HR PRACTICES &CULTURE

IN
NLC INDIA LTD, NEYVELI

INTERNSHIP TRAINING REPORT – 2019

An Internship report submitted in partial fulfilment of the

requirement for the degree of Master of Business Administration

By

R. RAGUNATHAN (2018PECMB147)

CHENNAI-600 123
JUNE 2019
 NLC INDIA LIMITED, NEYVELI
‘NAVRATNA’- (A Government of India Enterprise) NEYVELI,
TAMIL NADU

CERTIFICATE

This is to certify that the Internship Training done at NLC INDIA LIMITED,
NEYVELI on the topic “ A REPORT ON HR PRACTICES &CULTURE IN NLCIL” is
a bonafide work done by R.RAGUNATHAN a student of MBA, under my supervision
during the period from 01-06-2019 to 30-06-2019 at CORPORATE OFFICE , NLCIL
Neyveli.

SOREDDY RAMKUMAR
GUIDE
(Manager HR/ EB/CO)

Permitted to submit the report to College/ University Authorities

PLACE: NEYVELI CHIEF MANAGER / L&D

DATE : Learning & Development Centre,

NLCI Limited, Neyveli.

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 DECLARATION

I, RAGUNATHAN.R, hereby declare that the Internship Training of “A REPORT ON

HR PRACTICES &CULTURE IN NLCIL” Submitted by me awarding the Degree
Master of Business Administration under the supervision of Mr. Soreddy Ramkumar ,
Manager, HR EB/CO Neyveli Lignite Corporation India Limited, Neyveli.

This report is for reference only and no part of the report will be published or
copied anywhere without the written permission from Neyveli Lignite Corporation India
Limited Officials.

Signature of the Student

(R.RAGUNATHAN)

PLACE: NEYVELI

DATE:

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 ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to The Dean

Dr.MAHALAKSHMI.V for extending his full support to my summer internship training.

I sincerely thank Dr.MAHALAKSHMI.V, Program Chair of the MBA Department

and
Dr.PADMA, Internship Faculty Coordinator for guiding me throughout my summer
Internship Training. I would also like to thank our department faculties for their
encouragement and support.

I would like to extend my sincere thanks to Mr. A.KATHIRVEL, Chief Manager

(L&DC) and ACM Learning and Development Centre NLCIL, for having given me the
permission to undergo the Internship training in NLCIL and support throughout the training.

I express my hearty thanks to Mr. SOREDDY RAMKUMAR, Manager/ HR/ EB/CO

in NLCIL for his timely guidelines and valuable suggestions throughout my training period.

I thank the executives and each and every person in NLCIL who contributed significantly
and rendered their cordial assistance for the successful completion of this training.

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 INDEX

1. INTRODUCTION :........................................................................................6
2. HISTORY :......................................................................................................7
3. INDUSTRY PROFILE – (Mining and Electric Industry) :......................10
4. COMPANY PROFILE :...............................................................................10
5. NEYVELI LIGNITE COPORATION OF INDIA LTD – OVERVIEW :
………………………………………………………………………11
6. PERCEPTION :............................................................................................12
7. HR PRACTICES: …………………………………………………………… 15
8. PERFORMANCE MANGEMENT SYSTEM :........................................35
9. PROBLEMS :...............................................................................................37
10. TALENT MANAGEMENT :.....................................................................39
11. ORGANIZATIONAL CULTURE :...........................................................41
12. BENEFITS FOR EMPLOYEES AT NLC :.............................................42
13. SWOT ANALYSIS :...................................................................................45
14. LEARNINGS :............................................................................................46
15. CONCLUSIONS :......................................................................................47

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1. INTRODUCTION :
‘NLC India Limited (NLCIL) formerly Neyveli Lignite Corporation is a ‘Navratna’ profit
making, Government of India Enterprise engaged in mining of lignite and generation of
power through lignite based thermal power plants. NLCIL was established by GoI in 1956,
following the discovery of lignite deposits in Neyveli, Tamil Nadu. NLCIL comes under
administrative control of Ministry of Coal, GoI and serves as an important source of power
generation to the states of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Telangana,
Rajasthan and Union Territory of Puducherry. It is a 12,000 crores per annum turnover
company. It is a public sector company. It has 13900 employees approximately. Main
functioning domains are HR and Finance. Projects should get approval from Ministry of
Coal. The next person in the hierarchy is the secretary.

NLCIL currently operates four open cast lignite mines of total capacity of 30.6 Million
Tonnes per Annum (MTPA) and five thermal power stations with a total installed capacity of
3240 MW. The company, through its subsidiary NTPL, has also recently commissioned a
1000 MW coal based power plant (comprising 2 Units of 500 MW capacity each), 10 MW
solar plant and
30 MW wind power plant thus bringing the total installed capacity of the company to 4280
MW.

The main activities of NLC are Lignite Mining and Power Generation. However, the
company has also diversified into generation of renewable energy through Solar Power
Generation and Wind Power Generation.

The Business portfolio of the company is as under:

1. Lignite Mining
2. Thermal Power Generation
3. Solar Energy Generation
4. Wind Power Generation
5. Coal Mining

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2. HISTORY :
Neyveli Lignite Corporation India Ltd. (NLCIL) is India's largest lignite mining
company, and is also one of the country's leading power generation companies. The company
operates three open cast mines in Neyveli, in the state of Tamil Nadu at the south eastern tip
of India, producing some 24 million tons of high-grade lignite per year. Mine I, the
company's original mine, is operated over an area of nearly 17 square kilometers and offers a
reserve of nearly 300 million tons. Mine II, first tapped in early 1984 and expanded in the
early 1990s, features a reserve of nearly 400 million tons. The total reserves in the Neyveli
field are estimated at more than two billion tons. Most of that production is used in NLCIL's
two thermal power generation plants, which combine for a total capacity of 2,070 megawatts.
After shutting down its fertilizer and briquette and carbonization plants in the early 2000s,
NLCIL has begun a drive to expand its power generation capacity. In 2003, the company
began construction of a greenfield power generation facility in Tuticorin, in Tamil Nadu, with
a proposed capacity of as much as 1,000 megawatts. In 2004, the company received approval
to expand beyond its home state, and is beginning preparations to build a 250 megawatt
facility in Bikaner, near Rajasthan. NLCIL has also been tapped to restart the nearly 4,000-
megawatt plant in Hirma, originally developed by a Mirant-Reliant partnership. Owned at 94
percent by the Indian government, NLCIL has as its primary customer the Tamil Nadu
Electricity Board. In 2003 the company posted revenues of INR 2,681.48 crore ($601.1
million).

2.1 POWERING THE ECONOMY IN THE 1950s :

The vast Indian subcontinent had always offered an abundant supply of natural resources.
Particular interest was placed on exploring for fossil fuel sources in what was later to become
the Tamil Nadu region along the country's south eastern tip. Among the first to be discovered
were the peat fields in Calimere, in 1828. The first lignite deposits, a still more valuable fuel
source, were located along the coast region near Cannanore in1830. This initial deposit was
followed by the discovery of others in the region, at Beypore, Pondicherry, and elsewhere.
French engineers began drilling bore holes in then French-dominated Bahoor, and succeeded
in locating significant lignite deposits in Kasargod and in the region around Cuddalore, near
Neyveli, in 1884.

Attention again focused on the region around Neyveli in the 1930s. Neyveli was then a small
village in Tamil Nadu; its chief resources at the time were its cashew and jackfruit forests.
The earliest discovery of exploitable lignite deposits in Neyveli was attributed to
JambulingamMudaliyar, a prominent local landlord who controlled some 600 acres across
Neyveli, Cuddalore, Mandarakuppam, and Virudhachalam. Farms covered only a small part
of Mudaliyar's land. In the early 1930s, Mudaliyar began sinking well holes, searching for a
source of water in order to transform more of his holdings into cultivatable land. Water
proved easy to find--but brought with it pieces of a black substance that local workers called
"black clay," which were thrown away. Yet, once dried by the sun, the "black clay" proved
highly combustible.

Mudaliyar brought the existence of lignite to the attention of the British authorities, hoping
to convince them to launch a lignite mining operation in Neyveli. Mudaliyar began drilling
new bore holes in 1935, discovering large quantities of the substance. Samples were sent to
the governor of Madras for testing, yet the British colonial government remained uninterested

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in pursuing the project. Instead, Madras-based Binny& Co. began sinking bore wells in Aziz
Nagar, near Neyveli, in 1941. That company succeeded in discovering a significant lignite
deposit, but, lacking the equipment to pursue further drilling operations, the company
withdrew.

The colonial government's Geological Survey of India at last began drilling in Neyveli in
1943. Over a three-year period, more than 30 bore wells were sunk, confirming the region's
lignite potential. Following India's independence, the new government appointed H.K.
Ghosh--who later earned the nickname "Lignite Ghosh"--to oversee further lignite
exploration activities. Ghosh began sinking a new series of wells in 1947. Initial wells were
abandoned, however, after they became blocked with water and sand. By 1948, Ghosh had
discovered the first viable site, and succeeded in drawing out.

