ashok dwivedi mba marketing project

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“NATIONAL THERMAL POWER CORPORATION LTD.” PROJECT REPOR ON UNDERSTANDING THE organization STRATEGIES OF NTPC” Submitted for the partial fulfillment of the degree of MASTER OF BUSINESS MANAGEMENT & PGPM From TILKMAHARASTRA University PUNE Submitted to:- Submitted By:- NTPC HRD CENTRE ASHOK KUMAR DWIVEDI Vindhyanagar, Dist. Singrauli(MP)

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This is internship project of MBA marketing at National Thermal Power Corporation Ltd. Vindhynagar M.P.

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“NATIONAL THERMAL POWER CORPORATION LTD.”

PROJECT REPOR

ON

“UNDERSTANDING THE organization STRATEGIES OF NTPC”

Submitted for the partial fulfillment of the degree of

MASTER OF BUSINESS MANAGEMENT & PGPM

From

TILKMAHARASTRA University PUNE

Submitted to:- Submitted By:- NTPC HRD CENTRE ASHOK KUMAR DWIVEDI

Vindhyanagar, Dist. Singrauli(MP)

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 2

Date:-………

Guide Certificate

This is certify this project report entitled “understanding the

organization Strategies of NTPC” Has been prepared by Mr. Ashok Kumar Dwivedi session 2009-2011in

partial fulfillment for the requirement for the master degree

Of “Master Of Business Administration” from Tilak Maharashtra

Vidyapeeth, Pune under my supervision and guidance and recommend

that it nay be accepted for examination

I wish him all success for his butter future

Under guide‟

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 3

index

S.N TOPIC PAGE NO.

Guide‟s certificate 1

Organization‟s certificate

Preface 4

Acknowledgement 5

Objective of the study 6

Methodology 7

Limitation of study 9

Scenario of power sector in india 20

Introduction of NTPC 27

Overview of NTPC power plants 35

Awards and accolades won by NTPC 39

Introduction to VSTPP 42

Material management system at NTPC 50

Risk management 57

„5s‟ Pledge 60

Questionnaire 66

Finding&Conclusion 71&72

Bibliography 73

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 4

Preface

An organization oriented at growth, looking ahead, aiming high, with clarity of

vision and mission. Lightening one fourth of the nation, NTPC India‟s largest and

premiere power company, playing its leadership roles. With its ambitious growth

strategy and successful corporate plan, NTPC is pursuing the path of excellence.

Making the best use of available resources and thereby powering India‟s growth.

I got the opportunity to do my vocational training at NTPC Vindhyachal, Dist-

Singrauli, Madhya Pradesh, which is a great achievement for me. I have worked

with my full dedication and determination.

I have made this report in a simple manner covering the Overview of Power

Sector Scenario, study of different aspects of NTPC and different working

methods & manuals which reflects the Business Strategies of NTPC,

Vindhyanagar including supporting documents.

I have made all my sincere efforts to complete the project within the stimulated

time period and I have enjoyed my training very much.

ASHOK KUMAR DWIVEDI

AIBM,pune

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 5

Acknowledgement

With deep reverence and profound gratitude I express my sincere thanks to Mr.

R.S. Rathore (DGM, Operations) & Mr. S.K. SHARMA (Engr. HR-ED) for

giving me an opportunity to do training at NTPC Vindhynagar.

I also want to thank Mr. N.K.L. DAS (AGM, C&M), Mr. S.P. Acharya (Sr.

Manager, PURCHASE), Mr. John Philip (Manager HR-EB), who has allowed me

to do training in various departments of NTPC, Vindhyanagar.

Further, I thank to Mr. Sudeer I. (Engr. C&M planning)

Mr. Hemant Narvariya(Engr. PURCHASE) and who have properly guided me

during my training period and provided me with all the theoretical & practical

knowledge necessary for the training. At last I would like to thank Mr. Sunil

Joshi, Engr. (EMD) who has helped me at the working sites, explaining and

giving me all the information I needed to complete this report.

At last I would like to convey my thanks to all the members of the

C&M, PURCHASE, HR-EB and Coal Handling Plant, who have helped me at

every stage of training.

Ashok kumar dwivedi

Place- NTPC, Vindhyanagar Date- 10.08.2010

Dist- Singrauli

Madhya Pradesh

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 6

Objective of the Study The above study is aimed at:

To gain the overall idea about the organization.

To gain a firsthand knowledge about the structure and the functioning of the

various departments of NTPC.

To find out the financial performance of the organization.

To find out the importance of Contract & Purchases in business.

To find out the future requirements of finance in business.

To study the investment decisions based on the understanding of future

return.

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 7

Methodology The information was collected from various sources which are listed below:-

From the official documents.

From records and manuals of different departments of the organization.

From a close observation of the functioning of various departments of the

organization.

Last but not the least, knowledge, both negative and positive precipitated

through informal discussions with the employees of different departments.

Research Methodology :

Plan of Study

A proper and systematic approach is essential in any project work. Proper planning

should be done for conducting the data collection, completion and presentation of

the project. Each and every step must be so planned that it leads to the next step

automatically. This systematic approach is a blend of planning and organization

and major emphasis is given to interdependence of various steps.

The plan of this study is as follows:

A. Research Purpose: The purpose of the research was to know the criteria on

which investment of the company is raised every year and a favorable rate of

return is arrived at, increasing the net result of the company as per their

budget.

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 8

B. Research Objective : The main objective of the research is:

To know the Business strategies & investment decisions.

To analyze the investment depending on internal rate of return.

DATA PRESENTATION & ANALYSIS

Respondent: 100

1. The training centre at my unit is well equipped.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

60%20%

12%6% 2%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 9

2. Training centre at unit is well maintained.

(i) Strongly agree (ii) Agree

ii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

40%

50%

5% 3% 2%

2. Training centre at unit

is well maintained.

