Striding Ahead March 2012

A Cairn India CSR MagazineMarch 2012 Issue

Striding Ahead

Conceptualised, designed and developed by the Communication and Design department of Cairn India Ltd.

Disclaimer: The information provided in this magazine has been gathered from actual incidents and experiences. The content is sole property of Cairn India Ltd. and must not be misused. To post your queries/ questions, write to [email protected]

© Cairn India Ltd.2012

About Ravva

Bringing Social Responsibilty to Ravva

Economic Development

Health

Education

Infrastructure

Strides We Took

Transforming Lives

Contents

RavvaCairn India has been at the forefront of Corporate Social Responsibility initiatives in the villages in and around Ravva since 2005.

Over the years, the number of initiatives have increased, intensified and benefited the marginalised community in a positive manner.The CSR initiatives at Ravva are a combined effort of all our partners - ONGC, Videocon, Ravva Oil and Cairn, hence its called

Ravva Joint Venture (Ravva JV).

This issue of Striding Ahead provides insight into the extensive CSR initiatives taken

up at Ravva for the benefit of the rural community, under the 3R's CSR vision of Respect, Relationship and Responsibility. Cairn India has always reached out to the community, since the time it initiated business operations at Ravva. The 3R's vision was best demonstrated at the village of Surasaniyanam in Ravva.

The CSR team worked hard on the four pillars of infrastructure, economic development, health and education to bring out a drastic change in the community. Roads for the entire community, offices for the panchayat and District Adminstration, schools for the children have been a part in

establishing the infrastructure of the village. A number of initiatives to enhance education and women empowerment were undertaken along with various opportunities of market linkage which were provided to ensure economic stability. One such key initiative was the Micro-Vendor programme which received an award from TERI. As part of its health-related initiatives, Ravva JV operates a village health clinic where over 100 community members today seek consultation and medication.

Read more about these programmes being executed at Ravva in this issue.

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Ravva, one of Cairn’s active assets, is located in a village called Surasaniyanam. Also known as S’yanam ,it belongs to the East Godavari District in Andhra Pradesh. Developed in partnership with ONGC, Videocon and Ravva Oil, Cairn became the operating partner of this plant in the year 1996. Spread over 225 acres, the onshore processing facility at S’yanam is owned by the Ravva JV partners. The plant processes natural gas and crude oil from the Ravva field.

The Ravva field was recognised as one of the most efficient field operators when benchmarked against 25 of its peers in July 2005. Ravva JV has maintained its low-cost operating model by focusing on life-cycle planning, continuous monitoring and control of operational costs, and the innovative application of operating technologies.A beautiful drive from Rajahmudry, via Amlapuram, brings you to S’yanam where the Ravva off-shore plant of Cairn is located. Rajahmundry is a city in Andhra Pradesh, India, with a rich historical background.The origin of this city can be traced back to the times of the Chalukya king Rajaraja Narendra. It is believed that it was the

king’s name from which the city derived its ancient name – ‘Rajamhendravaram’. The new archaeological evidence suggests that the city may have existed even before the Chalukyas.

In addition, the remains of 11th century palaces and fort walls still exist. Being one of the biggest cities in Southern India until the 19th century, Rajahmundry was also the hotbed for various freedom struggles.

It was during the British rule in India that Rajamhendravaram was renamed Rajahmundry.The British rulers established headquarters of the Godavari District at Rajahmundry at the time when the entire district was split into East and West. Rajahmundry is also the place of origin of the great language – Telugu.

Situated amidst lush green landscapes, coconut trees and the sea; Ravva presents a picturesque sight. The locals at S’yanam are depended on aqua-culture and agriculture for their survival. However, the community stands divided in terms of caste and suffered from poor living conditions.

“The Ravva onshore terminal operates to internationally recognised environmental & Safety standards – ISO 14001 & OHSAS 18001 – and has the capacity to handle 70,000 barrels of oil per day (bopd). “

About RavvaSince the time Cairn began its operations in the area, various kinds of benefits were extended for the benefit of the local community. Considering this marginalised sector needed support with respect to infrastructure, health and sanitation, education and employment, Cairn in partnership with Ravva JV reached out to them in every manner.

