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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 “Experience is best teacher”.


Largest Indian Power Company Powering People’s Progress

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
Largest Indian Power Company Powering People’s Progress

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
Largest Indian Power Company Powering People’s Progress

EXECUTIVE SUMMARY
The research conducted at NTPC Limited Badarpur, Delhi was descriptive as well as exploratory
in nature. A research study and survey was conducted to attain the objective of the research. The
topic of the project was “CSR ACTIVITIES UNDERTAKEN BY NTPC AND BY NTPC
BADARPUR DELHI”. The research was conducted keeping in mind the following objectives:
 Understanding of and attitude of CSR
 Actions taken in pursuit of a more socially responsible approach especially relating
to,
 Human Resources,
 Environment
 Community, at local and national level
 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 Technical
department.
All the information generated from the survey, interaction and research study was compiled in
the 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 its
surroundings and is continuously working to develop its surroundings and to minimize the
impact of its activities on the environment .NTPC, through its various divisions is contributing a
major part of India’s power generation and with the help of these divisisons it is continuously
trying 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 employees
about the CSR activities undertaken by their unit shows that most of the employees were
unaware of the policies undertaken by NTPC Badarpur except the people working in CSR
division .

Corporate social responsibility


Largest Indian Power Company Powering People’s Progress

Corporate 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 impact
of 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
Largest Indian Power Company Powering People’s Progress

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 their
operations, 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:
Largest Indian Power Company Powering People’s Progress
Largest Indian Power Company Powering People’s Progress

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 “sustainable
development”.

It has been described/defined in many ways:


 CSR is described as “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.
 According to World Business Council for Sustainable Development (WBCSD), CSR
is “the 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”
 Business for Social Responsibility suggests the idea of CSR relates to business-
decision making linked to ethical values, compliance with legal requirements and
respect 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:


Largest Indian Power Company Powering People’s Progress

 A voluntary activity in excess of legal compliance


 Acting in an ethical values
 Creating positive working environment for employees
 Giving back to the local community and the society at large
 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 “maximise 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
Largest Indian Power Company Powering People’s Progress

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.
Largest Indian Power Company Powering People’s Progress

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:
 Understanding of and attitude of CSR
 Actions taken in pursuit of a more socially responsible approach especially relating
to,
 Human Resources,
 Environment
 Community, at local and national level
 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.
Largest Indian Power Company Powering People’s Progress

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:


 Structured Questionnaire/ interviews
 Personal visit to the company

For secondary data:


 NTPC news jornals
 Internet

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


done. Here it is NPPC Ltd Badarpur, Delhi.

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

 Sample Size:- 40

STATISTICAL TOOLS AND INSTRUMENTS

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

 Pie Chart
 Bar Diagram
 Percentage
 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 not
even aware about the activities.
Largest Indian Power Company Powering People’s Progress

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 India


The 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 28th
of May, 2009.
Largest Indian Power Company Powering People’s Progress

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 and
conversion, distribution and supply of power in India.

Power Finance Corporation (PFC) Ltd India also looks after the installation of any new
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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
Largest Indian Power Company Powering People’s Progress

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.

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


to 53.3% of total installed base.
 Current installed base of Gas Based Thermal Power is 14,734.01 MW which is
10.5% of total installed base.
 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
Largest Indian Power Company Powering People’s Progress

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)
Largest Indian Power Company Powering People’s Progress

 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. This
mission would require that the installed generation capacity should be at least 200,000 MW
by 2012 from the present level of 144,564.97 MW. Power requirement will double by 2020
to 400,000MW.
Largest Indian Power Company Powering People’s Progress

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 thermal
power generator in the World and the Second most efficient utility in terms of capacity
utilization. Rightly, NTPC has set for itself the Vision statement “To 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 and
transmission 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 “Power 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.
Largest Indian Power Company Powering People’s Progress

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 power


generation business. 
Vision
"A world class integrated power major, powering India’s growth, with increasing global
presence."
Largest Indian Power Company Powering People’s Progress

Mission
“Develop 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 –
BCOMIT
 Business Ethics

 Customer Focus

 Organisational & Professional


Pride

 Mutual Respect & Trust

 Innovation & Speed

 Total Quality for Excellence

 
Largest Indian Power Company Powering People’s Progress

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 future development 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
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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 including
setting 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
Largest Indian Power Company Powering People’s Progress

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
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initiative - a symbol of NTPC's concern towards environmental protection and continued


commitment 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 ‘Navratnas’- a potential
global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to
realize it’s vision of being “one of the world’s largest and best power utilities, powering
India’s growth”.
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NTPC: The Social Commitment

Resettlement and Rehabilitation


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.
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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:

Resettlement
Developed 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.

Rehabilitation
“Land for land” on a ‘willing 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 Utilization
Ash 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-
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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
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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.

