Business Excellence in GMR Energy

Transcription

Business Excellence in
GMR Energy
FY 2013-14
Business Excellence in
GMR Energy - FY 2013-14
INSIDE THE REPORT
Self-Certification
04
Glossary of key terms
05
Glossary of figures & tables
07
Organizational Profile
10
Process Categories
Category 1. Leadership
27
Category 2. Strategic Planning
52
Category 3. Customer Focus
64
Category 4. Measurement, Analysis and Knowledge Management
73
Category 5. Workforce Focus
87
Category 6. Operation Focus
103
Business Results
2
Business Excellence in GMR Energy | FY 2013-14
116
Dear Colleagues
2. To manage our rapid growth, we strengthened our
In our journey of 4 years with Business Excellence, we are
proud to be associated with the legacy of the framework left by
Malcolm Baldridge. He shared his birthplace Omaha Nebraska
with Warren Buffet. He was a brilliant student of Yale, worked
as foundry hand in an iron making company and rose to be
its President. Thereafter he served in World War II, returned
to rise up in another company Scovil to be its Chairman,
while leading its transformation from a troubled brass mill to a
highly profitable company. He was nominated to be Secretary
of Commerce by President Reagan, reduced Commerce
Department budget by 30%, administrative personnel by
25%, was a strong proponent of quality management even in
government, worked hard to build trade bridges with Soviet
Union, China and India and was considered one of the most
successful Commerce Secretaries ever.
3. For our projects, we applied highly improved and
Your enthusiastic pursuit of GMR Business Excellence Model
(GBEM) over these years has helped GMR Energy to build
capabilities to improve continually and adapt to rapidly changing
business environment. I must convey my deep appreciation of
all your effort during FY14, when we took major steps to make
GMR Energy more efficient and effective. While we worked
together to make internal changes happen, we were also
contending with an unprecedented downturn in the global and
Indian economy. This did not slow us down, but in fact, made
us more determined to make large scale improvements along
the length and breadth of GMR Energy.
While we achieved significant gains through CIPs and Idea
Factory and cleaned up our KM portal, I would list the big ticket
transformational measures as the following:
1. Organization structure was changed from horizontal to
vertical, with the formation of SBUs that made us flatter,
more agile with greater empowerment down the line; our
projects under construction and operating plants were given
more authority and responsibility, with clear organization
structures (Page No: 32 – 1.1A3, Page No: 88, 5.1A3)
governance processes through more rigorous application of
audits, well beyond statutory requirements towards greater
management assurance; for key business processes,
decision matrix in the form of RASCI were formulated and
implemented; DoPs for key processes were reviewed and
updated; business reviews were re-designed (Page No: 37,
1.2A1)
documented processes in GKEL, CTPP and Bajoli Holi,
through a program which was code named ‘Bhavyatha’
(Page No: 114, 6.2B3)
4. We achieved major cost optimization in diverse areas – from
GEMS mines operations in Indonesia to significant resource
optimization across GMR Energy (Page No: 108, 6.1B2)
5. We drove Environment, Health, Safety and Governance in
an integrated manner, with emphasis on ethics & integrity
through the GRI G4 Corporate Sustainability framework
(Page No:42, 1.2C1, Page No: 90, 5.1B1)
6. We are pursuing Asset Light Asset Right strategy to
continually review our portfolio and maximize valuations
(Page No: 56, 2.1A2)
I am confident, just as you are that these transformational
measures will differentiate us in the market and yield results
on all key areas of interest of investors, employees, suppliers,
environment and society, in a balanced manner.
I thank each one of you for your precious contribution towards
all-round business excellence in GMR Energy. Let us all
continue on this journey focusing on our immediate priorities of
liquidity, profitability and structure & processes, without losing
sight of capability building for the long term.
With Best Wishes
GBS Raju
3
GBEM 2014 Internal Assessment - Applicant Self Certification
1. Applicant Company
Applicant
GMR Energy Limited
IBC Knowledge Park, Phase II, D Block, 4/1, Off Bannerghatta Road
Bangalore – 560029
Karnataka (State), India.
080-40432000
www.gmrgroup.in
Address
Telephone
Website
2. Senior Management Details
Official Details
Company
Name
Designation
Telephone
Fax
E-Mail
GMR Energy Limited
GBS Raju
Chairman – Energy
+91 80 40432774
+91 80 40432826
[email protected]
SBU
SBU Head
Thermal (Coal)
Hydro
GKEL
Gas & Liquid
Corporate Functions
Coal Assets
Strategy & Development
Finance & Accounts
S N Barde
R V Sheshan
R V Sheshan
Raghunandanan GK
Ashis Basu
Avinash Shah
Aniruddha Ganguly
Bhaskar A Rao
3. Organization Chart
Attached as Fig. OP-12 in the Organizational Profile reflects reporting relationships with GMR Energy Corporate Center, and
includes the SBUs/functions in the organization.
4. No of Employees
In the Company:
1089
5. Site Listing and Location Details
SBU
Location
EMCO Warora, CTPP Tilda
G&L
GPCL, GVPGL, GEL KKD, GREL
GKEL
Kamalanga
Hydro
Delhi, BH, Alaknanda, Talong, Nepal (UMS, UK)
Corporate Functions Delhi
Coal Assets
Bangalore, Indonesia
S&D
Bangalore, Delhi
F&A
Bangalore
Thermal Coal
No of Employees
358
184
269
144
38
21
48
27
Service Description
Operating Asset, Project
Operating Asset, Project
Operating Asset
Project, Office
Support
Coal Mines
Support
Support
6. Site Listing and Location Details
S NO
Line of Business
Turnover
1
Power Generation, Power Transmission & Trading
2986 Crs.
7. We certify that we are eligible for participation in the GBEM Internal Assessment 2014, on account of being an applicant
with an independent Board of Directors
8. Application Release Statement
We understand that this application will be reviewed by a Team of Assessors. We agree to host the consensus meeting and the
site visit, as part of this process, and to facilitate & support an open and unbiased assessment. We also agree to share nonproprietary information on our Business Excellence Processes, for the benefit of other GMR Group Companies.
Date: 13th August, 2014
4
Glossary of Key Terms
ALAR
AOP
APC
APTRANSCO
ATR
BBS
BCM
BD
BE
BH
BHR/
CHR
BOD
BOP
BPC
BSC
BTG
CA
CAPA
CC
CDM
CEA
CEO
Asset Light Asset Right
Annual Operating Plan
Auxiliary Power Consumption
Andhra Pradesh State Transmission Company
Action Taken Report
Behavior Based Safety
Business Chairman
Business Development
Business Excellence
Bajoli Holi Hydro Project
Business HR / Corporate HR
Business Organization Development
Balance of Plant
Business Planning & Consolidation
Balanced Score Card
Boiler, Turbine, Generator
Corporate Affairs
Corrective Action, Preventive Action
Corporate Communication
Clean Development Mechanism
Central Electricity Authority
Chief Executive Officer
Commercial & Contracts, Engineering,
CEPCOM Procurement, Construction, Operations &
Maintenance
CERC
Central Electricity Regulatory Commission
CFO
Chief Financial Officer
CFT
Cross Functional Team
CIDP
Comprehensive Individual Development Plan
CII
Confederation of Indian Industry
CIP
Continuous Improvement Project
CoBCE Code of Business Conduct and Ethics
COD
Commercial Operation Date
CPD
Central Procurement Department
CPP
Captive Power Plant
C-SAT
Customer Satisfaction
CSPD
Corporate Strategic Planning Department
CSR
Corporate Social Responsibility
CSS
Customer Satisfaction Survey
CTPP
Chhattisgarh Thermal Power Plant
CTU
Central Transmission Utility
DC
Development Center
DISCOM
DLP
DoP
DR
EBIDTA
EEEC
EHS
ELP
EMS
EPC
ERM
ERP
ESS
F&A
FC
FMS
G&L
GAIL
GBEM
CTPP
GCFO
GCM
GCM
SEF
GEL
GET
GHB
GIL
GKEL
Distribution Company
Data Loss Protection
Delegation of Power
Disaster Recovery
Earnings before Interest, Taxes, Depreciation
and Amortization
Employee Engagement & Ethical Culture
Environment, Health & Safety
Emerging Leaders Program
Environment Management System
Engineering, Procurement & Construction
Enterprise Risk Management
Enterprise Resource Planning
Employee Self Service
Finance & Accounts
Financial Closure
Facility Management Services
Gas & Liquid SBU
Gas Authority of India Limited
GMR Business Excellence Model
GMR Chhattisgarh Energy Limited
Group Chief Financial Officer
Group Chairman
Group Chairman’s Social Entrepreneurship Fund
GMR Energy Limited
Graduate Engineer Trainee
Group Holding Board
GMR Infrastructure Limited
GMR Kamalanga Energy Limited
GMRETL GMR Energy Trading Limited
GMRVF GMR Varalakshmi Foundation
GoI
Government Of India
GPAC
Group Performance Advisory Council
GPCL
GMR Power Corporation Limited
GREL
GMR Rajahmundry Energy Limited
GRI, G4 Global Reporting Initiative
GTA
Gas Transportation Agreement
GUVNL Gujarat Urja Vikas Nigam Limited
HOD
Head of Department
HPCL
Hindustan Petroleum Corporation Limited
HRC
HR Council
IDFC
Infrastructure Development Finance Company
IDP
Individual Development Plan
IEX
Indian Energy Exchange
5
IISc
IJP
IMS
IPO
IPP
ISMS
JRL
KM
KPI
KSS
LDC
LDP
LNG
LSHS
LT & ST
Plans
LTI
LTIFR
LTSP
MAG
MDC
MDP
MIS
MoC
MoEF
MoP
MoPNG
MoU
MPP
MT
MTBF
MTPA
NPV/IRR
O&M
OA
OEM
OFI
OHSAS
ORM
P&L
PAT
PBT
PDD
PDM
PDP
6
Indian Institute of Science
Internal Job Posting
Integrated Management System
Initial Public Offering
Independent Power Producer
Information Security Management System
Job Responsibility Level
Knowledge Management
Key Performance Indicator
Knowledge Sharing Session
Load Dispatch Center
Leadership Development Program
Liquefied Natural Gas
Low Sulphur Heavy Stock
Long Term and Short Term Plans
Loss Time Injury
Loss Time Injury Frequency Rate
Long Term Strategic Plan
Management Assurance Group
Management Development Center
Management Development Program
Management Information System
Ministry of Commerce
Ministry of Environment & Forests
Ministry of Power
Ministry of Petroleum & Natural Gas
Memorandum of Understanding
Merchant Power Plants
Metric Tonne
Mean Time Between Failure
Metric Tonne per Annum
Net Present Value / Internal Rate of Return
Operation & Maintenance
Open Access
Original Equipment Manufacturer
Opportunity for Improvement
Occupational Health & Safety Advisory Services
Operations Review Meet
Profit & Loss
Profit after taxes
Profit before taxes
Professional Development Dialogue
Policy Deployment Matrix
Professional Development Plan
PESTLE
PLF
PMI
PMP
PPA
PPEs
PSBSC
PTS
QMS
R&R
RASCI
RE
REC
RLDC/
SLDC
S&D
SBU
SCADA
SEB
SERC
SIPOC
SLA
SLT
SMART
SPG
SPP
SRLDC
STEP
STU
SWOT
TANGEDCO
TNEB
TNI
TPM
TPP
TQMS
UMPP
VP
VPGL/
GVPGL
WAN/VPN
Political, Economic, Sociological, Technological,
Legal, Environmental
Plant Load Factor
Project Management Institute
Performance Management Process
Power Purchase Agreement
Personal Protective Equipments
Power Sector Business Steering Committee
Project Technical Services
Quality Management System
Reward & Recognition
Responsible, Approve, Support, Consult,
Informed
Renewable Energy
Renewable Energy Certificate
Regional Load Dispatch Center / State Load
Dispatch Center
Strategy & Development
Strategic Business Unit
Supervisory Control and Data Acquisition
Systems
State Electricity Board
State Electricity Regulatory Commission
Supply Input Process Output Customer
Service Level Agreement
Senior Leadership Team
Specific, Measurable, Attainable, Relevant &
Time bound
Strategic Planning Group
Strategic Planning Process
Southern Regional Load Dispatch Center
Staff Training & Enhancement Program
State Transmission Utility
Strength, Weakness, Opportunity, Threat
Tamil Nadu Generation & Distribution Company
Tamil Nadu State Electricity Board
Training Need Identification
Total Productive Maintenance
Thermal Power Plant
Tata Quality Management Services
Ultra Mega Power Plant
Vice President
Vemagiri Power Generation Limited
Wide Area Network / Virtual Private Network
Glossary of Figures & Tables
Sr No.
Fig. No.
Description
1
OP. 1
Peer Assessment – Operating/Under Implementation/Underdevelopment capacity & Key Financials
2
OP. 2
Competitive Changes
3
OP. 3
Key Business, Operational, Societal Responsibility, HR Strategic Challenges and Advantages
4
OP. 4
Source and type of Competitive & Comparative Information
5
OP. 6
GMR Energy – Key Events & Milestones
6
OP. 7
Energy Sector – Awards & Accreditations
7
OP. 8
Main products & Delivery mechanisms
8
OP. 9
GMR Energy Vision, Mission, Values & Beliefs
9
OP. 10 Workforce Profile – Segments & Diversity
10
OP. 11 Major Facilities, Technologies & Fuel
11
OP. 12 GMR Energy : Organogram
12
OP. 13 Market Segments, Customer Segments & Key Expectations
13
OP. 14 Stakeholder groups and Key Expectations
14
OP. 15 Suppliers, Partners, Collaborators, Relationship mechanisms, Supply Chain Requirement
15
OP. 16 Elements of Improvement system and Approach
16
OP. 17 Performance Improvement System
Category 1. Leadership
17
1.1-1
GMR Energy Leadership System
18
1.1-2
Deployment of GMR Leadership System and its effectiveness
19
1.1-3
Deployment of Vision & Values to Stakeholders
20
1.1-4
Personal Actions by Senior Leaders reinforcing Values
21
1.1-5
“3 Tier” Ethics Structure & Senior Leaders’ role in Management of Ethics
22
1.1-6
Leadership led improvements in Legal/Ethical Behavior, Safety, and Quality & Climate Change
23
1.1-7
Creating Sustainable Organization
24
1.1-8
Sustainability Themes & Focus Areas
25
1.1-9
Enhancing Leadership skills
26
1.1-10 Leadership Communications
27
1.1-11 Creating Focus on Action
28
1.2-1
GMR Energy – Board & Governance System
29
1.2-2
Leadership System Effectiveness
30
1.2-3
Proactive approaches surpassing Legal & Statutory Requirements & Addressing Societal Impact
31
1.2-4
Process of complying and surpassing Legal Requirements
32
1.2-5
Key Risks identified for sector & Mitigation plan
33
1.2-6
Management of Business Ethics
34
1.2-7
CS Approaches & Initiatives
35
1.2-8
GMR Energy Sustainability Initiatives Roadmap
36
1.2-9
GMRVF Project Planning
37
1.2-10 GMRVF Key Initiatives across GMR Energy Sites
Category 2. Strategic Planning
38
2.1-1
Strategy Planning Process
7
39
40
41
42
43
44
45
46
47
48
49
2.1-2
2.1-3
2.1-4
2.1-5
2.1-6
2.1-7
2.1-8
2.2-1
2.2-2
2.2-3
2.2-4
Planning Horizons
Identification of Strategic Advantages, Challenges & Blind Spots
Data Collection and Analysis for SPP at the time of Environment Scan
Board Direction for Strategy Development
E&I in Strategic Planning Process
Strategic Objectives, Action Plans, Timelines and Performance Measures
Alignment of Strategic Themes and Opportunities for Innovation
Strategy Deployment Process
Financial Resource Planning
Risk Management Methodology
Abstract of HR Roadmap – FY15 to FY17
Category 3. Customer Focus
Customer Life cycle support and relationship for positive customer experience – Short term & Medium
50
3.1-1
Term
51
3.1-2
Customer Life cycle support and relationship for positive customer experience – Long term
52
3.1-3
Customer Listening – Potential, Competitor and Former customers – Short term market segments
53
3.1-4
Customer Satisfaction and Engagement Measurement
54
3.1-5
E&I on Customer Satisfaction and Engagement Measurement
55
3.2-1
Service Offerings
56
3.2-2
Process to identify and innovate service offering through experience and expectation of customer
57
3.2-3
Customer support across Life cycle
58
3.2-4
Customer & Market Segmentations
59
3.2-5
Building Customer Centric Culture
60
3.2-6
Customer Relationships
61
3.2-7
Complaint Management Process
Category 4. Measurement, Analysis & Knowledge Management
62
4.1-1
Performance Measurement System
63
4.1-2
Selection & Collection of Data
64
4.1-3
Organization Performance Measurement
65
4.1-4
Selection and Usage of Comparative Data
66
4.1-5
Comparative data usage for supporting Decision making & Innovation
67
4.1-6
Performance Review and Capability Analysis
68
4.1-7
Review Forums to assess Organization Performance
69
4.1-8
E&I through Organizational Performance & Review
70
4.2-1
Properties of Data, Information & Knowledge
71
4.2-2
Document Management System
72
4.2-3
“5 Pillar” Enterprise IT Service Model
73
4.2-4
IT Metrics Framework
74
4.2-5
Stakeholders Information sharing mechanisms
75
4.2-5A Integrated Data and Information System
76
4.2-6
IT Solutions and ERP modules
77
4.2-7
“5 Pillar” KM Framework
78
4.2-8
KM Platform at GMR Energy
8
79
80
81
4.2-9
4.2-10
4.2-11
E&I of KM Framework
IT Hardware, Software properties
Emergency availability of Data & Information
Category 5. Workforce Focus
82
5.1-1
GMR Energy HR System
83
5.1-2
Workforce Capacity & Capability Assessment Process
84
5.1-3
Organizing & Managing Workforce
85
5.1-4
Workforce Change Management
86
5.1-5
Workforce Process for improving Occupational Health & Safety
87
5.1-6
Approaches, Measures, & Initiatives related to EHS Workforce Change Management
88
5.1-7
Process for supporting workforce with benefits
89
5.1-8
Policies & Benefits tailored to diverse workforce
90
5.2-1
Methods for capturing inputs on Engagement/Satisfaction
91
5.2-2
Forums and Practices supporting high performance & Workforce Engagement
92
5.2-3
Performance Management System at GMR Energy
93
5.2-3A PMP Grievance Management Process
94
5.2-4
R&R for high performance
95
5.2-5
PMP support to Innovation, Customer & Business Focus
96
5.2-6
Correlation of Engagement results with Business Results
97
5.2-7
Learning & Development System
98
5.2-8
L&D Mechanisms
99
5.2-9
Succession Planning Process
Category 6. Operation Focus
100
6.1-1
Processes to Design & Innovate Work System and Identification of Internal & External Processes
101
6.1-2
GMR Energy – Work System
Key Work System capitalizing on Core Competency and Delivering Customer Value, Sustainability &
102
6.1-3
Organizational Success
103
6.1-4
Work System Requirement
104
6.1-5
Cost Control Measures
105
6.1-6
Prevention of defects, errors and rework, minimizing cost of inspection, test and audits
106
6.1-7
Workplace Emergency Management Plan
107
6.1-8
Emergency Preparedness – Systems & Processes
108
6.2-1
Process for designing and innovating work processes
Key Work Processes, Work Process Requirements, Determination of work process requirements and
109
6.2-2
measures
110
6.2-3
Process for improving and innovating work processes
9
P.2 Organizational Situation
Overview of the Indian Economy
Key Challenges
Opportunities
GDP: In the past couple of years, there has been a fall in the rate of growth
Stable democracy with peaceful political
environment
causing concern that the period of high growth is coming to an end.
(growth fell to a low of 4.4% in 2013)
Current Account Deficit: India’s growth has been at the cost of a persistent current
account deficit (which reached over 6% of GDP in 2012). India needs to import
crude oil, machinery and many other raw commodities. Its export sector has
struggled to match the growth of imports.
Rupee devaluation: The large current account deficit has caused the Rupee to fall,
despite very low interest rates in US and Europe.
Inflation: India has struggled to keep inflation low. In 2013, inflation was nudging
near 10%, hurting the living standards of the poor who are particularly vulnerable
to the price of food. High inflation is also harming confidence for investment.
Urbanization: Parts of the Indian economy have made rapid growth, but it has
Large market backed by
• a rapidly growing size of the middle
class with purchasing power and
• growing young, educated population
with high aspirations
Strong domestic savings driven by
household savings and holding of gold
and other reserves
proved difficult for the fruits of economic growth to filter through to all areas of the
economy, especially isolated rural areas where there is poor infrastructure.
Highly under-penetrated banking system
and equity market
Government budget deficit: Despite years of economic growth, the government
has found it difficult to balance the budget. The budget deficit is 4.8% of GDP
in the year 2012–13. Public sector debt is 68.05% of GDP, one of highest for a
developing economy. Tax collection is still limited by tax evasion and corruption
(tax collection only accounts for 9% of GDP – one of lowest in the world).
Strong entrepreneurial talent pool in the
country with ‘animal instinct’
Large natural resource pool of minerals,
still untapped
Policy regime: Policy paralysis, stability of existing policies, market unfriendly
Fertile land with great scope of
productivity improvement
Regulatory framework is weak, subject to constant changes and regulatory bodies
Long coast line and river ways for low
cost transportation
policies
are composed of government appointed people robbing it of independent view
Annual GDP Growth Rate of India (%) 10 8 6 7.9 4 2 0 10
Peaceful geo-political environment and
no cause for alarm from our neighbors
2011 4.9 2012 5.9 Huge infrastructure building up
opportunity
Average In*lation in India -‐ CPI (%) 12.00 10.00 6.4 8.00 8.87 9.30 2011 2012 10.92 6.95 6.00 4.00 2013 Business Excellence in GMR Energy | FY 2013-14
2014 2.00 0.00 2013 2014 Current Account De,icit -‐ India (Billion USD) -‐31.86 -‐35.00 -‐30.00 -‐25.00 -‐20.00 -‐15.00 -‐17.44 0.00 -‐7.00 -‐6.00 -‐5.00 -‐20.16 -‐4.00 -‐10.00 -‐5.00 India Budget De-icit (% of GDP) 2012 Overview of Power Sector
2013 2014 -‐5.80 -‐4.90 -‐4.50 -‐3.00 -‐2.00 -‐4.20 2011 -‐5.10 -‐1.00 0.00 2011 2012 2013 2014 Indian Power Sector Key Challenges
Opportunities
Financial Health of State Discoms:
Per Capita Consumption:
India’s per capita energy
consumption is one of the
lowest in the world. It has huge
headroom for growth with
rising income levels, increasing
urbanization and growing
youth population.
Years of populist tariff schemes, political interference, huge AT&C losses of over 30% and
operational inefficiencies have adversely affected the financial health of State Discoms
which are currently plagued with humongous outstanding debt of Rs. 1.9 Lakh Crores
Distribution sector reforms:
Distribution sector is still mostly state government owned and there has been inadequate
investment, modernization and penetration across the country, thus suppressing actual
power demand. Over 30% of our population has no access to electricity even today.
Coal: India has the world’s
4th largest coal deposit. Most
of the coal deposits are with
Thermal capacity addition is plagued by the growing fuel availability concerns faced by
government owned monopoly.
the Industry. Significant gas based capacity of more than 20,000 MW is idle due to nonIf world-class processes
availability of gas. Coal supply by CIL is restricted to around 65% of actual coal requirement and technologies can be
by coal based thermal plants, leading to increased dependence on imported coal with the
rapidly adopted, and modern
cascading result of high power generation costs. Fuel import bill is the biggest component of regulatory regime established
our Current Account Deficit and a cause of weak Rupee and high inflation.
with efficient transportation
system, supply can improve
Under-procurement of Power by States:
significantly.
Increasing power generation costs due to limited fuel availability, poor financial health of
Huge potential of renewable
State Discoms, high AT&C losses have contributed in suppressed demand projections by
energy: Wind energy potential
State Discoms.
of 102788 MW is largely
Inimical Financing Environment:
untapped, with installed
capacity of 19052 MW. Hydro
Over the last 4-5 years, the lending rates have increased significantly from the time of
project appraisal resulting in project cost overrun and strain on the financial health of power potential of 84044 MW is also
largely untapped, with installed
developers and that of the lenders as well. Power projects being capital intensive, long
capacity of 40661 MW, while
gestation projects, financial instruments are not available that can provide low, stable long
solar potential is also largely
term financing. Life Insurance Funds and Pension Funds are not allowed to be tapped for
untapped at 2647 MW of
this kind of funding though they are ideally suited for it.
installed capacity.
Fuel Security Concerns:
11
Power evacuation:
Transmission of power is facing several points of bottleneck across the country, preventing
free flow of power from suppliers to consumers, thus creating additional shortage of power
to consumers and surplus of power for producers
Policy Paralysis:
The micro level policies governing the fuel cost pass-through, mega power policy;
competitive bidding guidelines are not in consonance with the macro framework like The
Electricity Act 2003 and the National Electricity Policy.
Environmental clearances: Environmental clearances are the major hurdle in the growth for
investment project. It takes 1.5 -3 years for the clearances which delays the planning for
the project. However, to fast track major investment projects and impart transparency in
clearance procedures, the project monitoring group (PMG) under the cabinet secretariat has
decided to digitize all applications for clearances relating to forest, environment and others
by March 2015.
Land acquisition: The new Land Acquisition Act was formulated to provide just and fair
compensation to those whose land is taken away for constructing roads, buildings or
factories, replacing 120-year-old legislation. The new law — Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation and Resettlement Act — stipulates
mandatory consent of at least 70% of affected people for acquiring land for Public Private
Partnership (PPP) projects and 80% for acquiring land for private companies. It also
proposes that farmers and landowners be paid up to four times the market value for land
acquired in rural areas and two times the market value in urban areas. However, the New
government at the Centre indicated that it may change few provisions of the land acquisition
law.
Unconventional energy: USA
has moved ahead in terms
of breakthrough shale gas
technology., Iceland, Japan
and New Zealand have proven
technology for geo-thermal
energy, Coal-bed Methane
deposits in India are not
insignificant. India has great
opportunity to tap these for
future energy security.
Public private partnership
model:
There is a strong need to push
for wider-scale implementation
of public private partnership
models. The private sector
has been playing a key role
in generating power; a more
supportive environment will
help in bridging the energy
deficit of the country.
P.2 A Competitive Environment
and poor financial health of Discoms.
The electricity market is highly regulated by the government
despite policies to deregulate it. While power generation is
open to private players, power transmission and distribution
markets open to private sector are very small. GMR Energy
is not in the business of gas production. It has coal mines in
Indonesia.
Detailed peer assessment is carried out during Annual Strategic
Planning process. As per the current regulations prevailing in
the sector, Competition amongst peers is restricted to:
1. Capacity Addition through acquiring projects / developing
new projects through regulated bids
2. Sale of Power through Long term bids, and medium &
short term merchant market through bilateral and power
exchanges.
P.2 A1 Competitive Position
What is your competitive position? What are your relative size
and growth in your industry or markets served? What are the
numbers and types of competitors for your organization?
Few players posing competition to GMR Energy in private
Power Generation Sector is Reliance Power, Lanco Infra,
Adani Power, JSW Energy, Tata Power, GVK Power and JP
Power (Fig. OP.1)
Market has stagnated over the last couple of years due to overcapacity in base load, transmission constraints, fuel shortage
Fig. OP.1 – Peer Assessment – Operating/Under Implementation/Underdevelopment capacity & Key Financials
Company
12
MW
(Ins)
Fuel Mix (%)
MW (Under
Development &
Construction)
Coal
Gas
Revenue (Rs. Mn)
Hydro Renewable
FY12
EBIDTA (Rs. Mn)
FY13
FY14
FY12
FY13
PAT (Rs. Mn)
FY14
FY12
FY13
FY14
Adani Power
7315
8460
99.6%
0%
0%
0.4%
40898
67748
107144.3
13252
9550
38842.3
(996)
(23256)
5952.6
Tata Power
6468
7503
80%
9%
7%
5%
84958.4
95672.8
86270.4
27680.9
27457.3
29465.1
11697.3
10246.9
9540.8
Lanco Infra
3854
18247
54%
23%
16%
1%
101690
135698
47411.1
18394
24130
7380.4
(1164)
(12136)
133.4
JSW Energy
3140
8080
96%
0%
0%
0%
61188
89243
58026.1
14478
27932
22675.7
2995
10549
6024.8
Reliance Power
3120
41776
67%
30%
0%
3%
20192
48786
55440
6239
16649
19140
8666
9635
10260
GMR Energy
2498
6013
55%
19%
26%
0.3%
22410
21520
29860
2510
1400
1510
(1340)
(7280)
(13380)
JP Power
2200
11150
77%
0%
23%
1%
16155.6
22525.8
26775
15267
17713.1
19077.9
4029.5
3291.5
197.3
GVK Power
1249
5533
18%
31%
74%
0%
404.5
9370.2
4082.7
117.2
672.4
327.8
(82.7)
(2300.1)
(2828.6)
P.2 A2 Competitive Changes
What are any KEY changes taking place that affect your competitive situation, including opportunities for INNOVATION and
collaboration, as appropriate?
Fig. OP.2 – Competitive Changes
Aspect
Competitive Changes
Fresh Capacity
Addition
• Fresh Capacity addition from private sector is decreasing and may lead to higher deficit in the
Domestic Fuel (Coal)
latter part of 12th Plan
• Coal Production Enhancement, Speedy Clearances and Restructuring of Coal India are high on
the priority list of Coal Ministry, Target set to increase coal production by 13% (YoY)
• Near term outlook for domestic Natural gas production continues to remain bleak
Availability & Pricing
of Natural Gas
• The Govt. is considering a bailout package for Gas based power plants that include ensuring
cash-strapped state power distribution companies continue to buy electricity from them after a
scheduled price hike making available power from plants that are idling for want of fuel and a new
repayment plan for a few other idle power plants.
• Liquidity expected to be tight; debt for infra sector considering sectorial limits, current exposure
Project Funding
& equity availability is a concern, however due to recently improved Industry & Sector outlook
options of attracting funds from Private Equity and Retail investors through IPO Route would help
GMR Energy
• Power Projects awaiting Environmental Clearances have been reviewed by Environment Ministry
Clearances &
Approvals
and Power Ministry and a process is set to speed up the process
Renewable Energy
Financial Health of
Discoms
• Supreme court to reevaluate all the hydro projects being set up (Alaknanda is one such project
which may be affected)
• Scheme for Financial Restructuring has been approved by Cabinet committee on Economic
Affairs, this scheme contains various measures required to be taken by State Discoms and State
governments for achieving the Financial Turnaround of the Discoms by restructuring their debt with
support through a transitional financial mechanism by the Central Govt.
P.2 B Strategic Context
In spite of significant strides made in capacity addition, the power sector continues to be in the supply deficit regime with the peak
and energy deficits for FY 14 being 3.9% and 4.4 % respectively. The capacity utilization of newly added capacity remained at low
levels primarily driven by non-availability of fossil fuels – gas and coal. GMR energy was severely affected by the low availability
of natural gas, which crippled its operations in the 388 MW VPGL and 220 MW GEL plants. In addition, the commissioning and
operations of the 768 MW GREL plant, built at a cost of 3,803 Cr has been stalled due to non-availability of natural gas allocation.
Key Aspects Current Scenario
Key Takeaways
• India: CRISIL forecasts a 6% GDP growth for 2014-15 as compared to an expected 4.8% for 2013-14
• In the US, economy is beginning to see recovery & European economic recovery is on cards albeit at a
slow pace in 2014
Macro
Environment
• FY 15 Interest rates are expected to remain the same; 8% CPI & 6% WPI is being forecasted for 201415
• Liquidity expected to be tight; debt for infra sector considering sectorial limits, current exposure & equity
availability is a conc ern
• INR- USD exchange rates trend will remain uncertain; Re is expected to settle between INR/$ rate:
62-65 in FY15
• Expectation of economic upturn; mood
remaining cautious
• Currency volatility is on the rise;
open exposures need to be hedged,
especially in CTPP
• Interest rates are not expected to
come down; structured products
appear to be the flavor of the day
• Funding concern for Sector is
expected to continue as Banks have
reached Sectorial limits
13
Key Aspects Current Scenario
Key Takeaways
• Peak and Energy Deficits are currently low (3.9%, 4.4%) & will pick up in H2 FY15
• Lower demand is on a/c of slowdown, structural issues and good monsoon
• Fresh capacity addition from Pvt sector is decreasing & may lead to a higher deficit in the later half of
12th Plan
Demand &
Supply
• Investor confidence has decreased, which will possibly accentuate the high deficit situation in the first
half of 13th Plan
12th Plan
• Installed capacity has reached 230 GW with ~19.5 GW in the past one year, driven by Pvt. sector share
of 42%.
• Suppressed demand scenario likely
to ease by H2 FY15 (GDP related);
coupled with RIL Gas price hike may
increase short term demand for power
• Decreasing new investments leading
to demand outpacing capacity addition
by the end of 12th Plan
• 88 GW addition is estimated (excluding renewables) by Planning Commission
• Capacity addition from FY 16 onwards and in 13th Plan could be adversely affected
• Short term market rates in FY14 remained suppressed; Short term bid prices higher than prices on the
power exchanges.
Power
Tariffs
• Long term bids were at a higher range than the prices in the short term market. This is complete
opposite of what was seen in the market two years ago.
• Key factors affecting the short term prices in FY 15 would be increase in fuel costs (+), financial
restructuring of DISCOMs which would limit their short term power purchases (-) and connectivity of the
southern grid with the national grid (-).
• Short- term prices may continue to
follow FY14 trend, in FY15
• Developers are also looking at locking up all their capacities on long-term basis given the coal linkage
requirements
Renewables
• 30 GW of renewable capacity planned wherein Solar power target is 20 GW by 2020 • Renewable tariffs are still attractive
(not yet bottomed out); maybe the right
• Efforts to review the wind sector with the reinstatement of incentive schemes like GBI. However, low
time to enter
feed-in tariffs and availability of good sites for wind projects are a deterrent
• 67% of 11th Plan target achieved with private sector share of 23%, which is expected to increase further
in 12th plan.
Hydro
• Huge untapped potential for the sector in NE India. Grid strengthening for evacuation of excess hydro
power has been identified as the priority
• Capacity addition envisaged in the 12th plan is around 10,000 MW
• Deficit of domestic coal is expected to continue and reach 230 MT by FY17. Will increase further if coal
blocks are de-allocated.
• Better performance in terms of production leading to some ease in the fuel supply situation.
Coal
• Environmental Clearances for CIL linked mines to increase CIL production have been put on a fast track
(MoEF ministry)
• International coal prices are expected to remain soft in the medium term with a gradual increase in CY15
• Newcastle coal index forecasted at US$84 per ton.
• Our Hydro portfolio, with already much
progress made, is expected to be a
key differentiator for value creation in
the current market environment
• CIL will meet FSA commitments for
next 2 years due to lack of new bids &
delays in start of PPAs
• International coal prices expected to
remain flat with a slight upturn towards
the end of FY15
• Indonesian coal reference price continue to remain flat.
• Near term outlook for domestic gas production continues to remain bleak.
• 9000 MW of projects are stranded due to shortage of gas
• With increased gas prices, production levels are expected to rise over next 2-3 years.
Gas
• Gas pooling seems unlikely to be implemented in the near future.
• Open Access and taxation issues with respect to gas transportation continue to persist
• Domestic Gas supply outlook
continues to be negative for the power
sector
• As per EGOM, additional domestic gas coming on-stream shall be allotted to power sector while
maintaining the priority of fertilizer sector above power sector.
• Short-term RLNG prices are not expected to decrease from the current level of US$14/MMBTU in FY15
• FRP for DISCOMs is in place.
• Coal shortfall being addressed thru’ CCEA directive.
• Uncertainties regarding coal block allocations & Tapering linkage still remain
Policy &
Regulatory
Environment
• No headway in support for stranded gas assets
• Regulators are now inclined to consider fuel as a “non-profit” component in tariff- fuel as pass through as
evidenced in Tata & Adani Order
• New SBDs have created a situation of conflict between the State and Center.
• Supreme Court to reevaluate all the hydro projects being set up (Badrinath is one of the project which
may be affected)
• New CERC Regulations are in place – stricter operational norms
14
• Continuity of various positive policy
initiatives remains a question with the
impending elections
• Implementation of FRP a big step
in installing discipline in DISCOM
operations even though Maharashtra
& Delhi have announced recent
populist measures
What are your KEY business, operational, societal responsibility, and human resource STRATEGIC CHALLENGES and ADVANTAGES?
Fig. OP.3 - Key Business, Operational, Societal Responsibility, HR Strategic Challenges and Advantages
Business/
Operational/
HR
Challenges
Strategic
Objectives /
Themes
B1
Ensuring Supply
of Fuel – Coal
Ensure Fuel
for CTPP and
Security
Gas for GVPGL,
GREL & GEL
KKD
Strategic Initiatives
• Pursue MOC / CIL to get MoU coal and linkage
coal at the earliest
• Policy advocacy for gas pooling and follow up
with MoP/MoPNG for domestic gas supply /
allocation to GEL, GVPGL, GREL
• Exploring long term LNG opportunities for
International market
Strategic
Advantages
Capitalizing on Core
Competencies and address
the potential need for new
Core Competencies
• Strong Corporate
Relations
• Experienced Coal
Stakeholder Relationship
• Stakeholder
Operational Excellence
Sourcing and
Logistics Team
• Ensuring 150 MW transmission corridor for
power supply to TN
B2
Maximize
revenues in
Operating
Assets
Addressing Power
Evacuation / Tariff /
PPA related issues
• Increase dispatch to DNH to 200 MW
• Ensure transmission corridor to potential
customers from GKEL to NR and WR
• Ensure PPA / transmission corridor for power
Relationship
supply from CTPP
• Effective Management of Tariff revision
petitions / Improve Deemed Generation
• GPCL/GREL as Spinning reserve
B3
Sustainability
O1
Time and Cost
overrun in
execution of
Projects
Triple Bottom line
Focus/Process
Improvement/
Project Execution
Excellence
Completion of
Projects within
budgeted cost and
time
• Achieving
O2
Improving Cash
flows from
Operations
/ Liquidity
Initiatives
Profitability/Cost
Optimization
across
Operating
Plants (Asset
Light)
• Improve
liquidity through
Financial/BD
Initiatives, and
resolution of
litigations
•
•
•
•
•
•
Sustainability Reporting – GRI G4
Finalize Ash disposal for EMCO
Compliance to EHS Practices
Compliance to Internal Audit Findings
BE Assessment
Project Execution Excellence : ‘Bhavyatha’ at
Bajoli Holi, CTPP
• Improve Operational Efficiency through
Implementation of IT enabled business
processes
• Sustainable farming based greenbelt
development at GKEL, EMCO & CTPP
• BE Assessment & Implementation of FY15
Action plan
• Timely COD for
»» CTPP Project
»» Transmission lines - Angul, Meramandali,
Aravali,
• BH Project execution within Budgeted Time
and Cost
• Operationalization of PT BSL within budgeted
time and cost
• Improving Operational Efficiencies and
•
•
•
•
•
reducing O&M Costs
Manage cash flows through receivables
management
Relocation/Sale of GPCL, GREL, Barge,
Mangalore Land
Overrun funding for EMCO, GKEL & CTPP
Replacement / Securing disbursement from
original lenders
Filing DRHP and concluding GEL IPO
• External Training
through GRI/CII
• Leadership
Commitment
towards
sustainability
Operational Excellence, GMR
Vision, Values & Beliefs
• High level of
Management Focus
and intervention
Project Execution
• Stakeholder
Relationship
• High level of
Management Focus
and intervention
• Engaging renowned
consultants /
experts for driving
Operational
Excellence Initiatives
• Success in tariff
revision petitions
filed by other
competitors
15
Business/
Operational/
HR
Challenges
Strategic
Objectives /
Themes
Strategic
Advantages
Strategic Initiatives
Capitalizing on Core
Competencies and address
the potential need for new
Core Competencies
• Focused EE plan for Critical Resources & High • Strong GMR Brand
H1
Talent
Management
Acquiring,
managing and
retaining the right
talent
performers
• Ensure 1:1 Step in and Long term successors
for all critical positions
• Leadership and Capability Building
• Implementation of Hay Group
recommendations
Value
• Organizational
Design by McKinsey
• Job Evaluation
and Organization
Analysis by Hay
Group
Stakeholder Relationship,
Operational Excellence, Project
Execution
B : Business, O: Operational, H : HR
P.2 A3 Comparative Data
What are your KEY available sources of comparative and competitive data from within your industry? What are your KEY available
sources of comparative data from outside your industry? What limitations, if any, are there in your ability to obtain these data?
GMR Energy employs various mechanisms (As illustrated in Fig. OP.4), for sourcing comparative & competitive data.
Fig. OP.4 – Source and type of Competitive & Comparative Information
Key Competitive & Comparative
Information
Source of Information
Strategic
Bloomberg, Infra-line, Sigma Insights, PESTLE Analysis, Regulatory Orders, Annual Reports of other companies,
Analyst Reports, Web sites of Regulatory Authorities
Operations
Engagement with Global Consultants, Best In Class – Benchmarking Framework, OEMs, Data published by
CEA, SEBs, other informal channels e.g. Networking, New Recruits
Projects
Engagement with Global Consultants, PMI, Infra-line
P.1 Organizational Description
GMR Group is one of India’s most diversified infrastructure
conglomerates with significant experience and expertise in the
development, construction and operation of large infrastructure
projects. GMR Group also founded Raxa, a large, renowned
private security company and GMR Varalakshmi Foundation,
an independent professionally run Section 25 Company
to channelize its significant corporate social responsibility
programs. GMR Group also owns Delhi Daredevils, the IPL
T20 cricket team.
GMR Infrastructure limited (GIL), formed in May 1996, and
is the holding company for all infrastructure businesses of
GMR Group, with interests in airports, power, roads and urban
infrastructure. GIL is listed on the Bombay Stock Exchange
16
and the National Stock Exchange since 2006 with market
capitalization of approximately Rs. 13,312.13 Crores.
GMR Energy Limited (GEL) created in October 1996, is a
wholly owned subsidiary of GIL, and the holding company
for all Special Purpose Vehicles that develop, construct and
operate power projects. We have a gross operational capacity
of 2498 MW and an additional gross capacity of 2318 MW
under construction. In addition, we have a pipeline of power
projects with an aggregate gross capacity of 3695 MW that
is currently under various stages of development. Below table
(Refer Fig. OP.5) sets forth our subsidiaries and their respective
businesses.
Fig. OP.5 – GMR Energy Limited, Assets, Projects, Power Transmission, Coal Mines & Other subsidiaries
@ - Other power projects under development include:
• 300 MW planned capacity hydroelectric-based power project in the state of Uttarakhand (the “Alaknanda Power Project”)
• 225 MW planned capacity hydroelectric-based power project in the state of Arunachal Pradesh (the “Talong Power Project”)
• 600 MW planned capacity hydroelectric-based power project in Nepal (the “Upper Marsyangdi-2 Power Project”)
• 900 MW planned capacity hydroelectric-based power project in Nepal (the “Upper Karnali Power Project”)
• 350 MW planned coal-based power project in the state of Odisha (the “Phase II Kamalanga Power Project”)
• 1,320 MW planned capacity coal-based power project in the state of Madhya Pradesh (the “SJK Power Project”)
Fig. OP.6 GMR Energy – Key Events and Milestones
FY14
•
•
•
•
•
•
SBU oriented structure for higher level of De-centralization and Empowerment
Commercial Operation of EMCO Unit 2, GKEL Unit 1,2 & 3, and Maru Transmission
Signing of Fuel Supply Agreement by EMCO with SECL(Unit 2)
FSA by GKEL with MCL for tapering linkage
Tie up of 150 MW from EMCO with TANGEDCO for a period of 15 years
Financial Closure achieved for 180 MW Bajoli Holi Hydro Power
FY13
•
•
•
•
Till FY12
Signing of Fuel Supply Agreement by EMCO Power plant (Unit 1) with SECL and by GKEL with MCL for
firm linkage
Tie up of 200 MW for EMCO power plant with DNH Electricity for a period of 7 years and 3 months
Commercial operation of EMCO Unit 1 – 300 MW
Project Execution Excellence through “Bhavyatha”
Foray into power sector –
•
Commissioning of Power Plants – GPCL, GVPGL, GEL Mangalore (Later relocated to Kakinada), GMR Solar Project - Patan
•
Projects under construction – GKEL, EMCO, CTPP, Transmission Projects in Rajasthan
•
Projects under development : Hydro – Bajoli Holi, Alaknanda
•
Securing fuel sourcing by acquiring stake in in South Africa Coal mines, PT BSL : Indonesia, PT GEMS
•
Signing of PPA for long term power off take from – GPCL, GVPGL, GKEL (260 MW with Bihar State Electricity Board), EMCO (200
MW with MSEDCL), Gujarat Solar (25 MW with GUVNL), CTPP (35% of power tied with Chhattisgarh State Power Trading
Company limited)
17
Fig. OP.7 – Energy Sector: Awards & Accreditations
P.1 A Organizational Environment
P.1 A1 Product Offerings
What are your organization’s main product offerings? What is
the relative importance of each to your organizational success?
What mechanisms do you use to deliver your products?
Electric Power is the dominant product of GEL. GEL also
has coal trading business, which is at a nascent stage at the
moment. The delivery mechanism & % split of revenue for
Operating Assets are given in the table below: Table OP.8
Within the power generation business, we have followed
a strategy of diversification in respect of our fuel source,
geographic presence and off take arrangements.
We have 623 MW of gas-based, 200 MW of low-sulphur-heavystock (“LSHS”) based and 1,650 MW of coal-based capacity
that is operational. Additionally, we have also diversified into
renewable energy based power projects. We have 25 MW of
operational solar power plant. In our portfolio of projects under
18
construction, we have 1,370 MW of coal-based, 768MW of
gas-based and 180MW of hydro-based plants. We are also in
the process of developing 2,025 MW of hydroelectric power
projects that have not yet commenced construction. Most of
our power projects are strategically located close to the fuel
source to reduce our fuel transportation costs.
While we initially began our operations with a focus on the
energy-deficient Southern region of India, we have now
diversified across India with power projects in the Eastern,
Western and Northern regions as well as into Nepal to develop
large hydro power projects aimed at exporting power into India.
Our power off take arrangements is intended to achieve
a balance between risk, cash flow and revenue through a
combination of long-term and short-term power purchase
agreements (“PPAs”). At present, a majority of our off take
arrangements are long-term PPAs with various state utility
boards. We also sell power on a short-term basis through our
power trading company, GMR Energy Trading Limited (“GETL”),
and through other power exchanges. Fig. OP.8 illustrates our
product offerings and mechanism to deliver them.
Fig. OP.8 – Main Products & Delivery Mechanisms
Sr.
No.
1
Name of Power
Plant / Project
EMCO Energy
Limited - Warora
Off-take Arrangement
Contracted Capacity
PPA with Electricity Department, Union
Territory of Dadra and Nagar Haveli dated
March 2013
Term
200 MW
PPA for 7 years and 3 months
from April 2013
PPA with MSEDCL dated March 2010
200 MW
PPA for 25 years from March
2014
PPA with TANGEDCO
150 MW
PPA valid until September
2028
(A) Up to 25% of power
sent out
PPA with GRIDCO dated September 2006
2
GMR Kamalanga
Energy Limited Kamalanga
Revenue
(Rs. Crores)
743 Cr
(Unit 1 COD –
Mar’13,
Unit 2 COD –
Sep’13)
PPA valid for 25 years from
(B) right to buy all power
the commencement of
generated in excess of
operation of the last unit
a PLF of 80%, and
238 Cr
(C) all infirm power
Unit 2 COD –
Nov’13
PPA with PTC dated June 2007
300 MW
25 years from the start date
of supply
PPA with Bihar State Electricity Board Nov
2011
260 MW
PPA for 25 years from
November 2015
(Unit 1 COD –
Apr’13,
Unit 3 COD –
Mar’14)
3
GPCL Chennai
PPA with TNEB
196 MW
PPA valid till Feb’15
1032 Cr
4
GEL Kakinada
PPA with GETL dated October 2008
Upto 220 MW
PPA valid until October 2015
Under
Preservation
5
GVPGL –
Rajahmundry
PPA with four state-owned distribution
companies in Andhra Pradesh dated
March 1997
370 MW
September 2006
209 Cr
6
Patan Power Plant
(Gujarat Solar)
PPA with Gujarat Urja Vikas Nigam
Limited dated December 2010
25 MW
March 2012
63 Cr
7
Gujarat Wind Power
PPA with Gujarat Urja Vikas Nigam
Limited dated 27.06.2011
2.1 MW
04.07.2011
1.08 Cr
(FY13-14)
8
Tamil Nadu Wind
Power
PPA with Tamilnadu Generation &
Distribution Corporation Ltd.
1.25 MW
15.12.2011
0.45 Cr
(FY13-14)
9
Maru Transmission
Transmission Service Agreement with
Rajasthan DISCOMs
Lump sum
25 Years from Sept.2012
(COD Sept 2013)
13.39 Cr
(FY13-14)
10
Aravali Transmission
Transmission Service Agreement with
Rajasthan DISCOMs
Lump sum
25 Years from Sept. 2012
Under
Construction
11
Power Trading
Power Exchange & Bilateral
Lump sum
Short Term, Medium Term
701.45 Crs
(FY14)
P.1 A2 Vision and Mission
What are the distinctive characteristics of your organizational
culture? That are your stated PURPOSE, VISION, VALUES, and
MISSION? What are your organization are CORE COMPETENCIES
and their relationship to your MISSION?
