SUSTAINABILITY REPORT 2015-16

1 The Quest For A Brighter Tomorrow Contents

For over a decade, Adani Power Consequently, showcasing greater The Lighthouse has energised India and fuelled transparency, setting higher 2 (CEO Speaks) development across the nation. standards of accountability and About the Report As India’s largest private power developing newer ways to operate 6 producer, we are conscious of the responsibly, are integral to our (From the CSO’s Desk) impact we have on the country’s growth. At the heart of our goals is a progress and the day-to-day lives deep commitment to the happiness Our Story 9 of our fellow citizens. This not only of our employees and stakeholders. makes us proud but also helps shape We consistently strive to ensure a Mapping the Quest 13 a brighter tomorrow. healthy and sustainable collaboration that contributes to rapid and Organisational Scale 15 In a multi-faceted, challenging and responsible national development. increasingly interconnected world, it Significant Developments in 16 is imperative to balance the impact Considering this, we have developed FY 2015-16 of business activities. Flourishing our second Sustainability Report Stakeholder Engagement & in such a climate requires focus, around the idea of a bigger, better 23 dedication, tenacity and awareness. and brighter tomorrow. ‘QUEST’ Materiality Assessment Our understanding and respect for is a part of our journey towards 31 the environment we operate in, excellence. The term ‘QUEST’ stands Strategy for Sustainability pushes us towards a quest for the for ‘Quality, Environment Protection socio-economic well-being of the & Energy Conservation, Safety and Governance for Sustainability 35 habitat and communities we occupy. Security in Totality.’ Operations & Economics 45

Human Capital 57

Health & Safety 67

Energy and Environment 75

Community Engagement 89

Adani Group Appendices 99 The integrated value chain of Adani Group has three components: Conversion Factors 101 Resources, Logistics and Energy. Adani Power is part of the Energy vertical. About the Cover Independent Assurance Statement 102 At Adani Power, we have always endeavoured to build value in everything we do. Given that GRI Content Index 105 our operations impact social and natural capital, Resources Logistics Energy this has not always been easy. However, in Mapping with National Voluntary We are the largest coal Our Logistics business Presently, we are in the 110 importer in India. We also includes Ports, Logistics and businesses of Thermal our commitment to investors, employees and Guidelines (NVG) communities, we have channelled our innovative operate mines in India, Special Economic Zone (SEZ). Power Generation, Power Communication on Progress and Mapping Indonesia and Australia as We have a pan-India presence Transmission, Renewable strengths to approach power generation in a 111 with UN Global Compact Principles well as engage in coal trading in 10 strategic locations with Power Generation and holistic and responsible manner. across countries. We are also our Mundra Port as India’s Solar Photovoltaics Mapping with Sustainable 117 planning expansion into Oil largest commercial port. Manufacturing. We are one Our 2015-16 Sustainability Report, recognises other Development Goals (SDG) and Gas Exploration. of the largest in all our such pioneers, who explored new frontiers and Mapping with International Finance Energy businesses in India. 125 effectively introduced a new normal. Essentially, we Corporation (IFC) We are also in the business are celebrating the pioneers we wish to emulate. of city gas distribution of CNG and PNG. Glossary 126 Adani Power Limited Sustainability Report 2015-16

The Lighthouse “In the first step towards agreements, uninterrupted domestic coal Jharkhand, Chhattisgarh and Odisha to (CEO Speaks) our ultimate goal of nation supply, water availability, safety in operations connect untapped coal belts to evacuate a building through power and land acquisition for new projects. potential 300 million tonnes of coal per year. generation, we plan to These three railway projects are expected meet the energy needs Our power plant at Mundra has been to be completed by December 2017. CIL is of a growing economy by supplying power to the states of Gujarat expected to increase its production generating 20,000MW and Haryana, fulfilling its power purchase to 1 billion tonnes of coal by 2020. In by 2020. While we focus agreement commitments in the interest of FY 2015-16, CIL recorded its highest-ever on what is to be achieved, consumers, despite financial stress due to incremental increase in production and this through this report, we the change in policy in Indonesia, resulting trend is expected to continue. With this would like to establish a in an unprecedented increase in the price increase in production, our domestic coal strong connect with our of imported coal. Appellate Tribunal of supplies at Kawai and Tiroda are expected stakeholders.” Electricity (APTEL), in its order dated to benefit. 7th April 2016 held that these issues constitute Force Majeure events under the In FY 2016-17, Tiroda plant suffered a Power Purchase Agreements (PPAs) and we generation loss for over a month due to are optimistic for an early resolution of this drought conditions sweeping Maharashtra matter. for the second consecutive year. We have started the creation of an additional water Under the Indo-Bangla Friendship Treaty reservoir within the Tiroda plant to mitigate of 2010, we are developing a 1,600MW such risks. For the community, we have also power plant in state of Jharkhand to supply commenced recharging of water resources power to Bangladesh. We have obtained by de-silting and cleaning of community the Terms of Reference for environment water ponds. clearances from Ministry of Environment, Forest and Climate Change (MoEFCC) and As these projects are still in progress, the Government of India and signed an we plan to quantify water credits as in-principle Memorandum of Understanding a percentage of total surface water (MoU) with Government of Jharkhand. withdrawals in the next reporting year. After successful acquisition of our Udupi In line with the target for surface water Power Plant, we are also expanding in Udupi consumption of 2.5 m3/MWh for hinterland by 1,600MW, for which an MoU has been power plants, we are on course to achieve signed with the Government of Karnataka, the same at Tiroda and Kawai and we look with land acquisition and environmental forward to improve our performance on this clearances underway. front. Additionally, this year onwards, we target to cap sea water drawl at Vneet S. Jaain Issues of rail connectivity and logistics 9.5 m3/MWh at Mundra which uses sea for domestic coal are being addressed by water based FGD and at 6 m3/MWh at Udupi Coal India Limited (CIL) in states such as which uses lime based FGD. Dear Stakeholders, growth opportunities in the power sector. Further, the Government has continuously It is my pleasure to present the second emphasised ensuring electricity availability Sustainability Report of Adani Power for all. Keeping this guidance in mind, we Critical aspects continue to be Limited. The report discloses our hope to build on our existing asset base sustainability performance on triple bottom of 10,480MW and reach 20,000MW of better returns to shareholders, line for FY 2015-16. As India’s largest installed capacity by year 2020. private power producer, we acknowledge fulfilling our obligations our responsibility in achieving sustainable During the reporting year, we generated growth. This report is a testimony of our 69.39 billion units of power, an increase of under power sale agreements, efforts in doing so during the reporting year, 27% over the previous year. We are pleased 27% and also presents a way forward. to report a consolidated net profit of `4.88 billion for the financial year. We During the reporting uninterrupted domestic coal With the Indian Government driving focus contribute nearly 15% of India’s total year, we generated on domestic manufacturing through its coal-based power generation capacity in 69.39 billion units of supply, water availability, safety ‘Make in India’ initiative, we are sure that the the private sector. Critical aspects continue power, an increase demand for power will be led by industrial to be better returns to shareholders, of 27% over the in operations and land acquisition consumers and this will set the tone for fulfilling our obligations under power sale previous year. for new projects. 2 3 Adani Power Limited Sustainability Report 2015-16

We contribute nearly 15% of India’s total coal-based power generation capacity in the private sector.

Safety remains a major concern and a gives us a competitive advantage to National Action Plan on Climate Change. guidelines and our own treatment of ash material aspect for us. We are saddened to cultivate leaderships within the organisation Accordingly, we are exploring efficient as a useful resource, we have installed report 1 fatality at Udupi Plant during the to meet our growth plans. 800MW ultra-supercritical technology state-of-the-art ash disposal and bagging reporting year and a mishap units to fulfil our expansion goals. Our technologies. Our efforts have led to on 20th April 2016, which resulted in a We continue to partner with Adani direct GHG emissions sustained at 0.87 increased ash utilisation of 72.7% in the

loss of 8 lives at the Mundra plant. Such Foundation to implement Corporate tCO2/MWh despite adding two sub-critical reporting year compared with 63.7% during incidents are reminders that our business Social Responsibility initiatives under units of 600MW. We are also comforted the previous year. Further actions to improve involves safety risks which need strong the core areas of education, sustainable that dedicated efforts are underway within our ash utilisation are detailed in this report. mechanisms for ensuring safer working livelihood, community healthcare and rural our Group to incorporate renewables as a conditions. As we join the bereaved families infrastructure development. During the year, significant portfolio. While we were the first Our sustainability journey so far has been in their grief, we aggressively renew our we initiated programs for the communities to commission supercritical boilers in India, a path of self-discovery and an enriching efforts towards eliminating any such around our Udupi plant. We aim to reach in the future, we will prefer more efficient experience to achieve higher standards in possibility in the future by engaging DuPont out to communities around our upcoming units of 800MW and 1,000MW capacity reporting. I express my sincere gratitude to as our partner to support our ‘Zero Harm’ projects as well. with ultra-supercritical technology. Our all those who contributed in this journey. We objective. To begin with, we are taking group has also forayed aggressively in the look forward to your continued feedback to actions for quick win opportunities at Climate change concerns are pushing for renewable energy sector with solar power improve our sustainability performance. operating locations, followed by a safety innovation and upgradation of technology projects and manufacturing of solar PV cells culture transformation journey within the for power plants. The Intended Nationally and modules. With the addition of Bitta Jai Hind next 2-3 years. Determined Contribution from our Solar Plant of 40MWp in Adani Power, we Government has been submitted to United have also contributed to our group strategy. Vneet S. Jaain Having earned the 76th position among Nations Framework Convention on Climate With the addition of Bitta Chief Executive Officer 700 companies in the Great Place to Work Change (UNFCCC) where India intends to Solar Plant of 40MWp in There has been a thrust by our Government 2.5 m3/MWh survey FY 2015-16, we aim to live up to these reduce emissions intensity of its GDP by 33- Adani Power, we have also towards effective ash utilisation from power target for surface standards with renewed vigour. Much of our 35% by 2030 from the 2005 levels. Further, contributed to our group plants, primarily within a 300km radius water consumption. strength is attributable to our employees, the Government has set a target of 175GW strategy. from the plants. In line with the relevant with an average age of 33.81 years, which of renewables by FY 2021-22, as per the

4 5 Adani Power Limited Sustainability Report 2015-16

About the Report We have implemented The report has been developed by Adani performance data is collected by employing (From the CSO’s Desk) an IT-enabled platform to Power Limited (APL) having its corporate different approaches, including direct capture the sustainability office at Ahmedabad and operating plant online and offline measurement. Our performance from our at Mundra, Gujarat. The report covers ERP system is used for collecting data on ERP system and other our subsidiary companies Adani Power material purchase and consumption, plant management systems Maharashtra Limited (APML), at Tiroda operations, employees and workforce, waste internal and external to in Maharashtra, Adani Power Rajasthan generation and disposal etc. whereas other Adani Power Limited. Limited (APRL) at Kawai in Rajasthan, Udupi material data like emissions, safety statistics, Power Corporation Limited (UPCL) at Udupi trainings, grievances etc. are captured and in Karnataka. For this reporting year, in the aggregated at site level after due reporting boundary, we have included our validation. This report also adds calculations recently acquired coastal based Udupi and assumptions, and other relevant Power Plant of 1,200MW and the merged non-quantitative disclosures required 40MWp Bitta Solar Power Plant located in by GRI-G4. Gujarat, near Mundra. We have excluded reporting of sustainability There were no significant changes in performance of our coal trading business the Company ownership during as we source coal through various FY 2015-16. However, there were minor partners. We are working on identifying the changes in supply chain due to material aspects related to coal trading and operational requirement. are committed to report the same in our next report. For sustainability performance, management and reporting, we continue Data relevant to key performance indicators to be guided by our Apex Sustainability for plant operations are collated, internally Committee (ASC) at corporate office which reported and reviewed at different levels Santosh Kumar Singh is chaired by the CEO and a Sustainability at operating plants and corporate office. Reporting Committee (SRC) with cross Frequency of internal reporting and review Dear Readers, This year, we analysed the global functional members at all operating of the different data sets vary as per megatrends to determine the sustainability sites and at the corporate office. Our criticality of the data for operations. Internal This is our second Sustainability Report. context of our power business and in sustainability performance is monitored on a review is carried out by the Site Review We consider Through this report we wish to highlight the process identified rapid depletion of quarterly basis and results are presented by Technique (SRT) both at corporate and sites environmental our Economic, Social and Environment natural resources, energy security, waste the CSO and discussed at the Board level. by the respective SRT. As a policy we seek sustainability performance for the FY 2015-16. Our management and climate change. external assurance to disclosures in public as paramount to Quest manifests itself in our vision for Based on the megatrends and stakeholder We have implemented an IT-enabled domain and we have retained DNV GL our operations since sustainability, the framework and the engagement inputs we have also included platform to capture the sustainability Business Assurance India Private Limited to power plants are practices followed across the functions two new stakeholders i.e. Investors and performance from our ERP system and other carry out an independent assurance of our generally known to with the impact assessed in terms of Customers. Further, considering the management systems internal and external report based on AA1000AS. create environmental performance of our company. Our stakeholder inputs, we revisited our material to Adani Power Limited. Sustainability impact across strategy for sustainability includes risk aspects and the aspect boundary within and its lifecycle. management, knowledge sharing, business outside the organisation to map our report processes, integrating management with National Voluntary Guidelines (NVG) systems and ensuring quality initiatives on Social, Environmental and Economic across our facilities. Responsibilities by Ministry of Corporate For sustainability performance, management Affairs, Government of India. Besides, we are The report is developed as per the Global also mapping our report with Sustainable and reporting, we continue to be guided by Reporting Initiative’s (GRI) G4 Guidelines Development Goals (SDG) and UN Global ‘In Accordance’ Comprehensive option Compact Principles. Our materiality and our Apex Sustainability Committee (ASC) at and includes disclosures on our business management disclosures in this report practices across economic, environmental also address relevant requirements of IFC and social performance. The report content performance standards for Environment corporate office which is chaired by the CEO has been guided by Sustainability Context, and Social Sustainability and mapped Stakeholder Inclusiveness, Materiality with the same. We shall continue to and a Sustainability Reporting Committee and Completeness. revisit our materiality time to time and enlarge reporting scope and mapping with (SRC) with cross functional members at all We intend to publish our Sustainability other standards and UN Global Compact Report on an annual basis. Principles on issues material to us. operating sites and at the corporate office. 6 7 Adani Power Limited Sustainability Report 2015-16

Our direct GHG emissions

sustained at 0.87 tCO2/MWh despite adding two sub-critical units of 600MW.

During the internal review of FY 2014-15 Within our focus areas of Education, data compared to FY 2015-16 we observed Community Health, Sustainable 50,000 youth that there were minor aggregation errors Livelihood and Rural Infrastructure Guidance provided related to Emissions; we have restated Development, we are extending our for superior career these indicators. The restatement does Corporate Social Responsibility (CSR) opportunities. not have any significant impact on the activities to provide vocational trainings to reported sustainability performance. local youth and induct local businesses in

The tonnes of SO2 emitted during the vicinity of our operations especially FY 2014-15 was 34,433 MT and tonnes of at Udupi and Godda. NOx emissions were 1,35,000 MT. Under ‘Disha’ we offer counselling to Report Coverage graduate students towards higher We consider environmental sustainability education. Our guidance in career as paramount to our operations since opportunities has reached 50,000 youth. power plants are generally known to create We initiated ‘Udaan’ which provided an environmental impact across its lifecycle. opportunity for over 31,000 students We also collaborate with marine biologists in the reporting year, to visit our power to study and monitor the impact of our plants encouraging them to dream big in operations, take measures to develop and engineering and technology. Our healthcare implement Environment Management programs for local communities now System, certified for ISO 14001 at all include 12 clinics treating over 5,000 operating locations. Beyond implementation patients each month. of environment management plan as per the EIA, we work on afforestation and offset In order to strengthen our human resource habitat creation wherever forest clearances capabilities to prepare for upcoming are needed. We recognise the relationship projects, we have developed a Centre of between our business and ecosystem Excellence for Human Resources to offer services provided by forests, grasslands and support in creation of talent pipeline, mangroves. Positive impacts on biodiversity employee engagement, learning and Our Legacy around our operations are also material to development. Our Group has partnered Mapping the Quest us. As our 1,600MW greenfield project at with Massachusetts Institute of Technology, Godda, Jharkhand is at inception stage, we USA (MIT) which offers access to MIT’s vast Registration and Other Details are in the process of land acquisition and technical resources. environment clearances from MoEFCC. Organisation Scale We invite you to read our report and Revenue Details Marine ecosystems and impact on appreciate your feedback to help us improve community’s livelihood remains a focus our report. You may write to us on Significant Developments in FY 2015-16 area for our coastal plants at Mundra and [email protected]. Power Sales Udupi. We are continuing rejuvenation of mangroves and collaboration with fisher folk Santosh Kumar Singh Coal Production Outlook to understand their concerns and respond Chief Sustainability Officer Policy Advocacy with necessary support. Risk Management 8 9 Adani Power Limited Sustainability Report 2015-16

Adani Power Limited is India’s largest private sector power producer. We began our journey in 2006. From the first day of commissioning the first 330MW unit in Mundra, we have now surged to 10,480MW across five locations, including a solar plant at Bitta. We are focused on achieving sustainable growth and becoming a globally-admired leader in integrated infrastructure businesses with a deep commitment to nation building. We are Passionate, Result-oriented, Integrated, Dedicated and Entrepreneurial. It has been our proactive concern to retain focus on ensuring minimum impact with maximum output as we set sail towards a 20,000MW target by 2020.

10 11 Adani Power Limited Sustainability Report 2015-16

Our Legacy Motivated to support India’s growing We aim to be known for offering value to Mapping The Kawai (Rajasthan) infrastructure and economy, Adani Power our stakeholders while maintaining the Quest APRL Limited has built a significantly large scale of our ambitions, speed of execution Operating Capacity Planned Expansion We are conscious that portfolio in thermal power generation. Our and quality of operations and responding 1,320MW 1,600MW energy remains a critical Mundra power plant is among the world’s to challenges in a timely and effective IMS, EnMS, requirement for the top 10 largest single-location thermal power manner. We have deep faith in the capability 5S, 5S-JUSE country’s economic and plants with a capacity of 4,620MW. of our employees and other stakeholders infrastructure development and consistently empower them to Our Presence & and are therefore proud of Besides scaling growth, Adani Power deliver results that matter to our business Management Systems our sustained endeavours Limited has been proactive and conscious and to the nation. We interact with our in contributing positively of the environmental impact caused by coal- stakeholders across multiple touchpoints towards nation building. fired power generation. This has motivated and integrate their insights into our Surguja (Chhattisgarh) Bitta Solar (Gujarat) us to bring 75% of our operations under blueprint for sustainable growth. To ensure Planned Project supercritical thermal generation technology. all-round success, we have demonstrated Operating Capacity 600MW We are conscious that energy remains commitment towards implementing the 40MWp a critical requirement for the country’s greatest standards of sustainability and IMS economic and infrastructure development commitment to society. and are therefore proud of our sustained endeavours in contributing positively towards nation building. Mundra (Gujarat)

APL Operating Capacity 4,620MW APML 3,300MW power plant IMS, EnMS, at Tiroda, Maharashtra. 5S, 5S-JUSE Godda (Jharkhand)

Planned Projects 1,600MW Bhadreswar (Gujarat)

Planned Project 3,300MW Tiroda (Maharashtra)

APML Operating Capacity Dahej (Gujarat) 3,300MW IMS, EnMS, Planned Project 5S, 5S-JUSE 2,640MW

Pench (Madhya Pradesh) Udupi (Karnataka)

Planned Project UPCL 1,320MW Operating Capacity Planned Expansion 1,200MW 1,600MW IMS, EnMS

Integrated Energy Management 5S, Operating Power Plants Management System (EnMS) 5S-JUSE (Reporting Boundary System (IMS) ISO 50001 ISO 9001, ISO 14001, For FY 2015-16) OHSAS 18001 Planned Project Note: Map not to scale. For representation purposes only. 12 13 Adani Power Limited Sustainability Report 2015-16

Registration and Organisational Other Details Scale

Principal Business Activities of the Company The number of permanent employees on the Company roll was 2,715 and All business activities contributing 10% or more of the total turnover of the company: contract employees was 7,164 as on 31st March 2016. The average annual increase in salaries of employees other than managerial personnel for FY 2015-16 Table 1: Principal Business Activities was 13.59%, driven by the achievement of annual corporate goals as well as the overall business, financial and operational performance of the Company. Name and description of NIC Code of the % to total turnover Main Product / Services Product / Services of the Company Table 3: Organisational Scale Power Generation 35,102 84.16% Particulars Unit FY 2014-15 FY 2015-16 % Variance Wholesale Trade Service – Coal Trading 46,610 15.84% Total Number of Operations No. 3 5 Market Capitalisation `Million 1,35,842 1,15,521 (15.0) Adani Power Limited has total 6 (direct and indirect) subsidiaries as on 31st March 2016. Total Revenue `Million 1,90,651 2,54,333 33.4 Table 2: List of Subsidiaries Total Debt `Million 4,34,990 4,66,771 7.3 Sr. Name and address Holding/ % of shares Applicable No. of the Company Subsidiary held section Total Equity `Million 57,246 73,765 28.9 1. Adani Power Maharashtra Limited Subsidiary 100% 2(87) Consolidated Net Profit `Million (8,156.3) 4,880 2. Adani Power Rajasthan Limited Subsidiary 100% 2(87) Employees by Category No. 2,481 2,715 9.5 3. Udupi Power Corporation Limited Subsidiary 100% 2(87) Contract Workers No. 8,866 7,164 (19.2) 4. Adani Power (Karnataka) Limited Subsidiary 100% 2(87) Power Generation MUs 54,656 69,395 27.0 5. Adani Power Resources Limited Subsidiary 100%* 2(87) We abide by the law of the land for all applicable statutory and regulatory 6. Adani Power (Jharkhand) Limited Subsidiary 100% 2(87) requirements. Currently, there are no collective bargaining agreements with our *50% shares are held by the Company, 30% shares are held by Adani Power Maharashtra Limited and 20% shares are held by Adani Power workforce for the operating power plants including newly-acquired operations. Rajasthan Limited and so the same is classified as subsidiary as per Section 2(87) (ii) of Companies Act, 2013. However, our engagement activities provide sufficient avenues to our employees as well as contract workers to voice their opinions.

APL Mundra: One of the largest single location thermal power plants in the world.

