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PROJECT REPORT On IR
PROJECT REPORT On IR
ON
INDUSTRIAL RESEARCH
Submitted By:
GAURAV SONI
KUMAR DEEPAK
SAURABH MISHRA
SANYA GULATI
TABLE OF CONTENT
PARTICULARS
1. Acknowledgement
2. NTPC Profile
3. Nature of business
4. Location
5. Product portfolio
6. Swot analysis
7. Entreprenurship/Leadership
8. Compensation/rewards plan
9. Hiring policies
11. Appraisals
12. Conclusions
The project Industrial research has been conducted by our group members at
NTPC Ltd. We have completed this project, based on the Primary research,
under the guidance of Miss SMITA MENON.
We owe enormous intellectual debt towards my guides Miss Smita menon,
who have augmented my knowledge in the field of Industrial research.. They
have helped us to learn about the process and giving me valuable insight into
the field of industrial research.
We are obliged to all the employees of the HR department for their
cooperation during the research. Our increased spectrum of knowledge in
this field is the result of their constant supervision and direction
perspectives.
We would like to thank all the respondents without whose cooperation my
project would not have been possible.
Last but not the least, We feel indebted to all those persons and
organizations who have provided helped directly or indirectly in successful
completion of this study.
Industry analysis
Size of the industry
Strengths
Developing economy: Historically, demand for petroleum products has traced the economic
growth of the country. With GDP expected to grow at near 7% in the long-term, the energy sector
would benefit from the same, going forward.
To put things in perspective, diesel sales grew by nearly 12% (which constitutes 40% of the entire
petro-products basket), petrol sales by 9% and a double-digit growth in LPG (liquefied petroleum gas)
in 1QFY05. While this rate is not likely to sustain, we expect the industry to witness a 4% growth in the
entire product basket in FY05 and beyond.
Government decisions: The recent price increases and also the decision to allow oil companies to
increase prices within a band of 10% augurs well for the industry.
This step is likely to reduce government interference and provide some autonomy to oil companies
when it comes to increasing petrol and diesel prices in order to protect margins. Further, the duty cuts
are also likely to result in reduced under-recoveries by way of subsidies on LPG and kerosene.
Weakness:
Crude prices: Nearly 70% of India's crude requirements are fulfilled by imports and this figure is
likely to increase going forward. Crude prices have breached the $45 barrier again and are likely to
remain at around $40 per barrel range.
As per IEA, India is one of the most inefficient countries among developing nations as far as energy
usage is concerned. Such high crude prices are likely to impact margins of oil marketing companies.
Given the political implications, retail prices may continue to lag the rise in input cost.
Lack of freedom: Although the government has decided to provide autonomy to oil companies to
increase petrol and diesel prices within a 10% band, other products such as LPG and kerosene continue
to remain under the government controlled price mechanism.
As per the current estimates, the subsidies on LPG amount to Rs 90 per cylinder after factoring in duty
cuts and that on kerosene is over Rs 6 per litre.
While the government has managed to reduce its share in subsidies, select oil companies are being
forced to absorb the losses.
Opportunities:
Equity Oil: Major oil marketing companies are now venturing into upstream exploration and
production activities so as to secure crude supply.
To put things in perspective, IOC and OIL India are likely to jointly bid for oil fields aboard. At the
same time, ONGC's wholly owned subsidiary, ONGC Videsh (OVL) has acquired stakes in over 9
countries in its quest to attain the 20 MMT (million metric tonnes) by 2020. This backward integration
is an opportunity for IOC to secure at least 25% of its crude oil requirements for the refineries.
Natural Gas: Natural gas has the potential to be the fuel of the future with demand outpacing
supply by more than two times. Such high scarcity of natural gas provides a big opportunity for oil
companies. The below mentioned table indicates the allocation to the various core sectors and the
shortage faced by them, thereby giving an idea of the potential for growth.
Although Petronet LNG has now started importing natural gas, the future holds promise as Reliance
Industries' Krishna Godavari Basin goes into commercial production in FY06 and Shell commences
its terminal at Hazira. More exploration activities are in the pipeline and this could reduce the country's
dependence on crude in the long term.
Threats:
Competition: Until FY04, oil-marketing companies had complete control over the downstream
marketing business while private sector players were restricted to only refining.
However, with entry of private players such as Reliance, Essar Oil and Shell (in the waiting), the sector
is likely to witness increased competition going forward. The oil PSUs had hitherto developed a
fortnightly pricing mechanism, which is likely to discontinue.
The price of petrol and diesel is artificially kept high so as to cross-subsidize LPG and kerosene. Since
private players will not be bound to provide for these subsidies, PSU marketing players are likely to
suffer from lower throughput per outlet.
Continuing government interference: During the first six months of the current fiscal year, the
oil marketing companies were refrained from increasing product prices due to political reasons.
This affected margins of downstream players. Going forward, if the government interference
continues, oil-marketing companies will be at a disadvantage.
Although we believe the industry is likely to witness increased competition, the initial retail rush by
private sector players has slowed down. PSU marketing companies have already stepped up their
expansion plans and to that extent, have created significant entry barriers for private players.
Although throughput per outlet (sales per outlet) is likely to decline in the future, we believe that any
substantial entry of the private players would indirectly benefit the PSUs, as the government's pricing
policy will not hold much water and the market forces would determine pricing.
Growth trends
The initiative set by the Government of India to attract global players in oil exploration, production and
refining, to fulfill India’s large scale present and forecasted demand requirement seems to receive
further momentum. Major global upstream and down stream (exploration and refining) heavyweights
along with the service providers are evincing increasing interest to enter into the country. Thanks, to the
new exploration and licensing policy of the Government of India.