The organizational culture is built across all levels in the
organization where people are encouraged to take stretched
targets, empowered to achieve them, and are supported
to take calculated risks and right decisions to achieve the
business objectives. GMR Group Vision, Values & Beliefs and
GMR Energy Mission truly reflect our culture. It is nurtured
through regular communication, training, reward & recognition,
and high level of personal commitment from senior leadership
team.
Fig. OP.9 – GMR Energy Vision, Mission, Values & Beliefs
Our Vision
“GMR Group will be an institution in perpetuity that will build entrepreneurial
organizations making a difference to society through creation of value.”
19
Mission
Values and Beliefs
Humility
“By 2020, GMR Energy wants to be
the most profitable and one of the
leading integrated Energy Companies
in India and derive value by
We value intellectual modesty and detest false
pride and arrogance
Entrepreneurship
We seek opportunities - they are everywhere
Teamwork and relationships
• Diversifying strategically across
Energy value chain
Going beyond the individual, encouraging
boundaryless behaviour
Deliver the promise
We value a deep sense of responsibility and self
discipline, to meet and surpass commitments made
• Being a preferred employer
Learning
• Being socially responsible”
Nurturing active curiosity - to question, share and
improve
Social responsibility
Anticipating and meeting relevant and emerging
needs of society
Respect for individual
We will treat others with dignity, sensitivity and
honour
Core Competencies: The current core competency of GMR
Energy is Stakeholder Relationship and 2) Project Execution
GMR Energy, with its large portfolio of projects of 6013 MW
under construction and development and 2498 MW under
operation in FY14, was mostly oriented towards a complex,
diverse and large set of stakeholders to execute projects
successfully in a highly regulated environment. In the process,
it has remained in the pursuit of all the elements of GMR Group
Vision, Values & Beliefs and GMR Energy Mission.
Operational Excellence has been identified as core competency
which needs to be further developed in the coming years, for
which ground work is already well under way, by soon engaging
a global consulting firm to support us. We aspire to create an
asset management process that would encompass end-to-end
requirements from top & bottom line management to talent &
performance management at asset level and at Sector level.
P.1 A3 Workforce Profile
What is your WORKFORCE profile? What are your workforce
or employee groups and SEGMENTS? What are their education
levels? What are the key elements that engage them in
accomplishing your MISSION and VISION? What are your
organization’s WORKFORCE and job DIVERSITY, organized
bargaining units, KEY WORKFORCE benefits, and special health
and safety requirements?
GMR Energy workforce profile across SBUs, and Projects /
Assets / Functions is illustrated in Fig. OP.10
Fig. OP.10 – Workforce Profile – Segments & Diversity
Employee Strength
Function / Site
BCM Office
Coal Assets
Corporate Functions
20
Nos.
9
21
38
%
Gender Profile
Male
1%
2%
3%
9
18
28
Female
Age Profile
Level wisel
0
Upto 30 Years – 1
31 to 40 Years – 4
41 to 50 Years - 2
51 to 60 Years - 2
Senior Management (M4 & Above)
Middle Management (M5) Junior Management (M6,M7) Support Staff (A1 to A4)
–
–
–
-
0
1
5
3
3
Upto 30 Years – 1
31 to 40 Years – 11
41 to 50 Years - 5
51 to 60 Years - 4
Senior Management (M4 & Above) Middle Management (M5) Junior Management (M6,M7) Support Staff (A1 to A4) –
–
–
-
4
5
9
3
10
Upto 30 Years – 17
31 to 40 Years – 10
41 to 50 Years - 7
51 to 60 Years - 4
–
–
-
8
4
22
4
Employee Strength
Function / Site
Gender Profile
Nos.
%
Male
Female
Age Profile
Level wisel
Ethics & Intelligence
3
0.005%
3
0
Upto 30 Years – 0
31 to 40 Years – 0
41 to 50 Years - 1
51 to 60 Years – 2
–
–
-
0
1
2
0
Finance & Accounts
27
2%
23
4
Upto 30 Years – 8
31 to 40 Years – 12
41 to 50 Years - 6
51 to 60 Years – 2
–
–
-
2
4
17
4
–
–
-
9
15
99
60
Gas & Liquid
184
17%
180
4
31 to 40 Years – 70
41 to 50 Years - 51
51 to 60 Years – 23
GCM Office
3
0.005%
3
0
60 to 64 Years - 3
Senior Management (M4 & Above) Other –
-
1
2
15
31 to 40 Years – 67
41 to 50 Years - 36
51 to 63 Years – 10
Middle Management (M5)
Junior Management (M6,M7)
Support Staff (A1 to A4) –
–
–
- 5
28
163
73
7
31 to 40 Years – 60
41 to 50 Years - 27
51 to 63 Years – 17
Support Staff (A1 to A4)
– – –
- 15
23
83
23
Senior Management (M4 & Above) Middle Management (M5)
–
–
–
-
4
7
19
3
–
–
–
-
13
42
272
31
GKEL
Hydro
269
144
25%
13%
254
137
S&D
33
3%
25
8
31 to 40 Years – 16
41 to 50 Years - 2
51 to 63 Years – 3
Thermal Coal
358
33%
335
23
31 to 40 Years – 104
41 to 50 Years - 45
51 to 67 Years – 17
GMR Energy has a committed and highly diverse workforce
totaling 1089 with high dependence on workforce to develop,
build and operate Power Assets. Structured HR processes, well
supported by Business HR, facilitate the recruitment of right
people, their training and development, career progression,
retention and motivation. GEL also employs contract workforce
to carryout routine and non-production related work in the
areas of FMS, O & M etc.
We do not have any bargaining units in the company.
Our attrition rate is one of the lowest in the industry. The key
factors that motivate the workforce and keep them highly
engaged includes:
(a) GMR Brand Image
(b) Challenging job assignments
(c) Career progression
(d) Freedom and Empowerment to take decisions in respective
work areas
(e) Performance driven Culture
(f) Regular Communication mechanisms like – Town Halls,
Business Organizational Development programs, Skip
level meets etc.
As an integral part of its policy, GEL focuses on creating a
culture of safe and healthy work environment by ensuring
compliance to all statutory and safety requirements as
applicable to its operations. All Employees at operating
plants and project sites follow the prescribed safety practices
and are provided with Personal Protective Equipment. An
integrated framework on IMS provides for detailed process and
initiatives for improving quality, environment, health & safety
for example, establishment of Occupational health center at
our Operating Assets, Annual health checkup programs for all
regular and contract workmen. An integrated Energy Sector
EHS framework provides detailed processes and SOPs to
continuously assess, adhere to Environment, Health & Safety
parameters throughout GMR Energy, complying with OHSAS
18001, ISO 14001 and GRI framework of reporting.
P.1 A4 Assets
What are your major facilities, technologies, and equipment?
IT infrastructure is extensively used across all offices & project
sites of GMR Energy. Integrated ERP system (SAP) is used
for carrying out all transactions, HR operations and project
management. Project progress is monitored through extensive
video conferencing and web enabled cameras, connected to
War Rooms. Distributed Control Systems (DCS) and various
other modern plant automation systems at our Operating Assets
ensure real time monitoring and control of plant operations.
The required software tools such as AutoCAD, Primavera,
OSI PI, BPC, etc. are made available to the locations as per
requirement. All locations are connected through WAN/VPN.
The technology & the major equipment used at our plants and
projects are given in the table below (Fig. OP.11)
21
Fig. OP.11 – Major facilities, Technologies & Fuel
Operating Asset /
Project
Beneficial
Ownership
Gross
Capacity
Operational
Status
GPCL - Chennai
51%
200 MW
Operational
IC Engines
LSHS
FY99
GVPGL - Rajahmundry
100%
388 MW
Operational
Combined Cycle
Natural Gas
FY07
GEL KKD - Kakinada
100%
235 MW
Operational
Combined Cycle
Natural Gas
FY11
GREL - Rajahmundry
100%
768 MW
Under Construction
Combined Cycle
Natural Gas
Based on Fuel
Availability
EMCO - Warora
100%
600 MW
Operational
Subcritical Technology
Coal
FY14
GKEL - Angul
81.44%
1050 MW
(Phase I)
Operational
Subcritical Technology
Coal
FY14
CTPP - Tilda
100%
1370 MW
Under Construction
Supercritical Technology
Coal
Est. FY15/16
Bajoli Holi
100%
180 MW
Under Construction
Renewable - Hydro
Water
Est. FY18
Gujarat Solar - Patan
100%
25 MW
Operational
Crystalline PV Technology
Solar Radiation
FY12
Gujarat Wind Power
100%
1.25 MW
Operational
Conventional Technology
Wind power
FY12
Tamilnadu Wind Power
100%
2.1 MW
Operational
Conventional Technology
Wind power
FY12
Maru Transmission
100%
NA
Operational
NA
-
FY14
Aravali Transmission
100%
NA
Under Construction
NA
-
-
Commercial
Operation
Fuel
P.1 A5 Regulatory Requirements
• National Electricity Policy
What is the regulatory environment under which your organization
operates? What are the applicable occupational health and
safety regulations; accreditation, certification, or registration
requirements; industry standards; and environmental, financial,
and product regulations?
• Consumer protections and other regulations e.g. Foreign
The power sector is highly regulated, from government
determined pricing for coal to government determined pricing
of electricity. Source of coal (Coal India Limited) is mostly
government owned and dominant customer segment (State
Electricity Boards) is also government owned.
The Electricity Act 2003 provides the core statutory framework
governing various aspects of Power Sector in India viz.
Generation, Transmission, Trading, Distribution & Retail
Supply, and Unregulated Rural Markets. Key policies and
regulations in relation to the power sector are provided below:
• Electricity Act 2003
• New Hydro Policy 2008
• Environmental Protection Act 1986, the Air (Prevention and
Control of Pollution) Act, 1981
• The Water (Prevention and Control of Pollution) Act,
•
•
•
•
•
22
Technologies
1974 and other regulations promulgated by the Ministry
of Environment and the Pollution Control Boards of the
relevant states
Mega Power Projects : Revised Policy Guidelines
Guidelines for Allocation of coal blocks / coal linkages for
power sector, Gas Allocation Policy
Tariff based Competitive bidding guidelines for Transmission
Service
CEA, CERC, SERC, and Dispatch Load Centers (NLDS,
RLDC) requirements
National Tariff Policy guiding Tariff related provisions,
principles
Investment Regulations
• Company’s Act – 2013, Factory’s Act, Environment Laws,
Labor Laws, Occupational Health & Safety Standards
Regulations, & Accounting Standards
• R & R policy of the respective state Govts
P.1 B Organizational Relationships
P.1 B1 Organizational Structure
What are your organizational structure and GOVERNANCE
system? What are the reporting relationships among your
GOVERNANCE board, Board committees, and parent
organization, as appropriate?
GMR Energy Limited (GEL) is a wholly owned subsidiary of
GMR Infrastructure Limited (GIL), the flagship listed company
of our Group. GEL is a holding company for all SPVs formed
for implementing various power projects. GEL board comprises
of 6 independent and 4 non- independent directors. Mr. GBS
Raju is the Business Chairman (BCM) of the company. 3
Independent directors on GEL Board are also on the board of
GIL. GEL board has various sub committees namely – Audit
Committee, Shareholder’s Transfer & Grievance Committee,
Nomination & Remuneration Committee, and IPO Committee.
GEL organization is headed by BCM at Energy Sector level.
SBU Heads report into BCM. Appropriate authority is vested
with the SBU Heads and to Functional Heads/HODs which is
commensurate with their responsibilities. The decision making
process across the organization is guided by ‘Delegation of
Power’ (DoP) document for the Sector and critical processes
have clear RASCI (Responsibility, Approve, Support, Consult,
Inform). The Organogram is depicted in OP.12
Fig. OP.12 – GMR Energy: Organogram
P.1 B2 Customers & Stakeholders
What are your KEY market SEGMENTS, CUSTOMER groups, and STAKEHOLDER groups, as appropriate? What are their KEY
requirements and expectations for your products, CUSTOMER support services, and operations? What the differences in these
requirements and expectations are among market SEGMENTS, CUSTOMER groups, and STAKEHOLDER groups?
Fig. OP.13 – Market Segments, Customer Segments & Key Expectations
Market Segments
Long Term/ Medium
Term
Short Term Trading –
Power Exchange
Bilateral Agreements
Customer Segments
Key Expectations
State Utilities/ Private
DISCOMs
•
•
•
•
•
REC Generators
• Maximum clearance of REC
• Maximum Realization
• Regulatory updates
Open Access Industrial
Consumers
•
•
•
•
•
IPPs/CPPs
• Competitive tariff, Firm Contracts,
• Payment terms
• Compensation terms
State Utilities
•
•
•
•
•
Availability of supply as per contract
Rescheduling on mutual basis
Competitive tariff
Rebates for extended period.
Security/ guarantees against contracts
100% availability to avoid penalties
Competitive tariff
Payment terms
Compensation terms
Additional availability during hours.
Availability of supply as per contract.
Competitive tariff
Rebates for extended period.
Security/guarantees against contracts
• Sale/ banking of their surplus power at
competitive rates
• Error free billing and payment convenience
• Dedicated contact point (easily accessible)
•
•
•
•
Assistance for Approvals for scheduling,
Updates on Market outlook
Updates on Regulatory framework
Dedicated contact point (easily accessible)
• Sale/banking of their surplus power at
competitive rates
• Error free billing and payment convenience,
23
Market Segments
Customer Segments
Key Expectations
Open Access Industrial
Consumers
•
•
•
•
•
Generators (For Sale)
• Firm contracts
• Payment security
• Availability
100% availability to avoid penalties
Competitive tariff
Payment terms
Compensation terms
Additional availability during hours.
•
•
•
•
Assistance for Approvals for scheduling,
Updates on Regulatory framework
• Updates on Market outlook
Bilateral Agreements
Other Traders
• Lowest tariff
• Competitive trading margin
• Supply for peak hours/few hours/few
days
Private DISCOMs
• Max. Availability,
• Competitive tariff
• Sale/banking of their surplus power at
competitive terms
• Error free billing and payment convenience
• Flexibility of rescheduling on mutual basis
Fig. OP.14 Stakeholder Groups and Key Expectations
Stakeholder Group
Key Requirements
Investors / Shareholders
• Return on Investment
Employees
•
•
•
•
Suppliers / Partners / Contractors
• Timely Payment & Repeat Orders
• Long term Relationships
• Ease of Doing business
Lenders / Financial Institutions
• Repayment as per terms
• Adherence to Planned Project Progress & Other Contractual requirements
• Long term Relationships
Central / State Govt. Local Administrative Depts.,
•
•
•
•
Community
Engagement
Attractive Compensation
Learning & Development
Career Progression
Compliance to applicable laws & Regulations
Implementation of Rehabilitation & Relocation Policies
Adherence to MoU Terms
Policy Advocacy
• Support in improving quality of life, Education, Medical Facilities, Basic Infrastructure,
Area Development, Access, Protection of Environment, Livelihood
P.1 B3 Suppliers and Partners
What are your KEY types of suppliers, PARTNERS, and
COLLABORATORS? What role do these suppliers, PARTNERS,
and COLLABORATORS play in the production and delivery of
your KEY products and CUSTOMER support services? What
are your KEY mechanisms for communicating with suppliers,
PARTNERS, and COLLABORATORS? What role, if any, do
these organizations play in implementing INNOVATIONS in your
organization? What are your KEY supply-chain requirements?
24
The supply chain plays a major role in meeting the key
requirements and enabling us to sustain the advantages of
competitive differentiators. The key requirements are 1) Cost
2) Timely Delivery and 3) Quality. In order to fulfill the value
chain requirements, the communication mechanisms are
letter, emails, discussions, site visits, etc. Suppliers/Partners
often bring the initial spark of Idea leading to innovation during
two way interactions besides helping us in implementation/
evaluation of our innovative interventions.
Fig. OP.15 – Suppliers, Partners, Collaborators, Relationship mechanisms, Supply Chain Requirement
Type of Supplier, Partner,
Collaborator
Role played by them
in Delivery of Product
/ Service
Relationship
Mechanisms
Fuel Suppliers – Coal, Natural
Gas, LSHS, (e.g. Mahanadi Coal
Fields Ltd, South Eastern Coal
Fields Ltd, Coal India (Other
Subsidiaries), Indonesia Coal
Suppliers, Reliance, Niko and BP,
HPCL)
O&M Contractors & Partners
Supply Chain Requirements
Role played in work
system / Innovation
• Price, Quality, Delivery
• Credit Facility
Supply of fuel for
MOU’s, Contracts,
Operation of Power plants AMC’s, Tenders
Indigenization of Supply &
• Ensuring highest Plant availability Spares
at lowest cost
• Training of GEL Employees
Suppliers of Spares,
Consumables, Commodities
(SKF, FAG, HPCL, Kirloskar,
Voltas, Bharat Bijlee, L&T)
• Price, Quality, Delivery
• Genuine Spares
• Flexible Payment Terms
• Proven capabilities in design,
develop and execute large power
projects
Technology,
Timely Delivery
Quality Standards
Commercial Terms – Cost,
Payment Terms etc
Projects Partners, EPC
Contractors, (Doosan, SEPCO,
SEC, Gammon etc.)
Supply – Technology,
Engineering, Equipment,
Construction of Power
Project, Commissioning
RFP’s, RFQ’s,
Technical &
Commercial Bids,
Negotiations, Award
of Contracts, LOI’s
Global Consultants (McKinsey,
BCG, KPMG, E&Y, , Deloitte,
PWC etc.)
Project Execution
Excellence, Operational
Excellence, Global Best
Practices and Trends
RFP’s, Technical &
Commercial Bids,
Negotiations, Award
of Contract
•
•
•
•
GPAC (Group Performance
Advisory Council)
Assessment of Group
Core processes
and Group / Sector
Performance
GPAC Assessment,
Presentation
Performance assessment
• Subject Matter Expert, Domain
of Key Group Processes,
Experts
Comparison with Industry/
• Vast Experience across Industries,
Sector & Other related
Sectors
organizations
•
•
•
•
Proven Track Record
Scalable Solutions
Return on Investment
Learning & Development
Sharing of Global
Benchmarks /
Performance Data of other
Best Sites, Improvement
Projects
Sharing of Global Best
Practices, Benchmarking
P.2 C Performance Improvement System
What are the KEY elements of your PERFORMANCE improvement system, including your evaluation, organizational LEARNING, and
INNOVATION PROCESSES?
Fig. OP.16 Elements of Improvement System and Approach
Element
Approach
Illustration
Reference
PMP, GHB/GCM/BCM/SBU Head’s
BSC, PMP, Multi-level Review Forums - GHB, QBR, ORM’s at Fig. 4.1-1, Fig. 4.1-6,
Performance Review review, Plant Performance Review,
GKEL, EMCO, Project War Room reviews, ATR’s
Fig. 5.2-3
Project Reviews, Surveys, Complaint
and Evaluation
Management, GBEM Assessment, SLA’s
Continual
Improvement
7 STEP Methodology, Cross Functional
Team based approach, QC tools
Capex Optimization CIPs, CIPs at Operating Assets (Heat
Rate Reduction, APC Reduction, Plant Preservation Cost
Optimization), Cycle time Reduction, Safety Performance
Improvement (LTIFR)
Fig. 4.1-8, Fig. 7.1.92,
Fig. 7.1.93, Fig. 7.1.94
Innovation & Best
Practice Sharing
Idea Factory, Leader Led Sessions
Ideas implemented at Projects & Assets, Learning & Sharing
of Key Improvements across Sectors through “Leader led
Sessions”, Project Bijlee, Paani
4.1 C1, Fig. 7.1.95,
Fig. 7.1.96
25
Fig. OP.17 Performance Improvement System
26
1. Leadership
1.1 Senior Leadership
Our Leadership Team Members led by our BCM, under the
active directions of GHB, takes a lead role in driving the
organization guided by our values & beliefs as mentioned in
Fig. 1.1-1 and 1.1-2. The 3 Level Leadership Team of GMR
Energy is Tier 1 – GHB & GCM, Tier 2 – BCM & SBU Heads,
Tier- 3 – Project Heads, and Plant Heads & Functional Heads.
1.1 A Vision, Values, and Mission
1.1 A1 Vision and Values
How do SENIOR LEADERS set organizational VISION
and VALUES? How do SENIOR LEADERS DEPLOY your
organization’s VISION and VALUES through your LEADERSHIP
SYSTEM, to the WORKFORCE, to KEY suppliers and
PARTNERS, and to CUSTOMERS and other STAKEHOLDERS,
as appropriate? How do SENIOR LEADERS’ actions reflect a
commitment to the organization’s VALUES?
Our Group Vision has been developed through a series of
Vision Building Exercise involving Senior Leadership Team
members. This exercise was facilitated by External Consultant,
using a Team based Approach, to capitalize on the Group’s
Values & Beliefs.
Fig. 1.1-1 GMR Energy Leadership System
Senior Leadership Team of GMR Group plays a vital role in
13, the Group adopted Asset Light- Asset Right strategy
formulating and revalidating the Vision and Group Direction
to ensure a Long term sustainable business model with the
based on the Strengths and Aspirations of the Group.
theme of, ‘Develop, Build, Create value, Divest and Reinvest’.
In FY11, the Group Aspirations were re-visited through a
process called “Sankalp-2020” leading to formulation of
Individual business level Vision/Mission. Energy Sector
Mission was developed using the same process. In FY
Consequently the Senior Leadership Team of Energy Sector,
after due deliberation, identified following strategic Themes:
1) Profitability 2) Liquidity 3) Structure & Process in alignment
with the Group Strategic direction.
27
Fig. 1.1-2 Deployment of GMR Leadership System and its effectiveness
Step
Deployment of Leadership
System
Obtain Feedback from
Stakeholders on Vision &
Mission
1
Engage and understand the
requirements of Stakeholders,
This sets the context for Strategy
Planning
Till FY13
Investor Meets, Customer Meetings, Community
Meets, EEEC Outcomes, Feedback from various
communication forums e.g. Town Halls, Skip Levels,
People Konnect
FY14
360 Deg. Feedback on Leadership Effectiveness,
C Sat Outcomes
Set Direction:
2
Focus on Consolidation,
Sector level objectives cascading down to SBU
Sector
level
objectives,
Shift
in
Strategic
Direction
:
from
Re-visiting Vision, Mission,
Priorities with key focus on Strategic Themes –
“Growth”
to
“Asset
Light
Asset
Right”
Values Beliefs, Validating
Liquidity, Profitability, Structure and Process
Strategy, Stimulate Stretch Goals
Communicate Direction to
Stakeholders :
3
Build commitment by
communicating direction to all
stakeholders
Plan & Align :
4
The ST plan is deployed across
SBUs, Functions aligned to
Vision & Mission, Work System
and Goals of Employees
Execute Plans:
5
6
Motivate, Empower and Make
available resources
Annual General Meets, GCM Newsletter, Town Halls,
Investor Meets, Customer Visits / Meetings, eCircular,
Discussion with Govt Institutions/Ministries, Corporate
Communication, Community Meetings, Supplier Meets
Organization structure altered to create a flatter
SBU oriented structure for higher level of DeFormation of New Depts. : PPA Management, Capability
centralization, Empowerment, and faster decision
Center
making, Introduced PDM and A3 approach to
support Strategy Deployment
BSC, Allocation of resources (In-house, Outsourcing
e.g. Creation of Shared Service Center to manage
Transactional Processes)
GHB Reviews, GCM Reviews, Plant Head/Project Head
Reviews, PMP, Contractor’ performance Review, Vendor
Performance Review, Engagement with McKinsey to
Drive High Performance:
develop GMR way of Project Execution Excellence Organizational Performance
“Bhavyatha” , Best In Class Benchmarking framework
reviews, and taking corrective
action / resource allocation, R&R for G&L Assets, Employees’ R&R : Spot Awards, Group
level CIP R&R, Best CIP at each site, Theme based
Idea Factory : Winning Site & Top Contributors
Emerging Leaders’ Program, BE Assessors’ Certification
program, GMR EDC, Learning Modules on 4 Pillars –
Enhance the Capability of people Lead Self, Lead Others, Lead Business & Lead Change,
through training and development and 11 Competencies (Virtual MDC)
Develop People :
7
BCM Newsletter, SBU Specific Town halls
Capability and Capacity building measures across
SBUs, Revised RASCI & DoP to match changes
in Org. Structure, Detailed ERM Assessment for
GKEL, Bajoli Holi and Power Trading
BCM Reviews, SBU Head Reviews, ORMs for
Thermal (Coal) Assets, Annual BE Roadmaps,
Institutionalization of HR Council, BE Council,
Safety Council, Comprehensive GMR Project
Management Process for Hydro Projects,
Integrated EHS Framework for Energy Sector,
Leader Led Sessions, G&L Community Meets with
focus on preservation
P&L Training for Plant Heads/Project Heads, IMS
Training for Lead Auditor, Internal Auditor and MR,
BE Practitioners’ workshop for Senior Leaders,
BBS Training, OEM Training, O&M Training,
Bhavyatha Workshops
Enhance Capability of
Processes & Operations :
8
Adapt to new challenges
and raise the bar through
incorporation of new technology,
organization knowledge and
agility
Implementation of Super Critical Boiler Technology at
CTPP Project, SAP Implementation across Assets,
Projects and Corporate Functions
Learn & Innovate :
9
28
Take lead role in Strategy formulation, Communication
Exhibit role model behavior while to Stakeholders, Promote Culture of Continuous
improvement, Strong Focus on GMR Values & Beliefs,
performing step 1 to step 8,
Nurture Innovation & Risk taking, Promote culture of
Improve & Innovate to achieve
comparison through Best Practice and Benchmarking
stretched targets through Best
(Best In Class framework at G&L Assets)
Practices
Implementation of IMS (Quality, Environment
& OHSAS) at GKEL & EMCO, Deployment of
Capability Center Roadmap
Learning Capture from previous projects - EMCO,
InterGen & Island Power (Singapore Project),
Operational Excellence Initiatives for Thermal
(Coal) Assets
Engagement with Global Consultants on Stage
Gate Audits (PwC), Organization redesign
(McKinsey), and Job evaluation and Organization
Analysis (Hay Group)
Town hall at EMCO
Town hall at GKEL
Launch of Hydro Power Project Management Manual and
EHS Framework
Energy Business Chairman Interaction with
GPCL Team
“Business Excellence is not a process or procedure but a way of thinking. It is about
fighting and pursuing something diligently, with a strict and determined approach to
doing it right. If you deliver Excellence right now, that gives you the best shot at the best
future you’ve got coming. We need to ingrain this belief in minds of every employee to
enable them make BE part of their day to day working. It is only this way we can aim for
sustained excellence in our organization.”
S N Barde
President - Thermal (Coal)
The senior leaders deploy the organization’s vision, mission and values to all employees, key suppliers and partners, and to
customers through communication mechanisms as depicted in Fig. 1.1-3.
Fig. 1.1-3 Deployment of Vision & Values to Stakeholders
Stakeholder/Customer
Communication By
Forum for Communicating Directions
Outcome/Example
Investors / Shareholders
Board Members, GCM, GCFO
Annual General Meetings, Annual Reports,
Investors Meet
Equity Infusion, Acquisition,
Divestment
Customers
BCM, SBU Head (Thermal Coal
Assets, G&L Assets), Head
Power Trading, Plant Heads, PPA
Management Team
Customer Visits, Customer Meets
Fig. 7.2.2, Fig. 7.2.6, Fig.
7.2.8, Fig. 7.2.9, Fig. 7.2.1
Suppliers / Partners /
Contractors
SBU Heads, Head CPD, Plant Head,
O&M Heads
Contract Award, Award of Service Orders/
Purchase Orders, Partners’ Presentations,
Fig. 7.1.99
Formation of JV, Vendor Visits, Supplier Meets,
Performance Review
Lenders / Financial Institutions
GCFO, Sector CFO, BCM
Financial Closure, Lenders Consortium Meets
Timely FC of projects, Timely
disbursement of Funds, Debt
Restructuring
29
Central / State Govt. Local
Administrative Dept
GCM, BCM, Corporate Affairs, SBU
Heads, Plant Heads
Group updates, Policy Advocacy, Interactions
with Govt Institutes and Ministries
Enhanced Stakeholder’s
Relationship
Community
SBU Heads, Project Heads, Plant
Heads, GMRVF
Community Meets, GMRVF Projects review
and Update, Stakeholder Engagement
Fig. 7.4.3, Fig. 7.4.4, Fig.
7.4.5
Employees
Annual Day Celebrations, GCM Newsletters,
GCM, BCM, SBU Heads, Plant Heads,
BCM Newsletters, Town Halls, Skip Level
Functional Heads
Meetings, Reward & Recognition
Personal actions, commitment, & passion of Senior leaders
towards GMR Values, is demonstrated during their various
formal & informal meetings (Fig. 1.1-4) like Skip Level meets,
Departmental meets, Town hall meetings, Customer meets,
Supplier meets, Talent Review meets, Plant visits, Participation
in Seminars, summits, Conferences Trade fairs, etc. with
Fig. 7.3.8, Fig. 7.3.9
various stakeholders like employees, vendors, suppliers,
customers, etc. GMR Values are the guiding force for various
actions taken by Leadership at all levels in the Organization
right from Setting the direction to Communicating the same,
Planning & executing the direction with a constant focus on
aspirational targets.
Fig. 1.1-4 Personal Actions by Seniors Leaders reinforcing Values (illustrative)
Values
Humility
Entrepreneurship
Teamwork &
Relationships
Deliver the
Promise
Learning
Social
Responsibility
Respect for
Individual
Deployed Through
Examples of Personal Actions
Leadership recognize and appreciate others’ abilities,
Interactions, Reviews, Presentations knowledge and achievements in open forums, Meetings,
Reviews, Seek help & support to accomplish complex tasks
Continuously seeking opportunities
for sustainable growth
Leadership taking Lead and Active participation from
Conceptualizing till Commissioning, First ever Barge
Mounted Gas based power plant in India
Personal involvement in formation of Cross Functional
Culture of Collaboration, Formation
Teams to accomplish complex tasks, and Continuous
of Cross Functional Teams,
Improvement Projects, Appreciate Team work, Personal
Celebration of Team Achievements,
Involvement in recognizing Team Achievement (Idea
Formation of JV/Partnerships
Factory, Zeal Factory)
Structured Reviews, Identifying
Review of ATRs, Adhering to Critical milestones and
Bottlenecks and realigning resource
timelines
deployment, Focus on Actions
GCM & BCM led Projects’ Key Learning Exercise – EMCO
L&D, Specific focus on Key
Project, InterGen, Island Power, Active participation in KM
Takeaways in Annual Operating
Communities (G&L Community, Short Term Power Market),
Plans, Weightage on Personal
Leader Led Sessions
learning in Annual Appraisals
GCM’s & BCM’s personal involvement in conceptualizing to
GMRVF Initiatives on 4 Thrust
completion of GMRVF initiatives, active involvement through
areas : Education, HealthEngagement with Communities, Review of GMRVF Projects,
Hygiene-Sanitation, Community
Senior Leaders’ involvement in CD Initiatives at Projects and
Development & Livelihood
Assets
Leadership attentive to individuals, Open Door Policy, Take
One on One Interactions, Reviews,
responsibility of failure, Recognize individual efforts in open
Day to day working
forum
1.1A2 Promoting Legal and Ethical
Behavior
How do SENIOR LEADERS actions demonstrate their
commitment to Legal and ETHICAL BEHAVIOUR? How do they
promote an organizational environment that requires it?
Our Senior Leadership Team personally promotes an
organization that fosters results & requires legal & ethical
behavior by setting up un-compromising standards, through
their personal behavior and actions. Legal and ethical
misconduct is viewed seriously and acted upon. Fig. 1.1-
30
Outcome
Engaged and motivated
Employees, Willingness to learn
Strong Asset Base supported
by dedicated Business leaders,
Presence across Energy Value
Chain, Diversification wrt
Geography, Fuel source and Off
take Arrangement
Fig. 7.1.92, Fig. 7.1.93, Fig, 7.1.94
BSC Achievement, Balancing
Stakeholders expectations
Learning Capture from previous
projects and using it for future
projects, Project Execution
Excellence through Bhavyatha
Fig. 7.4.3, Fig. 7.4.4, Fig. 7.4.5
Positive Referrals, Enhanced
Brand Image, Preferred Employer
5 depicts 3 tiers Ethics Structure at GMR Energy. Code of
Business Conduct & Ethics (CoBCE) has been in place &
commitment to this is reinforced by various policies like Whistle
Blower policy, Sexual Harassment policy, governed by Ethics
& Intelligence Department at Group level. HR has formulated
a mandatory program on Code of Business Conduct & Ethics
(COBCE) that needs to be undertaken by all employees.
Actions have been taken to ensure that each employee has
read and accepted the GMR’s CoBCE through the e-enabled
system. A multi-channel, multi-language Ethics Helpline with
toll free number, managed by 3rd party (KPMG), has been
launched to provide a safe and secure way for employees,
vendors and suppliers to report Ethical concerns. Also,
considering the resource limitations, and direct reach of Ethics
and Intelligence department, Ethics Counselors have been
appointed at Projects/Assets locations to provide a secure
forum for free and frank exchange of concerns locally.
Fig. 1.1-5 “3 Tier” Ethics Structure & Senior Leaders’ role
Tier
Senior Leadership Involvement – roles & responsibilities
1st – Group Governance
Council & Ombudsperson
Providing Guidance for the Ethics & Intelligence Plans, Resolution of Ethical Concerns, Review of Ethics & Intelligence
Processes and its effectiveness, Protecting Whistle blowers, Addressing Suppliers concerns, Role Model for Employees
& Other Stakeholders
2nd – Location Ethics
Counselors
Selection of Location Ethics Counselors, Oversee performance and effectiveness of Location Ethics Counseling
3rd – Ethics Helpline
Nominating 3rd Party for managing Ethic Helpline, Assess performance of Ethic Helpline and Agency involved
A Legal portal for Energy sector has been developed which
hosts information/update on all the legal cases for ready
reference of Leadership Team to enable quick decision making.
Similarly, a Compliance portal has been put in place to ensure,
on time, 100 % compliance, to all statutory requirements.
Commitment towards EHS is ensured through Periodic Safety
& Environment Audits, Implementation of EHS framework,
registration of CDM projects with UNFCCC to reduce Carbon
foot print, and initiation of GRI –G4 based sustainability
reporting for Energy Sector. Additionally, in the current year,
E- Governance portal for enhanced EHS manageability is
being put in place. Also, a blue print on Sustainable farming
based Green Belt development is being sketched out for our
sites/locations. During the various reviews chaired by SBU
Heads/BCM the regulatory compliance and deviations, if any
are reviewed, including implementation of IMS as per ISO
9001:2008, ISO 14001, 18001. In addition, Periodic Audits are
undertaken by MAG to assess the compliance level. Senior
Leadership led Improvements in Legal/Ethical Behavior,
Safety; Quality & Climate Changes are depicted in Fig. 1.1-6
below.
Fig. 1.1-6 Leadership led improvements in Legal/Ethical Behavior, Safety, and Quality & Climate Change
Areas
Till FY13
FY14
Legal &
Ethics
COBCE Framework, Whistleblower Policy, Sexual
Harassment Policy, Compliance Portal for Gas & Liquid
Assets (GPCL, GVPGL/GREL, GEL KKD)
3rd Party Managed Ethics Helpline (Accessible over call, e mail, fax for all
Stakeholders), e-Enabled COBCE Acceptance by all Employees, Energy Sector
Compliance portal (Including Thermal Coal & Hydro), Energy Sector Legal
Portal
EHS &
Quality
Compliance to EHS Standards through IMS at G&L Assets,
Quality Procedures and SOPs
IMS Certification (Environment + Quality + OHSAS) for EMCO, GKEL,
Comprehensive Energy Sector EHS Framework, Implementation of Bhavyatha
QA QC processes, Pre-bid safety evaluation of Contractors
Climate
Change
3/4th of Installed Power Generation Capacity using Clean
Fuel (Natural Gas), Use of Advanced Technology in Coal
Based Thermal Power Plants for enhanced efficiencies
and reduced emissions (Super Critical Boiler technology
at CTPP), Balance Portfolio of Assets + Projects under
construction + Projects under development (Coal, Natural
Gas, LSHS, Hydro, Solar, Wind)
Focus on Sustainability (GRI G4 Framework), Green Initiatives, Development of
Green Belts at EMCO & GKEL, Use of Effective Waste management (100% Fly
ash utilization by Fly Ash Bricks manufacturers, Zero Discharge Philosophy for
all Operating Assets), Emission targets set surpassing Statutory requirements,
Resources conservation measures : Energy Conservation (Project Bijlee),
Water Conservation (Project Paani) at EMCO, Use of Low Ash / Low Sulphur
Coal
1.1 A3 Creating a SUSTAINABLE
organization
• create a WORKFORCE culture that delivers a consistently
How do SENIOR LEADERS create a SUSTAINABLE
organization? How do SENIOR LEADERS achieve the
following? Create an environment for organizational
PERFORMANCE improvement, the accomplishment of
your MISSION and STRATEGIC OBJECTIVES, INNOVATION,
PERFORMANCE leadership, and organizational agility?
• create an environment for organizational and WORKFORCE
positive CUSTOMER experience and fosters CUSTOMER
ENGAGEMENT
LEARNING
• develop and enhance their leadership skills
• participate in organizational LEARNING, succession
planning, and the development of future organizational
leaders
31
In order to achieve competitive advantage in Energy sector and strengthen the organization in the context of changing
domestic and global energy scenario, we realigned our organization structure to build robust Strategic Business Units
(SBUs) with dedicated strategic and functional support. Through this reorganization, we have achieved focused P&L,
and balance sheet responsibilities, enhanced authority & accountability, as well as empowerment resulting in faster
decision making. This reorganization has helped us in building a framework which has successfully facilitated shift from
functional leadership to business leadership, providing a robust leadership pipeline and leveraging the competencies and
experience of senior leadership team.
“We envisage developing projects based on optimum fuel mix with a view to significantly
increasing the share of Renewable Energy in our portfolio, where it stands currently.
Our strategies focus on sustainable business growth, business continuance and process
orientation for creating a sustainable organization”
Ashis Basu
President – Corporate Functions
Following are the key milestones in our sustainability journey:
Fig. 1.1-7 illustrates GMR Energy Approach towards creating a sustainable organization.
The Organizational work system (Fig.6.1-2) & Organizational Capability Assessment (Fig. 5.1-2) have been restructured and
aligned to core competency to deliver customer value, achieve organizational success, and ensure sustainability (Fig. 6.1-3). Fig.
1.1-8 illustrates Sustainability Themes & Focus Areas emerging from Strategy Workshops.
32
Fig. 1.1-7 Creating Sustainable Organization
Aspect
Performance
Improvement for
accomplishment
of Mission,
and Strategic
Objectives
Innovation
Key Approaches
(Till FY13)
- Energy Sector Strategy
Development and
Deployment
- Sector BSC, Reviews
(GHB, PSBSC, CEO)
- Improvement projects at
Projects & Assets
- Launch of Idea Factory
at Projects, Assets &
Corporate Functions
Key Approaches FY14
Impact
- Energy Sector restructuring with Empowered SBUs having P&L responsibility,
- Sector BSC cascaded to SBU BSC’s
- Strategy Deployment through Aligned approach – PDM and monitoring through
A3 sheets
- SBU review architecture
- Revised RASCI & DoP
- Fraud Risk Assessment & Stage Gate Audits,
- Monthly ORMs at Thermal Assets (GKEL, EMCO)
- Site specific Idea Factory themes launched, addressing Site Challenges,
Involving large no. of Employees
Fig. 7.4.1
Fig. 7.1.92,
Fig. 7.1.93,
Fig. 7.1.94,
Fig. 7.1.95,
Fig. 7.1.96
- Implementation of “Asset Light Asset Right”
- Sector Key Themes – Liquidity, Profitability, Structure & Process,
- Organization structure altered to create a flatter SBU oriented structure for
higher level of De-centralization, Empowerment, and faster decision making
- Revised RASCI & DoP to match changes in Org. Structure
- Shifting of some businesses to Delhi
- Policy Advocacy and Engagement with Govt.
- Shift from Growth Focus to - Collaboration with Institutes and Academia for Audits, Training Institutes, (CII,
Consolidation
- SAP implementation at
Organizational
Agility
G&L Assets
- S Curves, Cost Curves,
Primavera based Project
Monitoring
- Project War Rooms
(CTPP, GKEL, EMCO)
NIST, IIMs), and with Global Consultants : McKinsey, KPMG, AT Kearny, BCG,
E&Y, PwC etc. for Global Best Practices, Benchmarking
- Bhavyatha – GMR way of Project Execution excellence Implementation at
Thermal Projects
- Hydro Power Project Management Manual for BH
- Energy Sector EHS Framework
- IMS Certification of EMCO & GKEL
- Key Focus on Sustainability through “Global Reporting Initiative” – GRI G4
Report
- SAP Implementation and Business Intelligence application OSI PI
implementation at EMCO, GKEL
- Business Object based BPC Implementation across Energy Sector for effective
AOP Planning, Monitoring, Review and Control
- War Room for Bajoli Holi Hydro Project
- IT Platform and Hardware up gradation (Nth Version Policy) e.g. Compliance
Portal on SharePoint 2010 platform
Faster Decision
making, Nimble
to changes
in External
Environment,
Long term
Sustainable
Business Model
- Evolved new function – PPA Management team to support Thermal Coal
Customers
Foster Customer
Experience &
Engagement
- Customer Support
processes and C Sat for
G&L Assets, Customer
Complaint Register for
G&L Assets
- Internal Customer centricity through SLA’s
- Power Trading C Sat Survey questionnaire reviewed by Independent Internal
Fig. 7.2.1, Fig.
7.2.2, Fig. 7.2.3,
Fig. 7.2.4, Fig.
Committee to ensure element of objectivity
- Separate Survey Questionnaires for OA Customers – (Exchange and Bilateral) 7.2.5, Fig. 7.2.6,
Fig. 7.2.7, Fig.
- Customer Interaction Template rolled out to capture outcomes of scheduled
7.2.8, Fig. 7.2.9
and unscheduled interaction with Customers
- Set up Regional Office at Hyderabad for South Bound Power Trading
Customers
- TNI and Learning
&Development,
Organization &
Workforce learning
- GMR Virtual MDC
- GMR EDC
- E-Learning Modules,
- Classroom training
- BE Assessors Certification
Programs
- Participation of Certified
Assessors (Internal/
External) in Energy
& Other Sectors’ BE
Assessment
- Train the trainer
workshops
- Key Learnings capture from Past Projects and sharing : EMCO, InterGen,
Island Power
- O&M Training for Thermal Assets, OEM Training
Fig. 7.3.1, Fig.
- KM Portal Restructured and Revamped
7.3.2, Fig. 7.3.3,
- Implementation of Knowledge Capture Templates, and Technical Advisory,
- KM Communities – G&L, Short Term Power Market, - Key Learnings Capture & Fig. 7.3.4, Fig.
Sharing – EMCO Project, InterGen, Island Power, BE KM Council
7.3.5, Fig. 7.3.20,
- Leader Led Sessions through KM platform enabling Cross Sector Learning and Fig. 7.3.21
Sharing (DIAL, GHIAL, Highways)
- CII Certified GRI G4 Training, KSS on GRI G4 Training
- Behavioral Based Safety Training (EMCO)
33
Aspect
Development of
Future Leaders
Enhancement
of Personal
Leadership Skills
Key Approaches
(Till FY13)
Key Approaches FY14
Impact
Emerging Leaders Program,
Job rotation, Challenging
Assignments, Exposure to
specified course/seminars/
conferences
- Hay Group for Job Evaluation and Organization Analysis to enable consistent
- 360 Deg Feedback
- Outcomes of Gallup –
- 360 Deg Feedback,
- BE Practitioners workshops for Senior Leaders at GKEL, EMCO,
- Outcomes of EEEC Survey
- Action items emerging out of Skip Level Meetings, Town Halls
Employee Engagement
Score
and comprehensive Role documentation of unique roles in the organization
- Identification of Critical Positions, Mapping of the positions with potential Long
Term/Step in Successors for entire Energy Sector, Gap Assessment and
bridging by external/internal training and new recruitment
Strong
Leadership
Pipeline for
Future
Strong
Leadership
Pipeline
for Future,
Sustainable
Organization
Fig. 1.1-8 Sustainability Themes & Focus Areas
Year
Sustainability Theme
- Growth Focus –
Till
FY12
Capacity Addition
- Diversified &
Balanced Portfolio
- Presence Across
Energy Value Chain
Strategic Focus
Operational Focus
- Develop New Power Projects, Explore
Opportunities for Acquisition (Domestic/Overseas)
- Diversified portfolio through Presence in Thermal
(Coal), Gas, LSHS, Hydro, Solar, Wind Power
- Upstream (Coal Mines) and Downstream
(Transmission & Distribution) Opportunities
Develop O&M Capabilities, Culture of Continuous
Improvement, Training & Development, Focus on Safety,
Quality, Environment through EHS Policy, IMS Certification
of G&L Assets
- Develop GMR Way of Project Execution Excellence :
“Bhavyatha” for Thermal & Hydro Projects
FY 13 &
FY14
- Shift in Business
Model “Develop,
Build, Create value,
Divest and Reinvest”
- Group Focus on – Asset Light Asset Right
- Sector Key Strategic Theme – Liquidity, Profitability,
Structure & Process
Performance Improvement, Accomplishment of Mission and
strategic objectives, Innovation, Performance Leadership &
Agility
Key approaches to these aspects are described in Fig. 1.17. As described in Fig OP.17, our performance improvement
system is embedded in all process. Leadership Team
guides the organization for the accomplishment of Strategic
objectives, innovation (Fig 2.1-7) and BSC/PDM cascade (Fig.
4.1-1). From FY 15, all the Goals will carry 100% weightage on
Performance as against 75% in previous years. Also, one of
the goals mandatorily will be related to Capability Building for
which a fixed 10 % weightage has been assigned / configured
in the e-PMP system.
Create Workforce Culture to Deliver Positive Customer
Experience & Customer Engagement
Senior leaders create a customer centric culture through a 4
block approach (Ref fig 3.2-5). Also, in order to enhance internal
Customer – Supplier centricity to serve our Customers better,
Service Level Agreements have been formulated and are being
launched for – Thermal Operations with Power Trading, Coal
sourcing & Logistics and, PPA Management Team. Various
other approaches to create Customer Engagement in work
culture are illustrated in Fig. 5.2-4 & 5.2-5
Create Organizational & Workforce Learning
Senior Leaders ensure the learning & development needs
34
- Hydro Power Project Management Manual, Sector EHS
Framework, IMS Certification at newly commissioned
GKEL & EMCO
- Operational Excellence Initiatives at Thermal Assets
- RASCI & DoP, Stage Gate Audits
- Focus on Employee Engagement, Green Initiatives and
Sustainability through GRI G4
are identified through PMP process and provide opportunities
to complete the identified training programs to enhance
learning. Senior leaders create environment for Organizational
and Workforce learning through their Active involvement in
launching BE Roadmaps for their respective SBUs, supporting
deployment of Improvement Projects/ BE Practitioner program,
IMS certification course for Lead Auditor/Internal Auditor/MRs,
encouraging employees to share learning’s on KM portal,
Training key Employees on GRI-G4, P & L Training for Plant
/ Project Heads, supporting KM initiatives aimed at capturing
key learning’s from large scale Thermal Projects Acquired,
Executed, and divested in Past for e.g. EMCO, InterGen, Island
Power. Also, Leader led sessions at Group level provides an
opportunity for learning, sharing, and cross pollinating some of
the best practices on Energy conservation, water conservation,
waste management and other process improvements.
Enhancing Personal Leadership Skills
Feedback through PMP, 360 degree Leadership Assessment,
Skip level meetings, other informal feedbacks provide a holistic
view to the leaders to chalk out plans for improving their personal
leadership skills (Fig. 1.1-9), and creating future leaders for
organization. Their personal efforts are complemented with
training on Executive Leadership Programs and following HR
processes related to workforce and leader development as
described in 5.2 C1 & Fig.5.2-8
Fig. 1.1-9 Enhancing Leadership Skills
Participation in Organizational Learning, Succession Planning,
and development of Future Leaders
A primary responsibility of Leadership Team is using every
interaction as a potential opportunity to mentor and develop
future Leaders. Leadership Team encourages adoption of new
Technology, and best practices which are shared in various
review forums. Leadership thoughts to enhance organizational
performance trigger Engagement with Consultants (McKinsey/
Hay), Academia (IIM-Kozhikode), NIST for behavioral based
Safety programs, CII for Energy Audits, PWC for Project stage
Gate Audits etc. leading to all-round Organizational learning on
key aspects of Performance. GMR Energy has identified critical
job positions that must be filled in by experienced, well qualified
and appropriately skilled employees. Senior leaders participate
in succession planning (Fig. 5.2-9) to ensure a pipeline of
future leaders is ready to take over higher responsibilities. They
personally evaluate the recommendations for developmental
needs of the next level of leaders and discuss their skill and
competency development plans. (Ref: Succession Planning
Workshop conducted in FY 14)
1.1B Communication and Organizational
Performance
1.1B1 Communication
How do SENIOR LEADERS communicate with and engage
the entire WORKFORCE? How do SENIOR LEADERS
achieve the following?
• encourage frank, two-way communication throughout the
organization
• communicate KEY decisions
• take an active role in reward and recognition programs to
reinforce HIGH PERFORMANCE and a CUSTOMER and
business focus
Senior leaders use various mechanisms for timely & effective
communication and for engaging the workforce as given in Fig.
