National Consultative Meeting on Business & Human Rights Dinesh Agrawal GM (CSR) 1
Presentation Outline 1. 1. NTPC The Power Giant 2. 2. CSR in in NTPC 3. 3. Human Rights & Business Objectives 4. 4. What NTPC Does 5. 5. Winning Milestones 2
Presentation Outline 1. 1. NTPC The Power Giant 2. 2. CSR in in NTPC 3. 3. Human Rights & Business Objectives 4. 4. What NTPC Does 5. 5. Winning Milestones 3
NTPC LTD Through the years Set up in 1975 in the Central Sector, to bridge the widening gap of demand and supply of power in India, NTPC was granted Navratna status in 1997. In November 2004 NTPC came with its Initial Public Offering consisting of 5.25% as fresh issue and 5.25% as offer for sale by b Government of India. NTPC thus became a listed company with Government holding 89.5% of the equity share capital and rest held by Institutional Investors and Public The company has now been renamed as NTPC Ltd in line with the changes taking place in the business portfolio of the company transforming the company from a thermal power generator to an integrated power company with presence across entire energy value chain. 4
NTPC Limited - A truly national company As per Forbes Global 2000 ranking for the year 2004, NTPC ranks: 486 th biggest company in the World 5 th biggest Indian company No of plants Capacity (MW) NTPC Owned - Coal 13 19,980 - Gas / Liquid Fuel 7 3,955 Total 20 23,935 Owned by Joint Ventures - Coal 3 314 Grand Total 23 24,249 5
NTPC IN INDIAN POWER SECTOR TOTAL CAPACITY AS ON 31.03.2005 GENERATION 2004-2005 NTPC 23,749 MW 20.05 % of All India 118,419 MW 20.05% NTPC ALL INDIA NTPC 159 BUs 27.1% of All India 587 BUs 27.1% NTPC ALL INDIA NTPC contributes more than one-fourth of India s s total power generation with one-fifth capacity. 6
NTPC Powering India Its annual turnover for the year 2004-05 was Rs 255,460 million with net profit (after tax) of Rs. 58,070 million. (US$ Billion) 5 4.5 4.21 3.95 4 3.5 3 2.5 2.17 2 1.5 1 0.5 0 1996-97 2000-01 2001-02 2002-03 4.22 2003-04 4.18 5 2004-05 Year 1.4 (US$ Bn) 1.2 1 0.8 0.6 0.37 0.4 0.2 0 1996-97 2000-01 0.82 0.78 0.8 2001-02 2002-03 2003-04 1.16 2004-05 (Year) 1.29 Turn Over Profit 7
NTPC Performance Highlights 93 90 87 84 81 78 75 72 69 66 63 60 80.4 67.3 84.38 81.8 69 Capacity Utilization 86.2 81.1 69.9 86.54 83.6 72.2 88.7 84.41 72.7 88.79 87.51 74.3 91.2 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 All India PLF NTPC PLF NTPC AvF NTPC stations are regular recipients of CEA s meritorious performance awards 8
Presentation Outline 1. 1. NTPC The Power Giant 2. 2. CSR in in NTPC 3. 3. Human Rights & Business Objectives 4. 4. What NTPC Does 5. 5. Winning Milestones 9
CSR Goals of NTPC To encourage multi stake holder partnership. Facilitating the development initiatives both at national & unit level. Empowering the marginalized sections of society. To initiate programs which are sustainable and based on community needs. Aligning the development initiatives with that of the government agencies to avoid duplicity. 10
CSR Processes Level 1 Level 2 Level 3 Compliance Philanthropy and Image Building 1. Innovations 2. Key business strategy 11
Csr Processes in Ntpc Formulating Policy Framework Identifying Future Thrust areas Identifying Stakeholders A Continuous Process Monitoring & Evaluation Establishing Engagement process Programs & Practices 12
Identifying Stakeholders NTPC Sphere of Influence Employees Community Government Share holders CSR Stakeholders Customers 13
CSR Policies in Ntpc C D R & R Safety Ash utilization Education Health Environment Disability 14
Implementation of CSR in NTPC Dedicated institutional setup for implementing each policy Implementing Partners NTPC Foundation. Volunteering by employees. EVOICE. Ladies Clubs & other associations. External Voluntary organizations. Quality Circles in villages 15
Presentation Outline 1. 1. NTPC The Power Giant 2. 2. CSR in in NTPC 3. 3. Human Rights & Global Compact 4. 4. What NTPC Does 5. 5. Winning Milestones 16
Fair Business Practices The Ten Principles of Global Compact Human Rights Labor Environment Anti Corruption 17
Human Rights & Global compact UNGC derives its Human Rights principles from the Universal Declaration of Human Rights (UDHR). The UDHR embraces 3 critical areas: Rights protecting life & security of the person. Economic & Socio Cultural rights. Personal & Political rights & freedom. 18
Human Rights & Business Objectives Based on on Amnesty internationals report 1. Developing an explicit company policy on Human Rights. 2. Train the staff in international human rights standards. 3. Providing equal opportunities to the marginalized, including, 4. Establishing a clear framework for assessing the potential impact on Human Rights of all the company s and it s sub-contractors operations. 19
Human Rights & Business Objectives Based on on Amnesty internationals report 5. Developing mechanism for ensuring community engagement and initiating Community Development Programmes. 6. Ensuring that no form of discrimination on the basis of ethnic origin, sex, color, language, religion, economic status or origin is prevalent in the organization. 7. Ensuring that the organization in not complicit in the following areas Promoting Slavery Sexual harassment 20
