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A

SUMMER TRAINING MADE


ON
A STUDY OF FUNCTIONAL AREAS OF

NTPC
(NATIONAL THERMAL POWER CORPORATION)

IN PARTIAL FULFILMENT OF REQUIREMENT OF


DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
AWARDED BY
VEER NARMAD SOUTH GUJARAT UNIVERSITY
2008-09

SUBMITTED TO: SUBMITTED BY:


Miss. Namrata Mam
Miss. Jueela Mam
Miss. Manisha Mam Gohil Saurav P (14)
Parekh Chintan A (42)

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Gandhi Nikunj R (12)

Declaration

We the undersigned, hereby declare that this project report titled


at NTPC-Kawas is an original and bonafide work carried out
under the guidance of Mr. Akhil P. Pattnaik (Dy Mgr. H.R. Of
NTPC-Kawas).The empirical findings in this report are based on
the data collected and \have not been taken from any other
report. This report does not form any basis for other degree or
diploma.

Date: 09/06/2009
Place: Surat

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Acknowledgement

With great sense of gratitude and pleasure we would like to thank to


Mr. Jha, Chief Manager (HR) for giving us the opportunity to undergo
training at the Navratna of India, NATIONAL THERMAL POWER
CORPORATION LTD., KAWAS.
We, with reverence, record our sincere thanks to Mr. A.K.Jadli,
Manager (HR) N.T.P.C – KGPP, who has provided us valuable
guidance in successful completion of this project by sparing his
valuable time and energy during the entire study period.
We pay special thanks to Shri Akhil P. Pattnaik, Dy Manager (HR-EB
& ED) who has also given valuable guidance in completion of this
project. We are also grateful to all employees of Kawas Gas Power
Project without whose co-operation; this project could not be
completed.
We would like to extend our deep sense of gratitude to Surat and who
have also provided us valuable guidance for the successful of this
project.
Last, but not the least we would also like to thanks N.T.P.C.
management for giving us an opportunity to undertake this study in
Kawas Gas Power Project.

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Executive Summery

The project basically deals with the recently


customer of NATIONAL THERMAL POWER CORPORATION. The
survey about the Customer satisfaction.

In this project, we have covered four


departments for the survey of services for the purpose of to identify
about the Industry awareness, satisfaction of service, which were
provided by the NATIONAL THERMAL POWER CORPORATION.

All the information is presented in simplified


manner have been included wherever required.

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INDEX
No. TOPIC PG NO.
1 INDUSTRY PROFILE 6-13
2 COMPANY PROFILE 14-27
3 PRODUCTION 28-50
MANAGEMENT
4 HUMAN RESOURCE 51-92
MANAGEMENT
5 MARKETING 93-106
MANAGEMENT
6 FINANCIAL 107-115
MANAGEMENT
7 CONCLUSION 116-120

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HISTORY

From humble beginnings in the 1880s, the Indian Power Sector has come a long
way
From one small unit in 1880s to 1362 MW in 1947 to over 550 Billion Units in
2006-07
• 1880s – First electrification – small hydel in Darjeeling

• 1889 – Commercial production & Distribution starts in Calcutta

• Indian Electricity Act, 1910.

• 1947 – Power generating capacity only 1,362 MW

• The Electricity (Supply) Act, 1948 – SEB formation

• Creation of central generation companies

• CEA constituted

• 1956 – Industrial Policy Resolution reserves production of power for public


sector

• 1960s and 70s – Impetus for expansion of rural electrification

• 1975 – NTPC and NHPC set up

• 1989 – NPTC set up. Renamed POWER GRID in 1992.

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• 1991 – Liberalization; amendments in Electricity (Supply) Act

• 1992 – Ministry of Power constituted

• 1995 – Policy for Mega power projects introduced

• 1998 – CERC and SERCs set up

• 2001 – Energy Conservation Act

• 2003 – New Electricity Act

• 2006-07 – Power generation capacity stands at 551.7 Billion Units

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Power Supply Units India:

Power is derived from various sources in India. These include thermal power,
hydropower or hydroelectricity, solar power, biogas energy, wind power etc. the
distribution of the power generated is undertaken by Rural Electrification
Corporation for electricity power supply to the rural areas, North Eastern Electric
Power Corporation for electricity supply to the North East India regions and the
Power Grid Corporation of India Limited for an all India supply of electrical power
in India.

 Thermal Power in India is mainly generated through coal, gas and oil.
India coal power forms a majority share of the source of power supply in
India. The electric power in India is generated at various thermal power
stations in India. The power generated at these thermal power plants is
then distributed all over India through a network of power grid at regional
and national levels. The power ministry organization responsible for the
thermal power management in India is the NTPC.
 Hydropower in India is one of the mega power generators in India.
Various hydropower projects and hydro power plants have been set up by
the ministry of power for generation of hydro power in India. Various dams
and reservoirs are constructed on major rivers and the kinetic energy of
the flowing water is utilized to generate hydroelectricity. The power
generator here is the running water. The hydroelectric power plants and
the hydro power generation companies are managed by the National
Hydro Electric Power Corporation (NHPC).
 Wind Power in India is available in plenty as India witnesses high
intensity winds in various regions due to the topographical diversity in
India. Efforts have been made to utilize this natural source of energy
available free of cost for wind power generation. Huge wind energy farms
have been set up by the government for tapping the wind energy by using
gigantic windmills and them

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Converting the kinetic energy of the wind into electricity by the use of power
converters. The wind power advantages start with the very fact that a wind
energy power plant does not require much infrastructure input and the raw
material i.e. wind itself is available free of cost.

 Solar Power in India is being utilized to generate electricity on smaller


scale by setting up massive solar panels and capturing the solar power.
Solar power India is also being utilized by the power companies in India to
generate solar energy for domestic and small industrial uses.
 Nuclear Power in India is generated at huge nuclear power plants and
nuclear power stations in India. A nuclear power plant generates the
electricity using nuclear energy. All the nuclear power plants in India are
managed by the Nuclear Power Corp of India Ltd (NPCL). The electricity
from all India nuclear plants is distributed by the NPCL as per the nuclear
power project scheme.

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GROWTH RATE
2009-02-29 01:18:25

Growth in electricity generation has decelerated to 6.6 per cent from 7.5 per cent
in the corresponding period in 2008-09, the Economic Survey tabled in the
Parliament by finance minister P. Chidambaram said.

The government is expecting 9.5 per cent growth per annum in the power sector
in the 11th Five Year Plan.

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MARKET SHARE

While the majority of capital invested in these countries is domestic, the


sovereign risk characteristics of these countries can differ significantly, which can
influence the types of international lenders that are willing to invest in these
markets. This aspect of investment risk, combined with the technological capacity
of a country to deploy technologies, as well as the local policies and measures
that govern them, can influence technology investment flows to Brazil, Russia,
India, and China.

PLAYERS
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 Industry players and profile

The power sector reveals that it can be largely segregated into four different
categories on the basis of type of players in the industry. These include:

 Central Government Corporations: which consist of corporations like


the National Thermal Power Corporation (NTPC), Nuclear Power Corporation,
National Hydro Electric Power Corporation (NHPC), and some other smaller
players.

 State Government Corporations. Which consist of the various state


electricity boards and other corporations that have been promoted by the
respective governments. Poor management, transmission and distribution (T&D)
losses and poor recoveries of dues are some of the factors, which are
responsible for the plight of these corporations. Currently, the financial health of
many SEBs is precarious and their revenue-raising capabilities are more or less
dependent on assured guarantees from the respective governments.

 Private Sector Licensees: In the private sector, some companies had


been given licenses to carry on generation and distribution activities. While some
of these companies are generation and distribution companies, others like Surat
Electricity are just distribution companies.

 Independent Power Producers: The Independent Power Producers


(IPPs) are the companies that have been given a nod to set up generation
capacities.

Finally, a look at the regulatory structure of the sector indicates that various Acts
govern the power sector.

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HISTORY

NTPC Limited is the largest power generating company of India. A public sector
company, it was incorporated in the year 1975 to accelerate power development
in the country as a wholly owned company of the Government of India. At
present, Government of India holds 89.5% of the total equity shares of the
company and the balance 10.5% is held by FIIs, Domestic Banks, Public and
others. For shareholding pattern. Within a span of 32 years, NTPC has emerged
as a truly national power company, with power generating facilities in all the
major regions of the country.

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VISION

“TO BE

ONE OF THE WORLD'S

LARGEST AND BEST

POWER UTILITIES,

POWERING INDIA'S GROWTH”


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MISSION

• Make available reliable and quality power in increasingly large quantities


at appropriate tariffs, and ensure timely realization of revenues.

• Speedily plan and implement power projects, with contemporary


technologies.

• Implement strategic diversifications in the areas of R&M, Hydro, LNG and


non-conventional and eco-friendly fuels and explore new areas like
transmission, information technology etc.

• Promote consultancy and make prudent acquisitions.

• Continuously develop competent human resources to match world


standards.

• Be a responsible corporate citizen with thrust on environment protection,


rehabilitation and ash utilization.

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Core Values

C Customer’s Focus

O Organizational Pride

M Mutual Respect And Trust

I Initiative And Speed

T Total Quality

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BOARD OF DIRECTORS

The Management of the Company is vested with the Board of Directors. In terms
of the Articles of Association of the Company the Board of Directors can have
minimum four Directors and maximum twenty Directors.

