of India Limited




North Eastern Electric Power Corporation (NEEPC)

Rural Electrification Corporation (REC)

Damodar Valley Corporation (DVC)

Bhakra Beas Management Board (BBMB)

Tehri Hydro Development Corporation (THDC)

Satluj Jal Vidyut Nigam (SJVN)

Power Grid Corporation of India Ltd (Power Grid India)

Power Trading Corporation (PTC)

Bureau of Energy Efficiency (BEE)

Power Infrastructure In INDIA :

The power industry in India derives its funds and financing from the government, some

private players that have entered the market recently, World Bank, public issues and other

global funds. The Power Ministry India has set up Power Finance Corporation of India

that looks after the financing of the power sector in India. The Power Finance Corporation

Limited provides finance to major power projects in India for power generation andconversion, distribution and supply of power in India.

Power Finance Corporation (PFC) Ltd India also looks after the installation of any new

power projects as well as renovation of an existing power project India. The PFC in

association with central electricity authority and the ministry of power facilitates the

development in infrastructure of the power sector India. They have taken up construction

of mega power projects that will answer to the power shortage in various states through

power transmission through regional and national power grids.

India is world's 6th largest energy consumer, accounting for 3.4% of global energy

consumption. Due to India's economic rise , the demand for energy has grown at an average




of 3.6% per annum over the past 30 years. In March 2009, the installed power generation

capacity of India stood at 147,000 MW while the per capita power consumption stood at

612 kWH . The country's annual power production increased from about 190 billion kWH

in 1986 to more than 680 billion kWH in 2006.The Indian government has set an ambitious

target to add approximately 78,000 MW of installed generation capacity by 2012. The total

demand for electricity in India is expected to cross 950,000 MW by 2030.

About 75% of the electricity consumed in India is generated by thermal power plants , 21%

by hydroelectric power plants and 4% by nuclear power plants . More than 50% of India's

commercial energy demand is met through the country's vast coal reserves. The country

has also invested heavily in recent years on renewable sources of energy such as wind

energy . As of 2008, India's installed wind power generation capacity stood at 9,655

MW. Additionally, India has committed massive amount of funds for the construction of

various nuclear reactors which would generate at least 30,000 MW. In July 2009, India

unveiled a $19 billion plan to produce 20,000 MW of solar power by 2020.

Electricity losses in India during transmission and distribution are extremely high and

vary between 30 to 45%. In 2004-05, electricity demand outstripped supply by 7-11% Due

to shortage of electricity, power cuts are common throughout India and this has adversely

effected the country's economic growth. Theft of electricity, common in most parts of

urban India, amounts to 1.5% of India's GDP.Despite an ambitious rural electrification

program,some 400 million Indians lose electricity access during blackouts.While 80 percent

of Indian villages have at least an electricity line, just 44 percent of rural households have

access to electricity .According to a sample of 97,882 households in 2002, electricity was the

main source of lighting for 53% of rural households compared to 36% in 1993 Multi

Commodity Exchange has sought permission to offer electricity future markets .




Generation

Grand Total Installed Capacity is 156092.91 MW .

Thermal Power

Current installed capacity of Thermal Power (as of 12/2008) is 93,398.84 MW which is

64.7% of total installed capacity.

y

Current installed base of Coal Based Thermal Power is 77,458.89 MW which comes

to 53.3% of total installed base.

y

Current installed base of Gas Based Thermal Power is 14,734.01 MW which is

10.5% of total installed base.

y

Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.9%

of total installed base.

The state of Maharashtra is the largest producer of thermal power in the country.

Hydro Power

India was one of the pioneering countries in establishing hydro-electric power plants. The

power plant at Darjeeling and Shimsha (Shivanasamudra) was established in 1898 and

1902 respectively and is one of the first in Asia . The installed capacity as of 2008 was

approximately 36877.76. The public sector has a predominant share of 97% in this sector.

Nuclear Power

Currently, seventeen nuclear power reactors produce 4,120.00 MW (2.9% of total installed

base).




Renewable Power

Current installed base of Renewable energy is 13,242.41 MW which is 7.7% of total

installed base with the southern state of Tamil Nadu contributing nearly a third of it

(4379.64 MW) largely through wind power.

