According to the World Bank, Global GDP growth is estimated to have picked up from 2.4% in 2016 to 3.1% in 2017, which is an improvement over the earlier forecast of 2.7% for 2017. The forces shaping global growth in the year 2017 - those operating over short-term and those operating over long-term - point to a gradual recovery on account of the slow but steady normalisation of macroeconomic conditions in several emerging markets that had been experiencing deep recessions.

The broad-based recovery in 2017 was aided by a rebound in investment and trade against the backdrop of benign financing conditions, generally accommodative policies, improved confidence, and the dissipating impact of the earlier commodity price collapse. World Bank expects global GDP growth rate to sustain at 3.1% in 2018 led by generally robust conditions even though manufacturing and trade activity have seen some softening in recent months. Growth in advanced economies is expected to moderate slightly to 2.2% in 2018 from 2.3% in 2017, as central banks gradually remove their post-crisis accommodation and the upturn in investment growth stabilises. Growth in emerging market and developing economies as a whole is projected to strengthen to 4.5% in 2018 from 4.3% in 2017, as activity in commodity export continues to recover amid firming prices.

However, post 2018, global growth is expected to edge down gradually to 2.9% in 2020 as global slack dissipates, trade and investment moderates, and financing conditions tighten. The global outlook is still subject to substantial downside risks, including the possibility of financial stress, increased protectionism, and rising geopolitical tensions. Industries particularly need to keep a lookout for longer-term risks and challenges associated with subdued productivity and potential growth. Focus should now turn to the structural policies needed to boost longer-term productivity and living standards.

According to World Bank, growth in the East Asia and the Pacific region is forecasted to slip to 6.3% in 2018 from an estimated 6.6% in 2017. A structural slowdown in China is seen offsetting a modest cyclical pickup in the rest of the region. In South Asia, growth is expected to pick up to 6.9% in 2018, up from 6.6% in 2017 led by India which is estimated to clock GDP growth of 7.3% in 2018 (6.7% in 2017).

The 2017-18 economic survey of the Indian government indicates that the worst is behind for the Indian economy. The first half of FY2017-18 was adversely impacted by the lingering after effects of demonetisation and teething problems with GST introduction. However, growth picked up in later half as the effects of these factors receded and Indian exports were boosted by global economic pick up. Sentiment received a boost with India’s rank in terms of 'Ease of Doing Business' accorded by World Bank rising sharply by 30 spots. India’s sovereign rating was also upgraded from Baa3 to Baa2 by Moody’s in November 2017 citing India’s continued progress on economic and institutional reforms over time which is expected to enhance India’s growth potential. This was the first such rating upgrade by Moody’s in the last 14 years.

The survey expects GDP growth rate to pick up to 7.0%-7.5% in FY19, up from an estimate of 6.75% for FY18 led by the structural policy reforms undertaken by the Government of India. The country is also likely to benefit from the resolution of financially stressed assets under the aegis of the Insolvency & Bankruptcy Code (IBC) going forward. The downside risks to India’s growth are trade protectionism, spike in crude oil prices and tighter global monetary conditions.

Global Perspective

As per the BP Energy Outlook 2018, growth in global coal consumption in 2017 slowed sharply relative to the past, with falls in China and OECD offset by increasing demand in India and other emerging Asian economies.

Going forward, as per the BP Energy Outlook 2018, global coal demand is expected to be flat, in sharp contrast to the past 25 years, during which coal was the largest source of energy growth. Much of the slowdown is driven by China, where coal consumption is estimated to be broadly flat over the next 10 years or so, before declining thereafter. The country has been steadily moving towards cleaner, lower-carbon fuels as an alternative to coal. Despite this, China remains the world’s largest market for coal, and is expected to account for 40% of global coal demand in 2040.

Coal demand within the OECD is projected to decline going forward, largely driven by environmental policies, except in the US where the availability of low-cost natural gas is the main factor driving out coal. In contrast, coal demand within India and other emerging Asian economies is expected to increase, as the fuel continues to industrialise and electrify their economies. India is the largest growth market for coal, with its share of global coal demand estimated to increase by more than double from a little over 10% in 2016 to around a quarter by 2040.

Indian Perspective

India used approximately 902 million tonnes (MT) of coal in FY2017-18 (Source: CARE Ratings, dated May 15, 2018). The domestic coal production was 689 MT and the balance 213 MT was imported. For FY2017-18, the total offtake of Coal India Limited (CIL) was 580.3 MT, a growth of 6.8% over FY2016-17 offtake. However, this was below the target of 600 MT. Production for FY2017-18 was 567.4 MT which represented a sluggish growth of 2.4% over FY2016-17 levels. The supply to power sector was 454.3 MT in FY2017-18, a growth of 6.8% Y-o-Y. Going forward, Coal India targets to achieve production of 1 billion tonnes by 2020. However, considering the current growth trajectory this target appears to be stretched.