Entry of newer entrants holds significance, as many of the players and project service providers, willing
to source business opportunities in the sector, are showing interest in setting up green field projects and
also enter into technical collaborations with Indian counterparts, through technology transfer
agreements for business promotion. This could entail larger foreign direct investment running into
billions of dollars into the sector. Not the least, in plugging the country’s energy requirement deficit.
This perception was evident in the recently held Pertrotech- 6th International Petroleum Conference
and Exhibition in New Delhi. The event, saw major presence of large number of Indian and foreign Oil
and gas companies, consisting the likes of ONGC- as the major organiser of the event, LNG Petronet,
Shell, Zarubezheneft of Russia, Ras gas of Iran among many others looking for sourcing opportunities
into the hydrocarbon and gas sector .
INTRODUCTION
NTPC PROFILE
NTPC Limited is the largest thermal power generating company of India. A public sector company, it
was incorporated in the year 1975 to accelerate power development in the country as a wholly owned
company of the Government of India. At present, Government of India holds 89.5% of the total equity
shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and Within a
span of 31 years, NTPC has emerged as a truly national power company, with power generating
facilities in all the major regions of the country.
NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding
(MOU) with the Government in 1987-88. NTPC has been Placed under the 'Excellent category' (the
best category) every year since the MOU system became operative.
Recognising its excellent performance and vast potential, Government of the India has identified
NTPC as one of the jewels of Public Sector ‘Navratnas’- a potential global giant”.
POWER SECTOR
NTPC’s core business is engineering, construction and operation of power generating plants. It also
provides consultancy in the area of power plant constructions and power generation to companies in
India and abroad. As on date the installed capacity of NTPC is 27,904 MW through its 15 coal based
(22,895 MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects (1,054 MW).
NTPC’s share on 31 Mar 2007 in the total installed capacity of the country was 20.18% and it
contributed 28.50% of the total power generation of the country during 2006-2007.
NTPC has set new benchmarks for the power industry both in the area of power plant construction and
operations. It is providing power at the cheapest average tariff in the country. NTPC is committed to
the environment, generating power at minimal environmental cost and preserving the ecology in the
vicinity of the plants. NTPC has undertaken massive afforestation in the vicinity of its plants.
A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been established in
NTPC with the assistance of United States Agency for International Development. (USAID). Cenpeep
is an efficiency oriented, eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern
towards environmental protection and continued commitment to sustainable power development in
India
Over the last three decades, NTPC has spearheaded development of thermal power generation in the
Indian power sector. In this process, it has built a strong portfolio of coal and gas/liquid fuel based
generation capacities. The company has made initial forays in the area of hydropower development
and plans to have a significant share of hydro power in its future generation portfolio.
The Indian power sector is witnessing several changes in the business and regulatory environment. The
legal and policy framework has changed substantially with the enactment of the Electricity Act 2003.
In the foreseeable future, India faces formidable challenges in meeting its energy needs. Recently, a
draft integrated energy policy has been issued, which addresses all aspects including energy security,
access, availability, affordability, pricing, efficiency and environment
Growth of the Generation Business
Developing and operating world-class power stations is NTPC’s core competence. Its scale of
operation, financial strength and large experience serve to provide an advantage over competitors. To
meet the objective of making available reliable and quality power at competitive prices, NTPC would
continue to speedily implement projects and introduce state-of-art technologies.
Inflation Compared to Lack of Sales Growth: Although inflation has occurred at 2-3% a year (8-12%
since the last GRA), NTPC’s loads in most cases are not growing, and in some cases (like the
Yellowknife mines) have dropped substantially. This means there is no growth in revenues to aid in
addressing inflationary pressures. The retail systems have also seen modest to major reductions in
residential and streetlight sales (due in part to energy efficiency).
MAJOR PLAYERS
BHEL
BHEL is the largest engineering and manufacturing enterprise in India in the energy-
related/infrastructure sector,. BHEL manufactures over 180 products under 30 major product groups
and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry,
Transportation, Telecommunication, Renewable Energy, etc.
Government’s initiative to establish Power Exchanges in India has benefitted the country.
“Power is a high priority sector for the Government and policy initiatives will continue to promote
competition, efficiency, restructuring and investment,”
During the year the total number of members and clients of IEX has crossed 130 and over 3,600
million units of power worth Rs. 3,000 crore has been traded through the Power Exchange.
The Electricity Act, 2003 has been brought about to facilitate private sector participation and to help
cash strapped SEBs to meet electricity demand. It envisages competition in electricity market,
protection of consumer’s interests and provision of power for all.
The Act provides for National Electricity Policy, rural electrification, open access in transmission,
phased open access in distribution, mandatory SERCs, license free generation and distribution, power
trading, mandatory metering, and stringent penalties for theft of electricity.
Considering the present inter-State power trading scenario and the need to promote power trading in a
free power market, Central Electricity Regulatory Commission (CERC) approved the setting up of
IEX as the first power exchange in India. (ANI)
PORTER’S FIVE FORCE MODEL
Porters fives forces model is an excellent model to use to analyse a particular environment of an
industry. So for example, if we were entering the PC industry, we would use porters model to help us
find out about:
1) Competitive Rivalry
2) Power of suppliers
3) Power of buyers
4) Threats of substitutes
5) Threat of new entrants.
The above five main factors are key factors that influence industry performance, hence it is common
sense and practical to find out about these factors before you enter the industry. Lets look at them
below.
Competitive rivalry
A starting point to analysing the industry is to look at competitive rivalry. If entry to an industry is easy
then competitive rivalry will likely to be high. If it is easy for customers to move to substitute products
for example from coke to water then again rivalry will be high. Generally competitive rivalry will be
high if:
Power of suppliers
Suppliers are also essential for the success of an organisation. Raw materials are needed to complete the
finish product of the organisation. Suppliers do have power. This power comes from:
• If they are the only supplier or one of few suppliers who supply that particular raw material.
