1. Stake Holders company has a system to select Stake Holders on project basis State Electricity Boards as customers Board of Directors Employees Local Government BDO,SDM,DM Panchayat and panchayat leader Village Advisory Development Committee (VADC) NGOs Influential people, People Representative e.g. Gram Pradhan, MLA, MP Suppliers /contractors

2. Stake Holders Engagement company has a well defined process for stake holder engagement -Environmental Impact Assessment -Socio-economic survey -Social Impact evaluation -Informal and Formal Communication -Media Briefing -Formal Meetings -Implementing, Reporting, monitoring -Concept < Report /Explain -Rehabilitations Plan/community development plan

3. Stake Holders Expectations People First Approach Strong Brand Name Industry leadership Position Wide range of growth opportunities Focus on Long term development No. 1 company in the power sector in India To be the worlds largest and best power producer powering India growth Commitment to society

4. company Field Visit Observations with Indicators on Good Human Rights Practices In India Human Rights is viewed as state subject however companies such as company have evolved Human Rights related policies Awareness on Human Rights issues amongst the company ’s labour representatives is highest amongst all PSUs in India. company follows maturity model (with the underlying concept of report or explain). Wages for labor paid by company are higher than minimum wages specified in the respective States where the plants are located (an indicator for good human rights practices).

5. company supports and respects International Human Rights in the company's sphere of influence, and makes sure that their own corporations are not complicit with Human rights violation. company has been maintaining transparency and sharing the information concerning different stakeholders through various consultative and participatory forums. The organisation prevents use of forced and compulsory labor Safety committees comprise personnel from labor & management. company Field Visit Observations with Indicators on Good Human Rights Practices

6. company attempts to end discrimination in the workplace – Focus on Women’s empowerment by promoting gender equality – Enabling employment for over 450 persons who are differently abled employees- Highest in Any PSU in India. – Significant representations from Tribal areas/Backward class deployment in work force etc in line with National Priorities on Affirmative actions and overcoming issues of discrimination on caste, creed & color basis. company does not have child labor The right to collective bargaining and recognition of freedom of association is a normal practice. company arranges for third party review of socio-economic practices and there is extensive focus on capacity building activities company Field Visit Observations with Indicators on Good Human Rights Practices

7. Environmental Issues Environmental Management Cell, 1981 Regulatory standard for height of stack taken on the basis of that maintained by company Among firsts in India to start Environmental Impact Assessment (EIA) Air Pollution control devices like Electro-static Precipitators (ESPs) installed at all plants Complying with all regulatory standards at all sites

8. Environmental Issues Recycling waste water from cooling towers & ash-slurry disposal ponds Proactive efforts towards forestation at all their power plant sites Ash-utilization: one of the key concerns -Ash Utilization Division set up in 1991 -Towards reduction of greenhouse gases

9. Community Involvement & Development Integration of Social Responsibility company has Instituted a well developed Institutional Policy and Mechanism for Community Development as part of their SR initiatives. As of now, company has handled the affected villages due to Land acquisition in the range of 5 to 50 and Budget allocated in the range of 5 to 500 Million Indian Currency for the community development. Rehabilitation / Resettlement is a mandatory legal requirement as per Indian government rules, so company also abides by it in totality.

10. MECHANISM FOLLOWED IN CASE OF LAND ACQUISITIONS company gets the Socio-economic surveys done by third party & Analysis Creation of Village Development Advisory Committee (VDAC) consisting of Representatives from Government, Public authorities, NGOs and other stakeholders and community representatives and Communication amongst all VDAC members regarding requirements and priorities which is then communicated to affected groups at large. Formation of dedicated Community Development Cell and Community Development Action Plan Budget Allocation and Project scheduling for Community SR activities Socio – economic impact evaluation The Plan Implementation

11. Evaluation, Feedback and Progress Reporting is done as under: Board of Directors Project Site Teams Regional Offices Corporate Authority

12. OTHER CSR INITIATIVES FOR COMMUNITY DEVELOPMENT BY company Capacity Building: Through opening of Schools, development of Industrial Training Institutes (ITIs) and other educational institutions Infrastructure Development like approach roads, providing the electricity to the rural areas Overall Infrastructure, Societal and Economic Development

13. Consumer Issues Direct consumers of company - State Electricity Board (SEB) which is a Government undertaking. Main consumer issues: 1.Inadequate capacity of SEB to pay company. 2.Lack of efficient working of SEBs. Redressal by company 1.company enhanced their capacity through personal hand holding, interactions and meetings in the area of power stations and distribution. As a result, capacity of SEB increased by 500 MW.

14. 2.Facilitating all SEBs for implementing Accelerated Power Development and Reform Programmes which resulted in quality of supply, improved the efficiency in distribution, reduction in Transmission and distribution losses and improvement in end customer satisfaction. 3.Also facilitated in implementing information technology in billing and distribution systems. 4.company also introduced incentives for prompt payment by SEBs. 5.Stakeholder mapping and engagement and held meetings with management of SEB on a 6 monthly basis Consumer Issues

15. Fair marketing practices 1.As the prices are controlled by Central Electricity Regulatory Commission, India, all aspects of fair marketing practices are covered. Health and safety 1.Health & Safety- ISO 9000, 14000, SA8000 have already been implemented at all 20 sites and guidelines pertaining to ISO26000 have been communicated at all sites. 2.Consumer issues were also addressed as per guidelines provided by Ministry of Corporate Affairs and Department of Public Enterprises. Consumer Issues