The Composition of the Board of Directors is given below

S. Name Designation Date of


No. Appointment
Functional Directors
1 Shri R.S.Sharma Chairman & Managing 01.04.2008
Director
2 Shri Chandan Director (Operations) 01.01.2009
Roy
3 Shri I J Kapoor Director (Commercial) 08.10.2008
4 Shri R.K. Jain Director (Technical) 05.05.2008
5 Shri A.K. Singhal Director (Finance) 01.08.2007
Part-Time Official Directors
1 Shri M. Sahoo Joint Secretary and Financial 11.07.2007
Advisor
Ministry of Power,
Government of India
2 Shri Harish Joint Secretary (Thermal) 11.07.2008
Chandra Ministry of Power,
Government of India

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CORPORATE AND REGIONAL HEADQUARTERS

CORPORATE OFFICE:
NTPC BHAWAN
CORE-7, SCOPE COMPLEX,
7 INSTITUTIONAL AREA, LODI ROAD,
NEW DELHI-110003

REGIONAL HEADQUARTERS:
EASTERN REGION LOKNAYAK JAIPRAKASH BHAWAN
2ND FLOOR, DAK BUNGALOW CHOWK
PATNA – 800001
BIHAR

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COMPETITION

NTPC Kawas is an important partner of western regional grid which has a


total installed capacity of 32,179 MW comprising of thermal, hydro, nuclear,
wind and gas. NTPC Kawas has 656.2 MW gas turbine based generation
capacity. Mix-fuel firing facility in gas turbine and a black start facility of
2.85MW to provide essential power during the grid failure and help in power
restoration during major grid collapses are its unique technical features and
competitive advantages. With this facility, Kawas have come forward to
restore the grid on many major failures in western region. The high
availability, quick starts up and fast loading capability, strong dispatch
network ensures the demand for generation by NTPC Kawas in various
normal as well as in emergency situations. With the passage of electricity bill
and successful conclusion of tri-partile agreement at govt. of India level, the
receivable position has improved. To maintain the competitive edge, NTPC
Kawas has sourced spot R-LNG from HP, GSPC & GAIL since year 2006.
NTPC Kawas regularly participates in the various operational and policy
review meetings conducted by WRPC where regular exchange of industry
statistical data and issues for generation, transmission and realization are
discussed and applicably resolved.

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COMPETITORS

Torrent Power
Entered the power sector by acquiring two old state owned electricity companies
and turned them into power utilities comparable with the best.

BHEL
• 14 Manufacturing plants
• 279 Coal based Thermal Utility Sets of BHEL, including 29 Sets of 500
MW and 157 Sets of 195-250 MW installed in the Country (As on
31.03.07)
• During 2006-07, out of 279 Coal based Thermal Utility Sets of BHEL in the
Country, 77 sets operated at PLF > 90% (6 sets at 100%; 18 sets at 95 –
100% and 53 sets at 90-95%)

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Foreign players entered to India

AES Corporation

CLP Power

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GROWTH RATE

NTPC's share on 31 Mar 2008 in the total installed capacity of the country was
19.1% and it contributed 28.50% of the total power generation of the country
during 2007-08.

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ORGANISATIONAL STRUCTURE

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CONSTRUCTION AT NTPC KAWAS

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PLANT LOCATION

 INTRODUCTION:

Kawas combined cycle Gas Power Project situated on the western seacoast
around 15kms. From “Silk City” Surat in the state of Gujarat, is one of the
prestigious combined cycle gas power station of its kind both within NTPC and in
the country. The unique features of the power station are multi fuel firing facility in
the Gas Turbine, a black start facility of 2.85 MW operational on HSD for start-up
of the plant and maintaining the plant mandatory systems in case of grid failure
and a simulator complex for the combined cycle plant to train power engineers.

After striking of natural gas in a large amount in the Western off shore and the
decision of the Central Government to lay HBJ pipeline to feed natural gas to
different Fertilizer Plants and Petrochemical units, it was found that sufficient gas
could be made available for power generation also at a few locations. The
Ministry of Energy, rightly recognizing the performance of NTPC in setting up and
successfully operating the coal based power stations directed NTPC to prepare
feasibility report for gas based combined cycle power plants to be developed
along the HBJ pipe line in three states Gujarat, Rajasthan and Uttar Pradesh.
Accordingly feasibility report was prepared for the Gas based projects at Kawas,
Anta, and Auraiya and submitted to CEA by July ’85. Recognizing the role of Gas
based power plants in helping to quickly bridge the gap of energy shortage of 10-
15% anticipated through out the 7th plan period, due to its low gestation period,
high efficiency, quick start and quick loading facility with multi fuel flexibility and
low pollution impact, it did not take much time for CEA to approve the Project, in
sept.’85.

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 LOCATION:

Plant is located in the village Mora which falls in the western outskirt of Surat city
at Latitude 21 10’ N and Longitude 72 41’ E. The site is around 19kms. away
from the Surat Railway Station. The site is close to Hazira a small coastal port at
the mouth of River Tapi. It is having KRIBHCO Fertilizer plant on the eastern
side, River Tapi on its southern side, Hazira-Surat road and Hazira branch canal
on northern boundary and Reliance Industry Ltd. on western boundary.

 SITE SELECTION:

Two vacant plots, adjacent to the Hazira Branch canal, on the south of Surat-
Hazira roads were examined as alternate sites. The first site identified for power
plant was adjacent to Hazira Branch canal running along the Surat-Hazira road
and to east of ONGC complex. The land being under cultivation would have been
difficult to acquire. The land also feels within the Surat Municipal limits and
finding a corridor for power evacuation was also difficult. T he present site is
having a locational advantage. About 60% of the land was government land. The
rest was private land with inferior agriculture quality. The land varied from3.0 m
above MSL in the higher portion of land. The creeks and low lying portion of the
field used to get filled up with water during high tide. Therefore a safe level of 5.5
m was considered for the power plant. The soil consists of a top stratum of
moderately expensive silt clay. The ground water table in the rainy season was
found to be 2.75 m below MSL. The sub soil as well as ground water has been
found to be alkaline with a Ph value of around 7.0 to 8.0.

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 LAND ACQUISITION:

Land acquisition work for the plant as well as township area started in Feb 1986
and a total of 568 acres of land was acquired in June 1986. (523 acres for the
plant and 45 acres for the township). Only one Village ‘MORA’ was affected with
51 nos. of “Khatedars”. Most of them were suitably rehabilitated by providing jobs
in NTPC and some were allotted shops in the townships in addition to the
compensation.

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FACTORS AFFECTING PLANT LOCATION:

⇒ FUEL LINKAGES:

Initially ONGC had informed that NGL a by-product at their Hazira


works would be made available and supplied through pipe line and the gas would
be supplied to NTPC, on fall back basis from Hazira till March 1990. According, a
provision for handling, storing and firing NGL was maintained under the scope of
Main Plant in the initial LOA. However, in Sept 1990 the department of Petroleum
and Natural Gas communicated allocation of 2.25 MCMD of Gas for the projects,
which made NTPC to revise the scope of Main plant and delete all the off base
facilities for liquid fuel handling. However, the scopes of on base facilities for
multi fuel firing were retained. The gas from Western offshore fields is coming
through under sea pipeline upto ONGC terminal where it is sweetened amd
transferred to GAIL for further marketing/distribution. The sweetened natural gas
comes to the plant through pipeline laid by GAIL, while the liquid fuels are
supplied by HPCL through separate pipeline and supply provision through road
tankers has also been made.

⇒ WATER AVAILABILITY:

Make Up water was being drawn from Suvali minor canal Kakrapar right
bank canal network, taking off from Kakrapar reservoir on river Tapi. To meet the
water requirements during shut down of Hazira branch canal for annual
inspection and shut down reservoirs were constructed with total capacity of 10.9
lac cu.m.

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Though the Govt. of Gujarat, Irrigation Dept. had granted an allocation of
10.8MGD (20 cusecs) of water at the inception stages of this project based on
which the feasibility report was approved by Central Electricity Authority, later on
sanction was withdrawn by the Govt. of Gujarat, and all the Hazira based
industries, along with NTPC, were asked to make own arrangement to draw
water directly from the Ukai Dam, an approximately 87 km distance from the
project site.
After a series of discussion between the authorities of NTPC and
Government of Gujarat the conditions were relaxed and drawl of water from the
canal was permitted till NTPC makes its own other alternate arrangements.

⇒ MULTIFUEL FIRING FACILITY:

From the very beginning, Kawas was not able to get earlier committed
supply of 2.25 MCMD gas by the Ministry of Petroleum and Natural Gas, from the
HBJ pipeline. This had adversely affected the plant load factor in the initial years.
Thus, in order to overcome the situation, arrangements for the off- base liquid
fuel handling facility to make the plant operational on multifuels was decided. A
separate contract was awarded for creating the liquid fuel storage, fuel unloading
and transferring facilities up to gas turbines. Major pumping and filtering skids
were supplied by AEX and the commissioning work of all the units were done
under the supervision of AEX. Ministry of petroleum .the multi fuel facilities were
commissioned for all the gas turbine units by Dec’97.

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⇒ AFFORESTATION:

On the front of maintaining ecological balance, the project had taken


extensive afforestation in the plant area, township and surroundings villages.
Nearly 1.7 lakh plants of different varieties are surviving in these areas.
This report is an endeavor to share the experiences of the different
stages of these project activities like design, construction, erection and
commissioning in completion of this project. It describes the design, construction,
erection and commissioning of 2 GT s and 1 ST with associated system and
offsite facilities of KAWAS gas power project. A section highlights Quality
Management during construction with exhibits of selected drawings has also
been incorporated.

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PLANT LAYOUT

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MANUFACTURING PROCESS

STEP-1: STORAGE AND HANDLING OF HSD/ARN/NGL


HSD that is coming by tankers to the LFHS is manually measured and unloaded
through pipeline by a set of pumps and stored in HSD storage tank ARN/NGL
that is transported from ONGC/HPCL depot through pipeline. HPCL is received
directly in the Naptha storage tanks. Measurement is done by fliw meters
installed in the line. In the case of emergency, ARN/NGL through road tankers is
unloaded in LFHS unloading bay using unloading pumps.

STEP-2: SUPPLY OF HSD/ARN.NGL TO GAS TURBINES


HSD and ARN/NGL are stored in storage tanks in the tank farm area. HSD is
supplied to the units by 2 nos. forwarding pumps provided in LFHS pump house.
Whenever there is a demand in HSD the forwarding pump will start and the
filtered and metered HSD is sent to the on-base system through a 3-way valve. If
any of the unit is running on the HSD/ARN/NGL the forwarding pump will be
running.
Naptha /NGL are supplied to the units by 3 nos. Naptha /NGL/HSD is received
and stored in liquid fuel handling station and is pumped to the unit through a
pipeline.