Neyveli Lignite Corporation India Ltd was created as a government-owned enterprise in 1956
in order to launch the full-scale exploitation of the lignite field. NLC's mandate was to
produce lignite, and to construct and operate a lignite-burning thermoelectric plant providing
electrical power to the state of Tamil Nadu. Construction on Neyveli Mine I began in 1957,
using technology and equipment brought in from Germany. The mine by then extended over
an area of nearly 17 square kilometers, with an estimated reserve of 287 million tons. Mine I
was constructed to produce a capacity of 6.5 million tons per year.
With an "overburden" varying from 70 to 95 meters, the Neyveli field's first lignite seam--
with a thickness ranging from ten to 23 meters--was exposed only in 1961. Full-scale lignite
mining was launched in 1962. That year saw the commissioning of the first stage of NLC's
Thermal Plant Station I. Built with technology and assistance from the Soviet Union, TPS-1's
initial capacity stood at just 50 megawatts. By the end of the decade, however, NLC had
commissioned a total of six 50 megawatt units and three 100 megawatt units. All of NLC's
power production was then taken up by the Tamil Nadu Electricity Board.

As India began its industrialization program in the 1970s, demand for electrical power rose
steadily. By the late 1970s the decision was made to extend NLC's operations to include a
second mine, which in turn provided support for a new thermal power station. The new mine,
Mine II, was located some five kilometers south of the original mine, on a 26 square
kilometer site that exploited the same lignite seam. The total exploitable lignite deposits at the
site were estimated at 398 million tons. Construction of the open pit mine, with an
overburden reaching up to 103 meters and a lignite seam between eight and 22 meters in
thickness, was launched in 1978. Mine II's initial production capacity was placed at 4.7
million tons per year.

Mine II's lignite seam was exposed by September 1984, and full-scale lignite production
began in 1985. By then, NLC had already been granted authorization to increase the scale of
the Mine II project to 10.7 million tons per year. The mine reached full capacity in 1991.
Mine II's production fueled NLC's Thermal Power Station II.

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Construction began on the new plant in 1978, with an initial capacity of 630 megawatts. With
the increase in Mine II's production levels, TPS II's capacity was expanded as well, to 1,470
megawatts.

The first 210-megawatt unit was commissioned in 1986, and the plant reached full capacity in
1993. Also in 1986, the Indian government converted NLC to a public company, selling
shares to institutional investors as well as placing a small number of shares on the Bombay
Stock Exchange. Nonetheless, the government's control of NLC remained at more than 94
percent.

2.2 EMPHAZING POWER GENERATION IN THE NEW CENTURY :

By that time the company had launched a Life Extension Project on TPS I, intended to extend
the plant's viability by another 15 years. The project, launched in 1992, was completed in
1999. In the meantime, NLC had also been granted authorization to expand the capacity of
the Mine
I site, raising total annual production to 10.5 million tons. As part of that effort, the company
also launched an extension of TPS-1 in 1996, adding an additional 420 megawatts to the
plant's total capacity.

In 1998, the government authorized NLC to expand its lignite production yet again, with the
construction of an extension to its original mine as a new site, Mine IA. Construction of the
mine began in 2000, with production of lignite expected to begin by the mid-2000s. The
company also began preparations for the expansion of Mine II and the proposed construction
of a Mine III, launching an exploration and drilling operation in 1999.

Low demand for fertilizer products led the company to close its fertilizer plant in 2003. By
then, NLC had already shut down its outdated Briquetting & Carbonization operations as
well. Instead, NLC focused on expanding its power generation operations. In 2002, the
company announced its intention to expand production of Mine II to 15 million tons per year
in order to fuel the extension of its TPS-2 facility to nearly 2,000 megawatts.

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3. INDUSTRY PROFILE – (Mining and Electric Industry) :
Minerals constitute the back-bone of economic growth of any nation and India has been eminently
endowed with this gift of nature. There are many evidences that exploitation of minerals like coal, iron-ore,
copper, lead-zinc has been going on in the country from time immemorial. However, the first recorded
history of mining in India dates back to 1774 when an English Company was granted permission by the
East India Company for mining coal in Raniganj. The first oil well was drilled in Digboi in the year 1866 -
just seven years after the first ever oil well was drilled anywhere in the world viz. in Pennsylvania State,
USA in 1859. Mining activities in the country however remained primitive in nature and modest in scale
uptill the beginning of the current century. Thereafter, with progressive industrialisation the demand for
and hence the production of various minerals gradually went up. After India became independent, the
growth of mining under the impact of successive Five Year Plans has been very fast. There are ambitious
plans in coal, metalliferous and oil sectors to increase production of minerals during the 8th Five Year
Plan and thereafter.

4. COMPANY PROFILE :
4.1 VISION :

• To emerge as a leading mining company, continue and International Organizations engaged in

power generation and mining.
• To be a socially responsible company and strive for operational excellence in mining and
exploration.

4.2 MISSION :

• Strive towards greater cost competitiveness and work towards continued financial strength.
• Continually imbibe best practices form the best Indian
• Be a preferred employer by offering attractive avenues of career growth and excellent work
environment and developing human resources to match international standards.
• To play an active role in society and be sensitive to environmental issues.

5. NEYVELI LIGNITE COPORATION OF INDIA LTD – OVERVIEW

:
• Born as a Government sponsored commercial concern in 1956
• Rich Heritage with Over 6 Decades of Glorious presence
• Core Business – Mining & Power Generation (Renewable & Non Renewable )
• A Navratna CPSE under Ministry of Coal, GOI
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• Lignite Mining : 30.6 MPTA, Power Generation : 4295 MW
• Net Worth : 13794.05 Cr.
• Market Capital : 17,000 Cr. ( Approx.)

Neyveli Lignite Corporation India Ltd was registered as a company on 14th November 1956. The mining
operations in MINE -1 were formally inaugurated on 20th May 1957 by the Prime
Minister Pandit Jawaharlal Nehru. Neyveli Lignite Corporation has been conferred with “MINIRATNA”
status in 30.08.2004 and “NAV RATNA” status on 11th April 2011. A pioneer among the public sector
undertakings in energy sector, NLCIL operates

• Three Opencast Lignite Mines of total capacity of 28.5 Million Tonnes per Annum at Neyveli and
one open cast lignite Mine of capacity 2.1 Million Tonnes per Annum at Barsingsar, Rajasthan.
• Three Thermal Power Stations with a total installed capacity of 2490 Mega Watt at Neyveli and
one Thermal Power Station at Barsingsar, Rajasthan with an installed capacity of 250 Mega Watt

5.1 TAMILNADU (Other Project) :

• Tuticorin : NTPL (JV with TANGEDCO) - TPS – 1,000 MW Tirunelveli : Wind – 45 MW

5.2 NEYVELI, TAMILNADU :

• Corporate Office
• Lignite Mines
• Mine I – 10.5 MTPA
• Mine IA – 3.0 MTPA
• Mine II – 15.0 MTPA
• Power
• TPS I – 600 MW
• TPS I Expn – 420 MW
• TPS II – 1,470 MW
• TPS II Expn– 500 MW
• Renewable Energy
• Solar – 10 MW
• Service Units – 15

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6. PERCEPTION:

(from the Latin perceptio, percipio) is the organization, identification, and interpretation of sensory
information in order to fabricate a mental representation through the process of transduction, which sensors
in the body transform signals from the environment into encoded neural signals. All perception involves
signals in the nervous system, which in turn result from physical stimulation of the sense organs.
For example, vision involves light striking the retinas of the eyes, smell is mediated by odor molecules and
hearing involves pressure waves. Perception is not the performance appraisalsive receipt of these signals,
but can be shaped by learning, memory and expectation. Perception involves these "top-down" effects as
well as the "bottom-up" process of processing sensory input. The "bottom-up" processing is basically low-
level information that's used to build up higher-level information (i.e. - shapes for object recognition). The
"top-down" processing refers to a person's concept and expectations (knowledge) that influence perception.
Perception depends on complex functions of the nervous system, but subjectively seems mostly effortless
because this processing happens outside conscious awareness.
Since the rise of experimental psychology in the late 19th Century, psychology's understanding of
perception has progressed by combining a variety of techniques. Psychophysics measures the effect on
perception of varying the physical qualities of the input. Sensory neurosciencestudies the brain mechanisms
underlying perception. Perceptual systems can also be studied computationally, in terms of the information
they process. Perceptual issues in philosophy include the extent to which sensory qualities such as sounds,
smells or colors exist in objective reality rather than the mind of the perceiver.
Although the senses were traditionally viewed as performance appraisalsive receptors, the study of illusions
and ambiguous images has demonstrated that the brain's perceptual systems actively and pre-consciously
attempt to make sense of their input. There is still active debate about the extent to which perception is an
active process of hypothesis testing, analogous to science, or whether realistic sensory information is rich
enough to make this process unnecessary.

The perceptual systems of the brain enable individuals to see the world around them as stable, even though
the sensory information may be incomplete and rapidly varying. Human and animal brains are structured in
a modular way, with different areas processing different kinds of sensory information. Some of these
modules take the form of sensory maps, mapping some aspect of the world across part of the brain's surface.
These different modules are interconnected and influence each other. For instance, the taste is strongly
influenced by its odor.
6.1 Process and terminology
The process of perception begins with an object in the real world, termed the distal stimulus or distal object.
By means of light, sound or another physical process, the object stimulates the body's sensory organs.

