Annexure-2

Consequence Management
(Contractors)
PURPOSE: This Procedure provides the minimum mandatory required guidelines to establish & ensure
effective consequence management (Cost recovery) for contractors / whoever deals business directly or
indirectly with JCAPCPL

SCOPE: This procedure covers all minor & major cost recovery as applicable to JCAPCPL
DEFINITION:

Minor Cost Recovery: - Cost recovery below one lakh and recovered against Safety rules & procedures
violation. The amount deducted under minor head will be non-refundable.

Major Cost recovery: - Cost recovery above one lakh and recovered against major safety non-
compliance which will have potential to cause or caused fatal or serious injury or property damage or
Lost Time Injury (LTI)
APPLICABILITY: All contractors/ Vendors / Transporter / Supplier associated with JCAPCPL.

PROCEDURE: Procedure for application of Cost Recovery is mentioned as below:

SL.No. Life Saving Rule Unsafe Acts / Behaviour
Person not following the designated pathway
Using short cut through hazardous area
Working near running equipment without Work Permit / Positive
isolation / authorization & supervision
Working at site after returning the work permit clearance
5.1 Without job or found idle inside works
Person not using the designated place provided for food and rest
Sleeping / taking rest near the gas drip pot & water seal inside the plant
Unwanted /Unauthorized Unnecessary roaming at place away from his designated working area
movement inside the Overstaying & doing some work for their personal benefit in the plant
plant.

Revised Rules, Regulations & procedures to deal with above (SL 5.1) non-compliance
Recommendations for
Life Saving Rule Action Execution
execution
Contractor’s employees will not be CO/CA write to Sr. Manager
1st Time Sr. Manager HRM
allowed inside the plant for 1 day HRM & Sr. Manager Safety
Blocking RFID of Contractor employee CO/CA write to Sr. Manager
2nd Time Sr. Manager HRM
for a period of 7 working days. HRM & Sr. Manager Safety
CO/CA write to Sr. Manager
3rd Time Permanent block of RFID Sr. Manager HRM
HRM & Sr. Manager Safety
 Use / browsing of mobile Violations are such as
phone / smart phone in
areas where the use is EOT, Mobile Crane operation
prohibited. Pulpit
Under suspended load
Walking / working near running equipment / under EOT crane
5.2 In hazardous material storage area like COGD, H2,N2
Project site
Driving vehicle
Walking on the Zebra Crossing / parking area
Listening to music on mobile phone
Any other site-specific activity / operation notified by the department
Taking photographs of plant
Revised Rules, Regulations & procedures to deal with above (SL 5.2) non-compliance
Use of mobile
phone /
Recommendations for
smartphone in Action Execution
execution
areas where the
use is prohibited
CO/CA write to Sr. Manager Sr. Manager
1st Time Block RFID for 7 working days
HRM & Sr. Manager Safety HRM
CO/CA write to Sr. Manager Sr. Manager
2nd Time Block RFID for 15 working days
HRM & Sr. Manager Safety HRM
CO/CA write to Sr. Manager Sr. Manager
3rd Time Permanent block of RFID
HRM & Sr. Manager Safety HRM

Driving or Working under Contractor’s / Vendor’s/ Transporter’s/ Supplier’s employee working or

5.3 the influence of alcohol moving in alcoholic condition inside the plants
inside the plant. Driving vehicle in alcoholic condition inside the premises
Revised Rules, Regulations & procedures to deal with above (SL 5.3) non-compliance
Driving or
Working under
Recommendations for
the influence of Action Execution
execution
alcohol inside the
plant
CO/CA write to Sr. Manager
1st Time Block RFID for 15 working days Sr. Manager HRM
HRM & Sr. Manager Safety
CO/CA write to Sr. Manager
2nd Time Block RFID for 30 working days Sr. Manager HRM
HRM & Sr. Manager Safety
CO/CA write to Sr. Manager
3rd Time Permanent block of RFID Sr. Manager HRM
HRM & Sr. Manager Safety

