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Transcript of Corporate social responsibility 1 (Repaired)
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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 ³Experience is best teacher´.
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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
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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
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14 Findings
15 Conclusion
16 Recommendations
17 Format of questionnaire
18 References
EXECUTIVE SUMMARY
The research conducted at NTPC Limited Badarpur, Delhi was descriptive as well as exploratoryin nature. A research study and survey was conducted to attain the objective of the research. Thetopic of the project was ³CSR ACTIVITIES UNDERTAKEN BY NTPC AND BY NTPCBADARPUR DELHI´. The research was conducted keeping in mind the following objectives:y
Understanding of and attitude of CSR
y
Actions taken in pursuit of a more socially responsible approach especially relating
to,
Human Resources,
Environment
Community, at local and national level
y
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 Technicaldepartment.All the information generated from the survey, interaction and research study was compiled inthe form of a highly presentable and comprehensible report.
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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 itssurroundings and is continuously working to develop its surroundings and to minimize theimpact of its activities on the environment .NTPC, through its various divisions is contributing amajor part of India¶s power generation and with the help of these divisisons it is continuouslytrying 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 employeesabout the CSR activities undertaken by their unit shows that most of the employees wereunaware of the policies undertaken by NTPC Badarpur except the people working in CSR division .
Corporate social responsibilityCorporate 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 impactof 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."
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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
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 theiroperations, 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:
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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 ³sustainable
development´.
It has been described/defined in many ways:
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y
CSR is described as ³ 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.
y
According to World Business Council for Sustainable Development (WBCSD), CSR
is ³the 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´
y
Business for Social Responsibility suggests the idea of CSR relates to business-
decision making linked to ethical values, compliance with legal requirements andrespect 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:
y
A voluntary activity in excess of legal compliance
y
Acting in an ethical values
y
Creating positive working environment for employees
y
Giving back to the local community and the society at large
y
Minimising the adverse impact of the operations of the company on the environment
Importance of Corporate Social Responsibility
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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 ³maximise 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
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 .
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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
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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:
y
Understanding of and attitude of CSR
y
Actions taken in pursuit of a more socially responsible approach especially relating
to,
Human Resources,
Environment
Community, at local and national levely
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.
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.
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For primary data:
j
Structured Questionnaire/ interviews
j
Personal visit to the company
For secondary data:
j
NTPC news jornals
j
Internet
SAMPLING DESIGN
j
Sampling Unit :-It is defined as the geographical area from which sampling is to be
done. Here it is NPPC Ltd Badarpur, Delhi.
j
Sampling plan :-Both Random and judgemental sampling is done.
j
Sample Size :- 40
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STATISTICAL TOOLS AND INSTRUMENTS
The study will be analyzed through statistical tools and instruments such as:
j
Pie Chart
j
Bar Diagram
j
Percentage
j
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 noteven aware about the activities.
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.
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Electricity sector in IndiaThe 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 28thof May, 2009.
.
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
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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 andconversion, distribution and supply of power in India.
Power Finance Corporation (PFC) Ltd India also looks after the installation of any new
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
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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
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 .
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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.
y
Current installed base of Coal Based Thermal Power is 77,458.89 MW which comes
to 53.3% of total installed base.
y
Current installed base of Gas Based Thermal Power is 14,734.01 MW which is
10.5% of total installed base.
y
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
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).
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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)
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
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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. Thismission would require that the installed generation capacity should be at least 200,000 MWby 2012 from the present level of 144,564.97 MW. Power requirement will double by 2020to 400,000MW.
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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 thermalpower generator in the World and the Second most efficient utility in terms of capacity
utilization. Rightly, NTPC has set for itself the Vision statement ³To 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 andtransmission 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 ³Power 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.
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
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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 powergeneration business.
Vision
"A world class integrated power major, powering India¶s growth, with increasing
global presence."