Power Companies in INDIA :

Many government as well as private organizations have taken up the task of power

generation in India. The major Indian power companies playing prime are:

Bhakra Beas Management Board

Enercon Systems India

Essar Group

GMR Group

Gujarat State Petroleum Corporation Ltd

Jindal Steel & Power Limited

Karnataka Power Transmission Corporation Limited (KPTCL)

Karnataka Renewable Energy Development Limited

Konarka

Magnum Power Generation Limited

Nippo Batteries

Reliance Energy Ltd.

Shri Shakti

Durgapur Projects Limited

Satluj Jal Vidyut Nigam Ltd.

United Power




Ventral Systems Pvt. Ltd.

Enron India Power Plant

Celetronix Power India

Caterpillar Power India

Alton Power India

Thorium Power India

GE Power Controls India

Green Power India

Power for ALL by 2012

The Government of India has an ambitious mission of POWER FOR ALL BY 2012. Thismission would require that the installed generation capacity should be at least 200,000 MWby 2012 from the present level of 144,564.97 MW. Power requirement will double by 2020to 400,000MW.




ABOUT NTPC

NTPC was established as a public sector power utility by Government of India on

November 7, 1975. The reason NTPC was created was to bridge the huge electricity supply-

demand gap and the State Electricity Boards were not able to cope up with the situation.

True to the expectation, it played a key role in the development of the sector, lighting every

fourth bulb in the country, become the largest power utility of India, Sixth largest thermalpower generator in the World and the Second most efficient utility in terms of capacity

utilization. Rightly, NTPC has set for itself the Vision statement ³To be one of the world¶s

largest and best power utilities, powering India¶s growth´. In Forbes list of World¶s 2000

Largest Companies for the year 2007, NTPC occupies 411th place.

Originally, NTPC had the responsibility for electricity generation from thermal source andtransmission of the same. However, as per the Electricity Laws Amendment Act 1998,

when "Transmission" became separate activity, the transmission portion of the

Corporation was culled together to form part of the ³Power Grid Corporation of India

Ltd´. Today, NTPC has diversified interests, ranging from Hydro power generation,

distribution, power trading etc. It has also formed joint venture companies with Railways,

SAIL, Formerly BSES, TNEB etc respectively for pursuing different business interest.

NTPC's share on 31 Mar 2004 in the total installed capacity of the country was 19.4%

(21,749 MW) and it contributed 27.1% (151 Bus) of the total power generation of the

country during 2003-04. As on date the installed capacity of NTPC is through its 13 coal

based (17,480 MW), 7 gas based (3,955 MW) and 3 Joint Venture Projects (314 MW).

NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV




company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW)

and Bhilai (74 MW). NTPC is also managing Badarpur thermal power station (705 MW) of

Government of India.

NTPC¶s share on 31 Mar 2006 in the total installed capacity of the country was 19.51% and

it contributed 27.68% of the total power generation of the country during 2005-06. NTPC

has set new benchmarks for the power industry both in the area of power plant

construction and operations . It is providing power at the cheapest average tariff in the

country. With its experience and expertise in the power sector, NTPC is extending

consultancy services to various organizations in the power business.

NTPC, e, with a significant presence in the entire value chain of powergeneration business.

Vision

"A world class integrated power major, powering India¶s growth, with increasing

global presence."

Mission³Develop and provide reliable power, related products and services at competitive

prices, integrating multiple energy sources with innovative and eco-friendly

technologies and contribute to society.´




Core Values ±

BCOMITy

Business Ethics

y

C ustomer Focus

y

O rganisational & Professional

Pride

y

M utual Respect & Trust

y

Innovation & Speed

y

T otal Quality for Excellence

Future Of The Generation Business

Developing and operating world-class power stations is NTPC's core competence. Its

scale of operation, financial strength and large experience serve to provide an

advantage over competitors. To meet the objective of making available reliable and

quality power at competitive prices, NTPC would continue to speedily implement

projects and introduce state-of-art technologies.

Fuel / Energy Mix For Capacity Addition

Currently, coal has a dominant share in the power generation capacities in India. This

is also reflected in the high share of coal-based capacities in NTPC's current portfolio.




With high uncertainties involved in Domestic gas/ LNG, both in terms of availability

and prices, NTPC would continue to set up large pit-head coal based projects, including

few integrated coal cum power projects. To reduce the dependence on fossil fuels, there

is a need to push for renewable sources of power in the sector. NTPC would avail of

opportunities to add hydropower to its portfolio subject to competitive tariffs. A first

step in this direction has already been taken with the investment in Koldam Hydro

Power Project. NTPC would continue to closely monitor developments on nuclear front

also and be open to setting up around 2000 MW of Nuclear power generation capacity,

possibly through a Joint Venture. As a leader in power generation, NTPC would also

consider other energy sources such as biomass, cogeneration, fuel cells, etc for futuredevelopment thereby reducing the dependence on thermal fuels.