Revised Rules, Regulations & procedures to deal with non-compliance to Safety standards within all
Operation.
Attributes on Non-
Sl. Recommendations for
Compliance to Safety Action Execution
No. execution
Standards
Minor Safety non-compliance that do not meet JCAPCPL safety norms which are specified below or
similar reasons which are not specified
6. Safety procedure/rules
 Starting Fatality / Serious
injury potential job without
adequate safety measures like
Fire Prevention / Protection,
6.a
Rescue for Confined space,
Fall protection, Positive
Isolation,
Guarding/Barricading.
Starting of job without
approved Standard Operating
procedure (SOP), Daily Safe
6.b
Work Procedure (Construction
sites) Six Directional Hazard
identification.
Starting of job without work
permit.
6.c
*Consider to small vendor base at JCAPCPL, contractor administrator (CA) may propose a penalty
(20,000/-) in lieu of suspension to F&A.
** R1 to R8 mentioned in page no # 12
7.
Attributes on Non-
Sl.
Compliance to Safety
No.
Standards
Any Contractor’s / Vendor’s/
Transporter’s/ Supplier’s
employee found working with Rs.10,000/- per
7.a
different vendor without
authorization from parent
vendor
Any Contractor’s / Vendor’s/
Transporter’s/ Supplier’s
7.b employee found violating
general guidelines of standard
tools & tackles.
Any Contractor’s / Vendor’s/
Transporter’s/ Supplier’s
7.c
employee found violating Life
Saving rules.
Cost of Rs. 25,000/- (Rs.
Twenty-five thousand will be
recovered from every such
CO/CA write to Sr.
noncompliance Sr. Manager
Manager HRM & Sr.
HRM
Manager Safety
Cost of Rs.10,000 (Rs. Ten
Thousand) will be recovered
CO/CA write to Sr.
for every such non- Sr. Manager
Manager HRM & Sr.
compliance HRM
Manager Safety
*Contractor /Transporter/
Supplier should be
suspended for a minimum
period of three months if the
CO/CA write to Sr.
order value is less than 01 Sr. Manager
Manager HRM & Sr.
crore, a cost of safety will be HRM
Manager Safety
retained by JCAPCPL, as
mentioned below (**R1 to
R8), if order value is more
than 01 crore
Recommendations for
Action Execution
execution
Gate pass of the employee
will be seized & A cost of CO/CA write to Sr. Sr. Manager
Manager HRM, DDM HRM
noncompliance will be (F&A) & Sr. Manager &
recovered from the vendor Safety DDM (F&A)
who engaged for the work
Cost of Rs.5,000/- per
CO/CA write to Sr.
noncompliance will be
Manager HRM, DDM
recovered from the vendor. DDM (F&A)
(F&A) & Sr. Manager
Safety
Cost of Rs.10,000/- per CO/CA write to Sr.
noncompliance will be Manager HRM, DDM
DDM (F&A)
recovered from the vendor. (F&A) & Sr. Manager
Safety
 Any Contractor’s / Vendor’s/
Transporter’s/ Supplier’s
employee found violating
general guidelines of
7.d
temporary wirings or not
following gas cutting, Welding
Safety Standard or creating
stumbling hazard on pathway.
Cost of Rs.5,000/- per
noncompliance will be
recovered from the vendor.
CO/CA write to Sr.
Manager HRM, DDM
DDM (F&A)
(F&A) & Sr. Manager
Safety

