Energy conservation and efficiencyCombating climate changeCarbon Footprint reductionGreen BuildingsSustainability Report 2010-11Powering a Greener TomorrowBombay House 24,Homi Mody Street, Mumbai 400 001Tel : 91 22 6665 8282 Fax : 91 22 6665 8801www.tatapower.comFor graphical representation only.Not to scale.EXISTING OPERATIONSMumbai, Maharashtra(Trombay - 1,330 MW + Unit 8 - 250 MW + Hydro - 447 MW)Jojobera, JharkhandPower House # 6, JamshedpurBelgaum, KarnatakaHaldia,West BengalSupa, MaharashtraKhandke, MaharashtraBramanvel, MaharashtraGadag, KarnatakaSamana, GujaratSadawaghapur, MaharashtraVisapur, MaharashtraNDPL (Distribution)Powerlinks (Tala Transmission)JojoberaMulshi, Maharashtra (Solar)PROJECTS UNDER IMPLEMENTATIONThermal ProjectsRenewablesHydro ProjectMundra, GujaratMaithon, JharkhandLodhivaliPoolawadi, Tamil Nadu (Wind)Agaswadi, Maharashtra (Wind)BhutanTHERMAL POWERHYDRO POWERWIND POWERTRANSMISSION BUSINESSDISTRIBUTION BUSINESSSTRATEGIC ELECTRONICS DIVISIONEXISTING OPERATIONS PROJECTS UNDERIMPLEMENTATIONHYDRO POWERTHERMAL POWERWIND POWERSOLARDelhiMundraSamanaBhutanMaithonJojobera/JamshedpurHaldiaMumbaiTrombay

LodhivaliBhivpuriKhopoliSupaKhandkeMulshiPuneBhiraBengaluruBramanvelVisapur/SadawaghapurBelgaumGadagAgaswadiPoolawadi2,027 MW428 MW120MW81 MW120 MW17 MW50.4 MW11.25 MW50.4 MW50.4 MW17.5 MW10 MW1259 MW1200 KM120 MW3 MW4000 MW1050 MW40 MW97.5 MW21 MW114 MWReport on a minimum of 10Performance Indicators,including at least one fromeach of: social, economic,and environment.Report on a minimum of 20Performance Indicators,at least one from each of:economic, environment,human rights, labor, society,product responsibility.Respond on each core G3and Sector Supplement*indicator with due regard tothe materiality Principleby either: a) reporting on theindicator or b) explaining thereason for its omission.Report on:1.12.1-2.103.1-3.8, 3.10-3.124.1-4.4, 4.14-4.15

Report on all criteria listed forLevel C plus:1.23.9, 3.134.5-4.13, 4.16-4.17Same as requirementfor Level BNot Required Management ApproachDisclosures for eachIndicator CategoryManagement Approachdisclosed for eachIndicator CategoryReportApplication Level C C+ B B+ A A+Report Externally AssuredReport Externally AssuredReport Externally AssuredG3 ProfileDisclosuresOUTPUT OUTPUT OUTPUTStandard DisclosuresG3 PerformanceIndicators & SectorSupplementPerformanceIndicatorsG3 ManagementApproachDisclosures* Sector supplement in final versionFigure 1: Company Profile - Tata PowerFigure 2: Sources of Power GenerationFigure 3: Planned Capacity AdditionFigure 4: Matrix representing Level ofConcern for identified issuesby StakeholdersFigure 5: Tata Power SustainabilityModelFigure 6: Amount Spent onCommunity RelationActivitiesFigure 7: Tata Power CO2 Intensity(g/kWhr)Figure 8: CO2 Intensity of TrombayFigure 9: CO2 Intensity of JojoberaFigure 10: CO2 Intensity of BelgaumFigure 11: Tata Power overall ParticulateMatter (PM) emissionsFigure 12: Tata Power overall SO2emissionsFigure 13: Tata Power overall NOxemissionsFigure 14: Material Consumption atTrombayFigure 15: Coal Consumption atJojoberaFigure 16: Oil Consumption at BelgaumFigure 17: Heat Rate at TrombayFigure 18: Heat Rate at Belgaum

Figure 19: Heat Rate at JojoberaFigure 20: Auxiliary Consumption atTrombayFigure 21: Auxiliary Consumption atJojoberaFigure 22: Auxiliary Consumption atBelgaumFigure 23: Water Consumption atTrombayFigure 24: Water Consumption atJojoberaFigure 25: Water Consumption atBelgaumFigure 26: Ash Generated at TrombayList of FiguresFigure 27: Ash Generated at JojoberaFigure 28: Total Expenditure forPollution Abatement andMonitoringFigure 29: TotalWorkforce in thecompanyFigure 30: TotalWorkforce in thecompany By EmploymentTypeFigure 31: Employees by AgeFigure 32: Attrition Rate (%) FY11Figure 33: Age-wise Attrition FY11Figure 34: Job-wise and location-wise %Retirements FY11Figure 35: Frequency RateFigure 36: Distribution of Training Man -hours across various levelsFigure 37: Talent Identified in thecompany over the last5 yearsFigure 38: Community SatisfactionIndex (CSI) of Hydros of lasttwo yearsFigure 39: Tata Power Energy ClubActivitiesFigure 40: Initiatives to provide bestservices to the CustomersList of TablesTable 1: Net Energy Output FY11Table 2: Tata Power Board of DirectorsTable 3: Composition of the AuditCommitteeTable 4: Composition of theRemuneration CommitteeTable 5: Composition of theShareholders'/Investors'Grievance CommitteeTable 6: List of key sustainabilityissues identified by thecompanyTable 7: Financial Highlights of TataPower for five yearsTable 8: Investments made by TataPower (Figures in Rs. Billion)Table 9: Employee Long term Benefit

PlansTable 10: Staff ExpensesTable 11: Total CO2 Emissions of theCompanyTable 12: Raw materials usageTable 13: Direct and Indirect EnergyConsumptionTable 14: Average GenerationEfficiency of the Power PlantsTable 15: Water Consumption at allLocations (m3/MWhr)Table 16: TotalWater Usage (m3/MWh)Table 17: Waste Generated Across thelocationsTable 18: Tata Power�s accidentstatistics for FY11Table 19: Budget used for CR initiativesin FY 11Table 20: Total Number of CustomersIndexThe Managing Director�s Message on Sustainability 1Report Profile, Scope and Boundary 2Company Profile 4Corporate Governance 9Key influences, Risks and Opportunities 15Our Carbon Footprint 17Stakeholder Engagement 19Sustainability at Tata Power 24Economic Performance 28Environmental Performance 32Labour Practices and Human Rights 44Social Performance 52Product Responsibility 58Awards and Recognition 63GRI Content Index 66GRI Content Electric Utility Sector Supplement 88Assurance Letter 93Climate Change is a reality today. It not only affects theenvironment, but also has an impact on the economicand societal sustainability.We have realized that beinga power generating company, our operations alsocontribute towards it and hence, we have takenmeasures and will continue to take measures toaddress these aspects. There may be short-termdifficulties but we will excel in going beyondcompliance to address these issues and performbetterthan what is expected of us as per the applicableregulations. We are also looking at growing ourinternational footprint and believe that we will learnand inculcate sustainable experiences around theglobe.We are proud that we are India�s leading wind energyplayer and have a significant presence in solar energy.We have set-up the largest synchronized photo-voltaicpower generation system in the state of Maharashtraand we were the first to demonstrate a gridsynchronized roof-top photo-voltaic system at ouroffice in Mumbai.We are also putting up a geothermalproject in Indonesia.From focusing on producing clean and green power to

investing and implementing eco-friendlytechnologies; reducing our carbon footprint to joiningglobal initiatives to combat climate change; scoutingfor clean power sources internationally to drivingenergy conservation efficiency; creating sustainablelivelihood for communities to green buildings andvillages; we are doing all that we can to carry forwardour green legacy.In the subsequent sections of this document, we havedepicted our short term goals in projects. However, toachieve our strategic intent, we are committed toenvironment protection and conservation andgrowing responsibly.We know we have chosen a challenging path and welook forward to growing this organization as a�Leadingtorch�in the Sustainability virtue across all segments ofour eco-system.The Managing Director�sMessageonSustainabilityIn today�s age, Sustainability and 360-degree view oneco-system, environment is an imperative, if thebusiness has to grow and run without avoidableconflicts. Most of the organizations strive to excel ineconomic sustainability and growth, it is equallyessential that all facets related to environmentalconservation and commitment to social issues areadequately integrated with such growth agenda.For more than nine decades, Tata Power has beenguided by the vision that our founder Shri JamshetjiTata�s outlined in terms of clean and affordable powerfor the country. The urgency in meeting the powerrequirement and its crucial role in ensuring the energysecurity for India has led us to catapult our growth.We have a strategic intent to grow to 25 GW by 2017.However, we would like to grow in a manner that�ssustainable, by addressing all the three tiers ofsustainability - social, environment and economic andinculcate the aspect of �CARE� in all the activities thatwe undertake. Care for the environment, society,customer, and our own people, is our definition ofsustainable growth.We will be growing in generationsegment through thermal as well as renewableprojects. We are in the process of implementingprojects that would increase our current generatingcapacity by three fold in the short term and multi-foldin the long term goals. As our stakeholders have askedus to take a leadership role in technologydevelopment, we are working on multiple & differenttechnologies in the energy, power space and aim totake bold steps to implement some promising ones.List of AbbreviationsAEP: American Electric PowerAGM: Annual General MeetingAT & C: Aggregated Technical andCommercialBCCI: Bombay Chambers ofCommerce and IndustryBITS: Birla Institute of Technologyand ScienceBNHS: Bombay Natural History

SocietyBSC: Balanced ScorecardBRC: Business Review CommitteeCBIP: Central Board of Irrigation andPowerCCM: Customer CoordinationMeetingCEC: Chief Ethics CounsellorCSS: Customer satisfaction surveyCFT: Cross-functional teamCGPL: Coastal Gujarat Power LimitedCOP: Communication on ProgressCNI: Community Need IndexCTLC: Community TechnologyLearning CentreCSP: Corporate SustainabilityProtocolCSR: Corporate SocialResponsibilityCII: Confederation of IndianIndustryCITB: Construction Industry TrainingBoardCCX: Chicago Climate ExchangeCSO: Chief Sustainability OfficerCRS: Customer RequirementSurvey3C: Combat Climate ChangeCPP: Captive Power PlantDISCOM: Distribution CompanyDVC: Damodar Valley CorporationDG: Diesel GeneratorDM: De-MineralizationDSM: Demand Side ManagementGHG: Greenhouse GasesGIS: Geographic InformationSystemGoM: Government of MaharashtraGMI: Green Manufacturing IndexGRI: Global Reporting InitiativeHR: Human ResourcesIFC: International FinanceCorporationIPP: Independent Power ProducersILO: International LabourOrganisationILP: Industrial Liaison ProgramIREDA: Indian Renewable EnergyDevelopment Agency LimitedJV: Joint VentureJSA: Job Safety AnalysisKRA: Key Result AreasKV: KilovoltsL & L: Listening and learningLNG: Liquefied Natural GasMPL: Maithon Power LimitedMD: Managing DirectorMIT: Massachusetts Institute ofTechnologyMPCB: Maharashtra Pollution Control

BoardMU: Million UnitsMW: MegawattsNAPCC: National Action Plan forClimate ChangeNCD: Non-Convertible DebenturesNDPL: North Delhi Power LimitedNED: Non-Executive DirectorsNGO: Non-GovernmentOrganisationOBC: Other Backward ClassesODS: Ozone-Depleting SubstancesORC: Operation Review CommitteeOSHA: Occupational Health andSafety AdministrationPAT: Profit after TaxPCB: Polychorinated BiphenolsPMS: Performance ManagementSystemPPM: People Planning MeetingPSM: Process Safety ManagementPTW: Permit to WorkRCA: Root Cause AnalysisRMC: Ready-Mix ConcreteSAC: Sustainability AdvisoryCouncilSC: Scheduled CasteSH: StakeholderSCADA: Supervisory Control and DataAcquisitionSED: Strategic Electronic DivisionSES: Social Engagement ScorecardSMS: Safety Management SystemSPCB: State Pollution Control BoardST: Scheduled TribeTCoC: Tata Code of ConductTCS: Tata Consultancy ServicesTCVM Tata Customer ValueManagementTERI: The Energy Research InstituteTPTCL: Tata Power Trading CompanyLimitedUMPP: Ultra Mega Power ProjectUNGC: United Nations GlobalCompactUSA: United States of AmericaWBCSD: World Business Council forSustainable DevelopmentWREB: Western Regional ElectricityBoardTata Power Company Limited Sustainability Report 2010-11 1Tata Power Company Limited Sustainability Report 2010-11 3Tata Power had released its first CorporateSustainability Report based on G3 Guidelines of theGlobal Reporting Initiative (GRI) in 2008-09. It wasdecided that this report will be published every twoyears. This report covers the period betweenApril 1, 2010 and March 31, 2011. The applicable GRIprotocols were followed for reporting on core andadditional performance indicators.

ReportParametersThe process adopted for determining the contents ofthe report followed the core indicators of the G3guidelines. The reporting principles of transparency,materiality, completeness, sustainability context andstakeholder inclusiveness have been met whilepreparing the report.BoundaryoftheReportThe report covers dataandinformationonTataPower�sIndian operations of generation, transmission anddistribution of power. This includes six generatingstations, seventeen receiving stations in Mumbai andthe corporate office along with one Master CustomerCare section and eight bill collection centres. Data for70 of the 79 GRI performance indicators have beenincluded in the report. Also Sector based guidelines(EUSS) have been addressed in the report.Special-purpose vehicles such as Coastal GujaratPower Limited (CGPL), joint ventures such as NorthDelhi Power Limited (NDPL), Maithon Power Limitedand subsidiaries such as Tata Power Trading CompanyLimited are not included in this report. Tata Power hasnot reported on outsourced operations that are notcontrolled by it directly (for instance, thetransportation of raw materials).MethodologyThe economic indicators in this report cover thefinancial results of all the business units andcompanies that Tata Power owns on a consolidatedbasis.The data presented is based on actual monitoredvalues.The consumption and emission figures reported in theenvironment section are intensity based figures.Thesefigures reflect our growth and improvement overprevious years based on these specific parameters.Through the financial reports, Tata Power puts forth allthe information related to the company�sperformance, in terms of business volumes, costs,profits, specific action taken for performanceimprovement and initiatives to enhance stakeholdersatisfaction. Tata Power follows generally acceptedaccounting practices in India.Tata Power�s annual report has consolidated accounts,including those of its subsidiaries. The Internal Auditfunction in the company is headed by a Chief RiskOfficer and Internal Auditor, who reports significantaudit observations to the Audit Committee to ensureindependence of operations. The Internal AuditDepartment conducts audits of various departmentsbased on an annual audit plan. The planning andconduct of internal audits are oriented towards thereview of controls in the management of risks andopportunities in the company's activities.The Audit Committee comprises non-executivedirectors and meets periodically to review auditobservations and follow up on the implementation ofcorrective measures. The committee also meets TataPower�s statutory auditors to ascertain their views onthe adequacy of internal control systems. Thecommittee submits its reports to the company�s Board

of Directors.Tata Power has various management councils; theseoperate in areas such as human resources, regulation,quality, capital expenditure and corporate citizenship.The councils are entrusted with the responsibility ofreviewing the company�s performance in differentspheres, and establishing systems and processes toimprove performance.Tata Power�s operations are monitored, controlled andreviewed under the Balanced Score Card (BSC)framework, which includes factors such as financialand marketplace performance, internal processes,employee development, and environmental andsocial functioning. Reviews are conducted everymonth to identify opportunities for improvement.AssuranceThis Corporate Sustainability Report is assured by anindependent external agency.Questions pertaining to the content of the report shouldbe directed to:Dr. Avinash Patkar (Chief Sustainability Officer)Tata Power Corporate Centre, A-Block, 2nd floor34, Sant Tukaram Road, Carnac Bunder, Mumbai - 400009Email: apatkar@tatapower.comReport Profile,Scope andBoundaryTATA POWER IS INDIA�S LARGEST, MOSTRELIABLE, EFFICIENT AND INTEGRATED PRIVATEPOWER COMPANYCompanyProfileTata Power�s journey over the last nine decades hasbeen a fascinating saga of pioneering initiatives;responsible business practices that have minimalimpact on environment and initiating various socioeconomicchanges in our community. In our quest todeliver sustainable energy, we are spreading ourfootprint nationwide, setting new benchmarks foroperational efficiencies, investing in global resourcesand redefining paradigms. Our focus on buildinglasting and trusting relationships with our customers,partners and employees, and our legacy of caring forour communities, remains the bedrock of ourcontinued sustainability.Tata Power today has an installed generating capacityof 3120 MW and a presence across the entire valuechain in power generation (thermal, hydro, solar, windand geothermal) transmission, trading anddistribution. The Company has a great track record forits performance, customer care and has been afrontrunner in introducing state-of-art powertechnologies. The Company has successful public privatepartnerships in generation, transmission, anddistribution such as the NDPL with Delhi Vidyut Boardfor Distribution in North Delhi, Power linksTransmission Ltd. with Power Grid Corporation of IndiaLtd. For evacuation of power fromTala Hydro Project inBhutan to Delhi, and Maithon Power Ltd. withDamodar Valley Corporation for a 1050 MW Mega

