March-2016-Issue.Pdf

Vol. 35 No. 10 March, 2016

Chairman’s Desk...... 05 Articles Interview of Shri K. M. Singh Chairman & Managing Director, NHPC...... 7 Emerging Trend in Digital PR...... 10 by Dr. Jaishri Jethwaney Importance of Effective Media Relations...... 16 by Samir Kapur Survey sees Some Challenges in Otherwise Bright Economy...... 20 by K. R. Sudhaman MoU Design - A Robust Framework...... 22 by B. B. Goel GST is Inevitable - Time for Industry Prepare...... 26 by Sumit Dutt Majumder All in favour of Public Sector Enterprises...... 29 by B. P. Mathur

SCOPE News CVC Inaugurates SCOPE International HR Summit 2016...... 37 DG, SCOPE at the National Leadership Summit 2016...... 39 SCOPE Excellence Awards 2013-14 Announced...... 40 CVC Interacts with CEOs of PSEs...... 41 Releases SCOPE Compendium on Make in India, Digital India, Skill India and Swachh Bharat DPE & SCOPE Organizes Workshop on CSR in SCOPE Premises...... 42 SCOPE for a Well Documented Ownership Policy of PSEs...... 43 SCOPE Organizes 5th National Workshop on...... 44 “Strategies for Improving Occupational Safety & Health in CPSEs” DG, SCOPE Addresses India Energy Week 2016...... 46 Media Relations Top Management Conclave...... 47 SCOPE Advocates Better Media Relations by PSEs SCOPE Observes International Women’s Day...... 49 Vol. 35 No. 10 March, 2016 Price percopy:Rs.50/- Annual Subscription:Rs. 500/- Total Pages:76 A. S.Khan PUBLISHER Nisha Sharma EDITOR K. N.Dhawan, U.K. Dikshit S. A.Khan, Dr. U.D. Choubey ADVISORY BOARD &

Consulting Editor

GGM (Corp. Affairs) GGM , Adviser (Programmes)

Adviser (CC)

, Director General Contents (Payment maybesentby Awards &Accolades. PSEs Pay handsomeDividendto theGovernment...... PSEs Declare. Q3Results Commissioning at HPCL...... ofOnlineBlendingMachine ...... MoU PSEs Ink PSE News AAI Inaugurates New Terminal...... Buildingat Khajuraho (Fertilizers), Jt. Secretary Visits...... RCF Reviews ONGCOperations inGujarat Petroleum (I/C), MoS &Natural Gas Visits Ahmedabad:...... PNG,at HPCL’sMoS(I/C), Stall ...... inIndia Make Mr. Anil Swarup, (Coal) Secretary Performance ofCoal hasgiven India itapositive image:...... BHEL Commissions 600MW Thermal Unitin Telangana...... NALCO Celebrates 36thFoundation Day ...... PSEs CSRInitiatives. Personalia...... CMD, NLC NLC Plans to become 19000Plus MWCompany by 2025-...... PSEs Celebrates Day Republic ......

...... Tel: 011-43700100 Designed by Akar Advertising &Marketing (P)Ltd. Phase-II, NewDelhi-110028 at RaveScan(P)Limited, A-27, NarainaIndustrial Area, E-mail: [email protected] Tel.: 24361495,24360101Ext.:2028,2029 Fax:24361371 Road, NewDelhi-110003 Enterprises, Core8,1stFloor, SCOPECompex, 7Lodhi A. S.KhanonbehalfofStandingConferencePublic Published andprintedatNewDelhiby of SCOPEManagement.-Editor are thatoftheauthorsandnotnecessarily The viewsexpressedinvariousarticles acknowledgment intheacceptedstyle. reproduced withpriorpermissionoftheEditorand Material publishedinKALEIDOSCOPEmaybe Public Enterprises”) DD/Cheque drawninfavourof“StandingConference

58 55 53 51 60 74 73 73 72 72 71 70 68 67 66 64 CHAIRMAN’S DESK

eeklong Public Sector Day celebrations will be held across PSEs from April 10 Wto April 16, 2016. Hon’ble President of India, Shri Pranab Mukherji has consented to grace the event on 11th April 2016 at Vigyan Bhawan, New Delhi which will be synchronized with presentation of SCOPE Excellence Awards for exem- plary performance of PSEs. The winners of SCOPE Excellence Awards have already been declared after meticulous evaluation by a highly eminent Jury. Importance of Public Sector Day can be gauged from the fact that it would be celebrated all across the Public Sector fraternity with great enthusiasm and zeal through various programmes. PSEs will organize Seminars, Debates, Quiz Programmes, Essay Competitions, Press Meets etc. on this occasion. The event presents a wonderful platform for PSEs to showcase their performance and achievements to the nation and create awareness amongst its employees and stakeholders. Creating greater accountability and transparency in the functioning of enterprises without hamper- ing the overall business and social performance is the prime objective of Public Sector. SCOPE believes that corporate governance is the bedrock for the principles of good management and consistently endeavours to make PSEs a role model for the corporate world. Therefore, in order to abridge the issues of concern and effective functioning of PSEs, SCOPE organized a meeting of CEOs/Directors and CVOs of PSEs with Shri K.V. Chowdary, Chief Vigilance Commissioner. PSEs follow a higher standard of functioning than other sectors as they are subjected to multiple checks and balances. At the same time, PSEs have been experiencing pressure of stringent guidelines at times and other constraints which have bearing on the time bound decision making process of top

Kaleidoscope March, 2016 5 management and performance of PSEs in competi- on related issues. Keeping in line with this objective business environment. tive, SCOPE will soon organize a program to pro- SCOPE believes, that regular and periodic struc- vide opportunities to Middle level and Senior level tured meeting of CVC with CMD/CVO of the PSEs Women Executives for their development so that would help in establishing an enhanced clarity they can occupy, in due course, leadership posi- amongst the decision making authorities in PSEs tions at the senior level and top level in our PSEs. and thus will help in boosting the transparency and SCOPE firmly believes that the progressive devel- accountability leading to effective performance. opment of Public Sector is in the greater interest of Financial year 2016-17 also earmarks the beginning the nation. From organizing various programmes of mandatory implementation of International for holistic development of PSEs to recognizing the Financial Reporting Standards (IFRS) - converged excellent performance of PSEs, SCOPE always tries Accounting Standards (Ind AS), in a phased man- its best to serve PSEs. It is also looking for newer ner. Therefore, in order to create awareness among avenues to develop, equip and upgrade itself Finance Executives, SCOPE in association with the Institute of Chartered Accountants of India (ICAI) organized a two day awareness program on Ind AS on 17th & 18th March, 2016. SCOPE is committed to improving the overall status of women employees of Public Sector, both in participation and performance. Therefore, it has (R. G. Rajan) been organizing programmes on a regular basis Chairman, SCOPE

6 KaleidOscope March, 2016 ARTICLE Interview of Shri K. M. Singh Chairman & Managing Director, NHPC K. M. Singh CMD, NHPC

Shri K. M. Singh, CMD, NHPC sees bright future for hydropower sector in India. In his interaction with KALEIDOSCOPE Bureau, he highlighted outlook for the hydropower sector, significant achievements of NHPC, key goals and priorities for future and diversification into renewable energy sector.

What is the outlook for the hydropower gases are responsible for climate change which is sector? subject of concern worldwide. To avoid or mini- Our country is endowed with enormous economi- mize adverse impact on environment by avoiding cally exploitable and viable hydropower potential greenhouse gasses, and for the Energy Security of of 1,45,320 MW (above 25 MW) out of which 37,688 the Nation, hydropower is the best alternative for MW (excluding Pumped Storage Schemes) has generation of green and clean electricity in a sus- been developed so far and projects totaling 12732 tainable manner. In addition, water security, flood MW (excluding PSS) are under development. Thus, control and irrigation are also feasible with Hydro about 65% of the total potential remains to be ex- Power Generation. ploited. The remaining untapped potential pro- Therefore, I see very bright future for hydropower vides ample opportunities to other hydropower sector in India. developers. At present, emphasis is on using sustainable, re- What is the current newable resources of power generation to meet the capacity and the increasing demand for energy. Hydropower is the expansion in the pipeline? best & dependable renewable energy technology NHPC currently has an installed capacity of 4987 which is presently commercially viable on a large MW at standalone and 6507 MW on consolidated scale. Hydropower is clean power and having very basis with a total of 20 operating power stations. less generation of greenhouse gases compared to 18 power stations are operated by NHPC while 2 other conventional modes of power generation. It are operated by NHDC a subsidiary company with also enhances energy security of the country where the Government of Madhya Pradesh. Apart from there is deficit of energy and shortage to meet peak this, the company has a total of 5 projects under demand. Hydropower Projects reduce depletion construction with four hydropower projects with of indigenous fossil fuel and import of coal, crude total installed capacity of 3290 MW which includes oil required for energy generation through thermal Teesta Low Dam Stage-IV (160MW), Kishanganga power plants and DG sets respectively and thus (330MW), Parbati-II (800MW) & Subansiri Lower would save huge amount of scarce foreign curren- (2000 MW) and a wind power project (50MW) in cy and avoid emission of greenhouse gases. These Jaisalmer, Rajasthan.

Kaleidoscope March, 2016 7 ARTICLE

Joint Ventures & MOUs, Financial performance etc. During 2015-16, NHPC would be adding 130 MW (80 MW from 2 units out of total 4 units of Teesta Low Dam Stage-IV (160 MW) and 50 MW from one wind project in Rajasthan). The cumulative generation of NHPC’s Power Stations during 2015-16 till November 2015 is 19707 MU against MoU target of 17899 MU. The cumulative Plant Availability Factor (PAF) of NHPC Power Stations during 2015-16 till Nov 2015 is 88.6%. On financial front, as per unaudited financial results for the half year ended 30th September 2015, NHPC has earned net profit of Rs 1948.crore as against Rs 1300 crore earned during corresponding period of previous financial year, thereby registering an increase of 50%. The Company has made a total dividend payout of Rs 664.25 crore During the current financial year, we are expecting for the year 2014-15. On operational parameters, to commission 2 units of TLDP-IV (4x40 MW) in the company has overall outperformed in both the West Bengal. In XII Plan, our total expected capacity benchmarks viz. generation of power and PAF dur- addition will be about 1702 MW out of which 6 proj- ing the quarter ending September, 2015. NHPC ‘T’ ects of 1212 MW have already been commissioned Series Bonds issue amounting to Rs 1474.92 crore which includes Chamera-III (231 MW) and Parbati- was placed through private placements basis at a III (520 MW) in Himachal Pradesh, Chutak (44 coupon rate of 8.50% on 14.07.2015. The issue was MW), Nimoo Bazgo (45 MW) and Uri-II (240 MW) fully subscribed. in J&K and Teesta Low Dam-III (132 MW) in West We have also signed a MoU with Govt. of West Bengal. Besides balance 2 units of Teesta Low Dam Bengal and West Bengal State Electricity Distribution Stage -IV HE Project in W.B., Kishanganga Project Company Limited (WBSEDCL) on 03.07.2015 for (330 MW) in J&K is also scheduled to be commis- development of four hydro projects (Teesta Low sioned during 2016-17. Also, 100 MW each is also Dam-V, Teesta Low Dam I & II combined, Teesta likely to be added from Wind and Solar Power Intermediate Stage and Rammam Stage-I ) with Projects respectively. a total capacity of 293 MW. The projects shall be developed by NHPC on Build, Own, Operate and What have been most significant achieve- Maintain (BOOM) basis. ments of NHPC during current financial year? What are your key goals and priorities for The current financial year has been very significant future? for NHPC on various fronts viz. capacity addition, NHPC’s core business is Generation and sale of

To avoid or minimize adverse impact on environment by avoiding greenhouse gasses, and for the Energy Security of the Nation, hydropower is the best alternative for generation of green and clean electricity in a sustainable manner. In addition, water security, flood control and irrigation are also feasible with Hydro Power Generation. Therefore, I see very bright future for hydropower sector in India.

8 KaleidOKaleidOscope March, 2016 ARTICLE hydropower. The Company is committed to maintain its leading position in this field. The Company is presently engaged in development of several hydroelectric projects. NHPC is focused on expeditious development of vast untapped hydro potential available in the country. In addition to the projects under construction, Pakal Dul HE project (1000 MW) stands cleared by Government for implementation under Joint Venture. NHPC is actively pursuing clearances from Government of India for hydropower projects having aggregate capacity of 6995 MW. Out of this, five projects with capacity of 4995 MW are planned to be implemented by NHPC by its own and four projects with capacity of 2000 MW through Joint Ventures. Apart from hydropower sector, we are also intend- ing to venture in to other sources of power. NHPC issues with a view to expedite the project imple- is also envisaging 4 renewable energy projects on mentation. NHPC has also implemented special- ownership basis - viz., 2 nos. Wind power projects ized Enterprise Resource Planning (ERP) system to (130 MW) & 2 nos. solar power projects (100 MW) efficiently manage the optimum utilization of gen- which are presently under clearance stage. 1 no. erating assets and expeditious implementation of Solar power project (50 MW) in Kalpi, UP and 1 construction projects. Thermal Power Project in Pirpainti, Bihar are also under consideration in JV mode. With the emergence of competition, how Three hydropower projects with aggregate in- do you think it will affect NHPC? stalled Capacity of 1130 MW are in survey and in- As I have already said 65% of the total hydro- vestigation stage for preparation of Detailed Project power potential of the country still remains to be Report. tapped. NHPC is a premier organization in the The Company aims to reduce its operating cost and country in the field of hydropower develop- improve operating performance by investing in ment and looks to maintain its leadership in the Technologically advanced Equipment and methods hydropower sector. We are working on capac- and by allocating significant resources to modern- ity addition plan through our own projects as ize the Power Stations. NHPC is pursuing CDM well as through Joint Venture projects. A JV com- registration for additional projects and exploring pany “Chenab Valley Power Projects (P) Limited other carbon trading initiatives such as voluntary has been formed with Jammu & Kashmir State emission reduction certification. Power Development Corporation Ltd. (JKSPDC) and PTC India Limited for three projects in Jammu What steps are you & Kashmir with an aggregate capacity of 2164 taking to ensure to meet these targets? MW. Another JV company “Loktak downstream NHPC has established a Multi-Tier progress Hydroelectric Corporation Limited” with Govt. of monitoring and review system coordinated by the Manipur has been incorporated for development of Project Monitoring Services Group. The company 66 MW Loktak Downstream project in Manipur. A has also introduced Primavera based monitor- JV company is proposed in Bhutan for development ing system and earned value Techniques of proj- of Chamkharchhu-I Project (770 MW) in Bhutan. ect management. Detailed and extensive reviews In addition to these, talks are also going on with are carried out regularly at the Project level which Government of Sikkim for few more projects. Also, is also periodically reviewed by the concerned NHPC has already entered into a JV with Govt. of Regional offices. Co-ordination meetings with the UP for 50 MW Solar project in UP. participation of Regional and Departmental heads We have also diversified into renewable energy sec- at Corporate Office are held to deliberate on critical tor with number of projects in pipeline.

Kaleidoscope March, 2016 9 ARTICLE Emerging Trend in Digital PR

Dr. Jaishri Jethwaney Prof. & Program Director (AD/PR) IIMC

nternet and its access and too long a future. friendly circuit through a social reach across the world have media platform. Ibeen the most defining tech- What is Digital PR? Public Relations as we know is nological breakthroughs the Digital PR often referred as E-PR, the art of generating and main- world has witnessed in the last Online PR or PR 2.0 is defined taining goodwill for an organi- few decades. In fact internet has as the communication vide the zation / important individual. changed the way we see and in- internet and the use of new tech- This often is achieved through terpret our world. It has got us in nology to effectively communi- influencing the influencer, who in touch with people we may never cate with an organization’s varied PR lexicon often are the journal- meet in life but who share our stakeholders. ists. PR practitioners traditionally hopes, aspiration, ideology and have interfaced and ‘groomed’ angst on issues. If anything has Stakeholder definition in the beat reporters to achieve the brought us closer to the age-old Digital PR desired objective. The Internet Indian philosophy and vision of While an organization has a set of however has changed it all. Over Vasudhev Kutumbkam (The en- stakeholders depending on what one billion people access the tire world is one family), it un- business it is in, in the context of Net and about one billion pages doubtedly is the Internet. Time digital media, it is more complex are added each day on the Net magazine in the year 2006 de- as many who may not be directly from people with varied inter- clared “You” as the person of the an organization’s stakeholder ests, aspirations, ideologies and year; You, “Represented by the may still have an opinion about it mind sets. There are millions of individual content creator on the and express it. The emergence of ‘accidental influencers’ who World Wide Web”. on-line communities has brought enter the communication spi- With technology proliferation, about a paradigm shift in how ral through their comments, the disciplines within mass com- one handles stakeholder relations observations or activism. PR munication such as journalism, management. An online commu- professional can ignore them advertising and public relation & nity is a broad term for a network only at the cost and risk to their corporate communication have of people who interact or observe client/ organization. In the Indian also undergone a paradigm shift. in a virtual environment. Most context, organizations that The social media has changed the online communities have a com- are listed on the stock market way corporates now define audi- mon goal, interest or purpose, have to build relationship with ence location and the concomi- but are not typically bound to financial journalists who by and tant information dissemination geographical locations. Such ne- large are located in the finan- techniques. tizens may not always write an cial capital of the country, Viz. Let’s look at the way PR has original post, but may be drawn Mumbai. Just being in touch changed or shall change in not in an argument or response via a with the beat reporter no more

10 KaleidKaleidOOscope March, 2016 ARTICLE suffices. Then there are market by the target audience. Online fear of adverse comments. This analysts, whose word is a kind of PR is able to extend reach and attitude does neither help the command for investors. PR prac- awareness of a brand within an practitioner nor the organization titioners have to track their analy- audience and will also generate or individual he/she works for. sis of various financial products back links vital to Search engine If there are adverse comments, continuously and interface with Optimization (SEO). Digital PR there would also be positive and them. can also be used to support viral neutral comments making it an There is no gainsaying the fact or word-of-mouth marketing ac- even game at the end of the day. i that it takes years of concerted ef- tivities in other media . Experts remind the practitioners forts and resources to build a de- Analysts believe that digital PR to never remove adverse com- sired image for an organization or benefits accrue to an organization ments as it would have the po- individual, but one critical com- when it joins in the Web, not at a tential to boomerang. All critical ment that goes viral on the Net spectator level, but when it opts input on the Net should rather be could result in a cascading effect for it to connect with its stake- dealt with in the best interact of on the image of the organization/ holders both at business and per- the organization. individual. What happens on the sonal levels. Through on-line PR, Net is on real time, so the dam- the organizations get a chance Reaching out to media via age control too has to be instant. not only to work with traditional the e-PR and social media Managing reputation in the Net journalists, but also engage di- route age is challenging if not impos- rectly with a new set of accidental E-PR can be used in various areas sible. What communicators need influencers. Web in fact is a great of application in PR. For the pur- to understand is that whatever platform for an organization to pose of this paper, two areas have appears on the Net is almost irre- talk with its customers directly been chosen as follows: vocable as the footprints remain through on-line forums, chat eternally. If the going is good, it rooms social networking sites • Media interface works fine, but if there is some and answer their queries and mis- • Investor outreach and Cust- controversial material on the Net givings about a brand, its pricing, omer Relations Management it remains there, despite the fact quality or service aspects. that the concerned organization let’s look at these areas closely may have resolved the issue. Why is web space important for PR and brand Media interface@ Net age Why use Digital PR? custodians? Legacy media like television, PR 2.0 according to Deirdre As more and more people are radio and press continue to be Breckenridge was born through connecting through the Net and mainstream and there is no de- the analysis of how Web and express themselves on the net on nying that that Net continues to multimedia were redefining PR issues, individual, brands and draw its ideas in no small mea- and marketing communications, organizations, the web space has sure from them. Journalists work- while also building the toolkit to become an indispensable coming in mainstream media often reinvent how organizations communication tool in the media have their blogs and wish to be municate with influencers and matrix. PR/CC practitioners have followed and interacted with directly with people. The pur- slowly but surely understood by their readers and program pose behind using the new media that there can be no real PR im- consumers. in PR, argues Breckenridge is to pact in the present time and day Highlights of a Research Study maximise favourable mentions unless they adopt the e-PR tech- jointly conducted by IIMC and of the organization or brands or nology in reaching out to their MSL on the changing sources of even web sites on third-party web stakeholders. Some PR practitio- news of journalists in India in sites which are likely to be visited ners are wary of using Net for 2012-13ii . i Deirdre Breckenridge, “ PR 2.0- New media, New Tools, New Audiences, 2008 (Pearson: New Delhi) ii http://www.slideshare.net/fullscreen/2020MSL/mediainsights-report/32. The Research was conducted by IIMC and MSL team under the overall supervision of Dr. J Jethwaney, IIMC

Kaleidoscope March, 2016 11 ARTICLE

Of the 309 journalists interviewed across the In the region-wise analysis, South ranks the country , as many as 92% of the respondents highest with 98% of the respondents using have adopted the use of internet for reasons internet, followed by West at 95%and North at ranging from research to sourcing information 91%. East lags behind in the usage with 82% and getting story ideas to validation. While journalists using internet. a meager 4% use it to get story ideas, 11% Out of the 309 journalists interviewed, 90% consume it for validation and 64% journalists of the journalists use social networking use it for research and information sourcing. platforms and that just reaffirms the way the Digging deeper, the research found that 75% communication landscape is changing. The of science and technology journalists are using age-factor presumably plays up here as well their online time for research and information with younger journalists accessing and using sourcing, followed by business and corporate social networking platforms more. 94% of the journalists at 69%. journalists with less than 10 years of experience The net has well and truly cast its web with frequent social networking platforms versus 61% journalists confirming that the internet 59% of their counterparts who have over two has become the biggest source of gathering decades of experience. information; while only 11% think that the Social networking platforms seem to be time is yet to come. This is an indication of more popular with journalists covering the importance of being seen online in the lifestyle and entertainment. 95% of journalists right context and ensuring relevant content from this beat use these platforms. 87% enrichment in the online space. journalists covering business and corporate As expected, the younger the journalists, frequent social networking platforms versus the more they depend on the internet. 95% 85% of those covering sports. While the of the respondents with less than 5 years of Facebook and Twitter were the two favorites experience use internet for myriad reasons for both genders, Google+ is more frequented in the context of news. 86% of the journalists by male journalist’s vis-à-vis the women with more than 20 years of experience have journalists. also adopted the internet of which 54% use Company websites are accessed by journalists it for background research and information to get authentic information, especially for sourcing. quotes.

