Jamshedpur Utilities & Services Company Limited(JUSCO)

Samadhan 5.0 AGON 2019 A case study competition on Corporate Social Responsibility

Social Context and Business Profile

Social Context:

The operational area of JUSCO comes under the states of Jharkhand and Odisha. Jharkhand and

Odisha have traditionally been socio-economically most backward states. Very poor infrastructure

exists in terms of health services, education, roads and electricity along with lack of other basic

amenities. Illiteracy rate is also high. A major concern in these states is the socio-economic

development of the Dalit and Tribal communities, who constitute a considerable percentage (above

the national average) of the population, therein.

The company as a responsible corporate citizen recognizes that the growth lies in improving the

quality of life of the communities we serve. Jamshedpur and Sarikela-Kharsawan (S-K) District are

the prime areas of operation. Saraikela Power distribution business started after the grant of Power

Distribution License in Dec. 2006 from the Govt. of Jharkhand (GOJ). As per the Power Distribution

License agreement with the GOJ, JUSCO has to roll out the distribution network in the licensed area

of S-K District. The company will be having long term business association in the state of Odisha,

hence, the AA strategy for Odisha and the initiatives are being evolved. With our operations

confined to the areas mentioned above, that have a sizeable Dalit and Tribal population, we have

focused our Affirmative Action related work here (Fig. 1 & 2).

Particulars

UOM

Jharkhand

Saraikela-Kharsawan

District (S-K)

Odisha

Total Population In Lakhs 329.67 (2015-16) 10.65 ( 2015-16) 443.380 (2015-16)

Dalit % 38.90 (11.8%) 0.56 (5%) 73.29 (16.53%)

Tribal % 86.70 (26.3%) 3.74 (35%) 98.12 (22.13%)

Fig. 1: Dalit and Tribal Data

Indices UoM National

Jharkhand

Odisha

Population of Dalit and

Tribal % 25.20 38.10 38.66

Per Capita Income Rs. / Yr 93231

(2015-16)

46131

(2013-14)

59229

(2014-15)

Literacy Rate % 74.04% (2011) 67.60% (2011) 73.50% (2011)

HDI Index 0.609 0.464 0.442

Fig. 2 : Core Socio-economic Indicators

* Source: Census of India 2011

Business Profile: Jamshedpur is the site of India’s first steel plant. The founder Mr. Jamsedji Tata planned a full-

fledged township around the plant realizing the competitive advantage that world-class facilities

could provide in attracting best talent to sustainably run the steel plant. Jamshedpur was thus born

as modern India’s first planned industrial city. Tata Steel has been managing Jamshedpur since 1907,

which is globally a unique case of private organization taking up the role of providing civic amenities

to its employees and communities at large, as part of fulfilling its corporate social responsibility.

Tata Steel Ltd.(TSL) took the path breaking initiative in August 2003, of hiving off its Town and Power

Service divisions and creating a separate Corporate entity named “Jamshedpur Utilities & Services

Company Limited (JUSCO)”, India’s first comprehensive urban infrastructure services provider in the

private sector. It was created with an objective of Improving quality of services at Jamshedpur,

optimizing cost of town operations/ utility services and Leveraging experience of building and

maintaining town infrastructure to grow beyond Jamshedpur. (Fig. 3)

JUSCO’s Core Competency is “Creation, operation and maintenance of urban infrastructure and

services”. JUSCO is committed to the objective of providing “Quality Services for life” where in, ‘life’

symbolizes the vibrancy and continuity of services for, forever. The various business verticals are

depicted in (Fig 4).

Fig. 3: JUSCO’S Vision, Mission and Values

Fig. 4: JUSCO’s Service Offering

Vision

We shall be a provider of best-value infrastructure and utility

services

Mission

Build a process and knowledge driven enterprise where a team of happy and empowered employees Create best-value through:

Care for Customer

Culture of excellence and improvement

Commitment to Safety and Environment

Concern for Community

Values

Integrity

Excellence

Responsibility

Pioneering

Unity

Agility

JUSCO creates value by providing sustainable solutions in urban infrastructure to various agencies such as civic bodies, large and small industries, local government bodies, communities and individuals (Fig. 5).

