Organization Study Conducted at NTPC, Korba

Organization Study Conducted at NTPC, Korba
SUMMER INTERNSHIP REPORT ON AN

ORGANIZATION STUDY CONDUCTED AT
NTPC LTD
KORBA SUPER THERMAL POWER STATION, KORBA
SUBMITTED TO
BANGALORE UNIVERSITY
IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE AWARD
OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
VIKAS KUMAR SONI
REG NO: 11XWCMA117
UNDER THE GUIDANCE OF
Mr. SIBA PRASAD SARANGI
(Lecturer, SAMS)
SCHOOL OF MANAGEMENT, SAMS, BANGALORE
SEPTEMBER, 2012
Sambhram Academy of Management Studies, Bangalore
EXECUTIVE SUMMARY
The organizational study is done in NATIONAL THERMAL POWER
CORPORATION LIMITED, KORBA. This study tells about the function of
company. Electricity is an important energy and it is uses in most of the industry,
etc. NTPC, Korba produced 2600MW Approved investment are Rs 2324 crores.
NTPC, Korba having its clients in various parts of India. It supplies to Madhya
Pradesh, Chhattisgarh, Maharashtra, Gujarat, Goa, Union Territories of Daman,
Diu, Dadra Nagar Haveli
To produce 2600MW electricity its requirements is 11.4 Million tons (approx.)
annual coal and 2.80 lakhs Cu.M/day water.
As a part of MBA programme under the Bangalore University a study has been
undertaken in NTPC. This internship training enables to know the realities of the
business and application of theoretical knowledge in practical environment.
Primary data has been collected from face to face interview with department heads,
managers and workers. The secondary data has been collected through website of
NTPC, company documents, annual reports, magazines and so on. A SWOT
analysis was done to find the strength, weakness, opportunities and threats of the
organization.
It was found that the organization encourages employee participation in the
management. With the help of formation of quality circles and mutual discussion
among the employees the company has been successful in solving work related
problems.
ACKNOWLEDGEMENT
This project is a product of the valuable insights, facts and experience I had with
various people in the organization.
Its my pleasure to express my deep sense of gratitude to Miss. PRACHI
CHAUHAN (HR department) for permitting me to undergo an in-plant training
in their esteemed organization and being my external guide. I thank him for his cooperation and valuable suggestions throughout the period of internship.
I convey my heart full thanks to my Principal Mr. K.C.JHON, Director Mr.
K.C.MISHRA, Internal guide Mr. SIBA PRASAD SARANGI, my parents and
all my friends for their support, encouragement and help, without which this report
could not have been successfully completed.
I am also grateful to the entire staff and professionals of NTPC for their guidance
and constructive co-operation in completion of this project.
Date:
VIKAS KUMAR SONI
Place: Bangalore
DECLARATION
I VIKAS KUMAR SONI hereby declare that the contents of this internship report
entitled AN ORGANISATION STUDY conducted at NTPC LIMITED,
KORBA SUPER THERMEL POWER STATION, KORBA are the outcome
of my original work. Further this report has not been submitted to any
Institution/University for award of any degree.
Place: - Bangalore
VIKAS KUMAR SONI
Date: -
GUIDE CERTIFICATE
This is to certify that the internship report entitled AN ORGANIZATION
STUDY conducted at NTPC LIMITED (KORBA SUPER THERMEL
POWER STATION), KORBA is an original work undertaken by VIKAS
KUMAR SONI in partial fulfillment of MBA course requirement of Bangalore
University. Throughout the process of the study, the candidate has worked under
my direct supervision and guidance.
Place: BANGALORE
Date:
Mr. SIBA PRASAD SARANGI

