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SUMMER TRAINING REPORT At NTPC LTD. SIPAT Submitted for the Partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA) Submitted By: NAMRATA GUPTA ROLL NUMBER: 2011 DEPARTMENT OF MANAGEMENT STUDIES
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Summer Training Report

Aug 27, 2014

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SUMMER TRAINING REPORT AtNTPC LTD. SIPAT Submitted for the Partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA)

Submitted By: NAMRATA GUPTA ROLL NUMBER:

2011 DEPARTMENT OF MANAGEMENT STUDIES GURU GHASIDAS VISHWAVIDYALAYA, BILASPUR (C.G.)495009 (A Central University)

DECLARATIONI, Namrata Gupta, a student of MBA II Semester in the year 2010-2011 (Roll No.) hereby declare that, I have undergone training at NTPC Ltd. SIPAT, Bilaspur (C.G.). This report is an original work carried out by me and the report has not been submitted to any other University for the award of any degree or diploma.

Date: Place:

Namrata gupta MBA II Semester 2010-11

PREFACEMBA is a stepping stone to management career. In order to achieve practical, positive and concrete results, the classroom learning need to be effectively fed to the realities of the situation existing outside the classroom. This is practically true for management. Human resource is one of the interesting subject which is back bone of every organization. To develop healthy managerial and administrative skills in the potential managers it is necessary that theoretical knowledge must be supplemented with exposure of real environment. Actually it is very vital for the management and it is in the practical training that the measuring of management is itself realized. The report on Employee Benefits at NTPC Ltd. SIPAT is a study about the benefit practices prevailing in NTPC Ltd. to boost the morale of employees and to develop a sense of belongingness and security among them and thereby motivating them to contribute to the attainment of the objectives of the organization.

ACKNOWELDGEMENTI am truly thankful to all the faculties / guides who imparted the lectures on various subjects/ topics and took us to the plant in a guided study visit along with detailed explaining about the plant and machinery. I specially would like to thank Mr. Wilson Abraham (Manager HR), Mr. N. Surenthiran (Sr. Officer HR), Mr. Abhishek Gupta (ET), Mr.Alok Ranveer (Manager HR) and Mr. Virendra Pratap (Sr. Officer HR) without them I would not have completed my project successfully. I would also like to thank the human resource department / employee development for permitting and organizing the training program for us.

CONTENTS1. 2. 3. 4. 5. 6. 7. 8. 9.

INTRODUCTION TO NTPC LTD. VISSION AND MISSION OVERVIEW POWER GENERATION AT NTPC DIVERSIFIED GROWTH SUBSIDIARIES FUTURE CAPACITY ADDITIONS NTPC LTD. SIPAT HRM AT NTPC LTD. 22

1 2 3 4 8 10 12 20

10. EMPLOYEE BENEFITS 11. OBJECTIVES OF EMPLOYEE BENEFITS

26 28 29 29 35 36 39 43 49 53 64 66

12. WHO SHOULD RECEIVE BENEFITS13. TYPES OF BENEFITS 14. ADVANTAGES OF EMPLOYEE BENEFITS 15. EMPLOYEE BENEFITS AT NTPC LTD. 16. ALLOWANCES 17. LOANS AND ADVANCES 18. SOCIAL SECURITY 19. LEAVES AND HOLIDAYS

20. PERFORMANCE RELATED PAY21. ADDITIONAL BENEFITS

22. CONCLUSION 23. BIBLIOGRAPHY

69 70

NTPC LTD. INTRODUCTION

Type Traded as

State-owned Public enterprise BSE: 532555 NSE: NTPC

Founded Headquarters Key people

1975 Delhi, India Arup Roy Choudhury (Chairman & MD)

Products Revenue Net income Employees Website

Electricity 50,188.52 crore (US$11.19 billion)(2010) 8,837.65 crore (US$1.97 billion)(2010) 25,944 (2010) www.ntpc.co.in

Vision And MissionVisionTo be the worlds largest and best power producer, powering Indias growth.

MissionDevelop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribute to society.

Core Values BCOMIT

Business Ethics Customer Focus Organizational & Professional Pride Mutual Respect & Trust Innovation & Speed Total Quality for Excellence

OVERVIEWIndias largest power company, NTPC was set up in 1975 to accelerate power development in India. NTPC is emerging as a diversified power major with presence in the entire value chain of the power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 341st in the 2010, Forbes Global 2000 ranking of the Worlds biggest companies. NTPC became a Maharatna company in May, 2010, one of the only four companies to be awarded this status.

