Sustainability Report - kpcl.com · About the Report This is the first sustainability report of...

Sustainability Report

2015-16

KRISHNAPATNAM

PORT

India’s Largest Port on the Horizon

About the Report

This is the first sustainability report of KPCL. The reporting period of this report is FY 2015-16. KPCL intends to publish its sustainability report annually from now on. Please contact Mr. G. Venugopal Reddy, Asst. General Manager, KPCL for questions regarding this report or its contents. Email: [email protected]

Reporting Boundary

The boundary of the sustainability report for the financial year 2015-16 includes the following entities: Krishnapatnam Port Company Limited; Krishnapatnam Port Container Terminal; CVR Foundation.

Krishnapatnam Port Company Limited carries out major activity of cargo handling services. Major areas at the port include berths, yards, terminals and warehouses (within the port). The boundary of reporting for Krishnapatnam port is limited to cargo handling services and vessel handling services.

In the above given entities Krishnapatnam Port Container Terminal is a wholly owned subsidiary of Krishnapatnam Port Company Limited; CVR Foundation is a charitable trust founded in 2008, institutionalised by Shri C V Rao, Chairman of the CVR Group of Companies. CVR Foundation is part of KPCL’s commitment to local communities. The foundation has taken up several socioeconomic growth initiatives besides other clean and green measures. The CVR foundation is funded by both Navayuga Engineering Company Ltd. and KPCL.

Apart from the above mentioned entities there are 7 associated companies and 48 enterprises which are owned or controlled or significantly influenced by Krishnapatnam Port or their relatives. These entities are majorly involved in various processes of port operations such as transportation, railway, inter-carting, infrastructure support, bagging of cargo, maintenance, etc.

Though these associated companies and sister concerns are majorly involved in the operations within or outside the port for port related processes, but they are out of scope & boundary of the report.

G4-7; G4-17; G4-28; G4-29; G4-30; G4-31

Sustainability Report

2015-16

KRISHNAPATNAM

PORT


4 KRISHNAPATNAM PORT COMPANY LIMITED G4-4

Highlights

Country’s largest waterfront of 12.5 km,

to develop 42 berths of 15-22 m dredged depth

Capacity of up to 200 MMTPA, making it the largest port

in India

Capacity to handle 6 Million TEU p.a., making it one of the

largest container ports in India

State-of-art mechanical cargo handling equipment, capable of

handling bulk cargo at the rate of over 100,000 MT per day

Gearing up to become the ‘Transhipment Hub’

on the East Coast of India

KPCL Profile Sustainability Vision The Porting Giant

Sustainability Report 2016 5

Contents

8

16

22

26

34

44

Chairman’s Message 6

KPCL Profile

Sustainability Vision

The Porting Giant

Caring for the Environment

Our People - Our Pride

Inclusive Growth

External Assurance Statement

GRI Index 56

54

Caring for the Environment Our People – Our Pride Inclusive Growth


Chairman’s Message



I am glad to present to you our maiden

sustainability report for the financial

year 2015-16 and proud to say that we

are first in the country to develop the

sustainability report for the port sector

in the category of non-major ports. The

report encompasses communication

on wide range of impacts due to our

business operations.

We are at the threshold of India’s

new economy and our world-class

Krishnapatnam Port spearheads a new

era in port operations. Our expertise

in infrastructure development projects,

engineering capabilities and managerial

skills gives us the extra edge to provide

the port with outstanding facilities.

We created our organisational ecosystem

to confront issues such as climate

change and resource scarcity by looking

at sustainability perspective of our port

operations.

We are committed to streamline

sustainability in our business operations

by achieving goals based on adoption

of renewable energy, water conservation

and world class security systems. We

are engaging our key stakeholders

by addressing and resolving various

grievances to protect human rights,

environment and labor relations by

various levels of engagements.

We are looking forward to develop our

corporate ethos as clean industry by

achieving carbon negative and water

positive balance.

In the financial year 2015-16, the

company reached revenue of INR

1799.61 Crores as compared to INR

1890.03 Crores in financial year 2014-15.

The lower revenue generation resulted

majorly due to uncertainty in ferrous

industries and lower than expected

operations in energy generation business.

We are expecting a better scenario in

coming years and Krishnapatnam shall

demonstrate sustainable development

through following initiatives –

Short term goals:

• Energy conservation by using LEP in

the high mast lights.

• State of art IT based security

platform – Command Control Center

for 24x7 surveillance of all the port

operations.

• Visitor e-pass through mobile

application to avoid delay

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Green belt development

Mangrove conservation and

restoration

Long term goals:

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Carbon neutral port

World class customer service

Water positive balance

Garden port

We also aim to make a real, positive

impact on the health and welfare of our

community starting from our employees

and reaching out to the communities

and touching as many lives as possible.

With the goal of improving overall socio-

economic status in the company’s areas

of operation, our CSR activities are

focused on five broad themes:

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Education

Skill promotion & job development

Health safety & environment

Community & local economy

development

• Women empowerment

Krishnapatnam Port will catalyse the

growth of India’s economy through

its unrivalled service that is consistent

with international demands with focus

on sustainable business practices.

The deepwater, all-weather port will

fully sustain the growing demands of

international trade. With this vision, we

have set sail on our voyage and want you

to be a part of it. Together, we shall attain

our goals and growth. As the port evolves as a hub for export-

import cargo, we are focused and

committed to building relationships that

thrive on clean business practices and

high ethical standards. Providing excellent

service to port users is our mission and

we take pride in customers’ delight.

C Visweswara Rao

Chairman, KPCL


8 KRISHNAPATNAM PORT COMPANY LIMITED G4-3; G4-9; G4-34

KPCL Profile

Along with the growth in Indian economy, India’s maritime

trade and its contribution to the global market is growing at

rapid pace. This unprecedented growth triggered a demand

for strategic port capacity to sustain trade at lower costs in the

most effective and efficient manner, thus increasing India’s share

in international markets.

Krishnapatnam Port Company Ltd (KPCL) was formed by

winning the mandate from the Govt. of Andhra Pradesh to

develop the existing minor port into modern, deep water

& high Productivity port, on BOST (Build-Operate-Share-

Transfer) concession basis for 50 years. The port is being built

in three phases. Post the completion of the first phase in a

record time of 18 months, KPCL was dedicated to the nation

on July 17, 2008. Second phase of development is underway.

Port has numerous strengths like its area, location, weather

and the credentials of CVR Group that is promoting this port;

it will soon be poised to become one of the biggest ports in

the world.

KPCL is promoted by the Hyderabad-based CVR Group with

Navayuga Engineering Company Ltd. (NECL) as its flagship

entity. The CVR group is highly diversified with a turnover of

US$ 1Billion and an order book of US$ 10Billion comprising

power, steel, port establishment, spatial technology &

applications, information technology and exports.

Commissioned in July 2008 and constructed in a world record

time of just 18 months, KPCL is one of India’s largest and

fastest growing seaports. The Port is envisioned as a futuristic

modern, deep water & high productivity Greenfield port with the

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view to foster India’s EXIM trade. It is fast becoming a port of

choice for all international cargo originating from and destined

to Southern & Central India because of following salient

features:

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Fastest commissioned port in the world

24x7 all weather terminal with no tidal restrictions

Container Terminal is built in two phases:

Phase I with

• Capacity of 1.2 Mn TEUs, commissioned on

September 30, 2012

2 Container Berths

Total Berth Length 650 meters

Terminal Capacity 1.2 Mn TEU P.a

Draft Alongside 14.5 meters

Total Area 36 hectares

Yard Ground Slots 4,600 TEU

Yard Capacity 18,400 TEU

400 Reefer Plugs

5 Super Post Panamax Quay Cranes

4 Rubber Tyred Gantry

10 Reach Stackers (Kalmar)

Rail Siding 2 sidings on dock

Phase II with

• Planned capacity of 4.8 Mn TEUs P.a

Governance

Our board of directors comprises of 9 members, out of which 2 are independent directors. Mr.

C.Visweswara Rao is the Chairman, Mr. C.Sasidhar is the Managing Director and Mr. Anil Yendluri is

the Director & CEO of the company.



Our Vision

To evolve as India’s largest gateway in the East Coast and the Port of choice with

World-class Infrastructure

Efficiency

Hinterland Connectivity &

Unrivalled Customer Service along with Eco-friendly Development

Awards

Left to right: ‘First Place’ in Sectoral Award for EHS Practices in Infrastructure Sector at CII Southern Region

Environment, Health and Safety awards (EHS) 2016; Golden Peacock Award 2015 for Environment Management;

Education and Training – Sea trade Maritime Awards 2016

Other Awards

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‘4 Star Rating’ in CII Southern Region EHS Award 2016

India’s Best Port Award at the 2nd Markenomy Award

2015

• Best Management Award - Employee Welfare for 2015,

Government of Andhra Pradesh

• ‘Indian Maritime Businessman of the Year’, C Sasidhar,

MD, KPCL, The Gateway Awards 2015

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• Port/ Terminal operator of the year : Health, Safety &

Environment 6th All India Maritime And Logistics Awards

2015

Corporate Social Responsibility Award - South East Cargo

& Logistics Awards 2015

Corporate Social Responsibility Award - Seatrade Maritime

Awards 2014


10 KRISHNAPATNAM PORT COMPANY LIMITED

KPCL Master Plan

12 KRISHNAPATNAM PORT COMPANY LIMITED G4-5; G4-6

THE KPCL Advantage

The port is well on its way to becoming the largest automated

port for exports and imports in South Asia. It rates high on all

the parameters of operations, including optimum cost, reliability,

time and the best available service to customers.

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Fastest turnaround time for all types of vessels

Minimal waiting time leading to almost nil Demurrage

Deep draft capable of handling Super Capesize vessels

of upto 200,000 DWT, leading to significant savings in

ocean freight

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All weather port with 365 days of operations

Round-the-clock navigation without any restrictions

Single window clearance: By providing end-to-end services

Huge backup area of 6,800 acres

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• Excellent connectivity by both rail and road to all parts of

India

Quick response customer service cell to provide round-the-

clock support

• Customized solutions based on the requirements of the

customers

Two-way traffic for both onshore & offshore logistics

leading to overall cost competitiveness

With bulk cargo handled by mechanized handling systems

at dedicated storage areas, the port provides clean and

contamination-free handling facilities for break-bulk cargo.

Hinterland Connectivity

Located in the Nellore district in the

state of Andhra Pradesh on the East

Coast of India and close to Southeast

Asian countries, KPCL is an ideal port

of choice.

Accessibility

Multimodal connectivity by road & rail to

the national grid

AIR: Chennai International Airport (180

km); Tirupati Domestic Airport (120 km)

RAIL: Krishnapatnam Rail Co Ltd (KRCL)

– SPV formed for rail connectivity to Tertiary Hinterland port. 19 km of double rail line connecting

CH AT TIS GA RH

Venkatachalam station to port; Rail

connectivity of additional 91 km from

Venkatachalam to Obulavaripalle, with an

outlay of about INR 1600 Crores

ROAD: Dedicated 4-lane road (25

km connecting National Highway 5);

Dedicated Over Dimension Cargo

(ODC) road around the port for handling

Project Cargo

MAHARASHTRA Secondary Hinterland

ANDHRA PRADESH

Immediate Hinterland

KARNATAKA

NELLORE Krishnapatnam Port Ennore

Chennai

TAMIL NADU


G4-9 Sustainability Report 2016 13

Infrastructure Highlights

KPCL has state-of-art modern facilities to ensure efficient

operations in all the areas thereby giving high load & discharge

rates leading to faster turnaround time for all types of vessels

and minimal waiting time leading to almost nil demurrage

• Total wharf length of 3250 meters capable of berthing up to

14 vessels simultaneously

• Deepest draft in India with 18 meters alongside the berth.