Indian Power Sector

Power is one of the most essential components of infrastructure crucial for economic growth and welfare of a nation like India. Both renewable and conventional sources of fuel have a role to play in sustaining the country’s growth story. Coal continues to remain the backbone of the power sector and the economy in general, chiefly due to its contribution to total power sector and the multiplier effect it has on the economy. At the same time, coal-based plants have been facing a number of challenges including shortage of domestic coal for private sector players and rise in imported coal prices since the lows of end 2015. Weak financial health of power distribution companies hinders power offtake. This situation is further impaired by rampant power theft and poor distribution infrastructure in the country.

Electricity demand in the country has been increasing gradually and is expected to rise further in the years to come. In order to meet the escalating demand, power capacity addition accelerated recording a CAGR of 10% from FY2011-12 to FY2016-17 exceeding the targets set in for this period. The average annual capacity addition during this period was about 25 GW. However, FY2017-18 has seen a sharp decline in the pace of capacity addition which fell to 17.2 GW, a decline of ~31% Y-o-Y.

FY2017-18 witnessed a robust growth in total power generation at 5.4% Y-o-Y. All India generation stood at 1,308 BUs, up from 1,242 BUs last fiscal. Power generated from thermal segment, which accounts for 80% of the total generation, registered a 4.3% Y-o-Y growth while nuclear and import from Bhutan together saw a decline of about 1%. Hydro power generation saw a modest growth at 3.1%. Renewable energy segment contributed 8% to overall generation with a strong growth rate of 24.9%.

Slowdown in new thermal capacity addition and recovery in demand growth led to improvement in overall thermal PLF from 59.8% to 60.7% this fiscal. However, supply side constraints due to lower availability of coal in H2-FY2017-18 and rise in share of generation from RE segment had an adverse effect on private sector PLFs.

Total power demand in India grew at 6.2% Y-o-Y in FY18 with growth rate picking up every quarter. While significant, this growth did come against a relatively low base last fiscal, when demand grew at just 2.6% Y-o-Y. Uttar Pradesh, Telangana, Gujarat, Maharashtra, Chhattisgarh, Andhra Pradesh and Madhya Pradesh were the major contributors to this uptick in demand.

South region, which grew fastest in FY17, was the only region to witness slowdown in growth from last fiscal. North-east region saw the highest growth at 7.1% Y-o-Y, while North and West registered 6.5% Y-o-Y growth each. South saw a modest growth at 4.8% Y-o-Y.

Cumulative deficits rose by 13% Y-o-Y to 8.6 BUs this fiscal. Deficit increased in North by 10% Y-o-Y. Other regions also witnessed increase in deficit but on a lower base. Peak deficit in FY18 rose 27% Y-o-Y to ~3.3 GW.

a) National Electricity Plan

The CEA has published the National Electricity Plan in January 2018, which expects power demand to grow at healthy CAGR of 6.2% in the 13th five year plan (FY2018- 22). The plan expects the total installed capacity to reach 479.4 GW by the end of FY2021-22. This includes the thermal capacity of around 243 GW, Hydro capacity of 51.3 GW, Nuclear capacity of 10 GW and rest contributed by the Renewable segment.

b) UDAY

Under the UDAY scheme for revival of DISCOMs, announced in November 2015, concerted efforts over the last two fiscals have resulted in parameters such as debt restructuring and feeder metering showing relatively better performance, while parameters such as AT&C losses, revenue gap, and smart metering are currently lagging. The scheme has already addressed 86% of targeted bond issuance as at the end of FY18. As per the provisional data for March 2018, in the last two years, post UDAY: (1) State distribution (discom) losses witnessed a massive 70% reduction to ` 173.5 billion (2) AT&C (technical & commercial) losses went down to 19% from 24% but below target of 17.7% and (3) the gap between ACS & ARR (cost & tariff rate) reduced by 57% to ` 0.24 per unit (kwh).

Jammu & Kashmir, Rajasthan, Punjab, Uttar Pradesh, Madhya Pradesh, Jharkhand, Puducherry and Goa are a few major states/UTs that have missed the target for curbing AT&C losses.

c) SAUBHAGYA

In September 2017, the Government of India launched a new household electrification scheme, 'Saubhaya' (short for The Pradhan Mantri Sahaj Bijli Har Ghar Yojana) to achieve electrification of all eligible/willing households, both urban and rural. Under this scheme, free electricity connections are provided to below poverty line (BPL) households, while other households have to pay ` 500 for the connection. The total outlay of the scheme was pegged at ` 163 billion, with rural share of ` 140 bn and urban share of ` 23 billion. The funding is largely from Government of India to the various States/UTs who will be implementing this scheme. The target is electrification of around 37 mn households by 31st December 31, 2018. Post the launch of the scheme, government has currently electrified about 20.2% of the targeted households. Government expects to create 28,000 MW and additional energy of 80 BU (6.6% of overall demand) through this scheme.

India’s thermal power capacity has been hit hard due to shortage of domestic coal supply in the recent past. This is primarily evident in the private sector where plant load factors have been declining for the past two consecutive years. The supply side was largely constrained due to inadequate mining and transport infrastructure to support the increasing coal demand. Logistics hurdles will continue to impact the sector in the near-term; however, projects to improve rail connectivity and rake availability currently under implementation are expected to alleviate this in the medium to long-term. Another challenge grappling the sector is lack of new power purchase agreements for private thermal players.

