INCENTIVE SCHEMES

I. INCENTIVE SCHEME FOR NATIONAL/ALL INDIA AWARDS All full time employees are entitled to one special increment on receiving the prescribed National/All India Award from the date it is actually conferred. This is treated as personal pay and remains fixed and is paid as a separate element of pay during the entire service in the company. II. INCENTIVE SCHEME FOR PROMOTING SMAL L FAMILY NORMS SCOPE & COVERAGE All full time employees on regular rolls of the company are covered under the scheme. Lien holders and deputationists are entitled only to the medical facilities provided under the scheme. The incentive is admissible to the eligible employees who are in the reproductive age group (as defined in the rules), for sterilisation of self or spouse and for taking recourse to IUCD insertion in case of female employees/spouse. FINANCIAL INCENTIVES A. CASH (lumpsum)

a) For sterilisation operation ----------------------------------------------------------------------------------Employees having ----------------------------------------------------------------------------------Less than 3 children More than 3 3 children children ----------------------------------------------------------------------------------Female employees Rs. 400/Rs. 150/Rs. 150/Rs.120/Rs. 120/-

Male employees/ Rs. 200/spouses of female employees/spouses of male employees

-----------------------------------------------------------------------------------

b)

for IUCD insertion:Rs. 10/The cash (lumpsum) incentive is inclusive of the incentive admissible, if any, under the appropriate State/Central Government Schemes.

B.

SPECIAL INCREMENT

----------------------------------------------------------------------------Category of Employees Number of annual Increment(s) ----------------------------------------------------------------------------i) Workmen in the grades of W1 to W6 3

-----------------------------------------------------------------------------Category of Employees Number of annual Increment(s) -----------------------------------------------------------------------------ii) Workmen in the grades of W7 & above and all supervisors All executives

2 1

iii)

-------------------------------------------------------------------------------The Special Increment allowed to employees for undergoing sterlisation operation earlier to 31.12.96, will be revised w.e.f. 1.1.97 to an amount equivalent to 1/2/3 increment(s) at the minimum of the scale (at the relevant percents of the minimum of the revised scales) corresponding to the pay scale of the post against which the employee had earned the Special Increment in the pre-revised scale of pay. The other terms and conditions in this regard will remain the same. In respect of employees who become entitled to Special Increment on or after 1.1.97, the rate of the same would be revised on the basis of the applicable revised rate of increment. This is treated as personal pay and remains fixed and is paid as a separate element of pay during entire service in the company. C. SPECIAL CASUAL LEAVE

Provision also exists in the Rules for allowing special casual leave upto 7 days for pursuing small family norms.

III.

INCENTIVE FOR ACQUIRING PROFICIENCY IN HINDI/HINDI TYPEWRITING AND HINDI STENOGRAPHY ELIGIBILITY Incentives for learning Hindi are admissible to those employees only whose mother-tongue is not Hindi provided they have not already passed examination(s) in Hindi. Incentives for learning Hindi typewriting and Hindi Stenography are admissible to those employees who have to do stenography and/or typing work provided they have passed prescribed examination(s) in Hindi. INCENTIVES (a) Monthly Payment : On passing the Hindi examination with minimum prescribed percentage of marks an employee gets one increment for a period of 12 months. For Hindi Stenography, incentive is payable at twice the rate of increment, in his pay scale for an initial period of 12 months & for the next 12 months at the rate of one increment in his pay-scale. b) 1.0 A) (i) (ii) (iii) B) Financial Incentives LEARNING HINDI Cash Award For Securing : 70% marks or more 60% marks or more but below 70% 55% marks or more but below 60% LUMPSUM AWARD (FOR LEARNING HINDI THROUGH ONES OWN EFFORTS) Rs. 400/- Rs. 600/- Rs. 600/Rs. 200/- Rs. 400/- Rs. 400/Rs. 100/- Rs. 200/- Rs. 200/Prabodh Praveen Pragya

Rs. 375/- Rs. 375/- Rs. 450/-

2.0

FOR LEARNING HINDI TYPEWRITING CASH AWARD For securing : i) ii) 97% marks or more 95% marks & above but below 97% Rs. 600/Rs. 400/-

iii) 3.0

90% marks or more but below 95%

Rs. 200/-

FOR LEARNING HINDI STENOGRAPHY CASH AWARD For securing : i) ii) iii) 95% marks or more 92% marks or more but less than 95% 88% marks or more but below 92% Rs. 600/Rs. 400/Rs. 200/-

Other Facilities i) ii) iii) Prescribed text books under the scheme provided free of cost. Examination fees, if any except in case of private candidates is reimbursed. Special Casual Leave for the days of actual appearance in the examination(s).; and in case of travel to outstation, for period spent on journey to and from the place of examination. TA/DA or local examination(s). travelling expenditure, for appearing in Hindi

iv) IV.