While a decision on the fuel/energy mix for NTPC in the future would be largely

governed by their relative tariff-competitiveness, the fuel mix in 2017 may be different

from the existing portfolio, though not very significantly.

Diversification Along The Value Chain

NTPC has achieved the distinction of being the largest thermal generating company in

India. In the past, this focus was adequate as the industry was highly regulated with

limited diversification opportunities. Over last few years, the country has been facing

acute shortages, both in coal and gas, severely affecting optimum utilisation of its power

stations and these shortages are likely to continue in future as well. This is in spite of

the fact that India is one of the largest producers of coal in the World. To safeguard its

competitive advantage in power generation business, NTPC has moved ahead in

diversifying its portfolio to emerge as an integrated power major, with presence across

entire energy value chain. In fact, to symbolise this change, NTPC has taken on a new

identity and a new name 'NTPC Limited'. NTPC has recently diversified into coal

mining business primarily to secure its fuel requirements and support its aggressive

capacity addition program. In addition, NTPC is also giving thrust on diversification in

the areas of power trading and distribution. Diversification would also allow NTPC to

offer new growth opportunities to its employees while leveraging their skills to




capitalise on new opportunities in the sector.

Establishing A Global Presence

To become a truly global company serving global markets, it is essential for NTPC to

establish its brand equity in overseas markets. NTPC would continue to focus on

offering Engineering & Project Management Services, Operations & Maintenance

services, and Renovation & Modernization services in the international market.

Establishing a successful services brand would be a precursor to taking higher

investment decisions in different markets. Going forward, NTPC would continue to

evaluate various options for strengthening its presence in global markets includingsetting up power generation capacity, acquisition of gas blocks etc.

Circa 2017: NTPC's Corporate Profile

By the year 2017, NTPC would have successfully diversified its generation mix,

diversified across the power value chain and entered overseas markets. As a result

NTPC would have altered its profile significantly. Elements of the revised profile that

NTPC would seek to achieve are:

Amongst top five market capitalisation in the Indian market

An Indian MNC with presence in many countries

Diversified utility with multiple businesses

Setting benchmarks in project construction and plant availability & efficiency

Preferred employer

Have a strong research and technology base

Loyal customer base in both bulk and retail supply

A leading corporate citizen with a keen focus on executing its social ±responsibility




NTPC is committed to the environment , generating power at minimal environmental cost

and preserving the ecology in the vicinity of the plants. NTPC has undertaken massive a

forestation in the vicinity of its plants. Plantations have increased forest area and reduced

barren land. The massive a forestation by NTPC in and around its Ramagundam Power

station (2100 MW) have contributed reducing the temperature in the areas by about 3°c.

NTPC has also taken proactive steps for ash utilization . In 1991, it set up Ash Utilization

Division to manage efficient use of the ash produced at its coal stations. This quality of ash

produced is ideal for use in cement, concrete, cellular concrete, building material.

A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been

established in NTPC with the assistance of United States Agency for International

Development. (USAID). Cenpeep is efficiency oriented, eco-friendly and eco-nurturing

initiative - a symbol of NTPC's concern towards environmental protection and continuedcommitment to sustainable power development in India.

As a responsible corporate citizen, NTPC is making constant efforts to improve the

socioeconomic status of the people affected by its projects. Through its Rehabilitation and

Resettlement programs, the company endeavors to improve the overall socio-economic

status of Project Affected Persons.

NTPC was among the first Public Sector Enterprises to enter into a Memorandum of

Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under the

'Excellent category' (the best category) every year since the MOU system became

operative. Recognizing its excellent performance and vast potential, Government of the

India has identified NTPC as one of the jewels of Public Sector µNavratnas¶- a potential

global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to




NTPC believes in growth with a human face, and pursuing people-centered development.

NTPC is a socially committed organization and a socially responsible corporate citizen. It

attaches great importance to discharging its overall social responsibilities to the community

and the society at large where its projects and stations are located. In this regard

Resettlement and Rehabilitation (R&R) program becomes an area of sharp focus,a

program that addresses people affected directly or indirectly in the wake of the projects

undertaken by NTPC.