Over the past 12-15 months, average global coal prices have witnessed a sharp increase attributable to strong Asian demand and tight supplies. Given, about one-fourth of India’s installed capacity is either partially or fully dependent on imported coal, rising coal prices will impact the viability of these plants.

Since July 2017, merchant market tariffs have been on an upward trend, on account of demand-supply mismatches, mainly stemming from unavailability of domestic coal and transport infrastructure issues.

In the renewable energy space, threat of imposition of import duty on solar modules have hampered bidding activity for solar energy projects. Nevertheless, tariffs discovered during bidding have remained below ` 3/ kWh. The sharp decline in tariffs is adversely impacting the economics of renewable projects. The challenge of maintaining stability of the power grid also accompanies incremental renewable energy capacity installations.

Outlook

Indian power demand growth picked up sharply to 6.1% in FY2017-18 from a meagre 2.6% growth in FY2016-17.

The 2018 Union Budget proposals are also pro-growth with focus on rural development and infrastructure. The government has outlined ~21% Y-o-Y increase in funds for infrastructure in FY19. Led by this and the various reforms, including GST, Indian GDP growth is likely to remain buoyant in the short to medium-term.

With limited capacity addition, which is likely to be significantly below targets, PLFs may firm up over the medium to long-term. This may also provide more visibility on signing of new long-term PPAs. We are also likely to see consolidation in the power sector in this phase which will further aid the demand-supply balancing. However, higher coal prices and constrained availability of coal, especially for private sector power plants, continue to remain key concerns to watch for.

The Government of India has released its roadmap to achieve 175 GW capacity in renewable energy by 2022, which includes 100 GW of solar power and 60 GW of wind power. The Union Government of India is preparing a ‘rent a roof’ policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022.

Company Overview

JSW Energy Limited is an India-based integrated power Company primarily engaged in generation and sale of power. The Company either by itself or through its subsidiaries/ joint ventures/ associates is engaged in power generation, power transmission, mining, power trading and equipment manufacturing. JSW Energy operates 4,531 MW (Thermal – 3,140 MW and Hydel – 1,391 MW) of power generation capacity with long-term vision to achieve 10,000 MW in power generation capacity. In less than a decade of its operations the Company has crossed several milestones working on power solutions in the States of Karnataka, Maharashtra, Rajasthan and Himachal Pradesh. The Company’s strategic approach aims at presence in multiple geographic locations, having a diversified fuel source, prudent power off-take arrangements with a resolute commitment to sustainable business practices and inclusive growth.

Competitive Advantages

Efficient Operating Assets
JSW Energy has boasted of the best run thermal power plants in India on a consistent basis. The Company’s prudent governance and benchmark O&M practice has resulted in consistently higher PLFs vis-à-vis average PLFs of other private players.

Plant-wise PLF and Net Generation

Thermal Power Plants

Vijayanagar

Plant load factor: In the year ended March 31, the plant achieved an average PLF of 53.27% as against 58.61% in the previous year.

Total net power generated: 3,703 MUs

Power Sales: Primarily to Karnataka DISCOMS, JSW Steel Ltd and JSW Cement Ltd

Key strengths of the plant

• Located in southern region which has traditionally seen higher demand for power
• Low cost and operationally strong plant leading to lower O&M cost and higher PLF efficiency

Ratnagiri

Plant load factor: The plant operated at an average deemed PLF of 68.50% in FY2017-18 as against an average deemed PLF of 70.30%in the previous year.

Total net power generated: 6,111 MUs

Power Sales: Primarily to CPP consumers and MSEDCL

Key strengths of the plant

• Located near the Jaigad port thus saving on coal transportation cost
• Nearly 47% of the capacity has been tied up with CPP Consumers ensuring recovery of its fixed cost, including ROE to that extent

Barmer

Plant load factor: In the FY2017-18, the plant achieved an average deemed PLF of 84.32% as against an average deemed PLF of 84.35% in the previous year.

Total net power generated: 6,140 MUs

Power Sold to: Rajasthan DISCOMS

Key strengths of the plant

• Assured availability of fuel (lignite) being a pit head based power plant
• Long-term PPA with DISCOMS for full capacity ensuring full recovery of the fuel cost and fixed cost, including ROE

Hydro Power Plants

Baspa-II

Plant load factor: The plant achieved an average PLF of 50.86% for the FY2017-18 as against 51.09% in the previous year.

Total net power generated: 1,322 MUs

Power Sold to: Himachal Pradesh State Electricity Board (HPSEB)

Key strengths of the plant

• 100% power tied up with HPSEB ensuring full recovery of fixed cost, including ROE

Karcham Wangtoo

Plant load factor: The plant achieved an average PLF of 52.18% for the FY2017-18 as against 49.91% in the previous year.

Total power generated: 4,540 MUs

Power Sold to: Uttar Pradesh, Rajasthan, Haryana and Punjab (commenced in FY2019) through long-term PPA with PTC India Ltd

Key strengths of the plant

• Long-term PPA for 100% capacity tied up with various DISCOMS under CERC regulations.

The Consolidated Net Worth and Consolidated Net Debt as on March 31, 2018 were ` 11,109.70 crore and ` 11,278.25 crore respectively, resulting in a Net Debt to Equity ratio of 1.0 2 times.

