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Corporate Social Responsibility (CSR) Policy

Rajasthan Rajya Vidyut Utpadan Nigam Limited Jaipur (Rajasthan) 2011

The Corporate Social Responsibility (CSR) Policy of Rajasthan Rajya Vidyut Utpadan Nigam Limited


Background & Vision

Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUN) has been formed consequent upon the unbundling of the erstwhile Rajasthan State Electricity Board (RSEB) on 19th July 2000. RVUN has been entrusted with the Operation & Maintenance of the State owned power generating stations as well as setting up new Power generation projects under State Sector to make available power to the State of Rajasthan on a sustainable basis. RVUN aims to actively contribute to sustainable socio-economic development of the local community and society at large, including its employees and their families, so as to improve the quality of life and to raise the Human Development Index in the State.



1.2.1 RVUN is a socially committed organization and a responsible corporate citizen. It attaches great importance to discharging its social responsibilities to the community and Society of the area where the Power Projects are being taken up. 1.2.2 Most of RVUNs projects are located in remote areas. RVUN acquires land for its projects, which may relocate people or affect their livelihood. As a responsible corporate citizen, it aims to restore the livelihood of the people, provide adequate compensation and to undertake the development works in the Project Affected Area for the upliftment of Project Affected Persons (PAPs). 1.2.3 The present installed generating capacity under RVUN is 4097 MW and it has an ambitious plan of addition of around 9600 MW power generating capacity by 2016-17. The Nigam will take up community development activities for new power projects as well as for existing Power Stations in operation.

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Title & Operation 2.1 This Policy shall be known as Responsibility (CSR) Policy of Utpadan Nigam Limited (RVUN). the Corporate Social Rajasthan Rajya Vidyut


The Policy will come into operation with effect from the Date of the approval of policy by Government of Rajasthan and will remain in force until superseded by another Policy. The Board of Directors of RVUN may review the Policy as and when deemed necessary.




3.1 Expressions used in the Policy would have meanings assigned to them as defined hereunder:-


CSRI Committee means Corporate Social Responsibility Implementation Committee (CSRI-Committee) which shall be formed for each Power Project / Station for the implementation of various works/ activities under the policy. EC means Environmental Clearance of the project to be issued by State Pollution Control Board and/or by the Ministry of Environment & Forests, Government of India and which is essential for development of the Project. of Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUN).


iii) Policy shall mean the Corporate Social Responsibility Policy iv) Project shall mean the Power Generation Project being set up by
RVUN or its subsidiary companies.


Project Affected Area (PAA) shall mean the area or village in which RVUNs power project / station exists and such projects / station meets its facilities/ requirements from that area or village. It may also be notified by the State Government through Official Gazette of Government of Rajasthan. who have been directly or indirectly adversely affected by displacement due to acquisition of land for RVUNs power project or for any other reason related with the RVUNs Projects / Power Stations.

vi) Project Affected Persons (PAPs) shall mean a person or persons

vii) RVUN means Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (A

Govt. of Rajasthan Undertaking).

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Aims & Objectives

The aims & objectives of this Policy are as under 4.1 4.2 Improving socioeconomic status of Project Affected Persons (PAPs). Providing opportunities for sustainable improvement in the fields of income generation, health, education, water & electricity, sanitation, communication and such other fields. To adopt a holistic approach to community development of Project Affected Areas and ensuring that the people of such areas improve or atleast regain their previous standards of living. Carrying out community development activities in a transparent and participative manner. Ensuring participation and consultation with the local public representatives and setting up of institutional mechanisms for carrying out CSR activities in Project Affected Areas.


4.4 4.5

5 Applicability 5.1 The policy shall be applicable to the Project Affected Persons (PAPs) and for the Project Affected Areas (PAAs) in respect of the existing Power Projects/ Stations of RVUN / its subsidiary companies which are in operation and the Power Projects under execution and to be developed in future by RVUN or its subsidiaries. Following power projects of RVUN/ it subsidiaries are in operation/ under execution:i. Power Stations in Operation
S. No. 1 2 3 4 5 6 NAME OF POWER STATION Kota Super Thermal Power Station Suratgarh Super Thermal Power Station Ramgarh Gas Thermal Power Station Giral Lignite Thermal Power Station Dholpur Gas Thermal Power Station Mahi Hydel Power Station CAPACITY 1240 MW 1500 MW 113.5 MW 250 MW 330 MW 140 MW PROJECT SITE Kota, Distt Kota Suratgarh, Distt Sriganganagar Ramgarh, Distt Jaisalmer Giral, Distt Barmer Dholpur, Distt Dholpur Banswara, Distt


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Banswara 7 Mini-Micro Hydel Power Stations (MMH) 23.85 MW at various locations in the Districts of Bikaner, Banswara, Baran, Sriganganagar, Chhabra, Distt Baran

Chhabra Thermal Power Project, Units 1 & 2 (2x250 MW)

500 MW

Total installed capacity


4097.35 MW

Ongoing / New Power Projects

NAME OF POWER STATION Kalisindh Thermal Project Unit-1 & 2 Chhabra Thermal Project Unit-3 & 4 Power Power CAPACITY Project Site Jhalawar, Jhalawar Chhabra, Baran Distt. Distt.