Power Project. The company is in an exclusivepartnership agreement with SN Power, Norway tosetup joint ventures for developing hydropowerprojects in India and Nepal. The overall Companyprofile is schematically represented in Figure 1.An optimum mix of renewable and thermal capacityenables Tata Power to supply power at competitiverates to its customers. This is representedschematically in Figure 2.Tata Power has a customer base of over 150,000direct customers in Mumbai, and on an average120million units(MU)are sold annually.Super-Critical Power Plant, Mundra, GujaratTata Power Company Limited Sustainability Report 2010-11 5Figure 2: Sources of Power GenerationTotal Capacity - 3120MWWind9%Hydro14%ProductionGas8%Oil10%Gas/LNG18%Coal41%280.8MW436.8MW249.6MW312MW561.6MW1279.2MWSome of our bulk customers are BrihanmumbaiElectric Supply and Transport (BEST), Railways, PortTrust Authority, Mumbai Airports (Domestic andInternational), Bhaba Atomic Research Centre (BARC),Refineries and other important installations inMumbai.The company has about 1,802 circuit Kms. ofTransmission network in Mumbai operations area,comprising of 971 circuit Kms. of 220kV/110kVunderground cables which Trombay and the Hydrogenerating stations to 17 receiving stations spreadacross the Mumbai operations area.With transmissionand distribution losses at a mere 1.8 percent, thecompany is the best performer in India in this regard.Another significant quality it has is dependability. Atthe heart of the reliable supply thatTata Power assuresMumbai is the unique �islanding� system, thanks towhich the city enjoys uninterrupted supply of power(in case of a grid failure, the islanding system ensurespower supply within city limits).During FY11, net addition to manpower was 461people, primarily to enhance project execution skillsand build operations teams for upcoming powerplants, taking the total to 4,270. The Companyregistered sales of 16,060Million Units (MUs) of Power

in FY11.The Company�s partnership for distribution with theState Government of Delhi for its North Delhicustomers, North Delhi Power Limited (NDPL) is theonly success story of privatisation in the power sectorin India. This company serves over 1 million customers(from a population of 4.5 million) spread over an area of510sq. kmsandhas a peak load of1050MW.Figure 1: Company Profile - Tata PowerInvestmentsPowerBusinessOtherBusinessesTransmissionDistributionTradingFuel & LogisticslSEDlTata BP Solar 49%lTata Projects 48%GenerationlTrombaylHydrolJojoberalBelgaumlHaldialWind FarmlSolar SPVlCGPL (Mundra UMPP) 100%lMaithon 74%lIEL 74%lDagachhu 26%lOTP Geothermal 50%lMumbailPowerlinks 51%lMumbailDelhi: NDPL 51%lTata Power Trading 100%l(KPC and Arutmin through Bhira)lMandakini 33%lTubed 40%lTrust Energy 100%Indonesians Coal Mines 30%FinanciallTTML 7%lTTSL 8%lPanantone 39.98%lTata Comm 17%TechnicallExergen 5.13%lGeodynamics 8.76%lSunengy 15%Division Other SPVs Investment %stakes10002000300040005000

60007000800090000FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13Maithon 1050MWCGPL 1600 MWWind 100 MWLodhivali 40 MWMithapur 25 MW2183 2303 2348 2364 2785 2977 3127 5990 8516CGPL 1600 MWDHPC 128 MWCumulative capacity at end of year Operational Under ExecutionFigure 3: Planned Capacity Addition6 Tata Power Company Limited Sustainability Report 2010-11 7Net Energy Output (Mwhr)OilCoalWindHydroGas/LNG1060577838414132417013100003457870Table 1: Net Energy Output FY11FirsthydroelectricpowerstationFirst500 MWthermalunitComputerizedgrid controland energymanagementsystem220 kV CableTransmissionNetworkFirst to IntroduceSCADA and Fiber Opticground wirecommunicationFirst 800 MWsupercriticalthermal unitFirst pumpstorageunitin thecountryof 150 MWCapacityFlue Gas

Desulphurisationplant usingsea water220 kVtransmissionlines infour circuittowersFistgasinsulatedswitchgearFist150 MWthermalunitOur Pioneering InitiativesPower is a basic necessity that ensures nationalgrowth. Tata Power is a vigorous participant in India�sgrowth and is charting out aggressive plans for thefuture, with the goal of reaching approximately 25,000MWof installed power generation capacity by2017.INDIA�S LEADING PRIVATE TRANSMISSION PLAYERCorporateGovernanceI TRUST and CAREVisionTo be the most admired Integrated Power and Energy Company delivering sustainablevalue to all customersMissionWe will become the most admired Company delivering sustainable value by:lBeing the supplier and partner of choicelAchieving excellence in safety, operations and project managementlFocusing on the culture of sustainabilitylEnsuring growth and delivering value to the stakeholderslCaring for the communityValuesIntegrity: Honesty, fairness and transparency in our conduct and transactionsTrust: Faith and belief in each otherCare: Being concerned about the well being of all employeesCollaboration: Excellence through teamwork, within employees and partnersAgility: Speedy, responsive and proactive, achieved through empowering employeesRespect: Treat all stakeholders with respect and dignityExcellence: Bettering standards continuously, with passion and prideCompany�sPhilosophyonCorporateGovernanceTata Power is a part of the Tata Group and is anindependent company which is governed by a Boardof Directors.As a Tata Company, Corporate Governance is a way oflife at Tata Power. The Company seeks to focus onenhancement of long-term value creation for allstakeholders without compromising on integrity,social obligations, environment and regulatorycompliances. As a responsible corporate citizen, TataPower has established systems to encourage andrecognize employee participation in environment andsocial initiatives that contribute to organizationalsustainability, training, learning, personal growth,

conservation of energy and other scarce resources,promoting safety and health of its employees and ofthe neighbouring communities.This philosophy has been sought to be strengthenedthrough the Tata Code of Conduct (TCOC), the TataBusiness Excellence Model and the Tata Code forPrevention of Insider Trading and Code of CorporateDisclosure Practices, which form guidelines for�Leadership with Trust�. The Company will continue tofocus its energies and resources in creating andsafeguarding of shareholders� wealth, and at the sametime, protect the interests of all its stakeholders.Internally Tata Power has an enforcement mechanismto deal with issues related to the Tata Code of Conductby creating the position of a Chief Ethics Counsellor(CEC), who is responsible for setting up processes,communicating the nuances of the code and changesto it, measuring per formance on the code�sparameters, and resolving concerns and issues raisedby employees. �Concern Drop Boxes� are provided atvarious locations across the company for theconvenience of employees, and anonymity is assuredto encourage freedom of expression. Given the spreadof Tata Power�s operations, ethics counsellors arenominated at each facility to support the CEC. Variouspolicies have been prepared and released topractically implementtheTataCodeofConduct.In order to keep the company prepared for itsambitious growth it is essential to identify potentialrisks and means to mitigate them.Tata Power is well beyond compliance and has beenpracticing Risk Management since seven years. TheRisk Management and Internal Audit Department isresponsible for the effective functioning of the RiskManagement process.ARisk ManagementCommitteehas been formed and the Risk Owners meet theCommittee every quarter to discuss and review theRisk Mitigation Plans. Also there are seven RiskManagement Sub-Committees which frame the RiskPlans along with the Risk Owners and monitor themitigation measures closely.The following 6 step process is being followed foreffectiveimplementationofRiskManagement:1. Risk Identification2. RiskCategorisation3. Risk Quantification4. Mitigation Planning5. Risk Register6. Risk MonitoringOnce the risks were identified, they were analysed andcategorized. Eleven risk categories important to TataPower were identified as under:1. Fuel2. Regulation&legal3. Environment&Safety4. Competition, Strategy&Growth5. Assets&catastrophe6. HumanResources7. Financial8. Technology

9. Governance10. Projects11. InvestmentsThe ambitious growth aspirations of the Company areregularly reviewed. Strategic Plans of Tata Power arepresented to the Business Review Committee (BRC).This committee is chaired by the Company Chairmanand has senior Group Directors as members. Somedirectors in other Group companies are invited basedon the issues discussed and their domain knowledge.Tata Strategic Management Group also has arepresentative on this committee. The committeeprovides guidelines for the short and long-term plans,through their domain knowledge and businessexperience. The BRC reviews the plans at least twice ayear. The strategic action plans are presented to theBoardoncea year.As a means to quantify and strategically review thegrowth aspirations of Tata Power, the Company usesBalanced Scorecard (BSC) as a tool for deployment ofstrategy, wherein strategic objectives, measures ofperformance and their targets and strategic initiativesfor business growth and performance improvementare clearly articulated. Performance against the BSC istracked and reviewed every month. BSC performanceand the status of key initiatives are reviewed by theBoard at each Board meeting. The corporate BSC iscascaded down to divisions and departments toensure organization-wide alignment. Each of thesenior leaders identifies his or her Key Result Areas(KRAs) in consultation with the Managing Director(MD).They include targets and tasks coming out of theBSCandcorporate initiatives.AtTata Power, performance is directed, supervised andcontrolled by the Board of Directors. In order to focuson the important issues and ensure resolution ofdiverse matters, the Board has constituted a set ofcommittees with specific terms of reference and scope.Each Committee is chaired by one of the Directors, thecommittees are as follows:1. AuditCommittee2. RemunerationCommittee3. ExecutiveCommitteeof the Board(ECoB)4. NominationsCommittee5. EthicsandComplianceCommitteeCompositionAs on 19th May 2011, the Board of Directors has 14members, out of whom four are Executive Directorsand ten are Non-Executive Directors (NEDs) who bringin a wide range of skills and experience to the Board.The composition of the Board is in conformity withClause 49 of the Listing Agreement. None of theDirectors on the Board is a Member on more than tenCommittees and Chairman of more than fiveCommittees (as specified in Clause 49), across all thecompanies in which he is a Director. The necessarydisclosures regarding Committee positions have beenmade by the Directors.Boardof DirectorsSolar Panels (100kW),Walwan Dam, Lonavala, Maharashtra

Name of the Director andBusiness RelationshipCategory ofDirectorshipTable 2: Tata Power Board of DirectorsMr R N Tata, ChairmanMr R GopalakrishnanMr A J EngineerDr H S VachhaMr N H MirzaMr D M SatwalekarDr R H PatilMr P G MankadMr A K BasuMr Thomas Mathew T(Representative of LIC asInvestor/Lender)Mr Anil Sardana, Managing Director(Appointed on 1.2.2011)Mr S Ramakrishnan, Executive DirectorMr S Padmanabhan, Executive DirectorMr B Agrawala, Executive DirectorPromoter,Non-ExecutiveIndependent,Non-ExecutiveExecutive10 Tata Power Company Limited Sustainability Report 2010-11 11CodeofConductThe Board has laid down separate Codes of Conductfor Non-Executive Directors and Senior Managementpersonnel of theCompany and the same are posted onthe Company�s website www.tatapower.com. AllBoard Members and Senior Management personnelhave affirmed compliance with the Code of Conduct.The Managing Director has also confirmed andcertified the same. The certification is enclosed at theend of this Report.AuditCommitteeThe terms of reference, role and scope of the AuditCommittee are in line with those prescribed by Clause49 of the Listing Agreement with the Stock Exchanges.The Company also complies with the provisions ofSection 292A of theCompaniesAct, 1956 pertaining toAuditCommitteeandits functioning.The Board has delegated the following powers to theAuditCommittee:lTo investigate any activity within its terms ofreference.lToseek information from any employee.lToobtain outside legal or other professional advice.lTo secure attendance of outsiders with relevantexpertise, if it considers necessary.CompositionoftheAuditCommitteeCommitteesoftheBoardThe terms of reference, role, and scope are in line withthose prescribed by Clause 49 of the ListingAgreement with the Stock Exchanges. The Companyalso complies with the provisions of Section 292A ofthe Companies Act, 1956 pertaining to Audit

Committee and its functioning.The Audit Committee invites such of the executives, asit considers appropriate (and particularly the head ofthe finance function) to be present at its meetings.TheManaging Director, Executive Directors and head ofInternal Audit attend the meetings. The StatutoryAuditors are also invited to the meetings. TheCompany Secretary acts as the Secretary of theCommittee.RemunerationCommitteeThe terms of reference of the Committee includerecommending to the Board of Directors specificremuneration packages for Executive Directors.RemunerationPolicyNon-ExecutiveDirectorsThe Non-Executive Directors (NEDs) are paidremuneration by way of Commission and Sitting Fees.In terms of the shareholders' approval obtained at theAnnual General Meeting (AGM), the Commission ispaid at a rate not exceeding 1% per annum of the netprofits of the Company (computed in accordance withSection 309(5) of the Companies Act, 1956). Thedistribution of Commission amongst the NEDs isplaced before the Remuneration Committee and theBoard. The Commission payment for the year ended31st March 2010 was distributed broadly on thefollowing basis:1. Number of meetings of the Board and substantiveCommittees of the Board attended;2. Role and responsibility as Chairman/Member ofthe Board/Committee;3. Individual contributions at the meetings;and4. Time spent other than in meetings relating to theoperations of theCompany.During the year, the Company paid sitting fees ofRs. 20,000/- per meeting to the NEDs for attendingmeetings of the Board, Executive Committee of theBoard, Audit Committee, Remuneration Committeeand Nominations Committee. The fees paid for otherCommittee meetings was Rs. 5,000/- per meetingattended.ExecutiveDirectorsThe Company pays remuneration by way of salary,perquisites and allowances (fixed component) andcommission (variable component) to the ManagingDirector and the Executive Directors. Salary is paidwithin the range approved by the shareholders.Annual increments effective 1st April each year, asrecommended by the Remuneration Committee, areplaced before the Board for approval. The ceiling onperquisites and allowances as a percentage of salary isfixed by the Board. Within the prescribed ceiling, theperquisite package is recommended by theRemunerationCommittee and approved by the Board.Commission is calculated with reference to the netprofits of the Company in a particular financial yearand i s determined by the Board on therecommendation of the Remuneration Committee ofDirectors, at the end of the financial year, subject tooverall ceilings stipulated in Sections 198 and 309 of

the Companies Act, 1956. Specific amounts payable tosuch Directors is based on the performance criteria laiddown by the Board which broadly takes into accountthe profits earned bytheCompany for the year.ManagementStaffRemuneration of employees largely consists of basicremuneration, perquisites, allowances andperformance incentives. The components of the totalremuneration vary for different grades and aregoverned by industry patterns, qualifications andexperience of the employee, responsibilities handledby him, his annual performance etc. For the last fewyears, efforts have also been made to link the annualvariable pay of employees with the performance of theCompany. The performance pay policy links theperformance pay of each officer to his individual,divisional and overall organizational performance onparameters aligned toCompany�s objectives.Shareholders'/Investors'GrievanceCommitteeIn accordance with Clause 49(IV)(G)(iv) of the ListingAgreements with the Stock Exchanges, the Board hasauthorised the Company Secretary and ComplianceOfficer, and Chief - Legal of the Company, to severallyapprove share transfers/ transmissions, in addition tothe powers with the members of the Shareholders'/Investors' Grievance Committee. Share Transferformalities are regularly attended toand at least once afortnight. All investor complaints which cannot besettled at the level of Company Secretary andCompliance Officer, are placed before the Committeefor final settlement.ExecutiveCommitteeoftheBoardThe ExecutiveCommittee of the Board comprises ofMrR N Tata (Chairman), Mr R Gopalakrishnan, Mr A JEngineer, Mr N H Mirza, Mr D M Satwalekar, Mr AnilSardana (Managing Director) and Mr S Ramakrishnan,Mr S Padmanabhan and Mr B Agrawala (ExecutiveDirectors). This Committee covers a detailed review ofthe following items before being presented to the fullBoard:1. Business and strategy review2. Long-term financial projections and cash flows3. Capital and Revenue Budgets and capitalexpenditure programmes4. Acquisitions, divestments and businessrestructuring proposals5. Senior management succession planning6. Any other item as may be decided by the BoardNominationsCommitteeThe Nominations Committee comprises of Dr H SVachha (Chairman),Mr R NTata andMr N HMirza. ThisCommittee makes recommendations regardingcomposition of the Board and would therefore identifyIndependent Directors to be inducted to the Boardfrom time to time and take steps to refresh thecomposition of the Board from time to time.EthicsandComplianceCommitteeIn accordance with the Securities and Exchange Boardof India (Prohibition of Insider Trading) Regulations,1992, as amended (the Regulations), the Board of

Directors of the Company adopted the Code ofConduct for Prevention of Insider Trading and theCode of Corporate Disclosure Practices (the Code) toName ofthe DirectorSI.No.Category RemarksDr H S Vachha,ChairmanMr A JEngineerMr D MSatwalekarMr P G Mankad(Appointedon 3.8.2010)Non-ExecutiveIndependentNon-ExecutiveNon-IndependentNon-ExecutiveIndependentNon-ExecutiveIndependent1234Dr Vachha is aformer executiveof ICICI Limitedand accordinglyhas the requisiteaccounting /related financialmanagementexpertiseFinanciallyliterateTable 3: Composition of the Audit CommitteeMr N H Mirza, ChairmanMr R N TataMr R GopalakrishnanTable 4: Composition of the Remuneration CommitteeNon-Executive,IndependentNon-ExecutiveNon-Executive123SI. No. Name of the Director CategoryTable 5: Composition of the Shareholders'/Investors'Grievance CommitteeName of the Director Category of DirectorshipDr H S Vachha (Chairman)Mr S RamakrishnanMr S PadmanabhanNon-Executive, Independent

ExecutiveExecutive12 Tata Power Company Limited Sustainability Report 2010-11 1314be followed by Directors, Officers and otherEmployees. The Code is based on the principle thatDirectors, Officers and Employees of a Tata Companyowe a fiduciary duty to, among others, theshareholders of the Company to place the interest ofthe shareholders above their own and conduct theirpersonal securities transactions in a manner that doesnot create any conflict of interest situation. The Codecontains regulations for preservation of price sensitiveinformation, pre-clearance of trade and monitoringand implementation of theCode.In terms of this Code, a Committee has beenconstituted cal led �Ethics and ComplianceCommittee� comprising of Dr HS Vachha (Chairman)andMrAJEngineer.Mr S Ramakrishnan, Executive Director (Finance) is theCompliance Officer to ensure compliance andeffective implementation of the Regulations and alsothisCodeacross theCompany.CommitmenttoExternal InitiativesTata Power follows external initiatives such as CombatClimate Change (3C), the Global Reporting Initiative(GRI), and has extended support to the InternationalFinance Corporation (IFC)�s study for �Improving theoccupational health and safety in the Powerconstruction sector in India� for reporting economic,environmental and social performances.Memberships in associationsTata Power is involved with memberships in theseassociations:1. Cleantech Forum2. Confederation of Indian Industries (CII)3. MIT-ILP4. National SafetyCouncil5. CentralBoardof IrrigationandPower (CBIP)6. Bombay Chambers of Commerce and Industry(BCCI)Key Influences,Risks andOpportunitiesTata Power has charted an ambitious multi-foldgrowth path. To achieve any progress one has toalways overcome various challenges.RisksFuel Supply: Domestic coal supply remains a bigconcern. Levy of taxes by energy exportingcountries could further increase the cost ofimported energy. Shortage of domestic gas andexpensive Liquefied Natural Gas (LNG) importswould impact the financial viability of gas-basedpower plants. In order to circumvent these risks,Tata Power has invested in coal mines inIndonesia.Regulatory: Inability of regulatory commissionsto address the issue of increased costs toconsumers could result to financial stress for