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Keeping in view the CSR vision of 3Rs – Respect, Relationship and Responsibility, Cairn values community members across its operational areas as key assets and an integral part of its business development. Building and sustaining relationships with stakeholders, understanding and responding to the socio-economic requirement and operating responsibility towards the environmental challenges in the areas of Cairn’s operations are some of the key responsibilities.

At Ravva too, Cairn India envisaged a holistic and sustainable approach towards the upliftment and transformation of the marginalised community at S’yanam. Prime focus was laid on economic growth and development of human capital.

Bringing ‘Social Responsibility’ to Ravva

People are Cairn India’s key asset and critical to the business. The entrepreneurial spirit is underpinned by a depth of knowledge and a strong set of cultural core values including integrity, social and environmental responsibility, team-work and the nurturing of individuals.

The success of the company would not have been possible without the consistent support of all stakeholders, governments, regulators and JV partners, to the local communities and the administration of the regions where Cairn India operates.

Cairn India is operating in many areas that face economic, social and environmental challenges. We have a responsibility to understand these challenges, identify the potential impact of our activities and, through engaging with stakeholders, look for opportunitieswhere mutual benefit is secured.

RESPECT RELATIONSHIPS RESPONSIBILTY

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Developing Micro Vendors

At the end of 2005, the Ravva asset in Andhra Pradesh launched its first CSR initiative to develop the local micro-vendor base around its production site. The aim of this initiative was to provide more opportunity for vendors on the doorstep of Cairn India’s production activity. It was ensured that local contractors benefited from Ravva JV operations in the area. At the end of 2006, close to 30 micro-vendors were registered to provide services such as minor civil, electrical and mechanical work, gardening, waste management, sand blasting and painting.

One of the most critical jobs undertaken by the micro-vendors was the construction of the Irrigation Canal. Ravva JV supported the construction work financially and technically. Some of the other tasks managed

successfully by the micro-vendors included Rig Movement to Chirayanam. It was realised that many micro-vendors lacked quality, safety and environmental knowledge to meet Cairn India’s requirements. This resulted in a training and supervision programme to enhance skills and upgrade knowledge amongst their vendors. The programmes included detailed instruction on the required work, specific training identified by quality engineers, inspection and certification of the work and much more. The training helped create a pool of vendors and contractors and contracts worth close to US$ 1 million were awarded to about 80 micro-vendors at Ravva.

Micro vendors have since then been motivated to take up challenging jobs for Ravva JV were awarded the transport & logistics contracts for Ravva. The entire initiative positively impacted the local

Economic Development

community. While some micro-vendors continued to work at Cairn, many others benefited from the skills learnt at Cairn and moved ahead to work with companies in Andhra Pradesh.

Ravva JV made an impact by stabilising the economic condition of the rural people at S’yanam and plans to empower women of the village were put in place.

Women Empowerment Cairn drove attention towards income generation programmes for women. The aim was to bring about socio-economic independence amongst women of S’yanam and surrounding areas. In order to meet the objective, women were enrolled into training workshops for lace and rope making. A well equipped tailoring centre was established in November 2004 and a trainer was engaged to conduct training programmes.

Appropriate infrastructure and more than 10 sewing machines were procured for the centre. Women from the village benefitted economically and socially through this skill enhancement programme. A Self Help Group (SHG) of women was formed in October 2005 and ever since, Ravva JV has been supporting the association by encouraging women to stitch coveralls, wind

socks and uniform for school children.

In order to open market opportunities for these women, Cairn collaborated with ‘Godavari Delta Lace Artisan Cottage Industry, Narsapur’ and organised a lace training programme for women in S’yanam. This programme was highly appreciated as new techniques and methods were shared with the women. Close to 100 women were trained for 6 months after which they began operating from home as appropriate market linkage was also provided.

Further initiatives towards women empowerment included establishment of a coir unit by Cairn in 2006. ‘Coconut by-Product Society, Uppalaguptam’ was engaged and partnered for this initiative. They were propagated to provide necessary assistance to the rural women of S’yanam. The Society supplied raw materials and took finished products, thereby adding to the economic stability of the women SHGs. The coir unit has been beneficial to the households which had hitherto depended only on agriculture.

