NBPPL

NTPC BHEL Power Projects Private Limited

A Joint Venture Company of NTPC & BHEL
Corporate Identity Number - U40102DL2008PTC177307
Tuesday, 26th September, 2017

Employee Portal

POLICY ON CORPORATE SOCIAL RESPONSIBILITY INDEX

  • PREAMBLE
  • CONCEPT, SCOPE AND OBJECTIVES
  • INSTITUTIONAL SET-UP
  • PLANNING
  • BUDGET AND FUND ALLOCATION
  • IMPLEMENTATION
  • MONITORING AND EVALUATION
  • REPORTING AND OUTREACH

1.   PREAMBLE

NTPC BHEL Power Projects Private Limited (NBPPL) is a Joint Venture company of NTPC and BHEL, both leading public sector companies of Government of India. The company was registered on 28.4.2008 under the Indian Companies Act 1956.

NTPC, a Maharatna in public sector of the Government of India is a premier power generation company in India having expertise and strength in areas such as setting up of coal, gas and hydro based power projects, operation and maintenance of power stations and sale of power to various State power utilities and other bulk customers. NTPC has developed comprehensive in-house expertise in various facets of power generation from concept to commissioning, efficient operation to nurturing of ecology and environment in accordance with National Power Policy of the Government of India.

BHEL, a Maharatna in public sector of the Government of India, is the largest engineering and manufacturing enterprise of its kind in India and is one of the leading international companies in the field of power plant equipment with state-of-the-art technologies. BHEL range of services extend from project feasibility through design, manufacture, supply, erection and commissioning to after sales-service of equipment required for generation, transmission and distribution of coal, gas, hydro, nuclear and non-conventional-energy.

NTPC and BHEL, have come together to harness their compatibility, common ownership, and also common legacy for the development of Power Sector as whole. Both the parent companies of NBPPL are known for caring for the community and taking up CSR activities in and around the areas of their Operation. NBPPL aspires to emulate its parent companies to be on the forefront in Corporate Social Responsibility(CSR) activities , which can be measured in terms of economic, social, and environmental impacts.

NBPPL CSR policy falls within in the purview of the Companies Act 2013, The Companies (CSR Policy) Rules, 2014.

Further, specifically on CSR, NBPPL is governed by the following:

1.
NBPPL resolves to contribute towards sustainable improvement in the Indian Economy by discharging corporate social responsibilities (CSR) that would positively impact on stakeholders and the environment in various aspects of its operations. However, activities and expenditure related to staff benefits are not counted as CSR.
2.
NBPPL resolves to be a socially responsible corporate entity in the areas environment protection, including and energy conservation.
3.
NBPPL resolves to improve the Quality of Life of the surrounding communities of its Manufacturing plant at Mannavaram and its other areas of Operation.

2.   POLICY, CONCEPT, SCOPE AND OBJECTIVES

2.1

POLICY STATEMENT: To enhance the quality of life of the Society we serve by addressing the critical social, environmental and economic needs of the marginalized/underprivileged sections of the society by upholding the core Values and Ethics.

NBPPL believes in conducting business in a manner which achieves sustainable growth whilst demonstrating a high degree of social responsibility.

NBPPL CSR policy is structured around three key pillars –Socio, Economic and Environment.

2.2

CONCEPT: With effect from April 1, 2014, every company, private limited or public limited, which either has a net worth of Rs 500 crore or a turnover of Rs.1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility activities. The CSR activities should not be undertaken in the normal course of business and must be with respect to any of the activities mentioned in Schedule VII of the 2013 Act.

The CSR Activities of NBPPL are mainly aimed at communities in the surrounding communities. The activities are aimed at improving the quality of life of the people in areas surrounding its Manufacturing Plant. In order to improve the quality of life of surrounding villages, NBPPL shall primarily concentrate on providing access to basic amenities on water, sanitation, roads, health, education and other infrastructure. To make a long term impact, NBPPL should promote employment generation schemes

2.3

SCOPE: The policy applies to the formulation, execution, monitoring, evaluation and documentation of CSR Projects /activities in the target villages. Before taking up the CSR activities at Manufacturing Plant, the Plant shall clearly identify the number of villages with a firmly defined geographical boundary indicating all existing resources through political map of the villages. Approval of NBPPL Management for the target villages/areas must be taken by Plant authorities before starting the CSR activities in the respective villages/areas.