INCENTIVE FOR ORIGINAL NOTING/DRAFTING IN HINDI FOR OFFICIAL USE COVERAGE All full time employees except Hindi Stenographers/Typists, Hindi Officers, Translators and those who are covered under some other Hindi Incentive Scheme. CASH AWARD

Subject to the fulfilment of the terms and conditions prescribed under the Scheme, the following amounts of cash awards are granted for each project/Corporate Centre/Regional Offices: First Prize (3) Second Prize (4) Third Prize (5) Consolation Prize (10) Rs.750/-each Rs.500/-each Rs.250/-each Rs.150/-each

V.

INCENTIVE SCHEME FOR GIVING DICTATION IN HINDI Eligibility : All executives who have been provided Secretarial Assistance or who generally give dictation. Incentives : An incentive of Rs. 1000/- will be given to an executive who gives the maximum number of dictations in a year. There will be two awards : One for executives who have declared their Home Town in Region A & B and the other for those who have declared their Home Town in Region C

VI.

INCENTIVE SCHEME FOR WRITING BOOK ON TECHNICAL SUBJECTS IN HINDI ELIGIBILITY All regular as well as super annuated employees of the company excluding employees working with the Hindi section in NTPC projects/regions/stations and corporate center. CASH AWARD Subject to the fulfilment of the terms and conditions prescribed under the scheme, the cash awards to be granted are as follows:First Prize Second Prize Third Prize Consolation Prizes (5) Rs.10,000/Rs. 8,000/Rs. 5,000/Rs. 2,000/- each

VII.

NTPC INCENTIVE SCHEME FOR USE OF HINDI IN OFFICIAL WORK ELIGIBILITY All full time employees of the company except the employees of Hindi Section of the offices. Those employees who write 3 notes/letters per day/day to day official work in Hindi on 180 notes per quarter in Hindi or 30% or more of official work done by senior executives in Hindi will be eligible under this scheme. INCENTIVE An incentive allowance equivalent to one increment will be payable till the time the employee continues to work in Hindi and achieves the requisite standard. The incentive will be counted as a separate element and shall not be counted as pay for any other purpose, whatsoever.

VIII.

INCENTIVE SCHEME OF HINDI ALLOWAN CE TO STENOGRAPHERS AND TYPISTS ELIGIBILITY Stenographers/typists/personal secretary/personal astt. working on computer who know English shorthand/typing and are actually doing their official work in Hindi, in addition to English. * * No. of notes/drafts typed in Hindi - 150 Nos. Typing on Hindi typewriter/Devnagri computer in each quarter - 150 Nos.

INCENTIVE On typewriter On computer Rs.250/- p.m. Rs.300/- p.m.

Typing on typewriter/computer by other employees : On typewriter On computer IX. Rs.200/- p.m. Rs.250/- p.m.

INCENTIVE FOR ACQUIRING HIGHER/ADDITIONAL QUALIFICATIONS All Regular employees subject to certain eligibility conditions as prescribed under the Rules, who acquire prescribed qualifications significantly relevant to the functional area of responsibility are eligible to a lumpsum award varying from Rs.1500/- to Rs.10,000/-, depending upon the qualification. In addition, examination fees are also payable in respect of final and intermediate or part/section examination only once for the same examination to the employee.

X.

EMPLOYEES SUGGESTION SCHEME The basic premise underlying the Scheme is that the employee closest to the job is perhaps the best person to suggest changes for improving performance. The Scheme aims at utilizing the abilities of the employees by encouraging them to make suggestions and rewarding them. All employees of the Corporation may make suggestions under the Scheme. However, employees of supervisory and workman categories and executives upto the level of E6 only are eligible for monetary awards. Suggestions can be made in specified areas and the quantum of awards can be upto Rs.15000/- depending on the nature of the suggestions. Besides, nonmonetary incentives are also given in the form of commendation certificate, photograph/report in the house journal etc.

XI.

QUALITY CIRCLES : MOTIVATIONAL SCHEMES With renewed emphasis given to the Quality Circle activities in NTPC for harnessing the inherent creative talent of our work force called for introduction of novel Motivational Schemes to not only encourage formation of new Circles but also to seek committed participation on a continuous basis in QC activities. Developed in-house, Motivational Schemes provide ample guidelines for providing extensive training and other resources support. The Scheme lays special emphasis on giving recognition and awards to meritorious QC members through a system of contests to be organised at Project level, Regional level and National level. Healthy competitive spirit is in-built in the Motivational Schemes and provides for participation in reputed QC events and encouragement through 'Study Tours' to other industrial organisations in India as well as abroad.

XII.