The total installed capacity of the company is 34,854 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 5 stations are coal based & another station uses naphtha/LNG as fuel. The company has set a target to have an installed power generating capacity of 1,28,000 MW by the year 2032. The capacity will have a diversified fuel mix comprising 56% coal, 16% Gas, 11% Nuclear and 17% Renewable Energy Sources(RES) including hydro. By 2032, non fossil fuel based generation capacity shall make up nearly 28% of NTPCs portfolio. NTPC has been operating its plants at high efficiency levels. Although the company has 17.75% of the total national capacity, it contributes 27.40% of total power generation due to its focus on high efficiency. In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and 5.25% as offer for sale by Government of India. NTPC thus became a listed company in November 2004 with the Government holding 89.5% of the equity share capital. In February 2010, the Shareholding of Government of India was reduced from 89.5% to 84.5% through Further Public Offer. The rest is held by Institutional Investors and the Public.

NTPC HEAD QUARTERS

NTPC Limited is divided in 8 Head Quarters Sr. No. HEADQUARTER CITY 1 2 3 4 5 6 7 8 NCRHQ ER-I, HQ ER-II, HQ NRHQ SR HQ WR-I HQ Hydro HQ WR-II HQ Delhi Patna Bhubaneswar Lucknow Hyderabad Mumbai Delhi Raipur

POWER BURDENIndia, as a developing country is characterized by increase in demand for electricity and as of moment the power plants are able to meet only about 6075% of this demand on an yearly average. The only way to meet the requirement completely is to achieve a rate of power capacity addition (implementing power projects) higher than the rate of demand addition. NTPC strives to achieve this and undoubtedly leads in sharing this burden on the country.

POWER GENERATION AT NTPCPresently, NTPC generates power from Coal and Gas. With an installed capacity of 34,854 MW, NTPC is the largest power generating major in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution. With an increasing presence in the power value chain, NTPC is well on its way to becoming an Integrated Power Major.

COAL BASED POWER STATIONSWith 15 coal based power stations, NTPC is the largest thermal power generating company in the country. The company has a coal based installed capacity of 27,535 MW.

COAL

BASED(Owned

by NTPC) 1. Singrauli 2. Korba 3. Ramagundam 4. Farakka 5. Vindhyachal 6. Rihand 7. Kahalgaon 8. NCTPP, Dadri 9. Talcher Kaniha 10. Feroze Gandhi, Unchahar 11. Talcher Thermal 12. Simhadri 13. Tanda 14. Badarpur 15. Sipat Total

STATE Uttar Pradesh Chhattisgarh Andhra Pradesh West Bengal Madhya Pradesh Uttar Pradesh Bihar Uttar Pradesh Orissa Uttar Pradesh Orissa Andhra Pradesh Uttar Pradesh Delhi Chhattisgarh

COMMISSIONED CAPACITY(MW) 2,000 2,600 2,600 2,100 3,260 2,000 2,340 1,820 3,000 1,050 460 1,500 440 705 1,660 27,535

COAL BASED JOINT VENTURESCOAL 1. 2. 3. 4. 5. Total BASED STATE West Bengal Orissa Chhattisgarh Bihar Haryana COMMISSIONED CAPACITY 120 120 574 110 500 1,424

(Owned by JVs) Durgapur Rourkela Bhilai Kanti IGSTPP, Jhajjar

GAS/LIQUID FUEL BASED POWER STATIONSGAS BASED (Owned by NTPC) 1. Anta STATE Rajasthan COMMISSIONED CAPACITY(MW) 413

2. Auraiya 3. Kawas 4. Dadri 5. Jhanor-Gandhar 6. Rajiv Gandhi CCPP Kayamkulam 7. Faridabad Total

Uttar Pradesh Gujarat Uttar Pradesh Gujarat Kerala Haryana

652 645 817 648 350 430 3,955

GAS BASED JOINT VENTURES: COAL BASED STATE Maharashtra COMMISSIONED CAPACITY 1940 1940

(Owned by JVs) 1. RGPPL Total

HYDRO BASED POWER PROJECTS (Under Implementation) NTPC has increased thrust on hydro development for a balanced portfolio for long term sustainability. The first step in this direction was taken by initiating investment in Koldam Hydro Electric Power Project located on Satluj river in Bilaspur district of Himachal Pradesh. Other hydro project under construction is Tapovan Vishnugad. On all these projects construction activities are in full swing.

