Ntpc

Organization Study Conducted at NTPC, Korba

SUMMER INTERNSHIP REPORT ON AN

ORGANIZATION STUDY CONDUCTED AT

NTPC LTD

KORBA SUPER THERMAL POWER STATION, KORBA

SUBMITTED TO

BANGALORE UNIVERSITY

IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE AWARD

OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

VIKAS KUMAR SONI

REG NO: 11XWCMA117

UNDER THE GUIDANCE OF

Mr. SIBA PRASAD SARANGI

(Lecturer, SAMS)

SCHOOL OF MANAGEMENT, SAMS, BANGALORE

SEPTEMBER, 2012

Sambhram Academy of Management Studies, Bangalore 1


EXECUTIVE SUMMARY

The organizational study is done in NATIONAL THERMAL POWER

CORPORATION LIMITED, KORBA. This study tells about the function of

company. Electricity is an important energy and it is uses in most of the industry,

etc. NTPC, Korba produced 2600MW Approved investment are Rs 2324 crores.

NTPC, Korba having its clients in various parts of India. It supplies to Madhya

Pradesh, Chhattisgarh, Maharashtra, Gujarat, Goa, Union Territories of Daman,

Diu, Dadra Nagar Haveli

To produce 2600MW electricity its requirements is 11.4 Million tons (approx.)

annual coal and 2.80 lakhs Cu.M/day water.

As a part of MBA programme under the Bangalore University a study has been

undertaken in NTPC. This internship training enables to know the realities of the

business and application of theoretical knowledge in practical environment.

Primary data has been collected from face to face interview with department heads,

managers and workers. The secondary data has been collected through website of

NTPC, company documents, annual reports, magazines and so on. A SWOT

analysis was done to find the strength, weakness, opportunities and threats of the

organization.

It was found that the organization encourages employee participation in the

management. With the help of formation of quality circles and mutual discussion

among the employees the company has been successful in solving work related

problems.



ACKNOWLEDGE MENT

This project is a product of the valuable insights, facts and experience I had with

various people in the organization.

It’s my pleasure to express my deep sense of gratitude to Miss. PRACHI

CHAUHAN (HR department) for permitting me to undergo an in-plant training

in their esteemed organization and being my external guide. I thank him for his co-

operation and valuable suggestions throughout the period of internship.

I convey my heart full thanks to my Principal Mr. K.C.JHON, Director Mr.

K.C.MISHRA, Internal guide Mr. SIBA PRASAD SARANGI, my parents and

all my friends for their support, encouragement and help, without which this report

could not have been successfully completed.

I am also grateful to the entire staff and professionals of NTPC for their guidance

and constructive co-operation in completion of this project.

Date: VIKAS KUMAR SONI

Place: Bangalore



DECLARATION

I VIKAS KUMAR SONI hereby declare that the contents of this internship report

entitled “AN ORGANISATION STUDY conducted at “NTPC LIMITED,

KORBA SUPER THERMEL POWER STATION, KORBA” are the outcome

of my original work. Further this report has not been submitted to any

Institution/University for award of any degree.

Place: - Bangalore VIKAS KUMAR SONI

Date: -



GUIDE CERTIFICATE

This is to certify that the internship report entitled “AN ORGANIZATION

STUDY conducted at “NTPC LIMITED (KORBA SUPER THERMEL

POWER STATION), KORBA” is an original work undertaken by VIKAS

KUMAR SONI in partial fulfillment of MBA course requirement of Bangalore

University. Throughout the process of the study, the candidate has worked under

my direct supervision and guidance.

Place: BANGALORE Mr. SIBA PRASAD SARANGI

Date: (Lecturer, SAMS)



CONTENTS

CHAPTER

No.TOPIC

PAGE

No.

1 INTRODUCTION TO THE INTERNSHIP STUDY

INDUSTRY PROFILE

COMPANY PROFILE

1

2-7

8-37

2 RESEARCH METHODOLOGY 38-40

3 FUNCTIONAL DEPARTMENTS 41-66

4 SWOT ANALYSIS 67-70

5 FINDINGS, CONCLUSIONS & SUGGESTIONS 71-73

6 APPENDIXES



LIST OF TABLES

TABLE

NO.

DESCRIPTION PAGE

NO.

1.1 GROWTH OF POWER GENERATION IN KORBA 10

1.2 PERFORMANCES ACROSS NUMBER OF PARAMETER 18

1.3 REGIONAL SPREAD OF GENERATING FACILITIES 18

1.4 COALS BASED POWER STATION 19

1.5 GASES/FUEL BASED POWER STATION 20

1.6 GASES BASED JOINT VENTURES 20

1.7 HYDRO BASED POWER PROJECT 21



LIST OF FIGURES

FIGURE

NO.

DESCRIPTION PAGE

NO.

1.1 GROWTH OF NTPC 08

1.2 STEPS TO GENERATE ELECTRICITY 28

1.3 NTPC VS REST OF INDIA 31

1.4 PLF OF NTPC STATION VS ALL INDIA 32

1.5 NTPC, KORBA MANPOWER PROFILE 35

1.6 ORGANIZATIONAL STRUCTURES 37

3.1 FUNCTIONAL DEPARTMENTS 41

3.2 STRUCTURE OF F&A DEPARTMENT 42

3.3 STRUCTURE OF HUMAN RESOURCE DEPARTMENT 51

3.4 STRUCTURE OF OPERATION & MAINTENANCE

DEPARTMENT

60



CHAPTER- 1

INTRODUCTION

Internship training program is vital and essential part of the educational curriculum

which helps students to know how the organization functions and also to know

how various interrelated departments work together to achieve their common goal

and it also helps the students to have a particular exposure to the problem faces,

functions, department and their business operation.

This is a generally meant to develop students aptitude towards business

environment practically training given which will make students prepare for a

future job as a manager of an organization. So it is observed that the project work

is an invaluable part of the educational curriculum.

The main purpose of this study is to assess overall performance of the Company.

The study is conducted at NTPC Plant the search is basically on empirical enquire

a about the approaches towards the concept and its role in the organization.



INDUSTRY PROFILE

Electricity is the most versatile energy source that we have; it is also one of the

newest: homes and businesses have been using it for not much more than a

hundred years. Electricity has played a vital part of our past. But it could play a

different role in our future, with many more buildings generating their own

renewable electric power using solar cells and wind turbines. Let's take a closer

look at electricity and find out how it works.

Electricity is a type of energy that can build up in one place or flow from one place

to another. When electricity gathers in one place it is known as static electricity

(the word static means something that does not move); electricity that moves from

one place to another is called current electricity.

Despite its great importance in our daily lives, most of us rarely stop to think what

life would be like without electricity. Yet like air and water, we tend to take

electricity for granted. Every day, we use electricity to do many jobs for us from

lighting and heating/cooling our homes, to powering our televisions and

computers. Electricity is a controllable and convenient form of energy used in the

applications of heat, light and power.

Electricity Industrial Profile

The electricity in India is predominantly controlled by the Government of

India's public sector undertakings (PSUs). Major PSUs involved in the generation

of electricity include National Thermal Power Corporation (NTPC), National

Hydroelectric Power Corporation (NHPC) and Nuclear Power Corporation of

India (NPCI). Besides PSUs, several state-level corporations, such as Maharashtra

State Electricity Board (MSEB), are also involved in the generation and intra-state



distribution of electricity. The Power Grid Corporation of India is responsible for

the inter-state transmission of electricity and the development of national grid.

The Ministry of Power is the apex body responsible for the development of

electrical energy in India. This ministry started functioning independently from 2

July 1992; earlier, it was known as the Ministry of Energy. The Union Minister of

Power at present is Sushilkumar Shinde of the Congress Party, who took charge of

the ministry on the 28th of May, 2009.

India is world's 6th largest energy consumer, accounting for 3.4% of global energy

consumption. Due to India's economic rise, the demand for energy has grown at an

average of 3.6% per annum over the past 30 years. In March 2011, the installed

power generation capacity of India stood at 1, 73,626 MW while the per capital

energy consumption stood at 612 kWh. The country's annual energy production

increased from about 190 billion kWh in 1986 to more than 680 billion kWh in

2006. The total demand for electricity in India is expected to cross 950,000 MW by

2030.

About 75% of the electricity consumed in India is generated by thermal power

plants, 21% by hydroelectric power plants and 4% by nuclear power plants. More

than 50% of India’s commercial energy demand is met through the country's

vast coal reserves. The country has also invested heavily in recent years on

renewable sources of energy such as wind energy. As of 2008, India's installed

wind power generation capacity stood at 9,655 MW. Additionally, India has

committed massive amount of funds for the construction of various nuclear

reactors which would generate at least 30,000 MW. In July 2009, India unveiled a

$19 billion plan to produce 20,000 MW of solar power by 2020.

