INTERNSHIP TRAINING REPORT A study conducted at NATIONAL THERMAL POWER CORPORATION UNCHAHAR Submitted to Bangalore University In partial fulfillment of the requirement of the degree of MASTER OF BUSINESS ADMINISTRATION By (Rahul kumar singh) Reg No. 06CQCM6068 Under the guidance of Dr. Kalyani Rangarajan Professor &HOD DSCMIT DSCMIT 1
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INTERNSHIP TRAINING REPORT
A study conducted at
NATIONAL THERMAL POWER CORPORATION
UNCHAHAR
Submitted to Bangalore University
In partial fulfillment of the requirement of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
(Rahul kumar singh)
Reg No. 06CQCM6068
Under the guidance of
Dr. Kalyani Rangarajan
Professor &HOD
DSCMIT
Dayananda Sagar College of Management & Information TechnologyShavige Malleshwara Hills, Kumara swami layout
Bangalore – 560078.
DSCMIT 1
Dayananda Sagar College of Management & Information
Technology, Bangalore – 78
August - 2007
Certificate
This is to certify that internship training report has been submitted in the partial fulfillment for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
To
Bangalore University
By
Rahul kumar singh
Under the guidance of
Dr. Kalyani Rangarajan
Professor &HOD, DSCMIT
Dr. Kalyani Rangarajan Dr. T RangarajanHead of department, MBA Director, MBA
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STUDENT DECLARATION
I hereby declare that the “Internship Training Report” submitted in partial
fulfillment of the requirement of degree of Master Administration to
Bangalore University Under the guidance and supervision of Dr. Kalyani
Rangarajan professor & HOD, DSCMIT is my original work and not
submitted for the award of any other Degree, Diploma, Fellowship or other
similar title.
Place: Bangalore Rahul kumar singh
Date: REG. NO. O6CQCM6068
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FACULTY CERTIFICATE
This is to certify that the “Internship Training Report” at National Thermal
Power Corporation Unchahar, is completed under my guidance and
supervision. It is submitted in partial fulfillment of the requirement of degree
of Master Administration to Bangalore University by Rahul kumar singh.
And this has not formed a basis for the award of any other Degree, Diploma
and Fellowship by any other institute or university.
Place: Bangalore Dr. Kalyani Rangarajan
Date: Professor & HOD,
DSCMIT
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ACKNOWLEDGEMENT
First of all I pay my respect to the Chairman of Dayananda Sagar college of
Management & Information Technology for offering this management
studies facilities, which is not only benefiting us but also creating further
opportunities for management studies in the country.
I take this opportunity to thank Dr. T Rangarajan- Director, DSCMIT for
his unflagging support, guidance and direction.
I express my sincere gratitude to Dr. Kalyani Rangarajan, Head of
Department MBA, DSCMIT, whose profound intellectual guidance,
support and encouragement has acted as an inspiration in my endeavor. And
under whose guidance, I have learned, relearned and unlearned views, ideas,
values and knowledge and completed this internship training successfully.
Finally, I would like to thank Mr. T. Mukherjee (Deputy General
Manager), and Mr. Bimal Shah Officer (HR-ED) and all other
organization members.
Last but not the least I would wish to acknowledge my gratitude to those
who provided me encouragement, assistance and guidance in various levels
for overall completion of this work.
