India - Are We on a Right Track?

Vol. 36 No. 1 June, 2016

Message ...... 05

Articles Reform Committee on Corporate Governance by CPSEs...... 09 by Dr. U. D. Choubey

Audit Committee - Backbone of Corporate Governance...... 12 by B. B. Goel

The Diversity Differentiator Managing Board Dynamics &...... 16 Achieving Effectiveness by Nesar Ahmad

The Performance Evaluation System for Philippine SOEs...... 20

Ease of doing Business in India - Are we on a Right Track?...... 24 by Parveen Kumar

Yoga: A Miracle for Healthy Heart, Healthy Mind & World Peace...... 27 by Dr. H. K. Chopra

Safety by Heart...... 33 by B. B. Chakravorty

Performance Managment System and its Implementation at...... 36 THDC India Limited by S. K. Biswas

SCOPE News DG, SCOPE addresses OECD Global Knowledge Sharing Conference...... 45 on Corporate Governance of SOEs

PSE News

PSEs Celebrate 7th Public Sector Day...... 51

PSEs Register Impressive Performance during 2015-16...... 53

Personalia...... 63

PSEs CSR Initiatives...... 65 Vol. 36 No. 1 June, 2016 Annual Subscription:Rs. 500/- Total Pages:88 A. S.Khan PUBLISHER Nisha Sharma EDITOR K. N.Dhawan, U.K. Dikshit P. K.Sinha, S. A.Khan, Dr. U.D. Choubey ADVISORY BOARD &

Consulting Editor

GGM (Corp. Affairs) GGM Head (HR&CC) , Adviser (Programmes)

Adviser (CC)

, Director General Contents ...... MoU PSEs Ink WAPCOS Successfully Commissions DaminAfghanistan Salma . Awards &Accolades to PSEs...... NSIC Organizes...... Interactive Meet NTPC andCoal JoinHandsto Foray India into Fertilizer...... Sector NLC Celebrates Day ...... 60thRaising Power Project inOdisha BHEL bagsRs. 1,600Crore order for settingup Thermal...... CMD, NBCC istheNewPresident ofDMA...... BEML Enters Dredging Business...... Maharashtra Day & World LabourDay Celebrated...... inRCF inaugurates Level High ofJharkhand ...... Chief Minister Garga Bridge Central Vigilance Commissioner Addresses IOCians...... Development by WCL Transforming Lives ofRural Youth...... MCL Celebrates Miners’ Awards Day; ...... 76Coal Miners CSL Lays Ferry keelofsecond...... doubleendedRoRo ofITBP Inauguration Tezpur, Implemented by HSCL...... PSEs Celebrate Swachhta Pakhwada......

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85 82 81 81 80 79 78 78 78 77 77 76 75 75 74 71 84 MESSAGE

n today’s dynamic, market driven environment, organizations need to continually grow Iand evolve to gain a competitive advantage and business excellence. SCOPE, as an apex body of Public Sector Enterprises (PSEs), has been playing a catalyst role in helping PSEs to emerge as innovative and multidimensional entities in national and global arena. It has been facilitating the interactions of CPSEs with policy makers on the issues concerning them. To provide a Forum for construc- tive and indepth interactions, it has been organizing seminars, conferences, awareness and experience sharing workshops in different regions of the country. One of the issues with reference to the PSEs is Contract Labour as it is inevitable for any entity to engage contract labour for non core activities. The Government of India has taken initiative to codify labour laws and published Wage Code Bill and Social Security Code Bill etc. Keeping in view the proposed reforms in labour laws and also sharing experiences of good practices of management of contract labour, outsourcing of business, a two-day seminar on “Labour Laws focusing on Contract Labour, Outsourcing and the Proposed Changes/ Reforms in the Labour Laws” is being organized in July 2016 at Shillong. A Two Day symposium on RTI Act 2005 in CPSEs is also being organized in Shillong in July 2016. SCOPE expects to have a large participation in these programmes which will be addressed by senior officials from Government, Professionals and experts in the area. Leadership plays an important role in achieving business success and meeting organizational goals. Top Management of PSEs has been facing vexing and often paradoxical strategic issues, leadership and transformation challenges to steer their

Kaleidoscope June, 2016 5 organizations in the new economic environment. on the topic Learning New Strategies – Scaling Advanced Global Leadership Programme orga- Newer Heights in July 2016 at SCOPE Convention nized by SCOPE aims to develop better under- Centre. The Summit will provide opportunities to standing of the global economic environment and share learning experiences, challenges faced and provides unique learning opportunities to help new avenues to be undertaken to cope up with participants to emerge as strategic leaders. The emerging digitalization, which aim to transform programme, 5th in the series, is being organized in India into digitally empowered society and knowl- August-September this year, which include topics edge economy. viz., strategic thinking, environment and bound- Public Sector is facing many challenges than ever ary management, corporate governance, risk man- before. They have to prove that they are next to agement, value based leadership etc. none in terms of not only efficiency, proficiency Image Management plays a crucial role in the and productivity but are also adopting best prac- changing environment. For building brand im- tices in corporate governance. age, organizations need to excel, able to compete SCOPE invites valuable suggestions/feedback with the competitors and attract & retain talents. from PSEs which would help us to further add val- With the growing proliferation of media, espe- ue to our activities for the betterment of PSEs and cially in the digital space, PR practitioners need to Nation as a whole. upscale the skills to meet the growing expectations of their myriad stakeholders. In order to provide a common platform to corporate communication and other management practitioners to deliberate on the newer knowledge of skill, SCOPE is orga- (Dr. U.D. Choubey) nizing Corporate Communication Summit 2016 Director General, SCOPE

6 KaleidOscope June, 2016 Kaleidoscope June, 2016 7 8 KaleidOscope June, 2016 ARTICLE

Reform Committee on Corporate Governance by CPSEs

Dr. U. D. Choubey Director General, SCOPE

Corporate world, has witnessed continued pressure for professionalization of Boards to reflect better governance. Accordingly, governance structure of the corporate is increasingly getting aligned with the best practices in corporate governance. A strong network of corporate governance ensures transparency, integrity, responsibility, accountability and long term strategic plans, effective risk management plans and corporate social responsibility. The term corporate governance has acquired special significance in case of Public Sector Enterprises (PSEs) in India.

t is beyond doubt that PSEs mandatory stipulations, for the contributed greater credibility role in accelerating the pace benefit of various stakeholders. and investor’s confidence enjoyed Iof development in the coun- There have been several systems by PSEs. This can be validated by try has been facilitated by sound, and mechanisms of compliance the fact that a handful of PSEs (46 prudent and transparent business for ensuring accountability and listed companies i.e. one percent principles and practices. Their good governance in PSEs. of the total companies listed on Corporate Governance practices Presently, apart from Parliament, Bombay Stock Exchange) account are robust which rest on the four PSEs are accountable to other around 15% of market capitaliza- fundamental pillars of Fairness, authorities under several regu- tion at BSE. Transparency, Accountability and lations like the Comptroller and PSEs have well structured vigi- Responsibility. Much before the Auditor General of India, Central lance department with network corporate governance code was Vigilance Commission, CCI and units across various regions with put in place they were required the Right to Information Act etc. the mandate to disseminate prin- to comply with several rules and Besides, listed companies are ciples and practices related to in- regulations under an elaborate governed by SEBI norms. There tegrity and transparency across system of Parliamentary and gov- can be no two opinions that these all levels of organization. More ernmental control. They have checks and balances have assured than 100 PSEs have also signed gone extra miles and have taken high level of transparency in their Integrity Pact with Transparency structured initiatives, beyond functioning. In fact, these have India International. Under MoU

Kaleidoscope June, 2016 9 ARTICLE

way of dividend, taxes etc. In addition to above, contribution of CPSEs (by way of taxes and du- ties, net profit, dividend, disin- vestment proceeds) has increased by 149% in the past decade (2004- 05 to 2013-14). Besides, PSEs have played a leading role in fulfilling social obligations and have gone a long way in achieving their goals and translating their policies into de- liverable to achieve positive in- terventions in social upliftment programmes. They have adopted very innovative practices and are system PSEs undertake to achieve implementing their CSR activity targets set in the agreement be- As guardian or trustees in project mode addressing their tween management of PSEs and of precious public infrastructure deficit, socio eco- Government of India. Emphasis money, they have upheld nomic development of surround- is placed to give them more op- high values to achieve ing communities, environment, erational autonomy to face com- education and drinking water. petition and at the same time goals and objectives Development of backward re- ensuring accountability in their for which they have gions, creation of industrial and operations. Right to Information been established. Their social infrastructure, employ- Act is applicable to all public au- significant contribution ment to a large number of people, thorities and is also applicable to to the national economy and production of essential prod- Public Sector Enterprises while ucts and services at a reasonable the same is not applicable to pri- can be judged from the price speaks volumes of their vate sector, thus denying the PSEs fact that 290 PSEs with CSR activities. with a level playing field. a total investment of The commitment of the CPSEs As guardian or trustees of pre- Rs 9.92 lakh crore have towards CSR can be seen from cious public money, they have the fact that out of top 100 com- earned a net profit of Rs upheld high values to achieve panies contributions to CSR ac- goals and objectives for which 1.29 lakh crore during tivities, 25 are CPSEs. PSEs have they have been established. Their 2013-14. Their turnover been imparting the best prac- significant contribution to the of Rs 20.61 lakh crore is tices in corporate governance. national economy can be judged However, there has always been equal to approximately from the fact that 290 PSEs with tendency to term them as non a total investment of Rs 9.92 lakh 20 percent of GDP compliant in some parameters crore have earned a net profit of of the country. They of corporate governance. One of Rs 1.29 lakh crore during 2013-14. contributed Rs. 2.20 the non compliance pointed out Their turnover of Rs 20.61 lakh is with respect to appointment crore is equal to approximately lakh crore to the central of Independent Director. Before, 20 percent of GDP of the country. exchequer by way of we comment on the non compli- They contributed Rs. 2.20 lakh dividend, taxes etc. ance, we need to first understand crore to the central exchequer by how the Independent Directors

10 KaleidOKaleidOscope June, 2016 ARTICLE are appointed in a CPSE. operational autonomy can per- In past, we had a It is beyond doubt that institu- form optimally and its members tion of independent director has number of Committees can be held accountable through emerged as cornerstone of cor- on Reform for Corporate a structured performance evalua- porate governance. It requires tion system. PSEs run on profes- Governance. However, Boards to be properly struc- sional lines. Several of our PSEs tured with adequate number of there has been a have become important play- ers in the global market. To help Non-Executive and Independent paradigmshift in Directors to ensure indepen- PSEs to embrace global business dence and objectivity. They are governance norms after standards and to improve their expected to exercise oversight the global recession performance in a transparent and on the functioning of the Board ethical way, the issue which are and melt down seen in and Board Committees viz., not within the control of PSEs Audit Committee, Remuneration 2008-09. As the role of need to be timely addressed. Committee etc based on best government as owner World over, notable corporate practise of governance and governance reforms have been and facilitator has ethical standards. At pres- taken to strike a right balance be- ent, Independent Directors for greater importance in tween autonomy and State con- ‘Ratna’ CPSEs (i.e. Maharatna, the process of global trol. Some of the developed coun- Navratna and Miniratna) are rec- tries have created Independent competitiveness ommended by the Administrative Sovereign Committee, away from Ministry to the Public Enterprises and best practices in the control of Administrative Selection Board (‘PESB’). The se- Ministry that monitors the im- lection is then made by a ‘Search corporate governance, plementation part, succession Committee’ which includes time has come to planning and also selects the the Secretary, Department of appoint a new Reform Independent Directors. In India Personnel and Training (DoPT) also, there is need to review as Chairperson of the Committee, Committee in Corporate Corporate Governance norms in Secretary, Department of Public Governance. line with the worldwide trends. Enterprises (‘DPE’), Secretary of It may lead to improve investor’s the Administrative Ministry, and two non official Members. The corporate governance norms re- confidence and enhance competi- list of shortlisted candidates is lated to appointment of audit, tiveness of PSEs. In past, we had a then sent to the Administrative nomination and corporate so- number of Committees on Reform Ministry and then finally for ap- cial responsibility committees. for Corporate Governance. proval of ACC. As you don’t find Appointment of Independent However, there has been a para- any role of PSEs in Selection of Directors is not in the hands of digm shift in governance norms Independent Directors, it is total public sector enterprises and the after the global recession and injustice to hold PSEs respon- same should be viewed as per melt down seen in 2008-09. As sible for non compliance of SEBI the procedure of appointment the role of government as owner regulations for appointment of mentioned above. For the better and facilitator has greater im- Independent Directors or Audit professionalization of boards of portance in the process of global Committee or Remuneration PSEs, the process of appointment competitiveness and best prac- Committee etc. of Independent Directors needs tices in corporate governance, The general view and nega- to be accelerated. time has come to appoint a new tive perception about PSEs is A professionally run organization Reform Committee in Corporate that they are not fulfilling the having competent board and full Governance.

Kaleidoscope June, 2016 11 ARTICLE

Audit Committee - Backbone of Corporate Governance

B. B. Goel Professor of Public Administration (Retd.), Punjab University

he business environment Practices in realm of Corporate confidence of stakeholders in in present era abounds Governance. To Arthur Levitt, published financial information Twith varied complexities, a former Chairman of US SEC, duly reviewed; and performs viz., competition, litigations, cor- a qualified, committed, inde- powerful oversight role around porate re-engineering, economic pendent and tough-minded the year. Audit Committee is recession and technological ad- Committee represents the most thus guardian of the integrity of vances. The dramatic collapse of reliable guardian of public financial statements and perfor- Anderson, Enron, WorldCom, interest. mance of an entity. Paramlat, Satyam and many oth- Audit Committee is main pillar of er multinationals is a testimony corporate governance in steering Historical Perspective that despite stringent regula- an enterprise to path of progress, Audit Committee came in lime tions of accounting and audit- growth and prosperity. It plays light on recommendations of ing, questions are raised with vital role in increasing level of UK’s Cadbury Committee. Later regard to efficacy of Board to assurance against catastrophic on, Smith Report (2003) and UK safeguard interests of stakehold- failures, ensures financial report- Code and Guidance on Audit ers. These risks can be partly miti- ing and control of non-financial Committees (2012) while reject- gated by having Special Purpose risks, integrity of audit and in- ing ‘one size fits all’ rule, fine- Committees which serve as the ternal control processes, fosters tuned its composition, func- “eyes, ears and nose” in effi- a culture and expectation of ef- tion and oversight role. The cient Board performance. The fective over-sight. Besides, in- Committee consisting of at least Committees with clear cut goals, three members was to represent objectives, term of reference, life dependence of Committee from independent non-executive di- span, role and responsibilities fa- executive management, open rectors out of which, one must cilitate specialized, focused and mind of committee members, technical discussions. Formation restraining itself from undertak- have significant and relevant fi- of Committees especially Audit ing duplicate role of executive nancial exposure. Chairman of Committee in addition to sev- or auditors, capability of pick- enterprise was not eligible to be- eral other Functional Committees ing up signs of early trouble and come member. The Committee (Risk Management, Ethics, preventing a drift towards worst, was to meet at least thrice a year Project Management, Corporate and review of whistle blower’s and interact with internal and ex- Governance, CSR, Stakeholders mechanism, are some of its hall ternal auditors without presence Relationship, Remuneration, marks. It bridges gap between of management. Smith Report Sustainable Development etc.) management, Board and external inserted a separate section on has been recognized as Best and internal auditors; provides Audit Committee for monitoring

12 KaleidOscope June, 2016 ARTICLE integrity of financial statements, loans/ borrowings/ debentures/ The Committee is appointment and assessment of deposits exceeding Rs. 50 crore mandated to perform external auditors, oversight of or more, are required to consti- internal control system, quizzing varied functions grouped tute Audit Committee. Besides, Finance Director and external au- into various heads such Committee existing prior to ditors, and ensuring risk manage- viz., recommendations commencement of Act has to be ment system in proper place. for appointment, re-constituted on or before 31st In USA, Blue Ribbon Committee remuneration and March 2015. (1999) and SOX Act 2002 brought terms of appointment pragmatic changes in role of of auditors; review Composition, Eligibility, Audit Committee. To them, a and monitor auditor’s Chairman, Meetings single appropriate template is independence and The Committee has to consist neither feasible nor practicable effectiveness of audit of minimum 3 Directors with and restricted its role to monitor- process; approval of Independent Directors forming ing and not auditing the audi- related party transactions; majority. Majority of members in- tors. This robust role can be pos- valuation of assets; cluding Chairperson should have sible only if Full Board including evaluation of external ability to read and understand Audit Committee, management financial controls; and financial statements. No specific including internal auditors and monitoring use of funds. criteria have been laid down for outside auditors, form a three- election of chairman and his right legged stool. Accordingly, Audit and to what extent, each func- to attend AGM. While Committee Committee was to consist of tion was discharged. Narayana in Listed concerns has to meet minimum three independent di- Murthy Committee((2003) stress- at least quarterly to approve fi- rectors, each one financially liter- ing mandatory responsibilities of nancial results, minimum one ate with higher compensation for Audit Committee explicitly clari- meeting per annum is a must for performing arduous responsibili- fied terms “financial literate” and others. ties. Besides, a Charter was de- “financial management exper- vised so that Committee can act tise” - a pre-requisite for mem- Functions, Powers, as a torch-bearer and watch-dog bership. Naresh Chandra’s Task Vigilance mechanism & in qualitative financial reporting. Force (2009) reiterated that for Evaluation bolstering independence of in- The Committee is mandated Audit Committee ternal and external auditors and to perform varied functions An Indian Saga: The genesis of ensuring free and frank discus- grouped into various heads viz., Audit Committee can be traced sion, Committee should have ma- recommendations for appoint- from Rahul Bajaj Task Force jority of Independent Directors. ment, remuneration and terms of (1998). It averred that Audit Similarly, Revised SEBI’s Clause appointment of auditors; review Committee alone is the via-media 49 held Audit Committee in high and monitor auditor’s indepen- to ensure long term good-will esteem. It even restrained a Board dence and effectiveness of audit of governance. Birla Committee member to act as chairman of process; approval of related party (1999) on whose recommenda- more than five Committees across transactions; valuation of assets; tions Clause 49 was inserted in all enterprises to devote time and evaluation of external financial Listing Agreement, spelled out energy for Committee work. controls; and monitoring use of its composition, functions and funds. It has power to call com- role to act as a catalyst for finan- Audit Committee ments of auditors about internal cial reporting. Naresh Chandra Companies Act 2013 & Rule 6 & control system, scope of audit and Committee (2002) favored tight- 7 (2014): All Listed Companies review of financial statements ening its composition (exclusive- and other classes of companies before submission to Board; dis- ly Independent Directors) and with paid up capital of Rs.10 cuss matters with internal and insisted upon a distinct Charter crore or more, turnover of Rs.100 statutory auditors and manage- where under, chairman was re- crore or more and companies ment; investigate any matter required to annually certify whether having aggregate outstanding ferred to it by Board; seek outside

Kaleidoscope June, 2016 13 ARTICLE professional advice; and have full access to information available with the company. In this context, while auditors and Key Managerial Personnel have right to give their explana- tions on matters relating to audit report, they have no right to vote. Further, if Board does not accept recommendations of Committee, the same has to be disclosed in Board’s report along with reasons there for. A vigilance mechanism has also been established for directors and employees to report genuine concerns or grievances. Above all, legislation provides management response. Unlike 2013 Act, old legislation for performance evaluation of was silent with regard to finan- Committee Members. • Review with management, internal auditor and independent cial literacy of members, terms of reference, whistle blower mecha- DPE Guidelines auditor significant findings - dur ing the year including status of nism and performance evaluation Department of Public Enterprises previous audit recommendations; of Audit Committee. However, being nodal agency for CPSEs and difficulties encountered dur- new provisions are silent for elect- (both Listed and Non-listed) has ing audit. ing Chairman of Committee by been formulating Guidelines for members. Similarly, previously bringing uniformity, consistency recommendations of Committee and effectiveness in function- Audit Committee Vs Clause if not accepted by Board were to ing of Audit Committee. These 49 & Companies Act be recorded in Minutes of Board too call for constitution of quali- Undoubtedly, Clause 49 insists meeting and reasons for such re- fied and independent Committee for strict requirements in respect fusal were to be communicated more or less aligned with SEBI’s of Audit Committee compared to shareholders to ensure trans- mandate and Companies Act. to latest Act. Unlike 2013 Act, parency. These are now confined The Guidelines assign prominent where Committee has minimum to be merely disclosed in Board’s role to the Committee over and three Directors, with majority of report thereby circumventing above Clause 49 namely: Independent Directors and ma- openness in deliberations. Same jority (including Chairman) • Review follow-up action on is true in respect of discretion- should have ability to read and C&AG observations. ary powers of Audit Committee understand financial statements, under new dispensation to hold • Review follow-up ac- Clause 49 clearly stipulates that discussions with auditors on cru- tion taken on recommenda- Committee should have mini- cial aspects like internal control tions of Committee on Public mum 3 Directors, 2/3rd of them system and scope of audit. Undertakings. being Independent and all of • Review with independent au- them must be financially literate Critical Appraisal ditor coordination of audit ef- (including one of them having ac- A deep examination of actual forts to ensure completeness of counting/ financial management functioning of Audit Committee coverage. expertise). Besides, Chairman reveals startling revelations. The • Review with independent audi- should be Independent Director. author had the benefit of Member tor and management adequacy of Similarly, comparison of Comp- of this Committee both in internal controls and recommen- anies Act 1956 Vs 2013 reveals both Central/State PSEs and Corporate dations of auditors together with positive and negative features. houses and inferences drawn are

14 KaleidOscope June, 2016 ARTICLE primarily based on his observa- Committee meeting barely lasts tions. Majority of Committees Audit Committee is for 1-2 hours and takes place on members do not possess required main pillar of corporate the day Board has to meet. It im- knowledge, aptitude and experi- plies that meetings are held just ence to perform. They have to be governance in steering to comply with statutory require- tough, knowledgeable and in- an enterprise to path of ments as no worthwhile discus- dependent minded to bring ap- sion takes place in limited span propriate skills and energy to the progress, growth and of time. Twelfthly, terms like tasks assigned to them. Secondly, prosperity. It plays vital “financial literacy” and “manage- they have very little familiarity role in increasing level ment expertise” are too broad and with latest International Financial open ended. Given new account- Reporting Standards/ home of assurance against ing standards and complexities, it grown standards/ Companies catastrophic failures, is difficult to adjudge suitability Act. Thirdly, experienced mem- of a candidate to become members serving on too many Audit ensures financial ber of Committee. Finally, perfor- Committees at the same time af- reporting and control mance evaluation of members is fect their commitment to a partic- of non-financial risks, rarely carried out thereby giving ular entity. NYSE regulations dis- cushion to perform in the manner courage members to serve more integrity of audit one likes. than three committees. Fourthly, and internal control It calls for pro-active than a re- unlike Board membership, there active approach on the part of is no capping to remain member processes, fosters a Audit Committee. It ought to of Audit Committee in ‘n’ num- culture and expectation ber of concerns. Fifthly, there is have strong and practical deter- always dearth of adequate num- of effective over-sight. minants including method of ap- ber of Independent Directors pointment, quality of members with required business acumen and their exposure, knowledge, and accounting background. integrity, business intelligence and succession planning. It has The dilly-dallying approach of willing Independent Directors. to act like a Working Committee Government in filling these posi- Eighthly, in majority of concerns, tions in CPSEs has created a huge Audit Committee Chairman hap- and meet more frequently than vacuum in constituting Audit pens to be a weak personality and a full Board. Its Charter should Committees thereby jeopardiz- dances to the tunes of manage- be reviewed, updated and tai- ing business proficiency. In their ment resulting in disastrous out- lored into annual work agenda. It absence, Government nominees comes. Ninthly, Security markets should make use of in-camera or from Ministries are called upon do not have wherewithal’s to en- executive sessions for improved to shoulder responsibility in ad- sure compliance from enterprises productivity. It must take care dition to their heavy workload stipulated in Committee’s charter. of risk management policy. It which again hampers pace of Tenthly, since its recommenda- should promptly initiate investi- effectiveness of an enterprise. tions are not binding, instances gations where accounting prac- Sixthly, with stringent provisions galore when Committee adopts tices are problematic or suscep- under the Act inviting personal re- escape mechanism to evade re- tive. Given such an environment, sponsibility and sometimes pen- sponsibility. Thus, allowing Bo- Audit Committee can drastically alties, Board members are reluc- ard to overrule recommenda- reduce inside abuse, cosmetic ac- tant to serve on Audit Committee tions tantamount to stark reality counting, collusion and falsifica- as they are expected to perform that it is dominated by insiders. tion of accounting information, impartially for risky proposi- Even in USA, SOX Act reaffirms unethical behavior and illegal- tions. Seventhly small size com- that Audit Committee is directly ity; improve performance against panies find difficult to have a full responsible for appointment, global standards; and ensure that dress Audit Committee in view of compensation, retention and its ‘independence’ is as real as dearth of competent, talented and oversight of auditors. Eleventhly, perceived.