• If it costly for the organisation to move from one supplier to another (known also as switching cost)
• If there is no other substitute for their product.
Power of buyers
Buyers or customers can exert influence and control over an industry in certain circumstances. This
happens when:
• There is little differentiation over the product and substitutes can be found easily.
• Customers are sensitive to price.
• Switching to another product is not costly.
Threat of substitutes
Are there alternative products that customers can purchase over your product that offer the same benefit
for the same or less price? The threat of substitute is high when:
The threat of a new organisation entering the industry is high when it is easy for an organisation to enter
the industry i.e. entry barriers are low.
An organisation will look at how loyal customers are to existing products, how quickly they can
achieve economy of scales, would they have access to suppliers, would government legislation prevent
them or encourage them to enter the industry.
SWOT ANALYSIS OF NTPC
KEY STRENGTHS
Largest market share in the domestic power generation and a broad customer portfolio across the
country.
Highly skilled and experienced Human Resources exposed to state-of –the- art technologies in project
execution and power generation.
Navratna status
Turnaround ability for old plants-demonstrated in the take-over plants at Talchar, Tanda and
Unchachar.
Established systems and procedures to institutionalize excellence in business operations- received ISO
accreditation in several functions/areas.
In-house training facility PMI,CENPEEP,R&D etc that assists in development of the sector.
Thrust on reducing social cost of capacity growth-strong execution of Resettlement & Rehabiliation
plans.
KEY WEAKNESS
Low risk-diversification of business portfolio: Consists primarily of generation of generation assets.
Long and multi layered procurement process leading to long lead times and process delays.
Fragmented IT architecture
Gaps in HR systems such as performance management, rewards and incentives and career
development.
Inadequate development of a strong knowledge management system that could assist in improving
efficency and effectiveness in all aspects of the business.
KEY OPPORTUNITIES
Expand generation capacities by putting up thermal and hydro capacities, maintaining the position of a
dominant generating utility in the Indian power sector.
Broad base fuel mix by considering imported coal, gas, domestic coal, nuclear power etc with a view to
mitigate fuel risks and maintain long run competitiveness.
Lead the development and commercial deployment of non-conventional energy sources especially in
the distributed generation mode.
Improve collections by trading, direct sale to bulk customers and the active role in allocation in new
plants.
Execute increased number of power plants that classify for Mega Power Projects status, thereby
reducing the cost of the projects and power and power generated.
KEY THREATS
Entrance of private players in the Indian Power Sector.
Low availability of fuel mix in India and high import prices might affect the cost of electricity
generation.
The existence of PSU culture affecting the organizational efficiency in comparison of the Private work
culture.
POLITICAL –
India is the biggest democracy in the World. The government type is federal republic. Based on
English common law; judicial review of legislative acts; accepts compulsory ICJ jurisdiction with
reservations; separate personal law codes apply to Muslims, Christians, and Hindus. The political
Situation in the country is more or less stable. For most of its democratic history, the federal
Government of India has been led by the Indian National Congress (INC). State politics have been
dominated by several national parties including the INC, the Bharatiya Janata Party (BJP), the
Communist Party of India (CPI), and various regional parties. In the 2004 Indian elections, the INC
won the largest number of Lok Sabha seats and formed a government with a coalition called the United
Progressive Alliance (UPA), supported by various left-leaning parties and members opposed to the
BJP. Overall India currently has a coalition led government and both major political parties the UPA
and BJP whichever comes in power.
ECONOMIC –
The economic factors in India are improving continuously. The GDP (Purchasing Power Parity) is
estimated at 2.965 trillion U.S. dollars in the year 2007. The GDP- per Capita (PPP) was 2700 U.S.
dollars as estimated in 2007. The GDP- real growth rate in 2007 was 8.7%. India has the third highest
GDP in terms of purchasing power parity just ahead Japan and behind U.S. and China. Foreign direct
investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5.5 billion a
year earlier. There is a continuous growth in per capita income; India’s per capita income is expected to
reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07. This will lead to higher buying
power in the Hands of the Indian consumers.
The economy of the country is growing. India's economy is diverse. Major industries include
automobiles, cement, chemicals, consumer electronics, food processing, machinery, mining,
petroleum, pharmaceuticals, steel, transportation equipment, and textiles.[1]
However despite economic growth, India suffers from poverty. 27.5% of the population was living in
poverty 2004–2005.[28] In addition, 80.4% of the population live on less than USD$2 a day.[29]
SOCIAL –
India is the second most populous nation in the world with an approximate population of over
1.1billion people. This population is divided in the following age structure: 0-14 years – 31.8%, 15-64
years – 63.1% and 65 years and above – 5.1 There are two main language families in India, the Indo-
Aryan and the Dravidian languages. About 69% of the people speak an Indo-Arayan language, about
26% speak a Dravidian language. Other languages spoken in India come from the Austro-Asiatic
group of languages. Around 5% of the people speak a Tibeto-Burman language.
Hindi is the official language in India with the largest number of speakers. It is the official language of
the union. Native speakers of Hindi is about for 41% of the Indian population (2001 Indian census).
English is also used, mostly for business and in the administration. It has the status of a 'subsidiary
official language. The constitution also recognises in particular 21 other languages. For these there are
either many people speaking them, or they have been recognised to be very important for Indian
culture. The number of dialects in India is as high as 1,652.
In the south of India, many people speak Kannada, Telugu, Tamil and Malayalam. In the north, many
people speak Chhattisgarhi, Punjabi, Bengali, Gujarati, and Marathi, Oriya, and Bihari. About 70%
of Indians live in farms. The largest cities in India are Mumbai, Kolkata, Delhi, Chennai, Bangalore,
Hyderabad, and Ahmedabad. India has 23 official languages Altogether, there are 1,625 languages that
are spoken in India.[
TECHNOLOGICAL-
The technological knowhow and expertise will also enter the Indian market with an
increase in competition.. Technology has created a society which expects instant results. This
technological revolution has increased the rate at which information is exchanged between
stakeholders. A faster exchange of information can benefit businesses as they are able to react quickly
to changes within their operating environment.
