Case Study: Aluminium

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1 Case Study: Aluminium 1 July 2015 Abhijit Pati CEO, Aluminium Business

2 PARTNERING ODISHA OUR APPROACH TO SUSTAINABLE COMMUNITY DEVELOPMENT & STAKEHOLDER ENGAGEMENT JHARSUGUDA LANJIGARH 1

3 ODISHA A PICTURE OF CONTRAST Ranked 11 th largest of 30 states of India, and home to 41.9 million people Emerging with the highest-recorded growth rate, but still ranked 2 nd in poverty index Richest state in terms of natural resource endowment, but with 32.6% of population still living below poverty line With 85% agrarian population, Odisha is the preferred destination for major foreign & domestic industrial investment With a growth rate of 5.8%, it has the 4 th lowest per capita income Kalahandi district has the richest mineral base, but with 0.15 Human Development Index it is ranked amongst 8 most backward districts in India Odisha witnesses wide regional, social and general disparities in development 2

4 ODISHA OUR OPERATIONAL RELEVANCE Odisha has 56.5% of India s bauxite reserves, the 8 th largest in the world It is home to one fifth of India's coal, a quarter of its iron ore, a third of its bauxite reserves and most of its chromite Mineral belt is spread over an area of more than 6,000 sq km, but the mining and quarrying sector accounted for only 5.8% of Odisha s GSDP during FY 2014 Despite its vastly unexplored bauxite reserves, Odisha is first in the country in Aluminium, both in terms of production capacity and actual output The total aluminium usage (primary plus secondary) in India is now around 2.5 million tonnes. Present production level is around 1.6 million tonnes Huge potential for competent and skilled human resource base in the state 3

5 OUR OPERATION AT A GLANCE 1 MTPA Alumina Refinery Lanjigarh with 90 MW CPP 0.50 MTPA Aluminium Smelter JSG 1.25 MTPA Aluminium Smelter (SEZ) JSG 1215 MW JSG CPP 2400 MW JSG IPP 4

6 ODISHA OUR CONTRIBUTION AT A GLANCE Investment : USD $ 8 billion. Highest ever single location investment in India Accreditation: QMS, EMS, OSHAS & EnMS. First EnMS accredited Asian Aluminum operation Capacity : 1.75 MTPA Aluminium Smelter & 3615 MW power at Jharsuguda World s largest single location Aluminium complex 1 MTPA Alumina Refinery Lanjigarh with 90 MW CPP Technological excellence: Zero Discharge Operations. Lanjigarh is the first alumina refinery with such distinction Power contribution: 600 MW uninterrupted power to state. Odisha has a power surplus Employment generation: 35,000 employment opportunity at peak. Transforming the region to an industrial economy Impacting local economy: Thousands of indirect opportunities in down-streaming, vendor base, and a strong service sector CSR : Reaching out to 0.16 million people. Corporate with highest CSR investment in the state Revenue generation: USD $ 0.17 Billion. Annual contribution to the nation Expected to reach USD $ 0.56 Billion per year at maximum capacity Commitment to region: Our operation employs more than 90% of its workforce from the native region 5

7 CSR VISION AND KEY DRIVERS CSR VISION To enhance the quality of life and economic well-being of the community around us as a proactive enabler and a partner in development. REACH Reaching out to 0.16 million people across 149 villages in Jharsuguda & Kalahandi districts and beyond. K E Y D R I V E R S VISIBILITY SCALE IMPACT BENCHMARK Place tangible, need-based and sustainable projects on the ground, in partnership with the community. Achieve scale which is commensurate with our operational size, to increase our impact and improve well-being. Measure concrete results and broad based impact at a regional level to demonstrate effectiveness. Benchmark performance with global best practice for continual improvement. VALUES AT OUR CORE Entrepreneurship Excellence Care Integrity Respect Trust Innovation 6

8 PRINCIPLES WE ADHERE TO 7

9 COMMUNITY DEVELOPMENT FRAMEWORK GUIDING FRAMEWORKS Vedanta Sustainable Development Framework State R & R Policy IFC Guidelines India Companies Act 2013-Schedule VII UN-MDG S Partners Government bodies Community Credible NGOs Plan Inputs Detailed implementation plan Sustainable phasing out mechanism Project monitoring and evaluation Monitoring Tools Needs assessment Stakeholder feedback Impact evaluation 8

