Project Report

SUMMER TRAINING REPORT

ON

EMPLOYEE WELFARE SCHEMES AT

NATIONAL FERTILIZERS LIMITED,

BATHINDA.

SUPERVISED BY: - SUBMITTED BY:-

Mr. D.K. BORA AMARJIT KAUR

HRD MANAGER MBA- 3RD SEM.

ROLL NO: - RQ1002A11

LOVELY PROFESSIONAL UNIVERSITY

JALANDHAR

PREFACE

For the completion of MBA it has been mandatory to obtain an industrial training in human resource department.

This training session really helped me in gathering practical knowledge of human resources.

I have prepared this project on the topic “EMPLOYEE WELFARE SCHEMES” in which i have described about the human resource department, welfare schemes in NFL.

The report has been prepared during summer training which life’s greatest treasure is as it is full of experience, observation and knowledge.

The training held was very gainful as it took us close to real life. This period also provided a chance to give the theoretical knowledge a practical shape and learn from practical results.

The report is a result of 6 week training that i have taken at National Fertilizers Limited, Bathinda. It has been very educative and fruitful experience for me, as it has given me an insight into some practical experience without which classroom knowledge can be regarded as incomplete.

I hope this report serve as the practical guide for the Employees Welfare Schemes of the company.

ACKNOWLEDGEMENT

I am highly indebted to the management of National Fertilizers Limited, Bathinda to take me as a summer intern in their organisation. I would like to thank specially Mr. D.K. Bora (Manager HRD) for providing me an opportunity to undertake summer training at NFL, Bathinda.

I wish to express my gratitude towards Mr. A.K. Narang (Manager P&A) and Hemant Gupta (Assistant Manager Administration) for permitting me to work under his guidance, without those guidance and co-operation, this project would not have been a success. I have no words to express my gratitude to the profound interest taken by him at every stage of the project.

I also express my sincere thanks to my parents and friends who always have been source of inspiration to me and supported me morally and financially in every activity during the training.

Above all, i would like to thank almighty for showering his blessing on me in completing the project.

TABLE OF CONTENTS

CHAPTER TOPIC PAGE NO.1 INTRODUCTION TO

COMPANY2 INTRODUCTION TO

PROJECT3 OBJECTIVE AND

SCOPE OF STUDY4 RESEARCH

METHODOLOGY5 DATA ANALYSIS

AND INTERPRETATION

CHAPTER- 1

INTRODUCTION OF COMPANY

NATIONAL FERTILIZERS LIMITED,

BATHINDA

NFL is a Schedule ‘A’ and Mini

Ratna company which was

incorporated on 23rd August 1974

with two manufacturing Units at

Bathinda and Panipat. The

commercial production from these

plants commenced w.e.f 1.10.1979

and 1.9.1979 respectively.

Subsequently, on the reorganization

of Fertilizer group of Companies in

1978, the Nangal Unit of Fertilizer

Corporation of India came under the

NFL fold. The Company expanded its

installed capacity in 1984 by

installing and commissioning of its

Vijaipur gas based Plant in Madhya

Pradesh. Expansion of Vijaipur plant

was taken up in the year 1993 for

doubling its annual production

capacity. The commercial production

from this plant commenced with

effect from 31.3.1997.

       NFL Corporate office: Noida

The Vijaipur Plant was a landmark achievement in project management in

India. The plant was completed well within time and approved project cost. In

recognition of this achievement, the project was awarded the First Prize in

Excellence in Project Management by Govt. of India. Subsequently the

Vijaipur plant doubled its capacity to 14.52 lakh MTs by commissioning

Vijaipur Expansion Unit i.e. Vijaipur-II in 1997. The plant annual capacities

have now been re-rated w.e.f. 1.4.2000 from 7.26 lakh MT of Urea to 8.64

lakh MT for Vijaipur-I & Vijaipur-II Plants each. Three of the Units are

strategically located in the high consumption areas of Punjab and Haryana.

The Company has an installed capacity of 32.31 lakh MTs of Urea and has

recorded an ever-best annual sales turnover of Rs.3866 crores and operating

profit of Rs 212.84 crores during the year 2006-07. The Company’s strength

lies in its sizeable presence, professional marketing and strong distribution

network nationwide.

NFL has embarked on the revamp of Vijaipur I and II plants for augmenting

their production capacities by 16% and 23% respectively. NFL, a profitable

public sector undertaking operates under the administrative control of

Department of Fertilizers in the Ministry of Chemicals &Fertilizers. Kisan Urea

NFL’s popular brand is sold over a large marketing territory spanning the length

and breadth of the country. The Company also manufactures and markets Bio

fertilizers and a wide range of industrial products like Methanol, Nitric Acid,

Sulphur, Liquid Oxygen, and Liquid Nitrogen etc. The Company has developed

Neem coated Urea which on demonstration has improved the crop yield by 4-

5%. The Company is focusing its thrust to widen the marketing operations of

Neem coated Urea. The company is also undertaking R&D for the development

and production of other value added products like Zincated & Sulphur Coated

Urea. NFL over the years has developed a team of dedicated professionals in the

areas of production, maintenance, project management, safety and environment

control. These professionals are sought after in the Industry both in India &

abroad for their Specialized Services.

NFL is known in the industry for its work culture, value added human

resources, Quality Management, Safety, Environment, Concern for Ecology and

its commitment to social up liftment. All NFL plants are certified under ISO-

9001 (2000) for conforming to International Quality Standards and International

Environmental Standard viz. ISO-14001. NFL is equally concerned about the

safety of its plants and people and accordingly implemented internationally

accredited OHSAS-18001 safety standard for its three plants. With the

certification of Corporate Office/Marketing operations under ISO-9001: 2000,

NFL has become the first Fertilizer Company in the country to have its total

business covered under ISO-9001 Certification. Urea is an essential commodity

under the Essential Commodities Act, 1955. The Department of Fertilizers

(DoF) plans and monitors production, import and distribution of fertilizers and

management of subsidy for indigenous and imported fertilizers in the country.

In this regard, DoF has recently set up an on line web based Fertilizers

Monitoring System. The System of marketing of Urea has undergone a change

w.e.f. 1.4.2003 when company has been allowed to market 25% of its produce

outside ECA during Kharif 2003. This percentage of sales outside ECA was

raised to 50% in Rabi 2003-04, which continue to prevail for 2006-07. NFL

enters into a Memorandum of Understanding (MoU) with the Government for

each year under which the Government undertakes to assist NFL with regard to

availability of inputs, obtaining ECA allocations commensurate with the

availability of fertilizers from NFL plants etc. NFL on its part undertakes to

adhere to its production and movement plans, achieve its ECA allocation and

provide regular feedback to the Administrative department.

COMPANY PROFILE: NATIONAL FERTILIZER LIMITED

A PROFILE INTRODUCTION

The rise in fertilizer consumption in India has been quite Phenomenal during the

past two & half decades. To meet the rise in consumption of fertilizers, creation

of additional Capacity was also planned. The change in worldwide energy

Concept and the rise in oil prices in 1973 forced India to broad base it

nitrogenous production by adopting new and sophisticated technology, which

could use cheaper sources of raw materials hitherto not tried in the Country. It is

in the context that National Fertilizer Limited (NFL) (a public sector

Undertaking) was conceived to plan & implement two modern large Capacity

single stream nitrogenous fertilizer plants in the predominant fertilizer

consuming areas of northern states of India to cater to ever increasing demand

for fertilizer in the region. National fertilizer limited was incorporated on

23rdaugust, 1974 for setting up two nitrogenous fertilizer plants, each with a

capacity of 5.11 lakh tonnes of urea per annum at Bathinda (Punjab) & Panipat

(Haryana) based fuel oil/LSHS as main raw material. On recognition of

Fertilizer Corporation of India (FCI) –NFL group of Companies, Naya Nangal

unit of FCI was taken over by NFL on 1st April 1978. Later on, a gas based

fertilizer plant was entrusted to NFL. It has come up at Vijaipur in Guna district

of Madhya Pradesh, which started production in July 1988, with an installed

capacity of 7.26 lakh tonnes of urea per annum. The Company’s Marketing

Network comprises of Central Marketing Office at NOIDA, three Zonal Offices

at Bhopal, Lucknow & Chandigarh, 16 State Offices and about 40 Area Offices

spread across the country. Agriculture Extension and Social Welfare activities

are undertaken in the adopted villages. It has its registered office at scope

complex, core-III, 7-institutional areas, Lodhi Road, New Delhi -110003 and

corporate office at A-II, sector –24, and district Gautam Budh Nagar, NOIDA

(UP) 201301. A brief about the company & its operating unit is given as under.

THE COMPANY

Registered on 23.8.1974

Authorized capital Rs. 500.00 crores

Paid up capital Rs. 490.58 crores

Capacity 13.70 lakh MT nitrogen

The capacity has increased from 13.70 lakh MT nitrogen to 14.86 lakh MT

nitrogen consequent upon commissioning of Nangal unit revamp scheme II

w.e.f 1.4.2000. The total capacity of Urea is 32, 30,700 MT which in term of

Nitrogen comes to 14.86 lakh MT.

NANGAL UNIT INSTALLED CAPACITY

Urea 4, 78,500 MT

Methanol 22,110 MT

Project cost urea (including revamp) Rs .283.11 Cr

Foreign exchange component (including revamp) Rs.118.49 Cr

Commissioned (urea revamp) 01.02.2001

PANIPAT UNIT INSTALLED CAPACITY

Urea 5, 11,500 MT

Commissioned 01.09.1979

Project cost Rs 223.50 Cr

Foreign exchange component Rs 55.79 Cr

BATHINDA UNIT INSTALLED CAPACITY

Urea 5, 11,500 MT

Commissioned 01.10.1979

Project cost Rs 239.30Cr

Foreign exchange component Rs 67.87

VIJAIPUR UNIT -1 INSTALLED CAPACITY

Urea 8, 64,600 MT

Commissioned 01.10.1988

Project cost Rs 533 Cr

Foreign exchange component Rs 185.20

VIJAIPUR UNIT -11 INSTALLED CAPACITY

Urea 8, 64,600 MT

Commissioned 01.3.1997

Project cost Rs 1071 Cr

Foreign exchange component Rs 431Cr

The installed capacities of Vijaipur unit –I & II has been reassessed by Fertilizer

Industry Coordination Committee (FICC) w.e.f 1.4.2000 and the capacity of

both the plants has increased from 7, 26,000 MT to 8, 64,600 MT from interim

reassessed capacity of 8, 53, 400 MT.

PRODUCTS OF NFL

National Fertilizer Limited is the producer of Nitrogenous Fertilizer and the

product of fertilizer is known as “Kisan Khad” and “Kisan urea”. Kisan Khad

which is calcium ammonium nitrate (CAN) contains 25% nutrient “N” while

“Kisan Urea” contains 46% nutrient “N”. Kisan Khad is ideally suited for all

types of crops. The marketing territory for Kisan Khad and Kisan Urea is the

states of Punjab, Haryana Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra,

Orissa, Andhra Pradesh, J & K, Himachal Pradesh and union territory of Delhi

and Chandigarh. NFL is also engaged in undertaking various marketing

development activities under the company‘s agriculture services and farmer

education activities for publicity and sales promotion.