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It is people who make a difference to the business on a daily basis but it is external relationships and partnerships that push it further.We aim to make a difference for local communities — wherever we operate.

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Skill Training Programme

It was realised that economic independence would not be sustainable until the youth were trained intensively and counselled appropriately. Focus was drawn towards the youth of S’yanam and building their capabilities. Special programmes were designed keeping in mind the ultimate objective of ‘skill based employment’ for the youth.

In the first phase, trained counsellors were hired to counsel the rural unemployed youth. These counsellors belonged to highly acclaimed institutions like IL&FSES (IL&FS Educational Services) and GMRVF (GMR Varalakshmi Foundation). Representatives from these institutions briefed the participants about vocational opportunities and courses conducted in Hyderabad, Vijayawada and Vishakapatnam.

The aim was to bring them face-to-face with reality and ways to overcome poverty and unemployment. The counsellors conducted surveys to find the interests, capabilities and skill-sets of each youth. Post this, one-on-one sessions took place with the youth where each one was directed towards achieving his goal. Ravva JV offered to provide sponsorships to candidates and the first batch youth from S’yanam village

were trained at GMRVF, Hyderabad for three months. The students attained training in automobile repair and mobile repair. Ravva also invested in training rural youth in the subject of Retail Management with support from IL&FSES. A key feature of the programme is the linkage with industry with companies such as Hero Moto Corp, Spar Retail, Ashok Leyland and Big C. Counselling sessions continue to happen till date, benefiting close to 200 local youth every session.

About IL&FS ES

IL&FS Education Services is the social infrastructure initiative of IL&FS India. The Skills Initiatives Group within IL&FS Education facilitates and manages large scale skills training and placement programmes with an aim to eradicate poverty in rural areas. The ultimate objective remains to connect industries in need of skilled workers with trained personnel and to address employability issues.

Supported by Ministry of Rural Development, IL&FS Education has successfully trained and placed more than one lakh youth across industries such as apparel, leather, service sector, engineering and construction.

• Uses sustainable skill development and vocational training initiatives.

• Bridges skill gaps across service sectors.• Creates gainful employment opportunities for rural below

poverty line youth.• Supplements the nation’s economic growth rate.

About GMR Varalakshmi Foundation

The GMR Varalakshmi Foundation was developed with an objective to help develop social infrastructure and improve the quality of life for the rural and marginalised communities. The areas of focus at the GMR Varalakshmi foundation are that related to education, health, empowerment & livelihood, community development and much more.

At the Rajiv Gandhi International Airport, Hyderabad, Cairn has tied up with one of their arms:- GMR Varalakshmi centre for empowerment & livelihood. The centre has been established to provide quality vocational training and placement facilities to the youth. It is a residential centre equipped with classrooms, worksheds, mess, library,

recreation rooms, seminar halls, etc, all under one roof.

Some of the courses offered here include: electrical house wiring, refrigerator and air conditioning repair, advanced welding training, basic computers, mobile repair, etc. Students who enrol at the GMR Varalakshmi centre for empowerment & livelihood are not only provided education pertaining to their course but also taken through soft skills training sessions, yoga, shramdan (voluntary service to the society) and cultural & sports activities.

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“It is health that is the real wealth and not pieces of gold and silver”, said Mahatma Gandhi. Catering to the basic health and medical requirements, Ravva JV set up a local health clinic at the S’yanam village. The clinic operates for 2 hours every day where a Cairn appointed doctor along with a nurse extend their services to the needy. Medication and consultation are provided free of cost to the villagers and today more than 150 villagers visit the health clinic daily. The initiative has helped in improving the health standards and awareness amongst the community members. Various programmes under taken with the help of the health clinic include: a) Eye camp for the communityCairn has been sponsoring spectacles and cataract surgery for those in need of these (b) School Health ProgrammeCairn has been reaching out to the school students and instilling awareness about diseases, ways to prevent diseases and hygiene practices in day-to-day living.(c) Dental & Oral HygieneCairn has been educating the community members on benefits of dental and oral hygiene.