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 10

3. A mix of internal and external faculty takes training session at EDC.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

4. Most training needs of employees are addressed by the local EDC.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees

(iv) Disagree (v) Strongly disagree

42%

48%

5% 5% 0%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 11

5. Faculty knowledge and training methodology at EDC are to my satisfaction.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees

(iv) Disagree (v) Strongly disagree

6. Training nomination takes place as per the training needs of the employee.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees

(iv) Disagree (v) Strongly disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 12

7. Reporting officer takes active interest in training of their subordinate.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

8. Employees are given as per their development plan by their reporting officer for job rotation etc.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

33%

57%

5% 2% 3%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 13

9. Employees actively apply their learning from training at work place.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees

(iv) Disagree (v) Strongly disagree

10. Employees are given time for attending training programs.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

19%

63%

10%2% 6%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

17%

73%

2%1% 7%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 14

11. In my opinion training and development system of NTPC adds value to organization.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

12. I look forward to take up special assignment as a part of cross functional teams.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

12%

58%

12%

9%9%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

23%

57%

4%

3%13%

1 Srongly Agree

2 Agree

3 Neither Agree Nor Disagree4 Disagree

5 Srongly Disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 15

13. All employees in my department get nominated for training programs uniformly.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

14. Employees in my department almost get same number of training man days per annum.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

18%

62%

5%10% 5%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

11%

49%

23%

13% 4%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 16

15. Seniors readily share their knowledge and experience with their juniors.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

16. People openly share their knowledge and ideas with each other.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

15%

35%

4%

43%

3%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 17

17. I have imported adequate training needed to carry out my responsibility effectively.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees (iv)

Disagree (v) Strongly disagree

18. I feel NTPC as an organization is committed towards training and development of

its employees.

(i) Strongly agree (ii) Agree (iii) Neither agrees nor disagrees

(iv) Disagree (v) Strongly disagree

32%

46%

11%7% 4%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

28%

62%

5% 3% 2%

1 Srongly Agree

2 Agree

3 Neither Agree Nor

Disagree

4 Disagree

5 Srongly Disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 18

Scope and Limitations :

Research Boundaries: This study is based on the consolidated data of the

organization; as such the IRR cannot be calculated region wise.

Limitation of the study:

The time was a big constraint as the two months was a short span of time.

As the respondents are on high designations, reaching them was hectic task.

The respondents were to be reached through emails and by personal contacts

and the time were not enough to get the response about the quarries and

doubts raised.

Research design: Research design helps in proper collection and analysis of the

data. It helps in further course of action.

Research approach: The most appropriate research is Descriptive. This is

because the goal of the study is clear and a detailed research will help to

understand the concept better.

Classification of Data: The data used for this study is Primary data and

Secondary data. Primary data includes the information collected mainly from the

office. This has served as primary source of data for this study. Secondary data

includes the information gathered from various websites.

Sampling Technique: The sampling procedure employed for this project is

judgmental sampling, a convenience sampling technique in which elements are

based on the judgment of researcher.

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 19

Statistical Analysis;

Information collected was classified and tabulated for further analysis.

Calculations were done for the interpretation of the data e.g. Discount factor,

Averages, etc.

The report is covered with various data and tables on which the project has

been carried out.

Software tools used for the data analysis: The software tool used for data

analysis is MS WORD & MS EXCEL.

Limitations of the Study

The limitations faced during the summer course are:-

First – it was not possible to study various aspect of the organization in

detail.

Employees were apprehensive of secrecy of data and therefore hesitated in

disclosing all the data regarding some of the points concerning to this study.

As this is a general study, hypothesis could not be drawn.

Some executives could not afford time because of their busy schedule.

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 20

Scenario of Power Sector in India

Growth of economy calls for a watching rate of growth in infrastructure facilities.

Power sector is one of the major aspects of this infrastructure building. Some

prominent people like the Ex Chairman of GE Jack Welch have gone to the extent

of saying, “You dont have a chance to stand in the 21st century without lots of

power………Without this you miss the next revolution”.

India is the emerging giants of the world economy and international

energy markets. Energy developments in India are transforming the global energy

system by dint of their sheer size and their growing weight in international fossil-

fuel trade. India is increasingly exposed to changes in world energy markets. The

staggering pace of Indian economic growth in the past few years, outstripping that

of all other major countries, has pushed up sharply their energy needs, a growing

share of which has to be imported. The momentum of economic development

looks set to keep their energy demand growing strongly. As they become richer,

the citizens of India are using more energy to run their offices, factories and buying

more electrical appliances and cars. These developments are contributing to a big

improvement in their quality of life, a legitimate aspiration that needs to be

accommodated and supported by the rest of the world. The consequences for India,

the OECD and the rest of the world of unfettered growth in global energy demand

are, however, alarming. If governments around the world stick with current

policies – the underlying premise of our Reference Scenario – the world‟s energy

needs would be well over 50% higher in 2030 than today. China and India together

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 21

account for 45% of the increase in demand in this scenario.

Globally, fossil fuels continue to dominate the fuel mix. These trends lead to

continued growth in energy-related emissions of carbon-dioxide (CO2) and to

increased reliance of consuming countries on imports of oil and gas – much of

them from the Middle East and Russia. Both developments would heighten

concerns about climate change and energy security. The challenge for all countries

is to put in motion a transition to a more secure, lower-carbon energy system,

without undermining economic and social development. Nowhere will this

challenge be tougher, or of greater importance to the rest of the world, than in

China and India. Vigorous, immediate and collective policy action by all

governments is essential to move the world onto a more sustainable energy path.

There has so far been more talk than action in most countries. Were all the policies

that governments around the world are considering today to be implemented, as we

assume in an Alternative Policy Scenario, the world‟s energy demand and related

emissions would be reduced substantially. Measures to improve energy efficiency

stand out as the cheapest and fastest way to curb demand and emissions growth in

the near term. But even in this scenario, CO2 emissions are still one quarter 4

World Energy Outlook 2007 above current levels in 2030. To achieve a much

bigger reduction in emissions would require immediate policy action and

technological transformation on an unprecedented scale. Both the Reference and

Alternative Policy Scenario projections are based on what some might consider

conservative assumptions about economic growth in the two giants. They envisage

a progressive and marked slow-down in the rate of growth of output over the

projection period. In a High Growth Scenario, which assumes that China‟s and

India‟s economies grow on average 1.5 percentage points per year faster than in

the Reference Scenario

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 22

(though more slowly than of late), energy demand is 21% higher in 2030 in China

and India combined. The global increase in energy demand amounts to 6%,

making it all the more urgent for governments around the world to implement

policies, such as those taken into account in the Alternative Policy Scenario, to

curb the growth in fossil-energy demand and related emissions.

Moreover, the growth rate of demand for power in developing countries is

generally higher than that of GDP. In India, the elasticity ratio was 3.06 in 1st plan,

and peaked at 5.11 during 3rd plan and came down to 1.65 in 80s. For 90s a ratio

of around 1.5 was projected. Hence, in order to support a growth of GDP of around

7% the rate of growth of power supply of 10% is required. If we look at current

scenario, electricity consumption in India has more than doubled in the last decade,

outpacing the economic growth. If we analyze the various statistics of Indian

power sector, we will find that the generating capacity has gone up tremendously

from a meager 1712MW in 1950 to a whooping 112000MW today.