Draft will be increased to 22 meters in Phase 3

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Water front area of 290 sq. km, one of the largest in India

One of the largest turning circles with a diameter of 500

meters

• Seamless last-mile connectivity providing fastest

turnaround time of Trucks/ trailers and cargo trains

Dedicated cargo-wise railway

sidings for coal, container,

gypsum, fertilizers, granite cargo,

agri cargos, iron ore, etc

• Dedicated 4-lane road of 26 km capable of handling

5000 trucks per day & 19 km of double rail line capable of

handling 60 trains per day

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Dedicated port owned cargo handling heavy equipment

Dedicated cargo-wise railway sidings for coal, container,

gypsum, fertilizers, granite cargo, agri cargos, iron ore, etc

Total wharf length of 3250 meters

capable of berthing up to 14

vessels simultaneously



State-of-the art Infrastructure

KPCL handles a wide range of cargo from agri commodities and animal feed to minerals and large machinery. To cater to the client

needs of handling volumes of such diverse cargo, KPCL has developed state-of-the-art facilities. It ensures efficient operations in

all the areas thereby giving high load & discharge rates leading to faster turnaround time for all types of vessels and minimal waiting

time resulting in almost nil demurrage. The details of our world-class facilities are:

Cargo handling facilities

• Liebherr, Gottwald and

Sennebogen cranes. These cranes

provide a discharge rate of 750 to

1,000 MT per hour per crane

• Conveyor system with a capacity

up to 4,000 TPH

• 20 automatic bagging machines with

a total capacity of 42,000 MT/day

• Night navigation: Round-the-clock

pilotage.

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Four ship unloaders

20 hoppers with a capacity of 120

CBU

• Dedicated port owned cargo

handling equipment like tippers,

loaders, excavators, dozers, etc.

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21 weighbridges

Dedicated railway sidings for Coal,

Fertilizers, Limestone, Iron Ore,

Granites and Containers

• Locomotives

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10 operational berths. More berths

under construction

A dedicated berth to handle Over

Dimensional Project Cargo (ODC) is

already operational. Load bearing

capacity of this berth is 12 MT per

sq. mtrs, the highest for any berth in

any port in India

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No beam & LOA restriction

Breakwater sheltered harbor

South breakwater of 2 km

North breakwater of 1.5 km

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Approach channel of 7 nm

Channel width 200 metres, Channel

depth 22 metres

Three cutter suction dredgers – 2

having a capacity of 500 CBM per

hour & the third has a capacity of

2,500 CBM per hour

Three trailer suction dredgers

- Navayuga-1 is of 7,000 cbm

capacity, Navayuga-2 is of 4,500

cbm capacity & Navayuga-6 is of

7,000 cbm capacity

Marine Infrastructure

• Deep draft of 18 metres alongside

the berth

• Water front area of 290 sq. km,

one of the largest in India

• One of the largest turning circles

with a diameter of 500 metres


G4-15; G4-16 Sustainability Report 2016 15

• Other dedicated flotilla includes high speed pilot boats / barges / survey boats /

high speed security cum patrol boats Warehousing Facilities

Closed warehouses of varied sizes with

a total covered area of 1.88 M. sq. ft for

storing sensitive cargos like Fertilizers,

Agri commodities, etc.

• Four dedicated tugs with Bollard pull of 60 tons, 50 tons & 2 of 40 tons

respectively

Trade and Transport Terminal

• Krishnapatnam Port Trade and

Transport Terminal (TTT) was

inaugurated on January 26, 2013

• Developed an exclusive office

complex facility within its premises to

provide working space for registered

port users such as Transporters

and CHA’s to carry out their daily

business activity.

• Built up area of 88,000 sq. ft.

Storage Facilities

• 6800 acres dedicated storage yards

for coal & clean cargos respectively

• Proximity to transport offices in

Nellore and Muthukur. The existing

inflow and outflow of road vehicles at

the port is around 2,500 per day

Certifications

KPCL has following certifications:

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Quality Management System ISO 9001:2008

Environmental Management System ISO 14001:2004

Supply Chain Security Management System ISO 28000

Occupational Health and Safety Management System OHSAS 18001:2007

Authorized Economic Operator by Department of Customs, Central Excise

& Service Tax, Govt. of India

International Ship and Port Facility Security Certification

Navigational Safety in Ports Committee

Associations

KPCL is a member of the following

associations:

• Confederation of Indian

Industry(CII)

• Associated Chambers of

Commerce of India (ASSOCHAM)

• India Pulses and Grains

Association (IPGA)

• Andhra Chamber of Commerce



Sustainability Vision

KPCL envisions to evolve as the most sustainable port in the

country. By adopting state of art infrastructure, in the way we

operate and efficiently deliver the services, we commit to emerge

our port as a leader in sustainability and accessibility. Through

our green belt development, conservation & restoration of

mangroves, nurseries and plantations are some of the chosen

paths of our drives towards sustainability. We believe in clean

and green industry practices in enhancing the quality of our



environment. We are moving from dependence on fossil fuels for our operations towards renewable and clean energy sources .

Some of the initiatives taken up by KPCL in past year are:

Reduced carbon footprint

Railway lines have been strategically developed till the storage

yards, which are within a distance of 1 km from the berths,

thereby reducing inter-carting and GHG emissions. In most

ports of India, the distance between berths, storage yards and

Railway sidings is in the range 4-10 km, leading to lot of truck

movements. All Railway lines inside the port are also completely

electrified further reducing the GHG emissions.

KPCL has developed mechanised conveyor system from berths to

storage yards which will reduce tipper usage from berths to storage

yards. A conveyor system has also been developed from berth to

APGENCO & TPCIL plants avoiding tipper usage from berths to

destination points & thereby significantly reducing GHG emissions.

Development of electrified railway lines and mechanical

conveyor systems replacing the earlier traditional trucking

resulted in fuel savings of 9446 KL, resulting in reduction of

approximately 24,935 Metric Tonnes of CO2 emissions.

Recycled water

KPCL recycled 14% of the total water used.

CSR activities

Carried out various CSR activities promoting Education, Health,

Safety, Environment, Skill development, Community development

and Women empowerment, covering more than 78 villages

around the port.

Greening the Port

We have planted over 2.7 million saplings in more than

254 Ha, well beyond statutory requirement, of only 191 Ha.

Several such measures help us achieve our goal of becoming a world-class port, driving the

economy while achieving sustainable and inclusive growth.


18 KRISHNAPATNAM PORT COMPANY LIMITED G4-24; G4-26; G4-27

Stakeholder Engagement

KPCL has identified all its relevant

stakeholders and engages with them

periodically. Suggestion boxes are placed

inside and outside the port for internal

and external stakeholders.

Employees are one of the most

important stakeholders and KPCL

engages with employees at various levels

of the organization. Board members

and executive team meet once in a

quarter year to discuss the financial

health and performance of the business.

All employees are engaged during the

performance review. For confirmed

employees performance review happens

once in a year, for probationers it

happens on completion of probation i.e.

6 months and for trainees it happens

periodically based on the training period

(6 months / 1 year / 3 years). Induction

programme is carried out for new recruits

and exit interview is done for employees

leaving the company. Throughout the

year there are cultural and sports events.

Neighbouring Industries

Local Residents

Academic & Scientific Community

Government

OEMs & Vendors

Customers

Employees

Our Stakeholders

Media



Employees take part in various sports like cricket, volleyball,

carom, etc., in a sports meet held annually. Training related to

environment, health and safety is periodically conducted for

employees. Employees are also engaged every month during

Safety Committee meetings.

Customers and customer interests always lie at the core of

KPCL’s ideals. KPCL takes initiatives to organise events and

business meets which enable the customers and the port

officials to get an opportunity to interact, which is important

in developing a dependable bond between the Port and the

Customers. The Port organises visits for customers so that

they can get a clear view of the port operations, and sends

out regular reports and reviews to ensure that the customers

are always aware of the status of their cargo. The Port also

has a bimonthly magazine which is circulated among both

internal and external stake holders. This talks about the latest

developments and success stories at the port.

OEM’s and Vendors are engaged during contract discussions.

The discussions mainly revolve around payment and quality issues.

Port has huge logistics support fleet like Volvo’s, Scania Tippers,

Loaders, Excavators etc. Third party contractors are also engaged

during contract discussions related to payments & feedback on

services rendered by the port, as and when required.

Port dynamics have changed a lot in the last decade and

ports need to interact on daily basis with various government

bodies. We engage with various government departments

as and when required for contracts renewal, payments, official

meetings related to compliance, etc. We also interact with

government departments through industry bodies and open

invitations. Government departments that we engage with are:

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State Electricity Board for power availability

Police Department for organisation security and related issues

State Forest Department for environmental development

State Industrial & Infrastructure Development Authorities for

land related matters

Labour department for compliance to Contract Labour Act

Fire Department for support regarding fire tenders and

fitness license renewal

Excise Department for excise related matters and audits

State Pollution Control Board for environmental workshops

and compliances

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Indian Railways

Customs department of ports for cargo customs related

matters

We also engage with neighbouring industries through open

invitations to discuss environment, safety & security issues and

common issues.

Engagement with local residents is mostly need based and

is related to employment, community development initiatives,

environmental issues and sponsorship for social infrastructure.

We do engage with Academia and Scientific Community,

for example we do management development programs with

Administrative Staff College of India, Hyderabad. NGOs are

engaged through CSR project meetings as and when required

to discuss transparency in plant operations & policies.

Media is engaged as and when required for sharing the new

developments at the port and during customer interactions.



Materiality Analysis

At KPCL, we have considered our material topics/aspects

based on how relevant they were, the various departments

discussed how their respective activities impact the stakeholders

and as well economic, environment and social impacts on the

organisation. Our operations influences and is influenced by

different stakeholders: everything from owners and employees

to customers, suppliers and public agencies. Co-operation is

the key to long-term success and this dialogue is maintained

in a number of different ways: through regular meetings with

the Board, customers and public agencies, participation in

trade organisations, annual customer and employee surveys,

development review, workplace meetings, project meetings,

regular audits of operations and more.

Each and every material aspect boundary has been defined

(facing page) and the related management approach has been

provided in individual sections.

Based on a materiality analysis that included assesing

environmental management processes, assessments of supply

chain, impact on communities, business practices and various

regulations, we have arrived at our materiality matrix that

indicates several issues that are important to both, KPCL and

its stakeholders.

Below is our materiality matrix where the significance and

impact of the aspects are clearly represented in the two

dimensional chart.

Low Materiality Matrix

High High

Indirect Economic Impacts

Indirect Economic Impact GrievanceNon-Discrimination Mechanisms

Labour Practices

Labour Practices Grievance Mechanisms

Grievance Mechanisms for Impacts onGrievance Mechanisms Society for Impacts on Society

Occupational Occupational Health & SafetyHealth & Safety

Security

Influence onon Stakeholder Assessments and Decisions Influence Stakeholder

Assessments and

Decisions

Employment Non- Discrimination EffluentsEmployment

Effluents

Local Communities

Local Communities

Security Environment ComplainceEnvironment

Compliance

Human Rights GrievanceHuman Rights Grievance Mechanisms Mechanisms

Training & Education Training & Education

MediumMedium Equal Remuneration for Women & Men

Water Water

Environmental GrievanceEnvironmental GrievanceCompliance - Local communiitiesMechanismCompliance - Local

Communities Mechanism Child Labour

Economic Performance

Biodiversity

Equal Remuneration for Women &Diversity & Equal OpportunityMen

Waste Waste

Diversity & Equal Opportunity Air EmissionsAir Emissions

Customer Privacy

Forced and Compulsory EnergyLabour

Energy

Economic Performace

Biodiversity

Child Labour

Marketing Communications Marketing Communications

Forced and Compulsory Labor

Customer Privacy

LowLow

LowLow Medium Medium High

High

Significance of Economic, Environmental and Social Impacts Significance of Economic, Environmental and Social Impacts


G4-19; G4-20; G4-21 Sustainability Report 2016 21

Material aspects and boundary

Materiality Aspects

Our Economic Resonsibility Economic performance

Indirect Economic Impacts

Water

Biodiversity

Emissions

Our Environmental Responsibility Effluents & Waste

Environmental Grievance Mechanisms

Energy

Overall Expenditure on Environment

Environmental Compliance

Human Rights Grievance Mechanisms

Non-discrimination

Occupational Health and Safety

Training & Education

Diversity and Equal Opportunity

Equal remuneration for women and men

Labor Practices Grievance Mechanisms

Customer Privacy

Our Social Responsibility Child labor

Forced and Compulsory Labor

Security

Employment

Marketing Communications

Local Communities

Grievance Mechanisms for Impacts on

Society

Compliance - Local communities

Within and outside organizational

boundary

Within the organizational boundary


Within and outside organizational

boundary

Aspect boundary


Outside organizational boundary



The Porting Giant

KPCL has redefined India’s maritime landscape by becoming

India’s new EXIM hub. It is India’s largest gateway on the East

coast. Located 180 Kms North of Chennai in Nellore (district

HQ), the port creates multi-modal connectivity for its customers’

needs. With the deepest draft of 18 m and capability of

handling Cape size vessels up to 2,00,000 DWT, the all-weather

port operates 365 days a year.

