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

GURU GHASIDAS VISHWAVIDYALAYA, BILASPUR (C.G.)495009

(A Central University)

DECLARATION

I, 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: Namrata gupta

Place: MBA II Semester 2010-11

PREFACE

MBA 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.

ACKNOWELDGEMENT

I 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.

CONTENTS

1. INTRODUCTION TO NTPC LTD. 1

2. VISSION AND MISSION 2

3. OVERVIEW 3

4. POWER GENERATION AT NTPC 4

5. DIVERSIFIED GROWTH 8

6. SUBSIDIARIES 10

7. FUTURE CAPACITY ADDITIONS 12

8. NTPC LTD. SIPAT 20

9. HRM AT NTPC LTD. 22

10. EMPLOYEE BENEFITS 26

11. OBJECTIVES OF EMPLOYEE BENEFITS 28

12. WHO SHOULD RECEIVE BENEFITS 29

13. TYPES OF BENEFITS 29

14. ADVANTAGES OF EMPLOYEE BENEFITS 35

15. EMPLOYEE BENEFITS AT NTPC LTD. 36

16. ALLOWANCES 39

17. LOANS AND ADVANCES 43

18. SOCIAL SECURITY 49

19. LEAVES AND HOLIDAYS 53

20. PERFORMANCE RELATED PAY 64

21. ADDITIONAL BENEFITS 66

22. CONCLUSION 69

23. BIBLIOGRAPHY 70

NTPC LTD. INTRODUCTION

Type State-owned Public enterprise 

Traded as BSE: 532555

NSE: NTPC

Founded 1975

Headquarters Delhi, India

Key people Arup Roy Choudhury

(Chairman & MD)

Products Electricity

Revenue   50,188.52 crore (US$11.19 billion)(2010)

Net income 8,837.65 crore (US$1.97 billion)(2010)

Employees 25,944 (2010)

Website www.ntpc.co.in

Vision And Mission

Vision“To be the world’s largest and best power producer, powering India’s growth.”

Mission

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

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

and contribute to society.”

Core Values – BCOMIT

Business Ethics

Customer Focus

Organizational & Professional Pride

Mutual Respect & Trust

Innovation & Speed

Total Quality for Excellence

OVERVIEW

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

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

the entire value chain of the power generation business. Apart from power generation,

which is the mainstay of the company, NTPC has already ventured into consultancy,

power trading, ash utilisation and coal mining. NTPC ranked 341st in the ‘2010, Forbes

Global 2000’ ranking of the World’s biggest companies. NTPC became a Maharatna

company in May, 2010, one of the only four companies to be awarded this status. 

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 NTPC’s 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 NCRHQ Delhi

2 ER-I, HQ Patna

3 ER-II, HQ Bhubaneswar

4 NRHQ Lucknow

5 SR HQ Hyderabad

6 WR-I HQ Mumbai

7 Hydro HQ Delhi

8 WR-II HQ Raipur

POWER BURDEN

India, 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 60–75% 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 NTPC

Presently, 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 STATIONS

With 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)STATE

COMMISSIONED

CAPACITY(MW)

1. Singrauli Uttar Pradesh 2,000

2. Korba Chhattisgarh 2,600

3. Ramagundam Andhra Pradesh 2,600

4. Farakka West Bengal 2,100

5. Vindhyachal Madhya Pradesh 3,260

6. Rihand Uttar Pradesh 2,000

7. Kahalgaon Bihar 2,340

8. NCTPP, Dadri Uttar Pradesh 1,820

9. Talcher Kaniha Orissa 3,000

10. Feroze Gandhi, Unchahar Uttar Pradesh 1,050

11. Talcher Thermal Orissa 460

12. Simhadri Andhra Pradesh 1,500

13. Tanda Uttar Pradesh 440

14. Badarpur Delhi 705

15. Sipat Chhattisgarh 1,660

Total 27,535

COAL BASED JOINT VENTURES

COAL BASED

(Owned by JVs)STATE

COMMISSIONED

CAPACITY

1. Durgapur West Bengal 120

2. Rourkela Orissa 120

3. Bhilai Chhattisgarh 574

4. Kanti Bihar 110

5. IGSTPP, Jhajjar Haryana 500

Total 1,424

GAS/LIQUID FUEL BASED POWER STATIONS

GAS BASED

(Owned by NTPC)STATE

COMMISSIONED

CAPACITY(MW)

