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Strategic CSR

Identify Social
Issues to
target
1
Make Business
Case
2
Track progress
3
Measure results and use
insights to unlock new value
4
Business
Strategy
Social
Issues
Identify Intersections
Measuring Shared Value
Creating
Shared Value
Enabling
Local Cluster
Development
Redefining
Productivity
in Value
Chain
Reconceiving
Products and
Markets
Creating and Measuring
Shared Value
Companies Act, 2013
Eradicating extreme
hunger and poverty
Promotion of education
Promoting gender
equality and
empowering women
Reducing child mortality
and improving maternal
health
Combating human
immunodeficiency virus,
acquired immune
deficiency syndrome,
malaria and other
diseases
Ensuring environmental
sustainability

Employment enhancing
vocational skills
Social business projects
Contribution to the
prime minister's national
relief fund or any other
ACTIVITIES
…Ensure that the company
spends, in every financial
year, at least two per cent.
Of the average net profits of
the company made during
the three immediately
preceding financial years, in
pursuance of its corporate
social responsibility policy
2% Profits
Help in the long-run
Godrej ChotuKool
Disruptive Innovation
Sustainable
Competitive
Advantage
Rural
Appeal
High-Market
Penetration
Patents
Cost Leader
ITC E-Choupal
• Problems in Indian Agriculture
– Fragmented Farms, Weak Infrastructure, Numerous
Intermediaries
Low Risk
Taking
Ability
Low
Investment
Low
Productivity
Weak Market
Orientation
Low Value
Addition
Low Margin
The Value Chain
Farm to Factory Gate
• Access ready information in
their local language on the
weather & market
• Information Based decision
making
• Direct Marketing Channel
• Reduces Transaction cost
Creating Shared Value
Farmers Value for ITC
• Lower net cost of
procurement
• Eliminate Costs that do not
add value to the supply
chain
Value for the Society
• Higher Productivity
• Higher Income hence Higher
Purchasing power
• Latent demand for industrial
Goods
Reconceiving products
and market: How targeting
unmet needs drives incremental
revenue and profits
• Increase revenue
• Increased market share
• Increased market growth
• Improved profitability
• Improved health care
• Reduced carbon footprint
• Improved nutrition
• Improved education
Redefining productivity
in value chain: How better
management of internal
operations increases productivity
and reduces risks
• Improved productivity
• Reduced logistical and
operational costs
• Secured supply
• Improved quality
• Improved profitability
• Reduced energy use
• Reduced water use
• Reduced raw materials
• Improved job skills
• Improved employee
income
Enabling local cluster
development: How changing
societal conditions outside the
company unleashes new growth
and productivity gains
• Reduced costs
• Secured supply
• Improved distribution
infrastructure
• Improved workforce access
• Improved profitability
• Improved education
• Improved job creation
• Improved health
• Improved incomes
Levels of Shared Value
Business Results Social Results
Benefits of Shared Value
Reconceiving products
and market: How targeting
unmet needs drives incremental
revenue and profits
• Increase revenue
• Increased market share
• Increased market growth
• Improved profitability
• Improved health care
• Reduced carbon footprint
• Improved nutrition
• Improved education
Redefining productivity
in value chain: How better
management of internal
operations increases productivity
and reduces risks
• Improved productivity
• Reduced logistical and
operational costs
• Secured supply
• Improved quality
• Improved profitability
• Reduced energy use
• Reduced water use
• Reduced raw materials
• Improved job skills
• Improved employee
income
Enabling local cluster
development: How changing
societal conditions outside the
company unleashes new growth
and productivity gains
• Reduced costs
• Secured supply
• Improved distribution
infrastructure
• Improved workforce access
• Improved profitability
• Improved education
• Improved job creation
• Improved health
• Improved incomes
Levels of Shared Value
Business Results Social Results
Benefits of Shared Value
Reconceiving products
and market: How targeting
unmet needs drives incremental
revenue and profits
• Increase revenue
• Increased market share
• Increased market growth
• Improved profitability
• Improved health care
• Reduced carbon footprint
• Improved nutrition
• Improved education
Redefining productivity
in value chain: How better
management of internal
operations increases productivity
and reduces risks
• Improved productivity
• Reduced logistical and
operational costs
• Secured supply
• Improved quality
• Improved profitability
• Reduced energy use
• Reduced water use
• Reduced raw materials
• Improved job skills
• Improved employee
income
Enabling local cluster
development: How changing
societal conditions outside the
company unleashes new growth
and productivity gains
• Reduced costs
• Secured supply
• Improved distribution
infrastructure
• Improved workforce access
• Improved profitability
• Improved education
• Improved job creation
• Improved health
• Improved incomes
Levels of Shared Value
Business Results Social Results
Benefits of Shared Value
 2000, Nalgonda, A.P
 HUL partnered with three self-help groups
 Women members appointed as “Shakti Ammas” in chosen villages
 Extensive training
 Money from self-help groups to purchase HUL products  sold in their
villages.
Fortune At The Bottom Of The Pyramid
By 2011 
• Employment to 45,000 women
Covered 100,000 Indian villages
• Reached 3 million households

