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ITC's Social and Farm Forestry Projects
 
ITC’s social initiatives have successfully achieved a unique synergy between the creation of shareholder value and rendering substantial service to society

maintenance, marketing and funds management. The creation of village-level natural resource management committees, comprising local farmers, has institutionalised this intervention.

At the heart of this comprehensive greening project is ITC’s state-of-the-art biotechnology-based research centre at Bhadrachalam. The centre enables the Company to make available high yielding, disease-resistant clonal saplings to traditional farmers and wasteland owners, thus providing them attractive land-use alternatives. So far, 66 million saplings have been planted over 19,500 hectares through farm and social forestry programmes, generating employment opportunities for nearly 200,000 people. The pace and scope of these plantations has been significantly enhanced. 31 million saplings were planted during 2003–04. This has also enabled the creation of substantial employment during pre-monsoon lean periods when agricultural employment is at its lowest. Consequently, the regular seasonal migration in quest of labour for livelihood has also been curtailed. In turn, there has also been an all-round improvement in health, nutrition and education.

The benefits of this strategic initiative of ITC are much more pervasive. This effort contributes to in-situ moisture conservation, groundwater recharge and significant reduction in topsoil losses due to wind and water erosion. With poor households having access to their own woody biomass under ITC’s social forestry programme, the pressure on public forests has also appreciably reduced. The leaf litter from multi-species plantations and the promotion of leguminous inter-crops enable constant enrichment of depleted soils. These forests enable sequestration of carbon, thereby strengthening the plant-led life support system.

ITC’s bold engagement across the entire value chain has created opportunities for a sustainable partnership. Only a company with a ‘commitment beyond the market’ could have dared to passionately pursue the objective of adding value to native wood fibre, when conventional wisdom mandated exiting this business in the absence of cost-effective fibre.

‘‘If a company like ITC had chosen the easier path of importing pulp to support a 300,000 tonne mill based on virgin pulp, it would have meant foregoing the opportunity to create 75,000 hectares of sustainable plantations, 27 million person-days of employment and nearly Rs 600 crores in foreign exchange annually.’’
Y. C. Deveshwar, AGM 2004

The Company has committed itself to building competitiveness as a critical responsibility towards creating the socio-economic and ecological multiplier. Alongside investment in augmenting capacity and inducting cutting edge process technology, ITC set up an Elemental Chlorine-Free (ECF) pulp mill at Bhadrachalam, going ahead of the standards mandated by the Ministry of Environment and Forestry. This pulp mill is the only one of its kind in the country and conforms to world-class environmental standards. ITC has also invested in co-generation to add to the efficiency of energy management and to minimise environmental impact.

The growing competitiveness of the Company’s paperboards business and its increasing market strength provide the impetus for the Company to scale up the afforestation endeavour to cover over 100,000 hectares by planting 600 million saplings over the next 10 years. Such a scale will make procurement of industrial timber exclusively from sustainable sources a reality within a decade. It will also create employment opportunities for nearly 1.2 million people. The forestry project will also transform ITC into a carbon-postive corporation.


SOCIAL PERFORMANCE

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