Jamshedpur (TSL commitment) Businesses

For entire town

Water and waste management

Power distribution

Sanitation and Municipal Solid Waste Management

Town Planning, Engineering & Construction

Horticulture services

For TSL’s properties

Civil maintenance

Electrical Maintenance

Hospitality

Fleet Management

Security

EPC water project at Chas, Raurkela, Moharda, Chakulia & Gobarghati

Odisha O&M and Township Project

Industrial Civil & Industrial construction

Roads

Power distribution

Waste Management

Real Estate

Fig. 5: Services specification

PRODUCTS/OPERATIONS

1. Integrated Township Management: By virtue of its Lease Agreement with the Government of

Jharkhand (GoJ), Tata Steel Ltd.(TSL) is obliged to provide civic and municipal services in

Jamshedpur. JUSCO provides civic and municipal services on TSL’s behalf in an integrated

manner as guided by the Customers. It also includes Industrial Construction and O&M services

for TSL and Tata Steel Group Companies.

2. Power Services Division: The Power Services Division is responsible for the purchase, sale and

distribution of electricity; augmenting and maintaining the power distribution infrastructure. At

Jamshedpur JUSCO is providing services on TSL’s behalf, whereas, it is a license holder and

operator in S-K District. In S-K District, JUSCO is the first parallel licensee in power distribution in

India.

3. EPC Water Division: Water & Waste Water projects – To meet the water off-take treatment &

distribution and waste water conveyance and treatment requirements in the industrial and

municipal segment. Our customers include Tata Steel, TIS Group Companies, Government of

Jharkhand and Government of Odisha.

4. Odisha O & M: JUSCO brings extensive experience in township and facility management in

Jamshedpur. With the growing need for townships & facility management of industrial

townships, future smart cities, company decided to leverage upon its core capabilities to grow in

O&M in the state beyond Jharkhand and in Odisha. Tata Steel Works at Kalinganagar are our

main customers. JUSCO is also doing Township Construction Project for TSL at Kalinganagar.

5. Real Estate: JUSCO plans to serve the employees of Tata Group companies in Jamshedpur by

way of providing integrated township. JUSCO has captive demand from TSL’s employees for Real

Estate where it will be leveraging its long term construction capability and experience. This

would then serve as a launch pad for further growth in Real Estate business.

Revenue and Profit:

Year Total Income from sales (Rs. Cr) PBT (Rs. Cr) PAT (Rs. Cr)

2015 – 16 776.22 37.60 32.12

2016 – 17 788.01 48.71 51.51

2017 – 18 927.22 35.58 25.06

Fig 6: Revenue & Profits

Governance

AA Governance at JUSCO translates its commitment of empowering the underprivileged and weaker

section of society, through interventions in the areas of education, skill building, vendor

development, essential amenities and health care to promote inclusive growth. An Apex CSR

Committee has been formed to look after the needs of AA community through processes and

programs. The cross functional CSR Committee is headed by the Managing Director and comprises of

all General Managers and process owners of the Company. Each of the Four Es has a nominated

senior executive as its process owner. The respective persons driving the four Es are empowered to

implement AA Action plans on the approved AA Policy and strategy in their respective areas. The

sentiment of Dalit and Tribal is captured through an employee representative in the committee.

Company secretary and DGM CSR is nominated as AA champion and is adequately empowered to

drive the AA initiatives. The CSR department has been strengthened to identify the needs &

aspirations of local communities, develop & implement social welfare & peripheral development

program in tandem with the beneficiary groups.

JUSCO plans and executes its AA intervention in conjunction with its CSR Policy 2017.

JUSCO has defined an AA Governance structure to set and deploy its various objectives including the

4Es of Affirmative Action (Fig. 7).

AA Governance System, Structure & Review

Fig. 7: Governance Structure

AA Vision & Strategy:

In line with the Founder’s philosophy and TATA Core Values, JUSCO has evolved its Affirmative Action mission. Equitable share of benefits arising out of resources (financial, human, physical or information resources) is the right of every individual, which the AA community is vastly deprived off. JUSCO efforts to pass the benefits to AA community through various interventions to help create equal opportunities and bring about sustainable development.