HUL Reach 
HUL sales approached $100
million through the project
New rural
distribution
system
Health & living
stand.
improvements
Increased
brand
loyalty
Support for rural
entrepreneurship
Education &
Training
Corporate
reputation,
education
$ 100 million
worth sales
Employment
for 45000
women
TIME FRAME
Long Term
Short Term
Tangible Intangible
ABILITY TO QUANTIFY
PROJECT SHAKTI: CLEAR AND POWERFUL SHORT TERM BENEFITS
The Moga Story
MOGA, Then 
• Severe poverty
• No electricity, transportation, telephones, and medical care
• 60% calves died
• Less than 5 acres of infertile land per farmer
Nestle’s Value Chain  local sources of milk from large, diversified base of small farmers
Creating Shared Value 
• build refrigerated diaries as collection points
• Transportation routes
• Medicine and nutritional supplements
• Monthly agricultural training sessions.
• Financing and technical assistance
MOGA, Now 
• 90% of homes have electricity
• Most have telephones
• 5 times the number of doctors
• Prim. schools + Sec. schools
The Nestle Advantage !
stable supply of high-
quality commodities
without paying middle
man
Analysis of land acquisitions: Some lessons
Raghu Ram Tata & Ram Kumar Kakani
XLRI Jamshedpur
India: Land availability
Geographical area: 329 million ha


Population: 1.17 billion (2009)

Population density: 355 persons / km
2

Year  1951 2001 2051

Per capita land availability: 0.89 ha 0.3 ha 0.2 ha

Per capita agriculture land: 0.48 ha 0.14 ha ???
15
Impact of land use changes
• Environmental: Major reductions in ecosystem
service flows:
– Water scarcity / water quality depletion
– Accelerated soil erosion + Agri. productivity loss
– Accelerated biodiversity loss etc.
• Social
– Involuntary displacement of people
– Loss of livelihoods
– Social deprivation
• Economic
– Pareto Optimality condition compromised
– Highly skewed benefit sharing model
– Displaced people end up worse off than before





16
Widespread Social Uprising Against Land Acquisitions
• Reasons for resistance have broadened over years
• Early 1970s: Environmental concerns
– Silent Valley dam project – threats to
biodiversity in rainforests – project abandoned
• Mid 80s into 1990s: Social concerns and social
impacts with strong environmental underpinnings
– Narmada Valley dam projects – environmental
refugees, poorly implemented R&R policies
– Implications to the project: Support withdrawn
by international financial institutions
• 1990s - ongoing: Demand for equitable benefit
sharing opportunities


17
Business implications
•Community resistance to land use changes / acquisitions is
on the rise
•Land acquisition delays account for 70% of 190 delayed
infrastructure projects; Stalled project value Rs 25 trillion
18
Indigenous communities
•Significant Influence
•Free, Prior, Informed consent a must
•Must be involved prior to project
development