The Port has multiple cargo handling capabilities with

infrastructure, logistics setup of international level and largest

port-based storage area. Given below are the services and

activities which give KPCL a competitive edge in the port sector:

1.

2.

3.

Single window clearance: End-to-end Port services

Excellent Customer Service

Efficient cargo handling: Negligible Cargo loss and

Extensive Storage Yard / Covered

4. Warehouses: Customer specific storage yards and Custom

Bonded Warehouse


G4-12; G4-EC1; G4-EC2 ; G4-EC3 ; G4-EC4 ; G4-EC7; G4-EC8 Sustainability Report 2016 23

Krishnapatnam Port retained economic value of 126.83 Crores

in FY ’16. The net revenue of Krishnapatnam Port decreased

by INR 90.42 Crores compared to previous year. This

decrease is due to reduced operations due to unfavourable

demand of steel and iron industry and lower than expected

business from energy generation businesses.

Direct Economic Value Generated

Net income

Revenues from Financial Investment (Interest, Dividend, Royalty, Rent of Property etc.)

Revenue from sale of physical assets & others

Total Economic Value Generated

FY ’16 (Rs Crore)

1,797.14

1.19

1.28

1799.61

Company has initiated the process of restoration of affected

Infrastructure and the actual cost incurred for such restoration

up to March 31, 2016 amounting to Rs. 101.51 Crores

(excluding Service tax) has been included in the Current Assets

as Claim Receivable.

Retirement benefits in the form of Provident Fund is a defined

contribution scheme. The contribution to the Provident Fund is

made as per the statutory norms.

KPCL has obtained a Group Gratuity Policy from LIC.

Export incentive on deemed exports under Served from India

Scheme is recognized based on the Duty Free Credit Entitlement

Certificate issued by The Director General of Foreign Trade to the

extent utilized by the company or transferred to entitled group

companies. KPCL receives assistance from the government in the

form of Export Credit Agencies (ECAs) – INR 26.25 Crore SFIS.

Since the establishment of KPCL a lot of companies have

set up around it and a lot are in pipeline. Such as power

companies like AP Genco, Meenakshi power, Gayatri power,

Tpcil, NCC Power and Kineta Power. Food & oil companies

like South India Edible Oils, Emami Foods, Adani Wilmar,

Saraiwaala Agri Refineries and Gemini Oils. There are immense

opportunities for port-based lubricant plants, sugar refineries,

cement and steel manufacturing plants to come up around

Krishnapatnam. SBQ Steels with 0.5 Million MT steel integrated

plant is already operational near the port. Other industrial

developments like leather park and IFFCO Kisan SEZ are also

coming up around the port. Due to the phenomenal growth

of the port and the industries around it, Krishnapatnam has

been finalised as one of the three industrial nodes in the

Chennai-Bangalore Industrial Corridor (CBIC) and Chennai-

Krishnapatnam-Visakhapatnam industrial corridor.

Krishnapatnam Infratech Private Limited is setting up a

Multiproduct Industrial Park at Chillakur Mandal, SPSR

Nellore District. The area of 12,000 acres of land will be

developed in two phases of 6,000 acres each. In the future

a lot of industries are expected to come up in the proposed

Industrial park.

KPCL has provided jobs to approximately 5,710 people through

associate companies and has provided indirect employment to

approximately 3,000 people.

The operating costs is distributed among Particular Handling

& Storage Expenses, Repairs & Maintenance, Marine Direct

Expenses, Power and Fuel Expenses, Security Charges and

Concession Fee to GoAP.

KPCL procures fuel, steel, DG sets, nuts & bolts and other store

materials for port operations. Fuel, stores and spares procured

for FY ’16 amounted to Rs 217.88 Crore. Fuel was procured

mainly from local suppliers.

Direct Economic Value Distributed

Operating Costs (Manufacturing, Administrative & Operating Expenses)

Payment to Capital Provider (Dividend, Interest Loan)

Payment to Employee (Salaries, Benefits, etc.)

Payment to Government

Community Investment

Total Economic Value Distributed

FY ’16 (Rs Crore)

671.11

647.82

60.57

279.40

13.88

1672.78

KPCL has 68,00,07,962 (P.Y. 68,00,07,962) - 0.001%

Compulsorily Convertible Cumulative Participatory Preference

Shares of Rs 10/- each.

Payments to Providers of Capital

Dividends to all shareholders

Interest payments made to providers of loans

Total Payments to Providers of Capital

FY ’16 (Rs Crore)

0.0068

647.81

647.82

A deep depression followed by floods struck Krishnapatnam

on 8th and 9th November 2015 causing extensive damages to

the Company’s marine and civil Infrastructure. The Company

has lodged claims with its insurance company for Rs. 662.50

Crores for restoration work of its assets as well as for business

loss. On settlement of the claim, any resultant net loss, would

be accounted for in the following financial years. However, the



A customer-centric approach

Apart from existing advantages of KPCL like excellent

connectivity, all-weather operating port for 365 days a year,

fastest turnaround time, the port creates value proposition

for its clients and maintains world class customer service by

ensuring the following:

•

•

•

•

Single window clearance: End to end port services

Excellent customer service: 24X7 for 365 days

Efficient cargo handling

Extensive storage yard/Covered warehouses: Customer

specific storage yards

• Custom-bonded warehouses

Single window clearance

One of the most vital facilities provided by the port is its

adoption of the Single Window Clearance System. KPCL is

probably the first port to implement this system that provides

end to end services to every customer, around the clock

without having to deal with multiple agencies and officers to get

their cargo cleared. All facilities for the clearing of the cargo are

taken care of within the premises of the Port. Once the cargo

reaches the port, KPCL takes care of documentation, loading/

unloading, transfer from and to the warehouses, bagging, and

transportation to the specified destination.

Customs documentation is expedited within the port premises

Cargo reaches the port

Shipment is then unloaded from the vessels onto the vehicles/conveyor

4

Cargo is loaded into trucks or wagons of rails for transportation to the specific destination, by road or by rake (rail)

4

4 Watchful and vigilant process of bagging is commenced, with the use of the bagging machines

Cargo is transported/ conveyed to the storage area or to warehouses

4

4


G4-PR7; G4-PR-8 Sustainability Report 2016 25

Customer Satisfaction

Customers and customer interests always lies at the core

of KPCL’s ideals. It is vital for the Port to maintain cordial

business relation with all its customers, and in the process

also bring in new customers to promote the business even

further. The customer is the priority of the port and there are

several facilities provided for the ease and comfort of the

customers. We have the end-to-end single window clearance

system, along with state of the art infrastructure to provide

safe, secure and swift port operations.

Ease of Doing Business (EDB)

The implementation of the Single Window Clearance system

at KPCL has brought an exemplary shift in cargo handling,

by increasing the efficiency, productivity and ensuring cost-

savings for all our customers. By ensuring safe and secure

management and handling of the cargo and an assured

protection through a flawless, well-inspected procedure, the

port not only established the policy of Ease of Doing Business

(EDB) for the further benefit and convenience of the customers,

but also turned it into a strong business model and an ideal

organizational trait.

KPCL conducts several activities for the benefit of customers

as well as for increasing the interaction and bond between the

Port and the clientele. Customer satisfaction survey is carried out

annually to ensure good quality of cargo, minimise cargo loss,

improve service quality, ensure proper clearance of goods, etc.

The survey is carried out through feedback forms provided to

customers through email or manually. The performance customer

satisfaction mechanism is helping us in identifying and improving

our services to the clientele and an organisation as whole.

There have been no incidents of non-compliance with

regulations and voluntary codes concerning marketing

communications and no complaints regarding breaches of

customer privacy and loss of customer data.

Non-Disclosure agreement

KPCL is a vast avenue of new opportunities for doing business

with various associations and organisations who may or may

not be from a similar commercial milieu. In this context it

becomes mandatory to follow certain ideals of professionalism

and confidentiality to protect and preserve every detail of the

clientele as well as to ensure the safe and smooth functioning of

the port’s activities. The following is assured at the Port:

• To safeguard client details and ensure a speculation or

scrutiny-free work ambience, no customer is to be allowed

on the floor of work.

• Unique passwords for all systems and accounts to ensure

complete protection of data.

•

•

Prompt and focussed addressal of customer queries.

Access cards restricted to people who are entitled to enter

the premises of any specific office.

• Clear desk policy ensures that there is no means by which

any documents can be accessed by the wrong person.

Customer satisfaction survey is

carried out annually



Caring for the Environment

KPCL is committed to identify, prevent, control and minimise

adverse environmental impacts with seaport operations; this

is done not just by following legal requirements but by working

beyond statutory compliances in conservation and restoration

of the natural resources. Our policy for environment, health and

safety and its commitments are in line with our vision to evolve

as India’s largest gateway in the east coast as port of choice

with eco-friendly initiatives through sustainable development. In

order to achieve this vision, KPCL is committed to the following:


G4-EN11; G4-EN14 Sustainability Report 2016 27

1. Identify, prevent, control and minimize adverse

environmental impact and occupational health hazards,

associated with seaport operations.

6. Develop and maintain highly motivated, trained work force

for effective management of the environment, occupational

health and safety.

2. Prevent pollution, injury and ill health to all port employees

and port users.

7. Evaluate, review and modify environmental, occupational

health and safety management practices factoring

regulatory requirements, community concerns and

technological advancements. 3. Continual improvement in environmental, occupational

health & safety management systems and performance

by setting objectives and targets which are measured at

regular intervals.

8. Developing lush green surroundings at the seaport,

establish appropriate work culture, which is in harmony

with nature. 4.

5.

Conserve natural resources and reduce carbon foot print.

Strictly comply with all applicable legal & other statutory

requirements.

9. Promote implementation of 4Rs – “Reduce, Reuse,

Recycle, Recover” among the employees and the local

community for an inclusive and sustainable growth.

Conservation and Biodiversity

Although KPCL does not have any operations in any high

biodiversity value area and there are no IUCN Red list species

and national conservation list species with habitats in operational

areas, it has in place a well formulated biodiversity policy.

Mangroves in the port premises and surrounding areas are

well protected and conserved. KPCL has made conscious and

focused efforts for conservation and restoration of mangroves like

•

•

•

•

•

•

Engagement of mangrove protection guards

Provision of barbed wire fencing all around the existing

mangrove vegetation

Educating people on the importance of mangroves through

sign boards

Involving the local people in the protection and restoration

of the mangroves

Providing free gas connections to avoid mangrove cuttings

Compensating the abandoned fish and prawn ponds for

raising the mangroves, etc.

KPCL monitors the mangrove and its biodiversity with the

help of technical experts in mangroves conservation and

development on a quarterly basis and submits the report

of conservation and development of mangroves to the

management and statutory bodies.

Floods in October 2015 caused a huge damage to the mangroves.

Mangroves treatment and restoration work is in progress now.

KPCL has taken measures to prevent pollution in the harbor basin.

KPCL monitors marine waters by sampling the water on weekly

basis for measuring the zooplanktons and phytoplanktons through

third parties accredited by NABET and recognised by MoEF.

Till the end of 2015-16, KPCL

planted 22,45,627 new plants

and replaced 4,45,687 casualties

Developed more than 50

hectares of native mangrove

plantations

Fish bone channels have also been dug up to provide tidal

water and organic matter to flow into the low lying areas, to

ensure the survival of the mangroves. KPCL is also developing

mangroves in new area of the port premises.


28 KRISHNAPATNAM PORT COMPANY LIMITED G4-EN3

New plantations and casuality replacements in FY ’16

125999! New Plantation! Casuality Replacement!

81165! 77667!

53222! 59075!

35200!

17635! 17012!

51256! 52305!

5688! 5855! 712!

2217! 4862! 3872! 8500!

3324! 5615! 4803!

12708!

Mar-16

23! 0!

Apr-15 May-15

0!

Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16

KPCL has developed green belt of 22.82

Ha with 6,28,715 saplings in FY ’16 in the

Port area. It has set a target of planting 10

million trees and saplings in the vicinity of

the port and has already been successful

in planting 2.7 million, till date. This Green

Drive will help decrease the existing

temperatures by 2-3 degree Celsius,

and will also set a good example to

the many industries around the port,

to be a part of this great endeavour.

Through this Green Drive, the port not

only helps establish a sustainable and

healthy environment but also brings

the entire community to work for the

cause of saving and conserving the

region’s biodiversity.

Energy and Emissions

At KPCL, energy consumption within the boundary of the port

is mainly due to usage of fossil fuels in the following equipment/

machinery.

1. Diesel consumption in inter-carting vehicles used to move

cargo from unloading/loading vessel to storage yards or

vice versa

2. Marine operations machinery such as motorboats, tugs,

dredgers etc., which are used to course correct the

incoming and outgoing vessels from/to breakwaters

consume High Flash High Speed Diesel

3. Motor spirit/petrol used for port vehicles for internal

commuting of the employees

4. Diesel usage in the motors, where liquid cargo (mainly

edible oil) is transferred to the consumers through

dedicated pipeline directly from the vessel

Diesel: 977479.1 (87%)

5. Diesel consumed in equipment used in yard such as RTGs,

yard tractors, reach stackers and empty container forklifts, etc

Electricity is the other main source of energy used for power

cranes, reefers, electrically powered mobile vehicles, lighting

and buildings, etc., energy received from other sources outside

the boundary and consumed within the boundary of the port.

Energy consumption within the organisation (GJ) in FY ’16

Petrol: 1886.64 (1%)

HFHSD: 57717.3 (4.5%)

Grid: 85271.88 (7.5%)


G4-EN6; G4-EN15; G4-EN16 Sustainability Report 2016 29

During the reporting year, KPCL imported electricity from

Southern Grid. Since November 2015, the Port has taken

an initiative to reduce electricity from grid mix and through

Group captive power plant (Wind mill) to replace 70% of its

electricity need with renewable wind power. Hence, have

been able to reduce around 20% of grid electricity with

renewable wind power.

Scope 1 emissions due to fossil fuel consumption at the port

operations are computed based on IPCC emission factors and

from publicly available authentic sources. Scope 2 emissions

are calculated using country nodal agency’s Central Electricity

Authority emission factor which is 0.82 tCO2e/MWh which

accounted to 15640.88 tCO2e emissions for FY ‘16.

At KPCL, we monitor significant air emissions such as PM2.5,

PM10, NOx and SOx at seven locations in and around the port.

This data is monitored and measured by both internally and

externally as a mandatory requirement and reported Pollution

control board in regular intervals.

Share of renewable wind energy consumed through Grid (GJ)

in FY ’16

Grid-Wind Energy: 16604.60 (19%)

Grid-Rest: 68667.28 (81%)

Scope 1 emissions (Tonnes of CO2) in FY ’16

HFHSD, 1087.70 (6%) Petrol, 32.5 (0.1%)

Diesel: 18365.56 (94%)

Monthly average of significant air emissions in FY ’16

Monthly average value of NO2 (St Limit: 80)Monthly average value of

NOx (St Limit: 80)

Monthly average value of PM10 (St Limit: 100)Monthly average value of

PM10 (St Limit: 100)

Monthly average value of SOx (St Limit: 80)

Monthly average value of SO2 (St Limit: 80) Monthly average value of PM2.5 (St Limit: 60)

Monthly average value of PM2.5 (St Limit: 60)

March '16

February '16

January '16

December '15

November '15

October '15

September '15

August '15

July '15

June '15

May '15

April '15

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00


30 KRISHNAPATNAM PORT COMPANY LIMITED G4-EN5; G4-EN18; G4-EN21; G4-EN19; G4-EN20

Stack emissions

KPCL is monitoring stack emissions of a 380 KVA DG Set at port admin

building, whose stack emission test is carried half yearly. Being installed

last year the monitoring stack emission test was carried out in the month of

February by external consultant.

DG Set Stack emission rate in FY ’16

Parameter

Particulate Matter – PM

Oxides of Nitrogen – NOx

Carbon Monoxide – CO

Hydrocarbons – HC

Unit

g/kw-hr

g/kw-hr

g/kw-hr

g/kw-hr

Result

0.14

1.5

0.82

0.2

Standard limit

0.3

9.2

3.5

1.3

•

Major initiatives to

reduce GHG emissions

At most ports in the country,

distance berth, storage yards and

railway sidings are in a 4 to 10

Km radius. In order to curtail the

emissions due to inter-carting by

trucks, railway lines have been

strategically developed till the

storage yards which are within a

distance of 1 km from the berths

thereby reducing truck movement.

• Pipeline to transfer liquid cargo

from port to nearby industries has

decreased the usage of diesel

used for inter-carting and indirectly

reduced scope 3 emissions caused

by transportation.

• Railway lines inside the port are

completely electrified reducing the

GHG emissions.

• KPCL has developed mechanised

conveyor system from berths to

storage yards which will reduce

tipper usage.

Refrigerants consumed at KPCL in FY ’16 (in MT)

R-134A (0.002)

R-404A (0.0085)

R-407C (0)

R-410A (0.029)

R-22 (0.533)

R-417A (0.003)

Service intensity

At KPCL 33.36 Million Metric tonnes of cargo is handled and 1,787,723.96 MT

of cargo is through 118,628 TEUs. The energy intensity to handle cargo in

FY ’16 is 2432.95 GJ/Million MT. In case of GHG emission intensity of the cargo

handled is 1002.21 MT of CO2/Million MT.

Ozone depleting substance usage

Consumption of Ozone Depleting Substances (ODS) is limited to refrigerants

for Air Conditioning in the offices at KPCL. R-22 which has higher ozone

depleting potential is the highest consumed refrigerant. KPCL is trying to

gradually replace R-22 with R-134 and other less harmful refrigerants.

• Developed mechanised conveyor

system from berth to APGENCO &

TPCIL plants avoiding tipper usage

& thereby significantly reducing GHG

emissions.

• Developed electrified railway lines

and mechanical conveyor systems

replacing the earlier traditional

trucking, resulting in fuel savings of

9,446 KL. This implies a reduction of

approximately 24,935 Metric Tonnes

of CO2 emissions.



Water management

KPCL attempts to deal with water in a holistic fashion, taking

into account of all its requirements by ‘Smart, Wise & Green

Act’. KPCL’s sustainable act helps preserve 41% of rain water

through harvesting.

KPCL consumed 6,35,014 M3 of water during the reporting

period. The Port is mainly dependent on surface water for

carrying out port operations. A part of water requirement for

green belt is met through collected rain water. Around 14% of

the total water used is recycled by KPCL. No water sources

have been significantly affected by usage of water by KPCL.

SMART ACT (Conserve water)

KPCL has adopted new technology/modifications in process for

30% reduction in water consumption by 2016:

1. KPCL has deployed two atomizers to reduce water

consumption for dust suppression on wet roads and

multipurpose berths.

2. Developed dry roads and introduced use of dry type dust

sweeping systems like vacuum and ride on type road

sweeping systems for cleaning roads, which reduce 40%

water usage for road dust suppression.

3. Installed conveyer system for handling bulk cargos which

reduce spillages and in turn reduce water consumption for

cleaning roads.

WISE ACT (Reuse water)

KPCL has adopted techniques to recycle and reuse water

wherever it is possible:

1. KPCL has commissioned STP of 300 KLD capacity in

2011 and is using treated water for greenbelt development

and dust suppression.

2. Strom drain network and guard ponds have been

developed for all storage yards. Strom water is being

collected and reused for dust suppression.

3. Used water from Garage truck wash plant is reused for

sprinkler operation and road wetting.

GREEN ACT (Harvest water)

1. KPCL has developed 13 rainwater harvesting ponds having

a total catchment area of 5.3 Lakh m2 with 1.54 Lakh m3

water harvesting capacity.

2. Developed 350 water harvesting ponds in green belt area

along port boundary to collect runoff water. Each pit has an

average catchment area of 400 m2.


32 KRISHNAPATNAM PORT COMPANY LIMITED G4-EN23; G4-EN24; G4-EN25

Waste and Effluents

At KPCL we ensure legal compliance

for managing the waste generated at

the port. Waste management is carried

out by segregation and managing the

waste from waste generation to its final

disposal.

We capture the data and maintain records

for the disposal of hazardous waste. This

includes collection, transport, treatment

and disposal of waste together with

monitoring and regulation. In order to

ensure legal and regulatory framework that

relates to waste management, we submit

form 4 to state pollution control board.

In the process of disposal we give

information of disposing material such

as date of authorisation, physical form of

During FY ’16, KPCL generated 232.47

KL of waste oil and it was disposed off at

state pollution control board authorised

site with all emergency adequate facilities.

Waste oil is disposed off to authorised

recycler. E-waste is sold to authorised

dealers. Around 5 Metric Tonnes of

e-waste was generated and disposed off

during the reporting period.

the waste, chemical form of waste, mode

of transportation of the waste, site of

disposal and disposal method.

Three major types of wastes are

accounted for: waste oil, used batteries

and e-waste. All the mentioned wastes

are disposed off as per legal regulations.

Electrical and electronic equipment

contain different hazardous materials

which are harmful to human health and

the environment if not disposed off

carefully. While some naturally occurring

substances are harmless in nature, their

use in the manufacture of electronic

equipment often results in compounds

which are hazardous (e.g. chromium

becomes chromium VI). Another

hazardous waste which is majorly

generated at KPCL is used batteries.

18.7 Metric tonnes of used batteries

were carefully disposed off during FY ’16

through authorized dealers or recycler or

on buy back basis.

As far as effluents are concerned there is

no discharge of effluents from the Port.



Expenditure on environmental protection

Environmental costs were approximately INR 13.30 Crores in FY ’16 and the expenses of INR 14.15 Crores in the previous

year. Expenses and investments have primarily been in areas such as solid waste & waste water management, air pollution

management, environmental monitoring, mangrove protection and green belt development. There have been no significant fines

for non-compliance with environmental laws and regulations.

Expenditure on environmental protection (in Rs Crore)

FY 2015-16

Statutory payments

Repairs & maintenance Vehicles

KP Horticulture Nurseries

Green belt development

Mangrove protection and development

PPE's

EHS promotional activities

Environmental Monitoring

Waste Water Management

Air pollution management

Road sweeping & drains Expenses

Solid waste management

0.25

0.28

3.43

0.05

0.02

0.16

0.50

1.02

2.33

4.30

4.19

4.71

0.00

0.32

0.74

0.85

0.01

0.13

0.01

0.06

0.33

1.60

1.76

0.37

FY 2014-15



Our People – Our Pride

KPCL offers conducive environment for individual potential

resulting in productive employment and conducive work place.

We provide our employees a career with a winning edge in

terms of experience and success.

We value our human resources and our organizational

systems are therefore structured towards their well¬being.

Our work culture promotes high productivity, which in turn

is well rewarded and equally well appreciated. We believe

in developing leaders who strive for performance, self-

improvement and have a healthy competitive spirit. Our values

and principles are based upon simple fundamentals – Pride

& Satisfaction; and to achieve that we encourage our staff to

constantly improvise, be creative, generate new ideas, take

self-initiatives and achieve fulfillment in ones work. We create

foundation for growth to our talent by encouraging them to

innovate through collaboration.


G4-10d ; G4-11; G4-EC6; G4-LA1; G4-LA3; G4-LA12 Sustainability Report 2016 35

Employee breakdown and turnover

Our employees fall into four bands -

1.

2.

3.

4.

Below Jr. Officer (Operators, Technicians, Office Assistants, Supervisors etc.)

Junior Officer to Senior Officer

Assistant Manager to Senior Manager

Assistant General Manager (AGM) and above

These categories are defined depending on their function, experience and skills.

The total employees of our port are 778 with 18.35 % of new hires in the FY ’16.

Our organisation is run by fairly younger generation, with major chunk (64%) of our

employees falling between the age of 30 and 50. Though 81% of our employees

belong to Telugu speaking states (Andhra Pradesh & Telangana), our approach to

find suitable talent did not stop us from hiring our employees from over 20 states

throughout the country.

