Communication on Progress

Participant
Published
  • 2014/09/12
Time period
  • April 2013  –  June 2014
Format
  • 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
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.

  • PFC was set up in July 1986 as a Financial Institution (FI) dedicated to Power Sector financing and committed to the integrated development of the power and associated sectors. The Corporation was notified as a Public Financial Institution in 1990 under Companies Act, 1956. The Corporation was registered as a Non Banking Financial Company by RBI and has been conferred with the status of Nav-Ratna PSU by Govt. of India on 22nd June, 2007.

    PFC is providing large range of Financial Products and Services like Project Term Loan, Lease Financing, Direct Discounting of Bills, Short Term Loan, Consultancy Services etc. for various Power projects in Generation, Transmission, Distribution sector as well as for Renovation & Modernisation of existing power projects

    Our Vision:

    To be the leading institution in financing for sustainable development of Indian power sector and its linkages with an eye on global operation.

    Our Mission:

    To become a most preferred Financial Institution in power and financial sectors providing best products and services; promote efficient investments in Power Sector to enable availability of required quality power at minimum costs to consumers; reach out to global financial system for financing power development; act as a catalyst for reforming India’s Power Sector; and build human asset and systems for Power sector for tomorrow.

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.

Labour
  • 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 March 2014, 16.11% among the executives and 29.90% among the non-executives are female employees which come out to be 19.73% of the total workforce.

    Muslim Christian Jain Sikh Hindu
    12 7 6 10 410

    Ex-servicemen General OBC PWD SC ST
    1 268 69 10 73 25

Environment
  • 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.
    Till June 2014, PFC had cumulatively sanctioned 119 projects in solar, wind, biomas, baggase and small hydro sectors extending financial assistance of ` 4,336 crore for a total capacity of 1953 MW. During FY 2013-14and FY 2014-15, PFC has sanctioned 21 loans in renewable energy sector for capacity of 809 MW, extending financial assistance of ` 1336 crore. During the same period, PFC made a disbursement of ` 231 crore. These projects are funded at a rate 0.25% lower than the interest rate for Conventional projects in order to encourage renewable energy projects.
    PFCGEL has an authorized capital of ` 1200 crores and Paid up capital of ` 300 crore. The business operations of the Company will commence on receipt of NBFC registration certificate from RBI which is expected to be obtained shortly.

    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 2013-14, the Corporation has taken up following CSR initiatives.

    1. Reconstruction and Environment protection wall in Phyang & School: The Ladakh region of J&K state has been affected severely on account of the flash floods caused by cloud burst during August 2010 causing severe damage to various parts of the region. One of the worst areas affected was Phyang village in Leh District. The project for construction of Flood Protection Wall on the Phyang Nallah which shall help to prevent future losses to the Phyang village on account of cloud burst and floods was taken up by PFC in 2010. Financial Assistance of Rs. 454 Lakh was provided to them. The construction of Wall is completed in 2014.

    2. Construction of Toilet-cum-bathroom facilities at Leh-Ladakh region (J&K) (100 units): Hindustan Prefab Limited (HPL) (a Govt. of India enterprise) has constructed about 450 houses under CSR activities for various PSUs in Leh/ Ladakh region. HPL has requested PFC to support HPL in the project for construction of 100 toilet-cum-bathroom facilities in this region. PFC has provided financial assistance of Rs 190 lakh. These toilet-cum-bathrooms in the Solar colony in Leh region of J&K are fitted with solar glasses to keep it warm because there is very bright sunshine in the day and the temperature is below zero degree celcius at night. This will help in reducing dependence on conventional sources of energy.


    3. Solar lantern distribution to shepherds (750 nos.) in Kargil (J&K): Electrification has a significant impact on the general standard of living of the village communities. Kargil Renewable Energy Development Agency (KREDA) had requested PFC in the project of distribution of Solar Lanterns to the Shepherds in Kargil region (J&K) where electricity is provided only for 3-4 hours/ day during evening hours in most of the villages. Under this project PFC has distributed 750 Solar Lanterns among Shepherds of Kargil District. The financial assistance provided by PFC was of Rs. 22.50 Lakh.

    4. Street Lighting/ High Mast Light of Kargil Town and District Headquarters (J&K)- Kargil District is situated at a distance of 205 KMs from Srinagar (J&K). The District consists of 9 no. of Development Blocks. None of the block headquarters were provided streetlights mainly due to non- availability of power. Jammu & Kashmir Power Development Department has identified Kargil town and the District Headquarters for the purpose of providing street and had approached PFC for financial assistance. The project is in the implementation phase and our Corporation has provided Rs. 3.80 Crore for this purpose.

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

  • 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.

Anti-Corruption
  • 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.