Mukund-P-Chaudhari-CMD-MOIL-Limited

Mukund P Chaudhari, Chairman-cum-Managing Director, MOIL Limited, a Schedule A, CPSE under the Ministry of Steel, Govt. of India, based in Nagpur. Chaudhari took over as CMD, MOIL on 1.9.2017. Prior to his appointment as CMD, he was holding the post of Director (Finance) in MOIL. Chaudhari is a Chartered Accountant and has vast experience of more than 25 years in private and public sector companies.

Q. How do you respond to the mandatory provision for CSR under the company’s act forcing companies to invest 2% of their profit for social developmental activities?

A. MOIL is the largest producer of manganese ore in India. Ten mines of the company are located in Nagpur and Bhandara districts of Maharashtra and Balaghat district of Madhya Pradesh. Most of the mines are in remote and backward areas. MOIL has always been on the forefront in discharging its social obligations since long; in fact, even before these provisions were inserted in DPE’s guidelines or Companies Act, 2013. CSR Vision of the company is to improve lives to create healthier and happier society through social commitments to help and building education, skill and sustainable society by supporting processes that lead to sustainable transformation and social integration. While implementing CSR activities, MOIL has explored all potential areas, where impact can be done for betterment of the society and has been quite successful in actualizing these potential – this is also reflected in relationship with stakeholders of the company.

Q. What is the area of CSR intervention at MOIL and which is the flagship CSR program of MOIL?

A. MOIL is carrying out CSR activities in areas like education, skill development, infrastructural development, drinking water, livestock development, women empowerment, livelihood programme, health, cleanliness and sanitation, etc. Amongst these, we would like to highlight following two projects, which have helped in changing lives of stakeholders residing nearby company’s operational areas.

(i) DAV-MOIL Public School, Sitasaongi
MOIL, in association with DAV is running a CBSE-pattern school at Sitasaongi, near Chikla mine. DAV is known for its quality education and is operating several CBSE schools across the country. The school has emerged as the best school for education in that area. School started its first batch in the year 2014-15 with a total strength of around 400, which has now grown to 985. The students, who were earlier required to travel about 30-50 Kms for getting quality education, have now the option to get the same in their area and, that too, at subsidized rates. The school runs in deficit financing mode and, thus, net value of expenditure minus school fees is borne by MOIL under its CSR program. It has not only helped in providing education but has also given employment to nearby people. Encouraged with the success of this school, MOIL is also planning to open similar school near its Munsar Mine in Nagpur district.

(ii) Community Development Programme
MOIL has associated with MITTRA (Maharashtra Institute of Technology Transfer for Rural Areas), which is associate organization of Bharatiya Agro Industries Foundation (BAIF), Pune which is known as an institute of repute for doing rural development programme. Under this programme, MOIL has entered into MoU with MITTRA and chalked out a program for 5 years. In terms of the MoU, 21 villages are selected by MOIL near its area of operations and the company has taken up various activities like agriculture training, water resources management, infrastructural development, women empowerment, community resources development, etc. The company has seen huge impact of this programme to the satisfaction of villagers. Under agriculture programme, the company has observed now the farmers are getting more crops in a year with a better yield, which has changed their lives.

Q. How has the CSR & Sustainability program evolved at MOIL?

A. Corporate Social Responsibility in MOIL is a continuous process. MOIL has been carrying out CSR activities in a resolute manner for last several years. The Company has framed a CSR Policy, which is approved by the Board of Directors. Several schemes have been taken up and being implemented under CSR, which broadly includes the following [in addition to the two CSR projects stated in (2) above].

  • In the education and skill development initiatives, MOIL is supporting various schools near its mines in Madhya Pradesh and Maharashtra.
  • Schools are imparting quality education to children, who are residents of the villages surrounding mines’ areas and mostly come from poor families.
  • Providing drinking water to villages in remote areas by installing bore wells.
  • Under its Light to Lives program, free cataract surgeries and pediatric eye surgeries are carried out for needy rural people.
  • In addition, the Company has taken up various infrastructural development works like construction of village roads, community halls, renovation of schools and support for plantations, etc., in the vicinity of the operational area of MOIL mines.

MOIL is committed to operating in accordance with the principles of sustainable development. This means ensuring that activities undertaken today meet the needs of the present without compromising the ability of future generations to meet their own needs. This requires all employees to take account of longer term economic, social and environmental implications of their decision making actions-not just for business but also for the society at large.