Diversity of

employees from 20

states across the

country

Employee breakdown and turnover in FY ’16

Total Workforce of Organization Number of Employees leaving Organizaiton 778

668 778

247 110

11

Number of Employees in KPCT

Number of Employees in KPCL

258 158

Total employees including internally transferred employees

Total employees excluding internally transferred employees

Of 668 employees, 247 left the organisation (including 100 employees that got internally

transferred from KPCL to KPCT) The total employee turnover of KPCL for the FY ’16

was 20.31%. Total number of employees that were entitled to parental leave were 668

out of which 51 took parental leave and all of them returned to work after parental leave.

In order to ensure economic benefit to the local community more than 30% of

senior management is drawn from the local community. In KPCL, of the 36 Senior

Management personnel, 13 belong to Andhra Pradesh and in case of KPCT out 10

Senior Management personnel 2 belong to local community. Inclusion of members

from the local community helps bring economic benefits to the local community, and

the organization’s ability to understand local needs.

Proportion of Senior Management from local community in FY ’16

32.6% (15 of 46 employees) of senior management personnel from local community


36 KRISHNAPATNAM PORT COMPANY LIMITED G4-10b; G4-EC5; G4-LA2

There is a dedicated Public relations officer to address and resolve the needs and

grievances of the local community.

KPCL being a cargo handling service industry involving major operations of inter-

carting and work involving heavy infrastructure at berths, yards and warehouses,

employability of women is comparatively low with total 50 female employees amongst

778 permanent employees. KPCL is trying to maintain gender equality in appropriate

and relevant jobs and activities. 28% female employees were hired in FY ’16.

In case of minimum wages provided to the workforce, KPCL is known for giving better

monetary compensation to their contractual workers and also better wages for entry

level employees in comparison to statutory requirement.

28% female

employees were

hired in FY ’16

Ratio of Standard Entry-Level Wage to Local Minimum Wage in FY ’16

Skilled Semi-Skilled

1.17

1.14

1.17

1.14

1 1

1

1

Half 2 Contractual

Half 1 Permanent

Half 2 Half 1

Ratio of Standard Entry-Level Wage to Local Minimum Wage

Employee benefits & welfare

In order to cater to the needs of the workforce and to create a strong bond, we

provide them benefits not just financially, but by creating a culture where welfare of

the workforce is our prime responsibility. Our regard and appreciation for our high

potential human capital is reflected in the facilities and benefits provided. Some of the

major benefits include

•

•

•

•

•

•

•

Free transportation for all the employees

Free food is provided for all our employees

Interest Free Loan for Employees

Group Personal Accident Policy Coverage

Maternity/Paternity Leave

Free accommodation to the employees as per job requirement and availability

Mobile connection free of charge is provided to the employees as per the job

requirement

• Free medical and dental checkup once in every quarter is carried out of all the

employees to keep check on occupational diseases and also in general to

monitor employee’s well-being.



CVR Residential Complex

The foundation plays an important role within the Port’s

premises. We are managing 3 massive residential blocks, which

provide residential accommodation to over 3400 workers. As

part of this facility food and water are taken care of.

hospitals and Apollo hospital in and around Nellore throughout

the year. In FY ’16 about 1007 employees attended these

camps for medical checkup.

Provision of Healthy Food

Hampi Kitchen and Dining Halls provides safe and healthy food

for all including customers, workers, and visitors. The central

kitchen has many outlets and food is distributed to various units

ensuring that clean and nutritious food is distributed – each day

about 17000 meals are cooked for 8,000 persons a day. The

food is then sent to 35 dining halls and tens of corners where

staff are stationed on their duty. About 10 of these 25 dining

halls house 500 people.

CVR Medical Centre

The CVR Medical Centre was set up to function as the

Occupational Health Centre to take care of the workers

and employees of KPCL. Since 2011, the centre has been

functioning as a nodal centre for all emergency, casual cases

requiring medical support. Two more medical outposts have

been created within the Port’s premises.

For cases that require higher level medical and surgical care, the

centre through the CVR Foundation has partnered with Narayana

Medical College Hospital / Simhapuri super specialty hospital.

Hampi Snack Bars ‘Feel Good Food’

Hampi also runs a retail chain within the port premises, with

focus on both food and non-food segment. Started in 2013, the

venture is promoted under the brand line ‘FEEL GOOD FOOD’,

Hampi has six outlets inside the Port; out of these 4 support the

other 3 retail units.

It has a Dry Canteen (HAMPI Store at CVR), which sells FMCG

company products supplied by ITC, HLL, Godrej, WIPRO, &

many more local suppliers. Hampi Central stores also sells day

to day toiletries and eateries. Meals are also served and mostly

used by the port employees who live at the port.

Outdoor catering services include providing food and snacks

delivery services to Port departments. These outlets prepare

and serve North Indian, South-Indian & Chinese fresh food.

In FY ’16, the medical centre

reached out to 31,373 patients

In collaboration with Dr. Phadke Diagnostics and Lab a blood

camp was conducted in March for over 500 workers at the

port. Various blood checks were conducted and donors were

given counseling on preventive measures for diabetic and other

heart conditions.

In order to monitor the well-being of employees free medical

camps are organized at Simhapuri Hospitals, Narayana


38 KRISHNAPATNAM PORT COMPANY LIMITED G4-HR1; G4-HR2 (Partial data available); G4-HR3; G4-HR5 (Work order clauses); G4-HR6; G4-HR9; G4-EN34; G4-LA16; G4-SO11

Protection of Human Rights

At KPCL we ensure human rights protection within our jurisdiction, play a vital role

in case of any issue, and help provide leadership on bigger issues affecting local

communities. In addition to complying with various legislations, we have taken various

initiatives on Human Rights protection.

Our HR related training programmes have clubbed in sessions on human rights. New

employees right from trainees to senior management, are made aware of aspects of

human rights during the induction programmes. Trainings are given through regular

awareness sessions and other formal training.

Grievances

KPCL records grievances from employees, contractors and local communities

through suggestion boxes. A Public Relations Officer addresses and resolves

grievances of local communities. Employee grievances are brought to the supervisors

and unit heads. Below are the grievances related to human rights, labour practices

and environment filed during the reporting period by major stakeholders.

Category

Employees

EHS Department

Local communities

Total Grievances Received

88

28

294

Grievances Resolved

73

25

238

Grievances Addressed

15

3

56

Our work environment is free from all

harassment including sexual harassment,

pestering or bullying, and any kind

of discrimination based on individual

differences or prejudices like sex, race,

gender, sexual orientation, disability,

age, ethnic origin or other personal

characteristics.

During the reporting year, the

organisation has not faced any

incidents of discrimination at any of

its operating units. There have been

no reported incidents of child labour,

forced or compulsory labour at any of its

operations or with any of the suppliers.

There has been no incident of

discrimination within the organisation

nor have incidents involving violation of

rights of indigenous people been noticed

at KPCL.

KPCL commits to achieving best human

rights practices by improving its reach

through its entire supply chain by creating

grievance mechanisms to address human

rights and labour related issues. KPCL

looks forward to working beyond the

clauses in their agreements by creating

awareness among the contractors /

labour force and influence them with the

best practices.

KPCL is able to address grievances from major stakeholders like employees and local

communities. Environmental grievances are handled by the EHS Department.

In order to ensure Human Rights beyond our organisation we have created

human rights clauses in agreements with our external stakeholders. Contractors

with KPCL have to address human rights related issues with their workforce as

part of the agreement, violations of which incur penalties. We have incorporated

issues such as Child Labour, Force/Compulsory Labour, Sexual Harassment,

Discrimination, etc., under related policies and practices which extend to all the

employees, contractual employees and others. Systems and processes have been

included in human right clauses in work orders, purchase orders and agreements,

there have been appropriate measures for abolition and elimination of any such

unethical work practices.

During the reporting period, approximately

215 agreements were made using human

rights clauses


G4-HR7; G4-LA5; G4-LA6 Sustainability Report 2016 39

Occupational Health & Safety

KPCL’s collaborative efforts of management, employees,

and port users aims at maintaining a safe and secure

environment that protects its people, operations and assets

from risk of injury, loss of life or damage from criminal, hostile

or malicious acts.

We consider safety of our workforce as a prime responsibility

and working beyond compliance by maintaining accident

records even though it is not mandatory and port sector

doesn’t come under the Factories Act.

Accident Statistics

Injury Rate

Occupational Diseases Rate

Lost Day Rate

Absentee Rate

Fatality

FY ’16

Nil

Nil

273.54

1429.42

Nil

Port Safety and Security

KPCL complies with all regulatory requirements of the

International Ship and Port Security Code (ISPSC) that relate to

security of the port facility and assets.

The International Ship and Port Security Code (ISPS Code) and

the Indian Maritime Safety Laws require that all ports that receive

international ships are ‘Security Regulated’ ports. Therefore

access to and from the KPCL is restricted to authorized Port

Users and Visitors and controlled by security.

Following are the Access Control Procedures that KPCL has

implemented to minimise security and safety risks to its port

users, visitors and all cargo at KPCL:

• KPCL Security Department ensures delivery of security

functions as per ISPS norms.

• IMO ISPS Code ensures implementation of Port Security

Plans by respective security officers.

• Internal security service providers, in coordination with

relevant statutory authorities, provide access controls and

security patrols at the Port.

• Relevant signage indicates access restrictions to port

facilities and other maritime security zones within the Port.

Krishnapatnam Security Services Private Limited provides

security services to the port through their extensively trained

security guards who go through 12 weeks of outdoor and indoor

classroom training. The course covers port operations, terrorism,

Human Rights, gender sensitisation, criminology, RFID, basic fire

fighting activities, communication skills, courteous behaviour, etc.

349 people attended the course during the reporting period and

280 successfully passed out of KSSPL as Security personnel.

In order to gauge the risk to workforce due to port operations,

Hazard identification and risk assessment is carried out in areas

like ware houses, coal yards and marine operations.

Our 30-member Safety Committee has representation from all

levels of KPCL. Our objective of ensuring safe & secure seaport

through best practices in safety and highest standards of

security and vigilance is achieved through:

• Engaging employees in various activities for acceptance of

safety as an integral part of their job.

• Focusing on avoiding accidents to personnel, equipment

and property at the port.

• Creating awareness, training and motivating stakeholders

about safe work practices.

• Maintaining neat, clean, safe, healthy and attractive

working conditions. Dry road sweepers, atomisers and

sprinkler are used to maintain KPCL as a dust free port.

• Avoiding misuse of equipment and ensuring strict

compliance with safety rules and norms.

• Carrying out hazard identification and risk assessment of

various activities and location at the port and depending on

the rating, making mandatory use of Personal Protective

Equipment (PPEs) in critical areas like cargo handling

• Helping the port management in maintaining safe and

secure working environment


40 KRISHNAPATNAM PORT COMPANY LIMITED G4-LA9; G4-LA10; G4-LA11; G4-LA13

Career development and growth

At KPCL growth and career development of our employees

is mainly aimed towards personally determined and evolving

preferred future of the employee. This is achieved through

life-long process of managing learning, work, leisure, and

transitions in order to move toward desired position. Career

development and growth is monitored through regular

appraisals. These are conducted for:

• Trainees: For trainees performance is reviewed periodically

based on the training period (6 Months / 1 Year / 3 Years)

• Probationers: Performance of probationers is reviewed only

after completion of probation period which is generally 6

months.

• Confirmed Employees: The performance of all confirmed

employees is reviewed annually after completion of the

Financial Year.

The appraisal of Trainees & Probationers is carried out by head

of the department and Annual Review through Self-Appraisal

and by HOD.

Percentage of employees (KPCL and KPCT) who received regular performance and career development review (Employee Category)

Best management award for employee welfare

KPCL has achieved another milestone. It has bagged the

‘Best Management Award for Employee Welfare for the

year 2014’ for carrying out exemplary employee welfare

activities at the port. Honorable Chief Minister of Andhra

Pradesh Shri N Chandrababu Naidu presented the

award to KPCL on May 1, during the May Day celebration

held at Rajamundry. S Subba Rao, Chief Operating Officer

(Bulk Operations) of the port, accepted the award.

(483 of 690 management employees) 70%

89.77% (79 of 88 operators)

Percentage of employees (KPCL) who received regular performance and career development review (Gender)

74.72%

60.47%

Training: Training was provided in areas of Personality Development, Time & Stress

Management, Leadership Qualities, Safety & PPE training and Softskills Training.