NTPC OPEN COMPETITION FOR EXECUTIVE TALENT (NOCET) Objective To develop general management skills among junior/middle level executives. To encourage creativity and innovative thinking. To enhance presentation skills. To encourage teamwork and build team spirit. Eligibility The competition, which is on an annual basis, is open to all executives upto and including the level of Senior Manager and will be amongst teams consisting of a maximum of four executives belonging to the same project/unit/office. Procedure The theme of the competition, which would be of general nature and of topical interest and relevant to business management, would be declared in the beginning of the year. The competition would have a three-tier structure. Initial entries will be evaluated/judged at the unit level, then winning teams would compete at regional level and finally the victorious teams from the regional competition vie for the top honours at Corporate Center in the last phase of the contest. Each team would be required to make written and oral presentations on the theme of the competition. Initially, they would have to submit the written presentations (4000-5000 words). The presentation should preferably be based on ideas and innovative approach backed by analysis of data from pertinent sources, including organisational examples wherever applicable. A Panel of Judges would evaluate the presentations at each stage. The competing teams will have the freedom to modify their original presentations, at each successive stage.

Awards Each member of the team winning the Regional / Company level competition will receive a cash prize of Rs. 2000 / 5,000 and a certificate/scroll of honour. The team winning the finals at Corporate Center will also be awarded a Running Shield/Trophy. XIII. GENERATION INCENTIVE SCHEME OBJECTIVES (a) (b) Maximization of generation of Electrical energy through optimum utilization of installed plant capacity and other allied resources. Reduction of cost per unit of energy generated as well as reduction in absenteeism.

APPLICABILITY The Scheme covers all regular employees of NTPC directly or indirectly engaged in Generation of Electricity. The Scheme will not be applicable to : (a) (b) Apprentices under Apprentices Act and Trainees Casual or daily rated employees

FACTORS FOR INCENTIVE PAYMENT Actual Gen. (MU)+Shortfall in Gen. due to backing down (MU) (i) EAF(%) = --------------------------------------------------x100 Generation (MU) at installed capacity (ii) Specific Oil Consumption linked Incentive/ Dis-incentive

GENERATION LINKED INCENTIVE BASED ON EAF % (i) The EAF% based Generation Incentive Scheme will have monthly, quarterly and yearly components of payment linked with the prescribed performance levels i.e. EAF%. The Thresh-hold level is 70% EAF with 7.5% of basic pay as incentive payable, inclusive of monthly, quarterly & yearly components. Similarly, the cut-off level at 88% EAF with 25% of basic pay as incentive payable inclusive of monthly, quarterly & yearly components. There is a provision of extra weightage for generation during Peak hours over the generation off-peak hours while calculating quarterly and yearly EAF% and corresponding incentive rate.

(ii)

INCENTIVE LINKED TO OIL CONSUMPTION FACTOR - APPLICABLE TO COAL BASED STATIONS ONLY The incentive will be payable monthly only to the employees in O&M areas under Group-A, if the Specific oil consumption of the station is 2.50 ml/kwh or less in a particular month. Similarly, there will be dis-incentive if the Specific oil consumption of the station in any month exceeds 4.99 ml/kwh. There will be no incentive/dis-incentive between 2.50 ml/kwh to 5.0 ml/kwh. The incentive/disincentive on account of Sp. Oil consumption will be effected only when the base level generation i.e. 70% EAF is achieved. CLASSIFICATION OF EMPLOYEES & QUANTUM OF INCENTIVE The payment to employees in different groups and phases will be as under : Category/Group Direct Category (Group-A) Rate of Incentive 100% of Incentive payable on EAF%. In addition employees under this category would also be entitled in Incentive for Specific Oil Consumption. 75% of Group 'A' rates applicable for EAF only. (When only Generation Incentive in operation) 60% / 30% of Group 'A' rates applicable for EAF only. (When both Project Inc. & Gen. Inc in operation).

In-Direct Category (Group-B-I) In-Direct Category (Group-B-II (a/b)]

Deptt./areas under each group will be as under :Deptt./Areas under Direct Category (Group-A) Operations, Chemistry, Fuel Handling, Fuel Transportation/MGR, Maintenance Planning, O&E, Mechanical, Electrical and C&I Maintenance (Excluding ministerial staff and drivers) Deptts./Area under Indirect Category (Group-B-I/B-II) (a) Head of Project, Commercial, Plant Civil Mntc, R&M, Township Civil & Electrical Mntce., Autobase, Const. Workshop, HR, R&R, F&A, Energy Conservation Materials & Contract Serv., Technical Services, EDP & SCN/ Communication, Safety, Tel. Exchange, Medical, EMG, Ash Utln., ETP, Vigilance. All ministerial staff and drivers including those posted in O&M (b) Erection & Civil Construction

OTHER GENERAL CONDITIONS The employees will be entitled to incentive payments