HYDRO BASED

STATE

APPROVED CAPACITY(MW) 800 520 8 1,328

1. Koldam (HEPP) Himachal Pradesh 2. Tapovan Vishnugad (HEPP) Uttarakhand Singrauli CW Discharge(Small 3. Uttar Pradesh Hydro) Total

DIVERSIFIED GROWTHAs per new corporate plan, NTPC plans to become a 75 GW company by the year 2017 and envisages to have an installed capacity of 128 GW by the year 2032 with a well diversified fuel mix comprising 56% coal, 16% gas, 11% nuclear energy, 9% renewable energy and 8% hydro power based capacity. As such, by the year 2032, 28% of NTPCs installed generating capacity will be based on carbon free energy sources. Further, the coal based capacity will increasingly be based on high-efficient-low-emission technologies such as Super-critical and Ultra-Super-critical. Along with this growth, NTPC will utilize a strategic mix of options to ensure fuel security for its fleet of power stations. Looking at the opportunities coming its way, due to changes in the business environment, NTPC made changes in its strategy and diversified in the business adjacencies along the energy value chain. In its pursuit of diversification NTPC has developed strategic alliances and joint ventures with leading national and international companies. NTPC has also made long strides in developing its Ash Utilization business.

HYDRO POWER: In order to give impetus to hydro power growth in the country andto have a balanced portfolio of power generation, NTPC entered hydro power business with the 800 MWs Koldam hydro project in Himachal Pradesh. Two more projects have also been taken up in Uttarakhand. A wholly owned subsidiary, NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW.

RENEWABLE ENERGY: In order to broad base its fuel mix NTPC has plan ofcapacity addition of about 1,000 MW through renewable resources by 2017.

NUCLEAR POWER: A Joint Venture Company "Anushakti Vidhyut Nigam Ltd."has been formed (with 51% stake of NPCIL and 49% stake of NTPC) for development of nuclear power projects in the country.

COAL MINING: In a major backward integration move to create fuel security, NTPChas ventured into coal mining business with an aim to meet about 20% of its coal requirement from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint venture route.

POWER TRADING: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly ownedsubsidiary was created for trading power leading to optimal utilization of NTPCs assets. It is the second largest power trading company in the country. In order to facilitate power trading in the country, National Power Exchange Ltd., a JV of NTPC, NHPC, PFC and TCS has been formed for operating a Power Exchange.

ASH BUSINESS: NTPC has focused on the utilization of ash generated by its powerstations to convert the challenge of ash disposal into an opportunity. Ash is being used as a raw material input by cement companies and brick manufacturers. NVVN is engaged in the business of Fly Ash export and sale to domestic customers. Joint ventures with cement companies are being planned to set up cement grinding units in the vicinity of NTPC stations.

POWER DISTRIBUTION: NTPC Electric Supply Company Ltd. (NESCL), awholly owned subsidiary of NTPC, was set up for distribution of power. NESCL is actively engaged in Rajiv Gandhi Gramin Vidyutikaran Yojana programme for rural electrification.

EQUIPMENT MANUFACTURING: Enormous growth in power sectornecessitates augmentation of power equipment manufacturing capacity. NTPC has formed JVs with BHEL and Bharat Forge Ltd. for power plant equipment manufacturing. NTPC has also acquired stake in Transformers and Electricals Kerala Ltd. (TELK) for manufacturing and repair of transformers.

SUBSIDIARIES

NTPC ELECTRIC SUPPLY COMPANY LTD. (NESCL)The company was formed on August 21, 2002. It is a wholly owned subsidiary company of NTPC with the objective of making a foray into the business of distribution and supply of electrical energy, as a sequel to reforms initiated in the power sector.

NTPC VIDYUT VYAPAR NIGAM LTD. (NVVN)The company was formed on November 1, 2002, as a wholly owned subsidiary company of NTPC. The companys objective is to undertake sale and purchase of electric power, to effectively utilise installed capacity and thus enable reduction in the cost of power. NVVN

NTPC HYDRO LTD. (NHL)The company was formed on December 12, 2002, as a wholly owned subsidiary company of NTPC with an objective to develop small and medium hydroelectric power projects of up to 250 MW.

PIPAVAV POWER DEVELOPMENT CO. LTD. (PPDCL)A memorandum of understanding was signed between NTPC, Gujarat Power Corporation Limited (GPCL) and Gujarat Electricity Board (GEB) in 2004 for development of a 1000 MW thermal power project at Pipavav in Gujarat by forming a new joint venture company between NTPC and GPCL with 50:50 equity participation. Pursuant to the decision of Gujarat Government, NTPC Ltd. has dissociated itself from this company. PPDCL is under winding up.