Kaleidoscope June, 2016 15 ARTICLE

The Diversity Differentiator Managing Board Dynamics & Achieving Effectiveness

Nesar Ahmad*

he board of directors is the This article discusses current Two prominent examples were: most important decision- board diversity literature. The ar- (i) stressing on the roles of non- Tmaking body in a corpora- ticle mainly focuses on the recent executive directors as well as the tion. Boards are responsible for contribution of economists to this importance of independence of approving major strategic, cen- topic but also provides some dis- the board in the Higgs Review in tral idea, financial and non-finan- cussion of the noneconomic lit- 2003; and (ii) emphasizing the sig- cial decisions, such as mergers & erature. Specifically, the article at- nificance of balancing skills and acquisitions (M&As), takeover, tempts to provide partial answers experience of the board members strategic planning for business to three questions: What can be as in the Walker Review in 2010. diversification, etc. to name a few. learnt about diversity by studying Until recently, there has been an Not surprisingly, substantial re- boards? What can be learnt about urge for diversifying the board. search focuses on the workings of corporate governance from stud- Intuitively, diversity means hav- corporate boards. But research- ies of board diversity? Is research ing a range of many people that ers focus on varying aspects of on board diversity useful for pol- are different from each other. boards. Some researchers view icy discussions? Directors may There is, however, no uniform that board, as a group of diverse differ in many important charac- definition of board diversity. individuals who have different teristics, such as educational and Traditionally speaking, one can biases and prejudices and whose functional background, industry consider factors like age, race, behavior is affected by social con- experience, social connectedness, gender, educational background straints and power relations. This insider status, gender, and race. and professional qualifications of perspective suggests that director The responsibilities of the board the directors to make the board heterogeneity plays a key role in of directors have been on the cor- less homogenous. Some may in- how boards function. In contrast, porate agenda for years. Acting as terpret board diversity by taking most researchers in economics, the agents of shareholders, direc- into account such less tangible consider the board as a single tors are expected collectively to factors as life experience and per- entity. The only heterogeneity devise operational and financial sonal attitudes. considered is whether directors strategies for the organization In short, board diversity aims are independent from managers. and to monitor the effectiveness to cultivate a broad spectrum All other director characteristics of the company’s practices. of demographic attributes and are usually deemed unimportant characteristics in the boardroom. unless they are somehow related Definition of Board A simple and common measure to (formal or real) independence. Diversity to promote heterogeneity in More recently, an increasing Over the years, regulators have the boardroom – commonly amount of economic research on placed great emphasis on ad- known as gender diversity – is to board diversity can be found in dressing different matters relat- include female representation on the academic pipelines. ing to the board of directors. the board.

*Past President: The Institute of Company Secretaries of India (ICSI) & Corporate Secretaries International Association (CSIA), Geneva, Switzerland.

16 KaleidOKaleidOscope June, 2016 ARTICLE

Benefits of Board board members are more likely to Diversity possess different personal charac- Diversifying the board is said teristics, which lead to dissimilar broadly to have the following leadership, thinking, emotional benefits: styles and even risk preferences and behaviors. Not only may • More effective decision making. this foster creativity in delivering • Better utilization of the talent solutions to problems, but also pool. provide a more comprehensive • Enhancement of corporate rep- oversight to the operations of the utation and investor relations by organization through a further establishing the company as a re- enhancement of the company’s sponsible corporate citizen. sensitivity to a wider range of countries. NEDs are, however, possible risks such as reputation often criticized for having insuf- 1. More Effective Decision and compliance risks. This may ficient devotion of time and effort Making: It is believed that a di- then support a greater supervi- in understanding the business verse board is able to make de- sion on the boards in its perfor- cisions more effectively by re- and representing stakeholders to mance evaluation and in the de- scrutinize executive directors in ducing the risk of ‘groupthink’, cision-making process. paying more attention to manag- making appropriate decisions. Further, companies are coming and controlling risks as well One of the problems of searching peting in a global environment as having a better understand- for suitable directors lies on the nowadays. In order to achieve or- ing of the company’s consumers. limited number of candidates – ganizational goals and objectives, These benefits are further elabo- there is especially a tendency to rated below. directors need to understand di- search for board members with verse stakeholders’ claims – in Directors are responsible, as men- typical characteristics, such as particular the needs of custom- male directors. If directors ex- tioned previously, for devising ers – well. A balanced board will strategies through critical analy- pand the pool of potential candi- have more representatives of dates by considering more diver- sis and effective problem solv- users and customers of its prod- ing. One of the pitfalls behind the sified attributes, like women and ucts in the boardroom to make decision-making process in the ethnic minorities to be included informed judgment. This may be boardroom is ‘groupthink’, which in the boardroom, it will alleviate especially important for consum- is described as a psychological the problem of ‘director shortage’ er-facing industries to have wom- behavior of minimizing conflicts and therefore better utilize the en directors and for multinational and reaching a consensus deci- talent pool. It is therefore vital for companies to include foreign na- sion without critically evaluating companies to initiate tapping into tionals on the board. Dissimilar alternative ideas in a cohesive in- the under-utilized pool of talent backgrounds, experience and so- group environment. Combining through board diversity. cial networks in the boardroom contributions of a group of people 3. Improving reputation and in- may therefore improve their un- with different skills, backgrounds vestor relations: Having a hetero- derstanding of the stakeholders, and experiences is assumed to be geneous board one can enhance provide diverse connections with able to approach problems from corporate reputation through the external environment and a greater range of perspectives, signaling positively to the inter- help address stakeholders’ claims to raise challenging questions nal and external stakeholders in a more responsive manner. and to debate more vigorously that the organization emphasizes within top management groups. 2. Better utilization of talent diverse constituencies and does Such a multiple-perspective anal- pool: Stakeholders are demand- not discriminate against minori- ysis of problems can change the ing more from directors, in par- ties in climbing the corporate boardroom dynamics and is more ticular from non-executive di- ladder. This may somehow in- likely to be of higher quality than rectors (NEDs). Having NEDs dicate an equal opportunity of decisions made under a ‘group- on the board has already been employment and the manage- think’ environment. Diversified a common requirement across ment’s eagerness in positioning

Kaleidoscope June, 2016 17 ARTICLE the organization as a socially re- yielded positive results. sponsible citizen. So far as Indian Law is It is also argued that board diver- concerned, appointment Regulatory Initiatives of Board Diversity sity reflects the diversity of the of women director is society and community served by Board diversity can be pro- the organization. This reflection compulsory for the moted by a number of methods. strengthens the social contract certain companies Measures currently adopted by different regulatory bodies are between a business and its stake- prescribed by the holders, which, in turn, improves generally classified into the fol- its strategic fit that the business Central Government. lowing approaches: (i) through has with its environment. As a re- Further the new imposing quotas on the board; sult, it is suggested that a diverse and (ii) enhancing disclosures board can help a company build company law also using the ‘comply or explain’ its reputation as a responsible cor- recognizes the board approach. porate citizen that understands diversity by having Imposing quotas refers to man- its community and deserves its datory requirement in appointing trust. Further, more institutional certain terminologies a minimum number of directors investors have taken into account like director elected with different attributes on the board diversity as a factor for in- by small shareholders, board. This legislation enact- vestment evaluation due to the ment mainly deals with gender reasons that: (i) a number of aca- independent director, diversity to tackle the relative demic research articles indicated nominee director etc. underrepresentation of women the positive correlation between in the boardroom. For example, firm value and board diversity; other companies. Catalyst’s 2011 since 2008, each listed company and (ii) institutional investors study found that companies with in Norway has had to ensure are placing greater emphasis on the most women board direc- that women fill at least 40% of corporate social responsibility tors outperformed those with the directorship positions. Spain and and Business Responsiveness of least on return on sales (ROS) by France are implementing simi- Corporates by following guide- 16 percent and return on invest- lar mandatory requirements for lines and parameters laid down ed capital (ROIC) by 26 percent. gender diversity. This approach by various national and inter- Companies with sustained high increases the number of women national institutions like MCA representation of women—three on the board at a faster rate and (NVG), SEBI, GRI, PRI, ICGN, or more women board directors forces companies to follow the etc. Board diversity can, there- in at least four of five years—sig- legislation. fore, to a certain extent, improve nificantly outperformed those Another measure to enhance its investor relations. with no women board directors. board diversity is through In the United States, there is a transparency and disclosure. Impact of Board Diversity linear relationship between racial Companies, under corporate on Revenue and Profit and ethnic diversity and better fi- governance codes, are required Companies with the most wom- nancial performance: for every 10 to disclose their diversity policy en board directors, especially percent increase in racial and eth- in appointing directors so that those with three or more women nic diversity on the senior-execu- investors and stakeholders can board directors, had better finan- tive team, earnings before interest make proper evaluation. Those cial performance than those with and taxes (EBIT) rise 0.8 percent. who fail to implement such the least women board directors. Racial and ethnic diversity has a measures have to explain their Since 2004, a series of catalyst stronger impact on financial per- non-compliance in the corporate studies has shown that compa- formance in the United States governance report or equivalent. nies that achieve diversity in than gender diversity, perhaps The Corporate Governance Code their management and on their because earlier efforts to increase (2010) of the United Kingdom, corporate boards attain better fi- women’s representation in the top for example, stipulates that nancial results, on average, than levels of business have already companies are required to: (i)

18 KaleidOKaleidOscope June, 2016 ARTICLE incorporate diversity as a con- company and the shareholders’. individual director to be knowl- sideration in making board ap- This, in turn, links to the fun- edgeable and informed about all pointments; and (ii) disclose in damental concepts of corporate phases of business. It is also un- their annual reports describing governance – namely, judgment, realistic to expect individual di- the board’s policy on diversity, responsibility and accountability. rectors to be available at all times as well as its progress in achiev- Recent academic literature sug- and to influence all decisions. ing the objectives of that policy. gests that one of the ways to en- Thus, in staffing most boards, it is Australia and Hong Kong are hance corporate governance, ar- best to think of individuals con- promoting diversity using a simi- tributing different pieces to the guably, is to diversify the board, lar ‘comply or explain’ approach. total picture that it takes to create which is a new topic added to the Supporters of this approach be- an effective board.’ In implement- Article P1, Governance, Risk and lieve that board appointments ing policies on board diversity, Ethics syllabus in 2013 formu- should be made on the basis of both the company’s chairman and lated by Association of Chartered business needs, skills and abil- the nomination committee play a ity instead of legislative require- Certified Accountants, a leading significant role. The chairman, ments, which may sometimes be international accountancy body being the leader of the board, has considered excessive in the mar- located in UK. to facilitate new members joining ket. So far as Indian Law is con- the team and to encourage open cerned, appointment of women Addressing challenges discussions and exchanges of in- director is compulsory for the faced by a diverse board formation during formal and in- certain companies prescribed by and preparing for the formal meetings. To create such a the Central Government. Further future well-functioning team, the chair- the new company law also rec- • Strategy in delivering innova- man further needs to commit and ognizes the board diversity by tion and understanding of tech- support mentoring, networking having certain terminologies like nology as an enabler of growth and adequate training to board director elected by small share- will be a key factor for many members. The nomination com- holders, independent director, boards. mittee should give consideration nominee director etc. Also SEBI • Shareholder activism is global- to diversity and establish a formal has prescribed composition of ly expected to continue challeng- recruitment policy concerning the the Board with executive, non- ing the boardroom dynamics. diversity of board members with executive and independent di- reference to the competencies re- • Rise in Cyber-Attacks. rector. Moreover the new law quired for the board, its business further recognizes ‘comply or • Diversity has become more nature as well as its strategies. explain’ approach in certain areas main stream thinking in the mod- The committee members have to like CSR. ern enterprise. carefully analyze what the board lacks in skills and expertise and Balance Board Rooms Conclusion advertise board positions period- for Good Corporate Board diversity is justified as a key ically. They are strongly encour- Governance to better corporate governance. aged not to seek candidates mere- The board of directors forms one The following extract from aca- ly through personal contacts and of the pillars of a robust corporate demic literature by Conger and networks in order to carry out a governance framework. This is Lawler (2001) serves as a good formal and transparent nomina- evidenced by the Organization summary of board diversity: tion process. for Economic Co-operation and ‘The best boards are composed of The most important ingredient Development (OECD) Principles individuals with different skills, to the success of board diversity, of Corporate Governance stating knowledge, information, power, however, would most probably that ‘the corporate governance and time to contribute. Given be the board members’ changing framework should ensure the the diversity of expertise, infor- their mindset to welcome a more strategic guidance of the com- mation, and availability that is heterogeneous board, as well as pany, the effective monitoring of needed to understand and gov- to place greater trust in one an- management by the board, and ern today’s complex business- other and work together more the board’s accountability to the es, it is unrealistic to expect an effectively.

Kaleidoscope June, 2016 19 ARTICLE

The Performance Evaluation System for Philippine SOEs

tate-Owned Enterprises (k- encountered in implementing the Administrative Order No. 25, s. nown as “GOCCs”1 in the policies and guidelines in A.O. 2011 was then followed up with SPhilippines) are created 59. In order to reinforce the State Executive Order No. 80, 2012, by special charters or under the Ownership Policy, the thrust of directing the adoption of a per- Corporation Code.2 From a small R.A. No. 10149 concentrated on formance based system for civil number of 37 GOCCs in 1965, corporate governance and the servants that would be linked to the GOCC/SOE sector ballooned effective exercise of the State’s organizational performance. This in 1984 to 303 GOCCs that were ownership rights through a cen- was a significant breakthrough not centrally monitored and su- tral advisory, monitoring and for government, as it was the first pervised, and the lack of account- oversight body-the Governance time that performance incentives ability led to losses that drained Commission for GOCCs (GCG). of civil servants were formally the government’s coffers. The During his first State of the Nation and systematically linked to or- reform movement of the Sector Address in July 2010, President ganizational performance. started during the incumbency Benigno S. Aquino III called for Together with R.A. No. 10149, of President Corazon C. Aquino, strong reforms in the GOCC these reforms led to GCG’s es- who in February 1988 issued Sector in the wake of abuses on tablishment of the performance Administrative Order (A.O.) compensation and cases of mis- Evaluation System (PES) for the No. 59 (Rationalization of the management in certain GOCCs GOCC Sector in 2013. Backed by Government Corporate Sector) under the previous administra- a corresponding Performance- which recognized the “need to tion. At the core of the contro- Based Bonus and Incentive sys- improve the efficiency of gov- versy on compensation however tem, the PES ultimately aims to ernment-owned and controlled was the need to turn the tide on establish a culture of excellence corporations and their subsidiar- the culture of entitlement and and improve public service in ies in order to promote economy, usher in a performance-oriented the GOCC Sector. It recognizes efficiency and effectiveness in the culture, not only in GOCCs but in the key role that performance delivery of public services”. all of government. measurement systems play in Twenty-three years later, the ba- After directing the development developing strategic goals, and sic principles and guidelines laid of a common compensation sys- more importantly, in evaluating down in A.O. No. 59 have found tem for GOCCs and imposing a the achievement of organiza- themselves sanctified into the moratorium on increases pend- tional objectives and correspond- provisions of Republic Act No. ing completion of the study ingly rewarding employees and 10149, otherwise known as the in December 20103, President officials.5 GOCC Governance Act of 2011. It Aquino directed the harmoni- was a culmination of the reform zation of all national govern- Institutional Strategic movement, embodying the les- ment performance monitoring Performance Management sons learned from the challenges systems in September 2011.4 The PES allows the Governance

1 Government-Owned or –Controlled Corporations. 2 Baas ambaries Big 68 – The Corporation Code of the Phillippines. 3 Executive Order No. 7, s. 2010. 4 Administrative Order No. 25, s. 2011. 5 Innovation in performance measurement: Trends and reseach implications, lttner, Christopher D; Larcker, David F. Journal of Management Accounting Research 10 (1998): 205-238.

20 KaleidOscope June, 2016 ARTICLE

Commission to assess the opera- Social Impact what is the strategic impact of the GOCC in the context tions of GOCCs and utilize such of inclusive growth and economic development? what evaluation in determining the are the measurable breakthrough results in the next eligibility of GOCCs for their 5-10 years? Introduced by GCG bonuses for the year. Concretely, Finance How do we ensure the company’s financial viability? the PES is pursued through an- what is the outcome of responsible financial nual Performance Agreement stewardship? e.g. EBITDA Negotiations (PAN) between the Customers/ Who are our key customers/stakeholders? what GCG and the Governing Boards Stakeholders critical services do we need to deliver? e.g. customer Satisfaction survey rating and Management of GOCCs, which ultimately lead to the Internal Processes In what processes do we need to excel to provide establishment of the GOCCs’ excellent service delivery to our stakeholders/ customers? e.g Turn-around time, automation Performance Scorecards. Learning & Growth How do we effectively equip our people to execute Although the PES was built on the processes that are key to the strategy? e.g. the platform of the Balanced improvement of human capital based on competency Scorecard, the Governance framework Commission crafted Performance Scorecards in its first two years capabilities to deliver such ser- Stakeholder Satisfaction surveys, based on the Organizational vices. The Balanced Scorecard en- and develop competency models Performance Indicator Frame- abled better analysis of the driv- for their officers and employees work (OPIF) used by the ers of performance as opposed to in their Performance Scorecards. Department of Budget and the standard regulatory measures Management (DBM). The frame- At the end of each calendar year, for General and Administrative work not only allows budget al- all GOCCs are required to sub- location and monitoring but also Support Services under OPIF. mit their self-assessment for performance management built All GOCCs under the jurisdic- validation by the Governance on a results-based budget sys- tion of GCG are directed to de- Commission. Supporting docu- tem. This system is anchored on velop their own vision and mis- ments are presented to Corporate a development perspective and sion pursuant to their respective Governance Officers while ocular has emphasis on core services mandates, core values essential visits are like wise held in order and functions. It was an interim in their business operations, and to concretely evaluate the perfor- process intended to align GOCCs Performance Scorecards must be mance of the GOCC. Assessment with the National Government largely based on their strategy reports on the performance of budget system since unbridled maps, which ultimately reveal the GOCCs are published in the GCG website6 to ensure full dis- Board autonomy under previous the story of how value is created closure, transparency, and full Administrations resulted in vary- for the organization as it show a accountability. ing budget systems hindering logical, step-by-step connection comparative analysis and effec- among all strategic objectives. Only GOCCs that achieve a weighted score of 90% based tive oversight over the budgets of While recognizing the pecu- on their annual targets as well GOCCs. liarities of the operations of as satisfy the Good Governance For 2015 targets, the Governance each GOCC, the Governance Conditions prescribed by GCG,7 Commission migrated GOCCs to Commission also ensured a will be eligible to grant their the Balanced Scorecard as it rec- proper balance by enforcing stan- bonuses. Appointive Directors, ognized the ability of the same to dard in operational areas that on the other hand, will only re- not only assess how an organiza- were common across all GOCCs ceive their Performance-Based tion has performed in delivering were required to establish Incentives if their GOCC meets its services but also in measuring Quality Management Systems in 90% of its targets and they attend the organization’s capacities and lines with ISO 9001:2008, adopt 90% of all Board and committee

6 www.gcg.gov.ph. 7 see GCG MC No. 2015-05.

