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MIDHANI
Communication of Progress for 2006-07
UN Global Compact – Communication of Progress
for the year 2006-07
Mishra Dhatu Nigam Limited, in short referred to as MIDHANI is a Company
owned by Government of India having its Registered Office and Manufacturing
operations in metallurgical sector at Kanchanbagh, Hyderabad 500 058, India.
MIDHANI is a signatory to the UN Global Compact and its continued commitment
is communicated through its Chairman & Managing Director in the following words:
“ MIDHANI as a corporate citizen was already supporting the 10 principles of
UNGC programme as ethics and values in the process of corporate governance.
All the ten principles of the UNGC initiative enjoy universal consensus and
application. MIDHANI will continue its support to this initiative of United Nations.
MIDHANI recognizes the need to generate resources adequate enough to meet the
legitimate needs of its stakeholders and to discharge its corporate social
responsibility. ”
MIDHANI is proud to state that some of its Corporate Objectives such as “ to
develop human resources through knowledge upgradation and HR practices” and
“to maintain and sustain environmentally friendly process/ production.” are in
support and in harmony with the UNGC initiatives.
As early as 1973, when the equipment were installed, the founders had
envisioned state-of-art equipment keeping safety of human lives. Most modern designs
were implemented. All the equipments are well maintained through an elaborate system
of maintenance, calibration and safety audit. Wherever necessary, the equipment have
fire alarm systems, dust extraction and fume extraction systems. An elaborate security
and access control system are in place.
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MIDHANI
Communication of Progress for 2006-07
Principle 1
Support and respect human rights
Principle 2
Ensuring the Organisation is not complicit in human right abuses
1.
As a model employer in the country owing allegiance to the Constitution of India,
MIDHANI supports and respects the protection of human rights.
2.
The Constitution of India not only supports the Universal Declaration of Human
Rights but also guarantees to all its citizens fundamental human rights. The Constitution
of India is known throughout the world to be a document based on democratic principles
of justice, liberty, equality and fraternity.
3.
MIDHANI being a model employer and a company owned by the Government of
India respects these principles and ensures support to all its stakeholders who are
citizens of India. Even citizens of other nationalities find all the support and protection
whenever dealing with the Company.
4.
Added to this, every citizen of India has a right to information under the Right to
Information Act and majority of its stake holders are first citizens and then stake holders
in the form of employees, suppliers, contractors, customers etc. and there is
transparency and accountability in all its dealings.
5.
Elaborate Purchase Manual, Accounts Manual, Delegation of Powers are in
place to regulate the relations with Suppliers and Contractors. Detailed transparent
procedures for vendor evaluation, method of payments, mode of supplies etc., exist in
them.
6.
Relations with Customers are regulated by Sale Order/ contracts.
7.
Wherever contract employees are employed on non-core activities, payment of
their wages meeting the statutory requirements, though done through the Contractor, it
is monitored by the supervisors of MIDHANI as Principal Employer. Employees State
Insurance for their medical facilities, Provident Fund etc. are ensured.
8.
Relations with employees are governed through the Personnel Manual. The
same is circulated to all the employees. Certain relevant features are reiterated through
circulars again and again.
9.
Information is shared to interested parties and various stake holders.
10.
Regular mock drills are carried out to expose employees to familiarize with the
fire fighting system and disaster management. Fire-fighting Manual and Disaster
Management Manual are in place. Training is provided to employees in these matters
including providing first aid.
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MIDHANI
Communication of Progress for 2006-07
11.
Several laws of the land such as Factories Act, Industrial Disputes Act, Minimum
Wages Act etc. are in place to facilitate harmonious employer-employee relations. All
these are respected as a model employer by MIDHANI.
12.
During the year 2006-07 six lecture programmes were organized on health
related issues by eminent medical faculty drawn from external resources. Over 300
employes were exposed in these programmes.
13.
No case of human right violations during the year were reported.
14.
No fatal accidents took place.
15.
MIDHANI spent the following amounts on various activities apart from incurring
expenditure to the tune of Rs.5 lakhs per annum for MIDHANI Welfare Committee where
employees' representatives are there. At the suggestion of Midhani Welfare Committee,
ground for playing Cricket with members of other Cricket clubs is provided free of cost
apart from providing food in our canteen for the Players on those days when matches
are played. About 10 matches in an year are played.
Rs. lakhs (2006-07)
a) Medical expenditure
169.27
b) School Expenditure
31.47
c) Interest subsidy on House loans
4.17
d) School fee reimbursement
7.18
e) Computer Advance
8.81
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MIDHANI
Communication of Progress for 2006-07
Principle 3
Upholding freedom of Association & right to collective bargaining
The employee structure in MIDHANI is of three tier consisting of nonexecutives at the base of the pyramid and Junior Executives in the middle and
Executives at the top.
There are about 1300 individuals in all these three categories and all of
them have the freedom of association.
985 employees in the non-executive category called workmen have the
right to collective bargaining under the laws of the land. Elaborate statutory
systems and Government machinery exist for deciding on the majority union for
recognition and collective bargaining on issues of common interest and sign
long-term settlements.
Apart from the above, there are many forums in MIDHANI committed to
workers’ participation such as Joint Council, Shop Council, Welfare
Committee, Safety Committee etc. where issues concerning the workmen are
discussed and decided upon.
Also meetings with the Junior Executives Association and the Officers’
Association are also held as frequently as necessary.
In such meetings, the business plans, concerns are proactively shared.
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MIDHANI
Communication of Progress for 2006-07
Principle 4
Support to eliminate all forms of forced and compulsory labour
MIDHANI stands committed to voluntary labour. During more than three
decades of existence of MIDHANI, no incidence of forced or compulsory labour reported.
Even employment of contract labour in non-core areas whenever taken are
voluntary in nature. As principal employer it is ensured by MIDHANI that they are paid
minimum wages, provident fund and covered for medical under employees state
insurance scheme, workmens’ compensation act etc. All statutory obligations are met.
Principle 5
Effective abolition of Child Labour:
MIDHANI had prescribed the minimum age limit of 18 years for employment.
Even contractors are forbidden to engage child labour. At the time of employment, age
verification is done.
Principle 6
Eliminate discrimination in respect of employment :

