TATA STEEL
CORPORATE SUSTAINABILITY REPORT 2001-2002
The developing world has two options. The first is to sit back and react only when the problems arise. The second is to act as conscious citizens and rise above our vested interests for the sake of future generations, so that history does not record that we deprived them of their livelihood… Ratan N Tata Chairman, Tata Steel On Sustainability
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
INDEPENDENT ASSURANCE
M/s. PricewaterhouseCoopers (P) Ltd., Mumbai, were asked by the Management of The Tata Iron & Steel Company Limited (TATA STEEL) to provide an “Independent Assurance” to the Corporate Sustainability Report for the period 1st April 2001 to 31st March 2002.
The scope included:
• Review of certain statements and data relating to the Tata Steel’s operations and to provision of limited assurance in respect of these statements and data;
• Checking of the internal control system including monitoring and reporting procedures and whether it is planned expediently to support reliable disclosure in the Sustainability Report;
• Assessment whether the Report provides an appropriate representation of existing policies in the areas of human resources, health, safety, security, environment and community involvement;
• Checking of the data stated at indicators EC3, EN11, EN12, LA7 and SO1 (where SO1 is limited to the Income Generation activities of TSRDS) in the Sustainability Report 2001-2002 and whether they are consistent with the activities in the plant areas for the financial period and are documented and stated in accordance with the guidelines stated under their environmental and social policies.
The GRI 2002 guidelines provided the basis for the independent assurance by PricewaterhouseCoopers.
On the basis of the work undertaken, PricewaterhouseCoopers provided independent assurance to this report that stated:
“Nothing came to our attention to suggest that the information cited at indicators EC3, EN11, EN12, LA7 and SO1 (where SO1 is limited to the Income Generation activities of TSRDS) are materially mis- stated”.
“The internal control and management systems are modelled on international best practices and on ISO based quality and environment management system”.
In addition, PricewaterhouseCoopers independent assurance report brought to our notice some deficiencies. These would provide the basis for improving the following aspects in our governance and management systems; and reporting for the next reporting periods:
• Review of adherence to social, environmental and other sustainability policies by the audit committee of the Board of Directors.
• Improving data management systems in some areas of operations and establishment and reporting of Measurement and Reporting Policies for economic, environmental and social information.
• Stricter adherence to scope and boundary of the reporting entity through out the report.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
CONTENT INDEX
Vision & Strategy Economic Social 1.1 VS-2 Core Additional Core Additional 1.2 VS-7 Monitory Flow Indicator Employment EC1 EC-2 LA1 SO-2 LA12 SO-2 Profile EC2 EC-2 LA2 SO-2 2.1 P-2 Suppliers Labour/Management Relation 2.2 P-2 EC3 EC-2 EC11 EC-2 LA3 S0-3 LA13 SO-3 2.3 P-2 EC4 EC-2 LA4 SO-3 2.4 P-2 Employees Health & Safety 2.5 P-2 EC5 EC-2 LA5 SO-4 LA14 SO-7 2.6 P-2 Providers of Capital LA6 SO-4 LA15 SO-7 2.7 P-4 EC6 EC-2 LA7 SO-5 2.8 P-4 EC7 EC-2 LA8 SO-6 2.9 P-6 Public Sector Training & Education 2.10 P-7 EC8 EC-3 EC12 EC-3 LA9 SO-7 LA16 SO-8 2.11 P-7 EC9 EC-3 LA17 SO-9 2.12 P-7 EC10 EC-3 Diversity & Opportunity 2.13 P-7 Indirect Economic Impacts LA10 SO-10 2.14 P-8 EC13 EC-3 LA11 SO-10 2.15 P-8 Strategy & Management 2.16 P-8 HR1 SO-10 HR8 SO-11 2.17 P-8 HR2 SO-11 Environmental 2.18 P-8 HR3 SO-11 Core Additional 2.19 P-9 Non-Discrimination Materials 2.20 P-9 HR4 SO-12 EN1 EN-2 2.21 P-9 Freedom of Asocn. & Colect. Bargaining EN2 EN-2 2.22 P-9 HR5 SO-12 Energy Child Labour EN3 EN-3 EN17 EN-4 HR6 SO-12 Management EN4 EN-3 EN18 EN-5 Forced & Compulsory Labour System EN19 EN-5 HR7 SO-12 3.1 MS-2 Water Disciplinary Practices 3.2 MS-7 EN5 EN-6 EN20 EN-6 HR9 SO-12 3.3 MS-7 EN21 EN-7 HR10 SO-12 3.4 MS-7 EN22 EN-7 Security Practices 3.5 MS-7 Bio-Diversity HR11 SO-13 3.6 MS-7 EN6 EN-8 EN23 EN-8 Indigenous Rights 3.7 MS-7 EN7 EN-9 EN24 EN-9 HR12 SO-13 3.8 MS-9 EN25 EN-9 HR13 SO-13 3.9 MS-9 EN26 EN-9 HR14 SO-13 3.10 MS-9 EN27 EN-9 Community 3.11 MS-10 EN28 EN-9 SO1 SO-14 SO4 SO-25 3.12 MS-11 EN29 EN-9 Bribery & Corruption 3.13 MS-11 Emissions, Effluents & Wastes SO2 SO-25 3.14 MS-12 EN8 EN-10 EN30 EN-10 Political Contribution 3.15 MS-12 EN9 EN-10 EN31 EN-10 SO3 SO-26 SO5 SO-26 3.16 MS-12 EN10 EN-11 EN32 EN-10 Competition & Pricing 3.17 MS-14 EN11 EN-14 SO6 SO-26 3.18 MS-14 EN12 EN-15 SO7 SO-26 3.19 MS-14 EN13 EN-16 Customer Health & Safety 3.20 MS-20 Suppliers PR1 SO-26 PR4 SO-26 EN33 EN-16 ANNEXURES PR5 SO-26 Products & Services I A-2 PR6 SO-26 EN14 EN-16 II A-2 Products & Services EN15 EN-16 III A-4 PR2 SO-26 PR7 SO-26 Compliance IV A-5 PR8 SO-26 EN16 EN-16 V A-8 Advertising Transport VI A-9 PR9 SO-27 EN34 EN-17 PR10 SO-27 Others Respect for Privacy EN35 EN-17 PR3 SO-27 PR11 SO-27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Founder Father’s Philosophy…… Founder Fathers’ Direction……..
We do not claim to be more “Be sure to lay wide streets planted unselfish, more generous or more with shady trees, every other of a quick philanthropic than others, but we growing variety. Be sure that there is think, we started on sound and plenty of space for lawns and gardens. straightforward business principles Reserve large areas for football, considering the interests of the hockey and parks. Earmark areas for shareholders, our own and health Hindu Temples, Mohammedan and welfare of our Mosques and Christian Churches…” Employees……………. the sure foundation of our prosperity. Jamshedji N Tata, 1902
J N TATA, 1895 Letter written to his son Sir Dorab Tata, of what his dream city of steel, should look like.
Group Purpose
Our purpose in Tata is to improve life of the communities we serve. We do this through
leadership in sectors of economic significance to which we bring a unique set of capabilities. This requires us to grow aggressively in focussed areas of business.
Our heritage of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. Formalizing the high standards of behaviour expected from employees and companies will continuously enrich this heritage.
The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance Group Synergy and become globally competitive is the route to sustained growth and long-term success.
This report has been prepared in line with the
Global Reporting Initiative’s Sustainability Reporting Guidelines 2002, on Economic, Environmental and Social Performance. GRI has not verified the contents of this report. M/s. PricewaterhouseCoopers have provided an Independent Assurance to this report. This is the second Corporate Sustainability Report by Tata Visit us on Tata Steel. Steel’s Website www.tatasteel.com
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-1
VISION & STRATEGY
CONTENT INDEX
1.1 Organization’s Vision - VS2 & Strategy
1.2 Statement from CEO - VS7 describing Key Elements of the Report.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
1.1 STATEMENT OF ORGANIZATION’S VISION & STRATEGY
What are the main issues of organization related to the major themes of Sustainable Development?
Tata Steel’s Vision (Figure-1.1) guides the organization towards sustainable development by
setting integrated economic, environmental and Figure-1.1 – VISION social goals. The Vision steers the organization to become a knowledge based, learning and happy Tata Steel enters the new millennium organization in 21st century, by establishing itself as a with the confidence of learning, supplier of choice of the products & services. To knowledge based and a happy improve the economic performance, Tata Steel shall organization.
optimise the cost by modernization, right sizing, We will establish ourselves as the outsourcing, resource conservation and waste supplier of choice by delighting our recycling/reuse. Tata Steel shall maintain the customers with our service and our leadership by excelling in economic, environmental products. and social performance through stakeholder
engagement at planning, implementation and post In the coming decade, we will become implementation stages. Tata Steel has introduced the most cost competitive steel plant these practices in Tata Business Excellence Model and so serve the community and the nation. (TBEM). Stakeholder concerns identified through engagement processes, elaborated later in this report Where Tata Steel ventures….others are systematically prioritised and integrated into will follow. business decision-making process.
How are stakeholders included in identifying sustainability issues? For each issue, which stakeholders are most affected by the organization?
Inputs from stakeholders are taken through several structured/formal/informal engagement processes and considered in setting strategic objectives of the company. Further, details on stakeholder engagement are furnished in Section-3.10. Figure#1.2 indicates how the sustainability issues have been derived from stakeholder concerns.
Stakeholder Concerns of the Strategy/Sustainability issues Indicators and actions proposed to address stakeholder which address the stakeholder the stakeholder concern concern Shareholder Stock Price, Shareholder EVA positive, EBIT, Dividends, Weighted Average Cost of Capital (WACC), Wealth P/E ratio, Market Share Net realization, Working Capital Efficiency Long term value Top line growth, Reserves/Net Operating cost, Customer Satisfaction Index, Worth, Brand Value, Customer Corporate Citizenship Index, Employee Satisfaction, Employee Satisfaction Index, Patents and R&D Satisfaction, Intellectual Capital, Social reputation, cost leadership Grievances Complaint/grievance management Transfer of shares, non-receipt of balance sheet and non-receipt of declared dividend Information needs Timely availability of above Quarterly/half yearly/annual reports and information shareholder meets Employees Professional growth, Enhance culture of excellence, Competency coverage ratio, training and personal growth, health, knowledge based and happy development, knowledge management index, safety & environment, organization, development and involvement in Annual Quality Improvement welfare measures, future retention of talent, employee Plans (AQUIP), number of accidents, work area business plans satisfaction environment quality Quality of life Quality of life in and around the Corporate citizenship index, compliance with enterprises environmental standards, eco restoration etc., employee satisfaction index. Suppliers Value creating partnership Long-term partnership Supplier satisfaction, cost of procurement and timely payment Customers Value creating Long-term business relationship, Customer Satisfaction Index, customer dis- partnership, timely cost of products, delivery, satisfaction, complaint resolution, product deliveries complaint resolution development cycle time, PQI, despatch compliance Community Quality of life, health, job Corporate social responsibility, Corporate citizenship index, spend on society, opportunities, education, quality of life of community pollution control Figure#1.2 – Stakeholder concerns and Sustainability Indicators VS 2/9
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Through the engagement processes, feedback is obtained from the stakeholders on the issues related to corporate sustainability as shown in Figure#1.3 below.
Sustainability Issues Stakeholders Affected Economic • EVA positive core business Shareholders, Financial Institutions • Sustainable growth Customers • Invest in attractive new business Supplier • Divest, merge, acquire Society • Move from commodities to brand Employees • Value creating partnerships with suppliers and customers • Lowest cost producer of steel • Outsource strategically • Encourage innovation and freedom to fail • Ensure safety and environment sustainability • Excel at TBEM Environmental • Resource consumption Eco-system • Emissions, effluents and waste Regulatory Authorities • Legal compliances Suppliers • Greening of supply chain Customers, Society • Life cycle impact of products Social • Manage knowledge Employees • Enthused & happy employees, create leaders who will build the future Trade Union, Community • Unleash people’s potential • Improve the quality of life of the communities we serve
Figure#1.3 – Sustainability Issues & Stakeholders affected
How are these issues reflected in the organization’s values and integrated into its business strategies?
The organization’s strategy (Figure-1.4) ensures creation of value for all its stakeholders and contributes towards achieving sustainability goals. The strategy addresses stakeholder concerns (including that of shareholders) through creation of wealth, customer & suppliers focus on achieving world-class service & products and achieving cost leadership. It addresses the employee and community concerns through its desire to create a learning organization and leadership in corporate citizenship.
Deployment of strategy is through focus on lead and lag indicators:
• Creation of wealth includes improvement in shareholder value, growth in top line that is driven by EVA; Turn Over, EBIT and profitable growth. These in turn are dependent on WACC, net realization, and working capital efficiency.
• Achieving world-class status in service & product through enhancement of customer relationship, operational excellence and customer satisfaction, which are driven by despatch/delivery compliance, product development and cycle time, complaint resolution time, enhancement of the buying experience and development of long-term partnership.
• Cost leadership by becoming the lowest cost producer and through reduction in family size. This will be achieved through increase in productivity, decrease in post manufacturing expenses, which inturn are driven, by rightsizing, energy and resource conservation and reduction in cost of procurement.
• Creation of a culture of continuous learning and change through emphasis on development of a knowledge based and happy organization, culture of excellence and attracting and retaining talent. This is dependent on recruitment, training and development and implementation to HR plans.
• Industry leadership in corporate citizenship through environmental management, knowledge management, community care and creation of mechanism for learning and sharing across the organization. VS 3/9
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Figure-1.4 : Tata Steel’s Strategy Map
Create Wealth STRATEGIC OUTCOME MEASURES PERFORMANCE DRIVERS (lead indicators) ►Improve (Lag Indicators) Shareholder Value WACC COST OF BORROWING EVA
NET REALISATION ►Grow top line EBIT / T.O.
SALES/PROFITABILITY SALES FROM SEGMENT PPM ANALYSIS FROM CHOSEN PROFITABLE SEGMENTS OF PPM GROWTH MATRIX WORKING CAPITAL EFFICIENCY
Achieve World Class Status in CUSTOMER PRODUCT DEVELOPMENT CYCLE TIME Service & LOYALTY & Products RETENTION ►Enhance ENHANCE CUSTOMER RELATIONSHIP customer (LT PARTNERSHIP) relationship CSI SERVICE LEVELS
TO THE ►Enhance ENHANCE THE BUYING EXPERIENCE CUSTOMER operational DESPATCH i.e. Customer Cell excellence COMPLIANCY & ON TIME COMPLAINT RESOLUTION TIME ►Improve DELIVERY customer satisfaction
Reach the Position of Most PRODUCT PQI OF FLAT/LONG PRODUCTS QUAILTY-PQI Cost Competitive RIGHTSIZING Steel Plant MANPOWER PRODUCTIVITY ►Reach lowest SAL STEEL PRODUCTION cost producer POST MFG. ►Reduce EXPENSES SPECIFIC ENERGY CONSUMPTION PAYMENT TO SUPPLIERS & family size CONTRACTORS COST OF COST OF PROCUREMENT/PRICE (% Payment within HRC/CRC VARIATION agreed time frame) Waste Management
Create a Culture of COMPETENCY RECRUITMENT Continuous COVERAGE RATIO Learning and Change ►Knowledge based org. TRAINING AND IMPLEMENTATION OF HR ►Enhance DEVELOPMENT PLAN culture of (Training mandays) excellence INPUT TO KNOWLEDGE MANAGEMENT SYSTEM ►Happy org. ►Attract, EMPLOYEE recruit, develop, LEARNING & SHARING TBEM SCORE & retain people SATISFACTION ACROSS ORGANIZATION INDEX Establish POLLUTION CONTROL Industry Leadership-in INCREASE GREEN FOLIAGE PR&CC IMPROVE QUALITY IMPROVE ECO SYSTEM ►Improve IMPLEMENT & SUSTAIN OF LIFE OF CORPORATE CITIZENSHIP quality of life of ISO-14001 & OHSAS- COMMUNITY INDEX Community 18001
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
The organization subscribes to values like, credibility, excellence, integrity and respect for individuals. The process of integration of these values into its business strategy is furnished in Figure-1.5.
Strategic Objectives Stakeholder Alignment
C O Accomplishment Strategic Values Goals/ Targets D Objectives Timeframe Challenges E Partners Suppliers Customers Employees Government Communities Shareholders
1.EVA positive core EVA Steel-0.9%, business Market Capitali- 2.Sustainable Growth zation Rs.91.99 3 years 3.Invest in attractive Billion, Credit Enhance 3 years new business Credibility, rating AA+, A shareholder 1 year X X X 4.Divest, merge, Excellence Profit from new value 3 years acquire business-Rs.800 3 years 5.Move from Million, Share commodities to Holder brand Satisfaction Index-3.7
1.Value creating CSI Steel >85% partnerships with Top Box Score suppliers and 45% Supplier customers Satisfaction 2.Lowest cost Index 3.7 producer of Steel 3 years Employee Cost 3.Outsource Improving Integrity, 3 years Rs.3100/tcs, B strategically operational Credibility, 3 years X X X X X X HRC cost 4.Encourage excellence Excellence 1 year JRDQV Score X innovation and 1 year >700. freedom to fail Implement 5.Ensure safety and OHSAS-18001 environment Sustain ISO- sustainability 14001 6.Excel at TBEM
1.Manage knowledge 2.Enthused and happy employees, Improve HR Respect for 3 years ESI Score 3.8 C create leaders who effective- X individuals, 1 year KM Index 100 will build the future ness 3.Unleash people’s potential
Winning the admiration of others and Improve the quality of providing D life of the safe and Credibility 1 year CCI Score 10 X X communities we serve clean environ- ment to employees and society
Figure#1.5 – Integration of Tata values into business strategy
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
What are the organization’s objectives and actions on these issues?
To achieve the sustainability goals, the Figure-1.6 : Key Enterprise Process
organization has identified twelve (12) key
enterprise processes (Figure-1.6) critical to the Sl. Enterprise Process Process growth and success of the organization. A No Owner
member of the Senior Management Team 1 Leadership MD 2 Strategic Planning & Risk MD manages each enterprise process. The process Management owner and the owners of various sub-processes 3 Market Development DMD (S) under a particular key enterprise process, have 4 Investment Management VP (F)
started mapping the stakeholders and identifying 5 Human Resources VP (HRM)
stakeholders concerns through a structured 6 Improvement & Change MD Management engagement and feedback process. These 7 Order Generation DMD (S) stakeholder concerns are analysed, prioritised and 8 Operation and Fulfilment DMD (S) integrated with the strategic goals under that 9 Inbound Supply Management Chief (SC) particular process as a part of Corporate 10 Research & Development Chief (R&D)
Sustainability Management System. Senior 11 Information Management CIO
Management at present tracks the performance of 12 Social Responsibility & DMD (CS) Corporate Services the targets, taken against each strategic goal,
through a review process under TBEM.
The objectives and targets of the organization related to sustainability issues reflect in the top management commitment. MD’s Balanced Score Card is presented in Section-3.19. The MD’s Balanced Score Card serves as a framework within which the top management commitments are cascaded down to the level of Dy. Managing Director, Vice Presidents, Divisional Heads and Departmental Heads. The Balanced Score Card prepared at each level is implemented by concerned agencies and reviewed under Tata Business Excellence Model by Senior Management. MD’s balance score card in line with the strategic goals and objectives of the organization, delineates the targets with regard to EVA spread, economic profit, ROIC, spent in new business, customer relationship index, customer satisfaction index, right sizing, knowledge management, TBEM score, employee satisfaction index, accident reduction, corporate citizenship index and value of improvement by employees.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
1.2 From MD’s Desk………
This has been a year of crisis for the world steel industry. Recessionary conditions in several countries induced stagnancy or reduced demand in many steel-consuming sectors. The consumption of steel world-wide was only 80% of global capacity, resulting in curtailed output from steel plants worldwide, along with a significant reduction in steel prices. The situation has been so critical that even the U.S., one of the world’s largest consumer of steel, imposed unprecedented trade barriers to protect its domestic steel producers against imports.
The continued economic slow-down in India, exacerbated by the global steel glut, also impacted the Indian Steel Industry in terms of demand and price erosion. In this difficult environment, Tata Steel performed well. Although domestic steel consumption in India grew marginally, the Company was able to increase its domestic sales volumes by 7%. Tata Steel’s major focus during the year has been on building its market position in high end Cold Rolled Steel products, and establishing its branded products in the market place, in order to distinguish itself from other commodity steel producers. Unfortunately, while the Company was able to increase its sales volumes and market share, its margins came under enormous pressure due to the substantial erosion of steel prices, which were at a five year low. Ongoing initiatives in the areas of cost reduction, productivity increases and market development enabled the Company to retain its competitive position. As a result, the company has turned in reasonable financial performance with net sales lower by 2%, and decrease in profit before tax by 58.3% and lower dividend payout at 40% compared to 50% during 2000-2001. Our status of “Best Steel Company in the World” slides down to 3rd position as per the survey conducted by World Steel Dynamics, USA. Details of financial performance are furnished in the Section on Economic Performance.
The first year of the new top management team in Tata Steel has, without doubt, been a challenging one. However, the greatest strength of Tata Steel has been the spirit of its people and their ability to face unbelievable challenges – and overcome them. It is this spirit and this commitment of the entire work force that has enabled the Company to even maintain a profitable position while other steel producers have not been able to do so. Throughout the year, the support, understanding and leadership shown by the Tata Workers’ Union and other Trade Unions in remote locations, has been a major factor in enabling the Company to achieve its goals.
Tata Steel is fully aware of the impacts of its activities, products and services on the environment at global scale. The company’s endeavour is not limited to compliance with applicable legislation but also minimization of process waste and optimisation of recovery and recycling of waste materials, phasing out of pollution prone old units, installation of state-of-the-art technology for preservation of environment. We are committed to continual improvement in environment performance, which we address through setting at every stage of production and services, sound environmental objectives and targets and by integrating a process of review, as essential element of Corporate Management. Tata Steel Main Works has already secured an ISO-14001 certification. Other facilities like, Ferro Alloys Plant, Tubes Division, Sukinda Chromite Mines, Noamundi Iron Mines, West Bokaro Collieries and Joda East Iron Mines are also certified for compliance to the requirement of International Standard ISO-14001. Jamshedpur Township, Bearing Division and Jharia Collieries are in advance stage of ISO-14001 certification.
Tata Steel was able to improve the environment by achieving a reduction in Greenhouse Gas (GHG) emissions by 9.0% (against a target of 5%) and specific energy consumption by 1.8% (against a target of 4%). In line with our commitment to set new standards for emissions and discharges in steel making, we continue to exceed regulatory compliance standards. We reduced the raw material consumption by 10.8% (against a target of 5%), water consumption by 10.2% (against a target of 5%) and increased waste reuse and recycling from 70.2% to 72.6% (against a target of 72%) during the year. The details of environmental performance are furnished under Section on Environmental Performance. VS 7/9
TATA STEEL – CORPORATE SUSAINABILITY REPORT (2001-2002)
Tata Steel in the face of numerous adversities has been able to consistently create value for its stakeholders. Tata Steel has always recognized the interaction and interdependence of economy, environment and society, and accordingly has instituted mechanism to continually engage its key stakeholders including customers, suppliers, employees, community and shareholders. The thrust on cost leadership as well as pressure on bottom-line shall result in renewed pressure for right sizing of the corporation. This must be accompanied with improved productivity across the organization. Our initiatives and investments in employees Safety, Health and Quality of Life results in improved employee morale and motivation. The resultant outcome is an employee retention rate of 98% and Employee Satisfaction Index (ESI) of 3.64/5 for Supervisors and 3.75/5 for Officers.
We are alive to the growing consciousness in the society and the consequent increased environmental and social activism. This places an increased responsibility on Tata Steel to not just perform but also to demonstrate and communicate its responsible environmental & social performance to the stakeholders. This is of even greater relevance in light of the high premium on the Tata Steel Brand. In the year under review, the Company, continuing its thrust as a good corporate citizen, has concentrated on-
a) Relief in parts of India which are affected by c) Empowerment; family initiatives and natural calamities; d) Sports and Adventures b) Community and rural development;
The Company’s social commitments involve a network of development programmes. As a good corporate citizen, the Company has identified itself with the growth and development of the nation, aiding it in times of natural calamities and providing benefits to the needy. Tata Steel shared nearly Rs.392 Million of the wealth it generated for the welfare of the people.
We need to improve our performance further to just maintain our standing in light of emerging difficult economic environment. We must therefore strive to increase during 02-03 EVA from (-) 8.12% to EVA+; operating profit by 100% and CCI to 10. To achieve these objectives we must target a reduction in specific energy consumption by 5% and raw material consumption by 5% during next year. Further, in keeping with our commitment to consistently better our environmental performance as also to improve cost reduction, we must strive to reduce water consumption by 5%, SPM emissions by 3%, GHG emission by 5%, Waste utilization to 80% from existing 72%, during 2002-2003.
Today there are multiple challenges to business. We see major challenges ahead of us in integrating responsibilities for financial performance with those for economic, environmental and social performance. We have addressed the issue partially, through integration of our environmental and social performances in business decision making process through stakeholder engagement process.
In order to address these challenges the company had revisited the Vision in the month of May 2002. The vision is called VISION-2007, which sets forth the direction for next five years. Vision-2007, stresses upon the company to become EVA(+) in order to meet the expectations of its shareholders and other stakeholders including the employees, the Government and the Society. To continue to improve the quality of life of its employees and the community served by the organization is another part of Tata Steel’s Vision for sustainable development. The Vision-2007 Statement is furnished in Figure-1.7. The initiatives to fulfil this Vision will, I believe, enable our Company to face the global challenges ahead, both within India and in overseas markets.
It has been our endeavour to blend corporate goals with corporate sustainability, a hard-core professional approach with a warm personal touch and to synergise the energies of talent and technology. Our efforts have reaped rich dividends. They have driven us further in our pursuit of enhancing shareholder value, .the value that shows in our bottom line and your trust in us. The value that will translate into progress, prosperity and promise. And we will spare no opportunity to make Tata Steel an EVA Positive, environmentally and socially responsive organization.
B Muthuramam Managing Director VS 8/9
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Figure#1.7 (VISION-2007) VS 9/9
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-2
PROFILE OF ORGANIZATION
CONTENT INDEX
• Organization Profile P2
• Report Scope P7
• Report Profile P8
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
ORGANIZATIONAL PROFILE
2.1 Name of Reporting Organization: The Tata Iron & Steel Company Limited
2.2 Major Products & Services, including Brands
The major products and services in the scope of this report include, Billets, Blooms & Slabs, Wire Rods and Re-Bars, Forging Quality Steel, Hot and Cold Rolled Sheets, Hot and Cold Rolled Coils, Galvanised Coils and Sheets, Hot Rolled Plates, Standard Pipes, ERW Precision Tubes, Closed Structural, Rolled Rings, Forged Rings, Machined Rings, Bearings, Agricultural Implements, Coal & Coke, Iron Ore, Dolomite, Ferro Alloys, Chrome Ore & Chrome Concentrate. Tata Steel is also engaged in providing services like, Project Studies, Design & Engineering, Personnel and Technical Training, Automation and Information Technology Services with its vast experience to other organizations.
To enhance the net realisation, the company, apart from improving the product mix, is increasingly differentiating its products through “Branding” beginning with TATA TISCON reinforced bars and TATA SHAKTI galvanised corrugated sheet. Products manufactured at different locations reach the consumer end through direct despatch or through a network of retailed stockyards located in all major cities in India. Customised products are also delivered to end users through various conversion agents.
2.3 Operational Structure of Organization 2.4 Description of major Divisions / Operating
Companies / Subsidiaries & Joint Ventures. Board of Directors Head Office – Mumbai, Maharastra, India.
Plant Locations: Mr. R N Tata (Chairman) Company’s Steel Works Jamshedpur (Jharkhand) Mr. Keshub Mahindra Tubes Division Jamshedpur (Jharkhand)
Mr. S A Sabavala Ferro Manganese Plant Joda (Orissa)
Mr. Mantosh Sondhi Charge Chrome Plant Bamnipal (Orissa)
Mr. Nusli N Wadia Cold Rolling Complex Tarapur (Maharashtra) (West) Mr. S M Palia Noamundi Mines States of Jharkhand, Mr. P K Kaul (Financial Institutions’ Nominee) Joda & Sukinda Mines State of Orissa Mr. Suresh Krishna West Bokaro & State of Jharkhand Mr. Kumar Mangalam Birla Jamadoba Collieries Mr. Ishaat Hussain Dodkanya State of Karnataka Dr. Jamshed J. Irani Marketing offices and New Delhi, Ghaziabad,
Mr. B Jitender (Financial Institutions’ Nominee) Stock Yards Kanpur, Patna, Kolkata,
Mr. B Muthuraman (Managing Director) Mumbai, Nagpur,
Dr. T Mukherjee (Whole-time Director) Bangalore, Kochin, Gowahati & Chennai. Mr. A N Singh (Whole-time Director)
The organization structure is furnished in
Figure#2.1. 2.5 Country in which the organizations
operations are located
The operations of the organization are located in India only.
2.6 Nature of Ownership, Legal form.
Tata Steel’s (a Public Limited Company) headquarter is based in Mumbai, Maharastra, India. Its stock is listed and traded on Stock Exchanges located at Mumbai, Kolkata, Pune, Kochin, New Delhi, Kanpur, Patna, Ahmedabad. Global Depository Receipts (GDR) issued by the company in the International market have been listed on the Luxembourg Stock Exchange. As on 31.03.02, there were 367,771,901 ordinary shareholders (Rs.10.00 per share) and 14,000,000 preference shareholders (Rs.100/- each).