1. Anta Rajasthan 413

2. Auraiya Uttar Pradesh 652

3. Kawas Gujarat 645

4. Dadri Uttar Pradesh 817

5. Jhanor-Gandhar Gujarat 648

6.Rajiv Gandhi CCPP

KayamkulamKerala 350

7. Faridabad Haryana 430

Total 3,955

GAS BASED JOINT VENTURES:

COAL BASED

(Owned by JVs)STATE

COMMISSIONED

CAPACITY

1. RGPPL Maharashtra 1940

Total 1940

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 STATEAPPROVED

CAPACITY(MW)

1. Koldam (HEPP) Himachal Pradesh 800

2. Tapovan Vishnugad (HEPP) Uttarakhand 520

3.Singrauli CW Discharge(Small

Hydro)Uttar Pradesh 8

Total 1,328

DIVERSIFIED GROWTH

As 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 NTPC’s 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

and to 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 of

capacity 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,

NTPC has 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 owned

subsidiary was created for trading power leading to optimal utilization of NTPC’s 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 power

stations 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), a

wholly 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 sector

necessitates 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 company’s 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 as

Vaishali 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 ADDITIONS NTPC 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 MW

Coal

1.Indira Gandhi STPP- JV with IPGCL & HPGCL ( 3

x 500)Haryana 1000

2. Sipat I (2 x 660) Chhattisgarh 1320

3. Simhadri II Unit - IV( 500) Andhra Pradesh 500

4. Vallur I -JV with TNEB ( 2 x 500) Tamilnadu 1000

5. Vallur Stage-I Phase-II  -JV with TNEB ( 1 x 500) Tamilnadu 500

6. Bongaigaon(3 x 250) Assam 750

7. Mauda ( 2 x 500) Maharashta 1000

8. Rihand III(2X500) Uttar Pradesh 1000

9. Vindhyachal-IV (2X500) Madhya Pradesh 1000

10. Muzaffarpur Expansion (2x195) – JV with BSEB Bihar 390

11. Nabinagar TPP-JV with Railways (4 x 250) Bihar 1000

12. Barh II (2 X 660) Bihar 1320

13. Barh I (3 X 660) Bihar 1980

Hydro

1. Koldam HEPP ( 4 x 200)Himachal

Pradesh800

2. Tapovan Vishnugad HEPP (4 x 130) Uttarakhand 520

3. Singrauli CW Discharge(Small Hydre) Uttar Pradesh 8

Total 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 : Dipika Mines of SECL Korba.

Transportation of Coal : 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 sub critical boiler for lower fuel

consumption

Conservation of Natural Resources& Ecology.

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

Rs40.3966bn)

Beneficiary State

GUJRAT 42%

MADHYA PRADESH 23%

CHHATISGARH 17%

RAILWAYS 4%

GOA 2%

DAMAN AND DIU 0.60%

DADRA AND NAGAR HAVELI 0.40%

UNALLOCATED 11%

Total 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.

NTPC’S HR VISION

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

RECRUITMENT

NTPC 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

nation-wide open competitive examinations and campus recruitments. Hiring is followed

by 52 weeks of fully paid induction training.

CAREER ADVANCEMENT & OPPORTUNITIES

NTPC 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 & RECOGNITIONS

NTPC 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, COMPETE

NTPC 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-LIFE

NTPC 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 NTPC

To 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 & DEVELOPMENT

NTPC 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 SCHEMES

To 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 FEEDBACK

NTPC 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.

AWARDS

NTPC 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.