(Lecturer, SAMS)
CONTENTS
CHAPTER
PAGE
No.
1
TOPIC
INTRODUCTION TO THE INTERNSHIP STUDY
INDUSTRY PROFILE
COMPANY PROFILE
No.
1
2-7
8-37
RESEARCH METHODOLOGY
38-40
FUNCTIONAL DEPARTMENTS
41-66
SWOT ANALYSIS
67-70
FINDINGS, CONCLUSIONS & SUGGESTIONS
71-73
APPENDIXES
LIST OF TABLES
TABLE
DESCRIPTION
NO.
PAGE
NO.
1.1
GROWTH OF POWER GENERATION IN KORBA
10
1.2
PERFORMANCES ACROSS NUMBER OF PARAMETER
18
1.3
REGIONAL SPREAD OF GENERATING FACILITIES
18
1.4
COALS BASED POWER STATION
19
1.5
GASES/FUEL BASED POWER STATION
20
1.6
GASES BASED JOINT VENTURES
20
1.7
HYDRO BASED POWER PROJECT
21
LIST OF FIGURES
FIGURE
DESCRIPTION
NO.
PAGE
NO.
1.1
GROWTH OF NTPC
08
1.2
STEPS TO GENERATE ELECTRICITY
28
1.3
NTPC VS REST OF INDIA
31
1.4
PLF OF NTPC STATION VS ALL INDIA
32
1.5
NTPC, KORBA MANPOWER PROFILE
35
1.6
ORGANIZATIONAL STRUCTURES
37
3.1
41
3.2
STRUCTURE OF F&A DEPARTMENT
42
3.3
STRUCTURE OF HUMAN RESOURCE DEPARTMENT
51
3.4
STRUCTURE OF OPERATION & MAINTENANCE
60
DEPARTMENT
CHAPTER- 1
INTRODUCTION
Internship training program is vital and essential part of the educational curriculum
which helps students to know how the organization functions and also to know
how various interrelated departments work together to achieve their common goal
and it also helps the students to have a particular exposure to the problem faces,
functions, department and their business operation.
This is a generally meant to develop students aptitude towards business
environment practically training given which will make students prepare for a
future job as a manager of an organization. So it is observed that the project work
is an invaluable part of the educational curriculum.
The main purpose of this study is to assess overall performance of the Company.
The study is conducted at NTPC Plant the search is basically on empirical enquire
a about the approaches towards the concept and its role in the organization.
INDUSTRY PROFILE
Electricity is the most versatile energy source that we have; it is also one of the
newest: homes and businesses have been using it for not much more than a
hundred years. Electricity has played a vital part of our past. But it could play a
different role in our future, with many more buildings generating their own
renewable electric power using solar cells and wind turbines. Let's take a closer
look at electricity and find out how it works.
Electricity is a type of energy that can build up in one place or flow from one place
to another. When electricity gathers in one place it is known as static electricity
(the word static means something that does not move); electricity that moves from
one place to another is called current electricity.
Despite its great importance in our daily lives, most of us rarely stop to think what
life would be like without electricity. Yet like air and water, we tend to take
electricity for granted. Every day, we use electricity to do many jobs for us from
lighting and heating/cooling our homes, to powering our televisions and
computers. Electricity is a controllable and convenient form of energy used in the
applications of heat, light and power.
Electricity Industrial Profile
The electricity in India is predominantly controlled by the Government of
India's public sector undertakings (PSUs). Major PSUs involved in the generation
of electricity include National Thermal Power Corporation (NTPC), National
Hydroelectric Power Corporation (NHPC) and Nuclear Power Corporation of
India (NPCI). Besides PSUs, several state-level corporations, such as Maharashtra
State Electricity Board (MSEB), are also involved in the generation and intra-state
10
distribution of electricity. The Power Grid Corporation of India is responsible for

the inter-state transmission of electricity and the development of national grid.
The Ministry of Power is the apex body responsible for the development of
electrical energy in India. This ministry started functioning independently from 2
July 1992; earlier, it was known as the Ministry of Energy. The Union Minister of
Power at present is Sushilkumar Shinde of the Congress Party, who took charge of
the ministry on the 28th of May, 2009.
India is world's 6th largest energy consumer, accounting for 3.4% of global energy
consumption. Due to India's economic rise, the demand for energy has grown at an
average of 3.6% per annum over the past 30 years. In March 2011, the installed
power generation capacity of India stood at 1, 73,626 MW while the per capital
energy consumption stood at 612 kWh. The country's annual energy production
increased from about 190 billion kWh in 1986 to more than 680 billion kWh in
2006. The total demand for electricity in India is expected to cross 950,000 MW by
2030.
About 75% of the electricity consumed in India is generated by thermal power
plants, 21% by hydroelectric power plants and 4% by nuclear power plants. More
than 50% of Indias commercial energy demand is met through the country's
vast coal reserves. The country has also invested heavily in recent years on
renewable sources of energy such as wind energy. As of 2008, India's installed
wind power generation capacity stood at 9,655 MW. Additionally, India has
committed massive amount of funds for the construction of various nuclear
reactors which would generate at least 30,000 MW. In July 2009, India unveiled a
$19 billion plan to produce 20,000 MW of solar power by 2020.
Electricity losses in India during transmission and distribution are extremely
high and vary between 30 to 45%. In 2004-05, electricity demand outstripped
11
supply by 7-11%. Due to shortage of electricity, power cuts are common