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002) Figure#2.1 Operational Structure of Managing Director Organization Mr. B Muthuraman Quality Union Management Management Upper Management PEO Structure Joint Bodies
Apex BE Council, JCCM / VP (Finance) DMD (Steel) EIC (Engg. Services & DMD (Corp. VP (HRM) Chief Technology MD, DMD/ JWC Mr. R C Nandrajog Dr. T Mukherjee Products) Svcs) Mr. N Mohanty Officer VPs, EICs, Resident Mr. A N Singh Chief Corp. Audit Chiefs (Bi EIC (R&A), EIC (Brg.), Representative Ethics Counsellor Monthly) EIC (Sec. Prod.), Chief (Titanium- CFC-Corporate EIC (TGS), Chief Task Force) Heads- (Engg.), Chief (Proj) EIC (FAM), CIO, Chiefs of-HR/IR- Chief (Rural Mktg) Corp. Taxation Chief (TC-TF), GM Steel, HR Chief (Business BE Corporate Treasury, SAP (Town), GM Implement Excellence) Councils EIC (Tubes) Corporate EIC (TKM) (Medical), Chief Organization DMDs// VPs, Chief (ITD) Chief (SPACM) Chiefs, GMs Accounting (CC), Head-SS&FI, Learning & Chief (Strategic Chief-Security Development (Bi monthly) Finance) JWQC
BE Councils Chief-R&D and Sct. Svc. EIC – RM/IM EIC-Long Product EIC-Flat Product EIC-Shared Services Chief-Supply Chain GMs/ Chiefs Chief-Improvement Group GM-West Bokaro Chief-M&S(LP) Chief-M&S (FP) Chief-Mech. Maint. Chief-CSD (Bi Monthly) Chief-Energy Management GM-OM&Q Chief-LD#1, BM Chief-LD2&SC Chief-Elect. Maint. Chief-MRO Chief-Safety & Environment GM-Jharia Chief-WRM, LPTG Chief-HSM, CRM Chief-Automation Chief-Strategic Sourcing Chief-Coke, Sinter Iron Chief-MM, Refrac. Chief-FP (Plg) Chief-Spares & Svcs Chief-Raw Matl. Chief-IMTG Chief-LP (Plg.) Chief-FPTG Procurement BE JDC Chief-Geological Svcs. Chief-CRC(W) Chief-EPA & Logistics Divisional/ Comm. Deptt. Councils- MR Meetings Senior Management Chiefs/ Departmental Heads (Chiefs / Heads) Heads/ Sectional Shop Floor Middle Management Heads Employees (Monthly) Sectional Heads (Unit Leader / Manager / Officers)
Abbreviation: BM – Bar Mill; CIO – Chief Information Officer; CSD – Customer Services Division; HR/IR – Human Resources & Industrial Relations; IMTG – Iron Making Technology Group; ITD – International Trade Division; TIL – Tata International Limited; M&S – Marketing & Sales; OM&Q – Ore Mines & Quarry; SS&FI – Social Services & Family Initiatives; TC-TF - Thermal Coal Task Force P 3/9
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
2.7 Nature of Markets Served
The products manufactured by Tata Steel cater to the consumer sectors such as Auto / Auto ancillaries, consumer durables, construction/infrastructure, capital goods, general engineering and railways. Typically 85% of the production is sold in the domestic market and balance is exported. The customer services include application engineering support and visits by customer application managers to provide solutions to the industry.
2.8 Scale of reporting organization Net Sales & Other Financial Indicators
No. of Employees (as on 01.04.02) Rupees Previous Direct – 46,234 Million Year Temporary – 1800 01-02 Rupees Contractors/Partners – 12,500 Million 2K-01 Products Offered (a) Net Sales/Income 76074.8 77594.4 Class of Products Installed Production (1) (2) (b) Total Expenditure 63363.0 60524.4 Capacity (c) Operating Profit 12711.8 17065.3 (Tonnes) (Tonnes) (d) Add : Dividend & Other 856.3 506.1 Total Saleable Steel 3,320,000 3,635,592 (3) Income 3,280,000 3,429,697 (e) Profit before Interest, 13568.1 17571.4 Cold Rolled Coils 100,000 103,669 Extraordinary items & Taxes 100,000 118,871 (f) Less : Interests 3697.5 3766.1 Ferro Manganese & Silico 30,500 31,792 (g) Profit before Depreciation, 9870.6 13805.3 Manganese 30,500 35,594 (4) Extraordinary items & Taxes Welded Steel Tubes 185,000 173,643 (h) Less : Depreciation 5247.5 4922.5 185,000 171,806 (i) Less : Extraordinary items 4623.1 8882.8 Cold Rolled Strips 15,800 - (j) Less : Extraordinary items 2113.1 2858.4 15,800 - (k) Profit before Taxes 2510.0 6024.4 Carbon & Alloy Steel 5,250 3,032 (l) Less : Provision for Taxes 155.0 495.0 Bearing Rings, Annular 5,250 2,584 (m) Less : Provision for Deferred 306.0 - Forgings & Flanges (5) Taxation Metallurgical Machinery - 8,271 (n) Profit after Taxes 2049.0 5534.4 - 5,671 (o) Add : Transfer from 3100.0 - Alloy Steel Ball Bearing 20,500,000 14,628,778 (6) Debenture Redemption Rings 20,500,000 13,999,787 Reserve Bearings 25,000,000 17,623,049 (p) Add : Transfer from Invest- 755.5 - 15,000,000 16,354,827 ment Allowance (utilized) Charge Chrome 50,000 44,059 Reserve 50,000 35,016 (q) Less : Transfer to debenture - 1000.0 Metallurgical Machinery 8,271 Redemption Reserve 5,672 (r) Less : Transfer to Capital 1400.0 100.0 (1) As certified by the Managing Director and accepted Redemption Reserve by the Auditors. 4504.5 4434.4 (2) Including production for works use and for
conversion by the third parties into finished goods (s) Add : Balance brought 2147.6 1889.3 for sale but excluding 5,467.41 tonnes (2000-2001: forward from the previous 44,251.95 tonnes) of CRM products produced year during the trial run period. (t) Balance 6652.1 6323.7 (3) Including semi-finished steel produced 565,588 Which the Directors have tonnes (2000-2001: 646,957 tonnes) and steel appropriated as under, to: transferred for manufacture into Tubes C.R.Strips (i) Interim Dividend on 20.7 122.0 at Company’s Tubes Division 211,050 tonnes Preference Shares (2000-2001: 209,647 tonnes) and steel transferred (ii) Interim Dividend on 1471.1 - for manufacture of Cold Rolled Coils at the Ordinary Shares Company’s Cold Rolling Mill Division 106,165 (iii) Proposed Dividend - 1838.9 tonnes (2000-2001: 90,556 tonnes). (iv) Tax on Dividend 02.1 215.2 (4) Including Tubes used in the manufacture of Tubular (v) Contingency Reserve - 1000.0 Steel Structures and Scaffoldings. (vi) General Reserve 3000.0 1000.0 (5) There is no separate installed capacity. TOTAL 4493.9 4176.1 (6) Including rings transferred for manufacture of Leaving a balance of to be 2158.2 2147.6 Bearings. nd carried forward 2 row of Figures in blue colour are for FY 2K-01.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
BALANCE SHEET AS AT 31ST MARCH, 2002
FUNDS EMPLOYED Rupees Million Rupees Million As at 31.03.2001 Rupees Million 01 SHARE CAPITAL 3679.7 5079.7 02 RESERVES AND SURPLUS 30779.9 43804.6 03 TOTAL SHAREHOLDERS’ FUNDS 34459.6 48884.3 04 LOANS a) Secured 40569.3 41299.6 b) Unsecured 6508.9 5422.6 c) Total Loans 47078.2 46722.2 05 DEFERRED TAX LIABILITY (NET) 13903.5 - 06 PROVISION FOR EMPLOYEE 9895.0 8831.3 SEPARATION COMPENSATION 07 TOTAL FUNDS EMPLOYED 105336.3 104437.8 APPLICATION OF FUNDS 08 FIXED ASSETS a) Gross Block 117424.4 112581.7 b) Less – Depreciation 41987.4 37200.8 c) Net Block 75437.0 75380.9 09 INVESTMENTS 9127.4 8469.2 10 A) CURRENT ASSETS a) Stores and spares parts 3440.0 2394.9 b) Stock-in-trade 6775.9 6822.8 c) Sundry debtors 10736.6 12793.1 d) Interest accrued on investments 01.0 0.9 e) Cash and Bank balance 2191.0 2392.3 23145.5 24404.0 B) LOANS AND ADVANCES 7808.4 7852.1 30953.9 32256.1 11 Less : CURRENT LIABILITIES AND PROVISIONS a) Current Liabilities 16675.5 17123.8 b) Provisions 3396.4 3747.5 20071.9 20871.3 12 NET CURRENT ASSETS 10882.0 11384.8 13 MISCELLANEOUS EXPENDITURE (to the 9889.9 9202.9 extent not written off or adjusted) Employee Separation Compensation 14 TOTAL ASSETS (Net) 105336.3 104437.8 Contingent Liabilities NOTES ON BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
Dividend
Preference Shares – The Board had declared a proportionate interim dividend of Rs.1.48 per share on 14,000,000 8.42% Cumulative Redeemable Preference Shares for the period 1st April 2001 to 3rd June, 2001. These Preference Shares were redeemed on 4thJune, 2001.
Ordinary Shares – The Board had declared an interim dividend on Ordinary Shares @ 40% (Rs.4.00 per share) for the year ended 31st march, 2002. Keeping in view the interim dividend, the Directors decided not to recommend any final dividend. The interim dividend will be paid as follows;
On 367,777,901 Ordinary Shares at Rs.4.00 per share, subject to tax (2000-2001: Final dividend on 367,771,901 Ordinary Shares at Rs.5.00 per share).
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
2.9 List of Stakeholders, key attributes of each and relationship
Procurement of goods and services from external agencies amount to Rs.24.75 Billion per annum. Of the 2,200 suppliers who service Tata Steel’s needs, about a seventh are the vendors who account for 85% of the Company’s total spend.
A list of few customers in the targeted sector and their requirements are furnished in Figure#2.2.
Key Key Main Product Key product requirement Key service requirements Segment Customers Auto (Trucks) Tata Engg., HR for LM/CM Chemical and physical properties Tailor made supplies Ashok conforming to specifications Leyland Cold rolled ASIL, Hero, HR for CR Good surface, consistent Committed delivery of small lot for chains, TPL, ITW MC/HC dimensional tolerances, physical and orders hacksaws chemical properties Cylinder Maurya HR for LPG No. of surface defects, guaranteed Cut to length, delivery at short manu- Udyog, Verny, yield of cylinders per ton of sheet, notice, credit facturers Haldia Formability. Pecision Auto compo- Wheels India, HR for CF Chemical and physical properties Material through EPAs, Tech. nents Kalyani Support, committed delivery Lemmerz, Toyota, Hyundai Auto direct TELCO, EDD & IF Superior surface quality and cleaner Customised delivery support, App. FORD, Maruti, grade CR strip surface Engg. Support (AES) Daewoo, Escorts Appliance Whirlpool, DD, Better flatness, zero spangle Order management, complaint Voltas, OG, Galvanised galvanised sheet handling, App. Engg. Support Samsung CR Distribution Individual GP/GC Better thickness and width tolerance, Distribution Management customer mechanical property through distributors Residential & Gammon, Tata TISCON Mechanical properties, specification Customised length, availability of project DLF, Chevron (Re-bar) as per BIS appearance all sizes construction
Figure-2.2 :Few key customers in targeted segments and their requirements
Figure-2.3 – Key products, suppliers and partners
Key Products Key Supplier / Partner Key Services Key Supplier / Partner Oxygen BOC EPAs Saizer & Frontline Rolls TAYO Tata Ryerson, BMW, POS Hyundai, Usha Martin Refractories TRL Steel R. Pal, Naresh Kumar & Co., G Bihani, Sukesh Enterprises Packaging ITW distribution – CAS Coal BHP DS JAMIPOL Compound
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Tata Steel has a committed workforce of 46,234 Figure-2.4 – Location-wise break-up of personnel (as on 1.4.2002-Figure-2.4) employees (as on 01.04.2002)
Employees are classified as Officers (OPR), Location Total Officers Non-OPR Supervisors and Workers. Supervisors and MD’s Office & Admn. 960 346 614 Workers are organized into an independent Steel Works & 19810 1766 18044 Trade Union (refer Section LA3 also) (Non-OPR) Marketing Mines & Collieries 14341 675 13666 with democratically elected representatives at all Tubes Division 1789 132 1657 locations. Figure-2.1 shows the organizational Rings & Bearing 1286 144 1142 structure. Tata Steel has 1974 engineers, 554 Corporate Services 4997 666 4331 MBAs, 46 PhDs, and persons with degrees in Ferro Alloys 1596 206 1390 Growth Shop 779 129 650 technical areas of relevance to the operations. Human Resource 676 214 462 Contract labour is used in the areas of project Management execution and other activities. TOTAL 46234 4278 41956
The Community & Society within 10-30 km area The villages communities are selected based on around Tata Steel enterprises is taken care by the current level of developmental needs, the organization for the requirements like health interventions and emerging issues e.g. wasteland care, women empowerment, family initiatives, development, irrigation facilities & income vocational training, development of sports & generation. Year wise comparison of various culture and income generation. activities in community shall be furnished from next year.
REPORT SCOPE 2.11 Report Period (e.g. fiscal/calendar year)
1st April 2001 – 31st March 2002 2.10 Contact Person(s)
Mr. Sanjay Choudhry 2.12 Date of most recent previous report
Head Corporate Communication st st 1 April 2000 – 31 March 2001 TATA STEEL
Jamshedpur, INDIA 2.13 Boundary of report
Telephone# 91657 2431142 The report is limited to Tata Steel’s operation in India including Fax# 91657 2425182 Head Quarter, Steel Works at Jamshedpur, Marketing Offices,
Service Centres and retail outlets in India. The performance of Email# [email protected] subsidiary companies and business partners including
conversion agents and external processing agents are not Email# [email protected] included in this report. For next 2-3 years Tata Steel will
continue to report for its own operation in India and
subsequently it plans to report for subsidiary companies also. Mr. R P Sharma The subsidiary companies of Tata Steel are Tata Refractories Head, Environment Management Ltd., Tata Pigments Ltd., Kalimati Investment Company Ltd., TATA STEEL Tata Korf Engineering Services Ltd., Tata Incorporated, New Jamshedpur, INDIA York, Stewards & Lloyds of India Ltd., Tata SSL Ltd., Tinplate
Co. of India, TRF Ltd., Tata Yodogawa Ltd., Neelachal Telephone# 91657 2424125 Refractories, Tata Ryerson & Tata Metallic Ltd. Fax# 91657 2424098
The information encompassing entire reporting entity could not
Email# [email protected] be presented for certain indicators. The scope limitations have
been indicated at the relevant locations. In the future reports
Email# [email protected] these gaps will be progressively bridged.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
2.14 Significant changes since the previous report. Organization has undergone a major restructuring of its management hierarchy from 16 levels to 5 levels, Level-1 being the top management and Level-5 the line managers. With regard to technological changes “F” Blast Furnace was upgraded from 0.6 million ton/annum of hot metal production to 1.0 million ton per annum in the same location. The reporting scope has also undergone the change. All the production units, marketing offices, stockyards, have been included in the scope of the report, while the previous report was limited to Steel Works at Jamshedpur.
Capital Projects st The Continuous Galvanising Line#2 of the Cold Rolling Mill went into commercial production from 1 July 2001. During the year, the Company incurred capital expenditure of Rs.5350 Million. Capital expenditure was restricted to only essential items of replacements / renewals. Work on rebuilding and up-gradation of Blast Furnace “F”, which commenced in Feb. 2002, was completed in May 2002. The capacity of the Blast Furnace, as a consequence, has increased from 0.6 to 1.0 million tonne.
Acquisitions After Tata SSL Limited became a Subsidiary of the Company last year, the Company made two more Open Offers through which its shareholding in Tata SSL Limited as on 31st March 2002, increased to
79.33%. Kalimati Investment Co. Ltd., which is a 100% subsidiary of the Company, holds a further 14.79% bringing the total shareholding to 94.72%.
2.15 Basis for reporting on joint 2.16 Explanation of the nature and effect of any re-
ventures, partially owned statements of information…
subsidiaries… Reporting scope has undergone change as mentioned in This report does not include these 2.14. More over certain indicators like, water consumption entities in its scope. The information are reported on per tonne of crude steel (tcs) basis regarding joint ventures and partially excluding power generation as per IISI guidelines. In the own subsidiaries shall be progressively earlier report it was on per tonne on saleable steel basis included in the future reports. including water consumption in power generation.
REPORT PROFILE
2.17 Decisions not to apply GRI principles…
Generally reported as per GRI guidelines 2002.
2.18 Criteria/definitions used…
GHG protocol guidelines are used for GHG emission reporting. Financial Reports are prepared as per the guidelines provided in Company Law in India.
Monitoring, measurement and calibration is carried out as per relevant Indian standards. Documentation & communication are done as per the requirement of ISO-9001 & ISO-14001.
The norms and procedures prescribed for workplace safety & environment by Ministry of Environment, Ministry of Labour & Welfare (Factories Act) are followed in conducting the business at Tata Steel. These Acts include Water Act, Air Act, Environment Protection Act, Factories Act, Explosive Act, Petroleum Act, Electricity Rules, Workmen Compensation Act, Public Liability Insurance Act, Hazardous Waste Management & Handling Rules, Hazardous Chemicals Manufacturing & Handling Rules.
Details of these Standards, Acts & Rules where relevant are furnished in the glossary (Annexure-VI).
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
2.19 Significant changes from previous years • Assessment whether the Report provides an
in the measurement methods… appropriate representation of existing policies
in the areas of human resources, health, safety, None. security, environment and community
2.20 Policies and internal practices to involvement;
enhance and provide assurance… • Checking of the data stated at indicators EC3,
Economic - quarterly financial audit is conducted EN11, EN12, LA7 and SO1 (where SO1 is by approved auditors. limited to the Income Generation activities of TSRDS) in the Sustainability Report 2001-2002 Environment - the company is ISO-9001 and and whether they are consistent with the ISO-14001 certified. Quality and environment activities in the plant areas for the financial audits are conducted by Internal Auditors half- period and are documented and stated in yearly and yearly by External Auditors. accordance with the guidelines stated under
Society - social audits are conducted once in their environmental and social policies. every 10 years by a Bench of External Auditors The GRI 2002 guidelines provided the basis for the by eminent personalities from judiciary, social independent assurance by organizations and financial institutions appointed PricewaterhouseCoopers. by the Company Board.
The organization is currently implementing On the basis of the work undertaken, OSHAS-18001 Standard for Occupational Health PricewaterhouseCoopers provided independent & Safety Management in all its Units. assurance to this report that stated:
2.22 Means by which report users can obtain “Nothing came to our attention to suggest that the additional information … information cited at indicators EC3, EN11, EN12, LA7 and SO1 (where SO1 is limited to the Income Additional information on Economic, Generation activities of TSRDS) are materially mis- Environmental & Social performance of the stated”. organization can be made available on request
from the contact persons indicated under 2.10. “The internal control and management systems are This report is also available on Tata Steel modelled on international best practices and on Internet Website (www.tatasteel.com) & Tata ISO based quality and environment management Steel Intranet. system”.
2.21 Policy and current practice with regard to In addition, PricewaterhouseCoopers independent providing independent assurance… assurance report brought to our notice some
M/s. PricewaterhouseCoopers (P) Ltd., Mumbai, deficiencies. These would provide the basis for were asked by the Management of The Tata Iron improving the following aspects in our governance & Steel Company Limited (TATA STEEL) to and management systems; and reporting for the provide an “Independent Assurance” to the next reporting periods: st Corporate Sustainability Report for the period 1 st • Review of adherence to social, environmental April 2001 to 31 March 2002. and other sustainability policies by the audit
The scope included: committee of the Board of Directors.
• Review of certain statements and data • Improving data management systems in some
relating to the Tata Steel’s operations and to areas of operations and establishment and
provision of limited assurance in respect of reporting of Measurement and Reporting
these statements and data; Policies for economic, environmental and
• Checking of the internal control system social information.
including monitoring and reporting • Stricter adherence to scope and boundary of procedures and whether it is planned the reporting entity through out the report. expediently to support reliable disclosure in
the Sustainability Report;
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-3
GOVERNANCE STRUCTURE &
MANAGEMENT SYSTEMS
CONTENT INDEX
• Structure & Governance MS02
• Stakeholder Engagement MS09
• Over Arching Policies & MS11 Management System
MS 1/22
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
STRUCTURE AND GOVERNANCE
3.1 Governance structure of the organization, including major committees under the Board of Directors that are responsible for setting strategy and for over-sight of the organization.
3.1.1 A brief statement on Company’s philosophy on Code of Governance
The Company, while conducting its business has been upholding the core values of Tata’s i.e. transparency, integrity, honesty, accountability and compliance to regulatory requirements. The Company remains committed to laying strong emphasis on Corporate Governance (in accordance with the Clause#49 of the listing agreements entered into with the stock exchanges) in all its dealing which is an important instrument for the shareholders’ protection. There is no separate committee on the Board to discharge the responsibility exclusively for environmental and social performance, though the same is monitored through MD’s Balance Score Card (Figure-3.5) and monthly compliance reports submitted to the Board.
3.1.2 Board of Directors
The Company has a non-executive Chairman and the number of Independent Directors is more than one-third of the total number of Directors. The number of Non-Executive Directors (NEDs) is more than 50% of the total number of Directors. None of the Directors on the Board is a Member on more than 10 Committees and Chairman of more than 5 Committees, across all the companies in which he is a Director except Mr. Mantosh Sondhi who is Chairman of six Committees and has since resigned from one of the Committees. The Directors have made the necessary disclosures regarding Committee positions. The names and categories of the Directors on the Board, their attendance at Board Meetings during the year and at the last Annual General Meeting, as also the number of Directorships and Committee Memberships held by them in other companies are given below:
No. of No. of Committee Whether No. of Directorships in Board positions held in attended other public Meetings other public Name Category AGM held companies attended companies on during 19.7.02 Chairman Member Chairman Member 01-02 Mr. R N Tata Promoter 8 Yes 10 3 - 3 (Chairman) Not Independent Non Executive Mr. Keshub Independent 7 Yes 3 6 3 3 Mahindra Non Executive Mr. N A Promoter - No NA NA NA NA Palkhivala Not Independent (Ceased to Non Executive be a Director w.e.f. 19.07.01) Mr. S A -do- 9 Yes - 1 - - Sabavala Mr. Mantosh Independent 6 Yes - 7 5 3 Sondhi Non Executive Mr. Nusli N -do- 8 Yes 7 4 1 2 Wadia Mr. P K Kaul -do- 6 Yes 2 8 2 - Financial Institutions’ Nominee* MS 2/22
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Directors on the Board Continued... Name Category No. of Whether No. of Directorships in No. of Committee Board attended other public positions held in Meetings AGM held companies other public attended on companies during 19.7.02 Chairman Member Chairman Member 01-02 Mr. Suresh Independent 6 Yes 6 2 2 2 Krishna Non Executive Mr. Kumar -do- - Yes 7 3 - - Mangalam Birla Mr. Ishaat Promoter 8 Yes 3 10 2 4 Hussain Non Independent Non Executive Mr. S K Kapur Independent 4 No - - - - Financial Non Institutions’ Executive Nominee*# Dr. J J Irani Promoter 9 Yes 3 9 1 8 (Ceased to be Not MD w.e.f. Independent 21.07.02) Non Executive Mr. B Not 9 Yes 2 2 - 1 Muthuraman Independent Managing Executive Director (w.e.f. 22.07.02) Dr. T Mukherjee -do- 9 Yes 1 8 2 3 Dy. Managing Director (Steel) Mr. F A -do- 4 Yes 1 5 1 2 Vandrevala Dy. Managing (New & Allied Businesses) (relinquished charge w.e.f. 1.11.2001) Mr. A N Singh -do- 8 Yes 2 1 1 1 Dy. Managing Director (Corporate Services)
* Appointed by IDBI as the lead institution
# IDBI has appointed Mr. B Jitender as their Nominee Director in place of Mr. S K Kapur, w.e.f 10th May 2002. Nine Board Meetings were held during the year 2001-02 and the gap between two meetings did not exceed four months. The dates on which the Board Meetings were held were as follows;
1st June 2001, 18thJuly 2001, 30th August 2001, 30th October 2001, 29th November 2001, 24th January 2002, 30th January 2002, 4th March 2002 and 28th March 2002.
The information as required under Annexure-I to Clause-49 is being made available to the Board. The Company did not have any pecuniary relationship or transactions with NEDs during 2001-2002.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
3.1.3 Audit Committee
The Company had constituted an Audit Sub-Committee in the year 1986. The broad terms of reference of the Audit Sub- Committee were to review reports of the Internal Audit Department and discuss the same with the internal auditors periodically; to meet Statutory Auditors to discuss their findings, suggestions and other related matters; to review weaknesses in internal controls reported by internal and Statutory Auditors. The scope of the activities of the Audit Sub- Committee includes the areas prescribed by statute. The Audit Sub-Committee has been granted powers as prescribed under statutory requirement. The Company has complied with the requirements of statute as regards composition of the Audit Committee. The Chairman of the Audit Sub -Committee, Mr. Mantosh Sondhi was present at the Annual General Meeting held on 19th July 2001. The composition of the Audit Sub-Committee and the details of meetings attended by the Directors are given below;
Name of Members Category No. of Meetings attended during the year 2001-2002 Mr. Mantosh Sondhi, Chairman Independent, Non Executive 7 Mr. P K Kaul, Member -do- 7 Mr. Ishaat Hussain, Member Promoter, Not Independent 7 (Chartered Accountant) Non Executive Mr. S M Palia*, Member Independent, Non Executive 3 * Appointed as a Member of the audit Sub-Committee effective from 29.10.2001
Audit Sub-Committee meetings are attended by the Vice-President (Finance), Chief (Corporate Audit), Chief Financial Controller (Corporate) and Representatives of Statutory Auditors. The Company Secretary acts as the Secretary of the Audit Sub-Committee. Eight Audit Sub-Committee Meetings were held during 2001-02. The audit committee of the Board and the Internal Audit Department do not review the compliance with environmental and social policies articulated by the company.
3.1.4. Remuneration Committee
The Company had constituted a Remuneration Committee in the year 1993. The broad terms of reference of the Remuneration Committee are to recommend to the Board salary (including annual increments), perquisites and commission to be paid to the Company’s managing/whole-time directors (MD/WTDs), to finalise the perquisites package within the overall ceiling fixed by the Board, to recommend to the Board retirement benefits to be paid to the MD and WTDs under the Retirement Benefit Guidelines adopted by the Board. The Remuneration Committee also functions as the Compensation Committee as per the SEBI Guidelines on Employees’ Stock Option Scheme. The Company, however, has not yet introduced Employees’ Stock Option Scheme. The composition of the Remuneration Committee and the details of meetings attended by the Directors are given below:
Name of Members Category No. of Meetings attended during the year 2001-2002 Mr. Keshub Mahindra, Chairman Independent, Non Executive 2 Mr. R N Tata, Member Promoter, Not Independent 2 Non Executive Mr. Mantosh Sondhi, Member Independent, Non Executive 2 Mr. S M Palia, Membera -do- 1
Remuneration Policy
The Company while deciding the remuneration package of the senior management members takes into consideration, Employment scenario, Remuneration package of the industry and Remuneration package of the managerial talent of other industries. For the last few years, effort has also been made to link the annual variable pay of senior managers with the performance of the Company in general and their individual performance for the relevant year measured against specific Key Result Areas, which are aligned, to the Company’s objectives. MS 4/22
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
The NEDs are paid remuneration by way of Commission and Sitting Fees. In terms of the shareholders’ approval obtained at the AGM held on 19th July 2001, the Commission is payable at a rate not exceeding 1% per annum of the profits of the Company (computed in accordance with Section 309(5) of the Companies Act, 1956). The distribution of Commission amongst the NEDs is placed before the Board. The Commission is distributed broadly on the basis of Board Meetings and various Committee Meetings attended by the NEDs. Other members of the Board, keeping in mind the greater contribution made by the Chairman at every Board and Committee Meetings of which he is the Chairman, decide the Commission payable to the Chairman. The Company pays sitting fees of Rs. 5,000 per meeting to NEDs.
The Company pays remuneration by way of salary, perquisites and allowances (fixed component) and commission (variable component) to MD and WTDs. Salary is paid within the range approved by the Shareholders. The Board, on 1st April each year, as recommended by the Remuneration Committee, approves annual increments effective. The Board fixes the ceiling on perquisites and allowances as a percentage of salary. Within the prescribed ceiling, the perquisites package is approved by the Remuneration Committee. Commission is calculated with reference to net profits of the Company in a particular financial year and is determined by the Board of Directors at the end of the financial year based on the recommendations of the Remuneration Committee, subject to overall ceilings stipulated in Sections 198 and 309 of the Companies Act. Specific amount payable to such directors is based on the performance criteria laid down by the Board, which broadly takes into account the profits earned, by the Company for the year.
3.1.5 Shareholders Committee
An Investors’ Grievance Committee was constituted on 23.3.2000 to specifically look into the redressal of Investors’ complaints like transfer of shares, non-receipt of balance sheet and non- receipt of declared dividend, etc. The composition of the Investors’ Grievance Committee and details of the meetings attended by the Directors are given below:
Names of Members Category No. of Meetings attended during the year 2001-2002 Mr. Ishaat Hussain, Chairman Promoter, Not Independent, Non Executive 2 Mr. Suresh Krishna, Member Independent, Non Executive 2
Numbers of complaints received from the Investors from 1.4.2001 to 31.3.2002 comprising Non-receipt of dividend/interest warrants, non-receipt of securities sent for transfer, demat queries etc. 30,258
Numbers not solved to the satisfaction of the investors as on 31.3.2002 19
Numbers of pending share transfers as on 31.3.2002 470*
(*Transfers lodged in the last 2 weeks of March 2002 and hence pending as on 31.3.2002.
3.1.6 Committee of the Board
The terms of reference of the Committee of the The composition of the COB and details of the Board (COB) are to approve capital expenditure Meeting attended by the Directors are given below; schemes and donations within the stipulated Names of Members No. of meetings attended during the year 2001-02 limits and to recommend to the Board, capital Mr. R N Tata, Chairman 7 budgets and other major capital schemes, to Mr. S A Sabavala, Member 6 consider new businesses, acquisitions, Mr. Nusli N Wadia, Member 6 divestments, changes in organizational structure Mr. S M Palia, Member 6 Dr. J J Irani, Member 6 and also to periodically review the Company’s Mr. B Muthuraman, Member 5 business plans and future strategies.
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3.1.7 Disclosures
The Board has received disclosures from key managerial personnel relating to material, financial and
commercial transactions where they and/or their relatives have personal interest. There are no materially significant related party transactions, which have potential conflict with the interest of the Company at large. There was no; non-compliance by the Company; penalties; strictures imposed on the Company by Stock Exchange or SEBI or any statutory authority; on any matter related to capital markets; during
the last three years.
3.1.8 Means of Communication
Half yearly reports are sent to each household of shareholders, quarterly results of the company are published in Economic Times & Maharastra Times regularly and were displayed on Tata Steel Website (www.tatasteel.com). The results were also displayed as official news releases and presentation were made to the institutional investors.
3.1.9 Stock Information
Stock information has been furnished in Section-2.8 and the performance Tata Steel’s share in comparison to Bombay Stock Exchange Sensex is furnished below the figure.
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3.2 Percentage of the Board of Directors that are 3.4 Board-level processes for independent, non-executive directors….44% (7/16) over seeing the organization’s identification & management of Independent Directors are those who are neither part of Tata Steel economic, environmental, and nor belong to Tata House. They may or may not have share holding social risks and opportunities. in the organization. The agenda papers along with status 3.3 Process for determining the expertise board members report on economic, environment need to guide the strategic direction of the organization. and social performance including legal compliance are sent in The Board of Directors is guided by organization’s Vision, Mission advance to all the Board Members & Values. The composition of Board of Directors is a mix of the full before meeting for review, time executives and non-executives representing business houses comments and suggestions during and financial institutions, with requisite experience in handling the meeting. The feedback from economic, environmental & social issues. The board members board members is analysed by the regularly review the performance of the organization on these top management and considered for issues. There is no defined criteria or policy to determine the business decision-making. qualification for becoming a Board Member or for reviewing environmental and social risks and opportunities.