JUSCO’S AA VISION

“To contribute positively to the communities in and around the place of work and assist them in

addressing the societal needs through the interventions in the areas of education, employability,

entrepreneurship, essential amenities and employment.”

AA directives have been a part of the CSR Policy and it includes: “The Company would design

targeted interventions for Dalit and Tribal in the areas of Education, Employability, Employment and

Entrepreneurship. For JUSCO, priority would be given to promoting ‘Education’.”

The company’s long term objective is “to improve the quality of education, in periphery of

company’s operations, through various interventions resulting in upgrading the quality of education

and adding value through holistic development of the student community. Education is company’s

focus area for Affirmative Action.”

JUSCO will continue to focus on AA communities in and around geographies where it has a long term

presence (>3 years).

AA Strategy has been developed taking inputs from AA Vision, AA Policy, Tata Group guidelines, CII

Code, stakeholders’ expectations, national demographics, need assessment feedback from the

community, business prospects and SWOT Analysis (Fig. 8).

Strength Weakness

Management engagement & commitment

Dedicated Fund for AA

Engaged employees with willingness in volunteering

Efforts initiated for improving quality of education

Employees with educational backgrounds

Partnership with/ NGOs/ Technical Institutions

Support from Community

Limited financial and human resources

Lack of education among the human

leading to low confidence

Time taking in behavioural changes of the

community

Opportunity Threat

Scope for intervention in development of villages in

avenue of 5Es

Lack of quality education

Scope for capacity building of Dalit and Tribal youth

Growth/ expansion projects of the Company

Increased requirement of vendors/ contractors for

products/ services

Political situation

Lack of active participation from villagers

Expectation of local community from

JUSCO

Lack of administrative support

High rate of illiteracy among villagers

Limited participation of women in

development initiative

Fig 8: SWOT Analysis

Input Process Output

External Environment

1. JUSCO Vision

2. JUSCO AA Policy

3. TATA Group Guideline/ Criteria

4. Stakeholder Requirements

5. Government Policies on AA

6. Socio-economic indicators/ Environment

7. Other Stakeholder’s (vendor, community, etc.)

expectations

Stakeholders

expectation’s analysis

Other relevant analysis

Prioritization of Objectives and Setting Targets

AA Strategies

&

Programs on

4 Es Directional

1. Strategic Directions

2. Leadership Inputs (MD/ GM’s)

3. Long Term Plan

4. Corporate/ Divisional Objectives

Internal Environment

1. Assessments Feedback

2. Learning from past

Fig. 9: Strategy Development Process

Needs and aspirations of Dalit and Tribal Communities:

A need assessment was done in order to understand the needs of the community and prioritise the

programs. In the outcome education and livelihoods ranked high and hence the company has

prioritized on education and employability which would further lead to employment.

The AA strategy has been developed and keeps evolving depending and taking into consideration the

inputs received from surveys conducted in educational institutions, villages and from Dalit and Tribal

communities on regular interactions.

High Priority Needs

Jharkhand S-K District Odisha

Essential Amenities High High High

Education High High High

Employment High Medium High

Employability Medium High High

Entrepreneurship Low Low Medium

Dalit and Tribal

Population

High High High

Fig. 10: Needs of the key communities

AA Strategy alignment with business objectives:

AA intervention of the company is aligned with its business requirements and has been derived after

thoughtful deliberations. JUSCO is a Power Distribution Licensee for S-K District. Significant share of

JUSCO’s revenue business comes from S-K District. JUSCOs power distribution network passes

through remote villages of S-K Dist. which are mostly habituated by AA Communities. Security of

network and right of way for passing the distribution network can’t be ensured unless an amicable

relationship is established with the communities. JUSCO experienced extreme behaviour from

certain sects of the community which required a change in the mind set so as the community

becomes more receptive to business and welfare activities. JUSCO also realised that there is a huge

scope for AA interventions due to poor education and downtrodden condition of the communities.

With the project operating in a periphery with nearly 40% population from the AA community, the

company has good scope to plan and implement AA programs and in turn gain confidence and

goodwill from the community.

Though the focus of AA interventions is in the S-K District but Company continues to serve the needs

of the community at Jamshedpur through various interventions in the areas of education and

infrastructure.

