RENEW Reaffirming trust with Efficient actions to Nurture and Evolve a Wholesome tomorrow Value Creation Report 2017-18
Adani Power Limited Growth with Goodness RENEW Reaffirming trust with Efficient actions to Nurture and Evolve a Wholesome tomorrow
Tomorrow depends on today. Hence, With a clear focus on reducing our endeavour to ensure a healthy and we at Adani Power Limited (APL), strive environmental and societal impact, sustainable operation that contributes to power better, more efficient and we have driven efficiency initiatives to rapid national development and the Highlights of inclusive possibilities for the future. that help us achieve positive outcomes growth of all our key stakeholders. and drive growth across society. Last As India’s largest private power year, we did witness some headwinds. Around the same thought, we have producer, we acknowledge our However, even amidst a complex and developed our Value Creation Report FY 2017-18 responsibility in achieving sustainable dynamic working environment, APL was centred around the idea of ‘RENEW’. growth and creating value for our committed to growing, nurturing and This report traces our value creation Contents index stakeholders. In the last few years, we evolving a wholesome tomorrow. We journey across six capitals and reflects Revenue – E210,934.3 million have delivered four world-class power focused on growing our business and how we are ‘Reaffirming trust with Equity – E8,845.4 million Company Overview 2 plants supplying electricity at some servicing customers under long-term Efficient actions to Nurture and Evolve of the most competitive rates, thus and medium-term Power Purchase a Wholesome tomorrow’. EBIDTA – E61,736.2 million CEO’s Statement 4 reaffirming the stakeholders’ trust in Agreements (PPAs). It remains our Market capitalisation – E91,602.3 million CSO’s Statement 8 our operations. CFO’s Statement 10 Total power generation capacity – 10,480 MW Governance and Risk Management 12 Power generation – 50.824 billion units Adani Group Stakeholder Engagement 22 Power sale – 48.01 billion units Adani Group is one of India’s largest integrated infrastructure conglomerates Materiality Assessment 24 Operational availability – 90.9% with interests in Resources (coal mining and trading), Logistics (ports, logistics, Our Plants 26 shipping and rail), Energy (renewable and thermal power generation, transmission Group Vision New Projects and distribution), and Agro (commodities, edible oil, food products, cold storage > 2X800 MW Godda Thermal Power Project (TPP) Operating Context 28 To be a world-class leader in and grain silos), Real Estate, Public Transport Infrastructure, Consumer Finance > 2X800 MW Expansion of Udupi Power businesses that enrich lives Our Business Model 30 and Defence. Corporation Limited (Under Planning) and contribute to nations Financial Capital 32 in building infrastructure Adani owes its success and leadership position to its core philosophy of Manufactured Capital 36 through sustainable Total CSR expenditure – E183.1 million ‘Nation Building’ and ‘Growth with Goodness’ — a guiding principle for (including E56.5 million directly by business) value creation. Social & Relationship Capital 40 sustainable growth. The Group is committed to protecting the environment and Number of CSR beneficiaries – 5+ lakhs improving communities through its CSR programme based on the principles of Human Capital 44 Number of on-boarded vendors – 4,958 sustainability, diversity and shared values. Intellectual Capital 50 Natural Capital 54 Specific water consumption (m3/MWh) > Adani Power (Mundra) Limited Conversion Factor 61 Growth with Goodness – 10.6 (seawater) Assurance Statement 62 Scale denotes growth. To us, scale is not only about the businesses we are in. It is also about the real influence and > Adani Power Maharashtra Limited Mapping with GRI Standards and – 2.38 (freshwater) 65 change we can spur, the lives we can touch, the communities we can nourish, the businesses we can propel and the Other Frameworks future we can inspire. With consistent growth comes incredible goodness. With the size of our operations in multiple > Adani Power Rajasthan Limited Abbreviation 70 nation-critical sectors, we have been fortunate enough to reach out more and spread this goodness, regardless of – 2.92 (freshwater) the geography. We have consciously extended our scale to help India overcome economic challenges and to ensure > Udupi Power Corporation Limited people live a good quality of life. – 6.07 (seawater) Our values, ‘Courage, Trust and Commitment’, enables us to give back to the society by creating sustainable Specific coal consumption – 0.54 tonne/MWh business value creation. Specific GHG emissions – 0.83 t CO2e/MWh
Businesses of Adani Group Employment generation > Company employees – 2,350 Ports & SEZ | Power | Transmission | Renewables | Coal Mining & Trading | Agri Logistics | Edible Oil | Gas Distribution | Through resolution of the Board of Directors, the Real Estate | NBFC | Defence > Contract workforce – 6,869 responsibility for extra-financial disclosures has been Lost day rate excluding fatalities delegated to the CEO. All strategic and operational responsibilities, including sustainability performance About this Value Creation Report > Company employees – 1.90 and value creation, are executed by the CEO of APL. This report presents the value creation story of Adani Power Limited (APL) on material issues spanning six capitals — Financial, > Contract workforce – 1.18 For integrity and development of the contents of the Manufactured, Natural, Human, Intellectual, and Social & Relationship — as per the Integrated Reporting
Company Overview
Our Manufacturing Footprint Restating Trust Kawai (Rajasthan) APRL Operating Capacity Planned Expansion by Redefining Energy 1,320 MW 1,600 MW IMS, EnMS, Bitta Solar (Gujarat) 5S, 5S-JUSE, Six Sigma Projects Operating Capacity 40 MWp Surguja (Chhattisgarh) IMS Planned Project 600 MW Mundra (Gujarat)
APMuL Operating Capacity 4,620 MW IMS, EnMS, 5S, 5S-JUSE Six Sigma Projects
Godda (Jharkhand) Bhadreswar (Gujarat) Planned Projects 1,600 MW Planned Project 3,300 MW Jitpur (Jharkhand)
2.5 MMTPA Jitpur Coal Block Adani Power Limited (APL), With passion to retain our leadership Aligned with our business focus, headquartered in Ahmedabad, Gujarat, position in the private power sector and we have developed expertise in our Tiroda (Maharashtra) is the largest private sector power to meet the growing energy demand of team to create and operate modern Dahej (Gujarat) producer in India. We began our journey India and the neighbouring countries, power-generation facilities. We also APML Planned Project in 2006 by commencing work on our we are working on our goal of achieving benefit from synergies by forward and Operating Capacity 2,640 MW first 330 MW unit at Mundra. To meet 20,000 MW. We are constantly backward linkages of businesses under 3,300 MW the growing energy demand of India, we calibrating our efforts in the view of different companies within the Group, IMS, EnMS, have been scaling up through organic macroeconomic scenario to achieve which include coal mining, coal logistics, Udupi (Karnataka) 5S, 5S-JUSE Six Sigma Projects and inorganic growth and have achieved this goal. ports and electricity transmission. 10,480 MW at five locations, including a UPCL 40 MWp solar power plant in Bitta. Refer to Pages 3-5 of our Annual Report 2017-18 Operating Capacity Planned Expansion Pench (Madhya Pradesh) 1,200 MW 1,600 MW IMS, EnMS, 5S, 5S-JUSE Planned Project APL has the following subsidiaries as on 31st March 2018 1,320 MW Contribution of key services to the total 1. Adani Power Maharashtra Limited 4. Adani Power (Mundra) Limited turnover during FY 2017-18 (APML) having 3,300 MW generating (APMuL), formerly known as Adani capacity at Tiroda, Maharashtra Power (Karnataka) Limited, having 4,620 MW generating capacity at 2. Adani Power Rajasthan Limited Mundra, Gujarat 79.26% (APRL) having 1,320 MW generating Integrated Management Energy Management 5S, 5S-JUSE, Operating Power Plants Power generation capacity at Kawai, Rajasthan 5. Adani Power Resources Limited System (IMS) System (EnMS) Six Sigma Projects ISO 9001, ISO 14001, ISO 50001 (Reporting Boundary 3. Udupi Power Corporation Limited 6. Adani Power (Jharkhand) Limited OHSAS 18001 for FY 2017-18) 15.19% (UPCL) having 1,200 MW generating (APJL) developing the 2x800 MW Wholesale coal trade capacity at Udupi, Karnataka Godda TPP at Godda, Jharkhand services Planned Project Refer to Pages 3-5 Note: Map not to scale. For representation purposes only. of our Annual Report 2017-18 2 3 Adani Power Limited | Value Creation Report 2017-18
CEO’s Statement
addition in the coal-based power plants to Our human resources are our strength and we maintain the base load in the grid to meet Paving the Path for a continue to adopt and implement the global best the growing demand due to economic growth. The Government of India is taking practices. The average age of our employees policy initiatives to bring electricity to the Successful Tomorrow is 35.25 years, which provides us a competitive most remote and difficult-to-reach corners of the nation and is also undertaking initiatives advantage. This helps develop and cultivate such as agricultural feeder separation and leadership and succession planning within the strengthening of rural grids under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) organisation to meet our growth plans. and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), which aims to provide electricity connections to all households.
During the reporting year, we generated 50.83 At the same time, we also recognise that billion units of power and we contributed demand growth is somewhat muted due nearly 13.8% of India’s total coal-based to fewer PPAs being signed by DISCOMs generation in the private sector. Critical in India. We also take cognizance of the aspects for APL continue to be better returns various new initiatives launched by the to shareholders, fulfilling our obligations under Government of India to alleviate the concerns PPAs, uninterrupted domestic coal supply, of the power sector in terms of better water availability, safety in operations and land availability of domestic coal, improvement in acquisition for new projects. the performance of DISCOMs and demand growth. The Government’s initiative for We are calibrating our goal of achieving reduction of DISCOM losses under the Ujjwal 20,000 MW capacity by being conscious of DISCOM Assurance Yojana (UDAY) is critical the changing macroeconomic scenario and for translation of increased demand into new consolidation in the thermal power sector in PPAs. It is expected that such initiatives will India. Our approach is to achieve this capacity result in demand growth, thereby leading addition through organic and inorganic routes to the signing of more PPAs in the next 3-4 as we see opportunity for sustainable growth years, following which we will be rightly in the near future. placed to leverage on this opportunity.
The steady global economic growth, coupled Over the past several years, we have stood at with rapid urbanisation, is expected to the forefront of this capacity-building effort propel the global energy sector. Energy and delivered four world-class power plants demand growth from India is expected to supplying electricity at some of the most be the largest constituent of global energy competitive rates. Under the Indo-Bangla Vneet S Jaain demand. It is anticipated that India, which Friendship Treaty of 2010, we are developing Chief Executive Officer will be home to 18% of the world’s population a 1,600 MW power plant in the state of by 2040, will account for 11% of its energy Jharkhand to supply power to Bangladesh. usage. India, along with Southeast Asia We have also signed a Memorandum of and other developing Asian nations, will Understanding (MoU) with the Government account for two-thirds of the global energy of Jharkhand. During the year, we progressed demand growth. The Indian economy is one by obtaining environment clearance from the of the fastest-growing economies globally. Ministry of Environment, Forest and Climate It has been experiencing historic and Change (MoEF&CC), Government of India, and transformative changes in the last two years, signed a long-term PPA for supply of power notably in the form of the Goods and Services to Bangladesh. We have completed the due Tax (GST), the new indirect tax regime. GST diligence, acquired the land for the main plant brought along with it a major shift from the and signed the Engineering, Procurement and Dear Stakeholders, unorganised sector to the organised sector. Construction (EPC) contract.
Increasing concerns over climate change FY 2017-18 was a challenging year given As India’s largest private power producer, we and growing international commitments the domestic coal shortages, high prices on acknowledge our responsibility in achieving sustainable to contain global warming are expected imported coal and regulatory uncertainty. to result in a major policy shift towards These factors impacted our profitability due growth and creating value for our stakeholders. This renewable sources of energy and energy to under-recoveries and underutilisation. report is a testimony of our efforts in doing so during 50.83 billion efficiency. Though share of coal-based power On the regulatory front, we have recently generation in India is expected to drop in the received important regulatory approvals, units of power generated the reporting year and also presents a way forward. energy mix of India, we except net capacity which will contribute significantly to our
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Providing Value through a Strategic Roadmap
Ensuring domestic coal availability for our power plants Engaging Signing with regulators long-term in matters of Over the past several years, we have stood at PPAs policy the forefront of this capacity-building effort and reforms delivered four world-class power plants supplying Our electricity at some of the most competitive rates. strategic Engaging Obtaining focus areas with the regulatory community approvals proactively profitability going forward. On 29th October ‘Change in Law’ for calculation of tariff, to Ensuring 2018, the Supreme Court directed the Central absorb the cost to meet the new standards. sustainable Electricity Regulatory Commission (CERC) to Timeframe for implementation of Flue Gas financing submit their decision on approving revised Desulphurisation (FGD) for our Mundra, for all tariffs for our Mundra Power plant within Tiroda, Kawai and Udupi plants is included in projects eight weeks. Our wholly-owned subsidiary, the phasing plan prepared by the CEA for all APML, which operates the 3,300 MW power power plants in India. We have initiated the plant at Tiroda, can claim compensation for process of technology selection and detailed usage of alternate coal due to shortfall in engineering for implementation of new domestic coal supply for the Tiroda plant. We pollution-control devices accordingly. received permission for this alternate usage Our goal from the Maharashtra Electricity Regulatory Safety remains a major concern and a Our human resources are our strength and GHG emissions of 0.83 t CO2e/MWh, which Commission (MERC), under ‘Change in Law’ material topic for us. We implemented a Achieving we continue to adopt and implement the has improved over the last year. Moreover, provisions. Our wholly-owned subsidiary, focused safety approach during the year and global best practices related to human dedicated efforts are underway within Adani Power Rajasthan Limited (APRL), which built strong mechanisms for ensuring safer 20,000 MW resources. We also revisited our Human our Group to incorporate renewables as a operates the 1,320 MW power plant at Kawai, working conditions. I regret that despite our generation capacity Resource (HR) policies and procedures and significant portfolio. has also received an order from the Rajasthan best efforts, there were two fatalities during fine-tuned them based on the changing Electricity Regulatory Commission (RERC) for the year. We have aggressively renewed our corporate and employee needs. The average There has been a thrust by the Indian compensation for use of alternate coal under efforts towards eliminating any possibility of age of our employees is 35.25 years. This Government towards effective utilisation ‘Change in Law’ provisions. unsafe act and unsafe situation. We have also provides us a competitive advantage to of ash from power plants, primarily within a engaged DuPont as our partner to support our cultivate leaderships and succession 300 km radius. We have therefore created During the year, we achieved a milestone by ‘Zero Harm’ objective through ‘Project Chetna’. planning within the organisation to meet our infrastructure to handle and utilise the fly signing the Fuel Supply Agreement (FSA) growth plans. ash. This year, we recorded fly ash utilisation for our Tiroda and Kawai power plants under As water is one of the main requirements of 87.9% as compared to 66% last year. the Scheme for Harnessing and Allocating for thermal power plants, we are committed We continue to identify various Corporate Recently, we initiated the development of a Koyala (Coal) Transparently in India (SHAKTI). to conserve and optimise water use. We Social Responsibility (CSR) activities in Fly Ash Utilisation Promotion and Research These FSAs will enable lower cost and reliable have set an internal target of 2.5 m3/MWh of the core areas of education, sustainable Park at our Tiroda plant to encourage fuel supply to these plants and reduce surface water for our hinterland power plants. livelihood, community healthcare and rural Research and Development (R&D) for fly ash dependence on costly imported coal, thereby We are well within the standards of 3.5 m3/ infrastructure development and partner utilisation. improving profitability. MWh set by regulatory authorities. Though with Adani Foundation to implement them. there is no regulatory limit for seawater During the year, we also reached out to the Our sustainability and value creation journey Our plants at Mundra, Tiroda and Kawai consumption, we have set an internal local communities. Though the Company did has been a path of self-discovery and suffered a generation loss mainly due to target of 9.5 m3/MWh at power plants with not make any profit and does not qualify for innovation. commercial issues and shortage of coal. seawater-based FGD and 6 m3/MWh at power mandatory CSR spend requirement, I express my sincere gratitude to all those Though, during the reporting year, we have plants without seawater based FGD. During C183 million has been spent for CSR activities, who are part of this journey. secured long-term FSAs for assured domestic the reporting year, seawater consumption has which includes C56.5 million spent by coal supply under the SHAKTI policy for the been 10.6 m3/MWh at the Mundra plant and Company and C126.5 million spent by Adani Jai Hind! power plants at Tiroda and Kawai and we 6.07 m3/MWh at the Udupi plant. Foundation at the operating location of APL. are confident of improving overall power Vneet S Jaain 0.83 tCO2e/MWh generation by the Company in future. In 2015, We understand the climate change Chief Executive Officer MoEF&CC notified new emission standards challenges and in order to reduce their Direct GHG emissions for thermal power plants. Based on the impact, we are committed to adopting representations of power sectors, the Central environment-friendly technologies. Our Electricity Authority (CEA) has clarified that Godda project will have efficient 800 MW new standards for emissions from thermal ultra-supercritical technology units to further power plants qualify to be considered as a reduce our specific Greenhouse Gas (GHG) footprint. This year, we recorded direct
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CSO’s Statement