The lesson for the PR practitioners newsworthy stories. If a PR per- the time. A journalist needs a PR is to observe and not necessarily son wishes to build a long-term source for an update, authentica- interact with their beat report- symbiotic relationship with me- tion, sound byte, quote, an exclu- ers on the Net. Journalists often dia persons, then he/she has to sive etc. An interactive newsroom don’t like too much familiarity understand the DNA of the me- is a great way to maintain control and intrusion from PR sources. dia organization/beat reporter. of brand communication. In cri- They however can track what The Net has provided a great op- sis times, it is important to keep is written by a reporter and the portunity to organizations to con- updating it. Empirical research remarks of the followers and the stantly remain in touch with the suggests that in times of crisis, response of the journalist. A lot media fraternity through on-line journalists first of all access con- of insights can be drawn from all interactive newsrooms. cerned company’s web site. this by PR practitioners on a day to day basis. Experts believe that What is an On-line What are the best practices editors and reporters build rela- newsroom? for on-line media rooms? tionship if the PR person works An on-line newsroom is set up An on-line media room has to be for a well known company or a in a virtual setting that can be constructed after a lot of think- PR firm who can give input on accessed by media persons all ing and strategy. As technology

12 KaleidKaleidOOscope March, 2016 ARTICLE is involved, analysts beware PR practitioners not to let the IT department handle the content. The PR people have to be in charge and control of the content. Some of the points to be kept in view include the following: • Begin with a ‘needs analysis’ research keeping in view broadly the marketing, PR and media relations strategy. • Make the navigational design in a manner that it provides valuable information that the visitors may have on their mindsiii.

What should it ideally • Easy downloadable images of contains updated information have? logo, pictures of events with clear on events, innovation, financials, labels. ( Quality -at least 300 dpi). new contacts etc. The information Key elements of Interactive • Archival page with old press is easily downloadable automati- newsroom releases arranged subject/year/ cally in to a journalist’s computer • Contact information for compa- date-wise. via internet explorer. ny’s PR person, editorial contact • Press reports/coverage (the David Meerman Scott has an in- to be clearly listed on the front/ company has to be careful if it teresting take on on-line news- home page with (navigation wishes to add this page. By just rooms. A company’s on-line instruction) uploading favorable coverage newsroom, he writes is the most • Basic facts on company; a and not negative one may create frequented page not only from factsheet, names of key execu- credibility gap). journalists, but all kinds of visitors tives, product line/service and • Register journalists for pass- including a company’s custom- turnover. word enabled information. Send ers. In fact anyone who wishes to know about a company, would • Company’s perspective on its weekly updates in the Newsroom often stop by at the newsroom industry or current events, indus- through e-mail alerts to journal- to know the latest. To quote him try presentations, speeches and ists on the beat. “ ..I want you to do something publicity Journalist can be offered to have that many traditional PR people • Access to financial informa- personal folders in the news- think is nuts. I want you to de- tion, sales/revenue figures for a room with a password protected sign your online media room for quarter/specific period with - cor area to store information that your buyers. By building a media responding figures for last one or they may have researched and room that targets buyers, you will more years, to put the figures in wish to archive on a company’s not only enhance those pages as a perspective. site for future use. For instance powerful marketing tool but also • Information is oxygen for jour- among many organizations who make a better media site for journal- nalists so it is important that a lot have interactive newsrooms, at ist”. The hundreds of newsroom of background information is cre- Accenture, Journalists can sign he has visited, write Scott, the ated to facilitate the journalist in up and receive RSS feed in the best ones happen to be those that expanding his/her story. Accenture newsroom. The feed were built with buyers in mindiv.

iii David Meerman Scott, “ The New Rules of marketing & PR”, 2012 ( Times Group Books: New Delhi) 275-277 iv Ibid pp. 272-273.

Kaleidoscope March, 2016 13 ARTICLE

• Add sound bytes of those who matter. The communication must not only be but also seen an authentic and reasonable. • Videos of the happening/accident site • Videos of acts of human kind- ness/beyond the call of duty.

Keep –e-press kits ready for the scribes on specific targeted news releases, images, statements and related content.

Some Don’ts Experts believe that to be success- When in crisis, don’t argue in or- ful in new media age Pr practitio- ganization’s supposed interest; ners need to keep the following The viral nature of explain its perspective in view: communication can Be empathetic in words, body • Non-targeted pitches are spam language and intent. make it worse, so have • News releases sent to reporters The viral nature of communica- in subject areas they don’t cover patience as soon as the tion can make it worse, so have are also spam patience as soon as the crisis breaks. People would like to • PR professionals need to pitch crisis breaks. People know what are you doing to miti- bloggers because being con- would like to know gate the crisis, especially if hu- nected will have them noticed by man life in involved. mainstream media. what are you doing The organization may not have • Personal relations with report- to mitigate the crisis, been directly responsible for the ers despite on line interactive crisis, but issuing denials when newsroom are a mustv. especially if human the suffering of the people is apparent would boomerang. In Adverse times life in involved. The if in crisis, an interactive news- organization may not Share your concern, the plan of room can become an organiza- action with facts, figures and tion’s life support system in ex- have been directly re- graphics/videos for credibility. plaining itself, disseminating Look for sound bytes from peo- sponsible for the crisis, information quickly, reaching ple who trust you. It will make a out to its various stakeholders but issuing denials difference. through the media as well as the website and most importantly when the suffering of Investor outreach and facilitating media to have a con- the people is apparent Customer Relations tinuous flow of information, Management@ Netage graphics and video clips. would boomerang. Reputation Management As with human beings, reputa- Some do’s tion is very dear to companies • Constantly update information. also and they would do anything

v Ibid 286-87.

14 KaleidKaleidOOscope March, 2016 ARTICLE to safeguard their ‘fair name”. With the onset of social media and UGC (User generated content, Reputation Management (RM) has acquired different di- mensions. If on the one side it can proactively enhance a company’s reputation by sharing with investors and analysts the good points about the company, on the flip side, the company may experience a harrowing time if it has substantiated or unsubstantiated criticism of its brands or people on social networking sites. The viral nature of communication of- Seventy six of global executives gave positive impact on business ten has a cascading impact on the believe that it is a good idea for results and an equal percentage brand equity of an organization. their CEOs to be social both inter- of respondents said it made the Many companies are now open- nally and externally. Nine out of working place more attractive for ing up to the idea of interfacing 10 executives interviewed had them. Seventy four percent felt with their stakeholders online to a personal social media account it enhanced a company’s cred- build relationship and bonding. and six in 10 said that other execu- ibility in the market place. Social Many CEOs have come out of tives in the firm (60%) used social participation enables the CEOs the closet and are interfacing on media as a part of their jobs. Fifty to communicate with multiple social media. Does it really work? two percent respondents said stakeholders. How do executives of companies that their CEOS’s social media In summation, if the Net has that have social CEOs feel about presence inspired them and 41% brought in immense opportuni- this and what could possibly be percent felt proud of their social ties for organizations to reach the gains, were some of the ques- CEOs. Interestingly 6% each felt out to their disparate set of audi- tions on the mind, when a lead- embarrassed and nervous with ences, it has also become a cause ing PR firm Weber Shandwik’s social CEOs. Social CEOs in gen- of much distress for them, if the conducted research on the issue. eral were perceived to be better going is not good. If not care- Its 2012 audit of the online en- leaders by global executives. ful or responsive to the genuine gagement activities of top global The top most benefit of a CEO’s concern of a stakeholder, the vi- CEOs (Socializing your CEO II) sociability according to 80% ex- ral nature of communication can has brought in some interesting ecutives whose CEOs were so- bring a lot of disrepute, even if insights on the use of social me- ciable was that it was a means to the organization was not really at dia by CEOs and the resultant im- share company’s news and infor- fault. The lesson for PR/corporate pact on such organizations. Here mation. Eighty five percent ex- communication practitioners is vi are some of the highlights : ecutives said that blogging CEOs to understand the medium, keep The CEO Net sociability has in- showed innovation, 84% said it updated about the changes and creased from 36% to 66% between helped CEOs build good rela- use it optimally in the interest of 2010-2012. tionship with media, 76% said it the organization.

vi With partner KRC Research, the Weber Shandwik survey covered 630 professional managers on up to C-Suite, excluding CEOs, about the social participation of their CEOS. The respondents worked in companies with revenue over USD 500 Million or more and represented 10 countries across North America, Europe, Latin America, Asia and Pacific, emerging markets across a variety of industries.

Kaleidoscope March, 2016 15 ARTICLE Importance of Effective Media Relations

Samir Kapur*

usinesses and organisa- are still used interchangeably by every year. However, the internet tions need the media for a many; however they are not ex- as a new media is still booming Brainy day; therefore effec- actly the same. Hence, drawing a throughout the world; although tive and intimate relationship, in clear line between the two terms some argue that its growth is get- which respect and understanding is crucial in order to understand ting stagnant. New media is a of each party’s interest is careful- each of which roles better. MR new challenge, which has surely ly considered, must be exercised. addresses the relationship that changed what the media used to Journalists and reporters are busy firms build up with journalists, be. people whom getting hold of are editors and analysts; whereas PR There is a need for inclusion of difficult in the dog-eat-dog world expands that relationship further new media as part of the process of the so-called information era. to the general public. However, of social changes. Therefore, there Thus the best possible way of MR and PR cannot be separated is enough evidence to suggest contacting them should be identi- in the dynamics of the twenty- that, World Wide Web (WWW) is fied by responsible individuals at first century and its turbulence. now becoming an important com- organisations. This is a vital task Surprisingly, there are still some munication tool on which MR can which needs extreme care and practitioners who dedicate less be effectively exercised. White skills to establish and manage ef- time to MR. There is a going cho- and Raman (1999) argue that the fective media relations (MR). rus in Indian PR fraternity sce- WWW is the first controlled pub- Media is now part of almost ev- nario as well that media relations lic relations (PR) mass-media, but eryone’s everyday life throughout is passé. is not filtered through gatekeep- the globe. Rapid growth of new Media has been divided into “tra- ers. Here, skills and passion are media and impacts of media, in ditional media” and “new media” needed to take advantage of this general, is inexorable, particular- by many scholar and practitio- new experience. Before the inter- ly by presence of the internet, in- ners. They are both equally im- net, advertising was the only way teractive and digital media. Once portant to organisations. Despite to transmit controlled messages a press release and/or news are incredible growth of interactive via the mass-media. Hill and aired, it is done and surely would and digital media, there are still White (2000) mention organisa- have impacts; however small some traditionalists who want tions tend to strengthen corpo- they are. Technology changed the to read about organisations’ ac- rate identity, gather data, provide world and facilitated building up tivities on hard copies rather than information to their stakeholders relationship with media and in- going on-line or press the “red and the media via WWW. teracting with a wider audience button” on their digital TV. This According to Fulton and Guyant than ever before. is why there are numerous of (2002), the internet gives the op- In India the terms “public rela- newspapers and magazines – as portunity to all organisations and tions” and “media relations” of traditional media – published businesses to pronounce their

* The writer is Senior VP of Adfactors PR Pvt Ltd – India’s largest PR Agency.

16 KaleidOscope March, 2016 ARTICLE operation worldwide. It also al- lows direct and more effective communication with their key public regardless of geographic factors and barriers. For example, if something occurs in China now, within a few minutes it will be broadcasted throughout the world. The internet bypasses all the geographic barriers, but countries’ rules and regulations, in which the organisation may have stakeholders, must be considered for legal purposes. Being successful in managing this, the media would be more interested to get in touch with such organisations. This in turn adds values in which they have substantial management and importantly en- to the company’s publicity. audiences. Media is one of their gagement of skilful individuals key audiences (Wells and Spinks, with great communication skills. How to approach the me- 1998). Thus co-operation with the Communication is an art and a dia and journalists media is essential and the key science. It is art because a hu- to succeeding in establishing as man being creates and delivers its In the early years of PR, practi- well as maintaining relationships purpose. It is a science, because tioners endeavoured almost ex- with the media. This is all down we learn and experiment stuff; clusively to get attention in the to communication skills and at- where we can give solutions to mass-media for their organisa- titude of individuals. Before con- complexities. tions. Building up relationships tacting the media, having an idea with the media is a hard task and This is about innovatively and about what type of journalists and maintaining it, is even harder. A creativity as basic principles of or reporters you are going to talk well established MR is the best gathering attention of the media to is incredibly important. This is avenue to create positive impres- for what organisations may have essential to bear in mind, as we sion in the eyes of strategic pub- to say to their public. One way are between two generations: tra- lic. It is important to have some- of maintaining good MR is to ditional; and modern. There is no one well trained and experienced keep updating available data and complete consensus between the available and accessible within an evaluate the organisation per- two yet; although both have great organisation; someone who can formance constantly. Therefore, ideas. Therefore younger practi- wisely disseminate information enhancing effective communica- and understand what the journal- tioners and scholars need to lis- tions is essential. Nothing can ists and reporters mean by certain ten to and learn from experienced replace the need for strategi- phrases. If problems arise, an ex- practitioners in businesses and cally planned communications. perienced spokesperson from the organisations. Through professional approach senior management should deal and appreciating reporters’ and with the media to communicate Learning process never stops and journalists’ limited time, organ- complete and appropriate infor- skills are always vulnerable to ob- isations can attract their attention mation. This is about credibility solence; this is particularly true in more effectively. For example and reliability of content which the media industry and MR activ- giving space and time to them to an organisation can deliver to its ities. Hence this calls for regular get back to you rather than both- public. knowledge update and following ering them by constant calls and It is crucial to businesses and up relevant news by organisa- e-mails. organisations to remember that tions. As it implies, MR is serious This does not help but ruins rela- they operate within communities, and real therefore it requires real tionships; everything should be

Kaleidoscope March, 2016 17 ARTICLE carefully assessed and planned in • Who else is the reporter - personality piece the first place. Furthermore, the interviewing? - investigative report information should be designed • Where does my point of view - in-depth background piece in a way to encourage the report- fit into the story? - point/counterpoint ers to get back to you as quickly • What is the interview format? as possible. However, follow up Also, while you can’t usually ask - live/taped is an important task for organisa- for the questions ahead of time, it - edited/unedited tions to ensure the effectiveness is appropriate to ask the reporter - in-studio “Live at 5” or talk and appropriateness of what is in advance of the interview who show format taking place with respect to the else he/she is speaking with for - on-location “stand-up” organisation purposes. The infor- the story. - telephone interview mation should be structured in a Answers to these questions will - “remote” interview (inter- way that prevents future specula- help you decide: viewer and subject at differ- tion and manipulation. ent locations) • What opportunities this inter- - listener call-in broadcast view offers you to make positive The 3 Cs for effective me- program points about yourself, your orga- dia outreach - solo interview vs. multi-guest nization, your product or issue.* An effective relationship strategy discussion • What factual information and hinges on your ability to achieve - unexpected “ambush” confidence, control and credibility. other preparation you will need - press conference Confidence enables you to go into to get ready. an interview situation as an equal • What type of story is the report- (*Note: If you conclude there are and enthusiastic participant, con- er doing? no potential benefits, then re- trol enables you to communicate - “hard news” spectfully decline the your own message clearly, and - feature story credibility enables your audience interview. In most instances, how- to believe that message. ever, interviews will offer some The concept of “control” includes opportunity to tell your story to controlling your demeanor, your An effective relation- large audiences. Also, a good presentation, your language and working relationship with media ship strategy hinges on your message. Most important, will increase an organization’s it means taking an active role in your ability to achieve chances of fair treatment during times of attack or controversy.) steering the interview — creat- confidence, control and ing and seizing opportunities to assert your own agenda, rather credibility. Confidence Defining Your Agenda than being pulled along passively enables you to go into You cannot effectively assert by the reporter. your agenda or message unless This strategy begins with an interview situation you can express it in a concise preparation. as an equal and en- and provable manner. Because broadcast interviews, and often thusiastic participant, Basic Groundwork print interviews as well, are very Your preparation begins with an- control enables you to brief, you cannot count on being able to express every point you swers to some basic questions, for communicate your own example: would like to make. Rather, you message clearly, and need to identify the few points — • What type of publication/pro- called “message points” — that gram is it? credibility enables your are most important, and reiterate • Who is its primary audience? audience to believe that these points during the interview. • To what extent has the reporter message. Message points are a few concise dealt with this issue? Does s/he thoughts, ideas, arguments and have an apparent bias? impressions that you most want

18 KaleidOscope March, 2016 ARTICLE to leave with your audience. The best way to begin formulating your message points is to determine the specific goal(s) of the interview. Who is your specific target audience, and ultimately, what do you want them to do?

• Support/oppose legislation? • Buy your product? • Buy your stock? • Patronize your company? • Take some other action?

In order to achieve your goal, remember that your message What Made never had a spill. That’s partly points must be provable asser- The Evening News because every worker in our plant tions that you can back up with Mr. X: If there is any pollution, receives 100 hours of training additional facts. Acme is not connected with it in each year in environmental safe- In a sense, you must think like any way. These charges are ba- ty. In fact, we spend three times a lawyer. No prosecutor would sically a witch-hunt, and I’m not the industry average on safety simply stand up, point at the de- going to justify them with a reply. systems. I’m proud to say we re- fendant and say, “He’s guilty. I ceived the County Conservation rest my case.” The prosecutor Headline in Society’s award to the safest com- would bring in various types of The Morning Paper pany last year, and we’ll work to proof — motive, witnesses, fin- “ABC Chief Denies Pollution, win it every year. gerprints, etc. — to back up the Calls Charges ‘Witch-Hunt’” assertion. What Made Why He Lost The Evening News Message Points: Sample Mr. X’s goal and message points Mr. X: There’s no truth to those Scenario are cloudy. He asserts that ABC charges at all. Environmental Mr.X is a spokesperson for ABC is not responsible for any ground- safety is Acme’s top priority, and Chemical Company asked to de- water pollution, and eventually our record proves it. During our calls Acme “a safe company,” but fend the company against charg- 20 years in this business, we’ve he offers no facts to back up his es of groundwater pollution. never had a spill. assertion. As a result, few view- During an interview with a local ers will believe him; after all, he’s television station he is confronted paid by the company. In addi- Headline in with the allegations. tion, his harsh — and quotable The Morning Paper “X: ABC Environment Record — allegation of a “witch-hunt” How to Lose made him sound flustered, and Refutes Pollution Charges” Mr. X: That’s absolutely false. If is bound to steal focus from his there is any pollution, Acme is other remarks. Why He Won not connected with it in any way. • His message point — “ABC is These charges are basically a How to Win environmentally safe” — is clear witch-hunt, and I’m not going to Mr. X: There’s no truth to those • It is stated up-front justify them with a reply. We’re charges at all. Environmental a safe company, period. You can safety is Acme’s top priority, and • He backs it up with facts ask any of our employees or any- our record proves it. During our • He stayed cool, didn’t become one else in the industry. 20 years in this business, we’ve flustered

Kaleidoscope March, 2016 19 ARTICLE Survey sees Some Challenges in Otherwise Bright Economy

K. R. Sudhaman Senior Busines Journalist

ndian economy is on a sweet During the last one year, India by NRIs have not fallen despite spot expecting to clock 7.6 has certainly brought about dramatic decline in oil prices im- Ipercent GDP growth mak- macro-economic stability with pacting oil producing countries ing it the fastest growing econ- Inflation being reined-in despite in West Asia where large number omy in the world, according to drought for two consecutive year, of Indians work helping the for- the Economic Survey 2015-16 fiscal deficit contained to 3.9 per eign exchange reserves to swell. presented to the Parliament on cent this financial year, foreign Indian Economy might have February 26. The miracle Chinese exchange reserved swelled to made substantial improvement in about $350 billion and current ac- economy has slowed down to be- its macro economic fundamentals count deficit below one per cent low 7 percent and all other coun- in 2015-16. The Survey also points of GDP. All these have happened tries are not doing well. out that the impressive strides partly because of sharp fall in The Survey is also a pointer to have been made in reducing mac- global commodity prices due to ro-economic vulnerability with challenges that the economy economic slowdown. The steep reforms in key areas. Though the would face in the coming year fall in global crude oil prices growth prospects look reason- 2016-17. Among the challenges greatly helped India to rein-in fis- able, there are several downside are slowing exports, reforms and cal deficit due to massive over Rs risks due to weak global demand. restructuring of sick Public Sector 75,000 crore savings on oil subsi- Hence GDP growth in 2016-17 Undertakings. The sweet spot dies. This also resulted in current will fall short of its growth po- might not be lost if calibrated account deficit falling below one tential of 8-9 per cent. This means reforms are not pursued. This is percent of GDP. Though India’s necessary to ensure that Indian exports declined sharply, imports growth cannot be any better than Economy is “fortified” against too fell as crude oil imports ac- the projections for this year of 7.5- possible spillovers of an unusual- counting for over $120 billion fell 7.75 per cent. ly volatile external environment. sharply as well as imports of other The Economic Survey has right- If the World economy lurches commodities whose prices have ly observed that moving from into crisis or slides into further fallen sharply like coals, cement, socialism with restricted entry weakness, Indian’s growth will steel and so on. Gold imports too to marketism has created the be seriously affected, warns, the fell, partly because of falling pric- “Chakravyuha Challenge” for Survey. es. Strangely India’s remittances the Indian Economy. The survey,

20 KaleidOscope March, 2016 ARTICLE authored by the Chief Economic 23,000 crore in 2013-14. To mini- number of small and medium Advisor Mr. Arvind Subramanian mise the loss , neem coated fertil- enterprises, which in turn would is justified in saying liberalisation isers and direct benefit transfer of lead to much needed job creation. of the economy without provid- subsidy to farmers would help. The Survey cites Russian ex- ing for exit has resulted in this In the civil aviation sector, the amples to suggest that privatisa- problem. He said impeded exit total loss was Rs 2,400 crore in tion is not a panacea for all ills has substantial fiscal, economic 2013-14 for the seventh straight of Public Sector Undertakings. and political costs. This pervasive year and the answer lay in strate- Russia suffered from trying to nature encompasses manufactur- gic sale, the survey hinted. Public privatise assets, which ended up ing, public and private sectors sector banks, which needed in the hands of the few so called and agriculture. capital infusion of over Rs one oligarchs. The Indian approach A market economy requires unre- lakh crore, the solution to deal of eliminating inefficiencies in stricted entry of new firms, new with the problem lay in bank public sector through promoting ideas and new technologies so the consolidation that is merger, competition via private sector forces of competition can guide strategic disinvestment, resolu- entry is a better approach. Indian capital and labour resources to tion and reforms, besides recog- aviation and telecommunication their most productive and dy- nising the huge non performing sectors are examples. Entry of namic uses. But it also requires assets problem. For state electrici- more private sector banks could exit so that resources are forced ty distribution companies, which be an option to deal with inef- or enticed away from inefficient has accumulated losses of over Rs ficiencies in public sector banks, and unsustainable uses. 2.3 lakh crore in 2013-14, the solu- the survey indicated. Since the dismantling of famous tion lay in structural reform with In Sum, India is “oozing poten- licence-quota-permit raj of C one time debt relief as in UDAY tial”. Real GDP growth form 2015- Rajagopalachari, India’s first and and creation of “one marker” 16 is expected to be in 7 to 7.75 only Indian Governor-General, in power. Regarding sick PSEs range reflecting variously offset- has led to increasing entry of the survey said their losses to- ting development on the demand companies, dismantling of in- talled to Rs 1.04 lakh crore in and the supply sides of the Indian dustrial licensing and dilution of 2013-14 and the solution lay in al- Economy. Though the long-run public enterprises monopolies, lowing their exit. GDP growth potential is 8-10 per cent, the short-run growth will sale of some of their assets. All The survey notes most public depend upon global growth and these along with foreign direct sector firms occupy relatively investment have led to elimina- demand, which is muted. India’s large tracts of land in desirable exports of manufactured goods tion of entry barriers but on exit locations. Parts of this land can front there has been less prog- and services now constitute about be converted into land banks and ress, the survey argued and said 18 per cent of GDP up from 11 per made into vehicles for promot- this had led to restricted entry to cent, a decade ago. This meant ing the ‘Make in India’ and Smart marketism without exit. There is one percentage point decrease in City campaigns. It could also be an exit problem, which is beyond global growth results 0.42 per- used to develop eco-systems to dispute, the survey said adding centage growth decline in Indian nurture start-ups or used to de- there is fiscal, economic and po- economy. This meant there is has velop sites for industrial clusters. litical costs because of impeded to recalibration of India’s medi- The government in the past suc- exit. um term growth expectation to cessfully implemented this ex- 7-7.5 per cent with global econo- Analysing this problem in detail, periment with sick and closed my not expected to pick up in the the Survey attempts to measure NTC mills in urban locations like next few years. This meant there the costs of inefficiency in various Mumbai and elsewhere where it is downside risks to growth and sectors and suggests solutions. monetised the huge land the mills there is need to push reforms so In case of inefficient fertilisers had in prime locations to clear the India gets back to its true growth companies employing over 15,500 debt and for payment of arrears potential of 8-10 per cent in the persons, the estimated subsidy to workers. Setting up of industri- long term with the recovery of on production amounted to Rs al clusters would encourage large global economy.