Electricity losses in India during transmission and distribution are extremely

high and vary between 30 to 45%. In 2004-05, electricity demand outstripped



supply by 7-11%. Due to shortage of electricity, power cuts are common

throughout India and this has adversely effected the country's economic

growth. Theft of electricity, common in most parts of urban India, amounts to 1.5%

of India's GDP. Despite an ambitious rural electrification program, some 400

million Indians lose electricity access during blackouts. While 80 percent of Indian

villages have at least an electricity line, just 44 percent of rural households have

access to electricity. According to a sample of 97,882 households in 2002,

electricity was the main source of lighting for 53% of rural households compared

to 36% in 1993.Multi Commodity Exchange has sought permission to offer

electricity future markets.

GENERATION

Grand Total Installed Capacity is 1, 73,626 MW.

Thermal Power

Current installed capacity of Thermal Power (as of 06/2011) is 114315.35

MW which is 65.84% of total installed capacity.

Current installed base of Coal Based Thermal Power is 96710.78 MW which

comes to 84.6% of total installed base.

Current installed base of Gas Based Thermal Power is 16632.88 MW which is

14.55% of total installed base.

Current installed base of Oil Based Thermal Power is 971.68 MW which is

0.85% of total installed base.

The state of Maharashtra is the largest producer of thermal power in the country.


http://en.wikipedia.org/wiki/Fossil_fuel_power_plant


Hydro Power

India was one of the pioneering countries in establishing hydro-electric

power plants. The power plant at Darjeeling and Shimsha (Shivanasamudra) was

established in 1898 and 1902 respectively and is one of the first in Asia. The

installed capacity as of 2011 was approximately 33874.43. The public sector has a

predominant share of 19.51% in this sector.

Nuclear Power

Currently, 17 nuclear power reactors produce 4149.66 MW (2.39% of total

installed base).

Renewable Power

Current installed base of Renewable energy is 21286.54 MW which is 12.26% of

total installed base with the southern state of Tamil Nadu contributing nearly a

third of it (5008.26 MW) largely through wind power.

Transmission

Transmission of electricity is defined as bulk transfer of power over a long distance

at high voltage, generally of 132kV and above. In India bulk transmission has

increased from 3,708ckm in 1950 to more than 165,000ckm today (as stated by

Power Grid Corporation of India). The entire country has been divided into five

regions for transmission systems, namely, Northern Region, North Eastern Region,

Eastern Region, Southern Region and Western Region. The Interconnected

transmission system within each region is also called the regional grid.

The transmission system planning in the country, in the past, had traditionally been

linked to generation projects as part of the evacuation system. Ability of the power

system to safely withstand a contingency without generation rescheduling or load-


http://en.wikipedia.org/wiki/Tamil_Nadu

http://en.wikipedia.org/wiki/Renewable_energy

http://en.wikipedia.org/wiki/Asia

http://en.wikipedia.org/wiki/Shimsha

http://en.wikipedia.org/wiki/Darjeeling

http://en.wikipedia.org/wiki/Hydroelectric_Power

http://en.wikipedia.org/wiki/Hydroelectric_Power


shedding was the main criteria for planning the transmission system. However, due

to various reasons such as spatial development of load in the network, non-

commissioning of load centre generating units originally planned and deficit in

reactive compensation, certain pockets in the power system could not safely

operate even under normal conditions. This had necessitated backing down of

generation and operating at a lower load generation balance in the past.

Transmission planning has therefore moved away from the earlier generation

evacuation system planning to integrate system planning.

While the predominant technology for electricity transmission and distribution has

been Alternating Current (AC) technology, High Voltage Direct Current (HVDC)

technology has also been used for interconnection of all regional grids across the

country and for bulk transmission of power over long distances.

Certain provisions in the Electricity Act 2003 such as open access to the

transmission and distribution network, recognition of power trading as a distinct

activity, the liberal definition of a captive generating plant and provision for supply

in rural areas are expected to introduce and encourage competition in the electricity

sector. It is expected that all the above measures on the generation, transmission

and distribution front would result in formation of a robust electricity grid in the

country.

Objectives

Sufficient power to achieve GDP growth rate of 8%.

Reliable power.

Quality power.

Optimum power cost.

Commercial viability of power industry.

Power for all.



Rural electrification

Jharkhand, Bihar, Uttar Pradesh, Orissa, Uttaranchal, Madhya Pradesh etc are

some of the states where significant number (more than 10%) of villages are yet to

be electrified.

Number of Villages (1991 Census) - 593,732

Villages Electrified (30 May 2010) - 488,173

Village level Electrification % - 82.2%



COMPANY PROFILE

Introduction to NTPC

Established in 1975, NTPC, the largest power company the country has been

consistently powering of the growth of India. An ISO 9001:2000 certified

company; it is world’s 3rd largest thermal power generator and second most

efficient capacity utilization.

Apart from power generation, which is the mainstay of the company, NTPC has

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

NTPC ranked 337th in the ‘2012, Forbes Global 2000’ ranking of the World’s

biggest companies. NTPC became a Maharatna company in May, 2010, one of the

only four companies to be awarded this status.

With this, NTPC reaffirms as one of the very Best Employers in India, second only

to Google and Intel. NTPC has also been ranked first amongst PSUs, 1st amongst

large organizations (more than 10,000 employees) and 1st amongst manufacturing

and production industries. Shri S.P. Singh, Director (HR) and Shri S. Roy,

Executive Director (HR), NTPC Ltd. received the award.

Fig-1.1 Growth of NTPC



The total installed capacity of the company is 39,174 MW (including JVs) with 16

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

JVs, 7 stations are coal based & another station uses naphtha/LNG as fuel. The

company has set a target to have an installed power generating capacity of

1,28,000 MW by the year 2032. The capacity will have a diversified fuel mix

comprising 56% coal, 16% Gas, 11% Nuclear and 17% Renewable Energy

Sources(RES) including hydro. By 2032, non fossil fuel based generation capacity

shall make up nearly 28% of NTPC’s portfolio.

Year of Establishment: 1983

Korba the ‘Power City’ of Chhattisgarh is endowed with natural resources

such as coal and bauxite. Being rich in coal, Korba was chosen for setting up of

pithead power plants. In early stages, two power plants of MPEB (Now CSEB)

were installed in the vicinity of Korba city. Thereafter in January 1978 NTPC got

clearance from the government to set up Thermal Power Plant of 2100 MW

Capacity at Korba.

In tune with the need for massive capacity addition in the changing scenario, 500

MW Unit was commenced operation in mid – 2010 and the installation cost would

be Rs 2,448.49 crore. Now Korba will added another feather in its cap by having

the first Merchant Power plant of NTPC and will thus help the company in taking

one more step in its Mission 2017.

In present day scenario, only the most economical, Qualitative and efficient

power generating station will meet the requirement of survival of the fittest. Korba

Super Thermal Power Station is constantly raising the bar of efficient and

economical power generation for excellence.



Despite over 25 years, NTPC Korba achieves over 97% PLF and is thus

treated as one of the best stations when we talk about Power Generation in India

today. Meritorious Performance Awards of twenty times in the last 28 years is a

testimony to the fact that this project has created a niche in the domain of

Operation and Maintenance of thermal power stations. The station has in fact set a

benchmark in producing power at the lowest cost.

Table - 1.1 Growth of Power Generation in Korba

Stage

Unit Number Installed Capacity (MW) Date of Commissioning

Total Seven 2600

1st 1 200 1983 March

1st 2 200 1983 October

1st 3 200 1984 March

2nd 4 500 1987 May

2nd 5 500 1988 March

2nd 6 500 1989 March

3rd 7 500 2010 December



AN OVERVIEW

Name & Location: NTPC LIMITED, KORBA

(SUPER THERMAL POWER STATION)

On the west bank of the Hasdeo river near Korba

District of Chhattisgarh

Approach: Nearest Rail Heads (Champa 52 Kms & Bilaspur 102

Kms)

Nearest Airport: Raipur 220 Kms

Installed capacity: Stage - I: 3x 200 MW, Stage -II: 3x 500 MW,

Stage -III: 1x500 MW

Approved investment: Rs. 2324 crores

Coal Source: Gevra Mines & Kusmunda Block

Coal Transportation: Merry-Go-Round system of 34.80 Km

Annual Coal: 11.4 Million Tonnes (approx.)

Water Source: Right Bank Canal of Haste River

Water requirement: 2.80 Lakhs Cu. M/day

Beneficiary States: Madhya Pradesh, Chhattisgarh, Maharashtra, Gujarat,

Goa, Union Territories of Daman, Diu, Dadra Nagar

Haveli

External Financial: IDA, OPEC, KFW



INCEPTION, HISTORY & PRESENT STATUS

INCEPTION:

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

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

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

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

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

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

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

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

89.5% of the equity share capital. In February 2010, the Shareholding of

Government of India was reduced from 89.5% to 84.5% through Further Public

Offer. The rest is held by Institutional Investors and the Public.