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CHAPTER PARTICULARS PAGE NO I. INTRODUCTION 10
GENERAL INTRODUCTION 11
OBJECTIVE OF THE STUDY 12
INDUSTRIAL BACKGROUND 13
ORIGIN OF THE INDUSTRY
GROWTH & DEVELOPMENT OF THE INDUSTRY
PRESENT STATUS OF THE INDUSTRY
BUSINESS ENVIRONMENT
FUTURE OF INDUSTRY
II. PROFILE OF THE ORGANIZATION 32
ORIGIN AND GROWTH OF ORGANISATION
PRESENT STATUS AND FUTURE VISION
OF THE ORGANISATION
ORGANISATION CHART
SWOT ANALYSIS OF THE ORGANIZATION
III.DETAILED STUDY OF THE DEPARTMENTS 47
FUNCTIONAL DEPARTMENT
CONTRACT DEPARTMENT
PURCHASE DEPARTMENT
STORES DEPARTMENT
HUMAN RESOURCE DEPARTMENT
FINANCE DEPARTMENT
PRODUCTION DEPARTMENT
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IV. STUDY OF SPECIFIC MANAGEMENT PROBLEM 101
SPECIFIC MANAGEMENT PROBLEM
SUGGESTION
RECOMMENDATION
V. BIBILOGRAPHY 104
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LIST OF GRAPHS
GraphNumber
Matter PageNumber
1 Installed capacity and Generation 15
2 Power Generation 2006-07 16
3 Total capacity as on 31-03-07 16
4 Power Allocation 37
5 Station Generation 38
6 Station Turnover 94
7 Station Gross Margin-(Profit) 94
8 Station Profit/ Turnover (%) 95
9 Stage – I Power Generation 99
10 Stage – II Power Generation 100
11 STATION POWER LOAD FACTOR (PLF) %
100
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LIST OF TABLES
Table Number
Matter Page No.
1 An Overview of NTPC 19
2 Coal Based Power Stations 20
3Gas/Liq. Fuel Based Power Stations
21
4 Power Plants with Joint Ventures 21
5 Projects under Implementation 22
6 A Brief Profile of the Project 36
7 Activities, Responsibility and Approving Authority
49
8 Estimated value of indent 70
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CHAPTER-1
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GENERAL INTRODUCTION:
NTPC Limited is the largest thermal power generating company of India. A
public sector company incorporated in the year 1975 to accelerate power
development in the country as a wholly owned company of the Government
of India. At present, Government of India holds 89.5% of the total equity
shares of the company and the balance 10.5% is held by FIIs, Domestic
Banks, Public and others. Within a span of 30 years, NTPC has emerged as a
truly national power company, with power generating facilities in all the
major regions of the country. Based on 1998 data, carried out by Data
monitor UK, NTPC is the 6th largest in terms of thermal power generation
and the second most efficient in terms of capacity utilisation amongst the
thermal utilities in the world.
NTPC Limited is the largest thermal power generating company of India. A
public sector company incorporated in the year 1975 to accelerate power
development in the country as a wholly owned company of the Government
of India. At present, Government of India holds 89.5% of the total equity
shares of the company and the balance 10.5% is held by FIIs, Domestic
Banks, Public and others. Within a span of 30 years, NTPC has emerged as a
truly national power company, with power generating facilities in all the
major regions of the country. Based on 1998 data, carried out by Data
monitor UK, NTPC is the 6th largest in terms of thermal power generation
and the second most efficient in terms of capacity utilisation amongst the
thermal utilities in the world.
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OBJECTIVES OF THE STUDY:
1. To have an overview of the organization, Its operation, its activities its
working conditions and techniques used and applied in these all
prevailing activities, the growth and development, present status,
competition and challenges facing by the organization in the industry,
the future trends in this backdrop.
2. To understand,
The internal mechanism operation of the organization
The working of the organization’s various departments
To focus on IR ( Information Resources ) requirements of the
company
To make a detailed report and study about the specific problems
prevailing in the company, and our suggestions and conclusion
relating to that of the growth of the concern
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INDUSTRIAL BACKGROUND AND ORIGIN OF INDUSTRY:
NTPC Limited come into being on 7th November 1975, through an
amendment of India Electricity (Supply) Act, to supplement the efforts of
the Indian states for quicker & greater capacity addition with the mandate
for planning, promoting and organization an integrated development of
thermal power (including associated transmission systems) in India to
support the economy of the country. In a span of just over 23 years after
commissioned of the first 200 MW unit at Singrauli in Feb 1982, NTPC has
grown to become that largest power generation utility of India with a
commissioned capacity of 24249 MW with 23 power station geographically
spread over the length & breadth of India, covering coal and combined
cycle power plants. The company has expanded its operations in the area of
hydropower and is on the way for backward & forward integration in fuel,
power transmission & distribution. In 1997 the department of Public
Enterprises, Govt.of India granted “Navratna” status with power of
operational authority to the board of NTPC. The objective was to turn the
public sector enterprise into a global giant. This has helped NTPC in speedy
implementation of power projects, absorption of new technologies &
formation of joint ventures in the core generation as well as services
businesses. “NTPC limited” has gone in for diversification initiatives
beyond thermal power to move towards becoming an integrated power
major.