Health(d) First Aid TrainingTo ensure that any needy local person receives first aid at the right time, Cairn conducted a training session for the community members and taught them the ways to provide first aid to anysuffering person.

Apart from curative healthcare emphasis is also laid on preventive healthcare in order to brining sustainable health improvement for the S’yanam community. Regular health awareness programmes are organised through various mediums of folk media like Kala Jatha (street theater), folk songs, puppet shows etc. In these awareness programmes various issues like importance of hygiene, immunization, balanced diet, etc are discussed.As a CSR initiative, Cairn has also been extending support towards the handicapped persons in the village by providing pension (monetary support) for close to 70 handicapped persons in the community. In addition to this, the Red Cross Society has also been getting immense support from Cairn with respect to financial bearing.

A 12 bed hospital has been constructed by Ravva JV in Surasaniyanam. Very soon, the hospital will be inaugurated and bring about a transformational change in the lives of the villagers who will benefit from this immensely.

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Catering to the health requirements of the local community at the village health clininc run by Cairn India

Health


EducationWhile the health of the community was improving, Cairn began to focus on enhancing education for the youth of the village. The agenda was to consistently contribute towards primary education for students at S’yanam. Cairn realised that to achieve this, the school infrastructure needed to be improved; uniforms, school books and bags were to be provided and support towards government schemes like mid-day meals was needed.

All these objectives were met by Cairn and an era of ‘learning and spreading knowledge’ began. A step ahead was taken and Ravva JV built classrooms in schools and sponsored teachers. The teachers were interviewed from Amlapuram and Rajahmundry and hired on contract in order to positively impact the school going students. This was an effort towards improving the literacy rate of the region thereby increasing the employability opportunity of the youth and economic stability for the community as a whole. To make education practical and up to date, Ravva JV introduced a computer center and a science laboratory in the Ravva JV sponsored school at S’yanam. It was

ensured that necessary equipment and furniture was provided in order to create a better learning environment for the students.

Over the years Ravva JV formed a Scholarship Programme for the children at S’yanam, encouraging them towards academic success. On a merit and need basis, scholarships have been provided to students. Special attention was given to ‘education of girl child’ especially those who dropped out after matriculation. In addition to this, bus passes have been provided to students travelling outside S’yanam to attend colleges or other educational institutes in Amalapuram and nearby areas.

Keeping in mind overall development of the students, a children’s park was built in the village. Apart from this, attention was drawn towards ‘adult education’ too.

The programme proved to be a success and helped some of the contract workmen at terminals to enroll for higher education and thereby aim at better employment options. Till date, Cairn continues to take up measures from time to time in order to

ensure that children of the village attain standard education and support for overall development. As part of micro-interventions, Cairn collaborates with the school authorities during special occasions like Republic Day, Independence Day, Teachers Day, Children’s Day, etc. Cairn has been extending support by conducting and sponsoring sports

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Solar LightingRavva JV conducted an assessment survey to understand ‘street lighting’ requirement at S’yanam. Keeping in mind the sensitivity of the area towards natural calamities, it was decided to install solar lights in the village. Today villagers benefit from the solar street lamps installed and provided by Ravva JV.

Green BeltKeeping in mind the need to maintain ecological balance around the area of operations, Cairn decided to build a Green Belt at S’yanam in 1996. As per the Cairn CSR objective of being responsible, this step was taken to help land reuse and regeneration and mitigation of adverse impacts on environment. Also, the Green Belt helps to mitigate environmental damage and destruction.

The belt is spread over an area of 229 acres around the terminal, village roads and the beach. There are about 25 species of trees in the green belt, dominated largely by casuarinas and mangroves. Currently, a micro-vendor has been contracted for its maintenance and the focus is on consolidating the existing green belt area.

activities and prizes. These occasions have also been used as platforms to conduct special sessions with the students such as: eye screening camp, dental camp, counselling sessions etc.

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Educating the local rural youth

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InfrastructureConstruction

Under the Indira Awaas Yojana, Ravva JV supported the construction of over 200 houses for the marginalised community members at Ravva. In addition to this, classroom construction and establishment of computer learning centres were also initiated keeping in mind the emphasis Cairn CSR gives towards education.