Transient community
•Less Influence
•Consultation, not consent
•Can be approached simultaneously
with project development

Local Lobbies
•Can have strong influence
•Can influence media
•Consent not required but consultation
suggested

Non-Indigenous local communities
•Can have significant Influence
•Consent preferred
•Consultation must before project development

High influence Low influence
Social
Consent
Required
Consultation
preferred




Stakeholder Engagement Framework
(Refer: Ethical Funds Company, 2008)
19
Integrating Sustainable Development concepts into land
acquisitions will facilitate Free, Prior, Informed Consent
Environmental sustainability
Social wellbeing
Equitable benefit flows
to communities
Businesses gain social
consent to operate
Path to project implementation and
economic viability / sustainability of projects
20
Village Land to be
acquired (Acres)
Village 1 1067.56
2 628.59
3 754.46
4 333.42
5 269.87
6 191.03
Total 3244.93
6
8

5
6

7
3

2
6

1

4
2

2
6
6

1
3
1

1
4

9
3

1
2

1

2
5

2
7
6

1
3
6

9
6

8
5

5
7

5
6

6
8

4
9
8

3
6

2
0

2
8

1
1

0

6

1
0
1

0
100
200
300
400
500
600
Kopsinga Lankahuda Rupidihi Kerei Bhedabahal Kandabahal Total No of
Khatedar
ST SC OBC Others
Land Ownership profile
Total No. of Khatedars = 1141
455.84
(17%)
372.45
(13%)
1548.7
(57%)
355.56
(13%)
Land (ST)
Land (SC)
Land (OBC)
Land (Others)
Total private land = 2732.56 Acres
Village Private Land
R
e
v
e
n
u
e

F
o
r
e
s
t

G
o
c
h
a
r

Government land
A
g
r
i
c
u
l
t
u
r
e

S
e
t
t
l
e
m
e
n
t
s

R
o
a
d
/
R
a
s
t
a

P
a
t
h
a
r
/

C
h
a
t
t
a
n

N
a
l
l
a
h
/
p
o
n
d

B
a
r
r
e
n

l
a
n
d

T
o
t
a
l

G
r
a
n
d

T
o
t
a
l

Kerai 269.80 0 3.30 7.31 6.11 0 7.19 12.71 26.01 333.42
Kandabahal
(Plant)
126.17 0 0 0 0 0 0.46 0 0.46 126.63
Kandabahal
(Colony)
73.19 0 0 35.61 5.21 0 0 29.23 34.44 143.24
Rupidihi 417.22 94 18.63 36.07 15.61 2.78 0 44.28 62.67 628.59
Lankahuda 564.10 88 1.16 71.31 20.54 2.21 4.78 2.36 29.89 754.46
Kopsingha 784.43 127 45.79 48.60 20.64 0.38 1.65 39.07 61.74 1067.56
Bhedabahal 161.00 0.65 0 0.15 1.36 1.31 2.92 23.64 29.24 191.03
Total 2422.91 309.65 68.88 199.05 69.47 6.68 17.00 151.29 244.45 3244.93
61%
1%
0%
9%
4%
25%
A: Families losing all land including homestead land
B: Families losing more than 2/3rd of agricultural land and homestead land
C: Families losing more than 1/3rd of agricultural land and homestead land
D: Families losing only homestead land but not agricultural land
E: Families losing all agricultural land but not homestead land
F: Families losing part land
Village Extent of Revenue Forest to be
diverted (Acres)
Kirei 3.3
Kopsingha 45.79
Lankahuda 1.6
Rupidihi 18.63
Total 68.88
8
7
0
6
.
5