This Value Creation Report is for Adani Data relevant to key performance Power Limited (APL), which has its indicators for plant operations are Nurturing Sustainable Growth corporate office at Ahmedabad and regularly collated and internally solar power assets at Bitta in Gujarat. reported for review at different levels The report covers our subsidiary at the operating plants and corporate companies Adani Power Mundra office. Our Enterprise Resource 87.9% Limited (APMuL), Adani Power Planning (ERP) system supports us in Maharashtra Limited (APML), Adani capturing performance parameters on Fly ash utilisation during the year Power Rajasthan Limited (APRL), Udupi material purchase and consumption, Power Corporation Limited (UPCL) and plant operations, employees and Adani Power Jharkhand Limited (APJL), workforce, waste generation and Dear Stakeholders, which have their assets at Mundra in disposal etc. On the other hand, other Gujarat, Tiroda in Maharashtra, Kawai material data such as emissions, safety It is my pleasure to introduce our Value Creation Report 2017-18 to the in Rajasthan, Udupi in Karnataka and statistics, trainings, grievances etc. are Godda in Jharkhand, respectively. captured and aggregated at the site providers of financial capital and other key stakeholders. This report level after due validation. Calculations, presents the value creation story of APL on material issues spanning This report presents the value creation assumptions and other relevant non- story of APL on material issues spanning quantitative disclosures required by across six capitals as per the Integrated Reporting
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CFO’s Statement
raising the landed price of imported The Company operates 10,480 MW coal in India significantly. It is against of power project assets with a total A Sustainable Foundation for this background that the Company asset size of C 695,000 million, against experienced a challenging which loans have been availed. The FY 2017-18. High prices of imported Company has been regularly servicing the Future coal and shortages and delays in its debt. After the Supreme Court order the supply of domestic coal led to in the matter of the Mundra power commercial shutdowns at the Mundra plant, in April 2017, various regulatory and Kawai power plants. Forced commissions have issued orders for outages at the Udupi power plant pass-through of ‘Changes in Law’ E61,736 million also impacted our overall capacity concerning shortfall in domestic coal Dear Stakeholders, Consolidated EBITDA utilisation. As a result, there was a in APML and APRL, which will help significant drop in the aggregate Plant the plants realise prior period income. FY 2017-18 witnessed a few structural reforms by the Government of India, which are Load Factor (PLF) for the financial year, Further, in the matter of Adani Power along with a dip in billed availability. (Mundra) Ltd. (APMuL), a High Powered expected to have long-term impact across the value chain for the power sector. Committee (HPC) constituted by the The wholly-owned subsidiaries of the Gujarat government has suggested a Company, Adani Power Maharashtra sustainable solution that takes into Ltd. (APML) and Adani Power Rajasthan consideration the interests of the Ltd. (APRL), won bids of 5.85 MT for consumers, procurer and developer. the Tiroda plant and of 4.12 MT for the The Supreme Court has directed the Kawai plant, respectively, in the SHAKTI CERC to issue suitable orders in this auctions of August 2017. However, regard, shortly. Hence, with robust owing to procedural delays, the FSAs operational assets on ground and the We have experienced a decrease in for these were only signed near the end fructification of the ‘Change in Law’ revenue from power supply mainly on of the year, resulting in coal shortages. claims, availability of domestic coal and account of a decrease in the volume of On the bright side, improvement in a sustainable solution for APMuL, the power sale in FY 2017-18, which stood domestic coal availability due to the Company is confident of meeting its at 48.01 billion units as compared to newly signed FSAs is expected to obligations to its lenders. 60.2 billion units in the previous year. alleviate reliance on imported and open Even though the cost of fuel has market coal for the Tiroda and Kawai To conclude, the outlook for our reduced, the gain in this regard has power plants. This will help improve business is positive. We propose to been offset with higher coal prices in profitability and cash flows and avoid continue our value creation journey the year under review. outages due to coal shortage. of mutual growth in the future by leveraging the opportunities in In FY 2017-18, our consolidated total On the regulatory front, APML has the market. Improvement in domestic coal income stood at C 210,934 million received an order from the MERC availability due to the newly as compared to C 230,345 million in to claim compensation for usage Rajat Kumar Singh FY 2016-17. For the same period, our of alternate coal due to shortfall in Chief Financial Officer signed FSAs under SHAKTI is consolidated net loss before tax and domestic coal supply for the Tiroda expected to alleviate reliance before exceptional items for plant under ‘Change in Law’ provisions. FY 2017-18 reduced to C (20,953) million Similarly, APRL has also received on imported and open market from C (21,835) million. Favourable an order from the RERC to claim coal for the Tiroda and Kawai currency movement helped reduce compensation for use of alternate other borrowing costs, thus driving the coal under ‘Change in Law’ provisions. power plants. This will help decline in finance cost. Following the Another order was received from the improve certainty of cash adoption of a loss minimisation strategy CERC allowing recovery of capital owing to high prices of imported coal expenses on Flue Gas Desulphurisation flows and avoid outages due and under-recoveries under the PPAs, (FGD) units for Units 7 to 9 of the to coal shortage. consolidated EBIDTA for FY 2017-18 Mundra power plant that supplies power was at `61736.2 million as compared to to Haryana DISCOMs. It is important `63906.1 million in the previous year. to note that these claims include prior period ‘Changes in Law’ and other During FY 2017-18, coal demand regulatory matters. Non-receipt of these Rajat Kumar Singh from China increased and Indonesia amounts over the past years had caused Chief Financial Officer experienced production issues. This significant cashflow mismatches. We cumulatively led the Indonesian Harga have addressed these mismatches Batubara Acua (HBA) index to increase through suitable promoter contributions from $82 per tonne in March 2017 to and the issue is expected to alleviate in $102 per tonne in March 2018, thereby FY 2018-19 and going forward.
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Governance and Risk Management Our Governance Achieving Our Objectives Board of through Effective Governance Directors and Risk Management Processes
We consider accountability and transparency to be fundamental for our business. We believe robust corporate governance is necessary to protect shareholders’ values and achieve our strategic objective. We have established high standards of corporate governance in line with the requirements of SEBI and the Companies Act, 2013, which includes establishing an independent Board to guide our operations and monitor and drive compliances. Nomination Sustainability Stakeholders’ Audit and and CSR Relationship Committee Remuneration Committee Committee Committee Board of Directors
Mr. Gautam S Adani Mr. Rajesh S Adani Mr. Vneet S Jaain N A S C R C R
Mr. CP Jain* Ms. Nandita Vohra# Mr. Raminder Singh Gujral A N S R N S C A N
Mr. Mukesh Shah@ Mr. Rajat Kumar Singh$ Mr. Vinod Bhandawat** @ A S R R R CEO
Business Occupational Development Health and Safety (OH&S) Our Information & Quality Assurance * Ceased to be a director w.e.f. 03rd February 2018 and Technology (IT) Management & Control Chairperson Member accordingly also ceased to be a Member and the Chairman A A Audit Committee of the various committees. Processes Human Resource N N Nomination and Remuneration Committee @ Appointed as an Additional Director (Non-executive Operations and Independent Director) w.e.f. 31st March 2018 Development S S Stakeholders’ Relationship Committee Maintenance # Appointed as Chairperson of the Nomination and C C CSR & Sustainability Committee Remuneration Committee w.e.f. 29th March 2018 Projects R R Risk Management Committee $ Appointed as Member of the Risk Management Committee Environment w.e.f. 31st March 2018 Executive Independent ** Ceased to be Member of the Risk Management Committee Non-executive Non-independent w.e.f. 31st January 2018 Techno- commercial Engineering Finance and Accounts
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Governance and Risk Management
Ensuring Prudent Governance
At APL, the roles of the Chairman and the based on the recommendation of the Audit enhance their knowledge and expertise on the identified risks and opportunities related to CEO are separate. The Chairman is responsible Committee and the Board. sustainability topics through business forums, the power sector, external environment, legal for fostering and promoting the integrity of newsletters and learning platforms linked to and other requirements, management system the Board while nurturing a culture where the Refer to details on changes in the governance institutions. Further, the CSO is responsible requirements and stakeholder consultation. These Board works harmoniously for the long-term structure from 1st May 2018 on Page 59 of our for apprising the Board about sustainability policies are regularly reviewed and approved by the benefit of the Company and all its stakeholders. Annual Report 2017‑18 performance as well as sensitising them on the highest governance body. The CEO is responsible for corporate strategy, current trends related to economic, social and brand equity, planning and everything related Refer to details on our approach towards environmental issues. The critical concerns from various stakeholders to the management of the Company. He is also resolving investors’ grievances on Page 66 of our such as communities, suppliers and vendors, responsible for achieving annual and long-term Annual Report 2017-18 A delegation process exists to ensure that the lenders and investors, employees, contract business targets, acquisitions and sustainable Board can oversee the functioning of various workforce, customers, government, regulatory development. The present strength of the Board reflects a committees and sub-committees reporting to it. authority, and media and civil groups are captured judicious mix of professionalism, competence and in our management systems through respective During the year, we changed our statutory auditor sound knowledge, providing effective leadership The organisational policies, purpose, values, heads and their teams and deliberated at the top from M/s Deloitte Haskins & Sells LLP to M/s S R B to the Company. As part of a continuous learning mission statement, strategies, goals and targets management level. The CEO regularly monitors the C & Co LLP, Chartered Accountants, Ahmedabad, philosophy at all levels, the Board members related to sustainable development are developed critical concerns and updates the Board on issues by senior management committees based on that may impact the business ecosystem.
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Governance and Risk Management Identified Risks
Addressing Risks and Identified Risks Impacted Capitals Organisational Process to Manage the Risk Capitalising Opportunities Availability of Quality Coal Fuel Management Forex Variation Financial Management
Dynamic Regulatory Environment Business Development & Risk Management Non-financial risks are increasingly cross‑functional task force, which are discussed in the top management becoming more visible to various includes the risk analyst, project committees and later presented to Disruptive Technology Risk Management stakeholders such as investors, lenders engineering manager, project the Board. and regulators. We constantly identify procurement manager, project control Availability of Human Resources SYNERGY (HR Management Process) our risks and opportunities to ensure manager, project contract administrator, We constantly leverage the opportunities our business strategy is aligned to the construction manager, commissioning and minimise risks by improving project Delay in Environmental Clearance Project Management internal and external environment. In this manager, Operations and Maintenance execution proficiency and operational efficiency. We build our business regard, we have developed procedures (O&M) manager, Health, Safety and Land Acquisition and Forest Clearance Project Management for risk identification and mitigation and Environment (HSE) manager, quality strategies based on the identified risks established risk management systems manager and land acquisition manager, and opportunities to meet the needs Stakeholder & Relations and Corporate under AGILE and DISHA, which are with support from the heads of the of diverse stakeholders and to remain Social Activism Communication our business process transformation businesses. All identified risks are competitive. We have identified the programmes. validated and prioritised in order to following risks and impacted capitals and Human Rights in Supply Chain Procurement finalise a risk mitigation and control processes to manage the risks. The process of risk identification plan, which is monitored on a regular Credit Risk and Timely Financial Closures Financial Management is collectively performed by a basis. The risks and mitigation strategies Account Receivables Financial Management
Climate Change Concerns Environment Management and Risk Mitigation Board-level Risk Management Committee The Board Committee The Steering Committee guides the Risk reports performance to the Steering Committee Board-level Committee Identified Opportunities Risk Steering Committee at Management Level Identified Opportunities Impacted Capitals Organisational Process to Leverage the Opportunity
Electricity Demand in Neighbouring Business Development Countries The Steering Committee provides guidance on top priority Growth of Renewables due to Regulations Business Development risks and their mitigation plan for Power Generators Energy Demand due to Improved Living Business Development Standard Power Demand for Electric Mobility in CRO and Project Directors Business Development report prioritised risks to the Future Chief Risk steering Committee Project Director– Base Electricity Load and Proportion of Business Development Officer (CRO) Project Locations Coal in Fuel Mix in India
Social & Financial Capital Manufactured Capital Human Capital Relationship Capital Site Risk Project Representative– Control Manager Operating Locations The above risks and opportunities are reporting period. Timely and appropriate impacts using suitable frameworks rated and prioritised. Critical concerns actions were taken to control and and guidelines, we have mitigated the are reported to the Board on a quarterly mitigate the high-rated risks. financial impacts of climate change to a basis and mitigation strategies are significant extent by insuring our assets. Risk Representative at Risk Analyst developed. A total of 12 critical concerns While we are in the process of assessing Department Levels were reported to the Board during the climate change related risks and
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Governance and Risk Management Ensuring Employees’ Welfare through Renewed Governance Mechanisms
receiving and redressing investors’ activities. The Code expects all members Grievance grievances, which is disclosed in the of the Board and senior management Management Annual Report of the Company. to act in accordance with the highest standards of personal and professional We understand that grievance As per the requirement of the Sexual integrity, honesty and ethical conduct*. management impacts an organisation’s Harassment of Women at Workplace activities and relationships with multiple (Prevention, Prohibition & Redressal) internal and external stakeholders. We Refer to Page 60 of our Annual Act, 2013 and rules made thereunder, believe a healthy workplace should Report 2017-18 for more details on the we have constituted an Internal therefore have adequate and effective Board’s compliance Complaints Committee (ICC), which is modes of registering grievances freely. responsible for redressal of complaints We understand that all concerns are The Code of Business Conduct and related to sexual harassment. During not grievances. A regular problem with Ethics (The Code) is available at the year under review, there were no something or someone that is not easy www.adanipower.com complaints registered pertaining to to resolve or that can infringe the legal sexual harassment. For seeking advice or clarifications on rights of someone or can lead to legal ethical and lawful behaviour, employees violation is understood as a grievance. Timely resolution of grievances remains can consult the HR Head or the Audit our top priority. We have set up a Committee Chairman. External advice is We have created a sub-committee process for the resolution of grievances. sought on ethical and lawful behaviour named as Stakeholders Relationship As part of our operational as and matters related to organisational Committee and a form-based well as organisational level risk Whistleblower Anti-corruption integrity on a case-to-case basis when system called ‘MyConcern’ has been identification and management Ethics and Integrity any such situations arise. Mechanism Mechanism introduced for employees to register process, all our businesses We have adopted a Code of Conduct We have established a mechanism Integrity, anti-corruption and work their grievances. For our contract undergo an assessment for risks. and Ethics (The Code), approved by *All members of the Board are also bound by for all stakeholders to report genuine ethics are key constituents of the workforce, the department or site heads the Board. The Code is applicable for the requirements for ethics and integrity as concerns. The objective of this Group’s policies. We adhere to high at project and operating sites act as all members of the Board and senior per SEBI guidelines. All Independent Directors mechanism is to provide a framework standards of business, including an interface between the workforce have provided declarations confirming that they management. The Code of Conduct is for responsible and secure corporate governance and the law and the top management to resolve meet the criteria for independence provided in also adopted by the APL business for all whistleblowing. Protected disclosures of the land. We therefore have zero their grievances. The HR department Section 149 (6) of the Companies Act, 2013 and its employees. The expected behaviour SEBI’s Listing Regulations. can be made under this mechanism tolerance towards corruption. also actively interacts with contract of contract workmen is governed in relation to matters concerning the workforce to ensure that the statutory through general terms and conditions of Company and can be utilised in one of As part of our operational as well as and legal requirements are met. For the contract communicated, along with the following ways: organisational-level risk identification supply chain related grievances, we all contract documents and face-to-face and management process, all our keep contact of our techno-commercial communication while on the job. - By sending an email to businesses undergo an assessment for officials in each and every contract [email protected], with the risks, which also include aspects related document. Grievances of business The objective of the Code is to maintain subject line ‘Protected disclosure to corruption. Internal and statutory partners are received by the business the standards of business conduct of under the whistleblower policy’ audits, and formal and informal development team. Our CSR team the Company and ensure compliance information to the top management acts as an interface between the with applicable laws. The Code lays - By sending a letter in a sealed by employees, suppliers and other Company and community and any down standards and values that can envelope, superscribed as ‘Protected stakeholders brings corruption-related grievance related to the community is enhance the Company’s image, set the disclosure under the whistleblower issues in the system. recorded and handled by the CSR team. criteria for business transactions and policy’ to the vigilance and Besides, there is a dedicated investor deter wrongdoing in all business-related ethics officer relationship team at Group level for 14 During the reporting period, no Investor grievances received cases were reported through the and resolved whistleblower mechanism.