STEP- 3: SUPPLY OF RAW WATER TO RESERVOIR AND PT PLANT


2 Kiroskar make pumps are provided at the various pumping station of NTPC,
KAWAS, for the supply of raw water from the Tapti River through pipeline to
NTPC plant site. Raw water can also be taken from Gujarat state irrigation canal
in case of emergency or availability.
Raw water from the dead reservoir after setting goes to live reservoir from where
the 3 raw water pumps take section. The discharge from raw water pumps is
given to PT plant.

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STEP- 4: GENERATION OF ELECTRICITY BY THE OPERATION AND
CONTROL OF GAS TURBINE WITH GAS/ LIQUID FUEL
There are 4 gas turbines (GT’s) that can be operated either on gas or on liquid
fuel for the purpose of generation of electricity. Each GT has a compressor,
combustors, gas turbine, a generator and some auxiliaries coupled to it.
Filtered air form atmosphere is compressed in the compressor and sent to
combustors.

STEP- 5: MONITORING AND MEASUREMENT OF COMBUSTION OF FUEL


IN GT
There are 4 gas turbines (GT’s) that can be operated either on gas or on liquid
fuel. . Each GT has a compressor, combustors, gas turbine, a generator and
some auxiliaries coupled to it. The fuel gas from the gas turbine outlet is
delivered through the duct into the bypass stack during open cycle generation,
which is let out to the atmosphere at a height of 55mtr. In the case of combined
cycle generation the fuel gas instead of passing through the bypass stack is
diverted through a diverter assembly into waste heat recovery boiler.

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STEP- 6: GENERATION OF STEAM IN WHRB AND SUPPLY OF STEAM TO
STEAM TURBINE:
The exhaust of gas turbine is diverted to the Waste Heat Recovery Boiler
(WHRB) to recover the heat through steam generation. The fuel gas passes
through the vertical type boiler thereby transferring its heat content to DM water
and transforming it into superheated steam.

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STEP- 7: MONITORING AND MEASUREMENT OF STEAM AND WATER
CYCLE:
The DM water from DM plant is taken in the condenser. The DM water required
for the boiler is supplied from DM plant which is taken in condenser. The
condensate is pumped through the pre heated circuit into the de-aerator wherein
the dissolved oxygen is removed to the desire level.
The de-aerated water is sent through the HP and LP economizer into the
respective drums of a boiler by two different sets of pumps taking from de-
aerator.
The HP and LP drum water are circulated through the evaporators by HP and
LP circulation pumps whereby water is converted into steam and is collected in
the respective drums.
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The saturated steam from the drums are passed through the super heaters and
then sent into the steam turbine to generate motive power for a generator. HP
steam enters the HP turbine, after expansion mixes up with the LP steam, and
enters the LP turbine. The steam turbine is rated to generate 116.1 MW. Since
total heat cannot be converted into mechanical power, large quantity of water is
needed to cool the residual steam. This cooling water, after becoming hot, is
cooled in cooling towers.

STEP- 8: SUPPLY OF GENERATED ELECTRICITY TO WRLDC


Power generated in all the six units is supplied to western region grid through
220 KV transmission lines. Name of the transmission lines are given below
a) Kawas- Navsari line 1
b) Kawas- Navsari line 2
c) Kawas- Valthan single line
d) Kawas- Ichhapore single line
e) Kawas- Haldarva line 1
f) Kawas- Haldarva line 2

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SWITCHYARD ROOM

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INVENTORY CONTROL

Material Management is one of the critical and crucial part of every organization
involved in manufacturing process. Bad Management of inventory has lead to fall
of organizations all over the world, because of the carry over cost. Total number
of Spares varies from Organization to Organization. An Efficient and Effective
Material Management System is important in the inventory and for Effective Cost
Control.

 INVENTORY CONTROL - SPARES

 OBJECTIVES;
•To minimize the capital blocked up in inventory or in other words maintain
optimum level of inventory.
•To strike a balance between production costs and operating and maintenance
costs.
•To avoid wastages, losses and optimum utilization.

 FUNCTIONS:
• Identify the spares required for maintaining the equipments.
• Asses annual requirements.
• Determine how-much to procure and when.
• Standardization of spares.
• Identify slow moving, obsolete, defective or damaged items and life of spares
where ever it is applicable.
• Preparation of policies and procedures to suit to the organization.
• Prepare spare parts specifications.
• Auditing of Inventories regularly.

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 SPARES CLASSIFICATION
Identification of spares of common in nature for the equipments and allocation of
material codification number accordingly.

A detailed analysis of Spare Parts and procurement action depends upon.


(1) Consumption History
(2) Fast moving spares
(3) Slow moving spares
(4) Procurement practices
(5) Lead time
(6) Price discounts and bulk purchases.

 INVENTORY ANALYSIS:
• For inventory control a selective approach for each item according to its
importance is to be chosen.
• Most important analysis are:
(1) A B C Analysis
(2) V E D Analysis
(3) F S N Analysis

ABC: Annual consumption in terms of money value.


A = Annual consumption on value very high.
B = Annual consumption on value medium.
C = Annual consumption on value low.
VED: VITAL
ESSENTIAL
DESIRABLE

FSN: Fast Moving


Slow Moving
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None Moving

 ORDER QUANTITY
To determine the quantity of spares to be ordered for each of the item, the
following are kept in mind.
(1) Order cost – Cost due to processing of purchase order.
(2) Inventory carrying cost – Interest on capital, storage cost insurance,
maintenance cost.
(3) Economic order quantity is the one which considers the cost of ordering and
inventory carrying cost.

 REPLENISHING SYSTEM
The following procedures are followed.
• STOCK ITEM: Automatic replenishing system (ARS Items by purchase
department/Stores.
• NON-STOCK ITEM: Indenting by user department. While ordering/replenishing
the points to be considered are.
1) Re order time/levels.
2) Quantity to be procured.
3) Quantity of safety stock to be maintained.
4) Lead time to be considered.
5) Inventory carrying cost.

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 SPARE PARTS DEVELOPMENT

Development of alternate source of supply of spares for station to build up


a competitive atmosphere among the vendors. The objectives are
i) To optimize the spares cost.
ii) Reduction in lead time.
iii) Foreign Exchange savings

 IDENTIFICATION PROCESS

1) High value critical spares of imported origins.


2) Spares whose manufacturing has been discontinued or spares for which poor
response from the manufacturers.
3) Spares of Indigenous proprietary origin.

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QUALITY CONTROL

 QUALITY POLICY
Generating reliable and economic electric power from Kawas by:
1) Teamwork
2) Efficient and eco-friendly operation of each unit
3) Maintaining the declared availability
4) Striving for continual improvement in all aspects associated with operation

 QUALITY OBJECTIVES
• To generate power as per MOU between NTPC-Kawas and WRLDC
• To consistently strive to improve upon the operational performance by
reducing heat rate as per MOU
• Meet customer requirements as expressed through generation schedule
from WRLDC

 SCOPE
• The quality system procedure covers the operation of the main power
plant and related offsite equipments. Process wise, the scope of the
manual covers:
• Storage and handling of HSD/ ARN/ NGL
• Filtering and supply of HSD/ARN/NGL to gas turbines
• Handling of GAS from GAIL terminal and inside plant premises Supply of
raw water to reservoir PT plant
Generation of electricity by the Operation and Control of GT with GAS/LF.

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Kawas Gas Power Project

⇒ Personal Protective Equipment

PPE is a second line of defense for employee protection. The first line of
defense is to eliminate accident-causing situations in work place by effective
engineering measures. But it is not always practical, so sometime use of PPEs
become inevitable. The same time it is borne in mind that PPE does not
eliminate the hazard. It is just barrier between the hazard and the worker. PPE
can help eliminate an injury or reduce its severity. PPE should be resorted to
only if absolute removal of hazard is impossible or impractical. PPE relevant to
the hazard should be selected and used.

Wearing of Safety Helmet & Safety Shoes is compulsory in plant area.

Description Material Code

Industrial Safety Shoe with Steel Toe cap 2732550141

Industrial Electrical Safety Shoe 2732559573

Safety Helmet 2725222635

Ear Plug 2798252801

Ear Muff 2798252810

Safety Goggle 2798250018

Safety Belt 2725220295

- 49 -
Chemical Splash Protective Goggles 2725224729

- 50 -
- 51 -
- 52 -
HR VISION

“TO ENABLE OUR PEOPLE TO BE A

FAMILY OF COMMITTED WORLD

CLASS PROFESSIONALS,

MAKING NTPC A

LEARNING ORGANISATION.”

- 53 -
Manpower Planning and Budgeting

In all Divisions and Projects of the Company, before the end of


August every year, each Department will review the adequacy or otherwise of
the available manpower with reference to the tasks and targets and determine the
additional requirements of manpower in qualitative and quantitative terms for
the immediately following financial year.

Based on the requirements of additional manpower of the


individual departments, the detailed manpower plan for the financial year will
be prepared jointly by the Planning and Personnel Departments for the Division
as a whole giving specific details of each new posts other than casual posts and
justification therefore and this manpower plan containing details of expenditure
involved will form a part of the overall Manpower Budget of the Division.

The requirements of casual and other contingent staff will not


form a part of the Manpower Budget as the same will be shown only in terms of
estimate of expenditure to be incurred in respect thereof as a part of the Works
Budget.

Annual manpower plans including the additional manpower


requirements along with all relevant details and estimated cost involved for all
the Divisions/ Projects will be consolidated into an integrated Company
Manpower Plan which will form a part of the annual budget to be submitted for
approval of the Board of Directors.

On approval by the Board, these manpower plans will constitute


sanction for creation of posts including posts of trainees and form the general
basis of recruitment during the financial year.