DistributionCompanies(DISCOMS).Delays in land acquisition, lack of water, lack ofskilled manpower, availability and cost of capital,and environmental clearances remain areas ofconcern. Tata Power uses advocacy to addressvarious government related issues and toovercome the abovementioned risks.Another challenge faced by the company wouldbe of deploying new and nascent renewabletechnologies to achieve the target portfolio sizein the ambitious growth chartKeeping these risks in mind and adopting asustainable development strategy, Tata Powerforesees opportunities among customers and inthe market to become a leader in introducingclean technologies, with brand-enhancementefforts for socially and environmentally consciousproducts, services and operations.OpportunitiesAdvocacy: Regulatory issues present anopportunity to boost advocacy with thegovernment which will be in the interest of boththe customer and the provider.Tapping the renewable sector: Tata Power hasalready established itself as the leader inadopting and implementing new renewabletechnologies.With fuel linkage and fuel sourcingbecoming increasingly difficult both at thedomestic and international level, the opportunity toadopt renewable technologies has becomeimperative.This is a huge opportunity for the companyto diversify its generation business and provideaffordable but sustainable power to its ever growingconsumers.The focus on renewable energy across the globe hasincreased multi-fold, this has brought aboutdevelopment in the technologies to harness variousrenewable sources.With sustainable development onits agenda, Tata Power is constantly reviewing varioustechnologies forpower generation.Upcoming technologies like Carbon Capture andReuse, Concentrated Photovoltaic (CPV) technologyand geothermal are being reviewed by the company.The company is also looking to increase its capacity inalready established renewable technologies like solarphotovoltaic,wind and hydro.16Our CarbonFootprintThe total emission of Carbon-dioxide fromTata Poweroperations for the year 2010-11 totalled to 11.16million tonnes of CO2e which corresponds to a CO2eintensity of approximately 695 kg/MWh. In adherencewith the company�s Sustainability Policy, we have triedto integrate economic progress, social responsibilityand environmental concerns with the objective ofimproving the quality of life of all its stakeholders.In adherence with this policy, the company hasappointed a Chief Sustainability Officer (CSO) and setup a separate division for Sustainability. The CSO

reports directly to the MD, highlighting themanagement �s priority towards sustainabledevelopment. Tata Power is committed to devise andimplement ways to reduce its carbon footprint, itsimpact on the environment and the communitiesaround its facilities, and to adopt a sustainable growthpath.In order to ingrain the concept of Carbon footprint atthe individual level, a carbon footprint calculator hasbeen setup on the company�s intranet website. Allemployees are encouraged to calculate their carbonfootprint on a monthly basis and this data is collated bythe Head-Sustainability and the CSO. Based on thefootprint, tips or suggestions are offered to theemployees to reduce their footprint. The personalcarbon footprint exercise is a voluntary action onbehalf of the employees.Strategic AlliancesonClimateChangeTata Power has established a formal system ofmeasuring, monitoring and reporting on its economic,environmental and social performance. It is one of the53 international companies that are part of theCombat Climate Change (3C) initiative, which seeks tointegrate climate-change issues into world markets.The Tata Group, on its part, has formed a steeringcommittee to frame and drive a coordinated responsefrom across its companies to the climate changechallenge. A Working Group of technical experts frommajor Tata companies is assisting the steeringcommittee in the selection of consultants to create agreenhouse gases emissions inventory, and formulatethe tactical and strategic plans of each Tata companyto reduce its carbon footprint.Tata Power is a signatory to the United Nations GlobalCompact (UNGC), a United Nations initiative thatencourages businesses to adopt sustainable policies,and a member of the �corporate roundtable� forsustainable development in India, which is backed andpromoted byThe Energy and Research Institute (TERI).Furthermore, the company is an enthusiasticparticipant in events such as the Greentech Awards forsafety and environment and the TERI award forenvironment and community support.Tata Power has regular interactions with theConfederation of Indian Industry (CII) on preparing thepower industry�s response to the Indian government�sNationalAction PlanonClimateChange. It is a memberof the Chicago Climate Exchange - a voluntarygreenhouse gases reduction and trading system - andthe CSO is a member of the international advisorypanel of the Cleantech Forum. Tata Power is also amember of the Industrial Liaison Program (ILP) at theMassachusetts Institute of Technology (MIT). Thisprogram offers an insight into the development of newtechnologies atMIT.18Carbon footprint is the measure of theenvironmental impact of the organisation�soperation. It is expressed in equivalent carbondioxide emissions (Tonnes of carbon

dioxide/year)StakeholderEngagementkey stakeholders of Tata Power. A detailed study of thetypes of issues that other companies were looking atwas carried out, based on which the final list of issuesand stakeholders was decided as depicted in thefollowing figureandTable5below.Many of the hallmarks of good relationships - trust,mutual respect, and understanding - are intangiblesthat develop and evolve over time, based on individualand collective experiences and interactions. TataPower takes proactive measures for engaging withtheir stakeholders, as we believe that our stakeholdersplay a significant role in the growth and developmentof the company. Engaging with stakeholders has beena part of the legacy of the company as our founderMr.Jamshedji Tata and his family have always stronglycommitted to social issues.Stakeholders are engaged by the Company on anannual basis through meetings with the identifiedstakeholders.Identification ofStakeholdersThe first step was to identify the sustainabledevelopment issues of relevance to Tata Power. Theprocess that was used was:1. All relevant documents relating to Tata Powersustainability issues were analyzed anddiscussions were held with the key managerscoordinating the company�s sustainabilityactivities.2. Detailed discussions were held with seniormanagement staff and the sustainability team ofthe company to understand:a) Which stakeholder groups impacted and wereimpacted by the process; identification ofmajor stakeholdersb) Identification of the environmental and socialissues that were of concern to thesestakeholdersThe stakeholders were identified by conductingdetailed discussions with internal people and once thebroad groups of stakeholders were identified, specificindividuals/organisations were then shortlisted ineach of these broad categories. Business Partners, civilsociety, consumers, employees were all identified as20 Tata Power Company Limited Sustainability Report 2010-11 21Jojobera Power Plant, Jamshedpur, JharkhandInvestorsEmployeesSuppliers &ContractorsJoint venturepartners NGOs working onsocial andenvironmentalissuesConsumerActivistsAcademia

BusinessPartnersCivil Society InfluencersMediaIndustryAssociatesCustomersPowerProcurersTata GroupCompaniesIdentified StakeholderGroupTable 6: List of key sustainability issues identified by the companyIssue Sub-IssuesGovernance and StakeholderEngagementEmployment Practices andEmployee health and SafetySupply Chain ManagementClimate Change (GHGEmissions)Environmental ImpactsSolidWaste Disposal andManagementWater Usage andManagement (thermalplants)Customer ServiceCommunity DevelopmentPracticesBribery and CorruptionInstitutional structure and systems to reflect accountability and transparencyLeadership and oversight on social and environmental impacts of operations and projectsResponsible public policy and lobbying (climate change policy, tariffs)Safety and Occupational healthDiversity and equal opportunity - caste/religion, geography (local/outsiders), abilities(differently-abled), gender, etc.Sensitivity to social and environmental issues among employees and managementsystems to support thisOther work conditionsOccupational Health and SafetyDamages to roads and culverts, bridges from transportation of raw materials/equipmentsLiving conditions, wages for laborers working on siteCompliance to procurement standards for contractors/suppliersEnvironmental management (emissions, solid waste, effluents)GHG emissions in mining and transportation (F)Carbon mitigating measures (F, G)Use of fossil fuel in energy mix (G)Use of carbon reducing technologies in fossil fuel plants (G)Environmental legal compliance (G)Emissions (NOX, SO2, dust etc.) (G)Biodiversity (flora, fauna) (G)Solid waste (Ash) (G)Sludge (G, F)Old transmission poles, lines/wires, windmills etc. (T&D)Water consumption (overutilisation of cooling)

Water discharge management/impact on marine life ( in case of coal plants)Water consumption in coal minesService levels (outages, voltage)Redressing complaintsSafety of Tata Power installations at customer siteVisual dissonance of installationsLand purchase & compensationResettlement and rehabilitation of physically displaced personsLivelihood protection of economically displaced personsBenefit sharing with local communitiesProtection of indigenous communitiesCommunity infrastructure developmentVisual dissonance (chimneys, windmills, transmission lines)Environment & political actions of other companies within Tata Power�s neighbourhood &extent to which Tata Power needs to account for this in its response towards communitiesLaw and order, safety and impact on social and cultural traditions on account of labourinflux during construction and afterof labour influx, Diversity and equal Opportunityat workplaceCreatingValue forStakeholdersOur goal is to integrate our stakeholder engagementwith our business activities. Tata Power collaborateswith various stakeholders on projects where ourcollective expertise can contribute to ensuring agreater impact.Engagement with the community has been a keyundertaking by Tata Power since the beginning of itsoperations. Currently Tata Power spends nearly1 percent of its net income before tax on communityinitiatives, donations and in-kind support; thisamountedto Rs. 52.6million in 2010-2011Tata Power�s community programmes are apoliticaland non-religious, and in line with our approach toinclusion and diversity. To ensure that we achieve andmaintain a leadership position in our community impactprogrammes,we benchmark our approach andcontinually look for better ways to measure the impactof our interventions.We endeavour to regularly assess the expectations ofour stakeholders and ensure that all issues are properlyaddressed. A structured system for understandingissues and problems and a regular system of reviewhave been put in place to help this process.Tata Power reveals all relevant data related to finance,environment, health and safety. Statutory bodies arekept informed about new developments and are giventhe required information. In addition, societalinitiatives are shared with stakeholders. The sharing ofsuch information happens in many ways, includingthrough displays, annual reports and meetings withcommunities and other stakeholders.Dialogue with External Stakeholders onSustainabilityA total of 23 stakeholders were contacted and theirinputs were sought using a structured questionnaire.They were asked to rank based on the significance ofthe sustainability issues based on their level of

concern. Stakeholders were also asked to comment onstrategic insights especially with reference tomanagement accountability issues and feedback fortheMD.The study produced two types of outputs- onewas how these stakeholders rated each of these issuesin terms of importance or criticality. The second was arich set of qualitative insights and responses which canprovide invaluable inputs into how Tata Power shoulddevelop its sustainability strategy in alignment with itscore business strategy.Each stakeholder group was given a questionnaire andasked to comment on the areas Tata Power needed tofocus on. Figure 3 below summarises how thestakeholders rated these issues:ClimateChangeandWater Usage were of high concernon an overall basis. Civil Society has associated highconcern for most issues other than EmploymentPracticesandCommunity Development.The followingsub-issues were ratedasHighConcern:1. GHG emissions in mining (especially use of dieselgenerators)and transportation.2. Carbon mitigation measures.3. Use of fossil fuel in energy mix (there was asignificant expectation of increasing use ofrenewables).4. Use of carbon reducing technologies in fossil fuelplants.5. Solid waste disposal and management.6. Water consumption(overutilization) for cooling.Interestingly, some sub-issues were considered HighConcern by only Civil Society and Influencers groupsbut rated low by the BusinessPartnersandhencethesefell intotheMediumConcern category.1. Responsible public policy and lobbying.2. Environmental management.3. Damage to roads and culverts duringtransportation of raw material and equipment.4. Biodiversity impacts of its operations.Expectedly, Civil Society considered several aspectsrelating to Community Engagement as areas of HighConcern. However, as other Stakeholders gave a verymixed response, ranging from High Concern to NoConcern, these issues fell in the low concern region.Very few sub-issues were considered unimportant:1. Bribery and corruption (reflecting the still positiveimage that theTatas enjoy).2. Visual dissonance of installations, both atcustomer sites and in communities.3. Safety ofTata Power installations at customer sites,Impacts on law and order and local communities22 Tata Power Company Limited Sustainability Report 2010-11 23Sustainability Issue Business Partners Civil society Influencers OverallFigure 4: Matrix representing Level of Concern for identified issues by StakeholdersGovernance SH engagementEmployment practicesSupply chain managementClimate changeEnvironmental impactsSolid waste

Water usageCustomer serviceCommunity developmentHigh concern Medium concern Low concernSustainabilityat Tata PowerTata Power has always set a standard in adoptingsustainable practices in its business. Tata Power iscurrently the leader in installedWind Power capacity inIndia; various new technologies in the renewablespace are being adopted by the company. HoweverSustainability at Tata Power does not stop only atrenewable initiatives, we believe in Sustainabilitybeing a lifestyle tha teach individual must adopt.Economic Sustainability is an important factor for anybusiness. However, overall sustainability of anorganization, in the long run, will be on a positivegrowth if the organization cares for the environment,society, customers and its employees. With this viewwe have developed the Sustainability Model at TataPower, as shown in Figure 4. This model forms atemplate to develop Tata Power�s SustainabilityStrategyThe intent of our Sustainability model is �Leadershipwith Care� with four key elements - Care for theEnvironment; Care for the Community; Care for ourCustomers / Partners and Care for our People. Tosupport these elements, there are four enablers ofNewTechnology, Advocacy / Mutual learning, ExcellenceandArchitecture of Care (AoC).Care for the Environment addresses various aspects ofresource conservation, energy efficiency, carbonfootprint, renewable power generation, biodiversityTata Power Company Limited Sustainability Report 2010-11 253MW Solar PV Farm, Mulshi, MaharashtraFigure 5: Tata Power Sustainability ModelAdvococy/Mutual LearningNew TechnologySearch for ExcenceCareFor the EnvironmentCareFor the CommunityCareFor our Customers/partnersCareFor our peopleLeadershipwith CareArchilecture of CareTata Power Company Limited Sustainability Report 2010-11 27and green buildings. Our various locations have beenworking on different initiatives that have been and willcontinue to address these aspects. The GreenManufacturing Index (GMI) which we have adopted forall manufacturing locations, addresses some of theseaspects. Further, we have also developed theCorporate Sustainability Protocol (CSP), which

addresses issues on environment and community. TheCSP is applicable to manufacturing locations, projectsand other offices.ProjectandOperational locations arebeing assessed for their impact on biodiversity andappropriate mitigation measures are being preparedfor conservation of the same. Fossil fuel powergeneration is a significant contributor to the greenhouse gases viz. CO2. As per our objective, we aretracking our Carbon Footprint and also encouragingour own employees to monitor their personalcontribution to this global issue.We are developing new projects across the countryand our intent is to be the �neighbour of choice�. Wewant to build up a relationship with the communityand bring in prosperity for the organization as well asto the community. We have developed our Principlesof Community Engagement which address our actionsin �Caring for the Community�. The Tata Group hasalways worked with the community and taken steps tobuild a stronger India. We provide power, one of thenecessities for national growth and we would workwith the community to develop a fully electrified India.Our economic sustainability depends on ourcustomers and it is one of our prime objectives to carefor our Customers. Our product is very unique as thesame has no shelf life and gets consumed immediatelyas the switch is turned on.Yes our product is a necessityto society and hence it becomes more important for usto be humble to our customers and extend our care tothem. We have started working at our customers endin the form of the Demand Side Management Projects,the Tata Power Energy Club and working withcustomers to develop small renewable energysystems. In a fast place world, we as individualssometimes need a person to talk to. OurCustomer CareCentres that have been built with the Architecture ofCare provide such an opportunity to our customers.We will start working with our partners to help themdevelop in a sustainable manner over the years tocome.As an organization, we care for our employees andhave different initiatives that are spear headed by thehuman resources function for the learning anddevelopment of our employees. Safety and health areof prime importance and all efforts are made to makesafety the top most agenda in all aspects of ouroperations as well as our day-to-day living. Otherinitiatives like organizational transformation andLASER have been implemented to enhance theindividual understanding of an employee.Our enablers like advocacy / mutual learning, newtechnologies, excellence and architecture of care arecutting across all the elements and contributesignificantly to the development of each element. Bydeveloping each element, we as an organization willbe able to attain our overall sustainability objective ofLeadership with Care.ThuswehavedefinedourSustainabilityModelwhichdefines the organisation�s Sustainability portfolio.FosteringaCultureof SustainableDevelopment

While continuing to develop cutting-edge ecofriendlytechnologies, we have announced theinitiative to bring carbon captureanduse technologiesfrom research to full application. Throughcollaboration with policymakers and regulators, wehope to accomplish this task as well as develop costeffectiveenergy-efficiency programmes whilemanaging the increasing consumer demand forelectricity. We believe we have the confidence andability - nine decades of innovation and leadership inthe energy industry - to find ways to address theclimate change challenge that will deliver benefits toour customers, our shareholders and society.Initiatives toReduceGreenhouseGasEmissionsTata Power is among the frontrunners in India inintroducing technologies that cut greenhouse gasemissions. Several steps - such as exploring renewableenergy opportunities and initiating energy efficiencyprojects have been framed to reduce greenhouse gasemissions and improve environmental performance.26Dagacchu126 MWHydro projectRenewable Portfoliol2 x 63 MW run of the river Hydro project with Tata Power holding 26% and Govt. of Bhutanholding 74%lProject cost - US$200mm with debt equity of 60:40lPPA signed with Tata Power TradinglCommissioning expected by FY 13OTPGeothermallgeothermal exploration concession in IndonesialConcession to develop 200 MW that needs an investment of c. INR30bnlWon project through competitive process which saw participation from Chevron, PT MedcoEnergi InternationalTata Power and Origin Energy of Australia, in consortium with PT Supraco, have awarded theJV withSN Powerlin India and NepallAim to have 2,000 MW under construction or in operation by 2015lWon a bid for the 236 MW for Dugar hydroelectric project in Chenab valley (HP)lCurrently exploring possibility to develop hydro projects in Himachal region and SikkimExclusive partnership agreement with SN Power, Norway to develop joint hydropower projectsMulshi solarpower plantllCapacity of 3 MW, based on crystalline silicon modules technologyl25 yr PPA signed with Tata Power CompanylCommissioned in March 2011One of the largest grid-connected solar power plant in MaharashtraMithapur solarpower plant

ll25 yr PPA signed with Gujarat Urja Vikas Nigam Ltd at a tariff of INR 15/unit for first 12 yrslCommissioning expected by FY12Capacity of 25 MW, based on crystalline silicon modules technologyTotal installed Wind farm capacity of Tata Power is 228 MWTata Power has installed a 60kW Solar Rooftop system on one of its buildings at the Corporate Centre,Mumbai. This is the first rooftop solar that has been grid synchronized!DisclosureonManagementApproachOver the years Tata Power has registered robustgrowth. We intend to provide profitable growth andvalue to all our stakeholders. To improve our financialperformance various initiatives have been set up withthe objective of improving system and processefficiencies and thus improve operating profits.Tata Power has a system of policies that guide anddefine its management�s approach to economicperformance. Goals are set at the business-unit leveland monitored against targets. There are OperationReview Committee (ORC) and Business ReviewCommittee (BRC) meetings where performances areevaluated against budgets and corrective actionsinitiated, if necessary. At the individual level, too,targets are set at the beginning of the financial yearand reviewed periodically, forming the basis of thecompany�sPerformanceManagementSystem.An integrated and computerised financial accountingsystem, supported by inbuilt controls, ensures reliableand timely financial reporting. Audit systemsperiodically review the controls and compliance withlaws and regulations, and the environment underwhich internal controls exist. The financial accountingand audit systems also provide control on fraud andnegligence. All financial and audit systems arereviewed by the Audit Committee of the Board ofDirectors.EnhancingShareholderValueDuring the 2010-2011 year, Tata Power reported aProfit after Tax (PAT) of Rs. 941.49 crore, as againstRs. 938.76crore for the previous year. Operatingrevenue was Rs. 6,918.48 crore, as against Rs. 7,098.27crore in 2009-2010. Operating revenue was lowermainly due to higher coal costs. Operating profit wasalso lower by 15% mainly due to lower generation andlower merchant tariffs in the fiscal year. It was also dueto a one-time impact of an order of the AppellateTribunal of Electricity (ATE) in the pervious year(2009-2010). Tata Power�s consolidated operatingrevenue grew by 1% at Rs. 19,861.26 crore againstRs. 19,574.72 crore (2009-2010) with PAT growing by5% at Rs. 2,059.60 crore against Rs. 1,966.84 crore(2009-2010) from the previous year. There was a netcapitalisation of Rs. 362.84 crores on account ofdeferred stripping cost in FY11. Highlights of theeconomic performance for 2010-2011 are givenbelow:Investor RelationsTata Power engages with investors on various issuesincluding sustainable development issues. We have

