CSR CD programmes at national level( ntpc)

NTPC will establish a foundation under Indian Trust Act 1882 for addressing the
niche domains of social development at national level through strategic interventions.
The NTPC Foundation will provide greater focus on identified issues of concern, create
partnership with various stakeholders, receive funds from national and international
agencies etc. The Foundation will be the nodal agency for implementing the national
level programmes as per the CSR-CD policy of NTPC.
The following niche domains of socio-economic development will be covered by the
NTPC foundation.
A. To promote DDGS through covering the initial risks like cost of feasibility studies
for the entrepreneur/ local communities,
B. To facilitate economic self- reliance of physically challenged persons, through
establishing a development centre for physically challenged persons as national
resource and development centre
C. To organise conservation of the national monuments and cultural heritage sites
on selective basis
D. To provide relief and assistance during national calamities etc
E. To facilitate unemployed people in and around the new projects/ old stations in
self-employment through co-operatives / self-help groups
F. Any other program/ activity related to social upliftment as deemed appropriate
by he Foundation.

• Aims and objectives of NTPC Foundation

To facilitate the entrepreneurs/ communities in formulating the project

proposals and establishing the feasibility for promoting the decentralized
distributed generation and supply of power (DDGS) for meeting the power
and development requirement of remote and far flung places. The foundation
will consider the risk mitigation by bearing the cost of such feasibility studies
where the project is found unviable. The foundation will also extend the
NTPC?s technical expertise in the field and provide the interface with NTPC –
REC joint venture for collaboration and establishing DDGS as per the need
and requirement.
The foundation will promote the plantation and forestry programmes for
producing biomass required for DDGS programme.
To facilitate the disabled persons in improving the economic and employment
opportunities. For this, the foundation will establish an a development centre
for physically challenged persons as national resource and development
centre for enhancing the economic opportunities through strategic
interventions such as
1. Extending cover for initial risks like conducting the feasibility studies,
market research etc., in case the project is found un-viable.
2. Facilitating micro-financing and/or venture/seed capital for project of
economic self reliance and mentoring.
 3. Providing requisite support from initial phase of identification of livelihood
opportunity till achieving the level of self sustenance.
4. Conducting advocacy and awareness programs for identification of
appropriate economic and employment opportunities
5. Identifying and administering the need based vocational/ managerial
training programs with clear linkage to livelihood opportunity.
6. Giving preference to small and medium projects covering a group of
persons
To organise conservation of national monuments and cultural heritage sites
on selective basis.
To provide appropriate assistance and send volunteers and resources for
relief and restoration in the times of national calamities.
To facilitate the unemployed people in and around the new projects / old
operating stations, in self-employment through co-operatives / self-help
groups. The programme may include provisions for the enabling mechanism
such as backward linkage like tying up the input resources and forward
linkage like marketing etc.
To take up or support any other social upliftment programme (in addition to
the programmes stated above) at national level as deemed appropriate.
To develop and undertake advocacy, awareness campaigns and community
outreach programmes in the above areas. To interact with policy makers,
regulatory bodies and responding to issues initiated by them.
To organize workshops/ conferences/ symposia on the above areas and the
related areas. To interact collaborate and promote partnership with other
related national and international agencies/ organization and seek funds/
grants for specific programmes/ projects.

• Institutional set up

NTPC Foundation:
The NTPC Foundation will be governed by The Board of Trustees, details of
which are given below:
CMD Chairman of Board of Trustee
Dir (HR) Trustee
Dir (Fin) Trustee
Independent Director Trustee
Professional with required experience
and/ or with right aptitude and full Secretary to the Trust Or Director Genera
commitment on an honorary basis
Staffing for day to day operations:
The professionals may be engaged on fixed term contract basis as program
officers based on the need and requirement or volunteers from present and
past NTPC employees may be deputed.
Development Centre for physically challenged persons:
The Development Centre for physically challenged persons will be a separate
 entity under the Foundation. The centre will be headed by a project director,
who will report to the Board of the Trustees.
The Development Centre will address the following four categories of
disability.

o Visually challenged persons

o Deaf and dumb persons
o Physically challenged persons
o Mentally challenged persons with mild intensity

The Development Centre will be located in its own building where, it will
develop and maintain basic infrastructure facilities for providing supports like
counselling, documentation centre, placement services, vocational training,
market research etc. The Development Centre will also consider establishing
sub-centres at regional / local level.