10 CSR CORE FOCUS SUSTAINABLE LIVELIHOOD PROMOTION Creating opportunities for alternative livelihoods 10,200 rural women in alternative livelihoods thanks to the SHG and Cooperative model 9,000 youths linked to livelihood through skill development programme 2,750 farmers benefitted through advanced agri-interventions WOMEN COOPERATIVE, JHARSUGUDA 3,000 MEMBERS WITH INR 13.5 MILLION CORPUS FUND COMMUNITY HEALTH CARE Complement existing health care with focus on preventive health care 0.56 million people benefitted from the Vedanta Hospital at Lanjigarh and Health services at Jharsuguda Zero malaria deaths ensured at Lanjigarh. HIV/AIDS awareness remains a priority at Jharsuguda 15,000 children in Kalahandi are nourished through midday meal nutrition programme to combat malnutrition Prioritizing open defecation free villages in PPP model is the ongoing way forward VEDANTA HOSPITAL, LANJIGARH REACHED OUT TO 0.14 MILLION PEOPLE 9

11 CSR CORE FOCUS FACILITATING QUALITY EDUCATION Providing opportunity for quality education for rural children 46,000 children benefitting through educational interventions, scholastic and school infrastructural support Pan-Odisha Vedanta scholarship for higher education launched for economically backward, tribal and female students DAV school in tribal Lanjigarh Marked improvement in matriculation passing percentage at Jharsuguda We are committed to a world-class university for excellence in education, research and technology in Odisha CHILD CARE CENTRE, LANJIGARH AUGUMENTING RURAL INFRASTRUCTURE AND COMMUNITY AFFORESTATION Create sustainable need based rural Infrastructure through PPP model (Public-Private-People) 673 major and need-based community infrastructure created, leveraging PPP model Social forestation million saplings planted in partnership with the government and communities. A unique PPP forestation project in the state Partners to major infrastructure projects for tomorrow s development RURAL INFRASTRUCTURE, LANJIGARH RESETTLEMENT & REHABILITATION Uphold highest ethical practices in Resettlement & Rehabilitation Achieved minimal displacement of 266 families for our vast operations, which span 4,469 acres Corporate with 100% compliance of statutory requirement as per state R & R policy, 2006 Strong commitment to socio-cultural ethos of the native community RESETTLEMENT COLONY, JHARSUGUDA 10

12 OUR APPROACH TO

13 STAKEHOLDER ENGAGEMENT PROCESS PLAN IMPLEMENT MONITOR & EVALUATE INFORM Assess Social Risks & Opportunities Identify Key community needs & resources Identify Key stakeholders Identify Key issues for company and available community assets for development Formulate Structured stakeholder engagement process Initiate Continuous dialogue process Execute Community development projects Demonstrate ROI for company and community impact indicators Generate Stakeholder feedback and analysis Realign Existing process as per stakeholder feedback Disseminate transparent and pertinent information Communicate to all concerned stakeholders Maintain social licence to operate Create an enabling business environment Develop competitive advantage 11

14 RECOGNITION OF OUR WORK India CSR Award for Best Women Empowerment 2014 Greentech CSR Award for Best CSR Practices in 2015 Best CSR practices award in National CSR Conclave-2014 Best CSR practice award in Odisha CSR conclave-2014 for Support and Improvement in Quality Education Best CSR practices award in Odisha CSR conclave-2014 for Innovative project for Sustainable Growth Best CSR practices award in Community Development in Chhattisgarh CSR Conclave-2013 Think Odisha Leadership Award for Generating Employment-2011 Think Odisha Leadership Award for best Community Development Initiatives Asian HRD congress award for Best Innovation in Educational Project in 2010 for Vedanta s CSR TEFLA award for best community development initiative 14 12

15 THANK YOU Partnering Odisha s progress 13

16 OUR APPROACH TO COMMUNITY DEVELOPMENT

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