1.1-10. To encourage and motivate distinguished performances
in various areas, GMR Energy has a bouquet of R&R, which
gets updated and improved based on VOE, ESS and other
inputs from workforce. Senior leadership actively participates
in the R&R functions, creating higher level of motivation and
inspires others to imbibe good practices. For E.g. Spot Awards,
Best CIP at each location, Theme based Idea Factory – Leading
site, and Contributor, Group Level CIP Awards.
Fig. 1.1-10 Leadership communication mechanisms
To Workforce
Key Approaches
Improvements
Two way
communication
Town Halls, Skip Level Meetings, GCM&BCM Visit to
Projects, Assets, People Konnect
Communicate
Key Decisions
GCM Newsletter, BCM Newsletter, eCirculars, gNet,
Interim Updates, Policies, Minutes of Meetings, ATR’s, SBU Heads Communication
E Mails to Employees
Reward &
Recognition
Spot Award, Idea Factory, Best CIP, I Value U, Zeal
Factory
Effectiveness
Town hall meetings in all SBUs
Site wise Best CIP R&R, Site specific
Theme based Idea Factory R&R
(Winning site, Top contributors)
Communication Effectiveness
– EEEC Outcomes, Employees
perception on Leadership
Increased Idea Generation,
More no. of unique employees
contributing ideas
35
1.1B2 Focus on Action
How do SENIOR LEADERS create a focus on action
to accomplish the organization’s objectives improve
PERFORMANCE, and attain its VISION? How do SENIOR
LEADERS to identify needed actions? How do SENIOR
LEADERS include a focus on creating and balancing
value for CUSTOMERS and other STAKEHOLDERS in their
organizational PERFORMANCE expectations?
Leadership Team brings Organization wide focus through our
Strategic themes as mentioned in 1.1 A1. These themes are
integrated with our Work System (Fig. 6.1-2) and aligned with
BSC/PDM, Strategic objectives, Goals, Initiatives and Action
Plans (Fig. 2.1-7). Balancing of stakeholders’ requirements is
done through identifying goals on all 4 perspectives of Balanced
Score Card. This is reinforced through redesigned Goal sheets
largely focusing on efficiency and effectiveness measures along
with 10% weightage for L & G, which comprises of aspects
like Innovation, KM, People development, Corp Sustainability
& Process Improvement. Fact based Performance reviews
(Fig. 4.1-7) by senior leaders, trigger action plans to create
continuous focus on accomplishment of strategic objectives
(Fig. 7.4.1). These actions become trigger for building new
capabilities and thus review findings become an important
input to Strategic Planning Process (Fig. 2.1-1) New initiatives
that drive breakthrough performance are implemented by
formation of CFTs (Bulls Eye at GKEL, Hydro Power Project
Management Manual) and, through Improvement Projects.
Senior leaders also identify required actions through
Assessment feedbacks like IMS audits, MAG Audits, Financial
Audits, Customer/ Supplier satisfaction surveys to enhance
process and organizational capabilities. Creating focus on
safety & climate change is also a part of senior leaders focus
as illustrated in Fig. 1.1-11
Fig. 1.1-11 Creating Focus on Action
Create Focus on
Attaining Vision & Organizational
Strategic Objectives
Improving Performance
Processes used by Senior Leaders
- Vision, Mission, Values & Beliefs
- Strategy Development & Deployment workshops
- Review Architecture
- RASCI, DoP, Governance
- Sector Strategic Themes – Liquidity, Profitability, Structure & Process
- Stakeholder Engagement, Policy Advocacy
- Employees Reward & Recognition, Engagement, Motivation
- Sector BSC, SBU BSCs, PDM, A3 Sheets, Goal Sheets
- Organization Restructuring, Empowered SBUs with P&L Accountability
- Reviews (GHB, GCM, BCM, SBU Heads, Plant Heads, Project Heads)
- Annual BE Roadmaps for SBUs
- Organizational Design by McKinsey
- Engagement with Global consultant McKinsey to develop a “GMR way” of Project Management (Bhavyatha),
Operational Excellence at Thermal Assets
- Hay Group facilitated Job Evaluation and Organization Analysis to enable consistent and comprehensive Role
Documentation
Environment, Health, Safety & Quality
Climate Change
- Culture of Continual Improvement through 7 STEP Methodology at Assets, Projects and Corporate functions
- Nurture innovation through e-Enabled Employees’ suggestion scheme : IDEA FACTORY
- Actively engage in Employees’ Reward & Recognition
- Process Standardization through IMS at G&L Assets, Thermal Coal Assets
- Energy Sector EHS Framework, Hydro Power Project Management Manual
- Enhance focus on Cost of Quality
- Behavioral Based Safety Assessment, Bridging gaps by External Training (NEBOSH)
- Sustainable Farming based Green belt Development
- Zero Discharge philosophy at Operating Assets
- Sustainability Reporting under GRI G4 Framework
- Focus on Resource conservation through Project Bijlee & Project Paani
- Balanced portfolio, Significant generation through Clean Fuel and Renewable sources
- Use of Advanced Technology leading to higher efficiencies, Reduced Emissions
- EHS Targets set to surpass Statutory requirements
1.2 Governance & Societal Responsibilities
1.2 A Organizational Governance
1.2A1 Governance System
How does your organization review and achieve the following KEY aspects of your GOVERNANCE system?
• accountability for management’s actions
• fiscal accountability
• transparency in operations and selection of and disclosure policies for GOVERNANCE board members, as appropriate
36
• independence in internal and external audits
• protection of STAKEHOLDER and stockholder interests, as appropriate
We have adopted RASCI (Responsible, Approve, Support, Consult, and Inform) framework to capture key processes and the decision
rights matrix. RASCI goes beyond conventional financial powers and looks at key business process decisions that have long term
implications. RASCI helps to ensure that all key stakeholders whose involvement is necessary to ensure quality decision making,
are mandatorily brought in during the decision making process. Keeping in line with RASCI, All important operational decisions are
taken at the Business steering committee meetings. The biggest change which necessitated the revamping of the DOP was the
reorganization of GMR into SBUs. The Energy DOP reflects the powers necessary to be given to the SBU heads for their smooth
functioning, and provides for the following:
•
•
•
•
Easy reference document to ensure proper and prompt exercise of power, thus eliminating delays
Clarity in ensuring restraint / control of unauthorized exercise of power wherever felt necessary
Addressing actual / perceived inequalities in financial powers for people at same levels / grades within the Sector
A workable document giving appropriate powers to employees at different levels
Internal Audit process has been revamped and aligned with SBU structure, with ownership of SBU heads for better controls and
Compliance management. Stage Gate Audits through PWC were carried out for Hydro Projects to ensure our conformance to all
necessary clearances and approvals at every Project stage gate for better control on time, cost, and quality. Besides this, Fraud Risk
Assessment for EMCO, GKEL & CTPP has also been completed.
GMR Energy has complied with the requirements of Corporate Governance contained in the Company’s Act particularly those relating
to composition of the Board, Constitution of committees such as Audit Committee, CSR Committee, Shareholders Transfer Committee,
Nomination & Remuneration Committee (Committee scope revisited and enhanced based on the amendments in Companies Act2013.) and Investor Grievance Committee.
The Board consists of a total of 10 directors, of which 6 are independent directors, which constitutes more than 50% of our Board
of Directors. Of 4 non-independent directors, 3 are Executive Directors and 1 Director is nominee director of Investors. Fig. 1.2-1
illustrates GMR Energy Governance System and its impact on our Stakeholders.
Fig. 1.2-1 GMR Energy – Board & Governance System
37
Areas
Key Approaches & Impact to Stakeholder
Management Actions / decisions placed before Board, Internal Audit Findings reported to Audit
Accountability for
Committee, Audit Committee considers concerns raised in regard of COBCE – Whistle Blower Policy,
Management’s
Board & Committees are reported with ATR’s arising out from the last meeting/s and status, Key Incident
Actions
Reports and Key litigations reported to Audit Committee, Board for review/discussion/decision
Fiscal
Accountability
Internal & External Auditor checks, verifies and review the Accounts, Accounting Policies, Disclosures in
financial statements and compliance to Accounting standards and Company Law
Transparency in
Operations
Formed various committees – Nomination & Remuneration Committee, Allotment Committee,
Management Committee, Mechanisms to escalate / report concerns through COBCE, Whistle Blower,
Ethic Helpline, Ethics & Integrity part of Agreements, Appointment Letters, Contracts, JVs, SO’s/
PO’s, Review of Ethical Concerns and Closure-communication to concerned individuals, Disclosure of
Management Approach and Key Results through Sustainability Framework – GRI G4 Framework
C
S
CO
E
SH
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Selection of
Governance
Independent directors elected in Board based on skills, expertise and relevant experience, Code of
Board Members Conduct adopted by Board for adherence, Directors’ disclosure of their interest in Other firms/corporate
and Disclosure
bodies
policies for them
Process to appoint Statutory/External Auditor – Considered and recommended by Audit Committee and
Audit
Board – Appointment by shareholders
Independence &
its effectiveness Process to appoint Internal Auditor – Recommended by Audit Committee and appointed by Board
(Internal /
Defining of Scope of Internal Auditors, Internal Auditor performance assessment, Policy of Change of
External)
Audit Firms
√
Protection of
Stakeholders &
Shareholders
Disclosure of Quarterly / Half yearly / Annual Reports, Financials, MIS to Investors/Shareholders/Other
Stakeholders, Closure status on Shareholders concerns raised
√
√
√
√
√
Sustainability
& Risk
Management
Sustainability Initiatives, Sustainability Reporting, Sector ERM Framework, Bhavyatha Risk
Management Processes, Stage Gate Audits, Fraud Risk Assessments, Risk Audits (Bajoli Holi, Power
trading)
√
√
√
√
√
Succession
Planning
Critical Roles Identification & Mapping, Recruitment, Job Rotation, Assigning Challenges roles,
Leadership development Programs, ELPs, GHB Review and Appointment of Business Chairman
√
√
Group Responsible : GIL Board, GHB, GCM, BCM, SBU Heads, Company Secretary
Our Intent : Comply with International/National/Local Laws & Regulations, Local Ordinances, Vision-Mission-Values & Beliefs,
LT & ST Strategy Plan, Governance, Ethics-COBCE
C – Customer, S – Supplier, CO – Community, E – Employee, SH – Shareholder
1.2 A2 Performance Evaluation
How do you evaluate the PERFORMANCE of your SENIOR
LEADERS, including the chief executive? How do you use
these PERFORMANCE evaluations in determining executive
compensation? How do you evaluate the PERFORMANCE of
members of your GOVERNANCE Board, as appropriate? How
do SENIOR LEADERS use these PERFORMANCE reviews to
advance their development and to improve both their personal
leadership EFFECTIVENESS and that of your board and
LEADERSHIP SYSTEM as appropriate?
Performance of Senior Leaders is evaluated by the Quarterly
Business Reviews and achievement of the Business
Objectives as per BSC. Senior Leadership team evaluates
their effectiveness based on the feedback of various surveys
38
like Employee Engagement, GBEM assessments, MAG
Audits, Customer Satisfaction, and other forums like Skip
level meetings, Town hall meetings, etc. All these approaches
give feedback which are then addressed through appropriate
action plans and owners. Our Robust performance review
mechanism including GHB, and GCM reviews, GEL Audit
Committee; Board meetings also provide inputs for improving
leadership effectiveness. Action taken reports are prepared for
each review.
360 degree performance feedback approach for senior
leaders has been deployed to help them get a clear feedback
from subordinates, peers & Superiors to further evaluate
their performance & enhance their effectiveness. Fig 1.2-2
shows the various approaches being used by leaders for their
performance evaluation and performance improvement.
Fig. 1.2-2 Leadership System Effectiveness
Group Performance Advisory Council (GPAC) has identified six
core processes the Group needs to excel viz.
a. Setup Corporate Governance Standards that ensure
fairness, transparency, accountability and responsibility and
reflect the Group’s Values and Beliefs
b. Develop and build talent pipeline to lead the organization and
build the institution to deliver the Group’s 2020 aspiration
c. Win and develop new projects to expand the business in
current and planned areas
d. Maintain and operate assets in a sustainable manner and
as per world class standards
e. Sustain and improve relationship with stakeholders and
build a strong and sustainable brand image for the Group
f. Incorporate Risk Analysis and Scenario Planning in
investment and strategic decisions
These processes are assessed at Group level and are essential
parameters used by GPAC [Group Performance Advisory
Council] to determine Group performance which becomes
one of the significant basis for determining the Executive
compensation.
1.2 B Legal and Ethical Behavior
1.2 B1 Legal and Regulatory Behavior
How do you address any adverse impacts on society of your
products and operations? How do you anticipate public
concerns with current and future products and operations?
How do you prepare for these concerns in a proactive manner,
including conserving natural resources and using EFFECTIVE
supply chain management PROCESSES, as appropriate? What
are your KEY compliance PROCESSES, MEASURES, and GOALS
for achieving and surpassing regulatory and legal requirements,
as appropriate? What are your KEY PROCESSES, MEASURES,
and GOALS for addressing risks associated with your product
& operations?
At GMR Energy, all statutory regulations and voluntary codes
are adhered to with absolute diligence. Across all our units we
implement a structured system to monitor, track, report, and
ensure compliance to the regulatory norms. We also have
adequate software and systems to monitor compliance. During
the reporting period, there were no incidents of non-compliance
and no monetary fines / penalties were imposed.
Our approaches to proactively address societal impacts
including conserving natural resources during design stage
and supply chain stages of the Project life cycle are detailed
out in Fig. 1.2-3 These approaches support us to understand
societal concerns and plan in a proactive manner. During the
execution of operation, all the sites are assessed for Hazard/
Risks under the EHS framework.
Fig. 1.2-3 Proactive approaches surpassing Legal & Statutory Requirements & Addressing Societal Impact
Project /
Operations
Life Cycle
Mechanisms to Anticipate and Address Societal
Impact
Output
- Ensure the land identified for the project meets siting
criteria / guidelines of Statutory Agencies viz. MoEF,
- Project Viability
Land Identification
Railways, Highways etc.
- Title Report,
& Project viability
- Due diligence studies to assess the project feasibility - Project : Go – No Go
check
- Filters to study impact of Land development incl. Legal
Status
Land Acquisition
- Govt. regulations,
- Due Compensation,
- Execution of Land Agreement
- Focus Group Discussions with local community, Gram
Panchayats etc
Key Compliance & Measures
- Compliance with Siting
Guidelines by MoEF and other
ministries
- No major litigation cases
- Compliance with Siting
Guidelines by MoEF, Land
Acquisition Act 2013
39
- Creating an ambient natural environment with green
Design & Project
Construction
Project Hand
Over
Operations Life
Cycle
spaces and landscapes
- EHS Management at Design stage and Construction
- Address societal Issues and concerns gathered from
sites and legal requirements
- Statutory approval for Commissioning,
- Awareness on Safety Systems and Energy
Conservation System
- Interaction & Feedback from stakeholders such
as Community, and Regulatory Bodies for smooth
commissioning and hand over
- Excellence in Environmental
Health & Safety Management
- Optimization of Material and
Energy Inputs for Construction
- NOC from Authorities,
- Commissioning Certificate
- Training to employees
- Statutory Compliances
- Reduced Environmental
Degradation,
- Climate Change Action plan
- Adherence to Corporate Law and Board/Shareholders - Compliance with Applicable
relationship management
Company Law
- Comply with all Statutory
Regulations
- Safety Results (Fig. 7.3.24, Fig.
7.3.25, Fig. 7.3.26, Fig. 7.3.27,
Fig. 7.3.28, Fig. 7.3.32, Fig.
7.3.33, Fig. 7.3.34)
Regulations
- Training Results (Fig. 7.3.1, Fig.
7.3.2, Fig. 7.3.3, Fig. 7.3.4, Fig.
7.3.5)
Regulations (Fig. 7.4.6 to Fig.
7.4.16)
Each Hazard/Risk has defined control system, which is frequently checked through Internal and External EHS Audits (Fig. 1.2-4).
Fig. 1.2-4 Process of Complying and surpassing Legal Requirements
Enterprise Risk Management has been established at GMR Group. Our Risk management team has mapped organizational
risks under various categories of risks including EHS, legal & regulatory, Project Management etc. Risk profiling includes – Risk
Identification, Quantification, Prioritization, & Risk mitigation plan with Risk Owners and Champions assigned against each risk.
Controls and plans are in place to mitigate these risks. (Fig 1.2-5).
Fig. 1.2-5 Key Risks Identified for Sector & Mitigation Plan
Sr. No.
1
2
3
4
40
Risks/Issues
Evacuation Infrastructure
readiness
Mitigation Plans
- Angul & MM Transmission line from GKEL - commissioning by August 2014
- Ensuring corridor availability for DNH (200 MW) and TN 150 MW Ensuring corridor availability for CTPP
by March 2015
- Ensure transmission corridor to Haryana and Bihar from GKEL
Case 1 Tariff Revisions & CERC
- Obtain tariff revision for Haryana, MSEDCL & DNH
Based Tariff determination
- Obtain tariff determination for GRIDCO
- Pre-pone Bihar PPA to Sep. 2014
PPA management for untied
- Participate in case-1 bids for untied power at GKEL and CTPP
power
- Maximize merchant tariff realization through combination of Bilateral and day ahead contracts
Fuel Availability and optimization - Materialization of FSA above the defined limit
(GCV & landed Cost) for profitable - Ensuring high GCV coal availability at plants
operation
- Ensuring MoU coal availability at CTPP by Sept. 2014
Sr. No.
Risks/Issues
5
Interest Costs & Overrun funding
6
Restructuring
7
BSL COD & GEMS CSA off take
8
Litigations
9
10
Mitigation Plans
- Complete bond issuance for EMCO
- Overrun funding for CTPP by June 2014
- Maximize WC limit
- Complete SCB & Axis loan restructuring by Aug 2014
- Complete GREL restructuring ( 80:20 basis)
- Operationalization of CSA with GEMS by June 2014
- Commence Belani mine development by June 2014
- Coal trading as per target
- Resolve & realize the ongoing litigations:
- Sec 11, DNH Deemed Fixed Charges, MSEDCL off take point, Entry Tax ( GKEL), DGFT claims, MAT
claims ( APT) , Interest on delayed payments ( TNEB) & VPGL Tariff revision petitions
- Operating cost reduction ( Operational Excellence & Cost Audits)
- Auxiliary power consumption & SHR reduction at EMCO & GKEL
Streamline and Stabilize SBU org - Implement Hay Group recommendations
structure
- Ramp up in Hydro, O&M ( CTPP) & Finance
Cost Optimization
1.2 B2 Ethical Behavior
How does your organization promote and ensure ETHICAL
BEHAVIOR in all your interactions? What are your KEY
PROCESSES and MEASURES or INDICATORS for enabling
and monitoring ETHICAL BEHAVIOR in your GOVERNANCE
structure, throughout your organization, and in interactions
with CUSTOMERS, PARTNERS, suppliers, and other
STAKEHOLDERS? How do you monitor and respond to breaches
of ETHICAL BEHAVIOR?
GMR Group believes that for an organization to succeed, grow and
excel, it needs to be anchored to its Values and Beliefs and motivate all
its employees to consistently display these values in the course of their
interactions. Our CoBCE, embodies the Group’s Values and Beliefs
and endeavors to lay down guidelines for Employees/Suppliers/
Partners of the Group to follow to in their day to day work life.
Fig. 1.2-6 illustrates GMR Management of Business Ethics. CoBCE
is intended to provide guidelines for the Professional, Ethical, Legal
and Socially Responsible behavior that the Group expects from its
employees. All employees on regular rolls of the Company including
Full Time Directors, Advisors, External Consultants, Expatriates and
employees on contract are governed by this Policy.
As explained in 1.1 A2, CoBCE has been further reinforced by
various policies like Whistle Blower policy, Sexual Harassment policy.
All employees need to read and imbibe the CoBCE and follow it in
letter and spirit, so as to maintain the highest standards of values
in their conduct to achieve organizational objectives. Actions have
been taken to ensure that each employee has read and accepted the
GMR’s CoBCE through the e-enabled system. Approaches like Ethics
Helpline; Location Ethics Counselors provides a secure forum for
employees/vendors/suppliers to report Ethical Concerns.
Fig. 1.2-6 Management of Business Ethics
41
During the meetings with various stakeholders, endeavor is made to make them aware of the expected ethical behavior. Periodic communication
& e-acceptance is sought from employees to reinforce ethical behavior. New recruits & employees are given communication & mandatory training
on CoBCE through Induction & e-enabled module. Clause on Compliance to CoBCE is included in all Agreements/Service Orders/Purchase
Orders executed with Customers/Vendors/Partners as appropriate. All processes of stakeholder transactions are audited.
1.2 C Societal Responsibilities and Support of Key Communities
1.2 C1 Societal Well-Being
How do you consider societal well-being and benefit as part of your strategy and daily operations? How do you consider the wellbeing of environmental, social, and economic systems?
Societal well-being is clearly and unambiguously conveyed as our key business priority in our Vision, Mission and Values & Beliefs.
Our sustainability journey is a critical part of our readiness for the future. This growth requires a structural shift in the manner in which
we conduct our business and review all aspects of our performance – strategies, risks, operational efficiencies, EHS benchmarks, and
employee wellbeing and community relations. We are working on several fronts to create the platform to meet this challenge and along
with it create a sustainable growth.
Sustainable farming based greenbelt development, Sustainability Surveillance under E-governance as per GRI – G4, etc. are few such
futuristic initiatives. To reinforce our commitment towards sustainability, we have taken specific targets in achieving resource efficiency,
conservation of natural resources, reduction in carbon emissions, etc. in FY 2014-15.
The next big step forward is to enunciate, roll out and institutionalize our process of excellence within the overall Sustainability framework.
It includes leveraging the strategic planning process, mapping our environmental and social impacts and defining the way forward in all
areas of sustainable growth.
The Sustainability team headed by Head – S&D formulates the
Sustainability Strategies and reviews its progress. Fig. 1.2-7 illustrates
our CS Approaches on wellbeing of Environmental, Social & Economic
Systems. In FY14, Focus on CSR has been strengthened by
embarking on Triple bottom line initiatives and reporting under GRI G4
Framework. A 3 year Sustainability Road map (Fig. 1.2-8) has been
formulated and is under deployment. Selected employees have been
trained on GRI Certified – “Sustainability Reporting” training courses,
and training sessions have been organized to impart wide spread
awareness amongst EHS Team (Corporate & Site), Corporate ERM,
Internal Audit (MAG) and other Sectors (SEZ & GMR EPC Team).
Fig. 1.2-7 CS Approaches & Initiatives
Area
Environmental
Wellbeing
Contribution Means
Sustainability Measures
such as CDM Registration of
Projects, Carbon Footprint,
Energy Sector EHS
Framework
FY12
- Commenced
FY13
FY14
- Corporate Environment
Environmental
Audit
- Environment
Performance
- Compliance Review
Performance
Monitoring
- Sustainability Report
Monitoring at Projects,
(Pre-work)
- Green Belt
Assets, Green belt
Development at G&L
- Energy Sector EHS
development and
Assets
Framework
Carbon Footprint
- Energy Sector Carbon
- Wildlife Conservation plan of
Footprint Assessment
GIB in EMCO
Education:
1. Set up of DAV English medium school (CBSE) at GKEL
2. Partnered with 70 Govt. School, 66 Govt. Anganwadis, and set up 10 Balvadis
(Pre-school) reaching out to a total of 17000 school children
Societal
Wellbeing
Thrust areas of GMRVF
1. Education
2.Health, Hygiene &
Sanitation
3.Community Development
4.Livelihood
3. Besides 22 training programs to 350 teachers, 47 vidya volunteers are also
provided to Govt School to ensure quality education to 8000 children
4. 700 Govt school children covered under Kidsmart Centers (Early learning
centers) at Seven project locations for technology aided quality education
5. Life skills training program initiated at 10 Govt. School reaching out to 6000
school children
6. Set up 22 ‘After school’ learning centers across energy projects, providing
Academic support to 1000 School children
7. Trained 222 school children for competitive examinations across 8 coaching
centers
42
Measures
Fig. 7.4.6,
Fig. 7.4.7,
Fig. 7.4.8,
Fig. 7.4.9,
Fig. 7.4.10,
Fig. 7.4.11,
Fig. 7.4.12,
Fig. 7.4.13,
Fig. 7.4.16
Health Care
1. Full-fledged – well equipped hospital set up at GKEL (Vivekananda Hospital)
available round the clock to both local community and employees
2. 23 medical clinics operational reaching to over 25000 people per year
3. Mobile medical units served to over 4400 elderly people on a regular basis
4. 2 ambulanced catered to 32 emergencies
5. 83 Health awareness programs organized across locations reaching to over
10000 people
6. Medical care, clinical investigations & Food and medicinal support being
Societal
Wellbeing
Thrust areas of GMRVF
1. Education
2.Health, Hygiene &
Sanitation
3.Community Development
4.Livelihood
extended to 56 sickle cell anaemic affected children, 127 malnourished children &
10 HIV / AIDS affected children near CTPP Project
7. 8 nutrition centers are run to provide supplementary nutrition, pre-natal & postFig. 7.4.3-5-6
natal care for pregnant and lactating women
Livelihood
1. 50 youth from energy locations have been sponsored to different vocational
trainings at GMRVF Vocational training centers (Hyderabad & Delhi)
2. Community based vocational centers have been set up at Chhattisgarh and
EMCO (Warora) project sites providing training to over 277 youth in the areas of
Electrical, Two-wheeler repairing, Mobile Repairing etc
3. 300 Self-help groups have been promoted by Foundation and the members of
these groups are encouraged to take up different income generation activities
4. Under “EMPOWER” initiative of GMRVF, women are provided with different skill
trainings and the products made by them are marketed.
5. Rural families are supported with several farm and non-farm livelihood
interventions to enhance their income
- Commissioning of all Units
Economic
Wellbeing
Increased Power Generation
- Sustained Power
- Commissioning of
leading to higher electrification,
Generation from G&L
Solar and Wind
Uninterrupted power Supply to
Assets
power projects
Industries, Consumers
of EMCO & GKEL
Fig. 7.1.1,
- CoD of Maru Transmission
Fig. 7.1.3,
- Skill assessment of Land
losers and mapping with
Unskilled/Semiskilled/
Skilled Jobs
Fig. 7.1.15,
Fig. 7.1.17
Fig. 1.2-8 GMR Energy Sustainability Initiatives Roadmap (GRI G4)
43
1.2 C2 Community Support
How does your organization actively support and strengthen
your KEY communities? What are your KEY communities?
How do you identify these communities and determine areas
for organizational involvement, including areas related to your
CORE COMPETENCIES? How do your SENIOR LEADERS, in
concert with your WORKFORCE, contribute to improving these
communities?
The Company’s definition of CSR stems from the ‘Vision’ itself, which
states “GMR Group will be institution in perpetuity that will build
entrepreneurial organization, making a difference to society through
creation of value.” Thus making a difference to society has been made
an integral part of the Group’s vision implying that all businesses have
to keep this societal goal as part of doing the business itself. The
concept of ‘shared value’ is inherent in the goal of ‘creation of value’
in which the whole society benefits, rather than just aiming for profit
maximization.
‘Social responsibility’ is one of the core values adopted by GMR Group
and it is to be practiced in all businesses and by all employees of the
company. All employees are oriented towards living up the 7 values
and beliefs including social responsibility. Thus it is very much a part of
DNA of the Group companies.
Furthermore, to actualize its CSR professionally, the Group set up the
GMR Varalakshmi Foundation in 2003. The Vision statement for the
Foundation reads as “To make sustainable impact on the human
development of under-served communities through initiatives in
Education; Health and Livelihoods.”
The Foundation has the mandate to work with the under-served
44
sections of communities around the areas of business operations.
Thus, the key communities for GMR Group’s CSR activities are the
communities affected by the business operations of the Group. The
Foundation conducts need assessment studies in the project locations
and accordingly prepares long-term and Annual Operating Plans for
each location. These plans are implemented so as to create maximum
impact of social investments made by the Group. Fig. 1.2-9 illustrates
GMR Corporate Social Responsibility Project Planning. Regular
feedbacks from community, GCM Review of CSR Projects, and inputs
from Govt. Agencies/NGOs are used to improvise on CSR Initiatives
and Deployment.
Fig. 1.2-9 GMRVF Project Planning
Fig. 1.2-10 GMRVF Key Initiatives across GMR Energy Sites
Sr.
No.
Key Initiatives Undertaken
Site
Education
Health, Hygiene &
Sanitation
Community
Development
1. After School Learning
1
EMCO (Warora)
Centers (3)
2.NAVODAYA Coaching (3)
3.Kid Smart Centre (1)
4.E-Learning and Education
Centre (4)
5.Pratibha Centre (1)
6.Govt School Support (6
Schools)
7.Transportation Facilities
8.TOMS shoes Distribution
1. Community Libraries
GKEL
(Kamalanga)
at CEL-H
Programs (65 Demonstration)
1. Community libraries
2
1. Vocational Training to Youths
1. Health Clinics (6)
(6)
2.Vocational Training Centre 2.Nutrition Centers (6)
Warora
2.Gym (4)
3.Mobile Medical Unit (1)
3.Celebration of
3.Tailoring Centre (3)
4.Special Health Camps
Special Events and 4.Income Generation Activities
5.Individual Toilets
Awareness Sessions
(13 Types)
6.Health Awareness Programs
for communities
5.Self Help Groups (76 groups)
6.Agriculture Improvement
1. Support to govt. schools (10)
1. Regular health camps for
2.Support to govt. Anganwadis
(16)
3. Running tuition centers (2)
4.Running Kid Smart centers
(2)
5.Providing educational
scholarships
Livelihood
women and children
2.Regular health camps for
elders
3.Regular adolescent health
camps and school health
check-ups
(4)
2.Strengthening
cultural groups and
institutions
3.Support to youth
groups for sports
and cultural
activities
4.Celebration of
designated days
1. Promotion of cash crop
cultivation, vegetable
production, mushroom
cultivation, fish farming, goat
farming, poultry etc. among
700 families
2.Sponsoring youth for
vocational trainings
3.Tailoring training for women
1. Running 6 dispensaries in
3
CTPP
(Chhattisgarh
Project)
partnership with Mission
Hospital, Tilda
2.Running an ambulance
1. Scholarships for needy
3.Providing care and
students
support to sickle cell and
2.Navodaya coaching support
malnourished children
3.Running 2 Kid Smart centers
4.Support to establishment of
4.Provision transport facility for
X-Ray unit at Govt. Hospital
college going girls
5.Set up Blood Bank at
5.Support to 6 Govt. schools
Mission Hospital with
and Anganwadis
support from CTPP
6.Weekly health awareness
programs
4
GPCL (Chennai)
Supporting 10 Govt schools
Health camps and health
and 12 Anganwadi in improving awareness for children, women
the quality of education
and community
1. Provided vocational training to
over 300 youth in 3 channels
1. Constructed
2.Promoted federation of women
SHGs and facilitated Cash
community halls in
Credit Limit to 3 SHGs
two villages
3.Agricultural equipment bank
2.Renovated
4.Trainings on improved
one pond and
agricultural practices for
constructed 4 Nirmal
farmers
Ghats
5.Tailoring training for women
6.Supported 100 families for
income generation activities
-
-
1. Education support to 842
5
GVPGL / GREL
(Rajahmundry)
children from 8 Govt.
schools across 5 villages
with several educational
initiatives
2.92 children are reached out
through 4 Bala Badis in 3
villages Provided
3.Education support to 113
HIV infected and affected
children
4.Distributed TOMS Shoes
among 840 children
5.Running 3 school gardens
and 6 reading rooms
benefiting 460 children
6.Kid Smart Early Learning
Center set up at one Govt.
school helping 120 children
to learn better
7.Distributed specially
designed workbooks to 650
children
1. Supported 28 HIV infected
children with regular nutrition
and counseling services
2.Provided door step health
care services to 830 senior 1. 1800 readers
citizens
visited 2 Community
Libraries set up
3.Oriented 600 women on
at Vemagiri and
Reproductive and Child
Kadiyapulanka
Health care issues
villages
4.1300 people from Vemagiri
village benefited from the
2.GMRVF assisted 24
Suvidha Pubic Toilet
fire victim families
from 4 villages
5.Supported 75 pregnant and
lactating women with regular
nutrition supplements and
health awareness through 2
Nutrition Centers
-
45
Sr.
No.
Site
Education
Health, Hygiene &
Sanitation
Community
Development
Livelihood
1. On-going support to Govt.
6
GEL (Kakinada)
Schools and students for
improvement of education
quality
2.Provided educational
support to 64 HIV orphans/
semi-orphans
3.Supported about 670
students with notebooks
sponsored by colleagues of
GEL, Kakinada
4.Established balvadi’s and
on-going Support to preschool education
1. Running free health clinic
2.Conducted medical camps
1. Support to 132 fire
3.Supplementary nutrition food
victim families
support to 10 HIV infected
2.Computer Based
children
Functional Literacy
4.Facilitated cataract surgeries
Program
for 28 people from 2 fisher
folk villages
GEL (Mangalore)
Health camps and health
Supporting 3Govt schools
awareness for community
and 6 Anganwadi in improving
-9 villages - 5000 /Health
the quality of educationInsurance for community
2000children
member-346 members
Youth and Children’s
club- 235 members
8
SJKPL (Shahdol)
Medical Clinic, General &
Pre School Education - AWs,
Specialized Health Camps,
Tuition Centers, Creative
Health awareness for Women
Events, Summer Camp, Library & children, School Health
& Infrastructure Support
Check-up, Adolescent Girls
Awareness
Self Help Groups, Bank & NRLM
Linkage, Agri Development
Hand Pump Repair,
Trainings, Crop Demonstrations,
Repair of Health Sub
Livelihoods in Poultry &
Center, Promotion of
Patchwork, Nabard Linkages for
village level institutions
Farmers Clubs, Sponsoring of
village youth
9
1. ASLCs (3)
2.NAVODAYA Coaching (3)
GBEL (Tikamgarh) 3.Govt School Support (6
7
Schools)
4.TOMS shoes Distribution
10
Community Resource
Centre
3. ITI Coaching
4. Navoday Coaching Classes
5. Early learning Centre /Kid
smart Centre(ELC/KSC)
6. TLM support to GSS School
Holi and GPS holi
7. Utensils support to all
School
Bajoli Holi (Hydro)
8. Govt. Primary and Middle
schools
9. Iron Kitchen Shed
10.Installation of 2 smokeless
Chulah in GSSS Holi
11. TLMs and Material support
to AWCs
12.2 Dental Health & Hygiene
camp
13.3 special days celebration
52 SHGS 542 members and 192
micro enterprises
1. Community Libraries
1. Tailoring Centre (2)
(3 )
2.Income Generation Activities
1. Health Clinics (3)
2.Gym (2)
(3 Types)
2.Health Awareness Programs 3.Celebration of
3.Self Help Groups (26 groups)
Special Events and
4.Agriculture Improvement
Awareness Sessions
Programs (35 Farmers)
for communities
1. 6 CCCs in Govt. Schools
2. Community Library &
46
-
1. 3 Sewing Schools in Holi, Deol
1. support 1 x-Ray Unit
2. 1 ECG Machine Unit to
CHC
3.Medicine Support to CHC
Holi
4.Support in 2 round pulse
polio campaign
5.Maternity and Child health
Centre in Deol
6.Physiotherapy and 3
General Health Camp in
Deol, Bajol and Holi
7.Outreach Medical Service
8.3 Emergency Medical
Support
9.1 eye camp at CHC Jabbal
and Nayagram
1. Road Safety
2.Craft center Holi (knitting,
2.Disability
3.2 Green House support to
Signage
Certification of 23
disable persons
3.5 Solar light Units
at Nayagram and
Bajoli
4.Public Toilet
Repaired in Holi
5.2 Horticulture
Training for farmers
6.Stakeholders
Management
Committee
decoration, weaving)
promote Agri Business (off
season)
4.2 Value Addition Training
Nayagram and Deol
5.1 women and 2 youths
provided material support to
start their own business from
Holi and Kuleth
6.Construction of concrete way
for Mahila Mandal Deol
7.Tent House Support to Mahila
Mandal Bantooh benefited 25
women
8.Sports Kit to 4 youth group
9.Support to 2 cultural group
Sr.
No.
Site
Education
Health, Hygiene &
Sanitation
Community
Development
Livelihood
1. After School Learning
Centers (ASLCs)
2.Community Library
3.Computer Centre
4.Transportation Facility
11
(School Bus)
5.Navodaya School Entrance
Alaknanda (Hydro)
Tuition Classes
6.Special Days Celebrations
7.Need Based Support to
the Govt. Schools and
Aganwadies
8.Creative Activities and
Interschool Competitions
1. 4 Balwadis (Pre-schools
12
Talong (Hydro)
education) with regular
creativity development
activities and nutritional
support
2.Support to hostellers in
Attarao Middle School
1. Medical Clinic
2.Ambulance
3.Outreach Health Services
4.Special Health Camps
5.Awareness cum training
programs on various issues
like “Reproductive Child
Health Care”
1. Vocational Training to
Unemployed Youth
1. Small Infrastructural
activities
Support to the
3.Financial support to promote
community
self-enterprises
2.Need based support
4.Marketing and Technical
to the community
support to Women “SHGs”
5.Training Programs and IGAs
for Women “SHGs”
1. Qualified Nurse was
appointed on part time basis
for providing basic health
care services in 9 project
affected villages
-
1. Distributed 40 good
1. Support teacher in 3
13
Government schools
Upper Marsyangdi
2.Other activities like
– Nepal
competitions etc. to ensure
quality education
2.Financial Support for Sports
quality mats to 3
SHGs from Tallo
Chipla, Uppalo
1. 2 health volunteer (ANM) in
Chipla and Jitai
Tal & Ghermu health post
Jagat villages
2.Free medical counseling
3.ANC check up service
2.Supported youth
club of Upper
4.Providing essential Medicine
Tagring Lamjung
every 6 months
with sport material
to conduct football
tournament
-
1. Supproted Amma Samuh in
establishing Rice Mill at Mipra
village
2.Organized 2 days training on
Elaichi farming and vegetable
cultivation for 32 villagers from
Tagring and Ghermu VDCs
3.Supported a Fire victim family
in Lili Lamjung with Relief
material
1. Mobilized and selected 20
1. Running government
14
Upper Karnali –
Nepal
15
Corporate Bangalore
16
Corporate - Delhi
approved health post in
village Ramaghad
1. 2 Balbadis are running in the 2.Trained male and female
project area
health staff for health
check-up
2.Infrastructure support to 15
Government schools
3.Free medicine to the
villagers
4.Organized various health
camps like immunization
1. Running 15 tent schools for
migrant labor children
2.Running After School
Learning Centers
1. Supporting 2 Govt. schools
2.Running 2 Bala Badis
3.Running Bridge course for
dropout girls
4.Running After School
Learning Centre
-
1. Regular health camps in
migrant labor settlements
2.Regular health awareness
-
programs
youth from the project villages
for vocational training at
GMR Varalakshmi Centre for
Empowerment and Livelihoods
at Delhi
2.Provided agriculture support
and veterinary support like
distribution of pesticides and
treatment to animals etc.
benefiting 56 farmers
3.Conducted an intensive
agriculture mapping drive in
project to understand farmers’
challenges and problems
towards farming of various
crops
1. Running one vocational
training center
1. Running one vocational
training center
1. Running one regular medical
clinic and one weekly
gynecological clinic
2.Conducting regular health
awareness programs
1. Running Children
Creativity Centers
2.Running one tailoring trainingcum-production center
3.Managing EMPOWER Shop
at Delhi Airport to market the
products made by women
SHGs
47
Other Relief Works Taken up Through Foundation
• GMRVF team with the support of the local GMR Hydro Team and
Local Administration had initiated some relief works in the Project
Affected Areas of Lambagarh and Benakuli. As a part of this, the
local Hydro and GMRFVF team air-dropped 100 packets of relief
material (each packet containing Pulses; Potato; 5 kg of flour;
Match Box; Candles; Milk, Biscuits and medicines like ORS etc.) at
Lambagarh and Benakuli on 18th June 2013. These 2 panchayats
were worst affected along with Pandukeshwar in the Project
Affected Area of AHEP.
Class I Raikheda School equipped
with Kid Smart Centre
Name of the student
%
Class I
Bhatapara School
Name of the
student
%
Kajal Verma
88%
Draupati
73%
Yashvi
86%
Saraswati
62%
• The GMRVF team carried out initial assessment and rapid needs
assessment in the affected area to plan for relief and rehabilitation
programs.
Ayush
78%
Chiranjiv
61%
Khilesh
77%
Dev
56%
• Rented Space, furniture, logistic support and human resource were
provided to resume the classes of the damaged schools in the area.
Rohan Kumar
76%
Dhaneshwari
56%
Suraj Verma
76%
Tukeshwar
56%
Deepak Verma
74%
Murari
47%
• “Facilitation Centre” was set up at Foundation office from where
necessary information, application drafting facility, storage and
transportation services were extended to the disaster affected
families/ communities.
Karan Dheevar
68%
Gokul
43%
Hema Verma
72%
Urvashi
43%
Karanraj Verma
66%
Tilak
46%
• Financial support worth Rs 1.2 lakhs leveraged from like-minded
social organizations and financial assistance was given to 44 BPL
students of the area.
Thalendar
66%
Jageshvari
37%
Umeshwari Verma
68%
Ashok
37%
• GMRVF as a member of “Chamoli District Disaster Coordination
Committee” worked pro-actively to strengthen rehabilitation
initiatives of various agencies working in the district.
Khushbu
65%
Durga
36%
Devendar
66%
Khilendra
38%
Case studies developed and awards received by GMRVF on CD
initiatives
Pooka Bharti sen
71%
Sumit
35%
Ravi Kumar
33%
• Medical support was extended to the disaster affected community
at the time of urgent need.
Case Study 1- Educational Innovation - Kid Smart Early Learning
Centres
With an objective of creating an exciting learning environment through
computer-based learning, activities and reading for children of age
group 3 to 9 years GMRVF with IBM initiated nine GMR-IBM Kidsmart
Centres or Early Learning Centres (ELC) at seven project locations.
These ELCs target children from Govt. Schools who have been deprived
of technology aided quality education. Each ELC has three corners
-Technology corner, Craft corner and Reading corner with specific
activities designed for each corner. These corners give the child a
chance to explore and learn things in a more fun way. Over 700 children
are benefiting from these centres which helped in increasing children’s
interest in studies and in improving their academic performance. A
48
comparative analysis of results of Class I children in two Govt. schools at
Chhattisgarh clearly indicates that the Kid Smart children are performing
better in academics when compared to other children in normal school.
Case Study 2-Supplementing Govt. Health Care Services
The Community Health Center (CHC), Holi in Himachal Pradesh, is the
only health facility in the sub-tehsil Holi and on an average 45 patients
per day avail health services here. GMRVF undertook a survey of
the facilities (both physical and manpower) at CHC, Holi in 2012.
During this, lack of X-Ray machine and radiographer were identified
as deficiencies which critically affect the quality of medical services in
the Holi sub-tehsil. People have no option but to visit Chamba, District
Headquarter, which is about 72 km from Holi and normally takes 4
hours bus ride, for X-ray and ECG services. The worst part is that there
are only two buses from Holi to go to Chamba. Additionally it is difficult
to return on the same day. On the basis of this requirement, GMRVF
with the support of GMR Bajoli- Holi Hydro Electric Project had donated
one X-Ray and ECG machine to the CHC. The Foundation also had
appointed a radiographer to operate the machine. The X-Ray and ECG
machine have come to the community as a big relief as there was no
such facility in the near vicinity.
Since April 2012 over a period of 2 years, total 434 people have
been benefitted from these facilities (X-ray and ECG) at CHC Holi.
Foundation made an attempt to convert the value of services provided
through these facilities into monetary terms considering the costs of
transportation for patients and attendants, charges for availing the
services and miscellaneous expenses like food etc.
lead role in fulfilling the social commitments of GKEL through initiating
participatory community development programs to ensure quality of
life of people living near GKEL. Among various social initiatives that
GMRVF has taken up, the project that has been implemented to create
livelihood opportunities for the project affected people has perceptible
impact and contributed significantly for the human development of
under-served communities.
From this, it is estimated that the community has saved Rs 14 lakhs
which otherwise would have spent on above mentioned items. If the
income foregone for 2 days is also considered, this saved amount
would be to an extent of Rs. 16.50 lakhs. If the pain and drudgery of 8
hours of bus ride for the patients is further added to this, the benefits
of these facilities created by GMRVF are unimaginable. Not to add that
many of them would not have had gone to Chamba and would have
suffered and worsen up.
Case Study 3-Securing Future!
“Having multiple income generation activities not only increased our
family income, but also reduced the risks associated with a single
livelihood. Now we are earning more, and are more secure about our
future” says Bholeswar. Bholeswar Bhoi, is a small holder farmer from
ST community, from Barasahi village near Kamalanga in Odisha. His
family of 12 includes his three sons, one daughter, daughter-in-laws
and grandchildren. He owns two and half acres of land of which he sold
a small part to GKEL for setting up its power plant. Bholeswar and his
three sons worked on the farm. Bholeswar was struggling to manage
the entire family and to support the college education of his daughter,
Loli, who is the only member from his family who has gone for higher
education.
GMRVF trained Bholeswar in improved agricultural practices and
also supported him to take up groundnut cultivation, backyard poultry
and fish farming activities. Two of his sons work at power plant site
as unskilled labour. The third son was supported to take training in
mobile repairing at Cuttack and also for setting up a mobile repairing
shop. With increased income sources, Bholeswar’s family conditions
improved. They have constructed two additional rooms in their house
and are able to support Loli’s education.
Bholeswar’s family is one of the several families benefited by
the livelihoods program implemented under Corporate Social
Responsibility of GKEL in Dhenkanal district of Odisha.
GMRVF which is the CSR arm of the GMR Group has been given the
Traditionally most of the people in the periphery communities were
involved in agriculture and allied activities for their livelihoods. But since
last few years there have been a number of changes in their way of
living and thinking due to massive industrialization process undertaken
in Dhenkanal - Angul industrial corridor. Some of the major relevant
issues are: (1) Several farmers are moving away from agriculture after
small and big industries came up in this area. They are more interested
to work as unskilled labourers in the industries rather than working as
farmers –the vocation they are good at. (2) The local youth legitimately
have hopes of skilled work in industry, though they often lack skills
and competence. (3) Often, marginalized sections of the society such
as SC, ST, OBC and women are not able to adequately participate in
initiatives.
As a result they oppose industrialization process and the overall
situation becomes volatile and doesn’t remain conducive for business
to settle down and grow. Moreover protection of environment becomes
sole responsibility of the industries without any community participation
or ownership. In order to address the above mentioned issues, a
comprehensive livelihood program was designed and implemented
for 700 land loser families in GKEL periphery communities which not
only created employment opportunities for the land loser families and
unemployed youths, but also created a green belt in the communities.
As part of the livelihood program, improved agriculture practices were
introduced for better productivity and return. To make the agriculture
more economically remunerative, different crops was promoted.
Farmers belonging to SC and ST communities were provided with
training and inputs (seeds, fertilizers and agriculture equipment) to
undertake groundnut, maize, paddy and vegetable cultivation. Technical
support was mobilized from the government departments to ensure
better result. Likewise backyard plantation of papaya and teak was
promoted. Papaya and teak plantation is known for great profitability.
These plants require less maintenance than the other horticulture
plants. Training and support was provided to women members of
the families to start mushroom production ventures. Similarly allied
activities such as goat farming, backyard poultry, duckery and fish
farming were promoted which increased their family income.
Vocational training has been provided to 261 unemployed youths and
49
women from land loser families on basic computer, electrician, mobile
repairing, and tailoring and basic beautician course. Nearly 90 % of
these unemployed youths and women belong to the SC, ST and OBC
communities. Where ever possible, trained youth were engaged in
the construction work at the GKEL project site; otherwise support was
provided to the candidates to explore self- employment opportunities.
Trained youth are self-employed as mobile mechanic, tailors and
beauticians. The tailoring center women are engaged in production of
garments and selling their products in the local market. The Foundation
extended hand-holding support to them to ensure that they are able to
build on their training.
Livelihood project has created shared value for both the community
stakeholders and GKEL. The details of livelihoods programs are given
below.
FAMILIES ASSISTED UNDER LIVELIHOOD PROJECT
Sl. No
Name of Livelihood Activity
SC
ST
OBC
General
Total
1
Fish Farming
9
13
43
0
65
2
Goat Farming
17
18
54
1
90
3
Backyard Duckery
0
7
18
0
25
4
Backyard Poultry
111
106
181
22
420
5
Vegetable Cultivation
209
15
324
22
570
6
Cash Crop (Groundnut & Maize cultivation)
15
65
74
0
154
7
Backyard Plantation ( Papaya & Teak)
200
14
413
0
627
8
Mushroom cultivation
56
20
230
10
316
9
Vocational Training for unemployed youth
8
13
46
0
67
10
Tailoring Training for women
56
16
125
2
199
Total Number of families supported
The family income of the most marginalized section of the society
has increased @ Rs 7000/- per family for about 500 families within
a period of 6-12 months from farm based activities. The agricultural
land which was lying fallow was utilized again, the community assets
like ponds generated income for the whole village. The women groups
initiated collective ventures which developed trust and connectedness
in the communities. The backyard plantation program contributed for
a healthy environment in the locality which is a major concern in the
periphery communities of any power project. All these changes have
also generated goodwill for GKEL. The community did not create
hindrances in the construction work at the GKEL project site. Overall
the livelihood project played important role in integrating business with
community by developing human and natural capital among the most
marginalized section of the population.