- 54 -
LEVEL AND DESIGNATIONS IN NTPC LIMITED

Level Designation
E1 Assistant Officer
E2 Senior Assistant Officer
E2A Engineer/Officer
E3 Senior Officer/Engineer
E4 Deputy Manager/Deputy
Superintendent
E5 Manager/Superintendent
E6 Senior Manager/Senior Superintendent
E7 Deputy General Manager
E7A Assistant General Manager
E8 General Manager
S3 Supervisor
S4 Senior Supervisor
W1 Attendant
W2 Senior Attendant
W3 Senior Assistant/Junior Operator
W4 Assistant
W5 Assistant Grade-3
W6 Senior Assistant Grade-2
W7 Steno Grade-1
W8 Senior Assistant Grade-3
W9 Senior Assistant Grade-4

- 55 -
Recruitment Policy and Procedures

◊ Preamble

NTPC subscribes to the belief that efficiency, effectiveness and success of the
organization depends largely on the skills, abilities and commitment of the
employees who constitute the most important asset of the organization.

NTPC is therefore resolved to provide a framework of policies which will


enable the Organization to attract the right talent for the jobs and make it
available at the right time and in right number with the ultimate objective of
ensuring optimum and effective utilization of the human resources in a
climate of satisfaction, development and growth.

In pursuance of the above objectives and consistent with the Company's


social and national obligations, NTPC hereby makes the following policy
statement to be called NTPC RECRUITMENT POLICY AND PROCEDURES
to govern, regulate and generally facilitate recruitment of personnel in the
Projects, Offices and Establishments of the Company.

- 56 -
RECRUITMENT AND SELECTION

• Preliminary

The policy statement and the rules and procedures made


hereunder will be applicable to recruitment and selection of employee of all
classes and categories irrespective of whether they are against regular,
temporary, casual, or trainee posts, unless specifically stated otherwise.

• Manpower Planning and Budgeting

Based on the requirements of additional manpower of the


individual departments, the detailed manpower plan for the financial year will
be prepared jointly by the Planning and Personnel Departments for the Division
as a whole giving specific details of each new posts other than casual posts and
justification therefore and this manpower plan containing details of
expenditure involved will form a part of the overall Manpower Budget of the
Division.

• Creation of Posts

For the purpose of according sanction to the creation of regular,


trainee and temporary posts in different categories within the approved budget
provisions and approving appointments to such posts, the following will be the
competent authorities to be referred to hereinafter as the Appointing Authority

- 57 -
• Job Title, job Specifications, Role Outline and Pay scales

Job specifications indicating the eligibility requirements in terms


of minimum educational and/or professional qualifications, length, nature of
quality of experience, upper age limit etc. and a general outline of the role and
responsibilities will be laid down in respect of each job title along with the pay
scale or consolidated daily/monthly wage rate in which the posts in the
category will be operated.

Non-Executives
Unskilled Group W 0 levels
Skilled Group & equivalent Secretarial
and Clerical Staff W3 & W4 levels

Supervisor

Supervisory & equivalent Categories SI & W7 levels

Executives

Executive E1 / E 2 level

Infusion of new blood to the executive and supervisory cadres will


be through the Executive Trainee and Diploma Trainee Schemes under which
training based on specific requirements of the Company will be imparted to the
fresh professional graduates and diploma holders to be recruited on a regular
annual basis.

- 58 -
• Agencies for Recruitment

All recruitment to the executive cadres inclusive of executive trainees for all
Divisions and Projects of the company will be centralized in the Corporate Center
and dealt with by the Corporate HR Division.

Until such time as the Company's Projects do not have their separate training
facilities, all recruitments of Diploma training scheme will be done by the
Corporate HR Division

In respect of all other non-executive personnel, recruitments will be done by the


HR Department of the Division/Project concerned.

• Sources and Modes of Recruitment

For recruitment of professional personnel in Company's executive cadre


including executive trainees, selection, will be made on all India basis and for
this purpose, the posts to be filled will be duly notified through press
advertisements and Company Notice Boards and/or through circulars issued to
Government Departments and Public Sector Undertaking where suitable
candidates of the required expertise are expected to be available.

In respect of recruitment to non-executive posts carrying a maximum basic


pay of Rs. 1250/- per month and below all vacancies will be notified to the
Employment Exchanges in terms of Employment Exchanges (Compulsory
Notification of Vacancies) Act. 1959.

Provided that notifications for recruitment to reserved vacancies will also be


issued to Association concerned. Copies of notification may also be sent
simultaneously to the Central Employment Exchange and other employment
exchanges in the neighboring district within the state and Government and
Semi- government organizations and/or the positions may be advertised in the

- 59 -
local press subject, however, to the condition that all things being equal,
preference will be given to suitable candidates sponsored by the concerned
Employment Exchange.
In respect of recruitment to non-executive posts carrying a basic pay of above
Rs. 2500/- per month, recruitment will be made from the region comprising the
State in which the Division/Project/Establishment concerned is located and the
neighboring States and for this purpose notification for filling the vacancies will
be issued in the newspapers and also to the employment exchanges of the
region through the Central Employment Exchange in addition to the Notice
Board in the Company's premises.

Provided that recruitment may be made to such posts from outside the region
where the appointing authority is satisfied that suitable candidates in adequate
number may not be available within the region. Provided that to facilitate
recruitment to the reserved vacancies, copies of such notifications will also be
issued to the various agencies and associations as stated above.

In addition to the above induction of executive and specialist non-executive


personnel may be made as deemed necessary and appropriate by the
authority competent to create the posts from one or more of the following
sources:

(a) deputation from Central/State Governments/ Electricity Boards and


Public Sector Organizations where suitable personnel on terms offered by the
Company may not be available at the right time from other sources where the
time and cost involved in processing recruitments through open
advertisements may not be justified in view of the number or nature of posts to
be filled.

(b) Campus interview and recruitment to the posts in the grade of


Rs.12000- 12500 and Executive Trainees from reputed
engineering/management institutions to be specified.
- 60 -
(c) Candidates located through personal contacts and talent survey, only in
respect of posts requiring specialist knowledge and expertise and/or
exceptional qualification and merit subject to approval by the Appointing
Authority.

• To fill Job Openings by Selection from within

The internal candidates who fulfill all eligibility requirements may be considered
along with other candidates.
Subject to fulfillment of minimum eligibility requirements and other prescribed criteria,
directly recruited regular employees including deputationists will be considered
eligible for selection to a post in open competition with external candidates

Applications of all internal candidates will be forwarded to the HR Department


by the Head of the Department who should give in his forwarding statement:

(a) Comments on the suitability of the candidates for the post applied for.

(b) Assessment of the performance of the candidate.

(c) Remarks whether or not candidate can be released in case he is


selected without detriment to the job currently being handled by him.

• Preference for Candidates Belonging to Scheduled Castes/


Scheduled Tribes/Other backward Classes/Ex-Servicemen, Displaced
Persons etc.

- 61 -
Towards the fulfillment of the Company's social and national obligations it will
always be NTPC's Endeavour to provide gainful employment on a preferential
basis to the members of the economically backward classes, ex- servicemen,
persons uprooted from the project areas and other unfortunate sections of the
society and for this purpose the directives of the Government concerning
reservation of vacancies and special concession to be allowed to such candidates
will be most strictly and conscientiously adhered to.

• Application Formalities

Unless specifically exempted by the appointing authority, all applications for


job positions in the Company will be accompanied by a Demand Draft of the
value of Rs.50/- for executive posts, Rs.250/- for the posts of executive
trainees and Rs. 10/- for non-executive posts other than those covered by the
Employment Exchanges (compulsory Notification of Vacancies) Act,
1959.Provided that candidates belonging to Scheduled Castes and Scheduled
Tribes and Ex- servicemen will be exempted from the payment of application fees.

• Forwarding of Applications of Candidates from


Government and Public Undertakings

In respect of candidates from Government and public sector organizations


who apply through proper channel, HR department will obtain copies of the
annual appraisal reports or their abstracts in NTPC's reference check forms
which will be placed before the Selection Board during or after interview but
before the finalization of the panel of selected candidates.

• Requisition of Manpower

The respective departments will forward their manpower requirements in


prescribed requisition forms to the HR Department through the respective

- 62 -
Appointing Authority competent to sanction creation of posts indicating therein
the last dates by which placement of personnel is desired for different posts
keeping in view the normal lead time for recruitment.

• Processing of Applications

All applications received against a specific notification/ advertisement will be


subjected to a preliminary scrutiny by the HR Department

• Interviews and Role of Selection Board

The candidates included in the short-list of rated applications referred to THE


above will be called upon to undergo a prescribed selection process which may
consist of:

• an interview before the Selection Board, or

• a test and/or group discussion followed by an interview of all candidates


before the Selection Board, or

• An elimination test and/or group discussion followed by an interview


before the Selection Board of only those who qualify in the test and/or
group discussion.

• Operation of Panel of Selected Candidates

The Central Selection Board, based on the merit and performance of the
candidate during the interview, awards marks to them by consensus. Based on
fulfilling the criteria for length of service advertised for each level and also on
the marks awarded by the CSB, the candidates are placed on the panel at
appropriate level, Separate panels are drawn for General, SC/ST and OBC

- 63 -
categories. The minimum qualifying marks required for placement in panel for
different categories of candidates are :

General Category 55%


OBC Category 50%
SC/ST Categories 45%

• Offers of Appointment

Upon approval by the competent authority, offers of appointments are sent by


Registered Post giving 30 days time for joining. However, extension in joining
upto four months based on the merit of the case, after approval of the
competent authorities, is also allowed.

• Medical Fitness

Nobody will be appointed to any post in the Company whether regular,


temporary, trainee or casual unless he is declared physically fit as per the
medical fitness standards prescribed for the post after a medical examination by
the Company's authorized medical officer/officers at the time of appointment in
the Company's service.

• Joining Formalities

In case of recruitment to executive and supervisory posts, prescribed application


blanks will include a column for the candidates to give names of two references
to whom, in the event of selection of the candidate, reference will be made in
the prescribed form for eliciting their views and opinions on the suitability of
the candidate for employment in the Company.

- 64 -
TRAINING

Training shall include a training programme, seminar, convention, workshop,


symposium or any other structured learning or developmental programme, based
on organizational needs and/or Training Need Analysis.