2.4

Objectives:

NBPPL’s CSR initiative is governed by the following objectives:

2.4.1
NBPPL’s CSR Activities shall integrate Social goals aimed at long term sustainability of the Company.
2.4.2
NBPPL’s CSR Activities shall be in conformity with the development plans of State and Central Govt, supplementing/complementing them wherever found desirable.
2.4.3
NBPPL’s CSR Activities shall improve the standard of living and quality of life of surrounding communities and earn their goodwill thereby minimising the social risks.

3.   INSTITUTIONAL SET-UP

3.1

INTERNAL ORGANISATION STRUCTURE

3.1.1 Apex Level Committee for CSR:

The Apex level committee (Board Level) for CSR is in compliance with the provisions of Companies Act, 2013 which comprises of the following:
1
Independent Director nominated by MOP – to act as Chairman
2
Managing Director of NBPPL
3
Whole Time Director nominated by BHEL
4
Part time Director nominated by NTPC (Presently, Shri I .J Kapoor)

The HR Department Corporate centre shall be responsible for policy matters, compilation of information and release Annual Reports. It shall also be responsible for approval of CSR Projects and facilitating the process of allocation of funds. The Corporate centre wing shall monitor the CSR Projects on quarterly basis./p>

3.1.2 Unit Level Committee for CSR:

CSR Committee at Plant shall be comprising of representative from HR, Finance and technical departments (not below the rank of E1) and shall be responsible for need assessment studies, identification of CSR Activities, preparation of CSR Projects, implementing and reporting physical and financial progress on monthly basis. The Unit level committee shall be responsible for the success of CSR activities in their areas.
3.2
Volunteering:
 

Volunteering of NBPPL employees and family members of employees shall be promoted. The volunteers shall also facilitate planning and implementation of the identified CSR Projects

3.3
Training and Capacity Building::
 

NBPPL shall create awareness among all levels of its staff to integrate Social process with Business Process. The CSR training shall focus on community engagement, stake holder mapping, mobilisation, motivation, relationship building, transparency and shared decision making

NBBPL shall also focus on capacity Building of community volunteers through Training Workshops and exposing them to Successful CSR Projects elsewhere.

4.   PLANNING

4.1

Identification of CSR projects

The first step of planning shall be identification of broad activities. The broad activities shall be closely linked with the long-term CSR goals and objectives and adhere to the practice of sustainable development. A suggested list of areas of intervention is placed at Annexure I. The list is only indicative and not exhaustive. However, CSR activities will be strictly based on Needs of the local community / Need assessment surveys or in line with sustainable business development goals.

4.2

Identification of CSR project area

The geographical area for implementation of the CSR project shall be in the target Villages.

The Plant shall clearly identify the number of villages with a firmly defined geographical boundary indicating all existing resources through political map of the villages. Approval of NBPPL Management for the communities in the vicinity of area of operations must be taken by Plant authorities before starting the CSR activities in the respective villages/areas. For the purpose of implementation, all the villages under the Mannavaram Panchayat will be considered as local area.

4.3

Baseline/existing status survey

The CSR projects shall be framed with a long-term objective of provision for basic infrastructure and civic facilities, along with attendant maintenance mechanisms. At the end of project period, the impacts shall be quantified based on the baseline data and shall be compared with CSR goals. Thus, fresh data on existing status shall be mandatory before planning for CSR projects.

The bottom-up approach shall be adopted in planning CSR projects. The CSR projects shall be formulated based on need assessment surveys (NAS). NAS will involve in-depth village–stakeholder consultation and gap identifications based on surveys and analysis.

Information collected at the household level shall focus on demography, literacy levels, socio-economic status, and occupation pattern. Based on the survey, a detailed project prioritizing needs of community and target villages shall be prepared with specific deliverables, time-frame and budget. NAS shall attempt to capture the needs of the most vulnerable of the community.

4.4

Synchronizing with development plans of state and central governments

The overall quantifiable deliverables of the CSR projects shall be framed based on the gaps between the development goals framed at state and national level, and the existing situation of the area.

4.5

Flexible, dynamic, and incremental short-term plans

Each year, the achievements shall build on the work undertaken in previous year, so that the final CSR objectives can be achieved in an incremental manner. The long and medium plan shall be periodically reviewed and shall have enough flexibility to incorporate changes as and when necessary.

4.6

Entry points activities

To get the project popularized in the project villages, entry point activities (EPAs) shall be conducted. Action plan to mitigate social risks shall be planned and implemented for establishing rapport with the community. Programme promotion activities shall be identified as per the need and suitability of the local communities and public representatives from time to time, depending on assessment and perception of social risks.

