Communication on Progress

  • 2016/09/08
Time period
  • September 2015  –  September 2016
  • Stand alone document – Basic COP Template
Differentiation Level
  • This COP places the participant on the Global Compact Learner Platform
  • Missing items have been flagged in the self-assessment
  • Includes a CEO statement of continued support for the UN Global Compact and its ten principles
  • Description of actions or relevant policies related to Human Rights
  • Description of actions or relevant policies related to Labour
  • Description of actions or relevant policies related to Environment
  • Description of actions or relevant policies related to Anti-Corruption
  • Includes a measurement of outcomes
  • Statement of continued support by the Chief Executive Officer
  • Statement of the company's chief executive (CEO or equivalent) expressing continued support for the Global Compact and renewing the company's ongoing commitment to the initiative and its principles.

  • No answer provided.
Human Rights
  • Assessment, policy and goals
  • Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

  • PFC benchmarks its practices with the best practices being followed by other Corporates in the world. These policies protect the right of the employees and provide them with the freedom to nurture the spirit of each person in order to create harmony at workplace and society. The Corporation enjoys a cordial relationship with its employees. The Corporation also protects human rights of the people which may be affected by the projects funded by PFC.

  • Implementation
  • Description of concrete actions to implement Human Rights policies, address Human Rights risks and respond to Human Rights violations.

  • In the project appraisal guidelines, PFC has ensured for submission of Environment Impact Assessment Report (EIA) from power entities with details of plans for Project Affected People (PAP) and Rehabilitation and Resettlement for them.Based on the rehabilitation and resettlement plan, Environmental clearance is being provided to the power entity.

    For the employees of the Corporation, Economic Rehabilitation Scheme is in place which provides monetary benefit and support to an employee in case of his Permanent Total Disablement, and to his family in case of his death, provided the Permanent Total Disablement / death, as the case may be, takes place while the employee is in service of the Corporation.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • PFC appoints a Lender’s engineer to ensure the validity of clearances till the project sanction terms is valid. This lender’s engineer verifies the status of Rehabilitation and Resettlement plan and submits a report to the concerned Ministry.

    We have Grievance redressal mechanism in place to provide an easily accessible machinery for settlement of grievances and to adopt measures in PFC as would ensure expeditious settlement of grievances of employees within the framework of the company’s rules and procedures in force from time to time.

  • Assessment, policy and goals
  • Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

  • PFC adheres to various laws passed by the Government of India to protect the interest of the working class. The Corporation does not support or have any form of forced or compulsory labour.

    Employees of the Corporation are free to form and join Unions or Associations. These bodies provide a platform for collective bargaining and protecting the rights of the employees. We also organize formal meetings with the organizations

  • Implementation
  • Description of concrete actions taken by the company to implement labour policies, address labour risks and respond to labour violations.

  • As per the recruitment policy of the Corporation, the age of the person at the time of appointment shall not be less than 18 years.

    The Corporation has uniform policies for all its employees. No discrimination is being made on the basis of sex, caste, religion, etc.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • As on 31st March2014, 16% among the executives and 33.64 % among the non-executives are female employees which come out to be 20.13 % of the total workforce.

    Muslim Christian Jain Sikh Hindu
    14 9 12 13 419

    Ex-servicemen General OBC PWD SC ST
    1 275 74 12 79 26

  • Assessment, policy and goals
  • Description of the relevance of environmental protection for the company (i.e. environmental risks and opportunities). Description of policies, public commitments and company goals on environmental protection.

  • As PFC is providing a large range of Financial Products and Services for various Power projects in Generation, Transmission, Distribution sector as well as for Renovation &Modernisation of existing power projects, it makes sure to provide financial assistance only to the projects which have received environment clearance from the State/Central Govt.

  • Implementation
  • Description of concrete actions to implement environmental policies, address environmental risks and respond to environmental incidents.

  • Given the Global movement to reduce emission of green house gases and the increasing dependence on renewable sources of energy, PFC Green Energy Limited (PFC-GEL), a wholly owned subsidiary of Power Finance Corporation (PFC), has been incorporated on 30-Mar-2011 and obtained Commencement of Business on 30-July-2011 with a vision to evolve as a leading Financial Institution by mobilizing funds for the Renewable Energy Sector & provide impetus to Government's initiative in supporting capacity addition in Renewable Energy Sector. PFC GEL has till date cumulatively sanctioned Rs. 1603 crores and disbursed Rs. 579.73 crores for capacity of 653 MW. In FY 2015-16, PFC GEL has sanctioned 21 loans of capacity 399.33 MW, extending financial assistance of Rs.717.70 crores and disbursed Rs.275.37 crores during the same period. Till 6th September 2016, PFC GEL has extended financial assistance to 3 loans for Rs.78.44 crores for capacity of 15 MW and disbursed Rs.207.23 crores during the same period.
    Till June 2016, PFC had cumulatively sanctioned 115 projects in solar, wind, biomas, baggase and small hydro sectors extending financial assistance of Rs. 9675.05 crores for a total capacity of 3109.75 MW. During FY 2014-15 and FY 2015-16, PFC has sanctioned 13 loans in renewable energy sector for capacity of 911.8 MW, extending financial assistance of Rs.3114.88 crores. During the same period, PFC made a disbursement of Rs.1779.35 crore. The current interest rates are 1.15% lower than the interest rate applicable for Conventional projects in order to encourage renewable energy projects.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates environmental performance.