Kaleidoscope June, 2016 21 ARTICLE

enhances the ability of GOCCs to act as stewards of the people’s resources.

Professionalizing board governance Good governance entails more than organizational and management performance; it must involve evaluation of individual director performance given that ensuring good corporate governance of GOCCs in a transparent, responsible and accountable manner is ultimately the responsibility of the Governing Board. meetings, as validated through and employees, the support of The Code of Corporate Govern- their Directors Performance the PPA Board of Directors and ance for GOCCs (GCG M.C. Review (DPR). Such a paradigm PPA stockholders and the guid- No. 2012-07) provided for the shift in GOCC performance man- ance of the GCG to PPA’s jour- development of an Annual agement was not easily received ney under the regime of good Performance Evaluation of the by GOCCs. In fact only 64% of the 8 governance .” Board that would that would fur- GOCCs under the jurisdiction of At the end of the day, the PES al- ther strengthen the competence the Governance Commission par- lows every GOCC to be directly and character of the Members ticipated in the 2013 Performance accountable to the Filipino peo- of the GOCC Governing Agreement Negotiations (PAN). ple by fulfilling their commit- Boards. According, in 2014 the A number of GOCC officials even ted targets. However, more than Governance Commission issued expressly contested the authority ensuring accountability, the PES GCG M.C. No. 2014-03 to estab- of the Governance Commission enables the GOCCs to plan for lish the Performance Evaluation to conduct these negotiations, long-term breakthrough results for Director (PED) in the GOCC questioning the legality and wis- and strengthens their awareness Sector based on a review of ex- dom of the policy. of their respective areas of influ- isting Board performance eval- ence. More importantly, the PES uations in the private sector, 2011 2012 2013 2014

GOCCs N/A 80 78 90 Participating in PES

Over time however, GOCCs began to see the relevance of the PES. Philippine Ports Authority General Manager Juan C. Sta. Ana shares in his summary report of PPA’s accomplishment. “When I step out of the hall of PPA. I am confident that I am leaving an organization that is strong and it getting stronger. I would like to gratefully acknowledge the commitment of the PPA officers

8 Sta. Ana. Juan C. Letter to the Governance Commission for GOCCs 28 December 2015.

22 KaleidOscope June, 2016 ARTICLE both in the Philippines and abroad, specifically through their Board well-governed GOCCs, raise cor- Attendance, Chairman, self and Peer Appraisal Reviews, and GOCC porate governance standards and Performance. practices, and encourage GOCCs Prior to the enactment of the GOCC Governance Act of 2011, many to adopt the best practices on corporate governance. In line with Appointive Directors held their positions for fixed terms regardless the thrust of R.A. No. 10149 on en- of performance. Through the PED, all appointive Directors may only hancing transparency,10 the CGS be recommended reappointment if he or she meets an average rat- and the other transparency initia- ing of 85%. The said policy enabled the Governance Commission to tives of GCG11 set the GOCC sector recommend the replacement of non-performing Board directors. For on the path of becoming as trans- purposed of being able to report to the President the performance of parent and accountable as pubilic- Ex Officio Directors, as well as to allow the GCG to develop and evolve ity listed companies in line with a good governance system for Ex Officio Directors in the GOCC sec- the recommendation of OECD on tor, the PED also covers the Ex Officio Directors and their Alternates. corporate governance of SOEs.12 In 2015, the PED system has been taken online with the internet-based Each GOCC shall be appraised of PED (PED) to facilitate submission and analysis of thousands of rat- its performance and its level of ad- ing forms submitted from over 700 encourages the Directors to submit herence to the best practices and international standards of corporate governance. Assessment shall be based on the disclosures in the GOCC’s website.

Towards performance- driven goccs With the introuction of the Performance Evaluation System, the Performance Evaluation for Directors and the Corporate Governance Scorecard, it is evident that steps have been taken in order to instigate a performance –driven culture within the GOCC sector. GOCCs are now more ac- honest evaluation and share com- introducing the Corporate Gov- countable to the Filipino people; ments or recommendations for ernance Scorecard (CGS) for results became more concrete and improvement. GOCCs. The CGS is a quantita- evident. There are established tively-driven evaluation tool ex- basis for the eligibility to allow- Raising corporate tracted from existing and globally ances and bonuses, thus limiting governance to accepted standards and practices the possibilities of corruption in international standards that assesses the corporate gov- this aspect of public service. It To further promote the need for ernance performance of GOCCs is undeniable therefore that one good corporate governance, the as based on the OECD Principles of the legacies of the Aquino ad- institute of Corporate Directors of Corporate Governance and the ministration is the institutional- (ICD) collaborated with the ASEAN Corporate Governance ization of linking performance to Governance Commission in Scorecard.9 It aims to recognize rewards.

9 R.A. No. 10149: “Code of Corporate Governance for GOCC’s (GCG MC 2012-07); OECD Principles of Corporate Governance for State Owned Enterprises; and the ASEAN Corporate Governance Framework. 10 See Sec. 25, R.A. No. 10149 on Mandatory disclosures. 11 Other major transparency initiatives include the PES, CRS, No Gift Policy, as well as future initiatives such as mainstreaming of the substance Development Framework of the Global Reporting imitative. 12 OECD (2015), OECD Guidelines on Corporate Governance of State-Owned Enterprises 2015. OECD Publishing.

Kaleidoscope June, 2016 23 ARTICLE

Ease of doing Business in India Are we on a Right Track?

Parveen Kumar Partner ASA & Associates LLP

ebate continues on whe- topics. In report of 2016, India In 5 categories, no change of rank ther good days have fi- stands at rank number 130, 4 when compared with last year, Dnally arrived in India. points improvement since last improvement in 3 and ranking India is a country with second year of 134. Separately looking at further went down in 2. We will largest population, one of the all the 10 topics, it has improved be discussing all the ten topics G-20 major economies, a mem- its ranking in 3 topics, gone down and analysis of Indian Ranking. ber of BRICS, global hub of in 2 and remains constant in 5. Information technology related One topic, where Indian rank- Starting a Business services like business process out- ing, 8 is quite good is ‘Protecting In the study of 2016, India ranks sourcing and highest growth rate Minority Investors’. Whereas for 155, which is a 9 points improve- (over 7% in last two decades) in ‘Enforcing Contracts’ the rank- ment from 2015 ranking of 164. It the world. With strong domestic ing is almost hitting the bottom at ranked last out of 8 South Asian demand base, the growth looks 178. In topic of ‘Starting Business’ countries, including Pakistan, sustainable and economy looks India ranks 155 which is slight Afghanistan, Bangladesh, Nepal, strong. improvement from last year rank Bhutan, Srilanka and Maldives in Modi Government’s new initia- of 164. Let us have a look at at all this topic. tives like ‘Start up in India’ and the 10 topics (or say categories). Many approvals required for ‘Make in India’ have set the tone and made intentions clear. At present, without doubt, India is one of the best investment des- tinations in the world. Policies are being framed, rules are being written, schemes are being floated to make it better. A lot is dependent on the implementation of policies, rules and schemes at the ground level. Let us look at some other facts as well. World Bank provides ranking to 189 countries on Ease of Doing Business in 10 different

24 KaleidKaleidOOscope June, 2016 ARTICLE

been provided through the disclosure schemes under Income tax act in different forms during last year and current year, it remains a major task at hand of the Government. In 2015, India introduced Black Money Act to bring back undisclosed Income back to the main stream.

Getting Electricity India ranks 70. If compared with points of improvement from last year, it has performance because of 22 points improvement from 92. Still long way to go. starting a manufacturing unit or India ranks 136, same In 2015, towards power sec- a business. One hasto run from tor reforms, the Government as last year. Passing pillar to post before starting a launched a scheme called UDAY business. Approvals from various of Insolvency and (UjwalDiscom Assurance Yojna) government departments and Bankruptcy Code by to rescue position of electricity re- registrations in number of regula- Parliament will certainly tailers. It also provides measures tory authorities makes it complex provide a modern to cut power thefts and align con- for sure. framework to ease out sumer tariff with cost of generat- Single window systems in Tamil this area. Though few ing electricity. and Gujrat are successful mod- areas like cross border els of how to encourage starting Registering Property insolvency issues a business. Many other states are This topic examines the steps, might need little more trying to join the league, but prog- time and cost involved in reg- ress is slow. ‘Start up in India’ ini- clarification, this is a istering a property. India rank tiative of the Government is right major development in 138, same as what was last year. step in direction of improvement. recent past. If one looks Indian Land Acquisition Act 1894 objectively, there is is quite old and need reforms. Dealing with movement in almost all The Real Estate (Regulation and Construction Permits the areas and significant Development) Act 2016 got presi- India ranks 183 out of 189 coun- developments can be dent accent on 25th March and tries. Though improvement of 1 hope to bring in fresh reforms in noticed. Though long point from 2015 ranking of 184, this area. this area needs improvement- way to go, the directions from any stretch of imagination. seem in focus and as Getting Credit It ranks 7 out of 8 south Asian they say, “Where there India Ranks 42 – performance countries. is a will, there is a way”, down by 6 points as last year it Parallel economy of unaccounted it appears that our was 36. Annual results of bank- funds (read black money) is a ma- regulators have the will. ing industry saw quite a few jor hurdle. Though window has red numbers this year. As per

1 http://in.reuters.com/article/india-cenbank-loans-idINKCN0Z00LO

Kaleidoscope June, 2016 25 ARTICLE an article published at Reuters1 Indian banks are grappling with about $120 billion in stressed loans, or 11.5 percent of the total, and RBI Governor Raghuram Rajan has set a deadline of March 2017 for them to clean up the bad loans on their balance sheets. Further steps are being taken and guidelines are being issued to help bankers in restructuring large stressed loans.

Protecting Minority Investors Best performer at ranking 8 same as last year. The Companies payments in changing scenario Many people have approached Act 2013 has various new provi- of accounting. As you may be Ministry of Corporate Affairs sions with enormous responsi- aware, new standards are becom- with a complaint that section 185 bilities on senior management. ing applicable in phases starting and 186 of the Companies Act Introduction of reporting on 2016-17. These new accounting 2013 (regulating related party Internal Financial Controls by the standards (Ind AS) are converged transactions) are hurdle in ease of auditors besides board of direc- with International Financial doing business in India. However tors is another step in direction Reporting Standards (IFRS) and those transactions need to be seen of risk management and enhanc- hope to bring consistency with from different perspective, in or- ing confidence of investors. The global accounting norms. der to mitigate risks of irregular Penalty provisions along with practices. prosecutions will certainly bring Trading Across Borders seriousness into the task of board India ranks 133 and there is no Resolving Insolvency of directors especially indepen- change in the status from last India ranks 136, same as last dent directors. year. Prime Minister’sglobal vis- year. Passing of Insolvency and its and participating in various Bankruptcy Code by parliament Paying Taxes international activities will start will certainly provide a mod- We stand at 157 – one-point im- seeing results in next couple ern framework to ease out this provement from last year of 156. of years. Opening of economy area. Though few areas like cross The new initiatives of present and attracting Foreign Direct border insolvency issues might government, including bringing Investment through various in- need little more clarification, in Goods and Service Tax (GST) centives appear to be among the this is a major development in re- will certainly help the cause. This top priority of this Government. cent past. one initiative will help in increase If one looks objectively, there is of GDP of growth by more then Enforcing Contracts movement in almost all the ar- one percentage, some experts be- India ranks poorly at 178, which eas and significant developments lieve. The speed at which is this is same as last year. Small reforms can be noticed. Though long Government is working has sur- in this area, like removing redun- way to go, the directions seem prised many. dant Acts and regulations will in focus and as they say, “Where Notifying Income Computation prove to be a big leap. Judiciary there is a will, there is a way”, and Disclosure Standards (ICDS) reforms are also one of the top it appears that our regulators appear to bring consistency in tax agenda items of this government. have the will.

26 KaleidKaleidOOscope June, 2016 ARTICLE

Yoga: A Miracle for Healthy Heart, Healthy Mind & World Peace

Dr. H. K. Chopra*

n Ayurveda, the exercises are and Kapalabhati. In Bhastrika the required by conventional ath- recommended according to abdominal muscles work like bel- letics. The technique consists of Idosha dominance and it rec- lows. You have to sit straight up short, powerful exhalations, each ommends exercise regularly sev- on floor or in the chair, your arm followed by a passive inhala- en days a week. These exercises should be parallel to your sides tion. To begin, sit with your back are doshas specific, kapha type and bent upwards at the elbows, straight, either on the floor or in for example requires strenuous with your hands in the fists are a chair. Your shoulder should be exercise and vata require least approximately shoulder height. back, and your abdominal muscle strenuous exercise and pitta fall Then inhale and exhale a single should be free to move. Correct somewhere in between. If you deep breath through your nose posture is extremely important have large muscular body then then as you take another deep in kapalabhati, because the ab- kapha is your dominant dosha. If breath raise your arms straight dominal muscles must be able to your muscular and physical de- up and as they reach full exertion relax thoroughly when you in- velopment is more modest then open your fists and extend your hale. Once your posture is estab- you should put yourself in vata fingers. Now quickly lower your lished, begin breathing through category, which requires light arms back to the starting position your nose to establish a rhythm exercises. If you are in between while simultaneously exhaling of deep, even breathes. Then, then you should put yourself in through your nose. Keep your just when you’re about to exhale, pitta category. For kapha types hands facing forward throughout contract your stomach muscles running, weight training, aero- this exercise. Continue for two or quickly and powerfully, which bics, rowing and dance are ap- three sets of fifteen repetitions. will force air out through your propriate. For vata types yoga Kapalabhati is another breath- nostrils. This exhalation should aerobics light bicycling, walking, ing exercise which is equivalent be as complete as possible in one and wagging are excellent exer- to jogging. A Kapalbhati exercise short, powerful blast. When you cises. Too much exercise can turn cleans metabolic wastes from first learning this exercise, try to vata out of balance. Pitta types of the body. This exercise acceler- exhale approximately once per exercise is more vigorous such as ates heart rate without requiring second. Then gradually increase jogging, running, hiking, mount- a great deal of exertion from the the rate to twice per second, but ing, climbing and swimming. large muscle groups of the body, it don’t try to go any faster than that. Two excellent ayurvedic exer- is particularly useful exercise for You can also use in mantra to in- cises that focus on breathing are the people who aren’t at the high crease the benefit of exercise such known as Bhastrika Pranayama level of physical conditioning as silently repeating the syllable

* Chairman, National CSI Affairs; President, World Wellness Foundation; President, World Heart Academy; Chief Cardiologist, Moolchand Medcity, New Delhi; Co-Chairman Health Committee, SCOPE.

Kaleidoscope June, 2016 27 ARTICLE

down and rest for a minute or two. Hold each position for about five seconds. The Eight Limbs Position (position 6) is the only exception, as it is held only one second. Do not rush through the exercises; maximum valve comes from doing them slowly. Each cycle takes one to two minutes. After completing the final cycle, lie down on your back, arms at your sides, with palms facing upward, for two minutes. One should definitely not feel pain or discomfort while doing these exercises. If even minimal performance of a particular posture causes discomfort, omit that posture. If one has back problems, “so” each time you inhale and breath. The Sun Salute lubricates consult a physician before start- then, repeat the syllable “hum” the joints, conditions the spine, ing these exercises. when you exhale. Remember that and strengthens every major the best times to exercise are dur- muscles group in the body. It cre- How to do One Cycle of the ing kapha period from 6 am to 10 ates balance, stability, suppleness Sun Salutation am or 6 pm to 10 pm. and flexibility. • Salutation Position: Start the When you do the Sun Salute, al- Sun Salute with your feet paral- Yoga low a half-hour before a meal and lel and your weight distributed Yoga is derived of the word ‘Yoke’ three hours after a meal. If you evenly over your feet. Place your which means union of body, mind, practice other meditation pro- hands together, palms touching, soul, spirit and environment. It is grams or yoga postures, the Sun at chest level. Breathe easily for a way of life which endows per- Salute can be performed before about five seconds. fect health thereby enhancing op- them. One cycle of the Sun Salute, • Raised Arms Position: As you timal integration of body, mind, consisting of twelve postures. Do inhale, lift your hands over your soul, spirit and environment and not strain. If you start to breath head, lengthening your spine eas- thus enhances physical, mental, heavily or begin perspiring, lie ily in an extension posture. social, spiritual and environment wellbeing. There are eight limbs of Yoga, which are : 1) Yama (Restraints or Do’s and Don’ts), 2) Niyama (Self Discipline), 3) Asana (Postures), 4) Paranayama (Breathing exercise), 5) Pratiyahara (Con- templation), 6) Dharana (Concen- tration), 7) Dhyana (Meditation) & 8) Samadhi (Transcend).

Sun Salutation It includes a series of twelve flexion and extension exercises that integrate the mind, body, and

28 KaleidOscope June, 2016 ARTICLE

• Hand to foot position: As you exhale, bend your body forward and down into a flexion posture. Allow your knees to bend. • Equestrian position: On the inhalation, extend your left leg back, knee to the ground. Allow your right leg to bend and your right foot to stay flat on lengthen upward.

• Mountain position: As you exhale, place your right leg back, even with your left leg, pushing the buttocks up into a flexion posture. The body forms an even in- verted V from your pelvis to your hands and from your pelvis to your heels. your body forward and down, your thumb and the middle and coming down into a flexion pos- ring fingers of your right hand. • Eight limbs position: Carefully drop both knees to the ground ture. Allow your knees to bend. • Using your right thumb, close and allow your body to slide • Raised arms position: Repeat off your right nostril. Start by ex- down at an angle, with your chest position 2. As you inhale, lift your haling through your left nostril. and chin briefly on the ground. hands over your head, lengthen- Then inhale easily through your Hold this for a second and then ing your spine easily in an exten- left nostril. move smoothly into the next sion posture. • Now use your ring and middle position. • Salutation position: Repeat po- fingers to close your left nostril. Exhale slowly through your right • Cobra position: As you inhale, sition 1, ending the Sun Salute the nostril, and then easily inhale. lift your chest up and slightly for- same way you began, with your ward while pressing down with hands folded, palms together, in • Continue alternating nostrils your hands. Keep your elbows front of your chest. Breathe eas- for about five minutes. Your close to your body. Allow your ily for about five seconds. Then breathing should be natural, or spine to lift your head-do not start begin the next cycle. (Position 12 exaggerated. It may be a little slower and deeper than usual. the movement with your head or becomes the first position for the lift your body with your neck. second cycle; you can go directly • When you are finished, sit qui- • Mountain position: While ex- into position 2 from here.) etly with your eyes closed for a haling, raise your buttocks and few minutes while breathing eas- hips in a flexion posture, the same How to do Pranayama ily and normally. as position 5. This simple neurorespiratory ex- Tips for Exercise • Equestrian position: As you ercise, called Pranayama, creates Exercise daily for 30 minutes in- inhale, bring your right leg for- balance throughout your body. cluding yoga. Have your exercise ward, between your hands, the It’s ideal to do Pranayama after protocol by your Doctor after the same as position 4. Let your left the neuromuscular integration age of forty especially if you have leg extend backward, with the exercise and before meditation. coronary artery disease or had knee touching the ground. Your • Sit easily and comfortable with heart disease or attack , asthma, right knee will be bent and your your spine as straight as possible. hypertension etc. Avoid extremes right foot flat on the floor. • Close your eyes and rest your of weather for exercise and vigor- • Hand to foot position: Repeat left hand on your knees or thighs. ous exercise. Best time for exer- position 3. As you exhale, bend For this exercise you will be using cise is Kapha period that is 6 am

Kaleidoscope June, 2016 29 ARTICLE to 10 am or 6 pm to 10 pm. Avoid or 60 or exercising in extremes of if you are not going to walk. This vigorous exercise. weather either too hot or too cold followed by exercise phase of 20 Daily exercise is a very important or too humid or without aware- to 30 minutes of aerobic exercise integral component of our ideal ness of our effort tolerance. One of your choice. This followed by lifestyle. Exercising daily for thir- should perform the exercises cool-down phase of five to ten ty minutes help in maintaining which he or she is used to and minutes. Cool-down phase is at optimum integration of various should be aware of worming least as important as warm up components of health including up and conditioning effects of phase. During aerobic exercise, body, mind, soul, spirit and envi- exercise. your blood vessels begin to dilate ronment. Those who exercise they in order to supply more blood live long. Exercise has a tremen- Exercise is beneficial in to your muscles. The cool down dous impact on our personality, natural environment phase allows time for your blood potentials, achievements, success Exercise session contains three vessels and your heart to resume and happiness. Unfortunately phases: warm up phase, exercise their normal state. most of us exercise after we have phase and cool down phase. The bypass surgery or after having warm up phase is for five to ten Hazards of not exercising any such major ailments. minutes. This helps to make tran- There is a nice ancient saying sition from anaerobic to aerobic “Use it or lose it”. This holds Classification of Exercise metabolism. During this time you true for our physical body and The exercises can be classified gradually increase your heart as well as our mental capacities. as (1) Heart friendly or health rate and blood pressure and body Exercise has direct impact on friendly or aerobic exercises (2) temperature to help to avoid our physical or mental health. Heart unfriendly or health un- injuries and muscles soreness. It was well documented in one friendly or anaerobic exercises Start your warm up with gentle of the study of London that (3) Unaccustomed. The heart stretching of muscle you plan to heart attacks are more amongst friendly exercises are walking, use. For example the leg muscles bus drivers as compared to bus wagging, jogging, swimming, dancing, cycling, skiing, rowing, walking on treadmill etc are good for heart and require oxy- A healthy mind and Healthy Heart resides gen. The aerobic system is more only in a healthy body efficient, it increases oxygen–rich blood to your muscles and the heart unfriendly or anaerobic exercises are weight lifting, isomet- ric contractions such as pushups etc., which build the muscles and does not require oxygen and are not friendly for healthy heart. The anaerobic system is designed for short, quick, intense bursts of energy, the kind you use such as sprinting or dashing for a train. An aerobic exercise generate large amount of waste product such as lactic acid, which causes muscle cramps, soreness and pain. Unaccustomed exercise are such as pushing a car or changing wheel of a car or starting jogging for the first time at the age of 50