The local community was hugely impacted by these initiatives. Ravva JV thereby was able to win their support helping the business to continue smoothly. In addition, support was also extended towards constructing internal roads at S’yanam, building a boundary wall and establishing panchayat offices in the village.

Villages like Challapalli, Kamarajupeta, Kithenchuruvu, Singayya Cheruvu, Uppalaguptam, Gopavaram, Badugupeta, Pedagavalli Colony, and B.V. Ramanayya Nagar amongst many other, benefited immensely from the action taken up by Cairn on constructing roads. These initiatives

touched the lives of over 35,000 villagers. Ravva JV continued to provide major and minor infrastructure support towards the community. A cyclone shelter, bus stand and a children’s park was constructed for better living conditions of the community. In order to address to the medical requirements of the villagers, a health clinic was also constructed.

The support functions did not stop here. Ravva JV endeavoured to understand community requirements and accordingly, various efforts to improve the sanitation of the area were put to action.

Sanitation

Sanitation refers to the provision of facilities and services for safe disposal of human excrement and inadequate sanitation is a major cause of disease world-wide. The first step that Cairn took in partnership with Ravva JV was towards constructing over 600 housing toilets with a shed and door. This helped villagers learn and adapt to clean and hygienic living. Around 285,000

USD was spent from 2007-2009 in enabling this comfort for the villagers. The housing toilets came across as a better option for the rural women who were otherwise depended on sun-down time and had to walk long distances. Another significant step taken towards better living standards for the marginalised community members was ‘providing clean and safe drinking water’. Cairn built storage tanks for storing drinking water for consumption by the villagers. It was ensured that drinking water pipelines were laid in all streets so that every household could get access to clean and safe drinking water.

Though the health status of the entire community was impacted positively due to this initiative, Cairn remained committed to bring primary healthcare services at the doorstep of the community members and hence various developments took place in the segment.

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Developing infrastructure for the benefit of local community at S’yanam

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Youth from S’yanam were enrolled in skill based trainings programmes and today they earn close to INR 7500 per month; which helps them support their families and bring about economic stability in the community.

Cairn India for the first time participated in the ‘Oil Industry Safety Awards’ for the year 2010-2011 and Ravva Asset emerged as the Winner of under ‘offshore production platforms’ category.

Strides we took

The sanitation status at S’yanam was poor, prompting Cairn India to take up the initiative of constructing toilets. Today over 600 housing toilets have been built, ensuring hygienic living conditions for the community members.

In 2008, the prestigious TERI (The Energy Research Institute) CSR Award was presented to Cairn India for its highly impactful ‘Micro-Vendor Programme’ successfully initiated at Ravva.

Boosting economic stability for the community at S’yanam, Cairn created a pool of micro vendors who were awarded contracts worth US$ 1 million.

Sanitation & Construction For Better Infrastructure

Development Of Micro-Vendors From The Village

Providing Better Education For The Students By Sponsoring Additional Teachers And Opening A Computer Centre.

Women Empowerment Through Sewing Training, Coir, Rope And Lace Making With Market Linkage For The Same

Contract Worth 1 Million US $ For The Local Micro-Vendors

Skill Training Programmes For The Local Youth, Enabling Them To Earn. (Today Youth From S’yanam Are Placed In Companies Like Spar Retail, Hero Honda And Big C)

Attending To Over 150 Patients Everyday At The Village Health Clinic Operated By Cairn India


Transforming LivesEmployment For The Local Youth Through Skill Development Training

Eswara Rao, a 20 year old youth from S’yanam is the only brother to his three younger sisters and the only hope of survival in old age for his parents. A family of six members has to fight for a living at S’yanam if they stay wholly dependent on agriculture. Having realised this through one of the counseling sessions conducted by Cairn, Rao chose to know more about the skill training programmes. He attended a full-fledged counseling workshop held by Jana Kalyan Welfare Society at S’yanam and his eyes opened to the opportunities available in the market to make a sustainable living.He joined a batch of trainees sent to IL&FS for retail training on 3rd January 2012.