This training is conducted across employee category – from junior officers to senior

managers and all levels of women employees.

(467 of 625 male employees)

(26 of 43 female employees)

Remuneration: KPCL is an equal

opportunity and a fair employer. There is no

discrimination in employee remuneration

based on caste, gender or religion.



Employee engagement

“Our Employee engagement is the emotional commitment the

employee has to the organization and its goals,” said Kevin

Kruse. At KPCL, we find opportunities to engage with and

foster an environment of camaraderie through the events and

celebrations organised round-the-year.

Rangoli Competition

On the occasion of Ugadi festival, rangoli competition was

organised in KPCL Port Admin building. Employees made rangoli

designs in teams of 4-6 members. There was greater participation

from the women employees. The teams put their best efforts

towards making rangoli and brought their creative side out. The

rangolis were judged on the basis of theme, design and clarity by a

panel of judges.

MAA KPCL Programmes

MAA KPCL events are regularly organized for the employees of

KPCL. The main objective of conducting events is to encourage

friendship between all levels of employees, to reduce stress

at workplace, to boost morale & motivation, also provide

opportunity for interaction & team building and stimulate ideas

for their personal & professional growth.

This idea was initiated by top management and brought by HR

department. Every week one department is chosen and that

department participates in the event. Employees from various

departments such as Water services, EHS, Electrical, MMD, Fire

& Safety, Oil Pipeline and Weigh Bridges, CVR Foundation etc.

take part in the event.

5K RUN

The Nellore “5K Run” made its debut with a stunning 5k run

International Women’s Day Celebrations-2016

To celebrate the courage and determination of ordinary women

who have played an extraordinary role in the history and

communities, each year KPCL celebrates Women’s Day on

March 8th.

The 2016 theme of International women’s day was pledged for

parity. All women in CVR group were invited and more than 130

women from various departments participated in the event. All

the female workers who participated were honored with a gift.

successfully concluding at A. C. Subba Reddy Stadium. The

event was designed and developed to promote running as the

primary form of fitness along with the objective of celebrating

the spirit of Nellore. The race was aimed at spreading the

message “Go Green Nellore”. This Nellore 5 K run is a part of

“Nellore Next Programme”, an initiative of CVR Foundation and

KPCL to promote sports and fitness in Nellore.

The event saw participation from celebrities and people from

all walks of life who actively came forward to support the

cause of fitness and healthy lifestyle. The event witnessed an

overwhelming participation with more than 5000 runners taking



part in the 5K race. The Nellore 5K Run is only the second of

its kind timed-5K run with participants receiving an RFID chip

to measure their individual time. Top three finishers in different

categories were awarded cash prizes. All finishers received

Finisher Medals and Certificates of Participation.

The MAX Participation Trophy was awarded to Adi Sankara

College, Nellore for registering the largest number of

participants. Additionally, mementos were awarded to Akshara

School, Nellore, and AC Subba Reddy Stadium Walkers’

Association for their enthusiastic participation.

economic development while attempting to stabilize the rate of

resource use and reduce environmental impacts.

A rally was conducted by KPCL- EHS Department on the occasion

of WED 2015 from VRC ground to AP tourism office which is

about 5 Km to give awareness to the Nellore city community on

environmental aspects which are vital for coming generations to

lead a healthy life. At end of the rally a seminar was conducted to

discuss the present day scenario of the environmental issues and

briefed them to deal the issues on day to day basis. And to be

conscious about the facts learned on WED the employees took a

pledge towards protection of the environment

A mass plantation programme was inaugurated by chief guest

followed by other officials & all KPCL employees. It resulted

in planting of more than two thousand plants in a single day

at KPSSL venue which is located in Krishnapatnam Port

Company Limited.

World Environment Day

Celebration of World Environment Day (WED) is to create

awareness about the environmental problems of our planet earth.

It is a positive environmental action to protect nature and planet

earth. This initiative was taken by the United Nations General

Assembly in 1972. It is also celebrated as Eco day, Environment

day or simply WED in various parts of the earth. Through WED,

United Nations Environment Program (UNEP) enables everyone

to realize not only the responsibility to care for Earth, but also

reminds everyone for their individual power to become agents of

change, because every action counts, and when multiplied by a

global chorus, it becomes exponential in its impact.

This year’s theme for World Environment Day ‘Seven Billion

Dreams, One Planet, Consume with Care’ expresses the

challenge of creating opportunities for inclusive and sustainable



tournaments were awarded with trophies on occasion of

Republic Day. The sports tournament was a great chance for

the employees to interact and come together in a way which

isn’t possible during the normal workday. Here, “junior” and

“senior” employees became equal teammates, and the border

between management and staff disappeared.

The sports meet comprised of 7 sports as mentioned below:

1. Chess - Men/Women

2. Carrom - Singles /Doubles/Mixed Doubles - Men/Women

3. Badminton - Singles /Doubles/Mixed Doubles –Men/Women

4. Cricket - Men

National Safety week

National Safety Week celebrations were conducted at KPCL

in March, 2016. The celebrations started on 4th March

with flag hoisting ceremony, followed by safety pledge by

Employees/Workmen. Theme of National Safety Day 2016

was “Strengthening safety movement to achieve zero harm”,

the theme was spread through safety sign boards, badges,

awareness trainings and conducting various extracurricular

activities for all workmen for entire week.

March past was done passing through coal yards and

warehouses with safety play cards and slogans. Awareness

trainings were conducted on safety.Blood donation camp was

organized in collaboration with Narayana hospital & Medical

College-Nellore Dist. 208 employees/workmen of Port donated

blood with a slogan “Donate blood-Save life”.

Best safety performance rolling shield was awarded to ETS

- MHC department for 2015-2016. Various other prizes were

distributed by chief guest and other dignitaries to employees

and workmen in the closing ceremony on 14th march 2016.

5. Volleyball - Men/Women

6. Tennikoit - Women

7. Athletics -100m /200m/400m/800m - Men/Women

Annual Sports Meet

To build inter-personal relationship among employees, we

organised 8th Inter Department Annual Sports at our premises

from Dec 30th 2015 – Jan 25th 2016. A total of approximately

1000 employees from KPCL and its group company actively

participated in the event. The event was conducted to

encourage the employees to interact and develop as a team

on the work front. The Winners & Runner-ups of different


44 KRISHNAPATNAM PORT COMPANY LIMITED G4-SO1; G4-SO2

Inclusive Growth

At KPCL we believe in harmony with our surrounding

environment and engage with local communities for our

mutual well-being, which is helping us in achieving stable

and sustainable development. Our CSR policy encompasses

our philosophy and guides us to understand the local

communities and carryout programs for the welfare and

sustainable development of society. There have been no

significant negative impact on the local communities due to

our operations.

We carry out our CSR operations through CVR Foundation,

NGOs and direct implementation through our CSR team. CVR

Foundation is part of KPCL’s commitment to local communities.

The foundation has taken up several socioeconomic growth

initiatives besides other clean and green measures. . The CVR

foundation is funded by both Navayuga Engineering Company

Ltd. and KPCL. The CSR work mentioned in the report is carried

out by the foundation on behalf of both the companies however

the financials mentioned in the report are only for KPCL.



Consistency

with sustainable

development and

welfare of society

Considerate

towards

expectations of the

stakeholders

Thrust Areas

KPCL’s CSR activities are focused

on five broad themes with the goal of

improving overall socio-economic status

of the communities around

Our CSR

Objectives 1.

2.

3.

4.

Education

Skill Promotion & Job Development

Health, Safety & Environment

Community & Local Economy

Development

Compliant with

applicable law

Uniform integration

and practice of

CSR throughout

KPCL

5. Women Empowerment

Rs. 1387.93 Lakhs spent on CSR activities –

182% more than the mandate

KPCL spent Rs. 1387.93 Lakhs on CSR activities during the reporting year although it

had a mandate to spend only Rs. 474.24 Lakhs as per Section 135 of the Companies

Act, 2013. The breakup of the CSR spend is as below:

•

•

•

•

•

•

Rural Development: 459.07 Lakhs

Environmental Sustainability: 42.77 Lakhs

Education: 3.77 Lakhs

Health: 1.21 Lakhs

Donations to Charitable Institutions covered u/s 80 G: 814.82 Lakhs

Others: 66.29 Lakhs



Education

Supporting over 4000 students with over half of them being girls

A vision that began as an educational intervention to the

rehabilitation and resettlement colony children of fishermen and

other communities around the port, has now expanded to a major

educational life cycle intervention amongst the beneficiaries.

The CVR Vidyaratna Scholarship programme and the ASRA

(After School Remedial Assistance) after school intervention

reaches out to students across 4 mandals – Muthukuru, TP

Guduru, Chillakuru, Indukurupet. The CVR English Medium

School attempts to empower the youngsters of the RR Colony

and of KPCL’s employees, whereas the Navaneeta Public

School tries to impart world class, free, residential education to

the brightest students of wider geographical regions.

Through these projects, the CVR Foundation endeavours

to provide best and free educational facilities, to enable

students to achieve the best. Today, as part of the educational

intervention we are supporting over 4000 students with over

half of them being girls. These children are from the 100 villages

across four Mandals of Nellore district.

Navaneeta Public School (NPS)

NPS is the flagship programme of CVR Foundation, started

with an aim to provide world class education system to

bright children from very poor communities. This is a

dream project of the Managing Director of KPCL, Shri. C.

Sasidhar. This school is located in the temple village of East

Kanupuru, Chilakuru mandal, 50 kms from Nellore town,

Andhra Pradesh. The school is named in the honor of the

group Chairman’s wife late Smt. Navaneeta. The school has

partnered with St. Mary’s Educational Society to ensure all

round effectiveness and excellence.



Vision of NPS

Like an oyster that provides the perfect environment

to nurture a pearl, NPS dreams of creating an environment

which will foster learning, creativity and instill independent

thought and freewill amongst the students who will

in years to come have the ability to influence scores of

people and create a positive impact in the community.

with 42 teachers have been operational during the year 2014- 15. The ASRA volunteer identifies the children studying between classes 1 and 5 for tuition classes. The quality of volunteer is being strengthened by giving them training on a regular basis.

During the year several programmes were conducted both for children as well as for ASRA volunteers. Navaneeta Talent Test was organized across all the 33 villages where ASRA

centres are located. The tests included elocution, essay writing and painting. The ASRA team also visited all the southern pilgrimages centres and also visited good educational projects.

NPS is a residential school spread over a four-acre campus with ambient surroundings. The school has two magnificent buildings with all the necessary infrastructure. Currently, from grade 4th to 7th, with a grade being added every year, NPS will be affiliated to the CBSE, which is the largest centrally regulated educational board in the country.

172 children who come from 41 fishing hamlets and coastal villagers have joined NPS. The children are acclimatised to the residential facility and many of them are already imbibing skills like dining etiquette, hygiene and spoken English. Theatre and music are an integral part of learning, with both students and teachers using the medium to communicate, learn and express. Early morning sports and physical training prepares the children for an exciting day where classroom learning is full of activities.

CVR Vidyaratna Scholarship

CVR Vidyaratna Scholarship commenced in FY ’08, with a modest number of 53 students and has now reached 7090 students in FY ’16. The primary goal of CVR Vidyaratna is to help and support the underprivileged young minds around the port to realize their dreams through higher education and pursue career goals.

The Scholarship includes:

•

•

•

A fixed Cash Award of Rs.6000 and Rs.12000 in addition to hostel and tuition fees

Provision of study material

Support for spoken English and computer skills

CVR English Medium School

The CVR English Medium School had a single and limited mandate of serving the children of the four villages of R&R Colony (Aadala Nagar, Mathura Nagar, Ramalingapuram and R & R Colony). Today the school has become a symbol of aspiration for hundreds of workers and their families of KPCL as well as a few villages around the port. The school was established in the academic year 2011-12 with 213 students and now caters to over 700 students. The staff includes 27 teachers, 11 non- teaching staff and classes run from play class to 8th grade. An independent Academic Assessment conducted in January, 2015 showed 62% of our children getting ‘A+’ and ‘A’ grades.

During a comprehensive medical camp conducted for the children it was reported that many children had iron deficiency. The lunch menu was changed in the school to more iron-rich food for improving the children’s health.

During the reporting year the profile of students shows that there were more female students – 374 female students to 303 male students.