14 15 Adani Power Limited Sustainability Report 2015-16

Revenue Power Sales Volumes of electricity transacted in the This has gone a long way in mitigating the short-term bilateral market and power risk of unsold capacity and falling realisations exchanges have increased considerably in in short-term markets. We are actively Table 4: Economic Performance the past two years due to the commissioning pursuing cross-border opportunities for Particulars FY 2014-15 FY 2015-16 % Variance of new merchant capacities of around either supply of power from India or the `Million `Million 15,000MW. Overall in FY 2015-16, the spot set-up of generation projects in Economic Value Generated 1,90,651 2,54,334 33.4 power market remained vibrant with over neighbouring countries. The first such - Revenue from Operations 1,88,237 2,52,316 34.0 34 billion units traded in power exchange, project is envisaged in Godda, Jharkhand - Other Income 2,414 2,018 (16.4) 21% over 28 billion units traded in the last with a capacity of 1,600MW to supply Economic Value Distributed 1,85,279 2,26,428 22.2 financial year. Average price realised over power to Bangladesh under a firm PPA. - Fuel Cost 1,16,137 1,47,263 26.8 electricity transacted in power exchanges Going ahead, it is imperative for short-term - Purchase of Stock-in-Trade 2,906 1,896 (34.8) declined by 20% in the reporting year to markets to play a larger and more important - Other Expenses (Including Community Investment) 14,395 14,350 (0.31) about `2.46/unit compared with `3.07/unit role. Hence, as the short-term and power - Employee wages and benefits 3,206 3,278 2.24 in the last financial year. This was mainly on exchange market matures, we are keeping - Finance Costs 48,635 59,642 22.6 account of an increase in merchant capacity, a close watch on regulations and guidelines Economic Value Retained 5,372 27,906 419 which surpassed the increase in overall issued from time to time and are active in 20% demand growth. We have strategically sold shaping this emerging market in the country. Decline in average almost 85% of the net capacity under price realised long-term PPAs. Envisaging short-term Also, on account of the APTEL order on over electricity market trends, we have contracted around the Compensation Tariff (CT) matter, the transacted in half of the available merchant capacity Company has recognised CT considering the MW MW power exchanges. under medium-term PPAs of 3-5 years. same as relief under force majeure under Capacity respective PPAs. FY 2014-15 FY 2015-16 UPCL 1,200MW power plant at Udipi, Karnataka. n n Units Units 2015-16 Sales

Significant • Demerger of Power Undertaking of Limited (UPCL) by purchasing 100% Developments in Adani Enterprises Limited with the equity shares and preference shares at Company: As per the approved scheme an aggregate cost of `2,256.03 crores. FY 2015-16 of arrangement, the Solar Power Consequently, UPCL has become the Undertaking of Adani Enterprises Limited wholly owned subsidiary of Adani Power Successfully secured (AEL) has been merged into Adani w.e.f. 20th April 2015. the coal block at Jitpur Power Limited along with its assets and in the state of Jharkhand liabilities from the appointed date of • Adani Power (Jharkhand) Limited (APJL) and executed the coal 1st April 2015. The Scheme, with effect was incorporated on 18th December mine development and from 1st April 2015, inter alia, provided 2015 as wholly owned subsidiary of the production agreement for the demerger of the solar power Company. with the Government undertaking of AEL comprising the Coal Coal India (CIL) is the single largest producer Following are the initiatives undertaken by of India and is expected undertaking, businesses, activities, • The Company had successfully secured Production of dry fuel in the world and the government the Government of India to address coal to commence operations, assets (moveable and the coal block at Jitpur in the state of has set a target of doubling its production availability issues: commercial production in immoveable) and liabilities pertaining to Jharkhand and executed the coal mine Outlook to 1 billion tonnes by 2020. During the same February, 2019. the Bitta Solar Plant and the shareholding development and production agreement year, the CIL offtake was 532 MT, resulting • In June 2013, after several deliberations, of AEL into the Company. with the Government of India in the in 8.8% growth over the previous year. The the Cabinet Committee on Economic previous year. The Company has already Government is well aware of coal availability Affairs acknowledged the hardships • Acquisition of Udupi Power Corporation initiated the process for development challenges and we are hopeful that it will faced by power plants that are forced Limited (UPCL): During the year, Adani of the said mine and is expected to 532 MT take positive steps to safeguard projects to meet their requirements through Power Limited has completed the commence commercial production in FY 2015-16 CIL based on domestic coal supply. Going ahead, costlier imported coal supplies, due to acquisition of Udupi Power Corporation February, 2019. Offtake. implementation of these decisions shall be the shortage of domestic coal supplies. a key factor affecting project performance. Accordingly, it approved coal supplies to a 16 17 Adani Power Limited Sustainability Report 2015-16

The Ministry of Coal (MoC) capacity of 76,501MW for projects having • The Government of India has also Identifying has allocated 37 coal linkages and a capacity of 4,660MW for formed an Inter-ministerial Committee to Risks and blocks to 17 state utilities projects not having linkages. Vide this formulate the mechanism, technicalities through the state decision, the higher cost of imported coal and procedures for implementing auction Opportunities dispensation route. The is to be considered for pass-through as of linkages. Further, in order to reduce total value generated by decided by the appropriate regulatory transportation losses borne by the Figure 1: Risk Management Governance Structure the recent auction and commissions. This also prompted developers on account of vast distances allotment of captive coal amendments to the National Coal between the mine and plant, the blocks is estimated at Distribution Policy (NCDP). Government has also initiated an exercise `4,000 billion. on rationalisation of linkages, whereby • Following cancellation of 204 coal the logistic losses will be minimised and blocks vide the judgment passed by efficiency will be improved in the entire Board-level Risk Management the Hon’ble Supreme Court, the Central value chain. Committee Government promulgated the Coal Mines (Special Provisions) Act, 2015 to • States such as Jharkhand, Chhattisgarh reallocate these coal blocks for various and Odisha have also helped fast-track Board Committee guides Steering Committee reports Risk Steering Committee performance to Board-level specified end uses. A total of 67 coal clearances for three critical rail lines in Committee mines have been allocated through untapped coal-rich belts to evacuate auction and allotment out of 204 coal a potential 300 million tonnes of coal blocks cancelled by the Supreme Court. a year. These three railway projects Risk Steering The Ministry of Coal (MoC) has allocated worth `75 billion are now expected to Committee 37 coal blocks to 17 state utilities through be completed before their scheduled at Management the state dispensation route. The total deadline of December, 2017. Level value generated by the recent auction and allotment of captive coal blocks is We are continuously monitoring estimated at `4,000 billion. developments on these fronts and taking Steering Committee provides guidance on top priority appropriate steps to align ourselves with the risks and their mitigation plan coal regulatory environment. CRO and Project Directors report prioritised risks to Steering Committee Project Chief Director- Risk Officer Project Locations Policy We participate in creating valuable membership in key associations, either (CRO) Advocacy exchange through industry bodies which directly or through our Group companies help and guide the sector in influencing (Table 5): public and regulatory policy in a responsible manner. By engaging with trade and We view the membership of these bodies Site Risk Representative Project Control industry associations, we advocate matters as strategic. Through these bodies, we - Operating Locations Manager impacting energy security, including but have represented various issues of concern not limited to power sale, coal availability relating to power sales and despatch, and logistics, financial health of DISCOMS, environmental norms, coal supply and Department Risk transmission evacuation constraints, logistics before authorities such as the Representative (HODs) Risk Analyst clearances, environmental aspects related Ministry of Power, Ministry of Environment, to power plants, financing, taxation and Forests and Climate Change, Central fiscal benefits. The participation is through Electricity Authority and Coal India Limited. Our risk management The key objective of the risk management to comprehensive mitigation strategies. framework is based on process is to add value to identified key An internal system has been developed to Table 5: Our Memberships proactive identification, stakeholders through early identification address this need. Association/Industry Body Positions Held assessment and and mitigation of risks. Our risk Association of Power Producers (APP) Member and Chairman mitigation measures to management framework is based on A standard 3–step approach has been reduce the potential proactive identification, assessment and defined for risk management: Confederation of Indian Industry (CII) Member negative impact. mitigation measures to reduce the potential Federation of Indian Chamber of Commerce and Industry (FICCI) Member and Co-Chairman of FICCI Power Committee negative impact. The aim of this framework 1) Risk Identification is to achieve key business objectives both in 2) Risk Assessment and Prioritisation Independent Power Producers Association of India (IPPAI) Member the short and long-term while maintaining 3) Risk Mitigation Gujarat Chamber of Commerce and Industry (GCCI) Member a competitive advantage. Once identified, Ahmedabad Management Association (AMA) Member the risks are prioritised and later subjected

18 19 Adani Power Limited Sustainability Report 2015-16

Lead indicators highlight Risk Identification: qualitative in nature and will trigger the risk An IT-enabled risk register • Controllability – Gives a measure of • Review Compliance to Risk Policy potential risks before All associated frameworks (risk assessment and mitigation processes. with a robust governance organisation’s control over risk mitigation occurrence, thereby categorisation and identification), guidelines structure has been put in • Resolve bottlenecks to mitigate risk providing adequate time and practices (risk assessment, prioritisation Risk Assessment and Prioritisation: place for Risk Management. Risk Mitigation: to prioritise and develop and mitigation) and governance structure For risks identified, the Gross Risk Rating is A robust governance structure has • Advise the Board of Directors on risk mitigation strategies. have been detailed out in the “Risk determined based on two factors: been instilled to ensure the efficacy of tolerance and appetite Management Charter” and approved by • Impact of occurrence – Gauge the level this approach with clarity in roles and the Board of Directors. Each identified risk of impact on business responsibilities. The multi-level responsibility • Prioritise risk from stations/departments has a lead and a lag indictor defined. Lead is defined at each level right from the site indicators highlight potential risks before • Likelihood – Determine probability of champion to the APL management and • Track mitigation plan and escalate to occurrence, thereby providing adequate repeat occurrence leadership. steering committee time to prioritise and develop mitigation strategies. Lag indicators, on the other hand, Product of likelihood and impact gives risk Risk Management Process: • Prepare Steering Committee document indicate a risk once it has already occurred, premium which is an indicator of severity An IT-enabled risk register with a robust and coordinate meeting allowing for speedy escalation of risk to of risk. governance structure has been put in place senior management and steps to mitigate for Risk Management. • Review and update risk list threats posed by the identified risk. In order Risks are further prioritised based on to ensure the efficacy of both lead and lag two additional parameters: Review Mechanism: • Track mitigation plan and share status indicators, clear risk indicator thresholds • Proximity – Assess whether risk is likely to A review mechanism has been formulated update with Chief Risk Officer (CRO) have been defined wherever feasible. manifest over the short or long-term for a periodic review of compliance to the every month These thresholds are both quantitative and risk policy and for tracking of mitigation plans. This involves the following steps: • Share Risk Review document with CRO

APRL 1,320MW power plant at Kawai, Rajasthan.

20 21 Adani Power Limited Sustainability Report 2015-16

Each assessment Key Risks and Opportunities: • Dependence on fossil fuels: This has parameter such as Once identified, the risk is documented in aggravated environmental concerns. likelihood, impact, proximity the risk portal. Each assessment parameter and controllability is such as likelihood, impact, proximity and • Volatility in price and availability of coal. assigned a rating to ensure controllability is assigned a rating to ensure automated prioritisation. automated prioritisation. Risks have been • Poor financial health of discoms: This identified on two levels: those applicable has been tackled with appropriate to the sector and those specific to the contractual measures. company. The risks and concerns have been defined and an approach for mitigation has To combat price volatility for imported been developed to address them. Some of coal, we are looking at executing forward the risks are: contracts and engaging in forex hedging. To address reduced availability of domestic • Shortage in the supply of coal: Domestic coal, we are importing coal and filing coal supply remains a concern as supply petitions before appropriate regulatory falls short of requirements. Imported coal commissions based on the Cabinet has its own logistical and price volatility Committee on Economic Affairs’ (CCEA) challenges. decision to allow pass-through of the additional cost of imported coal. • Infrastructure bottlenecks: Evacuation of coal being delayed due to infrastructure To implement Central Electricity Regulatory bottlenecks. Commission (CERC’s) compensatory tariff order, we are taking necessary • Utilisation and congestion on key routes actions and providing requisite support of Indian Railways: This could lead to in carrying the process forward. We are risks with regard to availability of rakes/ making representations before appropriate wagons and hurt domestic supply as well regulatory authorities for allocation of as import of coal. alternate coal blocks and the conversion of tapering linkage to long-term linkage. • Delays in land acquisition and environmental clearances: This could impede project execution in India’s power generation segment.

Stakeholder Engagement Materiality Assessment Materiality Matrix 22 23 Adani Power Limited Sustainability Report 2015-16

Stakeholder Engaging with stakeholders and responding relevant, the engagement methodology and Engagement to their expectations and concerns has topics were customised depending on the helped us identify the critical issues. stakeholders and the stakeholder concerns obtained through various engagement Our stakeholders were prioritised based on methods. The feedback from stakeholders how we impact them and how they affect was sought through direct interactions in our business. We have identified stakeholder the form of an open forum, questionnaires, In order to make the groups relevant to our business, based teleconferences and one-on-one stakeholder engagement on the position they hold in the upstream interactions. Visits were also conducted to process more effective and and downstream process as well as their meet local community representatives to relevant, the engagement partnerships in the internal and external understand their expectations and concerns methodology and environment. We engage with stakeholders at all five locations. While we engage with topics were customised to understand their concerns and priorities all our important stakeholders frequently depending on the and use those inputs for decision-making through various media, for the development stakeholders and the and forming processes. of our FY 2015-16 Sustainability Report, stakeholder concerns we did not specifically engage with obtained through various In order to make the stakeholder stakeholders. It was part of our regular engagement methods. engagement process more effective and engagement.

Materiality has been the cornerstone in defining the course of action.

24 25 Adani Power Limited Sustainability Report 2015-16

The table below summarises the engagement method, key concerns, our response and frequency of engagement during the Materiality It is our second sustainability report and we Material issues are defined as those issues reporting period. Assessment have implemented a few learnings from the which are of the highest concern to the first year of reporting and the subsequent business and to stakeholders. They are Table 6: List of Identifed Stakeholders and Engagement Details feedback from the sustainability audit, defined and assessed through the processes Frequency of materiality assessment and stakeholder of risk management and stakeholder Engagement Methods Key Concerns Our Response Engagement interactions. We have added information engagement. Materiality has been the Employees to that effect and we continue to work cornerstone in defining the course of action, Direct interaction, Feedback Work Environment, Health and Initiatives to improve work Ongoing towards developing systems to capture and therefore a structured approach and questionnaire, Newsletter, magazines Safety, Energy Efficiency, Talent environment, Safety management additional information and data for greater methodology was adopted for internal and emails, Employee engagement Management systems, Energy efficiency initiatives, transparency in the future. assessment of material issues in order to events Employee training and development identify priorities. Contractual Workforce Open forum, Interviews Work environment, Health and Safety, Initiatives to improve work Ongoing Materiality assessment was carried out in three stages as follows: Training and skill development, environment, Safety trainings and Grievance handling promotional events, Grievance Stage 1 Stage 2 Stage 3 redressal mechanism Local Communities Intended at reviewing and Aimed at filtering and shortlisting Involved engagement of the Direct interaction with project Water availability, Local employment, Infrastructure and sanitation Regular and receiving inputs: issues to make them more relevant following two groups for the beneficiaries and community based School education, Community related projects, Local hiring where need-based to our operations. This involved the purposes of rating these 20 organisations, Interviews with local healthcare facilities, Vocational skill possible, Woman empowerment 1. Aspect from GRI-G4 and Sector following: shortlisted issues and receiving community representatives development programmes, Education programmes including adoption of Government Disclosures from Electric Utility input for identification of schools, computer literacy and Sector 1. A review of business risks additional material issues: teacher orientation, Community identified through the health programmes, Mobile Health 2. Material Issues identified in Company’s risk management 1. Functional heads and senior Care Units, Livelihood generation peers’ sustainability reports in framework management representatives in programmes, Local hiring where the sector the organisation possible 2. Sustainability risks identified Government / Regulatory 3. Review of the value chain by top management, including 2. Stakeholders including Direct interaction on a case-to-case Compliance, revenue & taxes, Compliance monitoring and Regular and impact of our operations the CEO and the CSO at the employees representing mainly basis, policy advocacy through community development. management, payment of statutory need-based Corporate Office, as well as middle and junior management industry bodies, response to levies, submission of reports and 4. Company policies and reports in Station Heads of all operating categories from all functions at information sought, routine filing other related information, CSR of reports, regulatory audits and initiatives the public domain power plants operating power plants inspections Investor A comprehensive list of issues Based on inputs from the above- Investor meets, AGMs, meeting Company’s Sustainability Prudent financial management Quarterly was developed as a result of this mentioned sources, a list of 20 key with bankers and other financial performance, growth opportunities, system and reporting. basis and on exercise. material issues was shortlisted for institutions, periodic declaration of debt servicing specific need- Adani Power Limited. results based Customer Direct communication with existing Plant availability, transmission Power generation planning and Regular and and new customers through various availability, forced outages, scheduling, timely and proactive need-based TG Floor of one of the media, binding agreements including reconciliation of accounts, communication on reconciliation and supercritical units. PPAs, through power exchanges settlements including change in law settlements, responses to queries, proactive settlements Media & NGO Telephone interviews, In-person Local community development, Investment in Education Issue-based interviews, Regulatory Authorities, Health and Safety, Legal compliances, Infrastructure, Integration of Telephonic Interviews, Personal Environment protection, Health and management systems including Interviews Safety, Ash management environmental, energy and OH&S, Best available technology implementation, Compliance with applicable regulations, Initiatives for improvement in ash utilisation Vendors (Suppliers and Contractors) On-boarding process, Site visits Timelines for payments Payment cycle changed from Regular to manufacturing facilities for two days in a week, to daily, compliance monitoring, Regular Implementation of IT-enabled one-on-one interaction for payment systems compliance monitoring 26 27 Adani Power Limited Sustainability Report 2015-16

This assessment led to the identification of specific issues in the short, medium and long-term strategic areas, as well as site Interpretations of Aspect Boundary at the corporate office in Ahmedabad as specific operational challenges. A brief description of aspects identified for our business is provided as follows: Our internal aspect boundary includes the well as employees and contract workforce plant boundary of the Company, Adani at the above-mentioned entities. The Table 7: List of Material Aspects with Boundary Classification Power Limited at Mundra as well as its external aspect boundary includes external Aspect Boundary solar plant at Bitta, Gujarat, its subsidiaries impact areas/stakeholders in our value Aspect & Topics Adani Power Maharashtra Ltd.’s plant at chain including upstream and downstream External Internal Tiroda, Maharashtra, Adani Power Rajasthan value chain partners, business partners, Compliance – (Environment, Labour, Human Government, Investors, Community, Company, Subsidiaries, Employees, Ltd.’s plant at Kawai, Rajasthan and Udupi vendors, Government agencies and local Rights, Products, Project Related etc.) Vendors, Customers Contract Workforce Power Corporation Ltd.’s plant at Udupi, communities at these locations. Grievance (Environment, Human Rights, Supply Community, Investors, Vendors Employees, Contract Workforce Karnataka and includes the employees Chain, Contract labour, Employee, Community etc.)

Fuel Management – (Coal & Oil) - Company, Subsidiaries (excluding Solar) Our aspect boundary includes Economic Performance (including PPA and Shareholders, Investors Company, Subsidiaries our value chain partners also. sales) The Mundra-Mohindergarh HVDC Line operated by Adani Plant Efficiency (PLF, Availability, SHR, Aux Customers Company, Subsidiaries Transmission Ltd. Power) Land Acquisition Community Company, Subsidiaries Supply Chain Management (Procurement Vendors Company, Subsidiaries, Contract Practices, Supply chain assessment - Workforce Environment, Labour, Human Rights, Society) including Contract Management – O&M and Projects Asset Security & Protection - Company, Subsidiaries Water Management Community, Government (as an owner Company, Subsidiaries (including Solar) and Supplier of Water) Emissions (Air, GHG) Community Company, Subsidiaries (excluding Solar) Waste Management – Ash, Gypsum, Hazardous Community, Vendors Company, Subsidiaries (excluding Solar) and non-hazardous waste Biodiversity Community - Emergency Preparedness and Disaster Community, Government Company, Subsidiaries Management A. O & M Material – input (Associated Vendors Company, Subsidiaries Chemicals, Limestone for FGD, Spares, Paints, other consumables) B. Project Material – Plant Machinery, Vendors Company, Subsidiaries Construction materials, Occupational Health and Safety - Employee and Community Employees, Contract Workforce Contract Workforce Community Engagement & Development Community, Government Company, Subsidiaries (Indirect economic impact) Employment Community Company, Subsidiaries Labour Relations/ IR Company, Subsidiaries, Contract Workforce Human Rights - Forced Labour, Child Labour, - Company, Subsidiaries, Employees, Working Conditions Contract Workforce Fair Treatment and Equal Opportunity - Company, Subsidiaries, Employees, Contract Workforce Indigenous Rights Indigenous Community - Anti-Corruption - Company, Subsidiaries Cultural Heritage Community, Government - Security Practices - Company, Subsidiaries Competency Management - Employees, Contract Workforce

28 29 Adani Power Limited Sustainability Report 2015-16

Materiality Matrix

High 6

5

4

3 SIGNIFICANCE

2

1

Low 0 0 1 2 3 4 5 6 High RELEVANCE

Economic Air/GHG Emissions, Labour Relations/IR Employment Performance, Plant Efficiency, Fuel Management, Community Water Engagement Management, & Development Compliance, OHS

Waste Management, Working Conditions, Indigenous Rights Contract Input Material, Stakeholder Grievance, Management Biodiversity, Fair Treatment and Power Purchase Equal Opportunity, Arrangements Child Labour, Forced Labour

Project Material, Contract Management, Competency Innovation (R&D) Management Systems Emergency Anti-corruption, Management, Preparedness, Land Acquisition, Security Practices Quality Initiatives Supply Chain Planned Capacity Collaboration and Knowledge Sharing Management Data Management System 30 31 Adani Power Limited Sustainability Report 2015-16

Management To achieve the highest levels of quality and Systems reliability, our plants have implemented internationally accepted best practices and documented them through standard operating procedures and certified management systems.

5S Implementation

Quality In collaboration with the Quality Circle ‘Seisou’, ‘Seiketsu’ and ‘Shitsuke’ have been Initiatives Forum of India (QCFI), we have implemented integrated into our operational practices the 5 ‘S’ workplace organisation at Mundra and Tiroda. The Mundra site methodology to achieve greater has achieved the 5 ‘S’ certification in the organisational effectiveness. reporting year. We have also initiated the The five components of ‘Seiri’, ‘Seiton’, replication of this process at Kawai.

Collaboration Participation in industrial conferences and professional meets plays an important role not and only in gaining new knowledge but also in sharing our own expertise and thereby, positively Knowledge branding our Company. Sharing During FY 2015-16, we were a member of the following associations either directly or through our parent company Adani Enterprises Limited:

• Association of Power Producers (APP) • Ahmedabad Management Association • Confederation of Indian Industry (CII) (AMA) • Federation of Indian Chamber of • National Safety Council (NSC) Commerce and Industry (FICCI) • Quality Circle Forum of India (QCFI) • Independent Power Producers • Gujarat Safety Council Association of India (IPPAI) • Institute of Fire Engineers, India (IFE) • Gujarat Chamber of Commerce and • British Safety Council Industry (GCCI)

During the year, our CEO was the Chairperson of APP. In all other associations, we featured as members.

32 33 Adani Power Limited Sustainability Report 2015-16

Data Data is collected by employing different compliance with environmental regulations Management approaches, including direct online and are monitored by environment management offline measurement and calculation as per function. Similarly, the occupational System applicability. Our ERP system is used for health and safety management function collecting data on material purchase and monitors and documents all the relevant Energy and operational consumption, plant operations, employees data pertaining to health and safety of the performance data is and workforce, waste generation and workforce. A dedicated Corporate Social reviewed most frequently disposal. Data relevant to key performance Responsibility (CSR) team implements at operating plants and indicators for plant operations are collated, CSR initiatives at each operating location reported on daily basis internally reported and reviewed at different which is overseen by the Adani Foundation to corporate office for levels at operating plants and corporate team at the corporate office. Thus, data joint reviews. office. and information on CSR activities and beneficiaries are based on the data Frequency of internal reporting and review maintained by the CSR team working at of the different data sets vary as per Adani Power. Books of Adani Power and criticality of the data for operations. We records maintained by Adani Foundation also review financial performance including at its corporate office is being used as the interest cost most regularly. Energy and basis for reporting the expenditure incurred operational performance data is reviewed for CSR activities. For this report, relevant most frequently at operating plants and information and data has been collected reported on daily basis to corporate office based on internal reporting system and for joint reviews. This data is used for documentation maintained by concerned reporting on performance indicators related departments and functions across our to fuel and other material consumption operations. in the report. Besides this, there is data collation, analysis, internal reporting and In order to formalise the process of data review system within different functions collation and review of the same for and departments for respective data and sustainability reporting, we have established information. a Sustainability Reporting Committee (SRC) at all operating sites and at the corporate Hazardous waste disposal, ash utilisation, office and an Apex Sustainability Committee water consumption, environmental (ASC) at corporate office which is chaired emissions, greenbelt and plantations, by the CEO.

Controlling operations by state-of-the-art technology.

Governance, Ethics and Integrity Company’s Philosophy on Code of Governance Governance Structure Ethics and Integrity Internal Control Internal Audit External Review Status of Sub-judice Cases including Public Interest Litigations 34 35 Adani Power Limited Sustainability Report 2015-16

Governance, Company’s philosophy on code of of its Committees and individual Directors, Ethics and governance including the Chairman of the Board. The The Board of Directors delivers Corporate exercise covered various aspects of the Integrity Governance by ensuring transparency, Board’s functioning such as composition disclosure and reporting that conforms of the Board and formulation of various fully to the existing laws of the country committees based on experience, and to promote ethical conduct of competencies, performance of specific business throughout the organisation. Our duties and obligations, contribution standards in governance are initiated by from expert members and independent senior management and transcend to the judgement relevant to governance issues. next level down in the organisation. The philosophy of the Company is motivated We are committed to transparency, to ensure ease and transparency across disclosure and reporting to promote ethical its operations, making disclosures and conduct of business throughout the to enhance shareholder value without organisation. Our governance standards compromising on compliance of laws and are initiated by the top governance body regulations. Sound corporate governance is and the senior management and percolate critical to our practices so we can generate through the organisation. Our philosophy and maintain the trust of all stakeholders. in relation to corporate governance is to The Board of Directors fully supports ensure transparency in all our operations, corporate governance practices in our make required disclosures and enhance Company with appropriate checks and stakeholder value without compromising audits at suitable places and at necessary on compliance with regulations. The Board intervals. The Company has complied with of Directors takes responsibility for the applicable requirements of Corporate implementation of corporate governance We are committed to Governance under Clause 49 of the Listing practices in our Company with appropriate transparency, disclosure Agreement. checks and balances. We comply with and reporting to promote necessary requirements of Corporate ethical conduct of Having adopted a formal mechanism, Governance under Clause 49 of the Listing business throughout the Board has structured a process for Agreement with the Stock Exchanges. the organisation. evaluating its performance as well as that

We understand synergy of workplace and human capital.

36 37 Adani Power Limited Sustainability Report 2015-16

Our governance structure upholds The Board of Directors has delegated Table 8: Board of Directors sustainability responsibility to the CEO. All Name of the Director Type of Directorship Other Directorship • Independence strategic and operational responsibilities Mr. Gautam S. Adani (Chairman) Promoter and Non-Executive Director 4 • Tenure on the governance body are executed by the CEO through various • Number of each individual’s other functional heads at the corporate office and Mr. Rajesh S. Adani (Managing Director) Promoter and Executive Director 7 significant positions and commitments, station heads at all operating and project Mr. Vneet S. Jaain (Executive Director) Whole-time Director 5 and the nature of the commitments locations. The strategic and operational 1 • Membership of under-represented social responsibilities include sustainability Mr. Vijay Ranchan Independent and Non-Executive Director - groups performance (economic, environmental Mr. C. P. Jain Independent and Non-Executive Director 7 • Competencies related to the economic, and social). Heads of departments in turn Ms. Nandita Vohra Independent and Non-Executive Director - environmental and social impact convert the sustainability requirements as • Stakeholder representation KPIs, which are cascaded as performance Mr. Raminder Singh Gujral2 Independent and Non-Executive Director 1 targets for individual employees. 1. Appointed Director w.e.f. 11th August 2015 2. Retired as a Non-Executive Independent Director w.e.f 1st January 2016 Figure 2: Governance Structure The Board has established the following committees which play a vital role in ensuring sound governance practices as per the requirements of SEBI regulations and Companies Act, 2013.