At NTPC, People before Plant Load Factor is the mantra that guides all HR related

policies. NTPC has been awarded No.1, Best Workplace in India among large

organizations and the best PSU for the year 2010, by the Great Places to Work

Institute, India Chapter in collaboration with The Economic Times.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC's

culture. Through its expansive CSR initiatives, NTPC strives to develop mutual

trust with the communities that surround its power stations.

The Corporation recorded a generation of 159.11 Billion Units (BUs) in 2011-12,

through 16 coal based , 7 gas based power plants, and Joint Venture Projects

spread all over the country.



Driven by its vision to lead, it has charted out an ambitious growth plan of

becoming a 66,000 MW plus company by 2017.NTPC has been rated as one of the

top most “Best Employer” of the country for the year 2003, 2004 and 2005 in a

row. “Best Companies to Work for in India”– Business Today Survey 2004, it has

developed into multi-location and multi-fuel company over the past three decades.

These achievements have been made possible by the 23500 strong and motivated

work forces that with their dedication are ever willing to take NTPC to greater

heights.

HISTORY OF NTPC

NTPC Company was incorporated on November 7, 1975 under the

Companies Act as a private limited company under the name National Thermal

Power Corporation Private Limited, and the word 'Private' was deleted on

September30,1976 consequent upon the notification issued by the government.

Exempting government companies from the use of word 'private' in their name On

September 30, 1985, NTPC Company was converted from a private limited

company into a public limited company. Subsequently, the name of Company was

changed to its present name NTPC Limited and a fresh certificate of incorporation

was issued on October 28, 2005. The name of Company was changed to reflect the

diversification of our business operations beyond thermal power generation to

include, among others generation of power from hydro, nuclear and renewable

energy sources and undertaking coal mining and oil exploration activities.

NTPC Company is not operating under any injunction or restraining order.

In July 1976, the registered office of our Company was changed from Shram

Shakti Bhawan, New Delhi to Kailash Building, Kasturba GandhiMarg, and New



Delhi. Subsequently, in May 1979 the registered office of our Company was

shifted to NTPC Square, 62- 63, Nehru Place, New Delhi and thereafter in October

1988 to its present location for administrative and operational efficiency.

MAJOR EVENTS

1975:- Incorporation of NTPC Company.

1978:- Takeover of management of the Badarpur project.

1982:- Commissioning of the first 200MW unit at Singrauli Centre of

education at power Management Institute, Delhi established First

direct foreign currency borrowing . A consortium of foreign banks

led by Standard Chartered Merchant Bank extends a loan of

GBP298.41 million for the Rihand project.

1984:- The transmission line based on High Voltage Direct Current

(¡°HVDC¡±) technology, commissioned for power transmission

from Rihand to Delhi Singrauli project received World Bank loan

of Rs 150 million.

1986:- Synchronized first 500MW unit at Singrauli NTPC Company

became one of the first PSUs to issue bonds in the debt market.

1988:- 5,000 MW installed capacity mark crossed.

1989:- First syndicated Japanese loan of 30 billion JPY raised.

1990:- Consultancy division of that Company launched First unit (88

MW) of Company’s first gas based combined cycle power plant at

Anta, Rajasthan commissioned.



1992:- Total installed capacity of 10,000 MW reached.

1993:- First acquisition by that Company of Frozen Gandhi snchahar

Thermal Power Station (2x210MW) from Uttar Pradesh Rajiv

Vidyut Utpadan Nigam of Uttar Pradesh the transmission systems

owned by our Company were transferred to Power Grid

Corporation of India Limited pursuant to legislation by the

Parliament of India.

1994:- IBRD extended direct loan of US0 million to NTPC Company

under time slice concept for its projects.

1995:- 15,000 MW of installed capacity achieved Maiden declaration of

dividend of Rs. 650 million Jhanor- Gandhar (Gujarat) becomes

our first thermal power station to have commissioned an integrated

Liquid Waste Treatment Plant.

1998:- 'Navratna' status granted by the GoI100 billion units generation in

one year achieved a consortium of foreign banks led by Sumitomo

Bank, Hong Kong extends foreign currency loan of 5 billion

Japanese Yen for the first time without Got guarantee.

1999:- Commissioned the first Naphtha based plant at Kayamkulam with

a capacity of 350 MW.

2000:- NTPC Company’s Dadri thermal power project, Uttar Pradesh

adjudged the best in India with a PLF of 96.12%Dadri thermal

power project, Uttar Pradesh certified with ISO 14001.



2003:- Three wholly owned subsidiaries, viz., NTPC Electric Supply

Company Limited, NTPC Hydro Limited and NTPC

VidyutVyapar Nigam Limited incorporated ESP[Electrostatic

precipitators) set up at Talcher power plant20,000 MW installed

capacity mark exceeded

2004:- NTPC Company undertook debt re-structuring. Raised funds

through bonds (Series XIII and XIV) Construction of first hydro-

electric power project of 800 MW capacity in Himachal Pradesh

commenced after the investment approval.

2005:- The award of contract for the first Super Critical Thermal Power

Plant at Sipat Reached a total installed capacity of 22,249MW

with the Talcher Unit V getting synchronized on May 13, 2004Our

Company’s Feroze Gandhi Unchahar Thermal station achieves

record PLF of 87.43% in current year up from 18.02% in February

1992 when it was taken over by us LIC extends credit facility for

Rs. 70 billion. Rs. 40 billion is in the form of unsecured loans

andRs.30 billion is in the form of bonds Our Company makes its

debut issue of euro bonds amounting to USD 200 million in the

international market First coal mining block allotted Listing of our

Equity Shares on the Stock Exchanges.

2006:- NTPC Company received the International Project Management

Award 2005 for its Simhadri project at the International Project

Management Association World Congress. Oil block allocated

under NELP V Our Company adopted core values

'BCOMIT'(Business Ethics, Customer Focus, Organizational



Pride, Mutual Respect and Trust, Innovation and Speed and Total

Quality for Excellence).

2007:- Badarpur Thermal Power Station having an installed capacity 705

MW transferred to our Company.

2008:- Granted in-principle approval for allocation of a new coal block,

Chatti-Bariatu (South) to our Company subject to the conditions

stipulated in the approval letter. The share of reserves is estimated

to be 354 Million Tonnes.

2009:- NTPC Company adjudged as the Star PSU – 2008 Board expanded

by appointment of 5 independent Directors India Power Award

conferred on Centre for Power Efficiency and Environmental

Protection.

2010:- Memorandum of understanding entered into with the Nuclear

Power Corporation of India Limited (NPCIL) for development of

nuclear power in India 30,000 MW installed capacity mark crossed

Long term fuel supply agreement with Coal India Limited for

supply of coal to our power stations for a period of 20 years.

2011:- NTPC ranked 348th in the ‘2011, Forbes Global 2000’ ranking of

the World’s biggest companies.

2012:- Bagged 3rd rank in India’s Best Companies to Work for the year

2012 by The Great Place to Work and The Economic Times, in a

glittering award ceremony in Mumbai on 13th July, 2012.

NTPC is the largest power utility in India, accounting for about 17.75% of India’s installed capacity.



PRESENT INSTALLED CAPACITY

The generating capacity as well as plant performance or operational efficiency has

been continuously growing without break since its inception. NTPC’s Installed

Capacity and performance depicts the company’s outstanding performance across a

number of parameters.

Table – 1.2 Performances across Number of Parameter

NO. OF PLANTS CAPACITY (MW)

NTPC OwnedCoal 16 30,855

Gas/Liquid Fuel 7 3,955Total 23 34,810

Owned By JVsCoal & Gas 7 4,364

Total 30 39,174

Table – 1.3 Regional Spread of Generating Facilities

REGION COAL GAS TOTAL

Northern 8,515 2,312 10,827Western 9,840 1,293 11,133Southern 4,600 350 4,950Eastern 7,900 - 7,900

JVs 2,424 1,940 4,364Total 33,279 5,895 39,174



COAL BASED POWER STATIONS

The coal based power station has been power stations have been always the main

stay of NTPC. It is one of the biggest users of coal in India. The entire generation

back bone of NTPC is based on its coal fired stations. Following are the coal based

stations of NTPC.

Table – 1.4 Coals Based Power Station


S.NoCoal

Based(Owned by NTPC)

State Commissioned Capacity(mw)

1. Singrauli Uttar Pradesh 2,000

2. Korba Chhattisgarh 2,600

3. Ramagundam Andhra Pradesh

2,600

4. Farakka West Bengal 2,100

5. Vindhyachal Madhya Pradesh

3,760

6. Rihand Uttar Pradesh 2,500

7. Kahalgaon Bihar 2,340

8. Dadri Uttar Pradesh 1,820

9. TalcherKaniha Orissa 3,000

10. Unchahar Uttar Pradesh 1,050

11. Talcher Orissa 460

12. Simhadri Andhra Pradesh

2,000

13. Tanda Uttar Pradesh 440

14. Badarpur Delhi 705

15. Sipat-II Chhattisgarh 2,980

16. Mauda Maharashtra 500

Total 30,855


GAS/LIQUID FUEL BASED POWER STATIONS

With a combined gas based commissioned capacity of 3955 MW, NTPC caters to

the peeking demand for power.