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NTPC Limited has an aggressive capacity addition programme to become a
66,000 MW company by 2017 with a thrust on hydropower targeting about
8,000 MW hydro capacities. Integrated coal mining cum power project,
induction of large size unit for future projects, new technologies etc are
some of the drives already initiate.
An Overview
a) Date of
incorporation
: November 7, 1975
b) Mode of
incorporation
: Incorporated as a Government Company under
the provisions of the Companies Act, 1956.
c) Administrative
Ministry
: Ministry of Power, Government of India
d) Details
of Disinvestments
: The Govt. of India was holding the entire paid-
up share capital of the Company till October
2004. The Govt. of India disinvested 5.25% of its
holding in the Company through Offer for Sale
along with Initial Public Offering of 5.25% of the
paid-up share capital by the Company in the year
2004-05. In the post-issue scenario, the holding
of the Government of India is reduced from
100% to 89.5% of the paid-up equity share
capital.
e) Present status : A Government Company within the meaning of
Section 617 of the Companies Act, 1956.
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f) Share Capital
i) Authorized
: Rs. 100,000.00 million
ii) Subscribed,
issued & paid-
up
: Rs. 82,455 million
GROWTH OF NTPC INSTALLED CAPACITY &
GENERATION:
Graph-1
PRESENT STATUS:
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Graph-2
Graph-3
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GENERATION 2006-07
NTPC188.67 Bus
28.50%
ALL INDIA 662.43 BUs
TOTAL CAPICITY AS ON 31-03-2007
NTPC27,404 MW
20.18%
ALL INDIA 130,539 MW
Business of the Company
NTPC has been established to carry out the objectives specified in the
Memorandum & Articles of Association of the Company as amended from
time to time. The main activities of NTPC are setting up of power plants and
power generation through its coal-based and gas-based power plants. The
Company has also diversified into construction of hydro power plants and
generation of hydro power besides trading and distribution of electricity. The
Company is now entering into area of coal mining & coal washries and oil
exploration as well. The business portfolio of the company is as under:
i) Power Project Construction
ii) Generation of Electric Power.
iii) Coal Mining and Coal Washries.
iv) Oil Exploration.
v) Distribution, Trading of Electricity, Trading of Ash and other related
products through its wholly-owned subsidiary companies.
As on date the installed capacity of NTPC is ~25,000 MW through its 14
coal based (20,185 MW), 7 gas based (3,955 MW) and 3 Joint Venture
Projects (314 MW). NT PC acquired 50% equity of the SAIL Power Supply
Corporation Ltd. (SPSCL). This JV company operates the captive power
plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW).
NTPC is also managing Badarpur thermal power station (705 MW) of
Government of India. As on December 31, 2005, the installed capacity of the
company represented approximately 19.35% of India's total installed
DSCMIT 17
capacity, and contributed 27.1% of the total power generation of India
during the April - Dec 2004-05.
NTPC has set new benchmarks for the power industry both in the area of
power plant construction and operations. It is providing power at the
cheapest average tariff in the country. With its experience and expertise in
the power sector, NTPC is extending consultancy services to various
organisations in the power business.
NTPC is committed to the environment, generating power at minimal
environmental cost and preserving the ecology in the vicinity of the plants.
NTPC has undertaken massive afforestation in the vicinity of its plants.