30 KaleidOscope June, 2016 ARTICLE conductors, postmasters as com- Resistance and Endothelial dys- unaccustomed to physical activ- pared to postman. The incident function etc. When healthy men ity. Moderate exercise, like walk- of heart attack is reduced by 50% were assigned to bed rest for few ing helps protect against the risk by those who exercise regularly weeks as an experiment, it was of sudden cardiac death or risk of and mortality reduced by 30% noticed that they suffered rapid injury. Over exercising create lots were engaged in regular moder- deterioration of their cardio vas- of health hazard. Unaccustomed ate exercise program. Sedentary cular and respiratory functions. exercise such as starting jogging habits and lack of exercise give protocol for the first time after the arise to a new emerging syn- Hazards of unaccustomed age thirty, pushing a car, partici- drome throughout the world exercise pating in vigorous exercise pro- called as – Metabolic syndrome, Unaccustomed Exercise or gram, changing wheels of a car, Cardiac Metabolic syndrome Excessive physical training is exercising in extremes of weather (syndrome X), Insulin Resistance Hazardous as it gives rise to are hazardous. Syndrome, Reaven’s syndrome, higher incidence of arthritis, hy- The recommendation is one Deadly Quartet Syndrome, pertension, heart attacks and should exercise in a moderate Civilization Syndrome, New sudden cardiac death. In USA manner right from the childhood, World Syndrome, CHAOS professional athletes don’t live as boy or girl, man or woman, young Syndrome as per ATP III and long as an average American. The or old, everyone should exercise WHO, this syndrome has high life expectancy on an average in according to the need and recom- mobility and mortality due to football player is somewhere in mendations and not in a unaccus- faulty lifestyle specially lack of late fifties as compared to- aver tomed manner. Optimum exer- exercise and faulty eating habits. age American which in the late cise may help you to be healthier, This syndrome is characterized seventies. Sudden deaths are well happier and more dynamic in life. by Pot Belly where abdominal documented while doing strenu- girth is more than 40“ in men and ous exercise or unaccustomed Exercise and special more than 36” in women, levels exercise. Dr. Paul Thompson re- situations of triglycerides are more than ported that one death per year • Smoking after exercise or exer- 150 mg , HDL less than 50 mg, occurred in every 7,620 joggers. cise after smoking both are harm- in women and less than 40 mg in Death rate during jogging was ful. Smoking reduces blood’s men Glucose intolerance and hy- estimated seven times more than oxygen carrying capacity and pertension. It may also be associ- during sedentary activities. The narrows coronary arteries, which ated with increased levels of uric risk of sudden death was par- supply blood to the heart. Thus acid, polycystic ovaries, Insulin ticularly high for men who were may lead to angina (chest pain) or may precipitate heart attack. • Alcohol after exercise or -exer cise after alcohol consumption are hazardous. It may precipitate heart arrhythmias or accelerate hypertension. • Extremely hot weather greatly reduces your exercise tolerance and may produce heat cramps, dehydration and heat stroke. This is to when it is humid because hu- midity makes your body difficult to cool itself as sweating, evapo- rates less readily. It is therefore recommended to exercise for a very short duration with less intensity and allow your body more

Kaleidoscope June, 2016 31 ARTICLE time to warm and cool down and – Exercise when the drug levels or cervical disc prolapse then drink more fluids preferably wa- are constant and at their peak lev- don’t indulge in vigorous neck ter before during and after ex- els to avoid undue strain over the movement exercise or strenu- ercise to ensure efficient body’s heart. ous flexion and extention excer- cooling system. • Exercise and diabetes – cises of neck. It may aggravate • In cold weather the arteries Physical activity has insulin like giddiness. (blood channels) narrows thereby effect on the body. Therefore one • Yoga postures cannot be increase workload on the heart, should be aware of hypoglycer- practiced by every individual. it may precipitate angina (heart mic symptoms (low blood sugar) Therefore, skilled yoga teacher pain), heart attack or accelerate during exercise and immediately from a yoga academy should hypertension. Cold weather may afterwards. These hypoglycermic be utilized for health friendly also cause frostbite or hypother- symptoms may be dizziness, hun- yoga postures on individual ba- mia. You must wear a hat and ger and weakness. Therefore it is sis. Indiscriminate use of yoga gloves to protect yourself. recommended that you should posture may be hazardous. One • Avoid exercising when you are monitor your blood sugar before should use thin pillows. If you ill especially when you have fe- and after activity and modify have lumbarspondolysis or lum- ver. Exercise may exacerbate the your insulin dose accordingly. bar discprolapse then do not illness. Avoid exercising at times of peak indulge in jogging or forward • Higher you go, less oxygen is insulin response. or backward or sideward spine available to breath. It is therefore movement exercises. Do not trav- • Exercise and hypertension recommended to decrease both el in any vehicle which produces – Although exercise raise your intensity and duration of exercise jerky moment and strain in the at high altitude. blood pressure while you exer- spine. cise, however regular exercise • Heavy meal diverts blood to- • If you have significant osteo- lower your blood pressure rest of ward the stomach for digestion arthritis of the knee joint then a time. Regular exercise helps pre- of the food. If you exercise after cycling is a good exercise for vent high blood pressure. Blood heavy meal it may precipitate an- you and avoid strenuous knee gina, not to exercise after meals. pressure medications sometimes exercises. alter individual’s blood pressure • Don’t over exercise upto the response to exercise. level of fatigue. It may adversely The Yoga asanas are excellent strain your heart. • If you have osteoarthritis, avoid form of stretching exercises, which tones up the muscles. The • If you experience dizziness, any exercise that produces exces- bending and stretching provides giddiness, blackout, unexplained sive stress on your affected joints. a kind of internal massage, which inappropriate heavy sweating, However exercise is important to improves the functioning of vital unusual shortness of breath or increase and maintain flexibility, choking, feeling of palpitation range of motion and strength in a organs and also produce the feel- or “Missed Beats”, chest pain or joint. ing of tranquility of mind. Besides Yoga asanas, regular meditation, pain in the arms, jaw or back dur- • Individuals who have periph- dietary optimization with more ing exercise then take rest and eral vascular disease must have fruits vegetables, nuts, milk and consult your doctor. daily activities because they de- milk products, regular massage • Exercise after heart attack, velop leg pains (claudication) with optimize oil are excellent for PTCA, CABG, Pacemaker im- during exercise. Regular aerobic plantation, AICD implantation. A exercise will often help to in- health and longevity. cardiologist should recommend crease the time they can exercise Live longer and live younger exercise protocol. Similarly exer- before getting claudication. You with regular yogic practices and cise after orthopedic injury or pa- may do aerobic exercise for 20 – create productivity, development ralysis should be recommended 30 minutes such as cycling, swim- and world peace. by the specialist concern. ming or walking at a slow pace. “Path of Yoga is Path to Health, • Exercise and medication • If you have cervical spondolysis Moksha and Nirvana”.

32 KaleidOscope June, 2016 ARTICLE Safety by Heart

B. B. Chakravorty Sr. Consultant, HSE Former Exe. Director, IOC urely, organizations are realizing that sustainable Ssafety excellence can only be achieved by establishing strong safety culture, which is not possible without whole-hearted participation of its employees and contract workers. In that direction, organisations launched “Behaviour Based Safety” (BBS) program to correct at- risk behaviours like – procedural mistakes, non- compliance to rules, regulations & violations. World wide experience of BBS program has not been consistent as it failed Figure : 1 to bring long term changes in attitude to & perception of safety of the workforce. Incidents still focus on RISK, be it process or when organizations & leaders fluctuated over time. Behaviour work. We are busy in managing put first: people, learning, rela- change without change of heart hazards, statistics, behaviours, tionship, respect, living & care. & mind, is unsustainable. Various failures & many other things, in On the part of its employees and other words managing SAFETY studies show that consistent safe workers – they need to increase all the time. Whereas, SAFETY behaviour is linked to self-moti- safety knowledge, safety percep- as a CULTURE, should influ- vation and commitment to safety. tion & awareness, which would ence us to do the things in cer- Self motivation & commitment increase involvement in safe tain ways, in other words, safety to safety are matters of cognitive behaviuors. shall be a FEELING, BELIEF & psychology, greatly influenced VALUE which would guide orga- by heart & mind of individual. Know your “HEART & nizations & its people to develop MIND” Recently, western organizations positive safety attitude, intrinsic A few questions that bother all of have started people centric pro- safety motivation & commitment. us: grams meant to inspire self mo- When I say I believe and value tivation and commitment to safe safety, then my heart feels “love” • Why people work danger- behaviours. – a positive emotion, for safety. ously and do not learn from past Safety has “heart.” All people in experiences? What is safety by heart? the organization actually should • Why some people are habitu- To date, all our safety manage- “love” safety. That is “safety by ally non-co-operative, non-partic- ment systems, rules & regulations heart”. This can only happen ipative, non-communicative?

Kaleidoscope June, 2016 33 ARTICLE

awareness & experiences. If the working memory lack these programs, then heart would not support safe behaviours. Fortunately programs can be easily replaced by changing thoughts, perceptions and practices. Educating heart & mind Our unconscious mind which resides “deep within” is the place where our instinct & intuition emanate from. It is said, very little that comes naturally from heart can be wrong or mislead- Figure : 2 ing. Basic intuitions can, in some situations, help us know the good from bad, or right from wrong, • What is more crucial for work subconscious & unconscious, see but not in all situations, particu- place – the workers or their the Fig - 2 below. larly those unique ones, found in industries. Safety risks of various behaviours? Conscious mind occupies 10% of nature are unique situations in in- • Regardless of training, some brain activities hence gets over dustries. These need to be known workers are safer than others burdened with thoughts. So we & understood. So the importance – why? cannot carry out many activi- of safety management programs. • Why in many people, intelli- ties at a time. Whereas, subcon- Organisations conduct regularly gence and passion for safe work scious mind and unconscious safety programs for their employ- do not co-exist? mind put together, called heart, ees & contract workers. Yet safety occupies 90% of brain activity. It • Why leaders & managers are awareness & safety perception means heart plays greater role not that serious to know heart & levels are not adequate. Reason in our day to day thoughts, feel- mind of their reports? is lack of intrinsic motivation to ings & reasoned behaviours. learn safety from the programs as Answer can be found in an age Subconscious mind has ability well as work experiences. Intrinsic old saying - “ many men many to filter out useless & unreal in- motivation to learn comes from minds.” Humans are same yet so puts from mind and allow us to self- thinking, self- experience different. To understand that, we carry out the desired & necessary and desire, feelings, drive, pas- shall look into the elements, we activities. Conscious mind is sup- sion for safety. Educating heart are made of, see Fig -1 below. posed to be always in the state is always by educating people to of awareness of what is going on be able to gather, store, access, It appears that heart & mind play in the environment surround- process experiences & respond to a bigger role to deal with life situ- ing us. It communicates through knowledge. Managers & leaders ations & activities. So, a person five sense organs. Whatever we have great responsibility educat- would perform better, if he pos- sense externally, it shows up in- ing people develop & enhance ses strong psychological power stantly in our conscious mind. these abilities. Statistically, only & ability, particularly cognitive Whereas, subconscious mind has about 30% – 40% workforce take psychology. What we think, at- a short- term memory ( called interest in self- learning & self tend, perceive, learn, remember, working memory) of all knowl- determined motivation to safety. believe, feel - called psychological edge gathered from external or Some activities & work culture in factors which lead to our attitude, internal inputs. It works on cur- the organizations, can influence emotions, behaviors. rent knowledge based programs develop intrinsic motivation to Human mind works at three lev- needed for day to day works, safety, develop right perception els of consciousness - conscious, such as, thoughts, perceptions, to distinguish between safe and

34 KaleidOKaleidOscope June, 2016 ARTICLE unsafe behaviours. These are as leaders are not perfect role mod- • Perception of safe work activi- follows: els for the followers ( workforce). ties & work situations • Touch and read people’s heart • Top / Senior management com- • Awareness & knowledge of & mind mitment to safety is not adequate- safe work practices, procedures • Be sensitive in handling emo- ly visible at site. & related information tions & attitudes • Many a times, violations of in- • Ability to reflect, recall infor- • Respect people’s experiences, structions, rules & procedures are mation / knowledge for decision tolerated & shown blind eyes by skill, knowledge, their aspirations making & problem solving managers & supervisors. & encourage their inquisitiveness. • Thinking & reasoning • High work & time pressure • Establish open communica- cause stress, de-motivation & Change is a top down approach. tion systems & information/ ex- encourage by-passing of safety It has to start with “change perience sharing throughout the rules & regulations. thoughts” in conscious mind. organization. • Work culture is more aligned to This requires mind to focus on • Involve & inspire people in production than safety. perceived changes. Then changes problem solving & decision get reprogrammed in subcon- • Safety management system im- making scious mind which transforms plementation is half- hearted. • Connect safety beliefs & values these into changed knowledge with performance goals • Work area & facilities often not for use. conducive to safe work. • Demonstrate at all levels of management, commitment to • Safety beliefs & values remain Conclusion safety as core value – “seen as mostly hidden by unchallenged If we look at organizational cul- & inappropriate work prac- desirable.” ture map, we find safety culture tices supported by managers / is still on the periphery. Reason, • Make work environment con- supervisors. people are yet not central to safe- ducive to innovation, sharpen • Only a chosen few are encour- ty management activities. This is skills, prove ability, honesty & aged for interesting & challeng- so because management does not participation. ing activities & no efforts are spend enough time & have ade- • Encourage people move from “ made to develop others. quate resources to understand the have- to- follow” to “want – to – psyche of the people about safety. • Managers/ supervisors do not learn” culture. Managers and supervisors believe devote time to converse & share that safety instructions, massages • Build trust, respect & relation- experiences with their reports on through safety displays, posters ship beyond work place. safety related issues & incidents. would motivate their reports to • Show people on the ground participate in work safety. This that management at all levels Controlling and directing has not been very successful. is committed for their health & heart & mind Many a times we find the work- safety. If people want change their safety force unmindful, careless & for- belief, value, feelings, attitude & getful, at work place. They take Barriers to intrinsic safety behaviours to build a strong safe- risk, take wrong decisions. Root motivation ty culture, then they need to con- causes are that - their thoughts & There exist many real and some trol and direct their heart & mind actions are not from their ratio- perceived barriers due to which accordingly. All mental events nal mind & knowledgeable heart. intrinsic safety motivation is not are the responses of our heart to Safety rules & regulations, safety up to the mark in most organiza- an external or internal inputs operating procedures are not tions. Some of these barriers can and all behaviours are driven by perceived as value and does not be identified as below. the mental events. So controlling evoke any feelings as knowledge mental events is the key. Next in their hearts. This paper tries to • Lack of competent managers & we have to know the things that outline the concept of safety by supervisors leading health safety control mental events. These are heart and some measures to be matters at work place all things that people can do & adopted by the organizations to • Most of the front line safety achieve with their heart & mind. make it happen.

Kaleidoscope June, 2016 35 ARTICLE

Performance Management System and its Implementation at THDC India Limited

A company can have a world-class system in place - S. K. Biswas but it’s only as effective as the managers who implement it Director (Personnel) THDC India Ltd.

n the era of globalization approach to delivering successful importance from the times when and fierce competition orga- results in organizations by im- the competitive pressures in the Inizations around the world proving the performance and de- market place started rising and are facing challenges in the new veloping the capabilities of teams the organizations felt the need century of complex governance and individuals. of introducing a comprehensive from both internal and external The term performance manage- performance management pro- environments. Performance is the ment gained its popularity in cess into their system for improv- true litmus test for survival in the early 1980’s when total quality ing the overall productivity and marketplace. The role of HR in management programs received performance effectiveness. the present scenario has under- utmost importance for achieve- The performance management gone a sea change and its focus ment of superior standards and process evolved in several phases. is on evolving such functional quality performance. Tools such 1. First Phase: The origin of per- strategies which enable success- as job design, leadership develop- formance management can be ful implementation of the major ment, training and reward system traced in the early 1960’s when the corporate strategies. received an equal impetus along performance appraisal systems Today, HR works towards fa- with the traditional performance were in practice. During this peri- cilitating and improving the appraisal process in the new com- od, Annual Confidential Reports performance of the employees prehensive and a much wider (ACR’s) which was also known as by building a conducive work framework. The term gained its Employee service Records were environment and providing maximum opportunities to the employees for participating in organizational planning and decision making process. The major activities of HR are driven towards development of high performance leaders and fostering employee motivation. So, it can be interpreted that the role of HR has evolved from merely an appraiser to a facilitator and an enabler. Performance Management is both a strategic and an integrated

36 KaleidOscope June, 2016 ARTICLE maintained for controlling the oriented instead of being devel- behaviors of the employees and Performance opment oriented. these reports provided substan- management systems, 4. Fourth Phase: This phase start- tial information on the perfor- which typically ed in mid 1970’s and its origin was mance of the employees. in India as great business tycoons include performance Any negative comment or a re- like Larsen & Toubro, followed mark in the ACR used to adverse- appraisal and employee by State Bank of India and many ly affect the prospects of career development is others introduced appreciable re- growth of an employee. The reforms in this field. the pillar of human marks of these reports were nev- In this phase, the appraisal pro- er communicated to the employ- resources management. cess was more development driv- ees and strict confidentiality was Performance en, target based (performance maintained in the entire process. based), participative and open management is a highly The employees used to remain in instead of being treated as a con- absolute darkness due to the ab- personal and often fidential process. The system fo- sence of a transparent mechanism threatening process cused on performance planning, of feedback and communication. review and development of an for both managers and 2. Second Phase: This phase con- employee by following a method- tinued from late 1960’s till early employees. Managers ical approach. 1970’s, and the key hallmark of are reluctant to provide In the entire process, the apprai- this phase was that whatever ad- see (employee) and the reporting candid feedback and verse remarks were incorporated officer mutually decided upon the in the performance reports were have honest discussions key result areas in the beginning communicated to the employees with employees for fear of a year and reviewed it after ev- so that they could take correc- ery six months. In the review pe- tive actions for overcoming such of reprisal or damaging riod various issues such as factors deficiencies. In this process of relationships with the affecting the performance, train- appraising the performance, the very individuals they ing needs of an employee, newer reviewing officer used to enjoy targets and also the ratings were a discretionary power of over- count on to get work discussed with the appraisee in a ruling the ratings given by the done. Employees feel collaborative environment. reporting officer. The employees that their managers are This phase was a welcoming usually used to get a formal writ- change in the area of perfor- ten communication on their iden- unskilled at discussing mance management and many tified areas of improvements. their performance and organizations introduced a new 3. Third Phase: In this phase the ineffective at coaching HR department for taking care of term ACR was replaced by per- the developmental issues of the formance appraisal. One of the them on how to organization. key changes that were introduced develop their skills. 5. Fifth Phase: This phase was in this stage was that the employ- characterized by maturity in ap- ees were permitted to describe which could measure the produc- proach of handling people’s is- their accomplishments in the tivity and performance of an em- sues. It was more performance confidential performance reports. ployee in quantifiable terms such driven and emphasis was on The employees were allowed to as targets achieved, etc. Certain development, planning and im- describe their accomplishments organizations also introduced a provement. Utmost importance in the self appraisal forms in the new section on training needs in was given to culture building, end of a year. Besides inclusion of the appraisal form. However, the team appraisals and quality cir- the traits in the rating scale, sev- confidentiality element was still cles were established for assess- eral new components were con- being maintained and the entire ing the improvement in the over- sidered by many organizations process continued to be control all employee productivity.

Kaleidoscope June, 2016 37 ARTICLE

The performance management effectiveness. It is a continuous High-performing employees con- system is still evolving and in the process where managers and em- tribute superior performance, near future one may expect a far ployees work together to plan, giving the companies they work more objective and a transparent monitor and review an employ- for a competitive advantage -- system. ee’s work objectives or goals and and their extra effort differenti- Performance management sys- his or her overall contribution to ates great organizations from tems, which typically include per- the organization. merely good ones. formance appraisal and employee Performance management is a 1. Performance Planning: development is the pillar of hu- much broader and a complicated Performance planning is the first man resources management. per- function of HR, as it encompasses crucial component of any performance management is a high- activities such as joint goal set- formance management process ly personal and often threatening ting, continuous progress review which forms the basis of perfor- process for both managers and and frequent communication, mance appraisals. Performance employees. Managers are reluc- feedback and coaching for im- planning is jointly done by the tant to provide candid feedback proved performance, implemen- appraisee and also the reviewee and have honest discussions with tation of employee development in the beginning of a performance employees for fear of reprisal or programmes and rewarding session. During this period, the damaging relationships with the achievements. employees decide upon the tar- very individuals they count on Performance management can gets and the key performance ar- to get work done. Employees feel be regarded as a systematic pro- eas which can be performed over that their managers are unskilled cess by which the overall perfor- a year within the performance at discussing their performance mance of an organization can be budget., which is finalized af- and ineffective at coaching them improved by improving the per- ter a mutual agreement between on how to develop their skills. formance of individuals within the reporting officer and the Many complain that performance a team framework. It is a means employee. management systems are cum- for promoting superior perfor- 2. Performance Appraisal and bersome, bureaucratic and too mance by communicating ex- Reviewing: The appraisals are time consuming for the value pectations, defining roles within normally performed twice in a added. The fundamental goal of a required competence frame- year in an organization in the performance management is to work and establishing achievable form of mid reviews and annual promote and improve employee benchmarks. reviews which is held in the end Any effective performance management system includes of the financial year. In this pro- the following components: cess, the appraisee first offers the self filled up ratings in the self appraisal form and also describes his/her achievements over a period of time in quantifiable terms. After the self appraisal, the final ratings are provided by the appraiser for the quantifiable and measurable achievements of the employee being appraised. The entire process of review seeks an active participation of both the employee and the appraiser for analyzing the causes of loopholes in the performance and how it can be overcome. This has been discussed in the performance feedback section.