  • Making a valuable contribution towards the objectives of sustainable development, through its activities and services for betterment of future, effective protection of the environment.
  • Prudent use of natural resources.
  • Training and educating employees with the skills to achieve a healthy workplace, and to fulfill their environmental obligations, wellness and safety on and off the job.

Work towards the above objectives, while continuing to deliver a cost effective, good quality local service, contributes to achieve our vision and objectives.

In line with the SDG (sustainable development goals) and the looking in to the diverse needs of people in existing and future communities, promoting personal wellbeing, social cohesion and inclusion and creating equal opportunity is also taken up. MOIL as the largest employer in the manganese industry in India with a workforce of over 6000 employees, has embarked upon inclusive development of rural areas in a comprehensive and phased manner In order to improve the quality of life in these villages and also of the people of different states and region in general, MOIL has taken up various schemes to achieve this objective in a variety of areas especially in the fields of health, education, sanitation, skill development, self-employment, environmental awareness, etc.

Q. What is the level of your personal involvement in CSR planning and execution?

A. In MOIL, a core CSR team headed by nodal officer of senior level, is responsible for overall implementation and monitoring of CSR activities. There is a Board level of CSR committee, which recommends CSR activities to be taken up by the company and with the approval of the Board these activities are taken up. The core committee regularly in keeps us informed about ongoing CSR activities and the same are reviewed on a regular basis.

Q. What is the level of internalization of CSR at MOIL with special linkage to other functions like HR, Corporate communications, marketing?

A. MOIL involves its employees as and when required for implementation of various CSR activities. Thus, in case of skill development program, there is full involvement of personnel department in framing the requisite training programs taking into consideration the likely employment generation after completion of training by trainees. Engineers required for this purpose are drawn from existing or retired employees. Where there are infrastructural development projects, civil department is actively involved. Further, the company also communicates its program to the stakeholders.

MOIL involves its employees in participating in CSR projects of the company. As regards participation of community, MOIL gives special emphasis on this before and after the CSR activities are taken up. It involves all the stakeholders so that the activities which are being proposed fulfill the needs of the community at large and help in bringing improvement in their lives. In this direction, the company involves Gram Panchayat, localites, district authorities, etc.

Q. What are the innovations you have made in the domain of CSR at MOIL?

A. MOIL has associated with MITTRA (Maharashtra Institute of Technology Transfer for Rural Areas), which is associate organization of Bharatiya Agro Industries Foundation (BAIF), Pune which is known as an institute of repute for doing rural development programme. Under this programme, MOIL has entered into MoU with MITTRA and chalked out a program for 5 years. In terms of the MoU, 21 villages are selected by MOIL near its area of operations and the company has taken up various activities like agriculture training, water resources management, infrastructural development, women empowerment, community resources development, etc. The company has seen huge impact of this programme to the satisfaction of villagers. Under agriculture programme, the company has observed now that the farmers are getting more crops in a year with a better yield, which has changed their lives.

Q. As per your understanding, what is the level of impact CSR is making in the country today?

A. MOIL is allocating funds for CSR activities as per provisions of the Companies Act, 2013, i.e., minimum 2% of its profit, as defined in the Act/Rules. FY 2017-18 budget was Rs. 9.22 crores and MOIL has spent Rs. 9.62 crores on these activities. Allocation for FY 2018-19 is Rs. 9.25 crores.

Q. What is the role of an ideal CMD for actualizing CSR potential?

A. As detailed above, MOIL involves its employees in participating in CSR projects of the company. As regards participation of community, MOIL gives special emphasis on this before and after the CSR activities are taken up. It involves all the stakeholders so that the activities which are being proposed fulfill the needs of the community at large and help in bringing improvement in their lives. In this direction, the company involves Gram Panchayat, localites, district authorities, etc.

Q. Do you think the CSR potential is fully actualized in MOIL?

A. The philosophy behind CSR activities is to give back to the society. By undertaking CSR activities, a corporate is just not helping in improving lives of the society but also creating a good image amongst them. Hence, due importance of CSR activities and need of the society is to be taken care and here, the vital role of comes into picture.

About the author

CSR VISION
CSR VISION is India's (probably World's) first monthly magazine in print devoted to CSR and Sustainable Development for bringing together all stakeholders of SUSTAINABLE DEVELOPMENT at a global and local levels and act as a platform for promoting strategic CSR and sustainable development practices through dissemination of information and knowledge.