MAIN PRODUCTS

KISAN KHAD (CAN)

KISAN UREA

KISAN BIO-FERTILIZER

INDUSTRIAL PRODUCTS

Liquid nitrogen (N2)

Liquid oxygen (O2)

Argon gas (Ar)

Carbon slurry (C)

Sodium nitrate (NaNO3)

Methanol (CH3OH)

Carbon dioxide (CO2)

Sulphur (S)

CORPORATE OBJECTIVES OF NFL

In terms of Memorandum of Association, NFL was set up to manufacture and

market chemical fertilizer, other chemicals and by- products as well as to

provide the allied services in order to achieve and maintain a leading position in

the production and marketing of fertilizer. The company has achieved excellent

rating and the following micro objectives have been identified.

1. PRODUCTIVITY

To achieve the best possible levels of production and economy in use of inputs

while ensuring safety and proper maintenance of plant and machinery and

pollution control, more specifically (a) to strive to raise capacity utilization &

(b) to improve on consumption norms consistently.

2. RESEARCH AND DEVELOPMENT

To carry out R&D activities for-increasing plant availability saving in the use of

energy in different form better recovery of saleable products process

improvement/development and increasing utilization efficiency on a sustainable

basis in the application of chemical fertilizer in combination with other

agricultural inputs.

3. PROFITABILITY

To manage the assets, men and material in most effective and efficient manner

ensuring reasonable return on investment commensurate with principles laid

down by the government from time to time, and Generation of increasing

internal resources.

4 .MARKETING AND CONSUMER SERVICES

To provide to the farmers high quality in right time and in adequate quantities

and with a package of modern agricultural practices, at the same time,

maintaining reputation for fair business practices to further intensify

promotional efforts for increased use of fertilizer and to maximize distribution

of company‘s products within the areas covered by the company, consistent

with govt. policy.

5. ORGANIZATION

To develop & maintain an organizational environment for encouraging

individual and group initiative and productivity and also sustain fair deal and

human approach.

6. GROWTH

To achieve reasonable and consistent growth in the business of manufacture and

marketing of fertilizer and chemicals compatible with needs of the market. To

work out diversification/expansion schemes to increase profitability of the

company and meet the changing needs of the Customers.

7. OBLIGATION TO SOCIETY

To conduct the business of NFL in accordance with ethical and legal

standards and

To undertake socio- economic activities, consistent with government

policies, in order to generate good environment, in which the company

operates.

To promote development of ancillary industries.

Under social welfare programmers, NFL had earlier adopted ten villages

in the Baster district of MP, in these villages major thrust was given on

social hygiene, adult education and civic amenities to bring about

transformation in the life – styles of tribal farming community.

(8) INFORMATION TECHNOLOGY

NL is fast moving towards paperless office. For achieving this objective, local

area network (LAN) has been completed at all units and offices of the company.

All the units and marketing offices have been connected through wide area

network (WAN) WAN comprises of leased time connectivity from NOIDA to

all units and zonal offices. On line integrated web-based computerizations is in

advance stage implementation. The computerizations cover Materials

Management, Finance & Accounts, Human Resource and Management

Information System. The company has its internet website

www.nationalfertilizers.com and internet website for providing information to

all concerned.

BATHINDA UNIT OF NFL

Bathinda unit of national fertilizers Ltd is situated in Bathinda district of

Punjab. The unit is situated 8 kms away from Bathinda city on “Sibian road“.

Bathinda unit as one of the sites for fuel oil based plant was basically chosen

from consumption point of view. The following factors were considered in view

by govt. of India while selecting the site at Bathinda availability of land steady

power supply in the vicinity of project availability of good quality water from

the Sirhind Canal Bathinda town being conjunction of Punjab, Haryana &

Rajasthan and all states having potential for fertilizer Consumption.

IMPLEMENTATION OF PROJECT

To take up challenging job for completion of this project within a period Of 36

months from the zero date i.e. from 26.09.1974, the contracts were Signed with

“Toyo Engineering Corporation “(TEC) & Engineers India Limited (EIL), well

known Japanese & Indian consultancy companies Respectively.

Introduction about the HR department of NFL

In NFL, Bathinda there are 6 sections like:

1) Transport2) Industrial relation and welfare3) Legal4) Medical and administration5) Public Relations6) Estate7) Establishment8) Hindi

1) Transport :-Mr. A.K. Rana is in charge of this section. The section caters to the transport needs of the company. The company has 20 vehicles like 3 school buses, 1 matador, 2 ambulances, 2 ambassadors, 1 Maruti, Tata 407, 3 fire tenders, 2 jeeps, 4 motorcycles, 1 auto crane, 1 tractor HMT. The company has taken some vehicles on contract basis. The matador is used to carry school children and to meet other local transportation requirements. In jeeps, one jeep is provided to deputy commissioner CISF and the other is provided to Assistant commissioner Fire for performance of their official duties. The ambulances have been used for carrying NFL patients from township to other local hospitals in the city. NFL has 3 Fire tenders which are used in case of fire in the plant as well as surrounding areas. Fire tenders are also provided to District Administration at their emergency call. The company has 4 motorcycles which have provided to inspect the CISF car performing their official duties. In addition to above NFL has hired motor vehicle on round the clock basis to meet the local transportation requirements and also provided on chargeable basis to NFL

employees for going to railway station etc. For the purposes of carrying school children NFL has also hired own buses from the contractor and an ambulance to carry patients from Bathinda to outstation hospitals at Ludhiana and Delhi.

2) Industrial Relations and Welfare :-Mr. Vinod Mittal is looking after this section. The section comprises of various acts like ESIC Act, Factory Act 1948, Workmen’s Compensation Act, Trade Union Act, Industrial Disputes Act 1947 etc. the parties involved are:- National Fertilizers Limited(The Management) National Fertilizers Employees Union(The Workers) Government Authorities- The Labour Inspector, the Assistant Labour

Commissioner and the Labour Commissioner.

There is a Works Committee which is also known as Statutory Committee. In this the members are both from the workers and management side and have equal participation. Both the parties use their pressure or tactics to get their demands fulfilled like strikes, lockouts, gherao, agitation etc. the notice of at least 42 days is given before taking action. Postering is also one of the events of this program.

3) Legal :-Mr. Karamchand Sharma is charged with the responsibility of seeing this section. It is one of the most important sections of the company. Every company is faced with the problem of conflicts or other such type of problems for which there is a need of a proper legal department that deals with the cases of all functional areas like HR, Finance, Marketing etc. all the case go through the Court Appeal Channel: Lower Court, District Court, High Court and Supreme court. It basically handles two types of cases like Civil and Criminal.Civil cases relate to payments, compensation and wages.Criminal cases relate to punishment, death and injuries.There are internal opinions, external cases and panel of advocates. First when any case arises, it is first sent to the company’s legal advisor for giving the judgement and if it is not satisfied then it is sent to the outside bodies or it is moved into the court.

The company has its own panel of advocates or it can also go in for hiring the advocates from outside depending upon the stake in the company. Stake is the only determining factor for hiring the advocates from outside. In Bathinda unit there is only one legal officer that handles the cases of NFL.

4) Medical and Administration :-Mr. R.K. Goel is in charge of this section. This section follows NFL Employees Medical Attendance and Treatment Rule. It is applicable to NFL employees, Trainees and their dependent family members.The section provides two types of treatments namely OPD treatment and indoor treatment. There are also various social security schemes like basic pay and DA, death benefit in which all employees contribute 25% of their incomes.The various security schemes of NFL are:-Casual leavesLeave with wagesMedical leavesMaternity leave for women

Administration section is also looked after by Mr. R.K. Goel. Under this section there are four sub sections like general administration, dispatch, guest house and sanitation.General administration consists of infrastructure like chair, table, and telephone etc needs. The employees have been provided with the facility of fax, Photostat, stamps, furniture, carpets, courier service etc along like motivating tools like suitcases, diaries.Dispatch section deals with the letters, mails, NIT (Notice Inviting Tender) that is needed for communication purposes.Sanitation deals with cleanliness of washrooms and rooms etc.

5) Public Relations :-The in charge of this section is Mr. Vikram Rawat. It is one of the vital functions of any business organisation. It is a link between the company and the public. This department is helpful in creating an image in the minds of the public. Company creates relation with other departments. If any meeting is held by a company then this department should be present

there. Every year Diwali Mela is held by PR department and the profit which is earned by the department is utilized for the welfare schemes. Momentos are provided to VIP visitors from PR section. The various functions of this department are:-Plant visit-If any organisation visits the company for industrial visit then it is the responsibility of PR department to welcome the organisation.Liasoning with Media-It deals with print media, mass media, newspaper etc. every news that is given in the newspaper is a work of Public relations department.Advertisements-It deals with tendering the plant. An ad can be given in the newspaper either with the help of ad agency or by making direct contact with the media. If add is given through agency then 15% discount is given to agency but if it is made through direct contact then no discount is provided.Photography-The company has one quarterly magazine VANI in which every information is given related to every department of the organisation. All the units forward their information to the corporate office of the NFL in Noida and they see to it and pass the same to be printed in the magazine. It contains all activities like VIP visits; tree plantation etc. The magazine is common in all the units and has information of all units of NFL.

Diaries and calendar-All the employees of NFL are provided with 1 diary and 1 calendar which are also centralized in corporate office. All the printing of these diaries and calendar is done by the corporate office of NFL based in Noida.

6) Estate: -Mr. Kamaldev is looking after this section. The section is basically concerned with the accommodation of employees in township area. Company has approximately 672 acres of land and there are A, B, C, D type of quarters and 1 GM’s bungalow. The bungalow is given to unit’s

head. The quarters are allotted to employees according to their basis salary and seniority basis. The quarters are semi furnished but bungalows are fully furnished. The maintenance of quarters is seen by company itself. The company also provides the facility of guest houses which are allotted to those who are not given houses as per their entitlement.

Type Eligibility of quartersA Below Rs. 5710/-B Basic pay Rs. 5710/- in the scale of 5550-160-8910C Basic pay Rs.11050/- in the scale of 10750-300-16750D Basic pay Rs. 5710/- in the scale of 14500-350-18700

The company has also provided the facility of Retention of company’s accommodationResignation- 1 monthTransfer- 2 monthsRetire- 4 monthsDeath- 6 months

7) Establishment :-Mr. Hemant Gupta is looking after this section. This section deals with the service matters of the employees. The term service matter implies the entry of the employees in the organisation to the exit of the employees. It basically deals with the pay fixation and the appointment orders of the employees. The company has itself made its own rules and policies to deal with the various matters. All the personnel officers directly report to senior manager Mr. A.K. Narang.

8) Hindi: -The most important department of the company is Hindi section which is looked after by Mr. Yashpal Singh. It follows a rule named as Official Language Rule 1976. The committee of Parliament on Official Language contains 30 members in which 20 are from Lok Sabha and 10 from Rajya Sabha. It reviews the progress made in the use of Hindi language in central government offices and submit the report to the President of India. Though Hindi Divas is on 14th September but in NFL it is celebrated from 14th September to 30th September.