S. No. 1 2. 3.

2x600 MW 2x250 MW 160 MW

Ramgarh Gas Combined Cycle Project Stage-III (160 MW). Suratgarh Super Critical Project Units -7 & 8 Chhabra Super Critical Project Units -5 & 6 Dholpur Gas Combined Cycle Project Stage-II Kota Gas Combined Cycle Project Chhabra Gas Cycle Project Combined

Ramgarh, Distt Jaisalmer Suratgarh, Distt Sriganganagar Chhabra, Distt Baran Dholpur, Distt Dholpur Kota, Distt Kota Chhabra, Distt Baran Suratgarh, Distt Sriganganagar Jhalawar, Distt Jhalawar Banswara, Distt Banswara Ramgarh, Distt Jaisalmer To be decided in future

4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

2x660 MW 2x660 MW 3X110 MW 3x110 MW 3x110 MW 2x660 MW 2x660 MW 2x660 MW 160 MW -9610 MW

Suratgarh Super Critical Project Units -9 & 10 Kalisindh Super Critical Project Units 3 & 4 Banswara Super Project Units-1 & 2 Critical

Ramgarh Gas Combined Cycle Project Stage-IV Other future projects of the RVUNL. TOTAL

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6 Corporate Social Responsibility Activities 6.1 The list of the activities covered under CSR policy is purely suggestive in nature and any other activities may also be taken up as per the need(s) of the Project Affected Persons/ Project Affected Areas to be assessed at the Project level. The list of CSR activities will be as under: Education: with emphasis on Primary education, Girl education and Adult education; Drinking Water Supply: with emphasis on safe drinking water to villagers and other water related facilities; Electrification of Villages / Electrification of Public Places; Health care, such as Mobile clinics and Community health related services; Environment; Social Empowerment;

i) ii) iii) iv) v) vi)

vii) Infrastructure development, such as construction of anicuts, roads, community halls, school buildings, health centres, sanitation facilities, etc.; viii) Sport(s) and cultural activities; ix) x) xi) Generation of employment / Capacity building such as vocational training to local people; Grant/donation/financial assistance/sponsorship to the reputed NGOs/societies/Local agencies involved in social development works; Works related for preservation of heritage sites in the Project Affected Area;

xii) Empowerment of women for education, health & self employment; xiii) Providing relief to victims of Natural Calamities like Earth Quake, Cyclone, Drought & Flood situation etc; xiv) Distribution of efficient Chula(s) to the villagers; xv) Adoption of village(s) for overall development; xvi) Any other development works suggested by local Gram Panchyats/ Panchayat Samities/ District Administration / CSRI Committee; xvii) All works for creating community assets; The detailed list of activities which may be taken up under some of the aforesaid categories is enclosed as Annexure-I. All activities under the Policy should be environment friendly and for the benefit of the local people and society at large.
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7 Allocation of Funds 7.1 For new/extension projects involving capital expenditure:

7.1.1 The allocation of fund for carrying out CSR activities under this Policy for new/ extension projects of RVUN will be as follows -

i) ii) iii) iv)


For new / extension Coal based Thermal Projects on Supercritical Technology, @ Rs. 2.5 lacs per MW (one time) of Project Installed / Planned Capacity. For new / extension Coal based Thermal Projects on Sub-critical Technology, @ Rs. 2.0 lacs per MW (one time) of Project Installed / Planned Capacity. For new / extension Gas based Thermal Projects, @ Rs. 1.50 lacs per MW (one time) of Project Installed / Planned Capacity. For Hydel & other projects e.g. mining projects etc., @ 0.4 % of initial project cost (one time).

