jamshedpur utilities & services company limited(jusco
TRANSCRIPT
Jamshedpur Utilities & Services Company Limited(JUSCO)
Samadhan 5.0 AGON 2019 A case study competition on Corporate Social Responsibility
Social Context and Business Profile
Social Context:
The operational area of JUSCO comes under the states of Jharkhand and Odisha. Jharkhand and
Odisha have traditionally been socio-economically most backward states. Very poor infrastructure
exists in terms of health services, education, roads and electricity along with lack of other basic
amenities. Illiteracy rate is also high. A major concern in these states is the socio-economic
development of the Dalit and Tribal communities, who constitute a considerable percentage (above
the national average) of the population, therein.
The company as a responsible corporate citizen recognizes that the growth lies in improving the
quality of life of the communities we serve. Jamshedpur and Sarikela-Kharsawan (S-K) District are
the prime areas of operation. Saraikela Power distribution business started after the grant of Power
Distribution License in Dec. 2006 from the Govt. of Jharkhand (GOJ). As per the Power Distribution
License agreement with the GOJ, JUSCO has to roll out the distribution network in the licensed area
of S-K District. The company will be having long term business association in the state of Odisha,
hence, the AA strategy for Odisha and the initiatives are being evolved. With our operations
confined to the areas mentioned above, that have a sizeable Dalit and Tribal population, we have
focused our Affirmative Action related work here (Fig. 1 & 2).
Particulars
UOM
Jharkhand
Saraikela-Kharsawan
District (S-K)
Odisha
Total Population In Lakhs 329.67 (2015-16) 10.65 ( 2015-16) 443.380 (2015-16)
Dalit % 38.90 (11.8%) 0.56 (5%) 73.29 (16.53%)
Tribal % 86.70 (26.3%) 3.74 (35%) 98.12 (22.13%)
Fig. 1: Dalit and Tribal Data
Indices UoM National
Jharkhand
Odisha
Population of Dalit and
Tribal % 25.20 38.10 38.66
Per Capita Income Rs. / Yr 93231
(2015-16)
46131
(2013-14)
59229
(2014-15)
Literacy Rate % 74.04% (2011) 67.60% (2011) 73.50% (2011)
HDI Index 0.609 0.464 0.442
Fig. 2 : Core Socio-economic Indicators
* Source: Census of India 2011
Business Profile: Jamshedpur is the site of India’s first steel plant. The founder Mr. Jamsedji Tata planned a full-
fledged township around the plant realizing the competitive advantage that world-class facilities
could provide in attracting best talent to sustainably run the steel plant. Jamshedpur was thus born
as modern India’s first planned industrial city. Tata Steel has been managing Jamshedpur since 1907,
which is globally a unique case of private organization taking up the role of providing civic amenities
to its employees and communities at large, as part of fulfilling its corporate social responsibility.
Tata Steel Ltd.(TSL) took the path breaking initiative in August 2003, of hiving off its Town and Power
Service divisions and creating a separate Corporate entity named “Jamshedpur Utilities & Services
Company Limited (JUSCO)”, India’s first comprehensive urban infrastructure services provider in the
private sector. It was created with an objective of Improving quality of services at Jamshedpur,
optimizing cost of town operations/ utility services and Leveraging experience of building and
maintaining town infrastructure to grow beyond Jamshedpur. (Fig. 3)
JUSCO’s Core Competency is “Creation, operation and maintenance of urban infrastructure and
services”. JUSCO is committed to the objective of providing “Quality Services for life” where in, ‘life’
symbolizes the vibrancy and continuity of services for, forever. The various business verticals are
depicted in (Fig 4).
Fig. 3: JUSCO’S Vision, Mission and Values
Fig. 4: JUSCO’s Service Offering
Vision
We shall be a provider of best-value infrastructure and utility
services
Mission
Build a process and knowledge driven enterprise where a team of happy and empowered employees Create best-value through:
Care for Customer
Culture of excellence and improvement
Commitment to Safety and Environment
Concern for Community
Values
Integrity
Excellence
Responsibility
Pioneering
Unity
Agility
JUSCO creates value by providing sustainable solutions in urban infrastructure to various agencies such as civic bodies, large and small industries, local government bodies, communities and individuals (Fig. 5).