been involved in a 10 year term loan from IndianRenewable Energy Development Agency Limited(IREDA) to fund wind projects in Gujarat andKarnataka. To prepay an existing 10.95%, Tata Powerhas issued 1 year Non-Convertible Debentures (NCD)Tata Power Company Limited Sustainability Report 2010-11 29Bhira Hydro Generating Station, MaharashtraEconomicPerformanceGivingBacktoSocietyThe traditional commitment of Tata companies hasbeen to develop infrastructure facilities around theiroperating units for the sustainable social growth of thecommunities living there. Tata Power shares thiscommitment. Besides, the indirect economic impact ofelectricity generation is beneficial to society. Reliablepower supply spurs industrial growth, makeseducation and superior healthcare possible, andprovides jobs and employment in ancillary industriesand in areas surrounding power-generating facilities.The following graph represents the total amount spentby Tata Power on community relation activities from2008-2011.A significant amount of infrastructure developmentwas completed in the previous financial year (09-10),R&R expenditure of upcoming projects was also asignificant contributor to the expenses in 09-10. Thusthe total amount spent in 09-10washigher than 10-11.in July 2010. Tata Power issued further 15 year NCD�s inSeptember 2010 for meeting general corporateobjectives and part funding wind power projectrequirements. Tata Power has also availed a term loanfrom ICICI Bank Limited in July 2010 for partly fundingcapital expenditure requirements of its MumbaiOperations, and has availed an unsecured term loanfrom ICICI Bank used for developing a few criticaltechnologies in the area of CO2 capture and reuse(using algae) for the power sector and advancedelectronics for defence sector.Tata Power has invested in Geodynamics, a leadingAustralian company for a pilot project using enhancedgeothermal technology with a view to bring thelearning from this investment to India. Tata Power hasinvested AUD 50 Million in the project thus far. Therehas been an increase in investments from Tata Powerfrom Rs.7,939.91crore in 2011 against Rs.6,688.62crorein 2010, a 19% change due to additional equitycontributed by Tata Power to CGPL (Rs.1,096.50crore)and Maithon Power Limited (MPL) (Rs.318.20crore)during 2010-2011.Apart from financial resources, Tata Power celebrates astrong and dedicated workforce to ensure sustainabledevelopment. The relationship that binds Tata Powerand its people is one of give and take. For the long-termbenefit of its employees, the company has well definedplans.There are three of these:The employee and the company contribute 12 percentof his or her basic salary towards this fund. Wages forpermanent category of non-management employeesmany times more than minimum wages as it includes

not only statutory but other benefits also. Tata Poweroperates independent of any financial assistance fromthe Indian government.The following table representsstaff expenses incurred by the company.30 Tata Power Company Limited Sustainability Report 2010-11 31Highlights in Rs. Billion FY07 FY08 FY09 FY10 FY11Revenues from operationsOther IncomeProfit Before Tax (PBT)Profit After Tax (PAT)Net Profit after Tax and Statutory AppropriationsEarnings per share (EPS) Rs./ShareDividend per share (%)Return on Capital Employed (RCOE) (%)Return on Net worth (RONW) (%)Total Debt/EquityNetWorth (Rs. Billion)47.153.445.866.976.7434.029512150.644.67Table 7: Financial Highlights of Tata Power for five years59.164.989.708.708.1138.6410512130.3863.6372.366.3211.179.229.6843.6911511140.671.8570.982.8212.599.399.4840.771201110

0.5591.3269.184.9411.129.419.704112510100.58106.42Table 8: Investments made by Tata Power(Figures in Rs. Billion)FY11 FY10 Change % ChangeInvestments inSubsidiary CompaniesOthersTotal Investments50.6028.7979.3935.9530.8966.8814.612.0912.5141719Table 9: Employee Long term Benefit PlansTypeProvident FundGratuitySuperannuationManaged by trust; Contributed moneygiven to employee on superannuationor when leaving the company.Employee and company contribute12 percent of his or her basic salarytowards this fund.Employees entitled to gratuity at endof service. At end of service, employeesare paid a sum that is based onduration of service and last salarydrawn,Retirement benefit available toemployees of the �staff superannuationfund.�The company makes annualcontribution to the fund, 15 percent ofconsolidated salary in case of officers,and 15 percent of Basic and DearnessAllowance received by unionizedemployees.FY11 FY10 Change % ChangeStaff Expenses(Rs. Million)3411 3003 407.7 14

Table 10: Staff ExpensesAmount Spent on CR activities (Rs.Crores)Amount (Rs. Crores)012345672008-09 2009-10 2010-11YearsFigure 6: Amount Spent on CommunityRelation ActivitiesManagementApproachTata Power strives to minimise the negative effects onthe environment caused by the generation of energy.We continue to abide by regulations concerning theenvironment by allocating substantial investmentsand resources on a continuous basis to adopt andimplement pollution-control measures.Combating and coping with challenges on climatechange has become a �core value� for Tata Power.Therefore, a Sustainability Council, with branchesspread across the company, has been formed for thefollowing objectives:1. Reduce carbon intensity by improving thermalefficiency in existing fossil fuel-based plants; useclean-coal technology in future plants.2. Place emphasis on renewable power, such as frombiogas,hydro, solar and wind.3. Evaluate geothermal power and other sources forzero-carbon base load plants.4. Recruit and train young professionals to work inthe sustainability sphere.5. Be a repository of knowledge on sustainability fortheTata group of companies.6. Get involved in advocacy for clean energy withregulating agencies.Being a signatory to the United Nations GlobalCompact (UNGC) - a UN initiative that encouragesbusiness to adopt sustainable policies- we havesubmitted six Communications on Progress (COP),since 2002. We continue to believe that businessesshould take a precautionary approach toenvironmental challenges, undertake initiatives topromote greater environmental responsibility, andencourage the development and diffusion ofenvironment-friendly technologies.CorporateEnvironmentalPolicyWe remain committed to a clean, safe and healthyenvironment.We continue to respect our obligation toenvironmental and stewardship by:1. Complying with regulatory requirements and thespirit of applicable environmental laws, andworking to go beyond required levels ofcompliance wherever possible.2. Ensuring that our employees are trained to acquirethe necessary skills to meet environmental

standards.3. Conserving natural resources through improvedefficiency and the reduction of wastage.4. Making business decisions that support and staytrue to the doctrine of sustainable development.5. Engaging with stakeholders to create awarenesson sustainability.Tata Power remains committed to our CorporateSustainability Policy to articulate, guide and help withthe implementation of our sustainable developmentobjectivesCorporate SustainabilityPolicyWe will meet the expectations of our customers,Tata Power Company Limited Sustainability Report 2010-11 33Trombay Thermal Plant, Mumbai, MaharashtraEnvironmentalPerformanceWe are actively looking at options to switch to gas andlow-ash, low- sulphur coal in our existing generationfacilities and are critically evaluating clean coaltechnologies (dry ash removal and moisture removal).The objective is to bring the emissions, expressed ing/kWhorkg/MWh,close to the world standards.employees, partners, investors, the communitiesaround our facilities and the wider public by:1. Implementing sustainable communitydevelopment programmes throughpublic/private partnerships in and around theplaces where we operate.2. Constantly protecting the environment,maintaining and renewing biodiversity andconserving and protecting wildlife, especiallyendangered species.3. Encouraging our employees to serve communitiesthrough volunteering and by sharing their skillsand expertise.4. Striving to deploy sustainable technologies andprocesses in all our operations, and using naturalresources efficiently at all our facilities.E-WasteManagementPolicyWe remain committed to proper management ofelectronic waste. We are aware that the increasingadoption of technology creates a substantialgeneration of e-waste.Through this policy,we will:1.Procure IT and OT system hardware from vendorswho are likely to take back e-waste in the future2.Minimize generation of e-waste by extending theuseful life of electronic hardware.3.Carry out e-waste disposal only through e-wastehandlers/recyclers authorized by Central or StatePollutionControl Boards4.Educate the employees on the hazards of e-wasteEnergyConservationPolicyWe believe that energy is a key factor for the economicdevelopment and growth of a company. However, webelieve that it should be used in a responsible andenvironmentally sound manner. Tata Power iscommitted to energy conservation and deliveringconsumer services by adopting the followingprinciples:

1. Create awareness amongst employees,consumers and public about energy conservation2. Adopt energy efficient technology and increaseinvestment in all cost effective energy savingmeasures3. Conduct and arrange energy audits to identifyenergy conservation opportunities for continualimprovements4. Ensure speedy execution of energy conservationprojects in areas of operation5. Comply with energy legislation and nationalregulations6. Promote energy efficient products and services7. Provide knowledge support for energyconservation to consumers8. Promote �Demand Side Management (DSM)initiatives for our consumersWe have had no fines and penalties.GreenhouseGasEmissions&AirQualityTata Power has devised and executed measures tominimise the impact of emissions emitted from thegeneration of thermal power (carbon dioxide, sulphurdioxide and particulate matter). We have madeconsiderable investments for the construction andoperation of emissions controls at our power plantssuch as associating with several internationalorganisations and research projects devoted toreducing greenhouse gas emissions while achievinghigher levels of efficiency in performance.Carbon footprint assessment study is done every yearto help quantify our emissions and explore possibleopportunities of decreasing these emissions. The firstCarbon Footprint report was developed for thefinancial year 07-08. This was done according toguideline prescribed by theWorld Business Council forSustainable Development (WBCSD), and ISO 16040.Tata Power has set real, aggressive and forward lookingtargets for reduction of CO Intensity. Primary 2areas of focus are to improve the energy efficiency ofall our operations and to increase the renewableportion of our fuel portfolio.34 Tata Power Company Limited Sustainability Report 2010-11 35Emissions(Tonnes of CO ) 2CategoryDirect emissions from operationsIndirect emissions (due to purchaseof electricity)Other relevant emissions (Due tobusiness travel)Total Carbon Footprint of thecompany11.162 million0320111.166 millionTable 11: Total CO Emissions of the Company 2Carbon footprint of Tata Power for the year2010-11 was a total of 11.166 million tonnes ofCO2e which worked out to a CO2e intensity of

approximately 695 kg/ MWh.Figure 7: Tata Power CO Intensity (g/kWhr) 2CO Intensity (g/kWhr) 2Tata Power CO Intensity (g/kWhr) 2FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11740720700680660640760Figure 8: CO Intensity of Trombay 2Tata Power CO Intensity (g/kWh) 2CO Intensity (g/kWh) 2800790780770760750740730FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11Figure 9: CO Intensity of Jojobera 2Jojobera - CO Intensity (g/kWh) 212001100115010501000950CO Intensity (g/kWh) 2FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11Figure 10: CO Intensity of Belgaum 2FY 06-07 FY 07-08 FY 08-09 FY 09-10630625620615610605CO Intensity (g/kWh) 2Belgaum - CO Intensity (g/kWh) 2FY 10-11FY 09 FY 10 FY 11Figure 11: Tata Power overall Particulate Matter(PM) emissionsLimit FY 08Jojobera BelgaumPM emisssion (mg/Nm3)160140120100806040200

TrombayPM(mg/Nm3)Figure 12: Tata Power overall SO emissions 2Limit FY 08 FY 09 FY 10 FY 11SO emission (T/day) 2SO (T/day) 2Belgaum Trombay Jojobera6020304050100Tata Power complies with all statutory requirements tomeasure, monitor and report on suspendedparticulate matter, and oxides of sulphur (SOx) andour energy consumption by replacing and retrofittinginefficient machinery.There was no significant purchase of electricity at anyof our operating sitesEnergyEfficiencyandConservation InitiativesUsing energy efficiently is a key strategy in combatingclimate change. Tata Power supports efficient energytechnologies that have a direct impact on operationalcost and reduce future dependency on non-renewableenergy sources. A cross-functional team has beenformed at our Trombay facility to evaluate projectswith the potential for reduction in auxiliaryconsumption. Some of the projects initiated tomaximise energy conservation are:1. Replacement of seawater pumps with energy efficientalternatives.2. Variable-frequency drives for motors.3. Replacement of ordinary tube lights withT5 lamps(this will save 70,080 units per year).4. Replaced 250-wattage halogen lamps with75-wattageCFLlamps.ReducingOurTransportFootprintTata Power provides bus services for employees whowork at our power plants. Car-pooling and the use ofvideo-conferencing facilities are widely encouraged inthe company.Materials(Fuels)Fuel consumption is an important indicator ofefficiency. As a major electrical utility company in thebusiness of generating, transmitting and distributingpower, our main materials are coal, oil (includinglubricating and transformer oils) and gas. The majorraw materials used by Tata Power�s generatingdivisions, in terms of quantity, are giveninTablebelow.EnergyIn order to generate electricity, Tata Power consumesenergy , in recognition of the drawbacks of using nonrenewableenergy, we are committed to energyconservation and increasing the amount of energythat is generated from renewable sources. Through aprocess of continuous improvements, we are reducingnitrogen (NOx) emissions. We have online monitoringsystems that analyse stack emissions. As our figures

illustrate, we are well below the prescribed emissionlevels for these substances.36 Tata Power Company Limited Sustainability Report 2010-11 37Figure 13: Tata Power overall NOx emissionsLimit FY 08 FY 09 FY 10 FY 11NOx (ppm)NOx emission (ppm)Trombay Jojobera Belgaum120040060080010002000Table 12: Raw materials usageRaw material Trombay Jojobera BelgaumCoal (tonnes/MWh)Oil (tonnes/MWh)Gas (tonnes/MWh)490233152690-NANA206NANote: Figures have been rounded off.Table 14: Average Generation Efficiency ofthe Power PlantsWind Trombay Jojobera Belgaum Hydro17.62 68.86 97.00 42.07 33Location Million Units (MU) Gigajoules (GJ)TrombayJojoberaHydroBelgaumTransmission anddistribution1,605,60001,137,60025,20018,00036,000Table 13: Direct and Indirect Energy Consumption4463167510FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-1150100150200250Oil (T/MU)Oil Consumption at Belgaum

Oil (T/MU)Figure 16: Oil Consumption at BelgaumFigure 15: Coal Consumption at JojoberaFY 06-07Coal Consumption at JojoberaCoal (T/MU)300400500600700800FY 07-08 FY 08-09 FY 09-10 FY 10-11Coal (T/MU)Figure 17: Heat Rate at TrombayFY 06-07 FY 07-08 FY 08-09 FY 09-10Heat Rate (K cal/Kwh)23682385242424172451Heat Rate at TrombayYearFY 10-1123202340236023802400242024402460Figure 14: Material Consumption at TrombayFY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-116005004003002001000Coal / LSHS (T/MU)Material Consumption at TrombayCoal (T/MU) LSHS (T/MU) Gas (T/MU)Some of the energy efficiency features of a power plantwhich are tracked in the company are described asfollows:The Heat Rate of generating units is a measureof the amount of heat input required to produceone unit (kWh) of electricity.Auxiliary consumption is the energy used byfans and pumps in the company's power plants.Figure 18: Heat Rate at BelgaumHeat Rate at BelgaumFY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-111980200020202040

Heat Rate (K cal/Kwh)20302012202620062034YearFigure 19: Heat Rate at JojoberaHeat Rate at Jojobera2568267126292669267325002550260026502700Heat Rate (K cal/Kwh)FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11YearFY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11Trombay - Auxiliary ConsumptionAux. Consumption (%)33.54.545Figure 20: Auxiliary Consumption at TrombayTata Power Company Limited Sustainability Report 2010-11 39Tata Power endeavours to constantly improve theefficiency of its water usage, to increase recycling andreuse of water, and expand rainwater-harvestingefforts. Rainwater harvesting has been completed invarious transmission locations across Mumbai. Thecollected water is used for non-potable purposes. Asewage treatment plant (125m3/hr) has been setup atTrombay Power Plant, the treated water is also used fornon-potable purpose in the plant.ManagingSolidWastelA bioremediation process (with assistance fromTERI) at Trombay continues to handle sludge fromoilylIn Trombay and Jojobera, waste lubricating oilcontinues to be given to authorised agencies forrecycling and fly ash generated continues to begiven to vendors for use in Ready-Mix concrete(RMC) plants, brick-block manufacturing plants andcement plants.lBottom ash is deposited in designated ash-pondareas.lThe Jojobera station has been awarded by theJharkhand State Pollution Control Board for 100percent fly-ash utilisation.During 2010-2011, there were no spills reported at anyof the generating stations or transmission anddistribution divisions ofTataPower.From the above graphs (Fig.16-21) it is evident that by

reducing the heat-rate and auxiliary powerconsumption of the power plants, a significant amountof energy has been saved.WaterWe recognise the criticality of protecting water sourcesand conserving water, given its importance to peopleeverywhere, to agriculture and to industry. None ofour manufacturing facilities utilize PCBs in any of theprocesses.At Tata Power�s Trombay plant, water is suppliedthrough the local municipal connection and seawateris used for condenser cooling. This water gets a fewdegrees hotter during the condenser-cooling process;consequently, it is released back into the sea only afterits temperature is no more than 70C higher than thesea water. This is achieved by discharging the waterinto a large discharge channel. During the passage ofwater through this channel and into the sea, the watertemperature reduces.At Jojobera, water is supplied by way of a municipalconnection. At Belgaum, water is supplied through amunicipal connection and a rainwater harvestingsystem is also used.Our hydro units draw surface water from lakes. Waterwithdrawal at our locations does not pose any knownthreat to water bodies or plant and animal species. Atall our office complexes, water consumption is mainlyfor drinking and sanitation purposes.The treated water in Trombay and Jojobera is used forgardening and irrigation purposes. De-mineralization(DM) effluents and Boiler blow-down from theTrombay power station is discharged into sea aftermeeting norms stipulated by the MaharashtraPollution Control Board (MPCB). Condenser coolingwater at Trombay is discharged into the sea afterpassing through the cooling water channel tomaintain the temperature stipulatedbytheMPCB.TataPower endeavours to constantly improve theefficiency of its water usage, to increase recycling andreuse of water, and expand rainwater-harvestingeffortsThere is no discharge of wastewater fromJojoberaandBelgaum; the treated water is used for gardening andirrigation purpose.3899.51010.511FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11Jojobera - Auxiliary ConsumptionAux. Consumption (%)Figure 21: Auxiliary Consumption at JojoberaFY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-111.21.41.61.8Aux. Consumption (%)