S.No

Gas Based

(Owned by NTPC) StateCommissioned Capacity(mw)

1. Anta Rajasthan 4132. Auraiya Uttar Pradesh 6523. Kawas Gujarat 6454. Dadri Uttar Pradesh 8175. Jhanor-Gandhar Gujarat 6486. Rajiv Gandhi CCPP

KayamkulamKerala 350

7. Faridabad Haryana 430Total 3,955

Table - 1.5 Gases/Fuel Based Power Station

Table – 1.6 Gases Based Joint Ventures


S.No

Coal based (Owned by

JVS) State

Commissioned Capacity

1. Ratnagiri Maharashtra 14802. Raurkela Orissa 1203. Bhilai Chhattisgarh 5744. Durgapur West Bengal 1205 Muzaffarpur Bihar 1106. Jhajhar Haryana 500Total 3,364


HYDRO BASED POWER PROJECTS (Under Implementation)

NTPC has increased thrust on hydro development for a balanced portfolio for long

term sustainability. The first step in this direction was taken by initiating

investment in Koldam Hydro Electric Power Project located on Satluj river in

Bilaspur district of Himachal Pradesh. Two other hydro projects under construction

are Tapovan Vishnugad and Loharinag Pala. On all these projects construction

activities are in full swing.

Table – 1.7 Hydro Based Power Project

S.No Hydro Based State ApprovedCapacity(mw)

1. Koldam (HEPP) Himachal Pradesh

800

2. Loharinag Pala (HEPP) Uttarakhand 600

3. TapovanVishnugad (HEPP)

Uttarakhand 520

Total 1,920



VISION, MISSION, CORE VALUE & OBJECTIVES

VISION

“A world class integrated power major, powering India’s growth, with increasing

global presence”

MISSION

“Develop and provide reliable power, related products and services at competitive

prices, integrating multiple energy sources with innovative and eco-friendly

technologies and contribute to society”.

Make available reliable and quality power in increasingly large quantities at

competitive prices and ensure timely realization of revenues.

Develop a strong portfolio of profitable businesses in overseas

markets including technical services, generation assets etc.

Continuously attract and develop committed human resources to

match world standards.

Lead fundamental and applied research for adoption of the state-of-

the-art technologies, breakthrough efficiency improvements and new fuels.

Lead developmental efforts in the Indian power sector including assisting

state utility reform, policy recover etc.

Adopt a broad based capacity portfolio including Hydro Power, LNG,

Nuclear Power, and non conventional and eco-friendly fuels.



Plan and speedily implement power projects using state-of- the art

technologies.

Be an integrated utility by implementing strategic diversifications in areas

such as power trading distribution, transmission, coal mining, coal

beneficiation etc.

CORE VALUES – BE COMMITTED

B = Business Ethics.

E = Environmentally & Economically Sustainable

C = Customer Focus

O = Organizational & Professional Pride

M = Mutual Respect And Trust

M = Motivating Self & Others

I = Innovation and Speed.

T = Total Quality For Excellence

T = Transparent & Respect Organization

D = Devoted



OBJECTIVES OF COMPANY

Business Portfolio Growth

To further consolidate NTPC‟S position as the leading thermal power

generation company in India and establish a presence in hydro power

segment. To broad base the generation mix by evaluating conventional

sources of energy to ensure long run competitiveness and mitigate fuel-risks.

To diversify across the power value chain in India by considering backward

and forward integration into areas such as power trading, transmission,

distribution, coal mining, coal beneficiation, etc.

To develop a portfolio of generation assets in international markets.

To establish a strong brand in the domestic & international market

Customer Focus

To foster a collaborative style of working with customer growing to be a

preferred brand for supply of quality power.

To expand the relationship with existing customers by offering a bouquet of

services in addition to supply of power e.g. trading, energy consulting,

distribution consulting, management consulting, management practices.

To expand the future customer portfolio through profitable diversification

into downstream business, inter alia retail distribution and direct supply.

To ensure rapid commercial decision making, using customer specific

information with adequate concern for the interests of the customer.



Agile Corporation

To ensure effectiveness in business decisions and responsiveness to change

in the business environment by Adopting a portfolio approach to new

business development. Continuous and coordinated assessment of the

business environment to identify and respond to opportunities and threats.

To develop a learning organization having knowledge based competitive

edge in current and future businesses.

To effectively leverage information technology to ensure speedy decision

making across the organization.

Performance Leadership

To continuously improve on project execution time and cost in order to

sustain long run competitiveness in generation.

To operate & maintain NTPC stations at par with the best run utilities in the

world with respect to availability, reliability, efficiencies.

To aim for performance excellence in the diversification businesses.

To embed quality in all systems and processes.

Human Resource Development

To enhance organizational performance by institutionalizing an objective

and open performance management system.

To align individual and organizational needs and develop business leaders

by implementing a career development system.



To enhance commitment of employees by recognizing and rewarding high

performance.

To build and sustain a learning organization of competent world-class

professionals.

To institutionalize core values and create a culture of team building,

empowerment, equity, innovation and openness which would motivate

employees and enable achievement of strategic objectives.

Financial Soundness

To maintain and improve the financial soundness of NTPC by prudent

management of the financial resources.

To continuously strive to reduce the cost of capital through prudent

management of deployed funds, leveraging opportunities in domestic and

international financial markets.

To develop appropriate commercial policies and processes this would ensure

remunerative tariffs and minimize receivables.

Sustainable & Development

To contribute to sustainable power development by discharging corporate

social responsibilities.

To lead the sector in the areas of resettlement and rehabilitation and

environment protection including effective ash-utilization, peripheral

development and energy conservation practices.



To lead developmental efforts in the Indian power sector through efforts at

policy advocacy, assisting customers in the operations and management of

power plant.

PRODUCT PROFILE

What is electricity?

Electricity is a type of energy that can build up in one place or flow from one place

to another. When electricity gathers in one place it is known as static electricity

(the word static means something that does not move); electricity that moves from

one place to another is called current electricity.

Generating electricity

Just as electricity can make magnetism, so magnetism can make electricity. A

bicycle dynamo is a bit like an electric motor inside. When you pedal your bicycle,

the dynamo clipped to the wheel spins around. Inside the dynamo, there is a heavy

core made from iron wire wrapped tightly around—much like the inside of a

motor. The core spins freely inside some large fixed magnets. As you pedal, the

core rotates inside these outer magnets and generates electricity. The electricity

flows out from the dynamo and powers your bicycle lamp.

The electric generators used in power plants work in exactly the same way, only on

a much bigger scale. Instead of being powered by someone's legs, pedalling

furiously, these large generators are driven by steam. The steam is made by

burning fuels or by nuclear reactions. Power plants can make enormous amounts of

electricity, but they waste quite a lot of the energy they produce. The energy has to

flow from the plant, where it is made, to the homes, offices, and factories where it



is used down many miles of electric power cable. Delivering electricity this way

can waste up to two thirds of the power originally produced.

How does electricity get from a power plant to your home?

The heart of a power station is a large generator that extracts energy from a fuel.

Some power stations burn fossil fuels such as coal, oil, or gas. The heat produced

is used to turn water into steam at high pressure. This steam turns a windmill-like

device called a turbine connected to an electricity generator. Extracting heat from a

fuel takes place over a number of stages and some energy is wasted at each stage.

Fig – 1.2 Steps to Generate Electricity

1. Fuel: The energy that finds its way into your TV, computer, or toaster starts


http://www.explainthatstuff.com/turbines.html

http://www.explainthatstuff.com/heat.html

http://www.explainthatstuff.com/generators.html


1. Fuel: The energy that finds its way into your TV, computer, or toaster starts

off as fuel loaded into a power plant. Some power plants run on coal, while

others use oil, natural gas, or methane gas from decomposing rubbish.

2. Furnace: The fuel is burned in a giant furnace to release heat energy.

3. Boiler: In the boiler, heat from the furnace flows around pipes full of cold

water. The heat boils the water and turns it into steam.

4. Turbine: The steam flows at high-pressure around a wheel that's a bit like a

windmill made of tightly packed metal blades. The blades start turning as

the steam flows past. Known as a steam turbine, this device is designed to

convert the steam's energy into kinetic energy (movement). For the turbine

to work efficiently, heat must enter it at a really high temperature and

pressure and leave at as low a temperature and pressure as possible.

5. Cooling tower: The giant, jug-shaped cooling towers you see at old power

plants make the turbine more efficient. Boiling hot water from the steam

turbine is cooled in a heat exchanger called a condenser. Then it's sprayed

into the giant cooling towers and pumped back for reuse. Most of the water

condenses on the walls of the towers and drips back down again. Only a tiny

amount of the water used escapes as steam from the towers themselves, but

huge amounts of heat and energy are lost.