Jamshedpur (TSL commitment) Businesses
For entire town
Water and waste management
Power distribution
Sanitation and Municipal Solid Waste Management
Town Planning, Engineering & Construction
Horticulture services
For TSL’s properties
Civil maintenance
Electrical Maintenance
Hospitality
Fleet Management
Security
EPC water project at Chas, Raurkela, Moharda, Chakulia & Gobarghati
Odisha O&M and Township Project
Industrial Civil & Industrial construction
Roads
Power distribution
Waste Management
Real Estate
Fig. 5: Services specification
PRODUCTS/OPERATIONS
1. Integrated Township Management: By virtue of its Lease Agreement with the Government of
Jharkhand (GoJ), Tata Steel Ltd.(TSL) is obliged to provide civic and municipal services in
Jamshedpur. JUSCO provides civic and municipal services on TSL’s behalf in an integrated
manner as guided by the Customers. It also includes Industrial Construction and O&M services
for TSL and Tata Steel Group Companies.
2. Power Services Division: The Power Services Division is responsible for the purchase, sale and
distribution of electricity; augmenting and maintaining the power distribution infrastructure. At
Jamshedpur JUSCO is providing services on TSL’s behalf, whereas, it is a license holder and
operator in S-K District. In S-K District, JUSCO is the first parallel licensee in power distribution in
India.
3. EPC Water Division: Water & Waste Water projects – To meet the water off-take treatment &
distribution and waste water conveyance and treatment requirements in the industrial and
municipal segment. Our customers include Tata Steel, TIS Group Companies, Government of
Jharkhand and Government of Odisha.
4. Odisha O & M: JUSCO brings extensive experience in township and facility management in
Jamshedpur. With the growing need for townships & facility management of industrial
townships, future smart cities, company decided to leverage upon its core capabilities to grow in
O&M in the state beyond Jharkhand and in Odisha. Tata Steel Works at Kalinganagar are our
main customers. JUSCO is also doing Township Construction Project for TSL at Kalinganagar.
5. Real Estate: JUSCO plans to serve the employees of Tata Group companies in Jamshedpur by
way of providing integrated township. JUSCO has captive demand from TSL’s employees for Real
Estate where it will be leveraging its long term construction capability and experience. This
would then serve as a launch pad for further growth in Real Estate business.
Revenue and Profit:
Year Total Income from sales (Rs. Cr) PBT (Rs. Cr) PAT (Rs. Cr)
2015 – 16 776.22 37.60 32.12
2016 – 17 788.01 48.71 51.51
2017 – 18 927.22 35.58 25.06
Fig 6: Revenue & Profits
Governance
AA Governance at JUSCO translates its commitment of empowering the underprivileged and weaker
section of society, through interventions in the areas of education, skill building, vendor
development, essential amenities and health care to promote inclusive growth. An Apex CSR
Committee has been formed to look after the needs of AA community through processes and
programs. The cross functional CSR Committee is headed by the Managing Director and comprises of
all General Managers and process owners of the Company. Each of the Four Es has a nominated
senior executive as its process owner. The respective persons driving the four Es are empowered to
implement AA Action plans on the approved AA Policy and strategy in their respective areas. The
sentiment of Dalit and Tribal is captured through an employee representative in the committee.
Company secretary and DGM CSR is nominated as AA champion and is adequately empowered to
drive the AA initiatives. The CSR department has been strengthened to identify the needs &
aspirations of local communities, develop & implement social welfare & peripheral development
program in tandem with the beneficiary groups.
JUSCO plans and executes its AA intervention in conjunction with its CSR Policy 2017.
JUSCO has defined an AA Governance structure to set and deploy its various objectives including the
4Es of Affirmative Action (Fig. 7).
AA Governance System, Structure & Review
Fig. 7: Governance Structure
AA Vision & Strategy:
In line with the Founder’s philosophy and TATA Core Values, JUSCO has evolved its Affirmative Action mission. Equitable share of benefits arising out of resources (financial, human, physical or information resources) is the right of every individual, which the AA community is vastly deprived off. JUSCO efforts to pass the benefits to AA community through various interventions to help create equal opportunities and bring about sustainable development.