The Board of Directors of RVUN will make allocation of funds for new / extension projects as per Clause 7.1 from the approved cost of the Project. These funds shall be utilized during the execution period of the Project. The annual allocation of funds from the total budget allocation for CSR activities will be made by the Chairman & Managing Director, RVUN in consultation with Director, Finance. This expenditure shall be booked in the cost of the Project under Chargeable Head: CSR Development works. For Power Stations in operation:



7.2.1 For the Power Stations in operation, annual allocation of funds for carrying out CSR activities will be 0.25% of the total annual Operation & Maintenance charges/ cost allowed by Rajasthan Electricity Regulatory Commission (RERC). 7.2.2 These funds will be utilized for undertaking new capital works as well as for carrying out maintenance of assets created under CSR activities. The annual allocation made for CSR activities will be adjusted within the overall Operation & Maintenance charges allowed by RERC. 7.2.3 The annual allocation of fund for CSR activities for each station in operation shall be made by Chairman & Managing Director, RVUN in consultation with Director Finance, RVUN as per Clause 7.2.1 and 7.2.2. Note: The projects under execution shall be considered in operation, w.e.f. the date of declaration of their Commercial Operation (COD).
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Implementation Methodology

8.1 For the implementation of various activities/ works under the Policy, a CSR Implementation Committee (CSRI-Committee) will be formed for each Power Project/ Station. The Committee will comprise of the following Officers of State Government & RVUN and representative(s) of local bodies 1. 2. 3. 4. 5. 6. 7. 8. 9. Collector of the concerned District - Head & Chairman. Chief Executive Officer Zila Parishad Member. Chief Engineer / Project Chief of RVUN - Member Secretary. Project CAO / Head of Accounts wing Member & Treasurer. SDM of the concerned area Member. MLA of the concerned area Member. Pradhan of the concerned Panchayat Samiti Member. BDO of the concerned Panchayat Samiti Member. Highest officer of PWD, Irrigation, PHED, Discoms and other executing agencies of the Distt. where the Project is located Member.

9 9.1

Powers to sanction the expenditure on CSR Activities For new/extension Projects:

9.1.1 Based on the overall budget allocation for CSR activities/ works as per Clause 7.1.1, the CSR Implementation Committee (CSRI- Committee) will prepare the Action Plan identifying the CSR activities/works as per Clause 6 of this Policy along with budget allocation for each activity/ work. The CSRI Committee will also finalize the time schedule for completion of each identified activity/ work. These activities shall be carried out over the project execution period. 9.1.2 The Action Plan prepared by the CSRI Committee, as per Clause 9.1.1 of the Policy, will be considered and approved by the Board of Directors of RVUN. 9.1.3 The concerned Chief Engineer/ In-charge of the Power Station/ Project will issue the administrative & financial sanction for individual activities/ works, as per the approved Action Plan. 9.1.4 The annual allocation of funds for CSR activities for each financial year shall be made by the Chairman & MD, RVUN as per Clause 7.1.3. The CSRI Committee will restrict the annual expenditure on CSR activities within the funds allocated by RVUN. 9.1.5 In case of increase in the cost of a particular CSR activity/ work over the approved cost, revised sanction will be issued by the concerned Chief Engineer/ In-charge of the Power Station/ Project, after approval of CSRI Committee and the Board of Directors of RVUN.

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For Power Stations in Operation:

9.2.1 Based on the total available funds, the CSR Implementation Committee (CSRI- Committee) will prepare annual Action Plan of the CSR activities/ works as per Clause 6 of the Policy alongwith budget allocation for each activity/ work. The CSRI Committee will work out the available funds for CSR activities taking into account the annual allocation of funds as per Clause 7.2.3, the unutilized allocation of previous years and the accrued interest income, if any. 9.2.2 The annual Action Plan shall be prepared and finalized by the CSRI Committee. 9.2.3 The concerned Chief Engineer/ In-charge of the Power Station will issue the administrative & financial sanction for individual activities/ works, as per the approved Action Plan. 10 10.1 Execution of the CSR Works The CSRI Committee will identify the executing agency for CSR activities/ works. Government agencies such as Public Works Department (PWD), Irrigation Department, Public Health Engineering Department (PHED), Power Distribution Companies of the State, Panchayat Raj Institutions / Local bodies, Education Department, etc. shall generally be engaged to execute these CSR activities/ works. These agencies shall follow the relevant Rules/ Regulations/ Delegation of Powers issued by the respective departments in respect of Deposit Works. The CSRI Committee will also decide the modalities, payment procedure and verification process, etc. for issuing grants/ donations/ financial assistance/ sponsorship to reputed Non-Government Organizations (NGOs)/ societies/ Local agencies engaged in similar social development works. The CSRI Committee shall restrict the total amount of such grants, donations, etc. under Clause 10.2 to a maximum of 10% of the total allocation to CSR activities/ works as per Clauses 7.1.1 and/ or 7.2.1, as the case may be. Separate Bank Account & Maintaining the Accounts A separate Bank Account shall be opened & maintained for deposit of funds allocated for CSR activities/ works under the Policy. Interest accruing in such Bank Account will also be utilized for CSR activities/ works. The concerned CAO/ Head of Accounts wing shall be one of the Authorized Signatories for operating the Bank Account. The Chief Accounts Officer / Head of Accounts wing of the concerned Power Station / Project shall be responsible for maintaining the accounts of the CSR activity which shall be audited as per provisions of the applicable laws/ Rules.