EBITDA and Profit after Tax

Risk Management

The Company has been following the globally recognised Committee of Sponsoring Organisations (COSO) framework of Risk Management to proactively manage risks and opportunities that impact organisational objectives.

The relevant risks are identified, assessed and then responded. The framework provides for:

• Timely identification, communication and assessment of risks and opportunities.
• Risk ownership aimed at comprehensive coverage, impact assessment, proactive action and regular tracking.
• Training of all risk owners with a view to embedding risk intelligence in:
  a) Decision making – to ensure prudence
  b) Performance – to ensure competence and accountability
• Timely escalation to the Directors’ Committee for risk oversight to ensure prioritisation of initiatives and allocation of resources in line with enterprise objectives.
• Independent review through risk based audit.

Power Off-take

Merchant tariffs tend to be volatile, fluctuating with small changes in demand-supply. With the DISCOMS adhering to strict fiscal discipline leading to deferment of power procurement, power demand has taken a hit. Transmission corridor related bottlenecks, especially pertaining to sales to the power deficit southern region has also served as a major dampener.

Response Plan

• Response Plan Focus on enhancing the sale through long-term PPAs and through captive route
• Tracking various opportunities for sale of power to utilities in the home states as well as others
• Focus on ensuring an optimum mix of medium, short and long-term arrangements

Fuel

The Company is currently using imported coal from countries like Indonesia, South Africa and Australia. The interruption in supply of coal due to regulatory changes, weather conditions in the sourcing country, strikes by mine workers, and closure of mines due to force-majeure can impact the availability and/or cost of coal.

Response Plan

The Company regularly broadens the sources (countries/ vendors) and maintains the optimum fuel mix and stock level. Further, it is planning to utilise domestic coal in its coal mix at its Vijayanagar and Ratnagiri plants. The required domestic coal is proposed to be obtained through the forward e-Auctions of coal conducted by Coal India from time to time. In this regard, the Company has already secured all necessary approvals from the Ministry of Environment, Forest and Climate Change, to blend upto 50% domestic coal for the Vijayanagar plant and upto 25% for the Ratnagiri plant as well as the consent to operate for the same.

Rupee-dollar Fluctuation

Foreign exchange fluctuations can affect cost of coal and in turn the Company margins.

Response Plan

Prudent hedging strategies to mitigate the risk of foreign exchange fluctuations

Human Resource Management

Creating a new benchmark every year with improved productivity as well as building capability to lead and attain competitive advantage, HR has been at the fulcrum of the business and driving the agenda of the organisation. The year 2017-18 has been exciting with our foray into Electric Vehicle business and Renewable Energy. Linking people, strategy and performance; Human Resources at JSW Energy embarked upon the following HR interventions in the year 2017-18:

Future Fit Leaders

JSW Energy has always laid emphasis on developing and grooming leaders in-house so that Leadership positions are occupied by High Potential talents of the Organisation. Keeping this in view, JSW collaborated with Cornell University; ISB, Hyderabad and IIM, Ahmedabad for imparting Management Development Programmes to these High Potential Talents.

Capability Development

Redeploying internal talent to support our foray into Electric Vehicle and Renewable Energy and reskilling them in the new areas was one of the major HR Interventions during the year. Systemic job rotation proved beneficial in meeting the initial requirements of these two new verticals. These were supported by Learning interventions viz. Finance for Non-Finance, Business Communication and MDPs.

Umang

As in the previous years, JSW Energy continued with its efforts on fostering employee inclusion and engagement through various celebrations like month-end birthday celebration, out-bound training programmes, sports and game activities for employees and their families. Besides, there were regular town-hall meetings by senior leadership team with cross-section of employees in all the locations to strengthen the two-way communication.

Total Quality Management

JSW Energy embarked on the journey of Total Quality Management (TQM) by launching various TQM Councils and initiating quality certification programme for all its 800+ Managerial employees with an objective to qualify for Deming award. JSW Energy has launched TQM initiative across all its locations.

Job Rotation & Career Opportunity to Inhouse Talents

As a part of building the organisation and providing opportunities to the employees for growth and development, employees from our different Plant locations have been posted in the upcoming businesses of Electric Vehicles and Solar Power in FY18. The year FY18 witnessed a lot of job rotation at different levels of employees. Internal mobility of our employees has not only helped in spreading best practices across our different locations but also provided exciting opportunities to inhouse talents.

JSW Energy believes in inclusive growth to facilitate creation of a value-based and empowered society through continuous and purposeful engagement with the local communities.

With a strong belief in inclusive growth and engaging communities to achieve equal social and economic opportunities, JSW Energy has been working towards eradicating poverty and hunger, tackling malnutrition, promoting social development, addressing social inequalities by empowering the vulnerable section of society, addressing environmental issues, preserving national heritage and promoting sports training.