JUSCO has a long term presence in the state of Odisha and keeping in view the high needs of

employability in the community, JUSCO had partnered with a NGO to work on the skill development

initiatives at Kalinganagar, in the state of Odisha. Jusco is also working for providing safe drinking

water in the schools in the vicinity of TSL Plant. Kalinganagar being the steel hub of the country has a

lot of potential for employment in view of the growth and urbanization of town.

Key AA objectives, Goals and performance measures:

The Strategic objectives, strategic goals, and initiatives/ enablers have been identified after taking into consideration social and business challenges and leveraging strengths and opportunities shown in Fig. 11.

Are

a

Social Challenges Business

Challenges

Focused

Objective

Goal

(1-3 yrs.) Strategy

Edu

cati

on

Lack of quality teaching and teachers in government schools. Inadequate infrastructure in schools attended by Dalit and Tribal children. Lack of motivation among teachers. Lack of awareness and financial strength of Dalit/Tribal parents to provide tuition to their children.

Addressing the

issue of social

unrest due to

illiteracy and

unavailability of

skilled labour

force

To provide support

for education

initiatives in our

area of operation

To increase

the no. of

students

touched

through

educational

interventions

on YoY basis.

Increase access

to

Education

through

educational

intervention

Improve quality

of

Education

A

rea

Social Challenges Business

Challenges

Focused

Objective

Goal

(1-3 yrs.) Strategy

Emp

loya

bil

ity

Unemployment &

Underemployment

among Dalit and Tribal

Youth

Shortage of

skilled workers

in nearby

communities

required in

manufacturing,

service sector

and other

industries

To provide access

to sustainable

livelihoods through

employability

training

To increase

through skill/

vocational/ ITI

Training

Provide skill

training for

creating

employment

opportunities for

educated &

uneducated

Youth.

Emp

loym

en

t

The number of

qualified youth is less

in the vicinity and in

the

community

surrounding our

workplace

The youth from

the AA

community

lack knowledge

on the visibility

and

opportunity in

the

organization.

To provide source

of income to

socially

disadvantaged

community (AA) by

giving employment

as direct and

indirect

employment

Increase in

AA

Employees

Increase in

number of Dalit

and Tribal direct

Employees

through

Attrition Back

Fill

Increase in

number of Dalit

and Tribal

contractors

workers

(indirect)

Entr

ep

ren

eu

rsh

ip

Lack of

entrepreneurship

among the youth

belonging to AA

community.

Uneducated and semi-

educated youth prefer

to be employed as

unskilled labourers

rather than become an

entrepreneur

Channelizing

the

Energy of

semi- educated

youth

belonging to AA

community to

become

entrepreneur

To promote

Entrepreneurship

Initiatives for AA

Category

AA vendor to

be developed

on YOY basis

Training on

Entrepreneur-

ship

development

Earmarking

certain items for

procurement

from AA

Vendors only

Esse

ntia

l

Enab

lers

Lack of essential

Amenities in the

villages under our

intervention

Building goodwill

in the rural

communities.

To work on all the 5

E’s depending on

the need

assessment.

Continue to

work in

adopted

villages

Prioritizing the

need on

education,

health

employability

and

infrastructure.

Fig. 11: Key AA objectives, Goals and performance measures

Vignette on Holistic Development of the Society – Village Harisundarpur

Adoption of first village – Harisundarpur

JUSCO in Partnership with Rotary (West) had

adopted village Harisundarpur in the S-K District in

FY 2014-15. It undertook interventions in all the

5Es including essential amenities. The village has a

total population of approx. 350 people all

belonging to Tribal community. JUSCO is providing

electricity to the village and both partners had

goodwill among the villagers. The adult literacy

rate is very low at 11.38% and 98% of the working

individuals are unskilled.

A need assessment was done for the village and it was realized that a huge scope exists for

development in the areas of education, infrastructural support, skill development and health care.

JUSCO in partnership with Rotary are working in the areas of all the five Es.

Objectives behind adoption of Harisundarpur:

To achieve faster and inclusive growth through infrastructure development, livelihood

promotion, health and education.

To develop leadership among the people to promote social harmony, unity and development.

To generate awareness about the government programs among the people in rural areas.