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 23

Generating capacity has grown manifold from 1,712 MW in 1950 to more than

112,000 MW today. At the same as a result of growing installed capacity, the

power produced has also gone up. In 1950, the total power produced by Indian

power sector was a meager 50BU and that is now 587.3BU. The Indian govt.

emphasized the need of independence in power generation and in all subsequent

five-year plans the allocated budget for power sector development was increased.

But despite all these efforts by our govt., there is an acute power shortage in the

country.

Structure of Power Supply Industry

In December 1950 about 63% of the installed capacity in Utilities was in the

private sector and about 37% was in the public sector. The Industrial Policy

Resolution of 1956 envisaged the generation, transmission and distribution of

power almost exclusively in the public sector. As a result of this Resolution and

facilitated by the Electricity (Supply) Act 1948 the electricity industry developed

rapidly in the State Sector. In the Constitution of India “Electricity” is a subject

that falls within the concurrent jurisdiction of the Centre and the States. The

Electricity (Supply) Act, 1948 envisaged creation of State Electricity Boards

(SEBs) for planning and implementing the power development programs in their

respective states. The Act also provided for creation of central generation

companies for setting up and operating generating facilities in the Central Sector.

The Central Electricity Authority constituted under the Act is responsible for

power planning at the national level. In addition the Electricity (Supply) Act also

allowed from the beginning the private licensees to distribute and/or generate

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 24

electricity in the specified areas designated by the concerned State

Government/SEB. The National thermal Power Corporation (NTPC) and

National Hydro-electric Power Corporation (NHPC) were set up for the

generation and bulk transmission of power to supplement the efforts at the State

level and took upon itself the responsibility of setting up large power projects these

purposes in 1975. North- Eastern Electric Power Corporation (NEEPCO) was

set up in 1976 to implement the regional power projects in the North-East.

Subsequently two more power generation corporation was set up in 1988 viz. Tehri

Hydro Development Corporation (NJPC). To construct, operate and maintain the

inter-state and interregional transmission systems the National Power

transmission Corporation (NPTC) was set up in 1989. The corporation was

renamed as POWER GRID in 1992.

The policy of liberalization the Government of India announced in 1991

and consequent amendments in Electricity (Supply) Act have opened new vistas to

involve private investment and the major policy changes have been announced by

the Government in this regard.

Regional Power System:

In order to optimally utilize the dispersed sources for power generation it was

decided right at the beginning of the 1960‟s that the country would be divided into

5 regions and the planning process would aim at achieving regional self

sufficiency.

Viability of SEBs:

The financial health of the SEBs will be improved through rationalization of tariff,

restructuring and reforms to make economically viable and their projects bankable

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 25

to generate energy on economic rate, to provide quality services to the consumers

and to ensure a fair return to the investors. This can be best achieved by

unbundling single entity (SEBs) and corporatizing the same for the above

activities. In this context, some of the States have taken initiative by unbundling

their respective SEBs into separate companies for Generation & Transmission &

Distribution.

Regulatory Bodies:

The Government of India has promulgated Electricity Regulatory Commission

Act, 1998 for setting up of Independent regulatory bodies both at the Central level

and at the State level viz. the Central Electricity Regulatory Commission

(CERC) and the State Levels respectively. These regulatory bodies would

primarily look into all aspects of tariff fixation and matters incidental there to.

Technology Up gradation:

Refurbishment of existing Thermal Power Station

Continuous deterioration in performance of thermal power stations had been

observed during early 80‟s. Therefore, Renovation and Modernizations Scheme

(R&M Schemes) were drawn and executed for improving the performance of

existing thermal power stations. Pollution control measures in these power stations

being a capital-intensive activity, it accounted for major portion-around 40% of

Rs.12billion kept for R&M schemes under phase-Ι. During phase-Ι, 163 units of 34

thermal power stations were covered. As a result of R&M schemes these achieved

10,000 million units of additional generation per annum against the target of 7000

million units. Encouraged by the results achieved, R&M phase-ΙΙ programme is

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 26

presently under progress. Total estimated cost of these works is Rs.24 billion. Most

of the Electricity Boards or other generating agencies are facing financial

constraints to carry out R&M activities. Therefore, this area has to be taken on

priority to arrange financial assistance.

Overview of Organization:

India‟s largest power company, NTPC was set up in 1975 to accelerate power

development in India. NTPC is emerging as a diversified power major with

presence in the entire value chain of the power generation business. Apart from

power generation, which is the mainstay of the company, NTPC has already

ventured into consultancy, power trading, ash utilization and coal mining. NTPC

ranked 317th in the 2009 by the Forbes Global 2000‟ ranking of the World‟s

biggest companies.

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 27

Introduction to NTPC

Vision:

"A world class integrated power major, powering India’s growth,

with increasing global presence."

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 28

Mission:

“Develop and provide reliable power, related products and services

at competitive prices, integrating multiple energy sources with

innovative and eco-friendly technologies and contribute to

society.”

Core Value: “BCOMIT”

• Business Ethics

• Customer Focus

• Organizational & Professional Pride

• Mutual Respect & Trust

• Innovation & Speed

• Total Quality for Excellence

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 29

NTPC Limited

(Formerly Known as National Thermal Power Corporation)

NTPC Limited is the largest thermal 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. Within a span of 31 years, NTPC has emerged as a truly national power

company, with power generating facilities in all the major regions of the country.

0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East

West

North

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 30

The total installed capacity of the company is 30, 144 MW (including JVs) with 15

coal based and 7 gas based stations, located across the country. In addition under

JVs, 3 stations are coal based & another station uses naphtha/LNG as fuel. By

2017, the power generation portfolio is expected to have a diversified fuel mix

with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW

through Hydro generation, about 2000 MW from nuclear sources and around 1000

MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged

growth strategy which includes capacity addition through green field projects,

expansion of existing stations, joint ventures, subsidiaries and takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although the

company has 18.79% of the total national capacity it contributes 28.60% of total

power generation due to its focus on high efficiency.

Establishing a Global Presence

To become a truly global company serving global markets, it is essential

for NTPC to establish its brand equity in overseas markets. NTPC would continue

to focus on offering Engineering & Project Management Services, Operations &

Maintenance services, and Renovation & Modernization services in the

international market. Establishing a successful services brand would be a precursor

to taking higher investment decisions in different markets.