• Implementation Mechanism

Planning & Co-ordination:

The NTPC Foundation will be responsible for the overall planning and
coordination of CD programmes at national level.
The Corporate CSR Group will coordinate with the NTPC Foundation for all
related activities.
Monitoring and Evaluation:
The monitoring of CD programme will be done by Foundation, which will
submit quarterly report to NTPC management for its information.
The foundation will submit a quarterly progress report to the CSR group for
apprising the management. The corporate CSR Group will review the work of
Foundation and put up an exception report for appraising the management
on quarterly basis.
The details will be presented to NTPC Management on regular basis.
The effectiveness of CD programme will be evaluated through external
agencies for providing required feedback and inputs to formulate and
improve the programmes in future.
Reporting:
The NTPC Foundation will prepare its annual report.
The summary of the report will also be posted on the NTPC website under a
dedicate
ADITYA BIRLA GROUP

social projects

Corporate social responsibility is an integral part of the Aditya Birla Group's

value systems. Today, the footprint of the Group's social work spans 2,500
villages in India, reaching out to seven million people
annually.

2011
:: The Government of India will bestow the Padma Bhushan Award on Mrs.
Rajashree Birla for her exemplary contribution in the area of ‘Social
Work’.The Padma Bhushan is among the highest civilian awards in India
and will be conferred on Mrs Birla at a special ceremony in March 2011.

2010
:: Indian Rayon, Veraval (a division of Aditya Birla Nuvo) is awarded The
Rajiv Gandhi Environment Award for Clean Technologies by The Ministry
of Environment and Forests, Government of India.
:: Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community
Initiatives and Rural Development receives 'Hello Hall of Fame' award for
'Exemplary Philanthropist of the year' from Worldwide Media Goup's 'Hello'
celebrity journal.
:: Ultratech's 'Concern for Health' project awarded the Asian Corporate Social
Responsibility Award by the Asian Institute of Management Centre for
Corporate Social Responsibility.
:: Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community
Initiatives and Rural Development, awarded the Global Golden Peacock
Life Time Achievement Award for Community Development for the year
2010 for "Outstanding Contribution Towards Community Development and
Social Welfare".
:: Hindalco and Birla White declared winners in the Golden Peacock Awards
for Corporate Social Responsibility 2010 by an eminent international jury,
headed by Justice P.M. Bhagwati, the erstwhile Chief Justice of India.
:: The Aditya Birla Centre for Community Initiatives and Rural Development
teams up with Columbia University's research centre, the Columbia Global
Centers' Earth Institute in Mumbai, to become its principal partner. The
Earth Institute's goal is to help achieve sustainable development primarily
by expanding people's understanding of the earth as one integrated
system.
:: Hindalco wins Amity International Business School’s, ‘Amity Corporate
 Excellence Award for Corporate Social Responsibility’

2009
:: Grasim's pulp and fibre division wins the highly prestigious Asian CSR
Award. The Asian CSR Awards, Asia's Premier CSR Awards program, is a
project of the Asian Institute of Management, Manila.
:: Rajiv Gandhi Award for Eminence in Social Field, 2009 conferred on Mrs.
Rajashree Birla by Mr. Jyotiraditya Scindia (Union Minister of State,
Commerce & Industry) on 19 August 2009. The award recognises Mrs.
Birla's pathbreaking work among the poor, more so in India's villages,
carried out through the Aditya Birla Centre for Community Initiatives and
Rural Development.
:: Vikram Cement and Aditya Cement wins the Federation of Indian Mineral
and Industries' "Social Awareness Award for the year 2008-09".
:: Reader's Digest Pegasus Star Award conferred on Hindalco in recognition
of work that truly exemplifies the highest values of society and corporate
leadership for social responsibility and sustainable development initiatives.
Mrs. Rajashree Birla, who spearheads all the Group's social projects,
received this much coveted award on behalf of Hindalco from Mr. Arun
Jaitley, MP, Rajya Sabha, on 21 January 2009 in Delhi.

2008
:: The President of India, Mrs. Pratibha Patil confers the much coveted
Rotary International Polio Eradication Champion Award on Mrs. Rajashree
Birla in an elegant function at the Rashtrapati Bhavan (Delhi), attended by
the Chairman, select Rotarians and WHO officials.

2007
:: The Aditya Birla Group honoured with the India Today Group's Readers
Digest Gold award in recognition of the work that truly exemplifies the
highest values of society as well as those of Reader's Digest. The award
was received by Mrs. Rajashree Birla, Chairperson, Aditya Birla Center for
Community Initiatives and Rural Development, at the Pegasus Corporate
Social Responsibility Awards 2007 function.
:: Hindalco awarded the CII - Sorabji Green Business Centre "National Award
for Excellence in Water Management 2007".