These sensory organs transform the input energy into neural activity—a process called transduction. This
raw pattern of neural activity is called the proximal stimulus. These neural signals are transmitted to the
brain and processed.[2] The resulting mental recreation of the distal stimulus is the percept. Perception is
sometimes described as the process of constructing mental representations of distal stimuli using the
information available in proximal stimuli.
An example would be a person looking at a shoe. The shoe itself is the distal stimulus. When light from the
shoe enters a person's eye and stimulates their retina, that stimulation is the proximal stimulus. The image of
the shoe reconstructed by the brain of the person is the percept. Another example would be a telephone

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ringing. The ringing of the telephone is the distal stimulus. The sound stimulating a person's auditory
receptors is the proximal stimulus, and the brain's interpretation of this as the ringing of a telephone is the
percept. The different kinds of sensation such as warmth, sound, and taste are called "sensory modalities".
[6][8]
Psychologist Jerome Bruner has developed a model of perception. According to him people go through the
following process to form opinions:.[
When a perceiver encounters an unfamiliar target we are opened different informational cues and want to
learn more about the target.
In the second step we try to collect more information about the target. Gradually, we encounter some
familiar cues which helps us categorize the target.

At this stage the cues become less open and selective. We try to search for more cues that confirm the
categorization of the target. At this stage we also actively ignore and even distort cues that violate our initial
perceptions. Our perception becomes more selective and we finally paint a consistent picture of the target.
The Perceiver, the person who becomes aware about something and comes to a final understanding.
There are 3 factors that can influence his or her perceptions: experience, motivational state and
finally emotional state. In different motivational or emotional states, the perceiver will react to or
perceive something in different ways. Also in different situations he or she might employ a
"perceptual defence" where they tend to "see what they want to see".
The Target. This is the person who is being perceived or judged. "Ambiguity or lack of information
about a target leads to a greater need for interpretation and addition."
The Situation also greatly influences perceptions because different situations may call for additional
information about the target.
Stimuli are not necessarily translated into a percept and rarely does a single stimulus translate into a
percept. An ambiguous stimulus may be translated into multiple percepts, experienced randomly,
one at a time, in what is called "multistable perception". And the same stimuli, or absence of them,
may result in different percepts depending on subject’s culture and previous experiences. Ambiguous
figures demonstrate that a single stimulus can result in more than one percept; for example the
Rubin vase which can be interpreted either as a vase or as two faces. The percept can bind sensations
from multiple senses into a whole. A picture of a talking person on a television screen, for example,
is bound to the sound of speech from speakers to form a percept of a talking person. "Percept" is also
a term used by Leibniz,[10] Bergson, Deleuze and Guattari[11] to define perception independent
from perceivers.

6.2 Perception and reality

In the case of visual perception, some people can actually see the percept shift in their mind's eye.
Others, who are not picture thinkers, may not necessarily perceive the 'shape-shifting' as their world
changes. The 'esemplastic' nature has been shown by experiment: an ambiguous image has multiple
interpretations on the perceptual level.
This confusing ambiguity of perception is exploited in human technologies such as camouflage, and
also in biological mimicry, for example by European Peacock butterflies, whose wings bear eye
markings that birds respond to as though they were the eyes of a company.

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 6.3Theories
Perception as hypothesis-testing
Cognitive theories of perception assume there is a poverty of stimulus. This (with reference to
perception) is the claim that sensations are, by themselves, unable to provide a unique description of
the world. Sensations require 'enriching', which is the role of the mental model. A different type of
theory is the perceptual ecology approach of James J. Gibson. Gibson rejected the assumption of a
poverty of stimulus by rejecting the notion that perception is based in sensations – instead, he
investigated what information is actually presented to the perceptual systems. His theory "assumes
the existence of stable, unbounded, and permanent stimulus-information in the ambient optic array.
And it
supposes that the visual system can explore and detect this information. The theory is information-
based, not sensation-based." He and the psychologists who work within this paradigm detailed how
the world could be specified to a mobile, exploring organism via the lawful projection of
information about the world into energy arrays. Specification is a mapping of some aspect of the
world into a perceptual array; given such a mapping, no enrichment is required and perception is
direct perception
Perception-in-action
An ecological understanding of perception derived from Gibson's early work is that of "perception-
in-action", the notion that perception is a requisite property of animate action; that without
perception action would be unguided, and without action perception would serve no purpose.
Animate actions require both perception and motion, and perception and movement can be described
as "two sides of the same coin, the coin is action". Gibson works from the assumption that singular
entities, which he calls "invariants", already exist in the real world and that all that the perception
process does is to home in upon them. A view known as constructivism (held by such philosophers
as Ernst von Glasersfeld) regards the continual adjustment of perception and action to the external
input as precisely what constitutes the "entity", which is therefore far from being invariant.
Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic necessity to
allow an initial measure of understanding to be established prior to the updating that a statement
aims to achieve. The invariant does not and need not represent an actuality, and Glasersfeld
describes it as extremely unlikely that what is desired or feared by an organism will never suffer
change as time goes on. This social constructionist theory thus allows for a needful evolutionary
adjustment.
A mathematical theory of perception-in-action has been devised and investigated in many forms of
controlled movement, and has been described in many different species of organism using the
General Tau Theory. According to this theory, tau information, or time-to-goal information is the
fundamental 'percept' in perception.

7. HR PRACTICES :

The HR domain in NLC has various categories. They are general administration department, establishment
department, industrial relations (IR) department, attendance monitoring cell (AMC), disciplinary action
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(DSLC), recruitment cell, public relations (PRO), security management and vigilance department. Various
HR managers are there separately for each and every category. NLC has both centralised HR managers and
also unit wise HR managers. Centralised managers are those who look upon all the categories in general.
Decentralised or unit level managers are those which work within units such as mining, power, etc.
7.1 CORPORATE FUNCTIONS OF VARIOUS HR MANAGERS :

Chief General Manager (CGM)/HR - Industrial relations, wage revision, DLSC action cell, contract labour
cell, VIP reference, SC/ST/OBC cell.
Chief General Manager (CGM)/HR - Corporate social responsibilities, SDC.

Chief General Manager (CGM)/HR - General administration, co-ordinations, record management, benefits
co-ordination cell including NLCIL Ex-employee portal, VIP/Parliamentary committee visits.
Chief General Manager (CGM) - Executive employee benefit, HR analytics, L&DC wing.

Chief General Manager (CGM) - Non executive employee benefit, joint venture, new projects, PRMA,
rules and regulation.
GS - Medical services

Chief General Manager (CGM) - Township administration

General Manager (GM)/PR - Public relation, Right to Information

7.2 LEARNING AND DEVELOPMENT CENTRE :

Learning and development centre will be taking care of calling lecturers for guest lectures and also
recruitment of students for internship training and final assessment project.

7.3 PROMOTION :

The promotion stages of executives are from E1 to E9 cadre for executives and from W0A to SG4 for non
executives. For E1 to E6, promotion is 4 years once and for E6 to E9, promotion is 3 years once.
Promotion here is based on seniority. Promotion review is in July month of every year. The eligibility for
transfers and promotions are checked by the establishment department of NLC and then approved.

7.4 INCREMENT :

Increment is based on ratings given by General Manager. Increment is given once a year to the employees.
The increment 3% per annum from the basic pay only if rating is outstanding. For ratings good and below,
it is 2% per annum. It occurs batch wise in January and July month of every year. Eligibility for increment
is 220 days of attendance per annum.

7.5 INCENTIVES :

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Incentives occurs yearly once for employees. It is based on ratings by General Manager and also
government ratings. It is basically ratings on performance. It is otherwise known as performance appraisal.
As per rule, maximum of 3% of profit before tax (PBT) should only be used for incentives.

7.6 CSR :

Corporate social responsibility (CSR) activities are carried out by NLC. It is carried out as per SEBI rules
of 2% profit after tax (PAT). For example, NLC has built 100 toilets for various villages around Neyveli.
1. A brief outline of NLCIL’s CSR Policy, including overview of projects or programmes proposed to be
undertaken and a reference to the web-link to the CSR policy and projects or programme. NLCIL has
been carrying out peripheral developmental activities for betterment of communities in the surrounding
villages since inception. The vision of NLCIL is to emerge
as a leading Mining and Power Company, with Social Responsiveness accelerating Nation’s growth.
NLCIL has adopted a revised CSR Policy, under which new/ongoing CSR projects/
programmes/activities are undertaken. The Policy is available in NLCIL’s Website:
https://www.nlcindia.com/new_website/index.htm
The CSR activities of NLCIL focus on sustainable development and inclusive growth, addressing the
basic needs of the surrounding communities.
Aiding in the Socio-economic development of the local State(s) in which NLCIL operates and also the
country at large.
The CSR of NLCIL contributes to various sectors of development, as enumerated in the Schedule VII of
the Companies Act. The main sectors are:

• Health and Sanitation

• Education and Special Education

• Employment enhancing vocational skills

• Women Empowerment

• Sports

• Rural Development projects for roads & access, water resources augmentation for irrigation and
overall community development.

• Renovation of Heritage sites, Development of Arts and Culture

The CSR Committee of the Board of Directors monitors them.

