Management Discussion and Analysis

IV) Environment Management

In line with Tata Steel’s exponential growth at Jamshedpur and other parts of India, the Company has taken several steps to improve the environmental performance. Accordingly the Environmental Management System (ISO-14001), Occupational Health & Safety Management System (OHSAS-18001) were modified in the year 2006-07 and also audited by 3rd party for renewal of its EMS & OHSAS certificates.

Efforts are being made to bring down the pollution load from the existing plants so that concentration of pollutants are much below the applicable Indian Environmental Legislation and can reach to International Standards. Other key focus areas are improving energy efficiency and waste minimisation. Initiatives for energy efficiency undertaken resulted in reduction of specific energy consumption to 6.720 Gcal/tcs as compared to 6.959 Gcal/tcs in the previous year. The total water pollutant discharge reduced to 0.15 kg/tcs as compared to 0.18 kg/tcs in the previous year. The dust emission from stack reduced to 0.95 kg/tcs from 1.18 kg/tcs in the previous year.

The Company is committed to address climate change by continuously reducing Carbon-dioxide (CO₂) emissions. The
CO₂ emission was brought down to a level of 2.2 tonnes per tonne of crude steel from 2.28 tonnes in the previous year. The Company is vigorously pursuing four CDM (Clean Development Mechanism) Projects for availing carbon credit, which are at various stages of approval and implementation. The expected reduction of CO₂ emission from these projects is more than 1.1 million tonnes/annum.

The Company is committed to introduce state-of-the-art technology in its modernisation and expansion programme
at Jamshedpur and at other greenfield projects. The pollutant discharges from these plants will confirm to the International Standards.

The Company has recently published its 6th Corporate Sustainability Report for the year 2005-06. The Company takes pride in being the only Indian company included in the “Sustainability Biennial Benchmark Survey 06-07” of the top hundred Global Corporate Sustainability Reporters. Corporate Sustainability Management is integrated in the business process of the Company to meet the future challenges of sustainable growth.

V) Industrial Relations and Human Resource Management

Industrial relations remained normal at all locations. The men on roll in the Company as on 31st March, 2007 were 37,205 as compared to 38,182 as on 31st March, 2006. The development of human resources is a key strategic challenge in order to prepare people for future responsibilities in terms of professional skills as well as business skills. The Company is investing in the modernisation of the plant and training of manpower for upgrading their skills. Further, it is planned to redeploy the surplus manpower to various greenfield projects being undertaken.

VI) Awards

The Company received the following awards and recognitions during the year:-

• Prime Minister's Trophy for Best Integrated Steel Plant for the Fifth Time Ranked as No. 1 in 2006 Indian Make Survey
• IT User Category Award in Orissa
• West Bokaro Division Honoured By National Energy Conservation Award
• Mother Teresa Award For Corporate Citizen 2005
• Civil Society Award by UNAIDS Kolkata
• First Prize for Overall Performance in its Noamundi Iron Ore Mine
• Best Governed Company Award By Asian Centre For Corporate Governance

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Company’s objectives, projections, estimates, expectations may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.

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