JSW Energy is committed to

• Continue allocating at least 2% of its Profit towards a special corpus for Corporate Social Responsibility as per the categories specified in the Companies Act, 2013
• Transparent and accountable system for social development and impact assessments through an external agency
• Concentrate on community needs and perceptions through social processes and related infrastructure development.
• Provide special thrust towards empowerment of women through a process of social inclusion
• Promote arts, culture and sports and conserve cultural heritage
• Spread the culture of volunteerism through the process of social engagement

CSR Framework

The Group’s central CSR body, JSW Foundation, administers the planning and implementation of the Company’s CSR interventions. A separate body has been created for the Company, which is administered by a Committee appointed by the Board. All the CSR initiatives are approved by the Committee and the same are reviewed periodically at different levels.

Taking a note of the importance of synergy and interdependence at different levels, JSW Energy has adopted a number of intervention strategies that combine working with multi-stakeholders as well as directly, depending on the appropriateness. The strategies adopted in this regard are as follows:

• Priority is given to the villages in the immediate vicinity of the plant location, defined as Direct Influence Zone (DIZ). The policy enables plants to define their own DIZ with the provision that this could be expanded as per the size of operations. However, certain programmes might be expanded beyond this geographical purview (Indirect Influence Zone or IIZ) and scaled up
• All interventions are formulated based on need assessment using different quantitative and qualitative methods that lead to measurable impact and are implemented either directly or in partnership with Government and civil society groups at various levels
• All interventions are adopted based on concurrent evaluation and knowledge management through process documentation and sharing
• Social mobilisation, advocacy at various levels, and/or appropriate policy changes form part of the interventions in each sector

Key Highlights

Improving Living Conditions

Vijayanagar

A) Soil and Water Conservation through watershed management in association with ICRISAT (Hyderabad)

• 487 farmers benefitted from additional net storage capacity of 25,000m3 ground water
• 3,500 farmers benefitted from various capacity building and exposure on new practices
• Average yield increased by 12-25% through improved practices and improved variety of seeds, which are now available locally

B) Health Care

• Physical infrastructure improvement work was undertaken in Public Health Centre at Toranagallu by providing Generators, Water Filters and solar power backup. This has increased the in-patients in all the centres.
• Drinking water facility was provided by installation of RO Plants in surrounding villages

Ratnagiri

A) Agriculture initiatives

• 168 farmers are now growing paddy by using Direct Seed Sowing Method (SRT). The technology reduces back breaking labour by 50% and cost of production by 40%. It also stops emission and greenhouse gases and improves soil fertility. The average yields have increased from 3.53 ton/Hectare to 7.57 ton/Hectare
• 200 Farmers trained in new paddy cultivation methods, vegetable crops and spices plantation by Trainer Sh. Dyaneshwar Bodake, Founder of Abhinav Farmers Club Pune.
• 30 Farmers trained in Bush pepper plantation at Sathkhondi by Trainer Dr. Vaibhav Shinde
• 15 farmers were trained on Integrated farming system at Abhinav Farmers club Hinjewadi, Pune by Abhinav farmers club team.
• 6 farmers planted Banana in 1.37 Hac. barren land thereby converting it into cultivatable one.
• 13 Farmers cultivated Ginger in 1.86 Hac with expected yield of at least 40 tonnes
• Under Livestock development project, 16 farmers from Panchkroshi took interest in organic farming and six farmers purchased Gir cow from Gujarat which provides high A2 quality milk yield
• Hydroponic fodder (fodder grown using hydroponics technology) to feed farm animals is an alternative to the conventional method of green fodder production. Green fodders produced by using seeds without soil but in water or nutrient rich solutions are known as hydroponics green fodder. Compared to conventional methods of growing fodder, hydroponic fodder requires lesser space and produces highly nutritious fodder than soil farming. The capacity of the unit set up is 30-40 kg green fodder per day
• Provided Technology support to increase the income of farmers, land productivity, and safekeeping of crops
• Provided drip irrigation system to 8 farmers in 2 Hac and 2 Water pumps at Chaferi and Niwli
• 15 farmers involved in vegetable crop cultivation/ plantation
• Under Watershed Management, constructed 2 cement bandharas and one spring development with the water storage capacity of 2,000 cum at Patilwadi and Sathkhondi villages
• Vermi compost pit constructed to produce superior quality manure to feed the soil

B) Health initiatives

• JSW URJA PHC provided regular health care services: OPD - 16373, IPD - 190, Lab test - 738 and specialist consultants services - 190 beneficiaries
• Blood donation camp conducted at URJA PHC - 73 units of blood collected
• Under Community health initiatives, 2 health camps were conducted at (Panchakroshi) villages with 178 beneficiaries. Also school health check-up camp conducted at 15 primary schools and anganwadis benefiting 370 students
• Conducted m-Mitra programme for underprivileged communities in Ratnagiri, to reduce mortality and morbidity in mothers, children and neonates and thus improving their well-being

Mumbai Corporate

• Village Social Transformation Project- 39 villages were identified on basis of low HDI. 9 organisations including JSWF on board has committed ` 10 crore support for next 3 years; 15 RDFs are deployed as programme coordinators

Outcomes

• Facilitated Drinking water provision, school toilet repairs, soil testing kits, educational infrastructure, NTFP processing, repairs of anganwadis, solar electrification etc. with expenditure of ` 1.15 crore so far
• Helped 10 youths to start solar lights assembly & sales business
• Mobilised Anganwadis & schools to champion the liquor ban activities