Awards and Recognitions
Best CSR Practice Award: GMR Kamalanga Energy Ltd. emerged as
winner of Best CSR Practice Award-2014 for undertaking exemplary
livelihood initiatives for the communities neighbouring GKEL. This is an
Odisha level event being organized by New Delhi based media group
Think Media Inc. in collaboration with Indiacsr, ILFS and Global Hunt.
GMR Chhattisgarh Energy Ltd. received an Award for BEST CSR
PRACTICE from Think Media Inc. (a National level venture established
with an objective of sharing inspirational news across the society). The
entry titled ‘Village Development Centre (VDC): A One in All Package
for CSR’ has been selected for the award based on the significance
of the issues addressed, scale of impact, people’s participation,
innovativeness, etc. Village Development Centre is a single-window
50
No of Families assisted
2533
service delivery point set up by Foundation at Raikheda village from
which several of Foundation run programs such as Kid Smart Centre,
Tailoring Centre, Community Library etc. are being operated.
GMR Varalakshmi Foundation received “Appreciation Award for
excellent work in UK Disaster relief by the CM, Uttarakhand” for the
disaster relief and rehabilitation works carried out at the disaster
affected area. The relief works carried out by GMR Group at
Uttarakhand are as follows:
humanitarian response through food and medicines distribution in the
area with the support of local district administration. Our Foundation
team carried food, water and medicines to the villages and supplied
them to the people stranded at different places. The team also assisted
ITBP personnel in rescue operation.
On 16th - 17th June 13, disaster in the form of cloud burst and flash
floods hit the state of Uttarakhand. GMRVF’s school Bus, another bus
and ambulance were lost in this disaster. Many Govt. school buildings
were damaged in the area due to the disaster. Within our project area
at Badrinath, 229 Families lost either their house/land/other assets.
More than 20000 pilgrims were stuck at several places in our project
area and were evacuated by army and local administration through air
service.
Our GMR Aviation Team participated in the Rescue Operations at
Uttarakhand to support people stranded at different places. Braving
inclement weather and heavy odds, Aviation Team took the plunge and
carried out rescue operations from 22nd June to 2nd July in the difficult
terrains of Gaucher, Joshimath and Badrinath using 2 Bell Helicopters
of GMR Aviation Ltd. The Helicopter team operated about 50 sorties
and evacuated 210 personnel.
Staff of GMR Alaknanda Hydro Electric Project and GMR Varalakshmi
Foundation (our CSR arm) rendered yeoman service in the immediate
aftermath of all-round devastation and destruction in Uttarkhand in
the wake of this disaster. GMR was among the first agencies to start
While the rescue phase focused on the tourists and pilgrims, now the
long term process of rehabilitating the communities in affected villages
has to start. To contribute to this enormous task before the Government,
all GMR employees donated their one day salary amounting to Rs
90.34 lakhs and GMR Group made a matching donation of Rs 1 crore.
51
2. StrategIC PLANNING
2.1 Strategy Development
2.1 A1 Strategic Planning
GMR Energy follows a structured Strategy Planning Process
(Fig. 2.1-1) to develop its Strategic Plan. The process starts with a
communication from CSPD during Nov-Dec culminating into GHB
approved, AOP and three year rolling strategic plan by end of March
every year. Until FY 14, development of Strategic Plan from start to
end was being driven by SPG. FY 15 onwards, Respective SBUs have
been fully empowered to develop SBU level Strategic Plan to ensure
better accountability and harmonization of Plans. SPG continues to
perform the Environment scan to provide high level inputs to all SBUs
to enable them formulate their own Strategy, based on Group direction,
and Strategic themes identified for the Sector.
How does your organization conduct its strategic planning? What
are the KEY PROCESS steps? Who are the KEY participants?
How does your PROCESS identify potential blind spots? How
do you determine your CORE COMPETENCIES, STRATEGIC
CHALLENGES, and STRATEGIC ADVANTAGES (identified in
your Organizational Profile)? What are your short- and longerterm planning time horizons? How are these time horizons set?
How does your strategic planning PROCESS address these time
horizons?
2.1 A Strategy Development Process
Our Strategic Planning process is based on the Annual Strategy
Calendar, and is spearheaded by BCM along with SBU Heads that
sets the direction for the organization (Fig. 2.1-1).
Fig. 2.1-1 Strategy Planning Process
Our Strategic themes viz. Profitability, Liquidity, Structure and Process
have been identified as an outcome of extensive deliberations by
Energy Leadership Team during the Strategy workshop for FY
14. GHB directions and Sector Strategic themes form the basis for
52
Strategy formulation and for preparing ST/LT plans and milestones.
GMR Energy considers 1 year as the short term planning cycle and 3
years as long term planning cycle as explained in Fig. 2.1-2.
Fig. 2.1-2 Planning Horizons
Planning
Horizon
Short Term
No. of
Years
1 Year
Reason this was chosen
How the SPP addresses the Time horizon
- Operations Focus & Milestones review of Projects
- Earning commitment to stakeholders
- known period for regulatory environment, also corresponds to
Budgeting timeline
Long Term
3 Years
- Typically Energy Project Cycle Time (Concept to commission)
varies around 3 years
- Regulatory environment predictable but not fully known
- Sector, SBUs and Functional : Annual Operating Plans
(Goals, Key Initiatives, Key Milestones, Targets, Measures
Assigned)
- Financials
- ST Capability & Capacity Plans
- LT Opportunity Scan, Project Bid Winning, Long Term
capacity & capability Plans,
- Financial Plan
(Cash Flows, Fund Raising – Debt, Equity etc.)
SPG provides key inputs on regulatory & policy framework, Environment scan, Scenario Analysis, Comparative Analysis for development of BSCs
at SBU level to ensure balance, alignment, and integration throughout the organization. Information is collected on an ongoing basis from various
sources like regulatory forums, media, websites, seminars, studies, meetings etc., both internal and external. The Strategy team analyses this
information to understand the market, competition, Customer and business environment and key impact of the same on GMR Energy in the short
and long term.
Fig. 2.1-3 Identification of Strategic Advantages, Challenges and Blind Spots
The overall business environment analysis is then used by respective
SBUs as an input for development of LT & ST Strategy for GMR Energy.
The current core competencies of GMR Energy have been identified
as 1) Stakeholder Relationship 2) Project Execution. Operational
Excellence has been identified as future core Competency. For a
Competency to be classified as Core Competency, the evaluation is
done based on the following: 1) Value creation for Customers 2) Better
than Competitor 3) Access to future revenue score 4) Best compared
to other strategic levers in the organization 5) To the extent it supports
Vision focus. Potential Blind spots i.e. Strategic issues- events or
trends which have an uncertainty of occurrence and their consequent
impact on the relevant organizational performance are identified
by interacting with consultants, industry experts, and participation
in industry forums to understand multiple perspectives and develop
mitigation and contingency plans accordingly (Fig. 2.1-3)
2.1 A2 Strategy Considerations
How do you ensure that strategic planning addresses the KEY
factors listed below? How do you collect and analyze relevant
data and information pertaining to these factors as part of your
strategic planning PROCESS?
53
• your organization’s strengths, weaknesses, opportunities,
and threats
• early indications of major shifts in technology, markets,
products, CUSTOMER preferences, competition, the
economy and the regulatory environment
• long-term organizational SUSTAINABILITY, including needed
CORE COMPETENCIES, and PROJECTIONS of your future
PERFORMANCE and your competitors’ or comparable
organizations’ future PERFORMANCE
• your ability to execute the strategic plan
The Strategic planning process in GMR Energy follows a structured
process of data collection and analysis. The various inputs, method
of collating the inputs, and the analysis carried out is explained in Fig.
2.1-4. The Strategic Planning process relies significantly on the data
collected from various sources on the key factors (Fig. 2.1-1) which is
analyzed and is an input to strategy formulation.
“Being in infrastructure industry, our mission is to create and deliver value to all of our key stake
holders on a long term / on sustainable basis. In this mission, we believe that “Business excellence”
is a proven frame work that will help us achieve our mission.”
RV Sheshan
President - Hydro & GKEL
Fig. 2.1-4 Data Collection and Analysis for SPP at the time of Environmental Scan
Ref.
54
Key Factors
Sources of Data /
Information
Data Collection and
Analysis
Forum
Usage of
Information
Responsibility
A
Group / Board
Direction
Long Term Vision document –
Sankalp 2020, Presentations Board, GHB, GCM Directions
made to GHB, GCM
Board Meetings,
Direction setting for
GHB Review, GCM current and new
Review, QBR
businesses
GMR Energy
Leadership
Team, SBU
Heads
B
Strength
Weakness
Opportunities
Threats
Stakeholders’ inputs, Internal
Performance, Market Inputs,
Competition performance,
Surveys outcomes, BE
Assessment Feedback
SBU Analysis, Trend of Plan
vs. achievements, Root
Cause Analysis, Competitor
Comparisons, Risk Analysis
Strategic Planning
SPP, SBU Reviews leading to Goal
Setting, BSC, AOP
SPG, Functional
Heads
C
Any early
indications of
major shifts in
technology
Industry Reports, Sector
Research data (Bloomberg,
Infra Line) Contractors/
Suppliers Inputs, Consultants
Reports, Govt. Notifications,
Seminars, Exhibitions
Engineering scans technology
for appropriateness, CPD
assesses contractors ability
to utilize new technology, HR
and O&M assesses Technical
Competency gaps and TNI
ORMs, Thermal
Newsletter
circulation to all
stakeholders
Decision on
adopting new
technology
SBU Heads,
Business
Development
D
Any early
indications of
major shifts in
market
CERC Reports, CEA
Publications, Infra-line data,
Consultants & Analysts
reports
Installed Power generation
capacity, PLF, Peak Deficit,
Non-Renewable vs. renewable
share, State wise power
Generation – Consumption
analysis, Infrastructure
development, Avg. Tariff, Short
Term Trading trends
SBU reviews,
Power Trading
Reviews, KM
Community Meets
Decision on
Location of Power
plant, PPA Terms &
Conditions, Logistics
needs
BD, SBU
Heads, Head
Power Trading,
Logistics
E
Any early
indications of
major shifts
in products,
offerings &
Customer
Preferences
Customer Interaction,
Customer Visits, Customer
Complaints, Inputs from
Relationship Managers
C Sat Analysis, Customer
Complaints aggregation &
Analysis, Inputs captured
through scheduled &
unscheduled interactions with
Customers
SBU Reviews,
Power Trading
Reviews
Decision on Review
and improve
SBU Heads, PPA
Customer offerings,
Management,
PPA Terms &
Power trading
Conditions, Policy
Advocacy
F
Any early
indications of
major shifts in
Competition
Sector Reports, Publications
and Subscribed reports
(Bloomberg, Infra-line),
Consultants Presentations
Competitor Analysis - Financial
SBU Reviews, SPG
Results, Operations, Growth
Strategies, Fuel Sourcing plans, Reviews, Power
Long Term / Short Term power Trading Reviews
tie up
Portfolio planning,
Tariff Strategy,
Bidding Strategy,
Cost Optimization
initiatives
SPG, SBU
Heads, Power
Trading
Ref.
Sources of Data /
Information
Key Factors
Data Collection and
Analysis
Forum
Usage of
Information
Responsibility
Functional
Heads,
Secretarial,
Legal, EHS,
Finance
Any early
indications of
major shifts
in Regulatory
Environment
Central & State Govt.
Notifications, Legal Inputs,
Consultants presentations
Changes in Regulatory
requirements, Updates in
policies, impact on GMR
Energy
EHS Reviews,
Secretarial & Legal
Compliance, Audits
Reviews, Finance
Reviews
H
Long Term
Organizational
Sustainability
Customer Feedback,
Community Interactions,
Risk Assessment, BE
Assessment outcomes,
Sustainability Reports of other
organizations, Employee
Engagement Surveys, CIPs
Assessment of Customer
Centricity – C Sat and Action
plans, EEEC Survey outcomes
and Action plans, Diversity
Assessment, Leadership
Pipeline, L&D Plans, EHS
Initiatives, Community
Projects, Innovation, Culture of
Continuous Improvement
GHB,GCM & BCM
Reviews, SBU
Head Reviews, HR
Councils, GMRVF
reviews, EHS
Reviews, ERM
Reviews, BE KM
Council
Risk Mitigation,
Community
Initiatives, GRI
Reports, Succession
SBU Heads
planning, Training
Need Identification,
EHS Framework
and Initiatives, CIPs
I
Needed Core
Competencies
Internal Competency Analysis, Comparison of Process and
Competition analysis
Services
SPG
Core Competencies
SPG, SBU
and Strategic
Heads
Planning
G
J
GHB/GCM/BCM/SBU Head
Ability to execute Reviews, Sector & SBU
BSC’s achievement, Process
plans
& Risk Audits
Assessment of
ATR’s, Corrective
Half Year & Yearly
and preventive
GHB Reviews, SBU
actions, Capability
Project Progress, O&M
Reviews, MAG
& Capacity building
Reviews, Achievement of action
Audits, Quarterly
needs, TNIs,
plans, Audit outcomes
GCM Review, BCM
Infrastructure and
Review
other resource
requirements
SBU Heads,
Support
Functions
Our Governance Board reviews strategic direction at the time of Annual Reviews. An illustration of the Board Directions and subsequent initiatives
and their impact has been shown in Fig. 2.1-5. The E&I for Strategy Development process is given in Fig. 2.1-6.
Fig. 2.1-5 Board Direction for Strategy Development
Year
Board’s Direction
Initiatives Taken
Impact
- Acquisition and Development of new
Thermal (Coal) Projects – EMCO, GKEL,
Growth Focus,
CTPP
Diversification,
- Transmission Projects
Till
Presence Across Energy
- Solar & Hydro Portfolio
FY12
Value Chain
- Acquisition of South Africa, and Indonesia
Focus on Fuel Security
Coal Mines, Interests in Domestic Coal
mines - Rampia
FY13
Focus on Consolidation,
- Divestment & Asset Monetization
“Asset Light Asset Right”
- Increased installed generation capacity
- Balanced assets portfolio
- Secured fuel supply through Overseas and domestic coal sources
- Divestment in Island power
- GREL Debt Restructuring
- Divestment of SA coal mines
- Energy Sector restructured to 8 SBUs & Functions (Thermal Coal,
FY14
Sector Key Strategic
Themes – “Liquidity,
Profitability, Structure &
Process”
- Energy Sector Restructuring
- Continued Divestment focus,
- Focus on Structure & Process
G&L, Coal Assets, Hydro, GKEL, Corporate Functions, S&D &
Finance) with P&L Accountability
- Review Architecture (McKinsey facilitated)
- Divestment options for G&L Assets
- Revisited and redeployed - RASCI & DoP
- Bhavyatha Implementation through Hydro Power Project
Management Manual
- Energy Sector EHS Framework
- Risk Assessment of Power Trading & BH
- Stage Gate audit (by PWC) of Bajoli Holi Hydro Project
- Enterprise IT Outsourcing
- Hay Group study: Job Evaluation & Job design
55
Asset Light Asset Right strategy has been adopted by the Group to focus on
1. Cash Flow, Profitability, Liquidity
2. Continuous Performance Improvement
3. Having a line of fund to capture attractive opportunities
4. Becoming more responsive to market – Faster response and more proactive action
5. Releasing management bandwidth for more productive assets
We continuously develop and expand our business and portfolio of assets by capitalizing on opportunities to increase
value to our shareholders. As part of our strategy, we selectively evaluate and consider opportunities for acquiring new
units other assets that are complementary to our power business. We focus on areas where we see value enhancement
opportunities. For example, we have acquired interests in coal mining assets in Indonesia in order to mitigate our fuel risk.
We may also seek to divest, in whole or in part, our assets opportunistically to increase value to our shareholders in the
future. For example, we divested our interest in the Eloff Mine and Kendal Mine in South Africa, both held by Homeland,
on account of the lack of infrastructure to evacuate coal from South Africa to India, as a result of which, a majority of the
coal produced from these mines was sold domestically in South Africa.
As part of our effort to diversify our asset base, we are pursuing a long-term growth objective of focusing on our hydro
and renewable power projects. In particular, we have completed financial closure of Bajoli Holi Power Project, a 180
MW run-of-the-river power facility being constructed in the state of Himachal Pradesh and issued the notice to proceed.
We are working on the financial closure of our Alaknanda Power Project, a 300 MW run-of-the-river power facility to be
constructed in the state of Uttarakhand, and we have entered into a joint development agreement with the International
Finance Corporation (the “IFC”) to develop the Upper Marsyangdi-2 Power Project, a 600 MW run-of-the-river power
facility to be constructed in Nepal.
Fig. 2.1-6 E&I in Strategic Planning Process
Year
Till
FY12
FY13
FY14
Trigger
Need to revisit GMR Energy Vision
Strengthen Strategy Deployment & Action
Planning
Need for incorporating key inputs from
Individual Depts
Action
Impact
Energy Sector Vision aligned to Group Aspirations –
Sankalp 2020
Deployment of Strategy through BSC (Till CEO &
CEO-1 level)
Sector Vision aligned with Group
Direction
Strategy Workshop conducted with all Dept. Heads
presenting Dept. inputs for SPP (BD Inputs, Assets
Inputs, HR Inputs, Fuel Resources Inputs)
Balance between Bottoms up, and Top
down approach in SPP
Review and Strengthen Strategy Deployment Strategy Deployment across SBUs through BSC’s,
in view of Organization restructuring to SBUs PDM’s & A3 Sheets
Formulation of detailed action plans
(PDM, A3) ensuring seamless cascade of
SBU Heads SOs to their N-1 and people
down the line
SBU alignment with Sector Objectives
2.1 B Strategic Objectives
2.1 B1 Key Strategic Objectives
What are your KEY STRATEGIC OBJECTIVES and your timetable for accomplishing them? What are your most important GOALS for
these STRATEGIC OBJECTIVES?
Our key Strategic objectives, Action Plans and timelines to accomplish the same, along with the Performance measures are shown in the table
below (Fig. 2.1-7)
56
Fig. 2.1-7 Strategic Objectives, Action Plans, Timelines and Performance Measures
Sr.
Strategic
Objectives
Strategic Action Plans
Performance measures
1
Achieving
Profitability/ Cost
Optimization across
Operating Plants
Achieving Production &
Profitability for Coal Assets
Free Cash Flow from Operations Rs. Crs.
EMCO: 1661
CTPP: 739
Transmission:55
Thermal (Coal),
GKEL, Gas & Liquid
Cash Flow improvement through
Operational Excellence at
Timelines
Thermal Coal Assets
Mar 15
Strategy &
Development
Delivered Coal Cost
Rs. /Kcal
EMCO:0.77
CTPP: 0.95
GKEL: 0.59
Thermal (Coal),
GKEL
Control Admin costs in Hydro
SBU
Rs. Crs.
As planned
Hydro
PTBSL Production, EBIDTA &
PAT
MMT & USD M 0.41,19.18 & (0.55) Coal Assets
GEMS MTSA & Profitability
Targets
USD M
18 & 22.1
Coal Assets
Coal Trading Margins
USD M
3
Coal Assets
Rs, Crs.
EMCO : One
month outstanding
revenue
Thermal (Coal), Gas
GKEL : 100 Crs
& Liquid
Gas & Liquid : 2
months of Revenue
Rs. Crs.
Manage Cash Flows through
Receivables Management
2
SBUs
Thermal (Coal),
GKEL, Gas &
Liquid, Strategy &
Development
Receivables
Improve Liquidity
through Financial/
BD – Initiatives,
and resolution of
litigations
Target : FY15
EMCO:555/(86)
CTPP: 103/(321)
Transmission:50/
(1.5)
GKEL : 636/(285)
GEL KKD : 2/(47)
VPGL: 13/(59)
GPCL: 50/24
Power Trading :
10.37 (9.31)
EBIDTA & PAT (Optg)
Improving Operational
Efficiencies and reducing O &
M Costs.
Unit
Resolution of litigations
pertaining to Sec 11, MAT Claim, Rs. Crs. &
Timelines
VPGL loss recovery & Interest
on TNEB dues
Sec 11 (67): Sep’14
MAT (20) : Jul’14
Loss Approval(447) Gas & Liquid,
Corporate Functions
: Mar’15
Int. on TNEB Dues
(163) : Sep’14
Tariff Revision for Transmission
Projects
Rs. Crs.
25
Thermal (Coal)
Rs. Per KWH
0.19 for MSEDCL
0.04 for DNH
Thermal (Coal)
Rs. Crs.
67
Thermal (Coal)
Rs. Crs. & Rs.
Per KWH
6387 & 0.15
GKEL
EMCO Tariff Revision for
Effective Management of Tariff MSEDCL & DNH
Revision Petitions/Improve
Deemed Generation
Deemed Generation from DNH
Generation
for FY 14 sales
Tariff determination & Revisions
for GRIDCO & Case 1 PPA
57
Sr.
Strategic
Objectives
Refinancing of EMCO Debt
2
Improve Liquidity
through Financial/
BD – Initiatives,
and resolution of
litigations
Overrun funding/ Loan
Restructuring / Asset
Relocation-Sale
Filing DRHP & concluding
GEL IPO
3
4
5
Completion of
Projects within
Budgeted Cost &
Time
On time completion of
Projects under development /
Construction
SBUs
July 14
Thermal (Coal), F&A
Rs. Crs, D:E
2726/55:45
Thermal (Coal),
GKEL, F&A
Timeline
Mar 15
GKEL
Rs. Crs/
Timeline
267 / Sept 14
GKEL
USD M
500
Coal Assets, F&A
Timelines
July 14
Gas & Liquid, F&A
Sale of Mangalore land
Rs. Crs /
Timelines
100 / Dec 14
Gas & Liquid
Sale / Relocation of Barge,
GPCL & GREL
Timelines
Barge (USD 150 M)
Gas & Liquid,
& GPCL: Dec 14
Corporate Functions
GREL: Mar 15
GEL IPO
Timelines/
RsCrs.
Q4 FY15/1500
CoD of 1st & 2nd Unit of CTPP
Timeline
CoD of Angul & Meramandali
Transmission lines
Timeline
Control PTBSL Capex
USD M
12.54
Coal Assets
Control Hydro Capex
Rs. Crs.
As planned
Hydro
Milestones as
planned
Hydro
Sept 14 & Dec 14
Hydro
Jun 14 & Aug 14
Hydro
CTPP Project Cost Overrun,
Funding Plan
Refinancing of Existing Term
Loan for GKEL
Deferment of SEPCO payment
for 2-3 yrs. for GKEL (1050 MW
Contract)
SCB Loan Restructuring for Coal
Assets
GREL Restructuring based on
80:20 funding of FY15 interest
Project Progress for Bajoli Holi &
Timelines
Alaknanda
EC & Forest clearance for
Timelines
Talong
Completion of PDA for both
Timelines
Nepal Projects
F&A
Unit 1 - 1st Sept 14
Unit 2 – 1st March Thermal (Coal)
15
1st July 14 & 1st
GKEL
Aug 14
Fuel Allocation for CTPP
Timeline
Sep-14
Thermal (Coal)
CERC/ERC approval for use of
imported Coal for GKEL
Timeline
Sep-14
GKEL
Timeline
Unit 1 - Sept 14
Unit 2 – Oct 14
Thermal Coal,
Corporate Functions
Timeline
Dec-14
Gas & Liquid
Building a Renewable portfolio GHB Approval for Business Plan Timeline
Sep-14
Corporate Functions
Finalize Ash Disposal for Coal
based Power Plants
Ash Disposal
%
100%
Thermal Coal, GKEL
Compliance to EHS Practices
No. of Fatalities/Serious
incidents/LTI
No.
ZERO / <0.18
Compliance to Internal Audit
Findings
No. of Non Compliances
No.
ZERO
No. of processes
No.
As planned
Hydro
Adherence to Stage Gate
process for Alaknanda
Timelines
Jun-14
Hydro
Timelines
Sep-14
Strategy &
Development
Pursue MOC/CIL to get MoU
Coal and Linkage Coal at the
earliest
Addressing Power
Evacuation/Tariff/
PPA related issues
Ensure PPA/Transmission
Corridor for Power supply from Secure PPA tie up for CTPP
CTPP
Approval of Spinning Reserve
GPCL & GREL as spinning
concept by GOI & positioning
reserve
GPCL & GREL as part of this.
Implementation of Bhavyatha
Framework in Hydro SBU
Prepare & Publish Energy
Sector Corporate Sustainability Sustainability Report
Report
58
Target : FY15
Timeline
Ensure Fuel
Security
Triple Bottom Line
focus/ Process
Improvement /
Project Execution
Excellence
Unit
Thermal Coal,
GKEL, Gas & Liquid,
Coal Assets, Hydro
Strategy &
Development,
Thermal Coal,
GKEL, Gas & Liquid,
Coal Assets, Hydro
Sr.
5
Strategic
Objectives
Triple Bottom Line
focus/ Process
Improvement /
Project Execution
Excellence
6
Unit
Target : FY15
SBUs
BE Assessment &
Implementation of FY15 Action BE Assessment
Plan
Timelines
Oct 14 / Marc 14
Strategy &
Development
Sustainable Farming based
Green Belt development at
EMCO,GKEL & CTPP
% Adherence
100%
Strategy &
Development
Implementation of ERM
ERM framework/SBU
framework /SBU Dashboard in
Dashboard
Coal SBU
Timeline
Sept-14 / Jun- 14
Strategy &
Development, Coal
Assets
Improve Operational Efficiency
through implementation of IT
IT Projects Fully implemented
enabled business processes
%
90%
Corporate Functions
>4.2
Thermal Coal,
GKEL, Gas & Liquid,
Coal Assets, Hydro,
Corporate Functions
100%
Thermal Coal,
GKEL, Gas &
Liquid, Coal Assets,
Hydro, Corporate
Functions, Strategy
& Development
100%
Thermal Coal,
GKEL, Gas &
Liquid, Coal Assets,
Hydro, Corporate
Functions, Strategy
& Development
Focused EE plan for
Critical Resources and High
Performers
Acquiring,
managing and
retaining the right
Talent
Adherence to Plan
EE score
Score
Ensure 1:1 Step In and Long
Identification of Successors for
Term Successors for all Critical
all Critical positions
positions
Implementation of Hay Group
Recommendations
Adherence to Plan
2.1 B2 Strategic Objectives
Considerations
How do your STRATEGIC OBJECTIVES achieve the following?
• address your STRATEGIC CHALLENGES and STRATEGIC
ADVANTAGES
• address your opportunities for INNOVATION in products,
operations, and your business model
• capitalize on your current CORE COMPETENCIES and
address the potential need for new CORE COMPETENCIES
• balance short-and longer-term challenges and opportunities
% Completion
%
• Consider and balance the needs of all KEY STAKEHOLDERS?
• enhance your ability to adapt to sudden shifts in your market
conditions
Strategic Challenges are addressed through Strategic objectives by
leveraging Strategic advantages and Core Competencies. Initiatives
with goals are identified for Strategic objectives which are deployed
through BSC/PDM/A3 sheets. These are finalized through extensive
deliberations in the strategy meet. The linkage of Strategic Objectives
to the Challenges, Advantages, core Competency and opportunities
for innovation is indicated in Fig. OP. 3 and Fig. 2.1-8. The time
horizon based focus over the three year period for the key strategic
objectives, helps in balancing short term and long term challenges and
opportunities.
“Running our business, pressing the 7 ‘levers’ of GMR Business Excellence Model (GBEM) allows
us, as business leaders, to run our business in a holistic manner, focusing on short term priorities
without losing sight of long term goals”
Aniruddha Ganguly
President - Strategy & Development
As part of SPP, Stakeholder needs are captured through various forums (Fig. 2.1-1). These needs are then addressed through relevant corporate
objectives and initiatives for ST/LT. Besides this, GRI-G4 approach, along with BSC used for deployment of Strategy revalidates that all
stakeholders’ interest has been balanced.
59
Fig. 2.1-8 Alignment of Strategic Themes and Opportunities for Innovation
Strategic
Themes
Trigger for
Innovation
Opportunities and Innovations introduced
Service Offering
Operations
Business Model
1. Reduction in REC Application cycle
Liquidity
Profitability
Structure &
Process
1. Reduction in Power Trading
Change in
Billing cycle time
External
/ Internal
Operating
Environment,
Sector Outlook, 1. Key Relationship Manager for
Board Direction,
Power Trading Clients
GHB Reviews
2.Setting up Regional office at
Hyderabad to effectively serve
South Bound Power Trading
customers
time
1. GREL Debt restructuring
2.Capex optimization of BH Hydro power 2.HEG Coal mines Divestment
project by revisiting Power house
3.Island power divestment
layout
Improvement projects at G&L Assets –
Optimizing Cost of Plant preservation
1. Develop and deploy Hydro Power
Project Management Manual
2.Benchmarking of O&M Contract
workforce at Thermal Coal asset –
EMCO
3.To improve Energy Sector LTIFR
2.2 Strategy Implementation
2.2 A Action Plan development and
deployment
2.2 A1 Action Plan development
What are your KEY short- and longer-term strategies and
ACTION PLANS? What are your KEY short-and longer-term
ACTION PLANS and their relationship to your STRATEGIC
OBJECTIVES? What are the KEY planned changes, if any, in
your products, your CUSTOMERS and markets, your suppliers
and PARTNERS, and how you will operate?
Fig. 2.2-1 Strategy Deployment Process
60
Operational Excellence Initiatives at
Thermal (Coal) Assets
1. Revamping the Delegation of Power
matrix for the Energy Sector
2.Stage gate reviews for Projects –
Bajoli Holi, PTBSL
The 3 Step Strategy Deployment Process is depicted in Fig. 2.2-1. GMR
Energy develops a rolling 3 year strategic plan which is reviewed each
year. Key changes in the Environment and strategic assumptions are
reviewed in the half yearly and annual reviews by GHB. SBU Specific
Action plans and Initiatives for achieving the Strategic Objectives
are developed based on SBU Strategies discussed during Strategy
Development Process (Fig. 2.1-1). Respective SBUs develops
their own Strategy Deployment plans following PDM approach and
detailed A3 sheets which comprises of Goals, Measures and Action
Plan owners. Goal sheets are formulated to align and integrate the
individuals’ goals vis a vis SBU Targets.
2.2 A2 Action Plan Implementation
2.2 A3 Resource Allocation
How do you DEPLOY ACTION PLANS throughout the
organization to your WORKFORCE and to KEY suppliers and
PARTNERS, as appropriate, to achieve your KEY STRATEGIC
OBJECTIVES? How do you ensure that the KEY outcomes of
your ACTION PLANS can be sustained?
How do you ensure that financial and other resources are
available to support the accomplishment of your strategies and
ACTION PLANS, while meeting current obligations? How do you
allocate these resources to support the accomplishment of the
plans? How do you assess and manage the financial and other
risks associated with the plans to ensure the financial viability
of your organization?
The ST One year plan i.e. Annual Operating plans are broken down
in to monthly targets / milestones (Fig. 2.2-1). These are implemented
by the entire workforce and outsourced partners through the Work
System. Departmental actions are further cascaded to employees
through Individual Goal sheets as described in 2.2 A1. These actions
are implemented through a) Departmental work processes on
an on-going basis b) Initiatives with specific start and end dates c)
deploying policies and frameworks e.g. IMS deployment for Thermal
(Coal) Assets and d) deployment to suppliers and partners (Refer to
outsourcing process described in 6.1-1). Progress on implementation
is tracked and monitored during monthly functional reviews, BCM
Reviews, GCM Reviews and during half yearly and annually conducted
GHB reviews. The outcomes from implementing the above actions
are sustained through 6 Thrust areas so as to reinforce Customer
and Business focus through high performance 1) Top Management
Action Focus (Fig. 1.1-11), 2) Skill & Competency Building through
L&D Mechanisms (Fig. 5.2-8), 3) Performance Reviews (Fig. 4.1-7)
followed by process improvement, 4) Cross Functional involvement for
accelerated learning (Ref. 5.2 A2) 5)Implementation of Improvement
Projects (7 STEP Methodology) (Fig. 7.1.92, Fig. 7.1.93, Fig. 7.1.94),
6) R&R for the workforce to reinforce improved actions (Fig. 5.2-4)
GMR Energy follows a “bottoms-up” approach for resource allocation
to accomplish the strategic objectives. The Strategic plan captures key
actions and responsible person for initiating necessary actions in order
to achieve the respective SBUs strategic objectives. Each Function
within SBU evaluates the resource requirement in terms of both:
Human Capital and Financial Plan which is reviewed during various
stages of AOP Discussions and approved by SBU Head, BCM &
GHB. The business steering committee also reviews the consolidated
resource requirements for the business and makes the adjustments
considering the business priorities and availability of resources. Once
the AOP is approved by the board, it is assured that the planned
resources are made available to the respective functions for execution
of the action plans. Status of the resource allocations are reviewed
periodically every month / quarter depending upon their criticality in
order to ensure that they are made available as per plan. Any changes
in the strategy and resource requirements lead to a review of the HR
and finance strategy as well. Fig. 2.2-2 explains the financial resource
planning and allocation process.
Fig. 2.2-2 Financial Resource Planning
61
The strategic plan covers the portfolio analysis to assess the value of the operating assets & on-going projects. Risks arising out of our Operations,
Projects and Other Corporate processes are assessed through Risk Management Methodology (Fig. 2.2-3) under ERM Framework.
Fig. 2.2-3 Risk Management Methodology
The Internal Audit and ERM Framework paves the way for sustained
financial viability and business performance on strategic objectives
and action plans.
2.2 A4 Workforce Plans
What are your KEY human resources or WORKFORCE plans
to accomplish your short- and longer-term STRATEGIC
OBJECTIVES and ACTION PLANS? How do the plans address
potential impacts on your WORKFORCE members and any
potential changes to WORKFORCE CAPABILITY and CAPACITY
needs?
HR Function undertakes its own (Fig. 2.1-1) environment scan which
addresses potential impacts both in terms of capacity and capability of
the workforce. This input to the SPP translates into Strategic Objectives
at Sector level under L&D perspective and accordingly HR Objectives
along with HR ST and LT Action plans are mapped. Fig. 2.2-4 shows
the Sector HR Strategic initiatives supported by LT & ST Plans.
2.2 A5 Performance Measures
What are your KEY PERFORMANCE MEASURES or INDICATORS
for tracking the achievement and EFFECTIVENESS of your
ACTION PLANS? How do you ensure that your overall
ACTION PLAN measurement system reinforces organizational
ALIGNMENT? How do you ensure that the measurement system
covers all KEY DEPLOYMENT areas and STAKEHOLDERS?
SBU Specific Strategic Objectives, Strategic Initiatives, Measures, and
targets assigned are included in SBU Head’s Balanced Score Card.
62
The BSC’s are then cascaded through detailed PDMs (For Officers
directly reporting to SBU Head including Key Functional Heads) and is
further supported by A3 sheets ensuring alignment across levels. The
Cascading methodology ensures that the Annual Operating Plans for
SBU is cascaded down to Functional AOPs and further to individual
Goal sheets. The monthly review of these through Review Forums
(Fig. 4.1-7) ensures organizational alignment. Measures are defined at
both the levels i.e. At Sector Level and at SBU level depending upon
nature of action plans. The effectiveness and efficiency of the strategic
planning process itself is measured through 1) Extent of achievement
of targets including AOPs 2) Compliance to SPP Cycle time and 3)
Feedback from stakeholders.
2.2 A6 Action Plan Modification
How do you establish and DEPLOY modified ACTION PLANS if
circumstances require a shift in plans and rapid execution of
new plans?
As has been seen over the past several years, the Energy Sector is not
subject to very rapid and dramatic shifts in market, external / internal
environment and policies. During Half yearly reviews the strategic plans,
progress status and strategic assumptions are reviewed to assess any
shifts and changes in the operating environment. Correspondingly
Strategic Objectives and action plans including measures are modified
accordingly. This methodology ensures that action plans are updated
in context of current business scenarios and enable us to respond to
any significant shift in the strategy.
2.2 B Performance Projection
For the KEY PERFORMANCE MEASURES or INDICATORS
identified in 2.2a(5), what are your PERFORMANCE
PROJECTIONS for both your short- and longer-term planning
time horizons? How does your projected PERFORMANCE
on these measures or indicators compare with the projected
PERFORMANCE of your competitors or comparable
organizations? How does it compare with KEY BENCHMARKS,
GOALS, and past PERFORMANCE, as appropriate? If there
are current or projected gaps in PERFORMANCE against your
competitors or comparable organizations, HOW will you address
them?
Our business Strategy consists of the following principal elements:
• Focus on the completion of Power Projects under construction
• Increasing the Operational efficiency and profitability of our Power
Projects.
• Benefit from India’s growth in the power generation sector and
demand for power
• Expand our power asset base by expanding our areas of operation
geographically and diversifying our fuel type.
• Maintain an optimal balance between long-term and short-term
off-take arrangements
• Pursue development and acquisition opportunities to expand as
well as to streamline our business and portfolio of assets.
In FY 15, the focus will be to address all Power evacuation related
bottlenecks, and maximize off-take to ensure seamless supply
of power to DISCOMs/OA Customers. Both the Units of our Coal
based Thermal Project - CTPP will achieve commercial operation.
We are also engaging Global Consultant to help us drive Operational
Excellence at our Thermal Assets, and improve our Cash flows.
Our Gas based Assets may continue to remain under preservation
because of the shortage in Gas Supply. At this point of time, it is
of utmost importance for us to overcome the above constraints in
the shortest possible time, which is also vital for most of our peer
companies in the Power Sector today. We are optimistic that by the
end of FY 15, we shall achieve the stage of steady state operations,
and it will then become imperative for us to Project our Operational
& Financial performance, and start comparing it with our peer
companies in the Industry.
Fig. 2.2-4 Abstract of HR Road map – FY15 to FY17
63
3. Customer Focus
subsidiary of GIL. For GMR Energy the plan is to tie up 85% of power
generated through Long/Medium term PPAs, while balance would be
sold in Short term power markets through GMRETL, subsidiary of GIL.
3.1 Voice of the Customer
Describe HOW your organization listens to your CUSTOMERS and
acquires satisfaction and dissatisfaction information.
3.1 A1 Listening to Current Customer
3.1 A Customer Listening
How do you listen to CUSTOMERS to obtain actionable
information? How do your listening methods vary for different
CUSTOMERS, CUSTOMER groups, or market SEGMENTS? How
do you use social media and web-based technologies to listen to
CUSTOMERS, as appropriate? How do your listening methods
vary across the CUSTOMER life cycle? How do you follow
up with CUSTOMERS on the quality of products, CUSTOMER
support, and transactions to receive immediate and actionable
feedback?
GMR Energy sells power generated from its Assets in Long term
markets to DISCOMS. Medium term and Short term markets constitute
20% of electricity sold in India, and Long term constitutes the balance.
Period of Long term contract varies from 7 years to 25 years, Medium
term contract varies from 1 year to 7 year, and Short term contract
varies from 1 hour to 1 year. The surplus power available from GMR
Energy assets after the Long Term PPA tie up commitment, and third
party assets is sold under medium/short term market through GMRETL,
The current customer life cycle is defined in three stages:
Customer Life Cycle
Stage 1
Stage 2
Stage 3
Short Term Market Segment
Business Development, Opportunity scanning and Customer acquisition
Post-Acquisition
Final Settlement
Long Term Market Segment
Business Development, Opportunity scanning and Customer acquisition
Post-Acquisition
Yearly Settlement
As a key element of Customer centricity, we have various touch points
to listen/interact and observe customers as detailed in Fig. 3.1-1 &
3.1-2 which enumerates action-ability on Service Offerings, Customer
Support and Transactions across Short term and Long term market
segments. The inputs gathered through various learning and listening
mechanisms differ in Qualitative Aspects (e.g. Market offerings in terms
of pricing, trading margin etc.) and Quantitative Aspects (Emerging
market trends, Volumes, Future potential etc.) to understand segment
specific needs. These inputs are further analyzed to improve our
offerings and support mechanisms. Teams for Sales, Operations and
Customer Support (PPA Management) are deployed to ensure regular
follow up and deliver consistent support across the Customer life cycle.
Fig. 3.1-1 Customer Life cycle support and relationship for positive customer experience – Short term & Medium Term
Life Cycle
Business
Development,
Opportunity
scanning and
Customer
acquisition
Customer Touch
points
Mechanisms
Listen
Interact
GMRETL Website,
States Website,
electronic media &
print media
√
Cold calls to Industrial
consumers
√
√
Hot calls to Industrial
consumers
√
√
Regular meetings
√
√
Observe
√
Public domain (other
websites/seminars/
conference)
64
Immediate and actionable information
√
√
Customer
offerings
Customer Support
Focused personal
interactions with
customers (with good
payment track record)
Provide offers
Giving market
with competitive
intelligence on day
rates and
to day basis to the
trading margin
customers to meet the
requirements
Flexibility on
commercial
Educate customers
aspects such
on Open access
as payment
regulations.
terms rebates,
scheduling/
Sharing GMR’s
rescheduling
transparent trading
terms
policies
Providing regular
updates on the outlook
of power market
Transactions
Impact
Obtaining letter of
intent (LOI)
Execution of the
agreements
Fig. 7.1.36,
Fig. 7.1.37,
Providing
Fig. 7.1.38,
and obtaining
Fig. 7.2.8,
EMD,CPGs and LCs
Fig. 7.2.9
Improvement
in contracts
management
Life Cycle
Customer Touch
points
Mechanisms
Listen
Interact
Key relationship
manager of PT
√
√
Trading Operations
team
√
√
Observe
Final
Settlement
Customer
offerings
Compliance to
the contract
RLDC/SLDC website
PostAcquisition
√
Trading F&A team
√
√
Customer
communication
through Phone,
email, fax
Scheduling/
rescheduling of
power
√
√
Early payment
rebate
Meetings with key
officials
√
√
√
Customer satisfaction
survey
√
√
√
Customer feedback
(through phone/
meetings)
√
√
√
Key relationship
manager
√
√
Trading F&A team
√
√
RLDC/SLDC website,
and reports
√
Customer Support
Transactions
Raising provisional
Information about power bills
scheduled, deviations &
Payment of
outages if any
scheduling charges
to RLDC/SLDC
Supplying power
through Alternate
arrangement, if required Receiving payments
for power sold
Impact
Fig. 7.1.39,
7.1.40,
Fig. 7.2.5,
Fig. 7.2.7
Raising final energy
Providing final
bills, surcharge bills,
Regional Energy
Reconciliation of energy penalty bills, if any
Accounting
supplied
(REA)
Fig. 7.1.42,
Settlement of final
Fig. 7.2.6,
Contract closure Resolution of customer amount.
Fig. 7.2.7
concerns/queries
certificate if
Receiving back CPG
required by the
and returning the
customer
BG/LCs
Fig. 3.1-2 Customer Life cycle support and relationship for positive customer experience – Long term
Life Cycle
Business
Development,
opportunity
scanning and
customer
acquisition
Customer Touch
points
Mechanisms
Listen
States Website,
electronic media &
print media
√
Cold calls to Utilities/
Discoms
√
Interact
Observe
MOU based
long term
contract
√
Public domain (other
websites/seminars/
conferences)
√
Bidding team
√
PPA Management
team
√
Plant/Trading
Operations team
√
Plant/Trading F&A
team
Competitive
tariff based
bidding (for
long term and
medium term)
Customer Support
Focused personal
interactions with
customers
Providing Company
information/data as
required
Sharing GMR’s
vision of long term
commitment to supply
power
Transactions
Impact
Obtaining letter of
intent (LOI)
Execution of the
agreements
Long term
contracts,
Providing
Fig. OP. 8
and obtaining
EMD,CPGs and LCs
Improvement in
bidding strategy
√
√
Compliance to
the contract
√
√
Customer
offerings
√
RLDC/SLDC website
PostAcquisition
√
Customer
communication
through Phone,
email, fax
√
√
Meetings with key
officials regularly
√
√
Scheduling/
rescheduling of
power
Early payment
rebate
Information about
power scheduled,
deviations & outages
if any
Supplying power
through Alternate
arrangement, if
required
Relationship
development at all
levels
Raising provisional
bills
Payment of
scheduling charges
Fig. 7.1.47,
Fig. 7.1.49
Receiving payments
for power sold
√
65
Life Cycle
Yearly
Settlement
Customer Touch
points
Mechanisms
Listen
Interact
Observe
Customer feedback
(through phone/
meeting)
√
√
√
PPA management
team
√
√
√
Plant/Trading F&A
team
√
√
√
RLDC/SLDC website
√
√
√
3.1 A2 Listening to Potential, Competitor
& Former Customer
How do you listen to former CUSTOMERS, potential
CUSTOMERS, and CUSTOMERS of competitors to obtain
actionable information and to obtain feedback on your current
and future products, CUSTOMER support, and transactions, as
appropriate?
A long Term market is highly tenured, and involves dealing with one
single customer only – (State Utilities/DISCOM) for consistently steady
and long period. Long Term Markets are not as volatile and emerging
as short term markets in terms of Pricing, Margin, Volumes, and
Opportunities. Hence the concept of Potential, Former, and Customers
Customer
offerings
Providing final
Regional Energy
Accounting
(REA) on
monthly basis
Customer Support
Reconciliation of
energy supplied
Resolution of customer
concerns/queries
Impact
Transactions
Raising final energy
bills, surcharge bills,
penalty bills, if any
Settlement of final
amount.
Fig. 7.2.1
Receiving back CPG
and returning the
BG/LCs.
of Competitors for GMR Energy is more pertinent to opportunities
that prevail in Short Term Power Market. Thus, as described in Fig.
3.1-3 various approaches to listen to potential and customers of
competitors to obtain actionable information to improve the current
and future service offerings are for these customers in Short Term
Market. Feedback gathered through the below mechanisms are
used to comprehend the aspects of pricing, service, geography that
differentiates GMR Energy from the Competition in this market. This
helps us understand and analyze critical parameters that need specific
improvement in future offerings, support mechanisms, and transaction
methods (e.g. offering competitive tariffs and trading margins). GMR
Energy continuously interacts with Govt. Bodies, State Electricity
bodies to acquire new franchisees.
Fig. 3.1-3 Customer Listening – Potential, Competitor and Former customers – Short term market segments
Type of
Customer
Tool /
Mechanism
Information exchange (Listen/Interact/Observe)
- Their current and future requirements
- Their current and future planning
- Their current suppliers and feedback on their
Potential /
Former
Customer of
Competitor
Phone, fax,
emails, meetings,
performance
seminars,
- Current Supplier’s terms and conditions for supply.
Associations
- Update on our new offerings/partners/generators and
meetings
its advantages
- Exchange views/presentations on evolving regulatory
provisions and future potential in power market
Phone, fax,
- Current Supplier’s terms and conditions for supply.
emails, meetings, - Update on our new offerings/partners/generators and
seminars,
its advantages
Associations
- Exchange views/presentations on evolving regulatory
meetings
provisions and future potential in power market
3.1 B Determination of customer
satisfaction and engagement
3.1 B1 Satisfaction and Engagement
How do you determine CUSTOMER satisfaction and
ENGAGEMENT? How do these determination methods differ
among CUSTOMER groups and market SEGMENTS, as
appropriate? How do your measurements capture actionable
information for use in exceeding your CUSTOMERS’ expectations
and securing your CUSTOMERS’ ENGAGEMENT?
Customer Satisfaction and Engagement is determined for Short term
and Long term Customers on Service offerings and Customer support.
Feedback is obtained for complete life cycle and is carried out on
an annual basis. The methodology is shown in Fig. 3.1-4, it involves
identification of key drivers and attributes impacting satisfaction and
engagement.
66
Usage for Improvement in Offering, Customer
Support and Transactions
- Provide more competitive offers
- Provide locational advantage
- Improvement in customer interaction frequency and
multilevel interactions
- Operationalization of regional offices for power trading
to tap potential market and thereby enhance customer
base
- Launched Franchisee model to increase customer’s
base
- Improve our offerings. E.g. . One of the USP for
enhancing the cliental base in WR was supply from
EMCO assuring higher availability being in the same
region
- Offer competitive tariffs and trading margins
- Increase in customer interactions
Fig. 3.1-4 Customer Satisfaction and Engagement
Measurement
These surveys are designed and administered in-house. Based
on the feedback received from the BE External Assessment, as an
improvement this year, an independent internal committee was
constituted to ensure element of objectivity in the survey. Also, separate
survey questionnaires were developed for OA customers (Exchange
and Bilateral) to ensure specific focus on needs and requirements
of these segments. Information collected through these surveys is
aggregated across customer segments, and analyzed for identifying
specific improvement areas.
Similar approach is used to determine Customer satisfaction and
engagement for Long term customers for our G&L assets (GPCL &
GVPGL), however the same could not be carried out for FY14 as these
assets were negligibly running, and were under preservation. For
Thermal assets (EMCO & GKEL) similar approach would be deployed
in the current year as they have just started to achieve operational
stability. C Sat Survey outcomes, BE Assessment OFI’s and internal
review of Customer Satisfaction & Engagement measurement
processes are used to trigger improvements as indicated in Fig. 3.1-5
Fig. 3.1-5 E&I on Customer Satisfaction and Engagement Measurement
Year
Trigger
Improvement Done
Impact
BE Assessment
OFI
Survey questionnaire reviewed by Independent Internal
Committee to ensure element of objectivity
To bring in more objectivity in the survey process
Internal Review
Separate Survey Questionnaires for OA Customers –
(Exchange and Bilateral)
Segmented Feedback
FY 14
3.1 B2 Satisfaction relative to
Competitors
The Key Relationship Managers analyzes the complaints not resolved
within stipulated timelines, and suggests modification in the processes
so as to meet and exceed the customer expectation accordingly.