Language wise division of regions:Region A- It includes all the Hindi speaking areas like Bihar, Haryana, Himachal Pradesh, U.P., M.P. etcRegion B- It includes those regions which are both Hindi as well as Punjabi speaking like Punjab, Gujarat and Maharashtra.Region C- It includes the remaining regions like those of south.

The company has to follow the rules related to the usage of Hindi Language and that’s why they organise certain competitions in order to promote this language in the organisation.All the replies to the communications which are received in Hindi are made in Hindi only.Meetings are also held by the company in order to discuss on the various issues 2 times in a year.

IMPLEMENTATION OF THE PROJECT

Commissioning of water filtration plant 15-12-1976

Commissioning of DM plant 04-03-1977

Commissioning of instrument air system 13-03-1977

Commissioning of boiler 01-08-1977

Ammonia production 28-05-197

Urea production 02-06-1979

Commercial production started 01-10-1979

INSTALLED CAPACITY

Ammonia 900 MT/Day of ammonia

Ammonia (annual) 2, 97, 000 MT (330 stream days)

Urea 1550 MT /Day (330 stream days)

PROJECT COST

The approved project cost of Bathinda unit is Rs. 239.30 crores with a foreign

exchange component of Rs 67.87 crores. Foreign exchange was mainly met

from Japanese yen credit. However, for certain equipments, foreign exchanges

were met out of free foreign exchange and Dutch credit.

REQUIREMENTS OF RAW MATERIAL

Fuel oil/LSHS 860 MT Day

Coal 19000 MT

CORPORATE SOCIAL RESPONSIBLITY

As a part of corporate social responsibility, NFL undertakes projects in areas in the vicinity of its units for development of villages such as educational facilities for children studying in schools, health camps, rural sports and civic amenities to bring about transformation in the life style of the rural folk.

Company’s marketing division has adopted about 60 villages throughout its marketing territory where social welfare programmes like health awareness campaigns, animal health camps, assistance to village schools, providing safe drinking water, distribution of sewing machines to ST/SC women and poor widows, tricycles to handicapped etc are undertaken for the upliftment of villagers.

Employees of the company have been contributing generously to Prime Minister’s National Relief Fund to help the victims of natural calamities.

(As on 31.03.2011)

1. Shri Satish ChandraJoint SecretaryGovernment of India Department of FertilizersShastri Bhawan, New Delhi 110 001

Chairman & Managing Director

2. Ms. Neeru Abrol National Fertilizers Ltd. Corporate Office, Noida (U.P.)

Director (Finance)

3. Shri R.K .AggarwalNational Fertilizers Ltd. Corporate Office, Noida (U.P.)

Director (Technical)

4. Capt. Pavan Kumar KaulNational Fertilizers Ltd. Corporate Office, Noida (U.P.)

Director (Marketing)

Shri Tek Chand Company Secretary & Compliance Officer

National Fertilizers Limited A-11, Sector-24, Noida-201301

Distt. Gautam Budh Nagar (U.P.)

Investors Complaints E-mail ID : [email protected]

UNIT HEADS

UnitsContact Person Tel. No.

Nangal  Shri. B.G.Singh General Manager-I/c

 Tel   :01887-220543 (o)

:01887-220510 (R)

 Fax : 01887-220541

 Email : [email protected]

Bathinda   Shri. K.B. Verma  Executive Director

 Tel : 0164-2760200,2270220 (O)

: 0164-2270137 (R)

 Fax : 0164-2270463,2760270

 Email : [email protected]

Panipat   Shri. R. K. Bhatia  Executive Director  

 Tel : 0180-2652676,2652551 (O)

: 0180-2665508.2666404 (R)

 Fax : 0180-2652515,2652874

 Email : [email protected] 

Vijaipur   Shri S. M. H. Rizvi    Executive Director

 Tel : 07544-273101 (O)

: 07554-273102 (R)

 Fax : 07544-273109

 Email : [email protected]

PLANTS

NFL Operating Plants are at:

Vijaipur Plant

National Fertilizers Limited,Vijaipur,Distt. Guna,Madhya Pradesh-473111.Email: [email protected]    : 07544 - 273089, 273109Tel.    : 91- 7544 - 273101, 273090

Panipat Plant

National Fertilizers Limited,Gohana Road,Panipat,Haryana-132106.Email: [email protected]    : 0180- 2652515Tel.    : 0180- 2652481 to 485, & 0180- 2655570

Bathinda Plant

National Fertilizers Limited,Sibian Road,Bathinda,Punjab-151003.Email:  [email protected]    : 0164- 2270463; 0164- 2271270Tel.    : 0164- 2270220/2271200  

Nangal Expansion Plant

National Fertilizers Limited,Naya Nangal,Distt. Ropar, Punjab-140126.Email:   [email protected]    :  0187-220541Tel.  

FINANCIAL PERFORMANCE

NFL DEVELOPS NEEM-COATED UREA

National Fertilizers Limited (NFL), a premier manufacturer of Nitrogenous Fertilizers in the country, has made strides in developing a process for manufacture of Neem-Coated Urea on commercial scale.

NFL has made efforts to harness unique properties of Neem in regulating release of Nitrogen to crops when mixed and applied with urea into soil and making available to farmers a more efficient Nitrogenous fertilizer in the form of its Neem-coated urea primarily based upon research work conducted by Scientists of Indian Agricultural Research Institute, New Delhi.

‘Fertilizers’ being the costliest input required for commercial crops, it has always been endeavour of various agencies, including Government / Agriculture Universities and other Extension Agencies / manufacturers to develop various measures for enhancing nutrient use, efficiency of fertilizers and crop yields to sustain vital food chain and bring about economy in inputs costs. Since Urea is the richest source of Nitrogen Nutrient (46%N) among the prevalent fertilizers, it has drastically low Nitrogen use efficiency i.e. in the range of 20-40% when applied in low-land condition, particularly to Paddy crop as most of the Nitrogen is lost due to processes like leaching of urea with water, volatilization loss of ammonia and de-nitrification under reduced conditions. NFL, thus, has embarked upon development of Neem-Coated Urea

by using Neem oil water emulsion out of various combinations of mixing / coating of Neem material available.

After carrying out extensive laboratory as well as field studies, NFL has found out that Neem-coated urea produced with a thin film of Neem oil-water emulsion of specified concentration has resulted in enhanced shelf-life, reducing caking of material during storage and increased nitrogen availability to crops at the time of their growth and hence significantly contributing towards better crop yields. It has further been reported that the process developed by NFL in producing Neem-coated urea involves marginally higher costs.

(2)

In order to test the efficacy of Neem-coated urea so developed, under the field conditions, NFL has laid 50 Field Demonstrations on Paddy crop during Kharif-2002 season, covering extensive area spreading up to Panipat, Rohtak and Karnal in the State of Haryana, Meerut and Muzaffarnagar in U.P. and Bathinda in Punjab. At Meerut / Muzaffarnagar, Panipat and Bathinda, demonstrations were laid under the expert guidance and supervision of Extension Wing / KSKs of respective Agriculture Universities. The results obtained under the general parameters, including increase in yield, insect pest control and general crops stand have been very encouraging with an average savings to the farmers to the extent of around Rs.700/- per Acre by way of increased yields and reduction in expenses towards use of insecticides in Paddy crop. Besides above, NFL has distributed around 1,500 Tonnes of Neem-coated urea to farmers through its dealers’ network in Punjab & Haryana to adjudge general response of farmers as compared to normal urea being marketed by the Company. The general response obtained from the farmers indicated a healthy crop stand, reduction in insects / pest attacks and increase in yield, thus, reflecting a general appreciation for the new product developed by NFL.

During the current Rabi season, NFL proposes to lay more Field Demonstrations on the farmers fields for crops like Sugarcane, Potato & Wheat with reduced doses of Nitrogen to the extent of 80% through Neem-Coated Urea to compare with full recommended dose through normal urea and to establish benefits accrued thereupon in terms of increased productivity.

NFL further proposes to distribute increased quantity of Neem-coated urea to farmers through its extensive dealers’ network in Punjab, Haryana & U.P. to further assess benefits of Neem-coated urea over normal urea with a view to economize on input costs to the advantage of farmers.

NFL has a proven track record of over two decades in the areas of Project Management, Plant operation and Maintenance etc. NFL provides its expertise in the areas of specialised services.

                                             Maintenance of Rotary Equipments

Heavy Equipment Erection

NFL is well known for taking up assignments in India and abroad in the fields of:

Commissioning Activities of Plant/ Equipments Heavy Equipment Erection supervision Complete operation of Chemical plants on a continuous basis Overall maintenance of plants; specialised maintenance and repair

services/shutdown/turn around jobs. Special maintenance & repair services for rotatory equipment, like pumps,

compressors, turbines etc. Energy Audits leading to energy savings Safety Audit Services Design and monitoring of Environment Protection Systems NDT, Corrosion and RLA services Laboratory Services Training of technical manpower in Operation Maintenance and Safety

Management Consultancy in Project Management

Assignments Taken Abroad

Assistance in   checking the operatability and maintainability of PETROBRAS   Fertilizer Plant in Brazil and training of Specialist Welders.

Assistance in operation and maintenance of Ammonia and Methanol Complex of GulfPetrochemical Industries Co., Bahrain.

Assistance in operation and maintenance of Ammonia Plant of NAPETCO, Libya   through UNIDO.

NFL Provides expertise in the area of specialised services.List of select Assignments & Clients. Undertaken By NFL in  Past Years

International Assignments

  Assignments   Organisation

   Assistance in checking the operatability &    maintainability of Fertilizer Plant & training of   specialised Welders.

  PETROBRAS fertilizer plant in  Brazil.

   Assistance in the operation & maintenance of    Ammonia & Methanol complex plants.

  Gulf Petro chemical Industries  Co., Bahrain.

   Assistance in the operation & maintenance of   Ammonia Plant

  NAPETCO Libya (through  UNIDO)

   Commissioning supervision of three fuel oil based   fertilizer plants in China.

  China, through Toyo Engg.  Corporation, Japan.

   Assistance in the Commissioning of Ammonia/Urea   plants.  

  Venezuela through M/s.Snam  Progetti, Italy.

  Contracts/MOU under negotiation with for Specialised Services

Engineers India Ltd. Petroleum India International National Productivity Council          

Services Rendered in India

SERVICES RENDERED IN INDIA

Assignments Carried Out Organisations in India

   Plant start-up commissioning, operation   and Maintenance services.

  Gujarat Narmada Valley Corpn.Gujrat

  Hindustan Fertilizer Corpn.West Bengal

  Paradeep Phosphates Ltd. Orissa.

  Compressor Stations under    SPIE-CAPAG   /NKK/TOYO CONSORTIUM on HBJ gas  pipeline.  Operation of various Gas Stations of Gas  Authority of India Ltd.(GAIL)  Numaligarh Refineries Ltd.,Assam

  Indian Oil Refinery,Panipat,Haryana

  Haldia Petrochemicals, West Bengal through  Toyo Engg.Corporation (TEC) Japan.  Chambal Fertilizers, Gadepan through TEC   Japan.