 OBJECTIVES:

• Make learning one of the fundamental values of the Company


• Ensure value addition through training to the overall business process
• Institutionalize learning opportunities that supplement work experience
• Integrate organizational and individual developmental needs
• Enable employees to keep abreast with the latest knowledge and skills
and enable them to undertake current and future responsibilities in a more
effective manner.
• Provide linkages between the different functionaries of training activity
• Provide linkages of training activity with overall Human Resource function.

TYPES OF TRAINING:

 In-house Training Programme: A training programme designed,


developed and conducted within the Company, exclusively for the regular
employees of the Company, with or without the assistance of external
agency (ies).

- 65 -
 External Training Programme: A training programme designed,
developed and conducted within India, by an outside agency, not
exclusively for the employees of the Company, and to which one or more
employees of the Company may be nominated.

 Planned Intervention: A grade/level/category-wise in-house training


programme, normally based on a template course design, and conducted
to improve competency base of employees as felt necessary by the
organization. The List of current Planned Interventions is given in
Annexure I.

 Need-based Programme: A training programme, designed, developed


and conducted on the basis of the developmental needs felt and identified
for the employees concerned in the Training Needs Form.

 Specified Intervention: An external training programme or an in-house


training programme other than a Planned Intervention or a Need-based
Programme, conducted to improve certain specified competencies, as felt
necessary by the organization.

CLASSIFICATION OF TRAINING NEEDS:

Essential: Developmental needs which, if not met, may affect job


performance

Desirable: Developmental needs which are necessary for personal


development and growth.

Short-term: Developmental needs which need to be fulfilled for immediate


job performance.

- 66 -
Long-term: Developmental needs which need to be fulfilled for future job
performance, in next two years or so.

AGENCIES OF TRAINING:

The agencies that shall deal with the training function in the Company
shall include:

• Power Management Institute: PMI shall be the apex-training


institute and the nodal agency for Training for the Company. It shall cater
to the advanced training needs of all executives of the Company. In case
of employees of Corporate Centre, it shall cater to the training needs of
both executives and non-executives. It shall specialize in Management
Development and advanced technical areas including Information
Technology and shall serve as knowledge dissemination centre for the
Company as a whole. It will also engage in research and consultancy.

• Unit Training Centers: Unit Training Centers shall cater to the


training and development needs of the employees of the respective
units.

• Simulator Training Centers: The Simulator training centers at


Korba & Kawas, designed to produce real time behavior of the
Thermal and gas modules respectively, shall cater to the needs of
the corporation. In addition, depending on the availability of
resources, the Simulator training centers would also provide training

- 67 -
to external agencies / organizations, on commercial terms.

• Regional HR group: The Regional HR group shall cater to the


training and development needs of the employees of the respective
region. Wherever it is not feasible for the Unit Training Centers to
organize a specific programme, Regional HR group would organize
such a programme for the employees in the entire region. It would
also take an active and proactive part in finalization of the training
calendars of each unit within the region.

• Corporate HR Group: HR Group shall co-ordinate external training


programmes for all the employees of Corporate Centre. It would
also co-ordinate specified interventions for targetted groups.

• Departmental Training Co-ordinator: The Head of each


Department shall nominate an executive who shall, besides his normal
functional assignment, co-ordinate the training and related matters for the
employees of the department. It shall be the responsibility of the
Departmental Training Co-ordinator for conducting Training Need
Analysis and so ensuring nomination of the employees of the department
concerned to training programmes that the Training Target of 7 mandays
of training for every employee in a training year is achieved.

- 68 -
TRAINING NEED ANALYSIS: (TNA)

The objectives of Training Need Analysis are to

• systematically identify developmental needs of employees


• integrate so-identified individual needs with organizational needs
• enhance relevance and acceptance of training programmes
• Employees would identify their training needs once in two years.
This is as per the Training Plan implemented in 1998.

Each employee will identify his/her training needs in a maximum of four


areas in consultation with his reporting officer. The training needs
expressed should be related to the employee’s present responsibilities
and his likely areas of future assignments.

Training Needs would be classified as Essential and Desirable along two


time-frames of short-term (for immediate job performance) and long-term
(for future job performance, in next two years or so ).

The identified needs would be prioritised in the following manner and


would be addressed accordingly:

Priority A Essential Short-term


Priority B Desirable short-term
Priority C Essential long-term
Priority D Desirable long-term
Training needs identification in case of executives would be done by the
executive concerned in consultation with his/her Reporting Officer in the Training
- 69 -
Needs Form enclosed at Annexure II.

- 70 -
- 71 -
PROMOTION AND TRANSFER:

Eligibility period is that minimum period in the existing grade on completion of


which an employee is considered for promotion to the next higher grade on the
standard date of promotion, subject to provision of promotion channel and
availability of vacancies and other conditions.

General Principles:
1) Promotion of executives to positions in next higher grades will be on the
basis of merit, efficiency, grade service and suitability. In view of the fact
that such merit, efficiency and suitability can be meaningfully determined
on the basis of assessment of performance and potential over a
reasonable period.

2) Wherever limited applicability of seniority is provided in this policy, such


seniority will be determined with reference to one or more of the following
factors:

• Length of service in a grade from the date of joining inclusive of


seniority weight age if any or from the date of promotion in NTPC.
• Merit position in the selection panel where date of joining is the same
or the merit position in Corporate Promotion Committee minutes where
date of promotion is the same.

3) Cases of eligible personnel in the executive cadre may be taken up for


consideration for promotion at any time depending upon the availability of
vacancies and exigencies of work.

4) It would be essential to clear a departmental examination of standard


equivalent to bachelor in engineering for any executive who possesses
only diploma in engineering qualification, to be promoted beyond the
grade of Deputy Manager. This condition will be relax able by CMD.

- 72 -
TRANSFER

 OBJECTIVES:

i. To cater to the changing needs of the organization


ii. To ensure optimum utilization of manpower & their skills
iii. To accomplish specific task/objectives with the available resources
iv. Towards developmental needs of the employees
v. To meet the individual employee needs matching it with organizational
requirements
vi.
The transfer of employees from one location to another becomes necessary to
meet the organizational needs as well as employee developmental and personal
needs. The various considerations could, broadly, be classified as under:-

 To meet organizational requirements, as envisaged in the manpower plan.


To optimize appropriate placement. To meet exigencies of company’s
work. To meet the needs at a particular location requiring specialized
knowledge/experience.

 Administrative grounds and/or effective deployment of manpower.

 Towards career development of employees through job-rotation.

 To take care of pressing personal problems of employees, to the extent


feasible and subject to Organization requirements.

The following procedure will be observed while deciding transfers.

 The transfer of Head of Project/Station will be affected in consultation with


all the concerned Functional Directors.

- 73 -
 Transfers of DGMs/AGMs (where DGM/AGM is not Head of the
Project/unit) will be affected in consultation with the Concerned ED/Functional
Director.

 Transfer of Head of Department within the Project/Station shall not be


done by the Head of the Project/Regional ED, unless approved by D(HR) (upto
E7 level) and CMD (E7A & above)

 Inter functional/department shifting of personnel at E6 and above within a


Project/Station shall be done with approval of D (HR).

 No structural change in the approved manpower module should be carried


out by the Project Heads/EDs excepting with the approval of D (HR).

 In situation involving administrative exigencies where consultations as


above (clause 4.0 (i & ii)) with Concerned Functional Director/ED is not possible,
the Competent Authority may order such transfer after recording reasons for not
consulting the Functional Director/ED.

The project/controlling officer will release all employees in respect of whom


orders of transfer are issued promptly. However, in case it is not done the
executive will automatically stand released on completion of 2 months from the
date of issue of the transfer order. The concerned executive will draw wages only
from the new place of posting after expiry of two months from the date of issue of
transfer order.

- 74 -
PERFORMANCE APPRAISAL:
Performance appraisal is a process for bringing out the best in employees and
developing than for facing new challenges through close relationship and
understanding between them, the employee and his supervisor. It also helps in
understanding the employee’s aspiration, identifying his developments, needs
and fulfilling them through job rotation/re-assessment and other measures.

The performance Appraisal System in NTPC has been evolved after wide
ranging discussions and participation of all concerned at various stages. With a
view to meeting the individual and organizational needs. The system is an
outcome of these deliberations on the objectives, forms and the process of the
appraisal

 Objectives

Performance appraisal system has following objectives:

1. Effective Work system

To set Targets and Performance norms, monitor work progress and plan for
improved performance

2. Training and Development

To understand the gaps in knowledge, skills and attitudes that exists and see
how these can be filled by planned guidance and training.

3. Placement

To consider an employee’s suitability of different types of assignments and


matching the abilities and expertise of the existing personnel with the job
requirements.

- 75 -
4. Promotion

To provide the basis for determination of merit, efficiency and suitability for
purposes of promotion.

Evaluation
In performance appraisal system following is being evaluated:

 Evaluations of work performance on the present job i.e. the extent to


which performance norms and targets have been met quantitatively and
qualitatively.

 The evaluation of behavioral attributes attitudes and executive abilities.

 The extent of development achieved by the employee during the period


under review.

 Evaluation for potential for assuming higher responsibilities.

 Alternatives roles/functions into which the executives can move.

 Overall assessment of the employee.

 Assessment of training needs.

Coverage

Performance appraisal for executive:

 The appraisal will cover performance during the financial year. The
format and process of appraisal will be the same for all functions and
similar for all levels of executives.

 The appraisals form is to be filled by all executives who have served for
period of at least 3 months in the organization during the financial year.

- 76 -
Performance appraisal for non-executive:

There will be different formats for assessment as per the following board
categories:

 Supervisory

 Secretarial & Office Personnel

 Workmen

 Workmen: Unskilled Personnel

- 77 -
INDUCTION

Induction program plays an essential role to orient the employee as soon as he


joins the company. It helps to orient the employee to the company and its tasks,
to understand his/her role with other roles in the company. To help him
understand the expectations of other employees from him anted to give him a
feel of good organization and feel a part of it. It focuses on understanding of
organizations, its vision and mission, the place of his role in the organization’s
mission etc. NTPC has its own culture, norms, and value system. It is one way in
such culture and traditions are established and maintained through socialization
of new employees in to the culture of the company.