The Comprehensive Policy Framework

The R&R policy aims at improving the overall economic status of Project Affected Persons(PAPs). This is achieved by providing opportunities in the fields of sustainable income,

health, education, sanitation, communication and other such areas. Community

development activities are carried out in a transparent and participative manner. Each

program is based on the specific local requirement and guided by the extensive Socio

Economic Surveys (SES). This helps meet the objective of ensuring that the Project

Affected Persons (PAPs) improve or at least regain their previous standard of living.

Efforts are made to adopt a holistic approach to community development.

Thrust is also given on participation and consultation of stakeholders and setting up of

institutional mechanisms like Public Information Centre (PIC), Village Development

Advisory Committee (VDAC) etc.

The PAPs are systematically categorized on an individual basis, thereby bringing into its

fold homestead oustees, agricultural land owners, agricultural and non agricultural

laborers, tribals, occupiers cultivating forest land etc. The Resettlement and Rehabilitation

program is meticulously worked out for each PAP. The R&R policy options and

entitlements include:

ResettlementDeveloped alternate free house plot in resettlement colony with necessary

infrastructure facilities or provisions for self resettlement.

Free transport arrangement for belongings and reusable material or suitable




transport grant.

Infrastructure to be provided includes primary school, dispensary, panchayat ghar,

drinking water well/ hand pumps, WBM roads, drainage, Sulabh Sauchalaya etc.

Suitable Resettlement Grant etc.

Rehabilitation³Land for land´ on a µwilling buyer willing seller¶ basis

Other rehabilitation options based on need and requirement

Capacity Addition Programmes

Suitable Rehabilitation Grants, Subsistence Allowance etc.Other innovative measures like incentivising purchase of land by the landless etc.

Additional Economic Opportunities as per need and requirement

Ash UtilizationAsh utilization is one of the key concerns at NTPC. The Ash Utilization Division, set up in

1991, strives to derive maximum usage from the vast quantities of ash produced at its coal-

based stations. The division proactively formulates policy, plans and program for ash

utilization. It further monitors the progress in these areas and works at developing new

fields of ash utilization. The quality of ash produced conforms to the requirements of 3812.

The fly ash generated at NTPC stations is ideal for use in cement, concrete, concrete

products, cellular concrete, lightweight aggregates, bricks/blocks/tiles etc. This is attributed

to its very low loss on ignition value. To facilitate availability of dry ash to end-users all

new units of NTPC are

provided with the facility of dry ash collection system. Partial dry ash collection systems

have also been set up at the existing stations where these facilities did not exist earlier.Augmentation of these systems to 100% capacity is presently in progress. The various

channels of ash utilization currently include use by a number of Cement,Asbestos-Cement

products & Concrete manufacturing Industries , Land Development,Roads &

Embankments, Ash Dyke Raising, and Building Products. Area wise break-up of

utilization for the year 2004-05 is as under:




NTPC has adopted user friendly policy guidelines on ash utilization. These include actions

identified for:

Ash Collection & Storage System.

Facilities & Incentives to users.

Direct Department Activities.

Administrative & Financial aspects.

In order to motivate entrepreneurs to come forward with ash utilization schemes, NTPC

offers several facilities and incentives. These include free issue of all types of ash viz. Dry

Fly Ash / Pond Ash / Bottom Ash & infrastructure facilities, wherever feasible. Necessary

help and assistance is also offered to facilitate procurement of land, supply of electricity etc.from Govt. Authorities.

A forestation

The a forestation activities of the

industrial region not only serve as

foreground and background landscape

features but also contribute to the overall

improvement in the environment. The crucial need for conservation and restoration of the

degraded ecosystem and preservation of genetic resources of the country led to the

enactment of the "Wild Life Protection Act" (1974) and "Forest Act" (1980) in addition to

legal Acts of Air, Water and Environment.

Maintenance of ecological balance and pristine environment therefore, has been of utmost

importance at NTPC. Environment planning and preservation is an integral part of its

project activities. NTPC undertakes a forestation program covering vast tracts of land in

and around its projects in a concerted bid to counter growing ecological threat.




Universities are a few general guidelines followed by NTPC in the a forestation program

at their projects. The site specific a forestation details conform to the natural climatic

conditions and adaptability of species. The species are grouped into a heterogeneous

combination to impart a natural and healthy assemblage.