1.The Board of Directors reviews the same from time to time and ensures that at least two percent of the
average net profit for the last three years is spent on CSR.
2. The Composition of the CSR Committee (as on 31.03.2017) Shri. Azad Singh Toor -
Chairman Shri. Rakesh Kumar - Member Shri. Subir Das - Member Shri. V.Thangapandian -
Member Shri. R.Vikraman - Member Shri. Chandra Prakash Singh – Member
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3. Average net profit for the last three financial years : `2,172.78 crore

4. Prescribed CSR expenditure (two percent of the amount as in item 3 above) : `43.46 crore

5. Details of CSR spent during the financial year: a) Total amount to be spent for the financial year :
`43.46 crore b) Amount unspent, if any; : ` 6.27 crore (Works which could not be completed this
FY are being continued and will be completed shortly) c) Manner in which the amount was spent
during the financial year is detailed in the accompanying statement.

7.7 SERVICE BOOK :

Service book maintenance is a regular practice in NLC. Separate service book is allotted for each and
every employee. The service book has each and every necessary detail of an employee. It is maintained by
the establishment department of HR domain. The service book contains all the service details of employee
in NLC over the years, his salary details, his personal and family details, bio data, promotions and
transfers. The contents of the service book in NLC are as follows :

• Bio data
• Permanent address
• Educational qualifications
• Additional increments
• Details of family members
• Nominations of gratuity
• Nominations for provident fund
• Service growth
• Department tests and exams passed
• Details of membership of professional bodies
• Residential accommodations
• Details of pay
• Details of compensation given under WC act
• Details of transfers / postings
• Advances
• Training programs attended
• Punishments awarded
• Gifts / Awards
• Special awards
• Abstract of leave
• Final settlements – Gratuity, PF, TA clearance, Terminal TA
• Details of payments due to wage revision
• Additional pages

These are details which the service book of a particular employee consists of.

7.8 MAN POWER PLANING :

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Depending upon the equipment pattern, shift pattern, existing norms and rules for maintenance etc, the
industrial engineering wing decides the base man power.
Apart from the base man power 10% lieu reserve and 16% off reserve are kept. Outsourcing of many jobs
has been made. Manpower planning is still more important unnecessary vacancies are not filled up.
Induction of contract labour has become strict.

7.9 RECRUITMENT :

Recruitment process are done in 2 levels

(a) Below board level: Executives, supervisors, staff and work men are considered as below
board level employees. Executive’s recruitment is done by all India level advertisement through
news papers and websites. Supervisors, staff and workmen are recruited on regional basis through
employment exchange.
(b) Above board level: Executive Director, Director, Chairmen and Managing Director are
considered as above board level. Their recruitment is done by the Department of Public
Enterprises – Public Enterprises selection Board. Above board level employees of any PSU can
compete for the same.
NLC follows 2 kinds of recruitment and they are:

(1) Internal Recruitment: People are recruited for the required vacancy based on
selection criteria.
(2) External Recruitment: External recruitment is done by Advertisement on newspaper
and websites followed by scrutinizing the application and the selected candidates are called for
interview / written test according to the criteria. Internal employees can also compete with
external candidates no special preference is given to them.
During the process of recruitment the selection is done on the basis of competitive merit, ability and
experience being equal preference given at the time of appointment to person’s displaced by the
acquisition of land for the project, to refugees and to persons discharged from other government projects
an undertaking as being surplus to requirement.

7.10 INDUCTION :

All the candidates who have been issued with offer letter and are willing to join with NLC has to undergo
Orientation Program for 15 days in which they learn the overall functioning of the units in NLC.

7.11 PROBATION :
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Training period in NLC is one year for skilled workmen and for others its six months after which the
employee is confirmed.

7.12 DEVELOPMENT FUNCTIONS :

7.12.1 TRAINING :

EDC conducts training programs on various skill sets for regular and executives employees by rolling out
schedules on monthly basis and the employees are nominated by the user departments. This called
INHOUSING Training program. The annual plan is prepared by a meeting between the EDC personal and
the co-ordinators of all the units to identify training needs. The annual plan consists of the types / names of
the programs are approved by competent authority.
Employees (executive category) must mandatory attend 4 days of training program in a year conducted by
EDC or their respective departments for their career and personal growth. This is considered for as one of
the key performance indicator (KPI) during their appraisals.

7.13 PERFORMANCE APPRAISAL :

Performance appraisal is done for the Worker category employees every year for the period between (Apr-
Mar) and Regular category employees every year for the period between (AprMar) by means of
confidential reports generated by their Reporting managers.
Whereas for Executive category employees NLC uses KPA (Key Performance Appraisal) in which the
executive and their reporting managers decides the task to be completed for that financial year, marked and
time line for completion of work is also decided in prior. Necessary entries will be made in their
respective performance cum competency score card through online system. Review or assessment will be
conducted on their performance at the Mid Year
(October) and year end to understand the employee’s performance level, which also decides the
employee’s promotion and also for performance related payment.
NLC has well defined performance appraisal system since its inception. The objectives of performance
appraisal are as follows

7.13.1 OBJECTIVES :

- To evaluate how far results have been achieved and to plan for better performance.
- To identify the strength and weakness of the individual executive employees with reference to
his/her achievements, knowledge and skills.
- To find out the gaps in knowledge and skills which may be filled long training and guidance - To
find out executives for the purpose of “Management succession”.
There are different forms for different category of employees which are used for periodic performance
appraisal.

7.14 DISCIPLINARY ACTION :

• D. A. - Departmental Cases
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 • D. A. - Vigilance Cases
• D. A. - TA related Cases

7.14.1 D. A. – DEPARTMENTAL CASES :

a. For regular and labour category employees, NLC’s standing order is followed.
b. For executives, conduct and appeal rules of NLC is followed.

7.14.2 STEPS IN DOMESTIC ENQUIRY :

7.14.2.1 COMPLAINT :

Receipt of a written complaint from a complainer, is the first step in domestic enquiry.

A complaint must contain the details of the misconduct committed, narrating the total incident, the date,
the approximate time, place, the name of witnesses and material evidences with due signature of the
complainer are to be furnished.

7.14.2.2 CHARGE MEMO :

A “charge memo” is to be addressed to the delinquent employee by furnishing his CPF No, designation,
division, and department. The date and time of the incident are also clearly mentioned.
If the misconduct committed by the employee is grave and serious in nature or it is believed that his
presence at work place is likely to erase/remove/disturb the evidences against him or alter the witness
against him then the employee is placed under suspension pending enquiry.
The charge memo is served to the concerned employee directly or by post.

7.14.2.3 EXPLANATION OF THE EMPLOYEE:

On the receipt of the charge memo the employee may submit his explanation within specified time. The
employee may be allowed to extend the time period on the grounds of sufficient reasons in writing.
If the charge sheeted employee (CSE) accepts all the charges then the case is closed and punishment is
awarded.
If the employee denied the charges then further proceedings are carried out.

7.14.2.4 APPOINTMENT OF ENQUIRY COMMITTE:

After receiving the explanation of the employee, an enquiry officer and presenting office are to be
appointed by the HR department to enquire into the charges of the charge sheeted employee.

7.14.2.5 POSTING OF ENQUIRY:

The time, venue, and date of the enquiry shall be communicated to the Charge-sheeted employee (CSE).
21 | P a g e
 If the charge sheeted employee is not attending the enquiry proceedings without prior permission then the
enquiry officer may conduct “exparte enquiry”.

7.14.2.6 PROCEEDINGS OF ENQUIRY:

Examination of charge sheeted employee by the enquiry officer:

• Examination of prosecution.
• Presentation of the case by the presenting officer.
• Statements of prosecution witness
• Cross examination of prosecution witness by charge sheeted employee.
• Examination of defense
• Statement of defense witness
• Cross examination of defense witness by presenting officer
• Examination of charge sheeted employee
• Statement of chare sheeted employee
• Examination of charge sheeted employee by the presenting officer

7.14.2.7 REPORT OF THE ENQUIRY OFFICER:

After completion of enquiry, the enquiry officer has to prepare a detailed report on the findings of the
enquiry.

7.14.2.8 PUNISHMENT FOR MISCONDUCT:

It is the duty of the disciplinary authority to decide the nature of punishment to be imposed taking into
consideration of the following:
❖ The principle of equality
❖ Seriousness of the misconduct
❖ Past record of the employee

Punishments are to be given according to the misconduct and in consultation with

“STANDING ORDER” for regular and labour category employees and CONDUT AND AAPEAL
RULES” for executives.

7.14.2.9 PUNISHMENTS ARE OF TWO TYPES :

❖ Major
❖ Minor

7.14.2.9.1 MAJOR PUNISHMENTS :

✓ Demotion to a junior category or lower grade or reduction to lower stage.

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✓ Compulsory retirement from service before attaining the age of superannuation without notice or
pay.
✓ Removal from service without notice or pay.
✓ Dismissal from service without pay or notice.
7.14.2.9.2 MINOR PUNISHMENTS :

✓ Withholding increment with cumulative effect (stoppage of increment for whole service period) or
without cumulative effect (stoppage of increment for particular mentioned period).
✓ Suspension without pay and allowances.

7.14.2.10 APPEAL :

If the employee prefers an appeal, the disciplinary authority may send the file containing the document
to the appellate authority for further action.

7.14.2.11 ORDER OF APPELLATE AUTHORITY :

The appellate authority on receiving the appeal may apply his mind and may alter the punishment
according to the situation within the stipulated time.

7.14.3 D. A. – VIGILANCE CASES :

Anonymous petitions and corruption related cases are dealt by this wing and also by supervise checking in
work spot.