Board of Directors 1. Audit Committee 2. Nomination and Remuneration Committee 3. Stakeholders’ Relationship Committee 4. Sustainability and Corporate Social Responsibility Committee 5. Risk Management Committee

Table 9: Investor Grievance Redressal Nomination and Sustainability Stakeholder Nature of Complaints Complaints Received Complaints Resolved Audit Remuneration and CSR Relationship Committee Non-receipt of refund order 10 10 Committee Committee Committee Non-receipt of dividend warrant 2 2 Non-receipt of annual report 7 7 Non-receipt / credit of shares 3 3 Total 22 22

For more details on the composition of the committees and their roles, please refer to Page 43 of the Annual Report 2015-16 for Adani Power Ltd.

CEO All our Board members are fully aware of the as that of its Committees and individual economic, social and environmental aspects Directors, including the Chairman of the of our business. Their appointment to the Board. The exercise was carried out through Our governance structure We ensure participation of any under- Performance monitoring includes Board is based on their competencies in a structured evaluation process covering promotes sound practices, represented or marginalised social groups sustainability performance monitoring of their respective areas of expertise. The CSO various aspects of the Board functioning the representation of all in the decision-making process either by individuals to department heads and station is responsible for appraising the Board about such as composition of the Board and its stakeholders, diversity inviting members from an NGO or civil heads and then to the COO and Board. our sustainability performance as well as Committees, experience and competencies in multiple aspects, society groups to be part of committees sensitising Board members on the current of its members, performance of specific transparency in disclosures within our governance structure. We also The responsibility of facilitating stakeholder trends related to economic, environmental duties and obligations, contribution at the and opportunity for ensure an independent director or the engagement, materiality determination and social issues. All Independent Directors meetings and otherwise, independent feedback and redressal. presence of a social scientist with specific related to sustainability management and provide declarations confirming that judgment and governance issues. competence. reporting including regular monitoring of they meet the criteria of Independence the Company’s sustainability performance provided in Section 149(6) of the Act and The maximum tenure of the independent Our governance structure promotes and that of its subsidiaries has been Clause 49 of the Listing Agreement and Directors is in compliance with the sound practices, the representation of all delegated to the CSO. The CSO routinely that there has been no change in the Companies Act, 2013. All the Independent stakeholders, diversity in multiple aspects, relays the sustainability performance to circumstances which may affect their status Directors have confirmed that they meet transparency in disclosures and opportunity the CEO and to the Board based on inputs as Independent Director during the year. the criteria as mentioned under Clause 49 for feedback and redressal. from the various station heads and other The Board adopted a formal mechanism of the Listing Agreement and Section 149 of stakeholders. for evaluating its performance as well the Companies Act, 2013. 38 39 Adani Power Limited Sustainability Report 2015-16

Organisational policies, The organisational policies, purpose, values, executive Independent Directors are Ethics and Our Corporate Governance philosophy • Responsibility to comply with insider purpose, values, mission mission statement, strategies, goals and paid remuneration by way of commission Integrity is built on fair, transparent and effective trading regulations and applicable laws statement, strategies, targets related to sustainable development and sitting fees. The remuneration of governance. Our commitment to the highest and regulations; and goals and targets related to are developed by senior management Board members is decoded based on the level of ethical conduct should reflect in sustainable development committees based on the identified risks remuneration policy and recommendations all our business activities including but not • Procedure for annual affirmations to the are regularly reviewed and and opportunities related to the power made by the Nomination and Remuneration We are in the process limited to relationships with customers, Code of Conduct by Directors, senior approved by the highest sector, external environment, legal and Committee. There was no remuneration paid of establishing external suppliers, employees, the Government and management and employees. governance body. other requirements, management system to the Managing Director and Whole-time mechanisms to receive other stakeholders. One of our most valuable requirements and stakeholder consultation. Director/CEO. Additionally, no commission advice on ethical and lawful assets is our reputation for integrity and In case of any doubt or clarification in Organisational policies, purpose, values, was paid to any Independent Director. The behaviour and matters fairness. relation to the application of the Code of mission statement, strategies, goals and details of the remuneration paid to the related to organisational Conduct, employees can consult with the targets related to sustainable development CFO and Company Secretary are detailed integrity. The Code of Business Conduct and Ethics Company Secretary and Compliance Officer are regularly reviewed and approved by the in Annual Report 2015-16 on Page 19 in (the Code) that has been adopted by our of the Company. highest governance body. Section 6 - Remuneration of Directors and Board of Directors and senior management Key Managerial Persons. The remuneration summarises the standards that guide our We have also established a vigil mechanism The critical concerns from various stake of other senior executives is based on actions. While covering a wide range of for Directors and employees to report holders such as communities, suppliers and performance appraisals; this includes business practices and procedures, these genuine concerns as per the provisions vendors, lenders and investors, employees, sustainability-related KPIs and follows the standards cannot and do not cover every of the Section 177 of the Companies contract workforce, customers, Government/ system of appraiser-reviewer and approver issue that may arise, or every situation Act, 2013 in a manner as prescribed. The regulatory authority and media / NGO are annually. We do not engage a remuneration where ethical decisions must be made, revised Clause 49 of the Listing Agreement captured through our management systems consultant; the remuneration depends on but rather set forth key guiding principles between listed companies and the by the respective heads and communicated various factors that include the competency that represent the Company’s policies. We Stock Exchanges provides a mandatory to the CEO through the CEO dashboard. and position of the person, market are in the process of establishing external requirement to devise an effective whistle The CEO regularly monitors the critical conditions and organisation performance mechanisms to receive advice on ethical blower mechanism for Directors and concerns and updates the board such during the fiscal, as decided by the and lawful behaviour and matters related to employees to report concerns about critical concerns which may impact business remuneration and nomination committee. organisational integrity. We have established unethical behaviour, actual or suspected value drivers. The committee carries out consultation an internal mechanism to report concerns fraud or violation of the Company’s Code with the relevant stakeholders to determine about unethical and unlawful behaviour of Conduct or Ethics Policy. For more The remuneration of Directors and key the framework for remuneration. The and matters related to certain stakeholders information please refer to Page 49 of personnel is determined by the Nomination ratio of remuneration of Directors and Key such as employees. We are exploring the our Annual Report 2015-16. and Remuneration Committee. The Management Personnel to the median possibility of extending this to other key % 12.5 Directors’ remuneration structure is remuneration employees is detailed in stakeholders. The purpose and objective of this policy Increase in the determined by the Board in consultation Annexure C to the Directors’ Report, Page 22 is to provide a framework for responsible median with this committee. The remuneration of the Annual Report 2015-16. The Code not only ensures compliance and secure whistle blowing and also remuneration for payable is approved by the Board of with Company Law, provisions of the protect employees raising concerns about the financial year Directors and members in the general Listing Agreement with Stock Exchanges any irregularities within the Company. body meeting in terms of the provisions and other laws, but also ensures corporate All employees are eligible for making a applicable from time to time. The Non- governance. Even well-intended actions protected disclosure under this policy that violate the Code may result in negative in relation to matters concerning consequences for the Company and for the Company. Our Power Plant Control the individuals involved. For further details, Room. please refer to our Code of Conduct at All policies and Code of Conduct have been www.adanipower.com. communicated to the Board of Directors, senior management and all our employees. The Board of Directors and the Company’s All new employees are introduced to senior leadership teams are involved in the our policies and Code of Conduct during development of the Company’s Values, their induction training. As part of our Vision and Culture. They participate in the operational as well as organisational level development of organisational strategies risk identification and management process, and policies related to sustainability our locations undergo assessment for risks performance. The Board has adopted the related to corruption. following codes: During the reporting year, there were • Guidance on ethical standards of conduct no significant fines and non-monetary on various matters including conflict sanctions related to non-compliance with of interest, acceptance of positions of applicable laws and regulations. responsibilities, treatment of business opportunities, etc.; 40 41 Adani Power Limited Sustainability Report 2015-16

Internal We have developed a system for internal • Monitoring of all laws, regulation and Control control commensurate with the size and statutory compliances is being done nature of our business. Some key features of through an internal online portal. our internal control mechanism include: • The Audit Committee, comprising • Adequate documentation of policies, Independent Directors, regularly reviews guidelines, authorities and approval the adequacy of internal controls and procedures such as Standard Operating ensures compliance with Accounting Our compliance with Procedure (SOP) and Delegation Standards, among others. environmental, health & of Authority (DOA) are in place for safety and quality standards is controlling important functions of • A comprehensive Information Security audited at a fixed frequency. the Company. Policy and continuous updating of IT systems.

Internal Audit At Adani Power Limited, we have a • Report to management on internal professional internal audit process and controls and status. system called Management Audit & Assurance Services (MAAS) which is an The Internal Audit department prepares The Internal Audit independent, objective assurance and Risk-Based Internal Audit (RBIA) scope and process includes review consulting activity designed to add value the frequency of audit is decided by the risk and evaluation of the and improve our operations. It helps bring rating of the concerned areas or functions. effectiveness of existing a systematic, disciplined approach to processes, controls and evaluate and improve the effectiveness of The Internal Audit team has access to all compliances. risk management, control and governance organisational information, facilitated by the processes. SAP mechanism. The Internal Audit process includes review and evaluation of the Initiated as part of our Business Process effectiveness of existing processes, controls Transformation exercise, MAAS is and compliances. It also ensures adherence a centralised function with direct to policies and systems and the mitigation administrative reporting to the Chairman of of the operational risks perceived for each the Board. In its internal audit role, MAAS area under audit. Monthly and quarterly reports to the Audit Committee of the audit findings are given to the COO, CFO Board. The broad role of MAAS includes: and CEO for their action taken plan. A quarterly Internal Audit report, including • Internal audit and assurance. the Action Taken Report, is placed at the Audit Committee meeting of the Board. Key • Checking and flagging compliance with audit findings and recommendations are policies and processes (SOPs). reviewed and the required action is taken for implementation. • Review of policies and processes (SOPs) using a risk-based approach to provide reasonable assurance to management.

External In addition to internally reviewing our As part of our annual financial reporting, Review compliance requirements, we have deployed we get our corporate governance systems third-party agencies to audit our operations assessed independently by an external and identify concerns related to compliance, practicing Company Secretary. if any. Also, as part of our management system implementation, our compliance There has been no instance of with environmental, health & safety and non-compliance by the Company on any quality standards is audited at a fixed matter related to capital markets during the frequency. last three years and no significant penalties or strictures have been imposed on the Company by the Stock Exchanges or SEBI or any statutory authority. 42 43 Adani Power Limited Sustainability Report 2015-16

Status of In FY 2015-16, there were no cases filed by Hon’ble High Court of Gujarat on 17th April Sub-judice Cases any stakeholder against the Company for 2015 and the Court has dismissed the case non-compliance with applicable regulations without any direction to any party and with Including concerning marketing communications a view that there is no merit in the WP. After Public including advertisement, promotion this judgement, the petitioner has again Interest and sponsorships, breach of customer filed a Civil Appeal (CA) in the case, which Litigations privacy and intellectual property rights. is sub-judice. Additionally, there was no case pertaining to infringement of human rights and A legal compliance review of all operating anti-competitive behaviour. locations and projects is done in a systematic manner. Our internal legal team There have been some cases in which the consults top legal experts in all significant Company has been made a respondent cases and assesses the risk and merit of by some stakeholders in Writ Petitions each case. The legal head of the Company (WPs) and Public Interest Litigations submits the disclosure on legal compliance (PILs) pertaining to environmental laws. to the board level committee. Environmental All applicable environmental clearances due diligence and assessment of risks are have been obtained and we comply with also done for the projects that we consider all applicable environmental regulations. for acquisition. We are of the view that At the same time, we are also working to any other legal case including a PIL filed understand and address the point of view under other laws of the land in which the of these stakeholders who have adopted Company has been made a respondent and the legal route. which was sub-judice as on 31st March 2016 does not pose any risk to the sustainability During FY 2015-16, there were three WPs of our business. pertaining to environmental laws in which Adani Power Limited was made a co- Any political donations/contributions, respondent by the petitioners. Two of these irrespective of the amount, need to receive PILs were dismissed by the Hon’ble High approval from the Board of Directors; during Court of Gujarat vide orders passed within the reporting year, there were no political FY 2014-15, with a view that the matter is donations/contributions. In FY 2015-16, there not maintainable in the form of a PIL. were no cases filed by any stakeholder One other WP pertaining to environmental against the Company laws was sub-judice as on 31st March 2015. for non-compliance with Adani Power Limited was made a co- applicable regulations respondent as the Mundra Power Plant of concerning marketing the Company is located within Adani Ports communications including and Special Economic Zone (APSEZ) and advertisement, promotion the petitioner has alleged that there has and sponsorships, breach been violation of applicable environmental of customer privacy and regulations in the APSEZ area. Final intellectual property rights. judgement in this PIL was passed by the Introduction Debt Servicing Strategy New Plans and Upcoming Projects Opportunity-seeking Efficiency Fuel Management Coal Sourcing Coal Logistics Supply Chain Management Vendor Management 44 45 Adani Power Limited Sustainability Report 2015-16

Introduction India’s economic growth is powered by generation stood at 69.39 billion units Government initiatives and supported during the financial year, as against 54.7 equally by the private sector, which commits billion units in FY 2014-15. large investments towards nation building. We are focused on We consider our growth to be testament to Adani Power’s debt and liquidity position appropriate returns nation building as we operate several power in FY 2015-16 remained stressed due to shareholders and generation assets that cater to the power to the continuing non-resolution of the lenders through a deficit in India. Consequentially, Adani compensatory tariff matter with power strategy of growth and Power considers economic sustainability as discoms, arising from the increased cost of expansion, while ensuring paramount to its operations. We are focused fuel. This was led by the promulgation of sustainability for our on appropriate returns to shareholders and Indonesian regulations and the shortage in business partners such as lenders through a strategy of growth and supply of domestic coal. APTEL, in its order vendors and suppliers. expansion, while ensuring sustainability dated 7th April 2016, has held that these for our business partners such as vendors issues constitute force majeure events and suppliers. Our growth has been and under the PPAs and we are optimistic continues to be inclusive of employee and for an early resolution to this matter. community development to generate direct We have strategically sold over 80% of and indirect economic benefits. our net capacity under long-term PPAs. Envisaging short-term market trends, we In the past five years, Adani Power has have contracted around half of our available continued to expand rapidly and has merchant capacity under medium-term increased its capacity from 1,980MW to its PPAs of 3-5 years. This has gone a long way present operating capacity of 10,480MW, in mitigating the risk of unsold capacity and thereby reflecting a compounded annual falling realisations in short-term markets. capacity growth of 40%. FY 2015-16 has been a year of sustained power generation Our Mundra power plant generated 32.99 % 33 growth and high performance for us. With billion units during the year, the highest increase in the signing of the definitive agreement for among thermal power plants in the country. turnover compared the acquisition of the 600MW Korba West with the previous Power Company plant at Chhattisgarh, our Our consolidated net profit for the year was financial year. pan-India power generation capacity is recorded at `4,884.8 million, as against a expected to increase to 11,080MW. net loss of `8,156.3 million in FY 2014-15. We have prepared our financial statements `2,54,333 million For the reporting period we have registered in accordance with Generally Accepted FY 2015-16 Consolidated a turnover of `254,333 million, which Accounting Principles in India (Indian Turnover. is a 33% increase compared with the GAAP). For FY 2015-16, we have developed previous financial year. Adani Power’s total an internal financial control framework as

1,980 MW 10,480 MW 2012 Compounded Annual Capacity Growth % Present operating capacity 40 operating capacity 46 47 Adani Power Limited Sustainability Report 2015-16

Mundra Udupi regulations of State Electricity Regulatory Corporations (SERCs) and Central Electricity Regulatory Commission (CERC) guidelines Figure 3: Power Sales and Power Generation Tiroda APL, Bitta Kawai from State Load Dispatch Centres (SLDCs) and Regional Load Dispatch Centres (RLDCs). We also adhere to PPA provisions and meet normative availability in order to recover full fixed charges. We always try to supply power to all customers beyond the normative availability under PPAs, thereby proving to be a reliable source of power. We are not involved in the retail distribution of Sales Generation power to individual customers. Our customers, as detailed above, are mainly long-term and medium-term customers with whom we have signed PPAs. Additionally, mostly during festive seasons and peak power demand times, a few short-term open access customers also come on board. 40,000 Table 10: Power Purchase Agreements

32,993 Contract Capacity Location of 30,333 Procurer (in MW) Supply Type 30,000 Gujarat Urja Vikas Nigam Ltd. (GUVNL) 1,000 Mundra Long-term

GWh 30,221 GUVNL 1,000 Mundra Long-term 28,125 20,080 20,000 Haryana Power Purchase Centre (HPPC) - HVPNL 1,424 Mundra Long-term 16,457 Mundra Utilities Pvt Ltd. (MUPL) 40 Mundra Long-term 18,962 Railway Energy Management Company Ltd. (REMCL) 50 Mundra Medium-term 15,503 10,000 8,685 7,866 7,575 Tamil Nadu Generation & Distribution Company Ltd. (TANGEDCO) 200 Mundra Medium-term

8,236 7,138 7,402 61.7 Gujarat Urja Vikas Nigam Ltd. (GUVNL) 40 Bitta Long-term

0 59.3 Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) 1,320 Tiroda Long-term FY 2014-15 FY 2015-16 MSEDCL 1,200 Tiroda Long-term

MSEDCL 125 Tiroda Long-term

MSEDCL 440 Tiroda Long-term

Rajasthan Discoms Power Procurement Centre (RDPPC) 1,200 Kawai Long-term Developed an internal guidance and to ensure adequate controls Bitta power plant, the state of Gujarat is financial control framework and effectiveness within the Company. As a the only customer under long-term PPA. MUPL (Mundra) 10 Udupi Long-term as guidance and to ensure part of this, we have prepared and reviewed For Tiroda and Kawai power plants, major adequate controls and the Entity Level Control, Process Level customers are the states of Maharashtra Power Corporation of Karnataka Ltd. (PCKL) 1,080 Udupi Long-term effectiveness within the Control and IT General control within the and Rajasthan, respectively, and for the Company. Company. The internal and external auditors Udupi power plant, we are supplying to Outage of power in most cases is governed by the directives received from the individual Load Dispatch Centres. However, we of the Company have issued their reports the state of Karnataka under a long-term undergo some planned and unplanned outages. During the reporting year, there were 107 outages of which 74 were forced. to management on Internal Control over PPA. We have now signed a long-term PPA We communicate these outages to our customers in a timely manner. The frequency and average duration of these outages is Financial Reporting based on audits. Details with Mundra Utilities Pvt. Ltd. (MUPL) for a depicted in the table below: of the internal financial control framework contracted capacity of 40MW. In addition are available on Page 7 of our 2015-16 to this, we have medium-term PPAs with Table 11: Power Outage Frequency and Average Power Outage Duration Annual Report. Railway Energy Management Company Ltd. (REMCL) and Tamil Nadu Generation & System Average Values FY 2015-16 FY 2014-15 We have been supplying power to various Distribution Company Ltd. (TANGEDCO) for Interruption frequency index (excluding forced outages) 0.375 Outage / Customer 0.53 Outage / Customer state distribution companies as well as to supply from Mundra. small and large industries. Power sales to Interruption frequency index (including forced outages) 1.22 Outage / Customer 3.36 Outage / Customer these customers can be broadly classified We also supply power to Indian Energy into three categories: long-term contracts, Exchange (IEX) and other short-term Interruption duration index (excluding forced outages) 151 Hours 277 Hours medium-term contracts and short-term customers from time to time. We have no `4,884.8 million contracts. direct residential customers. Interruption duration index (including forced outages) 207 Hours 562 Hours FY 2015-16 Consolidated For the Mundra power plant, major Power is supplied to different customers Net Profit. customers under long-term PPAs are the as per the terms and conditions of the states of Gujarat and Haryana. For the respective PPAs. We adhere to all relevant 48 49 Adani Power Limited Sustainability Report 2015-16

Our APL Mundra Plant: Setting through a healthy mix of debt and equity. That said, the acquisition is subject to example of least footprint of For the debt portion, we expect to tie up certain consents that are pending. land per MW. a mix of Rupee Term Loans and External Commercial Borrowings as we have done Allotment of Jitpur Coal Block: for our existing plants. We executed a We completed vesting of the coal block share purchase agreement with the owners to the Company, at Jitpur in Jharkhand, of Korba West Power Company Limited during the year. For this, the Company (KWPCL) for the acquisition of a 100% stake executed “The Coal Mine Development in KWPCL during the previous year. KWPCL and Production Agreement” with the owns a 600MW coal-based thermal power Government of India in the previous plant in Chhattisgarh. year. We already initiated the process for development of the said mine.

Additiona aait eanion o terma ine

We have been an active participant in the eventuality. We have explored the available ongoing regulatory dialogue for the creation technologies and deliberated on the way of a more robust short-term market in forward. With this spirit, we aim to be a India. We recognise that it is imperative for key contributor in shaping the future MW MW short-term markets to play a larger and more of the short-term market in India. During important role than they currently do and FY 2015-16, we did not receive any financial UDUPIAA P we have been preparing ourselves for this assistance from any government body. MW MW Debt Servicing Thermal power plants have an economic IFC audit: Independent auditors conducted AA A Strategy life of about 30 years. Long-term debt in an audit against IFC performance standards UDUPI the form of Rupee Term Loans is being for thermal power plants in Mundra and availed for a 10-12 year period which Tiroda during the reporting year. Given that creates financial stress on projects which lender is required to disclose specific Scope are of long gestation periods. In order to 1 and Scope 2 GHG emissions, we have Opportunity- We continue to identify power-deficit plant in Udupi for supplying power to the mitigate this mismatch, the Reserve Bank disclosed these in this report. zones and have moved swiftly to cover state of Karnataka. With this acquisition, of India (RBI) introduced the 5/25 scheme seeking these regions with our state-of-the-art we have augmented our installed capacity of debt refinancing for infrastructure During the reporting year, the Company plants to generate power and transmit to 10,480MW, all within a span of just nine and core sector projects having long has continued to service all its long-term through high voltage transmission years, averaging operationalisation of about gestation period and long economic life. In debt obligations on time without any infrastructure developed either by our group 1,164MW per annum, including addressing accordance with this policy, we are in the case of default. company Adani Transmission Ltd. or State all statutory requirements in a highly process of approaching various long-term Transmission Companies for delivering regulated industry. lenders to refinance our long-term debt During the financial year External critical services that are important for both for the remaining economic life of all our Commercial Borrowings (ECB) level at the life and businesses. One example is the We are also developing internal capabilities power plants. beginning of the year was at USD 1,775 southern region and its consistent power through our partners to augment power million and the closing balance was at USD deficit situation. We identified the need carrying capacity in the country, which will 1,451 million, with addition of USD 24 million and completed the acquisition of UPCL eventually support our expansion plans. and repayment of USD 348 million.