6. Generator: The turbine is linked by an axle to a generator, so the generator

spins around with the turbine blades. As it spins, the generator uses the

kinetic energy from the turbine to make electricity.

7. Electricity cables: The electricity travels out of the generator to a

transformer nearby.


http://www.explainthatstuff.com/how-heat-exchangers-work.html

http://www.explainthatstuff.com/steam-turbines.html


8. Step-up transformer: Electricity loses some of its energy as it travels down

wire cables, but high-voltage electricity loses less energy than low-voltage

electricity. So the electricity generated in the plant is stepped-up (boosted) to

a very high voltage as it leaves the power plant.

9. Pylons: Hugh metal towers carry electricity at extremely high voltages,

along overhead cables, to wherever it is needed.

10.Step-down transformer: Once the electricity reaches its destination,

another transformer converts the electricity back to a lower voltage safe for

homes to use.

11.Homes: Electricity flows into homes through underground cables.

12.Appliances: Electricity flows all round your home to outlets on the wall.

When you plug in a television or other appliance, it could be making a very

indirect connection to a piece of coal hundreds of miles away


http://www.explainthatstuff.com/transformers.html

http://www.explainthatstuff.com/transformers.html


MARKET SHARE

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

company has 17.75% of the total national capacity, it contributes 27.40% of total

power generation due to its focus on high efficiency.

Fig – 1.3 NTPC Vs Rest of India

PERFORMANCE STATISTICS

In terms of operations, NTPC has always been considerably above the national

average. The availability factor for coal based power stations has increased from

78.00% in 1997-98 to 88.00% in 2011-12, which compares favorably with

international standards. The PLF has increased from 76.6% in 1998-99 to 85.00%

during the year 2011-12.



Fig – 1.4 PLF of NTPC Station vs All India

COMPETITORS’ OVERVIEW

TATA POWER

Tata power is India’s largest private sector power utility. Its revenues are $ 1 bn.

Its Profit after tax is $ 137 mn. Its generation capacity is 2300 MW. Out of that in

Mumbai, the capacity is 1800 MW. It has presence in generation, transmission and

distribution of power. It supplies power to Mumbai and Delhi regions.

Business strategy:

The core business of Tata Power Company is to generate, transmit and distribute

electricity. The Company operates in two business segments: Power and Other

services. The Power segment is engaged in generation, transmission and

distribution of electricity. The other services segment includes electronic

equipment, broadband services, and project consultancy and oil exploration.

RELIANCE ENERGY



Reliance Energy Ltd (REL) formerly known as Bombay Suburban Electric Supply

(BSES) is a part of the Anil Dhirubhai Ambani Group. It is an integrated power

utility company in the private sector in India which came into existence when it

took over BSES in 2002.

The company is the sole distributor of electricity to consumers in the suburbs of

Mumbai. It also runs power generation, transmission and distribution businesses in

other parts of Maharashtra, Goa and Andhra Pradesh. REL has significant presence

in the field of execution of the Power projects on EPC (Engineering, Procurement

and Commissioning) basis.

CESC

CESC, a power utility in India was setup in 1899. CESC Limited is a flagship

company of RPG Enterprises, which is one of India's well-managed groups of

companies with a diversified presence. Company brought thermal power to India

more than 100 years ago and supplies power to the city of Kolkata.

GAIL (INDIA) LIMITED

GAIL (India) Limited is no blowhard when it comes to turning energy into profits.

The largest gas transmission and marketing company in India, GAIL owns more

than 6,700 km of pipeline and has a 78% market share in India's natural gas

transmission business. It has seven gas processing units and owns India's largest

gas-based petrochemicals complex. In addition, GAIL has major

domestic exploration and production operations. It also has a fibre-optic cable

network of 13,000 km that provides bandwidth to telecommunications carriers. It is

also involved in liquefied natural gas import projects. The company is also



exploring buying US shale assets. The government of India owns 57% of the

company.



WORK FORCE DETAILS

NTPC has continuously been part of the Best Workplaces List for the last eight

years and has been consistently amongst top performers. NTPC has over 25000

employees spread over 29 locations across the country. Company is the leader in

power generation with presence in Thermal, Hydro, power trading, coal mining

and power consultancy services.

The below pie-chart shows the category wise distribution of employees of NTPC,

Korba as on 31-03-2012.Today NTPC Korba with a dedicated and trained

manpower of around 2300 employees has earned a distinction for itself in the field

of power generation. For works of non-perennial nature, contracts are resorted to.

All employees and also contractor employees are covered under safety, health and

environmental management system (IS/ISO 14001: 1996 & IS18001:2000).

Fig – 1.5 NTPC, Korba Manpower Profile



NTPC, Korba maintains healthy and mutually enriching relationship with all

representatives (Unions & Associations) of its people. Award and Reward scheme

is effectively developed to recognize the contributions of our people who are

making NTPC, Korba a success story.

In tune with the need for massive capacity addition in the changing scenario,

adding another 500 MW Unit was commenced on end of 2010. Once completed,

Korba will added another feather in its cap by having the first Merchant Power

plant of NTPC and will thus help the company in taking one more step in its

Mission 2017.

In present day scenario, only the most economical, Qualitative and efficient power

generating station will meet the requirement of survival of the fittest. Korba Super

Thermal Power Station is constantly raising the bar of efficient and economical

power generation for excellence.

Despite over 25 years, NTPC Korba achieves over 97% PLF and is thus treated as

one of the best stations when we talk about Power Generation in India today.

Meritorious Performance Awards of twenty times in the last 26 years is a

testimony to the fact that this project has created a niche in the domain of

Operation and Maintenance of thermal power stations. The station has in fact set a

benchmark in producing power at the lowest cost.



Fig - 1.6 ORGANIZATIONAL STRUCTURE


DIRECTOR

HR

DIRECTOR

PRODUCTION

DIRECTOR

MARKETING

DIRECTOR

FINANCE

DIRECTOR

TECHNICAL

REGIONAL DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

ASSISTANT GENERAL MANAGER

SENIOR MANAGER

CMD NTPC

MANAGER


CHAPTER- 2

RESEARCH METHODOLOGY

DESIGN OF THE STUDY

An organizational study at National Thermal Power Corporation Ltd (NTPC),

Korba. It is a study of organizational activities in all functional areas in an

organization which is to relate the theoretical knowledge acquired. Further the

study could include study of a specific management problem of any specific

department or a case study focusing on any specific issue.

OBJECTIVES OF THE STUDY:

An objective is specific statement of the outcome we aim for in a learning activity.

We want to state your objectives in a measurable way, so that we can evaluate

whether it has been met. When we talk about an objectives or goals we would like

to achieve the future.

To have knowledge of the formal functional activities of the organization.

To know about the work culture followed by the company.

To know the organization structure.

To know the manufacturing process.

To gain firsthand experience.

To relate the theoretical studies with the practical style of management

followed in organization.



It helps in developing skills in application of the theory to practical work

situations.

To study on SWOT analysis.

SCOPE

The scope of the organizational study is wide. The study helps to know about the

work culture of the organization. It also helps to enable about the duties,

responsibilities and functions of each departments in achieving the organizational

goal of the company. Moreover it helps to ascertain the interrelationship among

different departments in the organization. It also helps to know about the

organization hierarchy, structure and its policy.

SOURCES OF DATA

Primary Data

The report has been framed out of the primary data source. It basically deals

with the inspection done by me with the management and supervision of various

departments.

Secondary Data

The data was collected through reference books, website, company profile,

broachers, manuals, reference to previous studied, report, etc.



LIMITATIONS

There are some limitations to the study done, they are as follows:

The study was restricted for 45 days; due to time constraint an in depth study

of all the departments was not possible.

All the inherent limitations of the secondary data are applicable to this study

and are static for the given frame of time.

A comprehensive study using all the tools of analysis couldn’t be made due

to the limitation of time.


Functional Departments

Finance & Admin

Human Resource

Operation & Mgmt


CHAPTER- 3

FUNCTIONAL DEPARTMENTS

Fig – 3.1 FUNCTIONAL DEPARTMENTS

FINANCE & ADMINISTRATION:

Every business main intentions are to make the profit so, business transaction need

to be recorded in specific format for the calculation of profit or loss at the end of

year. Finance department is very important for every organization to keep the

finance related information. Finance department involved in the recoding of

monitory transaction and finalization of accounts which is helpful for management

decisions. Finance department is also responsible for planning of funds

requirements in the future and it needs to find the sources finance.



OBJECTIVES OF DEPARTMENT:

a. Ensuring regular & sufficient supply of capital to business.

b. Ensure affair rate of return to the supplier of the capital.

c. Ensure the best utilization of capital by following the principals of liquidity,

profitability & safety.

d. Coordinating the activities of the finance department with those of other

department of the enterprise.