However an ability to react quickly also creates extra pressure as businesses are expected to deliver on
their promises within ever decreasing timescales..
For example the Internet is having a profound impact on the marketing mix strategy of organisations.
Consumers can now shop 24 hours a day from their homes, work, Internet café’s and via 3G phones
and 3G cards. Some employees have instant access to e-mails through Blackberrys but this can be a
double edged sword, as studies have shown that this access can cause work to encroach on their
personal time outside work.
The pace of technological change is so fast that the average life of a computer chip is approximately 6
months. Technology is utilised by all age groups, children are exposed to technology from birth and a
new generation of technology savvy pensioners known as “silver surfers” have emerged. Technology
will continue to evolve and impact on consumer habits and expectations, organisations that ignore this
fact face extinction.more haphazard indicating a breakdown of social mores and structures that
promoted urban regulations and enforced construction codes.
COMPENSATION/REWARDS PLANS
DEARNESS ALLOWANCE
(For Executives, Supervisors & Workmen)
The Dearness Allowance in the revised pay scales as on 1-1-97 shall be zero, w.e.f. 1.4.97, the DA
payable would be governed as per the following provisions:
(a) Dearness Allowance would be revised on 1st April, 1st July, 1st October and 1st January of each
year 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.(Basic 1960=100)
(b) There shall be 100% neautralisation of DA for all employees. Based on the revised DA scheme,
the payment Dearness allowance w.e.f 1.1.97 is enclosed at Annexure ‘A’.
CCA will be paid as per the following rates, w.e.f 01.08.97, based on the revised classification of cities
as announced by the Government of India:
However, in case of any workmen if the revised amount becomes less than the existing amount the
existing amount will be paid on protection basis to such workmen.
The term 'Pay', as above, includes in addition to basic pay, special pay, personal pay, deputation (duty)
pay.
CCA at the above rates will be admissible from the date of joining duty at the places mentioned
above.Payment of CCA at the above rates will be governed and regulated by the same terms,
conditions and rules, as laid down in the Govt. of India, Ministry of Finance, Office Memorandum No.
F2(37)-E.II(B)/64 dated 27.11.1965 as amend- ed or modified from time to time.
APPLICABILITY
For the purpose of House Rent Allowance, the employees eligible are those borne on the regular
establishment of the Company including probationers, lien holders, deputationists (unless otherwise
specified in their terms of deputation) and persons appointed on contract basis (unless otherwise
specified in the terms of their contract) but excluding apprentices/trainees whether engaged under
Company's own training scheme or under the Apprentices Act, 1961 (save to the extent specifically
mentioned in these Rules) and muster roll, daily rated, casual, badli or substitute employees.
DEFINITIONS -
In these rules, unless the context otherwise requires:
"Company" means the National Thermal Power Corporation Limited including the
offices/projects/units under its management.
"Places" means A1,A,B-1, B-2 & C Class cities notifïed by the Government of India for the purpose of
oayment of HRA to the Central Govt. employees, from time to time and other unclassified localities.
"Family" means employee's spouse, legitimate children and step children (including legally adopted
children) and parents (parents-in-law in case of female employees).
BASIC CONSIDERATIONS
The purpose of any Incentive Scheme is to motivate the employees to give their best. In the case of a
power plant, the incentive plan also takes into account the maintenance aspect of the plant while
motivating employees to maximize generation. Any Scheme which encourages maximization of
Generation only in the short term may be self defeating as it leads to irreparable damage to plants and
machinery because of insufficient motivation to employee of the proper upkeep and regular
maintenance of the Plant. A successful Incentive Scheme, hence, should strike a balance between short
range and long range plant requirements and should achieve a good blend of the two in such a way as
to optimize generation on a sustained long range basis.
The parameters for payment have been determined to encourage better maintenance for higher
availability of plant..
APPLICABILITY
The Scheme covers all regular employees of NTPC directly or indirectly engaged in Generation of
Electricity. The Scheme will not be applicable to:-
Monthly Incentive
The monthly incentive will be paid based on Equivalent Availability Factor (EAF%) achieved during
the month.
Quarterly Incentive
The quarterly incentive will be paid based on Equivalent Availability Factor (EAF%) achieved during
the quarter. The quarter for this purpose will be April-June, July-Sept., Oct.-Dec. and Jan.-March of the
financial year.
yearly Incentive
The yearly incentive will be paid based on Equivalent Availability Factor (EAF%) achieved during the
year. The year for this purpose will be April-March of the financial year.
The employees will be entitled to incentive payments on pro-rata basis for actual period of attendance.
The period of training in India for a duration of not more than 15 days and casual leave will be treated
as attendance for the purpose of incentive payment.
The amount of Incentive earnings will neither be termed as pay nor allowance, nor wages.
Accordingly, this amount would not count for any service benefits i.e computation of House Rent
Allowance, Compensatory Allowance, cash compensation, encashment of leave, pay fixation,
Provident Fund, Pension or Gratuity etc.
Employees may be transferred from one department/division to another. In such cases their entitlement
for incentive will be determined as per the entitlement of the department/division in which they are
actually posted.
Relevant particulars and data relating to generation, oil consumption, attendance etc., will be finalized
on the basis of records and accounts maintained by the Company.
APPLICABILITY:
The Scheme shall be applicable to all employees and drawing pay in the regular pay scales of the
Company excluding the following :-
i)Deputationists;
ii)Apprentices/trainees engaged under either Company's own training scheme or Apprentices Act,
1961; and
OTHER CONDITIONS :
If an employee, who has received the Incentive under the Scheme, leaves the services of the Company
within a year of the receipt of the incentive, he shall be liable to refund the same to the company before
his Resignation is accepted.