   Assistance in the preparation of   comprehensive manual on project   implementation.

  Ministry of Programme Implementation  Govt. of India.

   Formulation of Award Scheme for   excellence in project implementation   and formulation of Award scheme.

  Fertilizer plants at National level.

   Designing Incentive and Motivation   Schemes.

  Public Sector Fertilizer Companies in India.

   Preparation of Corporate Plan.   Paradeep Phosphates and Chemicals Ltd.,  (PPCL)

   Preparation of Corporate Plan. Services   with regard to investigation of industrial   accidents/ mis-haps,

  Projects & Development India Ltd.

   Organisation restructuring.   Hindustan Fertilizer Corporation New Delhi.

   Computerisation of maintenance    system

  A.P. Rayons Ltd., Andhra Pradesh.

   Assistance in the preparation of   comprehensive manual on project   implementation.

  Ministry of Programme Implementation,  Govt. of India.

   Award Scheme for excellence in project   implementation and formation of award   scheme for excellence in annual   performance.

  Fertilizer Companies at National level.

NFL IS THE PROUD RECIPIENT OF SEVERAL AWARDS IN VARIOUS AREAS       

PRODUCTIVITY AWARDS

  AWARDS YEAR    UNIT

National Productivity Award for Bio-Fertilizers

2002-03 Vijaipur

FAI Award for Best Overall Performance of an Operating NitrogenousFertilizer unit

1999-00 Vijaipur

Productivity Award by NPC 1997-98 Bathinda

Certificate of Merit from NPC 1997-98 Bathinda

Certificate of Merit by NPC 1996 Nangal

Commendation certificate for outstanding work in Energy Conservationby the Ministry of Power, Govt. of India

1996 Vijaipur

Second Best Productivity Award by 1993-94 Panipat

Second Best National Productivity Award by National ProductivityCouncil (NPC)

1993-94 Panipat

Certificate for Productivity Improvement by National ProductivityCouncil

1991-92 Bathinda

OTHER PRESTIGIOUSAWARDS & RECOGNITIONS

  AWARDS YEAR UNIT

Golden Peacock Innovation Award from 2005 Panipat

IOD, N. Delhi.

National Energy Conservation Award from the Ministry of Power

2005 Vijaipur-I

National Energy Management Award from CII

2005 Vijaipur

Golden Peacock Innovation Award from IOD

2005 Panipat

Energy Conservation Award from the Ministry of Power.

2000 Vijaipur

Best Energy Conservation Implementation Gold Award by InstitutionalGreen Land Society, Hyderabad.

1999-00 Panipat

National Energy Conservation Award by Ministry of Power, G.o.I

1995 Vijaipur

Udyog Excellence Gold Medal and Citation by Industrial EconomicForum, G.o.I

1995 Bathinda

Corporate Performance Award by Economic Times.

1993-94 NFL

First Prize in Excellence in Project Mgt. By Ministry of ProgramImplementation.

1989 Vijaipur

POLLUTION CONTROL AWARDS

  AWARDS YEAR UNIT

Silver Award for outstanding achievement in Environment Management by M/s Green tech

2004-05 Vijaipur

Foundation, Hyderabad

Madhya Pradesh State Level Annual award on Environment

1999-00 Vijaipur

11th Indira Gandhi Memorial National Gold Award for Environmental & Ecological Implementation

1998-99 Vijaipur

Best Pollution Control Implementation Gold Award from International Green land Society, Hyderabad

1998-99 Vijaipur

Environment Protection Award by Fertilizer Association of India

1995-96 Vijaipur

Environment Protection Award by Fertilizer Associationof India

1991-92 Vijaipur

SAFETY AWARDS

  AWARDS YEAR UNIT

Prashansha Patra by National Safety Council of India

2005 Vijaipur

Suraksha Puruskar for adopting Occupational Safety and Health Management Systems from NSC.

2004 Bathinda

Yogyata Praman Patra – 2001 award by NSC

2003-04 Bathinda

National Safety Award – 2002 2003-04 Nangal

National Safety Award – 2002(Runner up)

2003-04 Bathinda

Punjab State Safety Award – 2003 2003-04 Nangal

Yogyata Praman Patra – 2003 2003 Bathinda

Prashansa Puraskar – 2000 award by 2000 Bathinda

NSC

Haryana State Safety & Welfare Award 1999-00 Panipat

National Safety Award 1999 & 2000 Bathinda

Yogyata Praman Patra by NSC, Mumbai 1998-99 Vijaipur

Safety awards (5 Nos.) by Punjab Govt. 1998 & 1999 Bathinda

Award for Excellence in Safety by FAI 1997-98 Nangal

Award from National Safety Council, USA

1997 Panipat

British Safety Council Safety Award 1997 Nangal

Award of Honour by NSC,USA 1996 Nangal

British Safety Council Award 1996 Nangal

Sarv Sresht Safety Award 1994 & 96 Vijaipur

Longest Accident Free Period by NSC, USA

1992 Nangal

Longest Accident Free Man days by NSC, USA

1990 Panipat

EMPLOYEES SKILL AWARDS

  AWARDS YEAR UNIT

Punjab State Krit Veer Award 2003 Bathinda

Krit Veer Award to 1 employee by Punjab Govt.

2002 Nangal

Vishwakarma Rashtriya Puraskar from the Ministry of Labour & Employment,

1999 Bathinda

G.o.I

Krit Vir awards to 13 employees by Punjab Govt.

1995, 96 & 98 Bathinda

Krit Vir awards to 13 employees by Punjab Govt.

1995 & 1996 Nangal

Vishwakarma Rashtriya Puraskar to three employees.

1993 Bathinda

Krit Award to 6 Employees by Punjab State Labour Deptt.

1993 Bathinda

Vishwakarma Rashtriya Puraskar to one Employee by Ministry of Labour, G.o.I

1992 Nangal

Krit Vir Award to 5 employees by Punjab State Labour Deptt.

2002 Nangal

Prime Minister’s Shramvir Award to four employees for Unconventional repairs of Air Compressor Blades

1984 Panipat

ISO CERTIFICATIONS

  PLANTS / OFFICE CERTIFICATION    AWARDED SINCE

  Vijaipur Plant  ISO-9002/ISO-14001    1997-98/98-99

 ISO 9001:2000    2003-04

  Panipat Plant   ISO-9002/ISO-14001    1999-00/2000-01

 ISO 9001:2000    2003-04

 OHSAS-18001    2004-05

  Bathinda Plants   ISO-9002/14001/18001    2000-01/2001-02/03-04

 ISO 9001:2000    2003-04

 OHSAS-18001    2003-04

  Nangal Plant   ISO 9001: 2000    2002-03

 ISO-14001    2001-02

  CO/CMO  ISO 9001:2000    2002-03

The Cornerstone of NFL's meritorious track record is its human resource. At NFL, we firmly believe that our employees are our most valued resources.

NFL has always been a forerunner in the fertilizer sector and this has been made possible through the company's

thrust on human resources development.

NFL offers a host of exciting career/opportunity to dynamic/young/qualified individuals in Production/Maintenance/Marketing/Finance and Human Relations. NFL has three induction levels Management Trainees/Technicians & Operator Apprentices & Commercial Apprentices. Developmental and functional programs based on training needs, as judged in the area of updation of technical supervisory and managerial skills along with specialized requirements from time to time.

The services which have been developed in the area of Training and Development within the organization are readily available to other organizations within the laid policies and procedures of the Company.

Caring Organization

The Company's concern for its employees is reflected through its efforts in the area of health, safety and welfare of its employees. NFL not only meets the statutory obligations, but has undertaken numerous voluntary measures beyond the statutory requirements. The Company has well equipped hospitals, canteens recreation clubs, housing facilities, schools and safe working environment. The onus of NFL's high production levels lies on harmonious and cordial industrial relations at all its manufacturing Units. The Company has not lost even a single man day on this account.

To cater to the needs of training and development, NFL has a well defined and well designed training plan. Major activities undertaken by HRD are:

Recruitment and Training of Trainees at various levels viz. officers, supervisors and workers.

Organizing of developmental and functional programs based on training needs, as judged in the area of updation of technical, supervisory and managerial skills along with specialized requirements from time to time.

Imparting of training to people from other organisations within India and abroad.

Formulate policies regarding manpower deployment on hire to other organisations within India and abroad.

The services which have been developed in the area of Training and Development within the organisation are readily available to other organisations within the laid policies and procedures of the Company.

MANPOWER STATUS AS ON 28.02.2010

UNIT Total Employees Executives Non Executives

NANGAL 1510 342 1168

BATHINDA 873 335 538

PANIPAT 904 374 530

VIJAIPUR 842 394 448

CMO 458 316 142

CO 173 141 32

TOTAL 4760 1902 2858

PERCENTAGE 40.02 59.98

The complete farmer satisfaction through best services is the drawing force of NFL’s marketing, strategy. The Company has expanded its programme from improving the crop productivity at farm level to the overall development of the farming community.

To provide to the farmers high quality products in the right time, NFL has an extensive and integrated marketing network.

The Company provides comprehensive capsules of various fertilizer promotion activities, which includes agronomical programmes, use of extension media, publicity and farmer development programmes.

NFL's area of operation

Soil testing services are provided free of cost to the farmers to advocate the balanced use of fertilizers at economic levels. One mobile soil-testing unit caters to the need of the remotest of remote farmers in far areas and provide technical guidance to the farmer at field level. Soil testing services

Other farm services include fertilizer demonstration on cultivator’s fields, field days, fertilizer/farmers Mela, pilot project, adoption of villages etc. NFL also conducts various training programmes to educate the farmers on the balanced use of fertilizer and its timely application besides providing guidance on pesticides & fungicides.

       Educating the farmers

NFL’s Farmer Training Centre at Vijaipur caters to the training needs of small and marginal farmers, particularly those belonging to tribal areas in the State of Madhya Pradesh. The training schedules are tailor made to suit the requirement of the farmers.

To commemorate the 50th anniversary of India’s independence, the Company has undertaken a Sustainable Integrated Rural Development Programme, titled ‘Sulabh, National Fertilizer Development Initiative for Tribal Areas (SUNADITA). The mission of the project is to help the farming community in eradicating poverty and empowering people with self sustaining process of economic well being.

KISAN UREA

Kisan Urea is a highly concentrated, solid, nitrogenous fertilizer containing 46% of nitrogen. It is completely soluble in water; hence nitrogen is easily available to crops. It contains nitrogen in amider form which changes to ammonical form and is retrieved by soil colloides for longer duration. Urea is available in granular form and be applied by drill and broadcasting.

Kisan Urea is ideally suitable for all types of crops and for foliar spray which instantly removes nitrogen deficiency. Kisan Urea also has a strong and long lasting effect on crop resulting in bumper crops. Carbonic acid present in Kisan Urea helps in absorption of other nutrients like phosphate and potash by roots of crop.