Other Common Examples (Illustrative & not exhaustive) of First aid / Fatal/Serious Injury potential/
“Unsafe Acts” for implementation of Life Saving Rules
Areas/Activities/Standards
PPE
Welding & Gas Cutting
Rolling Stocks/ Rail Logistics
Gas Safety
Permit to work
Areas/Activities/Standards
Confined space
Unsafe Acts
Not wearing/utilising designated PPE that are required for the work/area
Person not using Kool Coat while working with high power electrical
equipment/ operating breaker or wherever it is made compulsory.
Welding is done without connecting the return Earthing line from the
same job to the welding machine
Welding is performed without Earth Leakage Circuit Breaker (ELCB)
Gas cylinder hose / valve / torch condition w.r.t gas cylinder standard
Not adhering to PPE
Getting on or off the moving equipment/ Locomotive / trailer / truck
Crossing the rail tracks under or in between the wagons.
Crossing under the barrier when closed.
Working on rail tracks without work permit.
Not putting red flag during the reversing or movement of trailer / truck /
wagon for safe movement.
Person working near gaseous area or gas line without use of appropriate
gas detectors.
Person sleeping or taking rest near the drip pot or under the gas
pipelines.
Entering restricted area / unauthorized area.
Person(s) doing the work, without work permit.
Unauthorised entry of persons in the barricaded area.
Filling the work permit in casual approach
Six direction hazards not relevant to job
Continue the job without renewal of work permit.
Job started without isolation.
Permit not getting closed after the job completion.
Incomplete filling up of Work permit
Work permit found from *requester / taken by, instead of issuer agency
even though job has completed. (* for different agency)
Unsafe Acts
Welding inside the confined space without Wes-Guard
Employees working in confined space without isolating the energy
sources. (The respective area in charge/Supervisor/Line Manager must
ensure it.)
Working inside confined space without clearance from competent
person nominated by JCAPCPL
Working in confined space without installing rescue apparatus

Working at height
Reckless Endangerment
Electrical Safety
Hoisting systems
Moving Machinery
Interlock bypassing
Positive Isolation
Division/Dept
Material Handling
8. Housekeeping / 5 S, engagement at workplace.
Attributes on Non-
Sl.
Compliance to Safety
No.
Standards
Work Site not in order during
the job.
8.a
Working at height without using double lanyard safety harness
Throwing off material from the top of the scaffold / height / rail / crane /
trailer
Safety belt not anchored while climbing/coming down of ladders
Observed being engaged in horseplay & work practices that place
employees or fellow workers at risk of injury
Allowing workers to congregate in unsafe or otherwise in restricted
areas
Not followed the procedure of “Test before Touch” before working on
any electrical conductor
Requisite PPE not used when working on electrical circuits
Persons observed in following activities during Material Handling
Working on or under a suspended load
Suspended loads left unattended
Oblique pulling of material
Not using tested tools & tackles
Using damaged tools & tackles
Person found touching moving machine/equipment without being
authorised by his superior.
Person found loose cloth at shop floor
Bypassing Safety interlock without authorisation from superior
Working without positive isolation for those jobs for which Energy
isolation is required.
Red/ Blue Lock not put by the individual, even though the positive
isolation with Yellow/Black locks has been done by the Equipment
owning agency.
Any other specific Fatality/Serious Injury Potential Unsafe Act / not
removing isolation lock after job completion declared by the Divisions or
Department
Violations are such as:
Use of prohibited equipment (non-standard or non-calibrated) for
material handling.
Use of equipment not complying statutory and legal requirements
Deviation from (SOP) standard operating practices in material handling
Transportation of material without ensuring load security
Storage of material without ensuring material stability
Receiving bulk materials without complying to safe working practices
Recommendations for
Action Execution
execution
Cost of Rs. 10,000 (Rs. Ten CO/CA to write to
Thousand) will be recovered ADM Procurement & DDM/DM
for every such non- DDM (F&A) with mark (F&A)
compliance.