Going forward, NTPC would continue to evaluate various options for

strengthening its presence in global markets including setting up power generation

capacity, acquisition of gas blocks etc. By the year 2017, NTPC would have

successfully diversified its generation mix,

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 31

diversified across the power value chain and entered overseas markets. As a result

NTPC would have altered its profile significantly. Elements of the revised profile

that NTPC would seek to achieve are:

Amongst top five market capitalization in the Indian market

An Indian MNC with presence in many countries

Diversified utility with multiple businesses

Setting benchmarks in project construction and plant availability &

efficiency

Preferred employer

Have a strong research and technology base

Loyal customer base in both bulk and retail supply

A leading corporate citizen with a keen focus on executing its social

responsibility.

Services offered by NTPC

An entire gamut of services is offered in the areas mentioned above. These are:

Owner's Engineer Services

Lender's Engineer Services

Environment Engineering and Management

Procurement Services

Project Management

Quality Assurance and Inspection Services

Materials Management

Construction Management, Erection and Commissioning

Financial Systems and Modeling

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 32

Operation and Maintenance

Restoration, Efficiency Improvement and Renovation and Modernization

HRD and Training

Research and Development

Information Technology

Management Consultancy

In October 2004, NTPC launched its Initial Public Offering (IPO) consisting

of 5.25% as fresh issue and 5.25% as offer for sale by Government of India. NTPC

thus became a listed company in November 2004 with the government holding

89.5% of the equity share capital. The rest is held by Institutional Investors and the

Public. The issue was a resounding success. NTPC is among the largest five

companies in India in terms of market capitalization.

NTPC‟s core business is engineering, construction and operation of power

generating plants. It also provides consultancy in the area of power plant

constructions and power generation to companies in India and abroad. As on date

the installed capacity of NTPC is 27,904 MW through its 15 coal based (22,895

MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects (1,054 MW). NTPC

acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This

JV company operates the captive power plants of Durgapur (120 MW), Rourkela

(120 MW) and Bhilai (74 MW). NTPC also has 28.33% stake in Ratnagiri Gas &

Power Private Limited (RGPPL) a joint venture company between NTPC, GAIL,

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Indian Financial Institutions and Maharashtra SEB Holding Co. Ltd. The present

capacity of RGPPL is 740 MW.

NTPC has set new benchmarks for the power industry both in the area of power

plant construction and operations. It is providing power at the cheapest average

tariff in the country. With its experience and expertise in the power sector, NTPC

is extending consultancy services to various organizations in the power business.

NTPC is committed to the environment, generating power at minimal

environmental cost and preserving the ecology in the vicinity of the plants. NTPC

has undertaken massive a forestation in the vicinity of its plants. Plantations have

increased forest area and reduced barren land. The massive a forestation by NTPC

in and around its Ramagundam Power station (2600 MW) have contributed

reducing the temperature in the areas by about 3°c. NTPC has also taken proactive

steps for ash utilization. In 1991, it set up Ash Utilization Division to manage

efficient use of the ash produced at its coal stations. This quality of ash produced is

ideal for use in cement, concrete, cellular concrete, building material.

A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has

been established in NTPC with the assistance of United States Agency for

International Development. (USAID). Cenpeep is an efficiency oriented, eco-

friendly and eco-nurturing initiative - a symbol of NTPC's concern towards

environmental protection and continued commitment to sustainable power

development in India.

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As a responsible corporate citizen, NTPC is making constant

efforts to improve the socio-economic status of the people affected by the its

projects. Through it's Rehabilitation and Resettlement programmers‟, the company

endeavors to improve the overall socio-economic status of Project Affected

Persons.

NTPC was among the first Public Sector Enterprises to enter into a

Memorandum of Understanding (MOU) with the Government in 1987-88. NTPC

has been Placed under the 'Excellent category' (the best category) every year since

the MOU system became operative. Recognising its excellent performance and

vast potential, Government of the India has identified NTPC as one of the jewels of

Public Sector „Maha Navratnas‟- a potential global giant. Inspired by its

glorious past and vibrant present, NTPC is well on its way to realise it‟s vision of

being “A world class integrated power major, powering India‟s growth, with

increasing global presence”.

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Overview

of

NTPC Power Plants

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AN OVERVIEW PROJECT PROFILE

Coal Based Power Stations

Coal based State

Commissioned

Capacity

(MW)

1. Singrauli Uttar Pradesh 2,000

2. Korba Chattisgarh 2,100

3. Ramagundam Andhra Pradesh 2,600

4. Farakka West Bengal 1,600

5. Vindhyachal Madhya Pradesh 3,260

6. Rihand Uttar Pradesh 2,000

7. Kahalgaon Bihar 1,340

8. NTCPP Uttar Pradesh 840

9. Talcher Kaniha Orissa 3,000

10. Unchahar Uttar Pradesh 1,050

11. Talcher Thermal Orissa 460

12. Simhadri Andhra Pradesh 1,000

13. Tanda Uttar Pradesh 440

14. Badarpur Delhi 705

15. Sipat Chattisgarh 500

Total (Coal) 22,895

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Projects under Implementation

Coal / Hydro State Fuel

Additional

Capacity Under

Implementation

(MW)

1.

Kahalgaon

Stage II (Phase I)

(Phase II)

Bihar Coal 500

500

2. Sipat (Stage I) Chhattisgarh Coal 1980

Projects No. of Projects Commissioned

Capacity (MW)

NTPC OWNED

COAL 15 22,895

GAS/LIQ. FUEL 07 3,955

TOTAL 22 26,850

OWNED BY JVCs

Coal 3 314*

Gas/LIQ. FUEL 1 740**

GRAND TOTAL 26 27,904

* Captive Power Plant under JVs with SAIL

** Power Plant under JV with GAIL, FIs & MSEB

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(Stage II) 500

3. Barh Bihar Coal 1980

4.

Bhilai (Exp. Power

Project-JV with

SAIL)

Chhattisgarh Coal 500

5. Korba (Stage III) Chhattisgarh Coal 500

6. Farakka (Stage III) West Bengal Coal 500

7. NCTPP (Stage II) Uttar

Pradesh Coal 980

8. Simhadri (Stage II) Andhra

Pradesh Coal 1000

9. Koldam (HEPP) Himachal

Pradesh Hydro 800

10. Loharinag Pala

(HEPP) Uttarakhand Hydro 600

11. Tapovan

Vishnugad (HEPP) Uttarakhand Hydro 520

Total (Coal + Hydro) 10,860

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AWARDS AND ACCOLADES WON by NTPC:

Shell Helen Keller Award 2002 for promoting employment opportunities to

disabled people.

Plats Global Energy Award 2002 for commitment to community

development.

CORE-BCSD corporate social responsibility Award 2001- 02 instituted by

TERI.