Efficiency Our strategy on efficiency stems from the improvement projects in operational New Plans We are committed to reaching our goal the M&A route. This is in line with our vision plant design stage since power plants are plants from time to time and service key and Upcoming of achieving a thermal power generation to be a leader in infrastructure development complex and long gestation projects with equipment to maintain and improve plant Projects capacity of 20,000MW by 2020 to bridge for nation building. significant capital expenditure. At the efficiency. Sale of electricity to Haryana is the power deficit in the country, in line with design stage, we engage various experts metered at Haryana periphery and there the revised Tariff Policy and the Government We plan to expand our thermal business by in providing inputs to enable us to choose has been transmission loss of 1.17% of total of India’s vision of 24X7 power to all by 2019. additional capacity of 1,600MW at Kawai, the best possible design with the least cost power evacuation from APL Mundra. Additionally, with consolidation taking place 1,600MW at Jharkhand, 1,600MW Udupi to operate during the plant lifecycle. We in the Indian Power sector, there exists an and 600MW at Surguja in the near future. also progressively take up various efficiency opportunity for capacity addition through We plan to finance our expansion plans 50 51 Adani Power Limited Sustainability Report 2015-16

Fuel There is an ever-increasing demand for future. At Adani Power, we realise that these to transport coal from the port to our implemented the rail-under-rail project Management energy globally, which indicates an increased resources are limited and therefore the need generating station, minimising the time, cost crossing under the Central Railway line to use of natural resources for the production of the hour is to utilise these efficiently and and environmental impact of transportation. enable faster evacuation of empty IR rakes of energy. This demand is expected to reduce wastage as far as possible. Our Udupi plant is also a coastal plant that through our railway siding. increase at an accelerated rate in the near uses imported coal. To handle this, we have a dedicated jetty at New Mangalore Port Adani Power Limited has dedicated teams Trust (NMPT) from where coal is transported at the locations of the coal sources to Coal Sourcing Our power generating stations are currently tapering linkage with SECL for by rail to the plant. facilitate regular loading and uninterrupted predominantly dependent on imported and 3.329 MMTPA for 800MW. The fuel transport of coal to our plants. This has domestic coal as a source of primary fuel. requirement for the remaining 1,320MW At Kawai and Tiroda, we have constructed ensured that considering the contracted Heavy Fuel Oil (HFO) and Light Diesel Oil is being sourced from MCL and Central dedicated railway sidings with wagon tippler capacity under long-term coal linkages (LDO) are used in limited quantities during Coalfields Limited (CCL), executed through and track hopper arrangements for coal for Mundra and Tiroda, APL has achieved the start-up of the power plants. Since an MoU for 5.21 MMTPA. Additionally, the unloading, reducing the turnaround time of 90% materialisation of the sanctioned Imported Coal these are conventional, non-renewable Company is following up with the concerned coal rakes. Additionally, at Tiroda, we have programme. sources of energy, ensuring fuel security for authorities for the conversion of the MoU our operations is of utmost priority and has into a long-term FSA. hence been identified as a material aspect. Supply Chain A reliable and sustainable supply chain port and power together provide the 2,640 For Kawai, the Company has entered into Management is critical to drive efficiency in business most desired synergy. This synergy helps Units MW The Mundra plant comprises nine units. an MoU with MCL and CCL for the supply of and scale operations across our facilities. us in quick turnaround for our projects Fuel requirements for 2,640MW spanning 5.21 MMTPA domestic coal. We propose to As part of the business transformation and delivers the best value to all our units 1 to 6 are met through imported coal, use a mix of imported and domestic coal to projects under Disha, we have formulated stakeholders. Further, our seven units whereas for the 1,980MW needed for units meet the project’s fuel requirements. a structured and uniform supply chain of 660MW are identical, giving us an 7 to 9, the Company has entered into a fuel management process. Our businesses advantage when it comes to spares and Domestic and supply agreement with Mahanadi Coalfield Fuel for the UPCL plant comprises 1,200MW benefit from their competitiveness and vendor management. Imported Coal Limited (MCL) for a total of 6.405 MMTPA. (2x600MW each) and demand is met scale, and the value integration of coal, To ensure fuel security, we rely on our group through imported coal mainly from countries company, Adani Enterprises Limited, for such as Indonesia, Australia and South continuous availability of imported coal for Africa. oa ndra our operations. Our group company, which iment 1,980 ier iroda Units MW is one of the largest coal traders in the Apart from the coal supplies under Linkages Liid e country, owns mines in Indonesia and has and MoU to our power plants, we are also anower awai linkages to import it from USA, Australia availing additional domestic coal through emia ate and Russia. Through competitive bidding, e-auctions conducted exclusively for power di are iom tomer the Jitpur Coal Block situated at Jharkhand sector consumers, thus maximising our Part ontrat itta has been allotted and will be operational as domestic sourcing. For our secondary fuel, ater Total Units of per the mining plan in FY 2018-19 at a rated we have entered into a rate contract with Mundra Plant capacity of 2.5 MMTPA, further securing HPCL to ensure uninterrupted supply. domestic coal availability. Dedicated coal jetty at NMPT Keeping this in mind, we are confident for Udupi plant. Fuel for the Tiroda plant’s 1,980MW is being that there will not be any uncertainty in sourced from SECL, which a subsidiary of the availability of coal in the near future. Coal India Limited (CIL) under a long-term Further, as a strategy, maximising domestic 17.19 Fuel Supply Agreement (FSA) with SECL coal sourcing will keep us competitive and MMTPA for 4.91 MMTPA for 1,180MW and another attractive against competition.

Coal Logistics Coal logistics include the transportation we have also implemented closed conveyor of imported and domestic coal from mine systems. to plant with a combination of rail and We have already sea-based routes. Since power plants are The Mundra power plant is strategically implemented a Pile Age national assets of long-term nature, we have located in close proximity to the Mundra Monitoring Tool that taken a call to primarily use rail transport for Port, which can handle up to 1,65,000 MT ensures FIFO operations, our coal logistics for plants located in the cape-size vessels to feed its nine units. helping avoid quality interiors of the country. This will also help us This brings in economies of scale in terms deterioration of coal at all maintain our emissions and impact on the of ocean freight and reduces the need for our coal yards. local community. To reduce the time taken multiple vessels for coal feed. At Mundra, to deliver coal from ports to coastal plants, we have laid a dedicated conveyor belt 52 53 Adani Power Limited Sustainability Report 2015-16

Vendor Vendors (suppliers and contractors) are To build a sustainable business relationship Steps involved in procurement practices Management co-authors to our success story. We believe with vendors, we measure the performance The following steps are key to our vendor management process: in trust and long partnerships to endorse of the vendor and provide regular and high quality and value of the asset being transparent feedback for improvements and constructed. Hence, we are committed to development. To build a sustainable facilitating our vendors so they can provide business relationship us with the best quality and optimum We follow a Vendor Relationship Step 1 Step 2 Step 3 with vendors, we measure benefit keeping in mind health, safety and Management (VRM) system which involves the performance of the environment aspects. We also insist on collaborative working and relationship vendor and provide developing a healthy social environment in building with vendors in order to meet Vendor Manage Manage Vendors regular and transparent our vendor organisations for a better work business objectives. Identification and Vendor Queries and feedback for improvements culture. Our systematic approach helps us On-Boarding Performance Expectation and development. to comply with applicable labour practice We consider domestic vendors as local regulations covering child labour and vendors. In FY 2015-16, we had a base of human rights aspects which influence and 3,183 vendors as against 2,818 vendors in controls these issues in our supply chain FY 2014-15. Nearly 99% of these were locally also. We have a process of on-boarding from the domestic market. Out of total Our employee township vendors through pre-qualification, which service and material contract value, 94% was at 1,320MW power plant ensures vendor credentials and capability to awarded to local vendors. This year, we did at Kawai. execute assignments, adherence to health, not conduct a vendor satisfaction survey; safety, environment norms and compliance however, going forward we will do so. with statutory requirements. Through our Business Transformation Processes – Disha Vendors classification is done based on two and Agile – we have developed a common parameters: respective procurement size vendor base across Group companies. and magnitude of risk posed to the business.

Figure 4: Vendor Classification

Criticality

High Surety Strategic of Supply Vendors • Provide the greatest potential value and pose the highest • Essential to daily operations, • Strategically manage the potential risk of impacting but relationship managed more relationship vs. events that occur operationally than preferred within the vendor relationship delivery to customers vendors • Focus on relationship building • Highest level of vendor • Possess potential to be high- and adding value interaction and performance value business partners in the improvement initiatives future • Focus on risk mitigation vs. cost savings

Risk Risk Factors Transactional Tactical • Financial Vendors Vendors • Critically of services / supply • Monopolistic market • Deemed to be lower value or are • Possess potential to be high- • Statutory regulation not critical to operations value business partners in the • Past experience • Minimal time required to manage future • Intellectual property • Vendor relationship • Focus on cost savings vs. risk • Contractual mitigation • Greatest opportunity to reduce, • Foreign exchange eliminate, or simplify the service • Logistical • HSEQ • Talent Low Annual Spend High • High Organisation

54 55 Adani Power Limited Sustainability Report 2015-16

Step 1 Vendor identification and 1. Quality of deliverable on-boarding 2. Cost The vendor on-boarding process broadly 3. Delivery covers four aspects: identification, 4. Vendor Management System pre-screening, pre-qualification and 5. Engineering deliverables approval. The on-boarding requires multiple 6. Health, Safety and Environment (HSE) level screenings to ensure that capable deliverables vendors are pre-qualified and on-boarded. Successful vendors during the tendering Step 3 Managing vendor queries and process are transferred into our Vendor expectations Master list. A vendor code is generated for To manage vendor expectations and new vendors following which the Category resolve queries, we have an online vendor Lead begins formulating the contract. satisfaction survey.

Step 2 Managing vendor performance As part of our vendor on-boarding process, To maintain a healthy and mutually all vendors go through the above-mentioned beneficial relationship with vendors, it is steps and are screened using the important to measure vendor performance above-mentioned parameters. and identify vendor development needs. Local Vendor Development Vendor performance is measured through We consider India as local. Indigenisation of five groups of indicators, including critical equipment and increasing our local Engineering Procurement & Construction (domestic) vendor base is a priority (EPC) contracts, equipment packages, Bill of and this is measured and reviewed on Quantity (BoQ) packages, bulk material and a monthly basis. consultancy services. We have different sets Vendor performance is of parameters for each type and set criteria measured through five to carry out performance evaluation. groups of indicators, To manage the system, we have including Engineering standardised percentage contribution and Procurement & weightages for each section to evaluate the Construction (EPC) vendor’s performance. contracts, equipment packages, bill of quantity Vendor performance data is reviewed (BoQ) packages, for all ongoing projects. Inputs from the bulk material and vendor scorecard are taken for the following consultancy services. parameters:

Talent Management Employee Engagement Employee Communication Employee Well-being Employee Healthcare Training and Education Behavioural Training Talent Management HR Policies, Employee Benefits and Compensation Human Rights 56 57 Adani Power Limited Sustainability Report 2015-16

Human resources management at Adani goes beyond the boundaries of Talent acquisition, compensation, performance reviews etc. and we look at employee’s well-being holistically. We partner with our employees to ensure timely interventions that help build a career that is long lasting. We nurture people by putting great emphasis on learning & development, career progression and employee welfare. Towards this end, we have developed and implemented a gamut of employee-centric policies and interventions.

Talent To achieve the goal of 20,000MW by year Employees indices in this report are kept 2020, we need to significantly scale up in two categories that are (a) employees in Management our workforce. Developing and promoting project stage and (b) employees in operation internal talent is a key part of our people and maintenance (O & M) stage of the plant. strategy. We assess internal candidates In FY 2015-16, all five locations of Adani Developing and promoting for their potential to take on enhanced Power Business within reporting boundary internal talent is a key part responsibilities and leadership roles were in O & M stage. As on 31st March 2016, of our people strategy. wherever possible. This strategy ensures we had a total of 2,715 on-roll employees, that we continue to have a strong talent excluding apprentices as compared to 2,481 pipeline across all levels. We engage with employees in FY 2014-15, In this reporting our employees and offer opportunities to year there were 16 on-roll female employees help build successful careers. This is one of as compared to seven female employees in the reasons why many of our employees stay FY 2014-15. As on 31st March 2016, 1.43% with us for a long-time. Besides this, we have of employees were due for retirement in HR policies of the group which are uniform five years across all locations while 2.94% over all business verticals which gives us the employees were due for retirement in flexibility to internally transfer the workforce 10 years across all the locations. In the and quickly meet the requirement from reporting year, we had a total of 7,164 within the organisation. contract workmen including 158 female as compared to 8,480 of contract workmen Attracting, developing and retaining including 150 female in FY 2014-15. Most talented college graduates is also a key of these workers are contract workforce priority and we are now hiring more sourced from nearby areas of the plants. graduates with an emphasis on technical The total number of person-days worked by and leadership skills. In FY 2015-16 we on contract and sub-contracted workers was boarded 71 employees (GET – 30, ET – 32, 2.48 million. During FY 2015-16, the total MT – 9) through our Campus recruitment number of new joinees at Adani Power were drive. We provide world-class facilities 304 out of which 29 left during the same to our employees at our sites. Our HR year. Workforce attrition rate for policies help employees develop personal all the sites in FY 2015-16 was 8.95% and organisational skills along with their compared to 9.85% in FY 2014-15. functional / technical knowledge.

Employees On-Boarded As on 31st March 2016, we had a total of 2,715 through Campus on-roll employees, Recruitment in excluding apprentices. 71 FY 2015-16 30 32 9 Graduate Executive Management Engineers Trainees Trainees

58 59 Adani Power Limited Sustainability Report 2015-16

For our new joinees, we have rolled out ‘Sahyogi’ programme to engage with them Employee We have established multiple channels the employees and the managers. For programmes to engage with them even for familiarisation and formal orientation. Communication to engage with our employees across all our contract workers, we have identified before having them on board. A dedicated We have a mechanism in place to gather levels. We have employee communication personnel at department level who act resource from the recruitment team remains feedback after 7 days, 30 days and channels such as ‘Vartaalap’ - town hall as an interface between the workers and in touch with prospective employees to 90 days. with leaders, organisation wide mailers, the management. Workers can raise all guide them through the joining process. newsletters, intranet, touch pad, reach out, their issues and concerns to the respective When an employee joins us, we have a ‘Vaad - Sanwaad’ and transmeets whereby representative. The HR department also all employees are encouraged to raise their actively interacts with contract workers view points in an open forum and directly to ensure that all legal requirements are interact with leaders. Various online surveys met. We do not engage any child labour or are also conducted to improve services and forced labour in our organisation. We have a Table 12: Employee Details Workforce Breakdown working conditions of employees. Decision mechanism wherein we ensure at the time Age Group Gender Location* making and management of shop floor is of issuing passes that no child or forced 30-50 done through participative mechanism labour is being engaged. We have a “NO Employee Category <30 years years >50 years Male Female Local Non-Local through various committees in the plant bond” policy for trainees. We also ensure Senior Management 1 43 58 102 0 31 71 that includes Canteen Committee, Quality a bias-free work environment without any Middle Management 3 357 59 416 3 169 250 Circles and 5S initiative. prejudices based on culture, religion, region, Junior Management 678 623 16 1,311 6 525 792 gender or any other form of discrimination. Trainees 21 1 0 22 0 10 12 Grievance Handling Procedure – My Supervisory 461 359 11 824 7 585 246 Concern is a form based system introduced We provide work that is challenging, Contractual (FTA/ Consultant 8 5 11 24 0 16 8 for registration of grievances of regular productive and satisfying with better Advisor) employees. An effective grievance prospects for personal development for Total 1,172 1,388 155 2,699 16 1,336 1,379 procedure ensures an amiable work employees. We provide freedom to people to Grand Total 2,715 2,715 2,715 environment because it redresses the participate in the decisions that affect their grievance to mutual satisfaction of both lives and provide equality of opportunity for all women and men. Employee At Adani Power, we believe that constant environment. Human resource personnel at feedback on performance and career all the sites engage with the employees and Engagement development helps our workforce perform contractors to assist them in creating and with greater efficiency. Performance maintaining a conducive work environment. appraisal of all employees against set targets is one of the key tools of human resource Our engagement methods include development and management. As on Grievance Redressal Mechanism, Employee 31st March 2016, 2,464 eligible employees, Reach Out programmes and regular total 90.76% of employees had undergone one-to-one communication. These help us the performance appraisal. Our employees to resolve employee concerns promptly. are our most important stakeholders. As We have an open-door policy and any a part of the feedback and development employee can approach the leadership with mechanism, we have introduced a system their concerns without fear of reprisal. We of mid-year review. This process provides have also implemented grievance redressal the appraiser’s inputs to the appraisee portal named ‘MyConcern’ which serves as a in a structured way. Using this process, platform for employees to voice any kind of an appraisee can seek advice from his concern or grievance. reporting officer. Through this process, Decision making and there is a flexibility to amend the KRAs as management of shop per the Business Plan and effect change in Employee A healthy, happy and engaged workforce employee well-being, including their family floor is done through responsibilities. Well-being is essential for organisational success. We members. We have initiated parenting participative mechanism work in close partnership with our people sessions for employees and their spouses. through various We extend support to our employees and to understand their health and well-being Separate sessions for employees Kids committees in the plant contractors to develop good relations and needs and we offer a range of progressive on well-being, focus, character building that includes Canteen constructive bargaining practices. We services designed to improve their quality etc. Programs on Mindfulness, Stress Committee, Quality have a policy of equal opportunity and of life. We encourage them to lead healthy management, Nutrition and Obesity Circles and 5S initiative. provide employees with a bias-free work lifestyles and we actively look for new management. Similar program on financial ways to help them address their health well-being have been initiated for tax proactively. Apart from providing world class planning and wealth management across all facilities to employees viz; gymnasium, locations. sports – indoor and outdoor, club etc., we have initiated multiple programs towards 60 61 Adani Power Limited Sustainability Report 2015-16

An average of 7.2 Employee A holistic employee wellness approach has employees. At the plants, routine health APTRI centres are located within power technical services, operations and person-days per employee Healthcare been devised to ensure that employees check is mandatory as per the Government plant premises at Mundra, Tiroda, Kawai and maintenance, protection, metering, stay healthy. Complete health check-up is and we have maintained that procedure. of capability building has its Head Office at Ahmedabad. automation, commercial, regulatory and organised at periodic intervals for all the programmes was recorded other facets of the business. Capacity- in FY 2015-16. APTRI has world-class infrastructure at all building programmes also include themes its facilities located across the country and like “Nurturing Innovation”, Research fulfils the statutory training requirements Methods and Failure Mode Effects as per Indian Electricity Act, 2003 and Analysis (FMEA). Training and Training and education has always been Adani Power Training and CEA Safety Standards, 2010. The Institute Education considered as an integral part of Human Research Institute (APTRI) is thus favourably positioned to deliver There has been an increased focus on Resource development. We provide effective and focused programmes by virtue technical and behavioural training. A total of extensive training and learning opportunities APTRI, the research, training and of operational expertise and extensive 7.2 person-days per employee of capability to our employees through well-designed performance consulting arm of Adani network of highly experienced operational, building programmes has been achieved in APTRI, the research, and customised training programmes Power, contributes to the power sector regulatory, policy and financial experts. FY 2015-16. Total capacity building programs training and performance which are carried out through the year. The through capacity-building programmes. APTRI conducts customised short-term includes 2.5 person-days of Behavioural and consulting arm of Adani training and development requirements APTRI pursues excellence in the entire and long-term programmes ranging from 4.7 person-days of Technical training per Power, contributes of our employees are identified through a infrastructure value chain through its one day to 52 weeks. The programmes employee during the reporting year. APTRI to the power sector structured competency framework. Our scientifically-designed programmes covering are generally modular with generic and has also provided training to other external through capacity-building performance management system provides logistics, coal mining, ports, shipping, customisable sections allowing flexibility in clients from Indian and foreign utilities programmes. inputs for the Training Need Identification thermal power generation, solar cell and delivering for specific business needs. The for capacity-building programmes in the (TNI) process as each employee’s reporting module manufacturing, transmission and programmes include all functions covering infrastructure and energy segment. manager assesses their developmental distribution of electricity. APTRI is a Grade design, engineering, commissioning, needs. These, along with the specific inputs “A”, Category-I Institute accredited by Central from the individual employees about their Electricity Authority, Ministry of Power, own training needs, help us chart out the Government of India. training calendar for the year. APTRI operates through its four centres Training programmes are both technical as of excellence, i.e. Centre for Performance well as behavioural in nature (behavioural Consulting, Centre for Research & trainings cover leadership and soft Development, Centre for Knowledge & skills trainings). This includes classroom Technology and Centre for Academics, for APTRI has world-class trainings and outdoor trainings. We use accurate and precise programme delivery infrastructure at all its the Kirkpatrick method for evaluating and value creation with backward and facilities. effectiveness of our training programmes. forward integration capabilities.

Figure 5: Average Training Hours

80.00

64.11 70.00 62.12

60.00

50.00 45.37

39.36 40.00 34.13

30.00

Hours per employee Hours per 19.38 20.00

10.00

0.00 Senior Middle Junior Managment Managment Managment Supervisory Trainees FTA 62 63 Adani Power Limited Sustainability Report 2015-16

Behavioural Learning and development through derive specific needs, the HR team takes Talent A succession planning exercise for 33 High performing and high potential Training structured training programmes enhances inputs from PMS, consults HODs, and talks Management positions at N-1 and N-2 Levels has been employees have been identified through competency level of the employees. The to the employees during informal Focus initiated. Successors have been identified in PMS and Development centre process main objectives of behavioural training Group Discussions (FGD) on an annual a short-term and long-term planning range. and shall undergo a structured 12-month interventions are to create a culture of basis. The needs are converted into various These successors shall undergo structured Leadership / Management Development learning in the organisation which is learning solutions / training programmes managed development programs and Program. Endeavour is to provide the anchored around Adani’s Vision, Values which are offered to employees through required job rotations / job exposure and Hi-Potential employees with enriched / and Culture. Besides, its objective includes annual training calendar. To support this, other varied developmental experiences enlarged roles and ready them as successors capability building through various tools in we have adequate infrastructure with towards the destination role identified. to perform critical roles. Our trainings are order to prepare employees for the future audio-video aid and training classrooms. In aligned with the competency requirements assignments and challenges. addition to this, various training programmes Besides training in skill and leadership, our for the various positions in our organisation. in line with the training calendar are partnership with the academia has helped The new joinees also receive invitation for To achieve capability building in a new facilitated by the external consultants us create a thrust in generating interest and training need identification. business environment, it is essential to cover and trainers. learning among our employees. 169 each employee every year for behavioural behavioural training training. Each employee is required to During FY 2015-16, we rolled out 169 programmes undergo minimum three person-days of behavioural training programmes across rolled out across behavioural training every year. A Centre locations to achieve the overall target locations. of Excellence (CoE) for L & D and talent of average three mandays of training HR Policies, We ensure that our employees across levels scholarship to the children of employees Management has been established at per employee. Upon completion of the Employee and locations are able to understand the for higher education. corporate office to provide greater impetus programmes, we also measure effectiveness policies and for achieving this objective, we to this function. on the Kirkpatrick model on three different Benefits and have introduced an internal communication We ensure that men and women are levels that are (a) immediate reflections by Compensation – titled ‘Policy Pandit’. This platform provides compensated equally for performing the The learning needs are categorised into the learners, (b) knowledge retained by the employees to understand the policies. same work. We ensure that both genders three baskets which are Organisational, learners and (c) change in behaviour has We have all standard policies that can are treated equally in recruitment, training, Departmental and Individual. In order to occurred due to the programmes. help employees in delivering their duties hiring and promotion. We allow our at work and at home. Medical expenses employees to keep a work-life balance. reimbursement, privilege leave, casual leave, We have a policy on prevention of sexual APML Tiroda: Our 3,300MW maternity and paternity leave policy are to harassment. Power Plant in Maharashtra. name a few. The objective has been to keep policies simple, relevant and contemporary We offer maternity leave of three months to empower employees, offer self- to our employees and in case of any certification and develop accountability. complication during or after pregnancy, we also consider special requests for extension Employee welfare is treated with highest of such leaves. During the reporting year, priority in our organisation, extending to no employees have availed the benefit of their families. A number of initiatives are parental leave. taken to ensure that care and support is employees through policies which help us Prevention of Sexual Harassment improve quality of life for our employees. at the Workplace: Compensation, remuneration and benefits As per the requirement of The Sexual are routinely monitored and with support of Harassment of Women at Workplace highly capable and empowered leadership (Prevention, Prohibition & Redressal) Act, there are multiple strategies deployed 2013 read with rules made thereunder, to monitor compensation and benefit we have constituted Internal Complaints Table 13: Category-wise total person-hours of training for FY 2015-16 programme for employees across functions Committee which is responsible for redressal Behavioural Technical Total and location. Evaluation of compensation of complaints related to sexual harassment. and appraisal is based on principle of During the year under review, there were no Level Category Male Female Male Female ‘attract and retain’, followed with rewards complaints pertaining to sexual harassment. Senior Management 1,121 - 2,998 - 4,119 for long services. The approach has helped Middle Management 9,880 32 18,385 186 28,483 us minimise attrition which is a problem for most power producers due to distant Junior Management 28,666 - 57,395 61 86,122 A number of initiatives are location of the plants. For other benefits Trainees 13,686 - 1,162 - 14,848 taken to ensure that care we have a robust framework in the form of and support is employees policies for medical and healthcare policy, Supervisory 3,842 - 25,909 156 29,907 through policies which help which extends to the family, parents of our Contractual (FTA/ Consultants / Advisors) 208 - - - 208 us improve quality of life for employees, free transportation, interest-free our employees. loan, interest subsidy on housing loan and 64 65 Adani Power Limited Sustainability Report 2015-16

Human Rights We believe in protecting the human rights Right to Collective Bargaining: of our people, recognising their need for We do not have any collective bargaining respect and dignity. We also ensure that agreements with our workforce. However, stakeholders are protected against abuses our engagement activities provide sufficient and are given the opportunity needed to avenues to our employees as well as realise their full potential without any bias. contract workers to voice their opinions.

We are committed to fair employment Vigil Mechanism / Whistle Blower practices and freedom of expression, Policy: supported by a strong, Company-wide We have adopted a whistle blower policy value system. We provide every avenue to supported by the necessary vigil mechanism our workforce for voicing their opinion. We for employees and Directors to enhance ensure that all our practices are aligned with reporting of concerns about unethical our Human Rights Policy. behaviour. The said policy is published across the corporate website and internally. Our policies on human capital management aim to eliminate discrimination at the workplace. We have comprehensive disciplinary and grievance procedures in place that meet all requirements in terms of fairness as defined in the applicable We are committed to legislation. We are committed to the labour fair employment rights principles provided in the International practices and freedom of Labour Organisation core conventions, expression,supported by a including eradication of child or forced strong, company-wide labour and harassment or intimidation in value system. the workplace.

Engaging with fisherfolk at Mundra.