Plantations have increased forest area and reduced barren land. The massive
afforestation by NTPC in and around its Ramagundam Power station (2100
MW) have contributed reducing the temperature in the areas by about 3°c.
NTPC has also taken proactive steps for ash utilisation. In 1991, it set up
Ash Utilisation Division to manage efficient use of the ash produced at its
coal stations. This quality of ash produced is ideal for use in cement,
concrete, cellular concrete, building material.
A "Centre for Power Efficiency and Environment Protection (CENPEEP)"
has been established in NTPC with the assistance of United States Agency
for International Development. (USAID). Cenpeep is efficiency oriented,
eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern
towards environmental protection and continued commitment to sustainable
This involves forecasting materials requirement, pricing and fixing
inventory. It also includes preparation of materials budget and scheduling of
the orders.
INVENTORY CONTROL
It involves fixing order quantities, setting inventory levels and safety stock
levels, designing implementing inventory system, selective control of
inventories, analysis and control of lead times.
MATERIAL CODIFICATION & STANDARDIZATION
It involves allotting the codes to each item of the stores as well as standardization of description to be mentioned on all indents, receipt, issue vouchers and other documents.The variety reduction / rationalization activities shall also be undertaken by
the group in order to enhance the quality and effectiveness of controls.
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EDP CO-ORDINATION & MIS
This involves the co-ordination with the EDP Group regarding
computerisation and generation of various MIS reports from time to time.
PURCHASE
This involves selection of source of supply, obtaining competitive
quotations, finalization of terms of purchase, placement of Purchase Order
and follow-up for completion of supplies and payment to supplier.
POLICY PLANNING AND MONITORING CELL
This will be an important organ of materials management directly
responsible to HOMM. Its function shall be to identify major activities
fixing targets, keeping track thereof, monitoring and coordinating with
various agencies within and without NTPC.
MATERIAL IDENTIFICATION (CLASSIFICATION & CODIFICATION):
NTPC projects have 40,000-50,000 items (spares, consumable and others) in
store at each of the power stations. Basic prerequisite in managing inventory
of such a large number of items is accurate identification of each part or raw
material. It must be possible to classify like items in order to control variety
and explore interchangeability and introduce standardization. As accurate
DSCMIT 78
description would involve a lengthy written explanation in many cases,
NTPC has adopted use of codes for describing inventory items.
The corporation has decided to use a 10 digit significant coding scheme for
assigning codes. In this scheme, a group of 10 digit positions denotes some
definition of that attribute. Exercise involved in identifying various attributes
and their values for each class of item is laborious and time consuming.
Therefore, till the time a code based on a crude, but faster method called
provisional/temporary code scheme.
As and when significant codes, also called permanent codes get developed,
temporary codes are replaced in a systematic fashion.
Digit 1 2 3 4 5 6 7 8 9 10
Position Main sub group will Location S.I. No. Check Group always be ‘00’ code digit
DSCMIT 79
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HUMAN RESOURCE IN NTPC
People Resource are Planned, managed and improved
NTPC believes in achieving organizational excellence through Human
Resource and credits its success to the strong performance focus &
organization loyalty of its employees. Our human Resource philosophy,
which is based on the “NTPC HR Model” can be captured in its HR Vision.
Human Resource Vision
“To enable our people to be family of committed worldclass
professionals, making NTPC a learning organization”
HR department has been playing a strategic role in NTPC. It has been
dynamic partner in achieving excellence through the most vital asset of the
organization, its human resources. The HR team has worked hand in hand
with the line managers for making NTPC a preferred employer in the power
Sector. The unique NTPC HR model stand on four pillars of culture
Building, Competences Building, Commitment Building and System
Building. These pillars guide all HR initiative towards building
commitment, culture and competencies of the company’s Human Resource
and also channelise all HR initiatives so as to develop a system orientation.
The HR function at Corporate Centre, formulates vision, strategy and policy
while the Regional Head Quarter is empowered as a growth center and
enabler. The sites such as Unchahar power station act as implementer as well
as cost / profit centers.