Article 15 of Constitution of India prohibits discrimination on grounds of
religion, race, caste, creed, sex or place of birth. As already stated
earlier, MIDHANI, being a Government of India enterprise, respects the
law of the land.

Further, MIDHANI is an equal opportunity employer and scrupulously
complies with the provisions of Equal Remuneration Act, 1926 with
respect of provisions of equal remuneration to men and women and into
matters of employment etc.

Government instructions on Reservation and welfare matters in respect of
Scheduled Caste, Scheduled Tribe, Other Backward Classes and
Physically Challenged Persons are followed scrupulously.

Equal opportunity is provided in matters of career advancement, training
and development to all employees irrespective of caste, colour, gender,
religion or region.

Well documented Recruitment and Promotion Rules exist in the
Personnel Manual and are circulated widely amongst all sections of
employees. Information is shared with others on request.

Well documented grievance redressal machinery exists.
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MIDHANI
Communication of Progress for 2006-07
Principle 7
A precautionary approach to Environmental challenges:
MIDHANI stands committed to prevention and control of environmental
pollution due to its activities in a sustained manner. MIDHANI’s endeavour had
been and will continue to be:

to ensure upkeep of equipment and machinery at all times in fit condition
so as not to affect environment.

promote environmental awareness amongst employees and interested
parties through proactive communication.

remain prepared and alert to respond effectively to all foreseeable
emergency situations.

meet all the norms stipulated by the State and Central Pollution Control
Boards.

constantly monitor parameters like ambient air quality, water quality and
ambient noise levels.
MIDHANI operations are environmental friendly and do not release any pollutants
in the atmosphere. A thick canopy of greenery with thousands of trees of over 50
different species constituting the green belt has been developed to promote and
maintain ecological balance in and around the Company and within factory
premises.
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MIDHANI
Communication of Progress for 2006-07
Principle 8
Take initiative to promote greater environmental responsibility

Company does not generate or store hazardous solid waste.

Oxygen Pond has been built for handling domestic sewage.

Pickling effluents are treated for dilution and neutralizing before sending
them to drain which go into a lake owned by the Company.

Spent acids are separately pumped into lagoons where lining is provided
for avoiding percolation into ground.

Fume extraction systems have been installed at Pickling Shop and
Chimney at Electric Arc Furnace, Hot Rolling Mill furnace and Forge Shop
Furnace.

MIDHANI plant is serviced by open drains.
Principle 9
Encourage development
technologies:
and
diffusion
of
environmentally
friendly
MIDHANI's endeavor has been to adapt safe, scientific and environmentally
friendly methods of melting, rolling, forging operations, complying with all applicable
environmental laws. Maintain the furnaces, rolling mills, machinery and equipment in
excellent conditions to ensure minimum impact of their operation on environment.
Back filters are attached to Arc Furnace to trap and filter dust particles.
Oxidation pond provided for disposal of sanitary and domestic waste.
Acid proof, RCC, brick lined neutralizing tanks provided to dilute and neutralize
the acid rinse water.
In fact during 2006-07 modernisation / upgradation of certain facilities were
undertaken with funding from customers.
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MIDHANI
Communication of Progress for 2006-07
Principle 10
Work against corruption in all its forms including extortion and bribery:

Internal Audit Manual in place allows regular and surprise monitoring of
sensitive areas, sensitive payments, delays in payments to vendors/
contractors etc.