Fig – 3.2 STRUCTURE OF F&A DEPARTMENT


DGM

Works & Admin

Sr.M (Works, Books, Budget,

Cash & Bank)

SMF

Purchase

Sr. MANAGER

MANAGER

Asst. MANAGER

Sr. MANAGERMANAGER

MANAGERAsst. MANAGER

Asst. MANAGER

HOD

(F&A)


F&A DEPARTMENT

Finance department is very essential for any organization to be set up. It is

the backbone of any organization. Similarly the finance department plays a vital

role in the set up and running of NTPC Chief Accountant manager and chief

finance manager work under the direct control of finance Director at NTPC. Other

top executives in the finance department are senior executive (finance), divisional

officer (finance), accounts officers; assistant accounts officers, senior assistants

(Accounts) and assistant (accounts). The chief finance manager and accounts

manager handle various activities in the finance department. Each of them has their

tasks cut out systematically in these areas.

Different sections of Korba Super thermal power Station (KSTPS) Finance

Departments. This section Work on a system that is online integrated material and

Finance accounting system (OLIMFAS). The language of the system is Indresh.

Now new programme come is enterprise resource planning system (ERP).Work-

maintenance of fixed assets, make register. Provide depreciation threw its Stateline

method on the fixed assets. When the Value of assets comes down 5% of its total

value than no depreciation will charge on the assets. The rate of depreciation

giving by central electricity authority (CEA).This section also make budget-Firstly

a cost centre is allocated in each department and each cost centre is handling by a

responsibility centre. They make estimation and give to book and budget section.

This section collects all estimation from each responsibility centre and make final

estimation and send it to corporate office then corporate office finalize this budget

estimate. In each six-month the budget estimate is revised and if any change are

required then it sent to corporate office and then it finalize.



In NTPC, finance and accounting department is subdivided into 8 sub departments.

They are:-

Books & Budget

Commercial section

Store bill section

Vetting and concurrence

Priced store ledger (PSL) section

Works bill section

Establishment section

Miscellaneous section

BOOKS & BUDGET:

The main work of this section is accounting and maintaining the register of

finance. Another function done by this section is auditing for which the

accountants are out sources by the NTPC. The main audits conducted by the

company are:

a) Internal audit & Statutory audit: - Mainly done by the out sources

accountants. It is done quarterly or as per the need.

b) Controller & Auditor general of India audit: - This audit had

done by controller’s attorney general of India. This is the audit of

balance sheets.



c) Cost audit: - From 2005-2006 company start cost audit. It handles

the cash. These departments send the estimation for cash requirement, to

the corporate office weekly and daily basis and also tell why

it is required. Also interface with banks, make payment and receive payment

Take custody of monetary and non-monetary instrument for security. It is

also take bank guarantee for performance; it is also called documentary

credit.

d) Prosperity audit: - This audit is done for check the system to see that all

going properly or not. It is done once in five year.

COMMERCIAL SECTION

This section does the accounting of sales of the project. It makes oil and coal

payment voucher. It also maintain priced store ledger (PSL).

STORE BILLS SECTION

This section does the payment of inventory as per terms of purchase order, advance

and final payment and maintains account. Make advance schedule

and material under inspection schedule. It also makes insurance payment,

transporters payment, premium and claims.

VETTING AND CONCURRENCE

The work of this Section is as follows:-

a) Contract and Purchase estimation-If we purchase any goods in second time

then last price is based. If we purchase first time then User give budget offer.

b) Vetting of competitive statement then we calculate Land Price.



c) Vetting of Draft Purchase Order.

d) Finance Concurrence.

PRICED STORE LEDGER (PSL) SECTION

This section does the physical inventory valuation. The method of valuation is

monthly moving weighted average. This valuation is done in every month. There

are some tools for PSL:-

1) (SRV) Store Received Voucher on invoice value.

2) (MRN) Material Return Note.

3) (SIV) Store Issue Voucher.

4) (MTN) Material Transfer Note.

This department gives the reports in various topic like XYZ, ABC and VED

analysis report, and non-moving item report. And also done physical verification of

stock every year.

WORKS BILL SECTION

This Sect ion does the payment of services taken by SSTPS l ike

Maintenance Contracts. The payment made on Running Bill on the basis of

Measurement Book. Also do the final payment and take Penalties and return there

Securities. This section also do the capitalization were work is going on. The work

not had done fully completed Show under Capital Work In Progress

Account (CWIP). When this work complete then CWIP to Fixed Assets.

Incidental Expenditure during Construction (IEDC) and Interest During

Construction (IDC) add in CWIP Account. Renovation and Modernization



Work is going on four Stations i.e. Singrauli, Korba, Ramagundam and

Farakka. And the work of Renovation and Modernization handle by this Section.

Method of Renovation and Modernization

1) Old assets replace threw new assets.

2) Totally new assets if life of assets is end.

3) Improve the efficiency of Machines.

4) Increase the life of Machine

ESTABLISHMENT SECTION

This Section give the Salary and recover the PPF amount, House rent,

Electricity charge, Club expenses and Income tax from employees. This section

also deals with Loan & Advances given to employees. Some type of Loans

provides by NTPC to its employee:-

1) Furniture or Household loan up to 9000 for Non-executives, 15000 for

assistant manager and 25000 for managers.

2) Multipurpose loan it is equal to the Basic pay.

3) Convenience loan for Car, Bike.

4) House Advances Maximum 750000.

MISCELLANEOUS SECTION

This section makes the payment of Non-Oriented contract payment. Deal with

Petty Cash. Telephone bills, Entertainment expenses paid by this Section.



HUMAN RESOURCE MANAGEMENT

HRM can be defined as managing (Planning, organizing, directing & controlling)

the functions human relations with a view to contribute proportional to the

organization individual & social goals.

Functions of HRM:

I. Managerial function

a. Planning

b. Organizing

c. Directing

d. Controlling

II. Operative function

a. Employment

b. Human resource development

c. Compensation

d. Human relation

OBJECTIVES OF HR FUNCTION:

To Place manpower of required quality and in required number in position

so as to ensure fulfillment of company’s objectives, plans and policies. The

department would forecast on a continuous basis in advance, manpower

requirement at various stages of the construction and operation of

company’s projects, the organization structure, the type of manpower etc.

and plan advance action to meet the above objective. Through proper

recruitment and selection process, the department would Endeavour to



attract persons with potential and select those with high degree of

knowledge, skill and caliber.

To formulate design, review and implement suitable pre-employment and

post-employment training and in-company and external management

development and workers development programmers with an individual

employee of the company.

To identify from among the employees of the company persons with

potential to rise to high levels of organizational hierarchy and develop

implement suitable systems of career planning and managerial succession

planning.

To create and sustain a favorable employee attitude a view to obtaining

maximum contribution and cooperation of employees in achieving the

objectives of the company through suitable employment, adequate,

compensation by way of wages/salaries, benefits, welfare facilities, suitable

motivational schemes, safe working conditions and job satisfaction.

Develop personnel policies in all areas relevant to the manpower to

management and notify the same to the employees with a view to reducing

the communication gap between the management and the employees.

To cultivate and maintain a participative culture through suitable system of

managers participation in decision making and workers participation in

management.

To establish and introduce suitable systems of grievance handling for

redresser of employees grievances in the shortest possible time and with the

lowest possible steps.



To encourage healthy and legitimate trade union activities and based on

mutual respect of each other’s view points and look upon trade unions as the

agencies of communication between the management and workers. To this

end, the department would endeavor to understand the problems of workers

through regular dialogues with the trade unions and aim at solving problems

and disputes through mutual discussions.

To identify key areas of organization development, diagnose the problems,

suggest measures and follow-up the implementation.



Fig- 3.3 STRUCTURE OF HUMAN RESOURCE DEPARTMENT


DEPUTY GENERAL MANAGER

ASST. GENERAL MANAGER

SENIOR MANAGER

MANAGER

ASST. MANAGER

OFFICER

GENERAL MANAGER


NTPC believes in the power of people and it is the professional philosophy of the

management to create an enabling organizational culture for people to demonstrate

their creativity, initiative and involve in holistic development, through recognition

and celebration of achievements. Although NTPC has formulated many HR

policies for employee’s development and growth, it was felt that there is still space

for enhancing employee’s motivation and morale on a continued and sustained

basis. Therefore, a bouquet of rewards and recognition schemes is evolved with an

objective of reinforcing good work and behavior of employees in order to achieve

Organizational excellence.

To enhance organizational performance by institutionalizing an objective

and performance management system.

To individual and organizational needs and develop business leaders by

implementing a career development system.

To enhance commitment of employees by recognizing and rewarding high

performance.

To build and sustain learning organization of competent world- class

professionals.

To institutionalize core values and create a culture of team-building,

empowerment, equity, innovation and openness which would motivate

employees and enable achievement of strategic objectives.

