Integrated Annual Report 2021-22
Suppliers and Partners
More Power through collaboration

Our suppliers and partners ecosystem is integral to our value-creation process. We engage with them through win-win propositions and develop them to be part of our competitive advantage.

Policies

Responsible Supply Chain Management Policy (RSCM)

We have made sustainable improvements in the process of identification, evaluation, selection and relationship building with our suppliers and service providers. We have a Responsible Supply Chain Management Policy (RSCM) which governs all our engagements with our Business Associates (BA). We share our commitment to the Tata Power RSCM policy at various strategic forums and business associate meets. We also evaluate business associates' commitment to our RSCM policy during selection/award of any material contracts.

Our Procurement Policy

Our Procurement Policy caters to multiple business requirements across fuel sourcing, materials and services procurement, material management and inventory management. No significant changes were observed in our supply chain during the year.

Environmental, Social and Governance Policy

We recognise that our partners can have notable impact on the environment and community, and therefore comprehend and endorse the need for adherence to environmental, social and governance policies consistent with our organisational values. To this effect, we have laid out a strong Environmental, Social and Governance Policy Statement with necessary impetus to achieve its desired growth in a responsible, inclusive and sustainable manner. From the evaluation standpoint, we look for partner initiatives and efforts to protect the environment, improve standard of living of employees, community and society as a whole; and ensure business is done in the most ethical and transparent manner. The partners are also required to substantiate their ESG journey with specific proof points. Preference is given to suppliers and service providers who score 50% or above in our ESG screening and show willingness to work towards our ESG commitments.

Key linkages


Tata Power has been a front runner in adopting innovative technologies and partnering with collaborators to drive the transformation in India's power sector and becoming the leading power utility. In this pursuit, we have collaborated with more than 60 partners-technology companies, institutions, and funding agencies across the globe- to take technology and customer service to the next level. The collaboration approach is multi-faceted targeting different use cases and varied need of stakeholders. The areas of collaboration, hence, focus on multiple opportunities around enabling the power sector transition in India and include elements of Smart Metering, Battery Energy Storage System, Distributed Energy Resource Management, Low Voltage Automation, Demand Response, Data Analytics, EV charging infrastructure, amongst others.

Some of the key collaborations are:

Key highlights of FY22

Screened 100% of new Business Associates

(suppliers and service providers included) with order value greater than ` 5 crore in non-fuel procurement, were screened on the ESG evaluation criteria and were found acceptable

99.30%

of non-fuel procurement at Tata Power was sourced locally

54.29%

of the overall procurement was from indigenous sources (orders in INR)

39.94%

of fuel sourced locally

Partnership highlights

Surya Shakti Cell

With an aim to strengthen the existing financing arrangement for solar power projects, we (via Tata Power Solar Systems Ltd.) have entered into an agreement with India’s largest lender State Bank of India (SBI) and launched a dedicated centralised processing cell - ‘Surya Shakti Cell’. The Surya Shakti Cell will process all the loan applications for solar projects with capacity up to 1 MW, sourced from across India, for installation by business entities as well as households.