The arrangement of species in the green belt / buffer zone conforms to hexagonal pattern

to facilitate maximum density of species. In addition, the growth pattern and canopy are

evaluated in their actual locations of the hexagonal pattern which help uniform canopy

spreading. The tree planting, garden and park development in and around the township

adds to the general aesthetics. Plant species of medicinal value are cultivated separately

in isolated patch and information made available to residents for use appropriately.The nursery ensures good quality planting stock so vital in the success of planting

program. In order to reduce the transport cost and damage to the planting stock, nurseries

have been developed at the projects to meet the planting requirement.

NTPC has developed independent Horticulture Department at its projects headed by

experienced horticulture officers / supervisors.

Forest Bank

An innovative proposal to create "Forest Banks" in each state was wherein the ForestDepartment of all States / Union Territories should identify land to initiate plantations

under various program of the state. Such areas would facilitate any power project of

either the State or Centre to draw necessary "Compensatory A forestation Area" against

the existing balance in the Forest Bank. This will ensure that projects need not wait for

clearance for want of identification of areas and State Government's concurrence for

compensatory a forestation.

Environmental Management

Harmony between man and environment is the essence of healthy life and growth.

Therefore, maintenance of ecological balance and a pristine environment has been of

utmost importance to NTPC. Environment protection

continues to be a key area of




activity in NTPC along with growth in generation of power.

Driven by its commitment for sustainable growth of power, NTPC has evolved a well

defined environment management policy for minimizing environmental impact arising

out of setting up of power plants and preserving the natural ecology.

In November 1995, NTPC became the first public utility to bring out a comprehensive

document entitled "NTPC Environment Policy and Environment Management System".

Amongst the guiding principles, adopted in the document, are the company's proactive

approach to environment, optimum utilization of equipment, adoption of latest

technologies and continual environment improvement. The policy also envisages efficient

utilization of resources, thereby minimizing waste, maximizing ash utilization andproviding green belt all around the plant for maintaining ecological balance. NTPC's

environment-friendly approach to power has already begun to show results inconservation of natural resources such as water and fuel (coal, oil & gas) as well as

control of environmental pollution. NTPC has chalked out a set of well-defined activities

that are envisaged right from the project conceptualization stage.

Performance enhancement and up gradation measures are undertaken by the organization

during the post operational stage of the stations. These activities have greatly helped to

minimize the impact on environment and preserve the ecology in and around its power

projects. These measures have been enumerated as follows .

Environment Management System / ISO-14001

NTPC has established Environmental Management System (EMS) as per ISO-14001 at

its different establishments. As a result of pursuing sound environment management

practices, all NTPC power stations (excluding Simhadri which was commissioned

recently) as well as the Corporate Environment Management.

Environment PolicyThe Environment Policy of the Corporate Environment Management and Ash Utilization

Division as adopted in March, 2003 under the Environment Management System is stated

below.

Continual improvement of environmental performance of all NTPC power




stations in pursuance of our vision of powering India¶s growth.

Continually monitor all the stations for pollution prevention and environmental

protection.

Conservation of natural resources including land by utilizing more and more ash

generated by thermal power stations of NTPC.

Assist stations for compliance with relevant environmental legislations and

regulations.

To promote environmental awareness amongst the employees of NTPC.

To create awareness of Ash Utilization and its environmental benefits among the

Engineers, Builders, Architects, Potential Entrepreneurs, NTPC personnel andpublic at large.

Resource Conservation

With better awareness and appreciation towards ecology and environment, thermal power

utilities have been continually looking for innovative and cost effective solutions to

conserve natural resources and reduce wastes. Some of the measures include:Reduction in land requirements for main plant and ash disposal areas in newer

units.

Capacity addition in old plants, within existing land.

Reduction in water requirement for main plant and ash disposal areas through

recycle and reuse of water.

Reduction in fuel requirement through more efficient combustion and adoption of

state-of-the-art technologies such as super critical boilers.

Pollution Control Systems

While deciding the appropriate technology for its projects, NTPC integrates many

environmental provisions into the plant design. In order to keep emission, effluents and

ambient air quality well within acceptable limits, NTPC has provided the best available

equipments, devices and systems such as high efficiency Electrostatic Precipitators




(ESPs), Tall Stacks and Low NOx Burners for control of stack emissions, Dust

Extraction and Dust Suppression Systems for control of fugitive dust, Effluent Treatment

Plants, Neutralization Pits and Ash Ponds for control of the effluent quality, Ash Water

Re-circulation System and Cooling Towers for control of the effluent quality as well as

conservation of water and Sewage Treatment Plant (STP) for treatment of the domestic

sewage from its plant and township areas.