AICC-UNEP World Summit Business Award for Sustainable Development

Partnership

National Safety Award 2002 instituted the British Safety Council, to seven

NTPC stations

Best HR Practices Award 2002 instituted by Indian Society of Training and

Development

World HRD Congress Award instituted by World HRD Congress

Golden Peacock National Training Award 2003 instituted by Institute of

directors to PNI

Meritorious Productivity Award of the Government of India to 12 stations

Prime minister‟s Shram Award for the 17th

year, including to SHRAM

RATNA

Vishwakarma Award by Ministry of Labour, Government of India

Climate Technology Initiative Award

MOU Excellence Award of Government of India

CII-Award for Excellence in Infrastructure

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Greentech Environment Excellence Award

Best Employer National Award for the Welfare of Physically Challenged

People

Business Today-Hewitte Best Employers Award

Subsidiaries Of NTPC

NTPC Electric Supply Company Ltd. (NESCL)

The company was formed on August 21, 2002. It is a wholly owned

subsidiary company of NTPC with the objective of making a foray into the

business of distribution and supply of electrical energy, as a sequel to reforms

initiated in the power sector.

NTPC Vidyut Vyapar Nigam Ltd. (NVVN)

The company was formed on November 1, 2002, as a wholly owned

subsidiary company of NTPC. The company‟s objective is to undertake sale and

purchase of electric power, to effectively utilize installed capacity and thus enable

reduction in the cost of power.

NVVN NTPC Hydro Ltd. (NHL)

The company was formed on December 12, 2002, as a wholly owned

subsidiary company of NTPC with an objective to develop small and medium

hydroelectric power projects of up to 250 MW.

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Pipavav Power Development C o. Ltd. (PPDCL)

A memorandum of understanding was signed between NTPC, Gujarat

Power Corporation Limited (GPCL) and Gujarat Electricity Board (GEB) in 2004

for development of a 1000 MW thermal power project at Pipavav in Gujarat by

forming a new joint venture company between NTPC and GPCL with 50:50 equity

participation. Pursuant to the decision of Gujarat Government, NTPC Ltd. has

dissociated itself from this company. PPDCL is under winding up.

Kanti Bijlee Utpadan Nigam Limited

It was formerly known as Vaishali Power Generating Company Limited.

To take over Muzaffarpur Thermal Power Station (2*110MW), a subsidiary

company named „Vaishali Power Generating Company Limited (VPGCL)‟ was

incorporated on September 6, 2006 with NTPC contributing 51% of equity and

balance equity was contributed by Bihar State Electricity Board. This company

was formed to renovate the existing unit and run the plant. The second unit has

been successfully re-synchronized on October 17, 2007 after 4 years of being idle.

Renovation and modernization of the first unit is under progress. The company was

rechristened as „Kanti Bijlee Utpadan Nigam Limited‟ on April 10, 2008.

Bharatiya Rail Bijlee Company Limited (BRBCL)

A subsidiary of NTPC under the name of „Bharatiya Rail Bijlee Company

Limited‟ was incorporated on November 22, 2007 with 74:26 equity contribution

from NTPC and Ministry of Railways, Govt. of India respectively for setting up of

four units of 250 MW each of coal based power plant at Nabinagar, Bihar.

Investment approval of the project was accorded in January, 2008.

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Introduction to VSTPP

NTPC-Vindhyachal Super Thermal Power Project is one of the most

prestigious flagships of NTPC striving ahead to bridge the country generation gap

especially in the western region. It is the largest power station in Asia. Presently it

has the capacity of 3260 mw.

The station is located in Sidhi district in MP in the northwestern side of the

country. It has secured ISO 14001 and ISO 9001 certificate in the field of

environment and power generation but also in various other fields.

On September 2002, it made glorious achievement by ensuring production up

to 2260 MW. And the Unit # 10 commercial operation started on 15/07/2007 and

the total capacity of the plant became 3260 MW.

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It has won number of awards from government of India for proper utilization

and consumption and has bagged the safety awards presented by U.S.A. and

British safety council.

COAL SOURCE:

Northern coal fields limited (NCL) mines at Dudhichua (7Km) and Nigahi (10Km)

and Jayant (5Km).

FUEL OIL SOURCE:

Indian Oil Corporation (IOC), COLD (Customer operated lubricant and oil

deposit) at Jayant (5Km).

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WATER SOURCE:

Discharge canal of Singrauli Super Thermal Power Station (SSTPS).

BENEFICIARY STATES:

Madhya Pradesh, Chattisgarh, Maharastra, Gujarat, Goa, Daman & Diu and Dadar

& Nagerhaveli.

INTERNATIONAL ASSISTANCE:

USSR and World Bank under time slice loan.

UNITS COMMISSIONED:

1. Unit 1 210MW October 1987

2. Unit 2 210MW July 1988

3. Unit 3 210MW February 1989

4. Unit 4 210MW December 1989

5. Unit 5 210MW March 1990

6. Unit 6 210MW February 1991

7. Unit 7 500MW March 1999

8. Unit 8 500MW February2003

9. Unit 9 500MW March 2007

10. Unit 10 500MW July 2007

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Vindhyachal station belongs to the western region and feeds power to states and

union territories of: -

Madhya Pradesh 24.4%

Chattisgarh 4.7%

Maharastra 32.3%

Gujarat 20.8%

Goa, Daman & Diu 2.4%

Dadar& nagerhaveli 0.4%

Unallocated 15.0 %

The power flows out from Vindhyachal through 400KV power transmition system.

VINDHYACHAL Capacity:

3260MW= [St.1 (6x210MW) + St.2 (2x500MW)]

St.3 (2x500MW)

THERMAL POWER PLANT OVERVIEW:

A modern boiler has capacity of burning pulverized coal at rates up to 200

tones an hour (32000 metric ton per day). From the coal store, fuel is carried on a

conveyor belt and discharged by means of a coal tipper into the bunker. It then

falls perhaps through a weigher into the coal pulverizing mill where it is grounded

to a powder as fine as flour. The mill usually consists of a round metal table on

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which large steel rollers or balls are positioned. The table revolves, forcing the coal

under the rollers or balls which crush it.

Air is drawn from the top of the boiler house by the Forced Draught (FD) Fan

and passed through the air preheaters, to the hot air duct. From here some of the

air passes directly to the burners and the remainder is taken through the Primary

Air (PA) Fan to pulverizing mill, where it is mixed with powdered coal, blowing

it along pipes to burners of the furnace. Here, it mixes with the rest of the air and

burns with great heat.