3.5 Linkage between executive 3.6 Organizational structure and key individuals
compensation and achievement of the responsible for oversight, implementation, and audit
organization’s financial and non-financial of economic, environmental, social, and related policies. goals
The executive compensation is based on the Organization Structure is furnished at Section 2.3. As mentioned above at 3.5, the oversight and achievement of individuals in the financial and implementation of the economic, environment & social non-financial area. In the beginning of the year policies is provided by management as per the a performance contract is signed by each performance contract signed by individuals with their executive including MD that forms a basis for superiors. This is carried out at different levels e.g. Apex assessing the performance of individuals to BE Council, BE Councils & Departmental Councils as per arrive at the compensation packages. The TBEM. There are programmes for internal and external balance scorecard of MD, which is cascaded audits of the financial, environmental and social policies down to individual, is furnished in Figure#3.5. and performance.
3.7 Mission & Value Statements, internally developed code of conduct
The following policies on various sustainability issues are adopted uniformly through out the reporting entity.
QUALITY POLICY HIV (+) & AIDS CONTROL Consistent with the group purpose, Tata Steel shall constantly POLICY strive to improve the quality of life of the communities it Tata Steel would take measures serves through excellence in all facets of its activities. to prevent the incidence and We are committed to create value for all our stakeholders by spread of HIV and AIDS in the continually improving our systems and processes through innovation, involving all our employees. society. In case of need, the company would arrange to This policy shall form the basis of establishing and reviewing provide counselling and medical the Quality Objectives and shall be communicated across the guidance to these patients and organization. The policy will be reviewed to align with their families. business direction and to comply with all the requirements of the Quality Management Standard.
October 1, 2001 April 17, 2002
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HUMAN RESOURCE POLICY
ENVIRONMENTAL POLICY Tata Steel recognises that its people are the primary source Tata Steel reaffirms its commitment to minimise the adverse impact of its of its competitiveness. operations on the environment. Towards this end, it shall endeavour to; It is committed to equal employment opportunities for • Set sound environmental objectives and targets, and integrate a process attracting the best available of review, as essential elements of corporate management. talent and ensuring a • Install, maintain and operate facilities to comply with applicable cosmopolitan workforce. Environmental Laws, statutes and other regulations. It will pursue management • Conserve natural resources and energy by constantly seeking to reduce practices designed to enrich consumption and wastage. the quality of life of its • Minimise process waste, and promote the recovery and recycling of employees, develop their materials. potential and maximise their • Phase out pollution-prone processes and install state-of-the-art productivity. technology for pollution prevention, and the continual improvement, in It will aim at ensuring environmental performance. transparency, fairness and • Develop and rehabilitate waste dumps through afforestation and equity in all its dealings with its landscaping. employees. • Develop an environmentally aware workforce. Tata Steel will strive continuously to foster a climate This policy has been communicated to all employees of Tata Steel and shall of openness, mutual trust and be made available to the public and interested parties on demand. teamwork.
October 1, 2001 October 1, 2001
SAFETY POLICY ALCOHOL AND DRUGS POLICY
Tata Steel believes that a healthy worker is Tata Steel believes that the loyalty and commitment the surest basis for its continued success. of its employees depend upon the quality of life they Tata Steel, therefore, is committed to the task are offered at work and at home. of ensuring the safety and safeguarding the We recognize that indiscriminate use of alcohol and health of all its employees. drugs is injurious to the wellbeing of individuals, their Importance will be given to continuous training families and the community as a whole. We for promoting safety consciousness among all acknowledge that the misuse of these psychoactive employees’ representatives will supervise the substances is a major health and safety hazard. Company’s safety measures. Tata Steel is therefore committed to creating an Within his area of responsibility, everyone will alcohol and drug-free environment at the work place. be accountable for; This would be achieved through the involvement of all
employees and the Joint Departmental Councils in spearheading appropriate initiatives. The initiatives • Establishing a safe and healthy would include; work environment. • Ensuring compliance with mandatory safety and health • Raising awareness, through the dissemination of information, education and requirements. training and by promoting healthy life styles • Proper maintenance and orderly among our employees and their families. housekeeping, to control the risk of • Motivating those employees who have an damage to plant and equipment. alcohol/drug problem, to seek assistance, • Insisting on safe work procedures while maintaining confidentiality about such being followed by employees, cases. contractors and visitors. • October 1, 2001 October 1, 2001
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Implementation – The strategic goals of the organization are derived from Vision, Mission, Value, Policies and Code of Conduct (Refer Annexure-II) of the Organization. These goals as indicated in MD’s Balance Score Card (Figure#3.5) deployed across the organization.
3.8 Mechanisms for shareholders to provide recommendations or direction to the board of directors.
The minutes are prepared for proceedings of Annual General Meeting. These minutes include the suggestions, comments and feedback from the shareholders. The concern of shareholders are discussed in the Board Meeting and after prioritisation of these concerns, management integrates the same in business decision.
STAKEHOLDER ENGAGEMENT
3.9 Basis for identification and selection for major stakeholders.
The key stakeholders of the organization are those who are affected by its products, services and activities or those whose concerns can affect the performance of business. The identification of stakeholders is derived from the vision of the company, which states that all the efforts are directed towards delivering certain values to the customer, the community and the nation. Thus the total stakeholder base of the company encompasses Shareholders, Financial Community, Customers, Media, Community and the Employees as presented in Figure#3.1 in Section 3.10. At Tata Steel the stakeholders are identified for most of the Key Enterprise Processes explained in Section-1.1 and then their concerns are integrated into strategy map (Figure-1.4) that forms a basis of finalization of objectives and targets for implementation. The prioritisation of the stakeholders and their concerns flows from Tata Steel’s strategy map refer (Section-1.1) and MD’s Balance Score Card as explained in Figure#3.5.
The Tata Group Code of Conduct states- “The Tata Group honours the information requirements of the public and its stakeholders. In all its public appearance with respect to disclosing company and business information to public constituencies such as the media, the financial community, employees and shareholders, only specifically authorised directors and employees shall represent a Tata Company or the Tata Group. It will be the sole responsibility of these authorised representative to disclose information on the Company”. The feedback received on disclosure of information by the authorized representatives is used as input to the strategic planning process.
3.10 Approach to stakeholder consultation reported in terms of frequency of consultations by type and by stakeholder group.
Approach to stakeholder consultation and the frequency of the consultation is furnished in Figures-3.1 & 3.2.
Stakeholder Forum for Assessing Requirements, Communicating Directions & Frequency Receiving Feedback Shareholders Annual General Meetings; Annual Quarterly and half-yearly reports to shareholders; As per plan Updating major shareholders (LIC, UTI); Shareholder Relations; Meets, Investors Survey Customer Customer Week; MD’s conferences with customer groups worldwide Annual Visits to Customer & Customer Visit Report As per plan Learning from Field Failures, Customer Satisfaction Survey Quarterly Suppliers Vendor Dialogues Twice/Year Meeting with Key Suppliers As per plan Vendor Meet & recognition, Suppers Satisfaction Survey Once a year External Public/ Govt. Meetings with Govt./Steel Ministry/ Trade Bodies, Industry Association, Regularly through meeting / NGOs, Ministry of Environment & Forests etc. publications Community & Social Senior Citizens Forum Quarterly Dialogue with Officers’ Wives Twice/Year Uday Project in villages, Joint Community meeting As per plan
Fig. 3.1-Fora and formal two-way management stakeholder communications
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Communication/ Forum Freq. Chaired Attended By Issues Discussed No./Yr By Senior, General & Ladies 4 to 6 MD/ Departmental Heads and Vision, values, empowerment, innovation, Dialogues, MCM, BE Councils DMDs/ Officers continuous improvement, performance. VPs Dialogue with Union Committee 3,6,2 MD/ VP(HRM), Elected Union Performance expectations, values, ST/LT Members (JCCM, JWC, and DMDs/ Representatives (over 300+ directions, customer services, market JDC) VPs together) conditions, production Departmental Communication 12 Chiefs/ All Officers & Supervisors of BE, improvement, learning, training, Meeting Heads the department customers’ needs BE Facilitators meet 6 MD BE Facilitators of each Developments in BE, innovative ideas, department launch of new initiatives Joint Works Quality Committee 6 EIC’s Union Committee Members & 5S & QC activities, safety, ergonomics, Management health, EMS Figure-3.2 - Fora for two-way communications with employees
The investor survey, customer satisfaction survey, employee satisfaction survey and community need analysis are undertaken periodically and the inputs from these are used to prepare balance score card which is finalized by March month of every year for implementation with effect from 1st of April.
3.11 Type/Nature of information generated by stakeholder consultations.
As explained in figure 1.2 in Section-1 the following information is generated by stakeholder consultation/ engagement;
• Shareholders essentially provide a feedback on the overall performance of the firm and its implications as regards market capitalization and creation of shareholder value. During the year, the Company launched its Investor Care Programme under which it conducted an investor survey with the objective of finding out the profile of the Company’s Investors mainly shareholders, to serve as a platform for the shareholders to express their opinion, views, suggestions, etc., to understand the influencing factors in their investment decision making process, to gauge the communication gap, if any, and to build and strengthen the relationship between the Company and its shareholders. • Customer engagement provides information essentially on the user needs; need satisfaction and product quality and functionality. Customer meets were organized for key products at Jamshedpur during the year. • Supplier engagement aims to create win-win collaboration between Tata Steel and the suppliers who are increasingly being seen as business partners rather than suppliers. The information generated during supplier engagement essentially focuses on identifying areas with conflicting goals and more specifically pertaining to payment, information on material rejects related issues. • External Public: The meetings with Government, Steel Ministry, Environment Ministry, Trade Bodies are aimed at understanding the requirement under statutes related to steel and allied business. The new legislations/ordinances are analysed and incorporated with business decision during strategic planning. This also includes the meetings with Factory Inspector, Labour Commissioner, Police, District Administration, State Electricity Boards, Electrical Inspector, and Boiler Inspector etc. • Employees: The communication channel with employees at different levels and the issues discussed are given in Figure#3.2 above. The information likes civic amenities in the town, hospital services, water supply and electric supply, education, etc. received from the employees during the dialogues and discussions is used in business decision-making process. • Society: The Managing Director carries out the quarterly dialogues with senior citizens of the Town and half yearly dialogues with the Officers’ spouses. In addition, volunteers from Tata Steel Rural Development Society survey various villages to assess the needs of the villages as regards their development. Software is used to map the demographic profile of various villages around Jamshedpur. The discussions with village population about strengths and weaknesses in their system are superimposed on the profile in the software and in consultation with the villagers the developmental plans are drawn.
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3.12 Use of information from stakeholder engagements
The feedback received from shareholders is often manifested in the market capitalization and share price performance of the firm. This feedback forms one of the significant inputs to the strategic plan development and the consequent strategic objective setting, as is evident in Tata Steel’s strategic objectives and plan outlined in MD’s Balance Score Card (Figure#3.5). The findings of the Investor Care Survey indicate that the Company’s shareholders are satisfied with the investor service provided by the Company. The Annual Report and the newspapers are still a popular source of information on the Company. The small shareholder is a responsive and loyal audience and also information-sensitive. The Web is a growing medium of information for the small shareholder.
The inputs received from customers form the basis for product improvement and products & services development initiatives, necessary for customer retention, market penetration and development. Secondly but perhaps more importantly customer engagement provides an indication of the emerging demand scenario and the likely price sentiment. This is a necessary input to development of the short and medium term business plan.
The information generated during supplier engagement essentially focuses on identifying areas with conflicting goals such as payments, material rejection information etc. This has a bearing on working Capital Management and inventory management primarily. The feedback is also used to finetune the vendor rating and evaluation procedure.
Majority of the shareholders believe that the Company information will help tremendously in investment decision-making and would like periodic information from the Company. The Company proposes to use the findings of this survey and take such steps as may be necessary to fulfil the expectations of its shareholders.
The feed back from these stakeholders is inherent in the performance indicators like, Customer Satisfaction Index, Employee Satisfaction Index, and Corporate Citizenship Index as explained in Figure-1.2 under Section-1.1. Some performance indicators developed and included in this report directly as a result of feedback on this engagement are furnished in MD’s Balance Score Card as explained above.
The feedback received from the villagers is used to plan for their development in the areas of forestry, irrigation, women empowerment and health & hygiene.
OVERARCHING POLICIES AND MANAGEMENT SYSTEMS
3.13 Explanation of whether and how the precautionary approach or principle is addressed by the organization.
Precautionary approach is the underlying spirit of every policy or guideline formulated at Tata Steel. This is indicated in the Tata Code of Conduct, which states under National Interest (Clause#1) that ‘it shall not undertake any project or activity to the detriment of the Nation’s or those that will have any adverse impact on the social and cultural life patterns of its citizens’
Further, Tata Steel commits itself to providing a safe and healthy working environment and preservation of the environment of the territory it operates in. It shall be committed to prevent the wasteful use of natural resources and minimise any hazardous impact of the development, production, use and disposal of any of its products and services on the ecological environment.
The essence of these policies is that the merit of every activity, project or process proposed is evaluated besides its financial performance, on environmental and social performance also before adoption. Hence, only those proposals are selected which ensure compliance with these policies, thereby perpetuating the precautionary principle. MS 11/22
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3.14 Externally developed, voluntary economic, environmental, and social charters, sets of principles, or other initiatives to which the organization subscribes or which it endorses.
Tata Steel is a signatory to the United Nations Global Compact (in 1998) and abides by its 9 principles. The principles of UN Global Compact address Human Rights, Labour Rights and Environment and have been included at Annexure- I.
Tata Steel is also a signatory to the Tata Group’s Code of Conduct (in 1997). The salient clauses of the code of conduct pertaining to National Interest, Competition, Equal Opportunity Employment, Health, Safety and Environment, Quality of products and services, Corporate Citizenship, Public Representation, Ethical Conduct, Regulatory Compliance and political non-alignment have been included at Annexure – II. The mandate for COC has been furnished in Annexure-V.
Tata Steel is a signatory of CoRE (Corporate Round Table on Environment and Sustainable Development) Charter initiated by Tata Energy Research Institute (TERI) (in 1999), New Delhi based on the guidelines provided in International Chamber of Commerce Charter on Sustainable Development. Details of CoRE Charter are given in Annexure-III.
The requirements of these are integrated in business through various tools adopted by Tata Steel such as ISO-14001, ISO-9001, OSHAS-18001, Corporate Sustainability Management System and Tata Business Excellence Model and are reflected in MD’s Balance Score Card given in Section 3.19.
3.15 Principal memberships in industry and business associations, and / or National / International advocacy organizations.
The table below illustrates some of our ongoing partnership projects in collaboration with other NGO’s, Industry Association/Organizations.
Organizations / NGOs Area of Partnership The Global Business Council (i) Preventive & Promotive activities (ii) Curative & rehabilitative activities (iii) HIV/AIDS London Adopt East/West Singhbhum for conducting AIDS awareness. The Global Compact of the United To promote good corporate practices in the areas of Nations (i) Human Rights (ii) Labour (iii) Environment IISI Brussels, Ministry of Life Cycle Assessment for Steel Sector and issues related to steel business Environment Forests New Delhi like Quality, Technology, Markets, etc. UNIDO, Confederation of Indian Water pricing for resource conservation Industry EPIA, USA Adolescent Reproductive Health Project called SAHAS. CARE International, USA To promote safe motherhood and infancy to reduce IMR and child mortality rate to less than 5 years of age (CMR <5) in 162 villages. UNICEF WATSAN (Water and Sanitation Project) that will cover 100 villages. Sir Ratan Tata Trust Rehabilitation and reconstruction work for the Orissa Cyclone victims. The Calcutta Samaritans Running of a De-Addiction Centre at Baridih. CII/CIDA Implementation of Corporate Sustainability Management System CII, FICCI, ASHOCHAM, ICC Market and business related issues.
3.16 Policies and/or systems for managing upstream and downstream impacts.
Performance of supplier and procedure for monitoring:
The Supply Chain Division of Tata Steel does not monitor the economic performance of vendors, but confidential information is taken from the vendor’s various customers and bankers. Only after receipt of the confidential report and if found to be satisfactory, the vendors are registered.
As a step towards understanding the economic performance of the vendors, plans are on the anvil for analysis of the audited “balance sheet” for last three years for new vendor registration cases. However, this is yet to be formalized. MS 12/22
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Further, Tata Steel is in the process of incorporating evaluation of vendor’s quality, Environmental and Social performance into the vendor evaluation, registration and procurement under Tata Business Excellence Model framework mechanism.
In case of Social Organizations and Small Scale Industry units, raw materials are issued to the vendors on a “conversion” basis for the supply of finished goods, spares and consumables. Supply Chain Division also makes the efforts towards expeditious clearance of their bills.
Moreover, the vendor evaluation in its current form focuses on compliance with labour laws as regards vendor’s social performance.
Environmental & Social programs for contractors:
Stringent procedures have been detailed under ISO14001 and works safety policy guideline for contractors, including strong punitive actions for defaulters. Such norms and guidelines are communicated to all the contractors in many forums. Top Management like Chairman, General Safety Committee, General Managers, Chief of Supply Chain Division and other Senior Executives of Tata Steel also discuss these with them. Not only this, all new “entrants” from the contractors are taken through a Safety and Environment Induction training without which gate passes are not issued to them for working inside the Works premises. The procedures for monitoring of contractor/supplier compliance with Labour Laws during the reporting period are given below;
Procedure for monitoring contractor/supplier compliance with labour laws: Stage of monitoring Adherence to the laws of the land Frequency of compliance During Vendor Sales Tax Registration Number (State & At Registration stage for vendors (both Registration Central), for suppliers and contractors) Provident Fund Code (for all service providers), Excise Registration Number, PAN Number, Employees State Insurance During dealing with • Vehicle Registration papers, Road tax • Random checks by Security/ Tata Steel papers, Driving license for drivers & Departments for vehicles plying to Pollution Under Check Certificate. and fro works • Non submission of Excise Duty gate Passes • Deduction by Accounts for specific • Specific cases of violation as pointed out by cases Provident Fund Commissioner, Income Tax • Details furnished on case to case Authorities, Sales Tax Authorities and basis on demand Excise Authorities, Police etc • Handled only as exceptions • Checking all the cases, all the time and for all vendors
Nature & location of outsourced operations:
The Supply Chain Division of Tata Steel deals with all inbound and outbound supplies of goods and services. The service providers include both indigenous and foreign sources including government/semi government agencies. The details on nature and location of inflow and outflow of goods and services are as under:
Nature of outsourced operations Location (not exhaustive list) Inbound supplies of goods like Mechanical and Electrical spares, Jamshedpur & Kolkata (majority) , Mumbai, Process, Operating and General Consumable Bangalore, New Delhi, Chennai etc. Inbound supplies of services Jamshedpur (majority) Outbound supplies of goods and services Jamshedpur & Kolkata (majority) Procurement of Raw Materials Various parts of the country External Processing Agents Jamshedpur and various parts of the country
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Product & Services Stewardship Initiatives
All Units of Tata Steel are certified to ISO-9000 and ISO-14001. Life Cycle Assessment is carried out from cradle to gate for all steel products to systematically analysis the inputs and outputs which can have adverse impact on environment and society. Targets are set as a part of annual business plan to continually improve the environmental and social impacts of our products, services and activities through next operating practices and technological intervention. In the down stream operations (supply of steel to stock yard and customers) Tata Steel recycles the wooden and structural supports used during shipment. On experimental basis the use of supports made of coir-board, in place of wood has also been started during the year.
3.17 Reporting organization’s approach to managing indirect economic, environmental, and social impacts resulting from its activities.
In view of increasing environmental and social consciousness and activism, positioning of the Brand, as a responsible corporate citizen is a minimum requirement to create a loyal and delighted customer base. Tata Steel envisions serving the nation through sustained and profitable operation.
A large base of small-scale ancillary industries as well as the surrounding rural community in many ways depends on the activities of Tata Steel. Economic health including financials of these small-scale industries and contract firms are improved through partnership and collaborative arrangement with the company for providing goods and services. Tata Steel’s actions indirectly influence the economic value creation; enhance self-reliance and overall quality of life of the surrounding rural community through several initiatives in the areas of income generation, empowerment and health and hygiene. Some of these highlights have been given in section under Social Performance Indicators.
3.18 Major decisions during the reporting period regarding the location of, or changes in, operations.
During the year up-gradation of “F” Blast Furnace from production capacity of 0.6 million tonne per annum to 1.0 million tonne per annum completed. Decision taken for installation of Electrolytic Cleaning line of capacity 500,000 tpa in Cold Rolling Mill Complex to improve cold rolled sheet quality. During the reporting year no unit has been closed, divested or relocated. The construction of new slime dam at Noamundi Mines was also started during reporting period.
3.19 Programmes and procedures pertaining to economic, environmental, and social performance, include discussion of:
Sustainable development is about adding value to our products and services with focus on customers, shareholders, employees and local community in which we operate and more widely to regional and national development. Our Policies, Statement of Purpose, Vision and Mission statements are deployed through a well-structured and defined business model called Tata Business Excellence Model (TBEM). These statements act as guiding principles for development of organizational structure and action plan with clear- cut delineation of responsibilities and authorities. Sustainability concerns are built into the model through ‘Leadership’ that is founded on Tata Values, Code of Conduct, Policies and Guidelines.
Business Purpose / Mission
Envisioning Tata Values Code of Conduct Continuously Developing Shared Strategic plans TBEM Core Concepts Improving the process Leading By example
Evaluating Results & Leadership system
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Planning & Management System
The top management shares the vision with all employees of the organization through channels such as dialogues, Union Management meetings and Joint Departmental Councils (JDC) and other forums. The leadership system at Tata Steel is organized in Apex Teams (Quality Councils, Committees on HRD, IT, R&D and others). It is led by the Apex Quality Council and the strategic directions set by it are translated into actionable drivers and cascaded down to the operational levels through the Quality Councils / Quality Sub Councils / Departments. The leadership system is deployed through review of organizational performance (Score Cards) and initiating corrective action and/or setting stretch targets with a focus on achieving business objectives. Management goals and objectives are summarised in MD’s Balance Score Card (Fig.3.5) which is arrived at based on issues given Section 3.7, 3.11, 3.12, business results and various charters signed by the organization.
The leadership system is itself amenable to improvement. This is based on the feedback received from employees (Employee Satisfaction Index), Customer (Customer Satisfaction Index), TBEM assessment, CII-EXIM assessment etc. The feedback from the 360-degree appraisal process is also used to improve the leadership style.
Deployment of Company’s Strategy
Corporate Philosophy : Mission, Vision, Values
Corporate Strategy (Strategic Goals)
MD’s Balanced Score Card
Council’s Strategy, Objectives, Key Performance Measures (Score Card)
Sub Councils’ Strategy, Objectives, Key Performance Measures (Score Card)
Departmental Goals & Key Performance Measures (Score Card)
Develop AQUIP, Prioritise improvement activities / Personal KRA’s linked to Goals / projects linked to Goals / KPMs KPMs
Organization Management Structure for Economic, Environment & Social Commitment
MEETING SCHEDULE POLICY APEX QUALITY COUNCIL VISION MISSION BIMONTHLY (Members-MD, Dy.MDs, EICs. STRATEGIC OBJECTIVES
BIMONTHLY QUALITY COUNCIL (Members-DyMDs, EICs, Divisional COUNCIL Chiefs OBJECTIVES
QUALITY SUB COUNCIL BIMONTHLY (Members- EICs, Divisional Chiefs, SUBCOUNCIL Departmental Heads OBJECTIVES
MONTHLY MANAGEMENT REVIEW AT DEPTT. GOALS DEPARTMETNS (Members-Departmental Heads AQUIP
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Management System
Processes to assure business performance:
• Design of products/services – The design of products/services is driven by customers’ needs, social and environmental considerations. • Design of production and delivery processes – The design of production and delivery processes are based on the Technical Delivery Condition, which are translated and documented in specific process charts. • Co-ordination – These processes are coordinated by Customer Service Department (CSD) that is an interface between Marketing & Sales and the Works. • Supplier Processes - Since purchase of goods and services accounts for approximately 50% of Tata Steel’s expenditure, a concerted attempt to add value to customers has been undertaken by reengineering supply chain management with M/s Booz Allen and Hamilton.
Process performance:
• Daily collection and analysis of data is done to ensure product quality and consistency. • The PQI captures the improvements made with regard to consistency and improvements in the chemistry and mechanical properties of the steel products. • Process consistency is also ensured through ISO-9000 and TS-13004 Quality Systems. • Total Operational Performance (TOP) programme aims at detailed analysis of the baseline performance of the processes and identification of the gaps with benchmarks. Taking up improvement projects bridges the gaps. ABC analysis of the cost influencing factors of key processes has been undertaken. • Learning acquired in one area is shared with and deployed in other areas as well.
Human Resource Focus:
The HR processes have improved performance orientation and have further aligned and integrated with strategic objectives. Tata Steel continuously injects fresh talent from all over the country, from the business schools and technical institutions into the organization through its cadre based recruitment schemes to retain its cosmopolitan nature. Human Resource Management puts strong focus on;
• The company has institutionalised the concept of Total Customer Satisfaction, Internal Customers– Supplier Chains across the organization by MOU’s between suppliers and key customers. • Continuous improvement is targeted through, employee involvement in cross-functional teams, Quality Circles; divisionalization with profit centres with full autonomy is an embodiment of organization wide empowerment. • Flexibility and rapid response is achieved through multi-skilling, cluster manning, Business Process Re-engineering on supply chain, flatter organizational structure and innovative reward and compensation schemes. • Trade Unions are engaged in decision making at all levels from Top Management to shopfloor as shown in Figure#2.1.
Employee development
• Safety is a high priority area. Several movements to inculcate a culture of safety have been practiced, but the Company needs to do more to prevent accidents and improve its safety record. • The Technical Education Advisory Committee guides employee development and training in line with strategic goals of the company and long-term objectives. The in-house training centres impart majority of the training programmes. (Technical Institute & Management Development Centre).
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• Employees are also deputed to other organizations and training centres in the country and abroad for specialised training. • Officers are trained into business managers through special general management programmes such as at CEDEP, France.
For further details on employees please refer LA9, LA16 & LA17 under Section on Social Performance.
Creating an atmosphere to help achieve a world class workforce:
• A variety of compensation and recognition systems such as special increments, persons of the Month, Quality awards have been instituted. • Numerous state-of-the-art communication channels enable interaction and information / skill sharing across the organization. • Employees are continuously educated on preventive health care and hygiene, alcohol and drug abuse, HIV & AIDS. • Occupational Health Services besides creating awareness on occupational hazards also conduct general health check-ups. • To enhance employee motivation and satisfaction, a number of facilities are provided by the Company like, subsidised accommodation, subsidised electricity, free water, free medical treatment, free schools for wards, recreational clubs, fair price shops etc.
Supplier Relationship
Suppliers are classified as partners, preferred and normal. It is with the partners and preferred suppliers that Tata Steel has entered into long-term partnerships that are aimed at continuous enhancement of value along the supply chain.
• E-procurement has been introduced. Tata Steel has re-engineered the supply chain (inbound and outbound) with the help of BAH. This has improved procurement cost, cycle times and responsiveness. • New best-in-class practices, such as commodity studies, have enabled the Company to revamp and modernise its supply chain. • Tata Steel requisitioned IMRB to do a supplier satisfaction survey during 2000-2001, the first company in India to do so.
Responsibility towards the Public / Community:
Tata Steel in keeping with the Group Purpose, its commitment to various codes and articulated policy position incorporates the following as central to its social responsibility.
• Meeting regulatory and legal norms as a minimum. • Ethical behaviour is promoted through regular communication, and commitment to Code of Conduct. • Social audits are conducted periodically to ascertain the effect of our products/processes and services on society followed by corrective actions. • Working towards ISO 9001, ISO 14001, OSHAS 18001 and CSMS so as to develop management systems for aspects that affect business. • Strengthening and supporting the community in a number of ways like maintaining the city of Jamshedpur, providing medical treatment at low cost to employees and at nominal cost to non- employees at Tata Main Hospital, organizing eye camps, family planning, immunization and other camps, encourage sports and youth development and participating in social programmes in the villages.
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• In order to monitor Tata Steel’s role towards the community, MD’s Balanced Score Card includes a “Corporate Social Responsibility Index” comprising measures related to Health, Hygiene and Environment, which are deployed by the concerned departments. Environment Related Processes:
Figures-3.3 & 3.4 give details of the activities related to societal responsibility and community support.
Figure-3.3 Societal Responsibility Activities Societal Responsibility Type Key Strategic Action Plans Supported Practices Measures Targets Environmental, Health & Safety Environmental, Health & Safety Integrated with EHS Compliance to 100% Improve the quality of life Management (ISO-14001) & norms OHSAS-18001 Legal Emergency Preparedness Integrated with EHS Compliance to 100% Quality of life environmental norms/ sustainability documented system Ethical and Good Corporate Governance Supplier Interface MOU, COC Spread of Partnership COC Public Conduct LCA, CSMS, Social CCI 10 out of Improve the quality of life Audits, Partnering 10 with NGOs Product/Service/Risk Interaction with community and Communication No. of Once in Improve the quality of life, society for capturing their concerns forums e.g. Senior meetings a quarter partnership with society Citizens forum, joint community meeting Operations Risk Environmental, Health & Safety, Awareness No. of As per Quality of life and EHS sustainability Education Sessions programmes, Auditors programmes plan programme
Figure – 3.4 Community Support Activities Types of Support Support Activities Description Extent of Support Strategic Activities Organization Senior Leaders Action Plans Benefiting Educational Schools for the employee children, libraries, Society around DMD (CS) Service to support participation in seminars Tata Steel society Community Creation of infrastructure, Medical services, Rural Society in an DMD (CS) / GM Service to Services, & Tribal services, Domestic management around Tata (Town / Head society Participation programmes, women empowerment, income Steel (Social Services & generation Family Initiatives) Recreational Infrastructure for sports, games, club activities, Society in an DMD (CS) / GM Service to Activity, libraries, gymnasiums, Adventure foundations, around Tata (Town)/ Chief society Sponsorship parks and gardens, zoo, Steel (Sports) Community Health Civic amenities, health care, education, family Society in an DMD (CS) / GM Service to Care initiatives, public health, vector control, AIDS around Tata (Town) / Chief society awareness, Steel (Sports) Cultural Events, Tribal cultural shows, Gramshri Mela -do- -do- -do- Subsidies Head (SS&FI) Drug Prevention, Running a de-addiction centre, AIDS prevention Society in and DMD(CS)/GM Service to AIDS Awareness/ programmes around Tata (Medical Services) society Training Steel Professional SPPE, St. John’s Ambulance Brigade, BIS, JMA, Society in and Senior leadership Service to Society AIWC, IIM, CII, FICCI, ASSOCHAM, ICC, around Tata society Membership Steel
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Environmental related processes
Tata Steel has adopted Environmental Management System (ISO-14001) to manage its environmental impacts and performance. The EMS includes all aspects associated with products, services and operation as shown below;
Key Practices Legislation Activities Risk Associated Environ-mental Air Act 1981 Stack emission monitoring Work area environment Air pollution monitoring Ambient air quality -do- Water Act 1974 Measurement and analysis of effluent water Water pollution
-do- EP Act 1986 Noise level measurement Noise pollution Waste Utilization EP Act 1986 Recycling / reuse of waste Land/water pollution, health Disposal Solid waste disposal hazard Bio-medical waste Resource EP Act 1986 Reduction of specific raw material consumption. Depletion of natural resources, conservation Water consumption. Energy consumption cost over-run Env. Pollution Legal comp. EP Act 1986 Submission of environment compliance report Penalty/ closure of defaulting units Water Purification Water Cess Act Payment to statutory authorities. Legal action & Supply 1977 Legal compliance EP Act 1986 Filing of returns & assessments. Legal action
Tata Steel has improved its compliance towards safety and environmental requirements of the importing countries by availing the services of the world-renowned company SGS India Limited to oversee export shipments. Risks associated with current and the R&D and actions taken to minimise or eliminate the same at the product design stage itself evaluate future products vis-à-vis public concerns. Public concerns associated with new projects are addressed in the risk analysis done for each project. To assess the risks to society and environment and to incorporate sustainability concerns in corporate strategy, Tata Steel has undertaken LCA (Life Cycle Assessment) under the aegis of Ministry of Environment and Forests. Furthermore, “Carrying Capacity” of Jamshedpur has been carried out by NEERI, which serves as a blue print for environment friendly development of this region.