How do you obtain information on your CUSTOMERS’ satisfaction
relative to their satisfaction with your competitors? How do you
obtain information on your CUSTOMERS’ satisfaction relative to
the satisfaction levels of CUSTOMERS of other organizations
providing similar products or to industry BENCHMARKS, as
appropriate?
3.2 Customer Engagement
There is no industry level data available on customer satisfaction to
understand the specific trends and do benchmarking in results, however
an effort has been made to capture feedback on relative satisfaction
of our customers with competitors through C Sat feedback form
(against the same set of performance standards across customer life
cycle). Also customer feedback captured through informal approaches
like Meetings, Interactions, and Visits etc. is used to improve on
various customer support processes like Bidding, Operations, Billing
and Payment, considering services offered by competitors to OA
customers. For e.g. Power Trading Regional office was established in
Hyderabad to strengthen relationship with State Utilities based on the
feedback shared by few OA Clients from southern region (TN and AP).
This has helped in expediting issuance of NOC by State Utilities for
corridor booking. Similarly we also learnt from one of our OA client that
GMR documentation process for early billing is relatively more efficient
than the other Trading companies.
How do you identify CUSTOMER and market requirements
for product offerings and services? How do you identify and
innovate product offerings to meet the requirements and
exceed the expectations of your CUSTOMER groups and market
SEGMENTS (identified in your Organisational Profile)? How do
you identify and innovate product offerings to enter new markets,
to attract new CUSTOMERS, and to provide opportunities
for expanding relationships with existing CUSTOMERS, as
Appropriate? What are your new product offerings and changes
to CUSTOMER support added in recent years?
3.1 B3 Dissatisfaction
How do you determine CUSTOMER dissatisfaction? How do
your measurements capture actionable information for use in
meeting your CUSTOMERS’ requirements and exceeding their
expectations in the future?
Feedback from various touch points, customer meets, visits, repeat
complaints, complaints escalation, and loss of key customers indicates
the dissatisfaction levels of customers. These points are being
reviewed by Dept. Head during regular review meetings; detailed root
cause analysis is carried out to identify critical improvement areas
impacting the key service offerings and customer support. Based on
the same, action plans for implementation are identified and assigned.
3.2 A Product offerings and Customer
Support
3.2 A1 Product Offerings
GMR Energy (Power Trading) identifies customers and market
requirements based on key requirements of customers, which
are quantity of purchase/sale of power, period of purchase/sale of
power, historic data of customer regarding purchase/sale of power,
competitive price for sale/purchase of power and scanning the market
conditions (Fig. 3.2-1). We identify the requirements of customers
and offer them reliable power at competitive price based on period of
supply, market rates, and flexible contractual terms. We also provide
market intelligence to customers about the rate, and availability/
requirement of power so as to facilitate them in taking quick decisions
regarding purchase/sale of power. To enter into new market, we
study the historic sale/purchase of power by that customer, financial
capability of the customer, and explore opportunity for sale/purchase of
power to customer in future at competitive pricing. We have dedicated
Service Relationship Manager assigned to all our customers/clients
selling/buying power through us across customer life cycle. We also
have dedicated teams for marketing/sales, contractual compliances,
commercial settlement, and collecting feedback from customers to
support them across entire life cycle.
67
Fig. 3.2-1 Service Offerings
Service Offering
Customer
type
State Utility
Customer Requirement
-
-
-
-
-
-
Availability of supply as per contract.
Competitive tariff
Rebates for extended period
Security/guarantees against contracts
Sale/banking of their surplus power at competitive
rates
- Error free billing and payment convenience
- Dedicated contact point (easily accessible)
OA
customers
- Portfolio management - (Power Sale / purchase,
Renewable certificates - Sale / purchase)
- 100% availability to avoid penalties
- Competitive tariff
- Payment terms
- Compensation terms
- Additional availability during hours.
- Assistance for Approvals for scheduling
- Updates on Market outlook
- Updates on Regulatory framework
Private
Discoms
- Max. Availability,
- Competitive tariff
- Sale/banking of their surplus power at competitive
terms
- Error free billing and payment convenience
- Flexibility of rescheduling on mutual basis
Generators
RE
Generators
Traders
-
-
-
-
-
Firm contracts
Payment security
Availability
-
-
-
-
-
-
Maximum clearance of REC
Maximum Realization
Regulatory updates
Lowest tariff
Competitive trading margin.
Supply for peak hours/few hours/few days
To meet requirements
To enter new markets
/ new customers
- Cost effective generation
- Provide alternate supply sources in case of
outages/planned maintenance.
- Identify load pattern
- Facilitating banking of power at competitive
of various States to
terms
match the surplus/
- Provide power through banking arrangement
deficit requirement for
- Provide insight into market through regular
banking/sale
meetings
- Dedicated key relationship Manager with
alternate back up resource
- Additional Peak load generation
- Provide alternate supply sources in case of
planned/unplanned outage
- Facilitating banking of their surplus power at
competitive terms
- Provide them power through banking
arrangement
- Provide insight into market through regular
meetings
- Ensure 100%
availability through
tie up with multiple
generators/discoms.
- Identify States with
opening up of OA
- Identify load pattern
of various States to
match the surplus/
deficit requirement for
banking/sale
Performance
Measures
- Availability of units
- Compliance to
shutdown schedules
- Compliance to daily
schedules/generation
- Compliance to
agreement terms and
conditions
- Customer Satisfaction
survey index
- Compliance to terms
and conditions of
agreement
survey index
and conditions of
agreement
survey index
- Provide LC/BG as applicable
- New upcoming IPPs/
CPPs
- Success rates in
tenders
- Volume of power sold
and conditions of
agreement
survey index
- Strategically Bid on both power exchanges
to achieve maximum volume clearance and
realization
- New RE generators
- No. of REC sold
- Additional Peak load generation at short
notice
- Tap their portfolio for
supply as alternate
source
- Volume of power sold
Fig. 3.2-2 Process to identify and innovate service offering through experience and expectation of customer
68
3.2 A2 Customer Support
How do you enable CUSTOMERS to seek information and
CUSTOMER support? How do you enable them to conduct
their business with you and provide feedback on your current
and future products and your CUSTOMER support? What are
your KEY means of CUSTOMER support, including your KEY
communication mechanisms? How do they vary for different
CUSTOMERS, CUSTOMER groups, or market SEGMENTS?
How do you determine your CUSTOMERS’ KEY support
requirements? How do you ensure that CUSTOMER support
requirements are DEPLOYED to all people and PROCESSES
involved in CUSTOMER SUPPORT?
We offer Customer Support across customer life cycle
including support for seeking information, conducting business,
and collecting feedback as shown in Fig. 3.2-3. Support
and communication requirements are determined through
segregation of Voice of Customer (Fig. 3.1-1, 3.1-2). We identify
the requirements of customers and offer them reliable power at
competitive price based on period of supply, market rates, and
flexible contractual terms. We also provide market intelligence
to customers about rate and availability / requirement of power
to enable them conduct business with us. These requirements,
along with feedback from customers, survey findings and BE
Assessment findings are used to improve customer support
processes.
Fig. 3.2-3 Customer Support across life cycle
Criteria
Business Development, opportunity scanning and
customer acquisition
Each power trading person has been assigned responsibility of
dealing with identified States Utilities /Discoms/generators/OA
consumer.
Post-Acquisition
Contact details of Person is provided as part
of agreement for various requirements such as
scheduling/rescheduling of power, billing related
queries and for any other purpose required for
smooth execution of the contract
Final/Yearly
Settlement
Mobile Phone, fax, e-mails details are provided for
seamless access
GMRETL website
is maintained with
contact details of
key personnel’s
and updates on
GMRETL’s portfolio of
services
Executing
various tie
Identify suitable Seller/ buyer and initiate tie up on back to back
ups to enable
basis
customer
to conduct
business with us
Apply for scheduling of power to RLDC along with
necessary NOCs
Provide final bills
matching with REA
Enabling and
capturing
feedbacks for
our current and
future offerings
Feedback on tariff, trading margin, supply quantum and source,
supply duration of GMR vis-à-vis competition
Multi-level meetings with customer’s
representatives are held to seek their feedback
on our services and any improvements required, if c-sat form
any. Future requirements are also discussed during
these meetings
Avenues for
determining
customer’s
support
requirements
Meeting with Load dispatch and procurement cells
Multi-level meetings with customer’s
representatives of procurement cell, billing and
accounts
Avenues
that enables
Primary and secondary responsibility are also defined. These people
customers to
deal with the officials at various levels and develop understanding
seek information
with them with regards to V&B and functioning of GMR
and support
Providing offers and information on regular basis on sale/purchase
opportunity
3.2 A3 Customer Segmentation
How do you use CUSTOMER, market, and product offering
information to identify current and anticipate future CUSTOMER
groups and market SEGMENTS? How do you consider
CUSTOMERS of competitors and other potential CUSTOMERS
and markets in this segmentation? How do you determine which
CUSTOMERS, CUSTOMER groups, and market SEGMENTS to
pursue for current and future products?
GMR Energy identifies current and future market segments (Fig.
3.2-4) based on emerging business needs. During the annual
Strategic planning process, business needs are analyzed and
information is used to identify present, potential and future
market segments, also listening data collected from various
mechanisms (Fig. 3.1-1, 3.1-2) are segregated, collated and
analyzed to study customer insights. The information collated
Comply with daily schedules and informing them
about any curtailments/rescheduling requirements. Provide completion
certificates if required
Raising error free billing on weekly basis
c-sat form
includes nation-wide demand/supply gap, retail tariff of open
access industrial consumers in various states, energy volume
and exchange rate trends. Various generation opportunities
are evaluated on pan-India basis through opportunity scan.
The power sale strategy is determined based on the financial
stability of state utilities, demand, location of our plants,
power surplus/deficit scenario, political scenario, transmission
feasibility, competitor analysis, power purchasing capability for
both long term and medium term. Customer segments have
evolved accordingly, as an outcome of Market intelligence
research reports. In FY13, REC Generators segment was
added to tap opportunities of trading in REC Certificates
through Power Exchange (IEX, Power Exchange of India
Limited) of which we are the registered Trader, and authorized
to trade on behalf of Generators and Consumers. Similarly in
FY14, ‘Other Traders’ was added as one of the segments to
support our growth plans based on the future outlook.
69
Fig. 3.2-4 Customer & Market Segmentations
3.2 A4 Customer Data use
How do you use CUSTOMER, market, and product offering
information to improve marketing, build a more CUSTOMERfocused culture, and identify opportunities for INNOVATION?
Customer & service offering information are passed on to
complete customer response chain for use by customer facing
employees (Key Relationship managers), Teams (O&M, Power
Trading F&A, Power Trading BD, PPA Management) during
daily and periodic review meetings. To conduct the business
effectively service offered to customers are communicated
through various mechanisms listed in Fig. 3.2-3. The
consolidated inputs collated for service offerings and support
requirements are utilized effectively to improve and enhance
for e.g. Improvement in Customer interaction frequency, Multilevel interactions (including Key Management members of
customers)
“The will to win, the desire to succeed, the urge to reach your full potential. These are the
keys that will unlock the door to Excellence”
G B Nayak
Head O&M and PPA Management – G&L SBU
Fig. 3.2-5 Building Customer
Centric Culture
70
Regular KM Sessions (Short term power market), Customer
focused training, Refresher course for customer facing
employees and closure of BE Assessment finding on customer
focus have brought more emphasis to the customer centric
culture (Fig. 3.2-5)
3.2 B Building Customer Relationships
3.2 B1 Relationship Management
How do you market, build and manage relationships with
CUSTOMERS to achieve following?
• Acquire CUSTOMERS and build market share
• Retain CUSTOMERS, meet their requirements and exceed
their expectations in each stage of the CUSTOMER life cycle
• Increase their ENGAGEMENT with you?
The Customer Engagement and relationship building starts
with 1) Business Development and Customer Acquisition
2) Post Acquisition 3) Final/Yearly settlement. Specific
activities during these stages (as indicated in Fig. 3.2-6) aim
to create a supportive and positive response while striving to
meet and exceed customer expectations, which helps us to
sustain loyalty, enhance repeat business, and seek positive
referrals. For e.g. deployment of Key relationship manager,
setting up of regional trading offices ensures that Voice of
Customers is used to respond to Customers views and drive
initiatives and improvements across functions in order to
meet their requirements. Our overall BD strategy in Trading,
is conceptualized, and aligned with specific customer needs
for e.g. Facilitating Banking of Power at Competitive terms for
Long Term Customers, Flexibility on commercial aspects –
Rebates, payment schedule etc. for Short term- Open Access
customers, to acquire new customers in the Acquisition stage.
At operational levels, Customer focused measures get built
into Goal sheets/KRAs of all key employees in Customer
value chain – (Trading, PPA Management, and Assets Team).
Feedback from Customers, obtained through surveys, field
visits, customer meets etc. is analyzed for identifying areas
for improving the extent of Customer Engagement level.
Following improvements have been made lately to strengthen
relationship building with all our Customer groups – 1) Creation
of PPA Management Team to ensure strong interface with Long
Term Customers – State Utilities, 2) Setting up of Regional
offices to support Short term OA Customers, and 3) Assigning
dedicated point of contact across Customer life cycle, to listen
to them, and support their requirements
Fig. 3.2-6 Customer Relationships
Lifecycle
Process
Awareness,
Initiate
interaction
Business
Development,
Opportunity
scanning and
Customer
acquisition
Discussion of
Contract terms
Mechanisms
GMRETL Website, States
Website, Electronic media
& Print media, Calls to
customers (Hot, Cold),
Regular meetings, Public
domain (Other websites/
seminars/conferences)
Visit, Meetings, E Mails/Fax
Meeting & Exceeding
requirements
Provide offers with competitive rates and
trading margin
Power Trading
Educate customers on Open access
BD Team, PPA
regulations
Management Team
Providing regular updates on the outlook
of power market
Flexibility on commercial aspects (payment
terms rebates)
Scheduling/rescheduling terms
(Acquire and Build
Market Share)
Award of
Contract
E Mails/Fax/Courier
By Whom
Acknowledgement of award of contract,
Resolution of customer query
Results
No. of workshops/
Customer
interactions, No.
of opportunities
converted into leads
Power Trading
BD Team, PPA
Management Team,
Operations Team,
Power Trading &
Thermal Assets F&A
Team
No. of visits, No. of
meetings, Bids won
Power Trading
BD team, PPA
Management Team,
Power Trading and
Thermal Assets F&A
Teams
Contracts Awarded vis
a vis Bids won
Compliance to the contract.
Post-Acquisition
(Retain)
Final Settlement
(Increase
Engagement)
Sale/Buy of
power
Final
Settlement,
Customer
Satisfaction
Survey,
Customer
Feedback
Key Relationship Process,
Customer visit, Phone
Interactions, Email/Fax
Compliance to
Key Relationship
schedule of supply, No.
Manager
of
PT,
Trading
Early payment rebate Information about power
of unplanned outages/
Operations team,
scheduled, deviations & outages, if any
deviations impacting
Trading F&A Team
Supplying power through Alternate
supply
arrangement, if required
Scheduling/rescheduling of power.
Providing final Regional Energy Accounting
(REA)
Final Settlement process
Reconciliation of energy supplied
Contract closure certificate if required by the
customer
Resolution of customer concerns/queries
Power Trading teams
(Key Relationship
Manager, F&A,
Operations), PPA
Management Team,
Thermal F&A Team
No. of concerns
raised by Customers,
71
3.2 B2 Complaint Management
How do you manage customer complaints? How does your
CUSTOMER complaint management PROCESS ensure that
complaints are resolved promptly and EFFECTIVELY? How does
your CUSTOMER complaint management PROCESS enable you
to recover your CUSTOMERS confidence, and enhance their
satisfaction and ENGAGEMENT?
Our Complaint management system helps us to manage,
resolve and communicate complaints across Customer groups
for all the Customer life cycle stages as indicated in fig. 3.27. We have a dedicated person to manage, aggregate and
analyze complaints from various sources for speedy resolution.
Long term PPA – State Utilities:
A Complaint register is maintained for logging Complaints
received through Fax, E mails from State Utilities. These are
aggregated by the Site Planning Team, and assigned to the
concerned department for necessary action. Nodal points are
defined for receiving Complaints of different natures viz. LDC,
Daily Exchange operation and Actual Energy Billing.
The nominated person also keeps the Plant Head informed
on the closure of Complaints, ageing and progress from time
to time. All the complaints are analyzed for corrective action
as appropriate in the areas of load dispatch, maintenance
schedules, protection coordination for relays, tripping. The
Fig. 3.2-7 Complaint Management Process
72
Plant Head closely monitors the progress on closure, supports
implementation of corrective action and ensures timely
feedback to the State utilities on status of Complaints [Refer
Fig. 3.2-7].
Short Term – Open Access Customers:
For, Power Trading, customers send their complaints to the
nominated person assigned to them across Customer life, or
service relationship managers directly through e mail/fax. All
complaints received are registered in “Complaint Register” and
assigned to the concerned department for necessary action.
Customers are also encouraged to register their complaints
on website www.gmrenergytrading.in.This acts as a fast track
window for immediate closure. All the complaints are analyzed
for corrective action as appropriate in the areas of contracts,
Scheduling, billing & payment for Power Trading. In case of
complaints from key customers, Sr. leaders meet customers
to enhance their confidence and ensure seamless support on
their requirements. [Refer Fig. 3.2-7].
Along with customer complaints register, GMR (Power Trading)
also maintains an error register for registering all the errors
highlighted by the Customers while conducting business.
Errors are analyzed and process revisions are made based
on the learning’s and improvements made in the areas of
Operations & Maintenance to improve the service offerings.
4. MeasuREMENT, ANALYSIS and Knowledge management
4.1 Measurement, Analysis, and
Improvement of Organizational
Performance
4.1 A Performance Measurement
4.1 A1 Performance Measures
How do you select, collect, align, and integrate data and
information for tracking daily operations overall organizational
PERFORMANCE including progress relative to STRATEGIC
OBJECTIVES and ACTION PLANS? What are your KEY
organizational PERFORMANCE MEASURES, including KEY
short-term and longer-term financial MEASURES? How
frequently do you track these MEASURES? How do you use
these data and information to support organizational decision
making and INNOVATION?
Our Performance Measurement system is described in Fig 4.11. Strategic objectives and their key Performance measures
are identified through Strategic Planning Process. Detailed
Action Plans along with targets, owners, and KPIs are prepared
and deployed through A3 sheets to achieve these objectives.
Daily operations are carried out and managed through Work
system & Work processes (Fig.6.1-2 & 6.2-2) and efficiency
and effectiveness measures (Fig. 6.2-2). Data related to all
KPIs are selected for measurement through Data Selection
Process (Fig.4.1-2), to assess the overall and daily operations
performance including safety and climate change. Process
related data is captured through Plant DCS, SAP, OSI-PI,
BPC, then aggregated and integrated into relevant KPIs which
are reported through MIS to various stakeholders. These
information and reports are analyzed and reviewed to assess
the organizations daily and overall performance (Fig.4.1-7 and
8) and to take suitable preventive and corrective actions to
improve the same.
Fig. 4.1-1 Performance Measurement System
Gaps between planned and actual levels of Performance are
the triggers for decision making, improvements, breakthrough
ideas and innovations (Fig. 4.1-3). The integrated data is used
for decision making at the operational, business and corporate
level. Data from the External sources and non- automated
systems is captured manually, from established independent
and external agencies. For example, data on Employee
Engagement is collected by External agency like Gall Up, and
coordinated by HR group, Information about Industry outlook,
Market and Competition by Bloomberg, Data on Org Structure
and Design by McKinsey, Job Analysis and Design by Hay
Group, Design Engineering & Project Planning by Geo Data
(Owners Engineers for BH Hydro Project) /Technical Advisory
Committee. This ensures reliability, integrity and accuracy of
data and information.
73
Fig. 4.1-2 Selection & Collection of Data
At the functional & business level, SAP system integrates power
sales, and cost related data, which is regularly monitored,
analyzed and reviewed against AOP targets, comparisons and
benchmarks.
The Planning and Technical services Team at Operating Assets,
Power Trading Team, generates daily reports, which reflects
previous day’s, Month-to-date, Year-to-date Performance
against AOP. These data and information are aggregated in
the form of monthly MIS for the respective functions.
Fig. 4.1-3 Organization Performance Measurement
Purpose
74
Tracking
done by
Selection
Collection
Alignment
Strategic
Environment Scan, Sector
GHB, GCM
Vision, Mission,
SWOT, Benchmark
Cascading of
& BCM
Strategic
Data, Consultants Inputs,
Sector BSCs across
Reviews, SBU Objectives, Sector Independent 3rd Party Reports
SBUs
Reviews
& SBU BSC’s
(Including Quality, Safety,
Environment), Surveys, BSC
Organizational
Performance
SBU Heads,
Group
Corporate
Functions
(Legal, MAG,
E&I, IT, HR
etc.)
Key work process
Measures, Action
Plan Indicators
of Long Term
& Short Term
Strategic Plans,
SBU BSC
Measures
SAP Reports & MIS Derived
from SAP/BPC/OSI PI/DCS.
MAG Audits, Survey Outcomes
(Employee Engagement,
Customer Satisfaction, IT/FMS
Satisfaction) Outcomes, EHS
Reports, ORMs
SBU BSC’s
(Derived from
Sector BSC),
Cascaded to
Functions through
PDM & A3 sheets,
IMS Process
Measures
Integration
Decision Making / Innovation
(Examples)
GHB Reviews,
GCM & BCM
Reviews, SBU
Reviews
Energy Sector restructuring to SBUs,
Divestment (Island Power, HEG Coal
Mines), ALAR Strategy, Revamping of
RASCI & DOP, Stakeholder Focus, Policy
Advocacy, Project Execution Excellence :
“Bhavyatha”, Strategy Deployment through
PDM/A3, Hay Group study
SBU Head
Reviews, Project
Reviews, HR
Council, BE
Council, EHS
Reviews, IT
Reviews, ORMs
Roll out of EHS Framework & Hydro
Power Project Management Manual, IMS
Deployment at GKEL & EMCO, Internal
SLA’s, CIPs
Purpose
Daily
Tracking
done by
Plant Heads,
O&M Heads,
Project Head,
Functional
Heads
Selection
Collection
Alignment
Plant Daily Generation Report,
AOP Targets,
Power Sales Report, Customer
PDM Measures,
A3 Sheet, Goal
Complaint Management, SAP
Key Work Process
Sheets
Reports, Asset Monitoring
Measures
Dash Boards
4.1 A2 Comparative Data
How do you select and ensure the EFFECTIVE use of KEY
comparative data and information to support operational and
strategic decision making and INNOVATION?
Selection of Comparative data is based on 1) Similarity of
Business and Process 2) Configuration & Technology 3)
Stakeholder needs 4) Industry and Market Analysts reports
5) External Consultants 6) Strategy sessions. The sources of
collection of comparative industry data/information as part of
the strategic planning process includes – Bloomberg, Infraline,
Analysts reports. This data/ information are utilized to formulate
Integration
Daily Morning
Meetings, Plant
O&M Reviews,
EHS Reviews
Decision Making / Innovation
(Examples)
Asset Monitoring Dash Board, AOP
Tracking through BPC, Project Planning
and monitoring through Primavera, “S”
Curves, Cost Curves
Sector & SBU strategy. Our key operational Performance
parameters are compared with best in class industry data (Fig.
4.1-4) provided by the Regulatory bodies both, for our Thermal,
and Gas based Assets. McKinsey has been engaged to help
us carve out GMR way of Project Execution Excellence under
Project Bhavyatha, and to support us on major organizational
redesign exercise. We are currently working with Hay’
Group on Job Evaluation & Design to enable consistent and
comprehensive role documentation of unique roles in the
organization. Based on the Energy Audit conducted by CII
recently, specific areas of improvement have been identified to
optimize the Energy consumption.
Fig. 4.1-4 Selection and Usage of Comparative Data
NIST, the spearhead of EHS course provider in India, has been
engaged to drive behavioral based safety programs (based
on NEBOSH standards of Safety Excellence) at our Thermal
Assets. For our Gas based Assets under Preservation, a
community of practice, aimed at sharing of learning’s/best
practices internally on Equipment Testing, Cost management
etc. has been initiated to leverage optimally. Fig. 4.1-5 reflects
usage of comparative data across Key Functions for supporting
Decision making and Innovation.
75
Fig. 4.1-5 Comparative data usage for supporting Decision Making & Innovation
Usage to support decision
making
Comparison
Function
Competitive /
Comparative Data
Source of Comparative Data and
Information
Strategic
Operation &
Maintenance
(Thermal Coal
& Gas and
Liquid)
PLF, Plant Availability,
Heat Rate, Aux. Power
Consumption, Specific Fuel
Consumption, Specific
Oil Consumption, MTFB,
Unplanned Outages
Launch of
Improvement
Power Infra line, Bloomberg, Lateral Recruits,
Projects at
Benchmarking, OEM, Consultants, Energy
Operating Assets,
Audits (CII, TERI), CERC, Sigma Insights
Theme based Idea
Factory at Assets
Implementation
of “Best In Class”
Asset Management
philosophy
Improvement in Plant Heat
Rate (Fig. 7.1.5), Reduction
in APC (Fig. 7.1.6), Increased
Plant Availability (Fig. 7.1.4),
Reduction in Plant Preservation
Costs (Fig. 7.1.51)
Project
Management
Project Management
Processes, Design
Engineering and Project
Planning, Project Cost,
Project Timelines
Previous Projects, Inputs from Consultants
: McKinsey, Owners’ Engineers Reports,
Central Electricity Authority, Central Board
of Irrigation & Power, Indian National Hydro
Power Association (INHA), International
Water Power Magazine, Central Water
Commission, Private Project Developers
Project completion
within Costs,
Timelines and with
assured quality
GMR way of
Project Execution
Excellence
Bhavyatha Implementation at
EMCO, GKEL, CTPP & Hydro:
Bajoli Holi
HR
Employee Engagement,
Job Evaluation, Job Design,
Employees’ wage
External Consultants - Gallup, Hay Group,
Aon Hewitt
Employee Related
policies & Benefits,
Compensation
Review
Succession
planning, Man
power Planning,
Competency
Development
Consistent and comprehensive
documentation of Unique roles
in the organization
Strengthening of
EHS Practices,
Surpassing
standards :
Behavioral Based
Safety
NEBOSH Training to
Employees, Improvement in
LTIFR (Fig. 7.3.26)
Debt Restructuring
Debt Restructuring of GREL
Project
Improved availability of IT
Systems, Reduction in IT
Costs, Improvement in C Sat
EHS
LTIFR, BBS Assessment
NIST, Sustainability Reports of other
organizations
BBS Training to
employees, Industry
practice / standards
Implementation
Finance
EBIDTA, PBT, PAT, Cost of
Borrowing, Debt-Equity
Investor Meets, Annual Reports of other
organizations
Performance
Improvement on
Costs, Revenues,
Financial Closure
IT
IT Spend (As % of Turnover),
IT Spend per Employee,
Industry Standards
Systems Availability, Time
taken for Recovery
IT Systems
availability, IT
IT Support to SBU
Operation Costs,
Decision making
Timely Closure of IT
Helpdesk calls
Power Trading
Volume of Power Traded,
Tariff, Trading Margin
Power Infra Line, Short Term power Market
study
Cycle time reduction in billing,
Increased Revenue, Achievement of
Power Trading Revenue (Fig.
Improvement in
Power Trading AOP
7.1.31), Trading Margin (Fig.
Trading Margin
Targets
7.5.14)
Logistics
Ocean Freight , Freight
Trends
Clarkson’s Market Report, Coal Spot, RS
Platou Reports
Negotiating Ocean
Freight for our Spot
Shipments
4.1 A3 Customer Data
How do you select and ensure the EFFECTIVE use of VOICE-OFTHE-CUSTOMER data and information (including complaints)
to support operational and strategic decision making and
INNOVATION?
As mentioned in 3.2 A4, Customer data (Fig. 3.1-1, 3.1-2 & 3.13) for Daily, Operational and Strategic impacts (Fig. 4.1-3) are
mapped in SAP – SD and integrated with various reviews for
driving improvements. The Customer requirements, findings,
market study/research, satisfaction/ dissatisfaction feedbacks
from different relationship mechanism (Fig 3.2-5) including
Websites (GMRETL/State), Print media including Comparative
industry data on pricing, volume and other service offerings is
evaluated for making improvements thereby providing a scope
for creation of improved offerings for all Customer groups for
76
Operational
Major Improvements /
Innovations and Result
Ref.
Long term contract
of Affreightment
(COA) / Time
Charter Rates (TC)
Reduction in Ocean Freight
as compared to Spot Market
freight
supporting operational and strategic decision making. Analysis
and Learning from Customer satisfaction and dissatisfaction
surveys and feedbacks are shared across all employees in
the Customer value chain for operational decision making and
improvements.
4.1 A4 Measurement Agility
How do you ensure that your PERFORMANCE measurement
system is able to respond to rapid or unexpected organizational
or external changes?
To keep the Performance measurement system current with
business needs and direction, the relevance of the key measures
are reviewed. As conditions change internally/externally, a new
measure is added, or existing measure is dropped or targets
of existing measures be revised. PMS (Fig. 5.2-3) is guided
by SPP (Fig. 2.1-1). Risk Assessment and management
methodology (Fig. 2.2-3) helps to elicit risk perceptions on
unexpected changes that might arise due to internal/external
changes that have bearing on business and customers’ related
performance. Strategic and operational functional reviews at
Sector/SBU level, mid-term strategy reviews by GHB also
encompass expected/unexpected internal or external changes
in regulatory requirements (SERC/CERC guidelines), Policy
matters in Power sector, Funding requirements, etc. These
approaches lead to potential improvements, learning and
innovation which are incorporated in our services, processes
and business models through Performance Improvement
system (Fig OP.17) Further, in order to improve the reach,
range, and effectiveness of the Performance Measurement
system, IT infrastructure, systems and processes are regularly
reviewed. Implementation of SAP, BPC, Legal Portal, and
Intranet help to keep our Performance Measurement system
current and sensitive to unexpected changes.
4.1 B Performance analysis and review
How do you review organizational PERFORMANCE and
capabilities? How do you use your KEY organizational
PERFORMANCE MEASURES in these reviews? What ANALYSIS
do you perform to support these reviews and to ensure that
conclusions are valid? How do you use these reviews to assess
organizational success, competitive PERFORMANCE, financial
health, and progress relative to STRATEGIC OBJECTIVES
and ACTION PLAN? How do you use these reviews to assess
your organization’s ability to respond rapidly to changing
organizational needs and challenges in your operating
environment?
The organizational Performance Measures and Capability
Analysis (Fig.4.1-6) are reviewed at various levels. These
reviews ensure focus on Strategic objectives and Action
Plan accomplishment (Fig. 4.1-7).The conclusions made in
the various reviews are validated in SBU/BCM/GHB reviews.
Based on the Governance system (Fig. 1.2-1), the Board
(GHB) and Committees of the Board, reviews the performance
of the organization and progress against targets on half yearly
basis, including safety.
Fig. 4.1-6 Performance Review and Capability Analysis
An Action taken Report/ Progress Report forms the basis of ensuring that agreed actions are being taken and closed systematically.
Management Assurance Group, nominated by the Board, is an independent body which carries out fiscal Audits, reviews DoP
compliance for the sector, and identifies improvement opportunities to bridge gap between the Actual and desired Performance.
E&I based on review outcomes are illustrated in Fig. 4.1-8
77
Fig. 4.1-7 Review Forums to assess Organization Performance
Purpose
Work System
Forum
Board
Governance Meeting,
System
GHB & GCM
Reviews
Strategic
Leadership
System
Leadership
System
Sector BSC
Measures
Operation
System
Customer
System
Power
Trading
Reviews,
PPA
Reviews,
ORMs
Support
System
Risk
Reviews,
S&D
Reviews,
BE&KM
Reviews,
BE Council,
GMRVF
Reviews,
EHS
Reviews
Validations
done with
Competitive: Competitive
positioning, Competitors
Financial & Operational
Performance
Industry: Industry
Performance and growth,
Govt. policies, Industry
Outlook, Technology shifts
Strategic: Sector SWOT,
Scenario Analysis,
Portfolio reviews, Cash
flow analysis, Risk
Reviews, Risk Mitigation
Prioritization
GMR Group
Performance,
Industry
average,
Competitor
performance,
Consultants
Reports,
Govt. Reports
(CERC,
SERC’s),
Publication,
Bloomberg,
Power Infraline
Divestment Scenario
(ALAR analysis), Analysis
of Performance on
Strategic Themes –
Liquidity, Profitability,
Structure & Process,
Org. Design, Job
Evaluation, Analysis on
Stakeholders needs,
Customer Centricity,
Operational Excellence,
Employee Engagement,
AOP Variance Analysis,
Statutory, Legal, Ethics &
Regulatory Analysis
GCM
Reviews
/ BCM
Reviews /
SBU Head
Reviews
SBU
Reviews,
ORMs,
Function
Reviews
Org. Perf.
78
Strategy
Workshop,
GHB/
GCM/BCM
Reviews
Analysis Done
Perf. Measures
Sector BSC
/ SBU BSC
Measures,
AOP Targets
Sector BSC,
SBU BSC’s,
Functional
AOP’s,
Consultants
Study – (Hay
Group,
McKinsey
Study),
IMS Audits,
Research
Institutes /
C Sat Analysis, Customer
Govt. Bodies
Acquisition Analysis,
Reports (CII,
Customer Complaints
TERI, CERC
analysis & Aggregation,
Guidelines)
Tariff Analysis, Short Term
power market analysis,
Peak Power Shortage
analysis
Cause & Effect Analysis,
Pareto, 80:20, 5 Why
analysis, OEM Diagnostic
Studies, Energy Audits
and Analysis, Process
Reviews & Audits,
Training Effectiveness,
Employees Reward &
Recognition
Risk Analysis (Sector/
SBU/Plant-Project
level), Safety Analysis,
Emergency Preparedness
Reviews, Sustainability
Initiatives reviews,
Community need
Analysis, Carbon
Footprint, Water foot print,
Waste Management
Reviews to Assess
Org. Success
Meeting Vision
& Mission,
Institution
Building,
Long term
sustainability
Org.
Sustainability,
Org.
Restructuring,
Job evaluation
& Job
Design, CSR
Beneficiaries,
Diversity
(Portfolio,
Employees,
Culture, Fuel,
Geographical
Location,
Presence
across value
Chain),
Employees
Perception on
Leadership,
Engaged
Employees, Job
Enrichment
Competitive
Performance
Financial Health
Progress on
SO’s
Profitability,
Competitive
Position Installed
Capacity,
Growth
Projections
(New projects /
Acquisition)
Revenue,
Operation
Expenses,
EBIDTA, PBT,
PAT, Gross
Margin, Cash
Flows, Debt
Equity, Credit
Rating, Cost of
Borrowing
Plan Vs.
Actual –
Sector BSC
Measures
Project
Execution
Excellence,
Operational
Excellence,
Customer
Satisfaction,
Employee
Engagement,
Men to MW
Ratio, Cost of
Generation,
MTBF, LTIFR,
Emission
Project
completion
within
budgeted
cost and time,
Operational
Expenses,
Plant O&M
Parameters
(Heat Rate/
APC/Sp. Fuel
Consumption),
Unplanned
outage, PLF,
Cost Reduction
through
Improvement
Projects,
Trading
margin,
Receivables,
Billing cycle
time
Plan Vs.
Actual –
SBU BSC’s
Measures
Purpose
Work System
Operation
System
Daily
Customer
System
Support
System
Forum
Perf. Measures
O&M Variance Analysis
- Plan Vs. Actual (Daily
+ Month-to-date +
Year-to-date) e.g. Heat
Rate, APC, Sp. Fuel
Consumption, Sp. Oil
Consumption, Lead time
to start, Inventory, BD,
Root Cause Analysis,
Near Miss Analysis,
S Curves, Project
Cost Curves, Contract
Manpower availability
Plant Head
Reviews,
Project Head
Reviews
Power
Trading
Operation
Reviews
Analysis Done
Adherence to Dispatch
Schedule and Load
Asset, Project,
Variation Requests,
Function AOP
Power Traded, Customer
/ A3
complaints
Cash Flows and Fund
transfers, Recruitment
cycle time, Critical
positions filled based on
competency mapping,
Freight Forecasting,
Fuel Availability at
plants, Coal Evacuation
and Transportation, IT
Systems Availability
& Adherence to
Maintenance Schedules,
IT Helpdesk Calls (To
resolve)
Logistics
Review, HR
Reviews
(Operations),
Finance
Reviews
(Treasury),
Safety
Reviews
Validations
done with
Reviews to Assess
Org. Success
On time Project
Completion,
Adherence
to Dispatch
Schedule (PPA
AOP, Internal
Customers,
Benchmarks,
Power Trading
SLA’s, KPI’s,
Customers,
IMS Standards, Closure of
KWP’s
open points
Measures,
within timelines,
Compliance
Complaint
to Statutory
Closure,
requirements
Daily Fund
Availability,
Effective
Training,
Safe Work
Environment
Competitive
Performance
Financial Health
Progress on
SO’s
Project
Completion
timelines,
Wage Parity
with Industry,
LTIFR, Plant
Utilization,
Plant
Availability
Accounts
payables,
Accounts
Receivables,
Variance
between Actual
performance
and AOP
Targets
Performance
of Functional
AOP’s, A3
Measures
and Goal
sheets, SLA
Parameters
Fig. 4.1-8 E&I through Organizational Performance and Review
Year
Review
Forum
2012
PSBSC
Reviews, BCM
Review of
Projects
2013
GHB, GCM
Review
GHB, GCM
Review
2014
BCM Review
Trigger
Improvement
Benefit
Improvement Culture at Assets & Projects
CIPs initiated at Projects & Assets involving
large cross section of employees
Capex Optimization projects at CTPP (Fig. 7.1.92),
Time Optimization projects at EMCO & GKEL
(Fig. 7.1.94), Improvement in Plant Operational
parameters at GPCL, GVPGL, GEL KKD (Fig.
7.1.93)
GMR Way of Project Execution
Engaged McKinsey to develop GMR way of
Project Execution Excellence
To enable on time completion of GKEL, EMCO &
CTPP Projects
Focus on Asset Quality and Liquidity
Implementation of Asset Light Asset Right
Strategy
Divestment of HEG Coal Mines (South Africa),
Island Power - Singapore
Energy Sector was restructured in 8 SBUs /
Review of Organization Design, Need for
Functions having full-fledged support team in
Agile organization with quick decision making
each SBUs, New functions evolved e.g. PPA
and Empowerment
Management Team
Quick Decision making (Revised RASCI & DoP),
Empowerment, Focus on Customer Centric
initiatives
Employee Job Evaluation and Job Design
A comprehensive Job analysis carried out by
External Consultant - Hay Group
Consistent and comprehensive documentation of
Unique roles in the organization
Systematic process to ensure Strategy
Deployment
PDM & A3 Sheet driven Strategy Deployment Aligned and Integrated cascading of Sector BSC
across SBUs
to SBU BSC’s
Policy Advocacy, Move Closer to Business,
Enhance Relationship and Engagement with
Govt. Agencies
Office Set up at Delhi, SBUs like Thermal
Quick Decision making, Improved Engagement
Coal, Corporate Functions relocated to Delhi,
with Govt. Agencies
Corporate Affairs strengthened
Replicate learnings from Bull’s Eye(GKEL) at
Hydro Projects
Developed a comprehensive Hydro Power
Project Management Manual
Focus on EHS Processes
EHS policies reviewed and revamped Energy
Improved EHS Processes at Assets & Projects,
Sector EHS Framework Rolled out, Behavior
Improvement in LTIFR (Fig. 7.3.26)
based Safety program (NEBOSH Standards)
To enable on time completion of Bajoli Holi Hydro
power project within the budgeted cost.
79
Year
Review
Forum
Trigger
Improvement
Benefit
SBU Head
Review
Make Thermal Coal Assets – Best In Class
Capability Center Initiatives & Roadmap,
SAP Implementation, ORMs, Spare
Management and Vendor Development,
Process Focus, BE Practitioners program,
Engaging Global Consultant to drive
BE Review
Align BE Initiatives with Business Priorities
and Challenges
Annual BE Roadmaps for SBUs, Site Specific SBU wise focus on BE, Improvement in Idea
Idea Factory Themes launched, BE Council
Generation and Employees involvement (Fig.
launched
7.1.95)
2014
4.1 C Performance Improvement
4.1 C1 Best-Practice Sharing
How do you use PERFORMANCE review findings to share
lessons learned and best practices across organizational units
and WORK PROCESSES?
The best practices arising out of Performance Reviews are
discussed and shared with concerned Process owners. Concept
of ‘Learning Capture format’ and ‘Technical Advisory’ has been
launched in FY 14 by Capability Center in conjunction with
BE Team, to methodically capture the Learning’s emanating
from Operational Review Meetings for Thermal Assets.
Specific Incidents, be it maintenance, or Operations related,
endangering the desired Plant Performance are assigned to
the respective Process owner for carrying out detailed root
cause analysis, working out Corrective and Preventive Action,
and capturing key Learning’s. These learning are uploaded on
the KM portal and available to larger community for sharing and
reuse, as appropriate. ‘Technical Advisory’ aids implementation
of best practices across Thermal Assets. Similarly, based on
the Gas & Liquid Performance Review findings, a community
of Practice on Gas & Liquid has been initiated to share best
practices being followed at Gas based Assets on Equipment
testing, preservation and cost containment. Besides this, based
on the directive from GHB, Initiatives like Project Paani and
Bijlee have assumed emphatic significance at Group level on
IMS Certification at EMCO & GKEL, Monthly
ORM’s, SAP PM & MM Module Go live
sharing of best practices on Water and Energy conservation.
Accordingly, EMCO has identified 11 Projects on Energy, and
2 on Water conservation which are being implemented with
complete rigor and focus.
4.1 C2 Future Performance
How do you use PERFORMANCE review findings and
KEY comparative and competitive data to project future
PERFORMANCE?
Schedule Performance Reviews (Fig. 4.1-7) are done to
review functional and organization performance on Corporate/
Functional BSC measures and initiatives which primarily
focuses on the present, future and assess the requirements/
gaps for the future performance.
4.1 C3 Continuous Improvement and
Innovation
How do you use organizational PERFORMANCE review
findings to develop priorities for continuous improvement and
opportunities for INNOVATION? How are these priorities and
opportunities DEPLOYED to work group and functional-level
operations throughout your organization? When appropriate,
HOW are the priorities and opportunities DEPLOYED to your
suppliers, PARTNERS, and COLLABORATORS to ensure
organizational ALIGNMENT?
“Our business in life is not to get ahead of others, but to get ahead of ourselves – to break
our own records, to outstrip our yesterday by our today”
G Subbarao
CEO Corporate Affairs
Improvement/Innovation is an important focus area for the
organization which is also reflected and reinforced through
our Strategic themes: 1) Profitability 2) Liquidity 3) Structure
& Process. Sector BSC, SBU Heads – BSC & PDMs are
accordingly aligned and cascaded down to Functional BSC/
Individual Goal sheets/KRAs. Based on the findings of various
Performance reviews (Fig 4.1-7 & 4.1-8) and other inputs,
through its improvement process (Fig. 6.2-3), opportunities
and innovations are created through following approaches: 1)
Deployment of Annual BE Roadmaps for all SBUs 2) Provide
Tools (7 STEP Methodology), Techniques (SLAs, SIPOC),
and Team Approaches (CIP Teams) for effective deployment
80
of improvement Plans 3) Identify improvements in various
processes – (Project Bhavyatha - Hydro/Bulls Eye – GKEL/
EHS/IMS/Stage Gate Audits) 4) Roll out of Improvement
Projects based on specific challenges/opportunities (17 CIPs
across various SBUs were identified and rolled out in FY 14)
5) Sector wide Implementation of Idea Factory to focus on
small improvements 6) Archive Improvement/Innovations
learning into KM Portal ( Learning Capture, Technical Advisory,
Learnings from past Projects – EMCO/InterGen/Island Power/
Financial closure) 7) Engagement with Global Consultants (Our
Partners) like McKinsey, Hay to drive large scale organizational
transformation programs. 8) Providing inputs to suppliers,
partners to ensure their involvement and support aligned with
our business priorities.
4.2 Management of Information,
Knowledge, and Information
Technology
4.2 A Data, Information, and Knowledge
Management
4.2 A1 Properties
How do you manage your organizational data and information
and knowledge to ensure the following properties?
• Accuracy
• Integrity and reliability
• Timeliness
• Security and confidentiality
Tata Consultancy Services is our Business IT Partner in
managing end to end IT Services / Solutions. Fig. 4.2-1
explains the processes to ensure properties of data, information
and knowledge. Multiple checks on data, information and
knowledge by concerned process / sub-process owners are
carried out before the same is captured and shared. Access to
all SAP applications is secured through SAP access control and
single sign on. For non-SAP Applications access is ensured
through user PERNR, Application log in IDs maintained in
Active Directory and passwords. Original Business Critical
Documents, Employee Records, Other critical Information (In
both forms – Hard copies & Soft form), Engineering Information
etc. are maintained and preserved in Electronic and Physical
vaults as appropriate. Selected critical documents are scanned
and uploaded along with other available soft copies on SAP
DMS Server and EDMS (Fig. 4.2-2).
Fig. 4.2-1 Properties of Data, Information & Knowledge
Properties
Data
Information
Knowledge
Creation and Approval through multiple levels
(As per DoP), Periodic Audits by MAG, MIS
Validation by Domain Experts / Functional Heads,
Based on SAP / DCS / System generated
Multiple reviews across the level
reports
Accuracy
Real time data captured through DCS/SAP/BPC,
Maker / Checker concept adopted for all critical
transactions
Integrity
SAP Master Data Control, Access controls managed Process Standardization and Transaction
and monitored through GRC module of SAP
level authorization matrix.
Reliability
Scheduled data back up on SAP modules/BPC/KM Portal/gNet. Built in Redundancy of IT Software (Mailing Solution, SharePoint application, Business
Critical Application), Hardware & Network Infrastructure, Business Briefcase (Back up for Individual Business Critical Information)
Timeliness
Seamless availability of SAP Modules and other business critical applications across GMR Locations KM Portal Accessible across from within and
supported by state of art LAN / WAN / VPN. Multiple mode of communication for providing timely
outside of GMR Network (Over Intranet & Internet
exchange of information – MS Office Communicator (Lync), VoIP, Video Conferencing
through VPN)
Security
Antivirus, Firewall, Endpoint Security, Physical
Security, Data Back-up (Differential & Full),
Authorization, Password Control
Finger print based Access Control, Fire proof
cabinets, Data Loss Prevention system,
Digital Rights Management System
Confidentiality
Data transfer restriction on User PCs to avoid
data leakage & virus entry in GMR Network (USB,
Bluetooth, SD Cards), Encryption over WAN Links,
End Point Encryption system, Intrusion Prevention &
Detection System
Non-Disclosure Agreements, Multiple level
Authentication based access controls at Data Non-Disclosure Agreements, Data Loss
center, Server Farms, and Network, ISMS
Prevention System
compliant to ISO 27001 and BS 25999
Authorization of Knowledge Document on KM
Portal, Process Flow mapped in SAP (Release
Strategy)
Data Loss Prevention system, Digital Rights
Management System, Access Control
Fig. 4.2-2 Document Management System
Storage
Document Types
Impact
SAP DMS Server
Certificates/Clearances/Permissions/Licenses/Approvals, Company Information, Executed
Documents, Deeds, Letters, Court Orders, POAs, LOAs, Receipts, Revenue Records, Lease
Documents, Sale Documents, Title Certificates, Public Notice, Test Reports, Performance
Guarantee Test Reports, Minutes of Meetings, Employee Records, Antecedents, Agreements,
Addendums
Engineering Document
Management Systems (EDMS)
Concept Drawings, General Lay outs, Designs, Detailed Engineering Drawings, Revisions
4.2 A2 Data, Information and Availability
How do you make needed data and information available to your
WORKFORCE, suppliers, PARTNERS, COLLABORATORS, and
CUSTOMERS, as appropriate?
Fig. 4.2-3 explains the 5 Pillar Enterprise IT Service Model
which is aligned to Group IT Philosophy and seamlessly
supports Sector & SBU IT Objectives. In all areas of business,
there is a growing demand to demonstrate that all enterprise
Back up of Original Documents,
Reduction in Paper Usage, Easy
accessibility across GMR Project Sites,
Assets, Corporate Office, and Remote
Offices, Secured Data, Confidentiality
investments and resources can be tied directly to business
value. The IT delivery approach is made to recognize that
business value will always be measured in improved business
performance, as perceived by the business stakeholders,
there by moving towards “Demonstrable Metrics Framework”
that is specific for each business units within GMR Energy.
The Metrics Framework groups’ business value into three main
classes as depicted in Fig. 4.2-4
81
Fig. 4.2-3 “5 Pillar” Enterprise IT Service Model
Fig. 4.2-4 IT Metrics Framework
Sr No.
IT Support
Expectations
Measures
1
Run the Business
This concept is about running IT Services efficiently to support Business Needs
Reduced Cost of IT Operation,
Increased Performance
2
Support Business
Growth
Visibly and measurably improving business operations resulting in higher degree of alignment
to the business needs
IT Support to Expansion projects, New
Acquisitions, Sustained Operational
Improvements
3
Transform Business
This phenomenon is about new business horizons – in new business lines, business models
and revenue streams
IT led Business Process Innovations
The required data and information is made available to various stakeholders as depicted in Fig. 4.2-5 and integrated using IT
Applications like SAP, gNet (GMR Group Intranet), Shared Network Drives and connected through LAN (Local Area Network),
WAN (Wide Area Network) and over Internet as mentioned in Fig. 4.2-5A.