7
1
1
3
.
7

2
9
5
8
0
.
5

6
7
9
1
.
2

5
2
1
9
1
.
9

0
10000
20000
30000
40000
50000
60000
ST SC OBC Other Total Private
land
Compensation entitlement (Land ownership wise)
(Rs. Lakhs)
S.No Item Cost as proposed by
district administration
(Rs. Lakhs)
Cost as proposed by
PP (Rs.Lakhs)
1 Education 800.00
A Panchayat Samitee Science & Arts
Junior College (XI-XII) – Bedabahal
133.00
B Sundargarh Engineering College – Kirei 70.00
C Bhedabahal High School (Boys) – (VI-X) 57.00
D Bhedabahal High School (Girls) – (VI-X) 92.00
E Bhedabahal Primary School – (I-V) 51.00
F Tambibahal Primary School – (I-V) 27.00
G Kandabahal Upper Primary School – (I-
VII)
23.00
H Kirei Upper Primary School – (I-VIII) 217.00
I Panchayat High School Kirei – (VIII-X) 147.00
J Merit Scholarships to Students 920.00
Sub Total 800.00 1737.00
2 Vocational Education 200.00 200.00
3 Pre School Education 50.00 50.00
4 Drinking water facilities 200.00 200.00
5 Sanitation and Sewerage 750.00 750.00
6 Improvement of Public Health
Facilities
700.00 706.00
7 Irrigation facilities 100.00 100.00
8 Electrification 300.00 300.00
9 Environmental Protection 50.00 50.00
10 Livelihood Support 25.00 25.00
11 Individual Beneficiary Oriented
Activities
25.00 12.50
12 Construction of Orphanage 45.00
13 Construction of Old Age Home 105.00
14 Other (Provision of Roads, agricultural
extension work, for educational and
health facilities)
800.00 1619.50
Total 4000.00 5900.00
Illegal coal mining in Jharkhand
and control strategies
Tata L. Raghu Ram, Ph.D.
Strategic Management Area
XLRI Jamshedpur
Dr. Raghu Tata, XLRI Jamshedpur 29
Dr. Raghu Tata, XLRI Jamshedpur 30
Dr. Raghu Tata, XLRI Jamshedpur 31
Illegal mining – Global context
• Small scale, artisanal mining is a wide-spread
phenomenon in mineral rich developing world
• At least 13 million people in over 30 countries
engage in small-scale mining
• A further 80-100 million people depend on this
sector for their livelihood
• Employment in the formal mining sector has
declined – people’s dependence on informal
mining has increased manifold – International Labour Organisation
32 Dr. Raghu Tata, XLRI Jamshedpur
Background
• Concerned by the increasing incidence of
small scale, illegal coal mining activity in
Jharkhand, Department of Mines & Geology,
Government of Jharkhand has delegated this
study to XLRI Jamshedpur and Indian School
of Mines, Dhanbad
• XLRI is the coordinating partner
• CIL sponsored the study
33 Dr. Raghu Tata, XLRI Jamshedpur
Dr. Raghu Tata, XLRI Jamshedpur 34
ECL
CCL
BCCL
Survey Areas
Dr. Raghu Tata, XLRI Jamshedpur 35
Details of the sample survey
Total BCCL CCL ECL
Villages 85 24 56 5
Individuals 1009 309 538 162
Individuals Cutters Lifters Transporters
221 428 680
.

Dr. Raghu Tata, XLRI Jamshedpur 36
Variables/issues captured
Socio-Economic profiles
•Landholding, employment,
income from illegal mining, other
income, assets, expenditure
Demographic profiles
•Age, family size, caste/ethnicity,
education etc
Views/suggestions on mitigation
options
• Views on Village Cooperatives
• Apprehensions / reservations
•Hurdles / conflicts