The communication systems with regard to management system explained above are taken care through quality management system and environmental management system of the organization. The review process is four tier i.e. Apex Business Council level review – once in six months; Business Excellence Corporate Council – once in three months; Business Excellence Council – once in two months; and Departmental/Divisional Councils – every month. The objectives & targets against economic, environmental and social performance form part of departmental key performance measures that are reviewed at all the three levels as per the frequency given above. The key performance measures of the department are further cascaded down to individuals in the form of Key Result Areas that becomes the responsibility of the individuals.
Approach to Social Development
• Leadership & Policy Support: The management has adopted the Article of Association on social responsibility. A draft social policy has been prepared during the reporting period for discussions and finalization • Strategy on Corporate Social Responsibility: The Company has annual programmes as per the Tata Council for Community Initiatives (TCCI) Guidelines. The company has a matrix of its competencies stating the exact possibilities for action. • Allocating resources & system of accounting: The company recognizes that social expenditure is a developmental cost and records it under a separate account head. Social expenses are distinct from employee welfare. • Assigning key responsibilities: The management has key persons deployed for this work and its management representative has annual goals by means of KRAs.
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• Communication strategy: To keep employees and public at large informed about company’s work on social responsibility, the company publishes its reports through newsletters, in-house magazines and the Directors’ Annual Report. • Volunteering: The company has instituted a scheme for encouraging volunteers. • Documentation: The Company documents its work methodically
Tata Steel’s subscribes for Tata Council for Community Initiatives guidelines. The declaration of the council on social responsibility made on 14.12.99 is presented below.
The community is central to the core values we adhere to in the Tata Group. Tata Community programmes aim at building trust and improving the quality of life. Tata programmes facilitate sustainable change. We believe that community gives us valuable opportunities to learn. Commitment to social responsibility is explicit in every Tata Company. We net work through our core competence to empower communities. Tata volunteers are committed to the spirit of service.
Risk Management
• Steel is a commodity whose fortunes are closely intertwined with the business cycles of the economy. During the year, apart from stringent cost-cutting measures, the Company adopted a flexible product-mix to suit market conditions, by increasing the production of Longs, which had better demand and price stability. The Company’s efforts to differentiate some of its products by “branding” have met with some success. Sales of “branded” products, which fetch a premium in the market, have increased to 9% from 5% in the previous year. In view of the trade barriers in some of the existing markets, the Company has developed new markets for its exports.
• The global steel market has never been as integrated as now. The domestic market will be more competitive, as import during on steel are brought down further to 15% during the next three years from the present levels, to conform to WTO requirements. The Government took one more step in this direction in the last Union Budget, by reducing basic customs duties of cold rolled sheets from 35% to 30%. Expansion of the range of taper roller bearings is also planned after non-compete agreement with M/s. Timken India expires in March 2003. Entry into the export market is also envisaged through M/s. Tata International Limited network and affiliates of other international majors.
st • As on 31 March 2002, the long-term debt-equity ratio was 0.86:1 (before adjusting for provision for deferred tax), as compared to 0.87:1 in the previous year. Foreign currency borrowings are restricted to about 20% of total long-term loans to finance capital goods/services. Despite being largely unremunerative, one of the main reasons for promotion of exports by the Company, apart from the Country’s need for foreign exchange, has been the fact that the hard currency earnings provides a hedge to its foreign currency liabilities. Derivatives are used to hedge risks and not for any speculative purposes. The Company has a Credit Control Committee, which formulates policy guidelines, and monitors credit levels. A special Task Force has also been set up to recover overdue credits.
3.20 Status of certification pertaining to economic, environmental, and social management systems.
All units of Tata Steel are ISO-14001 (except Town Division and Jharia, which is advanced stage of certification) certified. Units, which cater the requirement of external customers, are certified to ISO-9001- 2000 and other departments/sections, which have internal customer focus, are certified to TS-13004 equivalent to ISO-9001. During the reporting period, Cold Rolling Mill was certified to ISO-14001 and pre- certification of Town Division completed.
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Figure#3.5 - MD’s Balanced Scorecard for (2001-2002)
Strategic Strategic Strategic Measures Unit of Actual Targets Benchmark/ Strategic Initiatives Goals Objectives Measures 01-02 01-02 02-03 03-04 comparatives Create Improve Existing Business Posco ♣Replace costly debt with cheaper Wealth shareholder value 1a. EVA spread* ROIC- -8.12 -0.85 -2.78 -2.09 borrowings WACC ♣Currency swaps 1b.Economic profit* Rs. Million -701 -81 -276 -218 ♣Treasury management (EVA Spread Invested Capital) effectiveness 2.ROIC* % 5.48 12.85 11.18 12.28 ♣Invest in high return yielding projects Grow top line New Business Unique ♣Set up overseas manufacturing 3a.Cash spent on new business Rs. Million Nil 357 400 578 facility Fe Chrome. 3b.Proportion of cash flow spent % Nil 26% 30% 38% ♣Acquire/Merge/Divest on new/ growth business (Cash ♣Set up Ti/Pigment business flow= PAT+ Depreciation) ♣Establish e-Business 4.Free Cash Flow (PAT+DEP- Rs. Million -114 68 78 266 ♣Improve product mix-PPM% CAPEX-DIV.-Incre. WC) ♣Reduce cost Achieve Enhance 5.Customer relationship index Index Nil +10% 10% Unique ♣Increase the sales to EAs and world class Customer KCCs status in Relationship ♣Increase the share of spend of service & EAs/KCCs products Enhance 6.Operating profit OP=Gross Rs.Million 12711.8 21540 To be firmed up ♣Improve product mix operational margin-Selling exp. every year ♣Reduce Cost excellence 7.Operating profit from CRM(E) Rs. Million 160 953 ♣Increase Margin through product against (ABP) (without transfer mix improvement price) ♣New products Improve customer 8.Customer Satisfaction Index Index ♣Implement OBL satisfaction ♣Steel 72 >75 >80 >80 89 Timkens ♣Logistics partners ♣Bearings - - ♣Product customisation ♣Tubes 89 82 ♣Partnerships with EPA’s ♣FAMD 73 85 ♣Customer relationship mgmt. ♣R&A 80.5 82 ♣Ensure compliance on quality and ♣Growth Shop 88 74 delivery ♣Secondary Products (external) 81 80 MS 21/22
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002) Strategic Strategic Strategic Measures Unit of Actual Targets Benchmark/ Strategic Initiatives Goals Objectives Measures 01-02 01-02 02-03 03-04 comparatives Reach the Rightsize 9.Rightsizing MOR 46,235 45000 Unique ♣Office Automation position of organization (1st April) ♣Outsource of non core activity most cost ♣Re-engineering competitiv ♣Cluster manning e steel ♣Resource Conservation & Waste plant Utilization Create a Create culture of 10.Knowledge Management KI (Know- 100 102 Unique ♣Set up knowledge/learning culture of knowledge based ledge centres continuous organization Index) ♣Create infrastructure for KM at out learning & locations change Enhance culture 11.JRD QC Score (Steel) Band 666 >650 >700 >750 800 + IBM ♣Obtain Benchmarks of Excellence ♣Align practices with Baldridge winners Become a happy 12.ESI Index 3.64/5 3.65 3.75 3.8 No. 3.65/5 HP ♣Implement new ESI system organization 13.Accident reduction % 18.36% 10% 50% acci- ♣On line ESI surveys 14.Effectiveness of PEP Through New dents implementation Survey measure 15.Value of improvements by Rs. Million 7400 7500 employee (Audited) Establish Improve Q of life 16.Corporate Citizenship Index Index 9.01 10 10 10 Benchmark ♣Social audit Industry in Jamshedpur Tata Steel ♣New roads, bridges and park Leadership Source (CII) ♣Improve environmental in Public respon- sibility
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SECTION-4
ECONOMIC PERFORMANCE
CONTENT INDEX
• Customers EC02
• Suppliers EC02
• Employees EC02
• Providers EC02 of Capital
• Public EC03 Sector
• Indirect EC03 Economic Impacts
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CUSTOMER (MONETARY INDICATOR) SUPPLIERS (MONETARY INDICATORS)
EC3 Cost of all goods, materials, and EC1 Net Sales & Other Financial Indicators services purchased.
Rupees Previous Rs. 24.75 Billion. Million Year 01-02 Rupees EC4 Percentage of contracts that were paid Million in accordance with agreed terms, excluding 2K-01 (a) Net Sales/Income 76074.8 77594.4 agreed penalty arrangements.
(b) Total Expenditure 63363.0 60524.4 (c) Operating Profit 12711.8 17065.3 98% of the contracts were paid in accordance (d) Add : Dividend & Other 856.3 506.1 with the contract terms during the reporting Income year. The balance 2% represent the contract (e) Profit before Interest, 13568.1 17571.4 with a credit of 30 days which were paid in Extraordinary items & Taxes (f) Less : Interests 3697.5 3766.1 subsequent year.
(g) Profit before Depreciation, 9870.6 13805.3 EC11 Supplier breakdown by organization Extraordinary items & Taxes (h) Less : Depreciation 5247.5 4922.5 and country.
(i) Less : Extraordinary items 4623.1 8882.8 (j) Less : Extraordinary items 2113.1 2858.4 A total sum of Rs.24.75 Billion was paid to the (k) Profit before Taxes 2510.0 6024.4 suppliers during reporting period. A few of (l) Less : Provision for Taxes 155.0 495.0 these suppliers are; BOC India for Oxygen (m) Less : Provision for Deferred 306.0 - supply, ITW Signode for packaging, JAMIPOL Taxation (n) Profit after Taxes 2049.0 5534.4 for carbide injection powder, TAYO for Rolls, (o) Add : Transfer from 3100.0 - Tata Ryerson for conversion of flat products, Debenture Redemption Adhunik Steel for reclaiming waste material, Reserve Man Singh & Co. for construction and material (p) Add : Transfer from Invest- 755.5 - ment Allowance (utilized) handling, Tata Refractories for purchase of Reserve refractories. The break up shall be provided (q) Less : Transfer to debenture - 1000.0 from next year. Redemption Geographic Reserve Break Down & Market (r) Less : Transfer to Capital 1400.0 100.0 Redemption Reserve EMPLOYEES 4504.5 4434.4 EC5 Total Payroll and benefits (s) Add : Balance brought 2147.6 1889.3 forward from the previous Wages & Benefits – Rs.10.976 Billion year Early Separation Scheme – Rs.2.2702 Billion (t) Balance 6652.1 6323.7 Provision for Employee Separation-Rs.1063.7 Which the Directors have Million appropriated as under, to: (i) Interim Dividend on 20.7 122.0 PROVIDERS OF CAPITAL Preference Shares (ii) Interim Dividend on 1471.1 - EC6 Distributions to providers of capital Ordinary Shares broken down by interest on debts and (iii) Proposed Dividend - 1838.9 (iv) Tax on Dividend 02.1 215.2 borrowings, and dividends on all classes of (v) Contingency Reserve - 1000.0 shares with any arrears of preferred (vi) General Reserve 3000.0 1000.0 dividends to be disclosed. TOTAL 4493.9 4176.1 Leaving a balance of to be 2158.2 2147.6 • Interest on debts and borrowings carried forward Rs.4191.6 Million EC2 Geographic break down of markets • Dividends - Rs.1493.9 Millions
Geographic break down of markets has not been EC7 Increase/decrease in retained earnings compiled separately this year. In the coming years at end of period. this information will be provided. Increase in retained earnings – Rs.10.6 Million
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PUBLIC SECTOR INDIRECT ECONOMIC IMPACTS EC8 Total sum of taxes of all types paid broken EC9 Subsidies received broken down by country down by country or region.
The total sum of taxes like sales tax, excise duty, The organization has not received any government subsidy during the reporting period. wealth tax, etc. paid by the organization during
reporting period is Rs.766.8 Million. Break down by EC13 The organization’s indirect economic region is not available. impacts, identify major externalities associated with the reporting organization’s products and EC10 Donations to community, civil society and services other groups… Although there is no established methodology to The total donations to the community and civil capture indirect impacts, there are several society during the reporting period were – Rs.31.8 institutions and organizations in and around Tata Steel enterprises that are supported by the Steel Million. The break up shall be provided next year. Company both in terms of providing skilled manpower (employees as members, executives and EC12 Total spent on non-core business directors), sourcing goods & services and also infrastructure development. financial support. These organizations employ thousands of people who are indirectly benefited by The organization has spent approximately Rs.150 the organization’s products and services. Such Million in construction of roads from railway station organizations include Small Scale Industries, Rotary to Jamshedpur City, modification and strengthening Clubs of Jamshedpur (6 Nos.), Lions Clubs of Jamshedpur (5 Nos.), Artificial Limfiting Centre, of Adityapur Bridge on River Kharkai and Aurogya Bhawan, 2 Hospitals, 10 English Media construction of peripheral road around City of Public Schools, Transport Nagar, Jamshedpur Jamshedpur. Sports Association, Zoo, TSRDS, TCS, Credit Societies, Pay Roll Savings, etc.
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OTHER DETAILS
Research & Development
Research is undertaken at Tata Steel out in the areas of raw materials including coal, coke, energy conservation, waste utilisation, sintering, blast furnace productivity and phosphorous reduction, product development and improvement in life of plant and machinery.
Many initiatives have been taken on R&D and some work done during the reporting period is presented below. Dry circuit and phos reduction measures in classifier fines to –0.04% are identified and recommended for Joda Iron Ore processing. Phos. Reduction in Noamundi fines to –0.06% is identified and recommended. Plant trials undertaken to improve chrome ore pellet strength to >100 kgs/pellet at FAP, Bamnipal. Sinter chemistry for high sinter usage during “F” furnace shutdown has been designed and properties found suitable. Burden distribution studies with 1:10 scaled down BF model for “F” furnace with CBLT have been carried out through in-house development. An optimum TBM tuyeres location for the new vessel bottom at LD1 has been suggested to the plant based on the water model study. This will be implemented in the middle of 2002. A comprehensive model of electromagnetic stirrer and submerged entry nozzle for billet casting is in an advanced state of development; the results would soon be used in the plant. Prediction System) to obtain mechanical properties during rolling. HR Dual phase steel for wheel rim and disc application have been developed and sent for trial. Annealing parameters have been optimised for production of ULC/LC Si-free electrical steel, which would reduce processing cost at the customers’ end. Low carbon Si free steel with P has been developed. Chromatizing process recommended by R&D has been implemented in CRM. Optimised annealing parameters developed and implemented in CGL#1 and CGL#2 resulting in increased line speed and reduced rejection rate. Superior life cycle of painted TATA GA sheet was established through in-house corrosion characterisation. An improved ULCC tundish striker pad, having adequate hot module of rupture at 1500o C has been developed and tried at LD#1. As an import substitution, direct bonded magnesia-chrome refractory for RH snorkel down-leg has been developed. Steel ladle slag zone break-out due to slag attack on the safety lining has been eliminated by replacing 42% alumina intermediate lining with magnesite split bricks. Development of galvanised IF-HS product for auto body application.
Expenditure on R&D (Rs. Million) a) Capital 5.2 b) Recurring 70.0 c) Total 75.2 d) Total R&D expenditure as a percentage of total turnover (%) 0.10
Technology Absorption, Adaptation and Innovation
• Process: Design of a new submerged entry nozzle clogging. New location of tuyeres suggested for steel making at LD#1. Charging matrix developed for burden distribution in the “new” “F” Blast Furnace. Sinter chemistry designed for high sinter percent operation. • Product: On-line property prediction system (OPPRESS) has been developed to predict mechanical properties over the length and also through the thickness of coil, as and when it is being rolled.
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Particulars of technology imported during the last five years: Innovation/Technology Year of Status of Import / Implementation Absorption STEEL DIVISION Lime dosing at Sinter Plant (Lurgi, Germany) 1997 Commissioned Upper Stack Gunniting of “G” Bl. Fce. (Vesuvius, Italy) 1997 Under Commissioned Stamp Charge Battery#8 (Saaberg Interplan, Germany) 1999 Commissioned Augmentation of Sinter Production (Lurgi, Germany) 1999 Commissioned Third Converter and gas cleaning equipment at LD 2 (MDH, Germany) 1999 Commissioned Second gas recovery system (MDH, Germany) 1999 Commissioned Installation of third Slab Caster at LD 2 (Davy Distington, UK) 1999 Commissioned Electrics and automation for HSM (SMS, Germany) 1999 Commissioned Thyssen bottom metallurgy technology in LD Converters (Thyssen, 1999 Commissioned Germany) Split Blower for Blast Furnace (GHH, Germany) 1999 Commissioned Development of information system for CRM (Posdata Company 1999 Under Limited, Korea) implementation Slab yard management system (Posdata Company Limited, Korea) 1999 Commissioned Coil Yard management system (Posdata Company Ltd., Korea) 1999 Commissioned Coil tracking and transportation system (Posdata Company Limited, 1999 Commissioned Korea) Manufacture of self-aligning clutch release bearing and rear wheel ball 1999 Under bearing (Nachi Fujikoshi, Japan) Implementation Stamp Charge Battery#9 (Saarberg Interplan, Germany) 2000 Under implementation Ladle Furnace at LD#1 (GHH, MDH, Germany) 2000 Commissioned Capacity increase at WRM (Morgan, USA) 2000 Commissioned Continuous galvanising iron#2 at CRM (CMI, Belgium) 2001 Commissioned Utilisation of sensible heat from blast furnace hot stove waste gas at “G” 2002 Under Blast Furnace in association with NEDO, Japan) implementation Installation of electromagnetic stirrer and submerged entry nozzle in the 2002 Under billet caster of LD#1 (Concast, Switzerland) implementation Installation of probes in “G” Blast Furnace to monitor various 2002 Under parameters to carry out intensive R&D activities and thereby acquiring implementation in-depth knowledge of in-furnace phenomena (Paul Wurth, Luxembourg) Since this information is being reported for the first time, the activities undertaken prior to reporting period are also reported.
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SECTION-5
ENVIRONMENTAL
PERFORMANCE
CONTENT INDEX
• Materials EN02
• Energy EN03
• Water EN06
• Bio-diversity EN08
• Emissions, Effluents EN10 & Waste
• Suppliers EN16
• Products & Services EN16
• Compliance EN16
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MATERIALS
EN1 Total Materials use other than water, by type (raw materials are the minerals and semi processed materials used as inputs in iron and steel making, lubricants are not included in raw materials). The specific consumption is calculated based on the total tonnage of raw materials divided by crude steel production.
Raw materials consumed 2001-2002 2000-2001 (Tonnes) Raw Material Consumption (t/tcs) Iron Ore 6,003,776 5,882,897 Thermal Coal 1,037,241 1,138,964 Coking coal 3,324,820 3,337,350 4.4 Limestone and Dolomite 1,374,277 1,350,575 4.2 4.06 4.01 Ferro Manganese 15,935 16,442 3.93 Zinc and Zinc Alloys 9,238 2,190 4 Spelter, sulphur, fluxes, alloys etc. 467,812 542,982 3.8 3.71 Others 176,091 958,460 3.6 Total 12,409,190 13,229,860 3.31 Crude steel production-mtpy 3.566 3.749 3.4 Saleable steel production-mtpy 3.413 3.596 3.2 3 97-98 98-99 99-2K 2K-01 2K1-02 Refractory Consumption (kg/tcs)
17 16.12 Specific Lubricant
14.25 Consumption in Steel Works 15 (kg/tss) 13 11.58
11 9.89 1.4 8.19 9 1.2 1.08 7 1 0.88 0.7 97-98 98-99 99-2K 2K-01 2K1-02 0.8 0.58 0.55 0.6 0.4 Refractories consumed during reporting period- 97-98 98-99 99-2K 2K-01 2K1-02 30,704 tonnes.
The raw material consumption at Ferro Chrome Lubricant consumed during reporting Plant will be reported next year. The raw material period – 2,174 tonnes, consumed in manufacture of Ferro Manganese are; 90,590 tonnes during 01-02. 101,551 tonnes during 00-01.
EN2 Percentage of material used that are wastes (processed or unprocessed) from sources external to the reporting organization;
The only waste material from external source that is used by Tata Steel is the iron/steel scrap purchased from market for Steel Melting Shops. During the year 2001-
2002, the total quantity of scrap purchased was 35,996.13 tonnes, approximately 0.3% of the total raw material consumed.
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ENERGY
EN3 & EN 4 Direct energy use segmented by primary source and Indirect energy use;
Particulars 2001-2002 2000-2001 # Excludes electricity duty paid on A) Power and Fuel Consumption purchases. 1. Electricity a) Purchased Units (M.KWH) 1,371.73 1,085.02 Total Amount (Rs. Million) # 3,644.651 3207.763 * CO gas, BF gas and LD gas (by Average Rate/Unit (Rs./KWH) 2.66 2.95 product of Coke Plant, BF and LD b) Own Generation Shops) are consumed for generation i) Through Diesel Generator Units 8.10 7.72 of power in PH#4 steam turbine (KWH) generator. Accordingly, previous Units per litre of Diesel Oil 3.63 3.35 year’s figures have been modified. (KWH) Average Cost/Unit (Rs./KWH) 7.32 7.90 ii) Through steam turbine/generator 1,077.38 1,273.32 Details of purchased Oxygen (Indirect Units (M.KWH) Energy) Units per tonne of Coal (KWH) 897.13 855.16 Average cost/unit (Rs./KWH) 1.43 1.41 Supply from BOC India (tonnes/annum) (*This includes generation of 375.76 458.74
PH#4 in M.KWH that is operated 2001-2002 : 3,24,7302.00 on by-product gases up to 95%) 2. Coal 2000-2001 : 3,42,067.00 i) Coking Coal Quantity (Million Tonnes) 3.320 3.340 (These quantities of Oxygen are Total Cost (Rs. Millions) 6,645.405 6,199.387 considered in the calculations for specific Average Rate (Rs./Tonne) 2,002.650 1,856.100 energy consumption in the Steel Works. ii) Blast Furnace Injection Coal 0.140 0.140 No other production unit has used Quantity (Million Tonnes) Oxygen in production process). Total cost (Rs. Millions) 405.261 386.212 Average rate (Rs./Tonne) 2,951.28 2,667.86 iii) Middling coal (Million Tonnes) for 0.86 0.99 power generation. Total cost (Rs. Millions) 643.759 695.339 Average Rate (Rs./Tonne) 750.12 702.36 3. Furnace Oil Quantity (Kilo Litres) 2,551.67 1,872.20 Total Amount (Rs. Millions) 30.262 22.444 Average Rate (Rs./KL) 11,859.69 11,987.80 4. Others LDO Quantity (Kilo Litres) 2,957.78 3,152.89 Total Cost (Rs. Millions) 38.968 35.103 Average Rate (Rs./KL) 13,174.67 11,133.58
B) Consumption Per Unit of Production (figures in parenthesis are for the year 2000-2001) Particulars Steel (per Tubes (per Bearings Ferro Alloys Rings & Growth Shop tonne) tonne) (per no.) (per tonne) Agrico (per tonne) (per no.) Electricity (KWH) 464.00 124.00 1.20 3,791.09 0.81 1,214.51 (481.00) (121.00) (1.14) (3,548.55) (0.79) (1,360.16) Furnace Oil (Litres) - - - 1.20 (25.83) 0.68 (0.19) 20.12 (20.35) Coking Coal (Tonnes) 0.95 (1.00) - - - - - Light Diesel Oil (Litres) 0.53 (0.82) 0.06 (0.07) - - - -
The consumptions per unit for steel production do not include the energy consumption in Mines that is furnished separately under EN17. The energy consumption at stockyards, marketing offices has also not been reported.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN17 Initiative to use renewable energy sources and to increase energy efficiency
No initiative has been taken to use renewable energy such as hydropower and/or biomass. In the Steel Works (Integrated Iron & Steel Production facilities at Jamshedpur), the specific energy of 30.339 G. Joule/tonne of crude steel during 2001-2002 was the lowest, a reduction of 0.59% over Annual Business Plan target and 1.91% (without Cold Rolling Mill-CRM) & 3.61% (with CRM) over 2000-2001. This is the sixth year in succession that the steel plant has achieved record lowest specific energy consumption. At the Iron Ore Mines, the consumption of electricity and petro-fuel is also coming down year-after-year as shown below.
The contributing factors for the reduction in Specific
Energy Consumption at Jamshedpur Works as Specific Petro Fuel Consumption compared to last year were; (Steel Works)
• Lowest ever specific petro fuel consumption @ 8 0.47 kg/tcs. The trend is shown in the box. 6.2 • Lowest ever specific middling consumption @ 6 4.23 45.15 Kg/t of steam generation at West Plant 4 Boilers was achieved against 50.60 Kg/t in Kg/tss 1.6 2000-2001. 2 0.74 0.47
• Lowest specific steam consumption at Turbo 0 Blowers (A-F) Blast Furnaces. 97-98 98-99 99-2K 2K-01 01-02 • Lowest fuel rate at HSM, WRM and Mearz Kilns at RPD. • Lowest power rate at Battery#8&9 at Coke Plant, Sinter Plant#2, LD Shop#2, HSM, WRM and MM. Reduction in Power Consumption • Higher boiler efficiency at PH#3 & PH#4. (Kwh/t) • Higher gross coke and coal tar yield. • Replacement of Al fan blades with FRP blades in Cooling Towers and elimination of multi 6 4.8 4.7 4.1 stage pumping in under ground mines. 3.9 3.7 3.6 4 • Better utilization of machineries at Mines. 2.8 2.5 2.4 2.4 2.3 2.3 However the following factors had adverse impact on 2 the plant Specific Energy Consumption. 0 • Lower recovery of LD gas due to major shut FY98 FY99 FY00 FY01 FY02 FY03 down of LD Gas Holder, outage of Boiler#3 for longer period and LD#2 Vessel#3 ID Fan NOA JODA vibration problem. • Higher venting of BF gas and CO gas due to less demand at PH#4 Boilers as Boiler#3 was down for major repair. • Higher coke breeze rate at SP#1 & SP#2. Reduction in HSD Consumption The formula for calculation of specific energy consumption- (Ltr/t)
n 0.48 0.6 0.47 0.46 0.43 0.42 0.45 ∑ Qn x CVn / Crude Steel Production {Tonnes} 0.37 0.4 0.36 0.37 0.34 0.32 0.29 1 Q = Quantity of solid, liquid & gaseous fuels 0.2
CV = Calorific Value of fuels (G.Cal/Unit) 0
FY98 FY99 FY00 FY01 FY02 FY03 NOTE : The energy consumption data for Collieries are not available and shall be furnished next year. NOA JODA
EN 4/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN18 Energy consumption footprint (i.e. annualised lifetime energy requirements) of major products
Specific Energy Consumption (Steel Works) Continual Improvement
50 49.626 Intensive energy saving campaign
Phase-III completion, Energy efficient BF, LD#2, Slab Caster, Process intensification 45.396 measures, like O2 enrichment, coal injection, 45 44.105 Tar Injection. Humidity control, Intensified waste heat recovery. Retirement of old units.
40 39.036 38.643 Higher by-product 37.339 gases for steam Phase I & II modernisation, and power, LD Steel making, Recovery of waste continuous casting, Stamp steam. G.Joule/tcs Charge coke ovens, Shaft 35 lime kilns, Modern reheat furnaces. 33.419 32.504
There was an oil crisis during 30.929 72-73 all over the world. Tata Phase-IV completion, 30.339 Steel has initiated several 30 actions since 72-73 in phased Third LD converter at manner to improve its energy LD#2 Second Re-Heat fce. performance through fuel at HSM, retirement of substitutes, modernization, SMS#2 fces. Retirement of recovery & reuse of by-product energy. old units. Stamp Charge Battery#8.
25 72-73 77-78 82-83 87-88 92-93 94-95 98-99 99-2K 2K-01 01-02
EN19 Other indirect (upstream/downstream) energy use and implications, such as organizational travel, product life cycle management, and use of energy-intensive materials.
Organizational travel and its impact on energy use are not included. Product Life Cycle energy usage is difficult to capture in case of steel products. Iron Ore and Coal, the major raw material used for steel manufacture, are highly energy intensive due to presence of high alumina, silica and phosphorous content in Iron Ore and high phosphorous content in coal. Life Cycle Assessment is carried out using ECOBILAN TEAMTM Software on yearly basis for environmental burdens associated with steel manufacturing at TATA STEEL from Mining activities to steel despatch at the gate of Jamshedpur Factory. Other energy intensive material used in the manufacture of steel is Oxygen that is purchased from BOC India Plant located outside the Steel Works at Jamshedpur. The energy consumed in the manufacture of Oxygen in BOC Plant is not included in the scope of this report. EN 5/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
WATER
EN5 Total Water Use Water Consumption in Steel Works
(excluding captive power generation) Tata Steel has taken various actions for optimum use of water. The increased emphasis on water recirculation in all process units has contributed to considerable 40 8.37 8 10 reduction in specific water consumption. Specific water 35 6.07 8 30 5.65 5.2 consumption (including that for power generation) has 25.2 24.9 6 25 reduced by more than 10% over the last year. Close 19.95 4 20 19.7 18.9 m3/tss monitoring of water losses, recycling of ash quenching water from Power Houses and recycle of waste water 15 2 Total Consumption Consumption Total from various drains have resulted in such reduction. The (Million m3/annuam) 10 0 domestic consumption at Jamshedpur for entire city is 97-98 98-99 99-2K 2K-01 01-02 60 million m3/annum supplied and managed by Company. Total Water Consumption (Million m3/annum) Specific Water Consumption (m3/tss)
Total water used at Jharia Mines is 0.93 million m3/annum for industrial and 2.92 million m3/annum for domestic usages. At West Bokaro 5.48 million m3/annum water is used for industrial use and 2.56 million m3/annum for domestic usages. Water consumption for Joda & Noamundi Iron Ore Mines is furnished above on per tonne of Run of Mine (ROM) Ore. The water consumption at other locations is comparatively very-very low and hence not reported. The trends for other unit for previous year are not available and shall be reported in future.