Monitoring of Environmental Parameters

A broad based Environment Monitoring Program has been formulated and implemented

in NTPC. All pollutants discharged from the power plant through stack emission, ash

pond effluent, main plant effluent, domestic effluent and Condenser Cooling Water

(CCW) effluent are monitored at the stipulated frequency at the source itself and at the

points of discharge. In addition to the above, ambient air, surface water and ground water

quality in and around NTPC plants are regularly monitored to assess any adverse impacts

as a result of operation of the power plant.

Ash Water Recycling System

NTPC is aiming at adopting the concept of "Near Zero Effluent Discharge" for once -

through ash disposal system wherein huge quantity of water is used for disposal of ash to

the ash ponds. This has been further necessitated in view of ever increasing scarcity of

water, as also, fast deterioration in water quality of our rivers and other water sources due

to discharges from polluting industries. For conservation of water, Ash Water Recycling

System has been envisaged for the ash ponds in all new projects and in a number of its

operating stations. NTPC has drawn a program for changing ash disposal systems at its

existing power plants from once-through system to recycling system where clear effluentfrom ash pond is recycled and only little quantity of blow down is required to be

discharged after treatment. The ash water recycling system has already been installed and

is in operation at a number of Stations such as Ramagundam, Talcher Kaniha, Talcher

Thermal, Kahalgaon, Korba and Vindhyachal. The scheme has helped stations to save

huge quantity of fresh water required as make-up water for disposal of ash.




Advanced / Eco-friendly Technologies

NTPC has gained expertise in operation and management of 200 MW and 500MW Units

installed at different Stations all over the country and is looking ahead for higher capacity

Unit sizes with super critical steam parameters for higher efficiencies and for associated

environmental gains. At Sipat (Chattisgarh), higher capacity Units of size of 660 MW

and advanced Steam Generators employing super critical steam parameters have already

been envisaged as a green field project.

Higher efficiency Combined Cycle Gas Power Plants are already under operation at all

gas-based power projects in NTPC. Advanced clean coal technologies such as Integrated

Gasification Combined Cycle (IGCC) have higher efficiencies of the order of 45% as

compared to about 38% for conventional plants. NTPC has initiated a techno-economic

study under USDOE / USAID for setting up a commercial scale demonstration power

plant by using IGCC technology. These plants can use low grade coals and have higher

efficiency as compared to conventional plants.

Global Compact

Globalization has brought significant advantages to countries and business around the

world but the benefits have spread unequally both within and among countries.

While the rules favoring global market expansion have grown more robust, the rules

intended to promote equally valid social objectives viz. in the areas of human rights,

labor standards and environment lag behind and in some cases actually have become

weaker.

In order to promote Corporate Social Responsibility and citizenship in the new global

marketplace, UN Secretary General, Mr. Kofi Annan first proposed the Global Compactat Davos in Jan'99. It was thus created to help organizations redefine their strategies and

course of actions so that all people can share the benefits of globalization, not just a

fortunate few.

The Global Compact¶s operational phase was launched at UN Headquarters in New York

on 26 July 2000. and has since then focused its efforts on achieving practical results and




fostering the engagement of business leaders in the direction.

Through the power of collective action, the Global Compact seeks to promote responsible

corporate citizenship so that business can be part of the solution to the challenges of

globalization. In this way, the private sector ± in partnership with other social actors ±

can help realize the Secretary-General¶s vision: a more sustainable and inclusive global

economy.

The Ten Principles of Global Compact

The Global Compact's ten principles in the areas of human rights, labour, the

environment and anti-corruption enjoy universal consensus

Human Rights

Principle 1 : Business should support and respect the protection of internationally

proclaimed human rights; and

Principle 2 : Make sure that they are not complicit in human rights abuses.

Labor

Principle 3 : Business should uphold the freedom of association and the effective

recognition of the right to collective bargaining;

Principle 4 : The elimination of all forms of forced and compulsory labor;Principle 5 : The effective abolition of child labor; and

Principle 6 : The elimination of discrimination in respect of employment and

occupation.