Orientation Programme

After completing all the formalities of the recruitment formalities, the trainees
report at the Power Management Institute and on joining they will be given a
detailed briefing about the training plan. Training Kits, ties/scarves will also be
distributed.

 Induction Programme

The training programme will commence with a formal inauguration by the


Honorable Minister of Power followed by one week of Induction and Orientation
module at Corporate Center to acquaint the trainees about the corporation’s
aims, objectives, plans and functions of various departments.

- 78 -
On completion of Induction and Orientation programme, trainees will be divided
in small groups based on the total joined to undergo further training at various
Project Training Institutes like Singrauli, Korba, Ramagundam, Farraka,
Vindhyachal and PMI which are fully equipped with necessary infrastructure for
training.

Induction Manual

Induction manual is handed over to all new recruits for better adjustments to new
environment. It contains information of all departments to new environment,
groups of NTPC. A brief history, financial highlights members of Board of
Directors.

- 79 -
WELFARE

Labour welfare activities include anything done for the intellectual, physical,
moral, economic and social betterment of employees. The activities includes
nutrition, medical, housing, education, co-operative society, rest and
recreation, washing facilities, clock rooms, cultural activities, sports facilities,
picnic, holiday fares, transport, family welfare, coaching classes, regional /
cultural meets and community development etc.

Kawas Employee Welfare Association (KEWA) provides welfare facilities to


its employee through various agencies.

 Sangam Club

 Swati Ladies Club

 Women Cell

 Sports Council

1) Recreational and Cultural Activities: a leisure time activity, which is a


healthy diversion and spare time occupation. It refreshes and individual mentally,
lessens the monotony and drudgery of this every day work, and develops his
personality on a wholesome bases.

 Annual social gathering:

In Kawas, annual social gathering is a much looked forward to event, as it


provide an opportunity to families of employees to meet one another. The
program consists of drama, group song and other variety of programmes
by employees and their family jointly.

- 80 -
 Sports:

For the entertainment of employees indoor and outdoor games are


organized during the calendar year. Various coaching are given to
employees and their family members such as Badminton, Table Tennis,
Carrom, Skitting, Swimming and Cricket etc. Every year the company
celebrates its annual Sports day and organize various competitions.

 Picnic:

Each department is encouraged to go to a picnic on a holiday. The main


objective behind this is to give an opportunity to the employees to meet
each other along with their family members and to help them to come
closer and to break the social barrier.

2) Counseling and Other Activities:


Counseling is done by the welfare office in cases of absenteeism,
indebtedness, alcoholism etc. The company also has to contract with some
schools in Surat city. The welfare office also helps the employees in getting
admission in various schools for their children.

- 81 -
HUMAN RESOURCE AUDIT

SUMMARY

Title HR Audit system


Objectives To help in conduct of audit of HR functions across
NTPC to understand the effectiveness of HR system

Salient Features 1. To be done by a team of:


- Regional Officer-Corporate HR
- Regional HR head
- Representative from Unit Technical
Services Department
2. Audit will be conducted at each station/ project
once in 3 years
3. The audit team will visit the station/ projects and
interact with various stakeholders
4. Salient points emerging from the audit will be
implemented suitably to ensure the
effectiveness of HR system

Effective Data HR Audit at units to commence from year 2007

- 82 -
ELEMENTS OF HR AUDIT

The HR audit shall be undertaken by personal interactions/discussion with HR


executives, HOHR, scrutiny of documents/records, personal interactions with
HODs/site Management Committee members, interaction with office bearers of
Unions/Associations, visit to important offices/locations and personal
observations.

The following tools would be referred and used by auditors for conducting the
audit:

I. Check-list: The check list is a comprehensive compilation of various


dimensions of various activities of HR. It highlights some questions
pertaining to an area having critical importance and also data and
documents support required to be furnished by the respective unit
against each question. The check-list is an illustrative guide to the
auditors for conducting the audit in a structured manner. However, the
auditors may explore any other areas relevant for understanding the
uniform implementation of policies, effectiveness of HR system and
processes and service delivery of HR.

II. Guideline for the auditors: The guideline enclosed, would be used
as a reference by the auditors for the scrutiny of documents, records
and interaction with HOD/ Unions and Association.

III. Visits: The auditors must visit record rooms of HR, key locations in
the offices, facilities such as canteens, recreation, rooms, executive
clubs, BAL Bhawan, ladies club and other facilities of township.

IV. Report Preparation: A sample report format is enclosed as


Annexure-III
- 83 -
V. Duration: The HR audit team should spend at least 2/3 days for
conducting the audit. However, based on the size of unit and the
issues involved, the HR audit team may spend 1-2 days more to
make in depth assessment and bring out the local issues foe
effectiveness as per the spirit and intent of the system.

PROCESS:

A) The Regional Nodal officer of corporate HR will firm up the dates of audit
and intimate to all the concerned. The Nodal Officer of Corporate Center before
audit shall obtain the following documents:

I. A copy of HR Audit System

II. All relevant papers, documents: Annexure III, Checklist,


Guideline, Report Format

III. Findings of surveys, areas of concern with action plan

IV. MOU, HR Score card initiatives and targets for relevant


period.

B) The concerned Nodal Officer shall forward a copy of check list to the unit
at least 3 weeks in advance for preparation. The unit would compile all
such data and keep ready for handing over to the audit team.

- 84 -
C) After completion of the audit, the report must be submitted as per the
schedule and timeline of system in the prescribed format with a brief
summary of the findings indicating the good work/achievement, the areas
of improvement and suggestions feedback.

D) HRD group would compile the audit report of all the units covered in the
year and make a presentation on findings with brief draft action plan for
redressal unit wise and organizational level. The final action plan as
approved would be drawn and circulated for implementation.

HRD group shall put up the quarterly progress and status report to director (HR)
on the areas of audit.

WAGE & SALARY ADMINISTRATION:


Wage is the remuneration paid for the service of labour in production periodically
to an employee/worker. “Wages” usually refers to the hourly rate paid to
such group as production and maintenance employees (Blue collar).

On the other hand, “Salary” normally refers to the weekly or monthly rates
paid to electrical, administrative or professional employee (white collar).

Wage and Salary Administration refers to implementation of sound policy and


practices of employee compensation. Wage and Salary Administration is
concerned with the financial aspects of needs, motivation and rewards.
Managers, therefore, analyse and interpret the needs of their employees so that
reward can be individually designed to satisfy these needs. It has been rightly
said “People do what they do to satisfy some need, before they do anything
they look for a reward or pay

- 85 -
SCALES OF PAY

Pay Scales of Executives (Effective from 1.1.97).

Scale Pay Scale (Rs.) Representative Designation


Code

El 10750-16750 Asstt. Engineer/Asst.


Officer
E2 11225-17250 Executive Trainee/Sr. Astt.
Engineer/
Sr. Asstt Officer

E2A 12000-17500 Engineer/Officer

E3 13750-18700 Senior Engineer/Sr. Officer

E4 16000-20800 Deputy Manager/ACDE/Deputy


Supdt.

E5 17500-22300 Manager/DCDE /Supdt.

E6 18500-23900 Senior Manager/Chief


Manager/CDE/Sr.Supdt.

E7 19000-24750 Deputy General Manager

E7A 19500-25600 Addl. General Manager

E8 20500-26500 General Manager

E9 23750-28550 Executive Director

- 86 -
Pay Scales of Supervisors (Effective from 1.1.1997)

Scale Pay Scale (Rs.) Representative Designation


Code

SI 7300-12660 Jr. Controller/Jr. Foreman/


Jr. Supervisor/Jr. Accountant

S2 7900-13700 Assistant Controller Gr.II/


Foreman Gr.II/Supervisor Gr. II
Accountant
Gr.II/Private Secretary Gr II

S3 8600-14920 Assistant Controller Gr.I/


Foreman Gr. I/Supervisor Gr.I/
Accountant Gr. I/Private Secretary
Gr.I
S4 9300-15590 Sr. Asst. Controller/Sr. Fore-
man/Sr. Supervisor/Sr. Accoun-
tant/Sr. Private Secretary

SG 10000-16000 Selection Grade* (w.e.f 25.1.2001)

Pay Scales of Workmen (Effective from 1.1.1997) (NON


EXECUTIVES)

- 87 -
Scale Pay Scale (Rs.) Representative Designation
Code
W0 3750-5450 Unskilled

W1 4400-8430 Unskilled/Gangman/Mazdoor/
Attendant/Security Guard

W2 4700-9010 Semi-skilled/Keyman/Sr.Atten-
dant/Sr.Mazdoor/Dresser-cum-First Aider

W3 5000-9590 Jr.Operator/Jr.Technician/
Artisan/Jr. Draughtsman/
Jr. Assistant/Cook.
W4 5400-10350 Operator Gr.IV/Technician
Gr.IV/Draughtsman
Assistant Gr.IV/Steno-Typist.

W5 5800-10790 Operator Gr.III/Technician


Gr.Ill/Draughtsman /
Assistant Gr. Ill/Stenographer.

W6 6200-11200 Operator Gr.II/Technician


Gr.II/Draughtsman /
Assistant Gr.II/Sr. Stenographer.

W7 6700-11750 OperatorGr.I/Technician /
Draughtsman Gr.I/Asstt. Gr.I

W8 7300-12660 Sr. Technician/Sr .Draughtsman


Sr.Assistant.

W9 7900-13700 Master Technician Gr.II

- 88 -
W10 8600-14920 Master Technician Gr.I

W11 9300-15590

SG 10000-16000 Selection Grade**(** the selection grade has


come into force with effect from 25.1.2001)
The Grade of W11 has come into operation w.e.f. 7.4.1989.

THE RATE OF INCREMENT

Sl. Grade Rate of Increment


No.

1. W0 2.5

2. W1-W7 3.0

3. Supervisors/W8- 3.5
W11

4. Executives/Selection 4.0
Grade

ALLOWANCES:

DEARNESS ALLOWANCE:

- 89 -
 Periodicity of Revision: Quarterly: 1st January, 1st April, 1st
July.