KANTI BIJLEE UTPADAN NIGAM LIMITED, (formerly known asVaishali Power Generating Company Limited)

To take over Muzaffarpur Thermal Power Station (2*110MW), a subsidiary company named Vaishali Power Generating Company Limited (VPGCL) was incorporated on September 6, 2006 with NTPC contributing 51% of equity and balance equity was contributed by Bihar State Electricity Board. This company was formed to renovate the existing unit and run the plant. The second unit has been successfully re-synchronised on October 17, 2007 after 4 years of being idle. Renovation and modernisation of the first unit is under progress. The company was rechristened as Kanti Bijlee Utpadan Nigam Limited on April 10, 2008.

BHARATIYA RAIL BIJLEE COMPANY LIMITED (BRBCL)A subsidiary of NTPC under the name of Bharatiya Rail Bijlee Company Limited was incorporated on November 22, 2007 with 74:26 equity contribution from NTPC and Ministry of Railways, Govt. of India respectively for setting up of four units of 250 MW each of coal based power plant at Nabinagar, Bihar. Investment approval of the project was accorded in January, 2008.

FUTURE CAPACITY ADDITIONSNTPC has formulated a long term Corporate Plan upto 2032. In line with the Corporate Plan, the capacity addition under implementation stage is presented below: PROJECT STATE Coal Indira Gandhi STPP- JV with IPGCL & HPGCL ( 3 x 1. Haryana 500) 2. Sipat I (2 x 660) Chhattisgarh 3. Simhadri II Unit - IV( 500) Andhra Pradesh 4. Vallur I -JV with TNEB ( 2 x 500) Tamilnadu 5. Vallur Stage-I Phase-II -JV with TNEB ( 1 x 500) Tamilnadu 6. Bongaigaon(3 x 250) Assam 7. Mauda ( 2 x 500) Maharashta MW

1000 1320 500 1000 500 750 1000

8. Rihand III(2X500) 9. Vindhyachal-IV (2X500) 10. Muzaffarpur Expansion (2x195) JV with BSEB 11. Nabinagar TPP-JV with Railways (4 x 250) 12. Barh II (2 X 660) 13. Barh I (3 X 660) Hydro 1. Koldam HEPP ( 4 x 200) 2. Tapovan Vishnugad HEPP (4 x 130) 3. Singrauli CW Discharge(Small Hydre) Total

Uttar Pradesh Madhya Pradesh Bihar Bihar Bihar Bihar Himachal Pradesh Uttarakhand Uttar Pradesh

1000 1000 390 1000 1320 1980 800 520 8 14088

NTPC LTD. SIPAT

NTPC Sipat is located 22 Kms from the city of Bilaspur, Chattisgarh. NTPC Sipat is situated in Sipat Village which comes under the jurisdiction of Sipat Kotwali Police Station. The following are the major facts about NTPC Sipat:-

Capacity

:

Installed Capacity of 2980 MW

Source of Coal Transportation of Coal

: :

Dipika Mines of SECL Korba. By dedicated Merry Go Round System (Approx 42KM)

Source Water

:

From Hasdeo Right Bank Canal ( 22 KM)

Other Special Features

:

Higher Thermal Efficiency of Boiler over consumption Conservation of Natural Resources& Ecology.

sub critical boiler for lower fuel

State of the Art Technology for Environment Management. ESP with high efficiency of 99.98% 275 meter High Chimney. 100 meter wide green belt around the project site. Sub-merged ash dyke. Plantation of 15 lakh trees on different stages.

