Emerging opportunities in power sector by Mr V.M. Kaul at HRRT organised by ISPE & UPES Dehradun

Emerging Opportunities in Power Sector-

Challenges of TalentV.M.Kaul, Director(Personnel),

POWERGRID

Challenges of Talent

Power Sector – a snapshot

• Comprises of Generation, Transmission & Distribution

• Present installed capacity is 1,55,000MW

• Persistent energy shortage and peak hour power shortage

• Central sector is playing a dominant role in Generation and Transmission

• Electricity Act-2003 envisages competition in the sector, Open access, Power Trading and private investments

• Electricity Act-2003 envisages competition in the sector, Open access, Power Trading and private investments

• Heavy investment requirement in all the three sectors

• Shortage of skilled manpower due to surging growth

Per capita annual consumption of Electricity(2007 data)– India: 470 units– Brazil: 2110 units– China: 2200 units– USA: 13000 units

168

250

522

372

GW

Growth:

10.8% per

Growth:

9.8% per

annum

Growth:

9.8% per

annum

Growth:

8% per

annum

Power Sector Growth- Demand of Power (GW)

109168

2007 2012 2017 2022 2027

Year

Assuming GDP Growth Rate 9%

10.8% per

annum

155233

337

685

488

GW

Installed Capacity Requirement (GW)

Growth:

10% per

Growth:

9% per

annum

Growth:

9% per

annum

Growth:

8% per

annum

155

2007 2012 2017 2022 2027

Year

Assuming GDP Growth Rate 9%

10% per

annum

Growth of interGrowth of inter--regional power transfer capacityregional power transfer capacity

By 2025Inter-regional Capacity- 150,000 MW

65000

100000

150000

85000

105000

125000

145000

165000

MW

18000

40000

5000

25000

45000

65000

2007 2012 2017 2022 2027

MW

Year

MALANPUR

GORAKHPUR

VINDHYACHALZERDA

AGRA

KANKROLI

RAPP

KOTA

FATEHPUR

AURAIYA

NR

B'SHARIFF

MUZAFFARPUR

NAGAR

MALDA

ER

BIRPARA

GAYAPURI

MW500

SASARAM

DEHRI

SAHU

BALIA

PATNA

BARH

NABI

SALAKATIBONGAIGAON

NERSILIGURI

NATIONAL GRID BY 2012

INTER-REGIONAL CAP. >37000 MW

CHANDRAPUR

U.SILERU

NAGJHARI

SR

KOLHAPUR

PONDA MW1000

NARENDRABELGAUM

MW1000

GAZUWAKA

MW1000

WR POOLING

VINDHYACHAL

RAIPUR

GWALIOR

WR

UJJAIN

NAGDAZERDA

BUDHIPADAR

ER

BALIMELA

SIPAT

KORBA

RANCHIROURKELA

TALCHER

DEHRI

Fund Requirement for 12th Plan

Area Fund Requirement

(Rs. Crs.)

Generation 5,00,000

Transmission 2,50,000Transmission 2,50,000

Distribution 4,00,000

Total 11,50,000

SN Category Total

1 Engineers 92,000

2 Supervisors 1,72,000

3 Skilled workers 1,38,000

4 Semi-skilled workers 1,49,000

5 Unskilled workers 1,72,000

Additional Manpower Requirement

During 11th & 12th Plan (By 31.3.2017)

5 Unskilled workers 1,72,000

6 Non-Tech 2,77,000

Total 10,00,000

Norms : 7.4 employees per MW for O&M & const.

in Generation, Transmission & Distribution

Manpower available on 31.03.2007 : 9.5 Lakhs

Source : CBIP

Factors Attributing Human Resource Crunch In the Power Sector

• Continuous surge in demand of power, ambitious growth targets for capacity addition & network expansion

• Ultra Mega Power Projects along with associated transmission network coming up - skilled manpower demand surging updemand surging up

• Expansion of power market

- With entry of private players

- Challenges created by fast changing technologies

- Diversification of companies in other areas of power sector

• Higher skill set required due to advance technical processes and automation

Factors Attributing Human Resource Crunch In the Power Sector

• Quality of education & curriculum at most of Industrial

Training Institutes and polytechnics are not upto the mark

for bridging the skill shortage

• Private players attract talent from central & state sector

• Non-availability of professionally trained manpower at

Contractors end

• Talent in HV/EHV/UHV transmission is mainly available in

POWERGRID

Factors Attributing Human Resource Crunch In the Power Sector

• Stagnant supply pool for hiring senior & middle level

positions

• Difficult to pick people from other industries, given the

unique characteristic of the sector

• Work locations in remote terrains/locations not attracting

good professionals

• The treasure hunt in Talent war fare

– Top business priority

– Shortage of technical and managerial talent

– Organizations with more talented people on their payroll averaged a 22% annual return to the shareholders versus 13 % for those without(Birchfield,2003).