ASRA - After School Remedial Assistance

Children of Fisherman community villages surrounding the port deprived of a good education system are now supported with 2-3 hours of tuition on a daily basis. About 33 centers in villages

For improving children’s health,

lunch menu changed to more

iron-rich food



Skill Promotion & Job Development

Through its Skills

Development

framework, the CVR

foudation has trained

over 500 young men

and women over the

past year

As per the latest studies, India will have a surplus of 56 million working people while

the global shortage of skilled working people will be 47 million by 2020. With a

‘demographic dividend’ of more than 50% of the population within the age bracket of

25, the 11th Five Year Plan identified the potential of India emerging as an important

global entity in skill development.

As of the reporting period, 10% of the youth have proper vocational training. Realising

the importance of proper vocational training and skill development programmes, the

CVR Foundation has made long-term plans to enhance the in house capacity as well

as to leverage from the existing institutions involved in skills promotion. Through the

ongoing skills framework, the foundation has taken up various interventions that have

touched over 500 young men and women over the last reporting year.

KSSPL Training Academy

The main objective of the KSSPL Training Academy is to train professional security

men and women for corporate, government, industrial and regulatory bodies. The

key context being industrial security, the training extensively focuses upon relevant

modules. KSSPL has affiliated with Security Sector Skill Development Council (SSSDC)

& Automotive Skill Development Council (ASDC) for conducting Security, Driving (LMV &

HMV) and Welding trainings under National Skill Development Corporation (NSDC).

All employees of KPCL/KSSPL/ ECL and other group of companies at KSSPL are given

training on various subjects for improving their skills, proficiency, efficiency and morale.

KSSPL is extending Train the Trainer (TTT) programmes for CVR Group of Companies.

The Academy has trained 2953 Security Staff, 353 TTD Guards and 150 Marine Home

Guards till date. The academy is extending Security Services in Private Industries and

adding more facilities like Officers Hostel and Trainee Barracks. KSSPL is engaging with

Infrastructure Leasing Financial Services (ILFS) to improve the standards of training and

providing world class modules, study materials and skill development. Efforts are being

made to deploy Security Guards overseas.

Krishnapatnam Driver Training Academy (KDTA)

The Krishnapatnam Driver Training Academy was established in 2011 for

imparting training in Light Motor Vehicle (LMV) and Heavy Motor Vehicle (HMV).

During the reporting period, the Academy trained and placed 53 youth in LMV and 9

youth in HMV.

Krishnapatnam Academy of Professional Studies (KAPS)

The key objective for the KAPS is to professionalize the various programmes that are

piloted at the Port’s dynamic learning environment. To establish systematic training



processes, KAPS has partnered with the Vikrama Simhapuri Univeristy, Nellore since

2012, and is offering PG Diploma programmes in Fire & Safety; Environment Health &

Safety, and; Port Operations & Terminal Management

During training, students are involved in enriching activities such as fire safety week

celebration, fire safety awareness & rallies and tree plantation. As part of field work,

students also have done a month long project study at various companies such as

KPCL, Green Asia Logistics, L W Constructions, Apache Foot Wear, Gayathri Power

and South India Krishna Oils & Fats.

Krishnapatnam Welding School (KWS)

Krishnapatnam School of Welding was started in response to the technical requirements

of various departments like logistics, ETS, marine and other units to support the port’s

operations. The school began in 2012 in partnership with the Tata Institute of Social

Sciences. The School of Welding meets the quality and process standards of industry

and fills the huge gap between the demand and supply of skilled labour. The unit is

getting a make over with new training material and faculty since 2014.

Krishnapatnam Dog Training Centre (KDTC)

Dogs are trained and used for security purposes at the port, especially in sniffing and

tracking. This dog squad effectively carries out anti-smuggling and anti-sabotage

check activities and has won many accolades. There are 19 dogs under security

training and 17 of them are also trained for obedience and house manners. The

academy is approached by many individuals for dog training in obedience and house

manners. Interestingly in all the major programmes of the port the Dog Show attracts

the biggest attention and appreciation.

Navyatha Training cum Production Centre (NTPC)

Navyatha was set in 2011 to respond to the livelihood needs of poor women. The

activities include specialized training for security, tailoring, and basic and advanced

courses in fashion design.

Navyatha has an ongoing production unit to cater to the clothing requirement of

workmen and the staff of KPCL. To fulfil the demand for skilled tailors, Navyatha

regularly runs courses for local women interested in pursuing tailoring and fashion

designing as a means of livelihood. NTPC has also initiated a basic fashion design

course for college going young women.

The unit has 60 women working regularly on 42 machines. Women are trained in

batches of 25 every two months and are given certificates. While some work at the

unit, others earn working from home. The centre had produced 11,000 units in the

year 2014-15. The women were able to earn over Rs. 3000 per month. Last year, the

women were also introduced to the system of assembly line stitching to increase the

numbers produced by an individual.

Kreeda Ratna

CVR foundation is supporting talented

students in various sports activities. It

encouraged Master Maruthi native of

Muthukur in chess, this year he is ranked

1400 in FEDA under 15 Category.

We also encouraged Ms. Gattamaneni

Sai Revathi, a weight lifter who won a gold

medal in the Senior National Weightlifting

Championship, 2015. She is getting ready

for the Common Wealth Games. She is also

pursuing masters in Physical Education.



Health

Health related services and infrastructure always plays a key

role in contributing to economic progress, as access to better

health and treatment services leads to people becoming more

productive and help in savings.

We at CVR Foundation look at health in a very holistic way and

take initiatives such as

• Investing in clean water supply mechanisms leads to

reduced illnesses.

• Investing in better roads will directly improve access to

health services.

• Investing in mobile health care facilities and teams directly

and in the up-liftment of the poor.

Over the reporting period, 7000

people were covered through the

Navaneetha Grama Sanjeevani

Navaneetha Grama Sanjeevani –

Community Outreach Clinics

The aim of Navaneetha Grama Sanjeevani - Community

reach-out clinics is to respond to the primary health needs of

the eight targeted villages, which are located around KPCL,

each of which is covered twice a month through the outreach

clinics. The patients are also provided with free medicines and

whenever necessary, are referred to Narayana Medical College

Hospital, Simhapuri Hospital and Apollo Hospital.

KP Dental Care

The full-fledged ultra modern Dental hospital was inaugurated in

2013 and has been busy with checkups, treatment and camps.

Over the reporting period KP Dental Care had 1279 walk-in

patients and total treatments giver were 4362.

Caries Free – School Programme ‘Healthy Teeth Happy Smiles’

that started in February 2015 screened all the CVREM school

children for dental health. It was found that over 75% of the

children had dental problems due to lack of knowledge on oral

hygiene, low socio-economic status, use of carcinogenic food,

sticky foods, lack of gargling and other genetic factors.

The programme educates on preventive methods of teeth

Madhava Medical Centre

CVR Madhava Medical Centre is located within the R & R

colony in the Muthukur town. The Center provides all primary

health care services. The Centre provides medicines every

month to patients with chronic diseases like diabetes mellitus,

hypertension, neurological problems, respiratory infections,

allergies, dermatological and orthopedic problems.

The centre has tied up with corporate medical hospitals in Nellore

such as the Narayana Medical College Hospital, Simhapuri

Hospital and Apollo Hospital where patients are referred for more

specialized care and treatment. The centre also conducts special

camps in collaboration with various other corporate hospitals.

cleaning and hygiene. There is also a secondary treatment of

pulpal therapy followed by restoration and in some cases crown

& face maintenance and tertiary tooth extraction.



Navaneetha Homeopathy Clinic

Near Visakhapatnam, the Navaneetha Homeopathy Clinic treats

people, animals and plants with chronic illnesses particularly

those that cannot be treated by any other form of medicines.

The programme began by Dr. Ramesh a deeply passionate

person who provides homeopathic treatment to people coming

from all over the state of Andhra Pradesh and Odisha. He

functions with a team of well-trained assistants and treats

thousands of chronic patients. The hospital treats people, and

their livestock with homeopathic medicines. This year support

from CVR Foundation went towards construction of basic

facilities of the clinic like toilets, bathrooms, etc.

Exclusive School Health Record for CVR

English Medium School

KPCL started an initiative to capture the current health status

as well as to regularly track the illnesses and development of all

the 700 students of the CVR English Medium School. A week-

long camp was conducted by a team of pediatricians from

Narayana Medical College.

One important outcome of the camp was that a large

percentage of children were detected moderately anaemic.

Major skin infections including boils, eczemas were also

detected and treated. Classes were conducted for parents and

teachers regarding skin health.

The school has medical records

of all the children in the school Awareness Programme on Health and

Hygiene

Our nurses and staff conducted door to door awareness

programmes to educate people of R&R Colony regarding

hygiene and cleanliness. The medical team focused on

prevention measures. Women and children were made aware

on water and food borne diseases and skin infections. People

were also educated on avoiding stress and unnecessary

medication like pain killers, antacids, antibiotics and the need to

maintain a healthy hygienic diet and exercise regularly.



Community and Local Economic Development

The port has successfully set up three nurseries

with a total of 20 lakh saplings propagation per year

The Foundation has extensively invested in communities around KPCL. As part of this commitment,

services like provision of drinking water through setting up RO Plants as well as building village level

infrastructure like roads, digging bore wells, street lights, drainage renovation of schools, temples and

govt. office buildings have been undertaken. Most of these activities are implemented in the selected

villages in Venkatachalam, Kota, Muthukuru, Indukurupet, T. P. Gudur, Chillakuru Mandals of Nellore

District, Andhra Pradesh.

The foundation has also extended financial help to individuals to help them deal with personal

calamities such as death and accidents, extended education loans, provided livelihood assistance for

purchase of fishing nets and cattle, and provided assistance to specially-abled persons.

Re-constructing Places of Worship

There were many temples in the villages, which were in dilapidated condition which

required repairs. The foundation has extended substantial support to most of these

temples. Some of these temples have heritage and natural importance. During

the reporting year, as many as 21 temples were constructed or renovated with the

support of the CVR Foundation.

The 500 year old Rajagopuram of temple Srikalahasthi, collapsed due to constant rains

and rampant borewell digging. CVR group Chairman offered to rebuild the temple and

the construction work is ongoing.

Providing Clean Drinking Water

As part of building and bettering public infrastructure, CVR Foundation has extended

following support to fulfill the water needs of the local residents. Considering the

critical need of fresh drinking water facilities in the villages, this reporting year

the foundation has built RO facility in these following villages with the capacities

mentioned below:

Name of the Plant

RO Plant - CVR Foundation

RO PLANT - Krishnapatnam Village

RO Plant - R&R Colony

No of Water Bottles (20 Ltrs) per day

1600

600

700

Distribution Areas

CVR Foundation, Central Kitchen, KPCL and all departments

krishnapatnam Village

R & R Colony, Muthukuru, etc

Besides these facilities, the Foundation also reached out to the remotest corners by

way of supplying drinking water through tankers.



Vana Mahotsav

5476 saplings were planted as part of the Vana Mahotsavam in

July 2015 and all departments of the port took part in this occasion.

Saplings that were planted will be taken care of by the respective

departments with assistance from the port EHS Department.

Under the Programme, the port has successfully set up four

nurseries in the area adjoining the port, with a total capacity of 20

lakh saplings. The Orchid Nursery has 5 lakhs capacity, Carnation

Nursery has 10 lakhs capacity, Tulip Nursery has 5 lakhs capacity.

KPCL has brought together people from nearby villages to join

the plantation activity and extend it to around their houses. The

port has also undertaken the project to set a green belt along

the roads that run from the port’s entrance to Venkatachalam,

connecting the National Highway, medians, traffic islands,

government buildings, towns like Nellore and many more.

VVIPs like the Central and State Government ministers, Customers,

business houses, Sports stars, Celebrities and many such eminent

figures visiting the port are made a vital part of this initiative.

One of the important participants of this drive are school

students who have shown great enthusiasm in planting saplings

in and around their schools and localities.

the week-long Swachh Andhra Pradesh programme, entire

scrap was segregated and kept in designated places. KPCL

also set a target of implementing color coding bins for various

waste collections at source.