Environment

Principle 7 : Business should support a precautionary approach to environmental

challenges;

Principle 8 : Undertake initiatives to promote greater environmental

responsibility; and

Principle 9 : Encourage the development and diffusion of environmentally

friendly technologies.

Anti-Corruption

Principle 10 : Business should work against corruption in all its forms, including




extortion and bribery.

Participation by NTPC

Due to keenness of UN that this movement takes root in India, some business leaders

took the initiative and organized a meeting of select business leaders in Mumbai in Dec'

2000. NTPC as a prominent business and community leader in the power sector was also

invited to the meeting and thus engage/associate itself with Global Compact.

Following this meeting which was attended by CMD NTPC, NTPC agreed to be

associated with the Global Compact. In his letter in May 2001 CMD addressed to Mr.

Kofi Annan, Secretary General, UN formally expressed its support for the Global

Compact and its commitment to take action in this regard.

NTPC expresses its continued support for the Global Compact and its commitment

to take action in this regard. The principles of GC are regularly communicated to

all employees through in-house magazines, internal training program and posters.

NTPC along with major corporate in India took the lead and founded Global Compact

Society of India in the year 2003. Further, NTPC as founder member of Global Compact

Society took the lead for organizing the 1st national convention on ³Excellence in

Corporate Citizenship and Global Compact´ on 27th July 2004 at New Delhi.Tsunami

The employee of NTPC with support of company volunteered to contribute a total sum of

approximately Rs.15.2 million from their salary, in addition to NTPC contribution of

Rs.880 million to Prime Minister Relief Fund as immediate relief measures. The team of

52 NTPC employee provided medical treatment and relief material to the affected

persons. This team treated 7838 patients and provided food to 18398 villagers and

children till alternate arrangements were made by local authorities.NTPC team assisted for restoration of power supply in 53 relief camps, rectification of 2

nos. control panel, inspection and suggesting rectification for 33 KV transmission

systems, installing small DG set, and repairing a number of DG sets of various capacities.

Community Development




NTPC has been a committed and socially responsible corporate citizen since its inception

and formulated specific guidelines for the welfare of Project Affected persons (PAPs) and

community development in the neighborhood villages around its power stations as early

as 1980s. It is one of the first in the corporate sector to formulate comprehensive

resettlement and rehabilitation policy for addressing the issue of PAPs.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC.s culture.

NTPC¶s mission in the area of CSR is to ³Be a socially responsible corporate entity

with thrust on environment protection, ash utilization, community development,

and energy conservation´.

NTPC¶s approach towards CSR, further articulated in the corporate objectives onsustainable power development, is as follows::

³To contribute to

Sustainable power development by discharging corporate social

responsibilities.

Lead the sector in the areas of resettlement and rehabilitation and

environment protection including effective ash-utilization, peripheral

development and energy conservation practices.´

NTPC¶s fresh impetus on Community Development is reflected through formulation of

CSR-CD Policy, July 04, establishing NTPC foundation as a trust and initiating scheme

for economic self reliance of physically challenged persons (PCP).

CSR Activities At NTPC Badarpur

NTPC Badarpur as a responsible corporate citizen has been addressing the issue of

community development in the neighborhood areas of its station for the community

development.

Accordingly as a part of CSR, BTPS has also undertaken the various activities related to

the community development in the areas of education, vocational and health services.

These activities are:

Educational activities-




Litreacy Classes-

1-

Literacy Classes at Notre Dame school for 60 girls.

2-

Literacy Classes at Kendriya Vidialaya/Sampriti for 30 boys.

3-

Snacks for Literacy Classes at Notre Dame and Kendriya Vidialaya/Sampriti.

4-

Merit scholarship for children.

Vocational Training:

1-Silai/Tailoring classes.

2- Fabric Painting classes.

3- Dress Designing classes.

4-Beautician classes.

5-Screen painting.

6-Electrician classes.

7-Mobile Repairing classes.

8-Electronic/TV repair.

9-Welder.

10-Computer Training.

Health Related activities-

1-Cardiac Camp.

2-Health Campus at AALI.

3-Dental Camp

4-Old Age home.

5-Eye Camp.

6-Cancer Detection camp.

7-Blood Donation camp.

8-BMD Camp.

9-Health Mela.

10-Free Rehabilation Camp for physically challenged person.

11-Diabetic Camp.




Every year BTPS spends a large sum of amount for the accomplishment of above

mentioned activities. There are a lot of people being benifited from these activities.