Level I
•Individuals
•Coal cutters, lifters,
Cyclewallahs
Level II
•Village level survey
Level III
•Literature survey
•Discussions with coal
company officials
Village survey results
Dr. Raghu Tata, XLRI Jamshedpur 37
Access to markets and infrastructure facilities
BCCL CCL ECL
Number of villages surveyed 24 56 5
Average distance to pucca road (km) 1.35 2.4 0.6
Average distance to nearest town (km) 5.0 17.6 10.8
Average distance to railway station (km) 2.1 15.2 25
Average distance to bus stop (km) 4.91 11.5 3.2
Average distance to PHC (km) 4.9 10.3 21
Average distance to weekly market (km) 2.5 4.2 2
Dr. Raghu Tata, XLRI Jamshedpur 38
Access to water, electricity & education
BCCL CCL ECL
Number of villages surveyed 24 56 5
Main source of drinking water (No. of villages)
o Well 10 41 5
o Tube-well 3 19 2
o Tap 8 4 1
o Pond 3 6 0
o River / Stream 4 6 0
Location of drinking water source (No. of villages)
o Within village 14 44 3
o Outside village 10 12 2
No. of villages with Sewage facility 8 4 1
Electrified villages 24 43 5
Education facilities (No. of villages)
o Villages with primary school (5
th
standard) 14 48 1
o Villages with secondary school (7
th
standard) 7 2 1
o Villages with high school (10
th
) and college 0 0 0
Dr. Raghu Tata, XLRI Jamshedpur 39
0.41
1.02
2.29
1.36
94.9
0
10
20
30
40
50
60
70
80
90
100
>10
acres
5-10
acres
3-5
acres
1-3
acres
Landless
Landholding in BCCL area
% of households
1.58
2.06
7.4
37.62
51.32
0
10
20
30
40
50
60
>10
acres
5-10
acres
3-5
acres
1-3
acres
Landless
CCL area
% of households
1.21 1.52
7 6.1
84
0
50
100
>10 acres 5-10
acres
3-5 acres 1-3 acres Landless
ECL area
% of households
Dr. Raghu Tata, XLRI Jamshedpur 40
0.1
2
8
18
19
53
0
10
20
30
40
50
60
Major occupation of households in
BCCL area
% of households
0.1
2
9
14
21
54
0
10
20
30
40
50
60
Major occupation of households in
CCL area
% of households
1
2
4
17
22
54
0
10
20
30
40
50
60
Service Migrant labourDaily wager AgricultureCoal companyIllegal coal
Major occupation of households in ECL area
% of households
Where does the illegal coal come from?
Dr. Raghu Tata, XLRI Jamshedpur 41
5 Important sources of illegal coal
Abandoned
mines
Overburden
dump sites
Coal
storage sites
Railway
sidings, coal
loading
areas
Operating
coal mines
Socio-economic profile of individuals
Dr. Raghu Tata, XLRI Jamshedpur 42
Salient features of individuals involved in coal supply chain
Parameter Minimum Maximum Mean
Std.
Deviation
Age 10 70 30 9.012
Involved in coal supply chain (years) 1 63 9 6.988
Education (years in school) 0 15 3.5 3.965
No. of household members 0 40 4.6 2.072
o No of persons collect coal / HH
0 6 .94 .858
o No. of persons transport coal / HH
0 4 .78 .565
Number of earning members/family 1 10 1.4 .799
Monthly household income (Rs.) 500 12000 2367 1403.264
Monthly household expenditure (Rs.) 400 8000 1802 987.462
Debt burden per household (Rs.) (for 196
individuals)
300 90000 11115 7114.919



Dr. Raghu Tata, XLRI Jamshedpur 43
Salient features of individuals involved in coal supply chain
Number of days spent in coal supply chain
activities (days / year)
7 365 186 73.304
o Number of days involved in coal transport
in last month
0 30 16 6.318
Time spent on coal supply chain activities per
day (hours)
1 16 5 2.987
o Income from coal supply chain activities
per day (Rs.)
20 770 131 97.833
Weight of coal cut/lifted / transported per day
(kg)
20 1500 139 105.282
Bribes paid per month (Rs.) 0 800 94 139.022
Amount spent per month on medicines (Rs).
(598 Individuals)
20 3000 109 186.351
Amount spent per month on alcohol (Rs.)
0 600 107 137.063
From income from illegal coal activity, what
percent is Spent on your family
0 100 75 13.161
Dr. Raghu Tata, XLRI Jamshedpur 44
6
7
8