  FOOD GRAINS   CASH CROPS  Rice  Wheat  Millets   Jawar  Bajra  Maize

  Sugarcane  Cotton  Jute  Fodder

  HORTICULTURE   VEGETBLES AND OIL SEEDS

  Apple  Banana  Grapes  Mangoes  Orange  Papaya  Pineapple

  Castor  Cotton Seeds     Groundnut  Mustard     Sunflower   Sesame  Soya been  Onion  Potatoes  Tomatoes  Mushroom  Cabbage              Cauliflower

NFL has a long tradition of nurturing the environment in and around its manufacturing Units. At NFL, we believe in

sustainable development without degrading the environment and are fully committed to our responsibility to the Society. In line with our commitment to this object, we have installed with state of art effluent treatment facilities at all our Units. At NFL Vijaipur the Company has adopted cleaner technology to minimise generation of pollutants. 

All the pollutants generated in the manufacturing process are treated at source and pollution control schemes have been incorporated at theinception stage itself.

NFL meets the standards prescribed by the Central and State Pollution Control boards and ensures that our Pollution Control measures are upgraded from time to time. The major facilities available at NFL's operating Units are :

a)    Installation of NOX Abatement Scheme along with associated       sodium nitrite/nitrate plants for    Nitric Acid Plant at Nangal.

b)    Provision of Thermal Urea Hydrolyser at Nangal.

c)    Facilities for cyanide and chromate treatment of effluent from       carbon recovery and cooling towers sections at Nangal.

d)    Provision of acoustic granulators for reducing dust emissions       from Prilling towers at Panipat & Bathinda.

e)    Provision of additional electrostatic precipitators on all the coal fired       boilers at Panipat, Bathinda and Nangal.

The Company has also adopted an extensive Afforestation programme and has planted more than 1.5 lakh trees of different species. The once barren stretch of land around NFL Vijaipur Unit in Madhya Pradesh is now a lush green belt with about 1.5 lakh trees-which stands testimony to the Company's Commitment to environment preservation.

ENVIRONMENTAL POLICY:-

NFL is committed to achieve Pollution Free Environment and Balanced Ecology by adopting Environmental Management System through:

1) Environmental Management System as Corporate Policy with continued efforts for improvement.

2) Training and Motivation of employees including contractors for awareness on environment and ecology.

3) Assessing environmental aspects before starting a new project or scheme and before decommissioning any installed capacity.

4) Advising and educating customers in the safe use, transportation, storage and disposal of products sold by the company.

5) Operation of manufacturing plants and utilities in efficient manner to minimise the waste generation and consequent adverse environmental impact.

6) Improvement and development in process technology.7) Development and maintenance of emergency management plants.8) Conducting regular environmental audits and compliance with the Statutory

and legal requirements.

QUALITY POLICY:-

NFL is committed to serve the farming community and other customers to their satisfaction by manufacturing and marketing high quality fertilizers and industrial products through:

1) Process improvement and development.2) Economy in use of inputs and optimization of utilization efficiency.3) Safety of plant and personnel.4) R&D activities for energy saving and process improvement.5) Pollution control and ecological balance.6) Organizational environment of group initiative, innovation and

productivity.7) Human resource development.8) Compliance with statutory laws and regulations.

SAFETY, HEALTH AND ENVIRONMENT POLICY:-

National Fertilizers Limited Bathinda is totally committed to conduct all its activities in harmony with society and nature without compromising on the health and safety of employees as well as the people living around the complex. A full-fledged Safety, Health and Environment protection department has been set up in the unit to achieve fulfilment of its statutory obligations concerning prevention of personal injuries, maintaining safe working conditions and protection of environment.

For effective implementation of the Safety, Health and Environment(SHE) policy, the following steps have been incorporated in the working system:

1) All concerned departments/sectional heads shall be responsible to comply with statutory requirements and to maintain safety of the plant, man, machinery and environment.

2) Each and every employee shall observe the safe system of work and follow proper safety work permit system while carrying out maintenance jobs inside the factory.

3) Workers shall be encouraged to participate in the suggestion schemes, good housekeeping competitions and celebration of National Safety Day and Fire Service Day.

4) A Central Safety Committee shall be constituted with proper representation from workers and management for monitoring and improving health and safety standards of all the employees and their families.

5) Safety consciousness of employees shall be evaluated in their appraisal report.

6) All contractors, sub-contractors, transporters and other agencies entering NFL premises for executing any work shall be instructed to follow prescribed safety procedure framed by the company. It shall also form

part of their contract work order.7) Safety, Health and Environment performance shall be covered suitably in

the annual report of the company.8) Safety Audits and Risk Analysis shall be carried out at regular intervals

and recommendations of the audit team shall be implemented.9) While procuring plant and equipment machinery, Safety, Health and

Environmental aspects shall be given due priority.10) Mental as well as physical fitness of all the employees shall be

ensured. Periodical medical check up of all employees shall be carried out.

11) Responsibility and accountability of employees towards safety, health and environment shall be raised by providing appropriate information and training through Safety literature, instructions and other different forms of media for continual improvement and development of their Safety, Health and Environment standards.

LOGO OF NATIONAL FERTILIZERS LIMITED

CHAPTER- 2

INTRODUCTION

TO

PROJECT

EMPLOYEE WELFARE

Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary

terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families.

Employee welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.

In general these are the benefits that an employee must receive from his/her company, like allowances, housing for those companies which provide transportation, medical, insurance, food and some other way where the employee has right to demand.

Employee welfare defines as “efforts to make life worth living for workmen”. These efforts have their origin either in some statute form formed by the state or in some local custom or in collective agreement or in the employer’s own initiative.

PRINCIPLES OF EMPLOYEE WELFARE SERVICE

The principles which are to be followed in setting up a employee welfare service are as follows:-

The service should satisfy real needs of the workers. This means that the manager must first determine what the employee’s real needs are with the active participation of workers.

The service should be such that can be handled by cafeteria approach. Due to the differences in sex, age, marital status, number of children, type of job and the income level of employees, there are large differences in the choice of a particular benefit. This is known as the cafeteria approach. Such an approach individualises the benefit system, though it may be difficult to operate and administer.

The employer should not assume a benevolent posture. The cost of the service should be calculated and its financing should be

established on a sound basis. There should be periodical assessment or evaluation of the service and

necessary or timely action should be taken on the basis of feedback.

The purpose of the benefits is to increase the economic security of the

employees.

Types of Employee Welfare Services

Safety ServicesPrevention of accidents is an objective which requires no explanation. 

The costs of accidents are enormous in suffering to the injured, in reduction or loss of earnings, in disabilities and incapacities which afflict those involved and in compensation, insurance and legal costs, in lost time, filling in reports and attending to enquiries, and in spoilage of materials, equipment and tools to management.

            Accidents are the consequence of two basic factors:  technical and human.  Technical factors include all engineering deficiencies, related to plant, tools material and general work environment.  Thus, for example, improper lighting, inadequate ventilation, poor machine guarding and careless housekeeping are some hazards which may cause accidents.  Human factors include all unsafe acts on the part of employees.  An unsafe act is usually the result of carelessness.

            Young and new employees, because of their difficulty in adjusting to the work situation and to life in general, also have many more accidents than do old and nature workers.

 The Phenomenon of Accident Proneness.  Some persons believe wrongly in the theory that certain individuals are accident prone, that is , they have some personality trait as opposed to some characteristic of the environment which predisposes them to have more accidents than others in work condition where the risk of hazards is equal to all.

Components of a Safety Service            Among the many components of a safety service the following have proved effective when applied in combination:

Appointment of safety officerIn big organizations, the appointment of a safety officer to head the safety department is a must.  In small organizations, the personnel manager may look

after the functions of this department.  The head of the safety department, who is usually a staff man, is granted power to inspect the plant for unsafe condition, to promote sound safety practices (through posters and safety campaigns), to make safety rules, and to report violations to the plant manager.

Support by line managementThe head of the safety department, whether enjoying a staff or a functional position, by him, cannot make a plan safe. His appointment lulls line management into assuming that all its safety problems have been solved.

Elimination of hazardsAlthough complete elimination of all hazards is virtually an

impossibility but following steps can be taken to help reduce them:

Job safety analysisAll job procedures and practices should be analysed by an expert to discover hazards.  He should then suggest changes in their motion patterns, sequence and the like.

PlacementA poorly placed employee is more apt to incur injury than a properly placed employee.  Employees should be placed on jobs only after carefully estimating and considering the job requirements with those which the individual apparently possesses.

Personal protective equipmentEndless variety of personal safety equipment is available nowadays which can be used to prevent injury.

Safeguarding machineryGuards must be securely fixed to all power driven machinery.

Materials handlingThough often ignored, the careless handling of heavy and inflammable materials is an important source of several injuries and fire.

Hand toolsMinor injuries often result from improperly using a good tool or using a poorly designed tool. Therefore, close supervision and instruction should be given to

the employees on the proper tool and its usage.

Safety training, education and publicitySafety training is concerned with developing safety skills, whereas safety education is concerned with increasing contest programmes, safety campaigns, suggestion awards, and various audiovisual aids can be considered as different forms of employee education.

Safety inspectionAn inspection by a trained individual or a committee to detect evidence of possible safety hazards (such as poor lighting, slippery floors, unguarded machines, faulty electrical installations, poor work methods and disregard of safety rules) is a very effective device to promote safety.

 Health ServicesThe prevention of accident constitutes only on segment of the function of employee maintenance. Another equally important segment is the employee’s general health, both physical and mental.            There are two aspects of industrial health services:-

Preventive Curative

The former consists of pre-employment and periodic medical examination, removal or reduction of health hazards to the maximum extent possible, Surveillance over certain classes of workers such as women, young persons and persons exposed to special risks.

 Counselling Services            An employee very often comes across problems which have emotional content.  For example, he may be nearing retirement and feeling insecure or he may be getting promotion and feeling hesitant to shoulder increased responsibility or he may be worried due to some family problem.

Employee Welfare in India

            The chapter on the Directive Principles of State Policy in our Constitution expresses the need for labour welfare thus:-

The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the

national life. The State shall, in particular, direct its policy towards securing: That the citizens, men and women equally, have the right to an adequate

means of livelihood; That the ownership and control of the material resources are so

distributed as to sub serve the common good.o The State shall make provision for securing just and humane

conditions of work and for maternity relief. Factories Act, 1948

            The principal Act to provide for various labour welfare measures in India is the Factories Act, 1948. The Act applies to all establishments employing 10 or more workers where power is used and 20 or more workers where power is not used, and where a manufacturing process is being carried on.

 Employee Welfare Officer            Section 49 of the factories act provides that in every factory wherein 500 or more workers are ordinarily employed the employer shall appoint at least one welfare officer.

            The welfare officer should possess; (i) a university degree; (ii) degree or diploma in social service or social work or social welfare from a recognized institution; and (iii) adequate knowledge of the language spoken by the majority of the workers in the area where the factory is situated.

¯     Supervision

¯     Counselling workers

¯     Advising management

¯     Establishing liaison with workers

¯     Working with management and workers to improve productivity.

¯     Working with outside public to secure proper enforcement of various acts.