Kaleidoscope March, 2016 21 ARTICLE MoU Design - A Robust Framework

B. B. Goel Prof. of Public Admn. (Retd.) Panjab University

n business parlance, Memo- Committee (1986) suggesting five (2012) suggested radical reforms randum of Understanding years’ agreement in core sectors. in entire gamut of MoU system. I(MoU) is often used where It was revamped in 1989 by mov- These are: common format to parties either do not imply a legal ing closer to signaling system of maintain uniformity/ minimize commitment or a legally enforce- Pakistan/Korea. Effective from subjectivity; CPSEs to follow able agreement is not feasible. 1989-90, performance evalua- MoU exercise irrespective of size/ In some cases, MoU has a bind- tion was based on annual targets. sector/activity; Task Force best ing power of a contract indicat- New Industrial Policy 1991 reem- judge to determine basic targets; ing relationship between depart- phasized that “there would be a judicious application of negative ments, agencies or entities. In greater thrust on performance marking; no conditional targets/ international relations too, MoU improvement and management mid year review; suitable off- is termed as a treaty registered in would be granted greater au- sets in force majeure cases; more UN database. Here, it is enforced tonomy through MoU”. During Syndicates for cohesion/homo- without parliamentary approval. implementation, it was observed geneity; MRGs as main support In essence, MoU is a gentleman’s that MoU approach offered a mechanism; pre-negotiation mee- agreement without creating any lot of discretion to monitoring tings; joint meetings for co-ordi- legal right/duty of a binding agency to change weights of pa- nation purpose; and simple/brief nature. In context of public en- rameters of a CPSE. Accordingly, Guidelines. terprises, it has inherent advan- NCEAR Study (2004) suggested tages: no haziness in setting tar- 50% equal weights for financial/ Latest MoU Guidelines gets; transparency/accountability non financial parameters based While aforementioned sugges- through objective criteria; up gra- on balanced score card approach tions were partly implemented dation of processes, systems and against prevailing 60% and 40% in subsequent years, 2016-17 value addition; scope for adopt- weights. Ashok Chandra Group Guidelines have additional in- ing best practices; tangible results on Review of Guidelines (2008) novations viz.: background with operational autonomy; least recommended that for determin- note by Ministry on perfor- external pressure; incentives for ing basic targets, CPSE performance of sector and CPSE con- performance; and above all, em- mance for five years be taken into cerned along with applicable powerment and enhancement of account to avoid any distortions benchmarks; Maharatna CPSEs performance. while MDI Consultant Report to be preferably represented by (2010) proposed six formats for Administrative Secretaries in ne- Historical Perspective different kinds of CPSEs and gotiations; Task Force categori- MoU concept was introduced in two additional enterprise spe- zation in two groups of experts; France in 1970. India made a mod- cific parameters. 2nd Pay Review single format for CPSEs (save un- est beginning from 1987-88 with Committee too urged 100% PRP der construction/closure units); signing of four MoUs on recom- for CPSEs with Excellent rating. additional eligibility criteria for mendations of Arjun Sen Gupta Meanwhile, Mankad Committee CPSEs deserving excellent/very

22 KaleidKaleidOOscope March, 2016 ARTICLE good rating; no exemption from efficiency (production, technol- are so fixed that they are jointly signing MOUs; flexibility to Task ogy and R&D); Leveraging net and severally responsible for per- Force to choose outcome based worth (capex); monitoring (ca- formance. Unlike previous years, sector specific parameters; de- pex); turnover; operating profit/ a single format has been devised lineating capacity utilization cri- surplus; early signs of weak- to maintain uniformity/consisten- teria; and on-line MoU submis- ness; marketing efficiency ratios; cy in approach. sion. Thus, Guidelines are target Return on investment; and sector/ oriented with increased global CPSE specific targets. MoU Task Force & High competitiveness. According to Power Committee Essentialities latest policy initiatives, CPSEs MoU Task Force is an indepen- The parameters have to con- are mandated to shell at least 30% dent body of honorary experts form to definitions adopted in PAT/equity having large cash nominated by Department of Guidelines with a self certifica- reserves on the premise that if a Public Enterprises. It assists in tion. These have to be realistic, company cannot use its surplus setting CPSE’s targets at begin- better than keeping it as bank growth oriented and aspirational; ning of year and evaluation at deposit, it should return cash to consistent with Budget; and ap- year end. CPSEs failing to submit shareholders. More-so, CPSEs’ proved by Niti Aayog /Ministry of evaluation reports by target date reliance on market borrowings Finance/Administrative Ministry are not only rated as “poor” but ensure professionalism. concerned. Wherever CPSEs under pitch projected performance become ineligible for awards. Task Force has several Syndicates MoU Parameters for coming year to plead for soft targets, Task Force can call upon each comprising Convener, fi- Effective from 2004-05, financial/ its CMD to explain reasons there- nance expert and remaining from Non financial parameters had to and make adjustments while civil services, academics and for- equal weights. The former re- finalizing its score. mer chief executives. However, lated to profit, size and produc- from 2016-17, two sets of experts tivity while latter were divided Basic targets are determined namely finance and non finance into dynamic, enterprise specific on actual achievements of past including sectoral experts are and sector specific parameters five years and factors like ca- nominated. As regards High with varying weights. This prac- pacity, business environment, Power Committee, it comprises tice was partly abandoned in projects under implementation, Government policies, external a number of Secretaries headed 2013-14 and Task Force had lib- factors, growth forecast and by Cabinet Secretary and assess- erty to evolve new parameters/ Benchmarks. Since performance alter weights in consultation es performance of MoU signing of some CPSEs (power and coal) with respective CPSE/ministry. CPSEs. The MoU Calendar of are inter dependent, their targets Similarly, till 2012-13, compli- Events has 11 stages: ance of Corporate Governance and DPE Guidelines was part of MoU Calendar of Events non financial parameters. These 1. Preparation of Guidelines November are no more mandatory now. 2. Draft MoU submission by CPSEs December Rather, non- compliance invites 3. In-house examination of draft MoUs December negative marking. Subsequently, 4. Pre-negotiation meetings January parameters like Research & Development, Corporate Social 5. Negotiation meetings January/February Responsibility, Sustainable 6. Finalization of MoUs by Task Force February/March Development, Human Resources, 7. Preparation/circulation of minutes February/March Risk Management etc., were 8. Signing of MoUs Latest by25th March introduced. However, latest 9. Submission of performance evaluation for 31st August Guidelines with 10 sub heads year-end (without distinguishing financial/ 10. Finalization of score/rating by Syndicate Group November/December non financial parameters) con- centrate on capacity utilization; 11. Approval by HPC December/January

Kaleidoscope March, 2016 23 ARTICLE

Composite Score, Rating & Excellence Awards There were marginal instances Composite score is aggregate of all weighted score of actual achievements being rated as Poor. More so, en- versus targets set out on a five point scale namely 1.00-1.50-Excellent; terprises rated as Fair can defi- 1.51-2.50 Very good; 2.51-3.50 Good; 3.51-4.50 Fair; and 4.51-5.00 Poor. nitely improve. Once score and rating of CPSEs is approved by HPC, it becomes final. Level Playing: Increased function- Further, Excellence awards (one from each Syndicate, Listed CPSEs and al, financial and administrative Sick CPSE on way to turnaround) are conferred provided CPSE’s profit is autonomy (ONGC, NTPC, SAIL, higher compared to previous year and composite score is not more than NBCC etc.) and benchmarking 1.5. If two or more CPSEs have same score in one Syndicate, CPSE record- has also facilitated CPSEs to come ing highest growth rate of net profit over previous year becomes eligible. up at par or even exceed perfor- Besides, all other ‘Excellent’ CPSEs receive merit certificates. mance from their counterparts in private sector. MoU Progress Card Improved Performance: Begin-ning with 4 enterprises in 1986-87, CPSEs Way Ahead entering into agreements with Ministries have swelled to 198 in 2010-11. Despite MoU phenomenal progress, some concerns raised by MoU Signing CPSEs former/current Chief Executives, Members of Task Force and Year MoUs signed Year MoUs signed other stakeholders, need atten- 1987-88 4 2001-2002 104 tion. Since CPSEs employ highly 1988-89 11 2002-2003 100 qualified professionals, this com- 1989-90 18 2003-2004 96 ponent has to be a crucial part 1990-91 23 2004-2005 99 of MoU parameters. Secondly, 1991-92 72 2005-2006 102 Benchmarking remains a futile 1992-93 98 2006-2007 113 exercise unless environmental factors – both external and inter- 1993-94 101 2007-2008 144 nal- like pricing, material control, 1994-95 100 2008-2009 144 MIS etc. are prioritized. Thirdly, 1995-96 104 2009-2010 197 CPSEs opting for increased ca- 1996-97 110 2010-2011 198 pex, capacity utilization and 1997-98 108 2011-2012 197 turnover remain advantageous 1998-99 108 2012-2013 196 compared to other parameters 1999-2000 108 2013-2014 197 in overall exercise. Fourthly, piecemeal changes in Guidelines 2000-2001 107 do not allow the system to grow Data compiled from Public Enterprises Survey (2010-14), DPE, New Delhi methodically. Fifthly, revamping However, every CPSE has yet to kick-start. As regards quality rating, Task Force on analogy of Rajya there has been tremendous increase in excellent category: Sabha members’ retirement can ensure blending of experience MoU Ratings and maturity with induction of enterprising ones for effective Rating 2006- 2007- 2008- 2009- 2010- 2011- 2012-13 performance. Sixthly, MoU de- 07 08 09 10 11 12 sign needs to be percolated down Excellent 46 55 47 74 67 76 75 the line. Seventhly, practice of Very Good 37 34 34 30 45 39 39 holding full Task Force meeting Good 13 15 25 20 23 33 37+1 (Prov.) before the negotiations meetings Fair 06 08 17 20 24 25 36 commence, needs to be re-visited Poor 00 00 01 01 02 02 02 to thrash out common issues. Total 102 112 124 145 161 175 190 Eighthly, at present, due to limited space, Syndicate meetings take Data compiled from Public Enterprises Survey (2010-14), DPE, New Delhi place in water tight compartment

24 KaleidKaleidOOscope March, 2016 ARTICLE at different locations thereby providing minimal opportunities for sharing interactions amongst the members and enriching their experience for effective target setting. Finally, target setting should neither raise CPSE performance bar annually without scope for expansion/diversification nor de- tract it from soft targets achiev- able in 3rd quarter itself. To conclude, MoU Design has ushered as a robust framework in knitting all the profit and loss making enterprises together to learn from each other’s experiences and ensure that CPSEs in balance of payments and re-orienting and re-inventing continue to serve broad macro- above all, low, steady and stable MoU system from time to time, economic objectives of higher prices. Besides, Department of has been rendering a yeo- economic growth, self sufficien- Public Enterprises as the nodal man service in accomplishing cy in production of goods and agency for upkeep and strength- Mantra of Minimum Government, services, long term equilibrium ening of Public Enterprises by Maximum Governance.

Kaleidoscope March, 2016 25 ARTICLE GST Is Inevitable - Time for Industry to Prepare

Sumit Dutt Majumder

t was no doubt disappointing the Integrated GST (IGST) on the This issue can be resolved, by that the Winter Session of the supply of goods in the course spelling out the ‘modalities to re- IParliament could not fetch us of inter-state trade be scrapped. solve disputes’ in specifics in the the much expected Goods and This tax which could be kept by Bill itself. It may be recalled the Services Tax (GST) for reasons the origin States and for which no States did not agree to a separate beyond Economics. Even now, it credit would be available to the DSA which they saw as in inter- does not appear that the GST Bill tax payers, has been proposed to ference with their fiscal autono- will be cleared in the first half of please the predominantly manu- my. However, this issue is also the Budget Session. We will have facturing states, who would be resolvable. to wait for the second half of the losing the state share of GST to The third demand is with respect session in May to get the Bill the destination states in the GST to capping the GST rate at 18% cleared by the Rajya Sabha. Thus, regime, the GST being a desti- and putting it in the Constitution we have missed the target of 1st nation based consumption tax. itself. The purpose seems to be April 2016 as well. But one must This additional tax is inflationary, to thwart the Centre’s attempt to not lose heart. GST is inevitable, distortionary and against the in- increase GST rate in future for and its introduction is just a mat- terest of the tax payers. This was garnering more revenue. This ter of time. Thinking positive, it unnecessary since in any case, the demand cannot be accepted. The is a blessing in disguise that GST Centre has promised the States rate of duty is dynamic and it won’t be implemented on April 1, compensation for a period of five would need to be changed at dif- 2016. A lot of work is yet to be years for any revenue loss after ferent times depending upon var- done both by the taxmen, the tax introduction of GST. This demand ious factors. Once this demand is payers, and other stakeholders. is reasonable and the Centre also accepted, the Government would Implementation of GST at a stage seems amenable to the demand. have to go through the arduous of half-preparedness would have The second demand is for an in- route of Constitution amendment been a disaster. Before I elaborate dependent Dispute Settlement each time the GST rate needs to on this, let us see the present sta- Authority (DSA). The Bill has be raised beyond the capped one. tus of GST. provided for the GST Council it- This is impractical and the op- But for a few differences in its self to decide about the modali- position party would need to be structure, the GST Bill is being ties to resolve disputes between persuaded not to insist on this supported by all political parties. Centre and the States, and among demand. The issues raised by the major the States. To bring fairness to the Now, a few words about the opposition party have now been dispute settlement process, it is Report of the Expert Panel head- narrowed down to three. First, better that the disputes emanating ed by Arvind Subramanian, the demand that the provision from the recommendations of the the Chief Economic Advisor on of the levy of an additional tax GST council are settled by a body GST Rates. The Panel has de- of one percent over and above independent of the GST Council. termined the Revenue Neutral

26 KaleidOscope March, 2016 ARTICLE

around 99, the current Central Excise exemptions are more than 250, after the Budget, 2016. • In GST regime, taxability would be decided by the single act of ‘supply’ of goods and services in place of manufacture (excise) or sale (State VAT) or provision of services (service tax). The GST treatment of interstate transaction would be the keystone in the GST structure and the Place of Supply of Goods and Services Rules would be most critical in deter- mining such taxability. Being intangible, the supply of services Rate (RNR) based on which the minimizing the burden on small would pose more complications. GST rates would be decided, to tax payers by increasing the But even the draft rules in this re- be between 15 – 15.5 % Thus, if threshold for GST to Rs 40 lakhs gard have not yet been finalised the Government was to charge of annual turnover. It has also and placed in the public domain. GST in a single rate, the GST rate recommended for bringing pe- • The most important percept would have been 15 to 15.5 per- troleum, alcohol, electricity and for a big tax reform is that the cent. But, given the socio eco- real estate within GST, since these draft laws and rules and the busi- nomic conditions prevailing in exclusions may lead to economic ness processes related to the new the country, India would need distortions and denial of credit taxation must be placed in public to have multiple rates of GST. for taxes paid on inputs coming domain well in advance for the Therefore, the Panel has recom- from the GST domain. The Panel benefit of intensive consultations mended a standard rate of 17 to has also recommended scrapping with all the stakeholders. The 18 percent which would be ap- of the aforesaid one percent tax. draft GST laws and rules which plicable to most of the goods and are fundamental for implemen- Coming back to my comment in a merit rate of 12 percent for the tation of GST have not yet been the beginning regarding ‘blessing goods of use by common man, finalised and placed in public do- in disguise’, it is no secret that nei- broadly speaking. Then, there main. In such a scenario, where ther the taxmen nor the taxpayer will be a much higher rate of 40 would have been the time for the have sorted out all the issues to percent for demerit goods like taxpayers to study the draft laws be ready for implementing GST. Tobacco and Cigarette, luxury diligently and gives their useful As for the taxman, the important cars and other specified luxury inputs and feedbacks before these issues that are yet to be finalised items. There will also be a very are made into laws or rules, if the are following: low rate of 2 to 6 percent for pre- GST was to be implemented from cious metals like gold, platinum, • On threshold a parameter that 1st April, 2016? The documents silver etc. Besides, there will be would decide the tax base, the relating to four business process- total exemption from GST in re- Centre is insisting on Rs 25 lakhs es viz., Registration, Payment, spect of goods for use by the poor of turnover while the State de- Filing of Returns and Refund and also which are essential in mands that of Rs 10 lakh. The claims have been placed in the other respects. The Panel has also Expert Panel has recommended public domain only in October recommended to cut down the Rs 40 lakhs. 2015, and the trade and industry list of exemptions by doing away • Further, no agreement has yet have started responding to those with excessive selection and been reached between Centre and documents. This process takes discretion. the States on the common list of time. Among other recommenda- exemptions. While the existing • The trade and industry have tions, the Panel has called for State VAT exemptions are only also started preparations for

Kaleidoscope March, 2016 27 ARTICLE implementing GST. Their preparations would gather steam after the complete contour of GST in terms of GST Laws, Rules and Procedures and the Business Processes are revealed. Administering of the GST would be supported by a robust IT infrastructure to be provided by the GST Net. It would connect the States’ databases with the Centre’s and provide the infrastructure for seamless implementation of GST. The tax payers would have to interact with the two tax authorities collecting Central GST, State GST and IGST (in case of interstate whole ERP system would need a transactions) i.e. Centre and the detailed review. The officers and GST will have a busi- concerned State. These interac- the staff would also have to be tions would be through the com- ness wide impact on the imparted internal training and mon portal to be provided by the standard process manuals would entire value chain of GST Net. Therefore, the detailed have to be set up. architecture of the GST Net – at operations viz., procure- As for the Public Sector least those relating to the tax- Undertakings (PSUs), it can be payers’ interaction through the ment, manufacturing, expected that in the GST regime, common portal must be made sales and pricing, in- PSUs will not be treated as an known to the taxpayers soon, so entity different from other in- that the taxpayers can set up their formation technology, dustries in so far as taxation is IT infrastructure for handling the supply chain and ware- concerned. Therefore, whatever front end operations. housing etc. It would be has been written aboveould w • GST will have a business wide apply equally to the PSUs. In critical for the industry impact on the entire value chain conclusion, I repeat that GST is of operations viz., procurement, to lay down the road unputdownable and it is indeed manufacturing, sales and pric- a blessing in disguise that its in- map for smooth imple- ing, information technology, troduction is delayed. All must supply chain and warehousing mentation due to the utilise the available time to make etc. It would be critical for the full preparations for implement- changes that would be industry to lay down the road ing the GST, from 1st April, 2017 map for smooth implementation brought about on intro- - provided of course the GST Bill due to the changes that would duction of GST is passed in the second phase of be brought about on introduc- Budget Session which we have tion of GST taking into account taking into account reasons to hope. several impact areas. Readiness and gearing up for the transac- several impact areas. (The author is former Chairman, tion would encompass, inter Central Board of Excise & Customs alia, initiating impact study on and he is the author of the book various business and operational by reducing ambiguities and “GST in India...” and “Customs processes to identify the tax im- unintended tax consequences. Valuation - Law & Practices”, the pact and identifying the areas As mentioned, areas requiring latest updated edition of which which require representations to change in IT systems would have will be available from the middle enable smooth implementation to be identified. Importantly, the of March, 2016).