OBJECTIVE:
Rewarding the employees suitably in recognition and appreciation of long, continuous and satisfactory
service rendered by them, so as to further motivate them and strengthen their range of belongingness to
the Company.
COVERAGE:
The Scheme shall be applicable to all regular employees borne on the establishment of the Company,
but shall exclude the following:
ELIGIBILITY:
An employee shall be eligible for grant of awards under the Scheme on completion of 15 years and 25
years of continuous service.
THE AWARD:
(a)On completion of 15 years of continuous service, the employees shall be presented with a silver
plaque weighing 110 gms.
(b)On completion of 25 years of service, the employees shall be presented with a silver plaque
weighing 250 grams.
HIRING POLICY
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 Authority5.
Posts Authority
(a) Top posts, as per Board's resolution under Agenda Board of Directors
item 5-4, other than posts to which appointments are
made by the President
(b) All executive posts in the level of E7 Chairman & Managing Director
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.
Agencies for Recruitment
All recruitment to the executive cadres inclusive of executive trainees for all Divisions and Projects of
the company will be centralized in the Corporate Center and dealt with by the Corporate HR Division.
Until such time as the Company's Projects do not have their separate training facilities, all recruitments
of Diploma training scheme will be done by the Corporate HR Division.
In respect of all other non-executive personnel, recruitments will be done by the HR Department of the
Division/Project concerned.
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
Application Formalities
No appointment other than appointments on deputation will be made in the Company except on the
basis of an application giving details and particulars as may be prescribed from time to time. While as a
rule, for all recruitments applications should be in the forms prescribed for different categories from
time to time as far as possible, applications on plain paper may also be resorted to wherever necessary
keeping in view the urgency for manning the post and the lead time involved.
Consistent with the guidelines issued by the Bureau of Public Enterprises vide BPE's Memo No.2
(172)/71- BPE (GM) dated August 18, 1971 NTPC will accept applications only if they are forwarded
through proper channels in respect of persons employed in the Central and State Governments and in
those Public Undertakings whose rules provide for carry forward of gratuity, leave, provident fund and
other benefits or transfer on movement to another organization in the public sector with the consent of
both the organizations concerned.
Processing of Applications
(d) Applications have been submitted 'Through Proper Channel' whenever required.
(e) In the case of candidates from Schedule Castes and Scheduled Tribes, OBC, Ex-Servicemen etc.
application is accompanied by a certificate to that effect from the competent authority.
After the applications are finally screened, HR Department will prepare a final list of eligible candidates
in order of merit based on the criteria determined in the course of earlier scrutiny and other relevant
factors keeping in view the reserved vacancies and the special relaxation for candidates belonging to
Scheduled Castes and Scheduled Tribes etc. and this short list after approval by the appointing
authority or the officer to whom powers in this behalf are delegated will form the basis for candidates
being called for selection test and/or interview.
Various selection methods like trade tests, written tests, group discussions etc. may be employed
depending on the requirements of the job for which selection is being made and for this purpose, the
HR Department in association with the concerned Department wherever necessary will evolve and
prescribe uniform methods of selection in all Units for similar jobs.
All direct appointments to every post in the Company, whether regular, temporary, trainee or casual,
except appointments on deputation from Government organisations and public sector undertakings,
will be made only, on recommendation of a duly constituted Selection Board/ Committee.
The candidates included in the short-list of rated applications referred to in Clause 13.5 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.
All candidates called for interview who come from places beyond a distance of 32 kms will be
reimbursed actual expenses incurred on travel to and from the place of interview on production of
money receipt, or any other supporting documentary evidence in respect of the onward journey.
The call letters to the candidates for appearing for interview before the Selection Board, to be issued by
registered post or under certificate of posting, not later than ten clear days before the date of interview
should, inter alia state clearly the post and the grade/grades for which the candidate will be considered
and other formalities that he will be required to comply with prior to the interview.
HR Department will issue the offers of appointment in the prescribed form in duplicate and the contract
of appointment will be completed on receipt of the letter of acceptance along with the copy of offer
duly signed by the candidate.
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 authorised medical officer/officers at the time of appointment
in the Company's service.
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 AND DEVELOPMENT
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 organisation.
The List of current Planned Interventions is given in Annexure I.
TRAINING TARGET:
It shall be the endeavour of the Company to provide seven mandays of training in a training year to
every employee.
Employees shall make full use of the Training Systems to support this endeavour to create a learning
organization.
AGENCIES OF TRAINING:
The agencies that shall deal with the training function in the Company shall include:
Power Management Institute: PMI shall be the apex-training institute and the nodal agency for
Training for the Company. It shall cater to the advanced training needs of all executives of the
Company. It shall specialise in Management Development and advanced technical areas including
Information Technology and shall serve as knowledge dissemination centre for the Company as a
whole.
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 ).
A training code directory, listing out codes for various training courses/programmes shall be evolved,
maintained and circulated by PMI for uniform compilation and classification of training needs
identified and training programmes attended by employees.
NOMINATION FOR TRAINING PROGRAMMES:
Planned Interventions:
The Training Centre/PMI would send to departmental training co-ordinators, schedules for the next
three programmes of a planned intervention, who in turn shall seek preferences for nomination from
the employees in the target group and send the list of employees to the Training Centre/PMI.
External Training:
Employees may generally be considered for nomination to training programmes only in the areas
identified in the Training Needs Analysis and after verifying if a similar programme is being conducted
in-house during the year.
Training centres shall, as far as possible, try to provide training to employees in-house. Employees will
normally be nominated for external programmes only for advanced programmes or where conducting
the programme in-house is not feasible.
PERFORMANCE APPRAISAL
The performance Appraisal System for executives of NTPC has been evolved after wide ranging
discussions abd 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.