JUSCO’S AA VISION
“To contribute positively to the communities in and around the place of work and assist them in
addressing the societal needs through the interventions in the areas of education, employability,
entrepreneurship, essential amenities and employment.”
AA directives have been a part of the CSR Policy and it includes: “The Company would design
targeted interventions for Dalit and Tribal in the areas of Education, Employability, Employment and
Entrepreneurship. For JUSCO, priority would be given to promoting ‘Education’.”
The company’s long term objective is “to improve the quality of education, in periphery of
company’s operations, through various interventions resulting in upgrading the quality of education
and adding value through holistic development of the student community. Education is company’s
focus area for Affirmative Action.”
JUSCO will continue to focus on AA communities in and around geographies where it has a long term
presence (>3 years).
AA Strategy has been developed taking inputs from AA Vision, AA Policy, Tata Group guidelines, CII
Code, stakeholders’ expectations, national demographics, need assessment feedback from the
community, business prospects and SWOT Analysis (Fig. 8).
Strength Weakness
Management engagement & commitment
Dedicated Fund for AA
Engaged employees with willingness in volunteering
Efforts initiated for improving quality of education
Employees with educational backgrounds
Partnership with/ NGOs/ Technical Institutions
Support from Community
Limited financial and human resources
Lack of education among the human
leading to low confidence
Time taking in behavioural changes of the
community
Opportunity Threat
Scope for intervention in development of villages in
avenue of 5Es
Lack of quality education
Scope for capacity building of Dalit and Tribal youth
Growth/ expansion projects of the Company
Increased requirement of vendors/ contractors for
products/ services
Political situation
Lack of active participation from villagers
Expectation of local community from
JUSCO
Lack of administrative support
High rate of illiteracy among villagers
Limited participation of women in
development initiative
Fig 8: SWOT Analysis
Input Process Output
External Environment
1. JUSCO Vision
2. JUSCO AA Policy
3. TATA Group Guideline/ Criteria
4. Stakeholder Requirements
5. Government Policies on AA
6. Socio-economic indicators/ Environment
7. Other Stakeholder’s (vendor, community, etc.)
expectations
Stakeholders
expectation’s analysis
Other relevant analysis
Prioritization of Objectives and Setting Targets
AA Strategies
&
Programs on
4 Es Directional
1. Strategic Directions
2. Leadership Inputs (MD/ GM’s)
3. Long Term Plan
4. Corporate/ Divisional Objectives
Internal Environment
1. Assessments Feedback
2. Learning from past
Fig. 9: Strategy Development Process
Needs and aspirations of Dalit and Tribal Communities:
A need assessment was done in order to understand the needs of the community and prioritise the
programs. In the outcome education and livelihoods ranked high and hence the company has
prioritized on education and employability which would further lead to employment.
The AA strategy has been developed and keeps evolving depending and taking into consideration the
inputs received from surveys conducted in educational institutions, villages and from Dalit and Tribal
communities on regular interactions.
High Priority Needs
Jharkhand S-K District Odisha
Essential Amenities High High High
Education High High High
Employment High Medium High
Employability Medium High High
Entrepreneurship Low Low Medium
Dalit and Tribal
Population
High High High
Fig. 10: Needs of the key communities
AA Strategy alignment with business objectives:
AA intervention of the company is aligned with its business requirements and has been derived after
thoughtful deliberations. JUSCO is a Power Distribution Licensee for S-K District. Significant share of
JUSCO’s revenue business comes from S-K District. JUSCOs power distribution network passes
through remote villages of S-K Dist. which are mostly habituated by AA Communities. Security of
network and right of way for passing the distribution network can’t be ensured unless an amicable
relationship is established with the communities. JUSCO experienced extreme behaviour from
certain sects of the community which required a change in the mind set so as the community
becomes more receptive to business and welfare activities. JUSCO also realised that there is a huge
scope for AA interventions due to poor education and downtrodden condition of the communities.
With the project operating in a periphery with nearly 40% population from the AA community, the
company has good scope to plan and implement AA programs and in turn gain confidence and
goodwill from the community.
Though the focus of AA interventions is in the S-K District but Company continues to serve the needs
of the community at Jamshedpur through various interventions in the areas of education and
infrastructure.