Fig. 4.2-5 Stakeholders Information sharing mechanisms
Stakeholder
Data and Information Type
Employees
Customers
Daily, Weekly, Monthly Power Sale / Buy Reports, Generation Reports, Availability, LoI’s, Order
GMRETL Website, E Mail Reports, Fax
Confirmation
Contractors
Vendor Registration, RFP’s, RFQ’s, PO/SO, Invoice / bill Processing Updates, Vendor
Payment
E Mails, Vendor Management System
Investors / Govt. Agencies /
Lenders / Other Stakeholders
Annual Report, Project Progress, Specific Information sought, Performance Projections
GMR Website, Presentations, E Mails,
Fax
Fig. 4.2-5A Integrated Data and Information System
82
Forums / Mechanisms
gNet, HR4U Portal, GCM Newsletter,
Individual Working hours, Leave Information, Benefits, Training, Learning & Development
BCM Communication, Town Halls, Skip
Modules, Compensation, Operational Information, Financials, Vision-Mission-Values & Beliefs,
Level Meetings, e-Circulars, Virtual MDC
COBCE, Group & Sector News, Policies, External Knowledge
(eLearning Modules), Internet
GMR Energy is foremost Integrated Energy Organization
to implement all key SAP modules and other Customized IT
Applications (Fig. 4.2-6) in record time across Project Sites,
Assets, Corporate Office and Remote offices. This has resulted
in ensuring seamless access to Enterprise ERP for enhanced
availability, accuracy, reliability, security, and confidentiality of
Data and Information. Information on COBCE, Whistle blower
policy and other statutory requirements are communicated to
suppliers, vendors, partners in form of RFP, Agreements and
PO’s/SO’s.
Fig. 4.2-6 IT Solutions and ERP Modules
IT Solution / ERP
Module
SAP FI/CO/TR
SAP MM Module
SAP SD Module
SAP PS Module
SAP PM Module
SAP HCM Module
SAP DMS Module
SAP GRC
SAP BPC
EDMS
Compliance Portal
Legal Portal
Key Deliverables
These modules cater to all the requirements of Finance Departments to handle Key F&A Processes : Budget Management/
Accounts Payable/Accounts Receivable/Asset Accounting/Treasury activities etc
Caters to all activities of procurement including enquiries, quotes, ordering and Store management activities : Receipts, Issues,
Stock Analysis, Reporting, Inventory Control
This module handles all sales related activities of Energy Direct Sales, Trading, Scrap Sales, Consultancy Services Billing etc.
Project Management Package of SAP catering from Concept to Commission, total integration with other SAP Modules –
FI,CO,MM,SD, Reports on Project Progress, Cost Monitoring (Project / Package / WBS Level – Plan vs. Actual)
This module covers all the aspects of Plant Maintenance including the PM Schedule, Notifications, Maintenance Activities
(Planned Maintenance, Preventive Maintenance, Breakdown Maintenance), Maintenance History, Trends, Maintenance Costs,
Permit to work - Safety Work Permit
This module handles the HR Function of Organization Management, Employee Records, PMP Process, Payrolls, Recruitment,
Time Management etc
Caters to the electronic storage for key business critical documents, e.g. Bids, Contracts, Negotiation details, MoM, Contracts,
Copies of PO’s. Has inbuilt features of access controls and version maintenance
This Governance Risk Compliance module controls the access given to each user based on the roles performed by the individual
within organization elements strictly following Sector & SBU DoP and RASCI
This Business Planning and Consolidation application provides platform for Enterprise wide Budget Plan, Review, Forecasting,
Approval, Monitoring and Archival. This has inbuilt features e.g. Revisiting and Adjusting expense plans, forecasting, Expediting
book closures, enable sound decision making based on Data, trends, MIS
This Engineering Document Management System is a Network wide archival platform for all technical & engineering related
information e.g. Approved Drawings, GA Layouts, PI Diagrams etc. Inbuilt features like access control, version maintenance
This portal provides enterprise wide platform for all Operating Assets, Projects, Corporate Offices and other entities to Define,
Adhere, Monitor including escalation of Compliance Adherence / Gaps
Details pertaining Legal Aspects across GMR Energy, Monitoring, Escalation, Resolution
Share Point Document A solution that enables project teams (Smaller groups) to keep track of various documents, also enables sorting, filtering, access
Management System control, versioning and easy retrieval of documents
Provides online track of correspondences like post, email, and phone. The incoming and outgoing correspondences section in
Correspondence
the solution enables the admin to keep a track of the status of incoming as well as outgoing correspondences based on a unique
Management
correspondence ID
Developed internally to handle the EPC contract and C&C Activities of inspection, Management, Certificate generation, Accounting
GMR EPC Contract
of Material Receipts at various stages, Title transfers etc. The project Head can get all required progress report of the materials
Management System handled and the payment progress. This is a web based solution, provides a collaborative platform for cross functional teams
engaged in Project EPC Activities
GMR website also provides information about the company,
COBCE, Vision, Mission, and Values & Beliefs. Stakeholder
information sharing is illustrated in Fig. 4.2-5. The Data and
information requirements are evaluated in various reviews
(Fig. 4.1-7).
4.2 A3 Knowledge Management
Fig. 4.2-7 illustrates 5 Pillar KM Framework at GMR Energy
which is aligned to Group KM Philosophy and supports Sector
and SBUs Knowledge Management requirements revolving
around key KM theme of “Capture, Share & Re-use”.
Fig. 4.2-7 “5 Pillar” KM Framework
How do you manage organizational knowledge to accomplish
the following?
the collection and transfer of WORKFORCE knowledge
the transfer of relevant knowledge from and to CUSTOMERS,
suppliers, PARTNERS, and COLLABORATORS
the rapid identification, sharing, and implementation of best
practices
the assembly and transfer of relevant knowledge for use in your
INNOVATION and strategic planning PROCESS.
83
In order to capture Competitive knowledge, Best in Class
practices and Global developments/trends, renowned global
consultants are invited like McKinsey, PwC, E&Y, KPMG,
BCG, Hay Group, Accenture, AT Kearny. Engagement with
academia & other institutes like IIMs, TQMS, CII, TERI, GRI
and visits to other companies and organizations are organized.
For example, Senior Leadership Team of GMR Energy visited
power plants of peer companies like Adani, Sterlite Power to
study Best Practices adopted in the areas of Plant O&M and
other support functions.
Fig. 4.2-8 illustrates Process to manage organizational
knowledge to collect and transfer knowledge from Employees,
Customers, Suppliers, Partners, and other stakeholders.
Fig. 4.2-8 KM Platform at GMR Energy
Managing
Organizational
Knowledge
Process to Use Knowledge
Collect
Transfer
From Workforce
Knowledge Documents, Learning capture
templates, Learning from Key Projects, Process
documentation through employees past
experience, Articles, Newsletter, Innovative
Ideas relating to Site/ Function specific
challenges
Knowledge Sharing Sessions/Power Talks, KM
Portal, IMS Process Documents, Newsletter
(SPARKLE), BE Council, KM Communities,
Leader Led Sessions
Key learning’s compiled and shared EMCO,
Island Power, InterGen, Implemented Ideas,
Best Practice adoption (G&L, Thermal Coal),
Project Bijlee & Project Paani Implementation
From Customer
Scheduled & Unscheduled Interaction with
Customers, Customer Feedback, Customer
Complaint Management System
Dissemination of Key Information through
Morning Meetings, Dept. Head Reviews,
Communities of Practice
Opportunities explored in Short term power
market, Regional Office set up at Hyderabad to
move closer to the Customer base in Southern
Region
From Supplier/Partner/
Collaborator
Vendor Workshops, Supplier Presentations,
Seminars, Technical literatures, Manuals,
Media, Internet, Visit at Vendor’s Site
Best Practice suggested, Employee Training
(O&M), Troubleshooting support
Improved Plant Availability, Operational
Efficiencies
From External
Consultants, Auditors,
Banking Partners,
Industry Visits
Statutory Audit Reports, Reports/Analysis from
McKinsey, BCG, KPMG, AT Kearny, Accenture, Global Best Practice presentations to GHB/
E&Y, PwC, Deloitte, Hay Group, TQMS, Visit
GCM/BCM, SBU Heads, Sharing of BE
to Other Organizations, BE External/Internal
Assessment outcomes
Assessments
Job Evaluation & Job Design, Organization
Restructuring (Sector philosophy to SBUs way
of working), Operational Excellence Initiatives
at Thermal Coal Assets, Project Execution
Excellence – “Bhavyatha”, Stage Gate Audits,
Improvement through closure of BE OFI’s
From Corporate
Communication Team
Key Highlights from News Papers, Publications, E Mails to Specific group of Users,
Update from other Print & Electronic Media
Presentations, Panel Discussions
Increased awareness on latest trends in
Infrastructure space, Fuel Availability/allocation,
Petition updates, Tariff Trends etc
For Rapid identification,
sharing, and
Inputs from Consultants, Best Practice Sharing
implementation of best across SBUs and other Sectors, ORM’s
practices
For transfer of
Knowledge for use
in Strategic Planning
Process
Impact / Improvement (Illustrative)
Presentations made to GMR Leadership by
Global Consultants, Best Practice contest,
Leader Led Sessions (Capture-Share-Reuse)
across Energy, DIAL, GHIAL, Highways
Environment Scan, Macro & Micro Economic
Strategic Planning Process, Sector & SBU
Analysis, Industry & Sector Outlook, Competitor BSC’s, LT & ST Plans, Deployment plans
performance, Projection – trends
through PDM/A3 sheets/Goal sheets
Behavioral Based Safety Assessment & training
at Thermal Coal Assets by NIST (NEBOSH
Standards)
Super Critical Technology used in place of
Subcritical in CTPP project to leverage on
higher efficiency and reduced emissions
For best Practice sharing various forums are used e.g. HR Council, BE Council, Safety Council, Interaction with Other Sectors
(e.g. Sharing of DIAL BE Journey experiences by DIAL CEO), KM Communities – G&L, Short Term power market, Thermal O&M
Community (being launched).
Illustration of E&I of KM Framework is given in Fig. 4.2-9.
Fig. 4.2-9 E&I of KM Framework
Year
84
Initiatives & Improvements
Objectives
2012
KM Portal, Knowledge Sharing Sessions, Power Talks by Functional Heads
Sharing of Knowledge, Discussion on Technical Topics,
Knowledge Repository
2013
“KM Gyanotsav” at Assets & Projects, KSS, KM Chats, KM Reward & Recognition, KM Champions
at Sites
Sustain & Enhance Employee engagement in KM Initiatives,
Involvement of Senior Leadership in KM Initiatives
2014
KM Portal Restructured and Revamped, Implementation of Knowledge Capture Templates,
Technical Advisory, KM Communities – G&L, Short Term Power Market, Learning Capture from
previous projects (EMCO InterGen, Island Power), BE KM Council, Leader Led Sessions through
KM platform enabling cross pollination of Best Practices across various businesses
To position KM as Business Differentiator, aligning KM with
Sector & SBU objectives to deliver value
KSS @ GEL KKD
KSS @ GVPGL
KSS @ Hydro
KSS @ CTPP
4.2 B Management of Information
Resources and Technology
4.2 B1 Hardware and Software
Properties
How do you ensure that hardware and software are reliable,
secure, and user friendly?
For ease of management and maintaining availability
and reliability, Group IT has standardized the hardware,
software, databases, security, and development platforms.
GMR Group hosts all application on its Central Data Center.
Enterprise wide SAP and other critical applications along
with Network segments, and Database are configured with
multiple redundancy levels based on principle of “No Single
Point of Failure”. The reliability, security, user friendliness
and environment friendliness of IT Hardware, Software and
Systems is mentioned in Fig. 4.2-10.
Fig. 4.2-10 IT Hardware, Software properties
Process used to ensure that this attribute is achieved for
Attribute
IT Infrastructure – Hardware
FY12 – Compliance to International
Security
Standards
FY13 – USB Blocking, Fire walls, DLP
FY14 – Security Operations Center
IT Applications - Software
FY12 – IT Audits, No NC’s
FY13 – VAPD Conducted
FY14 – Enhanced Application
Security Control
implemented
Performance
Measures
Compliance to IT
Security Standards
85
Process used to ensure that this attribute is achieved for
Attribute
IT Infrastructure – Hardware
IT Applications - Software
FY12 – ISO 27001 for Data Centers and BS 25999
Certification for Business Continuity Management
FY13 – Implementation of BMC Helpdesk tool following ITIL
Reliability
practice
FY14 – Improvement in IT Operations through ITIL Framework
User
Friendliness
FY12 – Streamlined Helpdesk Operations
FY13 – Productivity Hub
FY14 – SLA based Service Delivery
Performance
Measures
FY12 – Application DR Drills
FY13 – Application and
Infrastructure DR Drills
FY14 – Continued DR drills
aligned to Enterprise Risk
Management Framework
System Availability
FY12 – Customized Reports for
Users
FY13 – Business Process
Automation
FY14 – eMail enabled Approvals,
Reports, Dashboards
Employee Satisfaction
FY13 – EHS Dashboards
FY14 – EHS Automation
Green Initiatives
FY12 – Virtualization of Servers leading to Energy Savings
Environment
Friendly
FY13 – Increased Compute performance, reducing no. of
servers, hence Energy Consumption Reduction
FY14 – Refreshed SAP Landscape to reduce DC Server
Count
4.2 B2 Emergency Availability
In the event of an emergency, HOW do you ensure the continued
availability of hardware and software systems and the continued
availability of data and information to EFFECTIVELY serve
CUSTOMERS and business needs?
To ensure seamless availability of IT Infrastructure during
Emergency, GMR Energy has implemented the Disaster
Recovery System and Business Continuity Plan (BCP). For
all Critical Applications and Servers, 24X7 Support Contracts
have been in place with IT Service Providers. Periodic back
of all systems as defined back up procedure (Fig. 4.2-11) is
carried out. All Critical applications like MS Exchange, SAP
are implemented on H/W cluster with “Auto Failover” system
design feature to ensure high availability of user interfacing
applications. All Application software media and license are kept
at two different places, eliminating risk of damage to software
in case of emergency. For primary use, Central Data Center at
Bangalore is kept under operation. In case of Emergency at
Primary Data center, all IT Operations and support seamlessly
moves on to the Secondary Data Center (DR & Back up) at
Chennai. A Copy of back up media is kept offsite to ensure
the data security and timely retrieval in case of emergency.
To ensure User Data availability, Business Briefcase concepts
have been designed and deployed where in all users across
GMR sites can access a dedicated Network Storage Space
assigned to archive and seamlessly access Business Critical
Information from anywhere.
Fig. 4.2-11 Emergency Availability of Data and Information
Application
86
In the event of non-availability of system at GMR Energy
Recovery Point / Recovery Time
E Mail
Resilience through Cluster, Hot Standby through DR
30 Mins to 4 Hrs
SAP
Resilience through Cluster, Hot Standby through DR
30 Mins to 4 Hrs
gNet
Resilience through Cluster
< 60 Mins
Other Applications & User Data on
PC / Laptop
Back up of Data stored on Central Storage
8 Hrs to 24 Hrs
5. Workforce focus
5.1 Workforce Environment
Our HR Strategy as mentioned in Fig. 2.2-4 is formulated
based on our Business strategy to support culture of high
performance aligned with our Vision & Values, and to provide
an effective, safe and secure working environment to all our
Employees for achieving ST & LT organizational goals. With
the aim of deploying Group’s revised “Asset Light Asset
Right” business strategy, a multi-pronged approach focused
on People, process & technology has been adopted, aimed
at driving much greater efficiency and productivity across
the sector. HR Council has been formulated in FY14 to set
strategic direction and establish priorities for HR professionals
across GMR Energy to support SBU objectives. This is being
deployed through our HR system as depicted in Fig. 5.1-1.
Fig. 5.1-1 GMR Energy HR System
Job Analysis, Link grades, designations, roles – (Hays Group) Developing Internal Talent Pipeline Manpower Optimization Retention of Key Talent, E mployee Engagement Enhancing Employee Productivity & Engagement Attracting right talent Employee Communication To foster healthy climate, provide better facilities and to have regulatory compliance 5.1 A Workforce capability & capacity
5.1 A1 Capability and capacity
How do you assess your WORKFORCE CAPABILITY and
CAPACITY needs, including skills, competencies, and staffing
levels?
Assessment of workforce Capability and Capacity is done using
the process given in Fig. 5.1-2. Manpower Planning, as part of
AOP process involves – 1) Arriving at SBU wise requirements
based on ST and LT business priorities, 2) Validation by Work
design Team,3) Approval by GHB. This leads to formation of
Human Capital Plan for BHR to initiate Hiring process and
filling of approved vacancies. Workforce Capability needs
are identified through a combination of methods ranging from
PMP, IDP, Hay Competency Framework, O & M curriculum for
Employees transitioning from Projects to O&M.
5.1 A2 New workforce members
How do you recruit, hire, place, and retain new members of
your WORKFORCE? How do you ensure your WORKFORCE
represents the diverse ideas, cultures, and thinking of your
hiring and CUSTOMER community?
The Recruitment process focuses on developing Talent pipeline.
Lateral Entrants with specialized skill sets are hired from
diverse sectors through applications received on the Company
web site, tie-up with Placement agencies, Internal Job postings
and Employee Referrals. Placement of lateral entry recruits
is done on the basis of organizational requirement emerging
from ‘Sanctioned- Positioned-Vacancy’ analysis, keeping in
view the qualifications, past experience and specialization.
To ensure inclusion of Diversity in terms knowledge, gender,
culture, region, Recruitment is done across the country and
aligned to the role requirements. For instance, at Project sites,
there is more emphasis on local hiring based on their fitment,
skill level, and suitability for the role. Buddy system helps new
joiners imbibe the organizational culture. Customized Induction
program is designed based on geography and workforce group
to assimilate the employees to new working environment. For.
E.g. GMR Darshan for AVP & above employees. Deployment
of Online Hire-craft Tool, introduction of pre-employment
background verification has led to improvement in Recruitment
cycle time and yield. Various mechanisms, processes and
initiatives that have been put in place for higher retention of
new joiners includes: (a) Competency based placement, (b)
Well defined Job Descriptions (Hay Outcome), (c) Buddy to
handhold and guide them (d) Periodic interactions with HR,
(e) Career growth path indicating management expectations,
(f) Cross functional orientation (g) Challenging projects, (h)
linkage of remuneration with performance (i) Development
initiatives, (j) Open communication Business Excellence in GMR Energy | FY 2013-14
87
Fig. 5.1-2 Workforce Capacity & Capability Assessment Process
Energy Business Strategic Plan – Strategy Workshop, SBU wise AOPs ST Plan: Capacity – New Projects, Functional manpower plans, Capability – Core Competencies, Hay’s competency framework LT Plan: Future Competencies & Growth Plans Capacity Gap Analysis Projects, Assets & Corporate -‐ Manpower requirements (Approved V/s. Vacant), Productivity Levels, Attrition, and Retirement trends Capability Gap Analysis Leadership Competency Assessment, Operational Excellence Competency Gaps 5.1 A3 Work Accomplishments
How do you manage and organize your WORKFORCE
to achieve the following?
HR S trategy – LT Plans & ST : Annual Manpower Plan Finalize based on Hay group recommendations, comparison with competition, and Group Companies (As approved by GHB) • accomplish the work of your organization
• capitalize
on
COMPETENCIES
the
organization’s
CORE
• reinforce a CUSTOMER and business focus
Recruitment Plan Outsourcing Plan Job Rotation, Re-‐
structuring & Rotation Plan Training Plan • exceed PERFORMANCE expectations
• address your STRATEGIC CHALLENGES and
ACTION PLANS
While our business was all set to take a major leap to the next level of maturity, we were confronted with multiple challenges of a
volatile global economy, uncertainty in regulatory and policy environment, fuel shortages, poor financial health of DISCOMs and many
more. Given these changes in the business environment and transition from project phase to operations phase, it was felt essential to
align our organization structure to focus on speed of decision making, profitability, liquidity and capability building. So an organization
re-design initiative was undertaken with McKinsey, based on the principle of Strategic Business Units (SBUs) to ensure:
• Tight linkage between structure and business portfolio, pointing towards high level of performance orientation
• Sharp focus on accountability with complete ownership of cost heads and revenue heads
• Flat and lean structure to ensure high sense of empowerment, quick decision making ability and decision points brought down to
where the action is
• Matrix relationships (dual reporting) as key enablers and expert support; reporting to Group Corporate for support functions as
before
• Robust governance mechanism to ensure appropriate checks and balances for key processes
• Current strengths and capabilities preserved
The organization is structured into 5 SBUs and 3 major functions spread across multiple sites/locations. Hay Group has been engaged
to carry out a comprehensive Job Evaluation study to ensure 1) Finalization of Job Descriptions for all the unique roles 2) Evaluation
of Roles/Jobs across the Group 3) Finalization of Banding /Grading framework for the Group, including Technical and Managerial
Bands 4) Carrying out Organization Efficiency Analysis 5) Assessing employees fitment to the roles through: a) CTR (Capability Talent
Review) & Talent Q for GM, AGM & below. The workforce is organized into our own employees; contract workmen supervised by
contractors’ supervisors, and outsourced services.
The individual members of our management team have significant experience in the power industry and have a strong understanding
of the financial and technical aspects of our business. Our key managerial personnel have, on average, over 30 years of experience
in the power sector. We invest substantial resources in training our workforce. We also have an in-house knowledge management
program and invest extensively in environmental health and safety initiatives in our offices and at our power project sites. In addition,
we have developed in-house engineering and project management teams dedicated to our thermal and hydroelectric power projects
under development, which provide engineering and consulting services to such power projects. For instance, our in-house engineering
and project management teams have undertaken the designing and engineering of hydroelectric power projects, such as Bajoli Holi,
Alaknanda, Talong, Upper Marsyangdi-2, and Upper Karnali Power Projects. We believe these factors contribute significantly to our
ability to attract and retain talent.
88
Various aspects for managing and organizing workforce for work accomplishment have been mentioned in Fig. 5.1-3
Fig. 5.1-3 Organizing & Managing Workforce
Aspect
Approaches
Organization
Accomplish Work Structure which
of Organization
has evolved as per
business needs
Stakeholder
Relationship
Capitalize on the
organization’s
Core
Project Execution
Competencies
Operational
Excellence
Till FY12
FY13
FY14
CEO driven Single Entity Structure (Key
Functions – BD, Projects, Asset Mgmt., Transitioning from Projects to O & M
Support Functions)
Corporate Affairs and Communication
functioning separately
Reorganization of Corporate Affairs
function to provide greater focus on
Stakeholder Advocacy (CC merged
with CA)
Merger of Corporate Secretarial and
Corporate Legal
Implementation of SBU structure through
RASCI, DOP, Creation of new work units for
e.g. Capability Center, Renewables
Relocation of Thermal (Coal) and Corporate
Functions SBUs to Delhi to move closer to
Ministry of Power,
Regional offices to move closer to power
trading customers
Creation of PTS to facilitate
Engineering, Quality, and Planning of
Project Management
Tie Up with PMI, Roll out of Hydro Power
Introduction of Project Bhavyatha for
Project Management Manual , EHS framework,
ensuring Project Execution Excellence Learning Capture from EMCO, Island Power,
InterGen etc
Best in Class framework at Gas &
Liquid Assets, TPM based Projects,
Enhancing Operational Efficiencies
through CIPs
Containing Plant preservations costs
for Gas Assets
Capability Center Roadmap, Implementation
of IMS, BE Practitioners program at EMCO &
GKEL (Thermal Coal Assets)
Reinforce A
Customer, and
Business Focus
Manpower
planning and
PPA with state Utilities, Key Account
recruitment, Training, Management for Power Trading
Performance
Customers, PSBSC Reviews
Reviews
Enhancing OA Customer base, Capitalizing on
Introduction of PPA Management Team
Opportunities in Short Term Power Markets,
to create interface with State Utilities,
Operation Review meets for Thermal Coal
and enhance relationship
Assets, SBU Reviews
Exceed
Performance
Expectations
PMP, Training,
Employee Reward &
Recognition, Special
Incentives etc
CIPs for Corporate Functions,
Milestone based Incentives for
Contract Employees at GKEL (Project
Bull’s Eye)
Address
Strategic
Challenges and
Action Plans
Cascading of BSC to
Project Reviews by BCM, GCM,
PDM, A3, Individual Up gradation of skill sets through
Project War Room Reviews, Focus
Goal sheets as per
CEPCOM, Knowledge sharing sessions
on ATRs
PMP Guidelines
Performance linked variable pay,
Employee R&R – Idea Factory, SPOT
Awards, Zeal Factory, CIPs for Projects
& Assets
Roll out of Annual BE Road maps, Appreciation
letters to Individuals, Focus on Sustainability
initiatives through GRI
Introduction of PDM, A3 approach, Imp. of
Hay Group Recommendations, P & L training
modules for Plant Heads, Succession Planning
workshop
5.1 A4 Workforce Change Management
How do you prepare your WORKFORCE for changing CAPABILITY and CAPACITY needs? How do you manage your WORKFORCE,
its needs, and your needs to ensure continuity, prevent WORKFORCE reductions, and to minimize the impact of WORKFORCE
reductions, if they do become necessary? How do you prepare for and manage periods of WORKFORCE growth?
The approaches for workforce change management are given in Fig 5.1-4. Recruitments, Transfers / Job Rotations /Enhancements
and Training, build capacity and capabilities in the workforce to take on business challenges to achieve organizational vision. For
e.g. P & L Training for Plant Heads, ELP for Key employees in GM & above cadre, Visit of O & M team to China for securing supply
of essential spares. Employees are constantly provided with opportunities to handle more responsibilities and increase scope of
work through Job enhancement, training, Job rotation, and nominations as BE Champions. To address workforce and business
needs we constantly endeavor to up skill/retrain employees so that they can be redeployed for new roles. For e.g. Employees
from Projects have been redeployed to O & M, and from PTS have been redeployed to Projects, Capability Centre based on their
expertise and suitability for the role. During relocations basic requirements like travel, movement expenses, help for housing and
children education are taken care of.
Fig. 5.1-4 Workforce Change Management
Aspect
Approaches
Changing capability &
Capacity needs
- Transfers across locations and functions e.g.
- SPG Head to lead Renewables Portfolio, GKEL SBU Head entrusted with Dual Responsibility of Hydro & GKEL
- Implementation of Hay Group recommendations
Ensure continuity and
prevent work force
reduction
Redeployment of Employees from 1)Projects to O &M , 2) PTS to Projects & Transmission, 3) Engineering & Quality Assurance to Capability
Centre
Manage Periods of
workforce Growth
Emerging Leadership Program, P & L Training for Plant Heads, PMP
89
For e.g. Benefits extended to all Employees transferred
from Thermal Coal Assets, and Corporate Functions, from
Bangalore to Delhi office (based on specific business need).
Performance issues are addressed through a PIP process
which ensures that capability gaps are identified, specific
support provided, and employees are retained. With the above
initiatives, the main focus is to ensure that the organization is
optimally staffed and hence the sanctioned manpower levels
are adhered to.
5.1 B Workforce Climate
5.1 B1 Workplace Environment
How do you address workplace environmental factors including
accessibility, to ensure and improve WORKFORCE health, safety,
and security? What are your PERFORMANCE MEASURES and
improvement GOALS for each of these WORKFORCE needs?
What are any significant differences in these factors and
PERFORMANCE MEASURES or targets for different workplace
environments?
GMR’s environmental, health and safety (EHS) governance structure is designed to help the organization realize its vision, implement
its EHSQ policy, achieve its goals and help create long-term business value for the company. This includes contributing to GMR’s
sustainability strategies and processes.
GMR believes in integrating strong EHS management practices into its industrial enterprises across all business operations. Each
business enterprise has been covered under stupendously articulated Corporate Environmental, Health, Safety & Quality (EHSQ)
Policy. Sustainable practices reduce risks to life and property, and improve system efficiency which helps to conserve natural
resources. When such practices become institutionalized, they reduce costs. Several unique schemes have been implemented to
prevent pollution and conserve natural resources to achieve sustainable development.
The Company is aggressively implementing national policies, regulation and objectives in EHS Management and Pollution Control
measures. Continuous efforts are laid to build the strong foundation towards EHS excellence in all its operations.
The governance system ensures the compliance to the EHS regulatory requirements through conducting regular EHS Audits. The
organization works with a diverse group of internal and external stakeholders to address emerging EHS issues and related business
challenges. Our governance framework and effective management systems enable us to ensure that management of risk and
regulatory compliance are overseen at the highest levels of the company.
With our Corporate EHSQ Policy as the foundation, implementation of EHS framework across all sites ensures the effectiveness of
implementation of EHS systems and processes.
Key Guiding Principles
Top management focus:
• Organization leaders shall ensure establishment of EHS consciousness and culture, in all business activities
• EHS shall be among the top most priorities of Business Leaders in Project Site or Operating Plants
Clear accountabilities:
• Businesses shall ensure a clear way of defining and cascading EHS expectations
• During project execution it is most important to have highly trained workforce with excellent awareness on GMR EHS requirements,
also at contractor and sub-contractor level, including EPC contractors.
• To ascertain the awareness/skill level of workforce, 3 days orientation program through some special agency competent in the
field of behavioral safety, shall be conducted.
• Gate pass to the contract workers shall be issued based on their awareness certification. All contractor workers will be under
critical observation for their action/behavior on the job. Any shortcoming observed in respect of safety will necessarily send the
worker to the Refresher/Re-certification course on awareness for at least 3 days.
EHS team:
• Shall focus on core activities with technical expertise, analytical rigor, and shall have a strong working relationship with “the line”
• Shall conduct audits, lead continuous process improvements and report out with analysis
Line management:
• Shall be responsible and accountable for overall EHS performance
• Performance management systems must be tailored to achieve the objectives of EHS management.
EHS performance management:
• Project / plant EHS team shall be vigilant about all EHS non-conformances, and act upon all areas of improvement promptly and
coach and train line staff and contractor staff.
• Corporate EHS shall provide guidance and support to Project / Plant in all aspects, in achieving best EHS performance at all
times.
Corporate sustainability focus:
• The entire team shall move towards fulfillment of the Corporate Sustainability requirements in terms of reporting, analysis,
improvements and governance as per GRI G4 guidelines and National Voluntary Guidelines under our GMR Business
Excellence framework
90
EHS Organogram
BCM - Energy
HEAD - S & D
Plant Head
SECTOR EHS HEAD
ENVIOURNMENT OFFICER
Safety Officer
SITE EHS HEAD
EHS team’s role includes audits, ensure 100% statutory compliance, disseminate Regulatory Updates, register eligible projects
under CDM, implement Sustainability Initiatives such as Carbon Footprint, GRI, National Voluntary Guidelines, implement ISO
14001 and OHSAS 18001 management system, allocate budget and resources, implement Corporate Policies, Procedures and
Systems, develop HIRA and SOP’s, investigate incident, prepare RCA and CAPA.
EHS management is governed by our EHS Beliefs, EHS Cardinal Rules, and EHS Policy guided by EHS framework for Energy
Sector. GMR Energy has an IMS Policy aligned to standards of OHSAS 18001, ISO 14001, and ISO 9001:2008 Fig. 5.1-5 shows
the Workforce Process for proactively addressing and improving Occupational health and safety. Hazard identification and risk
assessment, surprise safety audits etc. are carried out on a periodic basis. Employees are encouraged to report Near Miss
Incidents through the Safety awareness portal. The various processes for reinforcing safety orientation among all employees
and Contractors include Safety Awareness, Induction, and Training. Safety Week is celebrated every year at Sites/Locations
with participation of employees in Safety Quiz, Slogan, Poems, and Poster competitions. All the incidents and accidents are
investigated by Accident Enquiry Committee (AEC) headed by senior leaders. Approved CAPAs are circulated to all concerned to
avoid recurrence of similar type of accidents. Safety training for employees is carried out as per training calendar.
Fig. 5.1-5 Workforce Process for improving Occupational Health & Safety
91
Besides this, In order to make work environment safer, following
improvements have been made in Safety Management
systems 1)Roll out of EHS framework for Energy Sector, 2)
Introduction of Hydro Safety Manual and procedures, 3)
Introduction of Safety Evaluation of Contractors at Pre-bid
stage of awarding contracts 4) Behavioral based Safety
program for Thermal Coal Assets. In order to ensure a healthy
work environment, the furniture and ambience provided to
the employees is ergonomically comfortable. Flex Boards on
Office Safety and safe work practices are installed at strategic
locations for awareness. Annual health check-up is done for
all employees. In view of the potential security threats, strict
monitoring is done at all entry points. We have also installed
CCTV at operating plants, Access Control system, and Visitor
Management system. Security for all locations has been
assigned to RAXA. Emergency mock drills are conducted
regularly. The measures for all these factors with their KPIs
and targets are given in Fig 5.1-6
Fig. 5.1-6 Approaches, Measures & Initiative related to EHS Workforce Change Management
Attributes
Initiatives till
FY11
FY12
Periodic Health Check-up,
Medical Camps – Eye
camps
Health
Periodic Health
Check up
Safety
Corporate Safety Manual,
Implementation of
Management Information
system(MIS),
Develop EHSQ Policy,
Safety principles,
PEP talk/Tool Box
Internal Safety audit
Talks, Internal
protocol for all Assets &
trainings, Daily and
Regular Inspections Projects,
by Site safety officer. Accident/Incident
investigation by Corporate
Audit by site safety
team,
team, 100% statutory Safety Week celebrations,
compliance
Prepare & plan to
conduct trainings as per
Requirement,
Basic Safety Qualification
(BSQ) for all New
employees
Environment
Adherence to
Environment
Compliances such
as EC, CTE, CTO,
FC, CRZ etc. CDM
Registration of
eligible projects and
Carbon Footprint
commenced
Security
Carbon Footprint in Assets
commenced (In house)
CDM Registration of
GVPGL
FY14
Measures
Ensure periodical medical
Ensure periodical medical health
1) No. of Employees covered under
health check-up for all
check-up for all employees and
Annual Health Check Ups (Fig.
employees and contract
contract workmen
7.3.34)
workmen
To achieve less than 0.35 LTIFR
(measured as per IS: 3786) in
FY13,
Develop, Amend Legal
Register and monitor Statutory
Compliance ,
Hazard Identification and Risk
assessment(HIRA) and Job
Safety Analysis(JSA) for Critical
Jobs,
Conducting periodical Mock drill
in Projects & assets ,
BBS(Behavioral Based Safety
) training Program to all the
employees,
Develop Safe Working
Procedures, and Inspection
Checklists
To achieve less than 0.2
LTIFR(measured as per
IS:3786) in FY13,
On-site Emergency
preparedness Plan,
Introduced Hydro Safety
Manual & procedures,
Fire Safety Manual,
EHS Framework,
Work initiated on
having EHS Software
for Measurement
& Monitoring EHS
performance across sites
1) LTIFR(Lost Time Injury Frequency
Rate – Fig. 7.3.26)
2)Lost Time Injury Severity Rate (Fig.
7.3.27)
3) No. of Incidents/Accidents (7.3.25)
4) Increase in number of Safety
Suggestions/ Near miss reportage
(Fig. 7.3.28)
5) Compliance to Statutory
requirements
6) Number of Manuals, safe operating
procedures, HIRA documents
developed
7) Number of Internal audits
conducted
8) Mock drills Conducted (Fig. 7.3.31)
9) Compliance to Training Calendar
(Fig. 7.3.21)
CDM registration of Solar, Wind,
GREL, Bajoli Holi, Alaknanda
Corporate Environment
Audit, Compliance
Review, Sustainability
Reporting Initiative, EHS
Framework, Wildlife
Conservation Plan of GIB
in EMCO
1) Adherence to all statutory
requirements (Fig. 7.4.6 to Fig.
7.4.15), Carbon Footprint Assessment
(Fig. 7.4.17), and commencement of
the Sustainability Journey
Security at Sites and offices is managed through RAXA , Our In - House Security Agency
Fig. 5.1-7 Process for supporting
workforce with benefits
92
FY13
1) No. of thefts detected/averted
2) Recovery of cost of Equipment’s
stolen in remote locations where
security personnel are deployed
3) No. of new equipment’s installed
uniform across all sectors (Fig. 5.1-8); however location specific
policies are introduced to facilitate the employees posted at
various locations. For. E.g. City Compensatory Allowance has
been introduced lately for Employees posted at Mumbai and
Delhi.
5.1 B2 Workforce Policies and Benefits
How do you support your WORKFORCE via policies, services,
and benefits? How are these tailored to the needs of a diverse
WORKFORCE and different WORKFORCE groups and
SEGMENTS?
These policies are regularly visited and modified to incorporate
the changing needs and aspirations of employees through
HR Council at Group level. Company is sensitive to various
sectorial, functional, geographical needs and provisions
are incorporated to cater to such specific needs in terms of
additional facilities and benefits like, Hardship leave, Guest
house, transport facilities, winter uniforms etc.
In line with market practices and changing economic dynamics,
the Group continually reviews and benchmarks its HR policies
to support Employees with various services and benefits
and ensure their optimal utilization. Process for supporting
workforce benefits is shown in Fig. 5.1-7. HR Policy manual
comprising of various HR policies, processes and formats
is available on gNet (Company Intranet). These Policies are
Fig. 5.1-8 Policies & Benefits tailored to diverse workforce
Employees
Perquisites
GKEL
CTPP EMCO VPGL-GREL
Kamalanga Tilda Warora Rajahmundry
√
√
√
√
Hydro
GEL
GPCL
Bajoli
Kakinada Chennai
Holi
√
√
√
Corp.
Relations
– Sites &
Corporate
Delhi &
Mumbai
Office
√
√
Privilege in vogue
Membership fees to Professional Institution,
LTA, Mobile Expense reimbursement, Data
Card policy
Medical
facilities
& Group
Insurance
√
√
√
√
√
√
√
√
√
Staff Welfare
programs
√
√
√
√
√
√
√
√
√
Leave Policy
√
√
√
√
√
√
√
√
√
Leave Entitlements
Travel Policy
√
√
√
√
√
√
√
√
√
Domestic, Foreign, Local conveyance
reimbursement
√
√
√
√
Hardship
Allowance
Township
Policy
City
Compensatory
Allowance
For Remote sites/locations
Family Accommodations, Recreational
facilities in vicinity of the Plant
√
√
√
Project Bonus
√
Uniform
Allowance
Transfer Policy
√
√
Medical Expenses Reimbursement, Group
Mediclaim & Personal Accident Insurance,
Annual health checkup. Family pension
through Group Insurance Scheme
GCM outstanding achievement award, KM,
Marriage gifts, children ed. assistance,
Foundation day, Ex-gratia, Spot award
√
√
√
√
5.2 Workforce Engagement
5.2 A Workforce Performance
5.2 A1 Elements of Engagement
How do you determine the KEY elements that affect WORKFORCE
ENGAGEMENT? How do you determine the KEY elements that
affect WORKFORCE satisfaction? How are these elements
determined for different WORKFORCE groups and SEGMENTS?
√
√
√
√
To compensate for higher cost of living
For Projects under construction to drive
completion within Budgeted cost and time
For Corporate Relations interfacing with Govt.
Machinery/ Regulatory offices
Transfer/Relocation, Temporary transfer,
Deputation
Fig. 5.2-1 lists various formal and/or Informal methods
for capturing inputs for Satisfaction and Engagement. We
identify key factors which affect employee engagement and
satisfaction by conducting study which involves Focused Group
Discussions across the organization, an external third party
survey, inputs from exit analysis; skip level meetings, Town
Halls, HR Council, HR Connect, etc. For contract workmen an
in-house study at respective sites/locations for determining the
factors for engagement and satisfaction is conducted.
93
Fig. 5.2-1 Methods for capturing inputs on Engagement / Satisfaction
Level1
segmentation
Senior Management
(M5/S9 onwards)
Middle Management
Formal approach to take inputs
SLT , Gallup Survey, Skip Level Meets, Exit
Interviews, Town Hall, PMP, Performance
Dialogue, BOD, Satisfaction survey/Feedback
on specific HR Processes
Informal approach
Daily interactions, Senior
Leadership visits
Measures or indicators tracked to verify
workforce engagement /satisfaction
EEEC Survey, Managers scores (Fig. 7.3.18)
(M7 to M5/S10)
Skip level meetings, Town Halls, Department
Meetings, Exit Interviews, Dipstick Engagement Leadership visits, Buddy
survey / Feedback on specific HR Processes
discussions, R&R Sessions
EEEC Survey (Fig. 7.3.18)
Operational /Support
staff (A1 to A4)
Skip level meetings, Town Halls , Department
Meetings , Exit Interviews
Leadership visits, Buddy
discussions, R&R Sessions
EEEC Survey (Fig. 7.3.18)
5.2 A2 Organizational Culture
How do you foster an organizational culture that is characterized
by open communication, HIGHPERFORMANCE WORK, and
an engaged WORKFORCE? How do you ensure that your
organizational culture benefits from the diverse ideas, cultures,
and thinking of your WORKFORCE?
Our culture is driven by values and is evident in the transparent
and participative team behavior which has resulted in an
environment of high performance and accountability. In
FY 13, In house EEEC survey (Employee Engagement &
Ethics Culture) was conducted to understand elements of
organizational culture and the employee value proposition. This
was validated with the leadership group of the organization,
followed by detailed Action planning by HOD’s with their
respective Teams to address the survey findings. Transparency
is characterized by open communication which results from
role clarity whereby the individual goals are derived from
corporate goals through SPP, multiple review mechanisms
(Fig. 4.1-7), two way communications by senior leaders (Fig.
1.1-10), Employee Engagement is driven through various
Business Excellence initiatives like CIPs, Theme based Idea
Factory, Implementation of BE Roadmaps for SBUs’, R & R at
Group and Sector level. Besides this, Forums like HR Council
& BE council also provide inputs for Workforce performance
and Engagement. Intranet provides ready information to our
employees on access to policies, important events in the
company, ESS, Idea Factory Portal, KM Portal (Fig. 5.2-2)
“Every job is a self - portrait of the person who does it! Autograph your work with
Excellence!”
Avinash Shah
President - Coal Assets
Diversity—Participative team behavior is fostered through
creation of cross functional forums such as Bull’s Eye at GKEL,
Bhavyatha for Hydro, ORM, Ash Disposal, Coal blending which
are actively involved in the decision making process based
on their diverse expertise, thinking and experiences of each
function. Employees who are recruited locally across regions
foster better understanding of the market and cultural nuances.
The inclusion of participants in these forums is reviewed from
time to time. In addition CIP Teams with cross functional
94
representation are formed across sites/locations to tackle
business issues and for Continual Improvement (Fig. 7.1.92-9394). To formalize CIP Team formation, a CIP policy, specifying
roles and responsibilities of Team Lead and Members, is in
place. In the current year, Employee Engagement Initiatives
have been categorized under 5 main pillars of Gallup Q-12
survey viz. Alignment, Motivation, Involvement, Communication
& Development.
Alignment Initiatives
Motivation Initiatives
95
Communication Initiatives
Development Initiatives
96
Fig. 5.2-2 Forums and Practices Supporting High Performance and Workforce Engagement
Sr. No
Forums/
Practices
Periodicity
Senior
Leaders
Workforce
Groups
Supporting High Performance
Supporting Workforce
Engagement
Better understanding and
involvement in the purpose of
the company, Fostering a feeling
that employee’s opinion counts,
Appreciation for good work to act as
role model
Fig. 7.3.18,
Improved
Communication
Effectiveness
Outcomes
All Employees
Sharing of SBU Head’s views,
Feedback from Employees,
Recognition of performance,
Organizational Announcements,
Sharing of Company expectations,
Strategy & Financials
Functional
Heads, Key
Management
Members
Organizational Success,
Competitive performance,
Financial Health, Progress related
to Strategic Objectives
Co-creation – Participation in
strategy formation, action planning,
Communication – Clarity on
objectives, plans / revised plans,
Appreciation of good work and
sharing
Fig. 7.4.1, Fig.
7.1.92-93-9495-97
Eligible
GCM, BCM,
employees
SBU Heads,
under different
Plant Heads,
Employee R&R
Dept Head
Policies
Rewards and recognizes
performance and role model
behavior
Reinforcement of behavior
demonstrating company values
Fig. 7.3.18, Fig.
7.1.92-93-9495-97
Skip Level
Managers
All Employees
Appreciation for good work
Interaction with Leadership team,
encouraging frank, two way
communication
Fig. 7.3.18
BCM
All Employees
Team achievements, Progress
made on critical milestones
Outlook on Business Challenges,
priorities, Directions, Expectations
and opportunities
Fig. 7.3.18
Covers write up on engagement,
events organized, provides
information on employee’s personal Fig. 7.3.18
achievements, fosters understanding
of policies
1
Town hall meets Half Yearly
SBU Heads,
Plant Heads
2
Review Forums
(SBU Reviews,
BCM Reviews,
GCM Reviews,
GHB Reviews)
GHB
Members,
GCM, BCM,
SBU Heads,
Plant Heads
3
Reward &
Recognition
4
Skip Level
Meetings
5
BCM Newsletter Half Yearly
6
In-house
magazines
– SPARKLE,
PRERNA,
Dakshin,
Environment
Newsletters,
Secretarial
Newsletters
Monthly,
Quarterly
Functional
Heads
All Employees
Includes achievements of
important milestones to motivate
other teams
7
BE Council
Monthly
Head S&D
Site BE SPOCs
Platform to share achievements
in BE Initiatives, Best practice
sharing
Sets priorities for Continual
Fig. 7.1-92 to 97
Improvement, Best Practice sharing
8
HR Council
Monthly
Corporate
HR, CHRO
UHR Members
Best Practice sharing
Sets priorities for HR Professionals
to support SBU objectives
Fig. 7.4.1
Annual BE Nites Annual
GCM,
BCMs, CEO
of Group
Companies
All Employees
Rewards & Recognition for Best
Improvement Projects, Felicitation
of involved members
Interactions with GCM, BCM, CEOs
of other sectors
Fig. 7.1-92 to 97
10
Foundation Day
Annual
Celebrations
GCM,
BCMs, CEO
of Group
Companies,
Entire
Leadership
Team
All Employees
Reinforces commitment to
company
Caring attitude and platform for
employees to network and get to
know each other better, fostering
team building, involves families of
employees, various annual awards
are given
Fig. 7.1.92 to 97
11
PMP
Roadshows
CHRO, HR
Team
All Employees
Reinforces culture of high
performance
Fosters understanding on policies
Fig. 7.3.18
9
Monthly/
Quarterly/
Half yearly
Half Yearly
Annual
5.2 A3 Performance Management
How does your WORKFORCE PERFORMANCE management
system achieve the following?
• support HIGH-PERFORMANCE WORK and WORKFORCE
ENGAGEMENT
• consider WORKFORCE compensation, reward, recognition,
and incentive practices
• reinforce a CUSTOMER and business focus and achievement
of your ACTION PLANS
GMR Energy has an E Enabled PMP system with an objective to
accurately plan, review and evaluate performance (Fig. 5.2-3)
and to identify individual development needs for career growth
and succession planning; incentivize good performance. Based
on 3 year rolling Strategic Plan for the Sector, Annual Operating
Plan for SBUs is finalized, along with BSC for the Sector. In
FY 13, to strengthen the strategy deployment process, Policy
deployment Matrix, and A3 Plans were introduced at SBU Head
level to detail out clear Goals, Measures, Targets, Action Plans,
Timelines, Responsibilities for achieving Strategic objectives.
97
Based on the Sector BSC and PDMs, Individual Goals and
KRA’s are identified for all Employees in the Organization. In
order to enhance Performance driven culture within Support
staff (A1 to A4), from FY 13 , Goal based Performance
Assessment has been introduced besides behavioral attributes.
PMP carries 75 % weightage on Achievement of Goals, 15 %
weightage on assessment of values & beliefs, 10 % weightage
on assessment of self-development and training. Every Goal,
for completion, is measured in terms of timelines, Cost, Quality,
and Morale.
Fig. 5.2-3 Performance Management System at GMR
Energy
Performance Review takes into account 1) Performance
against assigned KRA’s 2) Additional Tasks – Engagement in
activities beyond the assigned goals (Participation in CFT’s,
CIPs, IMS deployment) 3) Core Values 4) Potential (Current
& Higher positions) 5) Training & Developmental needs 6)
Job Rotation Aspirations, thus ensuring high Engagement.
Compensation for Employees has 2 major components – Fixed
and Variable. The Variable Component (Performance Pay) is
based on individual performance, Sector Performance and
Group Performance. Compensation benchmarking studies are
carried out at Group level to ensure competitive compensation
to our employees. From FY 14, the Overall Rating system
in the PMP has undergone a change from 4 point scale to 5
point scale to ensure finer distinction of Performance. The
performance management process of the group provides an
opportunity for employees to raise any PMP related grievances
related to rating, compensation and promotion. Grievances
raised by the employees after issuance of annual PMP letters
are effectively examined and communicated to the employee,
in the shortest possible time frame, in a fair and transparent
manner.
Fig. 5.2-3A PMP Grievance Management Process
Performance Assessment Guidelines for meeting targets,
achieving stretch targets, exceeding targets and introducing
break through improvements are clearly outlined as part of
PMP to support high Performance and ensure Customer &
Business Focus (Fig. 5.2-4, 5.2-5). Formal midyear reviews
provide feedback to Appraisee on whether they are “on-track/
off-track” against set targets. Performance Review Dialogue
between the Appraisee and Appraiser ensures clarity of roles
and responsibilities, generates alternatives for dealing with
various problems, and sets goals for further improvement.