Provide basic infrastructure to the school for proper and easy learning of the children.

Improving the standard of living by creating employment opportunities for the village people.

Why Harisundarpur: SWOT Analysis

Strength Weakness

Presence of JUSCO as power distributor

Core competency of managing utility services

High employee engagement in voluntarism

Constraint of Financial Resources

Logistical restraint

Opportunity Threat

100% AA population

Potential to work across all 5Es (health, sanitation and infrastructure)

Rotary had worked earlier with the village.

Acceptability of Villagers

Socio-political issues

Fig. 12: SWOT Analysis Holistic development of a society which is predominantly AA

Holistic development of a society which is predominantly AA:

EDUCATION EMPLOYMENT

Started a Library in the school by providing books, book-racks and benches

Providing support to Aanganwadi Started an Academic Centre in the school Two Computers and E-Learning kit Sponsored five youth for skill development

courses.

Indirect Employment, sponsoring teachers for: • Academic centre • Computer • Sewing Coach • Kho-Kho Coach • Archery Coach

INFRASTRUCTURE

EMPLOYABILITY Repair of the old school to establish Diksha Centre

Deep boring facility Overhead tank and pump for running water

facility at the 2 toilets. Constructed hand wash station Increased the depth of a Pond Repair of Hand pumps Provided free electricity, fans and lights to

Diksha centre and School. Plantation of tree with tree guards.

3 youth for ITI training 4 youth for Skill development training Computer training to youth. Sewing training.

SPORTS

Kho-Kho & Archery coaching. Providing required sports materials. Organizing sports tournaments for school

children

HEALTH CARE ENTREPRENEURSHIP

13 Health Camps including Skin, Oral care, cancer screening and for mother and child care.

Eye check-up camp Planting food-bearing plants.

Mushroom cultivation coaching. Sewing coaching Fishery culture Distribution of free agricultural compost & plant

saplings

Fig. 13: Total Initiatives undertaken at village Harisundarpur

Impact

Historically this community stands exploited due to their vulnerabilities and is unwilling to repose trust in others. The villagers are now gradually developing their trust and faith which works towards the betterment of their village.

Education is building stronger foundation of 47 primary school level children who are taught at the Academic Centre also through e-learning

30 youth have enrolled to these classes out of which boys have participated at various district/state/national level archery competition and won accolades.

Safe drinking Water availability throughout the year

Running water made available to the unused toilets improving health and hygiene

Computer coaching is making 22 children and adults computer literate

Sewing classes are developing the skills of the women, coaching about 15 women

Infrastructural support like increasing the depth of the pond is helping the villagers in irrigation

Distribution of free compost and saplings for agriculture

During eye check-up camps 86 villagers were examined: 12 villagers were given specs and 23 Cataract patients identified have undergone free surgery.

Sponsoring 7 youths for ITI training

Case Study – Sports:

Khokho Coaching: Youths of villages of S-K district

are benefiting through the Khokho coaching class

being while at village Baramari. Boys have

participated at various state/ national level Khokho

competition:

National Level: 9 youths have participated on

All India Championship. Out of which, 7 belong

to the AA Community.

State Level: 12 youths have participated at State Level Khokho Competition. All of them belong

to the AA community.

Questions to be addressed Q1) For successful completion of any project the most important enabler is participation from villagers. Whenever any new welfare initiative is planned there is no evident resistance from villagers, however, the participation and volunteering from villagers is minimum. Also, whatever is done for welfare which does not require participation is received well but wherever we seek collaboration we receive very poor to no response. Suggest few steps to be taken for improving the collaboration between organisation and villagers, so that they become partners in village development activities. Q2) The increasing use of alcohol and its drinking-related problems have already emerged as major public health issue and is posing a series trouble in developmental initiatives. The country liquor brews in alternate houses is also an issue. Please make feasible suggestions to address this issue. Q3) Suggest two new initiatives which can be implemented in Harisundarpur (For current initiatives refer - Fig. 13: Total Initiatives undertaken at village Harisundarpur) with detailed analysis of feasibility, rough budget estimate, list of concerned stakeholders, timeline for implementation, impact analysis (metrics for measuring impact before and after implementation), benchmarking if sany.