38 KaleidOscope June, 2016 ARTICLE

3. Feedback on the Performance in which the employee is expect- recognizing those employees who followed by personal counsel- ed to improve and a stipulated excel in their jobs by achieving ing and performance facilita- deadline is also assigned within the set standards in accordance tion: Feedback and counseling is which the employee must show with the performance plans or given a lot of importance in the this improvement. This plan is rather exceed the performance performance management pro- jointly developed by the apprai- benchmarks. cess. This is the stage in which see and the appraiser and is mu- • Providing promotional/career the employee acquires awareness tually approved. development support and guid- from the appraiser about the ar- 6. Potential Appraisal: Potential ance to the employees. eas of improvements and also appraisal forms a basis for both information on whether the em- lateral and vertical movement • Performing exit interviews for ployee is contributing the expect- of employees. By implementing understanding the cause of em- ed levels of performance or not. competency mapping and vari- ployee discontentment and there- The employee receives an open ous assessment techniques, po- after exit from an organization. and a very transparent feedback tential appraisal is performed. and along with this the training Potential appraisal provides cru- A performance management and development needs of the cial inputs for succession plan- process sets the platform for re- employee is also identified. The ning and job rotation. warding excellence by aligning appraiser adopts all the possible A performance management individual employee accomplish- steps to ensure that the employ- system includes the following ments with the organization’s ee meets the expected outcomes actions. mission and objectives and mak- for an organization through ef- • Developing clear job descrip- ing the employee and the orga- fective personal counseling and tions and employee performance nization understand the impor- guidance, mentoring and repre- plans which includes the key tance of a specific job in realizing senting the employee in training result areas (KRA) and perfor- outcomes. programmes which develop the mance indicators. competencies and improve the The contemporary organizations overall productivity. • Selection of right set of people are undergoing a transformation by implementing an appropriate for coping against the changing 4. Rewarding good performance: selection process. needs of the environment and ex- This is a very vital component as • Negotiating requirements and it will determine the work moti- celling in the business by build- performance standards for mea- vation of an employee. During ing up their adaptive capabilities suring the outcome and overall this stage, an employee is pub- for managing change proactively. productivity against the pre- The traditional performance ap- licly recognized for good per- defined benchmarks. formance and is rewarded. This praisal system did not suffice stage is very sensitive for an em- • Providing continuous coaching the needs of the changing sce- ployee as this may have a direct and feedback during the period nario as it was mainly used as a of delivery of performance. influence on the self esteem and tool for employee evaluation in achievement orientation. Any • Identifying the training and de- which the managers were im- contributions duly recognized velopment needs by measuring pelled to make subjective judg- by an organization helps an em- the outcomes achieved against ments about the performance ployee in coping up with the fail- the set standards and implement- and behavior of the employees ures successfully and satisfies the ing effective development pro- against the predetermined job need for affection. grams for improvement. standards. Performance appraisals were mostly carried out annu- 5. Performance Improvement • Holding quarterly perfor- ally for measuring the degree of Plans: In this stage, fresh set of mance development discussions goals are established for an em- and evaluating employee per- accomplishment of an individual ployee and new deadline is pro- formance on the basis of perfor- and were implemented on a top vided for accomplishing those mance plans. down basis. objectives. The employee is clear- • Designing effective compen- Performance appraisals were ly communicated about the areas sation and reward systems for mostly narrowly focused and

Kaleidoscope June, 2016 39 ARTICLE functioned in isolation without with the business objectives of task, special skills and innovation bearing any linkage with the the Organization. Department of required. overall organizational vision or Public Enterprises while approv- Mid Year Review: Mid Year re- goals. The side effects of the per- ing the pay scales of Executives view is an important process in formance appraisal system was effective from 01.01.2007 intro- which the appraise can revisit the it generated skepticism amongst duced the concept of Performance KRAs and goals in the light of the managers and the employees Related pay based on physical reasons which may be beyond the on any new initiative of the HR. and financial performance and control of the appraise. The re- In the present scenario, the orga- directed all PSUs to develop a ro- view helps the Reporting Officer nizations have shifted their focus bust and transparent Performance to review the progress of the from performance appraisals to Management System. agreed targets and provide early performance management as a warnings of non-performance to result of internationalization of The PMS process at THDCIL the Appraisee improvement. starts with Performance human resources and globaliza- Annual Appraisal: The objective Planning tion of business. The functions of annual appraisal is to discuss Performance Planning: This is of HRM have become far more and arrive at real performance one of the most important aspects complicated as today the major with respect to agreed targets. It of the Performance Management focus of strategic HRM practices is necessary that due discussions is on the management of talent by System. The Reporting Officer take place between Appraisee implementing such development has to convene a meeting of the and reporting officer before programmes which enhance the Executives working under them Annual Assessment. It is neces- competencies of the employees. and discuss the expectations i.e. sary that Reporting Officer -per The performance management the work to be done and the spe- forms his role so that reviewing approach focuses more on ob- cific targets to be achieved- dur officer and Accepting Authority served behaviors and concrete ing financial year taking into ac- do not face any problem in objec- results based on the previously count the MOU targets as well tive assessment. established smart objectives. as departmental targets. While drawing the KRAs it should be Appraisal of additional task/ Self-assigned task: Under this PMS at THDCIL ensured that the targets are spe- column, special achievements of The new Performance cific, measurable agreed upon the Executives during the year Management System was intro- and time bound. The targets are are required to be recorded. duced in THDCIL during the set at equally challenging levels Achievements like handling of year 2006-2008 which started across departments. The task has emergency situations, process with setting of targets/key re- to be differentiated based on their improvements, contributing ar- sult areas(KRA) in consonance significance, complexity of the ticles, representing the corporation in competitions like Quiz, Performance Appraisal Performance Management acquiring special competencies Focus is on top down Stresses on mutual objective setting etc. should only form a part of assessment through a process of joint dialogue this special achievements section. Reporting Officer can also Performed annually Continuous reviews are performed assign specific task during the pe- Usage of ratings is very Usage of ratings is less common riod under review and successful common completion of the task canm also form part of this section. Focus is on traits Focus is on quantifiable objectives, values and behaviors Competencies and Monolithic system Flexible system Core Values This section deals with assess- Are very much linked Is not directly linked with pay with pay ment of functional/ technical or managerial competencies. There

40 KaleidOscope June, 2016 ARTICLE is Competency Assessment All departments provide service The Performance Appraisal report Rating scale on which the assess- to other departments thus de- also has a section of Individual ment is to be made. partments receiving their service Training and Development needs For the executives at the level are their customers.Departments/ where appraise mentions the of E5 to E7 the concept of KRAs groups are required to carry out type of training and exposure re- based on Balanced Score Card a survey on various service pa- quired to enhance job knowledge has been introduced. The execu- rameters with their customer de- and managerial skills. tives are required to plan their partment to arrive at their current performance keeping in view satisfaction level. Normalization the spirit of MOU targets. There The survey is carried out twice a With the adoption of Pay Revision are certain functions which have year i.e. six monthly and annually 2007 in THDCIL as per the direc- KRAs directly linked to MOU before evaluation. The feedback tion of DPE all the executives of and their targets shall be based on shall be required from the “same the Corporation are to be graded under Bell Curve Approach so MOU targets. The targets are re- peer group”/ customers during that not more than 10% to 15% quired to be measurable in terms both the surveys. The concerned of the executives are graded as” of measurable quantity, measur- executives will develop a suitable Outstanding/Excellent” and 10% able time or measurable level of feed back format for the purpose of the Executives should be grad- service quality. The executives of survey in consultation with the ed as Below par for the purpose whose KRAs are not directly HOD. linked with the MOU Targets they of distribution of PRP. These 10% For Liaison Deptt. the feedback have to frame up Departmental executives will not be entitled for will be based from HOD/Internal Targets in consultation with their getting any PRP. Customers. Reporting officer. After the Final marks is given For HR, F&A Deptt. the feedback While setting targets by the ex- by the respected Accepting will be based on survey from all ecutives 4( four) quadrants viz. Authority and after the PMR dis- the cross section of the employees. Financial perspective, Customer closure process at each grade and perspective, Process improve- PMR Appeal process is over the ment perspective and Employee III Targets based on Normalization process starts. The Learning Perspective are to be Process Improvement Accepting Authorities at different considered to bring a balanced Perspective levels are as under: approach in the working. This pertains to the targets to be E2 to E5 Concerned General worked out by the appraisee in Manager of Higher Authority consultation with the reporting I. Targets based on E6 to E7 Concerned Directors or Financial Perspective officer for bringing about certain improvements in the work being CVO The Targets on Financial carried out by them. E8 to E9 CMD Perspective have two dimensions i.e. increase in revenue and iv Targets based on Employee Normalization process starts with reduction in cost. While all de- learning and growth perspective: the formation of Normalization partments do not directly deal This perspective has two parts Centres (NC) for different with increase in revenue, reduc- i.e. i) pertaining to meeting the projects/units/departments. tion in operating cost in terms training requirement as per the Preferably NCs are formed of of their departmental operating company training policy and each grade of executives if suf- expenses is applicable to all the initiatives for creating a learning ficient population is available. departments. culture in the department and ii) Otherwise more than one execu- completion of annual appraisal of tives grades are clubbed in a par- II. Targets based on self and subordinates within the ticular NC. Subsequently, a three Customer Perspective stipulated time. The performance member committee comprising The customer perspective has descriptor against these targets of representatives of Director two dimensions i.e. internal cus- for 50%, 75% and 100% level of (Tech.), Director (Personnel) and tomers and external customers. performance is also to be defined. Director(Finance) is constituted.

Kaleidoscope June, 2016 41 ARTICLE

Minimum population for apply- Projects including design. which should be rated as Very ing Bell Curve in THDC has been • Working at Construction Good/Good/Poor are also not in considered at minimum 8. For Projects the specified percentage. less than 8 executives pertain- • Working at Liaison Offices After Normalization, it is ensured ing to more than one Accepting that the rated PMRs are as per the • Generally ranking/ switching is Authority in a particular grade guidelines and specified percent- made in the same discipline are clubbed. Since every human age criteria in this regard. A pic- being has unique tendency of • General perception of perfor- torial representation is presented assessment, it is likely observed mance of the Appraisee shall be below: conservative markings and lib- considered. In the interest of improving eral markings given by the fairness and transparency in Accepting Authorities. This is As per the Bell Curve Guidelines Performance Appraisal Process conspicuous in the case of E2 to not more than 10% to 15% of the copies of PMRs are given E5 level executives where num- the executives are graded as” to executives to make appeal bers of Accepting Authorities are Outstanding/Excellent” and 10% against the assessment made by too many and population is less of the Executives should be grad- the Accepting Authority through than 8 specifically. ed as Below par for the purpose the hierarchical channel. Normalization Committee takes of distribution of PRP. Generally, The Performance Management care of this aberration by group- a trend has been found PMRs are System in THDCIL is not only ing the Accepting Authorities in sent to Corporate Centre prior to meant for objective assessment such a manner that executives Normalization do not meet the of performance but for further with liberal markings come in par- specified percentage criteria set development and management ticular group(s) and executives as per Bell Curve and internal of talent through recognizing the with conservative markings come guidelines related to Bell Curve. performers and awarding them. in other group and apply Bell The percentage of Outstanding At the same time assist those Curve approach in the groups. which should not be more than who are lagging behind in perfor- Thus liberal markings and con- 10% is generally found to be on mance by continuous feedback servative markings are brought the higher side similarly, PMRs on a common platform. All the graded executives pertaining to Pre-Nomalization all projects/units/departments under different ratings are put together and sorted in descend- ing order. Total executives falling under different rating groups are compared according to the Bell Curve Norms of the Corporation. If any adjustment is required it is done to match the norm as far as possible. While doing so the fol- Post-Nomalization lowing guidelines are also kept in mind by the committee members: Everything being equal, criteria to be adopted in the process of normalization in the following order: • Working at Operating Stations • Working at Corporate Office who are extending effective as- sistance to Operating Stations/

42 KaleidOscope June, 2016 ARTICLE and helping them improving recognition. This has fostered their performance. Most organizations team work and aligned activities The PMS scores are also used in consider performance of employees with the organizational goal. There are aspects of developing executives for future assessment processes challenges and nominating them PMS which needs to be further to different training programmes as being an important strengthened and an additional focus is required with regard to as well. The PMS is used in align- employee intervention ing KRAs with the business strat- formal feedback, how to deal egies and identifying superior activity. Most of with Bell Curve when each indi- performers in the organization by them have at least vidual considers himself/herself defining clear career paths and as outstanding contributor. Some accountabilities. The rewards and one performance amount of attention to these as- recognitions are linked with the assessment cycle pects will allow the performance PMS. The new PMS has boosted management system to reach its the employee’s motivation and that is mandatory full potential as a tool to fully uti- performance. The job satisfaction for all employees. lize the potential of the existing has also improved due to the in- workforce, to retain current em- However, despite the troduction of a fair and transpar- ployees and to attract additional ent PMS and linking it with re- understood importance talent as necessary. ward system. of the process, in actual Most organizations consider per- References formance assessment processes as practice, performance • Arvey, R. D., & Murphy, K. R. (1998). Performance evaluation in being an important employee in- assessment or tervention activity. Most of them work settings. have at least one performance as- employee appraisal • Beatty, R. W., Baird, L. S., sessment cycle that is mandatory largely remains Schneier, E. C., & Shaw, D. G. (Eds.). for all employees. (1995). Performance, Measurement, an annual ritual in Management, and Appraisal However, despite the understood Sourcebook. importance of the process, in ac- most organizations tual practice, performance as- – file opened at the • Campbell, D. J., & Lee, C. (1988). sessment or employee appraisal Self-appraisal in performance largely remains an annual rit- beginning of every year evaluation: Development versus ual in most organizations – file and closed at the end of evaluation. opened at the beginning of every • Engelmann, C. H., & Roesch, R. every year. year and closed at the end of ev- C. (2001). Managing individual ery year—a process that has more performance: An approach to de- to do with annual increments and signing and effective performance management system. yearly promotions. and 59% opines it is serving the A questionnaire developed to purpose of capturing Training • Gilliland, S. W., & Langdon, J. C. measure certain parameters re- Need. The overall satisfaction (1998). Creating performance man- lated to PMS yielded the results with regard to PMS came out to agement systems that promote per- presented below: be 85% which is quite a healthy ceptions of fairness. The results that questionnaire indication. • Grote, D. (1996). The complete revealed that 61% of executive guide to performance appraisal. population is satisfied that PMS is Conclusion • Hillgren, J. S., & Cheatham, serving the purpose performance THDC India Limited has moved D. W. (2000). Understanding evaluation, 51% each population ahead of this annual ritual by performance measures: An ap- is of the opinion that PMS is serv- making PMS a weapon to em- proach to linking rewards to the ing the purpose of performance power employees and create an achievement of organizational planning, Internal feedback atmosphere of performance and objectives.

Kaleidoscope June, 2016 43 44 KaleidOscope June, 2016 DG, SCOPE addresses OECD Global Knowledge Sharing Conference on Corporate Governance of SOEs

Dr. U.D. Choubey, Director General, SCOPE addressed OECD Global Knowledge Sharing Network on Corporate Governance of State Owned Enterprises (SOEs) held in Mexico City on 7-8 June, 2016. The Conference was organized to support ongoing efforts to help governments identify priorities for SOE reform and implementation through the process of knowledge sharing.

r. U. D. Choubey addressed the first session Don ‘Recent reform efforts: An overview of the revised OECD Guidelines on the Corporate Governance of State-Owned Enterprises.’ Director General, SCOPE in his address presented the overall contributions of SOEs in key sectors of the economy as well as their contribution towards social development. He also ex- plained the Governance Structure of SOEs to the participants. Dr. Choubey apprised the participants about the strong vigilance procedure, internal & external Dr. U. D. Choubey, DG, SCOPE addressing OECD Conference in Mexico City. audit system, which promotes good Corporate Governance Dr. Choubey emphasized the various guidelines viz. Directive pracetices in SOEs of India. He need of an ownership policy on Corporate Governance from further said that SOEs are con- in SOEs in India. DG, SCOPE Ministry of Corporate Affairs, strained with complex heteroge- informed the members about Directive on Social Obligations neous accountability system and various reforms initiatives in by DPE and SEBI Regulations on there is need for convergence of SOEs on the lines of OECD Transparency Aspects, Comp- accountability system. guidelines. He also talked about anies Act etc.

Kaleidoscope June, 2016 45 46 KaleidOscope June, 2016 Conference Facilities at SCOPE Convention Centre

The centrally air-conditioned SCOPE Convention Centre at SCOPE Complex, Lodhi Road, New Delhi provides excellent conference facilities to PSEs, Govt. Departments, Autonomous Bodies, Institutions/NGOs etc. The Auditorium and other Conference Halls are equipped with projector and screen facilities, sound & light control room with recording & P.A. facility, etc. Details of the capacity of the Auditorium and other Halls, which are available on nominal tariff are given below.

Auditorium The chamber having capacity of 92 persons (86 Nos. Chairs + 6 Nos. Chairs on Dias) equipped with mikes on dias, tables & podium. Bhabha Chamber

The Auditorium having capacity of 310 persons (300 Chairs + 10 Nos. Chairs at stage) capacity equipped with mikes on dias and podium on stage. Mirza Ghalib Chamber

The chamber having capacity of 44 persons (24 Nos. Chairs on round table and 20 Nos. Chairs on sides) equipped with mikes on dias, tables & podium.

Fazal Chamber

The chamber having capacity of 108 persons (102 Nos. Chairs + 6 Nos. Chairs on Dias) equipped with mikes on table, dias and podium. Tagore Chamber

The chamber having capacity of 25 persons (15 Nos. Chairs on round table and 10 Nos. Chairs on sides) capacity with board room type sitting arrangement equipped with mikes.

Kaleidoscope June, 2016 47 Business Centre Annexe II

The Business Centre having capacity of 7 persons The Annexe-II having capacity of 25 Persons. equipped with multi point Video Conferencing System (1+3), at three locations at a time for National Tansen Chamber at UB & International both. Banquet Hall

The Tansen Chamber having capacity of 50 persons having stage and podium. The banquet hall having capacity of 500 Persons for the purpose of lunch & dinner. Sitting arrangement Amir Khusro Chamber at UB could be done for 90 persons. Annexe I

The Amir Khusro Chamber having capacity of 50 The Annexe-I having capacity of 25 Persons. persons having facility of stage and podium.

For Booking & Tariff details please contact Mr. A. Zaman, Manager (HR) Mobile: 9868502306 STANDING CONFERENCE OF PUBLIC ENTERPRISES 1st Floor, Core No. 8, SCOPE Complex, Lodhi Road, New Delhi - 110003 Phone: 011-24360101 & 24361747 • Fax: 011-24361371

48 KaleidOscope June, 2016 Conference Facilities at SCOPE Minar Convention Centre SCOPE Minar, an architecturally conceived in the form of two high rise curvilinear tower blocks sitting on a four storey circular Podium Block, is strategically located in Laxmi Nagar District Centre, Delhi -110092 and housing around 40 PSEs of repute. It is one of the known buildings of East Delhi. It has a very size Reception Foyer giving ambience look inside the building. There is a green environment all around the SCOPE Minar with large size planters all around. The building is also having state of art Convention Centre, comprising four halls i.e.

Convention Hall Meeting Hall

A large sized Convention hall having sitting capac- Meeting hall having “U” shaped table, with a meet- ity of 300 delegates. Various seminars, training pro- ing capacity of 65 delegates.Most widely used for grammes, presentations, get to gather etc. are con- small size meetings and training programmes, ducted in Convention Hall. It provides ambient and group discussion, power point presentations etc. peaceful environment for the programmes. Banquet Hall VIP Lounge

VIP Lounge having sitting capacity of 60 delegates. A new beautiful Banquet Hall with latest specifi- The executives and higher level officers, Directors, cation of engineering has been created in SCOPE CMDs can use it as waiting lounge also. Minar. It has attached huge kitchen and washrooms facility. Around 300 persons can dine in the banquet hall including sitting of 50 persons. There is a wide space for vehicle parking that cater for a capacity of 700 cars, including the newly built good quality Banquet Hall wherein 300 delegates can comfortably dine at a time, makes it special to deliver an all-round conducive meeting environment .

For Booking & Tariff details please contact Mr. M. L. Maurya, GM (Tech.) (M) 9313375238 and Mr. Shubh Ratna, DCE(C), SCOPE Minar (M) 9873398242, (O) 011-22458176, 22458178, • Email: [email protected]

Kaleidoscope June, 2016 49 50 KaleidOscope June, 2016 PSEs Celebrate 7th Public Sector Day

SCOPE & Public Sector Fraternity observed weeklong 7th Public Sector Day Celebrations from 10th April to 16th April, 2016. Various programs were conducted to celebrate the prestigious Public Sector Day with great enthusiasm throughout the nation and abroad.

PDIL celebrates Public Sector Day Public Sector Day celebrations at HPCL The 7th Public Sector Day was celebrated all over HPCL with enthusiasm. Employees participated in large numbers in events, viz. essay writing, debates, seminars and quiz competitions etc and putting their thinking caps on came up with highly creative thoughts about public sectors in the course of weeklong celebration recently.

Mr. S. Venkateswar, CMD, PDIL during the Public Sector Day celebrations.

Projects & Development India Ltd. (PDIL) celebrated Public Sector Day from 10th April to 16th April 2016 at its all offices located at Noida, Sindri and Vadodara. Mr. S. Venkateswar, CMD, PDIL inaugurated the function by lighting the lamp in presence of other senior officials, and addressed the employ- Public Sector Day celebrations at HPCL. ees present at PDIL, Noida. On this occasion various competitions like Essay, Ex- Tempo elocution & Quiz based on GK about PSUs were organised. HPCL has been one of the most shining examples Prizes were also distributed to the winners. amongst CPSEs for over 40 years and has signified PDIL is an ISO 9001:2008 Certified premier an ever-radiant source of energy, making a big dif- Consultancy and Engineering Organization which ference to millions of lives. Diversifying into oil has played pivotal role in the growth of Indian Exploration and Production, Power Generation, Fertilizer Industry. It has over six decades of experi- Renewable Energy ventures and much more, HPCL ence in providing Design, Engineering and related is confident of creating a Future full of Energy. project execution services from concept to commis- Salute to the dedication of employees of HPCL, and sioning of various Projects. of CPSEs at large.