Occupational Health and Safety Safety Performance Mitigating Safety Risk Safety Awards & Recognitions Asset Safety Security 66 67 Adani Power Limited Sustainability Report 2015-16

As a part of our strategy to optimise total operational costs, we employ a blend of on-roll employees and contract employees. Considering the nature of the industry, our workforce faces health and safety concerns. As a responsible corporate, we measure our success with the care and concern that we invest in ensuring the health of our employees, security of lives and assets for overall business performance.

Occupational The power generating sector entails 1948 – comprising of a minimum of Health and activities that need consistent and a precise 50% representation from the non- approach in monitoring to assure effective management workforce. Safety (OH & S) performance and efficiency. We are aware that our facilities expose employees and – Monthly meetings of the Safety local communities to health and safety Committee include representation hazards. from the plants’ senior management.

As a first step, we consider identifying – Department-level Safety Committees occupational health risks and sensitising have been formulated to ensure our workforce as an integral part of our better engagement and participation orientation programme; we also offer from the workforce in our safety on-site trainings for both employees and management activities. contractors. We conduct regular awareness sessions for our human resource team on – All our plants have been certified with health, safety and environmental issues. The OHSAS / IS 18001:2007, strengthening process also entails imparting knowledge our occupational health, safety about company policies and applicable laws. systems and processes.

We have developed OH & S policies and – On-site emergency plans and safety procedures to identify and control safety operating procedures are displayed in risks. We accord strict adherence to the all locations. Labels, indicators, posters, policies for ensuring the occupational health tags and signage related to safety and safety of our workers. We have an aspects are displayed for awareness. established OH & S function at all sites that facilitates effective implementation of all – The safety performance at all locations policies and protocols. is measured with various lead and lag safety indicators. • A corporate safety team monitors the safety performance of all locations. • Adequate trainings are provided for the workforce at all operating locations – Each location has a Safety Committee, to motivate participation and achieve which has been constituted as per excellence in all aspects of safety. the guidelines of the Factories Act,

Safety Training and Awareness conducted during FY 2014-15 were In FY 2015-16, we worked on a number of continued in the reporting year as well. Performance topics and initiatives aimed at improving These were Aachar-Vichar, Safety Mela, the effectiveness of health and safety Safety Virus Scheme, Safety Halla Bol management at all our locations. We Scheme, Safety Chappa Scheme, Safety have various communication channels for Ambassador Scheme, Safety on Top and creating a health and safety awareness Traffic Safety Week, to name a few. within our organisation. Programmes

68 69 Adani Power Limited Sustainability Report 2015-16

Safety We have a safety reward and award scheme and lag indicators. Our Kawai Power Plant Figure 6: Safety Training Hours Contractual Employees APL Employees Awards and which plays a vital role in sensitising the has won Safest Plant of the Year for the 25,000 Recognition workforce at all levels. We appreciate the second consecutive year by going beyond 22,327 safety stars and departments for their the normal call of duty and striving towards 22,500 outstanding performance, which has further improving safety standards, which contributed significantly in achieving led to better station performance. We 20,000 operational excellence. believe that this scheme will help promote a

17500 safety culture across the organisation.

14,392 Our scheme of inter-plant safety award is 15,000 13,302 based on a structured framework of 15 lead

12,500 9,703 10,000 Figure 7: Injury Rate, FY 2015-16 Contractual Employees Training Hours Training Permanent Employees 7,066 7,500 0.10 0.09 3,929 5,000 0.09 2,467 0.08 2,500 1,220 0.08 0 64.0 0 0.07 Mundra Tiroda Kawai Udupi Bitta 0.06 0.05 0.05

We have aggressively Accidents and incidents: in the future by engaging DuPont as our Injury Rate 0.04 renewed our efforts The aim for FY 2015-16 was to achieve zero partner to support our ‘Zero Harm’ objective. 0.03 towards eliminating any lost time injuries and fatalities across our operating power plants. However, after the Health risk and occupational hazards: such possibility in the 0.02 future by engaging DuPont close of the reporting year, we witnessed Regular health risk assessments and risk as our partner to support one fatality at one of our plants. In line with identification pertaining to hazardous 0.01 our ‘Zero Harm’ objective. our OH&S management systems, a root- processes and areas are conducted. An area 0.00 0.00 0.00 0.00 0.00 cause analysis was conducted and this was with potential risk for Noise Induced Hearing 0 followed by appropriate corrective actions Loss (NIHL) and respiratory disorders Mundra Tiroda Kawai Udupi and preventive measures. has been identified. Frequent medical examinations of the workforce in these We have aggressively renewed our efforts areas is conducted. During FY 2015-16, there Figure 8: Lost Day Rates, FY 2015-16 Contractual Employees towards eliminating any such possibility was no case of reportable disease. Permanent Employees 548.00 550

500

450

400 Mitigating We approach risk mitigation with proactive example, creating awareness in the use of Safety Risk identification and assessment needs for protective equipment. Compliance with the 350 all routine and non-routine activities and Indian Factories Act and other applicable work areas and apply analysis processes regulations are also ensured. Besides the 300 and administering control measures. When applicable regulations, we are sensitive to 250 this is not possible, we reduce the risk to an sub-judice cases related to other thermal

acceptable threshold by adopting multiple power plants – including Writ Petition Rate Day Lost 200 control measures by including sophisticated number 79 of 2005 – so that proactive technology and offering special training for action for OH&S management can be taken 150 employees handling the specific tasks; for and institutionalised. 100

50

0.96 5.40 0.00 4.10 0.00 0.00 0.00 0 Mundra Tiroda Kawai Udupi 70 71 Adani Power Limited Sustainability Report 2015-16

Each of our plants Towards a Healthy Workforce areas are being conducted as per Aerial view of APML Plant at is equipped with an Due to the remote nature of the locations statutory requirements. Tiroda. occupational health centre, in which we operate, ensuring availability of ambulance facility with proper healthcare facilities at our plants is a • For identified vulnerable groups, we life-support systems, priority for us. Each of our plants is equipped conduct rigorous supervision and more qualified doctors and with an occupational health centre, frequent medical examinations. paramedical staff. ambulance facility with life-support systems, qualified doctors and paramedical staff. We • We also provide group and individual have tie-ups with reputed service providers counselling, health awareness for conducting pre-employment as well as programmes, induction training on periodic medical check-ups for our workers. healthcare facilities, health check-up The scope of this facility includes all our programmes in plants and townships, human resources and is covered as follows: first aid training and specialist services at our diagnostic centre. Our occupational health centres provide day-to-day preventive and curative health • Apart from personal accident, mediclaim care. and workman compensation policies, we have launched power privilege services • We conduct assessment of area specific for employees and their dependents, health hazards and risks. The centre valid everywhere across India. It includes is well-equipped to handle medical subsidised services for our employees for emergencies arising out of incidences or first aid, access to specialists and super- illness. specialist doctors, health check-ups, medical diagnostics and pharmacies. • Pre-employment checks and periodic medical examination of contract workers • We have been conducting blood deployed at sites including hazardous donation camps at all our locations.

Asset Safety Our concern for assets is serious, which • Layered security Security includes employees (both on roll and • Outer physical perimeter security contractual), raw material and plant and • Inner physical security machineries. • Security automation • Vigilance network • People as valuable assets • Review audits, implement corrective The most visible and easily understood measures element of asset protection is the guarding of assets by human resources. • Training and Education Recognising their importance, we While we optimise a mix of man- acquire, train and retain the best guarding, tech-convergence, talent in asset protection. Besides, surveillance, automation and patrolling, Table 14: Safety Statistics the outsourced service providers are we ensure that we update and upgrade Permanent Workforce Contractual Workforce also subject to continual training for to adopt best practices in ensuring development. material and people safety. Safety Parameters FY 2014-15 FY 2015-16 FY 2014-15 FY 2015-16 Installed access and Reportable Injuries 2 1 4 2 entry systems such as • Asset Protection • Safety and Human Rights Integrated Biometric By integrating technology with skills, While we have no policy at present to Lost time injury rate 0.16 0.04 0.05 0.03 Access Control System we have incorporated both devices and train security personnel about human Lost days 135 12 244 354 (IBACS) devices and other personnel to achieve optimum cover. We right issues that may arise out of security systems such as Fingerprint have installed access and entry systems processes and crises, we are consistently Lost days (Including fatalities) 12,135 12 12,244 6,354 Optic Power (FOP), such as Integrated Biometric Access innovating and upscaling our security Lost day rate 5.24 0.44 1.87 3.57 Fingerprint Optic Wireless Control System (IBACS) devices and practices to ensure that we are able to Lost day rate (Including fatalities) 471.42 0.44 94.03 64.00 (FOW) and Card Access other systems such as Fingerprint Optic train teams to deliver their best and also devices at entry points Power (FOP), Fingerprint Optic Wireless ensure that they are able to ensure asset Fatalities 2 0 2 1 in our premises. (FOW) and Card Access devices at entry and people protection at all times. Million Man-hours worked 5.15 5.51 26.04 19.86 points in our premises.

72 73 Adani Power Limited Sustainability Report 2015-16

• Principles and Procedures • Security, Asset Protection by tech- A part of the Security Policy, each convergence operating location of Adani Power has Technology solutions have paved the the following procedures: way for more effective, efficient and responsive asset protection programmes • The Security Management Plan: at a lower cost. We have invested heavily Each of our operating sites has a in enabling our asset protection teams security management plan that is with the latest technological tools to prepared by the security head and mitigate asset security threats at our approved by the CEO. It outlines sites. High-end access control tools, the immediate, medium-term and closed circuit TV camera networks and long-term physical asset security latest video analytics tools assist asset requirements of a site. protection teams in detecting, analysing and effectively responding to various • The Security Procedures Manual threats in the environment. This is a compendium of the site-specific standard operating • Crisis and Human Rights procedures for the routine and Besides regular training in managing non-routine activities of the security industrial crisis, there is enough training department. These SOPs are given to emphasise the non-usage of reviewed on yearly basis and verified force. The training of security personnel We sensitise employees, by the corporate security head. is conducted at the plant level by contract workers and utilising the services of both internal visitors to the fact that These policies and procedures are and external resources. At plant level the they are not just recipients regularly communicated to all relevant training is conducted on a fortnightly of a service but are stakeholders through periodic training, basis. Some part of the departmental also stakeholders in communication meetings, process training offers specific focus on human asset protection. reviews and in informal gatherings. We rights issues arising from any security sensitise employees, contract workers related matter. Aspects of human and visitors to the fact that they are rights are communicated in an informal not just recipients of a service but are manner using various incidents, news also stakeholders in asset protection. articles and mock drills. This ensures that Regular communication meetings and the security workforce is updated and induction events are organised by the sensitised towards human rights issues. site management for the workforce. The training covers the contractual workforce whose services are obtained through external security agencies. The average frequency of such training is on a fortnight basis. The service providers are evaluated with respect to their adherence to policies.

Water Biodiversity Climate Change Waste Management 74 75 Adani Power Limited Sustainability Report 2015-16

Power generation from fossil fuels is by nature a resource and emission intensive activity. Coal and water are the primary resources for thermal power generation. The major impact that our operations have on the environment include stack emissions and waste generation. Major emissions through stacks are of particulate matter, oxides of

nitrogen and sulphur. Besides, there is CO2 emission due to the use of fossil fuels. We go beyond legal compliance requirements to continually reduce our environmental emissions and impact. Our approach for risk management in operation planning is framed keeping in mind the precautionary approach. We strive to make our facilities environment-friendly and are in the continuous process of improving these.

The energy intensity figures for the reporting period are given below:

Table 15: Energy Intensity for Coal, LDO, HFO and Diesel with Availability and PLF Particulars Availability PLF Coal LDO HFO Diesel (GJ/MWh) (GJ/MWh) (GJ/MWh) (GJ/MWh) Consolidated FY 2014-15 90% 70% 8.96 0.0056 0.0069 0.0022 FY 2015-16 93% 76% 9.52 0.0020 0.0023 0.0017 Mundra FY 2014-15 93% 75 % 8.96 0.0046 0.0033 0.0008 FY 2015-16 95% 81.5% 9.82 0.0019 0.0011 0.0006 Tiroda FY 2014-15 86% 64% 8.89 0.0051 0.0103 0.0046 FY 2015-16 93% 69% 9.37 0.0012 0.0052 0.0040 Kawai FY 2014-15 93% 68% 9.08 0.0108 0.0132 0.0027 FY 2015-16 90% 75% 9.01 0.0025 0.0019 0.0017 Udupi FY 2014-15 NA NA NA NA NA NA FY 2015-16 86% 77% 9.86 0.004 0.0011 0.0005

Our operations consumed The main reasons to increase energy • Unit-6 and Unit-8 CEP Stage removal a total of 665.32 million intensity compared with the last financial resulted in 7,458 GJ of energy. GJ of energy in FY 2015-16 year are: compared with 490.36 million • APC saving by ESP Field Voltage GJ in FY 2014-15. 1. Developing Non-Conventional Energy Reduction of 0.02 million GJ. 2. Ageing of the Turbine 3. Blending and Coal Quality • Installed Variable Frequency Drive (VFD) in Unit-4 Condensate Extraction Pump During the financial year, through our (CEP) in Mundra with energy savings of energy saving initiatives we achieved about 10,244 GJ. 0.67 million GJ in savings in all operational plants, compared with 0.49 million GJ in • Installed three floating solar plants of 5 energy savings in FY 2014-15. Some of the kW each at Mundra – two on Narmada key initiatives taken to improve efficiency in reservoir and one on our Effluent various parts of our plants are as follows: Treatment Plant (ETP) – resulting in savings of 70 GJ. million GJ • CT Fan Replacement (33 units) resulted 0.67 in 0.076 million GJ in energy savings. Our operations consumed a total of 665.32 Energy savings in million GJ of energy in FY 2015-16 compared all plants. • Switching off CT fans during winter with 490.36 million GJ in FY 2014-15 in the resulted in 0.18 million GJ in energy form of primary fuels such as coal, HSD, HFO savings. and LDO used in boilers including the diesel 15.16 million GJ used in plant and machinery. In the event of FY 2015-16 Total • Switching off CW pumps during winter power outage or shutdown activities, we also Auxiliary power resulted in 0.08 million GJ in energy sometimes need to import electricity. consumption. savings. 76 77 Adani Power Limited Sustainability Report 2015-16

In this financial year, there was 1,832 GJ does not include energy consumption for potential and assess the impact surface water sources and cater to the power import compared with 4,130 GJ in activities in the upstream and downstream on downstream ecology and water water requirement of operating plants FY 2014-15. Our total auxiliary power of the reporting boundary. We are in the environments. However, in FY 2016-17, in the lean season in case of low water consumption for the year was 15.16 million process of developing a system to report the Tiroda station suffered generation availability in rivers due to low rainfall in GJ compared with 13.05 million GJ in energy consumption in upstream and losses for over a month due to drought any year. The MoEFCC has amended the FY 2014-15. We generated a total of 69.39 downstream activities and consequent conditions sweeping Maharashtra and Environment Protection rules stipulating billion units of power compared with 54,655 Scope 3 emissions. We shall be reporting the neighbouring states for the second specific water consumption at 3.5 3m / million in FY 2014-15, of which net sales were applicable upstream and downstream Scope consecutive year. Water availability MWh for existing plants. Our hinterland 64,616 million units compared with 51,030 3 emissions from FY 2016-17. during the lean season at Tiroda has plants have already achieved specific million units in FY 2014-15. This report been a major challenge. We have water consumption of about 2.5 m3/MWh worked on improving the water supply on an annual basis. We are encouraged by surface recharging and harvesting to consistently implement water Table 16: Material Consumption in the area by de-silting and cleaning of conservation programmes to maintain community water ponds at Tiroda. To the specific water consumption below Consumption (in MT) address this risk, we have created water 2.5 m3/MWh for hinterland plants. Fuel Type FY 2015-16* FY 2014-15 storage capacity at Tiroda and Kawai power plants to reduce the pressure on Coal 3,65,09,464.00 2,96,72,219.00

LDO/HSD 3,644.53 7,012.72 Water Management: One of HFO 3,785.11 8,557.41 our material aspects.

Diesel (consumed in equipment and vehicles) 3,189.30 2,722.04

Associated Materials

Lubricating Oils (in kL) 342.00 298.32

Grease 33.80 23.29

Other chemicals and additives 9,421.94 10,370.18

* This financial year includes our Udupi operations of 1,200MW.

Water In the power generation process, water is has been one of our focus areas. This has one of the primary raw materials. Water led us to implement some key environment is mainly used to generate superheated management initiatives as a part of our steam to drive turbines. As a strategy, our water management strategy, such as Our hinterland plants have coast-based plants are designed to use sea water conservation, rain water harvesting, already achieved specific water and our plants located hinterland are waste water use and recycling. Various water consumption of designed to use water from surface water initiatives are implemented for enhancing about 2.5 m3/MWh on an sources. While our coastal locations do water efficiency by controlling spillages, annual basis. not face stress in water drawal, water for increasing recycling and reusing of water hinterland plants is critical especially during and minimising discharge. harsh summers. It is due to this criticality that water management is a material aspect • Water Conservation: For hinterland to our operations. None of our power plants power plants, a source sustainability create any significant water stress in the study of surface water has been areas where we operate. conducted based on primary data and secondary historical data of the past Apart from these areas, ash handling and 25-30 years published by the Indian dust suppression also require water. This Metrological Department. These studies need is met from recycled and reused were conducted through expert agencies water at our power plants. Optimum water and institutes of repute in the field utilisation and reduction in its consumption to understand the water availability 78 79 Adani Power Limited Sustainability Report 2015-16

Effluent and sewage • Rain Water Harvesting: We have to be 1.71 million GJ in the reporting as Biodiversity The Convention on Biological Diversity National Accreditation Board for Education treatment plants, coal implemented rain water harvesting in our compared with 1.31 million GJ in (CBD), known informally as the Biodiversity and Training (NABET) accredited expert runoff treatment plant and hinterland plants to reduce withdrawal FY 2014-15. Our cooling towers at Convention, is a multi-lateral treaty. India agencies, at the stage of environmental secondary reverse osmosis of surface water. At Kawai, we have Mundra are seawater based and the enacted the Biological Diversity Act, 2002, clearances for the new projects. Going (RO) plant are in place. developed rain water harvesting pond discharged water is primarily rejected for preservation of biological diversity in beyond legal requirements, we are sensitive to collect and store rainwater which is from these. We monitor and ensure India, and to provide a mechanism for to biodiversity hotspots within a 25 km directly used for process and cooling that there is no significant impact of equitable sharing of benefits arising out of radius of our operations and we recognise requirements. In Udupi, rain water thermal discharge on the surrounding the use traditional biological resources and the presence of notified wildlife sanctuaries run-off from storm water drains is directly areas and we strive to maintain the knowledge. Biodiversity has been defined as within this extended radius. pumped into a cooling tower basin to temperature differential well within the “the variability among living organisms from partly replace sea water. At Mundra, we prescribed limit of 50C. before the water all sources and the ecological complexes of Nagzira, New Nagzira and Koka Wildlife are recharging ground water to mitigate is discharged from our premises. Effluent which they are a part, and includes diversity Sanctuaries fall within 25 km of our Tiroda the sea water ingress. and sewage treatment plants, coal runoff within species or between species and of Plant. In addition to the EIA, a separate treatment plant and secondary Reverse ecosystems.” study for prediction of impacts on Nagzira • Optimising Use: We planned to Osmosis (RO) plant are in place. Wildlife Sanctuary due to Particulate Matter, implement a High Concentration We firmly believe that biodiversity and gaseous and thermal emissions from the Slurry Disposal (HCSD) system for ash • Re-use and recycle: In addition to the its related ecosystems such as forests, Tiroda Power Plant was conducted through handling. During the financial year, we core processes, water is required for grasslands, mangroves and urban areas, expert external agency in 2011. Besides, implemented this system to further dust suppression in coal handling and provide different services to society, site specific wild life conservation plans reduce our water consumption in ash purging out bottom ash generated in our collectively known as Ecosystem Services. have been prepared and implemented. We handling. boilers. We ensure that our requirement We recognise the relationship between provided LPG gas connection and one year’s for all these secondary processes is met Ecosystem Services and our business supply of gas cylinders to all villagers in • Using Waste Water: The total waste by recycled or reusable water from our sustainability. The Company thus aims three such villages adjacent to the Nagzira water generation and treated waste water treatment plants or from the blow to minimise any negative impact on Wildlife Sanctuary to reduce the collection water discharge at our power plants down of cooling towers. At our Mundra biodiversity and Ecosystem Services. We and usage of firewood from the sanctuary was 303 million KL and 253 million and Tiroda plants, this requirement was have taken efforts for positive impact on the areas. For our Tiroda Power Plant 163.84 Ha KL, respectively, in the financial year. entirely met by recycled and reused environment and biodiversity around our forest land has been diverted out of which 253 million kL The quantity of water discharges from water. In our operations, we do not use operations. 15.25 Ha land is used for railway siding. For Treated waste Mundra and Udupi for the year was any water for coal cleaning. diversion of this forest land, an equal area water discharge. 173.59 million KL compared with 129.72 Large-scale plantations in and around our of non-forest land has been handed over million KL in FY 2014-15. The thermal power plants and office locations were to the forest department as compensatory energy from such discharges is computed taken up. We focus on the selection of local afforestation land in Ratnagiri district of and diverse species for such plantations. Maharashtra. This serves as offset habitat In Mundra, mangrove plantation has been for biodiversity affected due to forest land done in coastal areas. Environmental diversion. impact assessment has been carried out Mundra Udupi for prior approval of projects, including the As we have recently acquired the Udupi Figure 9: Specific Water Consumption Tiroda APL, Bitta assessment of impact on flora and fauna. power plant, we are conducting a Kawai Site-specific wildlife conservation plans are biodiversity and wildlife study in the area. 10.00 9.53 9.37 prepared after scientific studies wherever applicable for environmental clearance and Shergarh Wildlife Sanctuary is about 20 9.00 forest land diversions. Endangered flora and km from Kawai. Mundra-Mohindragarh and fauna within a 10 km radius of our project Mundra-Dehgam Transmission lines, which 8.00 locations are studied in order to ensure that are part of our downstream value chain, 7.00 areas of biodiversity significance, protected cross the Wild Ass Sanctuary in Kutch and region, or any IUCN red list species are not Patan districts. As areas of Rann of Kutch 5.69 6.00 affected by our operations. attract migratory birds, our group companies have installed bird deflectors on these 5.00 All our operating locations All our operating locations are outside the sections of transmission lines. At Mundra, 4.00 are outside the buffer areas buffer areas and eco-sensitive zones notified we have noticed the presence of two

Training Hours Training and eco-sensitive zones around biodiversity hotspots including near-threatened species as per the IUCN list, 2.69 2.67 3.00 2.50 2.42 SEA WATER notified around biodiversity wildlife sanctuaries, national parks and world i.e. the Black Necked Stork and Snake Bird Mundra hotspots including wildlife heritage sites declared under applicable (Darter) which we monitor regularly. 2.00 Udupi 0.153 sanctuary, national park regulations or international treaties ratified SURFACE WATER 1.00 Tiroda and world heritage sites by India. Ecology and biodiversity value and We are sensitive to the status of biodiversity Kawai declared under applicable presence of forest areas within a values of these areas and keep ourselves 0 APL, Bitta regulations or international 10 km radius of plant locations are mapped updated about any legal development FY 2014-2015 FY 2015-2016 treaties ratified by India. as part of EIA studies, conducted through 80 81 Adani Power Limited Sustainability Report 2015-16

or compliance requirements related to study through National Institute of storage capacity at Tiroda and Kawai circuit breakers (SF6) and CO2 based fire biodiversity hotspots. Oceanography (NIO) to scientifically locate power plants to reduce the pressure on extinguishers and GHG emissions due to the intake and outfall points. Screens and surface water source and cater to the water import of electricity during shutdowns. In Besides our actions to support biodiversity gate filters have been provided at the sea requirement of operating plants in lean the financial year, there was no import of and ecosystem services it is our focus area water intake to prevent marine life entering season in case of less water availability in electricity. Adani Power does not participate to conduct due diligence before selection the system. Cooling towers and 11 km rivers due to low rainfall in any year. in any carbon emission trading framework. of site and go beyond the compliance long seawater outfall channel have been At Tiroda, we have water storage capacity with regulations regarding biodiversity. designed to achieve differential temperature sufficient for 14 days. Furthermore, we are We are in the process of evaluation of Our approach is to improve the habitat, for between intake and outfall points of less in the process of increasing the storage emissions generated from the following species found in the vicinity of our plants than 3 degree C. We regularly monitor the based on scientific studies that we conduct marine biodiversity around the outfall area through external experts. We have also including zooplanktons and phytoplankton. Blending infrastructure with nature. conducted a marine impact assessment