JUSCO has a long term presence in the state of Odisha and keeping in view the high needs of
employability in the community, JUSCO had partnered with a NGO to work on the skill development
initiatives at Kalinganagar, in the state of Odisha. Jusco is also working for providing safe drinking
water in the schools in the vicinity of TSL Plant. Kalinganagar being the steel hub of the country has a
lot of potential for employment in view of the growth and urbanization of town.
Key AA objectives, Goals and performance measures:
The Strategic objectives, strategic goals, and initiatives/ enablers have been identified after taking into consideration social and business challenges and leveraging strengths and opportunities shown in Fig. 11.
Are
a
Social Challenges Business
Challenges
Focused
Objective
Goal
(1-3 yrs.) Strategy
Edu
cati
on
Lack of quality teaching and teachers in government schools. Inadequate infrastructure in schools attended by Dalit and Tribal children. Lack of motivation among teachers. Lack of awareness and financial strength of Dalit/Tribal parents to provide tuition to their children.
Addressing the
issue of social
unrest due to
illiteracy and
unavailability of
skilled labour
force
To provide support
for education
initiatives in our
area of operation
To increase
the no. of
students
touched
through
educational
interventions
on YoY basis.
Increase access
to
Education
through
educational
intervention
Improve quality
of
Education
A
rea
Social Challenges Business
Challenges
Focused
Objective
Goal
(1-3 yrs.) Strategy
Emp
loya
bil
ity
Unemployment &
Underemployment
among Dalit and Tribal
Youth
Shortage of
skilled workers
in nearby
communities
required in
manufacturing,
service sector
and other
industries
To provide access
to sustainable
livelihoods through
employability
training
To increase
through skill/
vocational/ ITI
Training
Provide skill
training for
creating
employment
opportunities for
educated &
uneducated
Youth.
Emp
loym
en
t
The number of
qualified youth is less
in the vicinity and in
the
community
surrounding our
workplace
The youth from
the AA
community
lack knowledge
on the visibility
and
opportunity in
the
organization.
To provide source
of income to
socially
disadvantaged
community (AA) by
giving employment
as direct and
indirect
employment
Increase in
AA
Employees
Increase in
number of Dalit
and Tribal direct
Employees
through
Attrition Back
Fill
Increase in
number of Dalit
and Tribal
contractors
workers
(indirect)
Entr
ep
ren
eu
rsh
ip
Lack of
entrepreneurship
among the youth
belonging to AA
community.
Uneducated and semi-
educated youth prefer
to be employed as
unskilled labourers
rather than become an
entrepreneur
Channelizing
the
Energy of
semi- educated
youth
belonging to AA
community to
become
entrepreneur
To promote
Entrepreneurship
Initiatives for AA
Category
AA vendor to
be developed
on YOY basis
Training on
Entrepreneur-
ship
development
Earmarking
certain items for
procurement
from AA
Vendors only
Esse
ntia
l
Enab
lers
Lack of essential
Amenities in the
villages under our
intervention
Building goodwill
in the rural
communities.
To work on all the 5
E’s depending on
the need
assessment.
Continue to
work in
adopted
villages
Prioritizing the
need on
education,
health
employability
and
infrastructure.
Fig. 11: Key AA objectives, Goals and performance measures
Vignette on Holistic Development of the Society – Village Harisundarpur
Adoption of first village – Harisundarpur
JUSCO in Partnership with Rotary (West) had
adopted village Harisundarpur in the S-K District in
FY 2014-15. It undertook interventions in all the
5Es including essential amenities. The village has a
total population of approx. 350 people all
belonging to Tribal community. JUSCO is providing
electricity to the village and both partners had
goodwill among the villagers. The adult literacy
rate is very low at 11.38% and 98% of the working
individuals are unskilled.
A need assessment was done for the village and it was realized that a huge scope exists for
development in the areas of education, infrastructural support, skill development and health care.
JUSCO in partnership with Rotary are working in the areas of all the five Es.
Objectives behind adoption of Harisundarpur:
To achieve faster and inclusive growth through infrastructure development, livelihood
promotion, health and education.
To develop leadership among the people to promote social harmony, unity and development.
To generate awareness about the government programs among the people in rural areas.