HBPCL Sholtu

• Three Government Community Health Centres and Three Primary Health Centres were upgraded with equipments such as X-Ray Machine, Auto Analyser, Incubators, Dental Chair, and Microscopes
• Constructed Postmortem Room & developed site at PHC Tapri. Renovated CHC Sangla & Katgaon to improve the medical care facilities in the area
• Frist Aid kits with Fourfold stretcher were distributed to all 20 Gram Panchayats of DIZ. Also trainings were provided to all Asha Workers of DIZ
• Distributed 6,000 Plants of improved variety of Apple like Red Chief and Orgeon Spur to 240 House Holds of the weaker section of Community so as to uplift their livelihood
• Developed a Community Apple Orchard cum Training Centre at Gram Panchayat Brua by planting 350 apple plants
• Provided 1.50 Km of 3” HDPE pipe & pump for implementing Drinking Water Scheme to village Chagaon benefitting 75 House Holds
• Provided 1.0 Km 3” HDPE pipeline & Submersible Pump for Gram Panchayat Kamroo for implementing irrigation scheme

RWPL Barmer

• Installed Borewell-Hand-pump at 23 rural habitations of 10 Gram Panchayats to provide drinking water
• Piped water supply of 3.5 lakh litre/day to a cluster of 4 villages
• Extended support to Mukhyamantri Jal Swavalamban Abhiyan (MJSA - Phase III)
• Distributed Spirulina to eradicate malnutrition among 1,272 identified underweight children and 506 lactating women of 70 Anganwadi Centres of Barmer block
• Conducted 10 Medical Camps to address seasonal ailments of the community benefitting 514 people
• Conducted 120 Alternative Medicine Camps benefitting more than 4,000 people
• Provided 24x7 referral services through ambulance
• Electrified labour ward and emergency room at Community Health centre, Bishala

Promoting Social Development

Vijayanagar

• To ensure cleanliness and hygiene, steel plates and glasses were provided to 9,000 students in 45 schools
• Ensured regular mid-day meals to reach over 30,000 school students through Akshaya Patra
• Commissioned a 2 tonne Boiler, Chimney, PRS, Interconnecting Ducting Piping, Softener, 50 kwh Solar Power Project, Parking Shed for Trucks, and 6C um/hr RO Plant
• Model School Toilets were constructed in three villages at Veniveeraura, Sandur and P. K. Hilli
• Supported government schools by creating platform for science centres
• Organised District Level Science Competition for 8,000 students from over 100 schools participated in the competition
• Undertook minor repair works at Ankalamma School
• Setting up of skill School in association with National Skill Development Council (NSDC) is under process
• Conducted AVISHKAR – Science Exhibition/Competition for 40 school Children around Toranagallu; Total 9,000 children participated

Ratnagiri

C) Education initiatives

• Conducted upgradation of ZP Schools, repairing work at Sandelavgan school, and construction of Kitchen garden at 2 schools
• Conducted Quality education programme, and various competitions such as poem writing, table writing and text reading
• Constructed Bore wells at three schools for drinking water
• 6 students of class 10th and 12th were felicitated with cash award of ` 20,000/- at Jaigad high school
• JSW Jindal Vidya Mandir provided quality education in CBSE syllabus to 543 students of Jaigad panchkoshi villages

D) O P J Centre for Vocational Training – Building skills and entrepreneurship

• The Company is committed to maintain the trust of our community and stakeholder by providing them employment opportunity through skill development programme with partnership of Fr. Agnel Institute for Technical Training & Entrepreneurship Development (AITTED), the renowned organisation for technical skills in Mumbai
• OPJC has facility of Computer lab for 20 students for Non-voice BPO, separate Audio visual room and LCD cum group discussion room in the premises
• Following trades are at present in running
• 61 girls trained in Non voice BPO
• 25 Dress Making & Fashion Designing
• 36 boys Marine Fitter trade
• 101 for BPO operations
• Total revenue in the year 2017-18- ` 92 Lakhs

HBPCL Sholtu

• Constructed new buildings for three Government Schools, renovated a Government School and provided a mid-day meal kitchen
• Improved the Computer lab with 22 new Computers & installed 32 CCTV Cameras at JVM, Sholtu
• Pre-school education-intensive Workshop for Anganwadi Sevikas and supervisors of all 78 Aanganwadi centre's of DIZ with the support of NGO Navnirmiti and ICDS dept. Provided learning Material for the Children. 6 Aanganwadis were converted to Model Aanganwadis
• Life Skill and Adolescent Education Programme conducted in 26 Government Schools of DIZ benefitting 1,113 girl children
• Conducted Women empowerment & awareness Camps through Paryas

RWPL Barmer

• Installed Mini Science Lab at 14 schools to provide experiment oriented learning for school children
• Provided scholarship to 29 students of 4 villages of DIZ to facilitate their technical education
• Conducted ‘Theatre In Education’ initiative in 10 schools to provide orientation on learning through theatrical art
• Facilitated additional teachers in three Govt. schools
• Screened Films for Children in six schools benefitting more than 550 students
• Conducted Applique, embroidery, patchwork and designing training to 91 women SHG members of Bhadresh Gram Panchayat
• Conducted Computer orientation training to 177 boys and girls at 06 Computer centres
• Conducted Three months training course on tailoring work to 194 village women at 06 training centres
• Constructed a Vocational Training Centre at Bhadresh village
• Constructed a stadium at Govt. Sr. Sec. School, Bhadresh