Belgaum - Auxiliary ConsumptionFigure 22: Auxiliary Consumption at BelgaumTrombay Jojobera Belgaum HydrosTable 15: Water Consumption at all Locations3 (m /MWhr)WatersourceMunicipalSurfaceSea water0.21-1383.42--0.85---0.83-Figure 23: Water Consumption at Trombay0.100.120.140.160.180.200.220.240.263 Raw water Consumption (m /MWh)Water Consumption at TrombayFY 07-08 FY 08-09 FY 09-10 FY 10-113.153.203.253.303.353.403.45FY 07-08 FY 08-09 FY 09-10 FY 10-11Water Consumption at Jojobera3 Raw water Consumption (m /MWh)Figure 24: Water Consumption at JojoberaFigure 25: Water Consumption at Belgaum0.750.770.790.830.850.870.89FY 07-08 FY 08-09 FY 09-10 FY 10-11Water Consumption at Belgaum3 Raw water Consumption (m /MWh)0.81Station Quantity (m3/MWh)Trombay

Hydro Units1388303 Table 16: TotalWater Usage (m /MWh)Figure 26: Ash Generated at Trombay0501002002503003502007-08 2008-09 2009-10 2010-11Ash Generated (kg/MWh)150Ash Generated at Trombay252 248 292 300Figure 27: Ash Generated at Jojobera1023567892007-08Ash Generated (kg/MWh)43.665.088.135.742008-09 2009-10 2010-11Ash Generated at JojoberaStation Hazardous Non-HazardousWaste (kg/MWh)WasteFly ash Bottom ash14 t/annum27 t/annum340 t/annum0.05t/annumof oil6.50240.16--TrombayJojoberaBelgaumHydro1.6360.04--Table 17: Waste Generated Across the locationsespecially in the catchment areas� fringes, where alarge number of people reside. Systematic plantationefforts have seen lands that were once barren come

alive with greenery.Afforestation has helped Tata Power in many ways.First, it has increased the water-retention capacity ofthe land, rejuvenating numerous wells in the 107villages downstream of the catchment areas andbenefiting some 20,000 people. Second, the fauna ofthe area has increased significantly. And third, it hasprovided us with a great ambience and sylvansurroundings to conduct environmental educationactivities.In the last two years, 19.6lakh trees have been plantedin and around the operating plants/ projects. This hassignificantly increased the water table in lakes. It hasalso created employment opportunity for local peopleby means of nursery and plantation of saplings. OnWorld Environment Day, Tata Power pledged toprotect the environment by planting trees, creatingawareness, campaigning for free plastic etc.Tata Power Company Limited Sustainability Report 2010-11 41Disposal of E-wasteWe have E-waste management policy derived fromcorporate Environment Policy, which reaffirms ourcommitment to environment protection by ensuringproper management of e-waste. As we are ahead inadopting technologies in all areas of operations, thereis substantial generation of e-waste. In order todispose off e-waste in responsible manner we arecompiling data for its authorized disposal in entireMumbai operations.ComplianceTata Power takes all necessary approvals fromgovernment authorities and regulators before startingany project. Environmental compliance is monitoredat all stages of the project�s execution and operation.During the reporting period, no incident of noncompliancewas reported and no fines were imposedonTataPower.The aspects discussed above on emission compliance,water utilization, and waste generation, have beenintegrated into a �Green Manufacturing Index� (GMI).The various parameters specific to each division orlocation have been included in the GMI. To score highon the index, each location has to excel in the targetsthat are set over the baseline. The GMI is monitoredmonthly in the review by division heads up to theMD.Expenditure for Environment pollution abatement&monitoringTata Power spends more than Rs.8 crore every year onpollution control and monitoring.40Tata Power's hydroelectric plants are located inthe biodiversity-rich Western Ghats ofMaharashtra. Some of our operations in thisregion are almost 100 years old, and we havebeen actively involved in conservation effortsand the protection of biodiversity in thecatchment areas.BiodiversityThe catchment areas around the lakes are blessed witha large assortment of flora and fauna. Leopards,

porcupines, mouse deer, pangolins and soft-shellturtles are fairly common in these areas. A half-day tripcan yield an observed bird list of about 100 species.Tata Power has undertaken efforts to document thebiodiversity of the entire catchment area.100 species of Birds, 16 species of Butterflies,55species of Plants,22species of Reptiles.Birds like the Malabar parakeet, White cheeked barbetetc which are endemic to the Western Ghats are alsospotted in our catchment areas.Protection of critically endangered bird species like -IndianWhite rumpedVulture&Oriental Darter PaintedStork.Rescuing and rehabilitation of orphaned and injuredwildlife like Mouse Deer, Pangolin, Soft-shelled turtles,egrets,RedSpur Fowl,Wild boars, Barking DeerOver 50,000 species of butterflies congregate eachyear at one specific place inside the Tata Powerpremises, a unique phenomenon that occurs in fewplaces in the world. We have marked this site for thelong-term monitoring and protection of this butterfly.Tata Power has developed two water bodies ashabitats for migratory water birds. A small hideprovides a terrific opportunity for bird lovers to seethese birds without disturbing themBooks released on the Biodiversity of our Catchmentregions.Birds of Lonavala and Khandala - which details 328species of birds, and 25 each of butterflies, reptiles,amphibians and mammals. All the birds sighted andrecorded in the region ti l l date has beenphotographically illustrated. It gives common names,scientific names, habits, habitats, food choices, nestingdetails and key identification features of its subjects.A revised edition of the book on birds of Lonavala &Khandala was again published which includedadditional information on nesting habits of birds.These books have been co-authored by Mr. VivekVishwasrao from our Hydro division.Wild Orchids of NorthernWestern Ghats was releasedthis year.This is the first photographic guide to the wildorchids of this important Hot spot.The book highlights99 valuable species of the wild orchids which includes41 endemics and 44 threatened species with over 1400colour photographs. The book covers a larger area ofMaharashtraGoaandBelgaum.Presently a study on the aquatic biodiversity of all ourhydro lakes is in progress and the results areencouraging.AfforestationThere are six lakes in the vicinity of Tata Power�s HydroGenerating stations which contribute around 475MWof power to Mumbai and its adjacent areas. The lakesare situated in lush green biodiversity rich areas. Thecatchment areas are under the canopy of Tata Power�senvironment policy, in which Afforestationprogrammes play an important part.Tata Power spends more than Rs.3million a year onafforestation projects since early 1970s - with the focuson planting indigenous and endangered species like

the Saraca asoka. Fuel-wood species are also planted,Total Expenditure for pollutionabatement and monitoringRs. LakhsFY 08-09 FY 09-10 FY 10-11500600700800900Figure 28: Total Expenditure for PollutionAbatement and MonitoringTata Power Company Limited Sustainability Report 2010-11 43FlamingosatTrombayTata Power�s Trombay power station has preserved thenatural habitat for flamingos, which migrate in winterto the marshy areas near the facility to feed on weedsthat grow in the submerged water.In collaboration with the Bombay Natural HistorySociety (BNHS), a study of flamingos will be conductedin the tidal waters ofMumbai�s Mahul creek and nearbyareas.The objective of the Flamingo study are:lEstimate the population of flamingoslUnderstand the food and feeding habitslGauge the effect of pollution on the populationtrends of flamingos near at sewrilUnderstand why the migratory flamingos come totheTrombay-Sewri belt.lDetail the effects of climate change on themigratory patterns of flamingosOther conservations efforts ofTataPowerMahseer-KingofGameFishAs part of an eco-restoration and eco-developmentproject for the lakes, farming of mahseers and theIndian trout was undertaken in the 1970s. The world famousGolden Mahseer was one of the four Mahseerspecies that were bred. Tata Power acomplishedsomething quite remarkable in conservation with thisendeavour, and we continue to be recognized for thisachievement.In the years since Tata Power started breeding theMahseer, we have developed a simple breeding andhatchery technology for the production of fry andfinger kings on a large scale. The company has till dateproduced in excess of 10 million seed of Mahseer anddistributed them all over India.Earlier a book on the conservation of the MightyMahseer of India was released by Tata Power. TataPower has plans to collaborate with an initiative takenby an NGO for reviving the Mahseer in the Indrayaniriver.42Every year, 6-700000 saplings are planted. Collegestudents and rural women have also participated inour tree-plantation programmes, which provide anideal opportunity to educate them aboutenvironmental conservation.Tata Power maintains a large garden at Walvan,spending about Rs.5million a year for this purpose.The

garden is a standout model for the promotion oforganic farming, given that no pesticides or fertilizersgo into its upkeep. It is used primarily to impartenvironmental education, besides which the companyalso gives training on medicinal plants to the farmersof neighbouring villages. The training, aimed atresearch and development and providing marketlinkages, has helped farmers grow medicinal plants.Biodiversity mapping of existing locations will becompleted soon and based on the mapping exerciseplans for conservation will be laid out. All newlocations ofTata Power will be mapped for biodiversityand green belt will be developed as per MoEFnotification1,30,00,000 saplings have been planted by Tata Powersince 1970!EnvironmentalEducationTheWalvan garden has helped create awareness aboutthe environment among the numerous schoolchildrenand schoolteachers who have gone there for visits.Around 3,000 students and 200 teachers continue tocome to the garden every year to learn about differenttypes of medicinal plants, indoor and outdoor flora,gardening techniques, etc. Also, experiments areconducted on medicinal plants to help local farmerscultivate them.Tata Power Company Limited Sustainability Report 2010-11 45ManagementApproachTata Power continues to follow the conventions of theInternational Labour Organization. We continue tohold initiatives for our employees like inductiontraining programs, interactive sessions, and intranetprograms on policies, health, safety, environment andsustainability. We also hold annual performanceappraisals of our employees to determine the qualityof their work as well as the overall achievements of thecompany.OurPeople,OurAssetOur Human Resources department (HR) follows threeobjectives of recruiting quality people, identifyingtalent within the company, and ensuring the retentionof employees. The senior-most officer responsible forlabour practices heads the corporate HR departments.Each head of the human resources department fromdistinct Company units reports to the corporate headon any updates or local requirements.ManpowerTata Power has established a process to ensure that weattract and hire people with personal attributes andaspirations that closely mirror our corporate culture.Tosupport our global business, we engage people withdiverse expertise and knowledge. Continuous trainingand development opportunities are offered to equipus with the capability and skill to achieve best businessresults for the Company. The competitiveremuneration and comprehensive employee wellnessprogrammes are keys to attract and retain talents.EqualOpportunitiesBeing an equal opportunity employer, we arecommitted to providing equal opportunities in

relation to all human resources matters of anyindividual or in any other activities duringemployment including recruitment, training,promotion, transfer, compensation, benefits provisionand termination, regardless of age, gender, physical ormental state, marital status, family status, race, color,nationality, religion, political affiliation or sexualorientation etc. Our employees are recognized andrewarded according to their contribution,performance and skill.SuccessionPlanningTata Power has a well defined Succession Planningprocess. Successors are identified for critical positionsacrossTataPower.These critical positions are identifiedbased on their impact to the business operations,bottom line, span of control over people andprocesses. For each critical position, there are threesuccessors identified �Ready Now (Drop Dead)�, Readyin 1-2 years, Ready in 3-5 years�. Development plans areprepared for these successors so that they can takecharge of the critical positions within the defined timeframe and are regularly monitored for effectiveimplementation. There has been a stronger focus onidentifying and developing successors for criticalpositions where the current incumbents will beretiring in next five years.Figure 29: TotalWorkforce in the companyTotalWorkforce in the company3246219Female MaleFigure 30: Total Workforce in the companyBy Employment TypeTotalWorkforce by Employment Type14652000Officer StaffFigure 31: Employees by AgeEmployees by age (2010-2011)941,27%1000,29%996,29%528,15%20-30 30-40 40-50 50-60Labour Practicesand Human RightsTata Power Company Limited Sustainability Report 2010-11 47business requirements. The Union is consulted by theManagement on any significant change within theCompany. The practice of continual engagement andcommunication with the Union regarding theCompany�s policies, procedures have ensuredharmonious relations. Union Office Bearers areregularly updated on the business scenario andgrowth plans. Regular communication cascades withthe employees on the shop floor takes place.The Tata Code of Conduct (TCoC) is our ethicalfoundation- An elaborate TCOC implementation andinvestigation structure is in place. Any violation isinvestigated with direct supervision by Senior

Leadership.Apart from this, we have an on line legal compliancemonitoring system, to ensure compliance with labourlaws. Compliances are monitored by an apexcommittee with top management participation. Thereare internal and external audits to verify compliancesat shop floor level. In accordance with law,we also haveStanding Orders in place, which provides guidance indisciplinary matters. All instances of indiscipline aredealt with in accordance with the procedure laid downin the Standing Orders. The labour Union and allemployees covered by the Standing Orders areconversant with the problems.Structured meetings take place with local Unionrepresentatives where issues, including generalbusiness communication,are addressed.Grievances of individual employees are addressedthrough the Union, or through the locational Head.There have been no lockouts or strikes at Tata Powerwhich is an indicator of the mutual respect and cordialrelations between the company and its employees.Wehave a formal promotion policy in place for Unionisedemployees to ensure career development.OccupationalHealthandSafetyTata Power believes that the safety of its employees,outside work force and larger community of utmostimportance. In order to maintain high safety standardsTata Power benchmarked its safety processes withworld class safety Processes of Dupont. Dupont expertservices were utilized for assessing the safetystandards, developing trainers/skills for enhancementof safety culture across Tata Power. The senior leadersof Tata Power conduct site safety visits to ensure thatsafe practices are followed at all locations.1. Awards & Accreditionsa. Jojobera Division was confered with ShreshthaSuraksha Puraskar from National Safety Councilof Indiab. Trombay Division was bestowed with GreentechGoldaward for safety2. SafetyManagementSysem(SMS)An integrated Safety Management System (SMS)based on Occupational Heal th & SafetyAdministration (OSHA) Process Safety Management(PSM) model was developed and implementedacrossTataPower.3. Audits&InspectionsAudit is an improvement tool. Safety audits atproject sites, Hazard Identification and RiskAssessment (HIRA) , Hazard hunt , safetyobservations too detect safe and unsafe conditionsand behaviours during work, Daily IncidentsReports (DIR) are submitted by all locations to theCorporate Safety department, such practices arefollowed to ensure Safe conditions. The followingtechnical safety audits were conducted duringFY�11:1. Fuel oil unloading, storage & handling safetyaudit inBelgaum2. Electrical Safety audit in LA Receiving stations

andinMundra3. Gas and liquid fuel storage handling system auditin Lodhivali4. Fire safety audit in LA, Jojbera,Maithon&CGPL5. New Permit To Work (PTW) system audit wasintroduced6. Safety inspections in Carnac, Back bay andDharavi offices4. Training/Capability building:Building safety capability is one of the key areas offocus.The following were the examples of few need basedtraining provided.1. Pre Start-Up Safety Review (PSSR) in Maithon &Mundra2. Construction Industry Training Board (CITB), UKbased safety training for middle and first level linemanagers/supervisors of MaithonandMundra3. New safety modules were introduced in NationalInstitute of Construction Management andResearch (NICMAR) Executive Developmentprogram4. Office safety training was provided to Carnac andBombay House employeesPeople RetentionTata Power has an average attrition rate of 4 percent(the industry average is 12 percent). As a set of plannedinitiatives, identified Job Rotation are carried outinternally across various functions and locations.Also Employees are given challenging assignments toimprove Engagement Level, Online PerformanceManagement System (PMS), Setting up of Key ResultAreas (KRA), Goals Cascaded from Organization BSCand Individual Performance is linked to Reward /Bonus in aTransparent manner, Competency MappingandGapidentification initiateTraining needs for futureLeaders,Employees are then sponsored for executive MBAprogrammes and for �group catalyst� programmes,Senior Employees are offered Board posting insubsidiary companies (with enhanced responsibilities)for job-enrichment Employee EngagementSatisfaction surveys are carried out on Annual Basis.Post survey feedback sessions are conducted acrossOrganisation for developing action Plans forimprovements. This culture of Transparency, Care,Openness, Recognitions and Candid Feedback helps inmanaging the attrition.The minimum notice period forany operational changes is about30days.LabourandManagementRelationsWe respect the right of our employees to formassociations in accordance with applicable TradeUnion laws. None of our operations pose any threat orrisk to the freedom of association and collectivebargaining.TheTradeUnion is permitted to conduct itselections on our premises and appropriate time off isgranted to employees to participate in the Unionspolling process. The elected Union Office Bearers arerecognized by the Management as the representativebody of the employees. The recognized Trade Union isa party to decide on wages, allowances and

benefits/welfare of its members, through collectivebargaining process. There are regular meetingsbetween management representatives andrepresentatives of the Trade Union. The Union is alsopermitted to hold its internal meetings on ourpremises with prior permission.All of Tata Power�s unionised employees, whocomprise about 50 percent of the company�spermanent workforce, are members of an internaltrade union. It is pertinent to note that the trade unionhas no political affiliations. They are covered by fouryear collective bargaining agreements, which coverSalary, Allowances & Benefits and also includeproductivity clauses, which are in line with the46Figure 32: Attrition Rate (%) FY-11Attrition Rate (%) for FY 2010-11Male Female3.76%11.86%Figure 33: Age-wise Attrition FY11Age wise Attrition No. for FY 2010-1120-30 50-60 40-5012040608010020030-401037 825LocationsOfficer Staff Grand TotalJojobera% Retirements FY11TrombayBelgaum40%15%25%30%35%10%0%%Retirement5%20%TransmissionDistributionHydrosFigure 34: Job-wise and location-wise% Retirements FY11Tata Power Company Limited Sustainability Report 2010-11 49to pick up scattered nails for improvinghousekeeping&to reduce foot injuriesc. Inherently safer Life line arrangements wereprovided for working on PowerTransformers and