 Period to which September-November, December-


February,

 Revision relates: March-May, June-August

The percentage Neutralization would be 100% for all employees. The D.A. would
be based on the percentage increase in the quarterly average of the AICPI for
the quarters ending, February, May, August and November respectively over
AICPI 1708 (Basis 1960 = 100).

HOUSE RENT ALLOWANCE:

House Rent Allowance is payable to the eligible employees who are not provided
with residential accommodation by the company at places where the company
has its projects units / offices.

TRANSPORT SUBSIDY:

Employees not in receipt of monthly reimbursement of conveyance expenditure


are paid transport subsidy as under;

Category of Employees per Month

Executive Rs.300/-

Supervisors Rs.280/-

Workmen Rs.190/-

SHIFT / NIGHT SHIFT ALLOWANCE:

Executive normally rostered duly in three shifts throughout the month including
Night Shift and Workmen/ supervisors working in Night shifts.

- 90 -
(A) EXECUTIVES

i) E1/E2/E3 Rs.900/- per month

ii) E3/E4 Rs.1200/- per month

iii) E5/E6 Rs.1500/- per month

(B) SUPERVISORS Rs.520/- per month

(C) WORKMEN Rs.320/- per month

WASHING ALLOWANCE:

Employees in the workman, supervisory & Executive Categories who are


provided with liveries / uniforms are entitled to washing allowance at the following
rates:

Workmen & Supervisory staff in Rs. 128/- p.m.


nursing, paramedical or fire service.
Other categories of workmen, Rs. 108/- p.m.
Supervisor & Executives.

CASH-CANTEEN-COMPENSATION INCLUDING TEA SUBSIDIES:

Employees and trainees / apprentices posted at offices / establishments, where


subsidized canteen facilities are not provided.

For employees posted in the Amount (Rs. p.m.) w.e.f.


establishment located at: 1.4.2001
- 91 -
Project, stations and in the 225+200 = 425
establishments located in ‘C’ class
cities.

Absenteeism Rate

Number of man days lost due to absent * 100

Number of man days schedule to work

= 75* 100

360

=20.83%

- 92 -
- 93 -
In Power Generating Sector, intangible good that is electricity produce rather
than any tangible goods. The demand of this product is always greater than its
supply. Hence NTPC Kawas has not adopted much marketing Strategy but it
mainly focus on customers and their requirement.

CUSTOMER FOCUS

“Customer is the most important visitor


On our premises,
He is not dependent on us
We are dependent on him
He is not an interruption to our work
He is the purpose of it.
He is not an outsider in our business
He is apart of it.
We are not doing him a favour
By serving him
He is doing us a favour by giving us an
Opportunity to do so”.

SUPPLIERS AND CUSTOMERS:

NTPC Kawas mainly purchase major raw material- FUEL like Gas and
Naphtha from its surrounding.

- 94 -
Main suppliers are:

1) GAIL (Gas Authority of India Ltd.)


2) HPCL (Hindustan Petroleum Corporation Limited)
3) ONGC (Oil and Natural Gas corporation Limited)
4) GSPL (Gujarat State Petronet ltd.)

From these suppliers NTPC purchase Fuel on contract bases. The cost of
fuel average 40 Crores per week, cost of Natural gas for producing 1 unit
is around 1 Rs while Spot gas is around 4 Rs per unit. If gas is not
available and customer is ready to pay high amount then NTPC go for
NAPTHA, whose cost is 6 to 7 Rs.

Major Customers Are:

1) MSEB (Maharashtra State Electricity Board)


2) MPSEB (Madhya Pradesh State Electricity Board)
3) GSEB (Gujarat State Electricity Board)

PRODUCTS AND SERVICES:

The delivery of product from NTPC Kawas has always been in line with the
core value of the organization to meet customer requirements. WRLDC, the
agency responsible for the grid management has included the views of NTPC
Kawas in its recovery procedure for western region considering that NTPC
Kawas station has a reliable black street facility.

- 95 -
The overhauling schedules of the units are adjusted to meet customer’s
seasonal power requirement. In the hours of crisis, beneficiaries rely on
NTPC Kawas for extra power.

We also have a major contribution in maintaining the quality of product. The


number of messages as well as number of revisions in schedules received
from WRLDC and the response of NTPC Kawas using the real time load
management system is the clear indication that we are responsive to their
messages and schedules. Also it is a measure of the contribution of NTPC
Kawas in maintaining the quality of the product.

GATHERING AND MISUNDERSTANDING MARKET


INFORMATION:

NTPC’s business is divided into five regions and information in these regions
are gathered by various groups keeping in view the regional current demand,
future growth of population, industry expansion, agricultural growth, growing
standard of living, etc. Based on these information 15year corporate plan, five
year plan to coincide with GOI’S PLAN SND Annual plan are made, to have
balanced growth of power sector in India.

COMPETITIVE ENVIRONMENT:

NTPC Kawas is an important partner of western regional grid which has a


total installed capacity of 32,179 MW comprising of thermal, hydro, nuclear,
wind and gas. NTPC Kawas has 656.2 MW gas turbine based generation
capacity. Mix-fuel firing facility in gas turbine and a black start facility of
2.85MW to provide essential power during the grid failure and help in power
- 96 -
restoration during major grid collapses are its unique technical features and
competitive advantages. With this facility, Kawas have come forward to
restore the grid on many major failures in western region. The high
availability, quick starts up and fast loading capability, strong dispatch
network ensures the demand for generation by NTPC Kawas in various
normal as well as in emergency situations. With the passage of electricity bill
and successful conclusion of tri-partile agreement at govt. of India level, the
receivable position has improved. To maintain the competitive edge, NTPC
Kawas has sourced spot R-LNG from HP, GSPC & GAIL since year 2006.
NTPC Kawas regularly participates in the various operational and policy
review meetings conducted by WRPC where regular exchange of industry
statistical data and issues for generation, transmission and realization are
discussed and applicably resolved.

EXTERNAL IMAGE AND BRANDAWARENESS:

NTPC has been chosen as the pioneering company for APDRP, which helps
in system strengthening and augmenting the dwindling resources of the
customer’s of NTPC Kawas resulting into better power scenario in the country
NTPC, being a member of world energy council is occupying an important
position in India and effectively contributing for sustainable growth of power
through review, research and adopting energy efficient technology. Besides
these, NTPC Kawas actively associates itself for community development,
participates in SGCCI organized industrial exhibition, holds vendor
development programs to achieve its brand awareness through stakeholders.

- 97 -
PERFORMANCE OF COMPETITORS AND BEST IN
CLASS:

As a part of our strategy and NTPC Kawas being a SBU we try to capture the
data related to our competitors activity. The performance data are analyzed
systematically in various forums like ORT, RMCM, MCM wherein gaps are
analyzed and tactics are chalked out to bridge them. NTPC Kawas has
carried out many bench marking projects in comparison with competitors and
best in class associates like BPCL, KRIBHCO,GNFC, GPEC, ESSAR and
also with NTPC other station. The CRM Group at WRHQ also analyzes the
performance of our competitors and the data is made available as guidance
for review and updating policy and strategy of NTPC-Kawas.

ALIGNING WITH PARTNER CORE COMPETENCE:

NTPC has been analyzing the core competencies of several associate


companies like UPL, ABB, BHEL, SEB’s to form joint venture and alliances in
project management, consultancy, renovation and modernization and
maintenance of power plant. Core competencies of this associates have been
identified as power equipments technology, project management and
information, world class operation standards, potential plant requiring
renovation to augment capacity addition etc.

- 98 -
EXTERNAL PARTNERSHIP ARE MANAGED:

NTPC Kawas is committed to the corporate mission of providing reliable and


quality power at competitive prices as well as being a socially responsible
corporate entity. We have mutually beneficial partnership on both the
organizational And community fronts for realization of our mission and core
values.

FORMING SUPPLY CHAIN PARTNERSHIP:

The key requirement of our customers is supply of electricity at lower cost.


Some examples of partnership resulting into substantial cost savings are
supply of NGL through dedicated pipeline laid by HPCL, rate contracts for
supply of bulk chemicals, etc. further we have developed alternate sources of
repair of critical GT components and also in the process of developing of
alternate sources for supply of critical components. In addition to this we have
developed some alternate sources of materials of proprietary nature by which
we have had cost advantage of Rs. 353.24 Lakhs during last four years.

- 99 -
4Ps
Of
Marketing

P P
P R
P R
R I
L O
O C
A M
D E
C O
U
E T
C
I
T
O

- 100 -
PRODUCT

Electricity is the flow of electrical power or charge. It is a secondary energy


source which means that we get it from the conversion of other sources of
energy, like coal, natural gas, oil, nuclear power and other natural sources, which
are called primary sources. The energy sources we use to make electricity can
be renewable or non-renewable, but electricity itself is neither renewable nor
non-renewable.

Electricity is a basic part of nature and it is one of our most widely used forms of
energy. Many cities and towns were built alongside waterfalls (a primary source
of mechanical energy) that turned water wheels to perform work. Before
electricity generation began over 100 years ago, houses were lit with kerosene
lamps, food was cooled in iceboxes, and rooms were warmed by wood-burning
or coal-burning stoves.

Electricity is measured in units of power called watts. It was named to honor


James Watt, the inventor of the steam engine. One watt is a very small amount
of power. It would require nearly 750 watts to equal one horsepower. A kilowatt
represents 1,000 watts. A kilowatt-hour (kWh) is equal to the energy of 1,000
watts working for one hour. The amount of electricity a power plant generates or
a customer uses over a period of time is measured in kilowatt-hours (kWh).

- 101 -
PRICE

Electricity rates are set through a process called a General Rate Application. The
Application is prepared by the Corporation and is considered and approved with
or without amendments by the Public Utilities Board. The process of preparing
and filing the Application involves considerable community and customer
participation.

Most communities are supplied with electricity which is generated using diesel
fuel. The fuel cost represents about 33% of the total cost and is directly
determined by world oil prices. The cost of operating and maintaining the
generating power plant and the distribution system adds a further 47%. These
are the major costs and because most communities have a small customer base
there is little opportunity to drive costs down through economy of scale.
Therefore the combination of the high fuel and operating expense, with high
costs of facilities and fewer customers to share the costs, makes the cost of
electricity higher and reverse is also true..