Save Chennai

The Foundation also willingly extends a hand every now and then

towards special projects and emergency situations. During the

reporting period, the Foundation worked to save Chennai & floods

in Nellore emergency. Through the ‘Save Chennai’ Mission, KPCL

distributed more than 60,000 food parcels, 50,000 litres of fresh

drinking water, 20,000 litres of milk and a large number of packets

containing blankets, T-shirts, emergency medicines and other

supplies to those who were stranded in flood-affected areas. Rs.

947.88 Lakhs was spent on emergency relief activities.

Bettering Community Infrastructure

Majority of the residents in the project areas are poor. The foundation

has extended financial assistance to 90 community members in the

nearby villages. In addition, the foundation has extended its support

towards refurbishing the Government Revenue Guest house in

Nellore, and various Government Schools. The Sishu Griha is one

such project, in which one year financial support was provided to

complement existing services like provision of milk, clothes and

additional allowances to the child caregivers.

Swachh Andhra Pradesh

The EHS department conducted Swachh Andhra Pradesh

programme from 21st to 26th December, 2015. The team

conducted awareness training on 5S housekeeping, which is a

Japanese industrial programme for all divisions.

Employees and workmen were trained on the importance

of solid waste segregation and their disposal techniques for

making an aesthetically pleasing and safe environment. During

Other Projects

The Foundation also extended its support to a voluntary

organization involved in education of the underprivileged children in

Ananthpur, where a hostel building with capacity to accommodate

about 300 children was constructed with the support of KPCL.


F-Wing, 2nd Floor, Tex Centre, Chandivali Farm Road, Andheri (East), Mumbai – 400072

Telephone : +91-22-4245 0100 Facsimile : +91-22-4245 0180 www.intertek.com

KPP/March/17

Independent Assurance Statement

Introduction

Intertek India Private Limited (Intertek) has been commissioned by the management of Krishnapatanam Port Company Limited ( KPCL), to carry out an independent assurance engagement on the Company’s Sustainability Type 1 Moderate Report 2015-16 (‘the Report’) in its printed format. The Report is prepared by the Company based on the principles of Accountability Principles Standard (AA1000AS (2008)), Accountability Stakeholder Engagement Standard (AA1000SES (2011) and the Global Reporting Initiative Sustainability Reporting Guidelines Version 4 (GRI G4).

The intended users of this assurance statement are the management of the Company who is responsible for all information provided in the Report as well as the processes for collecting, analyzing and reporting the information presented in the printed Report. Our responsibility in performing this work was limited to the verification of the Report only, in accordance with the agreed scope of work. The assurance engagement is based on the assumption that the data and information provided to us is complete, sufficient and authentic. Our assurance engagement was planned and carried out ththduring 15 Jan 2017 to 15 March 2017.

Scope, Boundary and Limitations of Assurance

The scope of the assurance as agreed upon with Company included the verification of the content of the Report, prepared based on GRI G4. In particular the assurance engagement included: •Verification of the application of Report Content Principles set out in GRI G4 and quality of information presented in the Report over the reporting period 1st April 2015 to 31st March 2016; •This report is limited to three group entities namely – Krishnapatnam Port Company Limited ( KPCL); Krishnapatnam Port Container Terminal (KPCT) with a scope of Cargo handling Services and Vessel Handling Services and CVR Foundation •Review of the disclosures with respect to policies, initiatives, practices and performance described in the Report;

Review of the Report against the requirements of “Limited Assurance” ;Type 1, moderate level assurance engagement based on Accountability’s AA1000 Assurance Standard 2008 (AA1000AS (2008)); •Verification of the reliability of GRI G4 performance indicators. The reporting boundary is as set out in the Report, covering sustainability performance of KPCL. Our engagement also includes assessment of the financial disclosures, adequacy or effectiveness of Company’s strategy or management of sustainability related issues. During the assurance process, we did not come across limitations to the scope of the agreed assurance engagement. No external stakeholders were interviewed as part of this assurance engagement.

•

Verification Methodology

This assurance engagement was planned and carried out in accordance with AA1000AS (2008) i.e. Type 1, Moderate and using Intertek Protocol for Verification of Sustainability Reporting ; the protocol was based on assessment criteria of principles of Inclusivity, Materiality and Responsiveness as per AA1000 APS as well as Reliability of specified sustainability performance information as per of GRI 4.

Risk-based approach was adopted and verification efforts were concentrated on the identified issues of high material relevance to Company’s business and its stakeholders.

We did following to form our conclusions: •Visited Company’s main facility at Krishnapatanam ; port facility, terminal and seen activities of CVR foundation. •Reviewed approach to stakeholder engagement and its materiality determination process; •Verified the sustainability-related statements and claims made in the Report and assessed the robustness of the data management system, information flow and controls; •Examined and reviewed documents, data and other information made available; •Conducted interviews with key representatives including data owners and decision-makers from different functions; •Performed sample-based reviews of the mechanisms for implementing the company’s sustainability related policies, as described in the Report; •Performed sample-based checks of the processes for generating, gathering and managing the quantitative data and qualitative information included in the Report.

Intertek India Private Limited Regd. Office : E-20, Block B-1, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi -110 044, India Tele : +91-11-4159 5460, Facsimile: +91-11-4159 5475

F-Wing, 2nd Floor, Tex Centre, Chandivali Farm Road, Andheri (East), Mumbai – 400072

Telephone : +91-22-4245 0100 Facsimile : +91-22-4245 0180 www.intertek.com

Conclusions It would be fair on our part to state that the Report provides a fair representation of the Company’s sustainability related disclosures. The Report, along with the referenced information meets the general content and quality requirements.

We have evaluated the Report’s adherence to the following principles on a scale of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’:

Inclusivity: The Company engages in direct and indirect dialogue with key stakeholders to identify emerging issues through different channels. The material issues emerging from the stakeholder consultation were collected and prioritized, and the results are fairly reflected in the Report. In our view, the level at which the Report adheres to this principle is “Good”.

Materiality: The Company has reported its material issues of significance. The identified material issues are adequately covered in the Report. In our view, the level at which the Report adheres to this principles is “Acceptable”.

Responsiveness: We consider that the Company’s response to key stakeholder concerns, through its policies and management systems including governance are fairly reflected in the Report. In our view, the level at which the Report adheres to this principle is “Acceptable”.

Reliability: The majority of data and information verified at Corporate Office and at site were found to be accurate. Some of the data inaccuracies identified during the verification process were found to be attributable to transcription, interpretation and aggregation errors and the errors have been corrected. Hence in accordance with the Type 1, moderate level assurance engagement, we conclude that the specified sustainability data and information presented in the Report are generally reliable. In our view, the level at which the Report adheres to this principle is “Good”.

Specific evaluation of the information on sustainability performances We consider the methodology and processes for gathering information developed by the Company for its sustainability performance reporting to be appropriate and the qualitative and quantitative data included in the Report, was found to be identifiable and traceable; the personnel responsible was able to demonstrate the origin and interpretation of the data and its reliability. We observed that the Report presents a faithful description of the Company’s sustainability activities.

Positive Observation: -

- - -

Strong thrust from one and all, within the Organization, on Sustainable Development , ready to cater to the need of growing India, strong thrust towards Technological innovation for handling bulk cargo, prominent service provider on the east coast of India” Long term goals with Sustainability Context Continued and consistent focus on environmental and Social performance Company is working very religiously to achieve the short term goals and same is evident from the discussion with the sustainability team.

Opportunities for Improvement -

- -

-

Systematic approach towards energy management, compliance management and Social responsibility may be initiated as part of implementation of EnMS and ISO 26000. Benchmarking may be done so as to be the World Class Port Services. This being the first year for sustainability reporting at very few places other group companies data’s have also been referred. Same can be taken care in future reports. Biodiversity policy can be made more specific.

For Intertek India Pvt. Ltd.

Dr. Manish Chandekar Sandeep Vig

Intertek India Private Limited Regd. Office : E-20, Block B-1, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi -110 044, India Tele : +91-11-4159 5460, Facsimile: +91-11-4159 5475

GRI Disclosures Index

General Standard Disclosures

Strategy & Analysis

G4-1

Organizational Profile

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

G4-11

G4-12

G4-13

G4-14

G4-15

G4-16

8

4

12

12

2

14

8, 13

35, 36

35

23

14

17, 21

15, 37

15

6

Page No External Assurance General Standard Disclosures

G4-20

G4-21

G4-22

G4-23

Stakeholder Engagement

G4-24

G4-25

G4-26

G4-27

Report Profile

G4-28

G4-29

G4-30

G4-31

G4-32

G4-33

Governance

G4-34

Ethics and Integrity

G4-56 34

8

2

2

2

2

56

54

18

20

18

18

Page No

21

21

NA

NA

External Assurance

Identified Material Aspects & Boundaries

G4-17

G4-18

G4-19

2

21

21

Specific Standard Disclosures

Material Aspects

Category: Economic

Page No Omissions External Assurance Material Aspects

G4-EN16

G4-EN18

G4-EN19

G4-EN20

G4-EN21

Page No

29

30

30

30

30

Omissions External Assurance

Aspect: Economic Performance

G4:DMA

G4-EC1

G4-EC2

G4-EC3

G4-EC4

23

23

23

23

23

Aspect: Effluents and Waste

G4-DMA

G4-EN23

G4-EN24

G4-EN25

32

32

32

32

Aspect: Market Presence

G4:DMA

G4-EC5

G4-EC6

36

36

35 Aspect: Products and Services

G4-DMA

G4-EN27

Aspect: Compliance

G4-DMA

G4-EN29

Aspect: Overall

33

33

33

33 Aspect: Indirect Economic Impact

G4:DMA

G4-EC7

G4-EC8

Category: Environment

Aspect: Energy

G4-DMA

G4-EN3

G4-EN5

G4-EN6

Aspect: Water

G4-DMA

G4-EN8

G4-EN9

G4-EN10

Aspect: Biodiversity

G4-DMA

G4-EN11

G4-EN14

Aspect: Emissions

G4-DMA

G4-EN15

29, 30

29

27

27

27

31

31

31

31

28

28

30

29

23

23

23

G4-DMA

G4-EN31

33

33

Aspect: Environmental Grievance Mechanisms

G4-DMA

G4-EN34

38

38

Category: Social [Sub-Category: Labor Practices and Decent Work]

Aspect: Employment

G4-DMA

G4-LA1

G4-LA2

G4-LA3

34

35

36

35

Aspect: Occupational Health and safety

G4-DMA

G4-LA5

G4-LA6

39

39

39

Material Aspects Page No Omissions External Assurance Material Aspects Page No Omissions External

Assurance

Aspect: Training and Education

G4-DMA

G4-LA9

G4-LA10

G4-LA11

40

40

40

40

Category: Social [Sub Category: Society ]

Aspect: Local Communities

G4-DMA

G4-SO1

G4-SO2

44

44

44

Aspect: Diversity and Equal Opportunity

G4-DMA

G4-LA12

35

35

Aspect: Grievance Mechanisms for Impacts on Society

G4-DMA

G4-SO11

38

38

Aspect: Equal Remuneration for Women and Men

G4-DMA

G4-LA13

40

40

Category: Social [Sub Category: Product Responsibility]

Aspect: Marketing Communications

G4-DMA

G4-PR7

25

25 Aspect: Labor Practices Grievance Mechanisms

G4-DMA

G4-LA16

38

38

Aspect: Customer Privacy

G4-DMA

G4-PR8

25

25 Category: Social [Sub-Category: Human Rights]

Aspect: Investment

G4-DMA

G4-HR1

G4-HR2

38

38

38 (partial data)

Aspect: Non-Discrimination

G4-DMA

G4-HR3

Aspect: Child Labor

G4-DMA

G4-HR5

38

38 (work order clauses)

38

38

Aspect: Forced or Compulsory Labor

G4-DMA

G4-HR6

38

38

Aspect: Security Practices

G4-DMA

G4-HR7

39

39

Aspect: Supplier Human Rights Assessment

G4-DMA

G4-HR9

38

38

KRISHNAPATNAM PORT


KRISHNAPATNAM PORT COMPANY LIMITED

Plot No. 379, Road No. 10, Jubilee Hills, Hyderabad - 500 033, Telangana, India. Tel: +91 40 2333 9992; Fax: +91 40 2355 7789 E-mail: [email protected] Web: www.krishnapatnamport.com

Sustainability Report - kpcl.com · About the Report This is the first sustainability report of...

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