100kVGODsHealthTata Power tracks the health of its employees throughannual checkups conducted by resident medicalofficers. Post examination advice and counseling isoffered to the employees to improve their healthindicators. Prior to joining the company, prospectiveemployees have to undergo pre-employment medicalcheck-ups to determine their suitability for the job.Thecontract staff is also subjected to similar medicalcheckups.Special medical tests are conducted based on locationof posting: for example, Audiometry test is performedon employees at our Power Generating units andSpirometry test is conducted on employees working inthe coal handling plant to check their lung function.Medical facilities are available at all our locations torespond quickly in case of health-related incidents.Additionally, health-awareness programs areconducted regularly for employees.TheVisionMission andValues statement of Tata Powercovers the health and safety aspects of all itsemployees which includes the union categorymembers of theCompany.TrainingandEducationWe continue to strive to create an environment thatsupports continuous learning through training anddevelopment.Employee development is directly linked with theorganizational growth.With this philosophy, a varietyof learning and development initiatives are designedand rolled out in keeping with the emergingrequirements of a growing organization. Sustainabilityforms an important part of the training curriculum.Thenew GETs are exposed to the latest in greentechnology during their induction training along withinteraction with the sustainability group.Sustainability champions are identified and trainingimparted to them in collaboration with TQMS. Variousknowledge sharing sessions are organized undervarious platforms likeTARANGwhich help in impartingand creating the culture of sustainability.The various initiatives undertaken by our Training &Education team for the employee developmentincludes the following major initiatives:To cope up with our businessgrowth we need to develop themanagerial and leadership skills inour employees to build theleadership pipeline. STEP has been introduced todevelop the managerial skills of the employees forhandling greater responsibilities.Gyan Jyoti - a self-paced elearningsystem covers themodules in General Managementand has been introduced in dualcollaboration with TMTC and Harvard BusinessPublishing. The system has been designed keeping inview participants, who like to learn at their own pace.The �Gyan Jyoti� e-learning system has 42 general

management courses to choose from.WORK INTEGRATED LEARNINGPROGRAM: Technical competencyis one of the prime requirementsfor the organization. This year, wehave partnered with Birla Institute of Technology andScience (BITS), Pilani in Rajasthan and initiated aunique scheme called the Work Integrated LearningProgram (WILP) for our diploma engineers. Thisconsists of three year course spread across sixsemesters and would enable the successful candidatesto attain a B.S (Power Engineering) from BITS whileworking full time.ACE is the in-house fast trackprogram at Tata Power started 3year s ago. I t provides anopportunity to young officers notonly to accelerate career growth but also exploredifferent work areas and develop their potential.5. SMS internal auditor course was conductedcovering 20 participants from various Tata Powerassets6. A short safety movie in Hindi was produced for theeducation of contract workers7. Apart from the above, number of Job-need basedsafety programs were delivered by SafetyCapability Building sub-committee.8. Extensive safety interventions in the form of safetycapability, quiz, visuals like posters and charts,safety day celebrations, safety manuals are used tospread awareness on safety.Along with safety audits and inspections of all thelocations, periodic safety trainings and workshops areheld for contractors and sub-contractors in-order tosensitize them about various safety issues.5. SafetyMeets&collaborations:Three tier safety committees (Apex, Corporate anddivision level) have been formed to review safetyperformance at all three levels. These committeespropose and deploy improvements in variousprocesses impacting safety. At the local divisionallevels, safety stewards and co-ordinators ofcontractors contribute in safety monitoring andincreasing safety awareness. The following meetswere organised to synergise the safety efforts withinTataPower.1. Construction safety meet was organized atMaithonon26thand27th April, 2010.2. Safety Strategy meet was organized on 7th May,2010whichwasfacilitatedbyDuPont3. Annual Safety Meet of safety professionals wasconducted, focused action plan was agreed6. NewPolicies&procedures:a. Consequence Management Policy (Safety) wasimplemented for managing willful safetyviolationsb. Root Cause Analysis (RCA) was introduced inSURAKSHAsoftwarec. Disaster Management Plan was revised andupdated,mock drills conducted

d. Working on live equipment procedure etc7. Safety tools&equipment:a. Technical guidance for selection, procurementand use of safety tools and equipment wereissued.b. Arc Suits (415V - 6.6 KV) for Electrical OperationalJobs were introduced, Usage of Insulated fiberglass ladders and in sub-stations wereintroduced.8. RiskAssessment/JSAJob Safety Analysis (JSA) competitions wereorganised across Tata Power to raise the awarenesson this critical risk assessment process.9. Application of technology for safetyTata Power strives to use Best Available Technologyfor the advent of safety. Few examples area.65 GPS based Vehicle Tracking System deviceswere provided on vehicles of Tata Power /oncontract of Tata Power plying in side Jojoberaplant and cityb. Magnetic sticks were introduced at project sites48Table 18: Tata Power�s accident statistics for FY11Frequency rateFatal accidentsFirst-aid casesNear missesTrombay Jojobera BelgaumA B A B A B0.560271910.291241002690062001110039Frequency rateFatal accidentsFirst-aid casesNear missesHydro Transmission DistributionA B A B A B0

02541.75002001249006402.9603335.050414Notes:A: Tata Power employeesB: Contract employeesFrequency rate is calculated as the number of reportable accidentsper million man-hours worked as per IS 3786:1983 standards. Figure 36: Distribution of Training Man-hoursacross various levelsTraining Manhour Distribution AcrossVarious LevelsAGM & AboveManagers & BelowTechnical staffNon Tech StaffSr. and Cheif Manager68%4%6%2%20%Figure 35: Frequency RateFrequency RateTrombay Hydros Distribution0.780.384.29Tata Power Company Limited Sustainability Report 2010-11 51age, caste, sex, religion or on any other ground. Thiszero-discrimination principle extends to recruitment,employee development and the rewarding ofindividual performance. There were no incidents ofdiscrimination at Tata Power during the reportingperiod.We respect the right of our employees to formassociations in accordance with applicable laws andTataCodeofConduct.None of our operations pose anythreat or risk to the freedom of association andcollective bargaining. The total number of unionised

employees covered by collective bargainingagreements is 1,480.Tata Power strictly prohibits child labour. Every newrecruit is required to submit proof of age at the time ofjoining. The risk of children being employed exists insome operations carried out by contract labour. Tomake certain that this does not happen, care andcaution is used at the time of issuing entry passes tooperational areas to contract labourers. Tata Powerensures that its contractors do not to violate childlabour laws.At none of our operations has there been any incidentof forced or compulsory labour. On joining, thecompany and employees sign an agreement thatclearly stipulates the terms and conditions of theirassociation with Tata Power. They are free to leave thecompany if and when they so desire, according toconditions jointly agreed upon.There are no indigenous people or groups residingaround Tata Power�s plant locations; consequently,there is no possibility of the company�s operationsaffecting them.Currently there is no formal screening at Tata Power ofsuppliers and contractors for human rights issues andinfringements. However, we ensure that our suppliersand contractors do not violate basic human rightswhile carrying out work in our premises, abide by allsafety standards and statutory Regulations.All security personnel when recruited in the companyare trained in theCompany�s aspects ofHumanRights.�FUSION� has been rolled out with the objective ofcreating a fusion of rich technical knowledge of oursenior employees with the ability of our young talentto learn and apply.The objective of fusion includes:lTo develop young technical talent by leveraging thetechnical competence available with experiencedemployees ofTataPowerlTo make �Tata Power� a technologically competentorganization in power sectorlTo lead and provide technology services to otherorganization in power sectorAs the organization grows anddiversifies into variousgeographies both in India andglobally, it becomes of utmostimportance to disseminate the knowledge andexper iences . TARANG ( Techni cal AcumenRejuvenation - Aspire, Nurture and Grow) is one of themajor initiatives launched to achieve the aboveobjective. Tarang sessions are conducted as webinarsacross all locations.A study on Career Progression wascarried out this year and a �CareerMap Manual� which indicates�what are the various careeroptions available, what competencies are required todevelop these career options�, has been prepared. Ithelps the employees to make the career decisions forthe mutual benefit of the individual and theorganization. It is an attempt to facilitate judicious and

correct career decisions amalgamated with businessneeds and development of employees.�SPARSH - Touching Lives�celebrated its second anniversaryin January 2011. This in-housenewsletter for HR departmenttries to reach out to the employees across theorganization. It captures the people initiatives atdifferent divisions and departments and gives aplatform for the readers to share their thoughts. Aquarterly newsletter; it promises infotainment for itsreaders and exciting prizes for the winners in the funsegment.PerformanceManagementSystem(PMS)Performance Management System at Tata Power isbased on Balanced Scorecard and evaluatesindividuals on both Key Result Areas (KRAs) as well asKey Behavioural Attributes (KBAs). The Corporate BSCis cascaded through Strategy Development Matrix(SDM) workshops into individual KRAs by using theSDM tool. The performance of the individual isevaluated based on the achievement vis-à-vis theKRAsand potential assessment is conducted through KBAswhich arebasedonTata LeadershipPractices.As a step further, PMScommunicationsessions are alsoconducted across locations to communicate theseimprovisations and to bring in a clear understandingabout the various aspects of thePMSprocess.Recently the Company has started a separate PMSprocess for unionized staff also based on quality andquantity of work, workplace attitude and participationin various organizational initiatives. This process hasbeen successfully implemented for last two years.PeopleDevelopmentandTalentManagementPeople Planning Meetings (PPMs): As part of the talentmanagement process,TataPower conducts systematicand periodic discussions for identifying high potentialmanagerial employees. These discussions are held toreview the depth and width of managerial talent.Theyare held annually and followed up with systematicdevelopment plans for growth of identified highpotential officers which are regularly tracked. Last year,total of 125 high potential officers have been identifiedacross all levels in Tata Power. The below mentionedchart shows the talent pool in Tata Power hasstrengthened over the past5years.HumanRightsTata Power deals with internal and externalstakeholders on individual merit, and is unswerving inmaking sure that its workplaces are free of all forms ofdiscrimination and harassment, whether based on50Figure 37: Talent Identified in the companyover the last 5 years020406080100

120140FY 07 FY 08 FY 09 FY10 FY 11251058473125Talent Identified over the last 5 yearF U SI O NLOW OF NIQUE KILLNTELLIGENCE FROM LD TO EWSocialPerformanceTata Power Company Limited Sustainability Report 2010-11 53ManagementApproachThe mission of the company is to become the mostadmired company delivering sustainable value to allstakeholders including care for the community. Socialresponsibility has become part of theTata ethos thanksto management support and involvement, thoughtfulplanning and deployment of resources, engagementof employees and the sharing of knowledge.Following the thought of our founder, Mr. JamshedjiTata that�in a free enterprise, the community is not justanother stakeholder in the business but is in fact thevery purpose of its existence�, we believe that thecommunity around us gives us valuable opportunitiesto learn and work together for growth of business andcommunity development. Therefore, severaldevelopment programmes have been implementedunder triple bottom line (Adding Economic Value,Harmonising Environmental Factors and BuildingSocial Capital in the community) aiming at buildingtrust and improving the quality of life in and aroundthe places where we operate. Anti-competitivebehaviour is addressed in the Tata Code of Conductdocument and is applicable to all employees of TatacompaniesincludingTataPower.The Community Relations (CR) Department at TataPower was set up in 2007, the body driving andoverseeing all our social development initiatives. Itfunctions as per Tata Power�s vision, mission, CR policyand CR strategy and guided by Sustainability AdvisoryCouncil (SAC). We focus our activities in the areas oflivelihood/ income generation, environment, energy,education, health, infrastructure and social welfare. Tocreate a sense of ownership and to ensure that projectsand programmes in each of these spheres aresustained, Tata Power strives to get local communitiesinvolved in them.SustainabilityAdvisoryCouncil(SAC)The year saw Community Relations at Tata Powerinitiate a consultative process to develop the strategiccanvass for this function. The strategy is currentlybeing reviewed by the leadership.With a view to bringin external views and insights into the sustainabilityprocess, a Sustainability Advisory Council (SAC) wasconstituted to provide thought leadership, guidance,

advice and policies to drive the Sustainability agendaof the organization. SAC comprises of senior leaders ofTata Power and independent external members withexpertise in environmental policy, biodiversity andcoastal regulations. SAC is led by the ManagingDirector.CommunityRelations(CR)StrategyTata Power is developing Community RelationsStrategy keeping in mind the business process andgrowth path formulated until 2017. This processincludes referring to Tata Group�s philosophy, TataPower enterprise strategy, sustainability model, CRpolicy, risk etc. It includes inputs from Tata Power�svarious functional heads, plant/ project heads, TataCommunity Council Initiative (TCCI) members andexternal experts.The scope of the strategy is as follows:lThis strategy is for the company�s relations withcommunities and so would be owned and executedby various departments including CR division asalso Joint Ventures and other operations bothwithin India and internationally, wherever TataPower has an interestlThe scope is from 2010 to 2017, coterminous withenterprise strategy of the company.lIt aspires to demonstrate leadership with care tomitigate risks, explore opportunities, growth andinnovations in community domain.lWhile the focus is on community issues, the scopeincludes stakeholder perspectives to communitiesThe CR strategy is currently being discussed by theleadership. Subsequently, each plant/ project is in theprocess of preparing their strategy for executionincluding stakeholder engagement.InternalCRProcessTata Power designed new internal processes(Enterprise Process Model � EPM and StandardOperating Procedures-SOP) for deployment of CRstrategy. These processes provide a completeoverview of how the CR department would functionsystematically by standardising all activities. There arethree new processes (1)To improve living conditions ofcommunities of affected villages in projects, (2)To be aneighbour of choice to communities aroundoperations and (3) To learn and co-create caringsolutions (including employee volunteering) internalprocesses with detailed steps, timeframe andresponsibility for each and every activity have beenprepared.DemographyThe Community Relations ofTata Power is operating in176 villages of 14 districts in seven states of India. Itcovers 50,353 households and 2,80,826 population,where 12% belong to Scheduled Caste (SC), 18%Scheduled Tribe (ST) and remaining 41% OtherBackward Classes (OBC) and remaining 29% belong toGeneral community.Income Generation/ LivelihoodA total 1305 youth have undergone skill developmenttraining through initiatives like the BPO, Electrician,Welder, Driving etc. Currently, 214 youth have been

employed at our rural BPO. Beyond this, 1619 villagershave been supported with high yield seeds, mangosaplings, sericulture etc. There are a total of 116 Self-Help Groupswith 1773members,whohave saved overRs.1.2million including 7 groups formed by 150members during the year. The SHG leaders have beentrained to manage their groups. A Gaushala (Cattleshed) supported by Tata Power at Mundra is feedingover 2000 cattle daily. These activities have helped toincrease income of local people.Supplyof Milk toManpowerMr Rabari Lakhu Lakhmir(farmer, 40 years) fromVandh village, Mumdra,Gujrat used to support hisfamily by supplying milk.After selling his land, hejoined as a worker in TataPower. Now, he has beenawarded the work ofman power supply ,maintenance work at the labour colony and green beltdevelopment at field hostel. He thanks Tata Power forTata Power Company Limited Sustainability Report 2010-11 55one crore rupees. HIV/AIDS Awareness programs havereached out to nearly 12 lakh people in urban areasespecially among transport staff (vendors andsuppliers). Drinking water facilities have been createdthrough 44 bore wells, supporting 16 villages for pipeddrinking water and renovating ponds. 204 sanitationunits (toilet and bathing rooms) were constructed forneedy villages. This has facilitated to build socialcapital around operational areas by building trust ofcommunity.EducationHealth care education is another important pillar ofdevelopment. Tata Power has started specialeducation programs for its communities. Its jointventure company, Maithon Power Limited (MPL) hascovered all schools of Nirsa block in Jharkhand districtthus benefiting over 13,000 students. A total of 762community volunteers have been identified, trainedand attached to government schools for providingspecial education. A total of 482 students have beenprovided computer education.InfrastructureDevelopmentTo enhance community infrastructure, a total of 57class rooms have been constructed. In addition tothree community halls have been built to organizecommunity events etc during the past two years. Athe support and guidance for substantially increasinghis annual income almost 10 times. Few others havealso started supplying essential materials.EnergySeveral villages around our operation don�t haveelectricity and demand us to provide the same.Therefore, Tata Power has installed around 200 solarlights in last two years. This has enhanced electricity inunreachable areas and reduced community risks too.In addition to that, we have started electrical safety

and energy conservation awareness programsreaching out to more than 8000 students. This hasincreased safety concern among people living undertransmission lines and saving consumption ofelectricity too. A total of 2000 efficient chullah and 11bio-gas plants have been provided to createalternative energy sources in rural areas for ourcommunity.HealthcareDue to the lack of basic health care infrastructures inmost of our villages, Tata Power gives specialimportance to its health care programs.Tata Power hasstarted mobile medical vans, which provide health carefacilities at the doorstep in the interiors of villages.Health camps have benefited around 39000 villagersin last two years saving opportunity cost approx. by54Tata Power Company Limited Sustainability Report 2010-11 57ComplianceTata Power adheres to an ethical professional code,complying with all applicable laws and regulations.total of 11.6 Kmroads have been laid down and 15 pickup sheds have been built to give shelter to passengersin there by helping to improve commuting facility.SocialWelfareSo far, a total of 952 volunteers have spent 12,757 manhoursfor various social-environmental causes such asincreasing awareness on HIV/AIDS, electrical safetyand energy conservation, environmental care,working with senior citizens, orphans and blindpeople. A total of 1155 youths have participated invarious sportsProgrammes.National R&R policies are followed and internal R&Rpolicy is being developed. In case of displacement forany new projects, compensation by the means ofproperty, economic welfare (livelihood, land) isprovided.BudgetImpactAssessmentTata Power approached the leading social scienceinstitute, Tata Institute of Social Sciences (TISS),Mumbai to carry out social audit of CommunityRelations for the year 2009-2010 and 2010-2011. TISShas conducted the study in five locations ofTata Power(Hydros in Maharashtra, Trombay in Mumbai, Mundrain Gujarat, Maithon in Jharkhand and only one year atJojobera in Jharkhand).562010-11 2009-10 2008-09Social & CommunityDevelopment Projects5.26 6.84 3.48Table 19: Budget used for CR initiatives in FY 11Need Satisfaction CSIIncome GenCSI HydrosEnergy 90.040.060.070.0