Climate Mitigation and Adoption Strategy and infrastructure to withstand cyclones of Change Fossil fuels are viewed as one of the largest up to 198 kmph. At the same time, sufficient contributors of climate change and increase fuel stock is built at the plants to overcome in GHG and other air emissions like SOx any short-term fuel supply stress. Various and NOx. We were the first in the country scenarios of emergency owing to extreme To adapt to increase to commission supercritical boilers. These weather events have been envisaged and in water temperatures boilers save about 2% of fuel per unit of appropriate emergency preparedness plans due to climate change in power generated and help in subsequent have been charted out. the future, all our thermal reduction in GHGs per unit. In the future, we power plants are are considering utilising ultra-supercritical With respect to rising sea levels and cyclonic equipped with induced units for upcoming thermal power projects surges due to global warming, the finished draft cooling towers with to further reduce specific GHG emission. Till floor level of the Mundra power plant has a re-circulation system. date, we have commissioned 7,920MW been raised to 10 metres above chart datum (12 units of 660MW each) power plants (CD), whereas the highest high tide recorded based on supercritical technology. is 5.4 metres above CD. The intake water channel is designed at (-) 6 metres from To adapt to increase in water temperatures the CD to ensure water availability even at due to climate change in the future, all the lowest of the low tides. Similarly, at the our thermal power plants are equipped Udupi power plant, the sea water intake is with induced draft cooling towers with from -4.5m CD. The finished floor level is at a re-circulation system. This will help in 28.5 metres above Mean Sea Level (MSL). capacity to one month. At Kawai, upstream and downstream activities in our maintaining the desired temperature During due diligence, our team reviewed we have a water storage capacity sufficient value chain: difference across the condenser and the risks related to the increase in sea levels for one month. maintain plant efficiency over time. To and concluded that the plant will not be 1. Upstream transportation such as combat any increase in air temperature, impacted on this account. Managing our Carbon Footprint immediate supply point of coal, bulk all our power plants which are located in We calculate and monitor emissions chemicals and liquid fuels to our plants. tropical climatic zones are designed to For hinterland power plants, source generated from our power generation

perform under extreme temperatures. sustainability study of surface water has process which includes CO2, CH4 and N2O 2. Waste and ash management such as been conducted based on primary data and emissions. We do not use any biogenic emissions generated from vehicles Changes in precipitation rates may affect secondary historical data of the past 25-30 fuels and therefore, there are no biogenic deployed by Company for fly ash disposal water availability in our hinterland power years published by the Indian Metrological emissions. During the financial year, our and waste transportation from plant to

plants at Tiroda and Kawai. Accordingly, Department. These studies have been power plants emitted 59.4 million tCO2e disposal site. we have implemented suitable water conducted through expert agencies and GHG (direct emissions) compared with

conservation and recycling practices to institute of repute in the field to understand 47.34 million tCO2e GHG (direct emissions) 3. Emissions on account of employee mitigate the same including rain water the water availability potential and assess in FY 2014-15. The GHG emission intensity business air travel which does not include

harvesting and increasing green belt cover. the impacts on downstream ecology and sustained at 0.87 tCO2/MWh in the reporting GHG emissions in road travel to and from 7,920MW water environment. Based on the findings year despite addition of two sub critical the airport. Commissioned Extreme weather events such as stronger of these studies, financial impact has been units in the reporting boundary. and frequent storms can adversely affect the calculated considering the loss of power tCO /MWh We are in the process of developing a power plants based 0.87 2 on supercritical supply of fuel and damage generation and generation in case of non-availability of GHG Emission We also monitor emissions from our support system that captures these details and technology. grid infrastructure. To combat these aspects, water in any year due to very less rainfall. Intensity. processes such as company-owned vehicles look forward to covering this in our next we have designed and built all power plants To address this risk, we have created water and equipment, fugitive emissions from sustainability report. 82 83 Adani Power Limited Sustainability Report 2015-16

We have made conscious efforts to optimise our logistic networks including sourcing Stack Emissions (CEMS). In addition to this, we regularly material based on minimum landing costs, thereby reducing transportation distances and The total emissions of Particulate Matter conduct off-line monitoring of our stacks. developing local vendors to encourage local procurement. (PM), Oxides of Nitrogen (NOx) and The emissions generated from our stacks Oxides of Sulphur (SOx) were 11,895 MT, are maintained at levels which are below the 53,516 MT and 1,42,132 MT, respectively. limits as stipulated by the respective state Udupi Plant: Standing tall All our generating plants are equipped pollution control boards. on GHG emissions within with the latest technologies required for Adani Power. monitoring and controlling emissions being We are not involved in production, import or generated from our stacks. The emissions export of any Ozone Depleting Substances are monitored on a real-time basis through (ODS) in our operations. Hence these Continuous Emissions Monitoring System emissions are not material to our business.

NOx Figure 11: Emissions SOx Particulate Matter (PM) 1,50,000 1,42,132.84 1,35,002.57

1,25,000

1,00,000

75,000

Tonnes (t) Tonnes 53,516.76

50,000 34,343.40

25,000 9,316.26 11,894.84

Mundra Udupi Figure 10: Greenhouse Gas Emissions Tiroda APL, Bitta 0 Kawai Corporate Office FY 2014-15 FY 2015-16

30.00 27.0 NOx Intensity 26.0 Figure 12: Emissions Intensity SOx Intensity Particulate Matter (PM) Intensity 25.00 2.47 2.50

2.05 20.00 17.9 2.0 e 2

14.3 15.00 1.50 kg/MWh 10.00 7.62 1.0 7.02 6.91 0.77 Million Tonnes CO Million Tonnes 0.63

5.00 0.50 0.17 0.17

0 0 FY 2014-15 FY 2015-16 FY 2014-15 FY 2015-16 84 85 Adani Power Limited Sustainability Report 2015-16

Other Emissions During the reporting year, there was no A vermicomposting unit These fly ash bricks and tiles are used • Research and Development: We Fugitive emissions from the coal piles statutory limit for mercury emissions. has been commissioned to at all construction sites and township have engaged Advance Material and are mitigated through rain guns on the However, we are monitoring mercury utilise ash and produced areas. During FY 2015-16, a total of Process Research Institute (AMPRI), periphery of the coal yard and all our emissions from all our stacks. compost for utilisation in 1.58 million fly ash bricks and 0.13 Bhopal, which is a unit of Council of stacker-reclaimers are fitted with spray the green belt. million tiles were manufactured. This Scientific and Industrial Research (CSIR), systems. In addition, in Mundra and Kawai Our ash ponds are maintained in wet form initiative also aids in preventing the Government of India. Fly ash has some we have also provided wind shields. Wind to prevent fugitive emissions. In Tiroda, we usage of top soil for conventional brick major nutrients such as potassium, shield is also being installed at Udupi. We have installed High Concentration Slurry manufacturing. phosphorus, sulphur and micro nutrients also constantly monitor PM10 and PM2.5 in Disposal (HCSD) system for ash disposal like calcium, magnesium, iron, zinc and the ambient air. During the reporting year, where the ash gets solidified immediately. • We have also used pond ash in bund copper which are essential nutrients for there were no incidents related to a breach raising in the ash dyke to conserve top crops. AMPRI has been doing extensive in ambient air quality standards. soil. Further, we are offering free ash research and projects on use of fly in soil for roads, buildings and infrastructure conditioning to increase crop yield. development to encourage use of fly ash in nearby construction activities. • Production of Vermi-compost using Fly Ash, Kitchen Waste & Agriculture Waste Power plant operations generate non- There has been a lot of focus by the central • Studies have been carried out for the Waste: As we have a large area under Management hazardous as well as hazardous waste. Government on ash utilisation from power establishment of a fly ash unloading the green belt and landscaping at all There are regulations governing utilisation plants, primarily within about a 300km hub to cater to cement plants in operating power plants, we need good and disposal of the waste generated from radius from the plants. In line with the vicinity through supply in rakes by quality compost and manure. We have the thermal power plants. Ash is the major relevant guidelines from time to time as engaging an external consultant. initiated the composting of organic waste Installed state-of-the-art non-hazardous waste which is utilisable; well as our own treatment of ash as a useful generated at operating locations wherein ash disposal and bagging however, utilisation is a challenge for the resource, we have installed state-of-the-art • Control of fugitive dust: At all our plant fly ash is also utilised. Further, a vermi- technologies and entire power sector considering the quantity ash disposal and bagging technologies and locations, fly ash collection and handling composting unit has been commissioned supporting infrastructure of total ash generated. Geographically, supporting infrastructure for ash evacuation system is in dry form and pneumatic to utilise ash and produced compost for for ash evacuation transporting ash over longer distances prove and sale at our plants. This has helped us million operated. The transportation of ash to utilisation in the green belt. and sale at our plants. 1.58 unviable and environmentally damaging. increase our ash utilisation by supply to Fly ash bricks cement factories is done through closed Such constraints make ash utilisation a specialised agencies for use in cement manufactured. bulkers. Hence there are no fugitive material aspect. manufacturing. emissions during collection, handling or transportation of ash. The hazardous wastes generated are used As a strategy, we have adopted the following oil, oil containers and spent resins. The measures to effectively utilise ash and generated wastes are disposed through mitigate its negative environmental impact: authorised agencies as per the Hazardous Waste Handling and Management Rules for • Optimising ash: We have doubled appropriate treatment and disposal. the volume of exports by installing a Fly Ash Generation (t) Figure 13: Fly Ash Utilisation classification system, for enhancing Fly Ash Utilisation (%) Since we do not use any polychlorinated the collection of fly ash. In FY 2015-16, biphenyls (PCBs), there was no generation we have been able to utilise 72.7% of

of PCB waste. We do not engage in fly ash in comparison with 63% of fly 8,000,000 82.0 import or export of any hazardous waste ash utilisation in FY 2014-15 across our or materials under the Basel Convention. locations. 7,000,000 78.0 There is no radioactive waste generated and disposed from our power pants, however we • As a part of our local vendor 57,45,089 6,000,000 74.0 are regularly monitoring radioactivity in fly development strategy, we are also 54,99,774 ash as well as bottom ash. encouraging entrepreneurs to set 5,000,000 70.0 up fly ash brick manufacturing and Ash Management cenosphere collection business. 4,000,000 66.0 72.7%

Ash generated by combustion of coal A total of 63 entrepreneurs have (t) Tonnes Percentage is categorised in two parts – fly ash and been trained during the past 2 63.0% 3,000,000 bottom ash. Fly ash in the form of fine years and 50 entrepreneurs have 62.0 particles is collected in silos through already established fly ash brick Electrostatic Precipitators (ESP). Bottom manufacturing plants. 2,000,000 58.0 ash is collected in wet form from the boilers and stored in ash ponds. Ash handling and • We have also installed fly ash brick 1,000,000 54.0 72.7% conventional ways of disposal result in plants within our premises with a Fly ash utilisation. energy and water consumption. Recycled capacity of 12,000 bricks and 1,000 0 50.0 water is used for such purposes. tiles per day for in-house consumption. FY 2014-2015 FY 2015-2016 86 87 Adani Power Limited Sustainability Report 2015-16

At Udupi, ash utilisation Some highlights of ash utilisation in amidst several other power plants and is done through in-house FY 2015-16 include: cement manufacturing units are being cement blending unit as explored. Further, we are also utilising ash well as cement plants in • Export of classified fine fly ash to Middle for our own infrastructure mini-projects the vicinity. Eastern countries from Mundra for such as reservoir expansion at Tiroda. utilisation as cement admixture, ready- mix concrete and other allied purposes. Ash utilisation is a major challenge at Tiroda due to its geographical location. All the • At Udupi, ash utilisation is done through cements plants are at a distance of more in-house cement blending unit as well as than 250 km. To overcome this challenge, cement plants in the vicinity. we have developed a facility for loading of fly ash into specialised railway wagons. As • At Kawai, ash is primarily sold to nearby more cement plants in the country adopt cement companies on a long-term basis. railway unloading facilities, we will be able to utilise a greater amount of ash through • Options for ash utilisation for brick this means. manufacturing and ancillary products such as tiles manufacturing at Tiroda which is located hinterland and is also

Fly ash bagging and storage facilities at Mundra.

Introduction Education Health Livelihoods Rural Infrastructure Development 88 89 Adani Power Limited Sustainability Report 2015-16

anitation nratrtre Proram or ommnit ood eeoment onation oie am eat are nit nratrtre or dation ater eat oneration am Proet rin antrition

edia Aid ort Rural Infrastructure

Community Health

ommnit ree enaement Pantation AA tro ort Proram tra eent oari

i deeoment Adani ida trainin andir ortin nanin ot ieiood tro oo aritre anima andr ia e e ro ort Education Sustainable Livelihood

90 91 Adani Power Limited Sustainability Report 2015-16

Introduction As we are in the business of power Our CSR activities are identified and Education generation, creation of such large assets implemented in consultation with the of national importance requires large community through an independent need investment in terms of land in many areas in assessment and a Participatory Rural We share, we learn - project the country. As a responsible organisation, Appraisal (PRA). The inputs are then taken UDAAN. we take upon this onus and commit to from an Advisory Committee, including As a responsible support the development of the area and senior members from the Adani Foundation organisation, we take the community in which we operate. This and eminent personalities from the field. upon this onus and leads to positive benefits to our business The CSR agenda is subsequently deliberated commit to support the case in terms of economic growth, upon and after careful consideration, development of the area employability, a social license to operate and processed by our leadership in consultation and the community in being employers of choice. With this intent, with Adani Foundation. We have partnered which we operate. we invest in community activities fostering with the government agencies, NGOs, sustainable and integrated development, Panchayati Raj Institutions (PRI) and local thus improving quality of life. We have communities for effective implementation formulated a Sustainability and Corporate of activities. We proactively work to resolve Social Responsibility Policy (CSR). emerging social issues and during the Our CSR activities are implemented through reporting year, there were no significant our partner Adani Foundation which grievances from the communities around facilitates various activities in the following any of our operational sites. focus areas: We ensure that all our initiatives are • Education successfully adopted by the community • Community Health by ensuring their active involvement in • Sustainable Livelihood Development the process of development. We carry • Rural Infrastructure Development out internal as well as external impact assessment activities for our community development projects.

During the FY 2015-16, the Company’s subsidiaries have spent `37.7 million towards the CSR activities through Adani Foundation for various community development initiatives. However, the total expenses tainae made by Adani Foundation on CSR Lieiood initiatives was `234 million. eeoment We believe that education offers a firm Adani Vidyalayas at Tiroda and Kawai, dation 379 foundation and means to improve the Adani Public School in Mundra provides quality of life, especially for the marginalised state of art, quality education to Meritorious and the economically vulnerable. Our the students at subsidised costs. At students provided goal is to provide ‘quality’ in education to Bhadreshwar, near Mundra, we have Adani with quality children across all social strata with learning reached 379 meritorious students education. Foundation experience as core objective. We work with with quality education; of these 111 ra government institutions and private entities students belong to fishing communities. nratrtre to achieve this objective where teaching is The Foundation has initiated and eeoment effective and community participation is implemented several educational the preamble for developing a conducive programmes with the Government and ommnit environment for children to learn and grow. trust run schools. eat We ensure that financial constraints do not limit the opportunity for the wards and the • Enabling Education through parents in seeking quality education. Handholding Government Schools Our goal is to provide & Other Initiatives: We support the ‘quality’ in education to • Schools that nurture - Adani Vidya existing efforts of the Government children across all social Mandir: The Adani Vidya Mandir (AVM) by bridging the gaps and playing a strata with learning aims at providing cost free quality complementary role in imparting quality experience as core education to meritorious students education for children belonging to objective. coming from underprivileged families. the low income groups. Foundation 92 93 Adani Power Limited Sustainability Report 2015-16

Schools that nurture – Adani Vidya Mandir. 2,46,000 People we have supported towards a healthy life

rural clinics 11 and medical camps

lives benefited by units of blood rural clinics and through ‘GO-RED’ 67,000 medical camps 1,800 Blood Donation drive Around 31,000 students has been consistently working towards need as it was learnt in Rajasthan. During across India have been elevating standards of education and winter season, winter wear was provided benefited through increasing enrolment rate in these to 8,642 needy children from 34 schools programme UDAAN. schools, especially for female students. and 43 Anganwadi centres so that the Blood is precious. It cannot be produced by 95 villages and 6 fisherfolk settlements We have extended infrastructure and cold climate does not deter them from any technology; only a humane approach in the regions of Mundra, Kawai, Tiroda material support to these Government attending school. by donating blood can save lives. Blood and Udupi attending to around 13,000 schools. A special emphasis is given donation drive, ‘GO-RED’ was organised patients a month and reaching around to increase teacher’s effectiveness by • We share, we learn - project UDAAN: during the year at multiple locations where 156,000 beneficiaries during the year. organising regular teacher’s training We strive to inspire by encouraging total of 1,800 bags of blood were collected This initiative has proved to be a boon for programmes, conducting exposure youth coming from various educational and handed over to respective blood banks. women and children as well. tours & introduction of Information, institutes across the country to visit Communication, and Technology (ICT) Adani Group of Industries at Mundra, • Mobile Health Care Units (MHCU): The • Respect and dignity – Senior Citizen by introducing e-Learning solutions Tiroda and Kawai. Under this project, an main objective is to reduce travel time, card: Mundra has a peculiar situation in such schools. As part of our efforts, inspiration exposure tour is organised hardships and expenses, by increasing where elderly people stay behind when programmes such as DISHA, a career during which students have an availability and convenience of quality the youth migrate for better livelihood. counselling programme, Parvarish, opportunity to visit our plant to get an healthcare services to the remote To encourage senior citizens to focus Science-On-Wheels and support for insight of the processes and the value villages. Five MHCUs cover more than on preventive healthcare and provide science laboratory have proven to generation. The experience is profound be beneficial for more than 46,000 and offers them inspiration to think students cumulatively covering ~ 300 beyond academics and seek inspiration One of our initiatives for schools in last one year. In cases where to start envisioning various career Health care where we operate. schools need extended support we possibilities, including entrepreneurship. work with Governments on ‘School This year, around 31,000 students across Adoption’. In one such programme, we India have been benefited through have collaborated with Government programme UDAAN. This programme of Rajasthan to adopt 34 schools with is replicated at all power sites where support in repairing, refurbishing and students from schools and colleges in the bridging the prevailing gaps. The effort vicinity are encouraged to visit has been a tool to identify the specific power plants.

Health Our effort in our community is to ensure and medical camps which have touched that we are able to deliver affordable and about 67,000 lives. Further, financial accessible healthcare. By providing mobile assistance has been provided to around 460 healthcare units (MHCU) and rural clinics, patients. In all, we have touched the lives of we ensure good medical facilities are around 246,000 people towards a healthy available within remote villages. Besides life. MHCU, we have organised 11 rural clinics 94 95 Adani Power Limited Sustainability Report 2015-16

healthcare coverage “Health Card to among adolescent girls and women in assisted to adopt the SRI technique. The Coastal Community Projects: Fisherfolk are Senior Citizen scheme” was introduced. Tiroda benefiting more than 8,000 girls. farmers observed an ~ 30% increase in major stakeholders for our operations as Health check-ups, coverage of up to The project offers number of services output and 31% decrease in expenditure two of our sites are located are in coastal `50,000 are provided to people over the starting from creating awareness, after implementing this project. We provide areas. Our interventions are focused age of 60 years. Till date the initiative haemoglobin testing after counselling the farmers with technological support in upon enhancing their livelihood skills and is spread across 66 villages in Mundra, at regular intervals, providing Iron Folic agriculture which involves practical trainings introduction of technology through Mandvi and Anjar area. The programme Acid tablets, promoting kitchen garden and familiarisation visits. In order to enhance up-skilling techniques which includes has registered about 7,500 beneficiaries. for green vegetables, etc. Approximately the practice of water conservation among growing sea-weeds and polyculture as 120 children in Mundra were identified the villagers a study was conducted to a pilot project. During the season when • Early child development – nutrition and as malnourished and 109 of these evaluate watershed projects at Kawai. Other fishing is not permitted, we provide alternate care: To address malnutrition among children were treated to overcome initiatives include installation of biogas employment to the fishing community. children a joint project with Integrated malnourishment while the remaining at households, and cattle vaccination They are trained in activities such mangrove Child Development Services (ICDS) was 11 are undergoing treatment. camps for animals, and encouraging development, which promotes the fish initiated at various sites. We focus on farming communities and cattle owners in colonies and improves their catch. This reduction and prevention of anaemia supporting vermi composting. intervention has created an avenue for enhancing income levels for the fishermen.

Livelihoods Sustainable Livelihood Development: Women SHGs: Various women oriented Rural Rural Infrastructure Development (RID) cleanliness. We have carried out various Livelihoods is one of the major areas that initiatives were undertaken through Infrastructure initiatives are aimed at addressing village development activities including, need to be focused upon to bring about a Self-Help Groups (SHGs) formation and community needs especially by bridging school infrastructure, electrification using holistic development in the communities. trainings for ensuring that these women Development the gaps for enhancing their quality renewable energy, etc. Also, with the Adani Foundation has been working are self-reliant and independent. The of life. Our RID Projects includes water installation of safe drinking water facilities towards providing the community members sessions were held to teach various home conservation projects, drinking water more than 5,300 people have benefited. with a number of livelihoods and income based entrepreneurial skills such as making projects, education related infrastructure, Over 18,600 people have benefited directly generating initiatives. Trainings include IT, soap, shampoo, cleaner etc. which can be improvement and development of roads owing to our RID initiatives across all crane operations, automobile assistance, commercially made available in retail stores for better access and other need based locations and this number is rising. electrician, beautician, tailoring etc., so as and supplied to business houses in the infrastructure. Besides water conservation, to ensure dignified livelihood for themselves vicinity. SHGs have benefitted more than recharge and ensuring supply of potable Society Grievance Mechanism and also gain financial independence. 200 women. water, we support infrastructure to improve In an effort to ensure effective social life in these communities. Aligned to the development, we engage with our Vocation: This year more than 1,000 youth Agriculture and Ancillary Support: vision of “Swachh Bharat” shared by our stakeholders and listen and learn from were trained with soft skills and technical Over 1,050 farmers from 35 villages of Prime Minister, we have constructed them in order to gauge their requirements. trainings. With the objective of promoting Tiroda were beneficiaries of a training sanitation facilities in villages. Several We believe in participatory approach for skill building among youth, Adani foundation programme conducted to share organic cleanliness drives have been implemented development and therefore, we have has collaborated with the Government farming techniques along with a System in communities across all our locations to instituted a feedback mechanism for local under a Public Private Partnership model of Rice Intensification (SRI) conducted sensitise and mobilise communities towards communities at all our locations. and supports the Industrial Training in cooperation with the Agriculture Institutes (ITIs) in Mundra and Tiroda. Department. These farmers were also

1,000 200+ 1,050+ 5,300+ 18,600+ youth were trained with soft women benefitted beneficiaries from 35 skills and technical trainings. villages of Tiroda for training people got access to safe people benefited from programme conducted drinking water installation of safe drinking to share organic farming water facilities techniques

VOCATION SELF-HELP GROUPS AGRICULTURE & ANCILLARY RURAL INFRASTRUCTURE DEVELOPMENT SUPPORT

96 97 Adani Power Limited

Various women oriented initiatives were undertaken through Self-Help Groups (SHGs).