An Integrity Pact forms part of the Conduct, Discipline and Appeal Rules
meant for Junior Executive cadre and Executive cadre employees. These
rules bar acceptance of bribes and describe it as misconduct.

Also these employees are required to file movable and immovable
property returns annually. These are scrutinized with reference to
disproportionate assets, if any.

Checks and balances are in-built in the organizational system that help in
preventing corruption.

Surprise and regular checks are carried out by Vigilance Department also
on all sensitive functions of the work.

Employees violating code of conduct and ethics are subjected to
investigation and appropriate disciplinary action taken, if required.
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MIDHANI
Communication of Progress for 2006-07
Actions taken in the direction of Corporate Social Responsibility:
In the corporate journey of MIDHANI, the year 2003-04 had been a
landmark year where the turn-around strategies adopted by the Company begun
yielding results. MIDHANI had wiped out all its past losses and stepped on to the
growth spiral from this year onwards. The maiden dividend had been paid to
Government of India for the financial year ended 31 st March, 2004. MIDHANI had
been paying dividend to its Owners since then. Elsewhere in the website of
MIDHANI one could seek details of its performance in the Director’s Report,
Annual Report. MIDHANI recognizes the need to generate resources adequate
enough to meet the legitimate needs of its stakeholders and to discharge its
corporate social responsibility.
1.
Brahm Prakash DAV School started by MIDHANI in 1985 was intended to
admit children belonging to our employees. But realizing the need to benefit
members of the society around, it had begun admitting children from nearby
villages from the year 2001-02.
2.
As part of its practice of human values, MIDHANI had been contracting
the job of caning office chairs regularly through individuals differently abled such
as deaf, dumb, blind and the same shall continue.
3.
Prostheses for knee, shoulder etc.
As part of passing on the benefits of technology to the society, the R&D
efforts of using titanium for different applications which began sometime during
1999-2000 have yielded some results in the form of prosthesis for knee,
shoulder, hip and elbow during 2001. These joints are custom made depending
upon the anatomy, nature of tumour, extent of surgery involved to save limbs etc.
They are supplied as CSR to Medical fraternity for use on patients. With such
action from MIDHANI, now amputation of limbs is avoided. They are not
supplied commercially. MIDHANI had been talking to the Doctors and presenting
the range of these products at various Medical seminars. From 2001 onwards
every year 12 – 15 pieces of different joints are supplied to Doctors in the
country. Medical fraternity had begun realizing the contribution of MIDHANI in
this area and placing demands on MIDHANI. Each prosthesis of stainless steel
quality, imported or indigenous would cost Rs.1.5 to 2 lakhs. MIDHANI supplies
much superior quality made from Titanium material at a cost price of Rs.40,000/-.
Advantages of Titanium implants are many.
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MIDHANI
4.
Communication of Progress for 2006-07
Deepening of Water body adjacent to MIDHANI Corporate Office
There was a water body in MIDHANI land. The water collected during
rainy season through the huge catchment area had been overflowing and
drained through storm water drains. Common and community good is at the
heart of MIDHANI. Therefore, though it cannot at the moment spend from its
resources, had prevailed upon the local government authorities to deepen and
deepen the water body considerably. MIDHANI had thought of this action for the
simple reason that once the lake is deepened and a huge water body gets
collected, stays beyond two summers, the underground water tables get
charged. All around this area many residential colonies exist and it did benefit
the community around. Now the lake is called Dr Tamhankar Lake.
5.
MIDHANI Bus depot
When AP State Road Transport Corporation found it difficult to service the
huge population in the vicinity of Kanchanbagh in the absence of locating a bus
depot, MIDHANI came forward to handover land to the tune of about 2 acres.
Now public transport buses are stationed there such that a workshop for their
regular maintenance is planned. Now the depot is called MIDHANI Depot. CSR
needs to be viewed as any action conferring benefit to a sizable community or
humanity. It need not always be in terms of "money spent".
6.
Land on lease to Apollo DRDO Hospital:
MIDHANI had leased land to the tune of 30 acres for running Apollo DRDO
Hospital, a corporate hospital of repute. Even other members of community can
get admitted into the hospital and be treated.
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