– Talent has become the key differentiator

Talent War

– According to recent study by Deloitte, in India, paradigm shift is taking place from ‘scarcity of jobs’ to ‘scarcity of talent’

• In power sector “Talent Raiding” / “Talent poaching”

taking place because of short supply of power specific

talent in the talent market.

• To recruit quality talent from the available pool

_ All India open exam

– Campus recruitment

– established an industry-institute collaboration, “Campus Connect”

– Region/Territory-wise talent hunt through employment exchanges, educational institutes and walk-in interviews

Attracting, Developing and Retaining Talent- POWERGRID way

• Competency enhancement of employees and creation of employees value through – Induction training programmes

– Functional role based development (Basic refresher and advance level training)

– Behavioural development for all employees

– Management training programmes

– Leadership development

– Strategic management Training

• Collaboration with reputed academic institutions andprofessional bodies like IIT, IIM, MDI, AIMA, ASCI, ESCIetc.for continuous upgradation of our knowledge pool

• Training Strategy aligned to business strategy in order toboost our endeavours in creating & nurturing world classlearning organisation

Attracting, Developing and Retaining Talent- POWERGRID way

learning organisation

• Stakeholders development- Training of employees ofcontractors, vendors, State Electricity Boards;Recruitment of stakeholders employees

• Training Budget can go upto 5 % of salary budget- as perNational Training Policy for Power Sector

No. of Personnel Trained(2008-09)

Sl Category No. of personnel

trained

A POWERGRID employees

Executives 2757

Supervisors 1155

Workmen 1306

Human Resource Development in POWERGRID

Workmen 1306

Sub-Total 5218

B Transmission Sector utilities/

Contractor’s/ Vendor’s personnel

704

Total 5922

C Executive Trainees 137

Grand Total 6059

Leaping ahead…..

2282 2234

3786

5922

3000

4000

5000

6000P

ers

on

nal

Tra

ined

Year-wise Growth of Personnel Trained

Human Resource Development in POWERGRID

1610

2282 2234

0

1000

2000

3000

Pers

on

nal

Tra

ined

2004-05 2005-06 2006-07 2007-08 2008-09

Financial Year

• Public Private Partnership for upgradation of existingeducational institutions churning out skilled manpower forPower sector, establishment of new institutions

• Revamp skill/vocational training Institutions (ITIs, polytechnics and vocational training in school) and grant them functional and governance autonomy

Strategies to meet challenges of Talent

• Introduction of specialised courses on Transmission/Sub-transmission in various power training institutes with industry partnership

• Greater need to allocate funds for training & emphasis on business aligned training practices

• Creation of strategic fit between employee value, compensation (competitive compensation and external alignment) and career growth

• Long term education as a strategy for developing talent

• Leveraging Technology/advanced systems to optimise manpowere.g. Remote operated sub stations, maintenance hubs

• Assess skill deficits sub-sector wise and region wise and meet the gaps by planned action in a finite time frame

• Establish a ‘Credible accreditation system’ and a ‘guidance

Strategies and Action Plan

• Establish a ‘Credible accreditation system’ and a ‘guidanceframework’ for all accrediting agencies

• Enable employment exchanges to function as career counseling centres.

• Establish a ‘National Skill Inventory’’ on a national Web portal—for exchange of information between employers and employment seekers.

POWERGRID’s Growth Plan

Business development and

consultancy

Effective operation and

maintenance of

burgeoning fixed asset

base

Environment

& Social

Management

Exponential growth in

Capital expenditure for

Construction projects

Organizational

Culture & Values

Project

Business Process

Reengineering

Integrated

Technology

Management, R&D

Corporate

Governance

Strategic Human Resource Development in POWERGRID

Critical Skills Gap Analysis and Skill enhancement

Restructuring/Strengthening Induction Training of

Executive Trainees

Strengthening of HRD Team with resource persons

from technical discipline

Restructuring and augmentation of Employee

Development Centers (EDCs) in regions

Establishment of state-of-art Learning Centre at the

Corporate level

Managing Organizational Knowledge

Aligning Employee Attitude and Values

Nurturing future leaders, thinking visionaries,

transformational leaders and experts

Knowledge Dissemination through e-learning

Hands-on & Simulator training

Global Outreach (Exposure to International

practices)

Stakeholders Training & Development

Integrated Human

Resource

Development

Project

ManagementStrategic HRM