7.14.4 D. A. - TA RELATED CASES :

The misconducts of Township Administration related matters such as the houses which have been allotted
to the employees not should be used for rental purpose; employee should not extent/built the allotted
houses, without any intimation. The employee should not cut the trees, no persons are not allowed to run
any shops in the main bazaar and in any places inside Neyveli Township without prior permission from
Township Administration.

7.15 INDUSTRIAL RELATIONS :

The main function of IR is to maintain the cordial relationship between management and trade unions.
NLC continues to maintain cordial industrial relations with Recognized Unions. The Recognized Unions
and Associations of Engineers and Officers are functioning in NLC effectively. The Management has a
regular system of discussions on common matters which help to maintain good industrial relations and to
create mutual trust and belief among the employees.

7.15.1 LABOUR LAWS :

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There are three major labour laws relating to public sector companies. As NLC is a public sector company,
these three major labour laws applies for NLC. The laws are as follows :

• Industrial dispute act of 1947

• Trade union act of 1926
• Standing orders act of 1946

7.15.1.1 INDUSTRIAL DISPUTE ACT OF 1947 :

The industrial dispute act, 1947 extends to the whole of India and regulates Indian labour law so far as that
concerns trade unions as well as Individual workman employed in any Industry within the territory of
Indian mainland. It came into force 1 April 1947.

The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing
machinery and procedure for the investigation and settlement of industrial disputes by conciliation,
arbitration and adjudication machinery which is provided under the statute. The main and ultimate
objective of this act is "Maintenance of Peaceful work culture in the Industry in India" which is clearly
provided under the Statement of Objects & Reasons of the statute.

The laws apply only to the organised sector. Chapter V talks about the most important and often in news
topic of 'Strikes and Lockouts'. It talks about the Regulation of strikes and lockouts and the proper
procedure which is to be followed to make it a Legal instrument of 'Economic Coercion' either by the
Employer or by the Workmen. Chapter V-B, introduced by an amendment in 1976, requires firms
employing 300 or more workers to obtain government permission for layoffs, retrenchments and closures.
A further amendment in 1982 (which took effect in 1984) expanded its ambit by reducing the threshold to
100 workers.

The Act also lays down:

1. The provision for payment of compensation to the workman on account of closure or lay off or
retrenchment.

2. The procedure for prior permission of appropriate Government for laying off or retrenching the
workers or closing down industrial establishments 3. Unfair labour practices on part of an employer
or a trade union or workers.

7.15.1.2 APPLICABILITY :

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The Industrial Disputes Act extends to whole of India and applies to every Industry and its various
industrial establishment carrying on any business, trade, manufacture or distribution of goods and services
irrespective of the number of workmen employed therein.

Every person employed in an establishment for hire or reward including contract labour, apprentices and
part-time employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory
work, is covered by the Act.

This Act though does not apply to persons mainly in managerial or administrative capacity, persons
engaged in a supervisory capacity and drawing > 10,000 per month or executing managerial functions and
persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a
prison.

7.15.2 TRADE UNION ACT OF 1926 :

Trade Union means any combination, whether temporary or permanent, formed primarily for the purpose
of regulating the relations between workmen and employers or between workmen and workmen or
between employers and employers for imposing restrictive conditions on the conduct of any trade or
business and includes any federation of two or more Trade Unions.
Provided that this Act shall not affect -
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of instruction in any
profession trade or handicraft.
The law relating to the registration and protection of the Trade Unions is contained in the Trade Unions
Act, 1926 which came into force with effect from 1st June 1927. The Act extends to the whole of India
except the State of Jammu and Kashmir.
In common parlance, Trade Union means an association of workers in one or more occupations.
Its object is the protection and promotion of the interests of the working class. Trade Unions have a home
grown philosophy based on workers' experience and psychology. It grows out of the workers' day-to-day
experience.
7.15.2.1 OBJECTIVES :
Trade union is a voluntary organization of workers relating to a specific trade, industry or a company and
formed to help and protect their interests and welfare by collective action. Trade union are the most
suitable organisations for balancing and improving the relations between the employees and the employer.
They are formed not only to cater to the workers' demand, but also for imparting discipline and inculcating
in them the sense of responsibility.
They aim to:-
Secure fair wages for workers and improve their opportunities for promotion and training.

• Safeguard security of tenure and improve their conditions of service.

• Improve working and living conditions of workers.

25 | P a g e
 • Provide them educational, cultural and recreational facilities.
• Facilitate technological advancement by broadening the understanding of the workers. • Help them
in improving levels of production, productivity, discipline and high standard of living.
• Promote individual and collective welfare and thus correlate the workers' interests with that of their
industry.
• to take participation in management for decision-making in connection to workers and to take
disciplinary action against the worker who commits in-disciplinary action.

Any company, will not be able to communicate to each and every union of the company. So, based on
trade union act, they have recognised and registered union. For this, using a method called check off
system, the company identifies the registered and recognised unions.

7.15.2.2 CHECK OFF :

A system whereby a employer regularly deducts a portion of an employee’s wages to pay union dues or
initiation fees. It is attractive since the collection of dues can be costly and time consuming. This system
was introduced in NLC in 1989. When union gives notice for strike, this system helps the management to
identify the total number of employees in those trade unions which participate in the strike. The number of
employees in each union has to be updated to management every 2 years by their leaders.

7.15.3 STANDING ORDERS ACT OF 1946 :

This act may be called the Industrial Employment (Standing Orders) Act, 1946. It extends to whole of
India. It applies to every industrial establishment wherein one hundred or more workmen are employed, or
were employed on any day of the preceding twelve months:
Provided that the appropriate Government may, after giving not less than two months’ notice of its
intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any industrial
establishment employing such number of number of persons less than one hundred as may be specified in
the notification.
7.15.3.1 HISTORY OF THE ACT :

The Act has been amended by the Indian Independence (Adaptation of Central Acts and Ordinances )
Order.
7.15.3.2 OBJECTIVE OF THE ACT :

That the object of the Act is to have uniform Standing Orders providing for the matters enumerated in the
Schedule to the Act, that it was not intended that there should be different conditions of service for those
who are employed before and those employed after the Standing Orders came into force and finally, once
the Standing Orders come into the force, they bind all those presently in the employment of the concerned
establishment as well as those who are appointed thereafter.
• Any industry to which the provisions of Chapter VII of the Bombay Industrial Relations Act, 1946, apply.
Any industrial establishment to which the provisions of the Madhya Pradesh Industrial Employment
(Standing Orders) Act, 1961 apply : Provided that notwithstanding anything contained in the Madhya
Pradesh Industrial Employment (Standing Orders) Act, 1961, the provisions of this Act shall apply to all
industrial establishments under the control of the Central Government.

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7.16 WAGES :

Wages are decided based on guidelines of Department of Public Enterprises (DPE). DPE issues guidelines
to all public sectors. Wage revision is 10 years once in NLC.

7.16.1 DEPARTMENT OF PUBLIC ENTERPRISES :

The Department of Public Enterprises acts as a nodal agency for all public sector enterprises and assists in
policy formulation pertaining to the role of PSEs in the economy by laying down policy guidelines on
performance improvement and evaluation, financial accounting, personnel management and in related
areas. It also collects, evaluates, and maintains information on several areas in respect of PSEs. The
Department has five constituent Divisions, viz; the Financial Policy Division, the Management Policy
Division, the MOU
Division, the Administration & Coordination Division and Permanent Machinery of Arbitration.

Role of DPE in issuing guidelines/directives to CPSEs :

The role of DPE in issuing guidelines/directives is clearly defined in Report no.-2 of 2013 of the
Comptroller and Auditor General of India on Compliance Audit of General Purpose Financial Reports of
central public sector enterprises.

The directions/instructions are given to CPSEs through presidential directives as well as guidelines issued
by administrative ministries or DPE.

Presidential directives are issued by the administrative ministries to the concerned CPSEs whenever the
situation warrants and are mandatory. For the purpose of maintaining uniformity, such Directives are to be
issued in consultation with the DPE if these relate to single CPSE and with the concurrence of the DPE if
these are applicable to more than one CPSE.

Guidelines can be issued either by the Administrative Ministries or the DPE case-by-case and are advisory
in nature. The Board of Directors of the CPSEs has the discretion not to adopt these guidelines for reasons
to be recorded in writing. The Board Resolution on the subject giving the reasons therein is to be
forwarded both to the Administrative Ministry concerned as well as to the DPE.

In the above-mentioned report no-2 of 2013 it is also mentioned that though the DPE guidelines are
advisory. For good corporate governance, there should be an appropriate mechanism to enforce
accountability of the Administrative Ministries and CPSEs to the compliance to DPE guidelines. An Audit
review of the institutional arrangement DPE has in place to ensure compliance with its guidelines revealed
that:

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• DPE did not maintain the database as to which CPSE's boards adopted its guidelines.
• DPE did not have a mechanism to ensure compliance with all its guidelines.
• DPE did not write to CPSEs for recovery of irregular payments pointed out by an audit.