We recognize that our employees are our prime assets and we always strive to

create an environment where employees feel they belong. We value their

contributions, support their development and help them balance their work and



personal lives. Development of skill and competencies and particularly safety

awareness of our employees and also of contract labour who are engaged in our

works is a key issue for us. We constantly strive to focus our human resource

policies, benefit plans and programmers to enhance the performance. Our

employees /spouses have formed various welfare bodies which are:-

Pragati Club

Nucleus club

Maitry Mahila Samiti

Bal Bhawan to promote various cultural & sports activities

CORPORATE SOCIAL RESPONSIBILITY

Social Responsibility is the obligation of managers to choose and act in a way that

benefit both the interest of the organization and those of the society as a whole.

“Corporate Social Responsibility is the continuing commitment by business to

behave ethically and contribute to economic development while improving the

quality of life of the workforce and families as well as local community and

society at large”.

CSR in NTPC Ltd. is not limited to only community development, but

encompasses a whole range of issues in line with global international CSR

principles and practices. A measure of NTPC’s commitment to CSR is that of 0.5%

of its profit is set aside for community development under the umbrella of CSR.



The main functions of CSR are as follows:

Achieve community development targets

Improve ASH Utilization

Reduce Carbon Dioxide emission

Achieve ISO 1400/SA8001 certification

Involve professional (socio-economic surveys)

Access to water, road and electricity

Education and Capacity building facilities

Healthcare support

Sanitation and Public health

Promotion of sports and games

Community centers

Vocational training and Capacity building,

Skill development centers,

Support for agricultural activities



HR Function at Corporate Level

Major functions under this level are:

a) Industrial Engineering

b) Employment and Placement

c) Training Management Development, Organizational Development &

Personal Research

d) Establishment

e) Policies and Rules

f) IR and Welfare Policy

g) HRD - Promotion, Performance Appraisal System and Employee

Development.

h) Administrative Services

i) Corporate Office Administration

j) Public Relations

Explanations of the above functions have been given in the following Paragraphs

Industrial Engineering:

The activities of this group span the various facts of manpower planning &

budgeting, organization structure, development of manpower norms/

standards/modules, incentive/ reward schemes, preparation of financial budgets for

Corporate Personnel &Administration, Job Evaluation & Development of job



specification/descriptions, Personnel Data Bank and computerization, Organization

& Methods etc.

Employment and Placement:

This function covers with the various activities pertaining to the recruitment of all

executives/executive trainees of the corporation and the non-executives of Delhi

based offices. The major activities undertaken include recruitment planning,

release of advertisement, screening of applications, organizing test and/or

interviews, drawing up panels, release of offers, post-offer correspondence etc.

apart from visioning with Employment Exchange and other Governmental

agencies.

Corporate Training:

This group looks after the development of training policies, programmers of

various types of technical training schemes including Engineering Executive

Trainees, Executive trainees (Chemistry), Diploma Trainees, ITI Trainees, training

under contract packages etc. Training design and review, policies and assistance

regarding training infrastructural development, design of trade test/skill

development programmers etc. also forms an important component of this area.

Also, the development, standardization and review of course material, audio visual

aids etc. is looked after by this group.

Management Development, Organizational Development and Personnel Research:

This function encompasses the various organization development aspects relating

to performance appraisal, career & succession planning, job rotation & action

learning, promotion policy etc. Design and conduct of need based in company

management development programmes, sponsorship to outside agencies for



training also forms once the basic segments of this function. The design,

organizing and conduct of trainee schemes for Finance & personnel Executive

Trainees and Supervisor (Personnel) & Accountant Trainees is another area under

this function.

Establishment:

This area covers personnel activities from the time an employee joins the

organization to the time he leaves or superannuates. These include the joining

formalities, postings and transfers, confirmation/absorption, promotion & seniority,

forwarding of applications, processing of resignations etc. for the executives of the

entire and the non-executives of Delhi based offices apart from employee

entitlement like Leave encashment, LTC, Loans & Advances, terminal benefits,

group insurance for the executives and non-executives of Delhi based offices.

Maintenance of personnel records/files also forms one of this area’s major tasks.

Policies & Rules:

This area includes various activities pertaining to formulation, implementation and

auditing, monitoring of various personnel policies like wages & salary, allowances

& reimbursements, Safety etc. Also covered under this area are the development,

implementation and issue of clarifications relating to service rules, conduct,

discipline and appeal rules, rules on entitlements, overtime & pay fixation rules,

etc. Dealing with parliament questions and coordination of various consultative

committees, joint machineries, personnel heads meeting etc. also forms a part of

this area.



IR & Welfare Policy:

Scholarship for meritorious students of employees.

Canteen facilities at subsidized rates.

Workmen compensation for all employment injury.

Settlement of accounts terminal benefits of death causes.

Recreation- fine arts, clubs, sports clubs for employees.

Education facilities to employee’s children.

Community development immunization on family planning, tailoring classes,

polio and others.

Arranging talks on diseases like AIDS, Cancer, and Diabetes etc.

Arranging for periodical health checkups.

Labour welfare fund loans and advances to employees.

Reference courses for education of employees.

Consumer co-operative society for benefit of employees.

Medical facilities and hospitals with in and outpatient facilities.

Transportation facilities.



HRD Promotion, Performance Appraisal System and Employee Development:

This group looks after the performance appraisal system, Promotion Policy for

Executives, Supervisors and Workmen. Also, covered under this group is of

Employee Development scheme so as to provide career development opportunities

to the employees in Supervisory/Workmen Cadres.

Administrative Services:

This area deals with planning, coordination with appropriate agencies and

development of Security and fire fighting systems, intelligence systems etc. apart

from rendering assistance to projects in the establishment of Central Schools,

telephone exchanges etc.

Corporate Office Administration:

This function consists of work relating to leasing and allotment of office and

residential accommodation, transport & guest house facilities, receipt and dispatch,

communication facilities procurement, and issue of office equipment and

consumables, travel booking, Medical facilities and SC/ST cell etc. apart from

implementation of official language (Hindi) etc.

Public Relations:

This function looks after the building up and sustaining the image of the

organization in the eyes of the public at large through arrangement of press

coverage’s of important events in the organization, TV/Radio coverage’s and

publicity material. This publication of house journal and associated editing

activities are also a part of this function.



OPERATION AND MAINTENANCE DEPARTMENT

NTPC has consistent track record of high availability and plant load factor (PLF)

across plants based on diverse technologies. NTPC has emphasized predictive &

preventive maintenance systems to achieve this track record.

Services covered under Environmental Engineering and Management include the

following:

Plant start-up including prescribing pre-operational checks.

Station management services for Operation & Maintenance services for Coal

based and Gas based Combined Cycle plants.

Development of Operation and Maintenance Management Systems &

computerization.

Supervision of Equipment Repairs and Unit Overhaul.

Laboratory tests & field tests.

State-of-the-art Operation and Maintenance training for coal based and gas

based units.

Performance Analysis and Optimization.

Condition Monitoring of critical equipment.

Fuel Management.

PG test/capacity test.

Energy audit



Fig – 3.4 STRUCTURE OF OPERATIONS & MAINTENANCE DEPARTMENT


HOD (O&M)

DGM (OPN) DGM (EMG) DGM (MTP)

AGM

Sr. MANAGER

MANAGER

Asst. MANAGER

ENGINEER

AGM AGM

Sr. MANAGER Sr. MANAGER

MANAGER MANAGER

Asst. MANAGER Asst. MANAGER

ENGINEER ENGINEER


Primarily it is the operation and maintenance of the power projects which holds the

key for being successful as an Independent Power Producer. NTPC with its proven

world class track record of operating and maintaining the power stations and

having provided this service successfully to many domestic clients is now

positioned to offer this service to International clients through its International

Cell. The O&M service has been tailored for international clients and consists of

the following modules and sub-modules. However, this can be further tailored to

meet any client’s expectations

Maintenance Management

The term ‘maintenance’ means to keep the equipment in operational condition or

repair it to its operational mode. Main objective of the maintenance is to have

increased availability of production systems, with increased safety and optimized

cost. Maintenance management involves managing the functions of maintenance.

Maintaining equipment in the field has been a challenging task since the beginning

of industrial revolution. Since then, a significant of progress has been made to

maintain equipment effectively in the field. As the engineering equipment becomes

sophisticated and expensive to produce and maintain, maintenance management

has to face even more challenging situations to maintain effectively such

equipments in industrial environment.

Functions of Maintenance Department

Following are the major functions of maintenance department:

Maintenance of installed equipment and facilities

Installations of new equipment and facilities



Inspection and lubrication of existing equipment

Monitoring of faults and failures using appropriate techniques

Modifications of already installed equipment and facilities

Management of inventory

Supervision of manpower

Keeping records

Material Management

According to Lee & Dobler - Material management as a confederacy of traditional

material activities bound by a common idea- the idea of an integrated management

approach to planning, acquisition, conversion, flow and distribution of production

material from the raw material state to the finished product state.

Function of Material Management

To arrange the facilities required for the material management.

To dispatch the material to the production department.