The boiler consists of a large number of tubes extending the full height of the

structure and the heat produced raises the temperature of the water circulating in

them to create stem which passes to the steam drum at very high pressure. The

steam is then heated further in the super heater and fed through the outlet valve to

the high pressure cylinder of the steam turbine. It may be hot enough to make the

steam pipe glow a dull red (around 540°C).

When the steam has been through the first cylinder (High Pressure) of the

turbine, it is returned to the boiler and reheated before being passed through the

other cylinder (Intermediate and Low Pressure) of the turbine.

From the turbine the steam passes into a condenser to be turned back into water

called „condensate‟. This is pumped through feed heaters (where it may be heated

to about 250°C) to the economizer where the temperature is raised sufficiently for

the condensate to be returned to the lower half of the steam drum of the boiler.

The flue gases leaving the boiler are used to reheat the condensate in the

economizer and then pass through the air –preheater,

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to the Electrostatic Precipitor (ESP). Finally, they are drawn by the Induced

Draught (ID) Fan into the main flue and to the chimney.

The ash is either sold for use in road and building constructions or piped as

slurry of ash and water to a settling lagoon, where the water drains off. Once this

lagoon (which may originally have been a worked out gravel pit) has been filled, it

can be returned to agricultural use, or the ash removed for other purposes.

The electrostatic precipitator consists of metal plates which are electrically

charged .Dust and Grit in the flue gases are attracted on to these plates, so that they

do not pass up the chimney to pollute the atmosphere. Regular mechanical

hammer blows cause the accumulations of ash, dust and grit to fall to the bottom

of the precipitator, where they collect in a hopper for disposal. Additional

accumulations of ash also collect in the hoppers beneath the furnace.

Conversion of Steam to mechanical power:

From the boiler, a steam pipe conveys steam to the turbine through a stop valve

(which can be used to shut off steam in an emergency) and through control valves

that automatically regulate the supply of the steam to the turbine. Stop valve and

control valves are located in a steam chest and a governor, driven from the main

turbine shaft, operates the control valves to regulate the amount of steam used.

(This depends upon the speed of the turbine and the amount of electricity required

from the generator).

Steam from the control valves enters the high pressure cylinder of the turbine,

where it passes through a ring of stationary blades fixed to the cylinder wall. These

act as nozzles and direct the steam onto a second ring of moving blades mounted

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on a disc secured to the turbine shaft .This second ring turns the

shafts as a result of the force of the steam. The stationary and moving blades

together constitute a „stage‟ of the turbine and in practice many stages are

necessary, so that the cylinder contains a number of rings of stationary blades with

rings of moving blades arranged between them. The steam passes through each

stage in turn until it reaches the end of the high pressure cylinder and in its passage

some of its heat energy is changed into mechanical energy.

The steam leaving the high pressure cylinder goes back to the boiler for reheating

and returns by further pipe to the intermediate pressure cylinder. Here it passes

through another series of stationary and moving blades.

Finally ,the steam is taken to the low pressure cylinders, each of which it

enters at the centre flowing outwards in opposite directions through the rows of

turbine blades – an arrangement known as double flow – to the extremities of the

cylinder. As the steam gives up its heat energy to dive the turbine, its temperature

and pressure fall and it expands .Because of this expansion and blades are much

larger and longer towards the low pressure ends of the turbine.

The turbine shaft usually rotates at 3000 revolutions per minute. This

speed is determines by the frequency of the electricity system used in this country

and is the speed at which a 2- pole generator must be driven to generate alternating

current at a frequency of 50 /cycles per second.

When as much energy as possible has been taken from the steam it is

exhausted directly to the condenser. This runs the length of the low pressure part

of the turbine and may be beneath or on either side of it. The condenser consists of

a large vessel containing some 20,000 tubes, each about 25 mm in diameter. Cold

water from river, estuary, sea or cooling tower is circulated through these tubes

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and as the steam from the turbine passes round them it is rapidly

condensed into water – condensate .Because water has a much smaller comparative

volume than steam, a vacuum is created in the condenser. This allows the steam to

be used down to pressures below that of the normal atmosphere and more energy

can be utilized.

From the condenser, the condensate is pumped through low pressure feed heaters

by the extraction pump, after which its pressure is raised to boiler pressure by the

boiler feed pump. It is passed through further feed heaters to the economizer and

the boiler for reconversion into steam.

Where the cooling water for power station s is drawn from large rivers,

estuaries or the coast, it can be returned directly to the source after use. Power

stations situated on smaller rivers and inland do not have such vast water resources

available, so the cooling water is passed through cooling towers (where its heat is

removed by evaporation) and re- used.

A power station generating 2000000kw of electricity required about

227,500 cubic meters water an hour for cooling purposes. Where cooling towers

are used, about one hundredth part of its source to carry away any impurities that

collect. Most of it, however, is recalculated.

Switching and transmission:

The electricity is usually produced in the stator windings of large

modern generators at about 25000 volts and is fed through terminal connections to

one side of a generator transformer, that steps up the voltage to 132kv or 400kv.

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From here conductors carry it to a series of three switches

comprising an isolator, a circuit –breaker (CB) and another isolator.

Three wires are used in a three phase system for large power

transmission as it is cheaper than two wire „single phase‟ system that supplies the

home. The centre of the power station is control room .Here engineer monitor the

output of the electricity, supervising and controlling the operation of generating

plant and high voltage switch- gear and directing power to the grid system as

required .Instruments on the control panels show the output and conditions which

exist on all the main plant and a miniature diagram indicates the precise state of the

electrical system.

Material Management System at NTPC

Quality Policy

Corporate Materials and Contract &Material department of NTPC is

committed to follow the Quality Management System and continual

improvement of its effectiveness through issuance of policies and guidelines

for Materials Management functions to facilitate uniform implementation by

the stations to achieve transparency, cost effectiveness and time frame for

execution.

Corporate Materials shall effectively implement the above policies in all its

functions specifically in the area of procurement and customs clearance

meeting customer, statutory and regulatory requirements.

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Quality Objectives

To optimize insurance coverage for NTPC stations in succeeding year

keeping in view past experience and business environment.

To reduce spares inventory and improve plant availability of stations

through identification of interchangeable spares and allotment of common

code to these spares.

To reduce the import clearance cost and time.

To finalize the contract and arrange availability of indented materials, works

and services within scheduled time and at optimum cost.