Work site not found in order
after the job has been
8.b completed i.e. Civil, Electrical,
Mechanical maintenance and
other jobs.
Unauthorized entry by-
contractor employees in
8.c JCAPCPL declared prohibited
areas. (ECRs , Vital installation)
Contractor's employee
entering without job/found
8.d idling inside Works.
Not attending the first-aid
station (Within 30 minutes.)
8.e after the injury.
9. Incident / Injury case
Attributes on Non-
Sl.
Compliance to Safety
No.
Standards
Any Contractor’s / Vendor’s/
Transporter’s/ Supplier’s
employee found hiding the
incidence occurred during the
works.
9.a
*Consider to small vendor base at JCAPCPL, contractor administrator (CA) or Functional Head may
propose a penalty (50,000/-) or 10% of workorder which ever higher in lieu of suspension.
Attributes on Non-
Sl. Compliance to Safety
No. Standards
Cost of Rs. 10,000 (Rs. Ten
Thousand) will be recovered
for every such non-
compliance
Cost of Rs.10,000(Rs. Ten
Thousand) will be recovered
for every such occurrence.
Cost of Rs. 1,000 (Rs. One
Thousand) will be recovered
per employee for every such
occurrence
Cost of Rs. 10,000 (Rs. Ten
Thousand) will be recovered
per employee for every such
occurrence
Action
*Contractor’s / Vendor’s/
Transporter’s/ Supplier’s
employee should be
suspended for a minimum
period of 01 months if the
order value is less than 01 cr.
and every time the job will
be done, if any, at risk and
cost of the party / a cost of
safety will be retained by
JCAPCPL, as mentioned
below (R1 to R8), if order
value is more than 01 cr.
30% amount of the last
penalty will be retained by
JCAPCPL for Safety
Improvement work.
Recommendations for
Action
execution
a copy to Sr. Manager
Safety
CO/CA to write to
ADM Procurement &
DDM/DM
DDM (F&A) with mark
(F&A)
a copy to Sr. Manager
Safety
CO/CA to write to
ADM Procurement &
DDM/DM
DDM (F&A) with mark
(F&A)
a copy to Sr. Manager
Safety
CO/CA to write to
ADM Procurement &
DDM/DM
DDM (F&A) with mark
(F&A)
a copy to Sr. Manager
Safety
CO/CA to write to
ADM Procurement &
DDM/DM
DDM (F&A) with mark
(F&A)
a copy to Sr. Manager
Safety
Recommendations for
Execution
execution
CO/CA to write to CFO
ADM Procurement &
DDM (F&A) with mark
a copy to Sr. Manager
Safety.
Execution
 Minor Safety non-compliance that do not meet JCAPCPL safety norms which are specified below or
similar reasons which are not specified
10 Training & Personal Protective Equipment (PPEs)
All contractor persons must Cost of Rs. 10,000 (Rs. Ten CO/CA to write to
have Valid RFID / Safety Thousand) per person will be ADM Procurement & DDM (F&A)
training card on Gas Safety recovered from the DDM (F&A) with mark
Training, working at height contractor / vendor / a copy to Sr. Manager
Training, Mobile equipment / transporter for every such Safety.
10.a crane operator training as non-compliance.
applicable certificate issued by
Tata Steel/JCAPCPL/
Institution authorized by Tata
Steel and present it on
demand
Any Contractor’s / Vendor’s/ If evidence of providing CO/CA to write to
Transporter’s/ Supplier’s standard PPE is not ADM Procurement & DDM (F&A)
employee not using JCAPCPL produced, then a cost of Rs. DDM (F&A) with mark
standard personal Protective 1,000 / - per person / PPE a copy to Sr. Manager
Equipment (PPE) / damaged will be recovered (**New Safety.
10.b PPE-Safety Helmet, Safety PPE may be issued by
Shoe, Safety Goggles and JCAPCPL & twice the cost will
other specific to the site. be recovered from
contractor’s bill)

Any Contractor’s / Vendor’s/ Cost of Rs.500/- per non- CO/CA to write to

Transporter’s/ Supplier’s compliance will be recovered ADM Procurement & DDM (F&A)
10.c employee found not using PPE DDM (F&A) with mark
and available with him/her. a copy to Sr. Manager
Safety.