18 19 Adani Power Limited | Value Creation Report 2017-18
Governance and Risk Management
internal and external audits at all our Acquisitions (M&A) and significant business locations, which enables us contracts are subjected to due diligence to maintain compliance. The CEO is and assessment of existing and responsible for ensuring compliances potential risks related to human rights, in the business and the Company environment and labour practices, Secretary is the compliance officer of through an independent third party. the Company as per the requirements During the reporting year, we had no To achieve the objectives of of SEBI’s Listing Regulations. The M&A. However, during the year, we have internal control, IT-enabled compliance requirements are delegated demerged the power plant situated at platforms have been implemented. to the respective heads of department Mundra, with its wholly-owned subsidiary to ensure each function remains company APMuL. To ensure compliance in compliance to the applicable in our supply chain, we follow a Vendor requirements. Standard Operating Relationship Management (VRM) Procedures (SOPs) of internal audits system, which involves collaborative and Delegation of Authority (DOA) working and relationship building with for controlling important functions of vendors to meet business objectives. Our the Company have been developed. supplier-onboarding process and regular Compliance reports are presented to the evaluation after onboarding covers Board of Directors by MAAS periodically environmental and social parameters, for review. including human rights issues.
As part of the implementation process Our techno-commercial team of the management systems, our incorporates the necessary changes compliance with environmental, health as per best industry practices in the and safety and quality standards is vendor-assessment process as and audited regularly. All Mergers and when required.
There were no reported cases of As part of the implementation A legal compliance review of all corruption during FY 2017-18. Suitable Compliance and process of the management operating locations and projects is done actions are initiated in the system Internal Controls systems our compliance with in a systematic manner. Our internal whenever any corruption-related case environmental, health and safety legal team consults top legal experts As a responsible corporate, we have is identified. During the reporting year, and quality standards is audited in all significant cases and assesses internal controls and are committed there were no significant fines and non- regularly. the risk and merit of each case. The to compliance to applicable laws and monetary sanctions related to legal head of the Company submits the All Mergers and Acquisitions regulations at national and local levels. non-compliance with applicable disclosure on legal compliance to the (M&A) and significant contracts Initiated as part of our business process financial, environmental and social Board-level committee. Environmental are subjected to due diligence transformation exercise, Management laws and regulations related to our due diligence and assessment of risks and assessment of existing and Audit & Assurance Services (MAAS) businesses, including subsidiaries. For are also done for the projects that potential risks related to human is a centralised function with direct more details, refer to our Annual Report we consider for acquisition. We are rights, environment and labour administrative reporting to the 2017‑18, Statutory Statements, of the view that any other legal case practices, through an independent Chairman of the Board. The role of Section VII ‘Penalties’. filed under other laws of the land in third party MAAS includes internal audit and which the Company has been made a control and reporting to the Audit respondent and which was sub judice Committee of the Board. To achieve the during the reporting year does not pose objectives of internal control, IT-enabled any risk to our business. platforms have been implemented for mapping compliance requirements and status, and ensuring time-to-time
20 21 Adani Power Limited | Value Creation Report 2017-18
Stakeholder Engagement List of Identified Stakeholders and Engagement Details Frequency of Engagement Methods Key Concerns Our Response Engagement Employees Encouraging Active Stakeholder Direct interaction, feedback Work environment, health and Initiatives to improve work environment, Regular questionnaire, newsletter, magazines safety, energy efficiency and safety management systems, and emails, and employee engagement talent management energy-efficiency initiatives, and Participation in Our Journey events employee training and development Contractual Workforce Open forum and interviews Work environment, health Initiatives to improve work environment, Regular and safety, training and skill safety trainings and promotional events, We engage with stakeholders frequently through various media to understand them and use their inputs development, and grievance and a grievance redressal mechanism for decision-making in our business. Engaging with stakeholders and responding to their expectations handling and concerns helps us identify the critical business issues. We have identified stakeholder groups relevant to our business, based on the position they hold in the upstream and downstream processes as well as their partnerships in the internal and external environment. We did not specifically engage Local Communities with stakeholders for preparation of this report. The table in the next page summarises the engagement Direct interaction with project Water availability, local Infrastructure and sanitation-related Regular and method, key concerns, our response and frequency of engagement during the reporting period: beneficiaries and community-based employment, school education, projects; local hiring where possible; need-based organisations, and interviews with local community healthcare woman empowerment programmes; community representatives facilities and vocational skill education programmes, including development adoption of Government schools; computer literacy and teacher orientation; community health programmes; mobile healthcare units and livelihood generation programmes
Government/ Regulatory Direct interaction on a case-to-case Compliance, revenue and taxes, Compliance monitoring and Regular and basis, policy advocacy through industry and community development management, payment of statutory need-based bodies, response to information sought, levies, submission of reports and other routine filing of reports, and regulatory related information, and CSR initiatives audits and inspections
Investor Investor meets, AGMs, meeting with The Company’s sustainability Prudent financial management system Quarterly bankers and other financial institutions, performance, growth and reporting basis and and periodic declaration of results opportunities and debt need-based servicing
Customer Direct communication with existing and Plant availability, transmission Power generation planning and Regular and new customers through various media availability, forced outages and scheduling, timely and proactive need-based and binding agreements, including reconciliation of accounts and communication on reconciliation and PPAs, through power exchanges settlements, including settlements, responses to queries and ‘change in law’ proactive settlements
Media and NGO Telephonic interviews, in-person Local community development, Investment in education infrastructure; Issue-based interviews and interaction with health and safety, legal integration of management systems, regulatory authorities compliances, environment including environmental, energy and protection and ash OH&S; best available technology management implementation; compliance with applicable regulations and initiatives for improvement in ash utilisation
Vendors (Suppliers and Contractors) On-boarding process, site visits to Timelines for payments Payment cycle changed from two days Regular manufacturing facilities for compliance in a week to daily and implementation of monitoring and regular one-on-one IT-enabled payment systems interactions for compliance monitoring
22 23 Adani Power Limited | Value Creation Report 2017-18
This assessment led to the identification of specific issues in the short-, medium- and long-term strategic areas, as well as Materiality Assessment site-specific operational challenges. A brief description of topics identified for our business is provided as follows: List of Material Issues and Related GRI Topics with Boundary Classification
Material and Topics Impacted Capital Topic Boundary External Internal Prioritising Materiality Compliance (Environment, Labour, Human Government, Investors, Company, Subsidiaries, Rights, Project Related etc.) Community, Vendors and Employees and Contract
For us, material issues are those that are of high concern to the business and stakeholders and can impact our value drivers Customers Workforce such as operational efficiency, Human Capital and our brand. We adopt a structured approach and methodology to identify Grievance (Environment, Human Rights, Supply Community, Investors and Employees and Contract Chain, Contract Labour, Employee, Community etc.) Vendors Workforce and prioritise material issues. Fuel Management (Coal and Oil) Company and Subsidiaries (excluding Solar) Economic Performance Shareholders and Investors Company and Subsidiaries Stage 1 (including PPA and Sales) Plant Efficiency [PLF, Availability, Station Heat Customers Company and Subsidiaries Intended at reviewing and receiving inputs Rate (SHR) and Aux Power] Land Availability Community Company and Subsidiaries 1. Topics from GRI Standards
2. Material issues identified in peers’ reports in the sector Supply Chain Management (Procurement Vendors Company, Subsidiaries and Practices, Supply Chain Assessment - Environment, Contract Workforce 3. Review of the value chain impact of our operations Labour, Human Rights and Society) including 4. Company policies and reports in the public domain Contract Management – (O&M and projects) Water Management Community and Company and Subsidiaries A comprehensive list of issues was developed as a result of this exercise. Government (as an Owner (including Solar) and Supplier of Water) Emissions (Air and GHG) Community Company and Subsidiaries (excluding Solar) Waste Management (Ash, Gypsum, Hazardous Community and Vendors Company and Subsidiaries Stage 2 and Non-hazardous Waste) (excluding Solar) Biodiversity Community — Aimed at filtering and shortlisting issues to make them more relevant to our operations. This involved the following Emergency Preparedness and Disaster Community and Company and Subsidiaries 1. A review of business risks identified through our risk management framework Management Government A. O & M Material – Input (Associated Chemicals, Vendors Company and Subsidiaries 2. Sustainability risks identified yb the senior management Limestone for FGD, Spares, Paints and Other Consumables) Based on inputs from the above-mentioned sources, a list of key material issues was shortlisted for APL. B. Project Material – Plant Machinery and Vendors Company and Subsidiaries Construction Materials, Occupational Health and Safety - Employee and Community Employees and Contract Contract Workforce Workforce Community Engagement and Development Community and Company and Subsidiaries (Indirect Economic Impact) Government Employment Community Company and Subsidiaries
Industrial Relations — Company, Subsidiaries and Contract Workforce Human Rights - Forced Labour, Child Labour and — Company, Subsidiaries, Working Conditions Employees and Contract Workforce Fair Treatment and Equal Opportunity — Company, Subsidiaries, Employees and Contract Workforce Indigenous Rights Indigenous Community —
Anti-corruption — Company and Subsidiaries
Cultural Heritage Community and — Government Security Practices — Company and Subsidiaries
Competent Manpower — Employees and Contract Workforce
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Our internal topic boundary includes power plants of APL and its subsidiaries. The external topic boundary includes impacts in Our Plants value chain, including upstream and downstream value chain partners, business partners, vendors, government agencies and local communities at our operations. Our manufacturing facilities are spread across India. With a large scale of operations, our asset portfolio is exposed to various issues that are material Material Issues and Impacted Capitals to our operations.
High
Mundra Plant Tiroda Plant Kawai Plant Employment Economic Performance
PPA
Land Availability
Fuel Management
Water
4,620 MW 3,300 MW 1,320 MW Compliance Installed capacity Installed capacity Installed capacity Occupational Health and Safety (OH&S) We introduced the first 660 MW power We have installed supercritical The Kawai plant is one of the largest generating unit using supercritical technology in all the units of our power plants at a single location in Plant Efficiency technology at our Mundra plant. It Tiroda plant, which has helped us Rajasthan. It is a coal-based thermal is one of the fastest power projects increase efficiency in coal-based power plant that operates on supercritical Industrial Relations developed and commissioned within power generation. We have tied up technology. It has a 1,500 m long airstrip 36 months by any power company with Maharashtra State distribution that helps in immediate connectivity. Business Continuity (Emergency in India. companies (DISCOMs) for power We have tied up with Rajasthan State Preparedness, DM and Asset Security) generation capacity through DISCOMs for power generation capacity long-term PPAs. through long-term PPAs. Anticorruption
Resources – Material and Services Importance to Providers of Financial Capital and Other Stakeholders Providers to Importance
Community Engagement and Udupi Plant Bitta Plant Cultural Heritage Diversity Development
Biodiversity Waste Management
Grievances Emissions
Human Rights (Non-discrimination, Child Labour, Forced Labour, Freedom Competent Manpower of Association and Collective Bargaining)
Indigenous Rights
Modernisation, Innovation and 1,200 MW 40 MW Security Practice Installed capacity Installed capacity Resource Optimisation
The Udupi plant is the first independent The Bitta plant is the first solar power power project to use 100% imported plant set up under Adani Group. It uses coal as fuel for power generation. Post solar PV technology and has an installed Low our acquisition, we successfully turned capacity of 40 MWp. The plant Relevance for APL’s Business and Value Creation over Time High the plant into a viable asset, supplying marked our entry into the renewable around 90% of the power generated to power sector. Social and Relationship Capital Financial Capital Natural Capital the state of Karnataka. Human Capital Manufactured Capital Intellectual Capital
26 27 Adani Power Limited | Value Creation Report 2017-18
Operating Context Our Value Chain is as follows:
O&M Power Plants Coal Equipment Supplier Mundra Driving Our Operations through Liquid Fuel T&D Tiroda Manpower Chemicals Kawai Waste Spare Influential Actions Parts Udupi Discoms Customers Water Contract Bitta
As mentioned in our CEO’s statement, is regulated by the State Electricity situation for both the parties in any we are working in a complex and Regulatory Commissions (SERCs) and contract is required for a sustainable As part of the business process locations proves advantageous for us vendor credentials and capability dynamic external environment that the Central Electricity Regulatory business. Hence, we always try to transformation initiatives under DISHA when it comes to spares and vendor to execute assignments; adherence influences our business. Our primary Commission (CERC). Generation and supply power to all customers beyond and AGILE, we have formulated a management. Indigenisation of critical to health, safety and environment business is to generate power and supply of power is required to be done the normative availability under PPAs, structured supply chain management equipment and increasing our local norms and compliance with statutory supply the same to DISCOMs and as per the guidelines of State Load thereby proving to be a reliable source process. We have competitive (domestic) vendor base is a priority and requirements. We measure the bulk customers under PPAs, which Dispatch Centres (SLDCs) and Regional of power. We are not involved in the advantage owing to our scale of this is measured and reviewed on a performance of the vendors and provide contain conditions including normative Load Dispatch Centres (RLDCs). retail distribution of power to individual business and forward and backward monthly basis. regular and transparent feedback for availability to recover full fixed charges. customers. We have signed PPAs mainly integration with Group businesses their improvement and development. During times of peak power demand, a We believe that PPAs and other contract with long-term and medium-term for coal logistics and transmission of Vendors are the co-authors of our few short-term open-access customers documents are not the absolute customers, as detailed hereunder. power. This synergy helps us in quick success story. We believe in trust and We consider domestic vendors as local also come on board. This business counter-guarantee; however, a win-win turnaround of our projects and delivers long partnerships to endorse high vendors. In FY 2017-18, we had a base of the best value to all our stakeholders, quality and value of the asset being 4,958 vendors as against 3,302 vendors including a common vendor base constructed. We have a process of in FY 2016-17. Nearly 98.2% of these Our PPAs across Group companies. Having onboarding for all the vendors through vendors were from the domestic market. Contract Capacity Location of identical units at most of our operating pre-qualification, which ensures Procurer Type (in MW) Supply Gujarat Urja Vikas Nigam Limited (GUVNL) 2,000 Mundra Long term Haryana Power Purchase Centre (HPPC) – HVPNL 1,424 Mundra Long term Mundra Utilities Private Limited (MUPL) 40 Mundra Long term Railway Energy Management Company Limited (REMCL) 50 Mundra Medium term Tamil Nadu Generation & Distribution Company Limited (TANGEDCO) 200 Mundra Medium term Gujarat Urja Vikas Nigam Limited (GUVNL) 40 Bitta Long term Maharashtra State Electricity Distribution Company Limited (MSEDCL) 3,085 Tiroda Long term Rajasthan Discoms Power Procurement Centre (RDPPC) 1,200 Kawai Long term MUPL (Mundra) 10 Udupi Long term Power Corporation of Karnataka Limited (PCKL) 1,080 Udupi Long term
our value chain activities, linked it back We always try to supply power Value Chain Context to our business partners and developed to all customers beyond the The key elements of our value chain strong relationships with our value chain normative availability under are procurement of assets for new partners. Our coal trading business is PPAs, thereby proving to be a projects and O&M supplies, including only transactional in nature. Since our reliable source of power. coal and other fuels and chemicals, key business focus is power generation, spare parts, manpower for O&M and we have focussed our disclosures projects, disposal of fly ash, power related to material topics of power evacuation and others. We have generation in this report. identified the impact areas related to
28 29 Adani Power Limited | Value Creation Report 2017-18
Our Business Model External Environment
Social and Financial Capital Manufactured Capital Reinforcing Value Relationship Capital Creation through a Natural Capital Human Capital Intellectual Capital Viable Business Model Positive Trending Negative Trending Neutral
Value Generated for Input Business Processes Output Value Impacted Relevant Stakeholders