28 KaleidOscope March, 2016 ARTICLE All in favour of Public Sector Enterprises

B. P. Mathur*

ritain which was once a Island- Why Britain Now Belongs rising, flowing into pretty well mighty industrial power to Someone Else (Verso, London, every corner of society. Band had ushered in global 2015), focuses the damage done Meek’s subject is the selling-off of industrial revolution, has today to Britain and its society by mind- public services, but he points out that become a minor player in inter- less pursuit of the policy of priva- the sea-change that has occurred in- national economy. For almost a tization, and globalization. Meek volves more than the transfer of state- century from 1850s, Britain ruled visited Russia in 1991, soon after owned businesses into corporate half the world, but post second the Soviet collapse. “Watching hands. With the stealthy encroach- world war, the Empire shrank as the vultures come to feast on ment of profit into public institu- colonies got independence - al- the carcass of the world’s largest tions and attempt to re-engineer pub- beit through peaceful means, due state-owned, planned economy,” lic institutions on a model of market to her adopting a liberal and hu- Meek writes, “I began to find the exchange has changed the character mane ideology. The Labour gov- terms to question what had been of society. He shows how, as national ernment of Clement Atlee which done by politicians, economic assets are sold, ordinary citizens are came to power in 1945, embraced theorists, lobbyists and business handed over to private tax-gatherers, a philosophy of Fabian social- people in my own country.” Early and the greatest burden of taxes shifts ism and created a welfare State. 1990s market ideology went glob- to the poorest. In the end, it is not British economy thrived and al, capturing governments not only public enterprises that have people enjoyed a high standard only in post-communist countries become private property, but cit- of living. but all over the world. Termed izens themselves. The economic philosophy em- variously as free marketism, con- Before Thatcher came to power braced by Margaret Thatcher sumer capitalism, Thatcherism, much of the economy and all of when she became Prime Minister neoliberalism, the Washington Britain’s infrastructure was in in 1979, has resulted in deindus- Consensus, it became ruling ide- State hands. In the past 35 years trialization of Britain and loss of ology all over the world. While this commonly owned economy social compact. Her policies are western countries have been and people’s portion of the island being continued to this date, by struggling with the mess left by has become private and British her successors both Conservative the financial crisis of 2008, but citizens loosing control over their and Labour. James Meek an neoliberal ideology has not been own economic destiny. Before eminent British litterateur in a abandoned – far from it. The privatization drive most of the highly perceptible book, Private tide of the market has continued steel factories, British airways,

* Dr B P Mathur has served as Deputy Comptroller & Auditor General and Director National Institute of Financial Management. He also held the post of Additional Secretary and Financial Adviser, Ministry of Steel & Mines and served on the Board of several PSUs. He holds D.Phil and D.Litt in economics and is author of two books on public enterprise management.

Kaleidoscope March, 2016 29 ARTICLE oil companies, the aircraft engine of monopoly of postal services. hungry labour, mobbing the de- makers Rolls Royce, the arms While there was huge outcry that pot gates, fighting each other for makers Royal ordnance, National shares were undersold with loss paid hours’. Grid, power station, the phone to exchequer- the workers resis- and postal services, gas supply, tance was bought over by offer- British Rail coal mines , the railways were ing them free shares- but that The privatization of British Rail, all in State hands. They have all is not the main damage done to done in 1995 when John Major been privatized. Today priva- society. While, Internet has com- was Prime Minister has been a tization has reached deep into pletely revolutionized communi- disaster. The New Labour under National Health Service (NHS), cation methodology and private Tony Blair, which came to power state schools, the prison service citizens are sending less mail, subsequently had in its election and even military. but that’s only part of the story of manifesto promised that it would The paradox of Britain’s privati- postal decline. The Postal system re-nationalize the railways but sation is that it has actually led is mostly used for bulk mail by never implemented. Privatisation to the nationalization of British large organizations who are driv- was done with different compa- infrastructure by foreign gov- ing down prices by using poorly nies owning and maintaining the ernments: with parts of former paid casual labour replacing de- tracks and trains, and entirely sep- British state firms becoming cently paid postman and the ero- arate companies actually running properties of the government sion of daily deliveries. Britain the service. Railtrack, a new orga- of France, Netherland, Sweden, has modeled its privatization on nization had taken over responsi- China, Singapore and Abu Dhabi. European, particularly Dutch bility for running and maintain- Thatcher had boasted that by sell- pattern which was privatized in ing tracks, bridges, signals and ing state-owned companies she 1989. The winners of Holland’s tunnels. Due to its incompetence, would bring industrial democracy privatization were the big orga- Railtrack went bankrupt and its in Britain and most of the British nizations who bulk mailed while responsibility was taken over by households will hold shares in everyone else was looser. A few government owned Network the companies. But this has not hundred giant firms who want Rail- virtually re-nationalising it. happened. Before Thatcher 40 to send bursts of millions of let- One of the main justification for percent of the shares of British ters and catalogues every few rail privatization was to run high companies were held by individ- days are competing for the same speed trains and upgrade the 690 ual, but by 2013 it had slumped to set of postal workers with mil- mile WCML (West Coast Main under 12. Private Island examines lions of people who want to send Line) network of route between six big privatisations: the postal Christmas cards, occasional let- London and Glasgow, which con- service, the railways, water, so- ters and documents that need nected it to key cities of Liverpool, cial housing, electricity supply signature. In this competition, Manchester and Birmingham, as and the NHS. Most of them were power lies with the few, whose government had no money to in- done when Thatcher was no lon- priority lies in cheapness, rather vest. The financial viability of the ger in power but her legacy is be- than the many whose priority is new privatized entity was justi- ing carried forward vigorously regularity and universality and in fied on the ground that it would by her successors. the bargain the postal worker suf- use new moving- block- signal- fers. Meek says that privatization ing technology,and will be able Privatised Mail of Royal mail has put competitive to raise money from the market. One of the latest institution pressure on the wages of postmen As it subsequently turned out, to be privatized is Royal mail turning low paid workers into ex- moving-block signally technolo- whose majority ownership was ploited workers and the story of gy was untested and still in draw- passed on to private players in Royal mail becomes, ‘a paradigm ing-board and even the Japanese 2013, by coalition government of how technological progress, and French who were running of Cameroon, with government privatization and a willingness bullet trains were not using it.The retaining 30 percent holding. of majority to accept minority in-house engineering wisdom The remaining shares were also poverty goes to recreate a past of engineers of British Rail, who sold in 2015 ending a 500 years phenomenon, a pool of desperate were opposing rail privatisation

30 KaleidOscope March, 2016 ARTICLE was ignored. Meek says, ‘It is a tale of incompetence, greed and delusion, driven by conviction that profit and share value is always the only true measure of success and is always worth more than the ability to understand how machines and materials will best serve human needs’. The main justification for privatization was that private rail companies would bring in capital and business expertise which would transform the sector’s performance while competition would drive efficiency and innovation. This has not happened. Today railways require billions companies making huge profit off their share-holdings and mak- of pound in government fund- at the cost of customers. Oxford ing a killing, when market con- ing, private investment has failed economist Dieter Helm com- ditions suit them. The looser are to materialize, while passengers mented that of what permitted a British customers who pay more face the highest fares and travel system which efficiently ripped for their water than they should, on some of the oldest rolling stock the customers off, while exposing with large share of their payment in Europe. Private train operating the utility companies to a risk of going to remote, unaccountable companies are net recipients of bankruptcy which has never been bodies over whom they have no public subsidy while distributing higher. Most of the water compa- control. nearly all their operating profits nies in Britain are today owned as dividends to the shareholders by foreign investors, who have Privatized Electricity of their parent companies. On the huge financial resources at their Of all the privatized utility, the whole UK rail privatisation has disposal, with complex share- case of electricity is most bizarre, been a dismal failure. holding pattern. They are mostly as the firms who generate and ‘private companies’, not even list- distribute power is controlled Privatized Water ed in stock exchange and not ac- by non-British owners and there Thatcher government privatized countable to share-holders. This exists an impregnable barrier be- water in 1989, but it continues defeats the much touted original tween these electricity companies to remain a monopoly, millions objective that privatization will and the customers they serve. As of customers have no choice,but lead to expansion of number a result of privatization, elec- to take the water from the new of small British share-holders. tricity which was produced and private entity. According to an Thames Water which holds mo- distributed by a unified Central insider, Thatcher government nopoly on London’s water supply Electricity Generating Board deliberately starved water indus- with 14 million customers has 13 (CEGB) was separated into na- try of cash to enhance the case foreign investors, many of them tional grid and power generat- for selling it off. After privatiza- institutional, with headquarters ing side and regional electricity tion, almost half the work-force spread over Australia, Canada, boards were split into twelve sep- of 11,000 lost their jobs. The new Beijing, Abu Dhabi and Holland- arate companies. Today, Britain’s water set-up virtually worked as with only one investor based power industry is overwhelm- a buy-to-let scheme, with custom- in UK- British Telecom Pension ingly a foreign-owned oligopo- ers as tenants, paying water bills Fund, with 13 percent share- ly- with French EDF, controlling as rent .While a regulator of what holding. The investors make their a substantial portion of electric- was created to regulate price, money, not so much through ity generation and distributional it couldn’t prevent privatized dividend income, as by selling network. As EDF is a French

Kaleidoscope March, 2016 31 ARTICLE government controlled compa- an act of privatization of taxation, Millions of pounds is handed ny, insulated from competition and takes no account of people’s over to private clinics to run spe- at home and access to cheaper earnings and the poorer you are, cialists clinic that would treat money, it undermines the very the higher your tax. NHS patients, in order to reduce rationale of privatization. In the waiting lists for procedures like course of 1990s , the cost of oil, gas Commercializing Health hip operations. Making artificial and coal fell, and power stations Services hips and knees, and elbows and became cheaper to run, by cutting Britain has and one of the best shoulders is today a multi-billion workers, but the wholesale price health services in the world fi- pound global business. It was in of electricity stayed the same. The nanced by government through austere conditions of state-run big private players found ways taxation. The NHS (National NHS, that the innovation of poly- to manipulate the market to keep Health Service) when it was ethylene cups, needed for total prices high. created in 1948 had three core hip replacement was pioneered After two decades of privatiza- principles. It would be univer- by surgeons and became a model tion, the British electricity system sal: everyone would get medical for the world. By putting sur- has worn out and a fifth of power treatment whenever they needed. geons on state salaries, the NHS stations running today are due It would be comprehensive, cov- freed them from dependence to close down by 2020. They are ering all forms of healthcare. And on private patients and allowed proposed to be rejiged with a mix it would be free to use, no mat- them to experiment. of gas, wind and nuclear pow- ter how much the system cost. US has a privatized health care er- coal’s role is getting reduced Aneurin Bevan, the then minis- system, which is most costly and due to environmental issues. In ter in Labour government had inefficient in the industrialized order to augment production, it observed that doctor-patient re- world. Per capita expenditure has been decided that the French lationship should be freed from is two and half times higher but EDF will build a nuclear plant at money factor, an aspect of medi- health outcomes are poorer. US Hinkley (with minority partner- cal practice distasteful to most system is in the hands of power- ship with another French compa- doctors. However, during last ful drug cartels and private insur- ny Areva and two Chinese state- twenty-five years there is a con- ance companies, who have vested owned companies) at a huge sistent programme of changing interest in keeping the cost of subsidy from government. With its character and commercial- treatment high and manipulate the abolition of CEGB , Britain has izing the NHS, both by Labour the medical profession and ex- no longer skills needed to design and Conservative governments. ploit the patient. The NHS hasn’t and build nuclear power stations. As public will strongly oppose its been privatized in any literal Expensive to build, nuclear reac- privatization and boot the gov- sense – it “has been commercial- tors aren’t profitable. The cost of ernment out of office, it is being ized and repeatedly reorganised, electricity produced will be twice done surreptitiously. A notion of with competition introduced, in as much as the average whole- profitable hospital within NHS such a way as to create a kind sale price of electricity today in and managed competition has of shadowing of an as-yet-unre- Britain. Ultimately it will be the been created. All NHS hospitals alised private health insurance customers who will have to cough are obliged to become foundation system”. Competitive pressures out this subsidy. ‘Effectively the trusts, turning them into commer- can often reduce choice. One of French and Chinese governments cial operations, able to borrow the things businesses do is merge are buying the right to tax British money, set-up joint ventures with and consolidate, as already foun- customers through their electric- private companies, merge with dation hospitals are doing. By ity bills, to use British money and other hospitals and go broke. In commercializing NHS, but prom- British sites to finance a world 2011, billion of pound of NHS ising to keep paying for it, com- showcase for unproven nuclear services, were opened up to com- petitors encourage patients to de- technology.’ According to Meek, petitive bids from private sector. mand more expensive treatment. after twenty years of privatiza- Patients with chronic condition Meek concludes that the more tion experience, one comes to the will not be given treatment, but for-profit companies become conclusion that effectively it was money to spend on treatment. involved in the NHS, the more

32 KaleidOscope March, 2016 ARTICLE public money will leak out of the incentive system, 76 percent of all The privatization policy initiated health system and place heavy bank loan in Britain go to prop- by Thatcher has fundamentally burden on national finances. erty and 64 percent of that to changed the UK housing system residential mortgages. This laid and had long-reaching effects, re- Privatised Housing the foundations for unsustainable verberating around today’s hous- Margaret Thatcher introduced levels of home ownership which ing environment and sowed the a scheme which gave tenants of contributed to the financial crash seeds of the 2008 financial crash councils and some housing as- in 2008. and created current housing sociations the legal right to buy, Meek observes that the free mar- shortage. the home they were living in, at ket in Britain is providing squalid a large discount. This was part slums, enrichment of bad land- Privatisation Lies of Thatcher’s public bad and pri- lords, the risk of people becoming Privatization has failed to demon- vate good philosophy. The houses destitute and a deep divide be- strate that private companies are were sold to the tenants at huge tween people who are reasonably more competent and efficient than discounts. The sales became an well-off and those who are poor. the State owned. Privatization has attractive deal for tenants and failed to make firms compete and give thousands of homes were sold customers choice and better services. and the policy proved immedi- Meek says that the defenders of ately popular. However, the lo- The neo-liberal model privatization speak six lies. First, cal authorities which received of development has the privately owned companies the proceeds of the sales were are structurally more effective resulted in vast inequal- restricted to spending the money. than publicly owned ones. There They were to clear off their debt ity in society, destroyed is a central flaw in private indus- first, rather than being able to the social compact and tries, their first goal is to serve spend it on building more homes. their owners and directors, rath- The effect was to reduce the diluted the concept of er than public. Second, there is council housing stock, especially welfare state painstak- the lie that privatized networks, in areas where property prices ingly built in post- world compete in free market. Some es- were high such as London and sential networks like water and the south-east of England. This war years. If India wants energy distribution are natural policy together with rising rents to develop, it should monopolies, so for them competi- and cuts to state benefits, have not become victim of tion is non-existent. The third lie, been largely responsible for to- is that shrinking the state means day’s homelessness in Britain. a defunct doctrinaire lower taxes. It simply means, that Almost half of the subsidy went ideology. Our policy shifting taxes away from progres- to the already well-paid house- makers should under- sive income-tax towards regres- holds with the largest mortgages, sive flat-fees that take little or no thereby subsidizing the increas- stand that only a strong account of people’s ability to pay. ing inequality between high- and vibrant public sector Fourth, the services are affordable income and low-income home can meet India’s vast to everyone. Due to benefit cuts owners. Housing was one of the and depressed wages for most, biggest privatization in Britain, infrastructure and capi- but for the wealthiest, services are worth pound 40 billion in the first tal intensive high-tech not affordable for people at low- twenty-five years, but the money industry requirement er end of income bracket. Fifth, was sucked out of housing- of the privatization benefits British spending cuts made by govern- and therefore the State firms trying to compete abroad. ment three-quarter came from should create a support- The continuing transfer of own- housing. Due to imbalance in ive environment for it to ership of British water,energy supply and demand the housing and transport networks overseas, prices sky-rocketed three times, grow and flourish. results in loss of skilled design, upto 2008 crash. Due to peculiar engineering and administrative

Kaleidoscope March, 2016 33 ARTICLE jobs to other countries. Sixth, the element of dynamism and vigour has a chequered and controver- cultural destruction involved in in the economy. The efficiency of sial past and can be divided into privatization doesn’t matter as public enterprises improved by three phases. In the First Phase people don’t care who owns na- placing them under the discipline - 1991-91- 1999-2000 minority tional services. It does matter. of the market and were able to share-holding of some PSUs were Most British citizens are not hap- withstand domestic and interna- offloaded and some enterprises py with what is happening. tional competition. However, un- were disinvested through cross- Free market economy has been less properly regulated free-mar- purchases by PSUs themselves or creating vast disparity in income ket ideology can play havoc with by public sector financial institu- and wealth as has been the expe- the economy. The ideology of tions but majority share-holding rience of USA, Britain and other unregulated freemarkets reached remained with the government. Western countries during last its zenith in USA, UK and other In the Second Phase- January three decades. Thomas Piketty a developed countries from 1980’s 2000-May 2004 the privatization young French economist who has onwards, when Ronald Regan of PSUs, in real sense, can be authored widely acclaimed book in USA and Margaret Thatcher said to have commenced when Capital in Twenty-first Century, in UK, heading their respective NDA government was in power. observes that market economy governments,promoted it vigor- Majority control of large number based on private property con- ously. The philosophy derived its of enterprises such as Modern tains powerful forces which inspiration from Chicago school, Foods (MFIL), BALCO, CMC, threaten democratic societies whose chief protagonist has been HTL, VSNL, PPL, ITDC, HCI, and the value of social justice on Nobel Prize winner economist HZL, IPCL was passed on to pri- which they are based. Meek does Milton Friedman. Known as neo- vate players. Privatization was not call for wholesale renational- liberal model of economic devel- done through strategic sale route, ization along mid- twentieth cen- opment, it was forcefully advo- which allowed management tury lines and return to the 1970s cated by World Bank, IMF and control to pass through private or the Sovietisation of Britain. He WTO, who used their economic placement, enabling monopoly is not against private enterprise clout to influence policies in de- industrial houses to acquire con- as such. He is simply question- veloping countries like India. The trol over valuable national assets. ing the prevailing economic or- global economic meltdown of Thus Sterlite Group acquired thodoxy that wholesale privati- 2008,has shown the hollowness BALCO and HZL; Tatas acquired zation is the only alternative. He of this ideology. In USA billions VSNL and CMC (via TCS) and makes a powerful case that pub- of dollars of public money was Reliance acquired IPCL, com- lic services- services provided for poured in banks, financial institu- manding 80 percent share over common good or what may be tions and private companies like the country’s petro-chemical mar- called ‘universal network’, which General Motors to prevent them ket. In the Third Phase when UPI are essential to each citizen and from collapse. Several European & II Governments were in power which must be available to all, economies such as Greece, Italy, (2004- 2014) there was a shift in can only be provided by the State. Spain and Portugal are today policy in the sense that profit facing severe economic crisis, due making PSUs were not priva- India’s Privatisation to huge debt accumulated conse- tized and majority shareholding, The British experience offers valu- quent on their blind faith in free- remained in government’s hand. able lessons to us. India launched market orthodoxy. Nevertheless, government start- a New Economic Policy of 1991, In India successive governments ed policy of divesting portfolios which envisaged deregulation, both NDA and UPA are adhering of profit making companies- and liberalization and privatisation to a free-market economic ideol- shares of most navratnas and mini- of the economy.The new policy ogy and are pursuing a policy ratna companies have been disin- was greatly influenced by the pre- of disinvestment and privatiza- vested. The BJP led NDA which vailing economic ideology in the tion without realizing its peril- came to power in May 2014, has- West, known as free market econ- ous effect on national economy. not only continued the policy of omy or capitalism. The new poli- The privatisation of public sec- previous government but has cy no doubt helped in bringing an tor undertakings (PSUs) in India accelerated the pace. During

34 KaleidOscope March, 2016 ARTICLE

2014-15 government earned Rs 26,350 cr from disinvestment of shares of profit making PSUs. In the budget of 2015-16, a provision of Rs 41,000 cr as disinvestment receipts has been made and an additional Rs 28,500 from strategic sale. Over years shares of India’s most prized and profitable companies such as ONGC, SAIL, NALCO, NTPC, BHEL have been sold. There is no sound economic logic to sell share of profitable PSUs in core sector of the economy. Selling shares to disparate shareholders contributes to de- technological obsolescence and to private parties and a high grade stabilizing the management of other infirmities, cannot compete coal field allocated to NTPC was PSUs. Between 2001-2002 and and it is difficult to nurse them deallocated and handed over 2014-15,Government has gar- back to health. Sick industries to Reliance’s Sasan Ultra Mega nered Rs 1,61,200 cr as proceeds should have been be the first can- Power. Many of these cases have of disinvestment. The money didates for privatization and if been highlighted in CAGs Audit should have been used for capi- there are no takers they should Reports, media, NGOs and public tal investment of PSUs and be liquidated after taking care of spirited men. workers interest. in setting up new green-field Lately the concept of PPPs (pub- high-tech projects such as chip- With the commencement of liber- lic- private- partnership) is be- manufacturing and solar energy. alized economic policy, a policy ing waved as the magic wand Instead the proceeds of disinvest- environment has been created to address massive deficit in in- ment have been used for bur- under which PSUs are squeezed, frastructure sector- roads, ports, geoning revenue expenditure of their assets stripped and they railways, airports and so on. This the government and meeting its were being slowly bled to death. shifting of responsibility from huge budgetary deficit. This vio- Merging of Air India with Indian ‘public’ to ‘private’ takes place lates all canons of prudent fiscal Airlines, burdening it with huge at highly advantageous term to management and tantamounts purchase of aircraft and passing private operators, while the na- to selling family silver to pay for on its profitable routes to private tional interest suffers. V Sridhar grocers bill. airlines, both domestic and inter- observes in Frontline (February 5, On the other hand Government national, has spelled its death. 2016) that, ‘ PPS are nothing but The public private partnership is stuck with large number of privatization by other means’, sick and chronically loss mak- at Indira Gandhi Airport, has re- and the march of private capi- ing enterprises. Presently (March sulted in huge financial benefit to tal is camouflaged ‘in the garb 2014) there are 58 operating the private player GMR Group, of furthering public interest and sick enterprises whose accumu- and virtual ouster of Airport welfare’. lated losses are of the order of Authority of India from its opera- Rs 67,000 cr, as per definition of tions. Several lucrative oil fields The story that has emerged BRPSE (Board for Reconstruction have been passed on to private during last two decades of of Public Sector Enterprises). A players, jeopardizing the inter- Government’s policy towards large number of these industries est of ONGC and Government of public enterprise can be summed are taken over units from private India. A number of coal blocks, up as, ‘privatization of profits sector and incapable of revival. where work had already begun and nationalization of losses’, Similarly several industries set by CIL were dereserved from to quote eminent economist J K up in 1960s/ 1970s suffer from Coal India, for captive allocation Gailbraith’s epigram.