DPE guidelines on personnel policies :

7.16.2 DIFFERENT CATEGORIES OF GUIDELINES ON PERSONNEL POLICIES ARE :

(a) Creation Of Posts And Categorization

(b) Composition Of Board Of Directors

(c) Service Matters

(d) Immediate Absorption-Deputation

(e)annual performance appraisal

(f) Conduct, Discipline & Appeal Rules

(g) Vigilance Policies

(h) Reservation Policies

(i) Report Of The Committee To Review The Format Of Annual Performance Report (APR)
And Procedure For Writing APR

7.16.3 WAGE REVISION :

According to DPE, periodicity of wage revision for executives at NLC is 10 years. For non executives,
periodicity of wage revision depends upon settlement. Compensation for executive employees is based on
committee recommendation through DPE guidelines. For non executive employees, compensation is based
on negotiations/settlements. The main components of pay revision are as follows :

• Pay scales
• DA
• Fitman benefit
• Annual increment
• Perks & allowances
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• PRP
• Superannuation benefits

Superannuation benefits is 30% of basic pay plus dearness allowances. The components of superannuation
benefits are as follows :

Provident fund = 12%

Gratuity = 4.16%

Pension = 10%

PRMA = 3.84%

Total = 30%

7.17 CONFIDENTIAL REPORT CELL :

The duty of this cell is to consolidate the ratings and scorecards of each and every employee which is used
for PRP, increments and incentives. There are different forms of scorecards for different designations of
employees. For executive employees, it is done at centralised unit. For non executive employees, it is done
at respective units. These scorecards helps to identify the strengths and weakness of employees with
reference to their achievements, knowledge and skills. This also helps the employee to know about his
training needs. These confidential; reports should be initiated by immediate superior and reviewed by the
next higher authority. For employees those who are on probation period, once in half a year, report should
be written.
The different scorecards based on designations of employees are as follows :
• Role band 1 – It is the report for non unionized supervisors of the cadre S1 to S4.
• Role band 2 – It is the report for the executive employees of the cadre E1 to E3
• Role band 3 – It is for the executive employees of the cadre E4 and E5
• Role band 4.1) – It is for executive employees of the cadre E6
• Role band 4.2) – It is for the executive employees of the cadre E7
• DPE – It is for the employees of the higher cadre which is CMD, Directors, ED, CGM, GM. This
report is initiated by the Ministry of Coal.

The major difference between these different scorecards are the contents and marks allotted for each
content and those contents of each scorecard and their marks allotted are as follows :

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 Company Unit Mandatory Role Contribution Competencies Total
MOU MOU KPA based
KPA
RB 0 10 10 55 5 20 100
1
RB 5 10 10 45 5 25 100
2
RB 5 10 10 45 5 25 100
3
RB 10 10 10 35 5 30 100
4.1)
RB 15 10 10 30 5 30 100
4.2)

7.18 PAY SCALES :

Pay scales for executives, supervisors and non executives at NLC based on their work cadre are as follows
:

7.18.1 EXECUTIVES :

GRADES SCALES OF PAY

E0 30,000 – 1,20,000
E1 40,000 – 1,40,000
E2 50,000 – 1,60,000
E3 60,000 – 1,80,000
E4 70,000 – 2,00,000
E5 80,000 – 2,20,000
E6 90,000 – 2,40,000
E7 1,00,000 – 2,60,000

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E8 1,20,000 – 2,80,000
E9 1,60,000 – 3,00,000
7.18.2 SUPERVISORS :

GRADES SCALES OF PAY

S1 31,000 – 1,00,000
S2 32,000 – 1,10,000
S3 34,000 – 1,20,000
S4 36,000 – 1,30,000
7.18.3 NON – EXECUTIVES :

GRADES SCALES OF PAY

WOA 15,000 – 30,000
WO 16,000 – 40,000
W1 18,000 – 73,000
W2 19,000 – 77,000
W3 20,000 – 81,000
W4 21,000 – 85,000
W5 22,000 – 90,000
W6 23,000 – 95,000
W7 24,000 – 1,00,000
W8 25000 – 1,05,000
SG1 26,000 – 1,10,000
SG2 27,000 – 1,15,000
SG3 28,000 – 1,17,000
SG4 30,000 – 1,20,000
7.19 PAY SLIP :

Pay slip of each and every employee at NLC has basic components of earnings and also basic deductions
from salary. The basic components of earnings and deductions are as follows :

7.19.1 COMPONENTS OF EARNINGS :

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• Basic pay
• VDA
• Incentive increment
• Common allowance
• Tour TA
• Tour DA
• CF

7.19.2 COMPONENTS OF DEDUCTIONS :

• PF
• IT
• House rent
• Electricity charges
• Water charges
• Death relief fund
• Elders home recovery
• Clean township recovery
7.20 LEAVE RULES :

Employees in NLC have certain rules and regulations for absenteeism and have some regular leave
permissions without loss of pay. NLC follow a specific form for applying leave which has to be authorized
by the respective department heads and submitted at Time Office / AMS dealing Assistant for up dation.

7.20.1 CASUAL LEAVE (CL) :

Regular Employees will be eligible for CL. CL cannot be clubbed with any other leave other than weekly
holidays and festival holidays. In case of sickness not more than 3 days of CL with pay shall be granted.
For labour: 10 days CL in a year

For others: 12 days CL in a year

The casual leaves cannot be carried forward to next year (casual leaves cannot be preferred or suffered to
holidays for labours).

7.20.2 EARNED LEAVE (EL) :

Days out of which 15 days can be availed till June will be credited on 1st Jan and the next 15 days are
for the period Jul- Dec which will be credited on 1st July of every year.

7.20.3 SPECIAL DISABILITY LEAVE :

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 All employees including executives, working in mines etc are covered by the provision of workmen
compensation act. When they met with an accident during the course of employment is paid with full
wages for the disablement period. But for those who are not covered under the provision of workmen
compensation act are sanctioned special disability leave for the disablement period.

7.20.4 HALF PAID LEAVE :

This type of leave is applicable only for the executive category. HPL is credited in advance as follows:

- 10 days (Jan-Jun) credited on 1st January

- 10 days (Jul- Dec) credited on 1st July

The total half pay leave admissible to an employee for each computed year of services is 20 days.

7.20.5 EXTRODINARY LEAVE :

For labour category total 22 days out of which 11 are for the half year from Jan to Jun and rest 11 days for
the next 6 months from July to December. For regular and executives 70days (subject to prior approval).

7.20.6 MEDICAL LEAVE:

For labour and regular category employees, total of 10 days is spilted equally for every 6 months and can
be accumulated up to 40days. For executives it is 10 days every year spilted equally for every 6 months.

7.20.7 MATERNITY LEAVE:

For labour category employees it is available as per the Maternity Benefit Act.

For others – 180 days also under Maternity Benefit Act, leave salary is also payable.

7.20.8 THE LEAVE RULES IN NLC ARE AS FOLLOWS :

• The employees in NLC has 12 casual leave per annum.

• Employees have 5 days optional holidays per annum
• They also have medical leave permissions. It may be redeemed as either 20 days half pay leave or
10 days full pay leave per annum. If the medical leave is within 3 days, there is no need of submitting
medical certificate.
• Employees have earned leave permission which is of 30 days per annum. It can be redeemed by 15
days once in 6 moths. Earned leave is obtained based on regular attendance of employees.
• For employees, special casual leave is given incase of the employee participating in sports
tournaments.
• Special disability leave is given for employees with notional extension theory (Accident while on
the way to duty). It should be verified with eyewitness.

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• Extraordinary leave is awarded to employees in case of major health problems such as TB, leprosy,
cancer, mental illness. Extraordinary leave can be taken to a maximum of 18 moths.
• Any leave should be informed prior and should get approval from immediate superior authority of
that particular employee.

7.21 INDUSTRIAL ACCIDENTS :

When Industrial accidents occur, its immediate handling and its after effects are difficult task for any
personal executive. Through the workmen’s compensation act 1923 does not define the term accident it
speaks about accident injury. Industrial accident cost in terms of money and morale and can be broadly
classified as.

- Minor
- Major
- Fatal

7.21.1 STEPS TAKEN IN CASE OF ACCIDENTS :

First aid shall immediately be given using the first aid box available in each division. Series of executives/
supervisors trained in first aid may be used. If necessary the victim may be shifted to the first aid centre
available in each unit.

First aid centre of the unit to be inferred for ambulance service. Casualty department of NLC hospital
shall be alerted so that they are prepared when the victim arrives. In case of accident happening outside the
factory/ mines premises, the principle of the NOTIONAL EXTENSION OF WORK spot to be applied.
Coverage under notional extension of employment is subjected to the following:
(a) The employee must have been scheduled for that particular shift.
(b) The time of occurrence of accident shall be reasonably closer to the shift timing.
(c) In case of accident while returning after the shift, the reasonable correlation between the punch out
time and the time of accident should be ensured.
(d) Place of accident shall be in the shortest possible route from the work spot to residence and vice
versa.

7.21.2 HANDLING OF FATAL ACCIDENTS:

In case of fatal accident the following shall be informed immediately:

1. Depending upon the situation/ condition of the injured employee, the RMO/CGS may be requested
to dispatch a team of doctors to the accident site for medical examination.

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 2. Dr. chief Inspector of factories Vellore/ Dr. Director general (mines safety) as the case may be over
phone as well as by telegram.
3. The body is then sent for post-mortem and executive representing may be present in the hospital
where post – mortem is schedule.