Process of Appraisal
The Performance Appraisal System in NTPC is essentially an appraisal by results. It will be based on
work planning and review, where an employee is evaluated against the targets/performance norms set
jointly by him and his superior which in turn are based on the departmental/Group norms and targets
and the overall organizational plans.
Periodic reports on performance for each employee should be correlated and form the basis for arriving
at the annual assessment. The manner in which the monthly/periodic reports are translated into an
annual assessment will be based on the relative priorities of tasks/performance norms assigned and
fulfilled and extent to which constraints were overcome. The appraiser should have a review discussion
with the employee before making his annual assessment
Appraisal for each executive will be done by the Reporting Officer ( to whom the executive reports)
and by Reviewing Officer (to whom the reporting officer reports), which, it is believed, will provide
checks and greater objectivity. The General Manager/Executive Director of the respective division will
Countersign the report in case of agreement, and record his assessment wherever it differs from those
of the reporting and reviewing officers. The Countersigning authority with respect to appraisal reports
of
TABLE OF CONTENT
1. Acknowledgement
2. REL Profile
3. Nature of business
4. Location
5. Product portfolio
6. Swot analysis
7. Entreprenurship/Leadership
8. Compensation/rewards plan
9. Hiring policies
11. Appraisals
13. Conclusions
15. Bibliography
ACKNOWLEDGEMENT
The project Industrial research has been conducted by our group members at RPL Ltd. We have
completed this project, based on the Primary research, under the guidance of Mr ALOK VARMA.
We owe enormous intellectual debt towards my guides Mr.ALOK VARMA, who have augmented
my knowledge in the field of Industrial research.. They have helped us to learn about the process and
giving me valuable insight into the field of industrial research.
We are obliged to all the employees of the HR department for their cooperation during the research.
Our increased spectrum of knowledge in this field is the result of their constant supervision and
direction perspectives.
We would like to thank all the respondents without whose cooperation my project would not have
been possible.
Last but not the least, we feel indebted to all those persons and organizations who have provided helped
directly or indirectly in successful completion of this study.
INTRODUCTION
REL PROFILE
VISION
To be amongst the most admired and most trusted integrated utility companies in the world, delivering
reliable and quality products and services to all customers at competitive costs, with international
standards of customer care - thereby creating superior value for all stakeholders.To set new
benchmarks in standards of corporate performance and governance through the pursuit of operational
and financial excellence, responsible citizenship, and profitable growth.
Our Values
We believe that any business conduct can be ethical only when it rests on the nine core values of
Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring.
These values are not to be lost sight of by anyone at RELIANCE ENERGY LIMITED under any
circumstances irrespective of the goals that are intended to be achieved. To us, means are as important
as the ends.Reliance Power Limited (RPower) is a part of the Reliance Anil Dhirubhai Ambani Group,
one of the India’s largest business houses .RPower is engaged in the development, construction and
operation of power generation projects with a combined planned capacity of 33,480 MW, the largest
portfolio of private power generation assets under development in India. The Company has the unique
distinction of securing three out of four Ultra Mega Power Projects (UMPPs) awarded by the
Government of India on the basis of tariff based competitive bidding at Sasan in Madhya Pradesh,
Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand. Our projects are diverse in geographic
location, fuel source and offtake. RPower strongly believes in clean green power and our projects will
be using technologies with minimum environment impact.
They include seven coal-fired projects (18,580 MW) to be fueled by reserves from captive mines and
supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves
from the Krishna Godavari Basin (the "KG Basin") off the east coast of India, and seven hydroelectric
projects (4,620 MW), three of them in Arunachal Pradesh and one in Uttarakhand. Reliance Power has
been successful in bagging three Ultra Mega Power Projects (3,960 MW each at Sasan in Madhya
Pradesh & Tilaiya in Jharkhand and 4,000MW at Krishnapatnam in Andhra Pradesh). The 7,480 MW
project to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired power project at a
single location in the world. We intend to sell the power generated by these projects under a
combination of long-term and short-term PPAs to state-owned and private distribution companies and
industrial consumers.
Key Developments
Financial Closures
As you are aware, our Company has embarked upon a capacity addition programme in generation that
is unparalleled in the history of the Indian Power Sector. We plan to add over 30,000 MW in the next
7-8 years. Since financing these projects will entail significant amounts of debt, achieving timely
financial closures is of utmost importance. It is therefore a matter of pride that we were able to secure
the largest ever debt on non-recourse project finance basis across any industry in India for the Sasan
Ultra Mega Power Project at a time when the External Debt Market had gone completely dry and the
domestic lenders had turned ultra-cautious, thanks to the unfolding global credit crisis. The Sasan
closure also represents the first ever appraisal of an integrated coal mine cum power project of this scale
on project finance basis in the country. We were also successful in getting our appraisals completed for
the 600-MW expansion at Rosa and the 300-MW at Butibori. In addition, we obtained part sanction
for the Krishnapatnam Ultra Mega Power Project. In all, we were able to get appraisals done or obtain
sanctions for project with an investment outlay of more than Rs 40,000 crore (US$ 8 billion).
Progress on Project Execution Given our large generation portfolio, it is imperative that we focus our
attention on ensuring that we implement all our projects on time and at costs which are lower than our
initial estimates. Indeed, we are committed to setting new benchmarks in project costs and time
schedules. The Rosa Power Plant, located in Uttar Pradesh, is currently ahead of schedule and we
expect it to be operational before the end of FY 2009-10. In 2011, we expect to commission the
expansion units at Rosa and the upcoming plants at Butibori. We have also advanced, by almost three
years, the schedule for the commissioning of the first Ultra Mega Power Project at Sasan. We hope to
commission two units of 660 MW each at Sasan before the end of FY 2011-12. We are well aware of
the complex challenges that lie in the way of successful execution of power projects. But given our
traditional strength in project management and the experience of our execution teams, we remain
confident of successfully overcoming any odds.