Kaleidoscope March, 2016 35 ARTICLE

Industrialization- State an recent years and State capitalism be the best option in some cases; Active Player is successful in producing nation- but reforming the public sector, The history of industrialization al champions that can compete instead, may be a better choice world over, shows that it is only globally. in other cases. We advocate a through power of the State, that healthy awareness of the limits of countries have developed their Need for a Pragmatic privatization, rather than uncon- industrial prowess. Germany Policy ditional approval or rejection. To in 1870s, USA in late nineteenth Prime Minster Shri Modi has giv- achieve the best of both worlds, and early twentieth century, en a call to make India a manufac- we need strong private enter- Japan in 1950s, South Korea sub- turing hub. But for this we need prise and capable public agencies working together. sequently and China currently, a supportive policy framework. became global industrial power Government must be clear about Two Harvard academicians Aldo through State’s active participa- fundamental issue of policy re- Musacchio and Sergio Lazzarni in tion. Distinguished scholar Noam garding role of private and pub- their new book Reinventing State Chomsky observes that, “there lic sector in country’s industrial Capitalism, point out that follow- is not a single case of record development. It is only a strong ing privatization wave of 1980s in history of any country that public sector that can meet India’s and 1990s, the State-owned- has developed through adher- vast unfulfilled infrastructure enterprises have reinvented them- ence to ‘free-market’ principles. and capital intensive industry selves and are thriving. They are Certainly not the United States.” needs and withstand competition listed in stock-exchange, run by professional managers and given Cambridge economist Ha- Joon with foreign multinationals, in more financial autonomy and Chung explains that free mar- a highly competitive globalized have overcome classic problems ket and free-trade policies have world. Surely no government, of State ownership. To make our rarely worked and all of today’s who wants to make India an public sector companies national rich countries have used protec- Industrial power, should reduce champions we should give them tionism, subsidies and other State the role of ONGC, Coal India, more autonomy, professionalize supported measures to promote SAIL, NTPC and other public their management and free them industrialization. enterprises in areas such as oil from political and bureaucratic exploration, coal mining, steel Today in emerging economies interference. production and electricity gen- such as China, Russi a, Brazil, and eration. Private sector, no doubt The British experience tells us that a middle-east the biggest and most has an important role to play in giant industrial power has been re- successful companies are State nation’s development strategy duced as a minor player in interna- owned, such as Russia’s Gazprom and the two sectors must have co- tional arena due to mindless pursuit (natural gas), China Mobile, Saudi operative relationship and work of a policy of privatization and glo- Basic Industries Corporation ( in tandem, to meet nation’s huge balization. The neo-liberal model of Chemical), Dubai Ports, Emirates unfulfilled demand. development has resulted in vast in- Airlines. 13 biggest oil compa- equality in society, destroyed the so- Leading Think Tank, the Club of nies which between them con- cial compact and diluted the concept trol three-fourth’s of the world’s Rome commissioned a study by of welfare state painstakingly built in oil reserves are all state-owned. eminent experts, regarding expe- post- world war years. If India wants State owned enterprises have rience of more than two decades to develop, it should not become vic- major presence in France and of privatization and came to the tim of a defunct doctrinaire ideology. Norway. China has changed the following conclusion (Limits to Our policy makers should under- global manufacturing map by Privatisation, Earthscan, 2005): stand that only a strong and vibrant actively promoting State-owned Privatization is not an end in public sector can meet India’s vast companies. The Economist ( Jan itself. Privatization should be infrastructure and capital intensive 21-27th 2012) notes that emerging treated as a means of increasing high-tech industry requirement and markets State-owned enterprises efficiency and not as a way of re- therefore the State should create a constitutes one of the biggest ducing or undermining the role supportive environment for it to changes in the world economy in of the state. Privatization may grow and flourish.

36 KaleidOscope March, 2016 CVC Inaugurates SCOPE International HR Summit 2016

Mr. K.V. Chowdary, Central Vigilance Commissioner addressing the SCOPE International HR Summit, 2016. Seen on the dais (L to R) Ms. Veena Swarup, Director (HR), EIL, Dr. U.D. Choubey, Director General, SCOPE, Mr. Ameising Luikham, IAS, Secretary, DPE, Mr. R.G. Rajan, Chairman, SCOPE & CMD, RCF, Dr. Sher Verick, Dy. Director, ILO, Dr. Phyllida Travis, Director, DOHSD, WHO and Mr. D. Bandyopadhyay, Director (HR), BHEL.

SCOPE and International Labour Organization (ILO) jointly organized the SCOPE International HR Summit 2016 on the theme “Reinventing HR: Breaking the Mould Globally” on 4th-5th Feb- ruary 2016 at SCOPE Convention Centre. Mr. K.V. Chowdary, Central Vigilance Commissioner inaugurated the Summit and released the Special Issue of Kaleidoscope journal on HR. Mr. Ameising Luikham, IAS, Secretary, Department of Public Enterprises delivered the Keynote Ad- dress. Mr. R.G. Rajan, Chairman, SCOPE & CMD, RCF, Dr. U.D. Choubey, Director General, SCOPE, Ms. Veena Swarup, Director (HR), EIL, Dr. Sher Verick, Senior Economist, ILO South Asia, and Dr. Phyllida Travis, Director, Department of Health Systems Development, WHO, Regional Office for South-East Asia addressed the inauguration session. CVC Mr. Chowdary also presented Gold Trophies to the winning PSEs of the HR Case Study Contest and inaugurated the exhibition. Eminent speakers in various sessions included Dr. Madhukar Gupta, IAS, Additional Secretary, DPE, Dr. M.B. Athreya, renowned Management Consultant, Mr. Ashok Kumar Pavadia, Additional Secretary, Ministry of Home Affairs, Dr. Sher Verick, Dy. Director, ILO, Mr. Ravindra Peiris, Senior Specialist, ILO, Mr. Suvojoy Sengupta, Partner, McKinsey & Company, Mr. Anil Sachdev, Founder & CEO, Grow Talent Co. Ltd, Mr. Prabhat Singh, MD &CEO, Petronet LNG Ltd, Dr. A.K. Balyan, CEO, Reliance Group, (Oil & Gas Business), Mr. P.R. Ramesh, Chairman, Deloitte India, Mr. Biswajit Roy, Director (HR), OIL, Mr. M. Ravindran, Director (HR), GAIL, Mr. D.D. Misra, Director (HR), ONGC, Mr. Rajeev Bhardwaj, Director (HR), SECI, Mr. P.K. Joshi, Director (HR), HPCL, Mr. D.K. Hota, Director (HR), BEML, Mr. D. Bandyopadhyay, Director (HR), BHEL, etc.

Kaleidoscope March, 2016 37 SCOPE News

From (L to R) Mr. Ameising Luikham, IAS, Secretary, DPE, Mr. R.G. Rajan, Chairman, SCOPE & CMD, RCF and Dr. U.D. Choubey, Director General, SCOPE addressing the SCOPE International HR Summit.

naugurating the summit, Mr. it is a priority for Public Sector responsible organization. K.V. Chowdary, CVC said any Enterprises. The inaugural session was fol- Iorganization is as good and Mr. R. G. Rajan, Chairman, lowed by a plenary session on recognized by its brand culture. SCOPE and CMD, RCF Ltd., told Strategy to Reality- HR as the le- HR department holds the key to that HR needs to innovate today ver to Drive Change and two con- build up the organizational cul- to compete at global level. He was current sessions and the themes of ture. Cultivate Organizational of the opinion that a company the sessions were- Transforming Ethics and Values so that one that invests in people has good Culture – Driving Success and could easily recognize the orga- future. Performance Management - nization by simply looking at its Dr. U. D. Choubey, Director Exploring N ew Horizons employees. The way employee General SCOPE, said Talent A talk on Wellness was fol- manages himself in and out of the Management and present attri- lowed by a HR Directors panel system is crucial and the respon- tion rate are two major challeng- discussion on Reimagining HR: sibility falls on HR. He appreciat- es in front of HR. The challenge Building Readiness. The session ed SCOPE’s effort for organizing is to retain the talent and manage focused on exploring innovative the summit. the work diversity, Succession solutions and best practices that Expressing concerns over the skill Planning and update the skill have been implemented across development of the country, Mr. of employees. He emphasized organizations. Ameising Luikham said India the greatest need of transpar- Day 2 began with a plenary ses- needs a lot in skill training and ent, ethical, accountable and sion on Unleashing Technology– Optimizing HR. The Plenary session also included a session on Skill development: Investing in the Future which focused on defining the need and technique for agile skill development. The concurrent session was held on Building Capability–A Force Multiplier. The focus of the session was on exploring newer techniques in learning and development, like ‘gamification’, ‘business simulation’ and other Mr. K. V. Chowdary, CVC inaugurating the exhibition. Also seen are Mr. R. G. Rajan, innovative techniques which Chairman, SCOPE & CMD, RCF Ltd., Dr. U. D. Choubey, DG, SCOPE and others. are facilitating and multiplying

38 KaleidOscope March, 2016 SCOPE News

CVC Shri K. V. Chowdary presents Gold Trophies to the winning PSEs of HR Case Study Contest during SCOPE International HR Summit 2016

capability building in organi- empowered voice, Virtual rela- and development, People and zations today. It was followed tionships. Rashtriya Chemicals & Business Strategy. by a session on, HR Analytics– Fertilizers Team shared their ex- The summit had 12 sessions and Enormous Data to Effective perience on Participatory Gender they were designed very thought- Decisions and a panel discus- Audit. fully. It was attended by around sion on Exploring expectations: A CEOs Panel Discussion was 200 participants both from public Bridging the gap in Employer also held on, Leading in the and private sector organizations –Employee Relationship. The new world of work: A CEO’s from India and outside including prime focus of the sessions was, perspective. The prime ar- senior representatives from ILO Challenges of the Millennial eas covered were, Innovative and around 50 speakers shared workforce, Employees with an techniques at talent sourcing their views.

DG, SCOPE at the National Leadership Summit 2016

Dr. U. D. Choubey, Director General, SCOPE addressing the management students on leadership development during the National Leadership Summit 2016 organized by Sri Sharada Institute of Indian Management Re- search.

Kaleidoscope March, 2016 39 SCOPE News SCOPE Excellence Awards 2013-14 Announced

he SCOPE Jury under the chairmanship of Justice TR.C. Lahoti, former Chief Justice of India met on 29th February 2016 and decided the winners of the “SCOPE Awards for Excellence & Outstanding Contribution to the Public Sector Management” for the year 2013- 14. Dr. U.D. Choubey, Director General, SCOPE announced the names of the Awardees immediately after the Jury meeting. The SCOPE Awards have been recognized as one of the most Justice R.C. Lahoti (centre), chairing the SCOPE Excellence Awards Jury Meeting prestigious awards in national with Mr. Moosa Raza, Dr. M. B. Athreya, Mr. C. Phunsog, Mr. Arvind Pande, and economy. Dr. U. D. Choubey, members of the jury. The panel of Jury comprises persons of eminence. These included Padma Bhushan Mr. Moosa Raza, former Secretary Institutional Category II Individual Leadership (Steel), Padma Bhushan Dr. M. B. Award (Miniratna I &II) Category II Award Athreya, renowned Management SJVN Limited (Miniratna I & II) Consultant, Mr. C. Phunsog, for- THDC India Limited Mr. R.K. Gupta mer Chairman, Public Enterprises CMD, WAPCOS Limited Selection Board, Mr. Arvind Institutional Category Pande, former Chairman, SAIL III Award (Other Profit Special Institutional and Dr. U.D. Choubey, Director Making PSEs) (Turnaround) Category General, SCOPE. Indian Renewable Energy Deve- Award BEML Limited The winners of SCOPE Awards lopment Agency Ltd for Excellence & Outstanding NTPC-SAIL Power Company Contribution to the Public Sector Limited (Commendation Outstanding Woman Management 2013-14 are: Certificate) Manager in PSEs Award Ms. Vartika Shukla, Institutional Category Individual Leadership Executive Director I Award (Maharatna/ Category I Award (R&D), Engineers India Navratna PSEs) (Maharatna/Navratna) Limited Oil & Natural Mr. S. Varadarajan, CMD, Bharat The entire performance Gas Corporation Ltd Petroleum Corporation Ltd evaluation of entries which Ms. Nishi Vasudeva, CMD, were received in large Hindustan Petroleum numbers from PSEs, was made Corporation Ltd by reputed Consultant, Deloitte.

40 KaleidOscope March, 2016 SCOPE News CVC Interacts with CEOs of PSEs Releases SCOPE Compendium on Make in India, Digital India, Skill India and Swachh Bharat

Mr. K. V. Chowdary, Chief Vigilance Commissioner (centre), releasing SCOPE Compendium. Standing on his left are, Mr. R. G. Rajan, Chairman, SCOPE & CMD, RCF and Mr. Nirmal Sinha, Vice Chairman, SCOPE & CMD, HHEC and on his right, Dr. U. D. Choubey, DG, SCOPE and Mr. P. C. Vaish, CMD, NTC

COPE organised an inter- preventive in nature to bring of PSEs to CVC. Public Sector active meeting of Central awareness and promote adher- Enterprises have been following SVigilance Commissioner ence to ethics. He also high- high standards of accountability Mr. K. V. Chowdary with lighted the best practices such and transparency. He mentioned CMDs, Directors of PSEs on 22nd as e-procurement, e-tendering, PSEs are subject to a multiple February, 2016 at SCOPE prem- e-payment etc followed by PSEs. and heterogeneous regulatory ises. Mr. K. V. Chowdary, Chief In his welcome address Dr. U. D. mechanism which needs to be Vigilance Commissioner in his Choubey, DG, SCOPE said that the converged. Giving an outline of address advised the PSEs to lay interactive meeting was organ- working the PSEs, investments down clear processes and guide- ised to highlight vigilance issues and the share of profit and taxes lines in manuals to promote transparency and efficiency. He added that CVC has been taking several steps to improve the vigilance management without com- promising on the working of the enterprises. Mr. Chowdary also released SCOPE’s Compendium on PSEs contribution towards Make in India, Digital India, Skill India and Swachh Bharat. In his opening address, Mr. R. G. Rajan, Chairman, SCOPE and CMD, RCF said vigilance is an integral part of management function and its role should be Mr. K. V. Chowdary, CVC addressing the CEOs of PSEs. Contd... 42

Kaleidoscope March, 2016 41 SCOPE News DPE & SCOPE Organizes Workshop on CSR in SCOPE Premises

Mr. Ameising Luikham, IAS, Secretary, DPE, Dr. Madhukar Gupta, IAS, Additional Secretary, DPE, Dr. U.D. Choubey, Director General, SCOPE and Ms. Sibani Swain, Economic Advisor, Ministry of Corporate Affairs during Workshop on CSR of CPSEs.

hile inaugurat- have to work within the ambit patent. Dr. Choubey said if we are ing the Workshop of Companies Act 2013 and the able to enhance the expectations Won Corporate Social Guidelines of the Government to of the society, we can claim the Responsibility of CPSEs, at undertake CSR activity. credit. He also urged for recogni- SCOPE Convention Centre, New tion and rewarding of the PSEs Dr. U.D. Choubey, Director Delhi on 8th February, 2016, for excellent work and provide General, SCOPE highlighted the Mr. Ameising Luikham, IAS, some fiscal incentives for fund Secretary, Department of Public excellent work done by PSEs for utilized on CSR. corporate social sector which is a Enterprises (DPE) asked for Dr. Madhukar Gupta, IAS, more vigorous efforts towards matter of paramount importance Additional Secretary, DPE and a utilization of Corporate Social providing intangible benefits galaxy of CPSEs representatives Responsibility (CSR) funds in ju- to corporate sector, sometimes at top level participated in the dicious manner. He told that PSEs even better than technology and Workshop.

Contd. from P-4 paid by the PEs, he highlighted The presentation covered vari- fourth his comments/observa- the transparency, accountability ous initiatives taken by the CVC tions on them. He spoke at length and objective in the decision mak- in the realm of vigilance on all the issues raised in the ing process [with ingrained ethi- administration. Chairman, NTC meeting. The presentation was cal values] being followed by the brought out the following six is- followed by interaction between PSEs, notwithstanding the checks sues of paramount importance CVC and CMDs and Directors being exercised by the various which are, Vigilance Angle, of PSEs. His comments on the Parliamentary Committees, exter- Appointment of (CVOs) Chief points raised were clear, specific, nal & internal audits etc. of PSEs Vigilance Officer/Vigilance ex- and liberal. in the working of PSEs. ecutives, Complaints, Vigilance Mr. Nirmal Sinha, Vice Chairman, Mr. P. C. Vaish, CMD, National cases, Vigilance clearance and SCOPE and CMD, HHEC pro- Textile Corporation made a Tendering System. posed a vote of thanks. About 75 presentation on the common Mr. Chowdary took up all the CEOs/Director and CVOs of PSEs issues of Vigilance faced by PSEs. issues one by one and put participated in the session.

42 KaleidOscope March, 2016 SCOPE News SCOPE for a Well Documented Ownership Policy of PSEs

COPE organized the 13th Program on Corporate SGovernance under the ae- gis of Department of Public Enterprises (DPE) on 18th February, 2016 at SCOPE Convention Centre, New Delhi. The theme of the Program was “Effective Boards for Sustainable Competitiveness with focus on Independent Directors”.

Mr. A. Luikham, IAS, Secretary, Mr. A. Luikham, IAS, Secretary, DPE, Mr. R. G. Rajan, Chairman, SCOPE & CMD, Department of Public Enterprises RCF, Dr. U.D. Choubey, Director General, SCOPE, Prof. YRK Reddy and Mr. inaugurated the Programme while Peter Greenwood, Lead Resource Persons during 13th Training Programme on Mr. R. G. Rajan, Chairman, SCOPE Corporate Governance. & CMD, RCF Ltd delivered the Presidential Address. Dr. U. D. and bring in innovation by confer- framework. He emphasized the Choubey, Director General, SCOPE ring Maharatna, Navratnas and need to accelerate the appoint- delivered the Welcome Address Miniratna status. Shri Luikham ment of Independent Directors while the Program Perspectives said Independent Directors bring and Women Directors on Boards were shared by Prof. YRK Reddy, in new perspective and new proof PSEs. Mr. Rajan also urged for Lead Resource Person. Mr. A. cess of thinking and Government early implementation of Roongta Luikham, IAS, Secretary, DPE in is making all efforts in improving Committee recommendations to help PSEs perform optimally. his Inaugural Address compli- the structure and functioning of mented SCOPE for organizing this Boards across PSEs. While welcoming the gathering, program and said that many more Dr. U. D. Choubey, Director Mr. R. G. Rajan, Chairman, SCOPE such programs should be held for General, SCOPE informed that in his Presidential Address said effective functioning of PSEs. He Corporate Governance program is informed that Government has that Independent Directors have one of the most sought after pro- delegated enhanced autonomy to come to play very important role grams of SCOPE. He said that there PSEs to form JVs, raise resources in the Corporate Governance is a paradigm shift in the outlook towards Corporate Governance around the world adding that there is need for a well documented Ownership Policy for good governance. Public Sector is governed by heterogeneous regulatory mechanism and there is need for conver- gence of accountability system so as to hasten decision making process. He also emphasized the need of level playing field for PSEs. The Program is being attended by large number of CEOs, Directors and Senior Executives of public sector enterprises.

Kaleidoscope March, 2016 43 SCOPE News

SCOPE Organizes 5th National Workshop on “ Strategies for Improving Occupational Safety & Health in CPSEs”

SCOPE in collaboration with Directorate General Factory Advice Service & Labour In- stitute (DGFASLI), Ministry of Labour and Employment, National Disaster Manage- ment Authority(NDMA), and International Labour Or- ganization (ILO) organized 5th National Workshop on Dr. D. N. Sharma, Member, NDMA, Mr. P. P. Mitra, Principal Advisor, MoLE, Mr. “Strategies for Improving Oc- Ravindra Peiris, Sr. Specialist (Employers Activities), ILO, Dr. Avneesh Singh, DG, cupational Safety & Health DGFASLI, Mr. R. G. Rajan, Chairman, SCOPE & CMD, RCF, and Dr. U.D. Choubey, th in CPSEs”, on December 15 – Director General, SCOPE during 5 National Workshop on “Strategies for Improving OS&H in CPSEs”. 16, 2015, at SCOPE Conven- tion Centre, at New Delhi. Dr. D. N. Sharma, Member, National Disaster Management Author- ity (NDMA) inaugurated the Workshop. Mr. P. P. Mitra, Principal Advisor, Ministry of Labour & Employment, delivered the Keynote Address. Mr. R.G. Rajan, Chairman, SCOPE, delivered the Special Address. Dr. U. D. Choubey, DG, SCOPE, Mr. Ravindra Peiris, Sr. Specialist (Employers Activities), ILO and Dr. Avneesh Singh, DG, DGFASLI also addressed the participants in the Inau- gural Session of the Workshop. Mr. B. B. Chakraborty, Program Director explained the Program Perspective. Dr. H.K.Chopra, Vice Chairman, SCOPE Health Committee, delivered Valedictory Ad- dress, in the Concluding Session.

hile Inaugurating the Mr. P. P. Mitra, mentioned that • Safety / security dynamic basis Workshop, Dr. D.N. the Govt. of India is codifying amendment to be done WSharma, compliment- 44 labour laws into four labour • Safety/ Productivity recom- ed SCOPE, for conducting knowl- codes, to make compliance easy. mendations for industries edge sharing program on a peri- He emphasized the need to have • Work is to be carried out in odic basis, to promote excellence a converged database to devise Consultative manner in the field of Safety, Health, and occupational health policy of the Environment. He mentioned that government. Training is an inte- He said that it is observed OH is- along with fast economic growth gral part of the safety culture, he sues are being neglected and we of India, the risk of accidents due added. have to develop the Data base for to Toxic/ Hazardous Chemicals He urged that Employers to en- Industrial OH centre. Mr. R.G. are also increasing. sure compliance of following: Rajan, Chairman, SCOPE & CMD,

44 KaleidOscope March, 2016 SCOPE News

Rashtriya Chemicals & Fertilizers unit heads about lessons learnt, He mentioned that due to rapid Ltd in his Special Address said which could be utilized for OSH increase in the chemicals con- Occupational Safety and Health Performance Improvement in sumption in the industries the measures increases Productivity their respective units. hazards has increased manifolds. and Performance and contributes Mr. Ravindra Peiris, Sr. Specialist During his session on “Chemical in building a culture of Health & (Employers’ Activities), ILO in Industrial Disaster Management Safety. He advised to adopt root his address said the Government, Guidelines overview and Way cause analysis technique for im- Trade Unions and Employers forward in Industries, Mr. Amit proving HSE/OSH performance should work together to build a Tuteja, Consultant NDMA, in the organization. He men- culture of Occupational Safety made elaborate presentation on tioned that general awareness in and Health. He complemented the subject and clarified doubts OSH is gradually increasing in SCOPE, for organizing this im- of participants. The Session on the CPSEs. He elaborated that portant Workshop, in collabo- “Developing Safety Culture in for process safety improvement ration with ILO and others to CPSEs”, was Chaired by Dr. through enhancing knowledge is enhance knowledge in the area Avneesh Singh, DG, DGFASLI must. of OS&H amongst its member and Co- Chaired by Mr. S.P.Garg, Dr. U.D. Choubey, DG, SCOPE CPSEs for improving the world GM(HSE), GAIL. Presentation in his Address said Occupational of work environment and safety in this session was made on “Developing Safety Culture in Safety and Health is an integral of life improvement through vari- Organisations through Behaviour part of the Public Sector manage- ous efforts. ment, who employ about 14 lakh Based Safety”, by Mr. S.Kalkal, employees. He informed that Dr. Avneesh Singh, said OSH Sr. Manager(HSE), GAIL and Public Sector has well structured is gaining importance in re- “Noise Induced Health Risk safety departments and are better cent past all over the world. He Assessment for Gas Compressor placed than others to overcome mentioned that DGFASLI is also Station of Oil India Limited”, hazardous accidents. While cit- working on ratification of ILO by Mr. A.K.Acharya, GM(HSE), ing an ILO study, he said occupa- convention 155/187. Labor Codes OIL. Mr. H.Viswanathan, DDG, tional accidents and work related are being made in the area of DGFASLI, made presentation on diseases cause over 2.3 million fa- OSH to reduce Occupational dis- Identification of Hazards/ Risk talities and adversely erode 4% of eases amongst contract labor. For Assessment in Industries. He in- world GDP (2.8 trillion dollar) in Knowledge/ Skill enhancement in teracted with participants and terms of capital owing to occupa- OS&H area, DGFASLI has taken 2 clarified all the queries. major initiatives: tional accidents and work related During his session on “Safety diseases. He mentioned that there • MOU signing with DGUF, by Heart: Engagement of Em- is need for research and analysis Germany. ployees”, Mr. B.B. Cha-kraborty of disaster and learn lesson for fu- • Through its 7 Regional Insti- , while addressing the partici- ture from the above data. tutes, in all over India, it is making pants, said that for safety cul- He emphasized on Prevention OS&H campaign for 1 full year ture development there has to Measures for Occupational for making India with least ac- be 100% shared value at the top Health issues and need for build- cidents and better Occupational level. It could be little lower per- ing up CPSEs data base on Safety Health Performance. centage as we come down the aspects. He mentioned alarming ladder. During his session on situation in industrial accidents is During his session on “Disaster “Identifying Chemicals with continuing e.g. in China & British Management Initiatives in Potentials to cause Illness in the Petroleum, in which 45 billion India with focus on Medical work place”, Dr. T.K.Joshi while dollar loss was reported. He Preparedness for Chemical Ind- addressing the participant said also highlighted the rising trend ustries”, Dr. Muzaffar Ah-amd, that it is a common feeling glob- of Occupational Stress related Former Member NDMA, while ally that India is not serious about medical hazards in Industry. He addressing the participants Safety, he advised that safety/OH suggested that participants mentioned that this is an impor- subject should be introduce in the should go back and report their tant Capacity Building event. School education.