(
6
7
.
2
)

1
3
3

(
1
3
.
2
)

9
0

(
8
.
9
)

4
6

(
4
.
6
)

3
5

(
3
.
5
)

5

(
0
.
5
)

1
8

(
1
.
8
)

4

(
0
.
5
)

Landless Upto 0.5
acres
0.5-1
acres
1-2 acres 2-3 acres 3-4 acres 4-6 acres > 6 acres
Landholding - All individuals
N = 1009
Figures in parenthesies are as % of total
Dr. Raghu Tata, XLRI Jamshedpur 45
46.90%
9.80%
19.90% 20%
3.40%
Illiterate upto 3 years Upto 7 years Upto 10 years > 10 years
Education profile of all individuals
N = 1009
Dr. Raghu Tata, XLRI Jamshedpur 46
1 = 24%
2=12%
3=64%
Overall caste profile in study area
1= ST; 2 = SC; 3 = OBC + others
Dr. Raghu Tata, XLRI Jamshedpur 47
6.10%
33.20%
40.90%
18%
1.70%
Upto 18 years 18-25 25-35 35-50 >50
Age profile - All individuals
n = 1009
Dr. Raghu Tata, XLRI Jamshedpur 48
8.20%
22.90%
35.00%
34.30%
upto 90 days 91-150 days 151-210 days >210 days
No. of days involved in coal activity / year
n = 1009
Dr. Raghu Tata, XLRI Jamshedpur 49
18.20%
35.20%
20.30%
19.50%
6.80%
upto 2 hrs 2-4 hrs 4-6 hrs 6-8 hrs > 8 hrs
Time spent per day - All individuals
N = 1009
Dr. Raghu Tata, XLRI Jamshedpur 50
17.20%
35.10%
20.60%
10.70%
5.50%
10.90%
upto 50 kg 50-100 kg 101-150 kg 151-200 kg 201-250 kg > 250 kg
Coal collected / transported per day
N = 1009
Dr. Raghu Tata, XLRI Jamshedpur 51
9.10%
58.20%
10% 10.20%
2.20%
10.30%
upto Rs.50 Rs. 50-100 Rs. 101-
150
Rs. 151-
200
Rs. 201-
250
> R. 250
Income per day - All
N = 1009
Dr. Raghu Tata, XLRI Jamshedpur 52
223 (22.1%)
240 (23.8%)
214 (21.3%)
195 (19.4%)
80 (7.9%)
38 (3.8%)
11 (1.1%)
6 (0.6%)
upto 10 10.1-15 15.1-20 20.1-30 30.1-40 40.1-50 50.1-80 >80
Per capita income / day (Rs.)
Dr. Raghu Tata, XLRI Jamshedpur 53
2
8

(
2
.
8
%
)

3
8

(
3
.
8
%
)

5
4

(
5
.
4
%
)

6
0

(
5
.
9
%
)

9
6

(
9
.
5
%
)

8
1

(
8
%
)

7
0

(
6
.
9
%
)

8
8

(
8
.
7
%
)

6
0

(
5
.
9
%
)

4
3
2

(
4
3
%
)
Contribution of coal income to annual household
income (%)
Dr. Raghu Tata, XLRI Jamshedpur 54
Drivers of Illegal
coal supply chain
-Landlessness
-Marginal landholding
-Dependence on illegal
coal for sustenance
-Illiteracy
-Low literacy levels
Debt burden
Lack of alternate
employment
opportunities
-Poor enforcement of legal
provisions by coal companies /
Police
-Bribe seeking
Coercion by middlemen /
coal mafia
-Market demand for illegal
coal
oHouseholds in towns/cities
oHotels / dhabas
oIndustry / brick kilns etc.
Easy availability of coal
for exploitation
Better economic returns
from illegal coal than
from other opportunities
Small-scale coal supply chain
economics
Magnitude: 1.37 million tons of illegal coal / year
• The minimum cost to CIL and its subsidiaries on account of
small scale coal supply chains to Rs.106 crore
– Rs.73.8 crore/year on account of coal extraction
– Rs.32.5 crore / year profit foregone
• Jharkhand State loses about Rs.34 crore per year on royalty