Total Water Requirement at Mines Mine Annual water requirement in thousand m3 for the year 2001-2002 Industrial Dust Suppression Domestic Noamundi 1684.0 Noamundi 1684.0 Joda East 1240.2 Joda East 1240.2 Gomardih 32.8 Gomardih 32.8
EN20 Water sources and related ecosystems/habitats significantly affected by use of water
The water for industrial and domestic usage at Jamshedpur, is drawn from river Subarnarekha. These rivers are perennial in nature and water abstraction does not have any adverse impact on the eco-system. Other source of water at Jamshedpur is a captive reservoir at Dimna (Capacity-34.224 million m3 and Area-92.6 sq. km.). Dimna Lake is situated on the Northeastern side of the Jamshedpur town at a distance of 12-13 kms. It is an earthen dam with masonary concrete wall constructed by the company about three decades ago to meet the emergency water supply demand of the Works and Township particularly during poor monsoon in the area. Three major drains carrying rainwater and surface run-off water from nearby villages pour into this artificial impounding. However the Company also pumps water during monsoon and post- monsoon seasons from the river Subarnarekha to Dimna Reservoir.
Studies have been carried out by company appointed consultant M/s. NEERI to find out the impact on eco- systems / habitats of these rivers by the organization’s use of water. The Consultant has reported no significant adverse impact. The river water analysis is given in the Table below. This analysis indicates that the quality of river is in conformance with the National Standard (BIS-2296 – 1982 – Class-A).
EN 6/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Parameters BIS-2296- Water Analysis Subarnarekha River Water Analysis Kharkai River 1982-Class-A 19.1.02 19.7.02 3.1.02 23.7.02 19.1.02 19.7.02 3.1.02 23.7.02 Cd, mg/l 0.01 NT NT NT NT NT NT NT NT Cr+6 , mg/l 0.05 NT 0.019 0.02 0.014 NT 0.015 0.014 0.008 Total Cr, mg/l - 0.012 0.028 0.030 0.022 0.11 0.031 0.023 0.02 Cu, mg/l 1.5 0.01 0.08 0.03 0.08 0.01 0.09 0.01 0.03 Fe, mg/l 0.3 0.02 0.16 0.02 0.01 0.04 0.23 0.03 0.01 Zn, mg/l 15.0 0.06 0.46 0.18 0.17 0.07 0.19 0.14 0.21 Ni, mg/l - 0.01 0.14 0.01 0.15 NT 0.15 0.02 0.05 Mn, mg/l 0.5 NT 0.21 0.09 0.02 NT 0.19 0.04 0.07 NO3 (N), mg/l 20 0.3 0.30 0.24 0.42 3.3 NT 2.5 2.2 Pb, mg/l 0.1 0.02 0.05 0.02 0.04 0.01 0.07 0.05 0.05 pH 6.5-8.5 8.1 8.0 7.1 8.3 8.0 8.7 7.3 8.0 TH, mg/l 300 86 34 99 78 162 160 140 112 DO, mg/l 6.0 8.9 4.9 8.0 5.6 7.4 5.1 09 7.2 TSS, mg/l - 15 137 05 140 06 164 09 72 BOD3,, mg/l - 23.0 11 04 05 24 05 06 07 NT – No Trace; TH – Total Hardness; DO – Dissolved Oxygen; TSS-Total Suspended Solids
Studies have also been carried out to study the Dimna Lake stratification and eutrophication. No stratification was observed in the Lake as indicated by no changes in Dissolved Oxygen (DO) levels at different depth. The company does not use any ground water source for either industrial or domestic use at Jamshedpur. Details of impact of withdrawal of water resources at Mines locations shall be furnished in subsequent reports.
EN21 Annual withdrawals of ground Post Winter Summer and surface water as a percent of annual Monsoon renewable quantity of water available River flows 9.40 4.50 5.93 from the sources. at Jsr. cum/sec cum/sec cum/sec Water pick 3.90 3.90 3.90 The flow of river water after 500 meters from up cum/sec cum/sec cum/sec the confluence of Rivers Subarnarekha & % age 41.5 86.6 50.5 Kharkai (water abstraction point) at
Jamshedpur is shown in the box. Water Abstraction from River Subarnarekha. At Jharia the water is withdrawn from rivers Damodar & Katri and at West Bokaro from a Source: Regional Environmental Impact Assessment seasonal nallah. The ground water from the Study Report for Jamshedpur Region by NEERI, Nagpur- under ground Mines is also recovered and May 1995. used after treatment for industrial and domestic purposes at both locations.
At Mines & Quarries the water is drawn from different sources as shown in the box. Flow details of mine sources shall be ascertained Name of Water Purpose Remarks and reported in subsequent reports. Mine Source Noamundi Baitarni Industrial Source is about 20 River km away from Mines EN22 Total recycling & reuse of water Jojo Nalla Domestic Source is about 3 km Gross make up water requirement for Steel away from Mines. Works was 74,000 cum/day (avg) during the Joda Kundra Industrial Source is about 5 km reporting period. 960,000 cum/day of water Nalla & away from Mines. remain in circulation in steel manufacturing Domestic processes through close circuit system and Gomardih Nakati Domestic Source is about 5 km Cooling Ponds. The make up water Nalla away from Mines. represents primary evaporation tones and Ground Industrial Ground water is blow downs. The data are being reported for water available in the active first time. Previous years data are not mining area available and shall be presented as trend in
future reports. Water recycling data for Mines shall be presented in the next report.
EN 7/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
BIO-DIVERSITY EN6 Location and size of land owned, leased, or EN23 Total amount of land owned, leased, managed in biodiversity-rich habitats. or managed for production activities or extractive use The Steel Works is situated at Jamshedpur in the State of Jharkhand, India. The factory covers 800 hectares of Units Lease Forest Non- land. In Jamshedpur 200 hectares land is developed as area in area in forest eco-park housing a Zoo and a Safari. West Bokaro hectare lease in area in Division is housed in 2000 hectares land in which mining and coal beneficiation activities are performed in hectare lease in
Hazaribagh. Jharia Division occupies 2500 hectares of hectare land for its industrial, mining and domestic activities in Jamshedpur 7100 Nil 7100 the District of Dhanbad both in the State of Jharkhand. West 2000 700 2000 The Iron Ore and Dolomite Mines are located at Bokaro Noamundi in the State of Jharkhand and at Joda, Jharia 2500 Nil 2500 Katamati, Khodbond and Gomardih in the State of Noamundi 1160.06 762.430 397.630 Orissa. The lease area for various Units and the details Joda East 671.093 521.622 149.371 of usage are furnished in the Box under EN23. The mine Gomardih 372.796 - 372.796 leases are in biodiversity reach area. Khondbond 978.000 836.757 141.242 Katamati 403.32 199.17 205.15
Reclamation & Afforestation Measures- Tree Plantation at various locations Location Under During During During • Massive plantation in all the units of Green 1999- 2000- 2001- Tata Steel during Green Millennium Count Millennium 2000 2001 2002 Count-down Down started in1998 to plant 1000 trees/day for 1000 days to greet new millennium with Jamshedpur 204969 44152 32774 29940
one million trees planted by Tata Steel. Mines 717500 232000 100000 36000 • More than 3.74 million saplings were Division planted covering more than 400 hectares at Collieries 435555 100455 60000 155000 Mines during 1997 to March 2002. • More than 200 hectares of mined out Cement 49126 9120 - - areas were reclaimed by plantation so far. Division • Survival rates have been improved FAMD 48250 30000 58000 30000 (Sukinda & from 30% to 85% by providing protection to Bamnipal) the saplings planted and watering the same Gopalpur 62043 17042 Nil Nil during dry periods during past 10 years. Bearing 2653 1200 500 500 • Trials were conducted to identify the Division species to be planted during the afforestation TOTAL 1519995 433969 251274 250990 programmes during reporting period. (Numbers) • In-house nurseries to develop the saplings for afforestation. Total capacity to raise 0.4 million saplings every year through Afforestation at Noamundi & Joda out the company. (trees planted in thousand) • Sir Dorabji Botanical Parks have Total saplings 140 140 been developed at West Bokaro & Noamundi 150 planted since 1982 during past 8-10 years. These parks housed – 1.82 Millions 100 80 ornamental plants, fruit trees, more than 250 50 21.4 varies of cactus, 70 varieties of roses, rare 6 flowering plants, rock gardens, spices, and 0 condiments, medicinal plants. 97-98 98-99 99-00 00-01 01-02
EN 8/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN24 Amount of impermeable surface as a EN7 Description of the major impacts on percentage of land purchased or leased. biodiversity associated with activities and/or products and services in terrestrial, fresh The data is not presently available and shall be water, and marine environment. reported in future. The company conducted the Regional EN25 Impacts of activities and operations Environmental Impact Assessment Studies for on protected and sensitive areas. Jamshedpur Region in 1993 and later on the Carrying Capacity of the Region by National Areas of operation of the company do not have Environmental Engineering Research Institute in any World Heritage sites or Biosphere the year 2001. The Environmental Impact Reserves/ Protected areas. Assessment has been undertaken for all the units of Tata Steel. The reports indicate that there is EN26 Changes to natural habitats resulting no major impact on bio-diversity associated with from activities and operations and the organization’s activities and/or products and percentage of habitat protected or restored. services in territorial, fresh water environments. (Also please refer details given in EN23). No reportable changes to natural habitats have occurred from the company’s products, services and activities through Environmental Impact Assessment Studies conducted for all the units.
EN27 Objectives, programmes, and targets for protecting and restoring native ecosystems and species in degraded areas.
As a part of its compensatory afforestation commitment and voluntary initiatives, the company strives to rehabilitate the degraded lands with local species with a view to restore native eco system.
EN28 Number of IUCN Red List species with habitats in areas affected by operations.
Noamundi & Joda mining lease areas have the following species from Schdule-1&2 of Wildlife Protection Act 1972.
Schedule-1 – Sloth Bear, Elephant, Peacock. Schedule-2 – Indian Python
EN29 Business units currently operating or planning operations in or around protected or sensitive areas.
No unit of Tata Steel is currently operating or planning to operate in Protected and Sensitive Areas.
EN 9/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EMISSIONS, EFFLUENTS & WASTES
EN8 Greenhouse gas emissions Carbon Dioxide Emission (t/tcs)
Considerable reduction in effective CO2 emission rate Target (01-02) – 2.85 is evident when the credit for slag granulation (as per Benchmark (Corus) – 1.2 (without power) IISI guidelines) (CO2 emitted for equivalent amount of 3.4 clinker used in cement making) is taken into account. 3.2 3.24 The Boxes indicate the trends in specific CO2 emission 3.08 3.09 3 3.01 from Steel Works and absolute quantities of emissions 2.91 2.92 over the years. 2.8 2.82 2.73 2.65 2.6 CO2 emissions calculations have been done using 2.48 GHG protocol guideline. Specific emission data 2.4 reported in the box opposite are for the scope without 97-98 98-99 99-2K 2K-01 2K1-02 considering mobile emissions, HFC emissions, purchased power and purchased oxygen. With power generation After taking credit for slag granulation with power generation
CO2 EMISSIONS AS PER GHG PROTOCOL
EN9 Use and Emissions of Ozone-Depleting Emissions 99-00 00-01 01-02
Substances Process + Stationary 11475170 11357200 106327592 Combustion The company used 8.462 tonnes of refrigerant during Mobile Emissions 17578 17098 19298 reporting period as against 10.647 tonnes of HFC Emissions 38299 27340 4846 Total Emissions 11531047 11401638 10661736 refrigerant used during previous year. The trends of Crude Steel Production 3435136 3666396 3749499 CFC consumption have been provided alongside. CO2 emission t/tcs 3.36 3.20 2.84 Slag credit 634641 671259 659164 EN30 Other relevant indirect gas emissions Emission including slag 10896406 10730379 10002572 credit This report does not include green house gas CO2 emission t/tcs 3.17 3.00 2.66 emissions that are as a consequence of Tata Steel’s including slag credit activities but occur from sources owned or controlled Total emissions (Imported 1217307 1223395 575788 by other entities in and around the organization e.g., Elect.+Mobile +HFC) Total emissions excluding 9679099 9506984 9426804 the refrigerators and air conditioners supplied by the (Imported Elect.+Mobile organization to or owned by the employees at their +HFC residences, GHG emission on account of purchase of CO2 emission t/tcs 2.82 2.67 2.51 oxygen etc. excluding imported Elect.+Mobile +HFC EN31 All production, transport, import, or export of any waste deemed “hazardous” under the terms of Refrigerant consumption the Basel Convention.
The company does not import or export any waste 1.6 1.487 deemed “hazardous” under the terms of the Basel 1.4 Convention Annexure-I, II, III & VIII. All hazardous 1.2 0.985 0.942 waste generated are handled as per the requirement 1 of Hazardous Waste Management & Handling Rules 0.8 0.607 0.635 0.6 1989/2000. All hazardous waste other than chrome sludge (filled in secure land fill) are recycled. Details of 0.4 0.2 hazardous wastes are furnished in Section-E11. 0 97-98 98-99 99-2K 2K-01 01-02 EN32 Water sources and related ecosystems/habitats significantly affected by kg/ton of refrigeration discharges of water and runoff.
The company discharge its treated effluent from the works and treated domestic sewage from townships to the rivers Subarnarekha & Kharkai. Studies have been carried out by NEERI to assess impact on eco-systems/habitats of rivers and have found no significant impact on the eco-system as given in EN20. Noamundi & Joda Mines have achieved zero discharge. The domestic effluent is discharged through the septic tank – soaking pit route.
EN 10/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN10 NOx, SOx, and other significant air emissions by type
Emission through process stacks. Stack Emission - Steel Works (PM) (kg/tcs)
Tata Steel has undertaken several initiatives which Target (01-02) – 1.75 3.5 Benchmark (Corus Steel) – 0.5 3.15 have resulted in considerable reduction in stack 3 emission as evidenced in the figure in the box 3 alongside. Indian standards (norms) for SO2, NOx, & PM for stacks in steel plants are furnished below 2.5 along with actual values monitored during the 2.02 2 1.8 reporting period. Total emission load for past two 1.67 years are also furnished below. 1.5
1 97-98 98-99 99-2K 2K-01 2K1-02
Sl. Process Stacks Air Indian Actual Value Remarks No. Attached to Pollutant Standard (01-02) 1 Blast Furnace PM 150 mg/Nm3 15-84 SO2 No Standard 121-191 NOx No Standard 74-117 2 Sinter Plant PM 150 mg/Nm3 113-325 ESP is under installation in SP#1 SO2 No Standard 69-487 to achieve the norm NOx No Standard 57-235 3 Refractories Production PM 150 mg/Nm3 32-83 Department SO2 No Standard 3-11 NOx No Standard 103-141 4 Steel Melting Shops PM 150 mg/Nm3 28-44 5 Coke Plant PM 50 mg/Nm3 18-476 PM standard for Battery#3 (top 3 SO2 800 mg/Nm 83-544 charge) not complied with and NOx 500 mg/Nm3 109-437 the same to be retired. 6 Captive Power Plants PM 350 mg/Nm3 27-138
Emission load from Steel Works – tonnes/annum Ambient Air Quality at Noamundi & Parameter 2001-2002 2000-2001 Joda (Norm-500 ug/m3)
Particulate Matter, tpa 6396 6529 215 Sulpher-di-oxide, tpa 17941 17062 210 210
Oxides of Nitrogen, tpa 12247 10744 205
200 198 198 198 197 197 197 The gross emissions loads are presented only for the 195 192 Steel Works. The loads for other units will be provided next year. The emissions of substances regulated under 190 POP’s Convention, Prior Informed Consents, Protocols 185 to the Convention on long-range trans-boundary air 180 pollution are not included in the report. These are not part of Indian Legislation and hence the data are not 98-99 99-00 00-01 01-02 being captured. However, actions to capture these data are being initiated for reporting in future reports. NOA JODA
EN 11/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Ambient Air Quality at Jamshedpur.
3 SPM levels (ug/m ) SO level (ug/m3) 280 271 70 2 Legal Norm:500 64.2 Legal Norm:120 258 254 258 260 247 65 59 236 240 60 57 220 55 52 220 49.8 49.6 50 47.6 200 189 182 180 43 45 41 180 167 40 38.4 35.1 160 152 35 140 30 24.6 120 25 100 20 99-2K 2K-01 2K1-02 99-2K 2K-01 2K1-02 Main Gate Coke Plant BOD Plant R&D Main Gate Coke Plant BOD Plant R&D
3 NOx level (ug/m ) SPM level in Township (ug/m3) 70 68 68 Legal Norm:120 270 Legal Norm:500 65 247 65 63.2 250 62 61 233 233 225224.7 60 57.5 230 213 55.2 209 210 55 53 210 204 51 49.1 190 50 190 182 178 45.6 45 170
40 150 99-2K 2K-01 2K1-02 99-2K 2K-01 2K1-02
Main Gate Coke Plant BOD Plant R&D River Pump House Kharkai Garden Burmamines Agrico
3 SO2 level in Township (ug/m ) NOx level in Township (ug/m3) 60 Legal Norm : 120 70 57.2 66.7 Legal Norm : 120 53.6 65 63.2 55 62.362.4 52.1 51 60 50 57 47 47 56 46 55 55 55 53.3 44 52.6 45 41.3 50 50 48.4 40 38.6 37.9 37.4 s 45 35 99-2K 2K-01 2K1-02 99-2K 2K-01 2K1-02 River Pump House Kharkai Garden River Pump House Kharkai Garden Burmamines Agrico Burmamines Agrico
EN 12/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Work Area Environment
Tata Steel has implemented a variety of mitigative measures to improve the working environment at shop floor. Work area environment quality at different places in the works is furnished below;
Improvement in Work Area Environment (SPM in mg/m3) 8 7.2 7 6.4 Legal Norm - 10 6 5 4.6 3.5 4 3.1 3.2 2.8 3 2.7
2 1.63 1.38 1.17 1.25 1 0 99-2K 2K-01 2K1-02
F Bl. Fce Cast House Discharge platform of Maerz Kiln of Ref. Dept. Sinter machine floor at Sinter Plant Near Laddle Fce. Area of LD#2
As per the requirement of Amendment Rules 1997 to the EP Act, 1986, visible fugitive emissions from Coke Ovens are monitored regularly and furnished below;
Visible Fugitive Emission from Coke Ovens Parameter Legal Batt#3 Batt#5 Batt#6 Batt#7 Batt#8 Batt#9* Norms 00-01 01-02 00-01 01-02 00-01 01-02 00-01 01-02 00-01 01-02 00-01 01-02 Percentage *5% for 8.1 7.6 4.3 2.6 3.8 2.3 5.3 3.9 0.9 0.9 0.2 0.8 Leaking new Batt. Doors 10% for (PLD) Old Batt. Percentage 4% 4.1 3.6 2.7 2.2 2.8 2.6 2.5 2.9 Nil Nil Nil Nil Leaking Offtakes (PLO) Percentage 1% 2.4 2.5 2.6 1.8 2.2 1.9 2.2 2.0 Nil Nil Nil Nil Leaking ** Lids (PLL) Charging 50 Sec 89 91 89 89 89 90 89 89 36 35 40 38 Emissions for Old (Sec/Charg *16 Sec e) for New **Battery#3 achieved Nil PLL during March 2002
EN 13/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN11 Total amount of waste by type and destination
Most of the solid wastes generated from Steel Works are recycled/reused. Some of the waste like, sludges from BF gas cleaning plant and part of LD slag could not be recycled because of high alkali and high phosphorous content respectively. During the year 2001-2002, solid wastes utilization statistics including hazardous wastes are presented below in the table. Quantities of wastes utilized divided by the total solid waste generation gives the percentage utilization.
Utilization / Sale of Major Solid Waste Hazardous Wastes Generated at Mines Item Usage Details 2000-2001 2001-2002 Tonnes % Tonnes % Proce- Waste Quantity B F Slag Cement making 902457 78.54 948265 79.68 ss NOA JODA L D Slag Sinter making 489925 49.81 562204 55.98 Maint. Oily 5.4 m3 18.9 m3 B F Sludge Domestic fuel 26376 67.73 37379 84.05 And sludge L D Sludge Sinter making 52723 97.91 66902 95.28 repair Oil 100 m3 20 m3 Mill Scale Sinter making 73342 101 64938 100 work amul- Flue Dust Sinter & dom. 21723 37.53 21000 35.81 sion Fuel Lubri- Used oil 85 KL 8 KL Lime Fines Sinter making 128927 103.7 123775 100 cation Dolo Dust Sinter making 3262 99.88 3448 99.65 Batt- Used 105Nos. 122 Nos. Ref. Waste Sale 19074 99.49 10056 99.54 eries battery (84 sold) Coal Tar Coke making 1512 100 1967 100 Solid Ore 1229050 t 714825 t Sludge Waste Rejects BOD Sludge Coke making 304 100 340 100 -do- Slime 200267 t 357797 t U/S Lime Sinter making 137999 100 104364 100 Stone TOTAL 1857624 70.20 1947796 72.62
Hazardous wastes generated at Mines are auctioned to registered recyclers and oily waste/sludge is land filled in protected sites. The data on other wastes like scrap, glass, drums & barrels have not been captured and shall be reported in the subsequent reports.
27% of the process wastes approximately 730000 tonnes during the reporting year was used for filling of low-lying area and peripheral road construction around Jamshedpur. About 400,000 tonnes of fly ash & bottom ash is generated in the Power Plants and it was dumped in Jugsalai Muck Dump. Packing wastes are segregated and auctioned. The details of hazardous wastes generation and utilization in Steel Works and bio-medical wastes are furnished below (details for other units will be furnished in the next report).
Details of Hazardous Wastes & Bio-Medical Wastes Hazardous Wastes in Steel Works Sl. Waste Class/Category Quantity Method of disposal No. (Indian Law) 01-02 00-01 1 Oil containing sludge 1.5 2000 L 2000 L Recycled 2 Tar Sludge 1.8 1691 t 411 t -do- 3 BOD Sludge 1.9 340 t 261 t -do- 4 Cyanide Sludge 11.1 100 kg 100 kg Treated in BOD Plant 5 Zinc Dross 16.3 816 t 212 t Sold 6 Chrome Sludge 17.1 394 kg 30 kg Protected land fill 7 Lube oil sludge/Coolant oil sludge 37.1 1413 t NA Recycled 8 Led acid batteries 41.3 323 nos. NA Auctioned to registered recycler 9 Oil containing sludge & emulsions 43.1 271 KL 831 KL Recycled 10 Used lube oil 44.1 138 KL 69 KL Injected in Blast Furnaces 11 Used transformer 44.2 62 KL 144 KL -do- Bio-Medical Wastes (TATA Main Hospital) 1 Human anatomical wastes 1 650 kg 650 kg Incineration 2 Micro-biological/bio-technology waste 3 70 kg 70 kg Auto clearing 3 Waste sharps 4 1500 kg 1000 kg Incineration 4 Solid waste 6 25 kg 25 kg -do- 5 Solid wastes 7 200 kg 200 kg Disinfection 6 Incinerator ash 9 20 kg 30 kg Land fill EN 14/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN12 Significant discharges to water by type Absolute quantities of pollutants & effluents from Steel Works Wastewater from processes is being treated with best available physico-chemical methods and recycled in the process. Wastewater from coke plant is treated Parameter 01-02 00-01 biologically where organic pollutants are oxidized and
decomposed by micro-organisms. Consumption of Effluent generation (million 10.23 11.14 water (7.40 m3/tss) and discharge of wastewater (5 m3/annum) m3/tss) are much lower than the legal norms of 20 Total Suspended Solids 597.84 587.83 m3/tss & 16 m3/tss respectively. (tones per annum)
Oil & Grease (tonnes per 19.15 23.44 The levels of total pollutant discharge in the annum) wastewater streams have reduced considerably at Ammonia (tonnes per 104.06 84.51 various locations as shown in the boxes. The absolute annum) effluent quantities and pollution loads from the Steel Cyanide (tonnes per 0.996 0.99 Works are furnished in the box. Noamundi & Joda annum) Mines do not discharge any over flow from the Slime Phenol (tones per annum) 1.16 0.27 Dams. Quality parameters for treated sewage are
furnished in SO-3 under Section-3.0.
Total Water Pollutant Discharge (kg/tcs) Cyanide level (mg/l) in Target (01-02)-0.19, BM-Unique Susungharia Drain carrying 0.35 treated effluent from Coke Ovens 0.3 Legal Norm-0.2 0.3 0.27 0.21 0.19 0.25 0.19 0.211 0.17 0.2 0.138 0.2 0.193 0.15 0.134 0.13 0.12 0.116 0.11 0.15 0.09 0.07 0.1 0.05 97-98 98-99 99-2K 2K-01 2K1-02 97-98 98-99 99-2K 2K-01 2K1-02
Ammonia level (mg/l) in Total Suspended Solids in Slime Susungharia Drain carrying Dam Seepage (Noamundi) treated effluent from Coke Ovens 11.5 11.3 15 Legal Norm-50 13.96 11.02 11 13
11 10.5 11 10.25 999.3 10 9 10 Miligram/litre 7 9.5 5 9 97-98 98-99 99-2K 2K-01 2K1-02 98-99 99-00 00-01 01-02
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EN13 Significant spills of chemicals, oils, and fuels in terms of total number and total volume.
There was no reportable case of occurrence of significant oil spills or near misses of chemicals, oils and fuels during the year 2001-2002 and 2000-2001 through out the organization.
SUPPLIERS
EN33 Performance of suppliers relative to environmental components of programmes and procedures
Although supplier’s environmental performance monitoring is not undertaken, stringent procedures have been developed under ISO-14001 for contractors, including strong punitive actions for defaulters. The procedure for monitoring contractors/suppliers compliance with Labour Laws also furnished under Section- 3.16.
PRODUCTS & SERVICES
EN14 Significant environmental impacts of principal products and services
International Iron & Steel Institute (IISI), Brussels, have initiated Life Cycle Study for steel products, at present restricting the scope from mining of raw materials to the despatch of material from steel plant gases. At Tata Steel LCA has proved to be very successful in analysing inputs to the processes and discharges to the atmosphere. As per IISI norms the tracking of performance and significant impacts of products and services beyond the gate is not considered, hence has not been assessed and reported.
EN15 Percentage of the weight of products sold that is reclaimable at the end of the products’ useful life and percentage that is actually reclaimed.
Steel products are 100% recyclable in their life cycle. However, it is difficult to keep track after the product leaves the factory gate and hence information is not available.
COMPLIANCE
EN16 Incidents of and fines for non-compliance with all applicable international declarations/ conventions/treaties, and national, sub-national, regional, and local regulations associated with environmental issues. i) The State Pollution Control Board (Jharkand) Regional Office, Jamshedpur, served a notices to the company in the month of January & May 2002 that the company dumped wastes on the bank of river Kharkai and thus the encroachment of the width of the river by dumping of wastes, increasing the pollution in the river and impeding the natural flow of river water under Water Act (Prevention & Control), 1974. (Notice# 305 of 31st January 2002 & Notice# 1236 of 28th May 2002). Company defended the case and approached the State Pollution Control Board with the relevant information to establish that there had been no indication of increasing pollution load of river and impediment of the natural flow of river due to dumping of wastes. The dumping process was done to strengthen the embankment of river. The construction of road along the riverbanks was being done to reclaim the eroded banks of the river due to brick kiln activities carried out in the past 0 decades on the land, which was leased to Tata Steel. Necessary tree plantation has been done and pathways have been made. Tata Steel had taken up the construction of Outer Ring Roads to ease out the traffic congestion in the town. The steel making slag, which is not a hazardous material has been established by scientific studies conducted by various Institutions in India including NEERI and Abroad as most suitable material for road construction.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002) ii) There was one non-compliance with regard to PM emission from process stacks and 10 numbers with regard to pollutant discharge through Works drain during reporting period. No fines have been levied on the company during the reporting year.
TRANSPORT
EN34 Significant environmental impacts of transportation used for logistical purposes. i) Diesel and Petrol consumed for transport of raw materials and for plying of in-house vehicles are accounted for in the calculation of CO2 emission as per GHG protocol. ii) Contractor’s vehicles are not considered in the GHG calculation. The efforts in future focus on to collection of data to incorporate in the CO2 emission calculations. iii) Company vehicles including Locos are monitored for vehicular emission (CO, HC for Petrol and smoke density for Diesel vehicles) every six months. All the contractors and suppliers vehicles are checked for Pollution Under Control Certificates at the Factory’s entry gate. The company has put up vehicle emission monitoring stations at various locations in the township where State Pollution Control Board checks the vehicles. All Units under EMS follow this practice. iv) Particulate Matter, Sulpher Dioxide and Nitrogen Oxides are not monitored for transport vehicles as the same is not a legal requirement.
OVERALL Capital Investment in Pollution
EN35 Total environmental expenditures by type. Abatement {Rs. million(cumulative)}
2810 Capital Investment on Pollution Abatement 3000 2550 2665 2500 2150 Under different phases of modernization, several state-of-the art 2000 1800 pollution control systems have been installed to prevent and 1500 control pollution. Box gives details of capital expenditure made 1000 over the years on pollution abatement. Expenditure during 500 reporting year on pollution abatement also includes facilities 0 provided at new Cold Rolling Mill Complex. The capital 97-98 98-99 99-00 00-01 01-02 expenditure is shown for the entire scope of the report.
Operating Cost on Environmental Protection (Rs. In Million) in the Steel Works
Cost Element 98-99 99-00 00-01 01-02 The operating costs include expenditure on power consumption, consumables chemicals
Power consumption and spares, water CESS paid, and the revenue 234.7 238 254 268 expenditure like cost of chemicals, glass-wares, Consumables the wages & salaries of the employees of 43.2 213.4 345 263 Environmental Management Department. The Revenue expenses capital/ revenue expenditure includes the capital 6.0 6.9 7.8 8.0 costs incurred in installation of pollution control Water Cess & Other facilities e.g. treatment plants, bag houses, 6.3 6.5 7.0 7.6 Charges slime dam construction etc. The expenditure Total costs against item#7,8&9 of the table on Capital/ 290.2 464.8 613.8 646.60 Revenue Expenditure in Mines (presented in
Total crude steel the next page) is included in the capital cost 3.264 3.434 3.566 3.749 production (mtpa) shown in above figure. The expenditure at
Operating costs, Jharia & West Bokaro is shown for the reporting
Rs./tcs 89.02 135 172.1 173 year. The previous years data are not
available.