7.22 AMS – COMPLAINTS :

AMS staff has to handles complaints in AMS such as late punch and absenteeism. The employees are
allowed for one late punch every 15 days. For executives the late punch is exempted for one hour and for
non- executives it is 30 minutes from their shift timing.

7.23 EXIT MANAGEMENT :

7.23.1 RETIREMENT :

Every work men shall retire from the service of the company on his completion of age 60 years. The age
forth in the service record of the workmen shall be the basis for arriving at the age of retirement of the
workmen. Every month there will be a function that is conducted in the units of NLC on the last working
day the employee’s retiring on the particular month. The retiring employee will get a briefcase, gratuity, PF
and Leave Encashment (if applicable).

7.23.2 RESIGNATION :

Workmen desires to leaving the service of the company shall give notice in writing to the company. For
regular workmen must give notice within 30 days and probations and temporary workmen shall give
notice before 14days. Provided that workmen who is under the terms of a contract or bond to the serve the
company for a specific period shall not so leave the company and till the expiry of such period. If any
workmen other than casual workmen leave the company without notice he /she liable to pay to the
company an amount equivalent to the number of days notice applicable to the category in which he/she
falls.

7.23.3 TERMINATION :

The employment of any workmen other than casual workmen may be terminated by the company reasons
to be recorded giving notice or under industrial disputes act. Employment of such workmen who found
guilty of misconduct may be terminated by the company in accordance with the provisions of these
standing orders (a) regular workmen 30 days (b) probation/ temporary workmen or apprentice 14days.

7.24 FILES SECTION :

NLC has a separate files section where all files of the company are maintained. It is otherwise called as
records management section. All files are numbered orderly for future reference. All files are numbered
based on the department in which they belong to. For example, IR section file’s number starts with 700
series, etc. In case of destroying old files, the section should get approval from chief general manager. The

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file’s softcopies are updated periodically in the intranet of NLC so that employees can search the file
anytime by using the file number or the title of the file.

7.25 PERFORMANCE RELATED PAY (PRP) :

Performance related pay is based on the following factors :

• Rating by Ministry of Coal (Company MOU Rating)

• Company sanctioned rating to the particular unit (Unit MOU)
• Individual performance rating
• Profitability of the company in the current year
7.26 COMPUTER SERVICES :

The computer service department’s duty is to maintain the website of NLC. NLC has both inter and intra
websites. Inter website is for the general public view whereas intra website is for the use of only NLC
employees. For this maintenance, they have websites designers and network co-ordinators. They also
maintain the attendance monitoring system of NLC which

is interlinked with the bio metric and face recognition units. Based on the attendance, they generate the
pay roles here for each and every employee. The database of each and every worker of NLC is maintained
here. It is maintained using a software called ORACLE. For the development and maintenance of this
software, they have software developers.

8. Performance Management System:

It is a structured method of formally and objectively evaluating employees’ performance with respect to
their objectives. It addresses the issue of an employee’s development by providing them with structured
and in-depth analysis of strengths and areas of improvement. It provides with input for annual
increments, training and development.
For an organization the aim should not be just to have the best people, but also to retain them and
get best out of them.
Employee Performance management includes planning work and setting expectations, developing
the capacity to perform, continuously monitoring performance and evaluating it.

Most organizations focus on an annual evaluation process for employees and call that Performance
Management. However, annual evaluations are often subjective and can lack specific
measurements and supportive data to help the employee truly improve their behavior.
Simply putting, a Performance Management System is essential to the success of any organization
because it influences the effort expended by employees, which in turn, drives bottom-line business
results. Furthermore, the Performance Management System helps an organization identify, recruit,
motivate, and retain key employees.
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 An effective Performance Management System should achieve the
following:

Review the employment cycle of every

employee,

Beginning with the recruiting process,

Employee development,

Ending with effective exit interviews.

Employee’s knowledge, skills, and abilities with the organization's human capital needs and
business objectives.

Provide managers and employees with the tools necessary to focus on short-term and long-term
goals that contribute to both career and organizational success.

Support the organization in developing and sustaining a culture that recognizes and rewards
individual contributions and team performance.
Promote a work climate that requires employees to remain flexibly focused. For instance,
employees can manage current tasks and unit goals while keeping pace with, and adapting to,
change in the work environment.
HR Performance Management System can be performed in three steps:
Needs Analysis
Identifying Competencies

Development of effective Performance Management System.

PURPOSE:

For Administration-

 Document HR decisions with regards to performance & its related issues.

 Determine promotion of employees.

 Determine increment in pay of employees.

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  Determine transfer & change in job assignments.

 Determine retention or termination.

 Decide on layoffs.

 Decide need for training

 Decide salary & related issues.

For Development-

 Provide performance feedback to all concerned.

 Identify individual skills, core competencies, strength & weaknesses.

 Assist employees in setting goals.

 Identify training needs.

 Improve communication.

9.PROBLEMS

 Rating biases-

 Halo effect

 Error of central tendency.

 Personal Prejudice.

 Recency effect.

Mainly the performance management is done by online system includes the following basic
processes:
1. Annual goal setting

2. Mid year review

3. Annual performance review

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 9.1.Annual goal setting –

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 In the month of April/May every year, after the annual planning and budgeting
rounds, all teams identify their KRA’s and goals for the forthcoming financial year.
This process occurs by offline.
Then the employees fill their goal setting document in the Poornata system,
listingthe KRA’s, Goals, Measurement Criteria, Assigning Weightage and due date
for completion of specific goals as already discussed offline.Then they notify the
same to their manager/immediate supervisor and await approval.The manager
recommends any changes if required or else approves the goals set in the
document.The approval of the goals set by the managers completes the goal setting
process.

The approved documents will be then available to the employees as well as their
managers for the reference throughout the year. These documents can also be
viewed by manager’s manager
9.2. Mid Year Review:

Mid year review of goals set at the beginning of the financial year held on the
months of October/November every year.

The mid year review generally initiated by the manager. The main focus of the mid
year review is to check if the goals set at the beginning of the year are relevant or if
they need to be revised or updated. The mid year review is also an opportunity for
the manager and his team members to identify and discuss about any performance
issues and initiate corrective action for the same.
The mid year review does not entail any ratings.

9.3. Annual Performance review:

The annual performance reviews against goals set and achieved held during the
months of April- May every year.
The employee completes his self-review /appraisal against goals set, online in
the Poornata system and submits the same to his manager for review.
The manager then discuss the performance of the employee with him/her off-line,
give him feedback on his performance and capture his own comments and
performance ratings against goals and overall ratings in the manager’s evaluation
form.
The manager also discusses the employee’s performance as well as rating with
the manager’smanager (reviewer) and sends the document to the HR department for
further processing.

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 1 0 . Talent Management:

It is a holistic and systematic process, across the group. It is built on the work
done so far on people processes, and has a Talent Identification and Talent
Development Strategy for all the 3 levels of management i.e. Senior, Middle &
Junior Management. This is facilitated by Development Assessment Center
followed by Individual Development Plan, enabling planned succession and career
management.

The talent management process includes

HR process for:

 Recruitment,

 Performance,

 Compensation,

 Succession planning,

 Learning and other capabilities around self-service,

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  Analytics
 Reporting.

With businesses going global and competition becoming intense, there is mounting
pressure on organizations to deliver more and better than before. Organizations
therefore need to be able to develop and deploy people who can articulate the passion
and vision of the organization and make teams with the energy to perform at much
higher levels.
Talent management is a key business process and like any business process
takes inputs and generates output.

Talent management is a professional term that gained popularity in the late 1990s. It
refers to the process of developing and fostering new workers through onboarding,
developing and keeping current workers and attracting highly skilled workers to work
for your company. Talent management in this context does not refer to the
management of entertainers.

Companies that are engaged in talent management (human capital management) are
strategic and deliberate in how they source, attract, select, train, develop, promote,
and move employees through the organization. This term also incorporates how
companies drive performance at the individual level (performance management).

The term talent management means different things to

different people.

 To some it is about the management of high-worth individuals or

“the talented”.

 To others it is about how talent is managed generally - i.e. on the assumption that
all people have talent which should be identified and liberated.

Talent management decisions are often driven by a set of organizational core

competencies as well as position-specific competencies. The competency set may
include knowledge, skills, experience,
and personal traits (demonstrated through
defined behaviors)

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11.Organizational culture

Organizational culture encompasses values and behaviors that contribute to the unique
social and psychological environment of a business. The organizational culture influences the
way people interact, the context within which knowledge is created, the resistance they will
have towards certain changes, and ultimately the way they share (or the way they do not
share) knowledge. Organizational culture represents the collective values, beliefs and
principles of organizational members and is a product of factors such as history, product,
market, technology, strategy, type of employees, management style, and national culture;
culture includes the organization'svision, values, norms, systems, symbols, language,
assumptions, environment, location, beliefs and habits.
Ravasi and Schultz (2006) characterise organizational culture as a set of shared assumptions
that guide behaviors. It is also the pattern of such collective behaviors and assumptions that
are taught to new organizational members as a way of perceiving and, even thinking and
feeling. Thus organizational culture affects the way people and groups interact with each
other, with clients, and withstakeholders. In addition, organizational culture may affect how
much employees identify with an organization
11.2.Culture
Culture is the social behavior and norms found in human societies. Culture is considered a
central concept in anthropology, encompassing the range of phenomena that are transmitted
through social learning in human societies. Cultural universals are found in all human
societies; these include expressive forms like art, music, dance, ritual, religion,
and technologies like tool usage, cooking, shelter, and clothing. The concept of material
culture covers the physical expressions of culture, such as technology, architecture and art,
whereas the immaterial aspects of culture such as principles of social organization (including
practicesof politicalorganization andsocial institutions), mythology, philosophy, literature
(both written and oral), and science comprise the intangible cultural heritage of a society.