Dr. Raghu Tata, XLRI Jamshedpur 55
Dr. Raghu Tata, XLRI Jamshedpur 56
Illegal coal control
strategies
Socio-economic
development initiatives
in coal tracts
Create alternate
employment
opportunities
Institutional
arrangements for
community development
and participation
Demand side
management initiatives
Ensure community
participation
Law enforcement and
other controls
Socio-economic development strategies
– medium and long term strategies
• Improve access to education
• Creating micro / lift irrigation facilities
• Improve access to drinking water, sanitation and health care
• Create access to markets
– Create “special purpose funds”
– Implement in mission mode with measurable output targets
– MDGs as targets
– Target villages in a 5-10 km radius of leasehold areas
– Strengthen, expand or modify Corporate Social Responsibility /
Corporate Citizenship initiatives

Dr. Raghu Tata, XLRI Jamshedpur 57
Institutional arrangements for community
development and participation
• Village cooperatives
– Co-operatives as “coal cooperatives”:
– Co-operatives as service providers
– Co-operatives as shareholders
– Co-operatives as mining companies
• Acknowledge communities as important
stakeholders
• Create awareness on cooperative culture
• Gain Social license to operate through proactive
initiatives

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Create alternate employment opportunities
• Encourage and support Micro enterprises
– Land reclamation, afforestation,
– Revive natural resource base (CPRs - village ponds, grazing lands,
forests) to enhance income generation / livelihood opportunities for
village communities.
– Encourage pisiculture, dairy based industries; poultry farms etc.
through village cooperatives and provide necessary training and
inputs.
– Out-source vehicle requirements to cooperatives
– Create women’s self help groups in all villages and help them to
engage in cottage industries and other economic activities.
– Identify entrepreneurial opportunities in these villages and provide
micro-finance through village cooperatives.

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Demand side management
• Households
– Increase access to cleaner fuels
– Awareness campaigns
– Partner with MNES
• Hotels and dhabas
– punishable offence with progressive fines and quick legal action
– Provide access to alternative energy sources
• Brick-kilns, factories etc
– Energy audits
– Easy coal linkages
– Cancel license to operate if using illegal coal
– Collaborate with PCB, Inspector of factories etc
– Create public pressure

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Law enforcement and other measures
• Primary target groups should be the large
demand drivers like factories, brick kilns etc.
• Provide alternative energy to small
hotels/dhabas and households
• Strengthen and reinforce internal security
systems to control coal pilferage
• Deal with communities with caution
– strong measures could only lead to social unrest
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• Ensure community participation
– “Mineral development can bring benefits to the local
level. However, the relationship between mining
companies and local communities has a legacy of abuse
and mistrust.
» The High Powered Committee of Planning Commission on
National Mineral Policy, 2006
– CIL and subsidiaries have an exciting challenge on their
hands.
• The challenge is to provide coal for nation building
and also to fully integrate sustainable community
development into its operational goals.
• For this to happen, coal companies will have to engage
local communities in each of the decision making,
implementation and benefit sharing steps.
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Conclusion
• Illegal coal supply chain is deeply embedded into
the social fabric of coal bearing tracts.
• Governments view this as illegal
• Communities view it as an assertion of their rights
over natural resources.
• As the problem has broad based socio-economics as
primary drivers, only a broad spectrum of bold
initiatives can comprehensively address it.
• Strong political will, social commitment on part of
CIL and sincere implementation of suggested
strategies is required
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