Equity: `8,845.4 million Foreign shareholding in the • Equity (March 2017): `29,996 million Debt: `479,173 million business: 26.43% • Debt (March 2017): `5,24,844 million Revenue: `210,934 million Market Credibility Investors Market Capitalisation: Profit (Loss): t B Availability `91,602.3 million `(21,150.20) million Refer to Pages 49-57 of ex u t s EBITDA: `61,736.2 million our, Annual Report 2017‑18, n in o e 90.9% C s for more details VISION s g n A i • Thermal Generating Capacity: 10,440 MW t c 48,005 MUs supplied to grid for end consumers. Generated a To be a world-class t r i • Solar Generating Capacity: 40 MWp v business for downstream value chain partners, especially for e leader in businesses i p t DISCOMs and transmission providers. • Material Consumption: 1,02,966 MT i O e
that enrich lives s Customers
• Coal mining approvals at Jitpur (Capacity): 2.5 MMTPA • Long-term fuel linkage: 21.3 MMTPA and contribute to Refer to Pages 49-57 of nations in building Vendor base created (nos.): 5+ lakhs benefitted out of our, Annual Report 2017‑18, infrastructure Power Generated 4,958 CSR programmes for more details through sustainable PPA with consumers: Infrastructure development • Number of vendors: 3,302 50,824 MUs 10,625 MW (roads, healthcare and so on) • PPA with customers: 9,129 MW value creation. Brand image Economic value distributed: ` million • Applicable regulatory clearances for all power plants Social licence to operate for 204,848.9 million all power plants • Social license to operate for all power plants Community, vendors, S customers and • CSR Partner - Adani Foundation and existing community up s po sm regulators around us rting Mechani Specific SOx emission: Water recycled: 37.8% Refer to Pages 77-90 of 2.15 kg/ MWh Ash utilisation: 87.9 % our Annual Report 2017‑18, Specific NO emission: Rain Water Harvested: x for more details • Ecosystem services Fly Ash Generated 1.13 kg/ MWh 1,405,769 m3 (Sufficient for • Coal: 0.54 tonne/MWh Business Activities Specific PM emission: generation of 562 MUs) 0.16 kg/ MWh • Water withdrawal • Power Generation and Sales 4.85 MMT 3 Mundra: 10.6 m /MWh • Coal Trading 3 Tiroda: 2.38 m /MWh • Other Financial Investments Community 3 Kawai: 2.92 m /MWh • Asset Creation Fatalities: 02 Diversity of workforce Refer to Pages 40-43 of 3 Udupi: 6.07 m /MWh Lost time Injury Rate: Training man-hours: this report for more details • Land for new project at Godda: 84 Ha Company Employees: 0.08 35,898 hours • Additional land at Udupi (in case of future expansion) Contractual Workforce: 0.04 Employees skills and Supporting Mechanisms competency • Governance and Risk Management Lost Day Rate: Organisational capacity Waste Generated Company Employees: 1.90 Employee attrition: 8.38% • Risks and Opportunities Contractual Workforce: 1.18 Employees • Employees: 2,350 • Performance 4,934 MT and workforce • Contract workforce: 6,869 • Strategy and Resource Allocation Refer to Pages 44-49 of • Average age of manpower: 35.25 years Outlook Integration and improvement SYNERGY for HR, IT and F&A this report for more details • Man-Megawatt ratio of employees: 0.22 (Refer to Pages 14-23 of this report of management systems: E-logbook for O&M, ISO 14001, OHSAS 18001, for more details) Category workbook for ISO 9001. techno-commercial, Energy Management System: • Business processes: AGILE, DISHA and SYNERGY Customised ERP system, ISO 50001 Investors, customers • Management systems: Integrated Management System Operating Context Business Process Learnings from Six Sigma and Energy Management System Transformation through: projects and E-learning and vendors Refer to Pages 28 of this report for • IT enablement in project and operations New Assets Created at AGILE for Projects platform for employees Refer to Pages 49-57 of more details DISHA for O&M • E-learning platform for employees our Annual Report 2017-18 for Godda and Udupi more details
30 31 Adani Power Limited | Value Creation Report 2017-18
Financial Capital
the Company have issued their reports Business outlook and significant vendors and suppliers. Our growth has to the management on internal control development been and continues to be inclusive of employee and community development over financial reporting based on audits. India’s economic growth is powered by to generate direct and indirect Reaffirming government initiatives and supported economic benefits. We have been supplying power to equally by the private sector, which various state DISCOMs as well as to commits large investments towards We have prepared our financial small and large industries. Power sales nation-building. We consider our growth statements in accordance with Indian to these customers can be broadly to be a testament of nation-building as Accounting Standards (Ind-AS). For classified into three categories: our Financial we operate several power generation FY 2017-18 and have developed an long-term contracts, medium-term assets that cater to the power deficit internal financial control framework contracts and short-term contracts. in India. Consequently, we consider as guidance and to ensure adequate economic sustainability as paramount controls and effectiveness within the We also supply power to Indian Energy to our operations. We are focussed on Company. As a part of this, we have Exchange (IEX) and other short-term Strategy through appropriate returns to shareholders and prepared and reviewed the Entity Level customers from time to time. We have lenders with a strategy of growth and Control, Process Level Control and IT no direct residential customers. expansion, while ensuring sustainability General Control within the Company. Efficient Capital for our business partners such as The internal and external auditors of
Our growth has been and Table 01: Organisational Scale continues to be inclusive of employee and community Particulars Unit FY 2015-16 FY 2016-17 FY 2017-18 Allocation Market Capitalisation `Million 1,15,521 1,54,085 91,602 development to generate direct and indirect economic benefits. Total Revenue `Million 2,57,338 2,30,345 2,10,934 External Debt `Million 5,39,624 5,24,844 4,79,173 Total Equity `Million 74,679 29,996 8,845 Consolidated Net Profit `Million 5,818 (61,701) (19,972) Employees Numbers 2,715 2,648 2,350 Contract Workforce Numbers 7,164 7,069 6,869 Power Generation Million Units 69,395 64,172 50, 824
Table 02: Economic Performance ` in Million Particulars FY 2015-16 FY 2016-17 FY 2017-18 Economic Value Generated 2,57,337 2,32,028 2,10,934 - Revenue from Operations 2,55,322 2,27,838 2,06,110 - Other Income 2,016 4,190 4,824 Economic Value Distributed 2,26,932 2,27,139 2,06,110 - Fuel Cost 1,47,263 1,46,236 1,25,484 For the year FY 2017-18, consolidated total income stood at E21,0930 million as - Purchase of Stock-in-Trade 1,895 2,157 3,093 compared to E23,0340 million in FY 2016-17. Consolidated EBITDA for the year stood - Other Expenses 14,554 15,712 17,084 at E6,1740 million as compared to E6,3910 million in FY 2016-17. Consolidated net loss (including Community Investment) before tax and exceptional items for FY 2017-18 reduced to E(20,950) million from - Employee Wages and Benefits 3,587 4,017 3,537 E2,183 million following the adoption of a loss minimisation strategy in the face of high E2,10,934 million - Finance Costs 59,632 59,017 55,702 prices of imported coal and under-recoveries under PPAs. Total revenue during the year Economic Value Retained 30,405 4,889 1,264
33 Adani Power Limited | Value Creation Report 2017-18
Volumes of electricity transacted in on regulations and guidelines issued New plans and upcoming projects the short-term bilateral market and from time to time and are active in We are committed to reaching our goal power exchanges have increased shaping this emerging market in India. of achieving a thermal power generation considerably in the past two years due capacity of 20,000 MW to bridge the to the commissioning of new merchant Demerger of Mundra plant power deficit in India, in line with the capacities of around 15,000 MW. Our Mundra power plant is incurring revised Tariff Policy and the Government Overall, in FY 2017-18, the spot power operational losses currently due to of India’s vision of 24X7 power to all by market remained vibrant with over 40 increase in imported coal prices. 2022. Additionally, with consolidation billion units traded in power exchange, Moreover, the existing PPA does not taking place in the Indian Power sector, 17% more than 34 billion units traded allow increased fuel prices to be there exists an opportunity for capacity in the last financial year. We have accommodated as compensatory tariff addition through the M&A route. This strategically bound more than 85% of increase. Hence, it was decided to is in line with our vision to be a leader the net capacity under long-term PPAs. demerge Mundra plant so that APL in infrastructure development for Envisaging short-term market trends, can focus on investment and power nation- building. we have contracted around half of the generation separately . During the available merchant capacity under reporting year, name of Adani Power We plan to expand our thermal business medium-term PPAs of 3-5 years. (Karnataka) Limited was changed to by an additional capacity of 1,600 MW Adani Power (Mundra) Limited. The at Jharkhand and 1,600 MW at Udupi in We are actively pursuing cross-border assets and liabilities pertaining to the near future. We plan to finance our opportunities for either supply of power Mundra plant of Adani Power Limited expansion plans through a healthy mix from India or the setup of generation was demerged with APMuL. of debt and equity. For the debt portion, projects in neighbouring countries. The we expect to tie up a mix of Rupee first such project is envisaged in Godda, Debt servicing strategy Term Loans and External Commercial Jharkhand with a capacity of 1,600 MW Borrowings (ECBs) as we have done for to supply power to Bangladesh under a During the year, we received tax our existing plants. firm PPA. Going ahead, it is imperative benefits reported under government for short-term markets to play a larger grants and is disclosed in Annual Report and more important role. Hence, as the on Page 176 and we did not receive any short-term and power exchange market financial assistance of revenue nature matures, we are keeping a close watch from the government.
Challenges of the Jitpur to generate power and transmit it coal block through high-voltage transmission infrastructure developed either by our, During the last year, we have completed Adani Transmission Limited (our Group the process of forest clearance within company), or by state transmission the mining block of Jitpur coal block. companies for delivering critical Though as per schedule, commercial services that are important for both production is to start by February life and businesses. During the year, 2019, we see challenges related to we started working on the following 85% land acquisition in the mining area. We identified opportunities: are actively working with stakeholders Net capacity tied-up under to resolve the issue and expedite the long-term PPAs • 2x800 MW Godda TPP acquisition process.
Opportunity seeking • 2x800 MW UPCL expansion We continue to identify power deficit We are also exploring inorganic growth zones and have moved swiftly to cover opportunities through acquisition of these regions with our state-of-the- stressed assets identified by the CEA. art plants. With these plants, we aim
34 35 Adani Power Limited | Value Creation Report 2017-18
Manufactured Capital
With an aim to to support India’s growing infrastructure and economy, we have built a significantly large portfolio in thermal power generation. Our Renewing and Mundra power plant is the world’s 11th largest single-location thermal power plant with a capacity of 4,620 MW.
Besides scaling growth, we have been Expanding our conscious of the environmental impact caused by coal-fired power generation. This has motivated us to bring 75% of our operations under supercritical Manufacturing thermal-generation technology. Assets Our Present Manufacturing Assets
Installed Power Generated Power Sold Water Plant Capacity During the Year During the Year PLF (in %) Allocation Coal Availability (in MW) (in million units) (in million units) (MCM)
APMuL 4,620 21,908 19,926 54.13 Sea water Units 1-6 via imported coal 6.405 MMTPA via Fuel Supply Agreement (FSA) from Mahanadi Coalfields Limited (MCL)
APML 3,300 17,596 16,605 60.87 70 MCM/Year 4.91 MMTPA via FSA from SECL from river 5.85 MMTPA allocation under Wainganga the SHAKTI scheme
APRL 1,320 5,067 4,083 43.82 35 MCM/ Year 4.12 MMTPA allocation under the from river SHAKTI scheme Parvan
Average Plant Load Factor (PLF) achieved during FY 2017-18 was 55%, as compared to UPCL 1,200 6,181 5,809 58.80 Sea water Imported coal from 70% achieved in FY 2016-17. Units sold in FY 2017-18 were 48,005 MUs as compared open market to 60,194 MUs in FY 2016-17. This decline in PLF was primarily due to shortage of e-auction coal as well as delays in signing FSAs under SHAKTI coal auctions at Tiroda and Kawai, commercial shutdown in Mundra due to high imported coal prices, and forced Bitta Solar 40 72 72 - - - outages in Udupi due to generator failures.
37 Adani Power Limited | Value Creation Report 2017-18
In FY 2017-18, we installed solar captive Power Generation and Power Sales This will also help us optimise our This report does not include Table 03: Availability, PLF and Coal Intensity capacity of 1.6 MW for internal power (Million Units) emissions and impact on the local energy consumption for activities consumption at two of our locations – community. To reduce the time taken to in the upstream and downstream Particulars Availability (%) PLF (%) Coal Intensity (GJ/MWh) Tiroda and Mundra. deliver coal from ports to coastal plants, operations. However, specific GHG Consolidated we have also implemented closed emissions from upstream coal FY 2015-16 91.00 75.90 9.58 Simulation: At Mundra, Tiroda and Kawai, conveyor systems. transportation are being monitored. FY 2016-17 93.60 70.20 9.09 69,395 we have power plant operation simulator Our operations do not involve the FY 2017-18 90.90 54.40 9.14 64,616 centres. Here, our desk engineer and 64,172 use of any recycled input materials. Mundra shift in-charge can simulate various 59,557 Resource FY 2015-16 95.00 81.50 9.82 FY 2016-17 93.10 74.90 9.09 processes that enhance desk operators’ 50,824 Conservation FY 2017-18 95.40 54.13 9.10 skill sets as well as optimise the 48,005 operational practices. These simulator Initiatives Tiroda centres are a replica of real-time desk- We carried out a number of initiatives FY 2015-16 93.00 69.50 9.37 operations where all the processes can to conserve our key resources such FY 2016-17 96.30 61.00 9.23 be tuned to the expected results. as energy, water and coal. Some of FY 2017-18 94.40 60.87 9.20 the initiatives carried out during the Kawai Drone-based Measurement: Drone-based year are: FY 2014-15 90.00 75.10 9.01 technology has resolved the challenges FY 2016-17 95.70 71.80 8.78 of difficult approach monitoring. • Community water pond desilting FY 2017-18 97.60 43.82 9.15 At our thermal power stations, we Udupi have initiated drone-based real-time • Rain water harvesting within our FY 2015-16 86.00 72.10 9.86 FY 2016-17 89.20 74.90 9.16 monitoring of chimney painting. We are FY 2015-16 FY 2016-17 FY 2017-18 power plants, resulting in harvesting also using drone-based photogrammetry of 1,405,769 KL of water. FY 2017-18 76.00 58.80 9.17 techniques for coal stock volume Power Generation measurement to accelerate the Power Sales • Saving as a 1.51 million GJ as a result Outage of power, in most cases, The main reasons for change in from the individual Load Dispatch measurement time and to enhance the of various energy saving initiatives in is governed by the directives energy intensity compared with the Centres. However, we undergo some accuracy level of measurements. all operational plants. received from the individual last financial year include certain planned and unplanned outages. Fuel Management Load Dispatch Centres. operational issues such as ageing of During the reporting year, there were NABL Accredited labs: Laboratories Please refer to Page 30-31 for more Our power generating stations are the turbine. Certain external factors 105 outages, of which 89 were forced. at our all power plants, have been details on the interlinked Natural currently predominantly dependent on such as reduced demand and shortage We communicate these outages to accredited by NABL for air and water Capital outcomes of our manufacturing imported and domestic coal as a source of quality coal have also contributed to our customers in a timely manner. quality monitoring. process. of primary fuel. Heavy Fuel Oil (HFO) this change. The frequency and average duration and Light Diesel Oil (LDO) are used in of these outages are depicted in the Our operations consumed a total of limited quantities during the start-up Outage of power, in most cases, is table below: Power Generation 464.62 million GJ of energy in of the power plants. Since these are governed by the directives received FY 2017-18 compared to 587.37 million Efficiency and Sales conventional, non-renewable sources GJ in FY 2016-17 in the form of primary Right from the plant design stage, we of energy, ensuring fuel security for our fuels such as coal, High-speed Diesel engage various experts in providing operations is material to us. To ensure Table 04: Power Outage frequency and Average Power outage Duration (HSD), HFO and LDO used in boilers, inputs to enable us to choose the best fuel security, we rely on our Group including the diesel used in plant and possible technology and design with the company, Adani Enterprises Limited, for System Average Values FY 2015-16 FY 2016-17 FY 2017-18 machinery. In the event of power outage least cost to operate during the plant continuous availability of imported coal Interruption frequency 0.37 outage/ 1.08 outage/ or shutdown activities, we also need to 0.34 outage/ customer life cycle. We have progressively taken for our operations. Adani Enterprises index for planned outage customer customer import electricity at times. up various efficiency improvement Limited, which is one of the largest coal Interruption frequency 1.22 outage/ 2.45 outage/ projects in operational plants and traders in India, owns mines in Indonesia index (including forced customer customer 2.23 outage/customer Our total auxiliary power consumption outages) service key equipment to maintain and and has linkages to import it from the for the year was 13.00 million GJ Interruption duration 151 hours 451 hours improve plant efficiency. For US, Australia and Russia. compared to 15.18 million GJ in index (excluding forced 123 hours FY 2017-18, our consolidated O&M FY 2016-17. outages) availability was 90.9 %, which has Through competitive bidding, the 90.9% Interruption duration 207 hours 701 hours improved from 90.80% during FY Jitpur coal block of 2.5 MMTPA has index (including forced 772 hours 2016-17. This was mainly attributable been allotted to APL, which will further Operational availability outages) to Mundra and Kawai’s availability secure domestic coal availability. improvement of 2.3% and 2.1%, respectively, as compared to the Our coal logistics involves the previous financial year. Except transportation of imported and transmission losses of 2.94% for sale domestic coal from mine to plant with of power from Mundra to Haryana, a combination of rail- and sea-based which is metered at the Haryana routes. Since power plants are national periphery, during the year, there assets of a long-term nature, we were no other transmission losses as have taken a call to primarily use rail these are accounted under respective transport for our coal logistics for plants transmission service providers. located in the interiors of India.
