The sponsor has presented plans to address these impacts to ensure that the proposed project will comply with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts are being addressed by the sponsor/project is summarized in the paragraphs that follow:
- Process Design and Pollution Control
- Statutory Compliance:
A range of Government Licences and Permits are held by Telco e.g Environmental Statement, Factory Licence;Approval of Plan;Certificate of Stability; Notification of Accidents; Certificate of Competency; Discharge/emission Consents; License and Permit to store LPG; Emergency Plan and Authorization for the Disposal of Hazardous Waste. All are currently in compliance. Compliance with World Bank
- Guidelines:
Telco is currently preparing a statement of compliance for each facility against applicable World Bank Guidelines. Environmental staff at Pune have demonstrated a full appreciation of design/process innovation and resource conservation /recovery. Opportunities have been easier to implement given the relative age of the plant, as well as the incorporation of new technology in the new Indica car line. The Chikhali Passenger Car Factory has therefore adopted a range of environmentally friendly manufacturing technologies, recycling activities as well as conservation initiatives. The recycling activities also have positive social impacts as they are managed by a number of Telco Co-operative Societies created with the intention of providing employment to Telco employee relatives. Between 1994/5 and 2000/1 water consumption per EVO decreased from 35.77m3 to 17.28m3. Telco’s performance in energy conservation has been particularly impressive. Telco is also committed to using non-conventional power sources and has recently finalized a Power Purchase Agreement for the purchase of energy generated by wind power.
- Environmental Certification:
The Auto Division (CVBU) at Pune and the Foundry Division at Chinchwad and Maval were certified to ISO 14001 in 2001 and represent the largest automotive /manufacturing unit/ foundry to be certified in India. Pune was also certified as an Energy Efficient Unit and winner of ‘Award for Excellence in Energy Management’ organized by the Confederation of Indian Industry – 2001. Jamshedpur is aiming for ISO 14001 certification within the next year in 2003. Excellence Awards:- Tata Engineering Pune received an Award for "Environmental Pollution Control in Industry". The award recognizes the efforts made by the industries in Maharashtra towards control and abatement of environmental pollution. In 1999 - 2000, Tata Engineering were awarded a Good Corporate Citizenship Award by the Mumbai Chamber of Commerce and Industry for "reaching out beyond its business interests and for outstanding achievements in improving the quality of life in the community" as well as its commitment to Corporate Governance.
- Procurement:
A number of environmental features are being considered in machine purchase e.g specified operating conditions, hydraulic circuit temperatures, non CFC refridgerantsfor use in air conditioning and chilling units, exhaust ducts with fume/dust extraction units to be provided wherever possible. A number of safety considerations are also included in the procurement specifications
- Health and Safety:
There are 18 safety committees in the Pune Plant, as well as 400 safety stewards. Performance targets for 2001-2002 include:- review of safety policy to ensure compliance with Factories Acts 1948; development of quality standards for PPE; annual update of Disaster Control Plan; modification of plant safety inspection "check list"; improvement in quality of safety shoes. Work Zone Monitoring has been completed by the Central Labour Institute, Mumbai with follow up in progress including the development of base line data for actual TLV''s – welding fumes, oven fumes, paint mist, dust levels, noise levels and gas levels in testing areas. At Jamshedpur Plant, Divisional Safety Committees are functioning with a prime focus on Safety, Health and Environment. These are co-ordinated by divisional / Departmental safety Champions numbering 43 Line Managers. Jmashedpur Plant has also launched " Mission Zero Accident ". Performance of Safety is measured in terms of Safety Index. This is being monitored on monthly basis, which has resulted in an improvement of 211% in comparison to last year’s performance.
- Training Programs:
An extensive training program is undertaken covering personal safety; equipment safety, workshop safety as well as general safety. A program of training on pollution control is also included. Other training programmes include health management as well as first aid training and fire fighting. These training courses are targeted at all supervisors and operators.