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Inputs from projects are taken through interfacing forums of management as
well as through feedback and reporting system.
The employees and their representatives have scheduled meetings with the
management at project level under various forums. A communication matrix
has been developed to streamline such interactions within the organization.
During these meetings the issues that are raised by the employee
representatives on behalf of the employees and need to be addressed at
policy level in Corporate Centre are taken up by Head of HR during various
planned interactions among the HR Executives of entire NTPC.
Employee Profile
NTPC Unchahar has strength of 413 executives, 23 supervisors and 674
workers. The executive team has a strong professional qualification base.
The core function like O&M, HR, Contracts and materials, Finance, Projects
are carried out by our dedicated and highly qualified employees. Non core
activities like housekeeping and security have been out-sourced through
agencies that are expert in their own areas. A compulsory annual medical
checkup is carried out for employees above 40 years once in every two years
and annually for people above 45 years and people working in hazardous
area.
Recruitment
The recruitment of executive is done at Corporate Centre but the
requirement of the same is sent by the project. The requirement of
executives is assessed by effective manpower planning process at site.
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The non – executive are required at the project. The requirement is done on
an all India basis and selection techniques like trade test/ written test,
interview are adopted to select the best candidate for the post. Succession
planning is done at middle management level in the project wherein
executives are identified in specific areas/ departments and are groomed for
position of group head by giving suitable exposure at work, training to
develop requisite managerial & potential competencies etc.
Appraising and helping people improve their performance
The Key Performance Areas are cascaded downward from the company’s
vision/ mission to the individual goals. Since the basic philosophy of NTPC,
which is also reflected in the HR Vision of the company that all employees
should be given equal opportunity to learn, grow and develop in the
organization, only merit is taken into consideration for growth. There is no
distinction in remuneration or opportunities and no difference is made in
allotment of job or terms of payment based on location, city or gender.
The fairness on employment and the satisfaction of employees with respect
to salary & wages along with the open culture of the company has very
explicitly been brought out in employee surveys.
Communicating performance score and development feedback is critical to
create transparency in the system and to make the performance management
system more acceptable to employees. It reinforces good performance by
employees. A transparent communication and feedback mechanism would
also enable development of coaching and mentoring relationship between
superior and subordinates.
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Promotion System
The current promotion system at NTPC provides for time-based, regulated
promotions based on merit, cluster- wise vacancies are notified and
communicated to employees.
People’s knowledge and competencies are identified, developed and
sustained.
NTPC’s stated HR strategy requires “training to be used as a tool for
creating the right attitude and developing competencies among the
employees”. Training is also required to be develop employees knowledge
and skills. With a view to serve the above objectives, NTPC has evolved a
comprehensive training infrastructure. Since Human Resource of the
company is it’s most valuable asset, great importance is attached to their
selection.Utmost care is given to match the skills of the employees of the
company who are indicated on the basis of specific educational qualification,
experience & skills at various levels in the organizational hierarchy. Based
on the knowledge, these employees are posted and further promoted.
People are involved and empowered
Various efforts have been made at NTPC FGUTPP where people are
encouraged to work as individual and in term to initiate improvement
activities like Professional Circle, Quality Circle, NTPC Open Competition
For Executive Talent (NOCET), Suggestion Scheme and Think tank
involving people and empowering them.
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The achievement of the employees/ teams is recognized through a
welldrafted reward & recognized policy of the company. As per the policy
any good work done by an employee or a team is immediately recognized by
giving them a “ Latter of Appreciation”. If an employee continues to do
good work during the entire month, he is rewarded with “Star of the Month”.
A yearlong performance for a non – executive is praised and recognized by
giving him “Employee of the Year” award and an executive by giving him
“Power Excel Award”. All these awards are given in a public ceremony,
meeting of HODs or during a project seminar.
The participation & achievement of employees in various quality initiative
like Quality Circle, suggestion scheme professional Circle, NOCET etc. is
rewarded publicly during 26th January, 15th August, Raising Day function
etc.