The overall rating awarded to an individual during the Annual
Fig. 5.2-4 R&R for high performance
Compensation
Category
Recognition
Employees on Roll
Variable pay based on performance
BE Nite, Appreciation letters during Town hall
meets, Dept Meet
Contract Workmen
Daily wage
Safety R&R – kit for daily use
Reward
Best CIP at each site, Idea Factory : Highest
individual contributor & Leading Site, Spot
Award, Employee of the month, Zeal Factory, I
Value U (Fig. 7.3.8)
Fig. 5.2-5 PMP Reinforcing Innovation, Customer & Business Focus
Factors supported by PMP
to reinforce
Risk taking for innovation
Improvement Projects (CIPs), Idea Factory (Fig. 7.1.92-93-94-95)
Customer Focus
Customer perspective in BSC (Fig. 7.4.1), Operational Excellence initiatives, IMS deployment
Business Focus
Achievement of Action plans
98
PMP Process used to achieve these factors
Alignment of KRAs through cascading from BSC (Fig. 7.4.1), BSC Reviews, R&R, Performance linked Variable pay, Incentives
Employee R&R @ EMCO
Employee R&R @ GKEL
CTPP - Leading site with maximum ideas
Employee R&R @ GEL KKD
Employee R&R @ GPCL
Employee R&R @ GVPGL
5.2 B Assessment of Workforce
Engagement
5.2 B1 Assessment of Engagement
How do you assess WORKFORCE ENGAGEMENT? What formal
and informal assessment methods and MEASURES do you use
to determine WORKFORCE ENGAGEMENT and WORKFORCE
satisfaction? How do these methods and MEASURES differ
across WORKFORCE groups and SEGMENTS? How do you
use other INDICATORS, such as WORKFORCE retention,
absenteeism, grievances, safety, and PRODUCTIVITY, to assess
and improve WORKFORCE ENGAGEMENT?
The primary method for determining employee engagement is
through Engagement Surveys carried out by External Agency
/ In-house. The survey covers all segments of employees
and determines the extent of engagement and satisfaction
at each level. An In-house Employee Engagement & Ethical
Culture survey was conducted in FY13, and based on the
survey results and findings, action plans have been formulated
through a collaborative approach. Other approaches for
assessment of workforce engagement includes Skip Level
Meetings, Town Halls, Departmental Meetings, BoD Meetings,
Exit Interviews, and Feedback from HR council, BE Council,
Induction Program, Customer Feedback Surveys. Participation
99
levels of employees in various organizational initiatives like
Bhavyatha, CIPs, IMS, KM, Safety, Idea Factory, is also an
important indicator of Employee Engagement. In addition to
the formal and informal methods, lag indicators like Employee
Productivity, Absenteeism, Grievances, Safety & Employee
Attrition rates are used to gauge the Employee Engagement.
The sensitivity towards safety is established through Safety
Council meetings; large participation in Safety awareness
sessions etc. and the impact is evident from the increase
in reporting of Near misses / unsafe situations (Fig 7.3.28,
7.3.30). Employee Grievances are captured through PMP, Skip
Levels, Open Forums like Town Halls, HR Councils. Data from
these sources are collated, analyzed and necessary actions
as deemed fit are initiated. Voluntary exit of employees and
analysis of the reasons for exit provide indicators regarding
Employee’s dissatisfaction. Even though absenteeism is
negligible, it is tracked.
5.2 B2 Correlation with Business Results
How do you relate your WORKFORCE ENGAGEMENT
assessment findings to KEY business RESULTS reported
in Category 7 to identify opportunities for improvement
in both WORKFORCE ENGAGEMENT and business
RESULTS?
The workforce engagement has an impact on the achievement
of organizational goals, and there by on the business results
apart from the attrition rate (Fig. 5.2-6). We have a structured
method of analyzing EES results and launching interventions
that enhance the engagement and satisfaction levels. Efficacy
of these approaches is validated by improvement in business
results.
Fig. 5.2-6 Correlation of Engagement results with Business Results
HR Objective
HR Initiatives
HR Result
Implementation of EEEC Action plans
Engagement Score
CIPs, Idea Factory, CFTs, KM Initiatives
Employees’ involvement in Improvement Initiatives
L&D Initiatives
Training coverage and effectiveness
Career Progression
Job rotation, IJP
Hiring
Recruitment Cycle time and effectiveness
Workforce Safety
BBS (NEBOSH), Safety Training
Safety Training man-hours
Welfare
Annual Health Check-up of Employees
% coverage of eligible employees
Employee Engagement
Capability & Capacity Building
Employee Welfare events organized at Sites
& Offices
BE Practitioners’ for Senior Leadership at
Thermal Assets
Business Excellence
5.2 C Workforce and Leader
Development
5.2 C1 Learning and Development System
How does your LEARNING and development system
address the following factors for your WORKFORCE
members and leaders?
• your organisation’s CORE COMPETENCIES, STRATEGIC
CHALLENGES, and accomplishment of its ACTION PLANS,
both short-term and long-term
• organisational
INNOVATION
PERFORMANCE
improvement
and
• ethics and ethical business practices
• CUSTOMER FOCUS
• their LEARNING and development needs, including those
that are self-identified and those identified by supervisors,
managers, and SENIOR LEADERS
• the transfer of knowledge from departing or retiring
WORKFORCE members
• the reinforcement of new knowledge and skills on the job
The development and learning needs are identified from the
long term goals, strategic challenges, short term focus areas,
and training needs identified during Annual Appraisals. Our
100
Business Result
LTIFR (Fig. 7.3.26), Cost
Reduction (Fig. 7.1.92-9394), Sale of Power (Fig.
7.1.31), Equipment outage
(Fig. 7.1.9, Fig. 7.1.23)
Employees' perception on welfare events
Implementation of BE Practitioners’ action plans
Learning and Development process (Fig 5.2-7) for workforce
is focused on supporting high performance through various
approaches driven by HR, Energy Development Center,
BE, EHS, QA/QC along with subject matter experts, training
consultants, tie-ups with institutes (IIMs) for training and
developing leadership pipeline (Fig. 5.2-8). Fast track high
performing employees are shortlisted based on elaborative
selection process annually. They are given the opportunity
to pursue a customized Emerging Leaders Program (ELP)
staggered over a period of one year at Indian Institute of India
(IIM) - Kozhikode, Kerala. The third batch was launched on
Dec 10, 2013. The batch concluded in April 2014.
Learning and Development programs are designed so that
the core competencies in areas like Project Management, and
Operational Excellence are strengthened and employees at
all levels are ready to face strategic challenges and achieve
business goals. For e.g. In FY 14, we enrolled as member of
Global Executive Council with PMI so as to bring in outsidein view, and external expertise of PMI for driving Excellence
in Project Management Processes. Other example is of
O & M Training organised for O & M staff in China. Tacit
knowledge from departing employees and superannuating
employees is captured at the time of “handing over” through
exit documentation along with discussion with departmental
colleagues and/or briefing of the successor prior to the
employee’s departure. In case of retirements, a successor is
assigned well in time to grasp the key learning’s.
Fig. 5.2-7 Learning and Development System
Fig. 5.2-8 L & D Mechanisms
Factors
Core Competencies,
Strategic Challenges,
Strategy Accomplishment
Employees Including Leaders
Bhavyatha Workshops, Leader Development Programs, Emerging
Leaders program, Project Management, Negotiation skills, 360 Deg.
Evaluation, Job rotation/Enhancement, Sustainability Training, P&L
Training for Plant Heads, BSC-PDM-A3 sheet workshops, Training by
OEM (SEPCO, SEC)
Others – O&M Training, SAP Training, Virtual MDC, Technical/IMS
Training for sites, Process Training, Quality, In-house Behavioral &
Team building training, Behavioral Competency framework (4 Pillars
& 11 Competencies), Member of Global Executive Council with PMI,
Engagement with global consultants, Participation in Global Summits
(World Economic Forum etc.)
Contract Workmen
Quality & Safety training
through Tool Box Talk,
Class room training,
Safety Induction Training
Leaders – External Workshops, Engagement with Global Consultants,
Visits to Power plants of Peers
Outcome
Training Effectiveness (Fig. 7.3.20)
Performance
Quality Tools, Small
Improvement & Innovation Others – BE Interventions – BE Practitioners workshops, CIPs, Idea
Group Activities
Factory, Quality Framework – IMS, Knowledge Capture, Share & Reuse,
Small Group Activities
Process improvements/CIP benefits (Fig.
7.1.92-93-94), KM benefits (Fig. 7.1.96)
Ethical Practices
Induction, Mandatory clearance of COBCE through online trainings, Ethic
Awareness Posters
Training for Location Ethic Counselor
Ethics Results (EEEC) (Fig. 7.3.18) , No.
of Ethical concerns (Fig. 7.4.2)
Customer Focus
Customer Centric Trainings, Customer Workshops
-
Customer satisfaction (Fig. 7.2.1, Fig.
7.2.6)
Personal Development
Plans
Training need identification during Annual Appraisal
-
Training Effectiveness (Fig. 7.3.20)
101
Factors
Employees Including Leaders
Contract Workmen
Outcome
Transfer of Knowledge
Knowledge Transfer through Handover processes by departing employee
Knowledge Sharing Sessions, KM Communities, Learning Capture,
On the job training
Leader Led Sessions
KSS (Fig. 7.1.97), KM Community Meets
Reinforce New
Knowledge/Skills
Employees attending external trainings/seminars encouraged to share
their learning with other employees, In-house modules on Behavioral
training, Online courses through Virtual MDC, On the job training
Class room & On the job
training
No. of Employees covered under Virtual
MDC (Fig. 7.3.1 to Fig. 7.3.5),
Safety
Safety Training, Safety Inductions, BBS & PPE Trainings, Mock Drills,
Emergency Preparedness Training, First Air Training
Safety Training modules
for contract workmen,
Tool box training
No. of Safety Training (Fig. 7.3.32),
Employees covered, No. of Accidents
(Fig. 7.3.25), Near Miss (Fig. 7.3.28),
Safety suggestions implemented
Climate Change
Sustainability Training, GRI G4 Awareness
Awareness posters
No. of Employees covered under GRI
Awareness sessions
5.2 C2 Learning and Development
Effectiveness
How do you evaluate the EFFECTIVENESS and efficiency of
your LEARNING and development system?
The efficiency of the learning and development system is
evaluated based on the training need completion, PDP
compliance. Reaction feedback is a mechanism used across
geographies for immediate effectiveness monitoring. 360 degree
feedback and Talent Reviews help evaluate the effectiveness
of Leader development initiatives. Where e-learning modules
are being used they are generally accompanied by a self-test
which enables instant feedback.
5.2 C3 Career Progression
How do you manage EFFECTIVE career progression
for your entire WORKFORCE? How do you accomplish
EFFECTIVE succession planning for management and
leadership positions?
Annual appraisal process covers discussion on Employee
Aspirations and helps in sketching out developmental plans
accordingly. All the open positions within the organization are
notified through email for helping employees make career
choices. The opportunities for employee’s development / career
enhancement are provided when the Company ventures into
new geographies, undertakes new projects or expands the role
of existing functions. Employees are also offered opportunities
to work in Cross Functional Teams, continuous improvement
initiatives, etc. Entry level recruits are rotated across the
organization, covering all major functions to aid in their
development. Employees also get an access to opportunities
within GMR Group. Enablers for career progression include Job
Rotations, Promotions, and Special Assignments, Deputation
and further education support and multiskilling of employees.
Employees are provided with opportunity to move horizontally
and develop new skill sets. Career progression and succession
planning for senior leadership team includes interventions like
360 degree feedbacks, IDP and Emerging Leaders Program.
Middle management employees are provided with training and
development inputs like IDP, On-the-job training and based on
their performance, appropriate career advancement moves are
initiated. Employees in support staff cadre are also provided
with opportunity to move into line functions if they have
upgraded their qualifications and skill sets (Fig. 5.2-9).
Fig. 5.2-9 Succession Planning Process
Effectiveness of career progression
is tracked by Employee perception
score, Attrition levels in talent group,
Employee’s participation in employee
growth initiatives and Number of job
rotations. Critical positions across
SBUs and Functions are identified
through Talent review process.
Accordingly
Step-in
successors,
Long-term successors and Transition
Managers are identified and mapped
to critical positions. Gaps between
present and desired competency levels
are addressed through Development
Center and Professional Development Dialogue approaches. The effectiveness of succession planning is tracked through various
parameters like - % of key positions filled internally, Ratio of successors for a critical position, Employee perception on effective
succession planning, Number of talent employees covered under ELP/LDP programs.
102
6. Operation focus
6.1 Work Systems
which will use external resources?
At GMR Energy, the work systems are of significant importance
throughout the organization. The work systems design (Fig.
6.1-1) takes into consideration Stakeholders requirements
including our Core Competencies and Strategic objectives.
The overall work system consists of Leadership & Governance,
Operation, Customer and Support systems. In the reviews
(BCM/GCM/GHB) and workshops, the need for changing the
work systems is assessed based on changing requirements
of the stakeholders, including Environmental changes –
Regulations, Business model, and Technology. In FY 14,
taking into consideration multiple challenges like Uncertainty in
regulatory and Policy Environment, Fuel shortage, and transition
from Project phase to operations phase, an organizational redesign initiative was undertaken with McKinsey, based on the
principles of Strategic Business Units (SBUs) with focus on
speed of decision making, profitability, liquidity & Capability
building (Fig. 6.1-2).
6.1 A Work System Design
6.1 A1 Design Concepts
How do you design and innovate your overall WORK
SYSTEMS? How do you capitalize on your CORE
COMPETENCIES? How do you decide which PROCESSES
within your overall WORK SYSTEMS will be internal to
your organization (your KEY WORK PROCESSES) and
Fig. 6.1-1 Processes to Design and Innovate Work System and Identification of Internal & External Processes
103
Fig. 6.1-2 – GMR Energy: Work System
(Fig 1.1-1)
Strategic Themes
Operational System
Customer System
Operational Excellence, Project Execution Excellence
Customer Centricity
Liquidity
Receivables, Divestment Opportunities
Flexible payment terms, Consider Rebates for extended payment
timelines
Profitability
Improvement Projects to enhance Operational Efficiencies e.g. Heat
Rate improvement, APC reduction, Plant Preservation Cost optimization
Adherence to Dispatch Schedule, Reducing unplanned outages
Structure & Process
RASCI, DoP, IMS Certifications, Bhavyatha Implementation, Energy
Sector EHS Framework, Hydro Power Project Management Manual,
Safety Manual for Hydro, Stage Gate Audits
PPA Management Team, Regional Set up for Power Trading
Customers, Key Relationship Managers, Customer Support,
Customer Complaint Management, C Sat
The design of work system aims to synergize the various
functions, and align key processes to serve the stakeholders
in an efficient way. System is devised around our strategic
themes – 1) Liquidity 2) Profitability 3) Structure and process,
guided by our Long term vision, Values and beliefs, and
driven by our core work processes (Fig 6.2-2). Our work
system and processes involve the use of External and Internal
resources. We outsource such activities which are resource
intensive, highly transactional in nature, semi-skilled repetitive
activities, and requiring high skilled expertise. For e.g. 1)
Creation of shared Service Center to support non - core HR &
Finance processes like new hire – profile sourcing, Employee
reimbursements, Vendor payments etc.2) Outsourcing of
IT – Operation support and development work to TCS 3 )
Outsourcing of O & M for Coal Handling and Ash Handling
systems at our Thermal Assets ( GKEL, EMCO).
Capitalizing on Core Competencies
Our identified core competencies (Refer OP – P.1 A2) give
us a sustainable competitive advantage for executing our
key processes efficiently and addressing our stakeholder
requirements. Examples of capitalization on core competency
to improve work system and enhancing stakeholder value is
shown in Fig. 6.1-3
Fig. 6.1-3 Key Work System capitalizing on Core Competency and Delivering Customer Value, Sustainability &
Organizational Success
Work System
Leadership System
104
Capitalizing
element and Core
Competency
Example of Improvements /
Initiatives
Delivering
Customer Value
Achieve
Organizational
Success
Ensure
Sustainability
Launch of IMS system across the
organization
Robust process for
Uninterrupted supply of
Power, Reduced forced
outages, Improving Plant
Availability (Higher PLF)
Meeting AOP Targets,
Process centric culture
Drive process centricity,
Risk mitigation integrated
at each key work process
level
Launch of Hydro Power Project
Management Manual, Bhavyatha
deployment, Member of Global
Executive Council of PMI
Robust process for
Project Management
Project
Completion of Project
within budgeted cost
& time
Risk mitigation integrated
at various stages of Project
Execution
Implementation of RASCI,DOP for
SBU structure
Robust process for
operationalizing SBU
structure
Improving speed of
deployment
Clarity in roles,
responsibilities,
interfaces
Good Governance system
105
Work System
Leadership System
EHS – Launch of EHS framework,
Safety manual for Hydro,
Introduction of Safety Performance
evaluation of Contractors at Pre
bid stage, Behavior based Safety
(NEBOSH Standards) at Thermal
Assets, Multi-level Reviews
Involvement of leadership to
ensure robustness of Execution
Operational System – (RASCI,DOP), O & M through
Operational Excellence Initiatives
(McKinsey)
Customer System
Capitalizing
element and Core
Competency
Delivering
Customer Value
Robust process for
creating Culture of Safety
and Green initiatives.
Improving Plant Safety,
and creating Environment
sustainability
Through Project
Management Manuals,
Bhavyatha Framework,
IMS Implementation
Project, Adherence to
Creation of Robust
Dispatch schedule, Internal operational support
SLAs – (EMCO with
system
Trading, PPA, Logistics)
Sustained Plant
Performance (Fig. 7.1.1 to
7.1.31)
Customer feedback,
Customer support across
Customer life cycle,
Tapping new opportunities
for e.g. banking of power,
REC sale (Fig. 7.1.32),
Increase in OA Customer
base (7.2.8 & 9)
Efficient Data &
Information Management
system
Organizational & Personal
Learning – (Learning
Capture from EMCO,
InterGen, Island Power)
Example of Improvements /
Initiatives
Creation of PPA Management Team
for Long Term Customers, Regional
set up for Trading Customers
Deliver through IMS
processes with focus
on time, cost, quality &
delivery
SAP, PI Server, BPC, Compliance
portal, GMRETL website
Timely Availability of
Performance data & MIS
On time Completion of
Project
BE / IMS / Safety champions at
sites/locations for implementation of
BE initiatives/IMS & Safety systems.
Creating culture of
Continual improvement
Enhancing Operational
efficiencies, Employee
Engagement
MAG Audits /Stage Gate Audits
Process Audits &
Improvements
Enhanced process
Enhanced Compliance
controls leading to reduced
levels
unplanned outages
Training for Contract workmen
(Safety, On the Job, Class Room)
Enhanced workforce
productivity, reduced
rework
Uninterrupted operations /
Power Generation
6.1 A2 Work System Requirements
How do you determine KEY WORK SYSTEM requirements,
incorporating input from CUSTOMERS, suppliers, PARTNERS,
and COLLABORATORS, as appropriate? What are the KEY
requirements for these WORK SYSTEMS?
The key requirements for Work Systems are determined
Ensure
Sustainability
Preparedness of Safety at
workplace (Fig. 7.3.25 to
Higher Safety Standards 7.3.28) Compliance with
site safety & Environment
Norms (7.4.6 to 7.4.15)
Speed up Decision
making process,
Support Reviews, and
identify Improvement
Opportunities
Support System
106
Achieve
Organizational
Success
Conforming to the
requirement of safe and
secure workplace
Good Governance
Engaged & Motivated
workforce (Fig. 7.3.18)
based on the expectations/feedback/inputs from customer
segments, regulators, suppliers, collaborators, partners,
employees, and other Stakeholders in terms of Scope,
Volume, Agility, Frequency, Flexibility needs, Regulatory and
Legal Compliance, Governance, RASCI & DoP requirements,
Customer Satisfaction, Employee Engagement & Satisfaction,
Green requirements like Reduction in Carbon foot prints and
desired performance levels as described in Fig. 6.1-4
Fig. 6.1-4 Work System Requirement
Incorporating Inputs from
Work
System
Design Requirement
Customers
Collaborators/InternalExternal Stakeholders
Safety & Green
Requirement
Business Model robustness for sustainability, Business Development, Entry into
new Markets & Segments, Identifying and implementing new technology for Cost
Leadership
/ Cycle time reduction, Cost Control and High performance work culture, Re-visit
System
Vision & Values and communication to Internal / External Stakeholders, Risk
Assessment & Mitigation, CSR Initiatives, Governance, RASCI & DoP
Customer
System
Excellence in Service Offerings during 1. Business Development, Opportunity
scanning and Customer acquisition, 2. Post Customer Acquisition, and 3. Annual
/ Final Settlement, Agility in auctioning on Voice of Customer, Best in class
Customer Support, Engagement and Complaint Management processes
Operation
System
Asset Management (Thermal Coal, G&L, Renewable), Project Planning and
Execution Management (Thermal, Hydro), Develop & Operate Coal Mines,
Procurement, Coal Sourcing (Domestic & Imported), Logistics(Ports & Shipping),
Coal Trading, Inventory Management, Waste Management, Operational
Excellence, Project Execution Excellence
Support
System
Competency based PMP, Timely support to functions, Ensure Compliance,
Providing required IT Infrastructure & Resources including Communication Tools
(Email, VoIP, Video Conferencing), SAP Support, MIS on AOP Plan vs. Actual
(BPC), Maintaining Environment, Health & Safety Standards, Legal Support,
Business Excellence & Knowledge Management initiatives
6.1 B Work System Management
6.1 B1 Work System Implementation
What are your organization’s WORK SYSTEMS? How do
you manage and improve your WORK SYSTEMS to deliver
CUSTOMER VALUE and achieve organizational success and
SUSTAINABILITY?
Our Work Systems are 1) Leadership system 2) Operational
System 3) Customer System and 4) Support System (Fig.
6.1-2), each comprising of work processes as shown in Fig.
6.2-2. Our Work System aims to ensure meeting of Strategic
Objectives by driving initiatives which continuously contribute
to deliver Stakeholder Value, Profitability, Organizational
Success and Sustainability.
6.1 B2 Cost Control
How do you control the overall costs of your WORK SYSTEMS?
How do you prevent defects, service errors, and rework and
minimize warranty costs or CUSTOMERS’ PRODUCTIVITY
losses, as appropriate? How do you minimize the costs of
inspections, tests, and PROCESS or PERFORMANCE audits, as
appropriate?
Customer
Feedback,
Customer
Satisfaction,
Customer
Complaint &
Resolution,
Voice Of
Customer
Regulatory & Statutory
Requirements, Market Scan,
New Opportunities, Employee
Engagement and Ethical Culture
survey outcomes, Community
Needs, Vendor Satisfaction, Audit
Outcomes, BE OFI’s
GMR Group
Initiatives, OHSAS
& EHS Framework,
Sustainability
Framework GRI
G4, Bijlee & Paani
Projects (Fig. 7.1.96),
Energy Audits by CII,
Emission Levels (Fig.
7.4.6 to Fig. 7.4.13)
There is AOP based cost control focus for each element of
expense across SBUs, Assets, Projects, Corporate Office
and Regional Offices. With Implementation of BPC (Business
Process Consolidation) seamlessly integrated with SAP
platform, Cost monitoring, analysis and control have become
more effective. All expenditures are subject to necessary
approval, and SAP Release strategy aligned with the Energy
Sector DoP guidelines. For on-going projects (CTPP, Bajoli Holi
- Hydro) cost focus is ensured through Bhavyatha processes
(Cost Control & Authorization for Expense). Capability Center
Initiatives (Refer Fig. 6.1-2) to Standardize and indigenize
spares, O&M Contract reviews, Vendor development, Cost
& Budget control ensures focus on monitoring and reduction
of costs. All expense deviations are critically reviewed in
forums like – ORMs, SBU reviews, Project Reviews, BCM and
GCM Reviews. In the current year for Coal Thermal Assets,
the plan is to engage reputed Global Consultant to improve
Cash flows through Process Improvement initiatives. For G&L,
specific targets have been taken to further contain the Plant
Preservation Costs.
“If you are going to achieve Excellence in big things, you develop the habit in little matters.
Excellence is not an exception, it is a prevailing attitude.”
Bhaskar A Rao
CFO – Energy Sector
107
In order to drive sustainable profitable growth, cost optimization exercise was initiated in GEMS led by McKinsey in 2013.
The main objective of the program was to create an aligned roadmap to continue achieving profitable growth, and start
implementation of the most critical lever – Contracting Excellence, with focus on below areas.
1. Conduct a rapid review of its current strategy, in light of changing market conditions
2. Establish an aligned aspiration (e.g. market cap or value creation) and cascade this to specific business initiatives (e.g.
production improvement, capital & infrastructure, procurement and contracting)
3. Prioritize the improvement levers, quantify size of the prize and develop detailed action steps (e.g. procurement
and contracting excellence, mine operations cost reduction, overall equipment efficiency / utilization, mine planning,
infrastructure development, capital planning etc.)
4. Implement procurement & contracting excellence lever immediately to capture tangible impact within 4-6 months.
This has resulted in an annualized savings of $14mn.”
Fig. 6.1-5 illustrates Cost control measures taken across our
work systems. The QA-QC dept. within Capability Center
has deployed a stringent quality plan of audit inspection
and compliance to method statement, factory inspection,
empanelment of vendor/contractor based on quality which
ensures timely actions to prevent defects, errors and reworks.
Concept of ‘Cost of Quality’ is being introduced for our Thermal
Coal Assets as part of BE Practitioners’ program to reduce
rework and, defects (Fig. 6.1-6).
Fig. 6.1-5 Cost Control Measures
Year
FY 12
FY 13
Work System
Cost Control Measures / Initiatives
Impact
Operation Systems
- Capex Optimization in CTPP Project (Raw water reservoir & Ash pond, Non Plant Buildings, Roads &
Drains, Coal Handling Plant, Water Treatment Plant)
- Operational Efficiency improvement CIPs at G&L Assets
Fig. 7.1.92-93-94
Operation Systems
- Capex Optimization in Maru & Aravali Transmission Projects
Fig. 7.1.92
Leadership Systems
- Bhavyatha Implementation at Thermal projects
Support Systems
- IT Capex optimization at Island power Project
Fig. 7.1.92
Operation Systems
- Plant Preservation Cost optimization (Import power reduction, APC Reduction, HVAC Power
Optimization)
- Capex optimization at Bajoli Holi Hydro Project by power house layout optimization
- Spares Indigenization for Coal Mill & Coal Feeder at EMCO
- Minimizing Transit losses of Coal (Pilferage)
- Implementation of Action items identified during CII Energy Audit at EMCO
- For our Solar Plant, Conversion of electric powered solar street lights to a centralized solar power street
lighting system, by using the modules available with us, to reduce Aux power consumption
- Initiated IMS certification, Engagement with TERI to improve Solar Plant performance
- Engagement with Global Consultant to improve Cash flow for Thermal Assets through process
improvement initiatives
Fig. 7.1.93
Leadership Systems
- Cost control thru Stage gate audits for Bajoli Holi, PT BSL Coal mines
- Revisited Energy Sector DoP to support SBU Organization.
- Fraud Risk Assessment
Support System
- Debt Restructuring
FY 14
Fig. 7.5.10
Fig. 6.1-6 Prevention of defects, errors and rework, minimizing cost of inspection, test and audits
Cost Control by
Prevention of Defects,
Service errors and Rework
Minimizing Cost of
Inspection, Tests & Audits
108
Year
Focus Areas (Examples)
Methodology &
Results
2012
GT Reliability improvement at GEL KKD by reducing no. of spurious tripping
Fig. 7.1.93
2013
Improvement in Chiller reliability and availability at GEL KKD
Fig. 7.1.93
2014
DCS logic modification to reduce unplanned outages at EMCO & GKEL
Fig. 7.1.9, Fig. 7.1.23
2014
Supplier Capability Assessment to ensure quality supplies
Fig. 7.1.99
6.1 C Emergency Readiness
Fig. 6.1-7 Workplace Emergency Management Plan
How do you ensure WORK SYSTEM and workplace
preparedness for disasters or emergencies? How does
your disaster and emergency preparedness system
consider prevention, management, continuity of
operations, and recovery?
We have an elaborate Emergency Preparedness and
Response Plan (EPRP) as shown in Fig. 6.1-8, for different
emergency scenarios as 1) Manmade emergency, 2) Natural
Disasters and 3) Systems failure. In line with Energy Sector
EHS Framework, Corporate EHS Department provides
guidelines to Projects, Assets and Corporate/Regional Offices
for formulating site specific EPRP plan. Site team develops
EPRP in concurrence with local internal/external stakeholders
which is reviewed by Corporate EHS and released for
implementation. Emergency Management involves 5 prong
approaches: Prevention, Preparedness, Response, Recovery
and Mitigation. Our process for emergency readiness and to
ensure continuity of business is addressed in Fig. 6.1-7
Fig. 6.1-8 Emergency Preparedness – Systems and Processes (illustrative)
Emergency
Manmade
emergency
Natural
Disaster
Systems
Failure
Nature of Major
Emergency
Preparedness for
Prevention
Preparedness for
Management
Accidents,
Structure Collapse,
Equipment Failure,
Electrocution, Fire, Employees,
Explosion, Labor
Contractor &
Unrest, Local
Customer
Problems, Riots,
Terrorism, Bomb
Threat
Comprehensive
EHS Management
System covering
all sites and offices
which includes
Safety Manual,
Emergency
Response
Plan, HIRA,
EHS Induction,
Safety Meeting,
Special Training,
Supervision,
Internal/ External
EHS Audits
Emergency
Preparedness &
Response Plan for
handling personal
accidents, fire break
out & contingencies.
Tie up with Medical
service providers.
Periodic drills and
Table Top exercise
are conducted as
per plan to assess
awareness &
preparedness
Earth Quakes,
Landslides,
Volcanic eruptions, Employees,
Floods, Cyclone/
Contractor &
Heavy wind,
Customer
Tsunami, Drought,
Epidemics
Earth quake
resistant structural
designs conforming
to IS codes,
obtain information
regarding
emergency from
local disaster
management control
agency of the area
as required, Routine
Medical checkup/
vaccination at site
and nearby, water
quality monitoring,
wellness program
IT & Control
System (DCS,
UPS etc.)
Stakeholder
Impacted
Employees,
Contractor &
Customer
Reputed system
placed. Routine
Maintenance and
Monitoring
Preparedness
for Continuity of
Operations
Recovery
Responsibility
Result
Periodic drills and
Table Top exercise.
Periodic review of
Hazard Identification
& Risk Assessment
Adequate
insurance
cover.
Medical
treatment,
recovery
programs
and their
close
monitoring
O&M Head & Plant
Head
Fig. 7.3.31
Emergency
Preparedness &
Response Plan in
conjunction with
contactors, local
disasters authorities
to prevent /
minimize loss of life
and assets.
Tie-up with medical
service providers
Mechanism for
salvage operation
to ensure quick
turnaround and
resumption of work
Adequate
insurance
cover. By
repair,
recovery
programs
and their
close
monitoring
Plant Head
Fig. 7.3.31
Functionality
ensured by design
Ensuring required
environment like
temperature for the
Adequate
systems as and
insurance
where required, On
cover
line System testing for
auto change over
O&M Head & Plant
Head
IT Systems
Availability
& DR
Results
109
6.2 Work Processes
6.2 A Work Process Design
6.2 A1 Design Concepts
How do you design and innovate your WORK PROCESSES to
meet all the KEY requirements? How do you incorporate new
technology, organizational knowledge, product excellence, and
the potential need for agility into these PROCESSES? How do
you incorporate CYCLE TIME, PRODUCTIVITY, cost control, and
other efficiency and EFFECTIVENESS factors into the design of
these PROCESSES?
Processes are designed through step-by-step adoption of
SIPOC (S – Supplier, I – Input, P – Process, O – Output,
C – Customer). Fig. 6.2-1 helps the process owner to
systematically design and innovate the work process. Process
objectives are clearly set and defined prior to designing of the
work process. Each process has a process owner who leads
the implementation and monitoring of process. In process &
End of process measures are defined during mapping of each
work process. The process owner critically examines the
steps taken to address customer needs, bridge technological
gaps, training needs, and resource requirement etc. in order
to ensure that process design requirements are met. Regular
Measurement and monitoring help control the final outcomes
e.g. Plant Efficiency, Cost of Generation, Project execution
timelines etc.
Fig. 6.2-1 Process for designing and innovating work processes
Recurring deficiencies are highlighted during reviews and respective process is modified using DMAIC approach. E.g. REC
Application cycle time reduction, Power Trading Billing cycle time reduction, Revisiting Energy Sector DoP and rolling it out to
support SBU Structure.
“Productivity is never an accident. It is always the result of a commitment to excellence,
intelligent planning, and focused effort.”
Raghunandanan GK
President – G & L
6.2 A2 Work Process Requirements
How do you determine key work process requirements? What
are your organization’s key work processes? What are the key
requirements of these work processes?
Process to determine the work process requirement is
described in Fig. 6.2-1. The process requirements are reviewed
110
through SBU Head reviews, BCM & GCM Reviews, Customer
Meetings, Community Meetings, Vendor Interactions (Refer
Fig. 4.1-5). Fig. 6.2-2 describes Various Key work processes
in GMR Energy, Work process requirements, Mode of
determining key work requirements, various control measures
in place and In-process and End-of-Process measures for
these work processes.
Fig. 6.2-2 Key Work Processes, Work Process Requirements, Determination of work process requirements, & Measures
Sr,
No.
Key Work
Processes
Work Process
Requirements
Mode of
determining key
requirements
End-of-Process
Measures (Outcome
Measures)
Control Measures
In-Process Measures
Results
GHB, GCM, BCM
& SBU Head
Reviews, HR
Council, Internal/
External Audits
Adherence to Strategic
Planning Process,
Skip Level Meetings,
Town Hall Meetings,
No. of CSR Projects
(GMRVF), % of
Employees covered
under COBCE, No. of
CIPs and Employees
involved, Employees
covered under various
Reward & Recognition
GHB, GCM, BCM
& SBU Head
Reviews, Monthly
MIS, AOP Review
Implementation of action
Adherence to process
plan and achievement
timelines, Achievement
Fig. 7.4.1
of Targets as specified
of critical milestone.
in BSC
LEADERSHIP & GOVERNANCE SYSTEM
1
2
Leadership,
Communication
& Continual
Improvement
Set Organization vision
& values, Governance,
Social Responsibility,
Promote Legal & Ethical
Behavior, Balancing stake
holder expectation, Create
sustainable Organization,
Achievement of strategic
objectives Empowerment,
Employee & Stake Holder
communication, Reward &
Recognition
Strategy Planning
(SPG)
Formulation of sector &
SBU Strategy, Strategic
Objectives, Strategy
Deployment Plans and
initiatives. Balancing
Stakeholders needs,
AOP’s
Group vision;
Sankalp 2020,
Environment
Scan, competitive
analysis, Internal
and External
Stakeholder inputs,
Risk Assessment
BD Plan, Opportunities
for new projects and
acquisition, Due diligence,
Final Bid, project specific
clearances, Divestment
opportunities
Market Scan,
Environment
scan, Internal
and External
stakeholder inputs,
Sector Strat Plan
SBU Review , AOP
review, Project
specific reviews
Adherence to process
timeline for Due
diligence, Final Bid
and Project plan.
Adherence to pro-rata
targets in BD-BSC
Project delivery within
Scope, Budget,
Quality, Time, Safety
and Environmental
requirements, Project
specific clearances,
Continuous Improvements
Project
Management Plan,
AOP Targets,
Project schedules,
Quality Assurance
Program, Stake
holder inputs
Daily, Weekly,
Monthly Reviews by
Project Head; GCM/
BCM/ SBU Heads
Review, Project
Audits – Bhavyatha,
MAG
AOP Plan vs. Actual,
Adherence to S-Curve,
Cost Curve, Quality
Assurance record,
EHS measures, CIPs
AOP Targets (Plant
Performance, EHS,
Compliance, Financials),
AOP, Capability
Center Road Maps
(Benchmarking
Targets, Best in
class, Energy
Audits, EHS
Audits, Process
Audits, Cost &
Budget Control),
Management
Reviews,
Stakeholder Inputs
ORM, Daily,
Weekly, Monthly
Reviews by O&M,
Plant Head & SBU
Head, Toolbox
meetings
Unplanned Outages,
Improvement Projects,
Adherence to IMS
Processes, No. of
suggestions, Site EHS
Compliance, APC
Adherence to AOP
Targets, Coal supply
within Budgeted cost,
Quality & Timelines
AOP, Management
Reviews,
Stakeholder –
External/ Internal
ORM, Daily Review,
Review with SBU
Heads, Monthly
Coal Sourcing
Reviews
Adherence to Coal
Plant Availability, Cost of
quality & logistics cost, Generation
Transit Losses
Adherence to
AOP Targets, Coal
transportation within
Budgeted cost, Quality &
Timelines
AOP, Management
Reviews,
Stakeholder –
External/ Internal
AOP Reviews, Daily Adherence to Quality & Logistic Cost, On
/ weekly/Monthly
cost, Handling Losses, Time Performance of
Reviews
Lay Time, Transit Loss, Shipment
Demurrage
Group vision and
values, Stakeholder
Engagement,
Learning from other
companies,
Statutory
Requirements,
Employee
Engagement survey
% achievement of
Strategic objectives,
Employee engagement
score, % completion
of Town hall outcome,
Communication
Effectiveness,
No. of CIPs completed,
Ideas generated
Fig. 7.4.1, Fig.
7.3.18, Fig. 7.1.9293-94, Fig. 7.1.-95
OPERATION SYSTEM
3
Business
Development Renewable, Power
Trading
Project Mgt.
4
5
(Thermal, Hydro
Transmission)
Coal Assets
Management
Operation &
Maintenance of
Assets (G&L,
Coal, Renewables,
Transmission)
Coal sourcing
6
7
(Domestic/
Imported)
Logistics (Port &
Shipping)
Bids submitted vs. won,
Adherence to Project
Fig. 7.1.100 to Fig.
Cost, Quality & Timeline,
7.1.104
and Adherence to
Compliance
Project delivery within
Budgeted cost and
timelines,
Adherence to
Compliance
Gross Generation, Net
Power Export, Cost of
Generation, Heat Rate
Fig. 7.1.100 to Fig.
104
Fig. 7.1.1, Fig.
7.1.2, Fig. 7.1.15,
Fig. 7.1.16
Fig. 7.1.14, Fig.
7.1. 5
Fig. 7.1.19, Fig.
7.1.29
Fig. 7.1.4, Fig.
7.1.18, Fig.
7.1.12-13-14, Fig.
7.1.27-28-29
On time
performance
111
Sr,
No.
8
Key Work
Processes
Coal Trading
Work Process
Requirements
Adherence to AOP
Targets
Mode of
determining key
requirements
SBU Strat Plan &
AOP (Coal Assets),
Stake Holder
Requirements –
Internal/ External,
Market Scan
Control Measures
In-Process Measures
Daily, Weekly,
Meeting AOP Target,
Monthly Reviews by Coal Trading Margin,
SBU Head
New Customer Added
End-of-Process
Measures (Outcome
Measures)
Revenue, Volume of
Coal Traded
Results
Coal Trading
Revenue, Volume of
coal traded
CUSTOMER SYSTEM
9
SBU Strat Plan
& AOP, Internal
(EMCO, GKEL,
GEL KKD, GPCL,
Customer
Power dispatch as per
VPGL) & External
Management (PPA existing PPA’s; Trading
(DISCOMS, Utility’s,
Management,
power of GMR Assets and
Generators, Open
Power Trading)
other Generators
Access Customers)
Stake Holder
Requirements,
Market Scan
Daily, Weekly,
Monthly Reviews
by Power Trading,
PPA Management,
O&M Head, Plant
Head & SBU Head.
BCM, GCM & GHB
Review
Meeting AOP Target,
Customer Workshops,
interaction, visits,
Compliance to
Schedule of supply,
Complaint Received/
Resolved, Repeat
Complains, Trading
Margins, New
Customer Added,
Billing Cycle time
ORM, Daily, Weekly,
Monthly Reviews by
O&M Head, Plant
Head. SBU Head,
BCM, GCM & GHB
Review
Completion of baseline
Environment Clearance
EIA and related
Obtained.
studies.
No. of Reportable
Site Safety
Accidents
Performance and
AOP target Measures Safety Awards/
– LTFIR, FIFR, Fire
Certifications
Incidents
Volume of Power Sold
(PPA/ Power Trading);
Fig. 7.1.2, Fig.
Volume of Power Traded; 7.1.16, Fig. 7.1.30,
Customer satisfaction
Fig. 7.2.1, Fig. 7.2.6
survey Feedback
SUPPORT SYSTEM
Environmental Clearances
and necessary approvals,
10
Environment
Health and Safety
Safe & Healthy Work
Environment
Compliance to Statutory &
Regulatory Requirements
112
Statutory,
Regulatory &
Approvals, Climate
Change Mitigation
Initiatives, Water
Conservation
Initiative, Proactive
Hazard Analysis
and Employee
Engagement
Feedback, IMS
& Safety Audits,
HAZOP Study
Strategic
Planning Process,
Stakeholder
Requirements,
Fund Availability,
Financial Policies,
Financials and MIS,
Audits, Accounting
Working Capital,
Standards. Long
Budgetary Controls, Cost
Term & Short
Control, Returns; Loan
Term Plans; Risk
Interest Cost, Compliance
Management. and
to Statutory Requirements
Past Learning,
Debt And Funding
Forecasting and
Management
Adherence of
Timelines ( MIS,
Monthly MIS,
Budget calendar,
Quarterly Board and Internal/External
Audit Committee
Audits), Timely
Review, Weekly
Closing of Accounts,
Meeting with SBU
Accuracy of Data,
Head
Compliance with
Taxation Laws, Timely
Arrangement of Funds
11
Finance and
Accounts
Management
12
Technical Support ,
Progress Review, Quality
Capability Building
Assurance, Engineering,
(Capability Center)
Process Improvement,
Center of Excellence
AOP Targets,
Stake Holder
Requirements –
Internal / External,
Survey Report,
Market Scan
13
Legal support to SBUs
for quick resolution of
Legal Management
Petitions and achieving
success on litigations
SBU Heads Inputs,
Petitions filed by
Review with SBU
peer companies,
Head, BCM, GCM
Regulations being
& GHB
challenged in power
sector
ORM, Review with
SBU Head, BCM
No. of Processes
implemented,
Benchmarking,
Implementation of BE
Practitioners Action
plan
Fig. 7.3.25
Effective Cost of Capital,
Variance analysis,
Accuracy of MIS reports
and budgets, Completion
of quarterly accounts,
Fig. 7.1.42
reduction of overdue
receivables, Timely
payments for project
expenses, monthly
reconciliation
Progress on Road Map
Compliance with Legal
Requirements, Timely Success in Legal
updation of Status on litigations, Resolution of
litigations on Legal
Petitions
portal
Adherence to
Capability Center
Roadmap
Legal litigations and
petitions won
Sr,
No.
14
15
16
Key Work
Processes
Work Process
Requirements
Mode of
determining key
requirements
Control Measures
In-Process Measures
Procurement
Delivery of Material /
Services within stipulated
Time and within Budget
and as per required
Quality
AOP Targets,
Stake Holder
Requirements
(Asset, Project
Sites)
ORM, Daily, Weekly.
Monthly Review
PR-PO Cycle, GRN
with Stake holders
IT
Thorough understanding
of Business processes,
work flow, automation to
drive effectively crosses
functional teams in Plant
& process automation
industry vertical, IT
Systems & resource
availability to individual
users/functions
Aligned with
business strategy
and approved AOP,
business case
based initiatives
GCIO, BCM, GCM
reviews
Human Resource
Management
Competent and
motivated talent pool in
required strength, high
performance culture,
Capacity & Capability
of workforce, Engaged
& satisfied workforce,
Leadership capability
No. of training
programs, Adherence
CHR council review, to - Training
AOP Targets, HR LT monthly MIS,
calendar, Hiring
and ST plans
monthly reviews,
plan, Communication
BCM reviews
Calendar, No. of
Employees covered
under R&R
6.2 B Work Process Management
6.2 B1 Key Work Process Implementation
How do your KEY WORK PROCESSESS relate to your
WORK SYSTEMS? How does your day-to-day operation of
these PROCESSES ensure that they meet KEY PROCESS
requirements? What are your KEY PERFORMANCE MEASURES
or INDICATORS and in-process MEASURES used for the control
and improvement of your WORK PROCESSES?
The designed work processes are implemented through
SIPOC/IMS framework. The process document (As per
IMS design) – covering purpose, process flow, interfaces,
in-process measures, output measures or indicators (Fig
6.2-2), Work Instructions/Operating Guidelines, forms,
records and references - are available with the Operation
Efficiency/Planning Team at Sites. To ensure that the key
design requirements are met, the workforce allocation is
done as per organizational workforce capability /capacity
needs. The necessary infrastructure, technology, equipment/
material, expertise (Fig OP. 11) for process management
are made available. Internal & External training programs
on tools/techniques/skills are conducted to enhance process
management capabilities of workforce. Awareness sessions
are coordinated by Business Excellence Team, and process
owners to create the understanding about the process steps &
measures. For e.g. Bhavyatha Process workshop conducted
by BE Team for Hydro at Bajoli Holi, Process Assessment
workshop for Thermal Assets, and key Corporate processes.
All in-process and output process measures are reviewed
Number of business
process automated
and adopted, IT
Systems Availability
End-of-Process
Measures (Outcome
Measures)
Results
Award of PO/SO,
Supplier Satisfaction
Fig. 7.1.99
User Satisfaction,
Process Improvement
through IT
Fig. 7.1.105
Employee Engagement
Score, Achievement of
Short term and Long
term HR Plans
Fig. 7.3.18, Fig.
7.4.1
periodically through MIS, and various reviews that take place at
SBU/BCM/GCM/GHB level. Deviations from desired outcomes
are analyzed for any gaps in process design, deployment,
resource allocation etc. and CAPA is taken accordingly (Ref
Fig 4.1-7).
6.2 B2 Supply-Chain Management
How do you manage your supply chain? How do you ensure that
suppliers you select are qualified and positioned to enhance
your PERFORMANCE and CUSTOMER satisfaction? How do
you evaluate supplier PERFORMANCE? How do you deal with
poorly performing suppliers?
Coal allocation for our Thermal Assets (EMCO & GKEL) has
been obtained through FSA with Coal India Limited, for 80-85
% of installed capacity. This allocated coal is transported to
our sites by Rail. Balance requirement of Coal is met through
imported coal planned from our co-owned mines in Indonesia,
and from Open market/E Auction mode.
Natural gas supply to our Gas based Assets (GVPGL & GELKKD) is done through a GSPA with RIL and a GTA with GAIL and
RGTIL. However in view of the current scenario of gas supply
from KG basin, option of importing Liquefied Natural Gas is
being evaluated which includes Liquefaction of Natural gas at
the loading port, transportation by LNG tankers, regasification
of LNG at discharge port, and inland transportation of gas
through pipeline, mobile cascades, rail, or road.
Project Procurement Process is carried out through the
Group procurement process with support from respective
113
C & C teams at SBU/sites, Owners Engineer, it consists
of preparation of technical specifications, floating of bids,
finalizing of GCC and SCC, identifying of global/domestic
suppliers, floating of RFQs, pre-bid meetings, evaluation of
techno-commercial bids, quotations, submission of technical
evaluation reports, commercial cost evaluation, approval as
per DoP, and placing of order. Warranty spares for our Thermal
Coal Assets have been supplied by OEM as part of Project
Construction Agreements; additionally critical spares have
been identified and a robust process of sourcing the same
from other channels is being put in place. To contain cost and
lead time, process to develop new vendors/indigenize critical
spares has been initiated.
Supplier Selection: A data base of all approved suppliers
(meeting the supplier selection / qualification criteria) across
GMR group is available as a pre-approved vendor master
in SAP MM Module. New vendors can register themselves
through E-Smart Vendor registration process available on
GMR Website.
Supplier Performance Evaluation: Suppliers’ performance
is evaluated through a systematic process managed by
Central Procurement Dept. For Projects vendors, the selected
suppliers are evaluated based on Supplier Analysis Score
Card which comprises 6 criteria’s of performance evaluation:
Cost, Financial Strength, Technical Strength, Execution
Capability, Corporate Governance, and Commercial Terms &
Conditions. For Assets, selected vendors are evaluated based
on 4 criteria’s – Quality, Cost, Delivery and Management &
System. An outcome of the Suppliers Evaluation is shared
with respective suppliers. Suppliers with consistent poor
performance are blacklisted from the approved master vendor
list.
6.2 B3 Work Process Improvement
How do you improve your WORK PROCESSES to achieve better
PERFORMANCE, reduce variability, and improve products?
The core of our Group’s success is our commitment to excellence in project execution. To this end, we initiated a project on achieving
excellence in project execution, which has been deployed along with McKinsey. The objectives of this exercise are two-fold:
•
Develop a “GMR Way” of Project Management, which is customized to our particular business model and culture, and
•
Deliver time and cost optimization for our existing projects, and institutionalize this approach for future projects
In order to achieve Excellence in Project Execution, an engagement program with McKinsey was taken up to map, document, and
codify the GMR way of Executing a Project encompassing all key stages of Project life cycle – Assess, Select, Define, Execute,
Operate.