To look for new materials and suppliers that can contributes to company

profits.

Keep record of the material received, issued and balance.

To receive the finished goods from the production department, to verify

them and store them properly till they are distributed.



To maintain the material handling equipment and other incidental items like

pallets, containers, etc.

Environment Management, Occupational Health and Safety Systems

NTPC has actively gone for adoption of best international practices on

environment, occupational health and safety areas. The organization has pursued

the Environmental Management System (EMS) ISO 14001 and the Occupational

Health and Safety Assessment System OHSAS 18001 at its different

establishments. As a result of pursuing these practices, all NTPC power stations

have been certified for ISO 14001 & OHSAS 18001 by reputed national and

international Certifying Agencies.

7S MODEL

The 7-S-Model is better known as Mc Kinsey 7-S. this is because the two persons

who developed their model, Tom Peters and Robert Watermen, have been

consultants at McKinsey & Co at that time. They published their 7-S-Model in

their critical “Structure is Not Organization” (1980) and their books. “The Art of

Japanese Management (1981) and In Search of Excellence (1981)”. The model

starts on the premise that an organization is not just Structure, but consists of seven

elements.

Those seven are distinguished in so called hard S’s and soft S’s. The hard elements

are feasible and easy to identify. They can be found in strategy statements,

corporate plans, organizational charts and other documentations.

The four soft S’s however, are hardly feasible. They are difficult to describe since

capabilities, values and elements of corporate culture are continuously developing

and changing. They are highly determined by the people at work in the



organization. They are highly determined by the people at work in the

organization. Therefore it is much more difficult to plan or to influence

characteristics of the soft element. Although the soft factors below the surface,

they can have great impact of the hard and structure, strategies and systems of the

organization.

Style

All organization has their own distinct culture and management style. It includes

the dominant values, beliefs and norms which develop over time and become

relatively enduring features of the organizational life. It also entails the way

managers interact with the employees and the way they spend their time. Culture

style of the organization shows how key managers behave in achieving the

organization’s goals. The style of the organization is through leadership in which

leaders can establish unity of purpose and direction of the organization. They

create and maintain the internal environment in which people are fully involved in

achieving the organization goals.

In NTPC there is a Democratic style of leadership with centralization of authority

and responsibility to the divisions. The employees have been empowered to do

their work independently without pressures from their higher authority. They have

the ability to achieve their goals. The participation of workers in management is

considered vital in NTPC.

Staff

Organizations are made up of humans and it’s the people who make the real

difference to the success of the organization in the increasingly knowledge-based

society. The importance of human resources has thus got the central position in the



strategy of the organization, away from the traditional model of capital and land.

Staff deals with the human resource management processes used to develop

managers, socialization process, ways of introducing young recruits to the

company, ways of helping to manage the careers of employees.

Staff means that the company has hired people, trained them well and assigned

them to the right job for which they are best suited according to their

qualifications, skills, knowledge and experience. An enterprise may have a

comprehensive business play, a sound organization structure, but it cannot

accomplish results per plan without effective staff in the company. At present in

NTPC there are no recruitments as they are overstaffed. They only training and

development for the existing employees. NTPC maintained cordial and

harmonious relationship with the employees.

Skills

The capabilities and competencies that exist within the company. What it does

best. To improve the efficiency of the company. NTPC is giving full training to our

workers for better utilization of skills.

Shared Value

All members of the organization share some common fundamental ideas or guiding

concepts around which the business is built. This may be to make money or to

achieve excellence in a particular field. These values and common goals keep the

employees working towards a common destination as a coherent team and are

important to keep the team spirit alive. Shared values means that the companies

share the same guiding value. Values are things that would strive and even if they



where demonstrably not profitable act as an organization conscience providing

guidance in times of crisis.

At NTPC each individual department have specific goals and objectives within the

board framework of its Vision and Mission. They act as the framework for

achievement of organization objectives and goals efficiently and effectively. They

also bound to follow policies and procedures governed by the Government

Strategy

Strategy is the plan of action an organization prepares in response to, or

anticipation of, changes in its external environment. Strategy is differentiated by

tactics or operational actions by its nature of being premeditated, well though

through and often practically rehearsed.

Structure

Business needs to be organized in a specific from of shape that is generally

referred to as organizational structure. Organization is structured in a variety of

ways, dependent on their objectives and culture. The structure of the company

often dictates the way it operates and performs.

System

Every organization has some systems or internal processes to support and

implement the strategy and run day-to-day affairs. For example, a company may

follow a particular process for recruitment. These processes are normally strictly

followed and are designed to achieve maximum effectiveness.



CHAPTER- 4

SWOT ANALYSIS

Strenghts:-

Largest market share in domestic power generation and a broad customer

portfolio across the country.

Excellent track record of performance in project implementation and plant

operation.

Diversified thermal generation portfolio multiple sizes and fuel types.

Highly skilled and experienced human resources, exposed to state of the art

technologies in project execution and power generation.

High brand equity among shareholders.

Strong balance sheet ability to raise low cost debt.

Engineering skills in project configuration and package design.

Turnaround ability for old plants-demonstrated in the takeover plants of

Talcher, Tanda & Unchahar.

Thrust on reducing social costs of capacity growth strong execution of

Resettlement and rehabilitation plans.

High credit rating that is indicative of the confidence of lenders.



Weakness:-

Role ambiguity and dilution within different lends of the organization.

Low risk-diversification of business portfolio consists primarily of

generation assets.

Poor financial health of customers.

Functional orientation hampering cross functional perspective in decision

making.

Long and multi layered procurement process leading to long lead times and

process delay.

Fragmented IT architecture.

Gaps in HR systems such as performance management, rewards and

incentives and career development.

Inadequate deployment of a strong knowledge management system that

could assist in improving efficiency and effectiveness in all aspects of the

business.



Opportunities:-

Expand generation capacities by putting up thermal and hydro capacities;

maintain 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.

Expand services for R&M and O&M activities in the domestic as well as

international markets.

Backward integrate into fuel management to exercise greater control and

understanding of supply economics.

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.

Forward integrate into the distribution business in India.



Threats:-

Limited experience of operating in a truly liberalized environment with

competition.

Limited experience of operating in an independently regulated system.

Redirecting power may be constrained by inter-regional connectivity.

Downward regulatory and competitive pressure on tariffs.

Stringent norms for approval of increase in capital costs for projects in event

of time overrun.

Stringent environmental norms in the future may add to the cost of

generation.

Absence of an independent regular for coal industry and the delay in private

investments.



CHAPTER- 5

SUMMARY OF FINDINGS, CONCLUSIONS & SUGGESTIONS

Findings

Following are the findings arrived at from the study carried out at NATIONAL

THERMAL POWER CORPORATION LIMITED, Korba.

I observed from the study that the co-ordination and co-operation between

the workers and the top management is good.

The used zero based technique to prepared a new budgets which is very

beneficial for any company.

The labours who worked under contractors, NTPC will pay payment through

banks.

It was seen during the study that the company has provide safety

instruments for employees for their better performance.

NTPC, Korba are face shortage problem of coal which is decrease the

efficiency level.

Management has provided all welfare facilities required to the employees.

Meetings of AGM & DGM are held daily basis in every department which

are very much helpful to improve the efficiency.

I found that the company has their own transportation facility for the

employees who come from the city and remote areas.



It was heard that the company possess least percentage of accident rates

compare to similar organization.

It was observed that the company has taken up lot of initiates for

protecting the environment.

It seen during my stay in company that the company has best art of

technology.

Conclusions

Although from the above data and analysis it is concluded that the condition of

the villages is note that good. There are still problems related to the water

sources, ash pollution, drainage and sanitation but what I am analyzed during

my training period that NTPC has installed many new technologies in its plant

for reducing the pollution and specially the ash pollution. NTPC has adopted

measures to effectively utilize the ash by making ash brick sand also selling

them to other nearby organizations. It do a lot of plantation every year, recently

it had planted 3, 00,000 plants and is planning to plant around 10, 00,000

plants in coming years.

NTPC are also doing well to developing the village, It has provided many

syntax, constructed wells, installed hand pumps, arranged adult education

centers, skill up gradation centre for the adults so that they can earn their own

livelihood. It has also provided jobs to many villagers on contract basis.

Recently NTPC has promised to give Rs 10, 00, 00,000 for an Engineering

College in Korba and for IIT which is going to start in Raipur. For which it had

already given the first installment of Rs 4, 00, 00,000.



Suggestions

If they have their own mines it is very easy to get raw material.

They should keep on improve good relationship with the customers to get

more orders.

Provide good commission to the traders for further increase of sales.

Conduct more training and development programs in the organization for

Employers.

They should try to conduct safety awareness programs are regularly

arranged.

Provide awareness about the facilities provided in township.

Teamwork is essential for the development of any organization.

NTPC should try to capture all regions of India.

Develop the modern equipments which are in market.

IT creates energized work forces that evolve with the organization.


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