- 102 -
PLACE

To solve the problem of sending electricity over long distances, William Stanley
developed a device called a transformer. The transformer allowed electricity to
be efficiently transmitted over long distances. This made it possible to supply
electricity to homes and businesses located far from the electric generating plant.

The electricity produced by a generator travels along cables to a transformer,


which changes electricity from low voltage to high voltage. Electricity can be
moved long distances more efficiently using high voltage. Transmission lines are
used to carry the electricity to a substation. Substations have transformers that
change the high voltage electricity into lower voltage electricity. From the
substation, distribution lines carry the electricity to homes, offices and factories,
which require low voltage electricity.

- 103 -
Power market structure

- 104 -
MARKETING ENVIRONMENT

1) THE DEMOGRAPHIC ENVIRONMENT

* WORLDWIDE POPULATION GROWTH


The world population is showing explosive growth: It totaled 6.1 billion in 2000
and will exceed 7.9 billion by the year 2025. It will effect directly on the demand
of electricity. As the population increases the consumption of power supplied by
companies also swelled up.

2) ECONOMIC ENVIRONMENT

* DIESEL FUEL:
Prices have increased dramatically, as high as 75%. This is causing major rate
pressures in communities that rely on diesel for their generation. NTPC has
worked to minimize this impact to the extent possible (see sidebar); however, in
many of the communities served by NTPC, similar to other remote parts of
Canada, there are no practical alternatives to generating power with diesel fuel.

* INCREASED REGULATION AND TIGHT LABOUR AND


CONTRACTOR MARKETS:
Safety, environment, human rights, access to information and fuel facility
standards are just some of the areas where regulation has grown since the last
rate application. Responding to changes in regulation requires both human and
financial resources and NTPC’s 2006/08 rate application includes resources to
help it meet its obligations under the new regulation regimes.
Markets for labour are extremely tight today, with wages for skilled
workers (and now contractors) at unprecedented levels. This reflects the labour
markets in Alberta and BC for skilled workers for the oil patch and Olympics, as
well as utility competition for workers such as line trades. As a recent example,
- 105 -
one utility in Canada has a national line trades recruiting program underway,
including major signing bonuses. With respect to contractors, NTPC in many
cases now has difficulty soliciting sufficient bids for many projects, and bids often
contain constraints on timing or pricing that were unheard of until recent years.

3) NATURAL ENVIRONMENT

* FUEL SUPPLY UNCERTAINTY


The most significant issue is uncertainty about the availability of natural gas for
electricity generation. Renewable energy sources and distributed
generation, whilst making a contribution, are unlikely to obviate the
need for additional thermal power generating plant and its
accompanying fuel requirements.

Fossil fuels will be required to operate the thermal power plant needed to:

Augment hydropower production during dry periods (hydro firming, particularly in


late summer/autumn);

- 106 -
- 107 -
LAY OUT PLAN OF F&A RECORD ROOM

A-18 A-17 A-16 A-15 A-14 A-13 A-12 A-11 R-27 R-26

A-19 R-25
R-22 R-21 R-20 R-19 R-18 R-17
A-20 R-23 R-13 R-14 R-15 R-16 A-10
R-12

A-21 A-9
R-11 R-10
R-24 R-9 R-8 R-7
A-22 A-8
R-2 R-3
R-1 R-4 R-5 R-6
A-23 A-7

A-24 A-25 A-26 A-1 A-2 A-3 A-4 A-5 A-6

- 108 -
- 109 -
ORGANIZATIONAL CHART

Mr. S K DAS,
Chief Finance
Manager

Mr. Prabhakar Goal


Mr. MVVS Prasad Mr. Garde F.O.
Sr. Manager Manager finance Books, Cash & Bank

Mr.U.Chudhrary Bhatt
Mr.S.J.Patel
Dy.Manager Mr.H.R.
Asst. Acct
Asst. Acct

Mr.Jagdish
Mr.B.Z.Patel Mr.B.C.Joshi
Asst.Acct
Asst.Acct Asst.Acct

- 110 -
RATIO
Classification of Ratios:

A) Liquidity Ratios

1) Current Ratio:
This Ratio shows short term financial soundness of the
business. A higher ratio means better capacity to meet its current obligations.
The ideal current ratio is 2:1. In case it is very high it shows the idealness of
firms.

= Current assets
Current liabilities

= Inventories + Sundry Debts + Cash & Bank Balance +Other Current


Assets + Loans & advances
Current Liab. + Provisions

- 111 -
= 25102 + 12523 + 133146 + 10580 + 40476
54221 + 16042

= 221827
70263

= 3.157: 1

2) Liquid Ratio:
This liquid ratio is a fairly stringent measure of liquidity. it is
based on those current assets which are highly liquid. Quick ratio of 1:1 is
considered as ideal. Higher the quick ratio betters the short term financial
position.

= Liquid Asset
Current Liab.

= Current Assets – Inventory – pre-paid expenses


Current Liab.

= 221827 – 25102
70263

= 196725
70263

= 2.8: 1

- 112 -
B) Solvency Ratio:

1) Debt-equity Ratio:
This ratio judges the long term financial position and
soundness of the long term financial policies of the firm. In general lower the
Debt-equity Ratio higher the degree of protection enjoyed by the lenders.

= Long Term Loan


Shareholder Fund

= Secured Loans + Unsecured Loans


Capital + reserves & surplus

= 68229 + 176615
82455 + 403513

= 244844 / 485968

= 0.504: 1

2) Total assets to Debt Ratio:


This Ratio measures the safety margin available to
the suppliers of long term debts. It measures the extent to which debt is being
covered by assets.

= Total Assets
Long Term Debts

= 737380 / 244844
= 3.012: 1

- 113 -
C) Turnover Ratio:
1) Stock Turnover ratio:
This ratio measures how fast the stock is moving
through the firm and generating sales. Higher the ratio, the more efficient
management of inventories and vice-versa.
= Cost of Goods Sold
Average Stock
= Purchases + Opening Stock – Closing Stock
(Opening Stock + Closing Stock) / 2
= 198181 + 23405 – 25102
(23405 + 25102) / 2
= 196484
24253.5
= 8.101 Times
2) Working Capital Turnover Ratio:
This ratio shows the number of times the working capital has
been employed in the process of carrying on of business. Higher the ratio better
the efficiency in the utilization of working capital.
= Sales
Working Capital
= 325952
221827 – 70263
= 325952 / 151564
= 2.15 Times
D) Profitability Ratio:
i. Gross Profit:
This ratio indicates the relationship between gross profit and net
sales. Higher ratio, low cost of good sold.
= Gross Profit * 100
Net Sales

- 114 -
= (325952 – 198181) * 100
325952

= 127771*100 / 325952

= 39.20 %

2) Net Profit Ratio:


This ration indicates the overall efficiency of the business. Higher
the net profit ratio, better the business.

= Net Profit *100


Net Sales

= 68647 * 100
325952

= 21.06 %

BUDGETING:

There are three types of budgets NTPC use to prepare:


1) Direct Capital Outlay (DOC) / Construction / Capital Budget
2) Miscellaneous Bought out Assets (MBOA) Budget
3) Operation and Maintenance (O&M) Budget

1) CAPITAL BUDGET:
The sum established by the owner as available for
construction of the project, including contingencies for bidding to contractors and
- 115 -
for changes during construction. Those investments which give us the benefits
for 10 – 15 years are taken into consideration.

2) MISCELLANEOUS BOUGHT OUT ASSETS (MBOA)


BUDGET:
The nature of this budget is also capital but the duration of
time is different from that. Those assets which have considerably frequent
purchases and have 2 – 4 years life time are taken. EX.
• Air conditioner
• Computer
• Benches
• Vehicles

3) OPERATION AND MAINTENANCE BUDGET (O&M):


Annual budget for activities related to controlling,
operating, managing and maintaining the sewer system. Those expenses which
are recurring in nature are taken into this budget. EX.
• Employee cost
• Training
• Repair & Maintenance
• Security charges
• Power charges
• Insurance from all Dept.
• Chemical & water from Chemistry Dept.

- 116 -
- 117 -
Working at NTPC was a unique experience. The help provided by each and
every person on every level was very appreciable.
NTPC is having structured grading system. Candidates are put in specific grade
based on qualification and experience. This decrease dissatisfaction as people
having same qualification and experience are in to the same grade and structure
which is common reason of dissatisfaction and turnover in most organization.
During my training of 2 months, I have learnt all the aspects of all the
departments of NTPC very clearly.
This experience has certainly helped me in complementing my theoretical
knowledge with a practical learning and ensures me a smooth transition into the
professional world once I finish my post graduation.
I would like to thank everyone for this experience.

BIBLIOGRAPHY:

- Personal interview:-
For Production Mgmt.: Mr. K.L. Meena
For HR Mgmt.: Mr. Akhil Pattnaik
For Marketing Dept.: Mr. S.R. Singh
For Finance Dept.: Mr. Prabhakar Goel

- 118 -
- www.ntpc.co.in
- www.pmintpc.com
- www.wikipedia.com

Annexure:

Dear Respondent,
We are the student of Department of B.B.A (Bachelor of business
administration); Vivekanand College for B.B.A, Surat is conducting a
summer training of for main department.
We rest assure you that the information given by you will be used
purely for academic purpose only and will not be misused and will be kept
strictly confidential.
This is our research project with an educational value so we seek
your kind support in spacing your valuable time to given us this
information.

- 119 -
Thanking you

- 120 -
ACCOLADES FOR EXCELLENCE- ZERO ACCIDENT

Received Certificate of Appreciation


By
Gujarat Safety Council & Directorate of Industrial Safety
& Health
For
“ZERO ACCIDENT” for the year 2005
On 15 Dec-06

- 121 -
ACCOLADES FOR EXCELLENCE

Won CII BE Award “Commendation for Strong


Commitment to Excel 2005”

- 122 -
Won CII BE Award “Commendation for Strong
Commitment to Excel 2007

- 123 -
- 124 -