We periodically conduct We receive feedback, both through formal did not have any significant negative impact impact assessment and informal channels. This includes letters, on local communities at any of our locations studies of our CSR email, one-on-one verbal communication and there were no cases of physical or initiatives at all operating etc. We then record the feedback, including economic displacement of local people at locations covering 100% the appreciation as well as grievances our operations within the boundary of this of the locations. and expectations from local communities. report during FY 2015-16. We periodically During FY 2015-16, we received 12 conduct impact assessment studies of our grievances through both formal and informal CSR initiatives at all operating locations channels. All the grievances received from covering 100% of the locations. Impact the local communities were reviewed at assessment of CSR activities is done on individual plant head level and resolved rolling basis so that every individual location with the suitable action. Suggestions and undergo impact assessment, once in 5 year. demands by local communities shared For the Jitpur coal block in Jharkhand, land informally are routed through the Gram acquisition process has already started. The Panchayat and discussed in presence of the Social Impact Assessment study is being village development committee. conducted and R & R action plan will be Our CSR team provides support to the implemented after its approval by the State community if suggestions are related to the Govt. We will be initiating the social impact community’s advantage. assessment study for land acquisition for Conversion Factors Godda project in Jharkhand shortly. Independent Assurance Statement Resettlement and Rehabilitation We adhere to the applicable regulations We comply with all applicable regulations and State Government guideline for GRI Content Index for Resettlement and Rehabilitation (R & R) R & R and all applicable requirements has in respective states. There were no cases been complied with. Mapping with National Voluntary Guidelines (NVG) of infringement of rights of indigenous Communication on Progress and Mapping with UN Global Compact Principles community groups across our locations. We Mapping with Sustainable Development Goals (SDG) Mapping with International Finance Corporation (IFC) Glossary 98 99 Adani Power Limited Sustainability Report 2015-16 CONVERSION FACTORS Appendices Conversion Conversion Factors 101 Independent Assurance Statement 102 GRI Content Index 105 Mapping with National Voluntary Guidelines (NVG) 110 Factors Communication on Progress and Mapping with UN Global Compact Principles 111 Mapping with Sustainable Development Goals (SDG) 117 Mapping with International Finance Corporation (IFC) 125 Sl. No. Parameter Conversion Factors Glossary 126 1. Energy 1 Gcal = 4.1868GJ 1 KWh = 0.0036 GJ 2. GHG Emissions Purchased electricity from the grid 1 MWh = 0.96 tCO2e, (Ref.: CO2 baseline data, V-11, CEA)

Global Warming Potentials (tCO2e)

CO2 = 1

CO4 = 21

N2O = 310

SF6 = 23,900 (Ref.: DEFRA, UK) Emissions Due to Air Travel:

Domestic (<463 km) = 0.00017147 tCO2e per person-km

Short Haul (>=463 km and <1108 Km) = 0.000097 tCO2e per person-km

Long Haul (>1,108 km) = 0.00011319 tCO2e Emissions Due to Logistics of Input Material and Waste:

Road Transport = 0.000204 tCO2e per tonne-km

Rail Transport = 0.00011517 tCO2e per tonne-km

Sea Transport = 0.0000332 tCO2e per tonne-km 3. Water 1 KL = 1 m3 4. Fuels Furnace Oil 1 KL = 0.95 MT GCV = 10,500 Kcal/Kg Diesel 1 KL = 0.85 MT GCV = 10,500 Kcal/Kg LDO 1 KL = 0.86 MT GCV = 10,500 Kcal/Kg 5. Health and safety 1 Fatality = 6,000 person-days lost

100 101 Adani Power Limited Sustainability Report 2015-16

Company and other representatives, • Procurement Practices – G4- Inclusivity: including data owners and decision- EC9; The participation of stakeholders Independent Assurance Statement makers from different divisions and • Availability and Reliability- EU10; in developing and achieving an functions of the Company; • System Efficiency – EU11; EU12; accountable and strategic response to Scope and Approach The reporting Aspect boundary of DNV GL’s assurance engagements Sustainability. Adani Power Limited (APL) sustainability performance is based on are based on the assumption that • Performed sample-based reviews of Environmental commissioned DNV GL Business the internal and external materiality the data and information provided by the mechanisms for implementing • Materials – G4-EN1; The stakeholder engagement process Assurance India Private Limited (‘DNV assessment predominantly covering the client to us as part of our review the Company’s sustainability related • Energy – G4-EN3, G4-EN5, is well established and involves planned GL’) to undertake an independent APL’s operations at Mundra and 3 have been provided in good faith. We policies, as described in the Report; G4-EN6; engagement with key stakeholders assurance of the Company’s subsidiaries (i.e. APML, APRL and UPCL) were not involved in the preparation • Water – G4-EN8, G4-EN10; to identify and respond to significant Sustainability Report 2015-16 (‘the as set out in the Report. of any statements or data included in • Performed sample-based checks • Biodiversity – G4-EN11, G4- sustainability concerns. The material Report’) in its printed and web format. the Report except for this Assurance of the processes for generating, EN12, G4-EN13, G4-EN14, issues emerging from materiality The intended user of this assurance We understand that the reported Statement. DNV GL expressly disclaims gathering and managing the EU13; analysis were collected and prioritized, statement is the management of the financial data (including CSR spends) any liability or co-responsibility for any quantitative data and qualitative • Emissions – G4-EN15, G4- and the results are fairly reflected in the Company. Our assurance engagement and related information are based on decision a person or an entity may make information included in the Report. EN16, G4-EN17, G4-EN18, Report. In our opinion, the level at which was planned and carried out in August disclosures and data from APL’s Annual based on this Assurance Statement. G4-EN19, G4-EN20, G4-EN21; the Report adheres to this principle is 2016 – January 2017 for the financial Report 2015-16, which is gone through During the assurance process, we • Effluents and Waste – G4- ‘Good’. year ending 31st March 2016. a separate independent audit process. Basis of our Opinion did not come across limitations to EN22, G4-EN23, G4-EN24, The reported data on economic A multi-disciplinary team of the scope of the agreed assurance G4-EN25, G4-EN26; Materiality: We performed our work using performance and Contribution to Adani sustainability and assurance specialists engagement. • Compliance – G4-EN29; The process of determining the issues AccountAbility’s AA1000 Assurance Foundation (CSR expenses) is based performed work at APL’s sites in India that is most relevant to an organization Standard 2008 (AA1000 AS) and on audited financial statements by the i.e. APL Mundra, Gujarat and subsidiary Opinion Social and its stakeholders. DNV GL’s assurance methodology Company’s statutory auditors and not companies Adani Power Maharashtra On the basis of the verification Labour Practices and Decent Work VeriSustainTM1, which is based on our included in our scope of work. Limited (APML) at Tiroda, Maharashtra undertaken, nothing came to our • Employment – G4-LA1, G4-LA2, The materiality determination process professional experience, international and Adani Power Rajasthan Limited attention to suggest that the Report G4-LA3, EU15, EU16, EU17; was revalidated based on inputs from key assurance best practice including Responsibilities of the Management (APRL) at Kawai, Rajasthan, UPCL at does not properly describe APL’s • Occupational Health and Safety stakeholders including global and peer International Standard on Assurance of APL and of the Assurance Udupi Karnataka, Bitta Solar PV at Bitta, adherence to the GRI G4 reporting – G4-LA5, G4-LA6, G4-LA7, G4- sector reports, company policies, value Engagements 3000 (ISAE 3000) and Providers Gujarat and at its Corporate Office at requirements including the Principles LA8, chain impacts of operations, business the Global Reporting Initiative (GRI) The Management team of the Company Ahmedabad. We adopted a risk based for Defining Report Content, • Training and Education – G4- risks and Senior Management at APL. Sustainability Reporting Guidelines. have the sole responsibility for the approach, i.e. we concentrated our representation of the material aspects, LA9, G4-LA10, G4-LA11; The Report focusses its disclosures on preparation of the Report and are verification efforts on the issues of related strategies and disclosure key material aspects at macro level and We planned and performed our work responsible for all information disclosed high material relevance to Company’s on management approach and Human Rights has not missed out any known material to obtain the evidence we considered in the Report as well as the processes power generation (O&M) business and performance indicators as below: • Indigenous Rights – G4-HR8; aspects. The management of APL necessary to provide a basis for our for collecting, analysing and reporting its key stakeholders. We undertook the has established internal management assurance opinion for providing a Type the information presented in the printed following activities: • General Standard Disclosures: Society process for monitoring and management 2 Moderate Level of assurance based and web-based versions of the Report, The reported information on General • Local Communities – G4-SO1, G4- on a continual basis for their long term on AA1000AS. In doing so we evaluated including the maintenance and integrity • Reviewed the Company’s approach Standard Disclosure generally meets SO2, EU22; organisational sustainability. In our the performance data presented in the of the website. In performing our to stakeholder engagement and its the disclosure requirements for the • Anti-corruption – G4-SO3, G4- opinion, the level at which the Report Report using the reliability principle, assurance work, our responsibility is to materiality determination process; ‘in accordance’ – Comprehensive SO4, G4-SO5; adheres to this principle is ‘Good’. together with APL’s data protocols for the management of APL; however, our option and the reasons for omissions how the data is measured, recorded statement represents our independent • Verified the sustainability-related and partial disclosure were explained Product Responsibility Responsiveness: and reported. The performance data in opinion and is intended to inform statements and claims made in the to us and explained within the • Power Outage Frequency – The extent to which an organization the agreed scope of work included the the outcome of our assurance to the Report and assessed the robustness Report. EU28; responds to stakeholder issues. qualitative and quantitative information stakeholders of APL. of the data management system, • Average Power Outage Duration on sustainability performance data accuracy, information flow and • Specific Standard Disclosures: – EU29; We consider that the Report has disclosed in the Report prepared by DNV GL provides a range of other controls; The Report describes the generic • Average Plant Availability Factor fairly disclosed the strategies and APL based on GRI G4 in line with its ‘in services to APL, none of which Disclosures on Management – EU30. management approach related to accordance’ – Comprehensive option, constitute a conflict of interest with • Examined and reviewed documents, Approach (DMA) and Performance identified key sustainability aspects and covering economic, environmental this assurance work. DNV GL was data and other information made Indicators for identified material Observations and challenges considering the overall and social performance for the activities not involved in the preparation of available by the Company; Aspects as below: Without affecting our assurance sustainability context of the sector undertaken by the Company over the any statements or data included in opinion we also provide the following for its Operation and Maintenance reporting period 1st April 2015 to 31st the Report except for this Assurance • Conducted in-person interviews with Economic observations. We have evaluated the activities defined within the report as its March 2016. Statement. top and senior management team of • Economic Performance– G4-EC1, Report’s adherence to the following reporting boundary. In our opinion, the G4-EC2, G4-EC3, G4-EC4; principles on a scale of ‘Good’, level at which the Report adheres to this 1The VeriSustain protocol is available on www.dnvgl.com • Indirect Economic Impacts – G4- ‘Acceptable’ and ‘Needs Improvement’: principle is ‘Good’. EC7, G4-EC8; 102 103 Adani Power Limited Sustainability Report 2015-16 GRI Content Index

Reliability: interpretation of the data and its Opportunities for Improvement The accuracy and comparability of reliability. We observed that the Report The following is an excerpt from GRI Content Index information presented in the report, as presents a faithful description of the the observations and opportunities well as the quality of underlying data reported sustainability activities for the for improvement reported to the management systems. reporting period. management of the Company and are not considered for drawing our The majority of data and information Additional principles as per DNV GL conclusions on the Report; however General Standard Disclosures verified at the Corporate Office and VeriSustain they are generally consistent with the General Standard Disclosures Page Omissions External Assurance four operational sites were found to be Completeness: How much of all the management’s objectives: Strategy and Analysis accurate. The data collection system information that has been identified has been strengthened and the process as material to the organisation and its • Increased awareness and G4-1 Page 2-5 Yes Page 102-104 of implementation of an ERP based stakeholders is reported. implementation of IT enablement G4-2 Page 2-5, 28-30 Yes Page 102-104 system is in progress. Some of the of Sustainability Performance Organisational Profile data inaccuracies identified during The Report has fairly reported the Management and Reporting G4-3 Page 12 Yes Page 102-104 the verification process were found General and Specific Standard initiative with standard operating to be attributable to transcription, Disclosures including the management procedures may be established G4-4 Page 13-14 Yes Page 102-104 interpretation and aggregation errors approach, monitoring systems and across sites for consistency G4-5 Page 6 Yes Page 102-104 and the errors were communicated sustainability performances indicators in monitoring and recording G4-6 Page 13 Yes Page 102-104 and subsequently corrections made against GRI G4 requirements sustainability performance G4-7 Page 14 Yes Page 102-104 in the reported data and information. corresponding to the ‘in accordance’ – indicators; this will help in further G4-8 Page 49 Yes Page 102-104 Hence in accordance with AA1000AS Comprehensive option. The reporting strengthening the reliability of (2008) requirements for a Type 2, boundary is limited to Operation and sustainability parameters. G4-9 Page 15 Yes Page 102-104 Moderate level assurance engagement, Maintenance activities. In our opinion, G4-10 Page 8, 54-55, 15, 59-60 Yes Page 102-104 we conclude that the specified the level at which the Report adheres to • The future report may consider G4-11 Page 59-66 Yes Page 102-104 sustainability data and information this principle is ‘Good’ reporting on Aspect-specific DMA G4-12 Page 66-68, 53-56 Yes Page 102-104 presented in the Report is generally related to identified material aspect accurate and reliable. In our opinion, the Neutrality: The extent to which a report and to further strengthen disclosure G4-13 Page 6-8, 16-18 Yes Page 102-104 level at which the Report adheres to this provides a balanced account of an on supply chain activities related to G4-14 Page 25-26, 80, 77 Yes Page 102-104 principle is ‘Acceptable’. organization’s performance, delivered in impact on APL due to risks in supply G4-15 Page 6 Yes Page 102-104 a neutral tone. chain G4-16 Page 18  Yes Page 102-104 Specific evaluation of the information EU1 Page 13 Yes Page 102-104 on sustainability performance The disclosures related to sustainability • Sustainability performance may be We consider the methodology and issues and performances are fairly benchmarked with peers to further EU2 Page 15 Yes Page 102-104 process for gathering information reported in a neutral tone, in terms of strengthen the disclosure of the EU3 Page 50 Yes Page 102-104 developed by APL for its sustainability content and presentation, however sustainability impacts of material EU4 Not Applicable Yes Page 102-104 performance reporting to be Report could further bring out responses aspects and strategic responses EU5 Page 83 Not applicable: Adani Power – appropriate, and the qualitative and related to the challenges faced during to material issues and stakeholder does not participate in any quantitative data included in the the reporting period. In our opinion, the expectations and establish short, carbon emission trading Report was found to be identifiable and level at which the Report adheres to the medium and long term targets and framework. traceable; the personnel responsible principle of Neutrality is ‘Good’ objectives related to its identified could demonstrate the origin and material Aspects and topics. Identified Material Aspects and Boundaries G4-17 Page 14 Yes Page 102-104 For and on behalf of DNV GL Business Assurance India Private Limited Bengaluru, India 27th January 2017 G4-18 Page 27-30 Yes Page 102-104 G4-19 Page 28 Yes Page 102-104 G4-20 Page 28 Yes Page 102-104 Nandkumar Vadakepatth Balasubramoniam, Sivasubramaniam G4-21 Page 28 Yes Page 102-104 Lead Verifier Regional Sustainability Manager – India Subcontinent and Middle East DNV GL Assurance Reviewer, G4-22 Page 7 Yes Page 102-104 DNV GL Business Assurance India Private Limited India Business Assurance India Private Limited India G4-23 Page 6-7 Yes Page 102-104 Bangalore, India, October 30, 2015 Stakeholder Engagement G4-24 Page 25-26 Yes Page 102-104 G4-25 Page 25-26 Yes Page 102-104 G4-26 Page 25-26 Yes Page 102-104 DNV GL Business Assurance India Private Limited is part of DNV GL – Business Assurance, a global provider of certification, verification, assessment and training services, helping customers to build sustainable business performance. www.dnvgl.com G4-27 Page 25-26 Yes Page 102-104 104 105 Adani Power Limited Sustainability Report 2015-16 GRI Content Index

Specific Standard Disclosures General Standard Disclosures Page Omissions External Assurance Material DMA and Indicators Omissions External Report Profile Aspects Assurance G4-28 Page 6 Yes Page 102-104 G4-29 Page 6-7 Yes Page 102-104 Category: Economic G4-30 Page 6 Yes Page 102-104 Economic Performance G4-31 Page 8 Yes Page 102-104 G4-DMA Page 17, 47 Yes Page 102-104 G4-32 Page 6, 7, 105-110 Yes Page 102-104 G4-EC1 Page 17-18 Yes Page 102-104 G4-33 Page 7, 102-104 Yes Page 102-104 G4-EC2 Page 82 Yes Page 102-104 Governance G4-EC3 Page 59-65 Yes Page 102-104 G4-34 Page 7, 38-39 Yes Page 102-104 G4-EC4 Page 47-50 Yes Page 102-104 G4-35 Page 7 Yes Page 102-104 Indirect Economic Impacts G4-36 Page 6-7 Yes Page 102-104 G4-DMA Page 92-93 Yes Page 102-104 G4-37 Page 38-40 Yes Page 102-104 G4-EC7 Page 82-84, 87-89, 92-93, 97 Yes Page 102-104 G4-38 Page 38-39 Yes Page 102-104 G4-EC8 Page 82-83, 92-93 Yes Page 102-104 G4-39 Page 39 Yes Page 102-104 Procurement Practices G4-40 Page 39 Yes Page 102-104 G4-DMA Page 53-54 Yes Page 102-104 G4-41 Page 39-40 Yes Page 102-104 G4-EC9 Page 54 Yes Page 102-104 G4-42 Page 40 Yes Page 102-104 Availability and Reliability G4-43 Page 39 Yes Page 102-104 G4-DMA Page 51, 77-78 Yes Page 102-104 G4-44 Page 40 Yes Page 102-104 EU10 Page 51, 77-78 Yes Page 102-104 G4-45 Page 38 Yes Page 102-104 System Efficiency G4-46 Page 19 Yes Page 102-104 G4-DMA Page 51, 77-78 Yes Page 102-104 G4-47 Page 7 Yes Page 102-104 EU11 Page 51, 77-78 Yes Page 102-104 G4-48 Page 7 Yes Page 102-104 EU12 Page 51 – G4-49 Page 19, 38, 40 Yes Page 102-104 Coal Sourcing and Linkage G4-50 Page 39 Yes Page 102-104 DMA Page 17, 52 – G4-51 Page 40 Yes Page 102-104 G4-52 Page 40 Yes Page 102-104 Category: Environmental G4-53 Page 40 Yes Page 102-104 Materials G4-54 Page 40 Yes Page 102-104 G4-DMA Page 77-78 Yes Page 102-104 G4-55 Page 40 Yes Page 102-104 G4-EN1 Page 78 Yes Page 102-104 Ethics and Integrity G4-EN2 Page 78 Not applicable: – G4-56 Page 41 Yes Page 102-104 Energy G4-57 Page 41 Yes Page 102-104 G4-DMA Page 77 -78 Yes Page 102-104 G4-58 Page 41 Yes Page 102-104 G4-EN3 Page 77-78 Yes Page 102-104 G4-EN4 Page 77-78 – G4-EN5 Page 77-78 Yes Page 102-104 G4-EN6 Page 77-78 Yes Page 102-104 G4-EN7 Not applicable: End use of our – product i.e. electricity does not require any additional use of energy. Water G4-DMA Page 78-79 Yes Page 102-104 G4-EN8 Page 78-80 Yes Page 102-104 106 107 Adani Power Limited Sustainability Report 2015-16 GRI Content Index

Material DMA and Indicators Omissions External Material DMA and Indicators Omissions External Aspects Assurance Aspects Assurance G4-EN9 Page 78-80 – EU17 Page 59 Yes Page 102-104 G4-EN10 Page 78-80 Yes Page 102-104 Occupational Health and Safety Biodiversity G4-DMA Page 69 Yes Page 102-104 G4-DMA Page 81 Yes Page 102-104 G4-LA5 Page 69 Yes Page 102-104 G4-EN11 Page 81-82 Yes Page 102-104 G4-LA6 Page 70-71 Yes Page 102-104 G4-EN12 Page 81-82 Yes Page 102-104 G4-LA7 Page 70 Yes Page 102-104 G4-EN13 Page 81-82 Yes Page 102-104 G4-LA8 Page 15, 66 Yes Page 102-104 G4-EN14 Page 81-82 Yes Page 102-104 Training and Education EU13 Page 81-82 Yes Page 102-104 G4-DMA Page 62 Yes Page 102-104 Emissions G4-LA9 Page 62-63 Yes Page 102-104 G4-DMA Page 82 Yes Page 102-104 G4-LA10 Page 62-63 Yes Page 102-104 G4-EN15 Page 83-84 Yes Page 102-104 G4-LA11 Page 60 Yes Page 102-104 G4-EN16 Page 83-84 Yes Page 102-104 G4-LA12 Page 39, 60 – G4-EN17 Page 83-84 Yes Page 102-104 Labour Practices Grievance Mechanisms G4-EN18 Page 83 Yes Page 102-104 G4-DMA Page 60 – G4-EN19 Page 77-78 Yes Page 102-104 G4-LA16 Page 60 – G4-EN20 Page 85 Yes Page 102-104 Subcategory: Society G4-EN21 Page 85 Yes Page 102-104 Local Communities Effluents and Waste G4-DMA Page 92-93 Yes Page 102-104 G4-DMA Page 79, 86 Yes Page 102-104 G4-SO1 Page 93-93, 95-98 Yes Page 102-104 G4-EN22 Page 80 Yes Page 102-104 G4-SO2 Page 98 Yes Page 102-104 G4-EN23 Page 86-87 Yes Page 102-104 EU22 Page 98 Yes Page 102-104 G4-EN24 Page 86 Yes Page 102-104 Anti-Corruption G4-EN25 Page 86 Yes Page 102-104 G4-DMA Page 41 Yes Page 102-104 G4-EN26 Page 81-82 Yes Page 102-104 G4-SO3 Page 41 Yes Page 102-104 Compliance G4-SO4 Page 41 Yes Page 102-104 G4-DMA Page 42-43 Yes Page 102-104 G4-SO5 Page 41 Yes Page 102-104 G4-EN29 Page 44 Yes Page 102-104 Grievance Mechanisms for Impacts on Society Environmental Grievance Mechanisms G4-DMA Page 97 – G4-DMA Page 44 – G4-SO11 Page 97 – G4-EN34 Page 44 – Subcategory: Product Responsibility Product Responsibility Category: Social G4-DMA Page 49 Yes Page 102-104 Subcategory: Labour practices and decent work EU28 Page 49 – Employment EU-29 Page 49 Yes Page 102-104 G4-DMA Page 59 Yes Page 102-104 EU-30 Page 49 Yes Page 102-104 G4-LA1 Page 59-60 Yes Page 102-104 Subcategory: Human Rights G4-LA2 Page 15, 66 Yes Page 102-104 Indigenous Rights G4-LA3 Page 65 Yes Page 102-104 G4-HR8 Page 98 – G4-LA4 Page 15 – EU15 Page 59 Yes Page 102-104 EU16 Page 59 Yes Page 102-104

108 109 Adani Power Limited Sustainability Report 2015-16 Mapping with NVG1 | UNGC Mapping Mapping with NVG1 Communication on

Principle Mapping with this report Progress and Mapping page numbers

1 Businesses should conduct and govern themselves with Ethics, Transparency and 37-34 Accountability with UN Global 2 Businesses should provide goods and services that are safe and contribute to 47-52, 69-74 sustainability throughout their life cycle Compact Principles 3 Businesses should promote the well-being of all employees 59-66

4 Businesses should respect the interests of, and be responsive towards all stakeholders, 25-26 especially those who are disadvantaged, vulnerable and marginalised. Global Compact Principles GRI Disclosures Mapping with this report 5 Businesses should respect and promote human rights 66 page numbers 6 Business should respect, protect, and make efforts to restore the environment 77-88 Principle 1: Human Rights GRI Disclosures to report actions taken to implement Principle Businesses should support and respect 1 and outcomes from implementing Principle 1 7 Businesses, when engaged in influencing public and regulatory policy, should do so in a 33 the protection of internationally Indicators responsible manner proclaimed human rights Human Rights Aspect: Investment 8 Businesses should support inclusive growth and equitable development 91-98 G4-HR2: Total hours of employee training on human rights policies – or procedures concerning aspects of human rights that are relevant 9 Businesses should engage with and provide value to their customers and consumers in a 47-50 to operations, including the percentage of employees trained responsible manner Aspect: Security Practices G4-HR7: Percentage of security personnel trained in the – organisation’s human rights policies or procedures that are 1 We have published our Business Responsibility Report in Annual Report of Adani Power Limited for FY 2015-16 available at www.adanipower.com relevant to operations Aspect: Indigenous Rights G4-HR8: Total Number of incidents of violations involving rights – of indigenous peoples and actions taken Aspect: Assessment G4-HR9: Total number and percentage of operations that have – been subject to human rights reviews or impact assessments Aspect: Human Rights Grievance Mechanisms G4-HR12: Number of grievances about human rights impacts – filed, addressed, and resolved through formal grievance mechanisms Society Aspect: Local Communities G4-SO1: Percentage of operations with implemented local 92-93, 95-98 community engagement, impact assessments, and development programs G4-SO2: Operations with significant actual and potential 98 negative impacts on local communities Principle 2: Human Rights GRI Disclosures to report actions taken to implement Principle Business should make sure they are not 2 and outcomes from implementing Principle 2 complicit in human rights abuses. Indicators Human Rights Aspect: Investment G4-HR1: Total number and percentage of significant investment – agreements and contracts that include human rights clauses or that underwent human rights screening Aspect: Supplier Human Rights Assessment G4-HR10: Percentage of new suppliers that were screened – using human rights criteria G4-HR11: Significant actual and potential negative human rights – impacts in the supply chain and actions taken 110 111 Adani Power Limited Sustainability Report 2015-16 UNGC Mapping