Kaleidoscope March, 2016 45 SCOPE News DG, SCOPE Addresses India Energy Week 2016

r. U.D. Choubey, Director General, SCOPE was Dinvited to chair the Technical Session on “India’s Gas Markets – Looking Ahead” of India Energy Week, jointly organized by Argus and ElitePlus on 8th-10th March 2016 in New Delhi. While chairing the session, Dr. U. D. Choubey, DG, SCOPE said that there is need of complete overhaul and reform in the oil and gas sector includ- Dr. U.D. Choubey, Director General, SCOPE addressing the India Energy Week ing review and revision of 2016. New Exploration and Licensing Policy (NELP) for enhance- so that rural population get the investment (FDI) in oil and gas, oil ment of domestic production of benefit of this national/ natu- and gas production, lack of crude and natural gas. He empha- ral resource. Dr. Choubey ex- interest by foreign bidders in sized on taking the natural gas pressed serious concern on last three rounds of bidding un- to rural areas of the country gradual decline in foreign direct der NELP.

The session on “Adoption of Life Industry Demands”, was dealt by in concluding session, Dr. Style for Healthy Living“ was Dr. T.Pachal, AGM(OHS), Bokaro H.K.Chopra mentioned that we dealt by Dr. Anil Chaturvedi, Sr. Steel Plant, SAIL. Many queries should Optimize our activities / Consultant, Pushpawati Sing- on the subject were clarified by energy spending, so that we can hania Research Institute, Delhi. the Faculty. remain healthy for long years. He He deliberated on Occu-pational The Session on “International advised for Optimum integration Illness and Lifestyle Changes HSE Experiences was shared of mind, body, soul and environ- needed for healthy living. by Mr. Arun Mittal, DGM ment with in our self and out side. The Session on “ Performance (HSE), ONGC Videsh Limited. In his address, Mr U. K. Dikshit, Indicators: Key to prevention Session on “Approach of Risk Advisor(Programs), SCOPE, em- of Occupational Diseases”, Management for Contractor phasized the need for more involve- was dealt by Dr. M.Ahmad, Workers”, was dealt by Mr. S. R. ment of Employees & Contractors Consultant OH. Dr. Sandeep Krishnan, GM(HSSE), BPCL. Mr. for improving Occupational Safety Sharma, Sr. Mngr(HSE), IOCL A. K. Biswas, Sr. Manager(HSE), & Health conditions, by enhanc- shared IOCL OH Experiences. Shared the HSE Experiences of ing awareness, and increased open The Session was Chaired by NFL. The Session was Chaired by communication. Mr. B. B. Chakraborty, Program Mr. B. B. Chakraborty, Program Mr. A. U. Ghatak, Program Director. Session on “Managing Director. Coordinator, proposed the vote Ergonomic Problems as Indian While addressing the delegates, of thanks.

46 KaleidOscope March, 2016 SCOPE News Media Relations Top Management Conclave SCOPE Advocates Better Media Relations by PSEs

Growing Competitive environment underlines the importance of organizational positioning in the global market arena keeping in view Company’s intrinsic value system, ethos and core philosophy. Communication is imper- ative in reinforcing positive stimuli. For communication to be effective, top management Mr. A.K. Bhattacharya, Editor, Business Standard, Dr. U.D. Choubey, Director General, SCOPE, Mr. Sanjiv Singh, Director (Refineries) IOC & Executive Board and spokespersons need to Member, SCOPE, Dr. Jaishri Jethwaney, Professor (AD/PR) IIMC and Dr. Ajit Pathak, be equipped with skills that GM(CC&CSR) IOC during Media Relations Top Management Conclave. would positively represent their businesses to the stakeholders and public at large. SCOPE organized one day “Media Relations Top Management Conclave” which was inaugurated by Mr. A.K. Bhattacharya, Editor, Business Standard. Dr. U.D. Choubey, DG, SCOPE delivered Presidential Address and Mr. Sanjiv Singh, Director (Refineries) IOC & Executive Board Mem- ber, SCOPE delivered Special Address. Dr. Jaishri Jethwaney, professor (AD/PR) IIMC and Dr. Ajit Pathak, GM(CC&CSR) IOC & President PRSI gave overview of the conclave while Mr. R.K. Singhal, Chief of Corporate Affairs, SAIL welcomed the dignitaries and participants.

he Conclave held on 15th Inaugurating the conclave, Mr. make optimal use of social media January 2016 at SCOPE Ashok Bhattacharya, Editor, and connect themselves with in- TConvention Centre, was Business Standard said Indian ternal and external publics. organized with the aim to sensi- media has changed dramatically. In his Presidential Address, Dr. tize the top brass and potential Growth of social or digital media U.D. Choubey, Director General, top management personnel and has pushed the traditional media SCOPE highlighted the impor- spokespersons of PSEs about to second slot. The advantage tance of media relations and said media sociology and mind and with it is anyone can create his that reputation and brand pro- equip them with communication own channel. Advent of digital motion by public sector enterpris- skills in responding to normal sit- media, has thrown new chal- es could be the most important uation and crisis situations thus lenges to the Corporates. He said ingredient for taking competi- enhancing their media relations India Inc. is still prisoner of past tive advantage over others. He management skills. while Chief Executives should said corporate communication

Kaleidoscope March, 2016 47 SCOPE News

(from L to R) Mr. A.K. Bhattacharya, Editor, Business Standard and Mr. Sanjiv Singh, Director (Refineries) IOC & Executive Board Member, SCOPE addressing the Media Relation Conclave. executives are front ambassa- is no dearth of talent as for as PSEs In pre lunch session, Dr. S. dors of their organizations. CEOs performance is concerned but Raghava Chari, Professior II- should therefore, make a dedi- there are gaps in showcasing the MC and Mr. Anand Pradhan, cated group of persons under him same. He said PSEs need to work Associate Professor, IIMC spoke to bring the corporate visibility at in tandem with the media to make about common mistakes that national and international level an impression and media will be could be avoided for effec- and also thwart negative pub- supportive. tive TV interface. Mr. Anand licity. It would be better if CEO In his welcome address, Dr. R.K. Pradhan said press conference is directly contribute to social me- Singhal, said media has a job. If an easy way to reach out to the media and also a convincing meth- dia to share the achievements by authentic information is regu- od of attracting media attention or the company so that the same larly shared, it becomes a friend. could reach the people at large. explaining your position or clari- He cautioned that advertisement This in turn will give a better fying on certain issues. It should should never be linked with re- brand at national/global level, Dr. not be organized on trivial issue or porting. After Inaugural Session, Choubey added. just to get publicity as it is a dou- Dr. Jethwaney spoke about Media ble edged sword and may harm Complementing SCOPE for orga- Scene in India and how CPSEs can the organizers. Session on Mock nizing the Conclave, Mr. Sanjiv Leverage PR for Media mileage. Press Conference was held after Singh, Director (Refineries), IOC She said there are about 80,000 lunch. Mr. Sanjay Gupta acting and Member of SCOPE Executive newspapers, over 700 channels out CMD and Director (Operations Board said media plays a big role of which 400 are news channels. & Commercial), Konkan Railway in dissemination and analyzing While the readership of print me- Corporation Ltd addressed the the information shared. He said dia is going down, reach of digital press on a simulated scenario of generally the concern of the top media is on the rise. A new cat- a rail accident in which some pas- management is whether the infor- egory of ‘accidental opinion mak- sengers have died. In the second mation shared would be reported ers’, known as bloggers have also Mock Press Conference Mr. L.W. correctly. Sharing the programme emerged. Khongwir, Executive Director, perspective, Dr. Jaishri Jethwaney, In the next session on Crisis Bongaigaon Refinery, (IOC) Professor IIMC and Programme Communication Dr. Ajit Pathak and Mr. Sudhir Kumar, General Director said PSEs have made mas- said PSEs need to keep in mind Manager, Panipat refinery, (IOC), sive contribution, yet it is hardly that the Management of posi- addressed the press on a simulat- spoken about. Chief Executives tive Image is during crisis. ed crisis situation of kidnapping of PSEs should get out of reticent Communication needs to be sent of an executive. All other delegates mode in talking to media. immediately because if time is lost, acted as journalists posing ques- Dr. Ajit Pathak, GM (CC&CSR) it can adversely affect the image of tions related to the crisis situation. IOC and President PRSI said there the organization. Analyzing the mock press Contd ... 49

48 KaleidOscope March, 2016 SCOPE News SCOPE Observes International Women’s Day

COPE has a women strength of over 17 percent which is Smore than the general average level of women employment in public sector enterprises. On the occasion of International Women’s Day on 8th March 2016, the women employees of SCOPE met for an interactive meeting under the chairmanship of Dr. U.D. Choubey, DG, SCOPE. They were given opportunity to share their views and suggest ways and means to improve the efficiency, International Women’s Day Celebrations at SCOPE. proficiency and welfare to women employees not only in SCOPE but in all public sector enterpris- fully committed to the above in es. All women employees stand SCOPE.

Contd. from 48 conferences Dr. S. Raghava Chari, and Mr. A.K. Gupta, Director into the preparations required Mr. Anand Pradhan, and Mr. (Finance) TCIL, Mr. Piyush while appearing on–camera and Shishir Sinha, Business Editor Tewari, Director (Commercial secrets of on-screen success. Experts with ABP Business TV who were & Marketing), ITDC, Mr. A.K. observers were Dr. Raghava Chari, observers, gave suggestions and Sawant, Gr. General Manager, Mr. Anand Pradhan, Mr. Shishir tips on kinesics. In the next session NTPC(Simhadri) and Mr. S.K. Sinha, Mr. Rajeev Ranjan Jha Role Play on One on One Interview Gupta, GM(F) IOC were inter- and Mr. Ashutosh Kumar. The with the media persons was con- viewed by Mr. Shishir Sinha, of participants highly appreciated ducted. The interviews were held ABP Business TV, Mr. Rajeev in Separate Chamber while the par- Ranjan Jha of Zee Business TV the programme for its contexts, ticipants and experts observed the and Mr. Ashutosh Kumar of delivery, faculty inputs and in interview sitting in different Hall. Bloomberg TV. The session on providing hands-on-skill in media Dr. Gopal Dhawan, CMD, MECL, one-on-one Interview gave insight relations management.

Kaleidoscope March, 2016 49 50 KaleidOscope March, 2016 PSEs Ink MoU

KIOCL Sign MoU with Govt. of Karnataka KIOCL signed a Memorandum of Understanding (MoU) with the Government of Karnataka for setting up Iron Ore Beneficiation Plant of capacity 4 mtpa and Pelletzation Plant of capacity 2 mtpa in Bellary District, Karnataka State in view of the proposed Mining asset being considered by GoK.

Mr. Ashley Moore, MD, M/s.ECT, Australia (Fourth from left) and Mr. P.Selvakumar, Director (Planning & Projects), NLC Ltd., after signing the MoU for conducting a Feasibility Study for using Lignite in the iron ore purification process.

ECT. Mr. Rakesh Kumar and Mr. V.Thangapandian, Directors of NLC, Mr. Sean Kelly, Australian Counsel for Southern India, Mr. B.Manivannan, GM/CARD, NLC, Mr. P.Veerabalu, DGM/CARD, Mr. Gaurav Gupta, Commissioner (Industrial Development), NLC and senior officials participated. Govt. of Karnataka and Mr. Malay Chatterjee, CMD, KIOCL, exchanging MoU Documents. NSIC Enters Into MoU Arrangement with South Indian Bank for Facilitation of The MoU was signed by Mr. Gaurav Gupta, Credit to MSMEs Commissioner (Industrial Development), Govt. The National Small Industries Corporation (NSIC) of Karnataka and Mr. Malay Chatterjee, CMD, has signed an MoU with South Indian Bank (SIB) KIOCL, in the presence of the Mr. RV Deshpande, recently at the head office of South Indian Bank Minister for Large , Medium Industries & Tourism, at Thrissur, Kerala. With this MoU, South Indian Government of Karnataka recently during “Invest Karnataka- 2016” at Bengaluru.

NLC Signs MoU with Australian Firm for Feasibility Study NLC, NMDC and Environmental Clean Tech- nology Ltd., (ECT), Australia jointly conducted a “Feasibility Study on setting up a Small Pilot Scale R&D Integrated Plant“ at Neyveli for Coldry- Matmor process to get a value added product using lignite and iron ore. In a function held at Neyveli House, Neyveli the MoU between NLC and ECT was signed recently by Mr. Ashley Moore, MD, ECT and Mr. P.Selva Kumar, Director (Planning & Projects), NLC in the presence of Mr. Sarat Kumar Mr. Ravindra Nath, CMD(NSIC) and Mr. V.G Mathew, CMD Acharya, CMD, NLC and Mr. Glenn Fozard, CMD, (SIB) exchanging MoU Documents.

Kaleidoscope March, 2016 51 52 KaleidOscope March, 2016 Bank becomes the 33rd bank to come under NSIC’s production of hydrocarbons in select onshore assets unique umbrella of tie up arrangements with banks in the Russian Federation. to facilitate credit to MSMEs. The MoU was signed in the presence of Mr. Ravindra IndianOil signs MoU with Govt. of Andhra Nath ,CMD(NSIC) and Mr. V.G Mathew, CMD(SIB). Pradesh in Partnership Summit 2016

RINL Inks MoU with Andhra Pradesh Govt. RINL, the corporate entity of Visakhapatnam Steel Plant inked an MoU with Government of Andhra Pradesh during the “22nd CII Partnership Summit & 1st Sunrise AP Investment Meet” held in Visakhapatnam recently. The GoAP and RINL agreed on the importance of infrastructure and industrial development in Andhra Pradesh and welcomed mutual cooperation for facilitating investments in Andhra Pradesh. Mr. P. C. Mohapatra, Director (Projects), RINL and Mr. U. P. Singh, GM, TAPSO, exchanging the signed documents in the presence of Mr. Chandra Babu Naidu, Mr. Kartikeya Misra, IAS, Director of Industries, Chief Minister of AP and other officials. Government of Andhra Pradesh exchanged the MoU copies for establishing the following projects. The MoU envisages investment of around Rs. 38,500 Mr. U. P. Singh, GM, TAPSO, signed an MoU with crores to take up various projects at Visakhapatnam Government of Andhra Pradesh at Partnership with an employment opportunity to around 3000 Summit 2016 at Visakhapatnam for envisaged infra- people. structure projects, approximately worth of Rs. 3545 crores to be established in the next five years. The Indian Oil Corporation, Oil India and MoUs were signed in the presence of Mr. Chandra Rosneft sign MoU Babu Naidu, Chief Minister, Andhra Pradesh. Indian oil majors, Indian Oil Corporation Limited The MoU proposes for single window clearance (IndianOil) and Oil India Limited (OIL), signed a within 21 days including land allotment and all Memorandum of Understanding (MoU) with the other statutory approvals from Government of AP. Russian oil & gas major Rosneft in Moscow recently It would enable IndianOil to execute project plans for cooperation in geologic survey, exploration and as per the target dates. Commissioning of Online Blending Machine at HPCL

HPCL recently commissioned Automated Online Blending Facility of Bio-Diesel for Indian Railways (WR) at Railway Consumer Depot at Vatva, on the outskirts of Ahmedabad. The facility was inaugurated by General Manager, Western Railways, Mr. G. C. Agarwal in the presence of DGM – I&C, HPCL, Mr. Shuvendu Gupta and senior officials of Railways and HPCL

Kaleidoscope March, 2016 53 54 KaleidOscope March, 2016 PSEs Declare Q3 Results

GAIL Q3 PAT up by 51 percent Vs Q2, Highlights Q3 FY Q3 FY Turnover (net of Excise) at Rs. 13,380 Cr. 2015-16 2014-15 GAIL (India) Limited registered 51 percent increase • Throughput (MMT) 3.82 3.86 in Profit after Tax (PAT) of Rs 664 crore in the third • Gross Revenue (Rs. in Crore) 11,193 15,833 quarter as against Rs 441 crore in the second quarter of the current financial year. Turnover (net of Excise • Operating GRM (Rs. in Crore) 1,566 1,209 Duty) of Rs 13,380 crore in the third quarter decreased • EBIDTA( Rs. in Crore) 610 (-) 1,623 by 5 percent as against Rs 14,088 crore over the sec- • PAT (Rs. in Crore) 298 (-) 1,894 ond quarter of the current financial year. The Profit before Tax increased by 40 percent to Rs 922 crore in the starting of third quarter. the third quarter as against Rs 660 crore in the second The Company achieved a throughput of 3.82 MMT for quarter of the current financial year. Revenues from the Q3 FY 2015-16 as against 3.86 MMT in Q3 FY 2014- LPG and Liquid Hydrocarbons business increased by 15. The marginal decrease is on account of planned 11 percent in third quarter to Rs 827 crore as against shutdown. MRPL achieved a turnover of Rs. 11,193 Rs 748 crore in the second quarter of the current fi- Crore (Exports Rs. 2,529 Crore) for the Q3 FY 2015-16 nancial year. The net sales from Petrochemicals busi- as against Rs. 15,833 Crore (Exports Rs. 6,305 Crore) ness during the third quarter decreased by 9 percent during the corresponding quarter of FY 2014-15 (de- to Rs 729 crore as against Rs 798 crore in the second crease of 29% and export by 60%). The decrease in quarter of the current financial year. The sales from sales is mainly on account of decline in product prices Natural Gas Marketing during the third quarter de- which in turn is linked to the declining crude prices creased by 4 percent to Rs 11,686 crore as against Rs and also on account of more domestic off take in case 12,218 crore in the second quarter of the current finan- of export sales. MRPL posted for Q3 FY 2015-16 a net cial year. Natural Gas Transmission revenue decreased profit after tax adjustments of Rs. 298 Crore (after con- by 8 percent in third quarter to Rs 979 crore as against sidering Rs. 160 Crore as Depreciation, Rs. 152 Crore Rs 1,060 crore in the second quarter of the current fi- as Interest Cost, Net Foreign Exchange loss of Rs. 163 nancial year. LPG transmission revenue during the Crore). The loss for the corresponding quarter of FY third quarter increased by 1 percent to Rs 113 crore as 2014-15 was Rs. 1,894 Crore (after considering Rs. 143 against Rs 112 crore in the second quarter of the cur- Crore as Depreciation, Rs. 128 Crore as Interest Cost rent financial year. and Foreign Exchange loss of Rs. 343 Crore). The Company has achieved a throughput of 11.17 MRPL Posts A Turnaround Performance MMT for nine months period ended 31st December, The Board of Directors of Mangalore Refinery and 2015 as against 10.53 MMT during corresponding Petrochemicals Limited, a subsidiary Company of period of last year. MRPL has achieved a turnover of ONGC and a Category I Mini Ratna, recently ap- Rs. 37,387 Crore (Exports Rs. 9,241 Crore) for the nine proved its un-audited results for the third quarter of months period ended 31st December, 2015 as against 2015-16. MRPL, posted a gross revenue of Rs. 11 193 Rs. 49,256 Crore (Exports Rs. 18,130 Crore) during the Crore for the 3 months period October to December corresponding nine months period of 2014-15 (de- 2015 which is down by 29% as compared to Rs. 15,833 crease of 24 percent and Export by 49 percent). The Crore in the corresponding quarter of FY 2014-15. The decrease in sales is mainly on account of decline in reduction in Gross Revenue is mainly due to steep re- product prices which in turn is linked to the declin- duction in crude and product prices by around 33 % ing crude prices and also on account of more domes- in the reporting quarter compared to previous quar- tic off take in case of export sales MRPL has posted ter prices. The core operating margin was 8.40 $/bbl loss after tax of Rs. 205 Crore (after considering Rs. 468 for Q3 FY 2015-16 as compared to 6.74 $/bbl in Q3 FY Crore as Depreciation, Rs. 432 Crore as Interest Cost, 2014-15. The improvement in GRM is on account of Net Foreign Exchange loss of Rs. 1,176 Crore). The loss products like Pet Coke and Polypropylene generated after tax for the corresponding nine months of 2014-15 out of the new Phase III secondary units despite mar- was Rs. 2,882 Crore (after considering Rs. 350 Crore ginally lower throughput of 0.04 MMT during the cur- as Depreciation, Rs. 293 Crore as Interest Cost and rent quarter on account of planned shutdown during Foreign Exchange loss of Rs. 852 Crore).