Kaleidoscope June, 2016 51 52 KaleidOscope June, 2016 PSEs Register Impressive Performance during 2015-16

SAIL Q4 and Annual Result 50,627 crs. in FY 15 due to reduction in NSR. The loss after tax for Q4 FY 16 was Rs 1,230 crs. against FY’16 Profit After Tax of Rs. 334 crs. over CPLY due to reduction in net sales realization to the extent of 19 • SAIL clocks record sales of 3.79 MT in percent. The net loss for FY16 stood at Rs 4,137 crs. Q4, FY16 up 20% over CPLY as against net profit of Rs 2,093 crs. in FY 15 on account of reduction in NSR, higher interest and de- • Q4, FY16 EBIDTA improves by 26% preciation charges. over Q3, FY16 In Q4, FY16, the Company’s Value Added Steel reg- • Annual sales of 12.2 MT up 3.6% over istered an increase of 7 percent over Q3. Speaking CPLY on the occasion, Chairman, SAIL, Mr. P. K. Singh • Saleable Steel Output from new mills said, “The challenging conditions faced by domes- up 40% in Q4, FY16 vis-a-vis Q3, FY16 tic industry received some respite after introduction • Highest Ever Production of Crude of the conducive policy measures by Government in the form of Safeguard duty and MIP. We have wit- steel in a year nessed better figures in the last quarter of FY 16. We are targeting to complete the balance moderniza- tion and expansion with a focus on energy saving Steel Authority of India Limited (SAIL) witnessed methods, enriching our product mix and introduc- all round improvement in performance in Q4, ing customer centric processes to meet the expected FY16 clocking record sales of 3.79 Million Tonnes surge in demand of steel on account of govern- (MT), which is the highest ever in a quarter by the ment’s emphasis on infrastructure development.” Company and higher by 30 percent over Q3, FY16 and 20 percent higher over corresponding period of last year (CPLY). During the quarter ending Financial Results of RCF March 2016, the EBIDTA improved by 26 percent Declared over the quarter ending December, 2015 in spite of a lower NSR. The debt equity ratio of the Company During the FY 2015-16, Rashtriya Chemicals & improved to 0.85 on 31st March 2016 from 0.90 on Fertilizers Ltd. (RCF) achieved a turnover of Rs. 31st December 2015. The management initiatives 8649.43 cr. registering an increase of about 12 per- towards cost reduction and improved inventory cent over previous year turnover of Rs. 7713.45 cr. management also contributed to the improvement The Profit Before Tax (PBT) was Rs. 291.10 which is in financial parameters. Expenditure per tonne of 43 percent lower than the previous year PBT of Rs. saleable steel came down by around 10 percent dur- 509.63 cr. The Company has achieved Profit After ing Q4, FY16 as compared to Q3 on account of re- Tax (PAT) of Rs. 191.23 cr. as compared to previous duction in cost of production, higher volumes and year PAT of Rs. 322.06 cr., resulting in a decrease of other management initiatives. 41 percent. The Company achieved a lower fertilizer sales volume of 33.76 lakh MT during 2015-16 Company’s sales turnover in Q4, FY 16 was Rs 12,612 crs. as against Rs 9,928 crs. in Q3, FY 16 on ac- as compared to 37.38 lakh MT in the previous year count of higher volumes. In spite of 20 percent high- as the Company’s major markets were very severely er sales, SAIL’s gross turnover for Q4, FY16 was im- hit by drought because of poor monsoon. pacted by lower NSR and it stood at Rs 12,612 crs. as Besides lower sales, the Company’s margins dur- against Rs 12,886 Crs. in Q4, FY 15. The Company’s ing the year have also been adversely impacted sales turnover for FY 16, inspite of higher volumes, by the stringent energy norms specified by the was also lower at Rs 43,337 crs. compared to Rs Government with effect from 1st June 2015, higher

Kaleidoscope June, 2016 53 54 KaleidOscope June, 2016 gas price for non-urea operations, lower IPP of urea for production beyond Re-assessed Capacity, higher financial cost, abundant availability of cheap im- ported chemicals, etc. The Company is also carrying out a number of energy conservation projects which will improve the profitability in the coming years.

NCL posts record coal production, registers double digit growth Northern Coalfields Ltd (NCL) has posted a record coal production of 80.22 million tonnes (MT) in the Green coal handling plant (CHP) at Nigahi project of NCL financial year 2015-16, against the assigned target of 78.10 million tonnes. The company has not only year. The company has spent approx. 175 cr. of ru- crossed the assigned target for FY 15-16, but reg- pees on CSR activities during the period, which in- istered the double digit growth of 10.7 per cent in cludes a major work of construction and renovation comparison to the last year’s coal output. of more than six thousand toilets in the government schools in 12 districts of Madhya Pradesh, under The Company has also crossed its coal offtake tar- Government of India’s Swachh Bharat Mission. get of 78.10 million tonnes and has achieved 78.51 million tonnes in the just concluded financial year. The company, well known for its environmen- Similarly, Company’s over burden (OB) removal tar- tal conservation works, planted about four lakhs get for FY 15-16 was set at 260 Million cubic meters saplings during the last fiscal and thus the number against which the company has achieved a 61.26 per of trees planted by the company till date becomes cent growth rate with an output of 339.64 million more than 2.30 cr., which is highest amongst all sub- cubic meters. CMD Mr. Nag said that keeping in sidiaries of Coal India Limited. NCL also become view the stupendous performance of the company, the first subsidiary of Coal India Ltd (CIL) starting NCL’s coal production and off take targets for the coal transportation through Belt Pipe Conveyor new financial year 2016-17 have been set at 82 mil- System in the fiscal 15-16. This is a major step of lion tonnes each, which he hoped to achieve within the company to achieve environmental excellence time with the help of dedicated manpower and as 700 trucks transporting coal gone off-road by team work. The company’s performance in the field this state of the art technology, which is completely of corporate social responsibility (CSR) has also pollution free. been outstanding in the just concluded financial MRPL posts Profit Before Tax (PBT) of Rs. 1,174 cr. FY 2015-16 The Board of Directors of Mangalore Refinery and Petrochemicals Limited, recently approved its Unaudited Financial Results for the fourth quarter of FY 2015-16 along with the Audited Financial Results for the FY 2015-16. The Company achieved a throughput of 4.52 MMT for the Q4 FY 2015-16 as against 4.12 MMT in Q4 FY 2014-15. (i.e. 9.71 percent). MRPL posted for Q4 FY 2015-16 a net profit after tax adjustments of Rs. 1,353 Cr. (after considering Rs. 245 Cr. as Depreciation, A machine carrying coal at Jayant Project of NCL Rs. 146 Cr. as Interest Cost, Net Foreign Exchange

Kaleidoscope June, 2016 55 56 KaleidOscope June, 2016 loss of Rs. 14 Cr.). The profit for the correspond- East Kidwai Nagar Redevelopment; Rs. 2149 Cr. ing quarter of FY 2014-15 was Rs. 1,170 Cr. (after Integrated Exhibition-cum-Convention Centre for considering Rs.149 Cr. as Depreciation, Rs. 114 Cr. ITPO; AIIMS Redevelopment Works of Rs. 5828 Cr. as Interest Cost and Foreign Exchange gain of Rs. etc. He also informed that very soon NBCC would 169 Cr.). The Company has achieved a throughput be adding to its kitty, three more Works of redevel- of 15.69 MMT for the whole year (FY 2015-16) as opment of Govt. properties valuing approximately against 14.65 MMT during last year (FY 2014-15). Rs. 25000 Cr. and located at Netaji Nagar, Sarojini MRPL has achieved a turnover of Rs. 50,864 Cr. Nagar and Nauroji Nagar in Delhi. (Exports Rs. 12,616 Cr.) during FY 2015-16 as against Giving an account of the Company’s latest strategic Rs. 62,412 Cr. (Exports Rs. 22,790 Cr.) during the FY moves in business operations, Mr. Mittal spoke of 2014-15 (overall decrease by 19 percent and Export NBCC’s recent initiative towards acquiring HSCL, by 45 percent). The decrease in sales is mainly on a Central PSU under the Ministry of Steel. He said, account of decline in product prices which in turn “The excess land parcels now available with HSCL is linked to the declining crude prices and also on shall be conveniently monetized by the Company account of more domestic off take in case of export to pay off the former’s bank loan not covered by sales. MRPL has posted Profit After Tax of Rs. 1,148 the Government grant”. Mr. Mittal also informed Cr. (after considering Rs. 712 Cr. as Depreciation, that the company had recently gone for stock split Rs. 578 Cr. as Interest Cost, Net Foreign Exchange of each equity share of face value of Rs.10/- each loss of Rs. 1,190 Cr.). The loss after tax during last into 5 equity shares of face value of Rs.2 to make year was Rs. 1,712 Cr. (after considering Rs. 499 Company script more affordable for the common Cr. as Depreciation, Rs. 407 Cr. as Interest Cost and investors. Mentioning about the future focus areas, Foreign Exchange loss of Rs. 684 Cr.). MRPL was Mr. Mittal stated that the Company in line with the Government’s vision for development, would awarded ‘Niryat Shree’ Gold Trophy in the Residual extensively be putting its emphasis in initiatives sector for Non. MSME category by Federation of like Namami Gange, Skill Development, Housing Import Export Organization (FIEO). for All, AMRUT, Real Estate Development in Tier II & III Cities, Swachh Bharat Campaign. In this NBCC (India) Ltd. posts a context, he informed that NBCC had been implementing huge number of Bio-Digester Toilets/Public Substantial 32 percent Growth Toilets/NAMMA Model Toilets in various states in Top line of the Country and particularly in Girls Schools of Rural Areas. NBCC (India) Ltd. has registered a substantial 32 percent Growth in Top line during FY 2015- 16 as compared to the previous year. The Annual NLC registers a revenue Financial Results for FY 2015-16, announced recently, shows the Company posting a Profit of Rs.311 growth of 5.84 percent in the Cr. while its total Income has surged to Rs.5838 Cr. FY 2015-16 Speaking to the Media on the occasion, Mr. Anoop Neyveli Lignite Corporation (NLC) kept its perfor- Kumar Mittal, CMD of the company said that the mance parameters up in the financial year 2015-16, Company had been consistently performing well despite set back to its operations due to incessant and informed that the Order Book position of the rain and floods for over a month in November/ Company as of now, stood at more than Rs.35000 December 2015. The total revenue of the Company Cr. and was likely to touch the figure of approxi- for the year 2015-16 rose to Rs. 7,194.20 Crs against mately 60,000 Cr. in next few months. Elaborating Rs. 6,796.97 Crs of previous financial year register- upon the business outlook, Mr. Mittal stated that the ing a positive growth of 5.84 percent. Similarly, Company’s focus areas in the coming years would the Profit for the year 2015-16 before Interest, primarily be PMC and Redevelopment works. Depreciation and Tax also rose to Rs 2741.85 Crs as He said that NBCC already had huge work orders against Rs. 2627.88 Crs for the year 2014-15, regis- from the Government in respect of the redevelop- tering 4.33 percent positive growth. ment of properties which included Rs. 5000 Cr. However, the Net Profit was impacted by

Kaleidoscope June, 2016 57 58 KaleidOscope June, 2016 of 567 MT of bio-fertilizers during the year. NFL’s contribution shall immensely help to reduce the import of Urea and further enhance food security in the country. The above results were achieved with several new initiatives taken during 2015-16. After a gap of 20 years, Company has undertaken import of DAP and supplied it to farmers. The Company has also commenced Seed Multiplication Program for production and sale of quality seeds under its brand ‘Kisan’.

Mr. Sarath Kumar Acharya CMD, NLC Audited Financial Results of Oil India Limited, for FY 2015-16 non-stabilisation of Operation of newly commissioned Units of TPS- II Expansion resulting in an Oil India Board in its 464th Board Meeting held re- under recovery of capacity charges (operating loss) cently approved the Q4 and FY15-16 results. The to the tune of Rs. 244.08 Crs and due to Rain and company earned PAT of Rs. 2330 cr during FY 16 Rs. flood in Nov. /Dec. 2015, the Company suffered a as compared to PAT of Rs. 2510 cr. in FY 15. PBT be- Power Generation loss of 763.72 Million Units re- fore exceptional items, i.e. impairment provision of sulting in a consequential loss of estimated revenue Rs. 215 cr. in respect of certain overseas investments, of around Rs. 409.73Crs. These factors attributed for FY16 was Rs. 3678 cr. In spite of sharp fall in to reduction in Net Profit after Tax to Rs. 1204.15 crude oil price realisation in Q4 FY16 by over 39 per- Crs (after adjusting exceptional item of expenditure cent and, PAT for Q4 Rs. 469 cr. was lower by only of Rs.28.38 Crs) as against Rs. 1579.68 Crs (includ- 15 percent as compared to PAT of Rs.552 cr. during ing exceptional item of revenue of Rs.345.57 Crs) in similar period last year. Oil India Limited (OIL) 2014-15. The Company, this year, has proposed to didn’t share any subsidy burden during Q4 FY16 as give a Dividend of 30 percent of its Equity as against well as Q4 FY15. For FY16, subsidy burden on OIL 28 percent Dividend paid in last financial year. This was only USD 1.04/BBL as compared to USD 37.13/ would result in an additional financial commitment BBL in FY15. Though the average gross crude oil of Rs. 39.08 Crs and the Dividend Payout (including price in FY16 was sharply lower at USD 46.35/BBL Dividend Distribution Tax) this year would work as against USD 84.25/BBL in FY15, due to lower sub- out to 50.31 percent of Profit after tax (PAT) as com- sidy burden in FY16, the net price realised was only pared to 35.87 percent for FY 2014-15. marginally lower at USD 45.31/BBL as against USD 47.12/BBL in FY15. The average crude price realised by OIL during Q4 FY16 was USD 32.62/BBL which NFL records net profit of Rs. 197 was 39 percent lower than the price of USD 53.64 / cr. during 2015-16 BBL realised during Q4 last year. The natural gas production of the company during Q4 FY¬16 was National Fertilizers Limited (NFL) reported a 718 MMSCM which was 8 percent higher than the Profit Before Tax (PBT) of Rs. 283 cr. for the year production during Q4 last year. The natural gas pro- 2015-16, after a gap of more than a decade. With this, duction for FY16 was 2838 MMSCM. Sale of Natural the company has earned a net profit of Rs. 197 cr., a Gas during Q4 FY16 was 595 MMSCM. The natural jump of 651 percent against Rs. 26 cr. in the previ- gas sale during FY16 was 2314 MMSCM. The crude ous year. During the year, the Company recorded oil production during FY16 was 3.247 MMT. Crude ever highest Urea production of 38 Lakh MT with oil sales during the year was 3.237 MMT. a capacity utilization of 118 percent. This accounts for 15.5 percent share of the total Urea production in the country. Almost all Units of the Company REC registers its Highest Ever have achieved ever lowest energy consumption, which has significantly contributed to the profit. Annual Profit The company also recorded ever best production Rural Electrification Corporation Limited (REC)

Kaleidoscope June, 2016 59 60 KaleidOscope June, 2016 declared its financial results for the quarter and year The Board of Directors has recommended Final ended 31st March, 2016 as approved by its Board of Dividend for the Financial Year 2015-16 @ Rs. Directors in a meeting held recently. Total Income 1.75 per share @ 17.50 percent of paid-up capital. of the company for the quarter and year ended on The Company had paid Interim Dividend for the 31st March, 2016 increased to Rs. 6,084 cr. and Rs. Financial Year 2015-16 @ Rs. 1.60 per share @16 per- 23,756 cr. respectively as against corresponding cent of paid-up capital in February, 2016. Thus, total quarter and year ended on 31st March, 2015 of Rs. dividend for the Financial Year is @ 33.50 percent of 5,371 cr. and Rs. 20,388 cr. respectively thus register- paid-up capital. ing an increase of 13 percent for the quarter and 17 percent for the year. Profit after tax of the company SCI Doubles its profit to for the quarter and year ended on 31st March, 2016 increased to Rs. 1,160 cr. and Rs. 5,628 cr. as against Rs. 377.29 Cr. the corresponding quarter and year ended on 31st The Shipping Corporation of India Ltd (SCI), has March, 2015 of Rs. 1,097 cr. and Rs. 5,260 cr. respec- nearly doubled its net profit to Rs. 377.29 Cr. for the tively, thus registering an increase of 6 percent for year ended 31st March 2016 as against a net profit the quarter and 7 percent for the year. EPS for the of Rs.200.93 Cr. in the previous year. Despite pro- quarter and year ended 31st March, 2016 stood at viding for an impairment loss of Rs. 136.38 Cr. SCI Rs. 11.75 and Rs. 56.99 respectively. Net worth of has posted an impressive profit of Rs. 377.29 Cr. The overall financial performance of the company the company increased to Rs. 28,618 cr. as against has also improved with enhanced Net worth and Rs. 24,857 cr. over the corresponding period of last Earning Per Share. year, registering a growth of 15 percent. The profit of SCI is creditable as there has been an unprecedented down turn in the dry bulk and con- Audited Financial Results of tainer shipping sector worldwide. NTPC for FY 2015-16 NTPC Ltd. having installed capacity of 47178 MW DCI profit after tax for 2015-16 has declared the Unaudited Financial Results for 4th quarter of Financial Year 2015-16 along with zooms to Rs. 7967 Lakhs Audited Financial Results for Financial Year 2015- For 2015-16, Dredging Corporation of India Ltd 16. During the Financial Year 2015-16, NTPC re- (DCI) earned a profit after tax of Rs.7967 lakhs corded highest ever generation of 241.975 Billion which is the highest in the last eight years. The turn- Units against 241.261 Billion Units generated dur- over of the Company for the year is Rs.67622 lakhs. ing the previous year. The Audited Total Income The earnings per share of the company for the year for the Financial Year 2015-16 was Rs. 71,696.07 cr. is Rs.28.45. The Board of directors of the company and the Profit after Tax was Rs. 10,242.91 cr. For in its meeting held recently while approving the the financial year 2015-16, thermal PLF of NTPC results recommended dividend of 30 percent (Rs.3 Ltd. was 78.61 percent against the National PLF per equity share of Rs.10/- each) for 2015-16 consec- of 62.28 percent. utively for third year for the approval of the share- For the 4th quarter of Financial Year 2015-16, holders in the next Annual General Meeting to be NTPC Ltd. generated 62.332 Billion Units against held by end of September 2016. 61.313 Billion Units generated in the correspond- The Company inspite of facing stiff competition ing period of the previous year, up by 1.66 percent. from both within the country and outside the The Unaudited Total Income was Rs. 18,560.70 cr. country has been able to improve its efficiency and the Profit before Tax was Rs. 3,571.24 cr. against levels which has helped the company in earning the Profit before Tax of Rs. 3,122.20 cr. for the 4th good profits. The Company has executed works quarter of Financial Year 2014-15, up by over 14 at ports/ projects at Kolkata/Halida, Murmugao, percent. The Profit After Tax for the 4th quarter Visakhapatnam, Cochin, Ennore, Dhabol, Chennai of Financial Year 2015-16 was Rs. 2,716.41 cr. during the year.

Kaleidoscope June, 2016 61 62 KaleidOscope June, 2016 Personalia

Mr. E. S. Ranganathan Mr. Girish Kumar Mr. Nataraj Krishnappa takes over as Managing Director, takes charge as Director takes charge as Director Indraprastha Gas Ltd. (Bangalore Complex), BEL (Other Units), BEL

Mr. Mukesh Kumar Singh Mr. Arun Kumar Mr. S. K. Goyal is appointed as Director takes over as Basin Manager, Western takes over as Chief Vigilance Officer (Finance), IRCON Onshore Basin, ONGC Vadodara (CVO), Oriental Bank of Commerce

Kaleidoscope June, 2016 63 64 KaleidOscope June, 2016 PSEs CSR Initiatives NBCC organizes was attended by approx. 40 senior officers ofthe Company. A presentation on various topics relevant Awareness Programme on to Organ Donation and Role of NOTTO in facilitat- “Organ Donation” ing Organ Donation was made by NOTTO Team. HAL Completes its Kumudvathi River Rejuvenation Projects

Awareness Programme on “Organ Donation” at NBCC.