New Projects
The power sector in India continues to offer exciting new opportunities. During the year, we won,
through a competitive bidding process, the right to develop the 3,960 MW Tilaiya Ultra Mega Power
Project located in the State of Jharkhand. Aside from the significant synergies that it has with other
power projects that we are developing, Tilaiya also presents the added advantage of having captive coal
mines allocated for it. While coal-based power projects provide large headroom for growth, we are
equally confident about the benefits and advantages that would accrue from having hydro power
projects in our portfolio. We have therefore keenly participated in the bids for such project s and have
recently been awarded four more hydro power projects for development in the state of Arunachal
Pradesh. With this, the total hydro capacity in our portfolio has gone up to 4,620 MW, while our
aggregate portfolio now stands at more than 33,000 MW.
Performance review
The salient points of company’s financial performance are:
Total income of Rs 334.72 crore as compared to Rs 132.87 crore in the previous year.
Net profit of Rs 248.90 crore as compared to Rs 94.67 crore in the previous year.
Earnings per share (EPS) of Rs 1.04 as compared to Re 0.17 in the previous year.
CORE VALUES
Business Ethics
Customer Focus
Organizational & professional Pride
Mutual Respect and Trust
Innovation and Speed
Total Quality for Excellence
HUMAN RESOURCE
Powering India's Growth : Through people
HUMAN RESOURCE MANAGEMENT
For any business to run one needs four M’s namely Man, Money, Machine and Material. Managing
other three resources other than men, are easy to handle. Men are very difficult to handle because no
two human beings are similar in all way. Human beings can think, feel and give response. Handling
humans is more important for any business because human being have crucial potential that may be
very profitable for the business. And these potential can be developed to an unlimited extent if they are
provided with proper environment. So the function of managing men is as important as finance or
marketing function in any business. HRM refers to practices and policies framed for the management
of human resources in an organization, including Recruiting, screening, rewarding and appraising.”
Human resources have at least two meanings depending on context. The original usage derives from
political economy and economics, where it was traditionally called labor, one of three factors of
production. The more common usage within corporations and businesses refers to the individuals
within the firm, and to the portion of the firm's organization that deals with hiring, firing, training, and
other personnel issues. This article addresses both definitions.
The objective of Human Resources is to maximize the return on investment from the organization's
human capital.
THE SCOPE OF HRM is indeed very vast. All major activities in the working life of a worker-from
the time of his or her entry into the organization until he or she leaves- come under the purview of
HRM. Specifically, the activities include are
HR Planning
Job analysis and design
Recruitment and selection
Orientation and placement
Training and development
Performance Appraisal and Job evaluation
Employee and executive remuneration
Employee Motivation
Employee Welfare
It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair,
and consistent manner.
"Human resource management aims to improve the productive contribution of individuals while
simultaneously attempting to attain other societal and individual employee objectives." Schwind, Das
& Wagar (2005).
HR STRUCTURE
CORPORATE HR: Activities taken up by Corporate HR are
Policy making
Implementing suggestions - HEWITT CONSULTANT
Strategic planning
HR FUNCTIONS
TALENT ACQUASITION
Sourcing activity
TALENT DEVELOPMENT
Performance management system
Training
Carrier planning
Suggestion planning
TALENT MANAGEMENT
Operation HR
RECRUITMENT PROCESS
STEP 1: MANPOWER PLANNING .
AOP (Annual Operating Plan), this process is taken up every year. It is taken up at Personal Level and
Entity Level. Several points like Revenue generation, Acquisition number, etc.
INTERNAL SOURCING
Employee Reference
Re-employment of former employee
EXTERNAL SOURCING
Placement Consultant – Ruchika, the Age, the Avenue.
Job Portals - Monster, NAUKRI.
Campus Recruitment
STEP 3: APPROVAL.
The HR executives will Negotiate the CTC with the candidate.
The approval is sent to the CRC (Corporate Recruitment Cell).
Then after it is sent to ECRC.
Then the same is sent to CRL.
The same is then sent to Management for SAP Applicant Code.
The applicant code is given to HR CIRCLE.
OFFER is made to the candidate, which leads to the Joining Procedure.AVERAGE TIME PERIOD:
The process of recruitment takes about 10 – 15 days
ELIGIILITY CRITERIA:
Education Qualification – MBA with any specialization
Not frequent job changes
Tenure of last job should at least be 1.5 – 2 yrs
OTHER REQUIREMENTS:
Reference check is usually done for High level job
The recruitment may differ with the current position of the business
INTERNAL SOURCING
In the event of an open position in Reliance Communication, suitable candidates are first searched
internally within the organization. This is based upon in-house talent which could be redeployed.
Advertisement for internal vacant position is done by following two ways:
Through sending mail to all Reliance Infocomm employees across all locations including DAKC
(Dhirubhai Ambani Knowledge City)
Through DAKC Circular Employees of Reliance Communication who have completed more than 12
months of continuous service only those employees can apply for position placed on Intranet. Internal
candidates are considered in accordance with their abilities and potential. The process is coordinated by
CRC (Central Recruitment Cell) at Corporate Office.
EMPLOYEE REFERENCE: In Reliance Communication, Employees can refer a candidate
with whom he/ she have worked in his/ her previous employment. Employees can check available
vacancies on Intranet and can submit the resumes of prospective candidates who fit the Job profile.
RE-EMPLOYMENT OF FORMER EMPLOYEE: Re Hiring of an employee
done in Reliance Communication with a view to take trained manpower back in the company. Re
Hiring is done as per the policy issued by Central Recruitment Cell at Corporate Office
EXTERNAL SOURCING
JOB PORTAL: The spread of Internet has enabled employers to search for candidates globally and
has made recruitment easier. If vacancy arises, Reliance Communication browses the profile of
candidates from the Job portal like naukri.com, monsterindia.com and then candidates are accessed
through e-mail or telephone.