Provide basic infrastructure to the school for proper and easy learning of the children.
Improving the standard of living by creating employment opportunities for the village people.
Why Harisundarpur: SWOT Analysis
Strength Weakness
Presence of JUSCO as power distributor
Core competency of managing utility services
High employee engagement in voluntarism
Constraint of Financial Resources
Logistical restraint
Opportunity Threat
100% AA population
Potential to work across all 5Es (health, sanitation and infrastructure)
Rotary had worked earlier with the village.
Acceptability of Villagers
Socio-political issues
Fig. 12: SWOT Analysis Holistic development of a society which is predominantly AA
Holistic development of a society which is predominantly AA:
EDUCATION EMPLOYMENT
Started a Library in the school by providing books, book-racks and benches
Providing support to Aanganwadi Started an Academic Centre in the school Two Computers and E-Learning kit Sponsored five youth for skill development
courses.
Indirect Employment, sponsoring teachers for: • Academic centre • Computer • Sewing Coach • Kho-Kho Coach • Archery Coach
INFRASTRUCTURE
EMPLOYABILITY Repair of the old school to establish Diksha Centre
Deep boring facility Overhead tank and pump for running water
facility at the 2 toilets. Constructed hand wash station Increased the depth of a Pond Repair of Hand pumps Provided free electricity, fans and lights to
Diksha centre and School. Plantation of tree with tree guards.
3 youth for ITI training 4 youth for Skill development training Computer training to youth. Sewing training.
SPORTS
Kho-Kho & Archery coaching. Providing required sports materials. Organizing sports tournaments for school
children
HEALTH CARE ENTREPRENEURSHIP
13 Health Camps including Skin, Oral care, cancer screening and for mother and child care.
Eye check-up camp Planting food-bearing plants.
Mushroom cultivation coaching. Sewing coaching Fishery culture Distribution of free agricultural compost & plant
saplings
Fig. 13: Total Initiatives undertaken at village Harisundarpur
Impact
Historically this community stands exploited due to their vulnerabilities and is unwilling to repose trust in others. The villagers are now gradually developing their trust and faith which works towards the betterment of their village.
Education is building stronger foundation of 47 primary school level children who are taught at the Academic Centre also through e-learning
30 youth have enrolled to these classes out of which boys have participated at various district/state/national level archery competition and won accolades.
Safe drinking Water availability throughout the year
Running water made available to the unused toilets improving health and hygiene
Computer coaching is making 22 children and adults computer literate
Sewing classes are developing the skills of the women, coaching about 15 women
Infrastructural support like increasing the depth of the pond is helping the villagers in irrigation
Distribution of free compost and saplings for agriculture
During eye check-up camps 86 villagers were examined: 12 villagers were given specs and 23 Cataract patients identified have undergone free surgery.
Sponsoring 7 youths for ITI training
Case Study – Sports:
Khokho Coaching: Youths of villages of S-K district
are benefiting through the Khokho coaching class
being while at village Baramari. Boys have
participated at various state/ national level Khokho
competition:
National Level: 9 youths have participated on
All India Championship. Out of which, 7 belong
to the AA Community.
State Level: 12 youths have participated at State Level Khokho Competition. All of them belong
to the AA community.
Questions to be addressed Q1) For successful completion of any project the most important enabler is participation from villagers. Whenever any new welfare initiative is planned there is no evident resistance from villagers, however, the participation and volunteering from villagers is minimum. Also, whatever is done for welfare which does not require participation is received well but wherever we seek collaboration we receive very poor to no response. Suggest few steps to be taken for improving the collaboration between organisation and villagers, so that they become partners in village development activities. Q2) The increasing use of alcohol and its drinking-related problems have already emerged as major public health issue and is posing a series trouble in developmental initiatives. The country liquor brews in alternate houses is also an issue. Please make feasible suggestions to address this issue. Q3) Suggest two new initiatives which can be implemented in Harisundarpur (For current initiatives refer - Fig. 13: Total Initiatives undertaken at village Harisundarpur) with detailed analysis of feasibility, rough budget estimate, list of concerned stakeholders, timeline for implementation, impact analysis (metrics for measuring impact before and after implementation), benchmarking if sany.