Land acquired:Private 2282 acres + Govt. 2050 acres = Total 4332 acres

Investment Approval Rs40.3966bn) Beneficiary State

: Rs123.6305bn (Stage I Rs83.2339bn & Stage II

GUJRAT MADHYA PRADESH CHHATISGARH RAILWAYS GOA DAMAN AND DIU DADRA AND NAGAR HAVELI UNALLOCATED Total

42% 23% 17% 4% 2% 0.60% 0.40% 11% 100%

State-run power major NTPC has started the first super critical 660 MW (not commercialized) unit at Sipat plant in Chhattisgarh. The plant, located in Bilaspur, has an installed capacity of 2,980 MW. With the commissioning of 660 MW, NTPC's installed capacity has increased to 34,854 MW, while the total operational capacity at Sipat plant is now 1,660 MW. The Sipat project has three units of 660 MW in stage I and 2 units of 500 MW in stage II, which are already operational. "The project shall have an installed capacity of 2,980 MW on completion of both the stages. NTPC has an operational capacity of over 8,000 MW in Western Region and work is progressing for over 4,000 MW capacity at Mouda, Vindhyachal, Sipat and Solapur. According to the statement given by the company, the company is focused on introduction of high efficiency supercritical and ultra super-critical coal-based power plants. The entity has floated tenders for 9 units each of 660 MW and 800 MW for its upcoming projects in 12th plan. "These supercritical units will achieve much higher generation efficiency and are critical components of NTPC's low carbon growth strategy," it added. The NTPC official said the Chhattisgarh government has begun supplying 120 million cusecs of water from its Hasdev Bango canal. This will continue for three years and in return the company would pay Rs.720 million annually to Chhattisgarh as water tax. In the meantime, the Central Water Commission will do a survey and submit the feasibility report for construction of an anicut on river Mahanadi, about 50 km from Sipat, to help the NTPC find a permanent solution to its water problems.

HUMAN RESOURCE MANAGEMENT AT NTPC LTD.'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at NTPC. The entire organization is strongly committed to the development

and growth of all its employees as individuals and not just as employees. Currently NTPC employ approximately 26,000 people . Competence building, Commitment building, Culture building and Systems building are the four building blocks on which its HR systems are based.

NTPCS HR VISION"To enable our people to be a family of committed world class professionals."

RECRUITMENTNTPC believes in the philosophy of 'Grow your own timber'. Its 'Executive Trainee' scheme was introduced in 1977 with the objective of raising a cadre of home grown professionals. First Division Graduate Engineers/ Post graduates are hired through nationwide open competitive examinations and campus recruitments. Hiring is followed by 52 weeks of fully paid induction training.

CAREER ADVANCEMENT & OPPORTUNITIESNTPC has a well established talent management system in place, to ensure that it deliver on its promise of meaningful growth and relevant challenges for our employees. Its talent

management system comprises PERFORMANCE MANAGEMENT, CAREER PATHS and LEADERSHIP DEVELOPMENT.

REWARDS & RECOGNITIONSNTPC has, from inception, created a culture of rewards and recognitions through celebration of various achievements and events and recognising the contributions behind such success.

INNOVATE, CREATE, COMPETENTPC has introduced numerous initiatives which seek to enhance the creativity, innovation, functional aptitude and teamwork of our employees. These initiatives include National Open Competition for Executive Talent (NOCET), Professional Circles, Quality Circles, Business Minds and Medha Pratiyogita (a quiz for our employees). A management journal called Horizon is published quarterly to enable the employees to share their ideas and experiences across the organisation.

QUALITY OF WORK-LIFENTPC is proud of its systems for providing a good quality of work-life for its employees. In addition to providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust amongst peers, superiors and subordinates. Away from hectic city life, NTPC townships provide an environment of serenity, natural beauty and close community living. Numerous welfare and recreation facilities including schools, hospitals and clubs are provided at the townships to enhance quality of life & the well being of employees and their families. An entire range of benefits, from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life.

KNOWLEDGE MANAGEMENT IN NTPCTo meet the ultimate objective of becoming a learning organisation, an integrated Knowledge Management System has been developed in NTPC, which facilitates tacit

knowledge in the form of learning and experiences of employees to be captured and summarized for future reference.

TRAINING & DEVELOPMENTNTPC subscribes to the belief that efficiency, effectiveness and success of the organization, depends largely on the skills, abilities and commitment of the employees who constitute the most important asset of the organization. Our Training Policy envisages a minimum of 7 man days of training per employee per year. We have developed our own comprehensive training infrastructure.

EDUCATION UP-GRADATION SCHEMESTo meet the academic aspirations of employees and match them with the needs of the organization, NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc. NTPC sponsors fixed size batches of employees who are inducted into these courses based on their performance rating in the company and their performance in the entrance exam conducted by the respective institute. Unlike other study leave and sabbaticals, employees undergoing these courses do not forego their salary or growth during the duration of the course.

SEEKING FEEDBACKNTPC actively seek and encourage employee feedback to ensure that its HR interventions and practices remain relevant and meaningful. IT regularly conducts Employee Satisfaction and Organizational Climate Surveys.

AWARDSNTPC derives immense satisfaction from the awards it receives and the resulting recognition they bestow. The awards are key indicators and milestones on its HR journey, and reinforce its HR philosophy and practices. NTPC has been awarded No.1, Best Workplace in India among large organizations for the year 2010, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times. The concept of

Corporate Social Responsibility is deeply ingrained in NTPC's culture. Through its expansive CSR initiatives, NTPC strives to develop mutual trust with the communities that surround its power stations.

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