2006
:: Hindalco awarded the Greentech Safety Silver Award for its outstanding
safety performance during 2005-06.

2004
:: Grasim, Nagda, receives the FICCI Annual Award 2003-2004 in recognition
of corporate initiaitve in rural development.
:: Aditya Birla Chemicals (India) Limited, Rehla, Jharkhand, receives the
FICCI Annual Award 2003-2004 in recognition of corporate initiative in
family welfare.
:: Indal wins FICCI Award 2002-2003 for 'Corporate Initiative in Rural
Development'.
2003
:: The Group is ranked 16th in India's first ever survey of 'Great places to
work in', published in Business World magazine. The Group's joint venture
concern, Birla Sun Life Insurance, is ranked 9th in the same study.
:: The Group is ranked 20th in a study on the 'Best Employers in India',
conducted by Hewitt Associates and Business Today.
:: Hindalco receives the Asian CSR Award for its "Rural Poverty Alleviation
Programme". The Asian CSR Awards are Asia's premier awards
programme on corporate social responsibility.

2002
:: The Group receives The Economic Times' "Corporate Citizen" of the year
award.

2000
:: The Group announces its intention to launch a 450 MW 'Green Power
Project' in Karnataka .

1996
:: To honour the memory of the late Aditya Birla, a new corporate
logo – Aditya, the rising sun – is launched.
:: All Group companies are consolidated under the umbrella of the Aditya
Birla Group, led by Mr Kumar Mangalam Birla.
:: P.T. Indo Liberty Textiles is incorporated to manufacture yarn in Indonesia.

1995
:: The Group enters the telecommunications sector through a joint venture
with AT&T (USA).
:: Thai Sulphites & Chemicals is incorporated to manufacture sodium sulphite
and sodium metabisulphite.

1994
:: The Birla Growth Fund is renamed Birla Global Finance Limited, as its
span of operations expands.
:: Alexandria Carbon Black, the Group's first joint venture with the Egyptian
government, is established.

1992
:: Thai Epoxy and Allied Products commences production of epoxy resins in
Thailand.

1991
:: Pan Century Oleochemicals commences production of fatty acids and
glycerine in Malaysia.

1990
:: Mr. Kumar Mangalam Birla gets actively involved in the Group's operations.

1989
:: Thai Peroxide commences manufacturing of hygrogen peroxide solutions
in Thailand.

1988
:: The government liberalises the petroleum industry. The Aditya Birla Group
enters into a joint venture with Hindustan Petroleum Corporation Ltd to set
up a three-million-tonne refinery, Mangalore Refineries and Petrochemicals
Ltd (MRPL), at Mangalore, Karnataka.

1987
:: Indian Rayon is renamed Indian Rayon and Industries Limited (IRIL), to
reflect its wide horizon of activities.
:: Thai Acrylic Fibre is incorporated to produce fibre and tow.

1986
:: The Birla Growth Fund set up to finance industrial equipment, plants and
machinery, and consumer durables, as well as for stock market operations.

1985
:: India's first gas-based fertiliser plant in the private sector – Indo Gulf – goes
on stream at Jagdishpur, UP.

1984
:: Thai Polyphosphates and Chemicals commences production of sodium
phosphates in Thailand.

1982
:: P.T Indo Bharat Rayon established. It was the first producer of Viscose
Staple Fibre in Indonesia.

1978
:: Thai Carbon Black, the Group's first carbon black company incorporated in
Thailand.

1977
:: Pan Century Edible Oils incorporated in Malaysia. It went on to become the
world's largest single-location palm oil refinery.

1975
:: The Indo Phil Group of companies, the first Indo-Filipino joint venture
commences production of spun yarn.

1974
:: Thai Rayon, the Group's Viscose Rayon Staple Fibre business
incorporated in Thailand.

1973
:: P.T. Elegant Textiles established to manufacture spun yarn. It marked the
Group's first venture in Indonesia.

1969
:: Mr. Aditya Birla sets up Indo Thai Synthetics Company Ltd, the Group's
first overseas company.

1967
:: Hindalco sets up a captive power plant at Renusagar – a significant
strategic move.

1966
:: The Indian Rayon Corporation Ltd is acquired.

1965
:: Mr. Aditya Birla, grandson of the legendary Ghanshyamdas Birla, starts the
Eastern Spinning Mills & Industries.