38 39 Adani Power Limited | Value Creation Report 2017-18
Social and Relationship Capital
This section contains disclosures on our management approach for Social and Relationship Capital and aspects related to Policy Advocacy, Human Rights, Resettlement and Rehabilitation, and Community Engagement. Recreating Please refer to Page 22-23 of this report for more details on stakeholder engagement Policy advocacy Value for the We participate in creating valuable exchange through trade and industry associations, which help and guide the sector in influencing industry-level policies in a responsible manner.
Here’s a list of our membership in various associations and industry bodies: Society and the Table 05: Our Membership Association/ Industry Body Positions Held Association of Power Producers (APP) Member Confederation of Indian Industry (CII) Member Federation of Indian Chamber of Commerce and Industry (FICCI) Member and Co-Chairman of FICCI Power Committee Communities Independent Power Producers Association of India (IPPAI) Member Gujarat Chamber of Commerce and Industry (GCCI) Member Ahmedabad Management Association (AMA) Member National Safety Council (NSC) Member Quality Circle Forum of India (QCFI) Member Gujarat Safety Council Member
We view the membership of these All applicable environmental clearances We abide by the law of the land for all bodies as strategic. Through these have been obtained for new projects applicable statutory and regulatory bodies, we have represented various and we comply with all applicable requirements. Currently, there are no issues of concern relating to power environmental regulations. Our Mundra, collective bargaining agreements with sales and despatch, environmental Udupi and Godda power plants have our workforce for the operating power norms, coal supply and logistics before been made parties in the lawsuits filed plants, including our newly acquired authorities and organisations such by some stakeholders in the National operations. However, our engagement as the Ministry of Power, Ministry of Green Tribunal (NGT) and other courts activities provide sufficient avenues Environment, Forests and Climate of law. We understand that these to our employees as well as contract Change, Central Electricity Authority lawsuits do not have the potential and workforce to voice their opinions. This and Coal India Limited. merit to impact the sustainability of includes a minimum notice period of our business. We are also working to one month for operational changes in understand and address the point of our projects and O&M. Social Compliance view of these stakeholders who have We are proud of having good relations adopted the legal route by making us with community and the social licence a respondent in law suits in different Human Rights Adani Power focuses its activities around four core areas: Education, Community Health, to operate for all our power plants. courts of law. Protection Sustainable Livelihood and Community Infrastructure Development. In FY 2017-18, no cases were filed by At APL, we have adopted the Group’s any stakeholder against the Company During the reporting year, there were Human Rights Policy. We take the We are working across five states, covering over 350 villages touching the lives of for non-compliance with applicable no political donations or contributions. necessary measures to protect the more than 5,00,000 people with a human centric approach to make the processes regulations, including breach of As a policy, any political donations, human rights of our people, recognising sustainable, transparent and replicable. privacy and intellectual property rights. irrespective of the amount, need to their need for respect and dignity. Our Also, there was no case pertaining to receive approval from the Board of human rights principles are aligned We are diligently continuing with our flagship programmes like Swachhagraha, infringement of human rights and Directors in the Company. SuPoshan and UDAAN in addition to our existing initiatives. anti-competitive behaviour.
41 Adani Power Limited | Value Creation Report 2017-18
with the core conventions of the We also take help of external expert We have a system to receive and infringement of rights of indigenous International Labour Organisation Community agencies for need identification in address grievances of local communities community groups across our locations. (ILO), including freedom of association Engagement a formal way. The needs are then at operating locations. Suggestions We did not have any significant negative and collective bargaining, health and bucketed into core areas of education, and demands by local communities impact on local communities at any of We identify the community as one safety of our workforce, eradication of health, livelihood and infrastructure shared informally are routed through our locations. There were no cases of of our key stakeholders and we work child or forced labour and harassment development. Based on these needs, the Gram Panchayat and discussed physical or economic displacement of closely with them at all our business or intimidation in the workplace. We relevant social intervention programmes in the presence of the village local people at our operations within locations. Our community engagement are committed to fair employment are designed and implemented. We also development committee. Our CSR team the boundary of this report during starts with social need identification practices and freedom of expression, carry out social impact assessment at provides support to the community if FY 2017-18. early in the stage of project planning supported by a strong value system in defined intervals and initiate changes suggestions are related to the latter’s and runs through the entire life cycle of our Company. in our CSR programmes based on the advantage. We periodically conduct Recently, we started the land the project. To begin with, our team has 5+ Lakhs stakeholders’ inputs and the outcome impact assessment studies of our CSR acquisition process for our Godda formal and informal interactions with of the impact assessment. The key initiatives at all operating locations. project in Jharkhand. The Social Direct beneficiaries through our the local communities to understand initiatives and respective amount spent Impact assessment of CSR activities Impact Assessment study is being CSR activities their needs well in advance of the are detailed below: is done on a rolling basis so that every conducted and an R&R action plan commencement of the project work. individual location is covered once in will be implemented after its approval five years. by the State Government. Disclosures related to this shall be made in the Rehabilitation and subsequent report. Resettlement Adani Power CSR 2017-18 Amount Spent (D in lakhs) Impacted SDG
QUALITY We comply with all applicable EDUCATION For more details on our CSR regulations for Rehabilitation and activities, please refer to Page 10-20 of Education 180.63 Resettlement (R&R) in the respective our Annual Report 2017-18. states. There were no cases of GOOD HEALTH AND WELL-BEING Community Health 09.97
SUSTAINABLE CITIES AND COMMUNITIES Infrastructure Development 1,227.88
DECENT WORK AND ECONOMIC GROWTH Sustainable Livelihood 212.64
Total 1,831.12
42 43 Adani Power Limited | Value Creation Report 2017-18
Human Capital
The world’s first organisation is a adopt the global best practices and Further, we also have HR policies of ‘parivaar’ (family) and ‘people’ are the continually take initiatives to improve the Group, which are uniform across most vital part of it. In view of the our policies, employees’ communication the business verticals. This uniformity exponential growth of ‘Adani parivaar’ and engagement, talent management, gives us the flexibility to internally Realising the with multi-dimensional and diversified training and development, employees’ transfer the workforce and quickly businesses, it is essential to keep our well-being and grievance management meet the requirements from within people motivated. We believe that and health and safety. Our disclosures the organisation. We have a structured our human resources are a precious on management approach on these process in place to take feedback from capital for our business and our growth aspects are articulated in this section. all employees. During the year, Aspirations of manifested until now has been hugely 22 policies were reviewed and modified enabled by them. based on the feedback received from Human Resource the employees. Any change in policy It is our endeavour to be an Policies is communicated to all employees organisation which continues to through various communication Our HR policies cover a wide gamut be an attractive employer. We also channels. During the year, we our Workforce of areas related to human resources understand the criticality of talent specifically brought some changes to management. There are 28 employee- retention and attraction for achieving increase the benefits for junior and centric policies made available for our Vision. Hence, we continue to middle management cadres. our people on our internal web portal.
Table 06: Employee Details Workforce Breakdown
Age Group Gender Employee Category <30 Years 30-50 Years >50 Years Male Female Senior Management 0 37 60 97 0 We aim to create and maintain an organisation where employees would like to continue Middle Management 4 346 55 404 1 to work for years. Total number of permanent employees during the year were 2,350 Junior Management, including Trainees 447 654 15 1,113 3 with an average age of 35.25 years. The total number of person-days worked by contract Supervisory 309 408 11 720 8 workforce was 2.43 million. During the year, 6.35 person-days of training per employee Contractual (Full Time Appointee and Consultant) 0 2 2 4 0 has been achieved. Grand Total 2,350 2,350
45 Adani Power Limited | Value Creation Report 2017-18
The total number of person-days to provide and e-learning platform to qualified doctors and paramedical Table 07: Category-wise Total Person-hours of Training for FY 2017-18 worked by contract workforce was the employees. staff. We have tie-ups with reputed Behavioural Training Technical Training 2.43 million. The total number of newly service providers for conducting pre- Employee Category joined employees at APL was 17, out employment as well as periodic medical Male Female Male Female of which three left during the same Employee Welfare check-ups for our workforce. We have Senior Management 2,042 — 2,015 — year. Workforce attrition rate for all The welfare of our employees is of the rolled out a mobile-based application Middle Management 7,223 80 15,267 25 the sites in FY 2017-18 was 8.38% highest priority in our organisation, called ‘Emcare’, which enables our Junior Management, including Trainees 18,229 64 46,543 11.5 compared to 6.80% in FY 2016-17. No extending to their families. This helps employees to access their health Supervisory 8,116 104 24,331 65 female employees were separated from us improve the quality of life of our records. Every year, we organise cricket Contractual (FTA and Advisors) 30 — — — the organisation during the reporting employees. Remuneration and benefits tournaments across the locations. Additionally, we also organise various year and no female employees joined are routinely revised to retain and We started a journey by launching the following initiatives in FY 2017-18, with a focus on growth, agility st indoor and outdoor games such as table during the reporting year. As on 31 attract talent. Employee benefits and sustainability: March, 2018, 3.15% employees are due include medical and healthcare support, tennis, basketball, volley ball, badminton, for retirement in five years across all interest-free loan, interest subsidy on chess, carrom, etc. These games crate Initiatives Description locations, while 8.51% employees are housing loan and scholarship to the a platform for employees from different 1. Performance Management Constant feedback on performance and career development helps our workforce perform with due for retirement in 10 years. There children of our employees for higher functions to participate and collaborate System and Other Initiatives greater efficiency. During the reporting year, 99.48% employees were eligible for performance were 6,869 contract employees, education. Medical benefits are also with each other. Such healthy appraisal, out of which the appraisal process has been completed for 98% of our employees. including 98 females. extended to the family and parents competitions lead to recreation and of the employees. Housing in the building team spirit among employees 2. North Star Programme (Harvard The North Star Programme is designed in collaboration with Harvard Business School. Our Learning and Company’s township and transport are across the Company. Leadership) aim is to build the competencies of our employees in the specific areas of business acumen, also provided to the employees at all execution and people management. High Potential (Hi-Po) employees, critical position Development (L&D) remote locations. holders and N-1 position holders are invited for this programme. A total of 42 employees have The L&D requirements of our employees Average Training Hours completed the Programme and 42 have enrolled during the year. We do not discriminate on the basis of are identified through a structured (h/Employee) gender, ethnicity and of religion and framework. For this purpose, as part 3. Three-year Roadmap – HR This programme is to assess internal candidates for their potential to shoulder enhanced ensure fair treatment in compensation, of the performance management Initiatives responsibilities and leadership roles wherever possible. This strategy ensures that we continue recruitment, training, hiring and to have a strong talent pipeline across all levels.
process, all employees engage in 25.8 promotion. Eligible employees are Training Need Identification (TNI), offered parental leave. During the 4. New Human Resource Data management of all our employees is supported by an ERP solution. We are upgrading this
with assistance from their reporting 20.3 reporting year, no female employee Management System (HRMS) IT-enabled platform for further integration of HR processes, starting from sourcing to exit. We managers. The identified training needs has opted for parental leave; however, (Oracle Fusion) are working towards a dedicated ERP for data management of all contract workmen, including are classified into two categories, i.e. 14.7 149 male employees have done so. All statutory compliances. technical and behavioural. Technical employees have returned to work after trainings are imparted by internal and 5. Succession Planning Process A succession planning exercise has been carried out for 44 positions at N-1 and N-2 levels. availing the parental leave. external resources organised by Adani This exercise has been planned considering the fact that six employees from the senior Power Training and Research Institute leadership are going to retire in the short term. These successors shall undergo structured (APTRI). APTRI also provides training to Employee Wellness development programmes and the necessary job rotations and exposure towards their other external clients from Indian and designated roles. We encourage our employees to lead a Behaviourial training hours foreign utilities for capacity building High-performing and high-potential employees have been identified in the organisation healthy life. We offer a range of facilities programmes in the infrastructure and through a structured process. In order to facilitate the transformation within the organisation, designed to improve the quality of life energy sector. Behavioural trainings we have designed specific intervention processes under the signature programme ‘Becoming of our employees. Apart from providing
are organised by a dedicated team. All 37.5 Future Ready’. In this programme, identified employees undergo a semi-structured behavioural
world-class facilities such as gymnasium 36.1 TNIs for behavioural areas are classified lab experience. and indoor and outdoor sports clubs at and aligned with 15 thematic areas our operating locations, we have also and specific training programmes are 28.9 6. Governance Framework for Various committees are formed for decision making and shop floor management. These initiated multiple programmes such developed for each thematic area. HR Initiatives and Operational include the Canteen Committee, Quality Circles and the 5S Initiative. as parenting sessions for employees Review Our employee engagement methods include Grievance Redressal Mechanism, employee reach and their spouses, and sessions for The main objective of behavioural out programmes and regular one-to-one communication. We have an open-door policy and employees’ children on career and training interventions is to create a any employee can approach the leadership with their concerns. We have also implemented character building. culture of learning in the organisation, a grievance redressal portal named ‘MyConcern’, which serves as a platform for employees to which is anchored around the Group’s voice any kind of concern or grievance. As most of our power plants are Vision, Values and Culture. A Centre of in remote locations away from Our practices for human capital management eliminate discrimination in any form at the Excellence (CoE) for L&D and Talent metropolitan cities, ensuring the workplace. We have set up comprehensive disciplinary and grievance procedures that meet Management has been established at all requirements in terms of fairness or as required in the applicable legislation. We are availability of proper healthcare the corporate office to provide greater committed to the labour rights principles provided in the core conventions of the ILO and facilities at our plants is a priority for us. impetus to this function. Technical training hours IFC performance standards. These principles include freedom of association and collective Each of our plants is equipped with an bargaining, health and safety of the workforce, eradication of child or forced labour and occupational health centre, ambulance APL has set a yearly target of five harassment or intimidation in the workplace, among others. facility with life-support systems, FY 2015/16 FY 2016/17 FY 2017/18 person-days of training, including minimum 2.5 days of behavioural training. During the year, 6.35 person-days of training per employee has been achieved. Additionally, 1,443 employees have enrolled for online training programmes through eVidyalaya, which is an initiative by us
46 47 Adani Power Limited | Value Creation Report 2017-18
Initiatives Description DuPont dynamic assessment, which has .Safety Training 7. Respect and Dignity Initiatives Every year, we celebrate the long-service award ceremony. Employees who have completed Occupational Health been successfully completed during (person-hour) over 10 years of service with the organisation are recognised and felicitated. and Safety (OH&S) the year. Phase-II has been introduced with five modules – Safety Interaction, We are sensitive towards human rights issues at our workplace. The security personnel Some activities of our business also Incident Management, Contractor engaged by the Company are regularly sensitised on the non-use of force and trained on involve health and safety hazards Safety Management, Process Safety human rights aspects in various situations. at the project and O&M stages. We
Management and High Risk Activities. 94,200 We are in the process of conducting a 360° survey among our employees to inculcate the therefore prioritise the health and values of respect and dignity among them. safety of our employees. We have Though our target was to achieve zero In order to engage our employees and their family members, we organise ‘Saraswati Samman’ developed health and safety policies lost-time injuries and fatalities across 73,427 that are approved by our Chairman on a yearly basis. This initiative aims at encouraging the academic performance of our our operating power plants, we are employees’ children and providing a platform to showcase their talent. and we accord strict adherence to saddened by the loss of two of our 59,724 these policies. We have an established 8. Employees Communication contractual employees. These fatalities We have established multiple channels to engage with our employees across all levels. OH&S function at all sites that and Feedback Organisation-wide mailers, newsletters and ‘Vartaalap’ – a town hall meeting of leaders with were the results of a road accident facilitates effective implementation all employees are regular channels to engage. Through these channels, all employees are at the Mundra plant and an industrial
of all policies and protocols. We have 33,904 encouraged to raise their view points and directly interact with the leaders. Various online accident at the Kawai plant. In line with 32,183 also implemented OHSAS 18001 as surveys are also conducted to take employees’ feedback. our OH&S management system, a root- part of our integrated management cause analysis was conducted, followed We are also initiating HR clinic, where any employee can connect with HR personnel from any system. Our communication for 14,740 by corrective and preventive actions, location to voice any concern. A quarterly newsletter has been launched to provide updates safety starts before new employees on recent developments, events and stories about our employees from across our operations. including communication of the root join the organisation and before the For our new joinees, we engage with them even before having them on board. A dedicated cause to all businesses. onboarding of any contract agency. FY 2015-16 FY 2016-17 FY 2017-18 personnel from the recruitment team remains in touch with the prospective employees to To continuously improve our health guide them through the joining process. When an employee joins us, we have a ‘Sahyogi’ and safety system, on-site training Safety Awards and APL Employees programme to engage with them for familiarisation and formal orientation. We have a and regular awareness and refresher Contractual Workforce mechanism in place to gather feedback after seven days, 30 days and 90 days. sessions are conducted for both Recognition 9. Takshashila programme For development of our senior leadership, we initiated the Takshashila programme where permanent and contractual employees. To motivate all employees and inculcate a we have tied up with Indian School of Business (ISB), Hyderabad. Total eight persons have culture of positive competition between enrolled in this programme during the year to attend six days of classes per quarter at ISB. During the year, we reviewed our health our operating locations, we have and safety system as we felt the need institutionalised an internal safety reward to strengthen the safety processes and and recognition scheme. We appreciate enhance them to world-class levels. To the safety stars and departments for achieve our safety objective of ‘Zero their outstanding performance, which Harm’, we have set forth on the safety has contributed significantly in achieving cultural transformation journey, titled operational excellence. Our inter-plant ‘Project Chetna’, in consultation with safety award is based on a structured M/s DuPont, a pioneer organisation framework of 15 lead and lag indicators. in the field of safety management. During the year our Tiroda plant was Phase-I of ‘Project Chetna’ comprised awarded safest plant of the year, which is an ‘as-is-analysis’ and quick-win an internal award instituted within Adani opportunity identifications through Power business.