 Health of Employees Cleanliness.  Every factory shall be kept clean by daily sweeping or washing

the floors and work rooms and by using disinfectant where necessary. Disposal of wastes and effluents.  Effective arrangements shall be made for

the disposal of wastes and for making them innocuous. Ventilation and temperature.  Effective arrangements shall be made for

ventilation and temperature so as to provide comfort to the workers and prevent injury to their health.

Dust and fume.  Effective measures shall be taken to prevent the inhalation and accumulation of dust and fumes or other impurities at the work place.

Artificial humidification.  The State Government shall make rules prescribing standard of humidification and methods to be adopted for this purpose.

Overcrowding. There shall be in every work room of a factory in existence on the date of commencement of this act at least 9.9cubic meters and of a factory built after the commencement of this act at least 4.2 cubic meters of space for every employee.

Lighting.  The State Government may prescribe standards of sufficient and suitable lighting.

Drinking Water.  There shall be effective arrangement for wholesome drinking water for workers at convenient points.

Latrines and urinals.  There shall be sufficient number of latrines and urinals, clean, well-ventilated, conveniently situated and built according to prescribed standards separately for male and female workers.

Spittoons.  There shall be sufficient number of spittoons placed at convenient places in the factory.

Safety of Employees Fencing of machinery.  All dangerous and moving parts of machinery shall

be securely fenced.  Screws, bolts and teeth shall be completely encased to prevent danger.

Work on or near machinery in motion.  Lubrication or other adjusting operation on moving machinery shall be done only by a specially trained adult male worker.

Employment of young persons on dangerous machines.  No young person

shall be allowed to work on any dangerous machine (so prescribed by the state government) unless he is sufficiently trained or is working under the supervision of knowledgeable person.

Device for cutting off power.  Suitable device for cutting of power in emergencies shall be provided.

Hoists and lifts.  These shall be made of good material and strength, thoroughly examined at least once in every six months and suitably protected to prevent any person or thing from being trapped.

Welfare of Employees            Chapter V of the factories Act contains provisions about the welfare of employees.  These are as follows:

There shall be separate and adequately screened washing facilities for the use of male and female employees.

There shall be suitable places provided for clothing not worn during working hours and for the dying of wet clothing.

There shall be suitable arrangement for all workers to sit for taking rest if they are obliged to work in a standing position.

There shall be provided the required number of first-aid boxes or cupboard (at the rate of one for every 150 workers) equipped with the prescribed contents readily available during the working hours of the factory.

The State Government may make rules requiring that in any specified factory employing more than 250 employees a canteen shall be provided and maintained by the occupier for the use of the employee.

There shall be provided sufficiently lighted and ventilated lunch room if the number of employees ordinarily employed is more than 150.

 Restrictions in the Factories Act on the employment of young persons:1.      Prohibition as to employment of children (Section 67)No child who has not completed his fourteenth year shall be required or allowed to work in any factory.

2.      Employment of Children and Adolescent (Section 68)A child who has completed his fourteenth year or an adolescent shall not be required or allowed to work in any factory unless following conditions are fulfilled:

The manager of the factory has obtained a certificate of fitness granted to such young

While at work, such child or adolescent carries a token giving reference to such certificate.

3.      Certificate of fitness (Section 69)Before a young person is employed in the factory, a certifying surgeon has to certify that such person is fit for that work in the factory.

 Welfare Funds            In order to provide welfare facilities to the workers employed in mica, iron, ore, manganese ore and chrome ore, limestone and dolomite mines and in the beedi industry, the welfare funds have been established to supplement the efforts of the employers and the State Government under respective enactments.

            The welfare measures financed out of the funds relate to development of medical facilities, housing, supply of drinking water, support for education of dependents and recreation, etc.

Voluntary Benefits

            Benefits are also given voluntarily to workers by some progressive employers.  These include loans for purchasing houses and for educating children, leave travel concession, fair price shops for essential commodities and loans to buy personal conveyance.

Machinery Connected with Employee Welfare Work

1.      Chief inspector of FactoriesIt is the duty of the Chief inspector of factories (who generally works under the administrative control of the labour commissioner in each state) to ensure enforcement of various provisions of Factories Act i8n respect of safety, health and welfare of workers.

2.      Central Labour InstituteThe institute was set up in Bombay in 1966 to facilitate the proper implementation of the Factories Act, 1948; to provide a centre of information for inspectors, employers, workers and others concerned with the well being of industrial labour and to stimulate interest in the application of the principles of industrial safety, health and welfare.

3.      National Safety CouncilThe National Safety Council was wet up on 4th March, 1966 in Bombay at the initiative of the Union Ministry of Labour and Rehabilitation, Government of India, as an autonomous national body with the objective of generating developing and sustaining a movement of safety awareness at the national level.

4.      Director General of Mines SafetyThe Director General of Mines Safety enforces the Mines Act, 1952.  He

inspects electrical installation and machinery provided in the mines and determines the thickness of barriers of 2 adjacent mines in order to prevent spread of fire and danger of inundation.

Appraisal of Welfare Services One of the main obstacles in the effective enforcement of the welfare

provisions of the Factories Act has been the quantitative and qualitative inadequacy of the inspection staff.

At present, a labour welfare officer is not able to enforce laws independently because he has to work under the pressure of management.

Women workers do not make use of the crèche facilities either because they are dissuaded by the management to bring their children with them or because they have to face transport difficulties.

National Commission on Employee Recommendations The statutory provisions on safety are adequate for the time being

effective enforcement is the current need. Every fatal accident should thoroughly be enquired into and given wide

publicity among workers. Employers should play a more concerted role in safety and accident

prevention programme and in arousing safety consciousness. Safety should become a habit with the employers and workers instead of

remaining a mere ritual as at present. Unions should take at least as much interest in safety promotion as they

take in claims for higher wages. 

SOCIAL SECURITY            The connotation of the term “Social Security” varies form country to country with different political ideologies.  In socialist countries, the avowed goal is complete protection to every citizen form the cradle to the grave.

            There are some components of Social Security:

Medical care Sickness benefit

Unemployment benefit Old-age benefit Employment injury benefit Family benefit Maternity benefit Invalidity benefit and Survivor’s benefit

 Social Securities may be of two types Social assistance under which the State finances the entire cost of the

facilities and benefits provided. Social insurance, under the State organizes the facilities financed by

contributions from the workers and employers, with or without a subsidy from the state.

Social Security in India            At present both types of social security schemes are in vogue in our country.  Among the social assistance schemes are the most important.

            The social insurance method, which has gained much wider acceptance than the social assistance method, consists of the following enactments.

     The workmen’s Compensation Act, 1961.

     The Employee’s State Insurance Act, 1948.

     The employees’ State Insurance Act, 1948.

     The Maternity Benefit Act, 1961.

Employees’ compensation Act, 1923

a. Coverage.  This Act covers all workers employed in factories, mines, plantations, transport undertakings, construction works, railways, ships, circus and other hazardous occupations specified in schedule II of the Act.The Act empowers the State Government to extend the coverage of the Act by adding any hazardous occupation to the list of such occupations is schedule II.

Administration.  The Act is administered by the State Government which appoints Commissioners for this purpose under sec. 20 of the Act.

Benefits.  Under the Act, compensation is payable by the employer to a workman for all personal injuries caused to him by accident arising out of and in the course of his employment which disable him for more than 3 days.

2.      Employees’ State Insurance Act, 1948

1. Other than seasonal factories, run with power and employing 20 or more workers.

2. Administration.  The Act is administered by the ESI Corporation, an autonomous body consisting of representatives of the Central and State Governments, employers, employees, medical profession and parliament.

3. Benefits.  The Act, which provides for a system of compulsory insurance, is a landmark in the history of social security legislation in India.

1. Medical Benefit.  An insured person or (where medical benefit bas been extended to his family) a member of his family who requires medical treatment is entitled to receive medical benefit free of charge.

2. Sickness Benefit.  An insured person, when he is sick, is also entitled to get sickness benefit at the standard benefit rate corresponding to his average daily wage.

3. An insured woman is entitled to receive maternity benefit (which is twice the sickness benefit rate) for all days on which she does not work for remaining during a period of 12 weeks of which not more than 6 weeks shall precede the expected date of confinement.

4. The Act makes a three-fold classification of injuries in the same way as is done in the workmen’s compensation Act.

5. Dependant’s Benefit.  If an insured person meets with an accident in the course of his employment a dies as a result thereof, his dependants, i.e. his widow, legitimate or adopted sons and legitimate unmarried daughters get this benefit.

3. The Maternity Benefit Act, 1961Maternity benefit is one of the important benefits provided under the

Employees State Insurance Act, 1948.  Another important legislation in this respect is the Maternity Benefit Act, 1961.  The Act covers only those persons who are not covered by the Employees State Insurance Act.  The Act entitles a woman employee to claim maternity leave from her employer if she has actually worked for a period of at least 160 days in the 12 months immediately preceding the day of her expected delivery.

The act further provides for the payment of medical bonus of Rs. 250

to the confined woman worker.

The committee on the status of women in India 1974 has, therefore,

recommended the following changes in the Act:

1. The administration of the fund should follow the pattern already established by the ESIC.

2. For casual labour a minimum of 3 months of service should be considered as qualification service for this benefit.

3. This will provide greater incentive to women workers to participate in trade union activities.

1. The Payment of Gratuity Act, 19722. Coverage.  The Act applies to every factory, mine, oilfield, plantation,

port and Railway Company and to every shop or establishment in which 10 or more persons are employed, or were employed, on any day of the preceding 12 months.

3. Administration.  The Act is administered by a controlling authority appointed by the appropriate Government.

4. Benefits.  Under the Act gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.  The completion of continuous service of five years is, however, not necessary where the termination of the employment is due to death or disablement Gratuity is payable at the rate of 15 days’ wages based on the rate of wages last drawn by the employee for every complete year of service or part thereof in excess of six months.  But the amount of gratuity payable to an employee shall not exceed Rs. 3.5 lakh.

5. Source of Funds.  Under the Act gratuity is payable entirely by the Employer.  For this purpose is required either (i) to obtain insurance with the Life Insurance Corporation, or (ii) to establish a gratuity fund. Thus it is his liability to pay the premium in the first case to make the contribution in the second case.

Employee welfare has the following objectives:

1. To provide better life and health to the workers.2. To make the workers happy and satisfied.3. To relieve workers from industrial fatigue and to improve intellectual,

cultural and material conditions of living of the workers.

The basic features of employee welfare measures are as follows:

1. Employee welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status.

2. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining.

3. Employee welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time.

4. Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency.

5. The purpose of employee welfare is to bring about the development of the whole personality of the workers to make a better workforce.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labour force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows:

They provide better physical and mental health to workers and thus promote a healthy work environment.

Facilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.

Employers get stable labour force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.

Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.

The social evils prevalent among the labours such as substance abuse, etc are reduced to a greater extent by the welfare policies.

The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization to organization and from industry to industry.

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water should be provided.

2. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.

3. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee.

4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition.

5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.

6. Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.

9. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.

10.Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES

Many non statutory welfare schemes may include the following:

1. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up

2. Flexi-time: The main objective of the flexitime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee

personal life needs3. Employee Assistance Programs: Various assistant programs are

arranged like external counselling service so that employees or members of their immediate family can get counselling on various matters.

4. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee.

5. Maternity & Adoption Leave: Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies.

6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.

7. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

WELFARE SCHEMES OFFERED BY NFL

SPECIAL DEATH BENEFIT SCHEME  

In order to provide better security to the employees of NFL, Bathinda Unit, in

the event of death of any employee, due to any reason during service, all

employees of NFL, Bathinda Unit contribute an amount of Rs. 60/- each from

their salary and the total amount so collected is paid to the nominee of the

deceased employee.

BENEVOLENT SCHEME

In terms of the Benevolent Scheme, in the event of death of an employee of

NFL, under any circumstances during service, all employees of the Company

contribute an amount of Rs. 25/- each from their salary and the total amount so

collected is paid to the widow / widower of the deceased employee. There is,

however, no contribution from the Management side. 

The said Scheme was introduced in NFL w.e.f. 1st November 1994.

SPECIAL WELFARE FUND SCHEME

  A Special Welfare Fund has been constituted for undertaking welfare projects in

the neighborhood of the Company's Offices or for giving relief to hard cases

inside the establishment. All employees contribute @ Rs. 5/- p.m. towards this

fund with matching grant by the Management subject to minimum of Rs. 1000/-

p.m. for each Unit / office (Revised contribution is w.e.f. 1.10.2009). A

Managing Committee consisting of representatives of Management and

employees administers the fund.

SELF INSURANCE OF OUTSTANDING HOUSE BUILDING

ADVANCE

A self Insurance Scheme for the purpose of providing insurance cover for

outstanding HBA and interest due thereon is in vogue in the Company within

the following parameters:-

a) Employees who have taken HBA from the Company, contribute @ Rs. 2/-

per one thousand per annum w.e.f. 1.4.2000 on the amount of HBA outstanding

and interest due thereon in her name as on 1st April of each financial year, which

is recoverable in 12 equal monthly instalments from the salary of employees.

b) The fund so generated is utilized to meet the liability of the deceased

employee towards repayment of HBA and interest accrued thereon.

c) For matching contributions on behalf of company, necessary accounting

adjustments are carried out at Corporate Office at the time of death of an

employee with regard to the outstanding amount of HBA along with interest

thereon by debiting Company's share to the respective Unit/Office.

d) The fund is managed by a Governing body comprising of representatives of

Management, Officers' Associations and recognized Unions.

e) The said Scheme was introduced in the Company w.e.f. 1.4.1992.

RELIEF MEASURE TO THE FAMILIES OF THE DECEASED

EMPLOYEES IN CASE OF DEATH / PERMANENT TOTAL

DISABLEMENT WHILE IN SERVICE

a) In the event of death of an employee at any place, other than at the Plant

while on duty, the Company should arrange for the transportation of the body.

b) An amount of Rs. 2500/- shall be payable to the family of the deceased

employee as "Funeral Expenses".

c) All dues should be settled and paid within 15 days from the date of death of

the employee.

d) The Company has introduced a Social Security Scheme, w.e.f. 11.12.1998.

The existing scheme of providing compassionate employment to the dependents

of the deceased employee on account of permanent total disablement / death /

retirement on account of permanent while in service of the Company shall cease

to operate retrospectively w.e.f.11.12.1998. The details of the said Scheme are

as under:

NFL'S SOCIAL SECURITY SCHEME

OBJECTIVE

 To provide financial benefit to an employee / nominee of the deceased, as the

case may be, in the event of death / permanent total disablement / retirement on

medical grounds.

ELIGIBILITY

All regular employees (both executives & non-executives) including Company

Trainees appointed against regular posts, who die while in service or suffer

permanent total disablement and cease to be in employment with the company

or are discharged from services by NFL because of permanent total disability on

medical grounds, on or after the date of implementation of the scheme.

EFFECTIVE DATE

The Scheme shall come into force w.e.f. 11.12.1998. The existing Scheme of

providing compassionate employment to the dependents of the deceased

employees on account of permanent total disablement / death / retirement on

medical grounds while in service of the Company shall cease to operate w.e.f.

11.12.1998.

BENEFITS UNDER THE SCHEME

a) On separation from the service of the Company on account of permanent

total disablement / death / retirement on medical grounds, the employee /

beneficiary shall be provided lump sum benefit equivalent to Basic Pay +

DA (restricted to Rs. 15000/- p.m.) for 50% of the left over months of

service limited to 60 months pay, whichever is less, to be released in a

phased manner subject to tax deduction under the Income Tax Law.

b) The minimum amount payable to the beneficiary under the scheme will be

Rs.1.00 (one) lakh irrespective of left over service.

RELEASE OF PAYMENTS

The payment under the Scheme /shall be released, in a phased manner, as

indicated below:

1st Year 40% of admissible amount

2nd Year 20% of admissible amount

3rd Year 20% of admissible amount

4th Year 20% of admissible amount

In the first year, the beneficiary shall be paid 40% of the admissible amount or

Rs. 1.00 lakh whichever is more. Balance amount shall be paid in three equal

annual installments, subject to tax deduction under the Income Tax Law.

CONDITIONS FOR BEING A BENEFICIARY UNDER THE SCHEME

The benefit under the SCHEME shall not be extended in the following

circumstances:

i)   Outstanding loans / advances and other dues, if any, taken by the employee

from the Company have not been repaid/settled.

ii) Company's quarter, if allotted, has not been vacated.

GENERAL

a) Clarifications to these rules, as and when required shall be issued by

Personnel Deptt. at Corporate Office suo-moto or on reference received from

any of the Unit/Office;

b) Where any doubt arises as to the interpenetration of these rules, it shall be

referred to Corporate Office for decision which would be final and binding.

REVIEW

The Management reserves the right to withdraw the whole or any part of the

Scheme. It will also have the right to curtail or expand the benefit under the

Scheme, at its sole discretion at any time.

GROUP SAVING LINKED INSURANCE SCHEME

a) The Group Saving Linked Insurance Scheme (GSLIS) of LIC has been

introduced in all Units/Office of the Company providing coverage of insurance

amount ranging from Rs.1.20 Lakh to Rs. 4.00 lakh in the event of death of an

employee. The Scheme provides for a monthly contribution of the total sum

insured, out of which 35% is appropriated towards risk for insurance cover and

65% is credited to Savings Portion.

b) In the event of unfortunate death of a member covered under the Scheme,

the nominee becomes entitled for Life Insurance benefit as applicable to the

member's category plus the amount accumulated with interest in the saving fund

account of the member.

c) In the case of survival up to the normal retirement date or early withdrawal by

resignation or termination of service, the total accumulated amount in the savings

portion with interest lying to the credit of the member in the saving fund account

becomes payable.

d) The contributions paid under the Scheme are eligible for exemption under the

Income Tax Act, 1961 (Section 88.) The Maturity proceeds or claims amount

are also free from Income Tax. The contributions are payable on monthly basis

through deduction from employee's salary.

WELFARE EXCURSION SCHEME

Two Excursion Trips in a Calendar year are arranged by the Club at Units.

However, at Mktg. Division & Corporate Office, where there are no clubs, such

excursion trips are arranged by the concerned Welfare / Industrial Relations

Department. Under the Scheme, the places to be visited during such Excursion

trips are arranged within a distance of 500 kms. Each way from the Township /

place of work. One night stay is also allowed for the said trip. However

Company does not bear any extra expenses on account of boarding / lodging

and the employees make their own arrangement for night stay and avail their

own leave.

Management provides hire charges for two buses for each trip at Units and total

three buses for the two trips at C.O. & CMO.

 A sum of Rs. 50/- per member per year is also given to the respective clubs and

where there are no clubs, the amount @ Rs. 50/-per employee availing the

facility is placed at the trips. All other expenses on such trips are, however, met

through the contributions of the employees availing this facility.

LONG SERVICE AWARD SCHEME

In terms of Company's policy regarding grant of long service award, employees

are given an award on completing specified length of service of 10/15/20/25/30

& 35 years, as per details given below:

No. of years of service in the Company Amount of Award

i) On completion of 10 years service Rs. 900/-

ii) On completion of 15 years service Rs. 1150/-

iii) On completion of 20 years service Rs. 1250/-

iv) On completion of 25 years service Rs. 1500/-

v) On completion of 30 years service Rs. 1800/-

vi) On completion of 35 years service Rs. 2200/-

SCHOLARSHIP TO THE OUTSTANDING CHILDREN OF NFL EMPLOYEES

Children of NFL employees studying in schools who secure the first three

positions in Annual Examinations out of the first five (for SC/ST's, first three

position among SC/ST students) in the classes mentioned against each in the

next class tenable for one year provided they continue their studies in the next

class.

Class Amount of Scholarship (per month)

I to IV Rs. 70/- per month w.e.f. 2008-09

Academic sessions.

V to IX Rs. 100/- -do-

X to XI Rs. 150/- -do-

WELFARE AND SPORTS GRANTS / FACILITIES

Following grants / facilities are providing for this purpose:-

SPORTS GRANTS

Under this head, budget allocations are made for the following:-

i) Annual Sports / Welfare Grants.

ii) Grants for holding inter- unit tournaments.

iii) Sponsored Tournament.

Given below are break-up of grants for sports activities:-

Unit Annual Grants Budget for Inter Sponsored T A/DA

for Sports Unit Tournament Tournament

Nangal 80,000 - - 25,000

30,000

Vijaipur 60,000 - - 25,000

60,000

Bathinda/

Panipat 60,000 - - 25,000

30,000

C.O. / CMO 30,000 - - Actual be complied by unit

taking

All Units/ 35,000 15,000 into account no. of games, no.

of

Offices players deputed etc.

Settlement of dues on Retirement/ Resignation/ Death- No Dues Certificate

Every employee of NFL shall retire from service of NFL on attaining the age of 60 years. A notification will be issued at least 3 months in advance by the concerned Personnel Department to this effort for the information of the employee concerned with a copy to Finance department Vigilance Department, Administration, Materials, Library, co-operative society etc to enable them to take timely action for settlement final dues.