1962
:: Hindalco commences production at its aluminium complex at Renukoot,
UP.

1958
:: Hindalco is incorporated.

1947
:: Grasim is incorporated. It commences operations with a small rayon
weaving unit at Gwalior, MP.

1919
:: Ghanshyamdas Birla, grandson of Shiv Narayan Birla, sets up the first Birla
jute mill, marking his entry into the manufacturing sector. Rapid business
expansion followed.

1857
:: The foundation of the Birla Group of Companies laid by Seth Shiv Narayan
Birla – cotton trading operations commenced at Pilani, Rajasthan.
CORPORATE SOCIAL RESPONSIBILITY IN GOVERNMENT
COMPANIES
Good Corporate Governance includes socially responsible business
practices. A socially responsible approach to business would involve
attention to social and environmental concerns in addition to economic
goals and encourage companies to balance financial profits, economic
value addition and social good.
The high level of public accountability attached to Public Sector
Undertakings (PSUs) as a result of their public ownership makes socially
responsible reporting by PSUs particularly important. The Committee of
Public Undertakings (COPU) in 1992 examined the issue relating to social
obligation of Central Public Sector Enterprises and observed that “being
part of the ‘State’, every Public Sector Enterprise (PSE) has a moral
responsibility to play an active role in discharging the social obligations
endowed on a welfare state, subject to the financial health of the
enterprise”. Based on the recommendation of the COPU, Department of
Public Enterprises (DPE) issued general guidelines in November 1994.
These guidelines basically left it to the Board of Directors of the PSEs to
devise socially responsible business practices in accordance with their
Articles of Association, under the general guidance of their respective
Administrative Ministry/Department.
3.1 Corporate Social Responsibility
Social responsibility is the responsibility of an organisation for the impacts
of its decisions and activities on society and the environment, through
transparent and ethical behaviours that is consistent with sustainable
development and the welfare of society and takes into account the
expectations of stakeholders
Corporate Social Responsibility (CSR) is one such niche area of corporate
behaviour and governance that needs to be addressed and effectively
implemented in the organisation.
CSR is one of the effective tools that synergizes the efforts of corporate
and the social sector agencies towards sustainable growth and
development of social objectives at large. CSR is at heart a process of
managing the costs and benefits of business activity to both internal
(employees, shareholders, investors) and external (institution of public
governance, community members, civil society groups, other enterprises)
stakeholders. Keeping in view the importance of PSUs in discharging
social obligation, a limited review on the initiatives taken by the PSUs in
selected sectors viz. Oil and Natural Gas Sector, Coal and Power Sector
towards CSR was conducted. The main focus of the review was on the
following aspects:
™ CSR Policy System of planning for CSR activities System of fixation of
targets for CSR activities Budget allocation and budget utilisation for CSR
activities
™
3.2. CSR Policy
Out of the total 28 companies in Coal Sector, Power sector and Oil and
Natural Gas Sector selected for examination, it was observed that 19
companies (5 companies in Power Sector, 8 companies in Coal Sector and
6 Companies in Oil and Natural Gas Sector) had approved CSR policy
during 2007-08. The list of companies having CSR Policy and a list of
companies not having CSR policy covered in the review are given in