Table 08: Safety Data
Contractual Workforce Permanent Employees 2015/2016 2016/2017 2017/2018 Trend 2015/2016 2016/2017 2017/2018 Trend Injuries 2.00 9.00 2.00 1.00 2.00 2.00 Lost time 0.03 0.17 0.04 Neutral 0.04 0.07 0.08 Neutral injury rate Lost days 354.00 2,254.00 115.00 12.00 127.00 49.00 Lost day 6,354.00 50,254.00 12,115.00 Neutral 12.00 127.00 49.00 Neutral (Including Fatalities) Lost day rate 3.57 21.99 1.18.00 +ve 0.44 4.54 1.90 Neutral Lost day rate 64.00 490.17 124.64.00 Neutral 0.44 4.54 1.90 (Including Fatalities) Million 19.86 20.51 19.44.00 5.51 5.59 5.16 Hours worked Fatalities 1.00 8.00 2.00 0.00 0.00 0.00
48 49 Adani Power Limited | Value Creation Report 2017-18
Intellectual Capital
Our initiatives for business process have been working with us to help in transformation, experience and tacit Business Process the development of various processes knowledge of our employees who Transformation under these initiatives. The objective of are stalwarts in the industry, our these initiatives is to make our business We have initiated to standardise and management systems, vendor database processes more reliable and future- Realigning transform our business processes and other customised IT solutions and ready. The following table explains the in the areas of project, operation business excellence tools have been objectives of these initiatives: and other service functions under catalysing the growth at APL. These AGILE, DISHA and SYNERGY. We have features constitute our Intellectual invested a great amount of energy, Capital, which powers the valuation our Business time and Financial Capital towards of the Company. We continually focus these initiatives. External consulting to enhance our Intellectual Capital by organisations known for their expertise collaborating with business partners for in the field of process standardisation Processes efficient products and services. Initiatives Description AGILE – Projects AGILE is a business process transformation initiative focused on power, ports and mining business projects. The objective of AGILE Business Process Testing (BPT) is to establish and standardise the best-in-class IT-enabled processes across business verticals. The programme is focused on sustainable asset building with speed at optimum cost, establishing processes and systems to manage projects and integrating a sustainable approach across functions. DISHA – O&M DISHA is a business process transformation initiative focused on power business operations. Its objective is to establish world-class sustainable practices in O&M, fuel management, strategic planning and revenue management; Management Information System (MIS) and HR processes through operating model redesign; and process definition and implementation, including IT enablement.
SYNERGY – HR/ IT and Finance and Through SYNERGY, the HR team’s aim is to build sustainable and scalable HR processes Accounting (F&A) that will effectively address the needs of Adani Group Vision. Its objective is to deliver world-class process quality while becoming significantly more efficient in the utilisation of personnel by leveraging automation. It also aims to create a process-centric culture while retaining entrepreneurial energy and agility.
In our journey towards our vision, we are moving towards the standardisation of business processes to make them reliable and future ready. Our group has embarked on a journey of Business Process Transformation (BPT). Under the aegis of TEZZ, we have brought all our BPT under one common platform at the Group level. The objective of this platform is to facilitate information exchange and dynamic feedback, as we move from milestone to milestone in our journey of transformation.
51 Adani Power Limited | Value Creation Report 2017-18
Other Intellectual Assets
Assets Description Assets Description Management Systems All our operating plants have an IMS covering the requirements of ISO Vendor Database Adani Power, being part of the Adani Group, is benefitted with huge 9001, ISO 14001, OHSAS 18001 and ISO 50001. During the year, we Vendor database available across various business verticals of Adani Group. transitioned to the 2015 version of ISO 9001 and ISO 14001. We are in This database benefits us for volume consolidation and hence better the process of transitioning from OHSAS 18001 to ISO 45001. We have negotiation with vendors. Further, performance feedback of vendors across further improved our internal capabilities across all operating plants by group helps in finalising better vendors for our job. developing a team of certified Lead Auditors for the IMS to enhance system effectiveness. Knowledge Sharing We understand the importance of knowledge sharing among all employees Business Excellence and Workplace Management We have developed a strategy for continual excellence across all our across departments. We have therefore set up a system in place for businesses. For this purpose, we rely on a blend of proven management imparting knowledge gained through external trainings. TC talk conducted methods and tools, with suitable customisation as per our requirements. by our Techno-commercial team is one such initiative wherein senior leader are invited to share tacit knowledge with team members. We have received a joint recognition from the Japanese Union of Scientists and Engineers (JUSE) and Quality Circle Forum of India (QCFI), under Category Workbook for Techno-commercial We have also made system to institutionalise the knowledge the highest category, for all our operating locations during the last year. available with each individual subject matter expert by preparation of We have further strengthened our internal capabilities for workplace ‘Category Workbook’. Critical procurement items & services have been management by training identified employees to become certified lead divided in various categories and detailed Category work is created by assessors of 5S. We now have a team of 31 certified lead assessors of its subject matter expert which gives all required information about the 5S. Every year couple of teams from each operating plant have been category like its technical aspects, past purchase data, supply market participating in the National Convention on 5S and other rewards and analysis, risk mitigation plans, etc. recognitions. The teams have been receiving accolades at various forums. Six Sigma projects initiated at our Mundra, Tiroda and Kawai plants are E-logbook at Operating Power Plants APL along with its business partner Crave Infotech has developed a web another significant accomplishment for business excellence. A team of 27 based e-log system to reduce paper work and manual logbook entries. employees has also undergone training and has been certified as Green Belt for Six Sigma. Another batch of employees are working on the Six The E-logbook system is helping us in optimising the work efficiency and Sigma projects and we expect a strong team of about 100 employees better management visibility of all the tasks being carried out in the plant. possessing the Six Sigma greenbelt within FY 2018-19. This e-logbook application is important to make the information more accessible using simple portal based tools and retrieving functionalities. During the year, we carried out 11 Six Sigma projects, which resulted in a The system provides shift-wise reports such as shift defects, shift activities, ` cumulative cost saving of 160 million. Under AGILE and DISHA, there have major follow-up, manning details, equipment not available and other critical been two major process-improvement initiatives. parameters.
Customised ERP System We have customised the ERP system for our operations. The system is used for collecting data on material purchase and consumption, plant operations, employees and workforce, and waste generation and disposal.
52 53 Adani Power Limited | Value Creation Report 2017-18
Natural Capital
Power generation from fossil fuels is, Water Conservation management at Tiroda. De-silting and by nature, a resource and cleaning of community water ponds emission-intensive activity. Coal and and Management has been one of the interventions to water are the primary resources for improve groundwater recharge. For Water is mainly used to generate Restoring the thermal power generation. The major business continuity without eroding superheated steam to drive turbines. impact that our operations have on the Natural Capital, water storage capacity As a strategy, our coastal plants are environment include stack emissions has been developed to cater to 53 days designed to use seawater and our plants and waste generation. Major emissions of operations’ requirement for the located hinterland are designed to use through stacks are of Particular Matter Tiroda plant and 23 days for the Kawai water from surface water sources. While Environment to (PM) Oxides of Sulphur (SOx) and plant so that pressure on surface water our coastal locations do not face stress Oxides of Nitrogen (NOx). Besides, CO can be reduced during lean season. 2 for seawater drawl, water drawl for is also emitted due to the use of fossil hinterland plants is identified as a risk, fuels. In activities where coal is used During the reporting year, our hinterland which can occur during summer. Hence, as the primary fuel, the solid waste plants have achieved specific water water management is a material aspect its Resourceful generated is majorly fly ash. consumption close to 2.5 m3/MWh of our operations. For ash handling and against the statutory limit of dust suppression, we do not use water In addition to our legal compliance 3.5 m3/MWh. There is no statutory limit from natural sources as the system is requirements, we believe in obtaining for seawater consumption. However, we designed to meet these requirements a social license to operate. Decisions have set an internal target of through recycled and reused water. Glory regarding large investments in new 10 m3/MWh for seawater-based power businesses can have an irreversible plants with seawater FGD and For our hinterland power plants, a impact on the environment and can 6 m3/MWh for seawater-based plants source sustainability study of surface erode Natural Capital. We therefore with limewater FGD. Our Mundra and water has been conducted based on take a precautionary approach through Udupi power plants have achieved primary data and secondary historical due diligence and a risk identification water consumption close to these data of the past 25-30 years published process. We have identified the key internal targets. by the Indian Metrological Department. environmental aspects impacted by our We are working on watershed operations and value chain in our IMSs, which address the following areas.
Specific Water Consumption (m3/MWh) 10.0 10.6 9.53 6.07 5.69 5.45
Coal and water are the primary resources for thermal power generation. During the 2.92 2.67 2.50 2.49 2.38
reporting year, our hinterland plants have achieved specific water consumption close to 2.42 2.5 m3/MWh. We used 1.41 m3 of harvested rainwater and reduced withdrawal of surface 0.15 water to that extent. We could achieve 87.9% fly ash utilisation with 100% utilisation at 0.21 0.30 our Mundra, Kawai and Udupi plants. The intensity of the GHG emission has been 1.41 MCM 0.83 tCO2/MWh. We recognise the relationship between ecosystem services and our business sustainability, thereby trying to minimise any negative impact on biodiversity FY 2015-16 FY 2016-17 FY 2017-18 Rain water harvested and ecosystem services. Mundra TPP Tiroda TPP Kawai TPP Udupi TPP APL- Bitta Solar PV 55 Adani Power Limited | Value Creation Report 2017-18
We have implemented rainwater and 206 million KL, respectively, in the In addition to the core processes, water Ash utilisation is a major challenge at Tiroda due to its harvesting in our hinterland plants to financial year. Our cooling towers at is required for dust suppression in Waste Management geographical location as all the cement plants are at a reduce the withdrawal of surface water. Mundra and Udupi are seawater-based coal handling and for purging out the Power plant operations generate non-hazardous as well distance of more than 250 km. We have taken various At Mundra, rooftop rainwater harvesting and the discharged water is primarily a bottom ash generated in our boilers. as hazardous waste. The utilisation and disposal of these initiatives, including the following, to ensure sustainable is used for recharging groundwater blowdown of the cooling towers. We ensure that our requirement for all wastes are governed by strict regulations. Ash is a major utilisation of fly ash at all operating locations, with a special to mitigate the seawater ingress. At these secondary processes are met by non-hazardous waste and a material aspect for us focus on our Tiroda power plant: Kawai and Udupi, we created rainwater We maintain the temperature recycled or reusable water from our considering the quantity and challenges for utilisation in harvesting facilities and utilised differential well within the prescribed water treatment plants or from the certain geographical areas, such as at our Tiroda plant. • Development of a Fly Ash Utilisation Promotion and 638,717 m3 of harvested rainwater at limit of 50C before the water is blowdown of the cooling towers. During Research Park. Kawai and 767,051 m3 at Udupi, which discharged from our premises. We have the reporting year, 37.8% of water was The hazardous wastes generated are used oil, spent resins was used for plant operation. set up effluent and sewage treatment recycled or reused. In our operations, we and empty oil containers. These wastes are disposed through • Facility for loading fly ash in specialised railway wagons at plants, a coal runoff treatment plant do not use any water for coal cleaning. authorised agencies as per the Hazardous Waste Handling the Tiroda power plant. The total waste water generated and and a secondary Reverse Osmosis and Management Rules. There was no significant spill treated waste water discharged at (RO) plant. during the reporting year. We do not use any Polychlorinated • Training and encouraging entrepreneurs to set up fly ash our power plants was 212 million KL Biphenyls (PCBs) and there was no generation of PCB waste. brick manufacturing and cenosphere collection businesses We do not engage in import or export of any hazardous in the vicinity of our power plants. Local interested waste or materials under the Basel Convention. There is entrepreneurs have been trained during the past two years no radioactive waste generated and disposed from our and 50 entrepreneurs have already established fly ash power plants. brick manufacturing plants.
• Installation of fly ash brick plants within our premises with Fly Ash Management a capacity of 12,000 bricks and 1,000 tiles per day for Fly ash is a solid waste arising from the process of coal-based inhouse consumption. These fly ash bricks and tiles are power generation. Moist conditions are maintained in the ash used at all construction sites and township areas. During pond surface to prevent fugitive emissions. In Tiroda, we have FY 2017-18, a total of 0.845 million fly ash bricks and installed a High Concentration Slurry Disposal (HCSD) system 0.052 million tiles were manufactured. for ash disposal, where the ash gets solidified immediately. • Used pond ash in bund raising in the ash dyke and made There has been a lot of focus by the Central Government on the pond ash available free of cost for roads, buildings and ash utilisation from power plants. Though utilisation of fly infrastructure development in nearby areas. ash is a challenge for the entire power sector considering the total quantity of ash generated, at APL, we could achieve • Engagement of the Advanced Materials and Processes total utilisation of 87.9% during the year. This includes Research Institute (AMPRI), Bhopal, which is a unit of 100% utilisation at our Mundra, Kawai and Udupi plants. We the Council of Scientific and Industrial Research (CSIR), consider fly ash to be a useful resource. We have therefore Government of India, for research on fly ash utilisation for developed infrastructure to handle and enable us to sell fly soil conditioning. ash. This has helped us increase our ash utilisation supply to specialised agencies for use in cement manufacturing. In • As we need good-quality compost and manure for the FY 2017-18, our fly ash utilisation improved over the last year, green belt and landscaping at all operating power plants, as shown in the graph below: we have initiated the composting of organic waste, generated at all operating locations, in blending with fly ash. Fly Ash Generation and Utilisation
FGD implementation for all our operating units has been scheduled from March 2021 to June 2022 progressively. 5,745,089 Material Consumption 5,169,542
During the year, we consumed the following key materials for our O&M activities. 4,848,918
We have taken special care to optimise material use. The following table presents 87.9
details of our material consumption: 72.7 65.8 Table 09: Material Consumption (in MT)
Material FY 2015-16 FY 2016-17 FY 2017-18 Coal consumed 3,65,09,464 3,39,59,200 2,73,87,237 Chemicals used 9,422 9,551 9106 FY 2015-16 FY 2016-17 FY 2017-18 Lubricating oils (in KL) 329 201 153 Grease 33.9 27.3 24.9 LDO/HSD consumed 3,362 3,055 3,358 Fly Ash Generation (tonnes) HFO consumed 3,732 1,832 1238 Fly Ash Utilisation (%) Diesel (consumed in 2,711 2,275 1,774 equipment and vehicles)
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Emissions Management Emissions Intensity Biodiversity All our operating locations are outside (kg/MWh) the buffer areas and eco-sensitive In December 2015, the MoEF&CC has notified the limits Conservation zones notified around biodiversity for specific water consumption and stack emissions from hotspots, including wildlife sanctuaries, Biodiversity has been defined as ‘the 2.15
thermal power plants for SOx, NOx, PM and mercury 2.05 national parks and world heritage sites, variability among living organisms
emissions. For our existing operational units, we are already 1.79 declared under applicable regulations or from all sources and the ecological in compliance with the new emission standards for mercury international treaties ratified by India. complexes of which they are a part, and PM. To achieve compliance with the new standards Ecology and biodiversity value and 42.0
1.09 1.13 and includes diversity within species or for SO emissions, we are aligned with the phasing plan presence of forest areas within a 10 km 2 between species and of ecosystems’.