Leaving home, Rao carried with himself faith, hope, dreams and aspirations. Leaving behind a family of five was not easy at first

but soon Rao was a regular attendee at the daily sessions. The one month long course included technical training and soft skills required to pursue a successful career in the BPO or retail sector. Apart from regular practical training, IL&FS also imparted English speaking, yoga and personal development training which Eswara says helped him improve his attitude and brought about positive thinking.Little did Rao know that reaching Vijayawada from S’yanam was not the end of his journey, rather it was just the beginning.

Today, comparing himself to his friends, Rao confidently states that he is glad he underwent this training as now he is employed by one of the largest retail chains in the country, SPAR, and working in a metropolitan city where he gets to live a life which he had only seen on television. Rao’s family is proud of him and they look up to him for financial support. Eswara dream of a gainful employment which would allow his family to live unfettered of financial woes has now been achieved.

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“Although he misses home, he assures us that he will keep visiting us often. After all, my brother can afford travelling by bus” says Rao’s proud little sister.

Building Confidence & Future Plans

Like any other teenager, Badugu Sridhar from S’yanam had dreams about a life of comforts. Sridhar dreamt of running his own successful business and supporting his family. But there were few opportunities in the village and his parents were not sufficiently aware to be able to guide him in the right direction.

In 2011, Sridhar came to know about Cairn India’s initiative of sending students from S’yanam for education and skill based trainings which could help him open up his own business someday. Sridhar had just turned 19 when he attended one of the counseling sessions conducted by Cairn and here he chose to learn more about ‘Mobile Repairing’. From here there was no looking back and soon Sridhar was sponsored by Cairn to gain knowledge and over all development at the GMR Centre, Hyderabad. Leaving behind parents and a younger brother was not easy but this young boy was determined and kept faith in Cairn.

He knew that his family would need him to be financially sound in order to help them all survive comfortably and therefore, Sridhar began to study hard at the GMR Centre. He was trained on mobile repairing techniques and was also taken through soft skills training which is essential in today’s professional scenario.

After the two month course, Sridhar was a changed man. The yoga sessions helped him keep a positive attitude towards his goal and the training sessions had helped him gain all the necessary practical and theoretical know-how to either join a firm or start his own business.

Determined as he was, Sridhar is on his way to launching his own shop to catering to mobile repairing services. As compared to his friends he feels way more independent and proud of himself. Sridhar and his family are thankful to Cairn for this transformation in their lives.

Enhancing Economic Stability Pettamdar, a resident of S’yanam, was one of the many people suffering from economic hardships in the area. He ran a

small soda-making unit which would barely provide enough for him and his family. He dreamt of being a civil contractor but did not have either the guidance nor the financial wherewithal to fulfil his dreams. It was at the time when Pettamdar was facing his worst financial crisis that Cairn India introduced the ‘micro-vendor development programme’ at Ravva. The programme aimed at bringing economic stability within the community and benefiting locals. Pettamdar got to know about this initiative and grabbed the opportunity Cairn had to offer. “The moment I got to know that Cairn India was issuing contracts to local vendors, I established ‘Sri Bhakta Engineering’ and registered it. In 2005 we got the contracts of the company on tender basis. I had experience in handling hydra equipments in agriculture, so I participated in the tender of hydra equipments supply contract.

I presented a quote and got the contract for the three years. I have built my own portfolio of products and am looking at other contracts as well”, Pettamdar was quoted as saying. “From a small soda maker, now I am a contractor. I have grown step-by-step with the help and guidance given by Cairn India. Now I am settled and I happy that I achieved what I wanted to be,” said Pettamdar.

PARTNERS IN OUR SUCCESS

Jana Kalyan Welfare Society

GMR Varalakshmi Foundation

ILFSES (IL&FS Educational Services)

ALEAP

State Health Department, Government of Andhra Pradesh

Nehru Yuva Kendra (Ministry of Youth Affairs)

Amalapuram Government Hospital

District Administration (East Godavari District, Government of Andhra Pradesh)

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Striding Ahead March 2012

Business

Transcript of Striding Ahead March 2012