Here is a chart that shoes the allocated and utilized budget for these activities and the

number and name of benefeciaries for the year 2009-2010.

Serial no Name of

activity

Budget

allocation

Budget utilization

upto March 2010

No. of

beneficiaries

Name of

beneficiaries

1 Education Rs 3.15Lac Rs 117533.25Lac 60 Girls

30 Boys

BIW Colony

Subhash Camp

a-Literacy

classes

(Educational

and

Vocational

training)

b-Vocational

training

Rs 189164Lac

Silai training

clases at

Sampriti,

51 No. Methapur Harijan

basti

At Methapur

Harijan basti

50 No.

At Aali villa 50 No. Aali village

Fabric

painting

07 No. Subhash Camp.

Tajpur pahari

Badarpur.

Beautician 26 No.

Total budget

utilized upto

March 2010

306697.25Lac

2 Hospitals Rs 4.50 Lac Rs 457177.17Lac

a-Cardiac Rs13528 151 No. Methapur,




camp Aali,BIW

colony,Tejpur

pahari,Subhash

camp

Badarpur,Gautam

puri.

b-Health

campus at

Aali

Rs5749.57 562 N0.

c-Dental

camp

Rs7031.00 115 No.

d-Old age

home at

Gautampuri

Rs12893.73 375 No.

e-Eye camp Rs133452.00 369 No.

f-Cancer

detection

camp

Rs54219.87 59 No.

g-Blood

donation

camp

Rs25432.00 175 No.

h-BMD

camp

Rs11986.00 335 No.

i-Health

mela

Rs138951.00+16550

Rs155501

1575 No.

j-Free

rehabilation

camp for

physically

challenged

person

Rs28888.00 180 No.




k-Diabetic

camp

Rs9096.00 156 No.

Total Rs7.65Lac Rs764474.4Lac

99.93%

4052 No.

The budget of Rs 6 Lac for the year 2009-2010 for Lohia pul on Agra canal was received on

19-5-2010 which was not utilized.

RECOMMENDATIONS

Since business organisations are of different sizes there is no one-size-fits-all method for

implementing a CSR approach: each firm has unique characteristics and circumstances that




Plan

1.Conduct a CSR assessment

y

Assemble a CSR leadership teamy

Develop a working definition of CSR y

Review corporate documents, processes andactivities

y

Identify and engage key stakeholders

2. Develop a CSR strategy

y

Build support with senior management andemployees

y

Research what others are doingy

prepare a matrix of proposed CSR actionsy

Develop ideas for proceeding and the businesscase for them

y

Decide on direction, approach and focus areas

Do

3. Develop CSR commitments

y Do a scan of CSR commitments

y

Hold discussions with major stakeholdersy

Create a working group to develop thecommitments

y

Prepare a preliminary drafty

Consult with affected stakeholders

4. Implement CSR commitments

y

Develop an integrated CSR decision-makingstructure

y

Prepare and implement a CSR business plany

Set measurable targets and identify performancemeasures

y

Engage employees and others to whom CSR commitments apply

y

Design and conduct CSR trainingy

Establish mechanisms for addressingproblematic behaviour

y

Create internal and external communicationsplans

Check 5. Verify and report onprogress

y

Measure and verify performancey

Engage stakeholdersy

Report on performance

Improve6. Evaluate and improve

y

Evaluate performancey

Identify opportunities for improvementy

Engage stakeholders

Cross-check: One cycle completed Return to plan and start the next cycle




The research has revealed that social responsibility is regarded as an important issue within the

NTPC organisation. And therefore NTPC has been showing a positive commitment towards

corporate social responsibility and demonstrating a socially responsible behaviour by being

engaged in a variety of socially responsible actions and doing this irrespective of any benefits

that such action might bring to the organisation.

Our analysis and findings about NTPC reveal that the organisation has been engaged in a variety

of socially responsible activities - internal as well as external to the organisation. The internal

activities include NTPC¶s commitment towards improving the quality of life of its workforce andtheir families. While the external activities include protecting and improving the ecology,

commitment towards improving the quality of life of the local community as well as the society

at large, through activities like community development, resettlement and rehabilitation, etc.

Thus, we conclude that NTPC consider CSR to be an important and imperative activity -

ethically, legally, socially and commercially. An activity that enables the organisation to ³give

something back to the community´.

corporate social responsibility 1 (repaired)

Documents