The operating expenditure details for other units are not available and shall be presented in the future report.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
The increase in the operating cost is mainly due to increase in numbers of pollution abatement equipment facilities and better availability of this equipment. The trend for operating cost is shown in figure.
At Jharia Division Rs.177.9 million and at West Bokaro Rs.400.00 million have been spent in Operating Cost at Steel Works providing close circuit effluent management (Environment) system and recycling of waste water; ESPs and 1000 200 dust collection system in ash handling area for 173 172 Fluidised Bed Combustion Boilers using coal 900 180 800 160 tailings and rejects for power generation; 135 700 650 140 maintenance of greenery and awareness creation 613.8 600 120 among employees on industrial health and 89 464.8 hygiene. 500 78 100 400 80 Rs./tcs 290.2 At Mines & Quarries several projects like, 300 251.7 60 construction of check dams, construction of slime 200 40 dams, provision of water sprinkling and dust 100 20 suppression system including environmental 0 0 monitoring laboratory have been set up and the 97-98 98-99 99-00 00-01 01-02 total expenditure both on revenue and capital are Total Operating Cost (Rs. In Million) shown in the table below. Operating Cost (Rs./tcs)
Capital / Revenue Expenditure on Environment in Mines
Sl. Activity 2000-2001 2001-2002 No. (Rs. Million) (Rs. Million) 1 Afforestation and Horticulture 43.77 30.01 2 Water Cess 7.45 7.85 3 Consent Fees 2.43 1.90 4 Awareness 0.52 1.0 5 EMS Activities 17 21 6 Maintenance/Construction of Check Dams 14.62 3.1 7 Slime Dam Construction 220.87 609.21 8 Water Sprinkling 13.47 40.42 9 DE & DS System 51.12 48.52 10 Environment Monitoring 1.24 1.78
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-6
SOCIAL PERFORMANCE
CONTENT INDEX
• Employment SO02 • Labour/Management SO03 Relations • Health & Safety SO04 • Training & Education SO07 • Diversity & Opportunity SO10 • Strategy & Management SO10 • Non-Discrimination SO12 • Freedom of Association & SO12 Collective Bargaining • Child Labour SO12 • Forced & Compulsory Labour SO12 • Disciplinary Practices SO12 • Security Practices SO13 • Indigenous Rights SO13 • Community SO14 • Bribery & Corruption SO25 • Political Contribution SO26 • Competition & Pricing SO26 • Customer Health & Safety SO26 • Products & Services SO26 • Advertising SO27 • Respect for Privacy SO27
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EMPLOYMENT
LA1 Breakdown of workforce Location-wise break-up of employees (as on 01.04.2002) Location Total Officers Non-OPR As on 01.04.2002, Tata Steel had a total permanent workforce of 46,234. The break up is furnished in the box. MD’s Office & 960 346 614 Admn. In addition, there were approximately 1800 temporary Steel Works & 19810 1766 18044 employees and about 12500 contractor/suppliers Marketing employees working on various sub-contracted/outsourced Mines & 14341 675 13666 Collieries jobs in various units of Tata Steel. Tubes Division 1789 132 1657 Rings & 1286 144 1142 LA2 Net employment creation Bearing Corporate 4997 666 4331 Tata Steel had 48821 employees on its roll as on Services 01.04.2001 that has come down to 46234 as on Ferro Alloys 1596 206 1390 01.04.2002 as Tata Steel is seriously attempting to reduce Growth Shop 779 129 650 Human 676 214 462 its labour cost, which is currently 18% of the turnover. Resource However, with the increased production, Tata Steel has Management created indirect employment in the area of transportation, TOTAL 46234 4278 41956 which we have not been able to capture. In addition due to outsourcing of various activity in various areas there had Employee benefits beyond those legally been an increase in the employment by contractors / mandatory suppliers which we have not been able to capture and Facilities Diverse Work hope to report these numbers in coming years. Groups 15 additional days privilege Lady leave for ladies having Executives/all LA12 Employee benefits beyond these legally children <5 years age in female mandated the event of sickness. employees. Running of crèches. The benefits given to employees beyond those legally Preferential house Working couples. mandated are summarized below and also presented in the allotment. box. The steel company has spent a sum of Rs.354.80 Million on medical services and Rs.135.70 Million on Free water & medical, All employees. educational facilities for the employees and their families. subsidized electricity, housing. • In case of employees pre mature death, the legal Metro allowance. Metro employees. heir gets monthly pension equal to the amount of last salary drawn by the deceased employee till the time he Monetary incentives. Employees would have attained 60 years of age. acquiring higher
education in • In case of death due to accident, the legal heir gets related field. monthly pension equal to the amount of last drawn salary
of the deceased employee, till the time deceased would Works allowance/Night Graduate
have attained 60 years of age. shift allowance. Trainees /People working in shift. • Basic Plant training of 18 months with stipend to the employees’ wards to enhance their employability. Examples of other benefits (non work • Early Separation Scheme. A monthly pension of 1 related) include free fuels, free school for time/1.2 time/ 1.5 time of an employee’s salary wards, scholarship to meritorious students, depending upon his age and length of service till the time well equipped libraries, recreational clubs, the employee attains the age of 60. community halls, adventure programme for employees, pack price shops. Retired employees get free medical treatment for self and spouse and enjoy pension.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
LABOUR/MANAGEMENT RELATIONS
LA3 Percentage of employees represented by Location Union independent trade union organization Steel Works, Tata Workers’ Union Tubes & Agrico
100% employees (Other than Officers) are Noamundi & Indian National Mining Federation
represented by independent trade union Joda Sukinda Indian National Mining Federation organization. The details of the trade union at Chromite Mines different locations are given in the box. The & Bamnipal
Officers do not have any association or union. Charge Chrome Jamadoba & Rashitrya Coal Mines Federation LA4 Policy and procedures involving Jharia information, consultation and negotiation with West Bokaro Rashitrya Coal Mines Federation
employees Mumbai Mumbai Labour Union & Tisco Head
Tata Steel is pioneer in the area of Joint Office Employee Association Kolkata The Tata Employees’ Union Kolkata Consultation in India and has a three tier Joint
Consultation System that ensures participation of Adityapur Tisco Mazdoor Union
employees at all the levels including top
management. Corporate Communication Sukinda Indian National Mining Federation
Department of Tata Steel is entrusted with the Kharagpur The Tisco Ltd. Workers’ Union Bearings responsibility of sharing all the relevant information Division
amongst the employees through various in house
publications such as Khas Baat, Tal Mel, Tisco News, Tisco Samachar, Hoardings and through Intranet of Tata Steel. Collective Bargaining issues are discussed with the recognized Unions LA13 Provisions for formal worker at different locations on a regular basis. The joint representation in decision making consultative management system is presented under LA13. Office Bearers of respective Unions are member of Joint Consultative Committees of Management and in this forum they discuss all the issues excluding issues of collective bargaining.
Apex Joint Consultation of Management (JCCM), 10 Members meets once in a quarter
Committees Sub Committees *Canteen, OH&E, Joint Works Council (JWC), 12 Members Suggestion, meets every month *Suggestion *Quality Sports & Welfare, Town & School *Safety Health & Visiting, Environment Joint Departmental Council (JDC), General Safety (SHE) twice a month *Welfare
Joint Consultation set up
Joint Departmental Council (Unions & Management) meet twice in a month at unit level to review issues like safety, environment, productivity, quality and employee well being related issues.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
HEALTH & SAFETY
LA5 Practices on Recording and Notification of Occupational Accidents & Diseases, and how they relate to the ILO Code of Practice
Factory Act 1948 & Bihar Factory Rules 1950 guidelines are used to record and notify occupational accidents and diseases in the organization. Any occupational accident occurring is reported immediately to safety control room, manned round the clock through phone. Any injury to persons involved in the activity is first reported to nearby first aid station. There are two first aid stations inside works, equipped with well- maintained ambulance with trained staff, to take care of any emergency situations. This holds true for contractor’s employee also.
After receiving information about any accident, the shift safety officers rush to the site of accident/incident for investigation, observe the site, record the statements of various persons present, report immediately to higher ups for information and moves to the first aid stations or hospital for recording statement of injured person/s.
First information on nature, time of accident, person involved, and the damage occurred and the department concerned to safety department sends cause of accident in the prescribed format. These reporting also include minor incident, dangerous occurrences and near miss cases. Depending upon nature of injury to the persons like unfit for less than 48 hours or more than 48 hours, the report is sent to Inspector of Factories.
In case of any fatal accident, the information in writing is sent to Chairman, General Safety Committee, Inspector of Factories and local government officials on the day of such incident. The jobs are stopped till it is cleared by Inspector of Factories after site verification. Within 48 hours of accident, enquiry committee is constituted to investigate into the root cause/s of accident, any human or system failure responsible for accident and to recommend action to prevent such incidence in future. The finding with recommendation/s are discussed in monthly meetings of General Safety Committee and are circulated to all Departmental Heads/Chiefs to take necessary preventive actions to prevent such occurrences.
Occupational Health Services Departments of various units of organization carry out following activities.
• Pre-employment and during Medical Examination employment health check up • Health Education & Awareness 1998 – 99 1999-2K 2K-01 01-02 Total No. of Patients • First Aid Training Visited 77,404 70,666 65,972 64,302 • Training on Ergonomics • Curative and preventive Total No. of Statutory activities like running of First Aid Medical Examinations 2,900 7,051 7,579 7,217 done Stations, Tata Nurses, Toxoid Immunization. Pre-employment • Statutory Medical/Eye Medical Examinations 1,527 1,505 976 931
Examination. Immunisation against • Rehabilitation of employees Tetanus 6,239 4,424 3,522 3,413 found unfit in a department
LA6 Description of formal Joint Health & Safety Committee of management and worker representatives.
Apex Council on safety is constituted by higher management in consultation with employee’s Union. This council usually consists of 10 members, 6 from management side and 4 from employee union and is headed by Managing Director of the company. The complete structure of Joint Committees for Safety, Health, Environment and other Welfare activities is as follows;
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
JOINT CONSULTATIVE COUNCIL OF MANAGEMENT (Management Representative + Chairman, Co-Chairman, Member Secretary + Employee Representative)
JOINT WORKS COUNCIL (12 members – equal representation from Management & Employees Union)
Environmental Sports & JW Quality Hospital School Town Joint Cost Joint Awareness Welfare Comm. Visiting Visiting Visiting Control Amenities Committee Comm. Comm. Comm. Comm. Comm. Comm.
Central Canteen Managing General Safety Committee Safety Appliance Suggestion Box Committee Committee Committee
EIGHT ZONAL SAFETY AND HEALTH COMMITTEES HEADED BY CONCERNED EXECUTIVE INCHARGE
The representatives nominated by Unions are formally elected by the workforce and they represent the views of entire workforce.
LA7 Standard injury, lost day, and absentee rates and number of work related fatalities;
The highlights of the achievements in safety during the year are- Achievements Records achievements Items Previous Best Year 2001-2002 Lowest Nos. of accident in a month (Works) 2 (Feb.2002) 2 (Feb. 1996) 1995-1996 5 (Aug. 2001) 5 (Aug. 1998) 1998-1999 3 (Dec. 2001) 5 (Dec. 1996) 1996-1997 No. of Man days trained in safety and environment (Works) 4328 4104 2000-2001 Lowest Nos. of accident for contractor’s employees (Fatal) 19(2) 25(6) 2000-2001 Total number of non reportable accident (Works) 43 48 2000-2001 Total number of reportable accidents for employees (Fatal) 63(5) 60 (0) 1997-1998 Total reportable accident to contractor employees (Fatal) 19(2) 42 (1) 1995-1996 Man days lost due to employee accident (excluding fatal) 4818 3979 2000-2001 Man days lost due to employee accident (including fatal) 34818 6599 1997-1998 Man days lost/employee/year (excluding fatal) 0.2432 0.207 2000-2001 Man days lost/employee/year (including fatal) 1.76 0.33 1997-1998
Loss of man days due to accident are not accounted for, if a person becomes fit for duty within 48 hours from the time of accident. However, if the duration of absence from duty exceeds 48 hours, the entire duration starting from the time of accident (8 hours of working period per man day) is considered. The frequency distribution on loss on man-days due to accident for the year 2000-2001 and 2001-2002 is given below. In case of fatal accidents, 6000 person days’ loss is considered.
Frequency Distribution on Mandays Loss excluding fatal
600 538 539 473 486 500 452 426 432 432 402 380 384 382 370 400 356 349 333 288 309 276 269 300 246 261 232 182 Mandays Lost 200
100 AMJ J ASOND J FM
00-01 01-02
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
During the year 2001-2002, Safety Department has initiated ‘GREEN CROSS MOVEMENT’ as per the guidelines of ILO. It aimed at identifying hazards associated with different activities, identify persons who are at risk, evaluation of the risk, identify ways to eliminate or reduce risk associated. As a part of “Green Cross Movement”, Managing Director, launched “Zero Accident Campaign” with effect from 01st February2002 asking individual commitment for safe work as identified under Green Cross Movement.
LA8 Description of Policies/Programmes (for the workplace and beyond) on HIV & AIDS
In line with the company’s policy of HIV-AIDS (Section-3.7) the organization conducts regularly the awareness programme. These are organized by Occupational Health Department and Medical Division of the Company. The grievance redressal procedure ensures that there is no discrimination against HIV positive employee.
The Company’s Chairman, Mr. Ratan Tata, is an Advisor Member of the Global Business Coalition on HIV/AIDS, a World Health Organization initiative. Tata Steel was one of the companies asked to display information material such as diaries, handbills and videocassettes at Barcelona.
The Company’s Nodal Centre at Tata Main Hospital has been coordinating all AIDS related activities of the company, and operates two-health check up clinics for truckers and their helpers. During the reporting year, the company conducted 1495 programmes covering 79,960 participants.
Tata Steel’s Response to HIV/AIDS April 2001-March 2002 Thrust Areas Detail Activity Nodal Centre – AIDS • To coordinate all AIDS related activities of Tata Steel especially in Help Line 2142032 East & West Singhbhum. • 2 Free Health check up clinics for truckers and their helpers – 6 days/week. AIDS Awareness Programme 1st • April 2001-March 2002 = 1495 programmes conducted covering December is remembered as World 79,960 participants. AIDS Day • Drugs & Alcohol Awareness Programme April’01 – March’02 = 443 programmes conducted covering 27,853 participants. • Theme for World AIDS Day 2001 – “I Care. Do You”? AIDS Awareness Programme – • Nukkad Nataks (street plays) – 51 (21,006 participants). special activities • 42 Video Van road show – in bastees and rural areas (4906 participants). • 538 enumerators including 300 teachers distributed 50,000 handbills during census 2001, R&TS 20,000 & CFI 15,000. “Training of Trainers” Programme • 13 training programmes were conducted covering 472 trainers from grass root level. AIDS Cell at Tata Main Hospital • Preventive & Promotive activities – generates IEC materials such as (dedicated Cell for HIV/AIDS hand bills, posters, information booklets etc HIV/AIDS patients and patients) – since 1994 their family members, slides for local cable operators, teaching material on floppies etc. • Conducts & coordinates AIDS Awareness Programmes. • Training of resource people and peer leaders and regular CME of medical personnel to upgrade knowledge and reduce discriminatory behaviour. • Curative and Rehabilitative activities – counselling of STD/HIV/AIDS patients and family members. • Condom distribution. Tata Main Hospital • Policy to treat HIV/AIDS patients without discrimination and also treat those patients denied treatment elsewhere. • Use of disposable syringes and needles are mandatory. • Facility for ELISA test for HIV and Hepatitis B & C • Rationalized use of blood and blood products.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Tata Steel’s Response to HIV/AIDS April 2001-March 2002 (Contd…) Sharing/Dissemination of • Slides and documentary films screened regularly on local cable TV Information (IEC) for viewers in and around Jamshedpur, information on AIDS displayed on hoardings in the works and town, Power point slide show on HIV/AIDS on Tatanet. • Article on HIV/AIDS appear regularly in in-house publications. • Sharing of information scanned from reputed Internet sites. • Message pillars at 3 locations in town; wall paintings; Translite at Tatanagar Railway station Inquiry. Condom Vending Machines • 4 vending machines placed at Transport Nagar, Sulabh Sauchalay Bistupur Market, Sulabh Sauchalay Sakchi Market & Bus Stand Mango. Networking/Partnerships • Global Business Coalition on HIV/AIDS, WHO, NACO, Red Cross, CII, TCCI, ILO, Rotary International, INP + British Council, Xavier labour Relations Institute, Ladies Core Group – AIDS Awareness Signatory of Global Compact. Jamshedpur Blood Bank • Encourages voluntary donation by Tata Steel employees and their family members. • Every unit of blood collected is screened for HIV, Hepatitis B & C and Syphilis. • Results of tests informed confidentially to the donor on request by trained counsellors.
LA14 Evidence of substantial compliance with ILO guidelines for Occupational Health & Safety.
The organization during the year has initiated development of OHSMS in line with OHSAS-18001 and SA- 8000 standards and ILO guidelines on Occupational Safety & Health Management System (ILO-OSH-2001). The system is under implementation and the target for certification of all the units of Tata Steel to OSHAS- 18001 is December 2003.
LA15 Description of formal agreements with trade unions on health and safety at work
The Joint Consultation agreement with Trade Union was signed in 1956 to strengthen participation of workforce in the management of operation of the organization including Health & Safety. The joint committees as explained above have been formed under these agreements at all locations with equal participation of employees and management. The representatives from Union are duly elected members of the workforce of the company.
TRAINING AND EDUCATION
LA9 Average hours of training per year per employee by category of employee
Technical Training & Education – Tisco Management Development Centre and Savak Nanavati Technical Institute provide the training to the employees and officers. The performance highlights of both TMDC and SNTI are furnished below. The training provided at TMDC during reporting period and related details are highlighted below. The data for previous year are not available.
Measures Achieved Total Number of Programmes 243 Total Number of Training Mandays 12055 Participants Covered 4610 Average Programme Rating* 4.50 Average Faculty Rating 4.73 No. of Officers nominated for External Training Programmes 745 Number of Summer Training Candidate 260 Number of candidates who successfully completed the one year Foremanship programme 46 * On a 5 point scale * These statistics has been achieved by a team of six trainers
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Shavak Nanavati Technical Institute (SNTI) during the year 2001-2002, surpassed all its targets as well as improved over previous years in performance in all areas.
Performance during the year-at SNTI Sl. Area Target Performance Performance as Performance No. 2001-2002 2001-2002 % of Target 2000-2001 2001-2002 1 Training Mandays 261500 295430 113% 281228 2 Quality Index of Training 4.6 4.67 102% 4.64 Programme on (5 point scale) 3 Programme days/trainer 185 222 120% 205 4 Training of Trainers 10 10.04 100% 14.76 5 Revenue Earning a) Through BPT 1.0 Million 1.062 Million 1.78 Million for 2 years b) External Training 0.66 Million 1.2 Million 2.97 Million c) Infrastructural Hiring 1.78 Million 6 Knowledge Index (No/Person) 130 140 - - 7 No. of Employees trained 12000 14915 124.26 21726 8 Trainees strength - 632 - 787 The break up of training by category of employees shall be provided in the subsequent reports.
LA16 Description of programmes to support the continued employability of employees.
The training and development of employees through skill enhancement and diversification contributes to continued employability of employees and accordingly Tata Steel has in house facility of technical as well as managerial trainings. The training needs of all the employees are identified in the form of Training Need Survey (for Officers’ – Personal Development Plan). The descriptions of various programmes for training in place are presented in the boxes below as also at LA17.
Internal Training Programmes External Training Programmes – INDIA
• Achievement Orientation • Business Environment • Change Orientation • Change Orientation • Communication • Communication Skills • Computers • Finance • Conflict Management • General Management & Human Resources • Customer Orientation • Health Management • Empathy • Influencing Skills • Financial Management • International Management • General Management • Information Technology • Influencing Ability • Marketing • Learning • Operations Management • Marketing • People Development • Operations Management • Strategic Thinking & Management • Other Initiatives and Miscellaneous • Team & Conflict. • People Development • Planning & Organizing Skills External Training Programmes – FOREIGN • Problem Solving & Decision Making • Finance • Project Management • Special Initiatives • General Management
• Strategic Thinking & Management • Marketing
• Team Building • Operations Management • Organization & Management • Programmes for Senior Management • Strategic Thinking & Management
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
LA17 Specific Policies and programmes for skills management or for lifelong learning.
Tata Steel has in house technical training facilities and technical skills are enhanced through these programmes for skill management and lifelong learning. Clusters manning, a multi-skilling process practiced at Tata Steel, provides for career growth through acquisition of higher skills.
Electrical General Drives & Robotics
• Electrical operation module for Officers • Fundamentals of modern electrical drive – • Training on EOT Crane firing circuit & converter • Motors & Transformers including protection • Fundamental of modern electrical drive – DC • Study and interpretation of electrical circuits motor control • Electrical power module for IEM Officers • Fundamentals of modern electrical drive – • Electrical safety for Officers Inverter, commutation & chopper • TISCO power supply system. • Fundamentals of modern electrical drive – AC motor control Job Oriented & Automobile • Course on ADD-32 digital drive regulator –
AVTRON drive • Side discharge loader new • Compressor & pneumatic control • Course on ADD-32 digital drive regulator – AVTRON drive • Side discharge loader • WIDS-6 Loco • Course on ADD-32 digital drive regulator – AVTRON drive Safety, Hazard Prevention & First Aid • Course on direct torque control (DTC) AC drive • Gas safety for Supervisors • Course on SIMOVERT-P AC digital drive • Managing safety on shop floor • Course on SIMOVERT-P AC digital drive • Maintaining safety on shop floor • Course on SIMOVERT-P AC digital drive Computers • Awareness of AC drive • Course on direct torque control (DTC) AC • MS-Word & Excel drive • Understanding SQL • Siemens DC digital drive • Overview of Windows • Preliminary course on MS-ACCESS Electronics • Presentation by using power point for • Allen Bradley PLC5/25 level-1 Executives • Electronics for IEM personnels • MS-Word 7 Excel • Siemens PLC 135 U • Over view of ‘C++ • Workshop on digital technique • Terminal Operator Training • IEM orientation programme for Supervisors • UNIX for beginners • Workshop on Micro Controller • Visual basic • Maintenance of push button telephones • Visual basic with data base
• Email, Intranet, Internet Fluid Power (Hydraulics) • Basics of JAVA script • Industrial Hydraulics • Fundamentals of HTML • Electro Hydraulics • SAP production planning • Advanced Hydraulics • MS-ACCESS • Hands-on Hydraulic Circuits • Power Point • Windows 98 configuration & trouble shooting Fluid Power (Pneumatics) • Lotus Notes R5 messaging • Industrial Pneumatics • SAP material management • PLC based Pneumatic System • SAP plant maintenance • PLC controlled pneumatic systems • SAP cost report & cost flow • Electro pneumatics • SAP plant maintenance module • SQL and PL/SQL Steel Making • Developer 2002 • Introduction to Iron & Steel making for • SAP sales & distribution Finance Controllers • Basic course on WEB Page design Welding SO 9/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
DIVERSITY AND OPPORTUNITY
LA10 Description of equal opportunity policies or LA11 Composition of senior management and programmes, as well as monitoring systems to corporate governance bodies (including the ensure compliance and results of monitoring. board of directors), including female/male ratio and other indicators of diversity as culturally Tata Steel is equal opportunity employer. This has been articulated in the Code of Conduct. All advertisements appropriate.
of Tata Steel related to recruitments strongly carry this The male/female ratio at Tata Steel is 97:03. The message. During career progression also equal female employees pre-dominantly represent worker opportunities are given to all employees. The class and a few in the Officers cadre. Presently applications for employment do not carry columns like there are no women in board of directors or in top religion, province, mother tongue. New recruitments ten executives of the company. through Graduate Trainee, System Trainee & Trade Apprentices ensure induction of female candidates also. The company also employs bi-sexual (eunuch) candidates in its workforce. Violation of equal opportunity policy is redressed through the grievance redressal mechanism and Ethics Counsellor.
STRATEGY AND MANAGEMENT
HR1 Description of policies, guidelines, corporate structure, and procedures to deal with all aspects of human rights relevant to operations, including monitoring mechanisms and results.
Respect of individual is one of the core values/ beliefs of Tata Steel as indicated in Tata Code of Conduct (Annexure-II). Any violation to this effect is dealt with the established disciplinary procedure enumerated in our Works’ Standing Orders 1970.
The human rights issues are included in SNTI training programme. Tata Steel ensures protection of fundamental rights enshrined in the Constitution of India. There is an employee grievance redressal cell in Human Resource Management Department, which reviews and addresses the grievances. There was no recorded case during the reporting year on any violation of human rights. The detailed grievance redressal procedure is furnished in Annexure-IV. Formal and informal mechanisms are used to encourage employees to develop and utilize their fool potential as shown below;
Job Related Career Related & Started in Formal • Safety Training • Evening Classes • PEP Nite/QC Nite • Study Leave (higher studies) • Positional Training • Trade Test • Cluster Manning • Job Rotation • TOP Awards • Knowledge Management Informal • Review and Feedback • Information Library Networks • Picnic Grants • Window of the World • Mentoring of GTs • Weekly Talks • On the Job Development
Personal Development Programme arising out of HR restructuring through Performance Ethic Programme (PDP), an innovative process of PDP has been developed. It considers the training needs of the Officers not only for the purpose of effectively discharging present duties, but also for personal development and career progression. A “Toolkit” has been developed in-house by HR, which is used while formulating PDP. The assessors and assesses discuss the behaviour, gaps, challenges to decide the PDP which includes formal as well as on the job assignments to meet the aspirational target as well as organisational needs.
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HR2 Evidence of consideration of human rights impacts as part of investment and procurement decisions, including selection of suppliers/contractors.
Tata Steel has not presently instituted any human rights screens or mechanism but at present the contracts for supply items are signed with the suppliers with an undertaking to not to use child labour. During the reporting period Tata Steel also has also written to key suppliers to get their units ISO-14001 by 2005 failing which Tata Steel will discontinue the business dealings with them. As regards the contract labour inside the Steel Works and other Units the MOUs were signed between the Supply Chain Division of Tata Steel and the Contractor during reporting period to abide by the guidelines given in the box;
• No use of Child Labour.
• Training of each and every employee of contractor on safety, health and environment (any body not having a training certificate is not allowed to enter the Tata Steel premises).
• Follow the Operational Control Procedures under ISO-14001 and OSHAS-18001.
• Payment of minimum wages (the Personnel Managers of Tata Steel certify the payments at Contractor Site).
• Deduction of Provident Fund and Gratuity as per rules prevailing in the country/region.
• Payment of penalty on violations of environment, health and safety & Labour Laws.
HR3 Description of policies and procedures to evaluate and address human rights performance within the supply chain and contractors, including monitoring systems and results of monitoring.
The performance of the organization within the supply chain and the contractors is described in Section-5 on Environment Performance under suppliers and also under Section-3.16.
At present Tata Steel does not have a structured system to assess human rights performance of out locations suppliers under supply chain. However the contractors working in the premises of the organization are required to follow the employees benefit schemes and human right policy of the organization including payment of minimum wages, deduction of provident fund and child labour employment as explained above under HR2. Concerned departments do the monitoring of the contractor’s performance and wages are paid under supervision of HR. The tender notices and enquiries issued to the contractors during reporting period included clauses on human rights, safety and health and the bidders are required to conform their compliance to these clauses. At present there is no system to assess the performance at suppliers site as mentioned above.
HR8 Employees training on policies and practices concerning all aspects of human rights relevant to operations.
“Happy and enthused employees” is one of the most important pillars of VISION 2007 of Tata Steel to become EVA positive and to improve the quality of life of the employees and the communities we serve. Under VISION-2007 training all the employees have been covered and everyone has undergone 2 hours of training on this aspect. The details of the training imparted to the employees are furnished in LA16 & LA17 also. Human rights issues are covered under the training on Code of Conduct for the employees.
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NON DISCRIMINATION
HR4 Description of global policy and Employee Concerns related to Equal
procedures/programmes preventing all Opportunity Employer
forms of discrimination in operations, Year No. of Concerns
including monitoring systems and results 1999-2000 07
of monitoring. 2000-2001 05
2001-2002 06 Tata Code of Conduct emphasises on equal opportunities and non-discrimination. The HR Policy of Tata Steel lays tress on recognising the people as FREEDOM OF ASSOCIATION
primary source for its competitiveness. The organization is committed to equal employment HR5 Description of freedom of association
opportunities for attracting best available talent policy and extent to which this policy is ensuring cosmopolitan workforce, the quality of life universally applied independent of local laws, of its employees developing their talent and as well as description of procedures maximizing their productivity and also ensuring /programmes to address this issue. transparency, fairness and equity in all its dealings with the employees is another component of the Tata Code of Conduct emphasis on Freedom of organization’s HR Policy. Tata Steel has created a Association. Accordingly all non-Officer employees position of Ethics Counsellor to monitor any of the organization are the members of respective discrimination in its activities, services and products. Unions at different locations. The concerns monitored and resolved by Ethics
Counsellor during past three years are presented in the box.
CHILD LABOUR FORCED & COMPULSORY LABOUR
HR6 Description of policy excluding child labour HR7 Description of policy to prevent forced and as defined by the ILO Convention 138 and extent compulsory labour and extent to which this policy to which this policy is visibly stated and applied, stated and applied as well as description of as well as description of procedures procedures/programmes to address this issue, /programmes to address this issue, including including monitoring systems and results of monitoring systems and results of monitoring. monitoring.
As per various Standing Orders of Tata Steel, the There is no forced and compulsory labour in Tata Steel. minimum age required for the employment is 18 Legally it is prohibited in India. Grievance redressal years and hence Tata Steel engages no child committee and Ethics Counsellor adequately monitor labour. The recruitment process requires furnishing violation of such requirements. The grievance redressal of appropriate proof of age to ensure the age bar. procedure is furnished in Annexure-IV & Ethics Counsellor mandate is furnished in Annexure-V.
DISCIPLINARY PRACTICES
HR9 Description of appeal practices, including, HR10 Description of non-retaliation policy and but not limited to, human rights issues. effective, confidential grievance system.
Order#23 of the Works Standing Orders enlists the There is an established three tier Grievance
issues, which may be considered as misconduct. Management System in Tata Steel and it is
Order#24 prescribes the punishment for misconduct ensured that no retaliation takes place in the and Order#25 explains the procedures for dealing process after the resolution of the grievance. The with cases of misconduct. These orders are strictly process is so effective that there had been no implemented. These orders are in line with Standing industrial unrest/strike in past 70 years. For details Orders Act of India. of grievance redressal procedure please refer
Annexure-IV.