- Drinking Water and Sewage Disposal Plants:
At Jamshedpur, 50,000 inhabitants are served with drinking water from a water treatment plant. The sewage disposal plants for the town of Jamshedpur have a capacity of 2.7 million gallons per day:- 1.0 million gallons of sewage is treated on average per day. BOD ranges from 15-16mg/l; the permissible limit for this parameter is 20. For suspended solids, where the permissible limit is 30mg/l, the plant operates at 22-25 mg/l. The treated effluent is discharged into the Kumariya Nallah. 6m3/month of biofertilizer is generated and used for gardening.
- Employee Retrenchment:
Manpower at Jamshedpu, for example, has been reduced from 24,085 in 1983 to 8,500 in 2001. Most of the early losses were from natural attrition, however in the past two years, Telco has now begun to look at a number of ways of more aggressively reducing their manpower. These include superannuation on attaining the age of 60 years; an early separation scheme (ESS); a scheme of medical retirement; discharge/ dismissal in cases of gross misconduct and finally, transfer to other units of Tata Engineering, as well as other Companies within the Tata Group. Projections at Jamshedpur are for another 2756 to be reduced within the next five years. At Pune, total losses are not anticipated to exceed 400. The retrenchment procedures are not coercive and are generous by Indian private sector standards. No additional mitigation efforts are required.
- Employee Social Services:
TATA provides a wide range of benefits to its staff and their dependents as well as contract employees including subsidized housing, municipal services, recreation, dependent education and medical care. IFC has encouraged the Company to rationalize the services to control escalating costs through out-sourcing of key services such as medical care to private contractors. The Company has already initiated discussions with contractors and IFC has offered assistance in linking the Company with additional contractors.
- Rural Development Activities and Community Development Initiatives:
Financial contributions by Telco Jamshedpur to rural and community development activities were 107.96 Lakhs in 2000/200. Additional funds mobilized by project staff from Government and Other Agencies totalled 129.9 Lakhs in 2000/20 and are continuing to grow. Telco Pune initiated rural development activities in 1977. Over the years, the activities have extended to 16 villages with a total population of 16,000 in 1991. Activities include: provision of drinking water facilities; preventative and curative health services; social forestry and fruit tree plantation; enhancing educational facilities; soil and water conservation and water management as well as the development of alternative sources of energy. Community Development activities include Telco Community Centres engaged in socio-cultural activities catering to the needs of Telco employees and their families. A number of voluntary institutions have also been promoted as a way of generating other forms of employment in the Telco plant environs:- for example, Telco Grihini Udyog is an independent, autonomous enterprise owned and run by women all of whom are the female dependents of Telco employees. In Pune, this group has set up 26 Centres where activities have now branched out into four Industrial co-operatives which produce a wide range of products used in Telco’s vehicles. Telco offers support by way of supplying raw materials and provides an assured market. Telco has also urged its employees to form industrial co-operatives for employing other male relatives of Telco families with lower levels of skills for employment at Telco. The running of such co-operatives has also promoted managerial skills amongst employees. Total employment generated is over 700 persons. IFC has discussed the need to contain the costs of the Company''s community development activities. National FICCI- COMPAQ award for Social Responsiveness of the Corporate awarded to Tata Engineering, Jamshepur for the year 1999-2000. For Social intervention Tata Engineering, Jamshedpur has promoted the following societies and works in the area of 364 villages & Bustees in three Districts of Singhbhum (East, West & Saraikela) :
- Gram Vikas Kendra, Jamshedpur(GVKJ), for integrated rural development;
- Parivar Kalyan Sansthan (PKS) committed to family welfare and popularising small family norms;
- Nav Jagrat Manav Samaj (NJMS): society committed for cure and rehabilitation of people suffering from Leprosy ;
- Shiksha Prasar Kendra ( SKP) - enhancing quality of education through various schools under the society. GVKJ has been appointed as Regional Resource Agency for State of Jharkhand and South Bihar by Ministry of Environment and Forest ( MOEF ) Govt. of India under National Environment Awareness Campaign for the 9th consecutive years. The Company has agreed to engage a consultancy to assist it in identifying appropriate partnerships with NGOs and community-based organizations to help reduce its direct financial commitments to these activities.