11 11.1


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12 12.1

Monitoring the Progress of CSR activities The CSRI Committee shall regularly monitor the progress of the various CSR activities/ works undertaken by it. A periodical status report on the progress of CSR activities shall be furnished by the concerned Chief Engineer/ In-Charge of Project/ Power Station to the Chairman & MD, RVUN. The Annual Progress Report and Annual Audited Expenditure approved by the CSRI Committee shall be placed before the Board of Directors of RVUN. Utilization Certificate A Budget utilization certificate shall be submitted by the respective executing agencies to the concerned Project Accounts authorities every financial year and on completion of a particular activity/ work. The consolidated yearly utilization certificates shall also be furnished by the concerned Chief Engineer/ Project Chief to Director (Finance), RVUN, during the 1st Quarter of succeeding financial year.




Ownership of assets Ownership of the assets developed under CSR Policy would vest in the concerned Government Departments/ Panchayats. Upkeep & Maintenance of these assets shall be the responsibility of the concerned Departments / Panchayats.


Power to issue clarifications RVUN shall have the power to issue any clarifications on the various provisions of this CSR Policy, from time to time.


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Annexure I Suggestive CSR activities/ works under some of the fields stated at Clause-6 of Corporate Social Responsibility Policy of RVUN. (i) Education Education by providing financial assistance to Primary, Middle and Higher Secondary Schools. Support for development of Technical/ Vocational Institutions. Counselling of villagers to encourage their children for education and Conduct awareness programmes for promotion of girl education. Special attention on education, training and rehabilitation of Project Affected People Providing Scholarships to the poor and meritorious students of the schools in the Project Affected Areas. Promotion of Professional Education by sponsoring needy students for ITI/ Diploma courses. Providing cycles to needy students who are attending school in remote and distant areas. (ii) Drinking Water Supply

Construction of water harvesting structures, Anicuts, Check dams, etc. for the benefit of Project Affected Areas. Providing drinking water to remote villages through water tankers. Providing water taps to villagers to full fill their daily need of water wherever the pipe line is laid for of water supply. Installation/ Repair of Hand Pumps/ Tube wells. Creating awareness towards proper utilization of waste water after treatment. Restoration, development/ construction of Water Tanks/ ponds. Rain water-harvesting scheme in Power Plant and Township/ colony area. (iii) Health Care

Organizing Mobile Clinics/ medical camps in the villages of Project Affected Areas. Organizing general awareness camp for the surrounding villages to make the people realize the harmful effects of social evils like smoking, alcohol, drug abuse etc. Providing support to community Health Centres in Project affected areas.
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Conduct Aids awareness programmes in Project affected areas. (iv) Environment

Organizing sensitizing programmes on Environment Management and Pollution Control. Green belt Development. Create awareness for adoption of environmental friendly technologies in everyday life. Supply of fly ash free of cost to brick manufactures in the Project affected areas, keeping in view the applicable rules/ regulations. Providing financial support to establish fly ash brick manufacturing facilities. Assistance in development of jobs related to Dairy/ Poultry/ farming and others products. Undertake or support afforestation, social forestry. (v) Social Empowerment

Support for providing training to rural youth for Self Employment such as Fitter, Welding, Fabrication, Electrician etc. Organizing training programmes for women in tailoring, embroidery, designs, home foods, pickles, painting, interior decoration and other such vocational Courses.


Sports and Culture

Promotion of sports activities in nearby villages by conducting tournaments in sports such as Football, Kabaddi, Khokho, etc. Providing sports materials for Football, Volleyball, Hockey sticks etc to the young and talented villagers. Sponsorship of Sports event in the Project affected areas. Organizing Cultural event to restore Indian Cultural Tradition and Values. Support for development of play grounds in Project affected areas.

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(vii) Infrastructural development Construction / repairs of community halls, Panchayat Ghar, school buildings, health centres etc. Providing Street lighting. Providing furniture & equipments to educational institutions. Development of public utilities and sanitation facilities. Tree plantation including fruits trees. Construction of public cremation ground /burial grounds. Creating common grazing land/ small distributaries for irrigation. Development of shopping complex & Kiosk in its township. -----

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