Weakness:
Crude prices: Nearly 70% of India's crude requirements are fulfilled by imports and this figure is
likely to increase going forward. Crude prices have breached the $45 barrier again and are likely to
remain at around $40 per barrel range. As per IEA, India is one of the most inefficient countries among
developing nations as far as energy usage is concerned. Such high crude prices are likely to impact
margins of oil marketing companies. Given the political implications, retail prices may continue to lag
the rise in input cost.
Lack of freedom: Although the government has decided to provide autonomy to oil companies
to increase petrol and diesel prices within a 10% band, other products such as LPG and kerosene
continue to remain under the government controlled price mechanism.
As per the current estimates, the subsidies on LPG amount to Rs 90 per cylinder after factoring in duty
cuts and that on kerosene is over Rs 6 per litre.
While the government has managed to reduce its share in subsidies, select oil companies are being
forced to absorb the losses.
Opportunities:
Equity Oil: Major oil marketing companies are now venturing into upstream exploration and
production activities so as to secure crude supply. To put things in perspective, IOC and OIL India are
likely to jointly bid for oil fields aboard. At the same time, ONGC's wholly owned subsidiary, ONGC
Videsh (OVL) has acquired stakes in over 9 countries in its quest to attain the 20 MMT (million metric
tonnes) by 2020. This backward integration is an opportunity for IOC to secure at least 25% of its crude
oil requirements for the refineries.
Natural Gas: Natural gas has the potential to be the fuel of the future with demand outpacing
supply by more than two times. Such high scarcity of natural gas provides a big opportunity for oil
companies. The below mentioned table indicates the allocation to the various core sectors and the
shortage faced by them, thereby giving an idea of the potential for growth. Although Petronet LNG
has now started importing natural gas, the future holds promise as Reliance Industries' Krishna
Godavari Basin goes into commercial production in FY06 and Shell commences its terminal at Hazira.
More exploration activities are in the pipeline and this could reduce the country's dependence on crude
in the long term.
Threats:
Competition: Until FY04, oil-marketing companies had complete control over the downstream
marketing business while private sector players were restricted to only refining. However, with entry of
private players such as Reliance, Essar Oil and Shell (in the waiting), the sector is likely to witness
increased competition going forward. The oil PSUs had hitherto developed a fortnightly pricing
mechanism, which is likely to discontinue. The price of petrol and diesel is artificially kept high so as to
cross-subsidize LPG and kerosene. Since private players will not be bound to provide for these
subsidies, PSU marketing players are likely to suffer from lower throughput per outlet.
Continuing government interference: During the first six months of the current fiscal year, the oil
marketing companies were refrained from increasing product prices due to political reasons.
This affected margins of downstream players. Going forward, if the government interference
continues, oil-marketing companies will be at a disadvantage.
Although we believe the industry is likely to witness increased competition, the initial retail rush by
private sector players has slowed down. PSU marketing companies have already stepped up their
expansion plans and to that extent, have created significant entry barriers for private players.
Although throughput per outlet (sales per outlet) is likely to decline in the future, we believe that any
substantial entry of the private players would indirectly benefit the PSUs, as the government's pricing
policy will not hold much water and the market forces would determine pricing.
REL’S CULTURE
Core values are both intensely and widely shared
Climate of high behavioral control
Low employee turnover
High agreement among the employees, for what reliance stands for.
All these point to the fact that strong cohesiveness, loyalty and organization commitment exist in
lowering the attrition Rate.
CONCLUSION
NTPC is emerging as a diversified power major with presence in the entire value chain of the power
generation business. Apart from power generation, which is the mainstay of the company, NTPC has
already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 317th
in the ‘2009, Forbes Global 2000’ ranking of the World’s biggest companies.
The total installed capacity of the company is 30, 644 MW (including JVs) with 15 coal based and 7
gas based stations, located across the country. In addition under JVs, 3 stations are coal based &
another station uses naptha/LNG as fuel. By 2017, the power generation portfolio is expected to have a
diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000
MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from
Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which
includes capacity addition through green field projects, expansion of existing stations, joint ventures,
subsidiaries and takeover of stations.
NTPC has been operating its plants at high efficiency levels. Although the company has 18.79% of the
total national capacity it contributes 28.60% of total power generation due to its focus on high
efficiency.
NTPC is among the largest five companies in India in terms of market capitalisation. NTPC has been
awarded No.1, Best Workplace in India among large organisations for the year 2008, by the Great
Places to Work Institute, India Chapter in collaboration with The Economic Times.
Right from social to developmental work of the community and welfare based dependence to creating
greater self reliance; the constant endeavour is to institutionalise social responsibility on various levels.
There is an ample scope for companies in the energy sector in this current trend demanded by the
consumer.
The market size is increasing day by day and the demand for more electricity is arising.The companies
like NTPC(add more companies) are trying to capture more market share with their new strategies and
better services. As per the companies which we chosen for our research work i.e.NTPC and Reliance
power limited is concern the company should become liberal on his policies. Reliance power share are
new comer in the market but company reputation has provided company a big amount of profit but for
maintaining the growth rate it should give its share holders more facilities for opening of more
possibilities forthe company future sake.
NTPC would have to make changes in its Compensation System. To encourage the employees to offer
their help NTPC may have a system of rewarding people who exhibit the right behaviors. Recognition
is the most powerful motivation, receiving acknowledgement that the contributions of the employees
makes a difference. NTPC can use more innovative ways like of having "MOST HELPING
EMPLOYEE OF THE MONTH" with regular Notice Board entries to it. Also such initiatives of
helping colleagues can be made a part of the annual appraisal. Instead of Knowledge- hoarding
knowledge dissemination and imparting can be made part of appraisal criteria.