Subsequently, these processes were deployed at our Coal based Projects to the extent applicable during the life cycle. This was
followed by implementation of Project Bulls Eye at GKEL aimed at improving productivity through micro planning, idea generation,
and strengthening of review architecture.
We further leveraged organizational learning on Bhavyatha, Bulls Eye, through an In house engagement program to prepare
proactively for our Hydro business. As a result, a comprehensive “Hydro Power Project Management Manual” using a 3 pronged
approach centered on: Bull’s Eye learning’s (GKEL), Bhavyatha and BE framework detailing out the principles of Organization design,
Structure, Roles, Responsibilities, Interfaces has been put in place for uniform adoption by our upcoming Hydro Projects.
BE Practitioners workshop at EMCO
114
BE Practitioners workshop at GKEL
Basic trigger to identify work process improvement opportunities
are strategic objectives, stretched goals and consequent
process outcomes in line with organizational challenges. Fig.
6.2-3 illustrates process for improving and innovating work
processes. All KPIs are monitored at Corporate/SBU as well
as functional levels through Balanced Scorecard, Monthly MIS,
and Daily Reports, etc. (Ref Fig 4.1-7) Transactional feedback
is the mechanism through which the feedback is captured from
Internal Suppliers/Customers, Process owners, stakeholders
etc. for day to day management of the process. Approaches like
review mechanisms, Internal SLA’s, deployment of PM & MM
modules for Thermal Assets, Improvement Projects, SWOT,
etc. are used to achieve better performance of processes and
improve customer services.
Fig. 6.2-3 Process for improving and innovating work processes
Various analytical and quality tools (OSI-PI, variance, trend,
root cause, 7 STEP problem solving process, brainstorming,
etc.) are used to improve processes and reduce variability.
Deployment of Idea Factory, Bhavyatha for Hydro/Thermal,
Improvement Projects, BE Practitioners program creates a
sector wide focus on building a culture of continual improvement.
Quality & Safety awareness is created through Quality weeks,
and internal quality audits. Safety week and audits are being
conducted periodically throughout the year. To prevent the
recurrence of variations/deviations, CAPA is identified to
change/modify the process if required, or, take actions such as
(i) Improving awareness (ii) Discipline in adhering the process
guidelines (iii) Training interventions for workforce capability
issues (v) R&R for improvement projects (Fig. 7.1.92-93-94,
Fig. 7.3.8). IMS audits are conducted to identify the process
gaps and propose CAPA towards IMS deployment across all
processes. Process audits are being planned with focus on
identification of improvement opportunities. Based on the IMS
design, each process and its sub processes are reviewed by
the respective process owners periodically for deviation from
intended outcomes and design, cycle time, productivity and
the cost incidence of the process. These deviation(s) form the
basis for identification of opportunities for improvement and
updating as per new process requirements & business needs.
115
7.1 Product and Process Outcomes
Fig. 7.1.1 : EMCO -‐ Gross Power Genera7on (MU's) 5,000.00 Fig. 7.1.2 : EMCO -‐ Power Export at Bus Bar (MU's) 4,538.92 4,500.00 4,000.00 3,597.34 4,000.00 3,000.00 3,000.00 2,500.00 2,500.00 2,000.00 2,000.00 1,500.00 500.00 560.41 313.47 477.14 1,500.00 851.92 1,000.00 500.00 -‐ -‐ Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 100.00% 86.59% 86.36% 85.00% 90.00% 80.00% 50.00% 47.90% 90.00% 43.31% 42.30% 30.00% 20.00% 20.00% 10.00% 10.00% Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 CERC 0.00% Fig. 7.1.5 : EMCO -‐ Heat Rate (Kcal/kwh) 116
85.00% 57.76% 50.00% 40.00% 2,587 92.99% 73.45% 76.32% 60.00% 30.00% 2,650 2,600 2,550 2,500 2,450 2,400 2,350 2,300 2,250 2,200 2,150 2,100 89.12% 86.59% 70.00% 40.00% 0.00% 770.77 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 100.00% 80.00% 65.73% 70.00% 502.71 277.32 424.53 Fig. 7.1.4 : EMCO -‐ Plant Availability (%) Fig. 7.1.3 : EMCO -‐ PLF (%) 60.00% 3,239.09 3,500.00 3,500.00 1,000.00 4,127.64 4,500.00 Fig. 7.1.6 : EMCO -‐ Aux. Power Consump;on (%) 14.00% 2,607 12.00% 2,461 2,425 2,405 2,300 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 CERC 2,342 10.00% 12.31% 11.04% 10.30% 9.53% 9.96% 9.06% 9.00% 8.00% 6.00% 4.00% 2.00% Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 CERC Business Excellence in GMR Energy | FY 2013-14
0.00% Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 CERC Fig. 7.1.7 : EMCO -‐ Sp. Oil Consump6on (ML/kwh) 9.00 8.56 3.50% 8.00 2.50% 6.00 4.54 5.00 2.00% 4.00 1.48 2.00 0.68 1.00 1.00% 1.14 0.86 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 0.00% 90 104% 80 102% 70 100% 60 98% 50 96% 40 25 30 14 10 1 5 94% Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 86% 4.00 2.00 Q3-‐FY14 Q4-‐FY14 2.36 2.40 2.14 2.10 2.09 2.00 1.50 1.00 -‐ Q1-‐FY14 Q2-‐FY14 0.50 -‐ Q3-‐FY14 Q4-‐FY14 0.00 4.36 3.56 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 Fig. 7.1.14 : EMCO -‐ Cost of Genera8on (F+V) (Rs/
kwh) 9.00 3.92 8.25 8.00 7.00 2.64 6.00 2.21 1.73 5.00 4.00 1.50 3.00 1.00 2.00 0.50 1.00 0.00 Q2-‐FY14 3.89 2.50 3.50 2.50 Q1-‐FY14 3.00 Fig. 7.1.13 : EMCO -‐ Fixed Cost (Rs/kwh) 3.00 93% 3.50 15.12 5.00 4.00 98% Fig. 7.1.12 : EMCO -‐ Variable Cost (Rs/kwh) 4.50 22.16 10.00 4.50 102% 100% 88% 15.00 5.00 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 90% 7 20.00 -‐ 0.83% 92% Fig. 7.1.11 : EMCO -‐ Loss of Genera7on (MU's) 25.00 0.66% Fig. 7.1.10 : EMCO -‐ Adherence to Export Schedule (Actual Export / Scheduled Export) (%) 93 100 0.67% 0.50% Fig. 7.1.9 : EMCO -‐ Unplanned Outages (Nos.) 0 1.86% 1.50% 3.00 20 3.00% 3.00% 7.00 -‐ Fig. 7.1.8 : EMCO -‐ DM Water Consump;on (%) Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 0.00 5.92 6.32 4.78 3.83 4.30 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 Business Excellence in GMR Energy | FY 2013-14
117
Fig. 7.1.15 : GKEL -‐ Gross Power Genera7on (MU's) 7,000.00 Fig. 7.1.16 : GKEL -‐ Power Export At Plant Bus bar (MU's) 6,079.70 6,000.00 5,000.00 5,000.00 4,000.00 4,000.00 3,000.00 3,000.00 2,000.00 2,000.00 1,000.00 -‐ 636.96 886.00 358.78 55.37 1,000.00 -‐ Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 Fig. 7.1.17 : GKEL -‐ PLF (%) 90.00% 85.00% Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 100.00% 88.06% 70.00% 85.00% 54.67% 60.00% 50.00% 40.00% 26.95% 30.00% 30.00% 20.00% 9.50% Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY15 CERC 0.00% Fig. 7.1.19 : GKEL -‐ Heat Rate (Kcal/kwh) 2361 2355 2400 2342 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY15 CERC Fig. 7.1.20 : GKEL -‐ Aux. Power Consump=on (%) 3000 2362 19.53% 10.00% 0.00% Q1-‐FY14 43.31% 50.00% 36.59% 40.00% 2500 797.00 80.00% 60.00% 0.00% 574.83 90.00% 70.00% 10.00% 321.47 48.78 Fig. 7.1.18 : GKEL -‐ Plant Availability (%) 79.36% 80.00% 20.00% 5,532.00 6,000.00 2,425 2000 24.00% 18.00% 17.19% 1500 10.93% 10.66% 10.00% 12.00% 1000 9.00% 9.00% 500 0 6.00% Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 CERC 0.00% Fig. 7.1.21 : GKEL -‐ Sp. Oil Consump9on (ML/kwh) 3.50 3.23 2.50% 2.00 2.00% 1.33 1.50 1.00 1.00 118
3.00% 3.00% 2.55 2.50 0.00 Fig. 7.1.22 : GKEL -‐ DM Water Consump=on (%) 3.50% 3.00 0.50 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 CERC 0.98 0.00 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 Business Excellence in GMR Energy | FY 2013-14
1.50% 1.00% 0.50% 0.00% 0.72% 0.45% Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 1.01% Q4-‐FY14 AOP FY15 Fig. 7.1.23 : GKEL -‐ Unplanned Outages (Nos.) 5 4 4 4 3 3 2 2 1 1 1 0 0 0 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 Fig. 7.1.24 : GKEL -‐ No. of Startup exceeding specified @melines 6 5 5 4 3 2 2 2 1 1 1 0 0 0 0 Q1-‐FY14 0 0 0 Q2-‐FY14 0 Q3-‐FY14 Cold Start up -‐ 4.5 hrs Q4-‐FY14 Warm Start up -‐ 2.5 hrs Fig. 7.1.25 : GKEL -‐ Loss of Genera7on (MU's) 6.00 5.34 60.00 3.91 40.00 30.00 2.00 20.00 -‐ Q1-‐FY14 Q2-‐FY14 0.07 Q3-‐FY14 -‐ Q4-‐FY14 36.98 Q1-‐FY14 Q2-‐FY14 14.00 3.19 3.00 12.00 2.50 10.00 2.00 1.60 1.50 Q3-‐FY14 Q4-‐FY14 Fig. 7.1.28 : GKEL -‐ Fixed Cost (Rs/kwh) Fig. 7.1.27 : GKEL -‐ Variable Cost (Rs/kwh) 1.71 1.39 6.00 4.00 0.50 2.00 -‐ Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 12.48 8.00 1.00 -‐ 38.56 10.00 1.00 3.50 51.14 47.52 50.00 3.00 -‐ AOP FY15 Fig. 7.1.26 : GKEL -‐ Inventory (Rs. Crs) 5.00 4.00 AOP FY14 Hot Start up -‐ 1.5 hrs -‐ 4.77 3.90 1.96 -‐ Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 Business Excellence in GMR Energy | FY 2013-14
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Fig. 7.1.29 : GKEL -‐ Cost of Genera9on (Fixed
+Variable) (Rs/kwh) 18.00 Fig. 7.1.30 -‐ Volume of Power Traded (MU's) 7000.00 15.67 16.00 6000.00 5000.00 14.00 12.00 4000.00 10.00 8.00 3000.00 6.37 5.29 6.00 3.67 4.00 2.00 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 AOP FY14 AOP FY15 Fig. 7.1.31 -‐ Power Trading Revenue -‐ Sale of Power (Rs. Cr.) 2834.98 3000.00 2500.00 0.00 604.84 559.39 FY11 FY12 701.45 8.47 7.23 4.00 423.66 FY13 2.00 FY14 AOP FY14 100% 100% 100% 100% 100% 0.00 40% 20% 20% FY13 FY14 AOP FY14 70000 60472 60000 52186 50000 47280 40000 30000 20000 0 911 FY11 FY12 FY13 FY14 Business Excellence in GMR Energy | FY 2013-14
AOP FY14 FY11 FY12 FY13 FY14 AOP FY14 100% 100% 40% FY12 0.26 120% 60% FY11 0.00 Fig. 7.1.34 : Success Rate in Tenders -‐ Power Trading (%) 60% Fig. 7.1.35 -‐ No. of REC's sold (Nos.) 120
AOP FY14 11.45 12.00 80% 0 FY14 Fig. 7.1.32 : Sale of RECs (Rs. Cr.) 80% 10000 FY13 14.00 Fig. 7.1.33 : Compliance to Terms & Condi9ons of Contract agreement -‐ Power Trading (%) 0% FY12 6.00 500.00 100% FY11 1038.24 8.00 1500.00 0.00 1587.43 10.00 2000.00 1000.00 2000.00 2350.84 1687.19 1000.00 -‐ -‐ 120% 6447.19 0% 30% FY11 25% FY12 31% FY13 42% FY14 AOP FY14 Fig. 7.1.37 : Contracts awarded (Bilateral) (Nos.) Fig. 7.1.39 -‐ Compliance to schedule of supply -‐ Power Trading (%) 60 48 50 40 30 16 20 10 0 0 0 FY11 FY12 FY13 FY14 AOP FY14 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 18 21 16 20 7 16 16 AOP FY14 16 8 6 6 4 0 FY11 140.00 FY12 FY13 FY14 AOP FY14 0 75.09 64.99 1,885 20.00 1,855 AOP FY14 FY13 FY14 AOP FY14 1,850 5.00% 3.69% 1,870 FY14 AOP FY14 1,862 FY11 FY12 FY13 Fig. 7.1.45 : GPCL -‐ PLF (%) 4.58% 4.50% 1,870 1,866 Fig. 7.1.44 : GPCL -‐ APC (%) 3.60% FY14 1,881 1,865 1,860 3.66% FY13 Fig. 7.1.43 : GPCL -‐ Heat Rate (Kcal/kwh) 40.00 FY12 FY12 1,870 60.00 FY11 FY11 1,875 93.92 100.00 2 1,880 116.63 120.00 3.79% 60.00% 51.82% 50.65% 47.71% 50.00% 3.50% 2.50% 40.88% 36.15% 40.00% 3.00% 30.00% 2.00% 20.00% 1.50% 1.00% 10.00% 0.50% 0.00% FY14 8 Fig. 7.1.42 : Receivables -‐ (Yearly Average) -‐ Power Trading (Rs. Cr.) 4.00% FY13 10 5 0.00 FY12 80.0 12 10 80.00 FY11 82.0 14 15 0 84.0 Fig. 7.1.41 : Billing Cycle 1me -‐ (GMRETL to OA Clients) (Days) Fig. 7.1.40 -‐ Unplanned outages / Devia9ons impac9ng supply -‐ Power Trading (Nos.) 25 100.0 99.7 FY11 FY12 FY13 FY14 AOP FY14 0.00% FY11 FY12 FY13 FY14 AOP FY14 Business Excellence in GMR Energy | FY 2013-14
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Fig. 7.1.46 -‐ GPCL -‐ Cost of Genera7on (Rs/kwh) 14 120.00% 11.14 12 11.55 11.49 9.85 10 8 100.00% FY11 FY12 FY13 FY14 AOP FY14 0.00% Fig. 7.1.48 -‐ GPCL -‐ Maintenance Index (Rs/kwh) 0.32 0.29 0.25 0.13 AOP FY14 13.20% 4.00% 0.05 2.00% 0.00% FY12 FY13 FY14 5.47% 6.00% AOP FY14 1.67% FY11 1.25% 0.75% FY12 FY13 FY14 1600.00 120 92 100 99 92 1200.00 800.00 60 1350.00 1400.00 1000.00 62 739.76 625.00 600.00 40 0.00 FY13 FY14 AOP FY14 5.59 5.03 4.51 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 2500 4.72 4.84 4.00 2184 2000 1500 3.00 1000 2.00 Quarterly Target Fig. 7.1.53 : GVPGL -‐ Import Power (MWH) Fig. 7.1.52 -‐ GEL KKD -‐ Plant O&M Cost (Rs. Crs) 6.00 502.72 200.00 20 FY12 531.24 400.00 23 FY11 AOP FY14 Fig. 7.1.51 -‐ GEL KKD -‐ Import Power (MWH) Fig. 7.1.50 -‐ GPCL -‐ Forced Outages (Nos.) 1252 1020 1095 1075 Q3-‐FY14 Q4-‐FY14 500 1.00 122
FY13 Fig. 7.1.49 -‐ GPCL -‐ Forced Outages (%) 14.00% 0.10 0.00 FY12 8.00% 0.17 FY11 FY11 10.00% 0.22 0.15 5.00 FY14 70.82% 12.00% 0.20 0 96.60% 20.00% 0.35 80 93.76% 40.00% 2 0.00 88.54% 60.00% 4 0.30 97.71% 80.00% 7.52 6 0 Fig. 7.1.47 -‐ GPCL -‐ Plant Availability (%) 0 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 Business Excellence in GMR Energy | FY 2013-14
Quarterly Target Q1-‐FY14 Q2-‐FY14 Quarterly Target Fig. 7.1.55 : GVPGL -‐ Admin & FMS Cost (Rs. Lakhs) Fig. 7.1.54 : GVPGL -‐ Plant Preserva8on Cost (Rs. Lakhs) 14.00 12.46 11.70 12.00 8.00 8.76 20.00 7.01 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 Quarterly Target 0.00 Fig. 7.1.56 -‐ GREL -‐ Import Power (MWH) 1200 822 820 20.00 10.00 200 5.00 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 Quarterly Target 0.00 14.00 12.68 10.07 9.12 19.53 Q1-‐FY14 13.27 Q3-‐FY14 Q4-‐FY14 Quarterly Target 45.00 40.98 42.56 37.59 40.10 20.00 15.00 2.00 10.00 5.00 Q3-‐FY14 Q4-‐FY14 Quarterly Target 0.00 Fig. 7.1.60 : Gujarat Solar -‐ Power Export (at Bus Bar) (MU's) 45.00 Q2-‐FY14 13.18 25.00 4.78 4.00 Q2-‐FY14 19.40 17.08 30.00 5.81 Q1-‐FY14 Quarterly Target 35.00 6.00 40.59 40.00 42.14 37.27 39.69 10.10 2.32 FY12 30.00 20.00 FY13 AOPFY13 FY14 AOP FY14 25.00% 15.00% 25.00 AOPFY12 Fig. 7.1.61 : Gujarat Solar -‐ PLF on Gross Genera9on (%) 20.00% 35.00 18.91% 18.71% 18.68% 19.43% AOPFY12 FY13 AOPFY13 FY14 18.31% 13.80% 10.00% 15.00 0.00 Q4-‐FY14 40.00 8.00 5.00 Q3-‐FY14 Fig. 7.1.59 : Gujarat Solar -‐ Gross Power Genera:on (MU's) Fig. 7.1.58 : GREL -‐ Admin & FMS Cost (Rs. Lakhs) 10.00 Q2-‐FY14 15.00 400 0.00 Q1-‐FY14 25.00 871 849 600 10.00 17.17 Fig. 7.1.57 -‐ GREL -‐ Plant Preserva7on Cost (Rs. Crs) 1092 800 12.00 17.37 5.00 2.00 0 17.87 10.00 4.00 1000 16.30 15.00 6.00 0.00 24.92 25.00 9.05 10.00 30.00 5.00% 2.30 FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 0.00% FY12 AOP FY14 Business Excellence in GMR Energy | FY 2013-14
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Fig. 7.1.63 : Gujarat Solar -‐ Aux. Power Consump?on (%) Fig. 7.1.62 : Gujarat Solar -‐ Plant Availability (%) 120.00% 99.97% 99.00% 100.00% 1.20% 73.81% 80.00% 0.80% 60.00% 0.60% 40.00% 0.40% 20.00% 0.20% 0.00% 0.00% FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 Fig. 7.1.64 : Gujarat Solar -‐ Unplanned Outages (Nos.) 55 60 6 AOP FY14 418.16 328.02 100 FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 17.57 12.23 12.74 14.17 10.00 13.02 8.02 8.00 6.00 4.00 2.00 FY12 AOPFY12 FY13 AOPFY13 FY14 0 AOP FY14 4.00 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 AOPFY13 FY14 AOP FY14 17.57 12.23 12.74 FY13 AOPFY13 14.17 13.02 8.02 FY12 AOPFY12 FY14 AOP FY14 5.00 5.00 3.99 3.97 4.00 3.97 3.91 FY14 AOP FY14 3.00 2.02 2.00 1.18 1.00 1.00 0.00 0.00 FY12 FY13 6.00 4.15 4.10 AOPFY12 Fig. 7.1.71 : Gujarat Wind -‐ Power Export (at Bus Bar) (MU's) 5.11 5.00 FY12 Fig. 7.1.69 : Gujarat Solar -‐ Cost of Genera:on (F
+V) (Rs/kwh) Fig. 7.1.70 : Gujarat Wind -‐ Gross Power Genera9on (MU's) 6.00 28.65 50 12.00 124
FY14 150 7 14.00 2.00 AOPFY13 200 16.00 3.00 FY13 250 Fig. 7.1.68 : Gujarat Solar -‐ Fixed Cost (Rs/kwh) 0.00 AOPFY12 300 20 18.00 FY12 350 30 20.00 1.00% 0.60% 400 40 0 0.98% 0.85% Fig. 7.1.66 : Gujarat Solar -‐ Loss of Genera9on (MU's) 450 50 10 0.95% 1.00% AOPFY12 FY13 AOPFY13 FY14 Business Excellence in GMR Energy | FY 2013-14
AOP FY14 1.93 0.02 FY12 AOPFY12 FY13 AOPFY13 Fig. 7.1.73 : Gujarat Wind -‐ Plant Availability (%) Fig. 7.1.72 : Gujarat Wind -‐ PLF (%) 28.00% 30.00% 23.00% 25.00% 20.00% 15.00% 100.00% 15.00% 98.00% 22.00% 17.00% 92.00% 12.89% 90.00% 88.00% FY12 AOPFY12 FY13 AOPFY13 4.72% FY14 AOP FY14 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 5.26 5.00 4.00 2.00% 2.00% 3.00 2.92 2.00 1.96 1.99 FY13 AOPFY13 2.69 2.26 1.00 FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 0.00 FY12 AOPFY12 FY14 AOP FY14 Fig. 7.1.81 : Tamilnadu Wind -‐ Gross Power Genera:on (MU's) 3.00 5.26 5.00 2.55 2.70 2.69 2.50 4.00 2.00 2.92 1.96 2.00 1.99 2.26 2.69 0.50 FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 Fig. 7.1.82 : Tamilnadu Wind -‐ Power Export (at Bus Bar) (MU's) 3.00 2.50 2.50 1.64 1.50 0.82 1.00 1.00 2.65 2.64 0.00 0.13 FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 Fig. 7.1.83 : Tamilnadu Wind -‐ PLF (%) 30.00% 23.00% 25.00% 23.00% 25.00% 25.00% 20.00% 2.00 1.61 10.00% 0.81 1.00 5.00% 0.12 FY12 AOPFY12 15.00% 15.00% 1.50 0.00 FY12 Fig. 7.1.79 : Gujarat Wind -‐ Fixed Cost (Rs/kwh) 4.34% 2.00% 80.00% 6.00 3.05% 6.00 0.50 87.56% 82.00% Fig. 7.1.80 : Gujarat Wind -‐ Cost of Genera:on (F
+V) (Rs/kwh) 0.00 90.87% 89.46% 84.00% Fig. 7.1.74 : Gujarat Wind -‐ Aux. Power Consump>on (%) 3.00 95.00% 86.00% 5.00% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 95.00% 94.00% 10.00% 0.00% 95.00% 96.00% FY13 AOPFY13 FY14 AOP FY14 0.00% 5.00% FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 Business Excellence in GMR Energy | FY 2013-14
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Fig. 7.1.84 : Tamilnadu Wind -‐ Plant Availability (%) 100.00% 6.00% 97.56% 95.00% 96.00% 95.00% 95.00% 92.00% 88.00% Fig. 7.1.85 : Tamilnadu Wind -‐ Aux. Power Consump>on (%) 5.00% 4.00% 89.68% 3.00% 85.23% 84.00% 2.00% 80.00% 1.00% 76.00% FY12 AOPFY12 FY13 AOPFY13 FY14 AOP FY14 0.00% 35.00 35.10 40.00 35.00 30.00 2.00% 2.00% 2.00% 2.00% AOPFY12 FY13 AOPFY13 FY14 AOP FY14 35.10 30.00 25.00 25.00 20.00 20.00 15.00 15.00 10.00 5.35 5.00 0.00 FY12 2.00% Fig. 7.1.91 : Tamilnadu Wind -‐ Cost of Genera;on (F+V) (Rs/kwh) Fig. 7.1.90 : Tamilnadu Wind -‐ Fixed Cost (Rs/kwh) 40.00 4.97% FY12 AOPFY12 5.11 2.99 2.84 FY13 AOPFY13 3.55 FY14 AOP FY14 10.00 5.35 5.00 0.00 FY12 AOPFY12 Fig. 7.1.92 : Capex Op1miza1on CIPs Fig. 7.1.93 : Cost Reduc4on CIPs 40 60 35 30 33.37 30 18 5 3 FY12 6 1.35 1 0.5 FY13 No. of CIPs Rs. Cr FY14 10 8 7 FY12 4 FY13 Rs. Cr 353 300 250 209 205 200 72 42 39 0 FY12 Rs. Cr 1.87 12 0.22 FY13 FY14 150 100 50 0 117 91 84 3.98 0.46 FY12 1.78 FY13 Ideas received No. of Employees involved Ideas approved FY14 Savings (Rs. Cr) Fig. 7.1.97 : KSS / Power Talks and Employee Par=cipa=on to KM Ac=vi=es Fig. 7.1.96 : Project Bijlee & Paani 80 53 60 50 8 40 6 30 2 1.58 No. of Projects Project Bijlee 39 27 20 0.67 Savings (Rs. Cr) Project Paani Business Excellence in GMR Energy | FY 2013-14
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FY14 No. of Employees involved 350 234 No. of CIPs 0 1.21 Fig. 7.1.95 : Idea Factory 100 2 24 400 150 4 AOP FY14 42 3.00 No. of CIPs 200 12 FY14 20.82 No. of Employees involved 252 250 0 3.55 20 0 Fig. 7.1.94 : Process Improvement CIPs 300 50 AOPFY13 30 15 0 FY13 5.11 40 20 5 2.84 48 50 25 10 2.99 19 10 0 FY12 FY13 KSS & Power Talks (Nos.) Employee ParCcipaCon FY14 Fig. 7.1.98 – Learning documents compiled
Fig. 7.1.99 : Supplier Sa1sfac1on Index 6.00 5.00 4.00 5.00 4.15 4.11 4.15 5.00 4.01 4.05 4.06 5.00 3.96 3.99 3.96 5.00 4.16 4.15 4.1 5.00 3.86 3.76 3.61 5.00 4.03 4.01 3.99 3.00 2.00 1.00 0.00 Overall Experience with Sourcing & Contract GMR (Index) Management (Index) PO Process : Supply / Service (Index) FY12 Fig. 7.1.100 : S Curve – EPC – CTPP Project
Fig. 7.1.102 : S Curve – Procurement – CTPP Project
FY13 Onsite Working condiQons (Index) FY14 Payment process (Index) Vendor SaQsfacQon Score (Index) Target Fig. 7.1.101 : S Curve – Engineering Progress – CTPP Project
Fig. 7.1.103 : S Curve – Construction – CTPP Project
127
Fig. 7.1.104 : S Curve – Over all progress – CTPP Project
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7.2 Customer-Focused Outcomes
Fig. 7.2.1 : GPCL -‐ CSI (Index) 4.45 4.35 74 4.4 4.40 4.30 Fig. 7.2.2 -‐ GPCL -‐ Customer Mee5ngs (Nos.) 4.3 70 4.25 68 4.2 4.20 4.15 60 FY11 FY12 FY13 FY14 Target 58 Fig. 7.2.3 : Customer workshops / Interac;ons -‐ Power Trading (Nos.) 300 200 130 150 100 50 50 FY12 FY13 FY14 Target 0 Fig. 7.2.5 : Concerns raised by Power Trading Customers (Nos.) 4 4.90 4.80 2 4.70 1 4.60 0 FY11 FY12 FY13 FY14 182 148 FY11 130 FY12 FY13 FY14 Target 5.00 5.00 2 0 Target 250 5.10 3 1 FY14 Fig. 7.2.6 : Customer Sa4sfac4on Survey Index -‐ Power Trading (Index) 3 3 FY13 Fig. 7.2.4 : Customer Visits / Mee5ngs -‐ Power Trading (Nos.) 100 FY11 FY12 250 182 148 FY11 300 250 250 0 63 62 4.00 150 65 64 4.05 200 68 66 4.1 4.10 3.95 72 72 Target 4.60 4.64 4.60 4.50 4.40 FY11 FY12 FY13 FY14 Target Business Excellence in GMR Energy | FY 2013-14
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Fig. 7.2.7 : Complaints received -‐ Power Trading (Nos) 12 10 30 10 7 20 6 4 4 2 FY12 FY13 FY14 Fig. 7.2.9 : Customer Base -‐ OA Customers -‐ Exchange (Nos.) 120 103 114 100 80 60 40 43 27 20 0 130
15 10 5 FY11 FY11 FY12 25 25 8 8 0 Fig. 7.2.8 : Customer Base -‐ OA Customers -‐ Bilateral (Nos) FY13 FY14 Business Excellence in GMR Energy | FY 2013-14
Target 0 3 0 0 FY11 FY12 FY13 FY14 Target 7.3 Workforce-Focused Outcomes
Fig. 7.3.2 : Training Mandays Fig. 7.3.1 : Training Programs 350 300 260 3142 3103 3500 3000 250 187 200 135 150 2500 2000 120 28 50 FY11 FY12 Technical (Nos) 1000 15 FY13 1935 1827 1500 79 100 0 3740 4000 288 FY14 526 500 0 FY11 Behavioral (Nos) FY12 2.50 2.00 300 2.04 1.92 250 2.01 1.39 1.50 0.50 50 FY12 Technical (Mandays/Employee) 215 FY13 FY14 91 34 0 FY11 5098 5000 4000 4265 3129 3000 2000 1000 0 633 FY11 839 FY12 Internal (Mandays) FY12 Behavioral (Mandays/Employee) 1186 402 FY13 External (Mandays) 40 FY14 500 450 400 350 300 250 200 150 100 50 0 16 FY13 Internal (Nos) Fig. 7.3.5 : Training Mandays 6000 166 145 150 100 FY11 Behavioral (Mandays) 251 250 200 1.34 1.19 1.00 0.00 FY14 Fig. 7.3.4 : Training Programs 2.75 2.71 3.00 273 FY13 Technical (Mandays) Fig. 7.3.3 : Training Ra.o 913 FY14 External (Nos) Fig. 7.3.6 : Employees covered under Talent Management 429 458 203 100 11 11 23 6 33 33 20 7 0 0 0 6 0 0 0 2 FY11 FY12 FY13 FY14 PDD CIDP LDP DC ELP YG & STEP CEPCOM Business Excellence in GMR Energy | FY 2013-14
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Fig. 7.3.8 : Employees covered under Reward & Recogni<on 180 160 140 120 100 80 60 40 20 0 153 98 76 52 8 31 22 1 11 10 0 0 0 3 5 0 FY11 Spot Awards FY12 Best Performer Best Employees Employees FacilitaGon I Value U Zeal Factory FY13 68 48 16 8 FY11 FY12 SLM 7 9 FY13 FY14 450 400 350 300 250 200 150 100 50 0 88.23 417 249 171 70 FY11 FY12 40 25 58 15 35.7 30.6 18.87 20 0 FY13 FY14 DIAL FY14 GHIAL FY14 Cycle Time of Recruitment (No of Days) 0 18.00 100 16.00 14.00 10.00 9.52 FY11 FY12 0 0 FY13 FY14 Within Group (Nos) 100 100 100 100 100 100 100 100 75 10.60 50 8.00 25 6.00 0 4.00 2.00 132
5 4 Fig. 7.3.14 : Employees coverage under V&C and COBCE 18.64 20.00 0.00 12 Within Sector (Nos) Fig. 7.3.13 : A+ri-on (%) 10.74 GHIAL FY14 17 15 10 Recruitment Cost (Rs. Lakhs) 12.00 DIAL FY14 20 5 FY12 FY14 Fig. 7.3.12 : Job Rota1on under IJP 94 20 29.5 25.8 FY13 30 THM 80 60 FY14 Outstanding ContribuGon 403 Fig. 7.3.11 : Cost of Hiring and Cycle Time 100 5 4 Fig. 7.3.10 : Talent Acquisi6on (Nos.) 139 50 4 0 Star of the Month Fig. 7.3.9 : Leadership Communica8on 160 140 120 100 80 60 40 20 0 3 3 9 0 FY11 FY12 FY13 Business Excellence in GMR Energy | FY 2013-14
FY14 FY11 FY12 FY13 Employees coverage under V&B (%) Employees coverage under COBCE (%) FY14 45.00 Fig. 7.3.15 : % employees gap addressed -‐ CEPCOM Based (%) 40.89 40.40 40.00 35.00 16.00 31.74 12.00 8.00 20.00 10.00 4.00 5.00 2.00 FY12 FY13 FY14 0.00 3.76 3.62 4.04 3.99 180 160 140 120 100 80 60 40 20 0 4.00 4.05 3.00 2.00 1.00 2011 2012 Energy 4.38 2013 2014 4.35 27 FY11 20 FY12 90 50 31 17 FY13 FY14 75 78 80 FY13 FY14 50 40 4.30 30 20 10 FY11 FY12 FY13 FY14 Fig. 7.3.22 : Posi-ons closed through Portal [No consultants] (%) 64 0 98 97 50 96 40 95 30 97 96 95 93 93 13 92 2 FY11 FY12 94 24 20 FY11 Fig. 7.3.23 : Adherence to Hiring Plan (%) 60 0 147 110 Fig. 7.3.21 : Adherence to Training Calendar (%) 60 4.28 10 FY14 70 4.32 70 FY13 153 131 80 4.34 4.26 FY12 % employees rated EE & Above (Nos) 4.37 4.30 FY11 New employees eligible under PMP [First Cycle] (Nos) Group Fig. 7.3.20 : Training Effec3veness Index (Level 1 -‐ Reac3on Feedback) (Score) 4.36 4.30 5.03 Fig. 7.3.19 : New Employees Eligible under PMP (First Cycle) (Nos.) Fig. 7.3.18 : Employee Engagement Score 0.00 6.45 6.00 15.00 4.00 9.20 10.00 25.00 5.00 13.90 14.00 30.00 0.00 Fig. 7.3.16 : A,ri.on levels of New Joiners (Within one year) (%) FY12 FY13 FY14 91 FY11 FY12 FY13 FY14 Business Excellence in GMR Energy | FY 2013-14
133
Fig. 7.3.23A : Succession planning 180 160 140 120 100 80 60 40 20 0 Fig. 7.3.24 : First Aid Cases (Nos) 163 2500 59 50 1500 1 12 369 500 0 FY14 Hay Group (Job evaluation Job design)
910 1000 No. of cri2cal posi2ons % posi2ons for which % mapped posi2ons iden2fied step in and long term actually filled by ST/LT successors mapped successors FY13 1923 2000 88 FY11 FY12 FY13 FY14 Year 2014
No. of Employees Assessed
1150
No. of Unique positions identified
234
No. of CTRs completed
1150
Fig. 7.3.25 : Medical Treatment Cases, Reportable Incidents, LTI, Fatality 14 12 12 10 8 7 6 6 6 6 6 5 4 4 2 2 1 2 1 0 0 0 FY11 FY12 FY13 Fig. 7.3.25 : Medical Treatment Cases (Nos) Fig. 7.3.26 : LTIFR (Rate) 0.25 0.18 0.20 0.15 0.20 0.18 0.20 0.12 0.10 0.05 0.00 134
FY11 FY12 FY13 FY14 Business Excellence in GMR Energy | FY 2013-14
Target No. of Reportable incidents (Nos) FY14 LTI (Nos) Target Fatality (Nos) Target Fig. 7.3.27 : LTI Severity Rate, Fatality Incidence Frequency Rate, First Air Injury Frequency Rate 600.00 550.03 488.90 500.00 366.03 400.00 300.00 200.00 100.00 0.044 0.56 0 0 0.00 FY11 42.8 FY12 LTI Severity (Rate) 0.098 0.06 14.89 FY13 FY14 Fatality Incidence Frequency (Rate) Fig. 7.3.29 : Tool box mee2ng (Nos) 20000 141 140 16000 12000 80 8000 51 6000 40 2000 FY11 FY12 FY13 FY14 Target 0 Fig. 7.3.30 : Unsafe Condi3ons, Unsafe Act (Nos) 6000 FY11 FY12 18 Target 18 18 FY13 FY14 14 12 2703 3000 FY14 16 3843 4000 FY13 Fig. 7.3.31 : Mock Drill conducted (Nos) 20 4930 5000 10 8 2000 6 4 299 FY11 2 FY12 FY13 FY14 Target 0 Fig. 7.3.32 : Safety Training programs (Nos) FY11 FY12 Target Fig. 7.3.33 : OH Diseases detected (Nos) 5 3616 3500 4 3000 2500 No OH Diesases case detected 3 2000 1367 1500 1311 1000 2 1 409 500 0 4790 4000 20 4000 10463 10000 60 0 13734 14000 100 1000 18368 18000 120 0 Target First Aid Injury Frequency (Rate) Fig. 7.3.28 : Near Miss (Nos) 160 11.23 0 FY11 FY12 FY13 FY14 Target 0 0 0 0 FY11 FY12 FY13 FY14 Target Business Excellence in GMR Energy | FY 2013-14
135
12000 Fig. 7.3.34 : Coverage of Workforce under periodic medical examina;on (Nos) 1 10175 10000 Fig. 7.3.35 : Reportable Environment Incidence (Oil spillage, toxic / ash discharge, Acid leakage, ESP failure etc.) (Nos) 0.8 8000 No Reportable Environment Incidence 0.6 6000 0.4 4000 0.2 2000 0 0 0 0 FY11 FY12 FY13 FY14 Target Fig. 7.3.36 : EHS Promo1onal Campaign (Nos) 50 0 0 0 0 FY11 FY12 FY13 FY14 25 40 Target Fig. 7.3.37 : Fire Incidences (Nos.) 20 20 44 45 0 15 35 28 30 9 10 25 20 5 15 10 5 0 136
0 0 0 FY11 FY12 FY13 FY14 Business Excellence in GMR Energy | FY 2013-14
Target FY11 FY12 Major Fire Incidents (Nos) 0 0 FY13 FY14 Minor Fire Incidents (Nos) 7.4 Leadership and Governance Outcomes
Fig. 7.4.2 : Ethical Culture Survey, Concerns Raised-Resolved, Resolution Cycle Time & System Improvement
Sr No.
Process
FY12
FY13
FY14
1
Ethical Culture Survey
Nil
3.83
Planned Every Alternate Year
2
Ethics/ Fraud Awareness Training Programs conducted.
Nil
Nil
12
3
Ethics complaints received. ( Whistle Blower)
Nil
Nil
3
4
Corrective action on WB complaints received.
Nil
Nil
3
5
Resolution Cycle time (Energy)
Nil
Nil
< 45 Days
6
Alert Notes based on Intelligence inputs
Nil
Nil
12
7
System Improvement Notes based on WBP/other complaints
Nil
Nil
6
70 Fig. 7.4.3-‐1 : Senior Leadreship personal involvement in Founda<on Ac<vi<es (Nos) 61 55 60 50 40 30 500 400 340 300 200 100 FY12 FY13 93200 100000 FY14 Target 0 FY12 FY13 FY14 Target Fig. 7.4.5 : GMRVF Spend (Rs. Lakhs) 95000 94750 90000 480 457.79 460 68681 440 60000 428.6 416.6 420 50000 40000 400 30000 380 20000 383.2 360 10000 0 657 600 29 Fig. 7.4.4 : No. of Beneficiaries (Nos) 70000 863 700 39 10 80000 827 900 800 20 0 1000 Fig. 7.4.3-‐2 : GMR Site Employees Involved in Founda?on Ac?vi?es (Nos) 340 FY12 FY13 FY14 Target FY12 FY13 FY14 Target Fig. 7.4.6 : GKEL -‐ Stack Emission : SPM (mg/NM3) 28.5 28.2 Statutory limit 50 mg/NM3 28 27.5 27 26.5 26.4 26 25.5 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 Business Excellence in GMR Energy | FY 2013-14
137
Fig. 7.4.7 : EMCO Stack Emission 120.0 108.0 100.0 Statutory limit SOX -‐ 46MT NOX -‐ 150 mg/NM3 Dust -‐ SPM -‐ 50 mg/NM3 PPM -‐ Ammonia -‐ 50 PPM CO2-‐ 106.0 81.0 70.0 80.0 60.0 44.0 42.0 41.0 41.0 40.0 20.0 0.0 19.0 13.0 7.7 11.0 SOX (MT) 0.0 0.6 0.6 0.6 NOX (mg/NM3) Dust SPM (mg/NM3) Q1-‐FY14 Q2-‐FY14 PPM Q3-‐FY14 Ammonia (PPM) CO2 Q4-‐FY14 Fig. 7.4.8 : GPCL Stack Emission 4228 4121 4500 3500 Statutory limit SOX -‐ 190 ppm NOX -‐ 1100 ppm Dust -‐ 150 mg/NM3 3871 4000 2933 3000 2500 2000 1500 1000 500 0 544 265 254 181 239 120 137 98 129 SOX(MT/Annum) NOX (MT/Annum) Dust(MT/Annum) FY11 FY12 FY13 60.00 CO2 (1000 MT/Annum) Statutory limit PM10 -‐ 100 µg/m3 PM2.5 -‐ 60 µg/m3 NOX -‐ 80 µg/m3 SO2 -‐ 80 µg/m3 CO-‐1Hr -‐ 4 mg/m3 64.81 59.05 50.00 36.64 33.64 40.00 499 374 FY14 Fig. 7.4.9 : GKEL Ambient Air Quality 70.00 528 30.00 20.00 13.50 13.26 7.90 8.34 10.00 0.00 0.30 0.35 PM10 (µg/m3) PM2.5 (µg/m3) NOX (µg/m3) Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 SO2 (µg/m3) Fig. 7.4.10 : EMCO Ambient Air Quality -‐ Loca?on Switch Yard 90.00 80.00 70.00 60.00 76.00 79.00 63.33 58.00 40.00 32.67 26.67 24.67 30.00 20.00 10.00 PM10 (µg/m3) PM2.5 (µg/m3) Q1-‐FY14 138
Statutory limit PM10 -‐ 100 µg/m3 PM2.5 -‐ 60 µg/m3 SOX -‐ 80 µg/m3 NOX -‐ 80 µg/m3 44.00 50.00 0.00 CO-‐1Hr (mg/m3) Q4-‐FY14 Business Excellence in GMR Energy | FY 2013-14
Q2-‐FY14 Q3-‐FY14 7.20 7.17 7.57 9.50 12.90 9.63 10.40 10.67 SOX (µg/m3) NOX (µg/m3) Q4-‐FY14 Fig. 7.4.11 : EMCO Ambient Air Quality -‐ Loca>on Reservoir Statutory limit PM10 -‐ 100 µg/m3 PM2.5 -‐ 60 µg/m3 SOX -‐ 80 µg/m3 NOX -‐ 80 µg/m3 74.00 80.00 70.00 63.33 63.67 60.00 60.00 50.00 40.33 40.00 28.67 23.67 24.00 30.00 20.00 10.00 0.00 PM10 (µg/m3) PM2.5 (µg/m3) Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 8.00 7.03 6.50 7.70 10.33 10.47 9.33 8.50 SOX (µg/m3) NOX (µg/m3) Q4-‐FY14 Fig. 7.4.12 : EMCO Ambient Air Quality -‐ Loca?on CHP 90.00 Statutory limit PM10 -‐ 100 µg/m3 PM2.5 -‐ 60 µg/m3 SOX -‐ 80 µg/m3 NOX -‐ 80 µg/m3 80.00 75.00 71.00 70.00 80.00 70.00 60.00 45.00 37.00 31.00 32.00 50.00 40.00 30.00 20.00 10.00 0.00 PM10 (µg/m3) 10.00 8.00 8.00 9.00 11.00 12.00 12.00 12.00 SOX (µg/m3) NOX (µg/m3) PM2.5 (µg/m3) Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 Fig. 7.4.13 : GPCL Ambient Air Quality 35 30 31.05 26.55 24.68 22.42 25 23.52 21.74 Statutory limit SOX -‐ 80 µg/m3 NOX -‐ 80 µg/m3 PM10 -‐ 100 µg/m3 22.93 20.14 20 15 8.91 10 8.73 8 8.47 5 0 FY11 FY12 SOX (µg/m3) FY13 NOX (µg/m3) Fig. 7.4.15 : GPCL -‐ Plant Noise Level Fig. 7.4.14 : Plant Noise Level (GKEL & EMCO) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 73.6 61.9 59.4 58.9 74.1 61.9 58.7 58.9 FY14 PM10 (µg/m3) Statutory Limit 75 dbA Statutory Limit Day -‐ 75 dbA Night -‐ 70 dbA 61.9 58.9 61.9 58.9 59.90 60.00 59.50 59.00 58.80 59.20 58.60 58.50 58.00 57.50 Q1-‐FY14 Q2-‐FY14 Q3-‐FY14 Q4-‐FY14 GKEL -‐ Plant Noise Level (dbA -‐ Day) GKEL -‐ Plant Noise Level (dbA -‐ Night) EMCO -‐ Plant Noise Level (dbA -‐ Day) EMCO -‐ Plant Noise Level (dbA -‐ Night) FY11 FY12 FY13 FY14 Fig. 7.4.15 : GPCL -‐ Plant Noise Level Business Excellence in GMR Energy | FY 2013-14
139
Fig. 7.4.16 : Green Belt development -‐ GKEL, EMCO, CTPP 60000 50000 50000 40000 40000 30000 20000 40000 30000 25000 15000 30000 20000 15000 GKEL -‐ No. of saplings planned GKEL -‐ No. of saplings actual EMCO -‐ No. of saplings planned FY11 Fig. 7.4.17 : Carbon Footprint -‐ G&L Plants 600000 543534 527719 498505 500000 374104 400000 321755 300000 200000 113956 100000 0 0 FY11 0 FY12 GPCL -‐ Carbon Footprint -‐ (Tons of CO2/Annum) FY13 GVPGL -‐ Carbon Footprint -‐ (Tons of CO2/Annum) GVPGL -‐ Points Credited -‐ (CER's) 140
FY14 Business Excellence in GMR Energy | FY 2013-14
20000 18500 12000 10000 10000 0 40000 FY12 EMCO -‐ No. of saplings actual FY13 FY14 CTPP -‐ No. of saplings planned CTPP -‐ No. of saplings actual 7.5 Financial and Market Outcomes
Fig. 7.5.2 : EBITDA (Rs. Cr) Fig. 7.5.1 : Revenue (Rs. Cr) 6000 5326 1000 5000 800 4000 2986 3000 2000 1968 2241 600 2152 200 0 -‐200 251 200 FY11 FY12 FY13 FY14 0 Target FY14 Fig. 7.5.3 : PBT (Rs. Cr) 400 473 400 1000 0 1131 1200 200 0 FY12 FY13 FY14 Target FY14 -‐54 -‐400 -‐580 -‐620 Target FY14 -‐200 78 FY11 FY12 -‐134 FY13 FY14 Target FY14 -‐400 -‐800 -‐621 -‐728 -‐1200 -‐1200 -‐1400 -‐1400 -‐1348 -‐1600 -‐1338 -‐1600 Fig. 7.5.5 : EBITDA Margin (%) Fig. 7.5.6 : PAT Margin (%) 30.00 10 24.03 21.24 20.00 0 -‐10 15.00 6.51 5.00 FY12 FY11 FY12 FY13 FY14 FY13 FY14 Target FY14 -‐5.98 -‐11.66 -‐30 5.06 -‐40 FY11 3.96 -‐20 11.20 10.00 0.00 FY14 -‐1000 -‐1000 25.00 FY13 -‐600 -‐600 -‐800 FY12 151 Fig. 7.5.4 : PAT (A.er minority) (Rs. Cr) 196 FY11 FY11 140 Target FY14 -‐50 -‐33.83 -‐44.81 Business Excellence in GMR Energy | FY 2013-14
141
Fig. 7.5.10 : Net Debt : Equity (Ra7o) Fig. 7.5.9 : EBITDA / Interest (Ra9o) 9 3.50 3.00 2.92 7 2.50 1.36 0.98 0.40 0.50 3 2 FY12 FY13 FY14 Target FY14 Fig. 7.5.11 : Cash & Cash Equivalent (Rs. Cr) 1476 1347 1477 FY13 FY14 Target FY14 30.00 25.79 20.00 800 15.00 630 600 10.00 400 8.66 FY11 FY12 FY13 FY14 Business Excellence in GMR Energy | FY 2013-14
Target FY14 0.00 8.03 7.42 3.57 5.00 200 142
FY12 25.00 1000 0 FY11 Fig. 7.5.14 : Trading Margins (Rs. Cr) 1130 1200 1.64 1 0.14 0 FY11 3.81 4 1.00 1400 4.62 5 1.50 1600 5.54 6 2.00 0.00 7.85 8 FY11 FY12 FY13 FY14 Target FY14 EMCO Unit 1 & 2 and GKEL Unit 1,2 & 3
commissioned leading to increase
in installed power generation
capacity by
1650 MW
Energy Revenue increased by
38.43%
Trading margin
improved by
LTIFR reduced to
0.18
from
125%
0.20
Cost Optimization exercise in
GEMS leading to annualized savings of
14 Mn
Idea generation improved
USD
by 40.79% (YoY), Total savings
from Implemented ideas
` 6.22 Cr
Corporate Head Office: IBC Knowledge Park, 10th Floor, "D" Block,
Bannergatta Road, Bangalore - 560 029
www.gmrgroup.in

Business Excellence in GMR Energy

Transcription

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