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SECURITY PRACTICES
HR 11 Human rights training for security Fire Service Calls personnel. Include type of training, number of Activity 00-01 01-02 Remarks persons trained, and average training duration. Attended Fire 81 64 - Calls in Town-
Tata Steel has full-fledged Fire Service ship area Department consisting of dedicated fire personnel, Special type 158 146 - which cater to the needs of Steel Works, the of Calls i.e. people of the industrial Township with a population Rescue, of more than 1.0 million approximately, and all the Water Supply, local industries. There is a special training centre Support during law & dedicated to the training of security personnel on order duty etc. issues like security practices and human rights. Fire - 662 From the year Trained home guards of Tata Steel along with Fire Prevention under review we
Brigade Service assist the District Administration awareness have started as and when required. programme to participative fire civilian during prevention mgmt. Tata Steel is fully associated with the off site religious training programme emergency planning of the region. The cost borne gathering for Town & District by Tata Steel to incorporating security and human Sports, Administration right is Rs. 4.2 million approximately. Exhibitions People. etc.
INDIGENOUS RIGHTS
HR 12 Description of policies, guidelines, and HR 14 Share of operating revenues from the procedures to address the needs of indigenous area of operations that are redistributed to people. local communities.
In line with the Group Purpose & Code of Conduct of the The expenditure on social and environmental organization, Tata Steel returns to the society what it earns. This evokes trust among consumers, employees, services during past four years is furnished shareholders and the community it serves. Tata Steel below in the table. has a Community Development & Social Welfare (Rs. In Million) Department. To implement the group purpose, a society SERVICES 98-99 99-00 00-01 01-02 promoted by Tata Steel called Tata Steel Rural Municipal 233.0 237.7 239.0 238.0 Development Society addresses the needs of the local Services people and the community around as explained in Community 44.0 42.6 40.6 40.0 Section-2.9. The performance indicators related to the Services work carried out by these two arms of the organization is furnished under sub-section on Community of this Medical 47.0 33.9 30.3 44.0 section. Please refer Section-3.13 also on precautionary Services approach and principles. Grants & 17.0 38.4 37.8 32.0 Donations TSRDS 32.0 29.0 31.0 38.0 HR 13 Description of jointly managed community Grants grievance mechanisms/ authority. Environment 640.0 860.0 720.0 795.0
Community Development & Social Services, Tribal TOTAL 1013.0 1241.6 1098.7 1187.0 Culture Society and Tata Steel Rural Development Society implement the community grievance PAT 2820 4230 5530 2050 management system. Local representatives including Ratio (%) 35.9 29.35 19.9 57.9 senior citizens are involved at all stages of the services Gross 63356 69433 78100 76931 rendered by these three departments. The concerns of Revenue the society are discussed, prioritised and integrated with Ratio (%) 1.6 1.79 1.41 1.54 the Business Excellence Model of concerned
department under TBEM.
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COMMUNITY
SO1. Description of policies to manage impacts on communities in areas affected by activities, as well as description of procedures/programmes to address this issue, including monitoring systems and results of monitoring.
I suggest that the most significant contribution Organized Industry can make is by identifying itself with the life and problems of the people of the Community to which it belongs, and by applying its resources, skills and talents, to the extent that it can reasonably spare to serve and help them... - J.R.D. Tata
Tata Steel recognises that its operations have several beneficial as well as adverse impacts on the community. Accordingly it has instituted several departments, societies, to address the specific impacts and also specific needs of the community groups. Tata Steel has defined its community as employees and their families, peripheral community up to 10 km from Works and Rural Community from 10-30 km from the Works. Accordingly Town Division addresses the needs of the employees and their families & peripheral communities. Tata Steel Rural Development Society addresses the concerns of rural community.
The community services are rendered by various agencies in Tata Steel under Dy. MD (CS) e.g.; Town Division, Tata Steel Rural Development Society and Tribal Culture Society. The programmes, procedures and the performance of these three agencies are elaborated here below. The balance scorecard of DMD (CS) is cascaded down to these departments for implementation.
TOWN DIVISION
Town Divisions serve the local communities and employees by providing civic amenities, market infrastructure and health & social services. The performance of various departments in Town Division is summarised here below.
Performance Highlights of Community Health Services
Civic Amenities in Non-TISCO Area (01-02) No. of Hand pump installed 4 nos. No. of Tube wells 8 nos. New Roads constructed 1.25 KM. M edals won by the community youths No. of Street lights installed 10 nos. (Nos.) 46 50 45 Mobile Community Health Services, consist of the 2 36 mobile medical vans and benefited, 92732 patients 40 GOLD during reporting period. 30 SILVER 20 2909 youths benefited through the job oriented BRONZE 55 10 2 44 vocational training programmes conducted at 12 Community Centres. 0 STATE ZONAL NATIONAL In the Sports activities the number of beneficiaries increased to 14802 as against 9484 in the previous year. The following medals tally speaks volumes. A total of 176 cases of family disputes were handled by our Employees Service Section of which 165 (93.75%) were settled amicably. With Through the Bal Vikas classes, those are aimed at orienting children from underprivileged section of the mutual consent, over Rs. 7.8 Million was recovered from the salaries of the employees and society towards formal education, 1403 children this amount was passed on to aggrieved family benefited. members during reporting period.
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Major initiatives by Community Services
Karigar, one-stop shop for ethnic handicrafts, was BENEFICIARIES OF COM M UNITY SPORTS
inaugurated at Bistupur on 6th February’ 02 by our (Nos.) Managing Director benefiting 31 local 20000 14802 97-98 organizations. 15000 98-99 4 career counselling workshops were conducted 8647 9484 10000 7804 7050 99-00 during the year. 00-01
5000 A 16 members’ team of visually challenged 00-02 persons and escorts (11+5) from National 0 Association for the Blind trekked to Darwa pass, 97-98 98-99 99-00 00-01 00-02 12600 feet above sea level.
BENEFICIARIES OF COM M UNITY HEALTH Integrated Customer Services SERVICES
A SAMPARK (Contact) Programme has been started (Nos.) to give more personalized care service to our 100000 92759 92733 employees. The aim is to have closer and one to one 84070 80000 97-98 interaction with them regarding Civil maintenance 68502 60000 98-99 work carried out in their houses. The Programme 51374 has covered nearly 6500 houses which is 30% of the 40000 99-00 total strength of Co’s houses in 01-02. 20000 00-01 00-02 0 Public Health & Horticultural Services 97-98 98-99 99-00 00-01 00-02
Dept. in line with Town Division has also taken initiatives for implementation of Environmental Management Beneficiaries of Vocational Training & Skill System (ISO-14001). Pre-certification Audit by Indian Development Register of Quality System, Calcutta (IRQS) was carried (Nos.) out from 19-21 March 2002. 3,500 2,909 PH & HS achieved 100% involvement of employees in 3,000 97-98 2,379 Quality Circles. All 148 Quality Circles of Dept. were 2,500 2,101 1,844 1,866 98-99 active during the year. 2,000 99-00 1,500 Environmental Sanitation 00-01 1,000 00-02 During the year 1,19,024 M.T. of garbage was removed 0,500 from the Township. 0,000 97-98 98-99 99-00 00-01 00-02 Immunization
Immunization Coverage Survey as per the guidelines of Blood Donation by motivated bustee dwellers WHO was conducted to assess the immunization status in the age group of 1-2 years of children, coverage of (Nos.) which was found to be 98%. 700 628 nd 600 2 Rounds of Intensified Pulse Polio Immunization 97-98 500 Campaigns were conducted in the month of Dec.’01 and 98-99 400 341 Jan’02 in which 1,47,839 doses of Polio vaccine were 277 99-00 given to the children in the Jamshedpur Township. 300 212 151 00-01 During the year, 53063 doses of oral polio vaccine 200 00-02 antigen, 2777 doses of Tetanus T oxide and 6116 100 doses of BCG vaccine were given. 6286 Children were 0 immunized against measles, 43570 children were given 97-98 98-99 99-00 00-01 00-02 DPT and 3812 children were administered D.T.
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Other Preventive measures against communicable
diseases : Tree Plantation Cumulative
Surveillance to maintain hygienic condition in Eating 500000 440704 Houses was intensified. 298 numbers of water samples 450000 389057 were examined and Health Education was imparted to 400000
Hotel owners and workers. 579 cases of various 350000 311434 communicable diseases were investigated and 300000 261010 250000 197302 appropriate control measures were taken. 200000 150000 85347 95897 85347 95897 Mosquito control measures No. of Trees 100000 50000 0 1,38,927 houses were searched for domestic breeding. 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02
Breeding detected in 16,835 houses and appropriate Years measures to control mosquito nuisance was adopted. Two Nos. of small fogging machines were procured to provide extended coverage.
Veterinary Hospital Complaints Received & Attended
40000 A total number of 6897 cases were treated at Vet. 36335 35000 Hospital. Total Income from Veterinary Hospital was 32465 30000 30713 Rs.1,80,375.00. 27782 25000 24528 Health Education 20000
15000 15892 4 Nos. of Health Exhibitions were organized during 12757 the year 10000
No. of Com plaints 544 Nos. of Health Talks were conducted at various 5000 0 Bustees and Community Centres. Weekly immunization cum Health awareness camps 95-96 96-97 97-98 98-99 99-00 00-01 01-02
was organized in Bustees and peripheral areas. Years
Town Electrical
Innovative technology was introduced for switching off alternate street lights through down count timer Garbage Removal wherever possible after midnight, resulting saving of 545 140000 Mega Watt Hour. 119024 114826 112966 117068 120000 107378 Strengthening & modification in power distribution 96686 101138 100000 system has been done at Kasidih ,Sonari, Sidhgora, 80000
Burmamines area for improving the quality of life & for 60000
better customer satisfaction. 40000
20000 Lighting arrangement was made at Gopal Maidan to Removal in M.T. 0 conduct Night Cricket tournament. 95-96 96-97 97-98 98-99 99-00 00-01 01-02
Special illumination at Jubilee Park was done to Years celebrate the first Anniversary of Jharkhand State formation.
Construction of Sulabh Sauchalaya (2 Nos), Town Planning & Engineering Construction of GUEST HOUSE at DIMNA., Construction of WELCOME GATE (BIRSA MUNDA Providing 4 Nos. FOUNTAINS AT SAKCHI ISLAND, GATE) at Mango Bridge to improve the entrance to the Construction of 2 nos. Garages with Prestressed city was completed. Precast Concrete in Bistupur and Detachable th Security Gumti in C.H. Area, 5 Nos. Electrical sub- Construction of 5 Office Block at Jamshedpur station for Augmentation of Power Supply in Town, Transportnagar, Mango. Construction of NEEL SAROVAR in ULIYAN, Construction of AMUSEMENT PARK in JUBILEE PARK., Construction of Road, Outer Peripheral Road – 5.0 KM – 1st Lane, Development of Children Park in Rash Behari Path, Uliyan.
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AVERAGE DRINKING WATER RAW SEWAGE & FINAL EFFLUENT CONSUMPTION IN TOWN QUALITY AT BARA GARDEN (MILLION GALLONS PER DAY) 240 230 220 210 38 200 TSS OF RAW 190 37 180 170 36 160 150 35 140 130 34 120 110 100 33
TSS/BOD(mg/l) 90 80 BOD OF RAW 32 70 60 31 50 40 TSS NORM AS PER WATER IN MG 30 30 BOD NORM AS PER PCB 20 29 10 0 Jan-'02 July-'01 May-'01 April-'01 June-'01 March-'02 JUL JAN August-'01 JUN FEB SEP APR OCT October-'01 MAY DEC AUG NOV MAR February-'02
MONTHS November-'01 December-'01 September-'01 PCN TSS = 30mg/l,BOD=20mg/l MONTH
TSS/R.Sewage BOD/R.Sewage 2000-2001 2001-2002 TSS/F.E. BOD/F.E.
SOCIAL SIDE OF TATA MAIN HOSPITAL
TMH at a glance National Awards 98 – 99 99 – 2K 00-01 01-02 Dr. Ashok Sunder Symposium First prize Authorised Beds 782 740 740 740 Dr. Asif Ahmed MBBS paper First prize
Dispensaries 9 9 9 9 First Aid Dr. Upama Dash Short paper First prize
Centres 5 5 5 5 Indoor Dr. M R Dutta Long paper Second Admission 39,859 39,105 37,189 39,836 prize Outpatient Dr. Sujata Mitra TQM Paper First prize Visit (TMH & Branch Dr. Sudhir Malhotra Poster First prize Dispensaries) 13,78,341 14,15,449 13,89,070 13,41,959 Dr. Sujata Mitra Best Lady Speaker
Family Planning Activities
98–99 99-2K 2K-01 01-02 Immunization Activities 98–99 99-2K 2K-01 01-02 Tubectomy 742 639 570 533 TOTAL IUCD 483 472 372 226 BENEFI- CIARIES 44,374 50,842 38,228 27,356 MTP 388 425 377 375
Preventive, Promotive, Awareness Programme Eye Care Camps in Rural Areas 98–99 99 - 2K 2K-01 01-02 98 – 99 99-2K 2K-01 01-02 Drugs & -- - 2134 1020 No. OF 19 18 12 11 alcohol CAMPS HIV & AIDS -- -- 6800 12,000 TOTAL 1,446 1976 1076 1874 BENEF- AIDS & 3,735 5563 4942 3446 ICIARIES HEPATITIS
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Screening Health Camps Creative / Rehabilitative
98 – 99 99 - 2K 2K-01 01-02 98- 99- 2K- 01-02 By Dental 2,700 1930 1872 1957 99 2K 01 Department ENT surgeries in camp 890 ------Audiological 110 656 840 852 by Bihar Govt. Examination Orthopaedic surgeries 100 122 150 --- Hearing Aid 53 36 38 in camps
distribution
Counselling of STD ---- 276 252 192 cases (Sessions)
Immunization-Hepatitis “B” & Pulse Polio Counselling at AIDS 282 299 114 80 98-99 99-2K 2K-01 01-02 Cell (Sessions) Hepatitis 'B' 20,891* 2,923 1,852 1,624 Hydrocoele surgeries 68 ---- 64 62 Pulse 27,173 14,792 6,391 with Rotary Club Polio Free Service at Loyola 2,876 2,982 1,017 606 / IMA Clinic
Admissions to TMH Category-wise 98 – 99 99-2K 2K-01 '01-'02 Employees 4,621 (11.59%) 4,136 (10.58%) 3,550 (9.54%) 3,647 (9.16%) Families 19,512 (48.95%) 20,246 (51.77%) 20,225 (54.38%) 21,625 (54.28%) Dependent Relations 472 (1.18%) 376 (0.96%) 323 (0.86%) 302 (0.76%) Associated Company 1,081 (2.71%) 1,147 (2.93%) 1,269 (3.41%) 1,263 (3.17%) Non-Employees (NE) 14,070 (35.29%) 13,134 (33.58%) 11,731 (31.54%) 12,915 (32.42%) Govt. Employees 103 (0.25%) 66 (0.18%) 91 (0.24%) 84 (0.21%) Total 39,859 39,105 37,189 39,836 % of N.E. Cases 39.45 % 37.65 % 36.06 % 36.56 %
SPORTS & ADVENTURES Facilities available at the JRD Tata Sports Complex: Sports Hostel & Residential wing with JRD TATA SPORTS COMPLEX accommodation for 250 persons.
Provision of get together at the Eastern wing of JRD Sports Complex
Tata Archery Academy, Tennis Training Centre
Boxing Training Centre Athletic Training Centre
Chess Training Centre Cricket Training Centre
Handball Training Ladies Fitness Centres/
Centre Gymnasium Multi Gymnasium. Weight lifting hall
Volleyball Ground Hockey Ground
Handball Ground Football Ground
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The Steel Company’s contribution to the promotion of Arjuna Award Winners sports gets illustrated by the laurels its employees have 1961 P K BANNERJEE Football won over a period of time from Govt. of India. The boxes 1962 CHUNI GOSWAMI Football indicate the Arjuna Award Winners, Daronacharya Award 1965 ARUN GHOSH Football Winners, and Padamshrees Medal Winners while in the K L POWELL Athletics service of the company. The organization provides 1967 PARVEEN KUMAR Athletics avenues to the youngsters to develop their skill in various 1971 EDWARD SEQUEIRA Athletics types of sports. Necessary infrastructure has been created 1974 SHIVNATH SINGH Athletics in all locations and Sports Complexes has been provided all 1975 AMAR SINGH Cycling over the company. The JRD Tata Sports Complex Stadium 1977 T VIJAYARAGHAWAN Basketball houses an international quality football ground and 8 lane 1978 SUBRATA DUTTA Powerlifting micro synthetic track apart from two baskets ball courts, 1979 SURESH KR MISHRA Volleyball tennis court, a hockey ground, archery ground, handball/volleyball ground, chess and boxing centres and a 1980 MD. HABIB Football state-of-the-art gymnasium. Tata Steel Adventure Club for sports such as rock climbing, river rafting and parasailing, 1982 V C BORROMEO Athletics are also housed in the JRD Tata Sports Complex. 1983 D BARUA Chess 1984 Cricket RAVI SHASTRI The Steel Company has also provided a flying club and numerous private entertainment clubs that provide BACHENDRI PAL Mountaineering opportunity for golf, tennis, squash, billiards, horse riding, swimming, etc. In all there are five clubs for the officers 1885 A BHATTACHARJEE Cricket and employees in the town of Jamshedpur and one club at 1986 JAIPAL SINGH Boxing each unit which provide entertainment facilities mentioned 1986 PREM C DEGRA Body Building above. 1987 BALWINDER SINGH Athletics 1987 BAGICHA SINGH Athletics Societies supported by Tata Steel 1989 MERCY KUTTAN Athletics The following professional bodies are supported by Tata Steel and several meetings and interactions are held with LIMBA RAM Archery these professional bodies to understand their concerns as 1990 BULA CHOUDHURY Swimming part of stakeholder engagement. 1991 SANJEEVA SINGH Archery 1993 CAWAS BILLIMORIA Judo • Operational Research Society of India (ORSI) 1996 MORAAD ALI KHAN Shooting • Institute of Charted Accounts of India (ICAI) AJIT BHADURIA Athletics • Computer Society of India (CSI) R K SANGWAN Boxing • Indian Value Engineering Society (INVEST) 1997 SOURAV GANGULY Cricket • Jamshedpur Management Association (JMA)
• Indian Institute of Supervisory Management (IISM) Daronacharya Award Winners • Indian Ceramic Society (ICS) • The Institute of Cost & Works Accounts of India Ken O Bosen Athletics
(ICWAI) Illyas Babar Athletics • The Indian Institute of Materials Management (IIMM) • Indian Institute of Industrial Engineering (IIIE) Padmashrees Award Winners • Institution of Standard Engineers (SEI)
• National Institute of Personnel Management (NIPM) P K BANNERJEE Football
• Confederation of Indian Industry (CII) CHUNI GOSWAMI Football • Celluloid Chapter of Jamshedpur (CCJ)
• Indian Institute of Metals (IIM) V C BORROMEO Athletics • The Indian Institute of Welding (IIW) BACHENDRI PAL Mountaineering
PREM C DEGRA Body Building
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TATA STEEL FAMILY INITIATIVES FOUNDATION
Bringing…..Smiles
Understanding the determinants of a successful family planning programs a department was created to address family planning concerns. There are 28 clinics provided only in Jamshedpur for this service. Each unit has similar facilities across the organization. This service is now named as Tata Steel Family Initiative Foundation. The year under review saw a progressive shift towards addressing the family planning concerns of the younger generation of women and men.
The principle aims and objectives of the Foundation is to ensure effective delivery of appropriate family welfare services at affordable cost.
Capacity Building
Tata Steel Family Initiative Foundation continuously provides training to its staff members at different levels for upgrading their theoretical and practical skills.
Topics like listening and counselling skills reproductive health care services, demand fulfilment and prevention of HIV (+) /AIDS & Drug & Alcohol Abuse were covered.
To extend the services and ensure more effective delivery of system. The Tata Steel Family Initiatives Foundation was formed for greater outreach and networking with over 30 NGO’s. With the support of the Tata Steel’s top management and an illustrious board of Trustees The Tata Steel Family Initiatives Foundation will emerge as a winner in the field of Population Stabilization and contribute significantly to the nation’s population policy 2000.
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Networking
The activity of Reproductive Health and Mother & Child Health is a vast subject – TSFIF alone cannot achieve the desired results. So we have joined hands with leading NGO’s. At present collaborations have commenced / or being worked out with the following:
• Y.M.C.A. – Ranchi clinic opened in October, 2001 • Packard foundation- Staff training • USAIDS in area of HIV(+) / AIDS • Planned parenthood, USA – in area of RCH • CARE – Jharkhand – RCH & Child Nutrition • Institute of international education (IIE), New Delhi – Collaboration for training of staff. “The population problem should be officially and • International council on population publicly recognised as a major threat to the programme (ICOMP), Malaysia – progress, and ultimate survival of our nation as a Training of staff modern and prosperous state. The country’s health and the family planning programme must, therefore SAHAS PROJECT (Strategies to improve Adolescent be treated as a basic national objective involving all Reproductive Health And Rights Through policies and plans, directly and in-directly, Advocacy And Services) affecting the people” J. R. D. Tata A new project SAHAS has been initiated by Family Initiative Foundation with the following objectives during the year 2000.
To educate the youth (ages 12-24) on sexual, reproductive health education, reproductive rights and contraceptive services. Mobilise and educate the communities against gender discrimination, early marriage and violence against girls and women Motivate young couples to plan and space their children. To prepare Youth Advocates to educate their peers about gender and sexuality, HIV/AIDS and other reproductive health and rights.
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TRIBAL CULTURAL SOCIETY (TCS)
Tribal Cultural Society is a non profit voluntary organization promoted by Tata Steel, to partner sustainable solutions to the concerns of scheduled caste & scheduled tribe communities residing in peri-urban areas around Jamshedpur and near by Units. The activities of the society are summarized in the boxes below.
Empowerment Youth Development
Empowerment certainly changes ones outlook to life. Every individual deserves the chance to reach an improved status in life.
Dr. J. J. Irani
Youth, especially tribal excel in various disciplines like, Archery, Athletics and football because of their physique, life style and culture.
TCS provides a platform through coaching and training for the youth to compete at the Merit Test for awarding financial assistance to the district, state and international levels. meritorious ST & SC students
Women’s Development Cultural & Heritage
Women from Mahila Samities/SHG during Training Programme at TCC
TCS tries to build integrated “communities” where women would be empowered to participate in the developmental process, bringing their own needs, perspective and abilities on board. Recognising the role and encouraging women in Preserving the heritage the field of social development to be sustained, TCS initiates and organises developmental programmes for TCS initiates efforts to revive and maintain the women in the areas/villages. The vision is to help women culture and heritage of tribals of the region. be empowered through various types of training Various cultural programmes like tribal dance, programmes and generate income to add and improve drama, music and song competitions are economic status of the family. Training classes for women organised to maintain and provide opportunity to are organised in tribal populated villages, urban slums and develop the richness of their culture. bustees. Items made by these women are displayed in Tribal leaders and other personalities are fondly various fairs and melas in the city for sale. The society remembered and offered homage on their birth conducts sewing, embroidery, painting, knitting and Zari anniversaries such as Birsa Munda, Pandit work classes. Classes in fruit preservation, bari, papad, Raghunath Murmu, Sidhu Kanhu, Guru Kol. Lako canning, agarbati, mushroom cultivation etc. also are being Bodra, Jaipal Singh Munda. conducted as and where it is demanded.
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Income Generation Health & Hygiene
Networking/Interaction with Bank Mrs. Muthuraman in Blood Donation Camp
Income generation through Socio-Economic Another major thrust area of TCS is Health & activities have become a major part of TCS's Hygiene. TCS has a wide range of health and responsibility. The society encourages both men hygiene related activities starting from providing and women to undergo self-employment training basic amenities, to working for reproductive in various fields. In 2001-02, TCS organised a health to rendering services in the villages. number of programme aimed at creating self employment opportunities for the communities.
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TATA STEEL RURAL DEVELOPMENT SOCIETY
In 2001-2002, TSRDS made strides in sharing with rural Indians within its operational area, particularly the youth, the blueprint and the means to become masters of their
own destiny within the very precincts of their villages. The goal of TSRDS is to transform the village into a unit of development. It does this through its multi-pronged strategy of income generation, empowerment and health and hygiene, irrigation, agri-extension, and Self Help Groups. During the reporting year TSRDS assisted the rural community in following areas; • Income generation • Health & hygiene • Drinking water • Empowerment
• Forestry
• Animal husbandry • Education and awareness • Sports and culture • Capacity building
In the area of income generation TSRDS assisted the villages around Tata Steel’s operations in bringing wasteland under cultivation and developing the skill of villagers in cash crop, poultry and piggery development. The women folks were trained in growing saplings for fruits as well as forestry plants and sale of the same through self help groups this has improved the income of the villagers.
In the area of health and hygiene TSRDS focused on treatment of TB, Leprosy, Nite blindness, Diarrhoea, Malaria, Skin diseases, etc. Under immunization programme the children were given the doses of DPT, BCG, Measles, Titanus, and Polio. The camps were organized for eye care services and family planning. Low cost toilets were constructed in several villages. Blood donation camps were organized at primary health centres. Several programmes for AIDS awareness were also organized.
To empower the villagers the agriculture appliances, better quality of seeds were distributed and training on use of these appliances was imparted. Biogas plants were constructed in eight villages. Adult literacy programme were organized along with coaching for sports. At village level several inter village tournaments and cultural programme were conducted. Life Line Express Hospital was sponsored during 19th Nov. to 20th Dec. at Ghatsila and during 20th Feb. to 23rd March at Jasidih where villagers were given treatment in hearing, eye care, and surgery.
List of Collaborating Agencies (2001-2002) Non-Government : NGOs
Government LD Jhaveri Trust, Japan Association Pour Une Terre Plus Humaine, France Govt. of India Sight Savers International Govt. of Orissa (Royal Commonwealth Society for the Blind, UK) Govt. of Bihar CARD International (India, Bihar) Govt. of Jharkhand UNICEF CAPART New Delhi/ Patna Gram Vikas Kendra Orissa Renewable Energy Development Agency Lions Club Orissa Marketing Federation Rotary Club Non-Government : Corporate Gandhi Labour Foundation, Puri Tata Sponge Iron Limited Rashtriya Gramin Vikas Nidhi Small Industries Development Bank of India (SIDBI) Voluntary Blood Donors Association of India State Bank of India (Jamshedpur Chapter) Frontline Associates Delhi School of Social work TISS. Mumbai Coca Cola Limited Hindustan Petroleum FRCH, Pune Bilati, Orissa Ghalchiroli Tata Council for Community Initiatives NIPCCD
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COMMUNITY Contd… SO4 Awards received relevant to social, ethical, and • British Safety Council Award for Tata environmental performance. Steel.
• Vishwakarma Rashtriya Puraskar for During the year Tata Steel has won several prestigious suggestion initiatives. awards both in its business and social performance. A rd summary of few of these awards is given below. Some of • 3 Prize in Regional Management the awards were received during reporting period for the Games. rd performance in the previous reporting year. • 3 Time Prime Minister’s Trophy to Tata Steel. • Corporate Excellence Awards by Economic Times in • SAP Star Installation Award. July 2001. • Mohta Award for Value Engineering – 8th • National Awards for Excellence in Corporate time. Governance for the year 2000 by Finance Ministry and Unit Trust of India. • CII-EXIM Award for Business Excellence. • Shree Sitaram Rungta Social Awareness Award by • Ohio State University honours Ratan Federation of Indian Mining Industry for the year 2000 Tata. for outstanding social services in and around Joda • Tata Steel’s Website declared best by Mines. IISI, Belgium. • Dr. Amit Chatterjee Conferred Helen Keller Award – • Indira Priyadarshini Vrikshamitra Award World Disability Day. for Colliereis. • World Steel Dynamics Award for Dr. J J Irani. • Indira Priyadarshini Vrikshamitra Award • IIM Quality Award 2000-2001. for Mines. • DSIR National Award for Tata Steel. • Dr. J J Irani Conferred Lifetime Achievement Award • National Safety Award for Tata Steel.
• ISO-14001 EMS Certification to Tata Steel’s Growth • FIMI Environment Award 2001-2002. Shop & Cold Rolling Mill. • Young Managers Championship • PCRA Energy Conservation Award 2001
• EEPC Award for Tata Steel.
BRIBERY AND CORRUPTION SO2 Description of the policy, procedures/ Concerns Year 2001-2002 management systems, and compliance Clause Description No. of %age of concerns mechanisms for organizations and employees TCOC addressing bribery and corruption. 1 National Interest 1 23 4 Equal Opportunity 6 13.3 Employer All the Officers of Tata Steel have signed Tata Code rd of Conduct. Tata Code of Conduct has a specific 13 3 Party Represen- 4 9 tation (suppliers clause pertaining to bribery and corruption. We have conduct) an Ethics Counsellor to ensure all the issues 17 Ethical Conduct 17 38 pertaining to ethics. During the year the concerns 18 Regulatory 9 20 related to Code of Conduct were analysed by Ethics Compliance Counsellor and a summary is presented in the box. 20 Conflict of Interest 2 4.4 21 Confidential 1 2.2 Information 22 Protecting Co’s 1 2.2
Concerns-Stakeholder-wise Assets (Misusing Co’s Assets) Period Total Emplo- Supp- Annon- Mana- 23 Citizenship 2 4.4 yees liers ymous gement 24 Integrity of Data 1 2.2 99-00 22 17 1 4 - 25 Reporting of 1 2.2 00-01 40 24 3 14 - Concern 01-02 45 18 14 7 6 TOTAL 45 100%
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POLITICAL CONTRIBUTION COMPETITION & PRICING SO3 Description of policy, procedures/ management SO6 Court decisions regarding case pertaining systems, and compliance mechanisms for managing to anti-trust and monopoly regulations. political lobbying and contributions. There is no case pending in any Court pertaining to Tata Steel does not encourage any political lobby or violation of anti-trust and monopoly regulations. contribution to political parties as per the Tata Code of SO7 Description of policy, procedures/ Conduct (Clause#7). management systems, and compliance SO5 Amount of money paid to political parties and mechanisms for preventing anti-competitive institutions whose prime function is to fund political behaviour. parties or their candidates. The organization follows the Tata Code of Conduct Tata Steel has not paid any money to political parties and monitors the compliance related to various during the reporting year in accordance with its clauses of Code of Conduct (Annexure-I). The commitment to Tata Code of Conduct (Clause#7). monitoring results are furnished under SO2.