Activities associated with various social issues related to women and children, employment generation programme, health, sanitation and environment/climate change, AIDS awareness, organizing cultural programmes and those supporting cultural and social harmony can be part of such action plans.

4.7

Contents of CSR Plans

The CSR Plan shall cover title, goal, objectives, map demarcating project area, baseline scenario, needs assessment, community participation, linkages with national goals, project implementation mechanism, associated risks and mitigation measures, deliverables, output, outcome, organization and staffing, institutional tie-ups, timeline, specific start and end dates, estimated budget, financial plan, monitoring and evaluation mechanism.
Survey, need prioritization, and development of a long-term action plan would be prerequisites for allocation of resources under the CSR Plans.

4.8
Quantifiable targets

The plan shall clearly enunciate targets that are proposed to be achieved over the plan period. For each activity, a set of quantifiable indicators shall be developed for reporting on achievement.

The specific targets, indicators and benchmarks shall be identified based on national and state goals, local needs and existing situations.

4.9

Linked to government development schemes

The plans based on the thrust areas need to identify specific government programmes that can be dovetailed to achieve the desired targets. Such dovetailing can focus on complementing both financial and human resources. Preference shall be given to activities that benefit the state government/local administration/ panchayat Adequate care shall be taken to ensure that there is no duplication of CSR projects with that of programmes run by central, state, and/or local governments.

4.10

Use of local resources and low-cost technologies

Interventions for the area shall be planned with a focus on making use of local resources/materials, particularly to minimize the cost without compromising on quality.

4.10

Participation of panchayat, communities and local authorities

 
4.11.1
The targeted communities and local authority shall be closely involved in the planning, implementation, and monitoring and evaluation of CSR activities to the extent possible.
4.11.2
Contribution of panchayat, communities and local authorities Facilities provided under the CSR Projects in the target villages shall be preferably on partial cost-sharing basis. The contribution may be either in cash or kind. The percentage of community contribution shall be clearly indicated in the CSR Plans. Since the community contribution is an index of community's readiness to own and sustain the facilities, preference shall be given to those activities where the community is willing to contribute relatively a higher amount.
4.11.3
Withdrawal From day one of CSR activities efforts should be made to involve community members from planning to implementation- by means of contribution of nominal amounts, labour, volunteering etc. It gives them an ownership & withdrawal becomes easy. During the withdrawal phase, the community shall be entirely made responsible for the operation and maintenance of the project. However, CSR staff shall undertake handholding of the community in periodic maintenance of the infrastructure developed till withdrawal.

5.   BUDGET AND FUND ALLOCATION

5.1
In line with extant provisions of section 135 of the Companies Act 2013 and requirements laid down in the Companies (CSR Policy) Rules, 2014; 2% of the average net profit of the company made during the three immediately preceding financial years will be allocated for CSR activities.
5.2
The CSR activities for the Plant under operation shall be planned under operation and maintenance (O&M) budgets of CSR. In case of new Plants and expansion projects activities to be planned under capital budget.CSR processes are to be synergized with business processes.
5.3
Plants shall be allocated separate CSR budgets under the annual budget allocations to be spent by them on CSR activities under CSR project. The approval of budget will be given by BOD.
5.4
Provision shall be kept for maintenance of developed infrastructure.
5.5
Fund allocation shall be on the basis of long-term CSR plans.
5.6
For ensuring effective delivery, all CSR Projects shall be financed in a phased manner. Funds shall be committed for long-term projects and shall be disbursed on a yearly instalment basis.
5.7
Upto 5% of the annual budget for CSR and Sustainability activities has to be earmarked for Emergency needs, which would include relief work undertaken during natural calamities / disasters, and contributions towards Prime Minister’s / Chief Minister’s Relief Funds and/or to the National Disaster Management Authority.
5.8
Not less than 40% of the budgeted CSR amount will be spent towards support to Schools and Skill Development and Not less than 40% of the budgeted CSR amount will be spent towards Health and Sanitation of nearby Communities. Further, minimum 50 % of the total budget for the year will be spent for local area.
5.8
The unspent CSR amount would be permitted, in exceptional circumstances, to carry forward to the next year, provided the reasons for not utilizing the entire CSR amount allocated in a particular year, and the plan(s) for utilizing the unspent amount in the next year is approved by the Board and disclosed in its Annual Report.