  • Company has also implemented Corporate Social Responsibility Policy w.e.f. FY 2010-11 which focuses on providing support for environmental up-gradation and energy conservation.
    During FY 2015-16, the Corporation has taken up following CSR initiatives.

    1. Financial Assistance for construction of 9200 school toilets under Swacch Bharat – Swachh Vidyalaya:
    On the call of Hon’ble Prime Minister, PFC had undertaken the project to funding the construction of 9200 toilets (8100 in Andhra Pradesh and 1100 in Rajasthan) under Swachh Bharat –Swachh Vidyalay Abhiyan under aegis of Swachh Bharat Mission at a sanctioned cost of Rs.234 crores.

    The programme is step towards making schools open defecation free thereby improving health of students and reducing drop out students. For construction of toilets under SVA, PFC transferred funds for construction of 3681 toilets to District Administrations in Andhra Pradesh and 4422 toilets were constructed through implementing agency in Andhra Pradesh (i.e Hindustan Prefab Limited). Similarly for construction of toilets in Rajasthan, PFC transferred funds for construction of 590 toilets to Rajasthan Council of Elementary Education, Rajasthan Council Secondary Education and Director Swachh and 525 toilets were constructed through implementing agency in Rajasthan (i.e. Ircon Infrastructure and Services Limited).

    The project has been successfully completed.

    2. Project for Skill Development Trainings to SC/St/OBC/PwD/Women/EWS of Society for 1500 candidates through L&T Construction.:

    Skill development is one of the most important tools in developing requisite skills among un-employed youth belonging to SC/ST/OBC/Persons With Disability (PWD)/Women/EWS to help them avail opportunities through wage or self-employment for enhancing their income levels. The employment amongst these communities is expected to address the occurrence of any social evils as well as distractions as regular source of income provides stability and family/social harmony.

    Moreover, Government of India launched the ‘Skill India’ initiative on 16 July 2015 with an aim to train over 40 crore people in India in different skills by 2022. The initiatives include National Skill Development Mission, National Policy for Skill Development and Entrepreneurship 2015, PradhanMantriKaushalVikasYojana (PMKVY) scheme and the Skill Loan scheme.

    In view of that, PFC had undertaken the project at a cost of Rs.4.125 crores to train 1500 underprivileged candidates with construction oriented skills through L&T Construction, leading company in the field of construction. The project has been completed and 99% placements of trained candidates have been achieved.

    3. Financial Assistance to project for extending Clean Energy Solutions to 25000 nos. of households across backward districts of Bihar through TERI

    PFC had taken up the project of providing Financial Assistance to the “Extending clean energy solutions to 25000 no.s of households across backward districts in Bihar state” under CSR initiative through “The Energy and Resource Institute (TERI)” at a cost of Rs. 8.99 crores.

    Bihar is often referred to as India’s most under-developed state. Bihar has around 54% of the population living below poverty line and also has a low literacy rate of 63.8%2. Only 16.4% of Bihar’s population use electricity for lighting, the lowest in the country.

    Realizing the need of clean energy solutions for sustainable development, Power Finance Corporation (PFC), under its CSR & Sustainable Development Initiative has been providing support to implement projects under the aegis of LaBL (Ligiting a Billion Lives) programme with TERI. On the basis of the successful experience in implementing the clean energy projects with support from PFC in the Left Wing Extreme (LWE) and other backward districts, TERI has awarded with the project to implement 25,000 IDES in 3-5 backward districts of Bihar to provide clean lighting and cooking systems in 25,000 households and also create around 100 women energy entrepreneurs to provide after sales service of the IDES (Integrated Domestic Energy Systems). This is proposed to be achieved in partnership with BRLPS-JEEViKA1 and establishment of Energy Enterprises (EEs) to serve local needs of after-sales service and further up scaling. Under this project, districts of Gaya, Madhubani, Khagaria and Purnia have been selected for execution of the project.

    The project is under progress and successfully completed the first phase.

    The projects undertaken as CSR initiatives shall be monitored as per any of the following mechanisms:-

    i) Internally by the CSR Unit;
    ii) Deploying Teams specifically identified for the projects;
    iii) Deploying an external independent agency identified by the CSR Committee.

    The Monitoring Report shall be submitted to the CSR Committee before release of payment as per conditions as laid down in the MoA.

    The progress report of the activities undertaken shall be reported to the various stake holders on a regular basis as under:

    a) BoD on a Quarterly basis;
    b) Ministry of Power in the Quarterly Review Meetings;
    c) Annual Report.

    The information on the activities undertaken by the Corporation on CSR shall also be regularly updated on the Corporation’s website for public use.

  • Assessment, policy and goals
  • Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.

  • The Corporation has introduced Anti-Fraud Policy. This policy applies to any fraud or suspected fraud in the Corporation, involving employees (including contractual employees) as well as shareholders, consultants, vendors, suppliers, service providers, contractors, lenders, borrowers, outside agencies and / or any other parties with a business relationship with the Corporation. This policy helps in promotion of consistent legal and ethical organizational behavior by assigning responsibility for the development of controls, providing guidelines for reporting and conduct of investigations of suspected fraudulent behavior.

  • Implementation
  • Description of concrete actions to implement anti-corruption policies, address anti-corruption risks and respond to incidents.

  • Under the policy, a Nodal Officer has been appointed for the purpose of co-ordination of preliminary investigation.

    Any fraud that is detected or suspected must be reported immediately to the Nodal Officer who will further investigate it as per the laid down procedure.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates anti-corruption performance.

  • A transparent and independent investigation shall be made for ensuring consistent legal and ethical organizational behavior in the Organization.