CUSTOMER, HEALTH & SAFETY PRODUCTS & SERVICES
PR1 Description of policy for preserving customer PR2 Description of policy, procedures/ health and safety during use of products and services, management systems, and compliance and extent to which this policy is visibly stated and mechanisms related to product information and applied, as well as description of labelling. procedures/programmes to address this issue, including monitoring systems and results of There are no regulations on product information and monitoring. labelling other than physical dimensions and chemical composition of various products Tata Steel has not instituted any specific procedure for manufactured by Tata Steel. Tests certificates are preserving customer, health & safety during the use of its issued along with the deliveries to the customers. products, however, the steel products are environment friendly and do not pose any health or safety hazard during their use. Tata Steel addresses the environmental issues PR7 Number and type of instances of non- of the products only by carrying out Life Cycle Assessment compliance with regulations concerning product Studies to reduce the environmental burdens during production and mining operations. information and labelling, including any penalties or fines assessed for these breaches. PR4 Number and type of instances of non-compliance with regulations concerning customer health and No instance of non-compliance. safety, including the penalties and fines assessed for these breaches.
There had been no instance of non-compliance with PR8 Description of policy, procedures/ regulations related to health and safety aspects of our management systems, and compliance product nor have any fines/penalties been imposed. mechanisms related to customer satisfaction, including results of surveys measuring PR5 Number of complaints upheld by regulatory or customer satisfaction. Identify geographic areas similar official bodies to oversee or regulate the health covered by policy. and safety of products and services.
There had been no complaints during the reporting year.
Tata Steel regularly monitor the customer PR6 Voluntary code compliance, product labels or satisfaction index through various inters actions as awards with respect to social and/or environmental elaborated in the chapter on Governance & responsibility that the reporter is qualified to use or Management. We also engaged 3rd parties to carry has received. out customer satisfaction survey. The results of Tata Steel is a signatory of Global Compact and CoRE customer satisfaction survey are furnished in the BCSD Charter (please refer Annexure-I & II). The list of figure on next page. awards won by Tata Steel during reporting year is furnished in SO4. ISO-9001 & 14001 standards are also implemented in the organization and units are certified.
The products are not eco/safety levelled.
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Figure-Trends in improvement in CSI ranks Year 2001 2000 1999 1998 1997 1996 Tata Steel 1 1 1 1 1 1 Bhilai 3 5 2 4 3 5 VSP 2 3 2 3 2 2 Essar 5 2 2 NA NA NA Bokaro 5 5 3 4 4 6 Durgapur 2 5 4 2 6 4 Rourkela 4 6 5 5 5 7 IISCO Not 4 5 3 3 3
given I am writing to convey my deep appreciation of the advertisement, SOURCE : IMRB 2000 & ORG MARG-2001 which Tata Steel has put out recently in several magazines, showing the close association of Jamshetji Tata and JRD Tata a many great leaders of India's Freedom Movement. I had read time Overall Customer Satisfaction Index back about the amazing correspondence between Jamshetji Tata and Swami Vivekananda and their joint voyage to America. I had then thought of suggesting to you that your Group highlight this 72 74 75 70 inspiring but little-known part of the history of India's industrial 67 67 70 and scientific development. I was therefore heartened to see that 65 you have already translated this concept into communication. 60 You will agree that this concept (Tata Group's association with the 97-98 98-99 99-00 00-01 01-02 nationalist cause, both before and after Independence) has immense communicative potential beyond the ad that has now Target-75 appeared in a section of the print media. It needs to be communicated widely in diverse creative messages through television, in the non-English print media, outdoor media and in ADVERTISING other ways targeted at specific influential audiences. This would no doubt be useful to your Group, reestablishing and further
PR9 Description of policies, procedures/ management reinforcing the Tatas' unique nationalist legacy. But in writing this systems, and compliance mechanisms for adherence letter I am prompted by the larger benefit that such communication to standards and voluntary codes related to would bring to the new generation of entrepreneurs in our country who know little about the close compact between the pioneers of advertising. Identify geographic areas covered by India's industrialization and the leadership of the Freedom policy. Movement.
Tata Steel’s advertises for its corporate image and product promotion. The advertising campaigns have been Even in today's age globalisation, India's political and business establishments need nationalism as a source of inspiration, energy governed by the Ethical standards advocated by and direction – enlightened and broad minded nationalism which Advertising Council of India. Our campaigns have been does not shut its eyes to the changes in the international situation appreciated by none less than Prime Minister of India’s that inevitably take place from time to time but which, Office (a copy of the letter from PM’s Office shown in the nevertheless, does not shy from being assertive when national box). interests ate at stake. This is the true meaning of Swadeshi, an idea that is as relevant now as in the time of Gandhiji and Jamshetji PR10 Number and types of breaches of advertising Tata, although its meaning and application have doubtlessly and marketing regulations. changed.
There had been no breaches of advertising and marketing Before I conclude, let me express another bit of appreciation – for regulations during the reporting year. the new Indica that I saw at the Auto Expo last month. Very best wishes.
RESPECT FOR PRIVARY
PR3 Description of policy, procedures/ management
systems, and compliance mechanisms for consumer Yours sincerely, privacy. Identify geographic areas covered by policy.
The privacy related to consumer information, such as, the specifications of special products developed for specific (Sudheendra Kulkarni) consumers are protected through confidentiality agreements.
PR11 Number of substantiated complaints regarding breaches of consumer privacy.
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SECTION-7
ANNEXURES
CONTENT INDEX
• Annexure-I (Global Compact) A2
• Annexure-II (Tata Code of Conduct) A2
• Annexure-III (CoRE Charter) A4
• Annexure-IV (Grievance Procedure) A5
• Annexure-V (COC Mandate) A8
• Annexure-VI (Abbreviations & Glossary) A9
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Annexure-I Annexure-II
GLOBAL COMPACT - THE NINE PRINCIPLES CODE OF CONDUCT (adopted across the
st Tata Group in1998-99) (visit At the World Economic Forum, Davos, on 31 www.tatasteel.com for complete CoC) January 1999, UN Secretary-General Kofi A. Annan challenged world business leaders to Clause pertaining to sustainability from Tata “embrace and enact” the Global Compact, both Code of Conduct (25 numbers total) is in their individual corporate practices and by highlighted below; supporting appropriate public policies. These principles cover topics in human rights, labour National Interest (Clause#1)
and environment: A Tata Company shall be committed in all its Human Rights actions to benefit the economic development of the countries in which it operates and shall not The Secretary-General asked world business to: engage in any activity that would adversely Principle 1: support and respect the protection affect such objective. It shall not undertake of international human rights within their sphere any project or activity to the detriment of the of influence; and Nation’s interests or those that will have any adverse impact on the social and cultural life Principle 2: make sure their own corporations patterns of its citizens. A Tata Company shall are not complicit in human rights abuses. conduct its business affairs in accordance with
Labour the economic, development and foreign policies, objectives and priorities of the Nation’s
The Secretary-General asked world business to government and shall strive to make a positive contribution to the achievement of such goals uphold; at the international, national and regional level Principle 3: freedom of association and the as appropriate. effective recognition of the right to collective bargaining; Competition (Clause#3)
Principle 4: the elimination of all forms of forced A Tata Company shall fully strive for the and compulsory labour; establishment and support of a competitive open market economy in India and abroad and Principle 5: the effective abolition of child shall co-operate in the efforts to promote labour, and progressive and judicious liberalisation of trade and investment by a country. Principle 6: the elimination of discrimination in respect of employment and occupation. Specially, a Tata Company shall not engage in activities, which generate or support the Environment formation of monopolies, dominant market positions, cartels and similar unfair trade The Secretary-General asked world business to: practices. Principle 7: support a precautionary approach to environmental challenges; A Tata Company shall market its products and services on its own merits and shall not make Principle 8: undertake initiatives to promote unfair and misleading statements about greater environmental responsibility; and competitors’ products and services. Any collection of competitive information shall be Principle 9: encourage the development and made only in the normal course of business diffusion of environmentally friendly and shall be obtained only through legally technologies. permitted sources and means.
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Annexure-II (Contd….) would comprises, to initiate and support community initiatives in the field of community Equal-Opportunities Employer (Clause#4) health and family welfare, water management, vocational training, education and literacy and A Tata Company shall provide equal encourage application of modern scientific and opportunities to all its employees and all managerial techniques and expertise. This will qualified applicants for employment without be reviewed periodically in consonance with regard to their race, caste, religion, colour, national and regional priorities. The company ancestry, marital status, sex, age, nationality, would also not treat these activities as optional disability and veteran status. Employees of a ones but would strive to incorporate them as Tata Company shall be treated with dignity and integral part of its business plan. The company in accordance with the Tata Policy to maintain a would also encourage volunteering amongst its work environment free of sexual harassment, employees and help them to work in the whether physical, verbal or psychological. communities. Tata companies are encouraged Employee policies and practices shall be to develop social accounting systems and to administered in a manner that would ensure that carry out social audit of their operations. in all matters equal opportunity is provided to those eligible and the decisions are merit-based. Public Representation of the Company and the Group (Clause#12) Health, Safety and Environment (Clause#8) The Tata Group honours the information A Tata Company shall strive to provide a safe requirements of the public and its stakeholders. and healthy working environment and comply, in In all its public appearance with respect to the conduct of its business affairs, with all disclosing company and business information regulations regarding the preservation of the to public constituencies such as the media, the environment of the territory in operates in. A financial community, employees and Tata Company shall be committed to prevent the shareholders, a Tata Company or the Tata wasteful use of natural resources and minimise Group shall be represented only by specifically any hazardous impact of the development, authorized directors and employees. It will be production, use and disposal of any of its the sole responsibility of these authorized products and services on the ecological representative to disclose information on the environment. company.
Quality of Products and Services (Clause#9) Ethical Conduct (Clause#17)
A Tata Company shall be committed to supply Every employee of a Tata Company, which goods and services of the highest quality shall include whole-time Directors and the standards backed by efficient after sales service Managing Director, shall deal on behalf of the consistent with the requirements of the Company with professionalism, honesty, customers to ensure their total satisfaction. The integrity as well as high moral and ethical quality standards of the Company’s goods and standards. Such conduct shall be fair and services should at least meet the required transparent and be perceived to be as such by national standards and the company should third parties. endeavour to achieve international standards. Every employee shall be responsible for the Corporate Citizenship (Clause#10) implementation of and compliance with the Code in his professional environment. Failure A Tata Company shall be committed to be a good corporate citizen not only in compliance to adhere to the Code could attract the most severe consequences including termination of with all relevant laws and regulations but also by actively assisting in the improvement of the employment.
quality of life of the people in the communities in which it operates with the objective of making them self reliant. Such social responsibility
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Annexure-II (Contd….) Annexure-III (Contd….)
Regulatory Compliance (Clause#18) Integrated Management: Every employee of a Tata Company shall, in his business conduct, comply with all applicable To integrate these policies, programs and laws and regulations, both in letter and in spirit, practices into each business as an essential in all the territories in which he operates. If the element of management in all its functions. ethical and professional standards set out in the applicable laws and regulations are below that of Employee Education: the Code then the standards of the Code shall prevail. To educate, train and motivate employees to conduct their activities in an environmentally Political Non-Alignment (Clause#7) responsible manner.
A Tata Company shall be committed to and support a functioning democratic constitution Prior Assessment: and system with a transparent and fair electoral system in India. A Tata Company shall not To assess environmental impacts before support directly or indirectly any specific political starting a new activity or project and before party or candidate for political office. The decommissioning a facility or leaving a site. Company shall not offer or give any company funds or property as donations, directly or Products and Services: indirectly, to any specific political party, candidate or campaign. To develop and provide products or services those have no undue environmental impacts and are safe in their intended use, that are Annexure-III efficient in their consumption of energy and CoRE SUSTAINABILITY CHARTER natural resources, and that can be recycled, reused, or disposed of safety. Objective of the Charter: Customer Advice: To express support publicly for these principles and to provide a basis for pursuing To advise, and where relevant educate, environmental improvements at the corporate customers, distributors and the public in the level. safe use, transportation, storage and disposal of products provided; and to apply similar Principles: considerations to the provision of services.
Corporate Priority: Facilities and Operations:
To recognise environmental management as To develop, design and operate facilities and
among the highest corporate priorities and as a conduct activities taking into consideration the
key determinant to sustainable development; to efficient use of energy and materials, the
establish policies, programs and practices for sustainable use of renewable resources, the
conducting operations in an environmentally minimisation of adverse environmental impact
sound manner. and waste generation, and the safe and
responsible disposal of residual wastes. Process of Improvement: Research: To continue to improve corporate policies, programs and environmental performance, To conduct or support research on the taking into account technical development, environmental impacts of raw materials, scientific understanding, consumer needs and products, processes, emissions and wastes community expectations, with legal regulations associated with the enterprise and on the as a starting point. means of minimizing such adverse impacts.
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Annexure-III (Contd...) Annexure-III (Contd...)
Precautionary Approach: Compliance and Reporting:
To modify the manufacture, marketing or use of To measure environmental performance; to products or services or the conduct of activities, conduct regular environmental audits and consistent with scientific and technical assessments of compliance with company understanding, to prevent serious or irreversible requirements, legal requirements and these environmental degradation. principles; and periodically to provide appropriate information to the Board of Contractors and Suppliers: Directors, shareholders, employees, the
authorities and the public. To promote the adoption of these principles by contractors acting on behalf of the enterprise, {Drawn from ICC’s (International encouraging and, where appropriate, requiring Chamber of Commerce) Business improvements in their practices to make them Charter for Sustainable Development} consistent with those of the enterprise, and to encourage the wider adoption of these principles
by suppliers. Annexure-IV
Grievance Procedure
Emergency Preparedness:
• The Grievance Procedure aims at To develop and maintain, where significant settlement of grievances of permanent hazards exist, emergency preparedness plans in employees, other than supervisors and conjunction with the emergency services, fresh employees on probation, in the relevant authorities and the local community, shortest possible time and at the lowest recognizing potential trans-boundary impacts. possible level. It is a three-stage procedure
with an appropriate grievance form for each Transfer of Technology: stage.
To contribute to the transfer of environmentally • Individual grievances and complaints shall sound technology and management methods not be discussed at any level other than throughout the industrial and public sectors. that specified in this procedure except that, if the Union so desires, such cases may be Contributing to the common effort: put up for discussion at the Central Works Committee. To contribute to the development of public policy • Policy matters and their interpretation shall and to business, governmental and not be discussed at any level except with intergovernmental programs and educational the top management. The Union, however, initiatives that will enhance environmental can take up such matters at the Central awareness and protection. Works Committee.
Representations for the redressal of Openness to concerns : grievances from employees to the various
authorities either directly or through the To foster openness and dialogue with Union, when their cases are pending with employees and the public, anticipating and any Works Committee, are not conducive responding to their concerns about the potential to the working of those committees. Hence, hazards and impacts of operations, products, no representation will be entertained for wastes or services, including those of trans- discussion at any level of the management boundary or global significance. if the case is already referred to and
pending with any Works Committee, until the same is either disposed of or withdrawn from the Works Committee.
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Annexure-IV (Contd…) • The grievance form should be handed over to the shift-in-charge, General Foreman or • In exceptional cases, however, involving equivalent, as the case may be, who will grievances of a number of workmen other arrange to issue an acknowledgement than routine grievances or questions of receipt. He will make the necessary principle or policy or any other important enquiries and return the form to the matter where immediate action is necessary, employee concerned with his remarks in the Union may take up the case with the the space provided for this purpose or, with appropriate level of management. In cases the remarks of the head of the department of importance the President of the General (where the matter is beyond the jurisdiction Secretary of the Union may ask the of the General Foreman or the shift-in- management for a joint enquiry. charge or equivalent), within the next two working days from the receipt of the form. The following subjects come under the purview In cases requiring reference to higher of this procedure; authorities this time limit will be relaxed. If necessary, the employee can discuss the i) Acting case further with the supervisor concerned ii) Amenities and/or facilities in the light of his remarks. If so desired, the iii) Continuity of service employee can take the help of the Union iv) Compensation representative in presenting or discussing v) Discharge/dismissal the case at this and/or the next stage. vi) Fines vii) Increment Stage Two: viii) Leave ix) Medical • If the employee is not satisfied with the x) Misconduct reply at stage one, he may obtain from the xi) Nature of job General Foreman or the shift-in-charge or xii) Promotion (excluding selection by equivalent, as the case may be, a copy of interview) Grievance Form-II, enter therein the xiii) Safety appliances reasons for reconsideration of the case, xiv) Suspension and submit this form to the head of his xv) Transfer department within three working days of the xvi) Victimisation receipt of the reply at stage one and obtain xvii) Warning letter an acknowledgement receipt thereof. • Appeals against suspension should be State One: addressed to the head of the department on Grievance Form-II or on ordinary paper, • If an employee has a grievance, he should within seven days of the receipt of orders or meet his shift-in-charge or equivalent and after the last date of suspension, whichever talk it over with him. In cases of appeal is later, and these will be considered at against punishments excluding suspension, stage two, in the first instance. If the discharge or dismissal, the employee should appeal is time-barred, it must be clearly meet his General Foreman or equivalent. If mentioned in the reply. necessary h should obtain a copy of • The head of the department will discuss Grievance Form-I. This should be filled in the issue with the employee and the and submitted within one week of the date supervisor concerned and return this Form on which the facts, on the basis of which the with his remarks within three working days grievance has arisen, became known to him, of receipt of the Form. In cases requiring except that in the case of promotions a time reference to higher authorities or to another limit of six weeks from the date of the department this time limit will be relaxed. promotion in question will be allowed.
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Annexure-IV (Contd…) Zonal Works Committee #II : Steel Melting Shops (Nos. 1&3), L D Shop, Canteen Stage Three: Services, Materials Reclaiming Department, Energy & Economy Department, Metallurgical • If the employee is still not satisfied with the Department, Chemical Laboratory, Research & reply, he may appeal to the Chairman of the Development Department, and Electronics Zonal Works Committee concerned, on Department. Grievance Form-III, within seven working Zonal Works Committee #III : Sheet Mill, days of the receipt of the reply at stage two. Plate Mill, Strip Mill, Bar Forging & Tyre Mill, • Appeals against orders of discharge or Ring Plant, and Bar & Rod Mill. dismissal should be addressed to the Zonal Works Committee #IV : Rolling Mill Chairman of the Zonal Works Committee No.1 (including Rail Finishing and New concerned, on Grievance Form-III (Copies of Shipping), Rolling Mill No.2, Merchant Mills, which are available at the Employment Medium & Light Structural Mills, Lubrication, Bureau), or on ordinary paper, and these will Production Scheduling and RT Shop. be considered at stage three, in the first Zonal Works Committee #V : Electrical instance. This should be done within six Department (Power, Operation, Mills, Services, weeks of the receipt of the orders, except Inspection and Tele-Communication) General that in cases where employees discharged Maintenance, Stores, Power Engineering or dismissed are out of Jamshedpur at the Department and Building Inspection & time the order is issued, the time limit should Maintenance Department. be three months from the date of issue of Zonal Works Committee #VI : Shops, Loco & such orders. Loco Crane Department, Works General • The decision reached by the management Services, Agrico, Foundries & Pattern Shop, after due consideration of the Transportation Department, Material Handling recommendations of the Zonal Works Services, Works Garden, Production Planning Committee will be communicated to the (Shops), Plant Design and Mechanical employee on Grievance Form-III through Maintenance Department, Central Inspection, proper channels. The Zonal Works and Standardisation Department. Committee’s unanimous recommendations, Non-Factory Employees’ Works Committee to which no objection is raised by the : All ministerial staff of Works and non-Works Management or the Union within 10 days of departments, all outside works departments. the receipt of such recommendations, shall be final. References: • Where such recommendations are not unanimous or have not been accepted by DIC’s Circular of 15.06.56 (GSL/2493/64 of the management or the Union, the Zonal 25.02.64) Works Committee will refer the case to the LP/8322/56 of 17.08.56 (AO/7073/64 of Central Works Committee or the Special 14.08.64) Central Works Committee for consideration. AO/7592/58 of 21.10.58 (AO/1626/67 of 20.02.67) Grouping of Zonal Works Committees: AO/8013/59 of 04.09.59 (AO/14819/71 of 08.12.71) Zonal Works Committee #I – Blast Furnace & AOC/1198/61 of 08.09.61 (AO/15480/71 of Coke Ovens, Ore Crushing & Sintering Plant, 23.12.71) Refractories Department (Production), AO/7684/61 of 11.09.61 (AO/10429/76 of Refractories Department (Maintenance, 27.10.76) including Works Masonary), and Industrial AOC/1324/61 of 03.10.61 (AO/9954/80 of Engineering Department. 04.09.80) DPL/Con/843/62 of 08.05.62
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Annexure-V
COC MANDATE
MESSAGE
Dear Colleagues,
The Tata Code of Conduct, henceforth referred to as the code, enunciates the values
and norms of behaviour that shall govern the conduct and the activities of our company, and all our employees.
The Tata House represents more than a century of ethical conduct of business in a
wide array of markets and commercial activities in India and abroad. The Tata name invokes trust among customers, employees, shareholders and community. This is a previous heritage, unique in India, and will not only have to be preserved but also enriched by formalising the high standards of behaviour expected from our employees in the year to come.
As employees of the Steel Company, it shall be our responsibility to ensure compliance with the code. Please read the code and abide by all its provisions both in letter and in spirit.
In case you have any queries regarding the code, please seek certification from your immediate superior, or from the Ethics Counsellor, then he can also be contacted for expressing your concerns, if any.
Yours sincerely,
Sd/- May 24, 1999 (JAMSHED J IRANI)
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Annexure-VI Abbreviations & Glossary DEP Department DIV Dividend ABP Annual Business Plan DMD Deputy Managing Director AES Application Engineering Support DO Dissolved Oxygen AGM Annual General Meeting DS Compound Desulpharisation Compound AIDS Acquired Immune Deficiency Dy. Deputy System Dy.MD Dy. Managing Director AIWC All Indian Women Conference EBIT Earning Before Income Tax AQUIP Annual Quality Improvement EHS Environment Health & Safety Projects EIC Executive Incharge ASSOCHEM Associated Chamber of Elect. Electrical Commerce EMS Environmental Management Auto Automobile System BAH Booz Allan Hamilton ENT Ear, Nose & Throat BE Business Excellence Engg. Engineering BHP Broken Hill Property EP Act Environment Protection Act BIS British Institute of Standards EPA External Processing Agent BIS Bureau of Indian Standards ESI Employee Satisfaction Index Bl. Fce. Blast Furnaces ESP Electrostatic Precipitator BM Bar Mill EVA Economic Value Addition BOC British Oxygen Company EXIM Export Import BOD Biological Oxidation Plant FAM Ferro Alloys & Minerals CAPEX Capital Expenditure FAP Ferro Alloys Plant CAS Consignment Agent(s) FICCI Federation of Indian Chamber CCI Corporate Citizenship Index of Commerce & Industry CEDEP European Centre for Continuing FP Plg. Flat Product Planning Education, France FP Flat Product CFC Chloro Floro Carbon FPTG Flat Product Technology CFI Centre for Family Initiatives Group CGL Continuous Galvanizing Line GDR Global Depository Receipt Chief (CC) Chief Corporate Communication GHG Green House Gas CIDA Canadian International GM General Manager Development Agency Govt. Government CII Confederation of Indian Industry GP Gate Pass CIO Chief Information Officer HRC Hot Rolled Coils CIO Chief Information Officers HRM Human Resource CMR Children Mortality Rate Management CO Carbon Monoxide HRM/IR Human Resource / Industrial COB Committee of Brand Relations COC Code of Conduct HSM Hot Strip Mill Comm. Commercial ICC Indian Chamber of Commerce CoRE Corporate Round Table on IDBI Industrial Development Bank Environment & Sustainable of India Development IFC International Finance CRC (W) Cold Rolling Complex (West) Corporation CRM Cold Rolling Mill IIM Indian Institute of Management CS Corporate Services IISI International Iron & Steel CSD Customer Service Department Institute, Brussels CSI Customer Satisfaction Index ILO International Labour CSMS Corporate Sustainability Organization Management System
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Annexure-VI (Contd…) MM Merchant Mill MOU Memorandum of IMA Indian Medical Association Understanding IMRB Indian Market Research Bureau MR Management Representative IMTG Iron making Technology Group MRO Maintenance, Repair & IR Industrial Relations Operational Groups IRQS Indian Register Quality Shipping MTP Million Tonne (Metric Tonne) ISO International Standards Production Organization NA Not Applicable ISO-14001 International Standard on 14001 NE Non Employee – those who do IT Information Technology not work as permanent ITD International Trade Division employees of Tata Steel ITW International Trade Wing NED Non Executive Directors JAMIPOL Jamshedpur Injection Power NEDO New Energy Development Limited Organization, Japan JCCM Joint Committee of Consultative NEERI National Environmental Management Engineering Research Institute JDC Joint Departmental Council NGO Non Government Organization JMA Jamshedpur Management No. Number(s) Association NOx Oxides of Nitrogen JRDQV JRD Tata Quality Value NT Not Traceable JWC Joint Works Council OG Order Generation JWQC Joint Works Quality Council OH&E Occupational Health & KM Index Knowledge Management Index Environment KM Knowledge Management OHSAS Occupational Health, Safety KPM Key Performance Measures Audit System KRA Key Result Areas OM&Q Ore Mines & Quaries KWH Kilo Watt Hours OPPRESS Online Properly Projection LCA Life Cycle Analysis System LD#2&SC Steel Melting Shop#2 and Slab OPR Officers Pay Role Caster P/E Price to Earning Ratio LDO Light Diesel Oil PAN Permanent Account Number LIC Life Insurance Corporation PAT Profit After Tax LM/CM Long Member / Cross Member PDP Personal Development Plan LP Long Products PEO Principal Executive Officer LPTG Long Product Technology Group PH Power House LPTG Long Product Technology Group PLD Percent Leaking Door LT Long Term Plg. Planning M&S Marketing & Sales PLL Percent Leaking Lids Maint. Maintenance PLO Percent Leaking Offtakes MBA Master of Business PM Particulate Matter Administration PPM Parts Per Million MC/HC Medium Carbon / High Carbon PQI Product Quality Index MCM Management Committee Proj. Project Meetings PR&CC Public Relations & Corporate Mech. Mechanical Communication Mfg. Manufacturing QC Quality Circle MGD Million Gallon Per Day ~ 4.54 QMS Quality Management System Million Litres R&A Rings & Agrico Mktg. Marketing R&D Research & Development
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Annexure-VI (Contd…) TO Turn Over R&TS Rural & Tribal Services TOP Total Operating Programme Refr. Refractories TPL Tta Projects Limited RM&IM Raw Material & Iron Making TQM Total Quality Management ROIC Return of Invested Capital TRF Tata Robins Fraser ROM Run of Mines TRL Tata Refractories Limited RPD Refractories Production TSFIF Tata Steel Family Initiative & Department Foundation SAL Saleable TSRDS Tata Steel Rural Development SAP System, Analysis and Products Society for Data Based Management ULC/LC Ultra Low Carbon / Low SC Supply Chain Carbon Sc.Svc. Scientific Services UN United Nations SEBI Stock Exchange Board of India UNIDO United Nations Industrial SHE Safety Heal Environment Development Organization SMS Steel Melting Shops UTI Unit Trust of India SNTI Shavak Nanavati Technical VP Vice President Institute WACC Weight Average Cost of SO2 Oxides of Sulpher Capital SOP Senior Officers Pay Role WHO World Health Organization SP Sinter Plant SPACM Strategic Planning & Corporate Marketing SPPE Society for Promotion of Professional Excellence Sr Senior SS&FI Social Services & Family Initiatives ST Short Term Sercs. Services Tata GA Sheet Tata Galvanized Sheet Tata SSL Tata Special Steel Limited TAYO Tata Yodogawa Limited TBEM Tata Business Excellence Model TCCI Tata Council for Community Initiatives TCTF Thermal Coal Task Force TELCO Tata Engineering & Locomotive Company TERI Tata Energy Research Institute TGS Technology Group TH Total Hardness TIL Tata International Limited TKM Tata Korf Maritime TMDC Tata Management Development Centre
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Annexure-VI (Contd…)
A) Applicable Environmental Acts & Rules 01 (a) The Water (Prevention & Control of Pollution) Act 1974, as amended up to 1988 (b) The Water (Prevention & Control of Pollution) Rules 1975, as amended up to 1989 02 (a) The Water (Prevention & Control of Pollution) Cess Act 1977, as amended up to 1992 (b) The Water (Prevention & Control of Pollution) Cess Rules 1978, as amended up to 1992 03 (a) The Air (Prevention & Control of Pollution) Act 1981, as amended up to 1987 (b) The Air (Prevention & Control of Pollution) Rules 1982 04 (a) The Environment (Protection) Act 1986, as amended up to 1999 (b) The Environment (Protection) Rules 1986, as amended up to 1999 (c) The Environmental (Protection) Rules 1992 & 1993 – Environmental Statement (d) The Environmental (Protection) Rules 1994/1996 – Environmental Standards (e) The Environmental (Protection) Rules 1994 – Environmental Clearance (f) Amendments in the Environmental (Protection) Rules, 1994 – “Public Hearing” (g) The Noise Pollution (Regulation & Control) Rules 2000 (h) Dumping and Disposal of Fly ash – Notification dated 14.09.1999 amended up to 2002 th 05 The Hazardous Waste (Management & Handling) Rules 1989, as amended up to 6 January 2000 06 Manufacture, Storage & Import of Hazardous Chemicals (Amendment) Rules 1989, as th amended up to 19 January 2000 07 (a) The Public Liability Insurance Act 1991, as amended up to 1992 (b) The Public Liability Insurance Rules 1991, as amended up to 1992 08 Ozone Depleting Substances (Regulation & Control) Rules, 2000 09 Batteries (Management & Handling) Rules 2001 10 Bio-medical Waste (Management & Handling) Rules 1998 as amended till 2000 B) Applicable Occupational Health & Safety Acts & Rules 01 Gas Cylinder Rules, 1984, including Amendment Rules, 1993 02 The Static and Mobile Pressure Vessels (Unfired) Rules, 1981, including Amendment Rules, 1997 03 The Indian Electricity Act, 1910 & Rule, 1956 04 The Indian Railways act / Rule 1989 05 The Petroleum Act (as amended till 1997), 1934 & Rules (as amended till 2002) 06 The Factories Act (as amended till 1987), 1948 The Bihar Factory Rules (as amended till 1988) 1950 07 The Insecticides Act (as amended till 1977), 1968 & Rule 1971 (as amended till 1999) 08 Contract labour (regulation & Abolition) Act, 1970 & Rule 1971 09 The Motor Vehicle Act 1988 (as amended in 2001) & Central Motor Vehicle Rule 1989 10 The Explosive Act, 1884 The Explosive Rules, 1983, including Amendment Rules, 2002 11 The Indian Boiler Act, 1923 & Boiler Rules, 1950 12 Calcium Carbide Storage & Handling Rule 1987 13 The Workmen Compensations act 9123 (as amended up to 2000) & Rule (as amended up to 2000) C) Other Acts 01 Mines Act, 1952 02 Wild Life Conservation Act, 1972 03 Forest Conservation Act (Amendment) 1980
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