Kaleidoscope March, 2016 55 56 KaleidOscope March, 2016 NALCO’s 3rd Quarter Net Profit compared to Rs.309 Crs. of Third Quarter in previous Rs. 133 crore year 2014-15. Reduction of profit in Q3 attributable to National Aluminium Company Limited (NALCO) has heavy loss of Lignite production and Power Generation declared its financial results for the rd3 quarter ended estimated around Rs. 450 Crs. due to the unprecedent- December 2015. According to the reviewed financial ed rain & heavy floods in the month of November & results for the 3rd quarter of the financial year 2015- December 2015 for about 35 days which submerged 16 taken on record by the Board in the meeting held NLC Mines and choked the Power Generation in its at Bhubaneswar recently. NALCO has achieved net Power plants at Neyveli complex. Besides during profit of Rs.133 cr., as against Rs. 226 cr. in thepre- the Third Quarter an additional impact due to VRS, ceding quarter and Rs. 354 cr. in the corresponding Wage Revision arrear to the Workmen and additional quarter of previous fiscal. The net sales turnover in statutory payment on Clean Energy cess amounting the 3rd Quarter was Rs.1616 cr. Even though the av- to Rs. 115 Crs. was borne by the company. However erage LME up to Q3 in 2015-16 has come down by with all these, notwithstanding the loss caused due to 300 US dollars per tonne of metal approximately, i.e. the reasons beyond the control of the company, NLC about 17 percent lower realization, the dip in turn- managed to stay afloat with the profit of Rs.47.61 Crs. over has been limited at the level of 11 percent due to which otherwise would have been substantially more. However on cumulative basis for 9 months period company’s focus on production and productiv- April to December 2015, the net decline is only 16 per- ity. Given the slump, it is heartening to note that cent which amounts to Rs. 145 Crs. for which recovery NALCO has registered profits, in all the three- quar plan are in force to catch up by end of FY 2015-16. ters of the present fiscal, despite entire global aluminium industry reeling under severe market slowdown and many companies reporting loss. The net profit PFC Q3 Net Interest Income for the 9 months ended December 2015 work out up 13 percent to Rs.523 cr., against the corresponding figure of Consistent with higher volume of operations, PFC’s Rs. 967 cr. for the previous fiscal. The net sales for ‘Net Interest Income’ increased by 13 percent to Rs.2,870 the 9 months of the fiscal is Rs.4866 cr. as compared crores from Rs.2,545 crores while the Total Income to Rs. 5483 cr. in the corresponding period of the last registered an increase of 10 percent. Disbursements financial year. during this period (Q3 FY 16 vs. Q3 FY 15) increased by 5 percent and Net Profit increased by 3 percent NALCO has achieved growth in production in all to Rs.1,582 crores from Rs.1,542 crores. Total Interim fronts. During the first nine months of the current fis- Dividend increased to a whopping 133 percent and the cal, NALCO achieved production of 45.74 lakh tonnes Loan Assets are up by 13 percent. Some of the major of bauxite, as compared to 43.04 lakh tonnes achieved projects sanctioned during the quarter includes; 1856 during the comparable period of the previous fiscal. MW Sawalkote HEP of J&K State Power Development The company produced 14.37 lakh tonnes of alumina Corporation Ltd (Rs.12,812 crores), 2x660 MW Ennore hydrate, against 14.24 lakh tonnes achieved in the SEZ Supercritical Thermal Power Project of Tamilnadu corresponding period of the previous financial year. Generation & Distribution Corporation Ltd. (Rs.7,669 Metal production was 2.76 lakh tonnes, against 2.44 crores), Manuguru Thermal Power Station of lakh tonnes registered during the comparable nine Telengana Power Generation Corporation Ltd (Rs. months of the previous fiscal. The net power generat- 5,832 crores) and Term Loan for 800 MW Yadadri TPP ed during the period was 4351 million units, 3858 mil- of Telengana Power Genco (Rs.4,009 crores). lion units achieved in the corresponding period of the previous year. NALCO is also fast emerging as a green SCI’s Registers a Quarterly Profit power producer. The company has generated 134 mil- of Rs. 59.66 crores lion units of wind power during the first 9 months of The Shipping Corporation of India (SCI) declared its this fiscal. unaudited financial results for the quarter ended 31st December 2015 posting a net profit of Rs. 59.66 crores NLC Posts Rs.758 crs. Net Profit as against a net profit of Rs. 31.35 crores during the NLC posts Rs.758 Crs. Net profit up to Third Quarter quarter ended 31st December 2014. With this, SCI has in 2015-16 as compared to Rs.903 Crs. for the corre- registered a net profit of Rs. 384.41 crores for the nine sponding period of previous year 2014-15. This reduc- month period ended 31st December 2015 as against a tion by about 16 percent is mainly due to reduction of net profit of Rs. 99.44 crores reported during the same Net Profit of Q3 alone which stands at Rs.47.61 Crs. as period last year.

Kaleidoscope March, 2016 57 PSEs Pay handsome Dividend to the Government

NMDC Declares Highest Ever The Board of Directors of Oil India Limited (OIL) 1st Interim Dividend of 950% (2015-16) declared Interim Dividend at 80 percent for the fi- The NMDC Board at its meeting recently has recom- nancial year 2015-16 recently. The Dividend Cheque mended highest ever 1st interim dividend of 950% of Rs 325.30 Crore was presented by Mr. U.P.Singh, for the year 2015-16 amounting to Rs 3,766 Cr. The Additional Secretary (E), MoPNG and CMD, Oil India Company’s production of iron ore during the 3rd Limited (OIL)to Mr. Dharmendra Pradhan, Minister quarter is 7.36 million tonnes (MT) registering a fall of State (I/C) for Petroleum & Natural Gas, recently of 9% over the corresponding period last year (CPLY) in New Delhi, in the presence of Mr. K.D. Tripathi, while sales of iron ore was 7.22 MT which is about Secretary, MoPNG, Mr. Sunjay Sudhir, Joint Secretary 4% more than that of the CPLY. NMDC has posted a (IC), MoPNG, along with the functional Directors and turnover of Rs.1,517 Cr, representing a fall of 49% in senior officials of OIL. turnover of CPLY. NMDC has recorded profit before tax (PBT) of Rs 1,011 Cr and profit after tax (PAT) of NLC Pays Interim Dividend Rs. 655 Cr in the 3rd quarter of 2015-16 which is down Rs. 226.49 Crore to Govt. of India by around 58% & 59% respectively over CPLY. The Neyveli Lignite Corporation Ltd., paid an Interim Company’s production of iron ore for 9 months for the Dividend of 15 percent i.e Rs.1.50 per share of Rs.10 year 2015-16 is 19.79 MT registering a fall of 12% over each, for the financial year 2015-16 to the Central CPLY while sales of iron ore was 20.33 MT which is Government. The total outgo to the company on its 11% down than that of the CPLY. NMDC’s turnover up paid up capital of Rs.1677.71 Crore is Rs.251.66 Crore. to 9 months for the year 2015-16 is Rs.4,926 Cr, PBT of Government of India, which holds 90 percent of the Rs.3,825 Cr and PAT of Rs. 2,475 Cr representing a fall company’s shares, gets Rs.226.49 Crore. of 48% in turnover, 50% in PBT and 51% in PAT over Mr. Sarat Kumar Acharya, CMD, NLC Ltd., handed the CPLY respectively. The Turnover, PBT and PAT over the Interim Dividend cheque for Rs.226.49 Crore witnessed a sharp fall during the period mainly due to to Mr. Piyush Goyal, Union Minister of State with fall in the selling price of Iron Ore.

Oil India Limited (OIL) pay Interim Dividend FY2015-16

Mr. Sarath Kumar Acharya, CMD-NLC, handing over the cheque for Rs. 226.49 Crore to Mr. Piyush Goyal, Union Minister for State (Coal, Power, New& Renewable Energy), Mr. U. P. Singh, Additional Secretary (E), MoPNG and CMD as Interim Dividend (FY 2015-16) towards Government of Oil India Limited (OIL) presenting the Interim Dividend India’s Share. Mr. Anil Swarup, Secretary,Minstry of Coal and cheque of Rs 325.30 Crore to Mr. Dharmendra Pradhan, Mr. Rakesh Kumar, Director (Finance),NLC are also present Minister of State (I/C) for Petroleum & Natural Gas during the occasion held in New Delhi recently.

58 KaleidOscope March, 2016 Independent Charge for Power, Coal and New & Renewable Energy in the presence of Mr. Anil Swarup, Secretary, Ministry of Coal, Mr. Rakesh Kumar, Director (Finance), NLC, in New Delhi recently.

Payment of Interim Dividend by AAI for the year 2015-16 Airports Authority of India (AAI) is a consistently profit making Public Sector Undertaking and paying Dividend to the Government of India. AAI achieved a record turnover of Rs. 9285 crores, Profit before Tax (PBT) of Rs. 2791 crores and Rs. 1959 crores as Profit After Tax (PAT) during the year 2014-15. AAI paid Mr Manash Sarkar, CEO, NSPCL along with Mr. S V Shahi, a Dividend of Rs. 391.85 crores for FY 2014-15 to the CFO, NSPCL presenting dividend cheque of to Mr. Government of India. Gurdeep Singh ,CMD, NTPC. AAI presented a cheque amounting to Rs. 279 crores During financial year 2014-15, the company paid total dividend of Rs. 100.00 crores which included interim dividend of Rs.80 crore and Final dividend of Rs.20 crore which also works out to 10.20% of paid up equity capital share capital. The Dividend and Dividend distribution tax amounts to 52.80% of Profit After Tax of Company achieved during financial year 2014-15.

Payment of Dividend by PHL for the Year 2014-15

Mr. R. K. Srivastava, Chairman, Airports Authority of India presenting cheque of Rs. 279 crores as Interim Dividend for the year 2015-16 to Mr. P. Ashok Gajapathi Raju, Union Minister of Civil Aviation in the presence of AAI Board Members. as Interim Dividend for the FY 2015-16 during a function held in New Delhi recently. With the payment of this Interim Dividend, AAI have paid a total amount of Rs. 813.85 crores during the current FY (2015-16) as dividend. Dr. B. P. Sharma, CMD, PHL presenting Dividend Cheque to Minister of Civil Aviation, Mr. Ashok Gajapathi Raju Pusapathi. NSPCL Pays Dividend NTPC-SAIL Power Company Pvt Ltd (NSPCL) Pawan Hans has declared a dividend of Rs. 7.76 cr. paid an interim dividend of Rs. 100.00 crores for for the financial year 2014-15. A Cheque of dividend the year 2015-16, which works out to 10.20 percent of Rs.3,95,84,735/- for the financial year 2014-15 was of paid up equity capital. Mr Manash Sarkar, CEO, presented to the Minister of Civil Aviation Mr. Ashok NSPCL along with Mr. S V Shahi, CFO, NSPCL pre- Gajapathi Raju Pusapathi by Dr. B.P. Sharma, CMD- sented dividend cheque of Rs. 50.00 crore to Mr. Pawan Hans in the presence of Minister of State for Gurdeep Singh ,CMD, NTPC , during the cheque Civil Aviation Dr. Mahesh Sharma, Mr. R.N. Choubey, presentation from NTPC Mr. A. K. Jha Dir (T), Mr. Secretary, Civil Aviation and other senior officials of S. C. Pandey Dir (Proj), Mr. U.P.Pani, Dir (HR), Mr Ministry and Pawan Hans. Pawan Hans has also paid K.Biswal Dir (F) & Mr. K. K. Sharma, Dir (O) & a cheque of Rs. 3, 80, 15,265 to ONGC as being 49 per- Chairman NSPCL were present. cent shareholder of PHL.

Kaleidoscope March, 2016 59 Awards & Accolades

RCF Bags H.N.Thadani Award Award” at the 26th Western Regional Meet of Forum Mr. R. G. Rajan, CMD, Rashtriya Chemicals & of Women in Public Sector (WIPS) held at Bilaspur. Fertilizers ltd. felicitated Mr. H.C.L. Das, Executive Mr. R. G. Rajan, CMD, Mr. C. M. T Britto, Director Director (Operations) RCF, Trombay and his team (Technical), Mr. Suresh Warior- Director (Finance) for achieving “H.N.Thadani Award -2014” for appreciated RCF WIPS Cell for the path breaking Innovative Industrial Engineering Practices by initiatives in the arena of Women Empowerment un- Indian Institution of Industrial Engineering for RCF der the guidance of Mr. P. G. Deshpande, Executive Trombay unit. Director (HR).

MD, REIL conferred with CEO with HR orientation Award for “Global HR Excellence”

Mr. R. G. Rajan, CMD, RCF Ltd. fecilitating Mr. H.C.L. Das, Executive Director (Operations) RCF, Trombay and his team.

This award was handed over to Mr. H.C.L. Das by of Dr. Chandrabhanu Satpati, IPS (Rtd.) and Commander B.M. Bhadarkar, Chairman, Indian Institution of Industrial Engineering in 57th National Convention and 3rd International Conference on Industrial Engineering at S.V. National Institute of Technology, Surat. Mr. A.K. Jain, MD, REIL receiving the award. RCF Women Employees bag Best Enterprise Award for RCF Mr. A. K. Jain, Managing Director, Rajasthan Rashtriya Chemicals and Fertilizers Ltd has been Electronics & Instruments Limited (REIL), Jaipur awarded the First Prize for the “Best Enterprise was conferred with “CEO with HR orientation Award for Global HR Excellence” at Mumbai, during the 24th World HRD Congress. REIL has been working for sustained growth, through manpower skill up gradation, talent management & recruiting and staffing Best in Class, Training, and Coaching, Measuring the impact of HRM for performance and Bottom-line Improvement, HR Technology, Building a sustainable leadership pipeline in organization and fulfilling its corporate social responsibilities. On this occasion Mr. Jain iterated that REIL has its network across the country and employees posted Mr. R. G. Rajan, CMD, RCF Ltd. with the winning team of RCF there have been geared up to give best of their ca- WIPS Cell. pabilities in the progress & success of the company.

60 KaleidOscope March, 2016 WAPCOS presented CSR Leadership Award ABP News presented CSR Leadership Award under “Best Corporate Social Responsibility Practices” category to WAPCOS. The Company views CSR and Sustainability as a way of conducting business which enables creation and distribution of wealth for the betterment of its stakeholders through the implementation and integration of ethical systems and sustainable management practices. WAPCOS has undertaken CSR and Sustainability initiatives in the diverse fields in different States of India for Mr. R. K.Srivastava, IAS, Chairman, AAI being presented environmental sustainability and socio-economic the award, conferred upon Airports Authority of India for development of underprivileged. Innovative Edge in Enhancing Consumer Experience in the Airport Category. Seen in the picture are Mr. S.Raheja, HAL Bestowed with Member (Planning), AAI (R), Mr. M.LSharma, Executive Director (CP&MS), AAI (L) and Mr. G.S.Bawa, General Raksha Mantri’s Awards Manager (PR).

NBCC Conferred R&M Property Awards 2015-16

Mr Manohar Parrikar presenting the ‘Raksha Mantri’s Awards for Excellence in Performance, Innovation and Indigenisation’ to Mr T. Suvarna Raju, CMD, HAL. Mr. Yogesh J P Sharma, CGM (Engg.), NBCC, receiving the award from Gen.V.K. Singh, Union Minister of State for External Affairs, Overseas Indian Affairs and Statistics & Programme Implementation. Hindustan Aeronautics Ltd. (HAL) was conferred with ‘Raksha Mantri’s Awards for Excellence in National Buildings Construction Corporation Performance, Innovation and Indigenisation’. The Limited (NBCC), was conferred “R&M Property awards were presented by the Defence Minister, Awards 2015-16” in two categories namely (i) Mr. Manohar Parrikar, at a function in New Delhi Excellence in CSR Initiatives and (ii) Trusted recently. Developer of The Year by Realty & More Magazine in its first R&M Property Awards function held Airports Authority of India in New Delhi recently. The award was given by Wins the TTJ Jury Choice Award Gen.V.K. Singh, Union Minister of State for External Airports Authority of India has been awarded by Affairs, Overseas Indian Affairs and Statistics the TTJ Jury Choice awards for “Innovative Edge & Programme Implementation. Mr. Yogesh J P in Enhancing Consumer Experience” in the Airport Sharma, CGM (Engg.), NBCC, received the Awards Category recently. on behalf of the Company.

Kaleidoscope March, 2016 61 NBCC CMD Conferred Housing Minister of Micro, Small and Medium Enterprises, in Innovation Excellence Award-2015 New Delhi recently. Crediting NALCO as one of the leading foreign exchange earning CPSEs of the country, Mr. Tapan Kumar Chand, CMD of the company congratulated NALCO collective for the sustained efforts put in since 1988, when the company received the first export award from CAPEXIL. It may be mentioned that during the fiscal 2012-13, NALCO exported 9,44,117 MT alumina and 1,44,161 MT aluminium to more than 20 countries earning a forex of Rs. 3410 crore.

BEML Receives Raksha Mantri Award

Mr. Rajendra Chaudhari, Director (Commercial), NBCC, receiving the award on behalf of CMD, NBCC. Dr. Anoop Kumar Mittal, CMD, NBCC, was conferred “The Housing Innovation Excellence Award-2015” for his outstanding performance in the field of construction & development of residential & commercial properties. The Award was conferred by Institute of Economic Studies (IES) in New Delhi recently. Mr. Rajendra Chaudhari, Director (Commercial), NBCC, received the Award on behalf of CMD, NBCC. Mr. P Dwarakanath CMD, BEML receiving the Excellence Award from Mr. Manohar Parrikar, Defence Minister. NALCO bags CAPEXIL’s Highest Export Award Mr. P Dwarakanath CMD, BEML received the Excellence Award from Mr. Manohar Parrikar, Defence Minister. Mr. A K Gupta, Secretary Defence Production, Mr. C N Durgesh, Director(Mining & Construction) BEML were also present on the occasion.

BDL Receives Raksha Mantri’s Award for Excellence

Mr. R.N. Lenka, Executive Director (Marketing), receiving the award from Mr. Kalraj Mishra, Union Minister of MSME.

National Aluminium Company Limited (NALCO) bagged the Highest Export Award of Chemical & Allied Products Export Promotion Council (CAPEXIL), sponsored by Ministry of Commerce & Industry, for its outstanding export performance in Processed Mineral Union Minister for Defence Mr. Manohar Parrikar Category for the year 2012-13. On behalf of the com- presenting the Raksha Mantri’s Award for Excellence: 2012 pany, Mr. R.N. Lenka, Executive Director (Marketing), - 13 for Indigenisation to Mr. V. Gurudatta Prasad, Director received the award from Mr. Kalraj Mishra, Union (Production), BDL in New Delhi recently

62 KaleidOscope March, 2016 Bharat Dynamics Limited (BDL) received the Development Agency Limited (IREDA) was felici- Raksha Mantri’s Award for Excellence : 2012 - 13 for tated for remarkable contribution in Power Sectorby Indigenisation. The Award was presented to BDL Mr. Piyush Goyal, Minister of State for Coal, Power in recognition of its extraordinary initiative, de- and New and Renewable Energy at a glittering termination and meritorious work for indigenous function “Celebrating Excellence in Power Sector” development and saving in foreign exchange by in New Delhi recently at the 3rd Annual Economic Indigenisation of Special Tools, Test Equipments and Times Power Focus Summit 2016. Fixtures for Milan – 2T Missile warhead. The Award was received by Mr. V. Gurudatta Prasad, Director MD, MRPL Conferred with Shrada - (Production), BDL from the Union Minister for Top Rankers Award Defence Mr. Manohar Parrikar in New Delhi recently.

CRWC Receives Udyog Rattan Award

Mr. H.Kumar, Managing Director MRPL receiving the award.

Mr. H. Kumar, Managing Director MRPL was conferred with the “Shrada- Top Rankers award ( Iconic Senior Officers of CRWC receiving the award. Turn Around)” at the 17th National Management Summit on “Global Corporate battle – Raising the Senior Officers of CRWC received “ Udyog Rattan Performance Bar”, at New Delhi recently. Award” conferred by Institute of Economic Studies on behalf of , Mr. K .U.Thankachen , MD, CRWC Ltd Director (Finance), NLC wins Outstanding from Dr. Bhishm Narayan Singh, Former Governor CFO Award of Tamil Nadu and Mr. B. P. Singh, former Governor of Sikkim.

CMD IREDA Felicitated In recognition of its leading initiatives in the Renewable Energy sector, Indian Renewable Energy

Mr. Rakesh Kumar, Director (Finance) NLC receiving the award.

Mr. Rakesh Kumar, Director (Finance) Neyveli Lignite Corporation was conferred with Outstanding CFO Award and the award was given by LT. Gen. Krishna Mohan Seth, (Retd) who was the gover- nor of Chhattisgarh, Madhya Pradesh and Tripura gave the award. This award was given at the 17th CMD, IREDA receiving the award. Management Summit held in New Delhi recently.

Kaleidoscope March, 2016 63 PSEs Celebrate Republic Day

RCF Celebrates Republic Day Addressing members of Team WCL Mr. Mishra Mr. R. G. Rajan, CMD, Rashtriya Chemicals & said, to meet out country’s growing energy needs, Fertilizers Ltd., unfurled Indian Tricolour on the oc- Ministry of Coal has given responsibility to Coal casion of 67th Republic Day. India Limited to produce 1 billion tons coal in fiscal by 2019-20. WCL family is certainly committed to fulfil this responsibility.

Oil India Limited celebrates India’s 67th Republic Day in grandeur Oil India Limited (OIL) celebrated the 67th Republic Day of India in grandeur at its Corporate Office in Noida. The celebrations were led by Mr. U. P. Singh, Additional Secretary (E), MoPNG and CMD, Oil India Limited, who hoisted the National Flag amidst the singing of the National Anthem by all employees and their families, Mr. R. G. Rajan, CMD, RCF ltd. unfurling the flag. including the Functional Directors and the Chief Vigilance Officer. Republic Day was celebrated with full colour and gaiety at RCF Sports Complex in presence of all Directors Executive Directors, Senior Officials, RCF’s Employees and their families. Mr. R. G. Rajan addressed the gathering informing company’s achievements also briefed about future plans and distributed various awards & prizes.

Republic Day Celebrated in WCL Western Coalfields Limited celebrated Republic Day 2016. Mr. Rajiv Ranjan Mishra, CMD, WCL unfurled the National Flag and inspected the ceremonial parade by WCL Security Guards. Mr. U.P. Singh, Additional Secretary (E), MoPNG and CMD, Oil India Limited addressing the gathering at the 67th Republic Day celebrations in Oil India Limited’s Corporate Office in NOIDA.