The Stores of an industrial set-up is considered as a measuring point to judge

the effectiveness of Material Management Services. Stores operation involves

multidimensional activities including clearance and despatch of goods, inspection

and inward movement of materials, claims and settlement, receipt, stocking, issue,

preservation, safety and security of materials, indenting for recoupment, disposal

of scraps etc.The fundamental requirement for success of Stores Management is it's

proper functioning. As such stores function should be organized systematically so

as to enable the stores personnel to discharge their duties effectively. For this

purpose, a systematic guide for stores function has been envisaged through Stores

Management System Manual. This Manual will act as a guide book for

facilitating stores personnel to perform their activities with confidence within the

framed rules and regulation of the company so that uniform / standardized

procedures are practiced in all projects / stations / offices. Since the earlier manual

was prepared quite a long time ago, it is felt necessary to review and recast the

same to include additional guidelines / information pertaining to technological

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advancement / up gradation of modern storage system and

computerization of Materials Management activities with exclusion of obsolete

systems. This 2nd edition is also provided with direction towards "Benchmarking"

ascertaining performance standard of any unit, including some special features e.g.

Stores Layout, Modern Storage Systems, Handling Equipment, Modern

Preservation Methods etc.

Main Objectives of Material & store Manual are:

To define scope of each stores activities

To guide execution of activities

To spell-out the interfaces among other Material Management functions

To detail the uniform/standardized procedures

However, the objectives of Manual will be fulfilled only on implementation of the

procedures / guidelines by stores personnel at each step for betterment /

streamlining the stores management system

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GOODS RECEIPT

INTRODUCTION

This section initiates all prerequisites in smooth transfer of materials on its arrival

to the custody section. This section shall be responsible for getting the goods

cleared from different transporting agencies. On receipt of the materials,

Unloading Report (UR), MIS cum SRV are prepared, goods get inspected and

finally handed over to the custody section. This section also raises discrepancy and

rejection memos whenever damages, rejections and short falls are noticed and

deals with the concerned authorities which includes Insurance Companies,

Transporters, Suppliers etc. and makes settlement of claims.

This section is further sub-divided into three functional groups for monitoring and

control:

A) Goods Clearance and Despatch Group. (GCDG)

B) Goods Inspection and Inward Group. (GIIG)

C) Risk Management Group.(RMG)

GOODS CLEARANCE AND DESPATCH GROUP

FUNCTIONS.

The function of Clearance and Despatch group is to arrange receipt of goods and

transfer the same to GIIG and performs the following activities in general.

A. To receive Documents.

B. To maintain LR/RR register.

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C. To arrange clearance of materials from different clearing point of various

transport agencies / authorities e.g.,

i) Road Transport / Railway Go-down. (ii) Railway Yard. (iii) R P P.

iv) Domestic Airport / Seaport for Imported consignments through T & CC.

D. To receive materials at receipt section itself in case of door delivery.

E. To prepare unloading report (UR).

F. To maintain accounts for different incidental charges towards Clearance &

Despatch including Imprest account.

G. To obtain Shortage / Damaged certificate from appropriate transporting

agencies.

H. To handover the material to GIIG.

I . To despatch rejected & other materials for repair or transfer to other Plants.

J. To inform Risk Management Group (RMG) for abnormally delayed

consignment in transit.

K. To obtain sanction of payment of Demurrage / Wharf age charges.

GOODS INSPECTION AND INWARD GROUP

FUNCTION

After receipt of material from supplier and prior to taking the same in stock, GIIG

is responsible for the following activities:

A. To receive material from Goods clearance and despatch Group.

B. To arrange inspection of material.

C. To keep material in GIIG custody till it is inspected.

D. To hand over material to concerned Custody section / Rejection cell.

E. To prepare Discrepancy Memo.

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RISK MANAGEMENT

OVERVIEW

The dimension of insurable assets (approx. 40000 crores) and its corresponding

annual premiums (approx. 70 crores) are so large that it requires prudent policies

and practices in the portfolio of Risk Management. For wide coverage of power

stations NTPC has brought the concept of Mega risk - Package policies from

Insurance Company. Due to liberalization of Insurance sector and as the present

scenario is so rapidly changing that one has to face true competitive environment

and induct professional approach while finalizing any insurance policy. To get the

maximum insurance coverage out of optimum premium and to get the maximum

benefit out of insurance it has become very much essential to make the decision

making the process faster as well as accurate and necessary corrective steps are to

be taken while procuring insurance policies, fixing time frame for claim settlement

and periodical review of claim status etc. through MOU's with Insurance

Companies.

Risk Management Group at site shall work and coordinate closely with Corporate

RMG to get the best out of insurance companies.

3.3.2 RISK MANAGEMENT CONCEPT & PHILOSOPHY

A. What is a risk ?

An uncertain chance or a probability of an outcome.

Risk is degree of variation in possible outcome from uncertain Event.

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B. Why risk management?

High Capital Intensive.

Substantial Risk Exposure.

Risks Beyond Human Control.

Financial/ Social Catastrophe.

Element of Uncertainty.

Dynamic process of Planning & Decision-Making.

Protection and Security for Growth.

Rigorous Review of Experience & Developments.

C. What is a risk management?

Planning, Arranging & Control of Activities & Resources to Minimize the Impact

of unforeseen Adversities.

D. Types of risks

Pure or Static Risks

Speculative or Dynamic Risks

E. Risk management

Risk Identification.

Risk Analysis / Measurement.

Risk Elimination/ Avoidance.

Risk Reduction.

Risk Impact Evaluation.

Risk Transfer By Insurance.

Risk Assumption / Risk Retention.

Risk / Cost / Profit / Evaluation (Monitoring).

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‘5-S’ PLEDGE

WE, ARE COMMITTED TO IMPLEMENT ‘5-S’ PRINCIPLES

THROUGH OUR INVOLVEMENT, CO-OPERATION AND

CONTINUIALLY IMPROVE THE STANDARDS OF HOUSE

KEEPING. TOWARDS THIS OBJECTIVE, WE ALSO DEVISE

BETTER METHODS REGULARLY AND ATTAIN HIGH

STANDARDS OF CLEANLINES, SAFETY, QUALITY,

HEALTH AND PRODUCTIVITY.

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FIRST STEP (1S) - SORT / SEIRE / WARGIKARAN

PURPOSE – DEFINITION

PORPUSE: - Details the procedure for identification of unwanted material and its

Disposal.

DEFINATION: -

Sort: Identify and remove unnecessary items from the work place. The

Usefulness of the items should be decided based on the work in hand

(Current work).

Red–tag Area: Red tag areas are identified locations in different work places were

the Unnecessary items are shifted for further evaluation.

Red-tags: - Red tags are the tags to be used on the unnecessary items by the

Employees. It should contain the relevant details and also provision

for Evaluation.

.