Human Rights & Business Objectives Based on on Amnesty internationals report 8. Policies & practices should provide for safe & healthy working environments.. 9. No form of corporal punishment, mental or physical Coercion or verbal abuse should be prevalent in the organization. 10. Ensure Freedom of association and the right to collective bargaining. 11. Monitoring mechanisms to check compliance should be credible, bias free and verifiable. 12. Organizations should maintain transparency with their share holders & stake holders alike. 21
Presentation Outline 1. 1. NTPC The Power Giant 2. 2. CSR in in NTPC 3. 3. Human Rights & Business Objectives 4. 4. What NTPC Does 5. 5. Winning Milestones 22
Human Rights & Business Objectives NTPC A. Respects all internationally proclaimed human rights. 1. Addressing the concerns of the neighborhood community. 2. Resettlement & Rehabilitation activities. 3. Providing equal opportunities to the Marginalized (Physically Challenged Persons, SC/ST, Women, etc. 4. Support during natural & national calamity. 5. Decentralised Distributed Generation in remote villages B. NTPC is not complicit in human rights abuses. 23
What NTPC Does 1. Concerns of Neighbourhood Community a. NTPC has a Comprehensive CD Program to improve standards of living of rural population. b. Rs. 69 million utilized for CD activities in 2004 2005. c. Addressed Right to food, health, proper clothing, education, clean drinking water, shelter etc. d. Lighting the Gaurikund Kedarnath yatra marg. e. Providing MRI & spiral CT scan machine to the local hospital at Haldwani. 24
What NTPC Does Education Adult Education. Female/ Girl Child Edu. Workshops & Training Infrastructure support. Scholarships Health Health Camps & Free Operations. Disease Eradication Programs. Family Planning Programs. De- addiction camps Programs. Health related infrastructure Programs. 25
What NTPC Does Rural sports Organizing Training Camps. District level / Zonal Competitions. Providing Sports Scholarships Vocational Training Motor Driving & Repairing. Computer training. Vegetable & Food Preservation. Cutting & Tailoring. 26
What NTPC Does Disability Promoting Inclusive Education. Providing Health support. Vocational Training & Income Generation Rural infrastructure Maintenance of Community Halls/ Buildings/ Centre Local Markets Panchayat Ghar Cremation ground 27
What NTPC Does 2. Resettlement and Rehabilitation of PAPs 1. Conduct Socio-economic survey 2. Establish PIC 3. Form VDAC 4. Formulate RAP 5. Involve Sociologist 6. Monitoring and Evaluation 28
What NTPC Does 3) Support for the Differently abled Employment in NTPC Special recruitment drive exclusively for physically challenged persons already initiated. NTPC recruitment policy has provision to give reservation to physically challenged persons List of posts broadened to 68 posts (15 posts in group A, 45 in group B & C and 8 posts in group D) Till date around 340 persons have been recruited in the organization. Scholarship for pursuing higher education 29
What NTPC Does 4) Supported Tsunami victims. Around 15.2 million from employees salary & Rs. 880 million from the company donated to Prime Ministers Relief Fund. Treatment provided to 7838 patients. Provided food worth Rs 23.08 Lacs to 18398 villagers & children. Assisted authorities in restoration of power supply. 30
What NTPC Does 5) Decentralized Distributed Generation 1. NTPC provides technical supports for setting up DDG system in villages. 2) NTPC has started setting up model DG projects based on renewable energy sources to demonstrate the technocommercial viability and sustainable operations of such projects 3) A new department has been set up to speed up the process. 4) Objectives of the Department Demonstration of various business models for village electrification Employment opportunities for villagers. 31
What NTPC Does NTPC is not complicit in human rights abuses. a. Multi level checks confirm that no abuse of rights takes place anywhere in the organization. b. Special support to the Project Affected Persons (PAPs) is taken at the time of R&R. Encouraging Self Decision making. Facilitating PAP & government interaction. Ensuring Right to Self Determination Maintaining Transparency 32
Presentation Outline 1. 1. NTPC The Power Giant 2. 2. CSR in in NTPC 3. 3. Human Rights & Business Objectives 4. 4. What NTPC Does 5. 5. Winning Milestones 33
External Recognitions Platt s Business Week Global Energy Award for Best Community Development programme- for the year 2005 and 2002. Golden Peacock Award for Corporate Social Responsibility 2003, Instituted by Institute of Directors. ICC UNEP World Summit Business Award For Sustainable Development Partnership, 2000. CORE-BCSD Corporate Social Responsibility Award 2001-02 instituted by TERI, National Centre for Promotion of Employment of Disabled People (NCPEDP) - Shell Hellen Keller Awards- for two years in 2002 & 2004. 34
Thank You For Your Kind Attention Contact us at csr@ntpc.co.in 35