With a view that the retiring employees/ dependents of deceased employees get their final dues expeditiously, it has now been decided as under:-

a) To deal with the cases of resignation/ death of employees a committee be constituted in all units/ offices to assist the concerned employee and / or their department for expedition’s release of final payment. The committee should also assist the dependents of the deceased employee in obtaining death/ successions certificate, wherever required. Personnel department should invariably send a copy of the notification to the Chairman of the committee for taking necessary action. A copy of the circular notifying the constitution the constitution of said committee may also be sent to Personnel department Corporate Office.

b) In case of an employee retiring on superannuation, a notification at least 3 months in advance may be issued for information of the employee concerned with a copy to finance Department for timely action for settlement/ release of final dues.

c) After issue of notification with regard to superannuation, Personnel department of the Unit/ Division would also ensure the collection of No Demand Certificate from all the concerned departments and advise the consolidated position accordingly to Finance department at least one month before the date of retirement. This would also detail the position with regard to balance of Earned Leave due to the employee at the time of retirement for release of cash there against.

d) Orders to release the gratuity after having financial occurrence and administrative approval of the competent authority would be issued by Personnel Department of the Unit/ Division at least one month before the date of retirement along with request of the retiring employee for settlement of PF account.

e) On receipt of requisite notification with regard to Superannuation, gratuity and encashment of Leave orders etc from the personnel department, Finance Department after ascertaining the position of various outstanding advances and interest thereon, would keep the final account of the retiring employees ready at least 15 days before the date of retirement.

f) On receipt of request for settlement of Provident Fund account though Personnel Department, Finance Department would also ensure its settlement, so that the same could be released on the date of retirement.

g) After compilation of position of the final account, cheque for the dues of the retiring employees would be handed over to him on the day of retirement, after retaining the outstanding amount of advances (HBA, Conveyance, House Hold etc) & interest due thereon.

h) In the Units, where employees have been allotted company quarters in township, it may not be possible to obtain the No Demand Certificate from the East Department before the date of superannuation in case the employee retains the accommodation after retirement for the period as admissible under allotment rules. In such cases estimated amount equivalent to rental, electricity and water charges and any other cost of deficiency noticed in the house may be retained as security equivalent to 20% of gratuity from the dues of the employees. Refund of these recoveries will be made on receipt of vacation report and No Demand Certificate from Estate Department after adjusting the recoveries of rent, electricity and water charges etc as intimated by Estate Department.

PAYMENT OF GRATUITY

With effect from 24.5.94, all employees irrespective of their salary/ status are covered under the payment of Gratuity Act, 1972. As a result of thereof, Death-cum-retirement Gratuity Scheme no more remains in operation. However, for the purpose of calculation of gratuity, employees or their legal heirs/ nominees (in case of death of an employee) or at option to choose any set of benefits, in Toto, either under the Payment of Gratuity Act, 1972 or under the Death-cum-Retirement Gratuity Scheme, whichever is more beneficial to them.

The benefits available under the Act and the scheme in case of death are as under:-

Payment of Gratuity Act Death-cum-Retirement Gratuity Scheme

Rate of Gratuity Act15 days wages for every completed year of service or part thereof in excess of 6 months by taking a month of 26 days, subject to a maximum of Rs. 3.5 lakh (w.e.f 24.9.1997)

1/4th of the employee monthly emoluments for each completed 6 months of qualifying service or part thereof subject to a maximum of 16.5 times monthly emoluments or Rs. 3.5

lakh, whichever is less by taking a month of 26 days.

Rate of gratuity in case of deathSame as above Death during 1st year of qualifying

service(2 months emoluments)Death after 1 year but before 5 years of qualifying service(6 months emoluments)

CHAPTER- 3

OBJECTIVE AND SCOPE OF STUDY

OBJECTIVE OF THE STUDY:-

As we know that the employees are the life lines of the business, so no business can be done without them. But in the competitive market, it is more difficult to retain the employee and this can only be done if the employees are fully satisfied from head to toe. If the company is not able to satisfy the employee then they will surely leave the organisation and join the other.

The main objective of my study is to analyse, what are the various welfare policies and services provided by the NFL to its employees and their satisfaction level from those benefits.

That is what I try to do in this report to know that the employees are satisfied with the welfare policy of NFL.

The main scope of the study is:-

To find out the employees satisfaction level. To find the pitfalls in employees. To throw light on the weak and strong points which effect employee’s

satisfaction? To find out the reasons why does the employee want welfare schemes? And what NFL should improve to increase its welfare policies.

SCOPE OF THE STUDY:-The study is conducted at National Fertilizers Limited, Bathinda for a period of 45 days. The study is based on primary and secondary data.

RESEARCH METHODOLOGY:-

RESEARCH PROBLEM:-To study that, are the employees satisfied with the welfare policies of NFL Bathinda?

TYPES OF RESEARCH:-

Blend of descriptive & conclusive method has been used in this research for the

collection of data. As the research is related to the study of employee’s

satisfaction about the welfare policy. Which can more efficiently be studied

through direct questions, personal interview and informal talks, experiment

research will not much effective also, considering the time constraints,

descriptive research leading to conclusive result is the most suitable design for

this research.

SOURCES OF DATA COLLECTION:-

Primary sources:-

These sources include the data collected by the researcher himself for his own

study. It includes direct conversation with the company officers of different

departments and staff and that is with the help of the questionnaire.

SAMPLE DESIGN: - RANDOM SAMPLING.

SAMPLE SIZE: - 50.

SAMPLE UNIT: - INDIVIDUAL.

GEOGRAPHICAL LOCATION: - NFL Bathinda.

DATA COLLECTION METHOD: - Questionnaires to be filled by employees.

Secondary sources:-

The preparation of this report has also made use of secondary sources like the

company’s welfare policies which is available with the officers have been

studied deeply.

LIMITATIONS OF THE STUDY:-

In spite of the best efforts, there are always some problems or limitations

associated with market research that cannot be removed but can be minimized

only. In this survey also there could be certain errors due to those factors.

The study may have the following limitations:-

It was very difficult for me to get the forms filled because of the officer’s

busy schedule and therefore providing me insufficient time for filling up

the forms.

This study is based on the assumption that responses are true and factual

although at times that may not be the case.

Though every care has been taken to eliminate such biases, but

considering the human factor the possibility of small bias having come

up cannot be ruled out altogether.

Consumer behaviour is dynamic in nature and thus over the time, finding

of today may become invalid tomorrow.

DATA ANALYSIS AND INTERPRETATION:-

Q1. From how much time are you with NFL?

a) Less than 2 years

b) 2-5 years

c) 5-10 years

d) More than 10 years

As per the research the data collected shows that the 75% of the

employees are with NFL form 10 years. It clearly shows that NFL is well

established organisation and 15% employees are working in NFL from 5-

10 years and 10% are working there from 2-5 years. NFL has also

recruited new employees that are working from less than 2 years.

Q2. Are you fully aware about the welfare schemes provided by NFL?

a) Yes

b) No

c) Approximately

There are 65% of the employees who are fully aware with NFL

welfare schemes. And 35% of the employees were aware about the

welfare schemes approximately.

Q3. What are the welfare schemes provided by NFL?

a) Medical

b) Housing

c) Social security

d) All

There are so many schemes provided by NFL as medical, housing

facility, social security at the time of employees death etc. if we

talk about medical facility it is very useful for a NFL employee that

he or she can receive treatment from eminent hospital. 17.5%

employees are satisfied with the medical facility and 12.5%

housing facility and more than 60% are satisfied with all facilities.

10% employees are satisfied with social security.

Q4. Are you fully satisfied with the welfare schemes of NFL?

a) Yes

b) No

As per data collected, it shows that NFL is fully able to satisfy its

employees with the welfare schemes. According to them these

welfare schemes are time consuming and that is provided only to a

few. Other reason is that NFL does not care for an employees’ and

that are provided only to a few.

Q5. Do you feel that NFL schemes are much better than other

government companies?

a) Yes

b) No

The ratio of schemes provided by NFL is 80%, it means this

organisation is much better than any other government company.

The government companies just offer only 60% schemes which are

mentioned in Factory Act, 1984. NFL’s medical schemes are

providing cheap medical services as it has Indian famous hospital

on its penal for all units.

Q6. According to your point of view which scheme is best for

employees?

a) Social security scheme

b) Welfare excursion scheme

c) Long service award scheme

d) Sports

e) Medical

f) Housing

g) All are best

A number of schemes are provided by NFL. In these schemes 45%

of the employees are satisfied with the medical and 42% are

satisfied with all the schemes and 12.5% employees are satisfied

with social schemes.

Q7. Do you think social security scheme is beneficial for

employee’s family? Is there any need to increase its amount?

a) Yes

b) No

In this all the employees are more satisfied with the social security

scheme because it gives security to the employee’s family after

death. But the employees want to increase the amount of this

scheme. 80% of the employees are agreed on this question that the

amount should be increased.

Q8. Do you think the excursion scheme is beneficial?

a) Yes

b) No

Two excursion trips in a calendar year are arranged by the club at units

however, at marketing division and corporate office where there are no

clubs, such excursion trips are arranged by the concerned welfare/

industrial relations department. Under the scheme, the place of 400kms

each way from the township/place of work. One night stay is also allowed

for the said trip. However company doesn’t bear any extra expenses on

account for boarding/ loading and the employees do make their own

arrangement for night stay and avail their own leave.

95% employees are satisfied with this scheme but 5% are not satisfied

with it because it is only for club member and not for all.

Q9. According to your point of view the scholarship and sports grant to

the outstanding children of NFL employees should be increased?

a) Yes

b) No

NFL also provides scholarship grant to the outstanding children of

NFL employees but this amount is very low, so the employees

want to increase this amount. 70% employees agree and 30%

employees do not agree with this point.

Q10. Are you fully satisfied with the medical policy of NFL?

a) Yes

b) No

68% of the employees are satisfied with the medical facility

provided by NFL and 33% are not satisfied because this policy has

a long process and needs detailed documents of the patient. NFL

has famous hospital on its panel, it is providing best medical

facilities to its employees but in other ways the policy is having

some weak points also.

FINDINGS

In Bathinda there are many companies, despite of tough

competition still good number of people is joining NFL.

Above 80% of the employees are satisfied with the welfare

schemes of NFL.

The schemes provided by NFL are durable. Moreover these

schemes are beneficial for the employees as well as their

family.

Another plus point of NFL is that the company is providing

the welfare schemes to all employees irrespective of their

levels.

Other companies are providing less welfare schemes as

compared to NFL.

NFL is providing Long Service Award Scheme to the

employees as per their experience. 80% employees are

satisfied with the present scheme and 20% want extra

medical facility.

The medical facility is very useful for the employees

because it provides cheap and quality treatment and the

company has very eminent hospital on its panel.

Recommendation for improvement in employee’s welfare

policy

The following factors can play an important role for

improvement in the employee welfare policy:-

Spreading awareness regarding welfare policy among

the employees.

Motivating the employees for giving out good

performance in order to achieve the awards of good

workers.

Time to time counselling is necessary for employee

awareness and for the amendments in the policy.

Some employees are not satisfied with the medical

policy of NFL, which needs some improvements.

70% employees agree upon the opinion that welfare

schemes should be amended after 5 years.

CONCLUSION

In the end after completing the project I conclude that welfare policy is very

important for each and every organisation. These policies play a vital role for

the development of human resources well as the organisation as a whole.

Organisation may not be able to attain the required results which are expected if

the welfare policies are not followed properly. Proper control should be

implemented in the organisation in order to check whether welfare policies are

followed or not.

While working on the project, I came to know that employee welfare schemes

play significant role and should not be neglected at any cost.

At the end I would like to conclude that NFL is following the welfare policies in

a much better way than any other organisation. It is providing many welfare

schemes which are mentioned in Factories Act, 1948.

I had 6 weeks training in NFL. It was a great experience to work in such a

reputed organisation. Proper rules and regulations are being followed. Working

atmosphere is co-operative and friendly.

BIBLIOGRAPHY

WEBSITES:-

www.nationalfertilizers.com

www.wikipedia.com

A quarterly magazine of the company named “Vani” has also been referred.