Drawing inspiration from Prime Minister’s Appeal Mr. T. Suvarna Raju, CMD, HAL handing over documents to the citizens for participation in Organ Donation related to Kumudhvathi River Rejuvenation Projects to the Movement, NBCC partnered with PM’s vision in village panchayat member at a program at Thymagondu nation building exercise to create awareness for the village, near Bengaluru recently. theme and motivate the employees of Organization for the purpose. Under the guidance of Mr. Anoop Much to the relief of the parched land and wa- Kumar Mittal, CMD, NBCC took the initiative ter-starved population, Mr. T. Suvarna Raju, to spread awareness amongst employees of the CMD, HAL handed-over the Kumudvathi River Company for “ORGAN DONATION” and accord- Rejuvenation projects to the beneficiary village ingly organized a Programme on the theme recent- panchayats of Nelamangala Taluk of Bengaluru ly at Corporate Office. National Organ and Tissue rural district. “We are extremely happy to contrib- Transplant Organization (NOTTO), a National level ute to such a noble cause of reviving dried natural Organization presented this programme. Dr. S. K. water resources at this critical juncture when wa- Badan, Consultant Coordinator, Ms. Rachna Singh, ter has become a precious commodity everywhere. Consultant (R&D) & Ms. Anita Ahuja, Consultant Our efforts, we hope, gives a new lease of life to (IEC), from NOTTO, conducted the Session, which the natural habitat of the region and we will continue to support such ventures”, he said. The event Lokarpana was held at village Thyamagondlu, about 70 km from Bengaluru recently. The beneficiary villages are Doddabele, Kalalghatta, Kodigehalli, Thyamagondlu, Hasurahalli, Budihal, Kuluvanahalli and Shivgange. HAL has spent Rs. 477 lakhs in the past two years on this project under Corporate Social Responsibility (CSR) by joining hands with International Association for Human Values (IAHV), a sister organization of the Art of Living to rejuvenate Kumudvathi river, a tributary of river Arkavathi that originates from Shivagange hills in Nelamangala

Kaleidoscope June, 2016 65 66 KaleidOscope June, 2016 region of Maharashtra. RAdm R. K. Shrawat, CMD, MDL along with Cmde Rakesh Anand, Director (CP&P) visited Parner village, Tal Patoda, District Beed recently to review the initiative taken by the MDL’s CSR team to bring in relief to farmers and their cattle, affected by successive droughts in the area. During the visit, Village Development Project activities like distribution of Mineral Mixture at the Cattle Camp at Rohat wadi and tree plantation drive at Parner Village were inaugurated. The work of cleaning/ deepening the public well & removal of weeds around the pond were commenced. CMD also reviewed the plan of widening/digging canal near Parner village. Mr. T. Suvarna Raju, CMD, HAL alongwith officials from Addressing farmers and government officials on HAL and International Association for Human Values at the Kumudhvathi River Rejuvenation Projects site. the occasion, Adm Shrawat said that MDL aims to plant approximately 50,000 trees, provide fodder Taluk of Bengaluru rural district. The river once ca- and mineral mixture for about 1500 cattle. He said tered to 30 percent of Bengaluru’s water needs but that our special focus will be on deepening of wells now the whole river basin is “over-exploited”. and ponds, excavation of canals and building check Mr. V. M. Chamola, Director, HR (HAL), senior offi- dams for water conservation and creating Farmer’s cials from IAHV, members of gram-panchayats and Self Help Group as well as providing training for villagers were present on the occasion. Mr. Chamola enhancing agricultural productivity. The initiative in his speech called for collective responsibility of is expected to benefit 1000 farmer families. all the stakeholders involved in taking such environment friendly projects a complete success. Lanka IOC donates ambulance CSR Initiatives by MDL in Beed District On the advice of Defense Minister, Mr. Manohar Parrikar, Mazagon Dock Limited initiated activities to help drought affected farmers in Marathwada

Mr. Maithripala Sirisena, President of Sri Lanka and Mr. Shyam Bohra , MD, Lanka IOC, handing over the key of the ambulance to Dr. Pramitha Ratnayake, Provincial Director of Health Services and Dr. Anurasiri Jayasinghe, Medical Superintendent.

His Excellency, President of Sri Lanka, Mr. RAdm R. K. Shrawat, CMD inaugurating the fodder and Maithripala Sirisena, recently handed over an am- mineral mixture distribution for cattle at Rohat wadi Chara bulance, donated by LIOC to Medirigiriya Base Chhavini, Beed. Hospital in Polonnaruwa District, in the presence of

Kaleidoscope June, 2016 67 68 KaleidOscope June, 2016 Mr. Shyam Bohra, MD, Lanka IOC and other senior Chalieco had expressed interest in participating in LIOC officials and the officials of the Government the project. NALCO will also scout for other global of Sri Lanka. It was another CSR initiative taken by suppliers in countries like Russia, Ukraine and the the company under the banner “WE CARE” and US,” Dr. Chand added. was greatly appreciated by the President. Dr. Pramitha Ratnayake, Provincial Director of Health Services, Medirigiriya, along with Dr. CCL Ke Lal perform Anurasiri Jayasinghe, Medical Superintendent, outstandingly received the ambulance on behalf of the health Central Coalfields Limited under its new CSR ini- authorities. tiative i.e., CCL Ke Lal, which is a programme for imparting better education facilities to wards of NALCO assumes a bigger role in Project Affected People, land oustees and villagers staying within command area of the company, Titanium Slag Project have created history in the academic world in 12th Class CBSE examination. The company have been providing free fooding & lodging and coaching facilities to the 17 meritorious students.

Dr. Tapan Kumar Chand, CMD, NALCO and Mr. D. Singh, CMD, IREL. Mr. Gopal Singh, CMD, CCL with Meritorious students of Indian Rare Earths Limited (IREL) and NALCO CCL’s Kayakalp Model. had agreed to set up a 1-lakh TPA Titanium Slag Project in Joint Venture, at Chhatrapur in Ganjam “CCL Ke Lal” is the brainchild of Mr. Gopal Singh, district of Odisha, with an investment of Rs.750 CMD, CCL so that meritorious students having ru- crore. For this, a pre-feasibility report was pre- ral background in the command areas of the compared and IREL had floated Expression of Interest pany get opportunity to study in the state capital for technology supply. However, since no global of Jharkhand and they can be groomed for not only technology supplier evinced interest, now NALCO scoring high marks in the CBSE Examination but has taken the lead in attracting global technology crack the tough IIT Examination and other premier suppliers. This was discussed between Dr. Tapan engineering colleges of the country. The company Kumar Chand, CMD, NALCO and Mr. D. Singh, is now centred on Inclusive Growth through a se- CMD, IREL, in presence of senior officials of both ries of initiatives based on “KAYAKALP MODEL” the companies, recently. under the leadership and guidance of Mr. Gopal “Titanium is regarded as a high-end metal and Singh, CMD, CCL. Mr. S C Vishwakarma, Mr. S L NALCO aims to enter into a niche market with Ghosh, Mr.Jitendra Kumar, Mr. Akhilesh Kumar this venture. The company, by virtue of its strong and Mr.N Srivastava, who are mining engineers in international presence, would play a vital role the company but they are voluntarily teaching these in attracting reputed suppliers for this project,” students before and after office hours on the work- said Dr. Chand. “In fact, during the recent visit of ing day and during holidays/weekend as per need our Director (P&T) Mr. N.R. Mohanty to China, of the students.

Kaleidoscope June, 2016 69 70 KaleidOscope June, 2016 PSEs Celebrate Swachhta Pakhwada

Responding to Prime Minister’s call for ‘Swachh Bharat’, a large number of PSEs organized Swachh Bharat Pakhwada from 16th - 30th May, 2016. During this period, various activities such as cleaning of offices, awareness programmes, painting and essay writing competition etc. were organized.

Swachh Bharat Awareness Campaign by KIOCL Ltd.

CMD & Directors, NFL conducting cleanliness drive outside office premises during Swachhta Pakhwada

Pakhwada” recently. Mr. Manoj Mishra, CMD Swachh Bharat Awareness Campaign by KIOCL Employees. along with Directors and all employees of NFL’s Corporate Office undertook the cleanliness drive of the office premises and areas around the premises KIOCL Ltd. observed Swachh Bharat Fortnight re- recently. cently at all the units of the company. The employ- In addition to this, during the fortnight, many activ- ees took Swachh Bharat pledge and participated in ities such as essay & slogan competition, inspection the “Shramadhaan” with brooms to reiterate their of desks of employees etc. were also organized to commitment for the “Swachh Bharat Mission” and spread awareness about cleanliness. Some dustbins cleaned the company premises, KIOCL’s Colony were also installed at the strategic places. and its surrounding areas. The Company has pledged to actively spread A special awareness drive was conducted in sur- awareness about hygiene and cleanliness in all the rounding of Madiwala market area for the vegeta- spheres. Various programmes such as cleaning ble vendors and tea sellers on cleanliness. The em- drives and other community activities were under- ployees have appealed to public to wholeheartedly taken by all the Units and offices of the Company join hands in their collective quest to make Swachh during “Swachchta Pakhwada”. Bharat a reality. AAI organizes Swachh Bharat NFL undertakes Cleanliness Pakhwada Drive during “Swachchta Swachh Bharat Pakhwada & Pledge taking cer- Pakhwada” emony on ‘Mission Swachh Bharat’ was launched In line with Swachch Bharat Abhiyan launched by at Airports Authority of India, Corporate Head- Prime Minister, National Fertilizers Limited orga- quarters, Rajiv Gandhi Bhawan recently. nized a cleanliness campaign during “Swachchta Mr. S. Raheja, Chairman, AAI administered the

Kaleidoscope June, 2016 71 BEML celebrated ‘Swachh Bharat Pakhwada’ recently at its HQ and Divisions. The Swachh Bharat Pakhwada (Fortnight) was celebrated across the Company to comply with the policies of the Govt. In BEML, Mr. P. Dwarakanath, CMD, alongwith Mr. D. K. Hota, Director (HR) and Mr. B. R. Viswanatha, Director (Mining & Construction) administered the Pledge of Swachh Bharat amongst Executives and Employees of the Company and later lead all for a cleaning drive of the Company’s premises. Besides, saplings were also distribution to employees and executives to promote greenery. BEML has chalked out various intensive cleaning programmes in and around the Company premises Mr. S. Raheja, Chairman, AAI with other offcials at Swachh Bharat Pakhwada at Corporate office. for implementation during the fortnight. pledge taking ceremony at CHQ, R.G. Bhawan Swachh Bharat wherein a large number of officials were present and emphasized to give two hours per week for cleanli- Pakhwada at MDL ness drive to realize the dream of Mahatma Gandhi - ‘Swachh Bharat’. The Chairman also conveyed the message that the cleanliness drive should be continuous part of life and not limited to mere a day. A large number of senior officers and staff cleaned the area at Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi. The Swachh Bharat Pakhwada was also organized at all the airports and AAI offices in the country.

BEML celebrates Swachh Bharat Pakhwada

RAdm R. K. Shrawat, CMD, MDL along with Directors and CVO administering Swachh Bharat Shapath to all employees

RAdm R. K. Shrawat, CMD, MDL recently administered the Swachh Bharat Shapath to all employees as part of the 15 day “Swachh Bharat Pakhwada” celebrations. In line with the Government of India, Ministry of Defence directives Swachh Bharat Pakhwada was organized in various defence estab- lishments in the country. The Pakhwada commenced with the Oath taking ceremony, followed by a March Past in the Yard wherein six contingents from various divisions dis- Mr. P. Dwarkanath, CMD, BEML leading the cleanliness drive played posters and banners and spread awareness during Swachh Bharat Pakhwada. about cleanliness among the employees. Various

72 KaleidOscope June, 2016 activities were conducted during the 15 day drive importance of cleanliness for children of the employ- which included cleanliness drive in and around ees, were held. Posters and banners were displayed MDL, disposing scrap in organized manner, edu- to enhance cleanliness awareness. Swachh Bharat cating employees on segregation of organic and Pakhwada concluded with prize distribution. recyclable waste, tree plantation drive, painting & essay writing competition, organizing seminar etc. Swachh Bharat Pakhwada concluded with a prize BEL launches Swachh Bharat distribution ceremony. Pakhwada BDL observes Swachh Bharat Pakhwada

Senior officers take out a march past to raise awareness on cleanliness at BEL’s Bangalore Complex as part of the ‘Swachh Bharat Pakhwada’.

CMD, BDL Mr. V. Udaya Bhaskar sensitizing employees of the Company as a part of “Swachh Bharat” Pakhwada held Responding to Prime Minister Mr. Narendra Modi’s at BDL. call for ‘Swachh Bharat’ and to realise Mahatma Gandhi’s dream of a clean India, Bharat Electronics Limited (BEL) launched a cleanliness campaign Swachh Bharat Pakhwada (Swachh Bharat titled ‘Swachh Bharat Pakhwada’ recently. As Fortnight) was observed by Bharat Dynamics part of the campaign, under the leadership of the Limited (BDL) recently at all the three units of the BEL Management, employees took the ‘Swachhta Company viz., Hyderabad, Bhanur (Medak District) Shapath’ and cleaned up their workplaces, office and Visakhapatnam. surroundings, removed weeds and other vegetation CMD, BDL Mr. V. Udaya Bhaskar administered on the roadside and planted saplings. oath among employees of the Company to mark the At BEL’s Bangalore Complex, the programme inauguration of Swachh Bharat Pakhwada. He ex- was inaugurated by Mr Girish Kumar, Director horted the employees to maintain cleanliness inside (Bangalore Complex). Around 750 employees par- the factory premises as a part of industrial wellness ticipated along with their families and organised and concern for environment. a march past at the BEL Township in Bengaluru to Cleanliness drive, on a large scale, was carried out create awareness on cleanliness, displaying plac- throughout the company by taking up activities ards and banners. such as disposing off of unrequired office items, BEL Management with employees after cleaning sensitizing employees and their families about seg- up their office premises and planting saplings, at regation of organic and recyclable waste, disposing the BEL Corporate Office Senior officers take out off of scrap material in the factory premises and a march past to raise awareness on cleanliness at plantation of saplings. BEL’s Bangalore Complex as part of the ‘Swachh Painting and essay writing competitions, on Bharat Pakhwada’

Kaleidoscope June, 2016 73 SECI organizes “Chintan CRWC organizes Awareness Baithak” programme on cleanliness

Dance drama on Swachhta Mission being presented CRWC Senior Officers handed over Gift Hamper to Incharge in SECI. of Primary School J.J. Shaddipur-I for the using in day to day uplifting of hygiene and cleanliness standards in the School. Solar Energy Corporation of India Ltd. (SECI) organized a “Chintan Baithak” recently. In this meeting Central Railside Warehouse Company Ltd orga- Secretary, Ministry of New and Renewable Energy, nized “Swachhta Pakhwada” in corporate office as and other officials of SECI, IREDA, NISE and well as its field units recently an Awareness pro- MNRE were present. On this occasion a small dance gramme on cleanliness and Sanitation was also drama on Swachhata Mission was presented by the conducted in Delhi Municipal Corporation Girls artists of Songs and Drama Division, a Government Primary School, J.J. Shadipur-I, New Delhi in order of India undertaking. It underlined the necessity of to promote the Swachh Bharat Mission and also en- keeping surrounding clean and to ensure all house- courage them to be an active contributor for the bet- holds have a toilet. The dance drama also showed ter future of everyone. how we can harness solar energy to make cleanliness a self-sustaining effort. It was part of the SECI’s Swachhata mission.

Inauguration of ITBP Tezpur, Implemented by HSCL

he Residential and Non-Residential Building campus and Sector Head Quarters for the 4th Battalion of the Indo Tibetan Border Police T(ITBP) implemented by Hindustan Steelworks Construction Limited at Rangamati, Assam , was inaugurated by Mr. Krishna Choudhary , DG, ITBP recently. He also laid the foundation stone for Phase-ll construction at Yupia , Arunachal Pradesh. He appreciated HSCL for completing the complex within the timeframe. Mr. Moyukh Bhandari, CMD, HSCL assured him for completing the other projects of ITBP, under execution by HSCL, shortly.

74 KaleidOscope June, 2016 CSL Lays keel of second double ended RoRo Ferry he keel of the second double ended RoRo Ferry being built for the Kochi TMunicipal Corporation was laid by Mr. Amit Meena, Secretary, Kochi Municipal Corporation at Cochin Shipyard Limited recently. Prominent members of the Corporation as well as Mr. Madhu S. Nair, CMD, Mr. Paul Ranjan, Director (Finance), Mr. Sunny Thomas, Director (Technical), Mr. Suresh Babu N.V., Director (Operations) and senior officials of CSL and the Corporation were present on the occasion.

Mr. Suresh Babu NV, Director (Operations) CSL & Commanding Officer (Designate) of vessel Cmdt. Pramod Pokhriyal after signing the Protocol of Delivery and Acceptance.

vessel in the series of twenty Fast Patrol Vessel under construction for the Indian Coast Guard, ahead of the contractual schedule recently. The Protocol of Delivery and Acceptance was signed between Mr. Suresh Babu NV, Director (Operations), CSL Keel laid by Mr. Amit Meena, Secretary, Kochi Municipal and Commanding Officer (Designate) of the vessel Corporation. Cmdt. Pramod Pokhriyal. DIG T.P. Sadanandan, Principal Director (Materiel), CSL delivers the Fast Patrol Vessel Mr. Madhu S. Nair, CMD, CSL, DIG G. Devanand, (BY517) to the Indian Coast Guard CGRPS (KOC) and other senior officials of ICG and CSL delivered “ICGS Arush”, the Seventeenth CSL were present on the occasion.

MCL Celebrates Miners’ Day Awards 76 Coal Miners ahanadi Coalfields Ltd. (MCL), awarded the best performers of the company to mark- Mthe Miners’ Day (May Day) celebrations held at the country’s largest Talcher Coalfields in Angul district of Odisha. A programme Mr. A. K. was organised at Bharatpur Area of MCL in Tiwari, Talcher Coalfields wherein Director (Technical/ Director Operations) Mr. A. K. Tiwari was the chief guest (Tech. Operations), while Director (Technical/Projects and Planning) Mr. MCL addresses J. P. Singh, Director (Personnel) Mr. L. N. Mishra, the audience. trade unions’ representatives Mr. K. C. Patel, Mr. K. C.

Kaleidoscope June, 2016 75 Patra, Mr. Anik Chakraborty, Mr. and Chief Manager (P/NEE/IR) Tiwari congratulated coal miners Ajay Biswal, Mr. S. C. Mahallick, I/c were prominent among a for their contributions in making Mr. Sahab Singh (CMOAI), large number of senior officers, MCL the largest coal producer of General Manager (Bharatpur staff and their family members. the country. Area) Mr. M. S. Tenurnikar Addressing the gathering, Mr.

Development by WCL Transforming Lives of Rural Youth

estern Coalfields Limited (WCL) has Wtaken initiatives to make people, employable in the rapidly changing economy, ensuring livelihood, especially rural youth in and around the command area of its operations in Maharashtra & Madhya Pradesh. This effort by WCL is contributing positively to the “Kaushal Bharat – Kushal Bharat” program, the skill development initiative by the Government.

During last one year WCL estab- Skill Development Centre established by WCL. lished Four Skill Development Centres, two in Maharashtra - one each at Nagpur & Chandrapur development training for the du- technical training like refrigera- and two in MP at Chhindwara. ration of four months is provided tion & air condition, mechanical At the Chandrapur Skill by CIPET under two modules fitter, training of tipper opera- Development Centre, WCL has i.e Machine Operator Injection tor, etc. joined hands with CIPET (Central Moulding (MO-IM) & Machine About 6000 rural youth and Institute of Plastic Engineering Operator Blow Moulding (MO- project affected people will be and Technology) working un- BM). Placement of the trained trained during current fiscal. der Ministry of Chemicals & candidates is also mandated by Going ahead, WCL plans to im- Fertilisers, for imparting job ori- CIPET under MoU with WCL part certification programmes by ented vocational skill develop- thus ensuring 100% placement tying up with MSME National ment training of 4 to 6 months for every trainee. Chandrapur Skill Development Mission, under its CSR banner, especially Centre is also conducting various (Micro Small and Medium for rural youth & Project Affected courses like refrigeration & air Enterprises), affiliation with Persons (PAPs) in the trade en- condition, tailoring course, de- Director General of Training compassing fields like Machined hydration of fruits & vegetables/ (DGT) and collaboration with CII Operator – Injection Moulding, food processing, etc. (Confederation of India Industry) Plastic Extrusion, Blow Moulding, Skill Development Centre at to harness the benefits of impart- Plastic Processing. At present skill Indora, Nagpur is imparting ing higher level skills.

76 KaleidOscope June, 2016 Central Vigilance Commissioner Chief Addresses IOCians Minister of Jharkhand inaugurates High level

Mr. K. V. Chowdary, Central Vigilance Commissioner along with Mr. B. Ashok, Garga Bridge Chairman, IndianOil and other Board Members.

ommemorating 2016 as repose faith in the efficiency and industan Steelworks Con- the Year of Core Values, productivity of the organisation. struction Ltd. (HSCL) IndianOil has been or- Speaking further, Mr. Chowdary Hcompleted the construc- C tion of new high level RCC Bridge ganising various interactions and added that demonstrating the activities to reinforce & reaffirm values of Care, Innovation and over Garga River in the 4th Km. its corporate core values of Care, Passion lead to generation of of NH-23 (Chas-Ramgarh Section) at Bokaro recently with its de- Innovation, Passion and Trust. In long term Trust and without partmental team of engineers and line with its ongoing initiative, Mr. these three, Trust can’t be built. inputs. Mr. Raghubar Das, Chief K. V. Chowdary, Central Vigilance Mr. Ashok, Chairman, IndianOil Minister, Jharkhand formally dedi- Commissioner addressed IOCians said that their values get re- cated the Bridge to the people of at Corporate Office recently. flected across all their -opera Chas-Bokaro . Addressing the gathering, Mr. tions and functions, day in and Chowdary talked about the es- day out. Chairman also cited the sence of proper and effective com- example of IndianOil officers munication and its necessity for an who ensured smooth supply organisation to achieve its goals. of Petroleum products during He said only a commonly under- Chennai floods and lauded the stood and agreed form of commu- efforts of IndianOil team that nication leads to building of Trust has unflinchingly risen to the which is among the core values occasion every time any part of enunciated by IndianOil. Trust, the nation has been struck by Mr. Chowdary asserted, takes an adversity. Mr. Sanjiv Singh, eons to build but can be repudi- Director (Refineries), Mr. D. ated in minutes if not ingrained Sen, Director (P&BD), Mr. A.K. strongly. Therefore, it’s imperative Sharma, Director (Finance), that an organisation works closely Mr. Verghese Cherian, Director to build that Trust and develops (HR), Mr. Anish Aggarwal, a culture of corporate excellence Director (Pipelines), Mr. B. S. that becomes its identity. He said Canth, Director (Marketing), it must be ensured that employees Ms. C. K. Deshmukh, CVO across the organisation respond and other senior IndianOil of- to standard situations in a simi- ficials were also present on the lar manner for the customers to occasion.