** Needs approval from CO/CA or concern HOD to Safety dept. through e mail.

Major safety non-compliance - Dangerous occurrence ( which has potential to become fatal / LTI or
cause serious injury or in the event of death of contractor labour arising out of a fatal accident or
11
permanent total disablement) which are specified below or any other reasons which are not specified.
This is applicable for order value less than or equal to Rs. 01 Cr.
Attributes on Non-
Sl. Recommendations for
Compliance to Safety Action Execution
No. execution
Standards
Major non-compliance of a) 10% of the order value of CO/CA to write to CFO
safety that has resulted in LTI / the vendor whose workmen ADM Procurement &
permanent disablement / a has met with the accident DDM (F&A) with mark
fatal accident at the work site/ b) (50% of the annuity value a copy to Sr. Manager
road, caused due to - as recovered from the Safety.
11.a
negligence of the vendor or its vendor as in 'a' above) /
employee or its agent or number of active vendors -
creating emergency situations shall be deducted from all
resulting in serious loss to active vendors" for monthly
payment to victim family.
 company property or
production.
1. Vehicle dashing which has
potential to result into fatal
injury.
2. Serious accident due to
malfunction of brake or any
other part of the vehicle.
3. A person without proper
license (& authorisation
driving of vehicle.
4. Rolling of vehicle which has
11.b potential to cause serious
damage/ accident due to
improper parking of the
vehicle.
5. Vehicle being driven under
influence of Alcohol/ any
other intoxicant,
6. Non reporting of any
incident (an event which has
the potential to or has caused,
harm to human being or
company's property)
*Consider to small vendor base at JCAPCPL, contractor administrator (CA) or Functional Head may
propose a penalty (50,000/-) or 10% of workorder which ever higher in lieu of suspension.
12. Rail – Road Safety
Attributes on Non-
Sl.
Compliance to Safety
No.
Standards
To make up the shortfall of
annuity paid by “Suraksha
Charitable Trust” a fixed
amount of Rs. 250/- per fatal
accident will be recovered
from all vendors engaged in
JCAPCPL.
c) Contractor /Transporter/
Supplier (Who will be found
guilty during the enquiry)
should be suspended for a
minimum period of twelve
months (Block vendor code).
a) *Contractor /Transporter/ CO/CA to write to Sr. Manager
Supplier should be ADM Procurement & (HRM)
suspended for a minimum DDM (F&A) with mark
period of 03 months every a copy to Sr. Manager
time and the job will be Safety.
done, if any, at risk and cost
of the party.
b) RFID card and Gate pass
of the concerned contractor
employee will be blocked &
banned for entry in
Company premises.
Recommendations for
Action Execution
execution
 Any spillage on the road
leading to Safety Hazard
12.a
Vehicle forcibly entering the
manned / unmanned level
crossing despite stop signal.
12.b
Vehicle found moving in
restricted road/ wrong
direction.
High speed, wrong overtaking,
Wrong Parking on road, driver
talking on mobile while
driving, person found sitting in
material body, Employee
found sitting inside cabin
without proper permission,
12.c Not using seat belt, not
putting proper barricades
around break-down vehicle,
Crane movement in non-
specified time, Vehicles,
jumping the red traffic light
and any other non-compliance
of safe driving norms.
Vehicle Dashing & damaging
any structure, lamp post
Column, height barrier,
12.d barricading, drop gate, signal
post road divider, roundabout,
signage post etc.
Repeated Road Safety
Violators of more than 3 times
(within 12 months).
12.e
Driver absconding after any
road incident involving
12.f contractor’s vehicle.
*After receiving information (e – mail) from TSL Road Safety wing, the same to be communicated to
Head, Sec. Works (TSL) through Head workplace safety (TSL) for necessary action.
Cost of 10,000 ( Rs. Ten
Thousand) or actual cost
incurred by JCAPCPL,
whichever is higher, will be
recovered for every such
noncompliance.
Cost of Rs.10,000 ( Rs. Ten
Thousand ) will be recovered