People are rewarded, recognized and cared for
The manpower of NTPC FGUTPP was effectively utilized by redeploying
them in two newly constructed units of 210 MW by giving them suitable
training and hence enhancing over all productivity of manpower. Keeping in
view the increased responsibility, the remuneration of the employee has been
suitably hiked in the last pay revision.
NTPC Reward & Recognition
NTPC believes in the power of People and it is the professional philosophy
of the management to create an enabling organizational culture for people to
demonstrate their creativity, initiative and involve in holistic development,
through recognition and celebration of achievements.
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Keeping the above in mind, a bouquet of special Rewards and Recognition
Schemes is evolved with an objective of reinforcing good work and behavior
of employees in order to achieve organizational excellence.
BEST PRACTICES OF HR DEPARTMENT
Starting of Best Teachers’ award for The Performing Teachers in the
Schools
Three no. of schools are presently functioning in NTPC township, out of
which two schools are based on CBSE pattern and one school is based on
UP board.
Teachers play an important role in imparting quality education amongst
children, which is reflected in good results of the school. Good performance
of children in various exams is not only a matter of great satisfaction for the
parents but also give recognition & name to the school & NTPC in totality.
Award for best teacher in subject: Physics, Chemistry, Mathematics,
Biology and Computer. The criteria for selection of the best teacher is:
Class Average.
Class Average for the subject should essentially be more then 75%.
If the difference between the class average of the two teachers is less
then 5% then number of students getting more then 80% shall be the
criteria.
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Payments of all the Dues to the Employee on the Day of Superannuation
All the dues of an employee like PF, gratuity, leave encashment & post
retirement medical benefits are cleared on the day of superannuation &
cheques & requisite documents are given to him. This has resulted in a lot of
satisfaction amongst retiring employees and they continue to have a sense of
pride & ownership for the organization that they have served for such a long
time.
E- Attendance System
An E-Attendance system has been initiated at NTPC Unchahar w.e.f.
1.12.03. The system has following features :
Information to all HODs as regards the total number of employees
from their departments who have come inside the plant premises on a
particular day.
Ensures availability of employees in the plant premises on time &
inculcate a culture of discipline in the plant.
Integration of the present E-Attendance system to the payroll system,
will not require manual intervention related to employee attendance
resulting in saving of productive man-hours.
Regular Visit of GM to the Residence of Employees
General Manager visits the residence of employees on a regular basis, during
these visits, he interacts with the employees & his family members regarding
quality of life in township, well being of ladies & children. Promptness of
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civil and electrical maintenance works, condition of parks & on going
culture & sport activity in the township including schools.
Regular Interaction of Physically Challenged Employees with GM for
Conductive Working Environment
NTPC, as part of its corporate social responsibility, recruited a number of
physically challenged persons. At NTPC Unchahar also 11 physically
challenged persons were recruited in the 1st phase & 06 physically
challenged person in the 2nd phase. GM & HOHR regularly interact with
these employees in order to elicit their well-being and also give them a
felling of togetherness. These efforts have resulted in an excellent
amalgamation of these employees in the work force of Unchahar and all of
them are presently working in their respective area with high morale.
Employee Development Centre
Here employee development centre is well equipped to provide training to
the employees for their respective areas. Training for the latest technologies
and concepts are arranged from time to time. The employees adopt those
ideas to their workplace and apart from this, the knowledge gained by them
is shared with other them members. Through seminars, Quality Circles,
Professional Circles etc. new developments when introduced or otherwise,
are given due publicity and familiarization training are organized for the
benefits of end users.
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Preparation of Training Plan for all the Employees Every Year
In NTPC Unchahar the training Plan provides a wide range of relevant
training programmes and helps a lot in competency building of employees.
The training plan is focused on attitude building, skill up gradation and
knowledge enhancement and will, therefore, be a great tool for competence
building of employees. Through this comprehensive training plan, the
training needs of all our employees are fully addressed.
