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)

Gandhi Nikunj R (12)

- 1 -

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

Acknowledgement- 2 -

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.

- 3 -

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.

- 4 -

INDEX

No. TOPIC PG NO.

1 INDUSTRY PROFILE 6-13

2 COMPANY PROFILE 14-27

3 PRODUCTION

MANAGEMENT

28-50

4 HUMAN RESOURCE

MANAGEMENT

51-92

5 MARKETING

MANAGEMENT

93-106

6 FINANCIAL

MANAGEMENT

107-115

7 CONCLUSION 116-120

- 5 -

- 6 -

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.

- 7 -

• 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

- 8 -

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

- 9 -

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.

- 10 -

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.

- 11 -

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- 12 -

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.

- 13 -

- 14 -

- 15 -

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.

- 16 -

VISION

“TO BE

ONE OF THE WORLD'S

LARGEST AND BEST

POWER UTILITIES,

POWERING INDIA'S GROWTH”

- 17 -

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.

- 18 -

Core Values

C Customer’s Focus

O Organizational Pride

M Mutual Respect And Trust

I Initiative And Speed

T Total Quality

- 19 -

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.

No.

Name Designation Date of

Appointment

Functional Directors

1 Shri R.S.Sharma Chairman & Managing

Director

01.04.2008

2 Shri Chandan

Roy

Director (Operations) 01.01.2009

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

Advisor

Ministry of Power,

Government of India

11.07.2007

2 Shri Harish

Chandra

Joint Secretary (Thermal)

Ministry of Power,

Government of India

11.07.2008

- 20 -

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

- 21 -

- 22 -

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.

- 23 -

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%)

- 24 -

Foreign players entered to India

AES Corporation

CLP Power

- 25 -

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.

- 26 -

ORGANISATIONAL STRUCTURE

- 27 -

- 28 -

CONSTRUCTION AT NTPC KAWAS

- 29 -

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.

- 30 -

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.

- 31 -

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.

- 32 -

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.

- 33 -

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.

- 34 -

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.

- 35 -

PLANT LAYOUT

- 36 -

- 37 -

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.

- 38 -

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.

- 39 -

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.

- 40 -

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.- 41 -

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

- 42 -

SWITCHYARD ROOM

- 43 -

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.

- 44 -

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

- 45 -

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.

- 46 -

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.

- 47 -

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.

- 48 -

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.

Agencies for Recruitment

- 58 -

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

local press subject, however, to the condition that all things being equal,

preference will be given to suitable candidates sponsored by the concerned

- 59 -

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.

(c) Candidates located through personal contacts and talent survey, only in

- 60 -

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.

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

- 61 -

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

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.- 62 -

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

categories. The minimum qualifying marks required for placement in panel for

different categories of candidates are :

General Category 55%

OBC Category 50%

- 63 -

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.

TRAINING

- 64 -

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).

 

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.

- 65 -

 

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.

Long-term: Developmental needs which need to be fulfilled for future job

performance, in next two years or so.

 

AGENCIES OF TRAINING:

 

- 66 -

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

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

- 67 -

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. 

 

 

TRAINING NEED ANALYSIS: (TNA)

The objectives of Training Need Analysis are to

- 68 -

 

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

Needs Form enclosed at Annexure II.

- 69 -

- 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.

- 83 -

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

Annexure-III

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.

- 84 -

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.

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.

- 85 -

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

SCALES OF PAY

Pay Scales of Executives (Effective from 1.1.97).

Scale

Code

 

 

Pay Scale (Rs.)

 

Representative Designation

 

 

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

 

- 86 -

E7A

 

19500-25600

 

Addl. General Manager

 

E8

 

20500-26500

 

General Manager

 

 

 

 

E9

 

23750-28550

 

Executive Director   

 

 

Pay Scales of Supervisors (Effective from 1.1.1997)

Scale

Code

 

 

Pay Scale (Rs.) Representative Designation

 

 

 

 

 

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-

- 87 -

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)  

Scale

Code

Pay Scale (Rs.)

 

Representative Designation

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.

 

- 88 -

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

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.

No.

Grade Rate of Increment

1. W0 2.5

2.  W1-W7 3.0

- 89 -

3. Supervisors/W8-

W11

3.5

4. Executives/Selection

Grade

4.0

ALLOWANCES:

DEARNESS ALLOWANCE:

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;

- 90 -

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.

(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.

- 91 -

nursing, paramedical or fire service.

Other categories of workmen,

Supervisor & Executives.

Rs. 108/- p.m.

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

establishment located at:

Amount (Rs. p.m.) w.e.f.

1.4.2001

Project, stations and in the

establishments located in ‘C’ class

cities.

225+200 = 425

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:

- 94 -

NTPC Kawas mainly purchase major raw material- FUEL like Gas and

Naphtha from its surrounding.

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

- 95 -

Kawas in its recovery procedure for western region considering that NTPC

Kawas station has a reliable black street facility.

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,

- 96 -

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.

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 -

- 100 -

4PsOf

Marketing

P

R

O

D

U

C

T

P

R

I

C

E

P

L

A

C

E

P

R

O

M

O

T

I

O

N

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

- 105 -

well as utility competition for workers such as line trades. As a recent example,

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

- 108 -

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

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

A-19

A-20

A-21

A-22

A-23

R-25

A-10

A-9

A-8

A-7

R-19 R-18 R-17

R-14 R-15 R-16

R-24 R-11 R-10 R-9 R-8 R-7

R-1 R-2 R-3 R-4 R-5 R-6

R-22 R-21 R-20

R-23 R-12 R-13

- 109 -

ORGANIZATIONAL CHART

RATIO

- 110 -

Mr. S K DAS,Chief Finance

Manager

Mr. MVVS PrasadSr. Manager

Mr. GardeManager finance

Mr. Prabhakar GoalF.O.

Books, Cash & Bank

Mr.U.ChudhraryDy.Manager

Mr.B.Z.PatelAsst.Acct

Mr.JagdishAsst.Acct

Mr.B.C.JoshiAsst.Acct

Mr.S.J.PatelAsst. Acct

BhattMr.H.R. Asst. Acct

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:

- 115 -

The sum established by the owner as available for

construction of the project, including contingencies for bidding to contractors and

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 -