3.3 System of Planning for CSR activities

Planning plays a vital role while implementing any policy. It was, however,
observed that North Eastern Electric Power Corporation Limited, NTPC-
SAIL Power Company (P) Limited, Bokaro Power Supply Company (P)
Limited and Power Finance Corporation Limited in the Power Sector had
no system of planning for CSR activities. Other companies planned their
CSR activities as detailed below:
(A) Oil Sector
Bongaigaon Refinery & Petrochemicals Limited, Numaligarh Refinery
Limited and Oil India Limited had formed Community Development
Committee/ Steering
Committee for planning CSR activities.
™ Hindustan Petroleum Corporation Limited planned CSR projects with the
help of operating Partner Non Government Organisations. The company
signed MOUs with the Non Government Organisations. Bharat Petroleum
Corporation Limited and Mangalore Refinery and Petrochemicals Limited
planned CSR projects based on requests from neighbouring local self-
governments like Panchayats, Municipalities & Corporations and Non
Government Organisations.
™ GAIL (India) Limited and Indian Oil Corporation Limited fixed thrust area
wise targets with the help of its officials in consultation with local/district
authorities for the activities of local significance and potential benefit to
the local public.
(B) Power Sector
™ NTPC Limited had dedicated CSR Cell, which was responsible for policy
matters, compilation of information, annual reports and facilitating the
process of allocation of funds. In Nuclear Power Corporation of India
Limited the local management in consultation with the local authorities
finalised the CSR scheme and the same is presented to a Committee. The
Committee recommends CSR schemes to the
Chairman and Managing Director.
(C) Coal Sector
™ Central Coalfields Limited, Bharat Coking Coal Limited, Coal India
Limited,
Eastern Coalfields Limited, Mahanadi Coalfields Limited and Northern
Coalfields Limited had area community development committee
constituted for Report No. CA 22 of 2009-10 46 the purpose at the area
level, which was taking decisions regarding identifying the activities,
preparation of budget, reviewing and approving the action plan and
monitoring the activities during implementation. At headquarter level the
Welfare Board oversees the Community Development activities. However,
there was no specific department dealing with the entire aspects of CSR.
3.4 System of fixation of targets for CSR activities
The Oil and Natural Gas Sector and Coal Sector Companies made the
budget allocation for CSR activities as per the policy directions of their
respective Ministries. While the Coal companies provided one rupee per
tonne of coal produced, companies in Oil and Natural Gas Sector provided
0.5 per cent to one per cent of the profit for CSR activities.
However, in case of Power Sector companies no structured guidelines
existed for budget provision as emerged from the following: NTPC Limited
had a policy of earmarking Rs.17 crore every year for CSR activities.
™ Power Finance Corporation Limited had not made any budget provision
for CSR activities during the year the 2007-08. However, during the year
the company donated surplus office furniture/material (valuing Rs.20 lakh)
to 26 Non Government Organisations.
™ Power Grid Corporation of India Limited during the year 2007-08,
allocated an amount of Rs.45 lakh in the budget which was subsequently
reduced to Rs.35 lakh towards community development programme.
However, the Company released an amount of Rs.37.50 lakh during the
year 2007-08 for the purposes indicated below:
(i) Financial assistance of Rs.5 lakh to “National Foundation for Communal
Harmony”, an autonomous organisation under the Ministry of Home
Affairs, Government of India.
(ii) Financial assistance of Rs.25 lakh to the “Social, Cultural, Educational
& Sports Development Trust of Silchar, Assam”.
(iii) Financial assistance of Rs.7.50 lakh to “Global Cancer Concern India”
towards two cancer camps in Madhya Pradesh and Chattisgarh in addition
to one mobile unit.
™ Bokaro Power Supply Company (P) Limited had no budget allocation for
the year 2007-08 in respect of CSR activities. Report No. CA 22 of 2009-
10 47

3.5.1 From the above table it is evident that the companies in all the
three sectors, the utilisation of the allocated budget was less than the
allocated budget except in four companies in the Coal Sector. While
Eastern Coalfields Limited and Northern Coalfields Limited have spent
more than their budget allocation by 93.84 per cent and 76.53 per cent
respectively, in the case of Mahanadi Coal Fields expenditure matched the
budget allocation. In North Eastern Coalfields Limited Rs.14.19 lakh was
spent though the same was not provided in the budget. In Oil and Natural
Gas Sector the unutilisation of budgeted amount ranged from 4.17 per
cent to 62.61 per cent. In Power Sector the unutilisation of budget amount
ranged from 16.67 per cent to 51.98 per cent.
3.5.2 Further analysis revealed the following:-
™ The budget for CSR on Omkareswar Project (OSP), a unit of Narmada
Hydro Development Corporation funds for 2007-08 was Rs.20 lakh, out of
Rs.55 lakh budget for the whole company. The OSP unit showed the
expenditure as Rs.18.73 lakh. However, audit verification revealed that
the actual expenditure in this case was only Rs.12.37 lakh. The
expenditure of Rs.6.36 lakh relating to incomplete activities had been
carried forward without the approval of the Board of Directors. Thus total
unutilised funds amounted to Rs.20.87 lakh, which was 37.95 per cent of
total budgeted funds.
™ NTPC Limited sanctioned Rs14.01 crore against Rs.17 crore required to
be provided as per the policy document. Audit analysis indicated that the
actual amount spent was Rs.7.59 crore which was short by Rs.6.42 crore.
The shortfall against the amount sanctioned worked out to 45.82 per cent
and the shortfall against the amount stated in the policy document stood
at Rs.9.41 crore which accounted for 55.35 per cent.
™ GAIL (India) Limited allocated Rs.17.51 crore against the norms of
Rs.23.87 crore. Out of the allocated amount of Rs.17.51 crore, the amount
spent was Rs.16.66 crore.