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FINANCE ARE MANAGED
Financial strategies of Unchahar are derived from the long-term strategies of
NTPC. As per Central Electricity Regulatory Commission (CERC)
guidelines Availability Based Tariff (ABT) is applicable for Unchahar. The
benchmarks on operational and financial parameters are reviewed to fulfill
the expectations of the customer, that of low cost power. With the back drop
managing financial strategies of Unchahar are being framed to attain the
specified Return on Capital Employed (ROCE), generate additional profits
by optimizing operational parameters, maximize the productivity, cost
reduction by efficient management and cutting down the wasteful
expenditure.
Financial process and strategies are being continuously reviewed and
updated keeping in view the evolving trends in the industries. NTPC
prepared detailed financial manuals covering various aspects of finance and
accounts.
The stakeholder’s financial expectations are captured in the interaction with
financial institutions and through the yearly Memorandum of Understanding
(MOU) signed between NTPC and Government of India. The captured
expectations are cascaded through out the organization in the form of yearly
MOUs up to unit levels. Financial planning of the company and Unchahar
are made on five-year time horizon for micro level projections and annual
plan for yearly working. Budget planning is made for construction activities,
operational activities and capital addition schemes and financial parameters
DSCMIT 91
for effective review and monitoring, Budget process has played very vita
role in NTPC since inception. The MOU targets are supported with the
strategy of zero based budgeting for effective control and monitoring. This
strategy has yielded excellent results to NTPC for it’s all round performance
including financial achievements over the years. The financial review of
controllable expenses is done on monthly basis in Site Management
Committee (SMC) and financial review meetings.
In various capital addition schemes, investment decisions are taken on cost
benefit analysis and on pay back calculation. Investment decisions are based
on the recoverability of cost out of tariff and ensuring effective resources
utilization. These proposals are put up to corporate budget and Operation
Services group for their analysis and approval by Chairman and Managing
Director (CMD).
Several financial initiative have been taken in recent times to reduce
inventory, remove un wanted processes and introduce new processes to
bring about customer focus. Several financial practices followed in this
project have yielded positive results in its process management, resulting in
effective resource utilization.For managing working capital, Unchahar is
having a well-defined policy and at the time of conceiving the project,
certain norms were built in and accordingly certain portions are capsulated
through long term and short term sources. Again day-to-day working capital
management is done through effective collection mechanism, collection
through LC, credit from fuel suppliers and with short-term loan arrangement
with banks. Capital expenditure is approved for all the projects through
yearly capital budget mechanism and funded from long-term sources being
DSCMIT 92
arrange from financial institution and through bonds issue. Cash
management is done on centralized basis in order to derive the synergy of
funds. All collection from various clients are being done through banks at
regional office and remitted instantly to corporate office. Remittance to
various projects is being done on daily need basis. Daily funds position at
various sites is being monitored through daily reports and this effective
funds management has resulted in excellent earnings of the company.
Financial Soundness
To maintain and improve the financial soundness of NTPC by prudent
management of the financial resources.
To continuously strive to reduce the cost of capital through prudent
management of deployed funds, leveraging opportunities in domestic
and international financial markets.
To develop appropriate commercial policies and processes which
would ensure remunerative tariffs and minimise receivables.
To continuously strive for reduction in cost of power generation by
improving operating practices.
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FINANCIAL OUTCOMES
Station Turnover
Graph-6
Station Gross Margin-(Profit)
Graph-7
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Station Profit/ Turnover(%)
Graph-8
Above figures are showing Unchahar station’s turnover, gross margin
(profit), station profit per turnover and station’s profit per employee. The
reduction in performance as compared to Memorandum of Understanding
(MOU) in the financial years 02-03 & 03-04 are mainly due to normative
fixed charges, revision of Tariff and implementation of Availability Based
Tariff (ABT) regime. The drastic reduction in 03-04 is due to reduction in
Tariff and adjustments made for the previous year’s Tariff revision.