Addressing Environment Concerns

Ratnagiri

• Supported 12 bio gas units at 8 villages of Ratnagiri area. The capacity of each unit is 2 cum, which is sufficient for a family of 5 members. Cost of a unit is about ` 35,000/, out of which ` 10,000/- is supported by JSW
• Facilitated a 9-member group who installed one pallet plant in this financial year

HBPCL Sholtu

• Installed 92 Solar Street Lights in 12 Gram Panchayats of DIZ, so as to promote use of Renewable Energy
• Installed & Commissioned 1,000 kg capacity Solid Waste Management Unit at District Head Quarter Reckong Peo
• Planted 6,000 saplings of various species like Chilgoza, Cheer, Weeping Willow, Robinia, Apricot, Deodar etc. in FY2017-18 with the participation of local residents

RWPL Barmer

• Developed 3 Community Pasture Land (60 bighas each) at 3 Gram Panchayats
• Developed 3 Orchard & kitchen gardening (2 bighas each) at Bhadresh Gram Panchayat
• Provided 5 goats & 1 buck of improved breed at Kapurdi GP to pilot livelihood from goat rearing
• Extended Support in Mukhyamantri Jal Swavalamban Abhiyan
• Para-vet cum Artificial Insemination vocational training imparted to 36 rural youth

Preserving National Heritage

RWPL Barmer

• Helped in Restoring houses, lanes/square and shrine to the ancient period (400 years old)
• Restored various Stepwells in the vicinity
• Constructed tourism friendly infrastructures like Cafeteria, admininstrative and security block, parking and souvenir shop, heritage lights, tents, signage, benches, water cooler with RO and garbage bins
• Constructed Sub-station and requisite electrical fitting
• Conserved folk music & traditional art of Barmer - provided training to 120 children of 2 Gram Panchayats

Promoting Sports Development

Ratnagiri

With the support of JSW Foundation,

• 2 children were selected at state level for athletics competition
• 13 Girls won district level competitions
• 12 children participated at international karate championship and won 2 gold, 6 silver and 10 bronze in various categories
• 2 Students were selected for State level Competition in distance running

Mumbai Corporate

• JSW Energy supported and identified meritorious sport persons from rural areas in boxing
• 6 boxers of JSW Sports Excellence Program competed at national/ international level & 35 IIS boxers were supported for training

JSW Sports Boxing Program Achievements

Vikas Krishnan Yadav – (69 kg)

• Gold at the 21st Commonwealth Games, Gold Coast
• Gold and the Best Boxer Award at the Strandja Cup, Bulgaria

Satish Kumar – (91 kg)

• Silver at the 21^st Commonwealth Games, Gold Coast
• Gold at the 34^th International Boxing Championships, Kazakhstan
• Silver at the 1^st India Open International Boxing Tournament, Delhi
• Gold at the Elite Men’s National Boxing Championships, Vishakhapatnam

Dheeraj Rangi – (64 kg)

• Gold at the Men’s Elite National Boxing Championships, Vishakhapatnam

Manisha Moun – (54 kg)

• Gold at the 1^st India Open International Boxing Tournament, Delhi
• Silver in the 2^nd Elite Women’s Boxing Championships, Rohtak
• Gold at the All India University Championshipss

Soonu Poonia – (57 kg)

• Bronze at the All India University Championships

Astha Pawa – (75 kg)

• Gold at the 2018 Youth Women’s National Championships, Rohtak

Niharika Gonella – (75 kg)

• Silver at the 2018 Youth Women’s National Championships, Rohtak

Manjeet – (60 kg)

• Bronze at the 2018 Youth Women’s National Championships, Rohtak

HBPCL Sholtu

• Distributed Cricket kits to Youth Clubs of 5 Gram Panchayats and Boxing Equipment to 35 Boxing Trainees of Sangla

Rural Development Projects

Vijayanagar

• Constructed Road from Old Gate to Over bridge at Toranagallu Railway Station area
• Constructed Drainage and Internal Road at Nearby Railway Station area, Toranagallu
• Installed LED Street Lights from Old Gate to Over bridge at Toranagallu Railway Station area
• Helped Commissioning of RO Plant of 1,000 Cum at Toranagallu

Ratnagiri

• Conducted School repairing work at Sandelavgan School
• Constructed Bore wells at seven locations
• Constructed Community hall at Nandiwade village
• Constructed Road at Patilwadi village, and Nandiwade village

HBPCL Sholtu

• Installed 4 High Mast Lights at Gram panchayats of Chansoo, Punang and Katgaon
• Constructed Village Paths at Gram Panchayats Punang & Panvi of 600m length.
• Developed Playground at Gram panchayat Kilba.
• Constructed Kalamanch (Performance Stage) at Sangla
• Installed CCTV cameras at Tapri and JSH Sholtu
• Constructed 750 metre road (undertaken through HPPWD) for Kilba panchayat
• Renovated Cremation Shed at Gram Panchayat Chansoo