0.77 Million tCO e GHG emissions prepared by the CEA. As almost all power plants in India have radius of plant locations are mapped 2 to upgrade their pollution control devices for control of SO2 as part of the Environmental Impact 0.17
0.15 0.16 We recognise the relationship between to match the new standards, a schedule, known as ‘phasing Assessment (EIA) studies at the stage of our business and the ecosystems of plan’, has been prepared by the CEA for installation of FGD environmental clearances for the new the forests, grasslands and mangroves. systems in every plant. Accordingly, FGD implementation for FY 2015-16 FY 2016-17 FY 2017-18 projects. These studies are conducted Positive impacts on biodiversity around all our operating units has been scheduled from March 2021 through expert agencies accredited by our operations are also material to us. to June 2022 progressively. NOx Intensity the National Accreditation Board for SOx Intensity Education and Training (NABET). Going The Convention on Biological We are in consultation with technology providers and PM Intensity beyond legal requirements, we are Diversity (CBD), known informally industry forums in India to identify a suitable approach to sensitive to biodiversity hotspots within The Shergarh Wildlife Sanctuary is as the Biodiversity Convention, is a continuously achieve NOx emissions within 300mg/Nm3 from 25 km radius of our operations and about 20 km from Kawai. The multi-lateral treaty. India enacted the existing operational units. we recognise the presence of notified Mundra-Mohindragarh and Mundra- Biological Diversity Act, 2002 that aims GHG Emissions wildlife sanctuaries within this extended Dehgam transmission lines, which are to provide a mechanism for equitable The total emissions of PM, NOx and SOx in the reporting radius. Nagzira, New Nagzira and Koka part of our downstream value chain, (Million tCO2e) sharing of benefits arising out of the year were 8007.54 MT, 57,279.94 MT and 109279.23 MT, Wildlife Sanctuaries fall within 25 km of cross the Wild Ass Sanctuary in Kutch use of traditional biological resources respectively. The emissions are monitored on a real-time our Tiroda plant. and Patan districts. As areas of the and knowledge.
basis through a Continuous Emissions Monitoring System 60.1 Rann of Kutch attract migratory birds,
(CEMS), which also includes mercury emissions. These results 54.6 In addition to the EIA, a separate study our Group companies have installed We firmly believe that biodiversity and are directly linked with the Central Pollution Control Board for the prediction of impacts on the bird deflectors at these sections of its related ecosystems, such as forests, servers. In addition to this, we regularly conduct off-line Nagzira Wildlife Sanctuary due to PM, transmission lines. At Mundra, we have 42.0 grasslands, mangroves and urban areas, monitoring of our stacks. Ambient air quality monitoring is gaseous and thermal emissions from noticed the presence of two near- provide different services to the society. also done through an online Ambient Air Quality Monitoring the Tiroda power plant was conducted threatened species as per the IUCN list These services are collectively known System (AAQMS). through an expert external agency – the Black-necked Stork and Snake Bird as ‘ecosystem services’. We recognise in 2011. Besides, site-specific wildlife (Darter) – which we monitor regularly. 27.7 the relationship between ecosystem 25.1 conservation plans have also been We are sensitive to the biodiversity services and our business sustainability, Emissions prepared and implemented at the plant. of these areas and keep ourselves 17.9
17.7 thereby trying to minimise any negative 15.6 We provided LPG gas connections and updated about any legal development (tonne) 14.7 impact on biodiversity and ecosystem one year’s supply of gas cylinders to or compliance requirements related to
7.62 6.99 services. We have taken efforts to
6.91 6.82 5.35 biodiversity hotspots. 4.27 three villages adjacent to the Nagzira positively impact the environment and Wildlife Sanctuary to reduce the biodiversity around our operations. collection and usage of firewood from Besides our actions to support We undertook large-scale plantations FY 2015-16 FY 2016-17 FY 2017-18 the sanctuary areas. For our Tiroda biodiversity and ecosystem services, it is 142,132.48 in and around our power plants and power plant, 163.84 Ha of forest land our focus area to conduct due diligence APL (Business) Tiroda TPP office locations. Our focus is on the
114,906.36 has been diverted, out of which before selecting a site and go beyond 109,279.23 Mundra TPP Udupi TPP selection of local and diverse species for 15.25 Ha land is used for railway siding. the compliance of regulations regarding Kawai TPP such plantations. For diversion of this forest land, an biodiversity. equal area of non-forest land has been 69,702.58 In Mundra, mangrove plantation handed over to the forest department Our approach is to improve the habitat
53,516,76 57,279.94 has been done in the coastal areas. as compensatory afforestation land for species found in the vicinity of Environmental impact assessment has in Ratnagiri district of Maharashtra. our plants based on the scientific been carried out for prior approval of This serves as an offset habitat for studies that we conduct through 11,894.84 9,808.86
8,007.54 projects, including the assessment biodiversity affected due to forest external experts. of the impact of our activities on land diversion. flora and fauna. Site-specific wildlife FY 2015-16 FY 2016-17 FY 2017-18 We have also conducted a marine conservation plans are prepared We have received environmental impact assessment study through the based on scientific studies, wherever NOx clearance for expansion of our Udupi National Institute of Oceanography applicable, for environmental clearance SOx plant. There is no national park, (NIO) to scientifically locate the intake and forest land diversions. Endangered PM sanctuary, elephant or tiger reserve, or and outfall points. Screens and gate flora and fauna within a 10 km radius wildlife corridor existing or proposed filters have been provided at the of our project locations are studied within 10 km radius of the project site. seawater intake to prevent marine in order to ensure that areas of Site-specific wildlife study of 10 km life from entering the system. Cooling biodiversity significance, protected radius around the proposed expansion towers and a 11 km long seawater regions or any red list species based on project has been conducted by the outfall channel have been designed to the reports of the International Union project proponent through a achieve differential temperature of for Conservation of Nature (IUCN) are NABET-accredited Wildlife Expert. not affected by our operations.
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less than 50C between the intake and designed and built all power plants and Managing our Carbon outfall points. We regularly monitor infrastructure to withstand cyclones Conversion Factor the marine biodiversity around the of up to 198 kmph. At the same time, Footprint outfall area, including zooplankton sufficient fuel stock is built at the plants Sl. No. Parameter Conversion Factors We regularly calculate and monitor and phytoplankton. to overcome any short-term fuel supply 1. Energy 1 Gcal = 4.1868GJ emissions generated from our stress. Various scenarios of emergency 1 KWh = 0.0036 GJ power-generation process. We do not owing to extreme weather events use any biogenic fuels and therefore, 2. GHG Emissions Purchased electricity from the grid Climate Change have been envisaged and appropriate there are no biogenic emissions. 1 MWh = 0.96 tCO e, (Ref. CO baseline data, V-11, CEA) emergency preparedness plans have 2 2 Mitigation and During the financial year, our power been charted out. Global Warming Potentials (tCO2e) Adaptation Strategy plants emitted 42.0 million tCO2e GHG CO = 1 (direct emissions) compared to 2 Fossil fuels are viewed as one of the With respect to the rising sea levels and 54.8 million tCO e GHG (direct CH = 21 largest contributors to climate change cyclonic surges due to global warming, 2 4 emissions) in FY 2016-17. The intensity and increase in GHG and other air the finished floor level of the Mundra N O = 310 of the GHG emission has been 2 emissions such as SOx and NOx. We power plant has been raised to 10 m SF = 23,900 (Ref.: DEFRA, UK) 0.83 tCO /MWh in the reporting year. 6 were the first in India to commission above the Chart Datum (CD), the lowest 2 This has improved over the last year Emissions Due to Air Travel: supercritical boilers, which save about astronomical tides and mean low water, and GHG emissions from upstream coal 2% of fuel per unit of power generated whereas the highest high tide recorded Domestic (<463 km) = 0.00017147 tCO e per person-km Short Haul (>=463 transportation have been recorded at 2 and help in subsequent reduction in is 5.4 m above the CD. The intake water km and <1108 km) = 0.000097 tCO2e per person-km 0.10 tCO /MWh. GHGs per unit. In the future, we are channel is designed at -6 m from the CD 2 Long Haul (>1,108 km) = 0.00011319 tCO2e considering utilising ultra-supercritical to ensure water availability even at the We also monitor emissions from our Emissions Due to Logistics of Input Material and Waste: units for upcoming TPPs to further lowest of the low tides. Similarly, at the support processes such as company- Road Transport = 0.000204 tCO e per tonne-km reduce specific GHG emission. Till date, Udupi power plant, the seawater intake 2 owned vehicles and equipment, fugitive we have commissioned 7,920 MW (12 is -4.5 m from the CD. The finished floor Rail Transport = 0.00011517 tCO2e per tonne-km emissions from circuit breakers [Sulphur Sea Transport = 0.0000332 tCO e per tonne-km units of 660 MW each) of power plants level is at 28.5 m above the Mean Sea 2 Hexafluoride (SF )] and CO -based based on supercritical technology. Level (MSL). During due diligence, our 6 2 3 fire extinguishers, and GHG emissions 3. Water 1 KL = 1 m team reviewed the risks related to the due to the import of electricity during 4. Fuels Furnace Oil To adapt to the increase in water increase in sea levels and concluded shutdowns. In the financial year, we did 1 KL = 0.95 MT temperatures due to climate change in that the plant will not be impacted not purchase any electricity for PPAs, GCV = 10,500 Kcal/Kg the future, all our thermal power plants on this account. For hinterland power except Bitta. We have made conscious are equipped with induced draft cooling plants, based on the findings of source Diesel efforts to optimise our logistic networks, towers with a re-circulation system. sustainability studies, the financial 1 KL = 0.85 MT including sourcing material based This will help in maintaining the desired impact has been calculated considering GCV = 10,500 Kcal/Kg LDO on minimum landing costs, thereby temperature difference across the the loss of power generation in the case reducing transportation distances and 1 KL = 0.86 MT condenser and maintain plant efficiency of non-availability of water in any year developing local vendors to encourage GCV = 10,500 Kcal/Kg over time. To combat any increase in due to very less rainfall. To address this local procurement. air temperature, all our power plants risk, we have created enough water 5. Health and Safety 1 Fatality = 6,000 person-days lost that are located in tropical climatic storage capacity at our Tiroda and zones are designed to perform under Kawai power plants. R&R and Change in extreme temperatures. Land Use Changes in the precipitation rates For expansion of UPCL, 295 Ha of land may affect water availability in our have been proposed for acquisition. This hinterland power plants at Tiroda and land proposed is within the industrial Kawai. To mitigate the risk of reduced area notified by the Government of water availability, we have implemented Karnataka. For our Godda project, as suitable water conservation and per Environment Clearance, 508 Ha recycling practices, including rainwater of land have been proposed for harvesting and increasing the green acquisition through the Government of belt cover. Jharkhand. With the mutual consent of the land owners and within the inbuilt Extreme weather events such as strong framework of R&R, we aim to optimise and frequent storms can adversely land utilisation. affect the supply of fuel and damage generation and grid infrastructure. 7,920 MW To combat these aspects, we have Based on supercritical technology
60 61 Adani Power Limited | Value Creation Report 2017-18
• Verified the value creation disclosures related to the six capitals and claims made in the Report, and assessed Independent Assurance Statement the robustness of the data management system, data accuracy, information flow and controls for the reported disclosures; Scope and Approach • Examined and reviewed documents, data and other information made available by the Company related to DNV GL represented by DNV GL Business Assurance India Private Limited (‘DNV GL’) was engaged by Adani Power disclosures; Limited (‘APL’, Corporate Identity Number L40100GJ1996PLC030533) to undertake an independent assurance of the • Conducted in-person interviews with top and senior management team of Company and other Company’s Value Creation Report 2017-18 (‘the Report’) in its electronic (Portable Document Format (PDF)) format. representatives, including data owners and decision-makers from different divisions and functions of the The Report is prepared based on the International
The Management team of the Company have the sole responsibility for the preparation of the Report and are Materiality responsible for all information disclosed in the Report as well as the processes for collecting, analysing and reporting The process of determining the issues that is most relevant to an organization and its stakeholders the information presented in the printed Report, including the references to the Company’s website. APL is responsible The Report articulates the process of identification and prioritisation of material issues emerging from materiality for ensuring the maintenance and integrity of reported and referenced non-financial disclosures in its website. In analysis based on
DNV GL’s assurance engagements are based on the assumption that the data and information provided by the client to us as part of our review have been provided in good faith and free from any misstatements. DNV GL expressly Responsiveness disclaims any liability or co-responsibility for any decision a person or an entity may make based on this Assurance The extent to which an organisation responds to stakeholder issues Statement. The Company has established formal and informal process to respond to stakeholder concerns and feedback, and these processes have been established both at Operation and Maintenance, and Project levels at APL. We consider that the Report has fairly disclosed the strategies and management approach related to identified key sustainability Basis of our Opinion topics and challenges considering the overall sustainability context of the power generation business and related A multi-disciplinary team of sustainability and assurance specialists performed work at APL’s Corporate Office at activities defined within the Report. Nothing has come to our attention to suggest that the Report does not meet the Ahmedabad, Gujarat and visited operational sites at Tiroda in Maharastra and Udupi in Karnataka. We adopted a risk requirements related to the Principle of Responsiveness. based approach, i.e. we concentrated our verification efforts on the issues of high material relevance to Company’s power generation and trading business, and its key stakeholders. We undertook the following activities: Specific Evaluation of the Information on Sustainability Performance We consider the methodology and process for gathering information developed by APL for its non-financial • Reviewed the Company’s approach to addressing the requirements of
1 The VeriSustain protocol is available on request from www.dnvgl.com * Assurance Engagements other than Audits or Reviews of Historical Financial Information. 62 63 Adani Power Limited | Value Creation Report 2017-18
Mapping with GRI Standards and Other Frameworks
Mapping Mapping GRI Page with UN Mapping with IFC Standard Brief Description Section of the report No. of Section of SDG Global with SDG Performace Reliability 2016 report Compact Standards The accuracy and comparability of information presented in the report, as well as the quality of underlying data Principles management systems 102-1 Name of the organisation 2 - - - - The Report has disclosed APL’s non-financial performance through selected GRI Topic Specific Standards for the 102-2 Description of organisation Our Business 2 - - - - identified qualitative and quantitative disclosures and these are captured in data formats generated by APL’s activities Enterprise Resource Planning system. The majority of data and information verified at the Corporate Office and 102-3 Location of HQ Our Business 2 - - - - sampled operational sites were found to be accurate. Some of the data inaccuracies identified during the verification 102-4 Location of operations and Our Business 3 - - - - process were found to be attributable to transcription, interpretation and aggregation errors and the errors were number of countries of communicated and subsequently corrections made in the reported data and information. Nothing has come to our operation attention to suggest that the Report does not meet the requirements related to the Principle of Reliability. 102-5 Ownership and legal form Refer AR page number 31 2 - - - -