Mr. Singh subsequently addressed the large gathering and said that 2016 is a year of new hope and congratulated OIL Indians for their efforts, while motivating them to rise and help the Company sail through these times of uncertainty in the upstream hydrocarbon sector. Mr. Rajiv Ranjan Mishra, CMD, WCL addressing during BHEL celebrates 67th Republic Day Republic Day with fervour Celebrations. India’s 67th Republic Day was celebrated with

64 KaleidOscope March, 2016 Republic Day celebration in Cochin Shipyard Republic Day Celebrations in Cochin Shipyard was held on 26 Jan 2016. The CISF contingent and the Marine Engineering Training Institute Cadets jointly held the parade.

Mr. Atul Sobti, CMD, BHEL inspecting the parade. fervour & gaiety by BHEL at all its offices across the length and breadth of the country. Mr. Atul Sobti, CMD, BHEL unfurled the National Flag amidst the strains of the National Anthem. He addressed a Mr. Madhu S Nair, CMD, Cochin Shipyard during the large gathering of BHEL employees and their fami- Republic Day celebrations. lies. A march past and cultural programme were also organised on the occasion. Mr. Madhu S Nair, CMD unfurled the National Flag and inspected the parade. He also gave away AAI hoisting the Flag on the “Chairman’s commendation” to 13 employees the occasion of Republic Day of CSL for the excellence in performance and in- Mr. R. K. Srivastava, IAS, Chairman, Airports novation. The awardees are selected by a committee of HODs who assess their performance and innovativeness, declared twice a year and given away during Independence Day and Republic day celebrations.

GRSE, Kolkata observes Republic Day Garden Reach Shipbuilders & Engineers Ltd., Kolkata observed Republic Day 2016 in all its Units. Rear Admiral AK Verma, VSM, CMD, GRSE, reviewed the Parade and hoisted the National Flag at the Ceremony conducted in Main Works, GRSE. In his speech to the employees on the occasion, he inspired all members of the Shipyard to achieve higher productivity and ensure timely delivery of ships under construction in GRSE.

MCL celebrates Republic Day with patriotic fervor Hoisting of the Tricolour and patriotic performanc- Mr. R. K. Srivastava, IAS, Chairman, AAI hoisting the Flag es by school children marked the 67th Republic Day celebrations at energy major Mahanadi Authority of India hoisted the Flag on the occasion Coalfields Limited (MCL). MCL CMD, Mr Anil of 67th Republic Day celebrated by AAI at its resi- Kumar Jha hoisted the national flag at company dential colony, INA. Mr. Anuj Aggarwal, Member headquarters and took salute of a parade by MCL (HR), Mr. Rakesh Kalra, RED (NR) and other resi- Security, NCC Cadets, Scouts, Guides, students of dents of the Colony were present on the occasion. various schools.

Kaleidoscope March, 2016 65 MDL celebrates Republic Day NALCO celebrates 67th Republic Day

Republic Day celebrations at MDL.

Mazagon Dock Shipbuilders Ltd celebrated the Mr. Tapan Kumar Chand, CMD, NALCO, addressing during 67th Republic Day with great fervour on its prem- Republic Day celebrations. ises. Cmde R Anand, Director (Corporate Planning & Personnel) hoisted the National Flag on the NALCO joined the Nation in celebrating the 67th Republic Day celebrations at North Yard. He in- Republic Day. Mr. Tapan Kumar Chand, CMD of spected the guard of honour presented by CISF, Fire the company, hoisted the Tri-colour at the Corporate & Safety and Security contingents on the occasion. Office, Bhubaneswar.

Nlc Plans to become 19000 Plus Mw Company by 2025 – CMD, NLC

Kumar Acharya, CMD, NLC extended his greetings to all the garlanded the bust of Mahatma employees and their families. The Gandhi at the Township Admi- senior most employee of NLC nistration Office premises and Mr. P. Pichaikaran, Library inaugurated the day long cel- Attendant Spl. Gr. A of T. A. Dept ebrations. Later, he hoisted the along with his spouse Ms. P. Saroja National flag at the Bharathi were honoured by Ms. & Mr. S. K. Stadium. He inspected the Acharya and a tricycle was pre- ceremonial parade and accepted sented to Mr. Nagarajan, a differ- the Guard of Honour presented ently abled person. by the Rifle, Commando and Fire Service units of Central Mr. Rakesh Kumar, Director Ms. & Mr. S. K. Acharya honouring the Industrial Security Force, NLC’s (Finance), Mr. Subir Das, senior most employee of NLC. Security Force, Fire Services, Director (Mines) Mr. V. Thang- Home Guards, NCC volunteers apandian, Director (Power), he 67th Republic Day of and students from Neyveli schools Mr. P. Selvakumar, Director the Nation was celebrated and college. (Planning & Projects), Mr. Shivaraj Tat NLC with great fer- In his Republic Day address, Singh, CVO participated in the vour and enthusiasm. Mr. Sarat Mr. Sarat Kumar Acharya function.

66 KaleidOscope March, 2016 Personalia

Mr. Gurdeep Singh Mr. J. P. Alex Mr. T. N. Jha Mr. B. R. Viswanatha Mr. R. H. takes over as takes over as takes over as appointed as Director Muralidhara CMD, NTPC Executive Director Director (Technical) (Mining & Construction), takes over as (Operations), AAI WCL BEML Director (Defence Business), BEML

Mr. T. Chockalingam Mr. Ashok Pralhad Mr. Ravinder Singh Mr. Ramanarao Mr. K. Alagesan appointed as Labhane Dhillon takes over as takes charge as Director (Finance), joins as takes over as Director (Finance) Director (Production) BHEL CVO, WCL Executive Director HAL ITI Limited (Projects), PFCL

Mr. L. N. Mishra Mr. Raychaudhury Mr. A. K. Sahoo Mr. T. K. Chand Mr. Senapathy takes over as takes over as takes charge as CMD, NALCO takes charge as Director (Personnel) Director (Commercial) Director (Finance) appointed as President GM, BEL MCL RINL MRPL Aluminium Association of India

Kaleidoscope March, 2016 67 PSEs CSR Initiatives

RCF Jyoti Ladies Club Tiger Reserve, Tamil Nadu by making a onetime Helps Cancer Patients contribution of Rs. 25 Lakhs to Mudumalai Tiger Conservation Foundation (MTCF). In a meeting held at the Secretariat, Government of Tamilnadu, Mr. S. Senthil Kumar, GM (HR), SR, handed over the cheque of Rs. 25 lakhs to Mr. M. S. M. Anandan, Minister for Forests, Government of Tamilnadu, in the presence of Mr. Hans Raj Verma, IAS, Principal Secretary, Environment and Forest, Government of Tamilnadu, Mr. S. Chandra Babu, DGM (Project), Ennore LNG and Mr. K. Ramu, GM (Gas Projects), IndianOil. The amount would be utilised for preventive measures such as habitat Ms. Kowsalya Rajan, President, Ms. Anita Ghasghase, Vice improvement, awareness creation and equipping president RCF Jyoti Ladies Club donating Bed sheets, Milk frontline staffs etc. and other food products .

Ms. Kowsalya Rajan, President, Ms. Anita MCL extends CSR hand towards 61 more Ghasghase, Vice president RCF Jyoti Ladies Club Sambalpur farmers donated Bed sheets, Milk and other food products Mahanadi Coalfields Limited (MCL) has yet again to an NGO, “ Home for Cancer Patients” at Bhakti extended a helping hand towards 61 under-privi- Bhavan, Chembur, Mumbai in presence of Ms. leged farmers in Sambalpur district of Odisha to en- Neeraja Agrawal and Ms. Varsha Kaloti, Secretary, able them water their crop timely and reap a good JLC, Ms. Snehal More, Ms. Shailaja Salodkar, harvest. MCL, has sponsored 61 more below pover- Ms.Nilambari Gokahale and Ms. Sangeeta Pawar. ty line (BPL) SC & ST farmers of Bamra, Jamankira and Kuchinda blocks of Sambalpur to avail Deep IndianOil contributes to Mudumalai Tiger Borewell Secha Karyakrama Scheme of Odisha gov- Conservation Foundation ernment and have own bore-well in their fields. With these 61 beneficiaries, total number of underprivileged farmers sponsored by MCL to avail government scheme has gone up to 378 in Sambalpur district.

NALCO boosts welfare measures in Angul National Aluminium Company Limited (NALCO) has taken additional welfare measures to extend more benefits to its stakeholders in Angul Sector, where the company’s Smelter and Power Plant are located. The company is going to pro- Mr. S. Senthil Kumar, GM (HR), SR, handing over the cheque vide free OPD facility to the project-affected peo- to Mr. M. S. M. Anandan, Minister for Forests, Government ple residing in 35 periphery villages in Angul, of Tamilnadu. in its specialized OPD centre. The Smelter and Power Complex will issue photo medical id- As part of its CSR initiatives, IndianOil extend- cards to the villagers to facilitate this service. ed support towards mitigating the Man-Animal Further, the company has also decided to hike the Conflict Resolution Mechanism in Mudumalai remunerations to the contractual workers of the

68 KaleidOscope March, 2016 plants at Angul. The additional element of Rs. 24 Sanyukta Mahila Samiti, Saheli Club and Bal per day and canteen subsidy of Rs. 8 per day per Bhawan of NTPC have been helping the underpriv- worker will be enhanced to Rs. 32 per day and ileged from time to time to uplift their standard of Rs.12 per day respectively. It was announced by living. More than forty households were presented Mr. Narendra Singh Tomar, Union Minister of Steel Pressure Cookers by Ms. Nisha Jha, President, Ms. and Mines on the occasion of NALCO’s Foundation Geeta Pani, Vice President, Ms. Nalini Pandey, Ms. Day Celebrations at Angul, in presence of Mr. Jual Minati Biswal and Ms. Naina Sharma during a char- Oram, Union Minister of Tribal Affairs and Mr. ity program organized recently. Dharmendra Pradhan, Union Minister of Petroleum & Natural Gas. Also, it has been decided to raise the RECs CSR initiative and lump sum amount granted by NALCO in case of support to JNU death of a contractual worker due to accident from Rs. 2 lakh to Rs. 3 lakh.

NSPCL donates shawls to needy persons

Mr. Sanjiv Garg, ED (F&A/CSR), REC, distributing laptops to visually impaired students

REC has sanctioned CSR assistance of Rs. 45.15 lakh Mr. Upendra Lal, GM(HR) & Ms. Prem Lata, AGM(HR), NSPCL to Jawaharlal Nehru University (JNU), New Delhi donating shawls. for ‘Distribution of 50 Lap Tops with customized software for visually impaired students pursuing NSPCL since its inception has been working for the higher education’ to provide barrier free environ- upliftment of weaker section of the society. Recently, ment for higher educationand enable them to pur- in the presence of Mr. Upendra Lal, GM(HR) & Ms. sue professional or technical education and get em- Prem Lata, AGM(HR), shawls were distributed to ployed/ self-employed to find a dignified place for the under privileged persons at M/s Janhit Society themselves in the society. for Social Welfare at Indira Vikas Colony in Delhi. The main objective of the project is to encourage differently- abled students by providing laptops Charity Initiative of NTPC Family for their empowerment. Mr. Sanjiv Garg, ED (F&A/ CSR), REC, distributed laptops to 50 visually impaired students in programme held at Jawaharlal Nehru University, New Delhi recently, in presence of Mr. C.P. Bhatia, GM (F&A/CSR), of REC Limited, Prof. S.K. Sopory, Vice-Chancellor, JNU and other dignitaries/ officials of REC & JNU.

Barol village in Himachal Pradesh declared smokeless Barol village in Kangra, Himachal Pradesh was Ms. Nisha Jha, President, Ms. Geeta Pani, Vice President, Ms. Nalini Pandey, Ms. Minati Biswal and Ms. Naina Sharma declared as the ‘First Smokeless Village’ in the dis- during the charity program. trict by Mr. Sandeep Singh, Pradhan of Barol Gram

Kaleidoscope March, 2016 69 Panchayat in the presence of Mr. Anand Kumar, IPS, CVO, Mr. P. K. Das, ED, PSO, Mr. A. K. Ganjoo, GM (Vig.), NRO, Mr. S.S. Pandita, DGM (Engg.), PSO, Mr. Jagdeep Rana, DGM (LPG), PSO, Mr. Babu Lal Meena, Mgr.(LPGS), Dharamsala along with local villagers. Mr. Kumar complimented the Gram Panchayat Pradhan and villagers for their cooperation in achieving the milestone.

NALCO celebrates 36th Foundation Day

espite the vagaries of international market, DNALCO’s consistent performance – both in terms of production, productivity and profitability is commend- able, said Mr. Narendra Singh Tomar, Union Minister of Steel and Mines, who graced addressing the 36th Foundation Day Celebrations of the company, both at Bhubaneswar and Angul. Mr. Jual Oram, Union Minister of Tribal Affairs, Mr. Dharmendra Pradhan, Union NALCO has already got Utkal D Minister of Petroleum & Natural Gas, Dr. Udit Raj, MP (North-West Delhi) & and E Coal Blocks from Centre, in National Chairman during 36th Foundation day of NALCO. the vicinity of its thermal power plant at Angul in Odisha, and Dharmendra Pradhan, Union Mr. Dharmendra Pradhan con- the aluminium major will get Minister of Petroleum & Natural gratulated NALCO’s CMD Mr. Pottangi bauxite mines near its Gas, Dr. Udit Raj, MP (North-West Tapan Kumar Chand and his Refinery at Damanjodi, having Delhi) & National Chairman, team while appreciating the role a 70 million tonnes of reserve, All India Confederation of being played by NALCO man- soon, Mr. Tomar informed. With SC/ST Organizations and Mr. agement in the overall develop- this, NALCO is all poised to be Tapan Kumar Chand, CMD, ment process and bringing eco- bracketed with the top global NALCO were present during nomic progress in the state. They players. Mr. Jual Oram, Union the celebrations at Angul. Union assured all support to NALCO Minister of Tribal Affairs, Mr. Ministers Mr. Jual Oram and from Centre.

70 KaleidOscope March, 2016 BHEL commissions 600 MW Thermal Unit in Telangana

harat Heavy Electricals Limited (BHEL) has Kakatiya Thermal Power Project achieved another milestone by successfully Dedicated to The Nation Bcommissioning the first 600 MW coal-based Mr. K. Chandrashekar Rao, Chief Minister of thermal power plant in the state of Telangana. Telangana, dedicated the 600 MW Unit at Kakatiya Significantly, the unit, commiss-ioned at Kakatiya Thermal Power Project (KTPP) to the nation, in the Thermal Power Project (TPP) at Chelpur in presence of Mr. G. Jagadish Reddy, Hon’ble Energy Warangal District of Telangana, is the highest rat- Minister, Govt. of Telangana; Mr. D. Prabhakar ing unit in the state. One coal-based unit of 500 Rao,CMD, TSGENCO; Mr. Atul Sobti, CMD, BHEL MW rating, commissioned by BHEL in 2010, is and other senior officials. This unit of 600 MW as already operational at Kakatiya TPP. BHEL-built well as the earlier 500 MW unit at KTPP have been 600 MW rating sets comprise a 4 cylinder turbine, constructed by Bharat Heavy Electricals Limited which is designed in-house, amply demonstrating (BHEL). the engineering prowess of BHEL. So far, the com- President of Sudan Inaugurates pany has contracted 21 sets of 600 MW each, out Largest Thermal Power Plant in Sudan, of which 14 have already been commissioned. A set up by BHEL large number of similar sets ensure easy availability of spares and operator’s familiarity.

BHEL further expands footprint in Afghanistan

Mr. Atul Sobti, CMD, BHEL, His Excellency Omer Hassan Ahmed El-Basheer, President of Sudan and senior officials of the Govt. of Sudan, at the inaugurating function of Kosti (UM DABAKER) Thermal Power Plant. Senior Officials of BHEL in Afghanistan inaugurating two 220/20kV substations. Bharat Heavy Electricals Limited (BHEL) built Kosti (UM DABAKER) Thermal Power Plant Bharat Heavy Electricals Limited (BHEL) has (4x125 MW), the largest thermal power plant commissioned two 220/20kV substations in of Sudan, was inaugurated by His Excellency Afghanistan. The project has been executed by Omer Hassan Ahmed El-Basheer, President of BHEL on EPC basis. Sudan. Mr. Atul Sobti, CMD, BHEL and senior The substations have been commissioned at officials of the Govt. of Sudan, BHEL aswell Charikar, around 60 kms from Kabul and Doshi, as the Indian Embassy in Sudan were present on around 150 kms from Kabul. the occasion.

Kaleidoscope March, 2016 71 Performance of Coal India has given it a positive image: Mr. Anil Swarup, Secretary (Coal)

ppreciating the performance of Mahanadi ACoalfields Limited (MCL), Secretary (Coal), Mr. Anil Swarup, IAS, recently said the Coal India Limited has gained a positive outlook in the general mindset with the northward growth during the last one year. Mr. Swarup was chairing the review meeting at MCL, which contributes one- fourth to the total coal production of Coal India. MCL is performing very well and all efforts should be Secretary (Coal), Mr. Anil Swarup, IAS, chairing the review meeting of MCL. made to achieve the 2020 target of producing 250 million tonnes, the The Secretary Coal was at MCL appreciated role of MCL in intro- Secretary exhorted. headquarters here on the last duction of leveraging technologies MCL, CMD, Mr. Anil Kumar Jha leg of his three-day visit to in the industry for more transp- also made a Power Point pre- Odisha. Mr Swarup also vis- arency and better operational sentation on mining operations. ited the Control Room and efficiency.

MoS (I/C), PNG, at HPCL’s Make in India Stall

Minister of State (I/C) for Petroleum & Natural Gas, Mr. Dharmendra Pradhan at HPCL’s stall at ‘Make in India Week 2016’ that was held in Mumbai. A brochure on ‘Entrepreneurship Development Programme for SC/ST Youth’ was handed over to the Hon’ble Minister by C&MD, HPCL, Ms. Nishi Vasudeva. Also seen in the photograph are Director – Human Resources, HPCL, Mr. Pushp Joshi; Executive Director – Human Resources, Mr. Rakesh Misri and Executive Director – Direct Sales, Mr. H. C. Mehta.

72 KaleidOscope March, 2016 MoS (I/C), Petroleum & Natural Gas Visits Ahmedabad: Reviews ONGC Operations In Gujarat

r Dharmendra Pradh- an, Minister of State M(I/C), Petroleum & Natu- ral Gas visited Ahmedabad Asset recently and took a detailed review of ONGC operations in Gujarat. He was accompanied by Additional Secretary MoPNG, Mr U.P. Singh, CMD ONGC, Mr Dinesh K Sarraf, Director (Exploration), Mr A. K. Dwivedi, Director (Onshore), Mr V. P. Mahavar and senior executives Mr. Dharmendra Pradhan, Minister of State (I/C), Petroleum & Natural Gas reviewing ONGC operations. from Ahmedabad, Mehsana, Ankleshwar, Cambay, Vadodara, technology to further increase onshore and we have to reverse Hazira, Delhi and Dehradun. production in the four western the trend not only by inducting Mr. Pradhan appreciated the vari- onshore assets in Gujarat. He out- state-of-the-art technology but ous initiatives and emphasised lined that there has been a decline also by new ideas to boost explo- on fast track induction of new in production in ONGC western ration and production.

Jt. Secretary (Fertilizers) Visits Rcf

r. Dharam Pal, Jt. Secretary, Deptt. of Fertilizers, Director, RCF visited MRashtriya Chemicals & Fertilizers Ltd (RCF) recently. Mr. R. G. Rajan, CMD, RCF, Mr. C M T Britto, Director (Technical), Mr. Suresh Warior, Director (Fin.) and senior executives accompanied him during the visit. He visited RCF Trombay and Thal units and understood the operational activities and functions of both plants.

CMD RCF Inaugurates Solar power plant Mr. Dharam Pal, Jt. Secretary, Fertilizers at RCF Ltd. Mr.. R G. Rajan, CMD,RCF inaugurated the 2 MWp ground mounted grid-connected solar power plant at its Trombay unit, recently at its Mumbai plant site Mr. Anirban Kundu, Executive Director (Planning in presence of Mr. C M. T. Britto, Director (Technical), & Project Development) and other officials. Mr. Abir Banerjee, Executive Director (Trombay), Mr. Keeping its Mission and Vision statement in mind, P. G. Deshpande, Executive Director (HR) & CSO, RCF has forayed into harnessing renewable energy

Kaleidoscope March, 2016 73 to meet its energy requirement thereby reducing its carbon footprint increasing its emphasis on sustainable development. Solar power generated from the plant is directly fed to the 11 KV grid and shall be utilised for captive consumption.The plant is expected to generate around 3 million units per annum. Earlier to this RCF has already installed rooftop Solar power generation plants with an aggregate capacity Mr. R.G. Rajan, CMD, RCF, inaugurating 2 MWp ground of 84 KWp atop its offices. mounted grid-connected solar power plant at its Trombay unit. AAI inaugurates New Terminal Building at Khajuraho

nion Minister of Civil Aviation, Mr. Ashok. occasion, Mr. R.K .Srivastava, Chairman, AAI while P. Gajapathi Raju inaugurated the New delivering the welcome address thanked the State Terminal Building at Khajuraho Airport Government for making available the land and nec- U essary logistic support for development of the new recently. Chief Minister of Madhya Pradesh Mr. Shivraj Singh Chouhan was the Chief Guest during facility. the inaugural ceremony amongst the other dignitaries. Speaking on the occasion, Minister highlighted UNOPS hires AAI for training the importance of airport infrastructure in the re- of Afghan personnel gional connectivity. Chief Minister complimented the new facility and assured full-fledged support in further development of airport infrastructure in the state. All dignitaries who spoke on the occasion ap- plauded the new facility. Earlier speaking on the

Mr. Rajiv Goel, Director, Indian Aviation Academy with seven Afghan participants along with Mr. D S Garia, Airport Director, Varanasi Airport during the UNOPS training conducted by Indian Aviation Academy, New Delhi.

United Nations Office of Project Services (UNOPS) has hired Airports Authority of India (AAI) for Mr. P. Ashok Gajapathi Raju, Union Minister of Civil Aviation training of Afghanistan Civil Aviation Personnel. and Mr. Shivraj Singh Chouhan, Chief Minister of Madhya Seven participants from Afghanistan Graduated on Pradesh unveiling the plaque during the inauguration recently after undergoing four weeks of class room of the New Terminal Building at Khajuraho Airport in the Training at CATC, Allahabad and two weeks on the presence of other dignitaries recently. job training at Varanasi Airport.

74 KaleidOscope March, 2016