80.030.00.010.050.0EnvironmentEducationInfrastructure20.0Health 67.958.375.173.576.067.474.278.184.779.056.544.568.1Figure 38: Community Satisfaction Index (CSI)of Hydros of last two yearsNeed Satisfaction CSIIncomeGenerationCSI HydrosEnergy40.060.080.00.0EnvironmentEducationInfrastructure20.0Health61.857.669.954.072.667.2 66.072.568.873.261.9 64.6 64.8There were no financial on non-monetary sanctionsimposed on the company in 2010-2011.ProductResponsibilityTata Power Company Limited Sustainability Report 2010-11 59ManagementApproachTata Power is committed to provide safe and reliablesupply to its customers, by adhering to applicablestatutory rules and regulations. Tata Power has postedvital SAFETY TIPS for the benefit of its customersthrough its website. A unique feature of the TataPower's customer care is the variety of services which

are available to its clients:1. Energy audit, energy conservation study andenergy management2. System Protection Studies, for parallel operationof the captive generation or diesel generating setswith the grid supply3. Review of the equipment at the consumersubstations for upgrading and modernizing toenhance reliability levels by analysis of operationand maintenance performance data of consumers�substations4. DiagnosticTesting Services5. Providing Selective Load Trimming Scheme fornon-essential loads in the consumer premises byLoad Trimming Devices to avoid total interruptionof power supply to the consumer under systememergency operations6. Fault Detection on the distribution cables insidethe consumer premises7. Assistance / guidance in maintaining safety to theconsumer�s equipment,personnel, etc.8. Technical training of consumers� operation andmaintenance staff at the Company's trainingcentresJanJagrutiAbhiyanThe Jan Jagruti Abhiyaan (people-awakeningmovement) is a forum that spreads information onelectrical safety and conservation, the aim being tominimise accidents in areas where high-tension linesrun. Under the initiative- an awareness campaign forcommunity safety and overhead line fault reductionwas held for school children at Borivali and Kalyansections covering 2150studentsfrom5schools.TataPowerEnergyClubTata Power Energy Clubstarted with a pilot programofeducating and sensitizing 12schools in Mumbai in 2007and covered 28 schools acrossMumbai and Belgaum sinceits inception till 2008. This is an Energy ConservationClub that focuses on bringing about a first-handrealisation of the energy crisis.Tata Power recognises the immense value of thecontribution that schools and schoolchildren alongwith youth, parents, teachers, partners and the societyat large can make to help curb the wasteful usage ofpower. As the demand for power in the country issteadily increasing and energy resources are beingrapidly depleted, it is vital to involve our youth, asdecision-makers of tomorrow, and join them in aninitiative to avert a crippling power crisis.This informal Energy Conservation Club comprisingschools and school children, youth, parents, teachersand the society at large has been formed to spark off aninitiative for curbing energy-wastage through activemeasures,and also popularising the importance of thismission among fellow citizens.Tata Power Energy Clubprovides the platform for all communities in thesociety to share and expand their understanding, and

bring about a chain-reaction that can significantlyreduce wastage of energy in the country. The clubactivities are divided into three main phases:Each Phase of the Program has been devised toproduce a certain output-In the PhaseI of the program, the importance of energyconservation, impact of power production on theenvironment; tips to prevent wastage of power ineveryday life are discussed. Energy Champion Teamfrom each school is selected in this phase.Every student attempts to recognize the wastefulusage of energy in their schools and homes. Studentsare encouraged to monitor their energy bills andobserve the decline is consumption due to the energyconservation initiatives practiced at their residence.They are expected to share the conservation practiceswith their families and other community members.PhaseII:ImpactAssessmentThis phase of the project focuses on sharing theunderstanding acquired through Phase I with others in thecommunityPhaseIII:PeerGroupEducationThree to four dedicated school teams are identified to carryout the sensitization process on energy conversation inother schools. We provide expertise, information andnecessary tools to the teams to carry out the campaignPhaseI: SensitizationSensitization of school children (Grades 6 to 8) and alsocollege youth about conservation through various visualcollege media and a guided trip to the power plantFigure 39: Tata Power Energy Club ActivitiesTata Power Company Limited Sustainability Report 2010-11 61UnderstandingtheCustomerTata Power uses both formal and informal approachesto understand requirements of former, current andpotential customers. Factors affecting their PowerPurchase & Service requirements and otherpreferences are systematically collected.CustomerGroupsandMarketSegmentsTata Power follows a systematic process for customersegmentation. Inputs from various listeningmechanisms including relevant reports from industry,regulators, government agencies, city planners areanalysed to identify current and future customergroups and market segments. This determinationcovers customers of competitors and potentialcustomers.The following figure gives details about variouscustomer segments. Tata Power uses both formal andinformal approaches to understand requirements ofcustomers as per process. This process provides inputswhich are captured and analysed through QFD toarrive at prioritised requirements of various customersegments and product / service features to addressthese requirements.The Business Development team identifies newgeneration opportunities and based on the businessmodel identified power purchase agreements aredrawn. The customer listening approaches are keptcurrent through reviews and customer inputs.

Employees across the organisation, and especiallyfrom customer-service departments, are trained to besensitive to all customer requirements. Inputs from thevarious �Listening & Learning� mechanisms,relationship-building measures, and CustomerRequirement and Customer Satisfaction Surveys areused to improve the segmentation methodology.Continuous power supply availability is and willcontinue to be the major customer requirement acrossall segments of the market. This is particularly so giventhe huge demand-supply gap in India. Tata Power�sstrategic intent is to bridge the gap in installedgeneration capacity in the country by leveraging itscore competencies of Power System Management andProject Management . Consequently, it isconcentrating on distribution companies andcustomers who want to install captive power plants.Tata Power has been keen on the retail distributionbusiness because of its skills in power-systemmanagement, but distribution circles are not beingprivatized in India. Even in the company�s existinglicense area of Mumbai, the issue of retail distributionhad been awaiting a judicial ruling. Further, as a resultof the recent Supreme Court order on retaildistribution in the city, Tata Power is poised to relaunchitself aggressively in distribution, and push forretail customers in the residential, industrial, essentialand commercial segments. The company hasrestructured itself, with distribution and retail divisionsas well as a separate project management group, forspeedier implementation of power supply networks.By selecting three to four dedicated teams fromschools for sensitization in the Phase III of theprograms, the sensitization drive is accelerated multifoldand the outreach of the program is increased aspeer influence is a very important factor in rousinginterest and enthusiasm in children.Tata Power Energy Club became a nationwidemovement in 2009 and covered more than 250 schoolsacross Mumbai, Delhi, Pune, Ahmedabad, Bengaluru,Kolkata, Belgaum, Jamshedpur and Lonavala on thesubject of energy conservation. Over one millioncitizens have been sensitized since the Club became anationwide phenomenon.The Megawatt Millionaire club has now joined handswith Rotary Club of Mumbai, Housing societies andother communities to spread its message of energyconservation.Since its inception, the club has now reached out tomore than 400 schools, nationwide, sensitised morethan 2 million citizens, saved more than 3.4 millionunits and has received more than 40,445 energyChampionsand70,450EnergyAmbassadors.Rashi Gupta from Ryan International, Noida expressesher involvement in the Tata Power Energy Club as �Iconserve electricity by changing bulbs to CFL�s, bykeeping the AC�s temperature on 240C and by notswitching on fans and tube lights unnecessarily. I alsoswitch off appliances from their main point�.Involvement of Parents and teachers in such initiatives

is imperative to its success.�Most Innovative Campaign� award at The EnergyDaily�s2010LeadershipAward,USATheAssociation of BusinessCommunicators of India has best owed a gold award onthe Club for Environment Communications and it hasalso ranked 2nd among 22 participants in Earth Carecategory for Siemens EcovativeAward201060HIGHLIGHTS OF ENERGY CLUB PERFORMANCE IN 2010lMega Watt Millionaire Program, which is an advancedTraining program for its Energy Champions wasinitiated in2010lTotalNo. of people sensitized in2011Over1millionlNationwide285schoolswere coveredin2011l154self sustainingMini EnergyClubswere formedlNo. of energyAmbassadorsin201139,356lNo. of EnergyChampionsin201126,895Mr. Anoop Lalwani, father of (student) Miss RitikaAnoop Lalwani, Queen Mary School: This initiativetaken by�Tata Power" to save electricity is a timely stepin the direction of saving our Planet Earth from the illeffects of increasing carbon levels in our air- as we areusing excessive fossil fuels for transportation andelectrification. By effectively utilizing the limitedelectric energy, "Tata Power� intends to give a betterand cleaner future to the young citizens of India. I, Mr.Anoop Lalwani- am myself a consultant forregenerative products like solar panels, solar lights,caps, torches etc as well as offer guidance in solar/wind energy based solutions- since the last 5/6 years.CustomerandMarketKnowledgeTata Power�s exponential increase in customer basewill increase substantially in the near future, both interms of numbers and load, following thecommissioning of its thermal-generating plants inHaldia, Jamshedpur and Trombay, and its wind generationprojects in Maharashtra and Gujarat.MERC�s order on allowing customers to choose theirpower supplier has helped Tata Power to grow in theRetail segment. We have strengthened our processesand included �Customer Centricity� in our missionstatement to highlight our commitments to ourconsumers.Tata Power has been studying the processes andparameters of its competitors and the best companiesin the industry. Other initiatives to improve servicedelivery to the customers, both technological andinfrastructural arrangements have been made.Based on the 2003 Electricity Act and engagementwith the government, access to electricity has beenimproved. As the power demand is high and also as theoption of choosing the energy provider is available aspecific study on the unserved population by TataPower has not been carried out.Singapore Power - International BenchmarkingPartnerNDPL- NationalBenchmarkingPartnerMobile Service vansOnline Bill pay/ECSsystem

Integrated structures with GISSupervisoryControlandDataAcquisition System(SCADA)Video SurviellanceControl Centres with Main, backup and emergency controlFigure 40: Initiatives to provide bestservices to the CustomersFeedback Mechanism for different customer groupsHousehold Retail BulkMeetingsCustomer Requirement Survey, CustomerSatisfaction Survey, Complaint Management processCustomer portal where all received information isaggregated and analyzed. This information is thenused for learning and the same is communicated toall relevant functionsOne on one meetings are held with representativesof the customer at multiple levels and at periodicintervalsResidentialIndustrialCommercial250000720033000Table 20: Total Number of CustomersNature of BusinessSecondary SegmentationPotential CustomerPrimary SegmentationPurchaseBehaviourNeed PreferencesUsage ExpectationsKeyAccessMechanismsTo help meet customer requirements in the retailbusiness and to prepare for the future, a number ofcustomer Care Centers/ Bill payment centers are set upin various zones in Mumbai. This will enable ourcustomers to seek information and assistance at anytime, in the nearest location.In all 253 customers were disconnected for nonpaymentof their dues ranging for a period of onemonth to six months.CustomerSatisfactionDeterminationTata Power associates high importance to CustomerSatisfaction, Dissatisfaction and Engagement. Internalprocesses have been designed to cover all segments ofcustomers in Generation and Distribution business onengagement and satisfaction. Customers ofTransmission business - DISCOMS are approacheddirectly to get feedback. Feedback from customer ofservice businesses are sought separately as thisbusiness is emerging. The survey also coverscompetitors' customers and other utilities' customersfor appropriate comparison. The questionnaire isbased on the needs of different segments identifiedthrough and other listening approaches. Satisfactionlevels are obtained for various attributes related toproduct & services , customer support &communication mechanism. This survey also captures

customer's growth plan and potential for positivereferrals.Customers have 24/7 access toTata Power through Callcentres, customer care centres and online customercare sites.62KeepingCustomerSatisfactionCurrentThe systems designed for customer satisfaction arereviewed periodically after taking in to account thefeedback from�listening and learning�posts, customerrequirement surveys both previous and current andchanges in the business environment.Awards andRecognitionTata Power has been ranked highest in the OverallCustomer Satisfaction Index in Mumbai for 201011 intheDirectandChangeoverCustomerCategoryAn Energy Conservation Award has been instituted fortheMostEnergyConsciousCompanyTata Power has been ranked No. 38 as India's Best Companies to work with as per the study doneby Great Place to Work Institute.Tata Power was conferred two awards by Platts for top 250 Global Energy Companies, viz. Number42 in overall in Asia and Number 4 Fastest Growing in Asia.Tata Power was bestowed the prestigious �Vasundhara Award� in the industry category) towardsprotection of environment in the State of Maharashtra by Maharashtra Pollution Control Board(MPCB).Tata Power Energy Club, Tata Power�s nationwide energy conservation movement led by schoolchildren, has been bestowed the �Most Innovative Campaign� award at USA�s The Energy Daily�s2010 Leadership Awards. 14th March 2011.Tata Power Energy Club awarded�GOLD� in Environmental Communication category byAssociation of Business Communicators of India (ABCI). October 2010Tata Power was conferred the prestigious BML Munjal Award for Excellence in Learning &Development for the year 2011 in Private sector category.Trombay Thermal Power Station has bagged the prestigious Greentech Safety Award 2011 in thegold category (in thermal power sector) for outstanding achievement in Safety ManagementJojobera Thermal Power Station was awarded the Shrestha Suraksha Purashkar (Silver trophy andcertificate) by National Safety Council under the NSCI Safety Awards scheme.Tata Power Strategic Electronics Division team was awarded the Frost & Sullivan�s CompetitiveLeadership Award for successfully bidding for the Indian Air Force project involving the upgradation of 30 airfields.Tata Power Energy Club ranked 2nd among 22 participants in �Earth Care� category for SiemensEcovative Award 2010The Company received�Best performer in the Power Industry� at the Financial Express - EmergentVentures India Green Business Leadership AwardsThe Company received Certificate of Merit - Global CSR Awards 2010.64

Tata Power Company Limited Sustainability Report 2010-11 67GRI ContentIndexG3 Content IndexApplication Level A AssuredbyErnst and YoungPvt. Ltd.STANDARD DISCLOSURES PART I: Profile Disclosures1. Strategy and AnalysisStatement from the mostsenior decision-maker ofthe organization.Description of key impacts,risks, and opportunities.FullyFully1.11.2Pages 1Page 16Name of the organization.Primary brands, products,and/or services.Operational structure ofthe organization, includingmain divisions, operatingcompanies, subsidiaries,and joint ventures.Location of organization'sheadquarters.Number of countrieswhere the organizationoperates, and names ofcountries with either majoroperations or that arespecifically relevant to thesustainability issuescovered in the report.Nature of ownership andlegal form.Markets served (includinggeographic breakdown,sectors served, and typesof customers/beneficiaries).Scale of the reportingorganization.FullyFullyFullyFullyFullyFullyFullyFully2.12.22.32.42.5

2.62.72.8Cover PagePage 5Page 5Page 3Page 5Pages 5-6Pages 5-7Pages7, 292. Organizational ProfileProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanationProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanation68 Tata Power Company Limited Sustainability Report 2010-11 69Significant changes duringthe reporting periodregarding size, structure, orownership.Awards received in thereporting period.FullyFully2.92.10Page 3Page 64Reporting period (e.g.,fiscal/calendar year) for

information provided.Date of most recentprevious report (if any).Reporting cycle (annual,biennial, etc.)Contact point forquestions regarding thereport or its contents.Process for defining reportcontent.Boundary of the report(e.g., countries, divisions,subsidiaries, leasedfacilities, joint ventures,suppliers). See GRIBoundary Protocol forfurther guidance.State any specificlimitations on the scope orboundary of the report(see completenessprinciple for explanation ofscope).Basis for reporting on jointventures, subsidiaries,leased facilities,outsourced operations,and other entities that cansignificantly affectcomparability from periodFullyFullyFullyFullyFullyFullyFullyFully3.13.23.33.43.53.63.73.8Page 3Page 3Page 3Page 3Page 3Page 3Page 3Page 33. Report Parametersto period and/or betweenorganizations.Data measurementtechniques and the basesof calculations, including

assumptions andtechniques underlyingestimations applied to thecompilation of theIndicators and otherinformation in the report.Explain any decisions notto apply, or to substantiallydiverge from, the GRIIndicator Protocols.Explanation of the effect ofany re-statements ofinformation provided inearlier reports, and thereasons for such restatement(e.g.,mergers/acquisitions, change ofbase years/periods, natureof business, measurementmethods).Significant changes fromprevious reporting periodsin the scope, boundary, ormeasurement methodsapplied in the report.Table identifying thelocation of the StandardDisclosures in the report.Policy and current practicewith regard to seekingexternal assurance for thereport.FullyFullyFullyFullyFully3.93.103.113.123.13Page 3No restatementswereissued bytheCompanyPage 3Page 67Page 34. Governance, Commitments, and EngagementGovernance structure ofthe organization, includingcommittees under thehighest governance body4.1 Fully Page 11ProfileDisclosureDescription Reported Crossreference/

DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanationProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanation ProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanationProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanation

70 Tata Power Company Limited Sustainability Report 2010-11 71responsible for specifictasks, such as settingstrategy or organizationaloversight.Indicate whether the Chairof the highest governancebody is also an executiveofficer.For organizations thathave a unitary boardstructure, state thenumber of members of thehighest governance bodythat are independentand/or non-executivemembers.Mechanisms forshareholders andemployees to providerecommendations ordirection to the highestgovernance body.Linkage betweencompensation formembers of the highestgovernance body, seniormanagers, and executives(including departurearrangements), and theorganization'sperformance (includingsocial and environmentalperformance).Processes in place for thehighest governance bodyto ensure conflicts ofinterest are avoided.Process for determiningthe qualifications andexpertise of the membersof the highest governancebody for guiding theorganization's strategy oneconomic, environmental,and social topics.FullyFullyFullyFullyFullyFully4.24.34.44.54.64.7Page 11Page 11

Page 13Page 12Page 13Page 11Internally developedstatements of mission orvalues, codes of conduct,and principles relevant toeconomic, environmental,and social performanceand the status of theirimplementation.Procedures of the highestgovernance body foroverseeing theorganization'sidentification andmanagement of economic,environmental, and socialperformance, includingrelevant risks andopportunities, andadherence or compliancewith internationally agreedstandards, codes ofconduct, and principles.Processes for evaluatingthe highest governancebody's own performance,particularly with respect toeconomic, environmental,and social performance.Explanation of whetherand how the precautionaryapproach or principle isaddressed by theorganization.Externally developedeconomic, environmental,and social charters,principles, or otherinitiatives to which theorganization subscribes orendorses.Memberships inassociations (such asindustry associations) and/or national/internationaladvocacy organizations inwhich the organization: *Has positions inFullyFullyFullyFullyFullyFully4.84.94.10

4.114.124.13Page 8Page 11Page 11,12 & 13Page 33Page 14Page 14ProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanation ProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanation72 Tata Power Company Limited Sustainability Report 2010-11 73governance bodies; *Participates in projects orcommittees; * Providessubstantive fundingbeyond routinemembership dues; or *Views membership asstrategic.List of stakeholder groupsengaged by theorganization.Basis for identification andselection of stakeholderswith whom to engage.Approaches to stakeholderengagement, includingfrequency of engagementby type and by stakeholder

group.Key topics and concernsthat have been raisedthrough stakeholderengagement, and how theorganization hasresponded to those keytopics and concerns,including through itsreporting.FullyFullyFullyFully4.144.154.164.17Page 20Page 20Page 20Pages21-22EnergyWaterBiodiversityEmissions, effluents andwasteProducts and servicesComplianceTransportOverallDisclosure onManagement Approach LAEmploymentLabor/managementrelationsOccupational health andsafetyTraining and educationDiversity and equalopportunityDisclosure onManagement Approach HRInvestment andprocurement practicesNon-discriminationFreedom of associationand collective bargainingChild laborForced and compulsorylaborSecurity practicesIndigenous rightsFullyFullyFullyFullyFullyFully

FullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyFullyDMA LAAspectsDMA HRAspectsPage 36Page 38Page 40Page 39Page 34-36Page 40Page 36Page 33-43Page 45Page 45Page 46Page 47Page 48Page 45Page 45Page 51Page 50Page 50Page 51Page 51Page 51Page 51STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)Disclosure onManagement Approach ECEconomic performanceMarket presenceIndirect economic impactsDisclosure onManagement Approach ENMaterialsFullyFullyFullyFullyFullyFullyDMA ECAspectsDMA EN

AspectsPage 29Page 29Page 29-30Page 31Page 33Page 36ProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionExplanation Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionG3 DMA ExplanationDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionG3 DMA Explanation74 Tata Power Company Limited Sustainability Report 2010-11 75Disclosure onManagement Approach SOCommunityCorruptionDisclosure onManagement Approach PRCustomer health andsafetyProduct and service

labellingMarketingcommunicationsCustomer privacyComplianceFullyFullyFullyFullyFullyFullyFullyFullyFullyDMA SOAspectsDMA PRAspectsPage 53Pages53-56Tata Powerdoes not atpresentformallyanalyse itsbusinessunits forrisksrelated tocorruption.Howeverclearguidelineshave beenlaid downby thecompany,in the formof the TataCode ofConductand theWhistleblower policyto dealwithinstancesofcorruptionPage 59Page 59Page 60Pages60-61Page 61No fineswerelevied onthecompany

in thereportingperiodEconomicSTANDARD DISCLOSURES PART III: Performance IndicatorsEconomic performanceDirect economic valuegenerated and distributed,including revenues,operating costs, employeecompensation, donationsand other communityinvestments, retainedearnings, and payments tocapital providers andgovernments.Financial implications andother risks andopportunities for theorganization's activitiesdue to climate change.Coverage of theorganization's definedbenefit plan obligations.Significant financialassistance received fromgovernment.FullyPartiallyFullyFullyEC1EC2EC3EC4Page 29Page 16Page29-30Page 30Financialimplicationsdue toclimatechangeWill bereportedin 2015NotavailableCurrentlythere are noregulatorymandateson climatechange inIndia, allinitiativesarevoluntary

Market presenceRange of ratios of standardentry level wagecompared to localminimum wage atsignificant locations ofoperation.EC5 Fully Page 30Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionDescription Reported Cross- G3 DMA Explanationreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionG3 DMA ExplanationDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicator76 Tata Power Company Limited Sustainability Report 2010-11 77Policy, practices, andproportion of spending onlocally-based suppliers atsignificant locations ofoperation.Procedures for local hiringand proportion of seniormanagement hired from

the local community atsignificant locations ofoperation.Development and impactof infrastructureinvestments and servicesprovided primarily forpublic benefit throughcommercial, in-kind, or probono engagement.Understanding anddescribing significantindirect economic impacts,including the extent ofimpacts.NotFullyFullyNotEC6EC7EC8EC9Thoughwe do nothave aformalpolicy inplace forlocallyhiringemployees,we do tryto recruitpeoplefrom localareasaround ouroperationsto boostemployment in thoseareas.Page 30Will bereportedin 2015NotavailableExistingoperationsdo notrequiresuchpolicies tobe in placeCurrentlytheseimpactshave notbeen

calculatedhoweverthey will beevaluatedin thefutureEnvironmentalMaterials used by weightor volume.Percentage of materialsused that are recycledinput materials.Direct energyconsumption by primaryenergy source.Indirect energyconsumption by primarysource.Energy saved due toconservation andefficiency improvements.Initiatives to provideenergy-efficient orrenewable energy basedproducts and services, andreductions in energyrequirements as a result ofthese initiatives.Initiatives to reduceindirect energyconsumption andreductions achieved.Total water withdrawal bysource.Water sources significantlyaffected by withdrawal ofwater.FullyNotPartiallyPartiallyFullyFullyFullyFullyFullyEN1EN2EN3EN4EN5EN6EN7EN8EN9Page 36Page 36Page 37Pages36-38

Page 27Page 37Page 38Page 38Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorEnergyconsumption by primaryenergysourceEnergyconsumption by primaryenergysourceWill bereportedin NextreportingcycleWill bereportedin NextreportingcycleWill bereportedin NextreportingcycleNotavailableNot

availableNotavailableTata Poweruses coal,oil, gas forgenerationof electricity.There is noscope to userecycledinputmaterial78 Tata Power Company Limited Sustainability Report 2010-11 79FullyFullyFullyFullyFullyFullyFullyFullyFullyFullyPage 39Pages40-42Pages40-42Pages40-43Pages40-43Pages40-43Pages34-36Page35-36Pages 27,36-38We do notuse ozonedepletingsubstancesin anyoperationsPercentage and totalvolume of water recycledand reused.Location and size of landowned, leased, managedin, or adjacent to,protected areas and areasof high biodiversity valueoutside protected areas.Description of significantimpacts of activities,products, and services onbiodiversity in protected

areas and areas of highbiodiversity value outsideprotected areas.Habitats protected orrestored.Strategies, current actions,and future plans formanaging impacts onbiodiversity.Number of IUCN Red Listspecies and nationalconservation list specieswith habitats in areasaffected by operations, bylevel of extinction risk.Total direct and indirectgreenhouse gas emissionsby weight.Other relevant indirectgreenhouse gas emissionsby weight.Initiatives to reducegreenhouse gas emissionsand reductions achieved.Emissions of ozonedepletingsubstances byweight.EN10EN11EN12EN13EN14EN15EN16EN17EN18EN19Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorFullyFullyFullyFullyNotFullyFullyPage

35-36Page38-39Page 39Page 39Nosignificantimpacthasbeenascertainedon thebiodiversityvalueof waterbodiesandrelatedhabitatssurroundingouroperationsOurproduct iselectricityand thereis nosignificantimpact ofproduct orservicesNOx, SOx, and othersignificant air emissions bytype and weight.Total water discharge byquality and destination.Total weight of waste bytype and disposal method.Total number and volumeof significant spills.Weight of transported,imported, exported, ortreated waste deemedhazardous under the termsof the Basel ConventionAnnex I, II, III, and VIII, andpercentage of transportedwaste shippedinternationally.Identity, size, protectedstatus, and biodiversityvalue of water bodies andrelated habitatssignificantly affected bythe reportingorganization's dischargesof water and runoff.Initiatives to mitigateenvironmental impacts ofproducts and services, and

extent of impactmitigation.EN20EN21EN22EN23EN24EN25EN26Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorTata Powerdoes notproduceanyhazardouswastes80 Tata Power Company Limited Sustainability Report 2010-11 81FullyFullyNotPartiallyNopackagingis requiredsince theproduct iselectricityPage 33-34Page 40Percentage of productssold and their packagingmaterials that arereclaimed by category.Monetary value ofsignificant fines and totalnumber of non-monetarysanctions for noncompliancewithenvironmental laws andregulations.Significant environmentalimpacts of transportingproducts and other goodsand materials used for theorganization's operations,and transporting members

of the workforce.Total environmentalprotection expendituresand investments by type.EN27EN28EN29EN30FullyFullyFullyFullyFullyFullyNotPage 51Page 46Page 49Pages48-49Page 49Page 49The dataaddressedin thereport isbased ontrainingmanpowerdistributionacrossor part-time employees, bymajor operations.Percentage of employeescovered by collectivebargaining agreements.Minimum notice period(s)regarding significantoperational changes,including whether it isspecified in collectiveagreements.Percentage of totalworkforce represented informal joint managementworkerhealth and safetycommittees that helpmonitor and advise onoccupational health andsafety programs.Rates of injury,occupational diseases, lostdays, and absenteeism,and number of workrelatedfatalities by region.Education, training,counseling, prevention,and risk-control programsin place to assist workforcemembers, their families, or

community membersregarding serious diseases.Health and safety topicscovered in formalagreements with tradeunions.Average hours of trainingper year per employee byemployee category.LA4LA5LA6LA7LA8LA9LA10Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorInvestmentsby typeWill bereportedNotavailableAs on datetheseimpactshave notbeenconsideredforcalculation

as they arenot ofsignificantproportionDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorSocial: Labor Practices and DecentWorkTotal workforce byemployment type,employment contract, andregion.Total number and rate ofemployee turnover by agegroup, gender, and region.Benefits provided to fulltimeemployees that arenot provided to temporaryFullyPartiallyFullyLA1LA2LA3Page 45Page 45Page 45Employeeturnover byregionWill bereportedin NextreportingcycleNotavailableAveragehours oftraining peryear peremployee byemployeecategoryWill bereportedin Nextreporting

cycleNotavailable82 Tata Power Company Limited Sustainability Report 2010-11 83FullyFullyFullyFullyemployeecategory.Howeverfrom thenextreportingexercisewe willmention itaccordingto training/year/employeebyemployeecategoryPages49-50Pages49-50There areno femaledirectors inthe TataPowerBoardPage45-46Programs for skillsmanagement and lifelonglearning that support thecontinued employability ofemployees and assist themin managing careerendings.Percentage of employeesreceiving regularperformance and careerdevelopment reviews.Composition ofgovernance bodies andbreakdown of employeesper category according togender, age group,minority groupmembership, and otherindicators of diversity.Ratio of basic salary ofmen to women byemployee category.LA11LA12

LA13LA14Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorNo specificdata ismaintained;opportunitiesaregiven basedon skill andrequirementandavailabilitySocial: Human RightsPercentage and totalnumber of significantinvestment agreementsthat include human rightsclauses or that haveundergone human rightsscreening.Percentage of significantsuppliers and contractorsthat have undergonescreening on human rightsand actions taken.Total hours of employeetraining on policies andprocedures concerningaspects of human rightsthat are relevant tooperations, including thepercentage of employeestrained.Total number of incidentsof discrimination andactions taken.Operations identified inwhich the right to exercisefreedom of association andcollective bargaining maybe at significant risk, andactions taken to supportthese rights.Operations identified ashaving significant risk for

incidents of child labor,and measures taken tocontribute to theelimination of child labor.Operations identified ashaving significant risk forincidents of forced orcompulsory labor, andmeasures to contribute tothe elimination of forcedor compulsory labor.FullyFullyFullyFullyFullyFullyFullyHR1HR2HR3HR4HR5HR6HR7Page 51Page 51Page 51Page 50Page 51Page 51Page 51Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicator84 Tata Power Company Limited Sustainability Report 2010-11 85FullyFullyPage 51Page 51Percentage of securitypersonnel trained in theorganization's policies orprocedures concerningaspects of human rightsthat are relevant tooperations.Total number of incidents

of violations involvingrights of indigenouspeople and actions taken.HR8HR9Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorFullyFullyFullyFullyFullyWhistleblower policyto dealwithinstancesofcorruptionAllemployeesare madeaware ofthe TataCode ofConductduringtheirinductionin thecompany.ThisdocumentspecifiesCompany�santicorruptionpoliciesNoincidentsofcorruptionwerefoundduring thereportingperiodPage 23Page 23

Noincidencesof legalPercentage of employeestrained in organization'santi-corruption policiesand procedures.Actions taken in responseto incidents of corruption.Public policy positions andparticipation in publicpolicy development andlobbying.Total value of financial andin-kind contributions topolitical parties, politicians,and related institutions bycountry.Total number of legalactions for anticompetitivebehavior, antitrust,and monopolySO3SO4SO5SO6SO7Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorSocial: SocietyDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorFullyFully

Page 56Tata Powerdoes not atpresentformallyanalyseitsbusinessunits forrisksrelated tocorruption.Howeverclearguidelineshave beenlaid downby thecompany,in the formof the TataCode ofConductand theWhistleblower policyNature, scope, andeffectiveness of anyprograms and practicesthat assess and managethe impacts of operationson communities, includingentering, operating, andexiting.Percentage and totalnumber of business unitsanalyzed for risks relatedto corruption.SO1SO286 Tata Power Company Limited Sustainability Report 2010-11 87Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorFullyactionagainstthecompany

wererecordedagainstthecompanyNo fineswerelevied onthecompanyin thereportingperiodpractices and theiroutcomes.Monetary value ofsignificant fines and totalnumber of non-monetarysanctions for noncompliancewith laws andregulations.SO8Description Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorFullyFullyFullyNotFullyNoincidentsof noncompliancewereregisteredin thereportingperiodPages60-62Onlyelectricityspecificlaws areapplicableto TataPower;others are

notapplicablePage 62Total number of incidentsof non-compliance withregulations and voluntarycodes concerning productand service informationand labeling, by type ofoutcomes.Practices related tocustomer satisfaction,including results of surveysmeasuring customersatisfaction.Programs for adherence tolaws, standards, andvoluntary codes related tomarketingcommunications,including advertising,promotion, andsponsorship.Total number of incidentsof non-compliance withregulations and voluntarycodes concerningmarketingcommunications,including advertising,promotion, andsponsorship by type ofoutcomes.Total number ofsubstantiated complaintsregarding breaches ofcustomer privacy andlosses of customer data.PR4PR5PR6PR7PR8Social: Product ResponsibilityDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedTo bereportedinReasonforomissionPerformance ExplanationIndicatorFully

FullyFullyPage 59Noincidentsof noncompliancewereregisteredin thereportingperiodPage 60Life cycle stages in whichhealth and safety impactsof products and servicesare assessed forimprovement, andpercentage of significantproducts and servicescategories subject to suchprocedures.Total number of incidentsof non-compliance withregulations and voluntarycodes concerning healthand safety impacts ofproducts and servicesduring their life cycle, bytype of outcomes.Type of product andservice informationrequired by procedures,and percentage ofsignificant products andservices subject to suchinformation requirements.PR1PR2PR3 There areno suchrequirementsrelated topower as aproductComplianceFully No fineswere leviedon thecompany inthereportingperiodMonetary value ofsignificant fines for noncompliancewith laws andregulations concerning theprovision and use ofproducts and services.PR9Tata Power Company Limited Sustainability Report 2010-11 89

GRI ContentElectric UtilitySector SupplementG3 Content Index - Electric Utilities Sector SupplementApplication Level A Assured by Ernst and YoungPvt. Ltd.STANDARD DISCLOSURES PART I: Profile Disclosures1. Strategy and Analysis2. Organizational ProfileInstalled capacity, brokendown by primary energysource and by regulatoryregime.Net energy output brokendown by primary energysource and by regulatoryregime.Number of residential,industrial, institutional andcommercial customeraccounts.Length of above andunderground transmissionand distribution lines byregulatory regime.Allocation of CO2eemissions allowances orequivalent, broken downby carbon tradingframework.FullyFullyFullyFullyNotEU1EU2EU3EU4EU5Page 5Page 6Page 61Page 6ProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedReasonforomissionExplanationEmission allowanceshave not beenallocated by the

Company but may beevaluated in thefuture3. Report Parameters4. Governance, Commitments, and EngagementSTANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)DMA EC Disclosure on Management Approach ECManagement approach toensure short and longtermelectricity availabilityand reliabilityDemand-sidemanagement programsincluding residential,commercial, institutionaland industrial programsFullyFullyEU6EU7Pages61-62Pages26, 3490 Tata Power Company Limited Sustainability Report 2010-11 91Research anddevelopment activity andexpenditure aimed atproviding reliableelectricity and promotingsustainable developmentProvisions fordecommissioning ofnuclear power sitesFullyNotEU8EU9EUSSIndexIn-house research anddevelopment activityis carried out forensuring reliableelectric supplyTata Power's businessdoes not involvenuclear power plantsProcesses and processes toensure the availability of askilled workforcePercentage of employeeseligible to retire in the next5 and 10 years brokendown by job category andby regionPolicies and requirementsregarding health andsafety of employees andemployees of contractors

and subcontractorsFullyFullyFullyEU14EU15EU16Pages45, 48-50Page 46Pages46-47Stakeholder participationin the decision makingprocess related to energyplanning andinfrastructuredevelopment.Approach to managing theimpacts of displacementContingency planningmeasures, disaster/emergency managementplan and trainingprograms, and recovery/restoration plans.FullyFullyFullyEU19EU20EU21Pages20-23Page 56Page 47Profile DMA PR Disclosure on Management Approach PRDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedReasonforomissionExplanationProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedReasonfor

omissionExplanationPrograms, including thosein partnership withgovernment, to improve ormaintain access toelectricity and customersupport services.Practices to addresslanguage, cultural, lowliteracy and disabilityrelated barriers toaccessing and safely usingelectricity and customersupport servicesFullyPartiallyEU23EU24Page60-61Page 62STANDARD DISCLOSURES PART III: Performance IndicatorsEconomicPlanned capacity againstprojected electricitydemand over the longterm, broken down byenergy source andregulatory regime.Average generationefficiency of thermal plantsby energy source andregulatory regime.Transmission anddistribution losses as apercentage of total energy.FullyFullyFullyEU10EU11EU12Page 7Page 37Page 7EnvironmentalBiodiversity of offsethabitats compared to thebiodiversity of the affectedareasEU13 Fully Pages40-43Social: Labour Practices and DecentWorkDays worked by contractorand subcontractoremployees involved inconstruction, operationand maintenanceactivities.

Percentage of contractorEU17 Not Specific records onno. of man-daysworked bycontractors are notmaintained. HoweverCompany will initiatethis in the futureDMA HR Disclosure on Management Approach HRDMA SO Disclosure on Management Approach SODMA EN Disclosure on Management Approach ENDMA LA Disclosure on Management Approach LAAssuranceLetter92and subcontractoremployees that haveundergone relevant healthand safety training.EU18 Partially Page 47ProfileDisclosureDescription Reported Crossreference/DirectanswerIf applicable,indicate thepart notreportedReasonforomissionExplanationSocial: Human RightsSocial: SocietyNumber of peoplephysically or economicallydisplaced andcompensation, brokendown by type of project.EU22 Partially Page 56Injuries caused byTata Poweroperations to thegeneral public havenot occurredTata Power takes carethat power outagesand powerdisruptions do nottake place byefficiently managingits power productionTata Power takes carethat power outagesand powerdisruptions do nottake place byefficiently managingits power production

Social: Product ResponsibilityNumber of injuries andfatalities to the publicinvolving company assets,including legal judgments,settlements and pendinglegal cases of diseases.Percentage of populationunserved in licenseddistribution or serviceareas.Number of residentialdisconnections for nonpayment,broken down byduration of disconnectionand by regulatory regime.Power outage frequency.Average power outageduration.Average plant availabilityfactor by energy sourceand by regulatory regime.NotFullyFullyFullyFullyFullyEU25EU26EU27EU28EU29EU30Page 61Page 61EUSSIndexEUSSIndexPage 3794 Tata Power Company Limited Sustainability Report 2010-11 9596NotesTata Power Company Limited Sustainability Report 2010-11 97