for every such non-
compliance
Cost of Rs. 5,000 ( Rs. Five
Thousand ) will be recovered
for every such non-
compliance
Cost of Rs. 5,000 ( Rs. Five
Thousand ) will be recovered
for every such non-
compliance).
Cost of Rs. 25,000 ( Rs.
Twenty-Five Thousand) or
actual cost incurred by
JCAPCPL for damage caused
if any, whichever is higher,
will be recovered for every
such non-compliance
Vehicle gate pass to be sized
and vehicle to be banned.
Also, RFID card of the
employee to be blocked for
entry in company premises
An additional penalty of Rs.
10,000/- (Rs. Ten Thousand)
to be imposed on vendor.
CO/CA to write to
ADM Procurement & DDM (F&A)
DDM (F&A) with mark
a copy to Sr. Manager
Safety.
CO/CA to write to
ADM Procurement & DDM (F&A)
DDM (F&A) with mark
a copy to Sr. Manager
Safety.
CO/CA to write to
ADM Procurement & DDM (F&A)
DDM (F&A) with mark
a copy to Sr. Manager
Safety.
CO/CA to write to
ADM Procurement & DDM (F&A)
DDM (F&A) with mark
a copy to Sr. Manager
Safety.
*Head, Sec.
Works (TSL)
Sr. Manager through
Safety Dept. Head
workplace
safety (TSL)
CO/CA to write to
ADM Procurement & DDM (F&A)
DDM (F&A) with mark
a copy to Sr. Manager
Safety.
 Major safety non-compliance - Dangerous occurrence ( which has potential to become fatal or cause
serious injury or in the event of death of contractor labour arising out of a fatal accident or permanent
13
total disablement) which are specified below or any other reasons which are not specified. This is
applicable for order value more than Rs. 01 Cr.
Attributes 11.b (page 9) of 1.A cost of safety will be CA write to ADM CFO
non-compliances to safety retained by JCAPCPL, for 1st Procurement officer,
standards. Non-Compliance as AGM (HRM) & DDM
mentioned below (R1 to R4), (F&A) with mark a
and for 2nd Non-Compliance copy to Sr. Manager
(within 12 Months) as Safety.
mentioned below (R5 to R8).
If there is no Major Safety
non-compliance /Dangerous
occurrence within one year
13.a
from this incidence, then
70% of the money will be
returned to the vendor and
30% amount of the penalty
will be retained by JCAPCPL.
2.RFID card and Gate pass of
the concerned contractor
employee will be blocked &
banned for entry in
Company premises.
Attributes 11.a (page 9) of a) "50% of the annuity value CA write to ADM CFO
non-compliances to safety will be deducted from the Procurement officer,
standards. vendor whose workmen has AGM (HRM) & DDM
met with the accident" for (F&A) with mark a
monthly payment to victim copy to Sr. Manager
family under "SURAKSHA" Safety.
scheme of JCAPCPL / Tata
Steel.
b) A cost of safety will be
retained by JCAPCPL, for 1st
Non-Compliance as
mentioned below (R1 to R4),
and for 2nd Non-Compliance
13.b (within 12 Months) as
mentioned below (R5 to R8).
If there is no Major Safety
non-compliance /Dangerous
occurrence within one year
from this incidence then 70%
of the money will be
returned to the vendor and
30% amount of the penalty
will be retained by JCAPCPL
from the Contractor
/Transporter/ Supplier (Who
will be found guilty during
the enquiry) .
S. Cost of Safety Retaining Amount (2nd
Order value Cost of safety Retaining Amount
No. Violation within 12 Month)

Contractor /Transporter/ Supplier to be suspended for a minimum period of three

1 < 1 Cr
months and every time the job will be done, if any, at risk and cost of the party.

2 Rs. 1 Cr - 2 Cr R1. Maximum of Rs. 3 lakhs. R5. Maximum of Rs. 6 lakhs

3 Rs. 2 Cr - 5 Cr R2. Maximum of Rs. 5 lakhs R6. Maximum of Rs. 10 lakhs.
4 Rs. 5 Cr - 10 Cr R3. Maximum of Rs. 9 lakhs. R7. Maximum of Rs. 18 lakhs.
5 Above Rs. 10 Cr R4. Maximum of Rs. 10 lakhs. R8. Maximum of Rs. 20 lakhs

Note:
Only MD has an authority to waive the cost recovery or suspension- fully or partially.

CO : Contractor Owner
CA : Contractor administrator
LTI : Lost time injury
FAI : First aid injury
RFID : Radio Frequency Identification
H2 : Hydrogen area
N2 : Nitrogen area
COGD : Coke oven gas de sulphidization.
HOD : Head of the department
F&A : Finance & account
HRM : Human resource management
ADM : Assistance Divisional Manager
DDM : Deputy Divisional Manager