6.   IMPLEMENTATION

6.1
Implementation of CSR Projects shall be decentralized and in course of time devolve implementation of CSR Projects to local NGOs and local institutions in a systematic and planned manner.
6.2
NBPPL shall identify and collaborate with credible local institutions/ national specialized institutions( like elected local bodies such as panchayats, voluntary agencies (NGOs), institutes/ academic institutions, trusts, missions, SHGs, government, semi-government and autonomous organizations,) The specialized agencies could be made to work singly or in tandem with other agencies.
6.3
NBPPL CSR cell at the corporate centre shall develop a mechanism to verify the reliability and credibility of the specialized agencies identified for implementation of CSR projects. The team may develop a panel of such credible agencies or may select from panels maintained by government, semi-government, autonomous organizations or from the national CSR hub, and so on.
6.4
CSR cell shall involve NBPPL’s suppliers, Contracting Agencies wherever possible, in order to ensure that the supply chain also follows the CSR guidelines. CSR group shall try and implement some of the CSR activities jointly with the major suppliers.
6.5
Approved CSR policy will be hosted on the website of the Company.
6.6
All the expenditure on the CSR budget head will be approved by Managing Director, NBPPL.

7.   MONITORING AND EVALUATION

7.1
A two-tier monitoring mechanism for the CSR projects would be developed: .

a) Internal monitoring

b) External evaluation by a independent and credible agency

c) Impact Assessment of all CSR activities

7.2
Internal monitoring
7.2
The CSR staff of the Plant shall monitor the CSR projects on regular basis and efforts should me made to build a rapport with the neighbouring communities.
7.2.3
At the corporate level, the outcome of the meeting of Plant heads of CSR shall be deliberated for suggesting suitable policy interventions. The HOD (HR) shall review the progress on monthly basis. The details shall be presented to the NBPPL management on monthly basis.
7.3
Impact Assessment
 
The effectiveness of the CSR projects shall be evaluated through credible external agencies for providing required feedback and inputs to formulate and improve the projects in future. Plant shall get reviewed/ evaluated its CSR projects by a third party at least once every two years.

8.   REPORTING AND OUTREACH

8.1
Reporting
 
All the Plants of NBPPL shall follow a synchronized reporting format.
8.2
Quantification of impacts
8.2.1
The impact made by CSR projects shall be quantified by NBPPL to the best possible extent with the baseline data/existing status surveys developed before the start of any CSR project.
8.2.2
The Plant shall identify detailed indicators in consultation with corporate centre to report on CSR projects. These indicators shall be in accordance with long-term CSR goals, and state and national development goals.
8.3
Periodicity
 
NBPPL shall carry out periodic reviews of the programmes on a quarterly basis. Quarterly review reports shall be prepared by the operating stations, shared with the community and the staff, and the feedback shall be sought and incorporated into the subsequent action plans as well as in the final annual reports.
8.4
Dissemination/ outreach
8.4.1
NBPPL shall incorporate a separate chapter/paragraph on the various CSR activities undertaken including the facts relating to physical and financial progress into its annual report.
8.4.2
NBPPL shall make available the detailed documentation of the CSR projects inclusive of approaches, processes, expenditure, procurement, impact in the public domain such as internet.
8.4.3
NBPPL shall make information of their CSR projects available to their stakeholders through appropriate media.
8.4.4
The company shall regularly send out press releases about CSR projects, particularly in the local vernacular languages, so that the public is in the loop on the company's activities on a sustained basis.

ANNEXURE - I

Indicative List of Possible Areas of Interventions

1
Drinking water facility
2.
Education
3.
Improving lives of vulnerable persons such as physically challenged, destitute women, widows
4.
Solar lighting system & Renewable Energy Sources
5.
Health, Family Welfare and Public Health
6.
Sanitation facilities at schools, especially to girl students
7.
Promotion of sports and games
8.
Promotion of art and culture
9.
Relief of victims of natural calamities like earthquake, cyclone, drought, flood situation in any country
10.
Supplementing development programs of the government
11.
Construction of community centres/ night shelters/ old age homes
12.
Livelihood promotion & Income generation projects / programmes like imparting vocational training, Skill training, entrepreneurship development and placement assistance programs for Youth, Entrepreneurship development programmes
13.
Solar water pumping integrated with drip irrigation for small and marginal farmers
14.
Environment conservation, protection of flora & fauna and promotion of Bio-diversity
15.
Technology Incubation projects with approved Academic institutions of repute.

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