Global Compact Principles GRI Disclosures Mapping with Global Compact Principles GRI Disclosures Mapping with this report this report page numbers page numbers Principle 3: Labour GRI Disclosures to report actions taken to implement Principle f. Report any significant variations in employment numbers Businesses should uphold the freedom 3 and outcomes from implementing Principle 3 (such as seasonal variations in employment in the tourism or of association and the effective agricultural industries). General Standard Disclosures recognition of the right to collective Organisational Profile Indicators bargaining. 66 G4-11: Report the percentage of total employees covered by Economic collective bargaining agreements. Aspect: Market Presence Indicators G4-EC5: Ratios of standard entry level wage by gender – Human Rights compared to local minimum wage at significant locations of operation Aspect: Freedom of Association and Collective Bargaining G4-HR4: Operations and suppliers identified in which the right G4-EC6: Proportion of senior management hired from the local – to exercise freedom of association and collective bargaining may – community at significant locations of operation be violated or at significant risk, and measures taken to support Labour Practices and Decent Work these rights Aspect: Employment Labour G4-LA1: Total number and rates of new employee hires and 59-60 Aspect: Labour/Management Relations employee turnover by age group, gender and region G4-LA4: Minimum notice periods regarding operational 15 changes, including whether these are specified in collective G4-LA3: return to work and retention rates after parental leave, 65 agreements by gender Principle 4: Labour GRI Disclosures to report actions taken to implement Principle Aspect: Training and Education Businesses should uphold the 4 and outcomes from implementing Principle 4 G4-LA9: Average hours of training per year per employee by 62-63 elimination of all forms of forced and gender, and by employee category Indicators compulsory labour. Human Rights G4-LA11: Percentage of employees receiving regular performance and career development reviews, by gender and by 60 Aspect: Forced or Compulsory Labour employee category G4-HR6: Operations and suppliers identified as having significant risk for incidents of forced or compulsory labour, and – Aspect: Diversity and Equal Opportunity measures to contribute to the elimination of all forms of forced G4-LA12: Composition of governance bodies and breakdown or compulsory labour of employees per employee category according to gender, age 39, 60 group, minority group membership, and other indicators of Principle 5: Labour GRI Disclosures to report actions taken to implement Principle diversity Businesses should uphold the effective 5 and outcomes from implementing Principle 5 abolition of child labour. Aspect: Equal Remuneration for Women and Men G4-LA13: Ratio of basic salary and remuneration of women to – Indicators men by employee category, by significant locations of operation Human Rights Human Rights Aspect: Child Labour G4-HR5: Operations and suppliers identified as having – Aspect: Non-discrimination significant risk for incidents of child labour, and measures taken G4-HR3: Total number of incidents of discrimination and – to contribute to the effective abolition of child labour corrective actions taken Principle 6: Labour GRI Disclosures to report actions taken to implement Principle Principle 7: Environment: GRI Disclosures to report actions taken to implement Principle Businesses should uphold the 6 and outcomes from implementing Principle 6 Businesses should support a 7 and outcomes from implementing Principle 7 elimination of discrimination in respect precautionary approach to General Standard Disclosures Indicators of employment and occupation. environmental challenges. Organisational Profile Economic G4-10: a. Report the total number of employees by employment Aspect: Economic Performance contract and gender. G4-E2: Financial implications and other risks and opportunities – for the organization’s activities due to climate change b. Report the total number of permanent employees by employment type and gender. Environmental Aspect: Materials 78 c. Report the total workforce by employees and supervised – G4-EN1: Materials used by weight or volume workers and by gender. Aspect: Energy 77-78 d. Report the total workforce by region and gender. G4-EN3: Energy consumption within the organization e. Report whether a substantial portion of the organization’s Aspect: Water work is performed by workers who are legally recognized 80 G4-EN8: Total water withdrawal by source as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. 112 113 Adani Power Limited Sustainability Report 2015-16 UNGC Mapping

Global Compact Principles GRI Disclosures Mapping with Global Compact Principles GRI Disclosures Mapping with this report this report page numbers page numbers Aspect: Emissions Aspect: Emissions 83-84 83-84 G4-EN15: Direct greenhouse gas (ghg) emissions (scope 1) G4-EN15: Direct greenhouse gas (ghg) emissions (scope 1) G4-EN16: Energy indirect greenhouse gas (ghg) emissions G4-EN16: Energy indirect greenhouse gas (ghg) emissions 83-84 83-84 (scope 2) (scope 2) G4-EN17: Other indirect greenhouse gas (ghg) emissions G4-EN17: Other indirect greenhouse gas (ghg) emissions 83-84 83-84 (scope 3) (scope 3) G4-EN20: Emissions of ozone-depleting substances (ods) 85 G4-EN18: Greenhouse gas (ghg) emissions intensity 83 G4-EN21: NOx, SOx, and other significant air emissions 85 G4-EN19: Reduction of greenhouse gas (ghg) emissions 77-78 Aspect: Products and Services G4-EN20: Emissions of ozone-depleting substances (ods) 85 G4-EN27: Extent of impact mitigation of environmental impacts – G4-EN21: NOx, SOx, and other significant air emissions 85 of products and services Aspect: Effluents and Waste Aspect: Overall 80 G4-EN22: Total water discharge by quality and destination G4-EN31: Total environmental protection expenditures and – investments by type G4-EN23: Total weight of waste by type and disposal method 86-87 Principle 8: Environment: GRI Disclosures to report actions taken to implement Principle G4-EN24: Total number and volume of significant spills 86 Businesses should undertake initiatives 8 and outcomes from implementing Principle 8 to promote greater environmental G4-EN25: Weight of transported, imported, exported, or Indicators treated waste deemed hazardous under the terms of the basel responsibility. 86 Economic convention2 annex i, ii, iii, and viii, and percentage of transported waste shipped internationally Aspect: Materials 78 G4-EN1: Materials used by weight or volume G4-EN26: Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the 81-82 G4-EN2: Percentage of materials used that are recycled input 78 organization’s discharges of water and runoff materials Aspect: Products and Services Aspect: Energy 77-78 G4-EN27: Extent of impact mitigation of environmental impacts – G4-EN3: Energy consumption within the organization of products and services G4-EN4: Energy consumption outside of the organization 77-78 G4-EN28: Percentage of products sold and their packaging – G4-EN5: Energy intensity 77-78 materials that are reclaimed by category G4-EN6: Reduction of energy consumption 77-78 Aspect: Compliance G4-EN29: Monetary value of significant fines and total G4-EN7: Reductions in energy requirements of products and 44 – number of nonmonetary sanctions for non-compliance with services environmental laws and regulations Aspect: Water 80 Aspect: Transport G4-EN8: Total water withdrawal by source G4-EN30: Significant environmental impacts of transporting – G4-EN9: Water sources significantly affected by withdrawal of products and other goods and materials for the organization’s 70 water operations, and transporting members of the workforce G4-EN10: Percentage and total volume of water recycled and Aspect: Overall 80 reused G4-EN31: Total environmental protection expenditures and – investments by type Aspect: Biodiversity G4-EN11: Operational sites owned, leased, managed in, or Aspect: Supplier Environmental Assessment 81-82 adjacent to, protected areas and areas of high biodiversity value G4-EN32: Percentage of new suppliers that were screened – outside protected areas using environmental criteria G4-EN33: Significant actual and potential negative G4-EN12: Description of significant impacts of activities, – products, and services on biodiversity in protected areas and 81-82 environmental impacts in the supply chain and actions taken areas of high biodiversity value outside protected areas Aspect: Environmental Grievance Mechanisms G4-EN34: Number of grievances about environmental impacts G4-EN13: Habitats protected or restored 81-82 44 filed, addressed and resolved through formal grievance G4-EN14: Total number of iucn red list species and national mechanisms conservation list species with habitats in areas affected by 81-82 operations, by level of extinction risk

114 115 Adani Power Limited Sustainability Report 2015-16 UNGC Mapping | SDG Mapping

Global Compact Principles GRI Disclosures Mapping with Mapping with this report page numbers Principle 9: Environment: GRI Disclosures to report actions taken to implement Principle Businesses should encourage 9 and outcomes from implementing Principle 9 Sustainable the development and diffusion of Indicators environmentally friendly technologies. Economic Aspect: Energy 77-78 G4-EN6: Reduction of energy consumption Development Goals (SDG) G4-EN7: Reductions in energy requirements of products and – services Aspect: Emissions 77-78 G4-EN19: Reduction of greenhouse gas (ghg) emissions SDG Business Theme GRI Indicators Page Numbers Aspect: Products and Services G4-EN27: Extent of impact mitigation of environmental impacts – No Access to financial services of products and services 1 Poverty Access to land G4-SO2 98 Aspect: Overall G4-EN31: Total environmental protection expenditures and – End poverty in all its forms Availability of products and G4-EC8 82-83, 92-93 investments by type everywhere services for those on low Principle 10: Anti-corruption GRI Disclosures to report actions taken to implement Principle incomes Businesses should work against 10 and outcomes from Implementing Principle 10 Disaster/emergency planning corruption in all its forms, including General Standard Disclosures and response extortion and bribery. Ethics and Integrity G4-56 Earnings, wages and benefits a. Describe the organisation’s values, principles, standards and 41 Economic development in G4-EC8 82-83, 92-93 norms of behaviour such as codes of conduct and codes of areas of high poverty ethics. G4-57 Economic inclusion G4-DMA-b 53-54 a. Report the internal and external mechanisms for seeking 41 advice on ethical and lawful behaviour, and matters related Electricity access EU28, EU29, EU30 49 to organisational integrity, such as helplines or advice lines. Physical and economic EU22 98 G4-58 displacement a. Report the internal and external mechanisms for reporting 41 concerns about unethical or unlawful behavior, and matters Zero Access to land G4-SO2 98 related to organisational integrity, such as escalation through Changing the productivity of line management, whistleblowing mechanisms or hotlines. 2 Hunger organisations, sectors, or the Indicators whole economy Society End hunger, achieve food security Food labelling G4-EC8 82-83, 92, 93 Aspect Anti-Corruption and improved nutrition and promote G4-SO3: Total number and percentage of operations assessed 41 Food safety for risks related to corruption and the significant risks identified sustainable agriculture Genetic diversity of farmed G4-SO4: Communication and training on anti-corruption policies 41 and domesticated animals and procedures G4-SO5: CONFIRMED INCIDENTS OF CORRUPTION AND Healthy and affordable food 41 ACTIONS TAKEN Indigenous rights G4-HR8 98 Aspect Public Policy G4-SO6: Total value of political contributions by country and Infrastructure investments G4-EC1, G4-EC7 17-18, 82-84, recipient/ beneficiary 87-89, 92-93, 97

Physical and economic displacement

Sustainable sourcing

116 117 Adani Power Limited Sustainability Report 2015-16 SDG Mapping

SDG Business Theme GRI Indicators Page Numbers SDG Business Theme GRI Indicators Page Numbers

Good Health and Access to medicines G4-EC8 82-83, 92-93 Clean Water and Land remediation 3 Well-being Air quality G4-EN15, G4-EN16, 83-84, 85 6 Sanitation Spills G4-EN24 86 G4-EN17, G4-EN20, G4-EN21 Ensure availability and sustainable Sustainable water withdrawals G4-EN8, G4-EN9 78-80 management of water and sanitation Ensure healthy lives and promote Disaster/emergency planning Waste G4-EN23 86-87 for all well-being for all at all ages and response Water efficiency G4-EN10 78-80 Healthy and affordable food Water quality G4-EN22 80 Land remediation Water recycling and reuse G4-EN10 78-80

Occupational health and G4-LA6, G4-LA7 70-72, 70 Water-related ecosystems and G4-EN11, G4-EN12, 81-82, 80, 86, safety biodiversity G4-EN13, G4-EN14, 81-82, 81-82 G4-EN22, Responsible content G4-EN24, dissemination G4-EN26, EU13 Spills G4-EN24 86 Affordable and Electricity access EU28, EU29, EU30 49 Waste G4-EN23, G4-EN25 86-87, 86 7 Clean Energy Electricity availability and EU10 51, 77-78 reliability Water quality G4-EN22 80 Energy efficiency G4-EN3, G4-EN4, 77-78, 51, 77-78, Accessibility of buildings Ensure access to affordable, Quality reliable, sustainable and modern G4-EN5, G4-EN6, 51 4 Education Education for sustainable G4-43 39 energy for all EU11, EU12 development Environmental investments Employee training and G4-LA9 62-63 Ensure inclusive and equitable Infrastructure investments G4-EC1, G4-EC7 17-18, 82-84, education quality education and promote 87-89, 92-93, lifelong learning opportunities for all Media literacy 97 Renewable energy G4-EN3, G4-EN4, 77-78, 13, 15 EU1, EU2 Decent Work and Abolition of child labour 8 Economic Growth Access to financial services Promote sustained, inclusive and Availability of a skilled EU15 59 workforce Gender Economic inclusion G4-DMA-b 53-54 sustainable economic growth, full and productive employment and Changing the productivity of E4-EC8 82-83, 92-93 Equal remuneration for 5 Equality decent work for all organisations, sectors, or the women and men whole economy Gender equality G4-LA1, G4-LA9, 89-60, 62-63, Achieve gender equality and Diversity and equal G4-LA11, G4-LA12 60, 39, 60 empower all women and girls opportunity Infrastructure investments G4-EC1, G4-EC7 77-18, 82-84, Earnings, wages and benefits G4-LA2 15, 66 87-89, 92-93, 97 Economic inclusion G4-DMA-b 53-54

Non-discrimination Economic performance G4-EC1 17-18

Parental leave G4-LA3 65 Elimination of forced or compulsory labour Women in leadership G4-38, G4-40 38-39, 39

Workplace violence and harassment

118 119 Adani Power Limited Sustainability Report 2015-16 SDG Mapping

SDG Business Theme GRI Indicators Page Numbers SDG Business Theme GRI Indicators Page Numbers

Employee training and G4-LA9, G4-LA10, 62-63, 60 Reduced Access to financial services education G4-LA11 10 Inequalities Accessibility of buildings Employment G4-10, G4-LA1 8, 54-55, 15, 59-60, 59-60 Reduce inequality within and among Accessibility of events countries Energy efficiency G4-EN3, G4-EN4, 77-78, 51, 77-78, Accessibility of media content G4-EN5, G4-EN6, 51 EU11, EU12 Economic development in G4-EC8 82-83, 92-93 areas of high poverty Equal remuneration for women and men

Freedom of association and G4-11 59-66 Equal remuneration for collective bargaining women and men

Indirect impact on job creation G4-EC8 82-83, 92, 93 Foreign direct investment G4-EC8 82-83, 92-93

Jobs supported in the supply G4-EC8 82-83, 92, 93 Socially inclusive events chain Responsible finance Labour practices in the supply Access to affordable housing chain Sustainable Cities Access to public spaces Labour/management relations 11 and Communities Materials efficiency G4-EN1, G4-EN2 78 Make cities and human settlements Cultural diversity through inclusive, safe, resilient and media content Non-discrimination sustainable Cultural heritage Occupational health and G4-LA5, G4-LA6, 69, 70-71, 70, 15, safety G4-LA7, G4-LA8, 66, 59, 59 Disaster/emergency planning EU17, former EU16 and response

Parental leave G4-LA3 65 Infrastructure investments G4-EC7 82-84, 87-89, Resource efficiency of 92-93, 97 products and services Noise Technological legacies Sustainable buildings Water efficiency G4-EN10 78-80 Sustainable transportation Youth employment G4-LA1 59-60 Responsible Air quality G4-EN15, G4-EN16, 83-84, 85, 85 Industry, Innovation Access to financial services G4-EN17, G4-EN20, Consumption and G4-EN21 9 and Infrastructure Environmental investments 12 Production Energy efficiency G4-EN3, G4-EN4, 77-78, 51, 77-78, Build resilient infrastructure, Infrastructure investments G4-EC1, G4-EC7 17-18, 82-84, G4-EN5, G4-EN6, 51 promote inclusive and sustainable 87-89, 92-93, EU11, EU12 industrialisation and foster innovation 97 Ensure sustainable consumption and Environmental investments Research and development G4-EC1 17-18 production patterns Land remediation Technological legacies Materials efficiency/recycling G4-EN1, G4-EN2 78

Procurement practices G4-EC9 54

120 121 Adani Power Limited Sustainability Report 2015-16 SDG Mapping

SDG Business Theme GRI Indicators Page Numbers SDG Business Theme GRI Indicators Page Numbers

Product and service Life Deforestation information and labelling 15 on Land Environmental investments Resource efficiency of products and services Protect, restore and promote Forest degradation G4-EN15, G4-EN16, 83-84, 83, 77- sustainable use of terrestrial G4-EN17, G4-EN18, 78, 85 Spills G4-EN24 86 ecosystems, sustainably manage G4-EN19, G4-EN21 Sustainable sourcing forests, combat desertification, and Genetic diversity of farmed halt and reverse land degradation and domesticated animals Transport and halt biodiversity loss Land remediation Waste G4-EN23, G4-EN25 86-87, 85

Water efficiency G4-EN10 78-80

Water quality G4-EN22 80 Climate Energy efficiency G4-EN3, G4-EN4, 77-78, 51, 77-78, Mountain ecosystems G4-EN11, G4-EN12, 81-82, 81-82 G4-EN5, G4-EN6, 51 G4-EN13, G4-EN14, 13 Action EU11, EU12 EU13 Environmental investments Natural habitat degradation G4-EN11, G4-EN12, 81-82, 81-82 G4-EN13, G4-EN14, Take urgent action to combat climate GHG emissions G4-EN15, G4-EN16, 83-84, 83, 77- G4-EN26, EU13 change and its impacts* G4-EN17, G4-EN18, 78, 83 EU5 Spills G4-EN24 86 * Acknowledging that the United Nations Framework Convention on Climate Change is Risks and opportunities due to G4-EC2 82 Sustainable sourcing the primary international, intergovernmental climate change forum for negotiating the global response to Terrestrial and inland G4-EN11, G4-EN12, 81-82, 81-82 climate change. freshwater ecosystems G4-EN13, G4-EN14, G4-EN26, EU13 Peace, Justice and Abolition of child labour 16 Strong Institutions Anti-corruption G4-SO3, G4-SO4, 41 G4-SO5 Life Below Environmental investments Promote peaceful and inclusive Compliance with laws and G4-EN29 44 societies for sustainable development, regulations Land remediation 14 Water provide access to justice for all and Effective, accountable and G4-39, G4-41 39, 39-40 Ensure sustainable consumption and Marine biodiversity G4-EN11, G4-EN12, 81-82, 81-82 build effective, accountable and transparent governance production patterns G4-EN13, G4-EN14, inclusive institutions at all levels G4-EN26, EU13 Ethical and lawful behaviour G4-56, G4-57, 41 G4-58 Ocean acidification G4-EN15, G4-EN16, 83-84, 83, 77- G4-EN17, G4-EN18, 78, 85, 15, 83 G4-EN19, G4-EN21, EU2, EU5, EU11 Freedom of expression Spills G4-EN24 86

Sustainable sourcing

Water discharge to oceans G4-EN22 80

122 123 Adani Power Limited Sustainability Report 2015-16 SDG mapping | Mapping with IFC Mapping with IFC Performance Standards for Environment & Social Sustainability

Performance Description Performance Reference to page SDG Business Theme GRI Indicators Page Numbers Standard Indicators of GRI-G4 number in this Report PS 1 Social and Environmental Assessment & EC8 82-83, 92-93 Grievance mechanisms G4-EN34, G4-LA16, 44, 60, 97 Management Systems G4-SO11 EC9 54 EN14 81-82 Inclusive decision making G4-37, G4-38, 38-40, 38-39, EN26 81-82 G4-40, G4-45, 39, 38, 40 G4-53 SO1 93-94, 95-98 PS 2 Labour and Working Conditions LA1 59-60 Non-discrimination LA2 15, 66 Public access to information LA3 65 Protection of privacy LA5 69 LA6 70-71 Responsible content LA7 70 dissemination LA8 15, 66 Security LA9 62-63 LA10 62-63 Workplace violence and harassment LA11 60 PS 3 Pollution Prevention and Abatement EN1 78 Partnerships Environmental investments EN2 78 17 for the Goals Foreign direct investment G4-EC8 82-83, 92-93 EN3 77-78 EN4 77-78 Strengthen the means of EN5 77-78 implementation and revitalise the EN6 77-78 global partnership for sustainable EN10 78-80 development EN11 81-82 EN12 81-82 EN13 81-82 EN14 81-82 EN15 83-84 EN16 83-84 EN17 83-84 EN18 83 EN19 77-78 EN20 85 EN8 77-80 EN21 85 EN22 80 EN23 86-87 EN24 86 EN25 86 PS 4 Community, Health, Safety and Security SO1 93, 95-98 PS 5 Land Acquisition and Involuntary Resettlement SO1 93, 95-98 PS 6 Biodiversity Conservation and Sustainable EN11 81-82 Resource Management EN12 81-82 EN13 81-82 EN14 81-82 EN15 83-84

PS 7 Indigenous Peoples SO1 93, 95-98 124 125 Adani Power Limited Sustainability Report 2015-16 Glossary Glossary

Abbreviations Abbreviations AGM Annual General Meeting FTA Fixed Term Appointee AMA Ahmedabad Management Association FY Financial Year AMPRI Advance Process Material Research Institute GAAP Generally Accepted Accounting Principles APC Auxiliary Power Consumption GCCI Gujarat Chamber of Commerce and Industry APL Adani Power Limited GDP Gross Domestic Product APML Adani Power Maharashtra Limited GET Graduate Engineer Trainee APP Association of Power Producers GHG Greenhouse Gas APRL Adani Power Rajasthan Limited GJ Giga Joules APSEZ Adani Ports and Special Economic Zone GPTWI Great Place to Work® Institute APTEL Appellate Tribunal for Electricity GRI Global Reporting Initiative APTRI Adani Power Training and Research Institute GSC Gujarat Safety Council ASC Apex Sustainability Committee GUVNL Gujarat Urja Vikas Nigam Limited AVT-OT All Volatile Oxygenated Treatment HCSD High Concentration Slurry Disposal BoQ Bill of Quantity HFO Heavy Fuel Oil BRR Business Responsibility Reporting HH Hydrazine Hydrate CAGR Compound Annual Growth Rate HOD Head of Department CBD Convention on Biological Diversity HPCL Hindustan Petroleum Corporation Limited CCEA Cabinet Committee on Economic Affairs HR Human Resources CCL Central Coalfields Limited HSD High Speed Diesel CD Chart Datum HSE Health, Safety and Environment CDM Clean Development Mechanism HSEQ Health, Safety, Environment, and Quality CEA Central Electricity Authority HVDC High-Voltage Direct Current CEMS Continuous Emissions Monitoring System IBACS Integrated Biometric Access Control System CEP Condensate Extraction Pump IEX Indian Energy Exchange CEO Chief Executive Officer IFC International Finance Corporation CERC Central Electricity Regulatory Commission IFE Institute of Fire Engineers CFO Chief Finance Officer IISWBM Indian Institute of Social Welfare and Business Management CII Confederation of Indian Industry IPO Initial Public Offering CIL Coal India Limited IPPAI Independent Power Producers Association of India CNG Compressed Natural Gas ISO International Standards Organisation COO Chief Operating Officer IT Information Technology CPU Condensate Polishing Unit IUCN International Union for Conservation of Nature CRO Central Risk Officer JMC Junior Management Cadre CSIR Central Scientific and Industrial Research KL Kilo litres CSO Chief Sustainability Officer KRA Key Result Area CSR Corporate Social Responsibility LCSD Lean Concentration Slurry Disposal CT Cooling Tower LDO Light Diesel Oil DOA Delegation of Authority LPG Liquefied Petroleum Gas ECB External Commercial Borrowings LTIFR Lost Time Injury Frequency Rate EIA Environmental Impact Assessment MAAS Management Audit & Accounting System EPC Engineering, Procurement & Construction M&A Mergers and Acquisitions ERP Enterprise Resource Planning MCL Mahanadi Coalfield Limited ESP Electrostatic Precipitator MCM Million Cubic Metre ETP Effluent Treatment Plant MHCU Mobile Healthcare Units ESMS Environmental and Social Management MIS Management Information Systems FAC Flow Accelerated Corrosion MMC Middle Management Cadre FGD Focus Group Discussion, Flue Gas Desulphurisation MMT Million Metric Tonnes FICCI Federation of Indian Chambers of Commerce & Industry MMTPA Million Metric Tonnes Per Annum FMEA Failure Mode Effects Analysis MoEFCC Ministry of Environment, Forest and Climate Change FOP Fingerprint Optic Power MOIS Micro Oil ignition System FOW Fingerprint Optic Wireless MoU Memorandum Of Understanding FSA Fuel Supply Agreement MSEDCL Maharashtra State Electricity Distribution Company Limited

126 127 Adani Power Limited

Abbreviations MT Metric Tonnes MTPA Metric Tonnes Per Annum MU Million Units MUPL Mundra Utilities Pvt. Ltd. MW Mega Watt NABET National Accreditation on Board for Education and Training NGO Non-Governmental Organizations NIHL Noise Induced Hearing Loss NIO National Institute of Oceanography NMPT New Mangalore Port Trust NOx Oxides of Nitrogen NRI Non-resident Indian NSC National Safety Council NVG-SEE National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business O & M Operation and Maintenance ODS Ozone-depleting Substances OH & S Occupational Health and Safety PA Primary Air PCB Polychlorinated Biphenyls PIL Public Interest Litigations PLF Plant Load Factor PMS Performance Management System PNG Piped Natural Gas PPA Power Purchase Agreement PRI Panchayati Raj Institutions QCFI Quality Circle Forum of India R&R Resettlement and Rehabilitation RBI Reserve Bank of India RBIA Risk-based Internal Audit RLDC Regional Load Despatch Centre RMC Ready-Mix Concrete S&CSR Sustainability and Corporate Social Responsibility SCRC Security Control and Response Centres SDG Sustainable Development Goals SEBI Securities and Exchange Board of India SECL South Eastern Coalfields Ltd. SERC State Electricity Regulatory Corporation SEZ Special Economic Zone SHR Station Heat Rate SLDC State Load Despatch Centre SMC Senior Management Cadre SOP Standard Operating Procedure SOx Oxides of Sulphur SPM Suspended Particulate Matter SRC Sustainability Reporting Committee SRI System of Rice Intensification SRT Site Review Technique SUP Supervisory Staff TNEB Tamil Nadu Electricity Board TNI Training Need Identification TPH Tonnes Per Hour TSP Tri Sodium Phosphate UNFCCC United Nations Framework Convention on Climate Change UNGC United Nations Global Compact VFD Variable Frequency Drive VRM Vendor Relationship Management WP Writ Petitions 128 Adani Power Limited

Adani Power Limited Shikhar, Near Adani House, Mithakhali Six Roads, Navrangpura, Ahmedabad - 380 009 Gujarat, India.

Tel: +91 79 2656 5555 Fax: +91 79 2656 5500

www.adanipower.com 130