Kaleidoscope June, 2016 77 Maharashtra Day & BEML Enters World Labour Day Dredging Business Celebrated in RCF

Mr. P. Dwarakanath, CMD, BEML and Mr. Rajesh Tripathi, CMD, DCI Ltd. in the presence of Mr. Nitin Gadkari, Minister for Road Transport and Highways and Shipping and Mr. Rajive Kumar, Secretary, Ministry of Shipping. Mr. R. G. Rajan, CMD, RCF during Maharashtra & Labour Day Celebrations. ith an objective of strengthening the “Make in India” initiative by Government, BEML Ltd. signed a Memorandum of Understanding (MoU) aharashtra Day and World Labour W with Dredging Corporation of India Ltd for indigenous de- Day was celebrated in Rashtriya sign, development and manufacture of spares for dredgers. Chemicals and Fertilizers Ltd., M The MoU was signed by Mr. P. Dwarakanath, CMD, BEML (RCF) with great enthusiasm. Mr. R. G. Rajan, CMD, RCF garlanded the statue of and Mr. Rajesh Tripathi, CMD, DCI Ltd. in the presence of Mr. Chatrapati Shivaji Maharaj and paid floral Nitin Gadkari, Minister for Road Transport and Highways tribute to 106 martyrs who put their life for and Shipping and Mr. Rajive Kumar, Secretary, Ministry of the formation of Maharashtra State and ad- Shipping. The MoU is for supply of various type of spares for dressed the gathering in presence of Mr.. the existing Dredgers and also supply of Backhoe Excavators for new Dredgers. Spares include heavy fabricated and C. M. T. Britto, Director (Technical), Mr. A. machined components and hydraulic aggregates. By lever- B. Ghasghase, Director (Mktg.), Mr. Suresh aging the infrastructure and technology base developed for Warior, Director (Fin.), Executive Directors, Mining & Construction Machinery, BEML has entered into senior officials, representatives of various Dredging Business. organizations and employees. CMD, NBCC is the New President of DMA r. Anoop Kumar Mittal, CMD, NBCC, has been selected as the new President of Delhi Management Association M(DMA). The Search Committee selected Mr. Mittal for the position, on consideration of his top-end professional expertise and experience in the field of construction industry and rich exposure in the management of industry affairs. Mr. Mittal took charge from Dr. A.K. Balyan, CEO, Oil & Gas, Reliance Group and the immediate past President of DMA. Mr. Mittal in his capacity as President will work to further promote the cause of the Association in totality.

78 KaleidOscope June, 2016 BHEL bags Rs. 1,600 Crore order for setting up Thermal Power Project in Odisha

gainst International Competi-tive Bidding CMD, BHEL Inaugurates BHEL’s Inter-Unit A(ICB), BHEL has bagged an order for setting up a coal- Manufacturing Technology Meet based thermal power project in Odisha. The 1x250 MW coal- based thermal unit will be set up at Rourkela Power Project on Engineering, Procurement & Construction (EPC) basis. Valued at over Rs. 1,600 Cr., the order for the Stage-III of the brown- field power project, located in Rourkela district of Odisha, has been placed on BHEL by NTPC- SAIL Power Company Private Limited (NSPCL), a Joint Venture Mr. Atul Sobti, CMD, BHEL inaugurating Inter-Unit Manufacturing Technology Meet of NTPC & SAIL. Mr. Atul Sobti, CMD, BHEL inaugurated BHEL’s two day inter- unit meet BHEL commissions 600 on Manufacturing Technology at BHEL’s Haridwar unit. Speaking on the MW Thermal Power Plant occasion, Mr. Sobti said that BHEL’s products are manufactured in state- in Madhya Pradesh of the-art facilities using leading contemporary technologies that are the Bharat Heavy Electricals Ltd. suc- best in the world. BHEL regularly upgrades its technology base through in- house R&D initiatives and by sourcing technologies from global leaders. Mr. cessfully commissioned a 600 MW Amitabh Mathur, Director (IS&P), BHEL; Mr. Subrata Biswas, Director (E,R&D), coal-based thermal power plant in BHEL and other senior officials of the company were also present on the the state of Madhya Pradesh .The occasion. unit has been commissioned at the 1x600 MW Jhabua Thermal Power Project (TPP) located in Seoni dis- besides state-of-the-art Controls on Engineering, Procurement & trict in Madhya Pradesh. The proj- & Instrumentation (C&I) and Construction (EPC) basis. With ect is being developed by Jhabua Electrostatic Precipitators (ESPs). this, BHEL has supplied 84 per- Power Limited (JPL), a subsidiary cent of the total coal-based power of Avantha Power & Infrastructure BHEL commissions 500 generating capacity installed by Limited (APIL). This is the sec- MW Thermal power plant DVC. BHEL-make sets of 500/520 ond project of APIL commis- in Jharkhand MW rating class today form the sioned by BHEL, having earlier BHEL added another coal-based backbone of the Indian power commissioned the 1x600 MW power plant to the grid by com- sector and have been perform- Avantha Bhandar TPP at Raigarh missioning a 500 MW thermal ing much above the national in Chhattisgarh. BHEL’s scope of unit in Jharkhand.The unit has average as well as international work in the contract envisaged been commissioned by BHEL at benchmarks. design, engineering, manufacture, Bokaro Thermal Power-A Station supply, erection and commission- of Damodar Valley Corporation BHEL commissions 660 MW ing of Steam Turbine, Generator (DVC) in Jharkhand. BHEL has supercritical thermal plant and Boiler, along with associ- executed the contract of setting in Maharashtra ated Auxiliaries and Electricals, up the 500 MW coal-based unit BHEL commissioned a 660 MW

Kaleidoscope June, 2016 79 NLC Celebrates 60th Raising Day

LC celebrated its 60th Raising Day with CMD, NLC the chief guest of the occasion com- festivity and enthusiasm by recalling his- menced the celebration by hoisting the NLC flag in Ntorical occasion, 20th of May 1957, the the presence of the former CMD’s of NLC, Mr. M.P day NLC’s mining operations were commenced Narayanan, Mr. A.K. Sahay, Mr. S. Jayaraman and by the then Prime Minister of India Pandit Mr. J. N. Prasanna Kumar at the lawns of Lignite Jawaharlal Nehru. Mr. Sarat Kumar Acharya , Hall at Neyveli. In his address, Mr. Sarat Kumar Acharya recalled the relentless efforts and contributions of the- ear lier stalwarts and the former CMD’s who graced the occasion, for the NLC’s success in all fronts. He expressed his gratitude to all predecessors for being part of NLC’s growth path. Earlier, to mark the occasion all former CMDs launched various initiatives like Up graded Web Portal of NLC, Jalparyapta, a water management scheme to ensure the water reserves, Earmarked the New Site to con- struct 130 MW Solar Power plant through Digital portal and Swachh Bharat Rally (importance of Cleanliness) with NLC school Children. Functional Directors Mr. Rakesh Kumar, Mr. Subir Das, Mr. V. Thangapandian, Mr. P. Selvakumar and Executive Mr. Sarat Kumar Acharya, CMD, NLC, Mr. M. P. Narayanan, Mr. A.K.Sahay, Mr. S.Jayaraman, Mr. Prasanna Kumar, Directors were also present on the occasion. Earlier, Former CMDs of NLC, Directors and Senior Officials are in the morning the Unit heads of Mines, Thermal seen after hoisting the NLC Flag at Lignite Hall, Neyveli Power Stations and Administrative offices hoisted on the occasion of the 60th Raising Day of the Company NLC flags at respective units.

supercritical thermal unit in Karnataka commissioned is expected to be commissioned Maharashtra. The unit has been by BHEL shortly. BHEL’s scope of work for commissioned at Mouda Super BHEL commissioned the first 800 the project envisaged design, engi- Thermal Power Station (STPS) MW Supercritical thermal unit neering, manufacture, supply, erec- at Mouda in Nagpur district of in Karnataka, which is also the tion and commissioning of state-of- Maharashtra. The order for setting highest rating unit in the state. the-art supercritical Boiler and up two coal-based thermal units The unit has been commissioned Turbine Generators along with of 660 MW was placed on BHEL at the 2x800 MW Yeramarus associated civil works and by NTPC Ltd. While the first unit Thermal Power Station (TPS) agreed Balance of Plant (BoP) has been commissioned, work located in Raichur district of packages. The key equipment for on the other 660 MW unit is also Karnataka. Yeramarus is being the project has been manufac- in an advanced stage. Notably, developed by Raichur Power tured by BHEL at its Haridwar, BHEL has earlier set up two units Corporation Limited (RPCL) Bhopal, Ranipet, Hyderabad, of 500 MW each at Mouda STPS, - a Joint Venture of Karnataka Jhansi, Thirumayam and Benga- which are in operation. Power Corporation Limited luru plants, while the construction (KPCL) and BHEL. The second of the plant has been undertaken First 800 MW Supercritical unit of this project is also in an ad- by the company’s Power Sector- Thermal Power Plant in vanced stage of construction and Southern Region.

80 KaleidOscope June, 2016 NTPC and Coal India Join Hands to Foray into Fertilizer Sector

Joint Venture Agreement (JVA) was signed between ANTPC Limited and Coal India Limited (CIL) for formation of a Joint Venture Company to take up the revival of Fertilizer Plants of Fertilizer Corporation of India Limited (FCIL) at Sindri, Bihar and Gorakhpur, Uttar Pradesh by setting up an Ammonia urea plant at each location. The JV Company would ini- tially be incorporated with equal equity (50:50) participation from NTPC and CIL. JVA contains JVA documents being exchanged in presence of senior officials from NTPC & CIL. provision of inducting strategic partners at a later date depending upon business requirement of JV (BD) from NTPC and Mr. T. South Eastern Coal Field Limited Company. Bandopadhyay, General Manager (SECL). Mr. M. Viswanathan, The Joint Venture Agreement (Coal Videsh) from Coal India Company Secretary, CIL and Mr. was signed by Mr. Arun Kumar Limited in the presence of Mr. Murari Prasad, AGM (BD) were Gupta, General Manager A. Panda, Director (Finance), also present on the occasion.

NSIC Organizes Interactive Meet eads of Missions and representatives of 19 African coun- Htries visited NSIC Incubation Centre at Okhla, New Delhi recently. Mr. Ravindra Nath, CMD, NSIC briefed them about NSIC’s activities in promoting and developing MSMEs. The delegates were impressed with model of NSIC’s Rapid Incubation for development of “Self –Entrepreneurship” and expressed their desire to set up similar centre(s) in their country. Dr. Neena Malhotra, JS (E&SA), Ministry of External Affairs along with Under Secretary (E&SA) and Mr. Ravindra Nath, CMD, NSIC during the interactive meet. Mr. P.Udayakumar, DPM were also pre- senton this occasion.

Kaleidoscope June, 2016 81 Awards & Accolades to PSEs

RCF CMD Felicitated for CSR Mr. Ashwani Soni, Director (Projects), EIL has been conferred with the IIT-BHU Alumni Excellence Activities by FAS Award for 2016-17 for his outstanding contribution to hydrocarbon industry and unparalleled profes- sionalism. The award was bestowed upon him recently at a function held in New Delhi. The occasion assumes much greater significance in view of the fact that this esteemed institute is celebrating its 100th glorious year of existence and a culture of imparting education of the finest quality, selflessly, for a century now. Recognizing significant contributions by IIT BHU alumni in their respective professions, the Association of IIT‐BHU Alumni, New Delhi honours Significant Contributors every year. The selection process is elaborate and executed through a Mr. R.G. Rajan, CMD, RCF receiving the award. competent jury comprising of 35 members, drawn Mr. R. G. Rajan, CMD, Rashtriya Chemicals & from IIT BHU alumni and eminent personalities Fertilizers Ltd. (RCF) felicitated by Fine Arts from the industry. Society(FAS) for its excellent contribution in the execution of activities of Corporate Social BEML conferred with Responsibility especially in Chembur vicinity in presence of Mr. P. G. Deshpande, Executive Director Equipment India Awards (HR&CSO), Mr. P Karthikeyan, Executive Director (Mktg), & Mr. R. P. Jawale, Executive Director (Trombay) and other dignitaries in the function organized by Fine Art Society at Chembur, Mumbai.

Director (Projects), EIL Honoured by IIT-BHU

Mr. B.R. Viswathana, Director (M&C), BEML receiving the award from Mr. raghav Chandra, Chairman, NHAI.

BEML has won two awards in the ‘Best Seller – Crawler Dozers’ and ‘Best Seller- Rigid Dump Trucks’ at the 3rd Equipment India Awards-2016. The awards were received by Mr. B. R. Viswathana, Director (M&C) from Mr. Raghava Chandra, Mr. Ashwani Soni, Director (Projects), EIL receiving the Chairman, NHAI, at a function held at FICCI award. Auditorium, New Delhi recently.

82 KaleidOscope June, 2016 Hindustan Copper wins NLC has been conferred with the ‘National Award for Outstanding Industrial Relations’ for the year Industry Leadership Award 2014-15 by All India Organization of Employers Mr. K. D. Diwan, CMD, Hindustan Copper Limited, (AIOE). received the Industry Leadership Award – Base Mr. Bandaru Dattatreya, Minister of Labour & Metals on behalf of the Company at the 2016 Platts Employment presented the award to NLC. Mr. Global Metals Awards, held in London recently. Thiagaraju, GM,HR received the award on behalf of NLC at the Annual General Meeting of AIOE held recently in New Delhi .

BHEL honoured with Excellence Award by POWERGRID

Mr K. D. Diwan, CMD, Hindustan Copper Limited, receiving the Industry Leadership Award – Base Metals at the 2016 Platts Global Metals Awards, held in London.

The award ceremony was hosted by S&P Global Platts, a leading global energy, metals and com- modities information provider. The annual awards program honours exemplary performance in fifteen categories spanning the entire steel, metals and Mr. Amitabh Mathur, Director (IS&P), BHEL receiving the mining fraternity. award from Mr. I. S. Jha, CMD, POWERGRID.

NLC bags National Award for Bharat Heavy Electricals Limited (BHEL) was hon- Outstanding Industrial Relations’ oured for supply of quality Insulators by Power Grid Corporation of India Limited (POWERGRID), by way of an Excellence Award. Mr. Amitabh Mathur, Director (IS&P), BHEL received the Excellence Award from Mr. I.S. Jha, CMD, POWERGRID

NRL Director Finance conferred Best CFO Award The Institute of Cost Accountants of India has conferred the Best CFO award to Mr. S. K. Barua, Director (Finance), Numaligarh Refinery Limited for the year 2015. This award was presented by Mr. Najib Shah, Chairman, Central Board of Excise and Mr. Sarat Kumar Acharya, CMD, NLC, along with Functional Customs at a function held at Hotel Ashok, New Directors of NLC, Mr. Rakesh Kumar, Mr. Subir Das, Mr. P. Delhi recently. Selvakumar, and other senior officials of HR Dept., are seen with ‘National Award for Outstanding Industrial Relations’ The Institute of Cost Accountants of India, a conferred to NLC for the year 2014-15. statutory body under an Act of the Parliament,

Kaleidoscope June, 2016 83 WAPCOS Successfully Commissions Salma Dam in Afghanistan

rime Minister of India Mr. Narendra Modi with the President of Afghanistan Dr. Ashraf Ghani jointly inaugurated the Afghan- PIndia Friendship Dam (Salma Dam) at Chist-e-Sharif in Herat province in Western Afghanistan recently. The project was executed and implemented by WAPCOS Limited. Afghan-India Friendship Dam is a Multipurpose project planned for generating 42 MW of power, irrigating 75000 hectares of land, water supply and other benefits to the people of Afghanistan. It is a landmark Infrastructure Project undertaken by WAPCOS in most difficult working conditions. The suc- Shri Narendra Modi, PM, India & Dr. Ashraf cessful commissioning of the Project represents culmination of years of Ghani , President, Afghanistan releasing the WAPCOS book on the making of Afghan- dedication, devotion and hard work by WAPCOS’ Personnel, Afghan India Friendship Dam (Salma Dam). Officials and many other Professionals in very tough conditions.

NSIC bags ADFIAP Award -2016 – It’s First International Award

NRL Director Finance Mr. S. K. Barua (extreme left) receiving the Best CFO award from Mr. Najib Shah, Chairman, Central Board of Excise and Customs in New Delhi recently. recognises the significant contribution of Cost and Mr. Ravindra Nath, CMD, NSIC during the award ceremony. Management Accountants in improving corporate governance, value creation & preservations, man- Mr. Ravindra Nath, CMD, NSIC, received “ADFIAP aging risk and Implementing cost and management AWARD-2016” conferred by Association of accounting practices. Numaligarh Refinery Limited Developing Financing Institution of Asia & Pacific is a leading Oil and Gas company with a strong re- on NSIC in recognition of its significant contribu- cord of corporate governance and has been able to tion for SME development through Raw Material create significant value to its stakeholders in the last Distribution- Benefit Cost Project for SMEs by pro- couple of years. viding stable access to inventory of raw materials In another category NRL’s Ms Jumani Saikia Nath, at most competitive prices. Award was presented in Senior Manager (Finance) was also conferred the award ceremony held at Samoa. Hon’ble Prime the Best achiever award by the Institute for the Minister of Samoa also addressed the participants year 2015. during the Ceremony

84 KaleidOscope June, 2016 PSEs Ink MoU

OIL Signs MoU for extending its NALCO inks R&D Agreement CSR Project ‘SPARSHA’ with BARC

Dr. B.K. Satpathy, Executive Director (Business MoU documents being exchanged in presence of senior Development), NALCO and Dr. Jagtap, Director (Chemistry officals from OIL & St. Luke’s Hospitals & PSMRI. Group), BARC exchanging the MoU documents.

Oil India signed an MoU with St. Luke’s Hospitals NALCO signed an MoU with Bhabha Atomic & Piramal Swasthya Management & Research Research Centre (BARC), Mumbai, for Research Institute for two years, to conduct the mobile and Development (R&D) cooperation in the fields healthcare project, “SPARSHA” recently. The two of mutual interest. Under the MoU, R&D proj- experienced agencies as part of the MoU will ex- ects like: Extraction of Gallium from Bayer liquor, tend the Mobile healthcare Services to Dibrugarh, Extraction of Rare earth elements from Red Mud Tinsukia and in newly formed Charaideo districts of Upper Assam and in Miao & Manabhum ar- and Development of Reference Standards would be eas of Arunachal Pradesh. The Mobile Healthcare taken up within the framework of this MoU. Services of OIL have always been one of the most “Extraction of Gallium from Bayer Liquor will be significant CSR activities of the Company. The MoU NALCO’s first R&D project with BARC with an ob- comes with a wider scope of extending primary jective to develop indigenous technology for this health care service to OIL’s operational areas. strategic metal, for our country” said Dr. Tapan The MoUs was signed by Mr. Pranjit Deka, GM Kumar Chand, CMD, NALCO. (Public Affairs), OIL in presence of Mr. J.K. Borgohain, RCE, OIL, Mr. C Bose, ED (Production The MoU was signed by Dr. B.K. Satpathy, Executive Project) & Chairman OIL’s internal CSR Committee Director (Business Development), NALCO and Dr. and Mr. C Pal, GM (Finance & Accounts). On Jagtap, Director (Chemistry Group), BARC in pres- behalf of Piramal Swasthya Management & ence of NALCO CMD, Dr. Chand and Dr. Rajagopal Research Institute, Mr. Mahesh Deori, Head Chidambaram, Principal Scientific Advisor to (Assam Operations) and for St. Luke’s Hospitals Govt. of India and Chairman, Scientific Advisory N C Das, Administrator and Rev. Pradip Kawah, Committee to the Cabinet. Administrator signed the MoUs. Project Sparsha will target to conduct around 3,500 camps screening 6 Lakh patients in two years in OIL’s operational areas.

Kaleidoscope June, 2016 85 NMDC to Identify Mineral forward towards fulfilling the nation’s dream of a “Digital India” as space technology provides real- Potential Areas using Satellite time data for generation of digital maps,” he said. Remote Sensing Based on the MoU, NMDC will establish a Remote Sensing & GIS Laboratory at its head office in Hyderabad for interpretation of satellite data that will help NMDC identify and limit mineral potential areas to a smaller zone thereby negating the need for wide physical exploration.

THDCIL signs PPA with GUVNL for 50MW Wind Power Project at Patan, Gujarat Mr. L N Mathur, ED (Resource Planning & Safety), NMDC and Dr. P G Diwakar Deputy Director, NRSC, ISRO signing the MoU in the presence of Mr. P K Satpathy, Director, Production, NMDC and Dr. V K Dadhwal, Director, NRSC, ISRO at NMDC, Hyderabad recently.

Further consolidating its leadership position in domestic mining exploration, NMDC is slated to be the first company under the Ministry of Steel to use satellite based geological mapping for mineral exploration. An MoU was signed recently between NMDC and ISRO’s National Remote Sensing Centre opening up the possibilities for NMDC to use ISRO’s technology for mineral exploration and a host of other related ventures. Mr. L. N. Mathur, ED PPA documents being exchanged in presence of senior officials from THDCIL & GUVNL. (Resource Planning & Safety) and Dr. P.G. Diwakar, Deputy Director, Remote Sensing Application Area, THDC India Limited (THDCIL) entered into NRSC signed the MoU on behalf of NMDC and the Power Purchase Agreement (PPA) for Wind NRSC, respectively, in the presence of senior offi- Power Project (50 MW) with Gujarat Urja Vikas cials from both organizations and also academics Nigam Limited (GUVNL) recently at Vadodara. from Osmania University. The Agreement was signed by Mr. Ajay Mathur, Terming the MoU a historic step for NMDC, Mr. General Manager (Commercial), on behalf of THDC P. K. Satpathy, Director (Production), NMDC said India Limited (THDCIL) and Mr. K.P.Jangid, that “this will herald a new era of mining and open General Manager (Commerce) on behalf of up immense possibilities for NMDC besides ex- GUVNL. Mr. M. K. Tyagi, DGM, Mr. S.Q. Ahmed, Company Secretary from THDCIL and Smt. Sailaja ploration and this day will be a milestone in the Vachhrajani, Chief Finance Manager, Independent history of domestic mining.” He further informed Power Producer (IPP), Mr. A. N. Khambhatta, that NMDC’s core competency in mining has been Superintending Engineer (Commercial), Mr. V. T. evident since 1958 and that the same has been rec- Patel, Deputy Engineer (Commercial) from GUVNL ognized by the Ministry of Mines which has iden- were also present on this important occasion. The tified NMDC as a Nodal agency for conducting signing of Agreement was preceded by several Exploration under Sub-section (1) of Section (4) of rounds of discussions between THDCIL officials the MMDR Act 1957. “Signing of the MoU is a step and GUVNL officials.

86 KaleidOscope June, 2016