102-6 Geographical location of Our Business and Operating 3 - - - -
service Context Additional principles as per DNV GL VeriSustain Beneficiary and customers 28 - - - - Completeness How much of all the information that has been identified as material to the organisation and its stakeholders is 102-7 Scale of organisation Financial Capital 33 - - - - reported 102-8 Information on employees and Human Capital 45 8 Employment - - The Report has fairly brought out the disclosure requirements of
64 65 Adani Power Limited | Value Creation Report 2017-18
Mapping Mapping Mapping Mapping GRI Page with UN GRI Page with UN Mapping with IFC Mapping with IFC Standard Brief Description Section of the report No. of Section of SDG Global Standard Brief Description Section of the report No. of Section of SDG Global with SDG Performace with SDG Performace 2016 report Compact 2016 report Compact Standards Standards Principles Principles 102-31 Review of economic, Governance 14-15 - - - - 203-2 Significant indirect economic Financial Statements 1, 2, 3, 1, 2, 3, 8, 1 - Availability of PS-1 to - environmental and social topics impacts 8, 10, 17 products and services PS-8 102-32 Highest governance body’s role Our approach to reporting 9 - - - - 10, 17 for those on low in sustainability reporting incomes, Economic 102-33 Communicating critical Governance and Risk 15 - - - - development in areas concerns Management of high poverty 102-34 Nature and total number of Governance and Risk 15 - - - - 2, 8 - Changing critical concerns Management the productivity of 102-35 Remuneration policies Refer AR page number 64 46 - - - - organisations, sectors, or the whole economy 102-36 Process for determining Refer AR page number 63 12-13 - - - - 3 - Access to remuneration medicines 102-38 Annual total compensation Refer AR page number 147 - - - - - 8 - Indirect impact ratio on job creation, jobs 102-39 Percentage increase in annual Refer AR page number 204 - - - - - supported in supply total compensation ratio chain 102-40 List of stakeholder groups Social and Relationship 23 - - - - 10 - Economic Capital development in areas 102-41 Collective bargaining 41 8 Freedom of - Principle 3 of high poverty, agreements association and 10, 17 - FDI collective bargaining 204-1 Proportion of spending on local Value Chain Context 29 12 Procurement PS-3 - 102-42 Identifying and selecting Social and Relationship 23 - - - - suppliers practices stakeholders Capital 205-1 Operations assessed for risks Statements, Governance 16 16 Anti-corruption PS-2 Principle 10 102-43 Approach to stakeholder Social and Relationship 23 - - - - related to corruption engagement Capital 301-1 Materials used by weight or Natural Capital 56 8, 12 Materials efficiency PS-3 - 102-44 Key topics and concerns raised Governance 15 - - - - volume 102-45 Entities included in the Refer AR page number 175 2 - - - - 302-1 Energy consumption within the Manufactured Capital, 38 7, 8, 12, 7, 8, 12, 13 - Energy PS-3 - consolidated financial organisation Statements 13 efficiency statements 7 - Renewable energy 102-46 Defining report content and About the report 25 - - - - 12 - Transport topic boundaries 302-2 Energy consumption outside of Natural Capital - 7, 8, 12, 7, 8, 12, 13 - Energy PS-3 - 102-47 List of material topics Governance 27 - - - - the organisation 13 efficiency, 102-48 Restatements of information None 8-9 - - - - 7 - Renewable energy 102-49 Changes in reporting Our Approach to Reporting Cover - - - - 12 - Transport page 302-3 Energy intensity Statements, Manufactured 39 7, 8, 12 7, 8, 12 - Energy PS-3 - 102-50 Reporting period About the Report -- - - - Capital efficiency, 102-51 Date of most recent report Our approach to reporting - - - - - 302-4 Reduction of energy Statements, Manufactured 38 7, 8, 12, 7, 8, 12, 13 - Energy Principle 8 102-52 Reporting cycle Our approach to reporting 8 - - - - consumption Capital 13 efficiency 102-53 Contact point for questions CSO Statement -- - - - 303-1 Water withdrawal by source Statements, Manufactured 55 6 Sustainable water PS-3 Principle 8 regarding the report Capital withdrawals 102-54 Claims of reporting in Not Applicable -- - - - 303-2 Water sources significantly Natural Capital 55 6 Sustainable water PS-3 Principle 8 accordance with the GRI affected by withdrawal of water withdrawals Standards 303-3 Water recycled and reused Natural Capital 56 6, 8, 12 6, 8, 12 - Water PS-3 Principle 8 102-55 GRI Content Index GRI Content Index 65-68 - - - - efficiency 102-56 External Assurance External Assurance 62-64 - - - - 6 - Water recycling and reuse 103-1 The management approach and Governance, Executive 4-11 - - PS-1 to - its components Messages PS-8 304-1; 304-1: Operational sites owned, Natural Capital 59 6, 14, 15 6 - Water related PS-5 to Principle 304-2; leased, managed in, or adjacent ecosystems and PS-8 7-9 103-2 The management approach and Governance, Executive 4-11 1, 5, 8, 16 1, 5, 8 - Economic PS-1 to - 304-3 to, protected areas and areas biodiversity its components Messages inclusion; PS-8 of high biodiversity value 14 - Marine 16 - Greviance outside protected areas 304-2: biodiversity mechanism Significant impacts of activities, 15 - Mountain 103-3 Evaluation of the management Governance, Executive -- - PS-1 to - products, and services on ecosystems, natural approach Messages PS-8 biodiversity 304-3: Habitats habitat degredation, 201-1 Direct economic value Financial Capital 2, 5, 2, 5, 7, 2, 5, 7, 9 - - - protected or restored terrestrial and generated and distributed 7, 8, 8, 9 Infrastructure inland fresh water 9, 33 investments ecosystems 8-Economic 305-1; 305-1: Direct (Scope 1) GHG Statements 60 3, 12, 13, 3, 12 - Air quality PS-3, PS-4 - performance 305-2; emissions 14, 15 12 - Transport 203-1 Infrastructure investments and Financial Statements 2, 5, 7, 2, 5, 7, 2, 5, 7, 9, 11 - PS-1 to - 305-3 305-2: Energy indirect (Scope 13 - GHG emissions services supported 8, 9, 11 9, 11 Infrastructure PS-8 2) GHG emissions 14 - Ocean investment 305-3: Other indirect (Scope 3) acidification GHG emissions 15 - Forest degradation 305-4 GHG emissions intensity Statements 58 13, 14, 15 13 - GHG emissions PS-3, PS-4 - 14 - Ocean acidification 15 - Forest degradation 305-5 Reduction of GHG emissions Natural Capital 60 13, 14, 15 13 - GHG emissions PS-3, PS-4 - 14 - Ocean acidification 15 - Forest degradation
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Mapping Mapping Mapping Mapping GRI Page with UN GRI Page with UN Mapping with IFC Mapping with IFC Standard Brief Description Section of the report No. of Section of SDG Global Standard Brief Description Section of the report No. of Section of SDG Global with SDG Performace with SDG Performace 2016 report Compact 2016 report Compact Standards Standards Principles Principles 305-6 Emissions of ozone-depleting Natural Capital 60 3, 12, 13 3, 12 - Air quality PS-3, PS-4 - 407-1 Operations and suppliers in Human Capital, Social and 47 8 8 - Freedom of PS-2 Principle 3 substances (ODS) 13 - GHG emissions which the right to freedom Relationship Capital association and 305-7 Nitrogen oxides (NOX), sulfur Natural Capital 58 3, 12, 13, 3, 12 - Air quality PS-3, PS-4 - of association and collective collective bargaining oxides (SOX), and other 14, 15 13 - GHG emissions bargaining may be at risk significant air emissions. 14 - Ocean 408-1 Operations and suppliers at Value Chain Context 25 8, 16 8, 16 - Abolition of PS-2, PS-3 Principle 5 acidification significant risk for incidents of child labour 15 - Forest child labour degradation 409-1 Operations and suppliers at Value Chain Context 25 8 Elimination of forced PS-2, PS-3 Principle 4 306-1 Water discharge by quality and Natural Capital 56 3, 6, 12 3, 6, 12 - Water quality PS-3 - significant risk for incidents of or destination 6 - Water related forced or compulsory labour compulsory labour ecosystems and 411-1 Incidents of violations involving Natural Capital 43 2 Indegineous rights PS-5 to - biodiversity rights of indigenous peoples PS-8 14 - Water discharge 412-1 Operations that have been Human Capital 48 - - PS-2 Principle 1 to oceans subject to human right reviews 306-2 Waste by type and disposal Natural Capital 57 3, 6, 12 3 - Spills; 6, 12 - Waste, PS-3, PS-4 - or impact assessments method 6 - Water related 412-2 Operations with local Key Highlights 48 - - PS-1 - ecosystems and community engagement, biodiversity impact assessments and 306-5 Water bodies affected by water Natural Capital 55 6, 15 6 - Water related PS-3 - development programmes discharges and/or runoff ecosystems and 413-1 Operations with local Social and Relationship 42-43 - - PS-1 to - biodiversity community engagement, Capital PS-8 15 - Natural habitat impact assessments and degredation, development programmes terrestrial and 413-2 Operations with significant Social and Relationship 42-43 1, 2 1, 2 Access to land PS-1 to - inland fresh water actual and potential negative Capital PS-8 ecosystems impacts on local communities 307 Environmental Governance, Executive 58 12, 13, 14, 12, 13, 14, 15- PS-1 to Principle 415-1 Political contributions Governance 41 16 Anti corruption - Principle 10 Compliance Messages, Natural Capital 15 Environmental PS-8 7-9 419-1 Non-compliance with laws and Governance, Executive 4-21 16 16 - Compliance with PS-1 to - investments regulations in the social and Messages laws and PS-8 308-1; New suppliers that were hired Value Chain Context 21 - - PS-3 - economic area regulations 308-2 after considering environmental Other Indicators criteria EU-16 Policies and requirements Human Capital 46, 49 8 Occupational health PS-2, PS-4 - 401-1 New employee hires and Human Capital, Statements 49 5, 8 5 - Gender equality PS-2 - regarding health and safety of and safety employee turnover 8 - Employement employees and employees of 401-2 Benefits provided to full- Financial Capital, 33 8 Earnings, wages and PS-2 - contractors and subcontractors time employees that are not Statements benefits EU-17 Days worked by contractor Human Capital 49 8 Occupational health PS-2, PS-4 - provided to and subcontractor employees and safety temporary or part-time involved in construction, employees operation & maintenance 401-3 Parental leave Human Capital, Statements 46 5, 8 5, 8- Parental leave PS-2 - activities 402-1 Minimum notice periods Statements 41 8 8 - Labour- PS-2, PS-4 - EU-21 Contingency planning Natural Capital 25 1, 11 1, 11 - Disaster/ PS-1 to - regarding operational changes management relations measures, disaster/emergency emergency planning PS-4 403-1 Workers representation in Human Capital, Statements 49 8 8 - Occupational PS-2 - management plan and training and formal joint management– health and safety programs, and recovery/ response worker health and safety restoration plans committees 403-2 Types of injury and rates of Financial Capital, 49 3, 8 3, 8 - Occupational PS-2 - injury, occupational diseases, Statements health and safety lost days, and absenteeism, and number of work-related fatalities 403-3 Workers with high incidence or Statements 49 3, 8 3, 8 - Occupational PS-2 - high risk of diseases related to health and safety their occupation 404-1 Average hours of training per Key Highlights 47 4, 5, 8 4, 8 - Employee PS-1 - year per employee training and education 5 - Gender equality 404-2; Programmes for upgrading Human Capital 46 8 Employee training and PS-1 - employee skills and transition education assistance programs 404-3 Percentage of employees Key Highlights 46 5 5 - Gender equality PS-1 - receiving regular performance 8 - Employee training and career development and education reviews 405-1 Diversity of governance bodies Governance 12 5, 8 5 - Gender equality, - - and employees Women in leadership 8 - Diversity and equal opportunity 406-1 Incidents of discrimination and Human Capital, Social and 46 5, 8, 16 5, 8, 16 - Non- PS-2 Principle 6 corrective actions taken Relationship Capital discrimination
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Abbreviation
AAQMS Ambient Air Quality Monitoring System IEX Indian Energy Exchange AF Adani Foundation IFC International Finance Corporation AGM Annual General Meeting IFE Institute of Fire Engineers AMA Ahmedabad Management Association ILO International Labour Organisation AMPRI Advanced Materials and Processes Research Institute IMS Integrated Management System APL Adani Power Limited Ind-AS Indian Accounting Standards APJL Adani Power Jharkhand Limited IPPAI Independent Power Producers Association of India APML Adani Power Maharashtra Limited IR Integrated Reporting APMuL Adani Power Mundra Limited ISO International Standards Organisation APP Association of Power Producers IT Information Technology APRL Adani Power Rajasthan Limited IUCN International Union for Conservation of Nature APTRI Adani Power Training and Research Institute JMC Junior Management Cadre ASC Apex Sustainability Committee JUSE Japanese Union of Scientists BPT Business Process Transformation KL Kilo Litres BRR Business Responsibility Report KRA Key Result Area CBD Convention on Biological Diversity LDO Light Diesel Oil CD Chart Datum LPG Liquefied Petroleum Gas CEA Central Electricity Authority LTI Lost Time Injury CEO Chief Executive Officer L&D Learning and Development CEMS Continuous Emissions Monitoring System MAAS Management Audit & Accounting System CERC Central Electricity Regulatory Commission M&A Mergers and Acquisitions CFO Chief Financial Officer MCL Mahanadi Coalfield Limited CII Confederation of Indian Industry MCM Million Cubic Metre CoE Centre of Excellence MDA Management Discussion and Analysis CRO Chief Risk Officer MERC Maharashtra Electricity Regulatory Commission CSO Chief Sustainability Officer MHCU Mobile Healthcare Units CSIR Council of Scientific and Industrial Research MIS Management Information Systems CSR Corporate Social Responsibility MMC Middle Management Cadre DDUGJY Deen Dayal Upadhyaya Gram Jyoti MMT Million Metric Tonnes DISCOM Distribution Company (India) MMTPA Million Metric Tonnes Per Annum DOA Delegation of Authority MoEF&CC Ministry of Environment, Forest and Climate Change DM Disaster Management MoU Memorandum of Understanding ECB External Commercial Borrowings MSEDCL Maharashtra State Electricity Distribution Company Limited EIA Environmental Impact Assessment MSL Mean Sea Level EPC Engineering, Procurement and Construction MT Metric Tonnes ERP Enterprise Resource Planning MTPA Metric Tonnes Per Annum FICCI Federation of Indian Chamber of Commerce and Industry MU Million Units FTA Fixed Term Appointee MUPL Mundra Utilities Pvt. Ltd. FGD Flue Gas Desulphurisation MW Mega Watt FSA Fuel Supply Agreements MWh Mega Watt Hour FY Financial Year NABET National Accreditation on Board for Education and Training F&A Finance & Account NABL National Accreditation Board for Testing and Calibration Laboratories GCCI Gujarat Chamber of Commerce and Industry NGO Non-Governmental Organisations GHG Greenhouse Gas NGT National Green Tribunal GJ Giga Joules NIO National Institute of Oceanography GRI Global Reporting Initiative NOx Oxides of Nitrogen GSC Gujarat Safety Council NSC National Safety Council GST Goods and Services Tax O & M Operation and Maintenance GUVNL Gujarat Urja Vikas Nigam Limited ODS Ozone-depleting Substances HBA Harga Batubara Acua OH&S Occupational Health and Safety HCSD High Concentration Slurry Disposal PCB Polychlorinated Biphenyls HFO Heavy Fuel Oil PCKL Power Corporation of Karnataka Limited Hi-Po High Potential PLF Plant Load Factor HOD Head of Department PMS Performance Management System HPC High Powered Committee PPA Power Purchase Agreement HR Human Resources PV Photo Voltaic HRMS Human Resource Management System QCFI Quality Circle Forum of India HSD High Speed Diesel R&R Resettlement and Rehabilitation HSE Health, Safety and Environment RDPPC Rajasthan Discoms Power Procurement Centre HSEQ Health, Safety, Environment and Quality REMCL Railway Energy Management Company Limited HPCC Haryana Power Purchase Centre RENEW Reaffirming trust with Efficient actions to Nurture and Evolve a Wholesome tomorrow ICC Internal Complaints Committee RERC Rajasthan Electricity Regulatory Commission
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RLDC Regional Load Despatch Centre RO Reverse Osmosis S&CSR Sustainability and Corporate Social Responsibility SDG Sustainable Development Goals SEBI Securities and Exchange Board of India SECL South Eastern Coalfields Ltd. SERC State Electricity Regulatory Corporation SF6 Sulphur Hexafluoride SHAKTI Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India SHR Station Heat Rate SLDC State Load Despatch Centre SMC Senior Management Cadre SOP Standard Operating Procedure SOx Oxides of Sulphur PM Particulate Matter SRC Sustainability Reporting Committee TC Techno Commercial TANGEDCO Tamil Nadu Generation & Distribution Company Limited TNI Training Need Identification TPP Thermal Power Plant T&D Transmission & Distribution UDAY Ujjwal DISCOM Assurance Yojana UNGC United Nations Global Compact UPCL Udupi Power Corporation Limited US United States VRM Vendor Relationship Management
72 Adani Power Limited Shikhar, Near Adani House, Mithakhali Six Roads, Navrangpura, Ahmedabad - 380 009 Gujarat, India.
Tel: +91 79 2656 5555 Fax: +91 79 2656 5500 www.adanipower.com