Last Figure shows performance in terms of operational and financial
management. It is noteworthy that Unchahar has consistently performed well
in terms of operational parameters and the financial parameters in few cases
could not be achieved as mentioned above but have been surpassing the stiff
MOU targets given by the company.
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POWER GENERATION PROCESS
Unchahar generates power using thermal energy of coal combustion. The
coal received at the station is crushed to size 25 mm and transported to the
unit bunkers.This coal is further pulverized in the coal mills and then burnt
in the boiler, which converts the water in to high- pressure steam and high
temperature steam (150 Kg/cm2 & 540 c). this steam rotates the turbine and
generator to produce electric power the power thus generated is transmitted
through 220 KV lines and distributed to the beneficiary states
DSCMIT 97
COAL
HANDLING
PLANT
(CHP)
BUNKERS /
MILLS
BOILERSTURBO
GENERATOR
TRANSFORMER/
SWITCH YARD
ASH
CEMENT / BRCKS
Coal Steam
Water
Electricity
The fuel gas coming out from the boiler is let out to the atmosphere, through
the Electrostatic precipitator (having an efficiency of 99.97%) where the dry
ash is collected and sent to silos keeping the environment clean. The ash
collected in silos is sent in bulkers/ closed trucks for cement manufacturing.
It is also used for manufacture of ash bricks in NTPC Unchahar.
PRODUCT DELIVERY
The quantity of electricity produced at any instant by Unchahar is as per
customer requirement and governed by a mechanism of declaring capability
for the next day generation and receiving schedules for the current date.
However, depending on the time specific demand on the Grid, Northern
Region Load Dispatch Centre (NRLDC) gives backing down/ normalization
of generation massages. The power generated is fed into the Northern grid.
The power so received by Northern grid is supplied to different states in the
northern region tied up with Unchahar station. With regard to the
commercial aspects, station commercial section provides all metering and
billing data to commercial section of Northern Region Head Quarters
(NRHQ) who in turn rise the bill and follow up with the NRLDC and state
concerned for realization of dues. The certification of generation of each
month, applicable tariff structure. Power quality and quantity related issues
are discussed in stakeholders meeting and commercial issues are taken up by
site Commercial department and NRHQ Commercial Departments with
customer representatives.
DSCMIT 98
RECYCLING
There is no reject in the product produced at Unchahar and hence does
warrant any recycling. However, Unchahar is strongly committed to
utilization of ash generated as a result of its process.The process design
provides for collection and storage of dry fly ash in silon on a continuous
basis. The promotional activities under ken and incentives provided by
Unchahar have enabled to continuously improve the fly ash utilization levels
to more then 100% since last two years.
Unchahar Performance
Stage – I GenerationGraph-9
Stage-II Generation (MU)Graph-10
DSCMIT 99
Financial year
MU
Financial year
STATION POWER LOAD FACTOR (PLF) %Graph-11
DSCMIT 100
%
Financial year
%
CHAPTER-4 Study of specific management problem
DSCMIT 101
SPECIFIC MANAGEMENT PROBLEM
Codification And Updation
Every equipment in the company which is being use like boilers, cylinder,
turbines etc. are having a code with 10 digits. Every machine or every
equipment is recognized by code, we can get all information and features of
any equipment through this code. This code was in use when the company
was incorporated but the features are being changed day by day for eg.
company was using computer when it started, the code was declared that
time, that time computer was having different features compare to this time
for eg. that time they were using Windos 98 software and this time they are
using Windos Xp and Windos Vista software, when we will open the code
that will give the information and features of old version because the code is
not updated. Due to this problem the company is facing a lot of problem.
Suggestion:
DSCMIT 102
A special team should be formed who should be assigned with the
job of updating the features (5 to 6 member).
Post coding system should be renewed and modern coding system
should be implemented.
Regular monitoring should be done by supervisor in order to see
whether updating is going properly or not.
An online system should be there so that on line processing should
be done or updation is going on or not.
Recommendation:
Management should take more responsibility in order to
make there process more effective.
An HR policy should be formed in order to make updation policy