NTPC'S Approach
Area of Utilization Quantity (in Million Tons)
Land Development 4.55
Cement & Concrete 4.59
Roads/Embankments 0.6
Ash Dyke Raising 2.34
Bricks 0.2
Others 0.46
Total 12.74
It has been possible to achieve a satisfactory combination of environmental quality and
techno-economics through determined efforts at NTPC for its projects. Continuous
vigilance is maintained to minimize pollution apart from other management program
taking root simultaneously with construction activities.
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The appropriate a forestation program for plant, township, green-belt and other sites are
designed according to the geographical features. The species are selected on the basis of
their adaptability and grouped with local representatives. The growth characteristics,
flowering pattern and canopy (spreading nature) are evaluated in their distribution over
these sites of a forestation. These considerations not only contribute to the aesthetics but
also go a long way in serving as "Sinks" for the pollutant emissions of the power plant..
At times, they combat pollution from other industries in the surrounding area.
Saving the existing trees, planting right at the beginning of construction phase,
preservation of trees and advice from State Forest Departments and Agriculture
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 Forest
Department 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
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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 and
providing green belt all around the plant for maintaining ecological balance. NTPC's
environment-friendly approach to power has already begun
to show results in
conservation 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.
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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 Policy
The 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 and
public 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
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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 -
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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 effluent
from 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
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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 Compact
at 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;
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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 “Excellence in
Corporate Citizenship and Global Compact” on 27th July 2004 at New Delhi.
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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 “Be 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 on
sustainable power development, is as follows::
“To 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
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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-


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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 Name of Budget Budget utilization No. of Name of


no activity allocation upto March 2010 beneficiarie beneficiaries
s
1 Education Rs 3.15Lac Rs 117533.25Lac 60 Girls BIW Colony
30 Boys Subhash Camp
a-Literacy (Educationa
classes l and
Vocational
training)
b- Rs 189164Lac
Vocational
training
Silai 51 No. Methapur
training Harijan basti
clases at
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Sampriti,
At 50 No.
Methapur
Harijan
basti
At Aali villa 50 No. Aali village
Fabric 07 No. Subhash Camp.
painting 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,Gauta
m puri.
b-Health Rs5749.57 562 N0.
campus at
Aali
c-Dental Rs7031.00 115 No.
camp
d-Old age Rs12893.73 375 No.
home at
Gautampur
i
e-Eye camp Rs133452.00 369 No.
f-Cancer Rs54219.87 59 No.
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detection
camp
g-Blood Rs25432.00 175 No.
donation
camp
h-BMD Rs11986.00 335 No.
camp
i-Health Rs138951.00+165 1575 No.
mela 50
Rs155501
j-Free Rs28888.00 180 No.
rehabilation
camp for
physically
challenged
person
k-Diabetic Rs9096.00 156 No.
camp
Total Rs7.65Lac Rs764474.4Lac 4052 No.
99.93%
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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
affects how it views its social responsibilities and also its awareness of CSR issues and how
much work it has already done towards implementing a CSR approach.

Likewise NTPC also has its unique characteristics and circumstances that affect its CSR
approach and implementation. Being a thermal power generation company NTPC’s main
concern is to minimising the adverse impacts of its operations on the environment. Besides
undertaking various measures to protect and improve the ecology around it operating stations
and at national level, NTPC also undertakes various other CSR activities such as community
development, resettlement and rehabilitation activities, etc.

Though NTPC is a highly socially responsible organisation performing various CSR activities in
a systematic manner, we would like to suggest the following implementation framework (see
next page). This would help the organisation to integrate economic, social and environmental
decision-making through out the firm. This will help the enterprise to reap optimal benefits for
itself and its shareholders, and in turn for those who are affected by the firm’s activities.

This framework follows the familiar “plan, do, check and improve” in the areas of quality and
environment management.
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Implementation Framework
When?
What? How?
(Conceptual
(Task delineation) (Checkpoints on the journey)
phase)
Plan  Assemble a CSR leadership team
 Develop a working definition of CSR
1.Conduct a CSR  Review corporate documents, processes and
assessment activities
 Identify and engage key stakeholders

 Build support with senior management and


employees
 Research what others are doing
2. Develop a CSR  prepare a matrix of proposed CSR actions
strategy  Develop ideas for proceeding and the business
case for them
 Decide on direction, approach and focus areas

Do  Do a scan of CSR commitments


 Hold discussions with major stakeholders
 Create a working group to develop the
3. Develop CSR
commitments
commitments
 Prepare a preliminary draft
 Consult with affected stakeholders

4. Implement CSR  Develop an integrated CSR decision-making


commitments structure
 Prepare and implement a CSR business plan
 Set measurable targets and identify performance
measures
 Engage employees and others to whom CSR
commitments apply
 Design and conduct CSR training
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 Establish mechanisms for addressing


problematic behaviour
 Create internal and external communications
plans

 Measure and verify performance


Check 5. Verify and report on  Engage stakeholders
progress  Report on performance

 Evaluate performance
Improve  Identify opportunities for improvement
6. Evaluate and improve
 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 and
their 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 “give
something back to the community”.
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