RWPL Barmer

• Installed 371 nos. solar street lights in 8 habitations of 4 Gram Panchayats
• Constructed 2 community halls and 1 classroom at Govt. School in Bhadresh Gram Pachayat
• Repaired 4 community halls of different habitations at Bhadresh and Bishala Gram Panchayats
• Repaired of Kalakar Bhawan at Bhadresh Gram Panchayat

Swachh Bharat Mission

Ratnagiri

• Constructed Community toilet at Khandala – beneficiaries around 5,000 people per month

HBPCL Sholtu

• Installed 9 Institutional and 4 Community Bio Toilets in the area. 500 school students & four Gram panchayats directly benefitted
• Installed 4 Bio Digesters of total capacity of 17,000 litres at crowded areas of DIZ. 25 households of village Chagaon & 500 people of Chansoo & Katgaon villages directly benefitted
• Conducted 13 Swachh Bharat Abhiyaan Drives in and around project area with participation of Local residents, Youth Clubs, Mahila Mandals etc. so as to spread awareness regarding cleanliness

RWPL Barmer

• Constructed 145 individual household toilets and 2 new school toilet blocks in 4 Gram Panchayats

Key Achievements: JAIGAD POWER TRANSCO LIMITED - CHIPLUN

Improving Living Condition

• Continuing the Company’s efforts to achieve Mission Safe Motherhood objectives in Coverage of Helwak PHC. As a part of this mission, a MoU with KIMS was extended up to FY2018-19 for providing services of OBG and pediatrician specialist visit to Helwak PHC & treating critical delivery cases of PHC-Helwak at KIMS-Karad. In FY2017-18, total 128 no. of UGC scans undertaken at KIMS-Karad. Further, 328 pregnant women were screened during medical camp at Helwak PHC & 230 children also checked by paediatrician specialist during camp. Total annual expenditure towards medical programme is ` 6 lakh
• Donated various medical equipment’s to PHC Sawarde, which will benefit population of around 39,000 in surrounding 20 villages as well as at Abaloli PHC’s in which around 35,000 people in surrounding 34 villages benefited by getting better medical facilities. Total expenditure incurred is ` 1.60 lakh for procurement of medical equipment
• Provided water filters for safe drinking water in 10 ZP Schools and Anganwadi’s in DIZ area. The total benefitted students were 351. A total amount of ` 14,990/- was spent towards purchase of water filters
• Provided 4 Water tanks with storage capacity of 5,000 litre each to 2 villages at Durgawadi & Shiwane (Dhebewadi) which benefitted a population of 550 and for two ZP schools at Khandotri & Shiwane which benefitted a student population of 117. This initiative, which cost ` 82,500/- helped to increase water storage in the dry season to some extent. In addition, Submersible Pump was fitted on borewell at village Durgawadi which benefitted a population of 752

Promoting Social Development

Chiplun JPTL

• Roof repairing work carried out at ZP-School, Village - Manjotri, which is situated in a very remote area in Chiplun taluka
• Constructed barbed wire fencing wall at two ZP schools at Dongalewadi and Natoshivarekarwadi, both located in Patan Taluka, which has improved students’ safety (57 students)
• Intervened in ZP schools to implement digital classrooms concept by providing 15 Desktops (benefitted students – 629) and 5 LCD projectors (benefitted students – 183) in the DIZ area of JPTL at a cost of ` 7.08 lakh

Addressing Environmental Issues

Chiplun-JP

• 11 Solar kits with each set having 4 Tube Lights and a Fan donated to 6 ZP-Schools, which benefitted schools and reduced electricity bills. Total students benefitted with this initiative was 210
• 12 Solar Street light sets installed in two villages (Adare & Durgawadi) which benefitted a population of around 1,350

Swachh Bharat Abhiyan

Chiplun-JPTL

• Two School toilets were constructed for better sanitation facilities in Vahal and Lendori ZP School benefitting 111 boys & 106 girls

Rural Development Projects

Internal Control Systems and Audit

Overview

A robust system of internal control, commensurate with the size and nature of its business, forms an integral part of the Company’s corporate governance policies

Internal Control

The Company has a proper and adequate system of internal control commensurate with the size and nature of its business. Internal control systems are an integral part of JSW Energy’s corporate governance structure. Some significant features of the internal control systems are:

• Adequate documentation of policies, guidelines, authority and approval procedures covering all the important functions of the Company
• Deployment of an ERP system which covers most of its operations, and is supported by a clearly defined online authorisation protocol
• Ensuring complete compliance with laws, regulations, standards and internal procedures and systems
• De-risking the Company’s assets and resources as well as protecting them from any loss
• Ensuring the integrity of the accounting systems as well as proper and authorised recording and reporting of all transactions
• Preparation and monitoring of annual budgets for all operating and service functions
• Ensuring reliability of all financial and operational information
• The Audit committee of the Board of Directors, comprising Independent Directors, regularly reviews audit plans, significant audit findings, adequacy of internal controls and compliance with Accounting Standards
• A comprehensive Information Security Policy and continuous updation of IT Systems