11.3. Personal culture

Organizational culture is taught to the person as culture is taught by his/her parents thus
changing and modeling his/her personal culture. Indeed, employees and people applying for a
job are advised to match their "personality to a company's culture" and fit to it. Some
researchers even suggested and have made case studies research on personality changing. In
the humanities, one sense of culture as an attribute of the individual has been the degree to
which they have cultivated a particular level of sophistication in the arts, sciences, education,
or manners. The level of cultural sophistication has also sometimes been used to
distinguish civilizations from less complex societies

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12.1 ADVANCES :

Advances are in the form of loan or immediate cash. The advances provided to employees by
NLC are as follows :

• Festival advance
• Conveyance advance
• House building advance
• Educational advance
• Multipurpose advance

12.2 SERVICE AWARDS AND GIFTS :

• For 15 years of service, the employee will get 5 years postal FD

• For 30 years of service, the employee will get a 2 gram gold coin & steel dinner set
• During retirement, employee is awarded with one VIP suitcase
• During marriages of wards of employees or marriage of an existing employee, a
Kuthuvilaku or tiffin box is gifted to the employee by the company.
• Other than these, special awards are given when the wards of employees achieves in
education.

12.3 UNIFORM AND LEVERIES :

Yearly 2 uniform sets are provided to the male employees. For female employees, 2 sarees
and 3 blouses are being provided. Also, helmet, steel boots, raincoat, gloves, etc. are provided
for the production line employees.
12.4 NEYVELI GENERAL HOSPITAL :
Free treatment for employees and their family members are being provided here. In case of
major health issues, they refer empanel hospitals like Miot, Apollo, Ramachandra, etc. for
higher treatment.
12.5 HOLIDAY HOMES :
NLC has holiday homes in many tourist places like Courtallam, Munnar, Ooty, Kodaikannal,
etc. Employees can use these homes for 3 days per year, if they are on a vacation. The
charges for using these homes for employees are only Rs.15 per day.

12.6 EX-GRATIA :

Ex-Gratia is applicable only VRS applied employees. Ex-Gratia is an added benefit in NLC
for VRS applied employees where the employees gets 24 months salary amounts after getting
VRS.

12.7 PROVIDENT FUND :

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For permanent employees both subscription and contribution along with the interest accrued
will be paid to the nominee/ legal heir. In case of nominee heir can claim the amount at credit
form regional PF office Trichy. 12% of basic pay +D.A. is deducted month on month as PF
and the same amount is contributed by the employer for the same. NLC has its own PF trust
started according to the norms. This trust provides interest as per norms.

In recent times the payment of EPF for contract employees are paid by NLC directly and the
amount is detected the sum payable to the contractors. The contract employees are detected
with 12% of their basic salary towards EPF and the company contributes 8.25% for the
pension scheme and 3.75 towards PF and NLC also bears 1.61% as administrative charges
payable to the EPF centre.

12.8 GRATUITY :
For example, if basic pay is 80,000 and dearness allowances (DA) is 40% which turns out to
be 32,000 and so combinedly, it is now 1,12,000. So gratuity is calculates as follows :
1,12,000 x 15/26 x 35 years = 22,61,539

Gratuity is restricted to Rs.20,00,000 according to rules. An individual should serve

minimum period of 5 years to be eligible for gratuity.
Post retirement medical assistance (PRMA) :

PRMA is the medical assistance scheme for retired employees in NLC. They are eligible to
certain levels of treatment based on their last designation in the office. Labours and non
executives may get Rs.15,000 to Rs.27,000 per annum. Executives may get Rs.30,000 to
Rs.1,50,000 per annum. For surgeries, Rs.2,00,000 to Rs.3,00,000 is redeemable based on
disease for retired NLC employees.

12.9 MEDICAL IDENTUTY BOOK / TREATMENT BOOK :

In NLC every employee gets a medical identity book which the employee and their
dependents are included in it. Only the 1st wife and the 2 children can only get the benefits. If
the children of the employee are dependent can avail benefit up to the age of 25 years in case
of female child she can get benefit till her marriage, whichever occurs earlier.

12.10 MEDICAL CHECKUP (Canteen/ Factory/ Mines) :

Industrial medical centre is formed in general hospital, NLC. Medical examination, fitness,
disability, compensation assessment, industrial accidents, occupational disease etc are dealt. A
medical record of all the employees in NLC is maintained in medical record room. For mine
employee’s regular health check up has to be done once in 5 years and for canteen
employee’s regular health check up has to be done every year.

12.11 MEDICAL BENEFITS :

Medical benefits are available for:

- All the employees of the corporation
- Persons appointed on foreign service terms during their service in NLC
- Apprentices in whole time service of the corporation
- Dependants of the employees

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 A medical identity book is issued to the employees for free of cost for the employee and
his/her dependents.

12.12 SCHOLARSHIP :

Scholarship is being provided by NLC for the wards of its employees under certain
stipulations. Though the scholarship amount is small in figures, it is being provided to create
a morale within the employees towards the company. The stipulations are as follows :

• On 10th or 12th completion, the ward should have secured 85% in case of CBSE.
• On 10th or 12th completion, the ward should have secured 90% in case of state board.
• For general arts degree, the scholarship amount is Rs.8,000 per annum.
• For engineering and medicine, the scholarship amount is Rs.10,000 per annum.

12.13 FAMILY RELIEF SCHEME :

For employees working in plant, if there is death during duty, their children are given work.
In case of natural death, pension, PF and gratuity will be given to wife.

12.14 DEATH RELIEF FUND :

This scheme is introduced from the year 2004, to benefit the dependents of the declared
employees on event of the death of the employee an amount of Rs 50 is deducted from the
salary / wage bills of other existing employees.
The total amount collected from the existing entire NLC employees and the same amount is
contributed by the management and the total amount collected is paid to the nominees of the
deceased as per the nomination submitted the employee at the time of his service.

For example, death relief fund is deducted from each and every employee’s salary every
month. That is considered as 50% of fund and the remaining 50%, the company will bear. For
example,
13,000 employees x Rs.50 = Rs.6,50,000 and therefore company will bear another
Rs.6,50,000 and hence Rs.13,00,000 is provided as death relief fund for the employees. This
fund is eligible only in case of death in the period of duty.
12.15 OTHER FACILITIES :
NLC has sports development centre, lignite city club, swimming pool, park club, etc. which
can be used by employees and their family members. Employees of NLC can be considered
for quarters based on designation and scale of pay.

13.SWOT ANALYSIS :
13.1 STRENGHTS :

Availability of lignite and water for power generation.

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 Expertise in operation & maintenance in open-cast mining, power generation. Harmonious
industrial relations.
Pioneering position in open-cast lignite mining with SME technology and lignite fired
power station.
Highest domestic credit rating.

13.2 WEAKNESSES :

Mines moving towards highGovernment of India’s commitment to improve the quality of

life of its citizens through higher electricity consumption.
GOI aim to provide each household access to electricity, round the clock and improve the
quality of life of people through 24x7 power supply.
Rise in the per capita consumption of power.
Launch of 100 smart cities mission by GOI.

Invest in promoting Green Energy

Trading of Power in the Market.

er stripping ratio and consequent increase in cost of mining.

Necessity of pumping of water below the lignite seam for safe mining leading to higher
cost of production.

Higher cost of mining.

13.3 OPPORTUNITIES :

➢ Learnt the some of the Statutory Compliance that every company has to follow.
➢ Learnt the proceedings of the disciplinary actions and the Punishments given for the
Executives and Non Executives.

13.4 THREATS :

Resistance to land acquisition, demand for enhanced compensation, demand for

employment.
Higher cost for rehabilitation & resettlement measures for land evictees.

Extreme mining conditions resulting from hydro geological, geo-technical and other
conditions.
Delay in commissioning of new projects. Huge Surrender of Power by the beneficiaries
and consequently under utilisation of Thermal Capacity.

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 Challenge posed by Renewable energy to Thermal Generation.

8. LEARNINGS :
➢ Learnt that the organization was functioning since 1956, and then expanded with ages
to meet the new challenging life of the people in the society.
➢ Learnt the detailed functioning of the organization and the functions of Human
Resource Department.
➢ Learnt the rules or the norms followed in the organization for Recruitment,
Promotion, Transfer, and Performance Appraisal.
➢ Trainees could be understood about Trade Union, check off system, and how its
function.
➢ Trainees could able to understand the various Application Forms and their
importance.
➢ Learnt the detail process of Performance Appraisal and how important for the
employees to improve their competencies.

9. CONCLUSIONS :
I have learnt the HR practices in NLCIL, The organizational hierarchy and also learnt
about the implementation of the various acts such as Factories Act, Mines Act, Contract
Labour, Regulation & Abolition Act, and Bonus Act. The internship Training gave a
professional and personal learning by interacting with various employees of different
departments. The HR activities and the process followed in NLCIL gave me a professional
learning which will be very useful for my career Growth.

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