Mission³Develop 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.´
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Core Values ±
BCOMITy
Business Ethics
y
C ustomer Focus
y
O rganisational & Professional
Pride
y
M utual Respect & Trust
y
Innovation & Speed
y
T otal Quality for Excellence
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.
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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 futuredevelopment 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
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
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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 includingsetting 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
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
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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
initiative - a symbol of NTPC's concern towards environmental protection and continuedcommitment 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 µNavratnas¶- a potential
global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to
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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.
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:
ResettlementDeveloped 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
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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.
Rehabilitation³Land for land´ on a µwilling 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 UtilizationAsh 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-
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:
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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
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.
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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 ForestDepartment 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
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
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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 andproviding green belt all around the plant for maintaining ecological balance. NTPC's
environment-friendly approach to power has already begun to show results inconservation 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 .
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 PolicyThe 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
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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 andpublic 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
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
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(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 -
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 effluentfrom 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.
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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
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 Compactat 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
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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;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
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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 ³Excellence in
Corporate Citizenship and Global Compact´ on 27th July 2004 at New Delhi.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
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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 ³Be 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 onsustainable power development, is as follows::
³To 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
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-
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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-
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.
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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 no Name of
activity
Budget
allocation
Budget utilization
upto March 2010
No. of
beneficiaries
Name of
beneficiaries
1 Education Rs 3.15Lac Rs 117533.25Lac 60 Girls
30 Boys
BIW Colony
Subhash Camp
a-Literacy
classes
(Educational
and
Vocational
training)
b-Vocational
training
Rs 189164Lac
Silai training
clases at
Sampriti,
51 No. Methapur Harijan
basti
At Methapur
Harijan basti
50 No.
At Aali villa 50 No. Aali village
Fabric
painting
07 No. Subhash Camp.
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,
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camp Aali,BIW
colony,Tejpur
pahari,Subhash
camp
Badarpur,Gautam
puri.
b-Health
campus at
Aali
Rs5749.57 562 N0.
c-Dental
camp
Rs7031.00 115 No.
d-Old age
home at
Gautampuri
Rs12893.73 375 No.
e-Eye camp Rs133452.00 369 No.
f-Cancer
detection
camp
Rs54219.87 59 No.
g-Blood
donation
camp
Rs25432.00 175 No.
h-BMD
camp
Rs11986.00 335 No.
i-Health
mela
Rs138951.00+16550
Rs155501
1575 No.
j-Free
rehabilation
camp for
physically
challenged
person
Rs28888.00 180 No.
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k-Diabetic
camp
Rs9096.00 156 No.
Total Rs7.65Lac Rs764474.4Lac
99.93%
4052 No.
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
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Plan
1.Conduct a CSR assessment
y
Assemble a CSR leadership teamy
Develop a working definition of CSR y
Review corporate documents, processes andactivities
y
Identify and engage key stakeholders
2. Develop a CSR strategy
y
Build support with senior management andemployees
y
Research what others are doingy
prepare a matrix of proposed CSR actionsy
Develop ideas for proceeding and the businesscase for them
y
Decide on direction, approach and focus areas
Do
3. Develop CSR commitments
y Do a scan of CSR commitments
y
Hold discussions with major stakeholdersy
Create a working group to develop thecommitments
y
Prepare a preliminary drafty
Consult with affected stakeholders
4. Implement CSR commitments
y
Develop an integrated CSR decision-makingstructure
y
Prepare and implement a CSR business plany
Set measurable targets and identify performancemeasures
y
Engage employees and others to whom CSR commitments apply
y
Design and conduct CSR trainingy
Establish mechanisms for addressingproblematic behaviour
y
Create internal and external communicationsplans
Check 5. Verify and report onprogress
y
Measure and verify performancey
Engage stakeholdersy
Report on performance
Improve6. Evaluate and improve
y
Evaluate performancey
Identify opportunities for improvementy
Engage stakeholders
Cross-check: One cycle completed Return to plan and start the next cycle
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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 andtheir 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 ³give
something back to the community´.