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SECOND STEP (2S) –SET IN ORDERT /SEITON/ SUVYAWSTHA

PUSPOSE DEFINITION-SCOPE-RESPOSIBILITY

PURPOSE :-

Details the procedure for keeping things in order.

DEFINITION :-

Set in order :- Necessary items in the work place are re-arranged after considering

the frequency of use so as to utilize the newly available space ( after 1S ). The

items and its locations are also properly labeled so that anyone could find, use and

replace the items with ease.

SCOPE: -

This procedure is applicable to all the departments including plant area, offices,

canteen, stores, hospital, township, IT, EDC etc.

RESPONSIBILITY: -

DC Members shall evaluate needed items in their respective sections and suggest

bringing better layout, storage changes and visual display methods in the work

place. They shall also take follow up action to implement improvements and

liaison with HOD and other departments.

DC Members shall prepare reports of improvements with documentation and take

necessary steps for its display and publication.

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THIRD STEP (3S) – SHINE / SEISO / SWACHHATA

PURPOSE DEFINITION- SCOPE- RESPONSIBILITY

PURPOSE: -

Details the procedure for cleaning and maintaining the items in good working

condition.

DEFINATION: -

Shine: - Shine means sweeping floors, wiping off machinery and furniture and

gene

Rally making sure that everything in the factory stays clean.

Shine should be integrated into daily maintenance tasks to combine cleaning

checkpoints with inspection and maintenance checkpoints. This helps in keeping

the things in good working condition at all times.

SCOPE: -

This procedure is applicable to all the departments including plant area, offices,

canteen, stores and township.

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FOURTH STEP (4S) STANDARDISATION-SEIKETSU-MANAKIKARAN

PURPOSE: -

Details the procedure for devising standardized schedules for maintaining the first

3S (SORT/SET IN ORDER/ SHINE) so that everybody is clear about the best

methods for doing all 3S activities.

Definition: -

Standardize: - standardize means defining the one best method and all its required

tools and accessories with duration of the activity so that all 3S is always

maintained at highest level of performance.

Whenever any productivity improvement tool devises a new standardized

schedule. The same shall replace the previous one as the accepted schedule.

SCOPE: -

This procedure is applicable to all the departments including plant area, offices,

canteen, township, IT and stores.

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FIFTH STEP (5S)-: SUSTAIN SHITSUKE-ANUSHASAN

PURPOSE DEFINITION-SCOPE-RESPONSIBILITY

PURPOSE: -

Details the strategies and promotional activities which may be adopted for the

continuous maintenance of high standards of 5s.

DEFINATION: -

Sustain: sustain means making a habit of properly maintaining correct procedures.

Sustain holds together all other 4S

SCOPE: -

This is applicable to all employees

“5S” PLEDGE

WE, ARE COMMITTED TO

IMPLEMENT „5S‟ PRINCIPLES THROUGH

OUR INVOLVEMENT AND CO-OPERATION

AND CONTINUALLY IMPROVE THE

STANDARDS OF HOUSE KEEPING

TOWARDS THIS OBJECTIC, WE ALSO

DEVISE BETTER METHOODS REGULARLY

AND ATTAIN HIGH STANDARDS OF

CLEANLINESS, SAFETY, QUALITY, HEALTH

ANDPRODUCTIVITY,

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Questionnaire

NAME :--------------------------------------

DESIGNATION :--------------------------------------

PLACE :-------------------------------------

DATE :--------------------------------------

I am ashok Kumar dwivedi MBA (marketing)

&PGPM(H.R.) II Sem. From TILAK MAHARASTRA

University PUNE, doing my project on Training &

Development at ntpc (VSTPP) .As part of my summer project

work, I request you to kindly fill this questionnaire. Your

response will be used only for academic purpose and

will be kept confidential.

1. The training centre at my unit is well equipped.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

2. Training centre at unit is well maintained.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

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3. A mix of internal and external faculty takes training session at EDC.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

4. Most training needs of employees are addressed by the local EDC.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

5. Faculty knowledge and training methodology at EDC are to my satisfaction.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(i) Strongly disagree

6. Training nomination takes place as per the training needs of the employee.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

7. Reporting officer takes active interest in training of their subordinate.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

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8. Employees are given as per their development plan by their reporting

officer for job rotation etc.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

9. Employees actively apply their learning from training at work place.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

10. Employees are given time for attending training programs.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

11. In my opinion training and development system of NTPC adds value to

organization.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

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12. I look forward to take up special assignment as a part of cross functional

teams.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

13. All employees in my department get nominated for training programs

uniformly.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

14. Employees in my department almost get same number of training man

days per annum.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

15. Seniors readily share their knowledge and experience with their juniors.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

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16. People openly share their knowledge and ideas with each other.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

17. I have imported adequate training needed to carry out my responsibility

effectively.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

18. I feel NTPC as an organization is committed towards training and

development of its employees.

(i) Strongly agree (ii) Agree

(iii) Neither agrees nor disagrees (iv) Disagree

(v) Strongly disagree

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 71

Finding

NTPC have good harmonic relationship and co-ordination between the staff

members.

Better understanding of the recruitment process of organization.

Planning to become a 75,000 MW company by 2017.

NTPC, setup in 1975 is India‟s largest power company

NTPC must target to reduce transmission losses to 15 % for improving the

financial health of the sector.

““AA GGoovveerrnnmmeenntt ooff IInnddiiaa EEnntteerrpprriissee”” Page 72

CONCLUSION The training season was very educational and informative. Being

a BHARAT MAHANAVARATNA, this NTPC have good harmonic relationship

and co-ordination between the staff members. As the vocational training seem

laborious job to get in touch with the activities. It was nobility of people to provide

the information and required theoretical background at their continuous job hour.

Most of the equipments were technically strong for huge production. Doing

training in NTPC, I hope it would be useful in my future not only in academic but

also in professional carrier. Electricity is much more than just another commodity.

It is the life-blood of the economy and our quality of life. Failure to meet the

expectations of society for universally available low-cost power is simply not an

option. As the world moves into the digital age, our dependency on power quality

will grow accordingly. The infrastructure of our power delivery system and the

strategies and policies of our insurers must keep pace with escalating demand.

Unfortunately, with the regulators driving toward retail competition, the utility

business priority is competitiveness (and related cost-cutting) and not reliability.

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BIBLIOGRAPHY

BOOKS: 1. ORGNISATIONAL BEHIVOUR

2. PRODUCTION AND MATERIAL MANAGEMENT

WEBSIDES: 1 www.ntpc.com

2. vindhyachal inranet

3. www.google.com

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