throughout India and this has adversely effected the country's economic
growth. Theft of electricity, common in most parts of urban India, amounts to 1.5%
of India's GDP. Despite an ambitious rural electrification program, some 400
million Indians lose electricity access during blackouts. While 80 percent of Indian
villages have at least an electricity line, just 44 percent of rural households have
access to electricity. According to a sample of 97,882 households in 2002,
electricity was the main source of lighting for 53% of rural households compared
to 36% in 1993.Multi Commodity Exchange has sought permission to offer
electricity future markets.
GENERATION
Grand Total Installed Capacity is 1, 73,626 MW.
Thermal Power
Current installed capacity of Thermal Power (as of 06/2011) is 114315.35
MW which is 65.84% of total installed capacity.
Current
installed
base
of Coal
Based
Thermal
Power is 96710.78
MW which comes to 84.6% of total installed base.
Current installed base of Gas Based Thermal Power is 16632.88 MW which

is 14.55% of total installed base.
Current installed base of Oil Based Thermal Power is 971.68 MW which is

0.85% of total installed base.
The state of Maharashtra is the largest producer of thermal power in the country.
12
Hydro Power
India was one of the pioneering countries in establishing hydro-electric
power plants. The power plant at Darjeeling and Shimsha (Shivanasamudra) was
established in 1898 and 1902 respectively and is one of the first in Asia. The
installed capacity as of 2011 was approximately 33874.43. The public sector has a
predominant share of 19.51% in this sector.
Nuclear Power
Currently, 17 nuclear power reactors produce 4149.66 MW (2.39% of total
installed base).
Renewable Power
Current installed base of Renewable energy is 21286.54 MW which is 12.26% of
total installed base with the southern state of Tamil Nadu contributing nearly a
third of it (5008.26 MW) largely through wind power.
Transmission
Transmission of electricity is defined as bulk transfer of power over a long distance
at high voltage, generally of 132kV and above. In India bulk transmission has
increased from 3,708ckm in 1950 to more than 165,000ckm today (as stated by
Power Grid Corporation of India). The entire country has been divided into five
regions for transmission systems, namely, Northern Region, North Eastern Region,
Eastern Region, Southern Region and Western Region. The Interconnected
transmission system within each region is also called the regional grid.
13
The transmission system planning in the country, in the past, had traditionally been
linked to generation projects as part of the evacuation system. Ability of the power
system to safely withstand a contingency without generation rescheduling or loadshedding was the main criteria for planning the transmission system. However, due
to various reasons such as spatial development of load in the network, noncommissioning of load centre generating units originally planned and deficit in
reactive compensation, certain pockets in the power system could not safely
operate even under normal conditions. This had necessitated backing down of
generation and operating at a lower load generation balance in the past.
Transmission planning has therefore moved away from the earlier generation
evacuation system planning to integrate system planning.
While the predominant technology for electricity transmission and distribution has
been Alternating Current (AC) technology, High Voltage Direct Current (HVDC)
technology has also been used for interconnection of all regional grids across the
country and for bulk transmission of power over long distances.
Certain provisions in the Electricity Act 2003 such as open access to the
transmission and distribution network, recognition of power trading as a distinct
activity, the liberal definition of a captive generating plant and provision for supply
in rural areas are expected to introduce and encourage competition in the electricity
sector. It is expected that all the above measures on the generation, transmission
and distribution front would result in formation of a robust electricity grid in the
country.
Objectives
Sufficient power to achieve GDP growth rate of 8%.
14
Reliable power.
Quality power.
Optimum power cost.
Commercial viability of power industry.
Power for all.
Rural electrification
Jharkhand, Bihar, Uttar Pradesh, Orissa, Uttaranchal, Madhya Pradesh etc are some
of the states where significant number (more than 10%) of villages are yet to be
electrified.
Number of Villages (1991 Census) - 593,732
Villages Electrified (30 May 2010) - 488,173
Village level Electrification % - 82.2%
15
COMPANY PROFILE
Introduction to NTPC
Established in 1975, NTPC, the largest power company the country has been
consistently powering of the growth of India. An ISO 9001:2000 certified
company; it is worlds 3rd largest thermal power generator and second most
efficient capacity utilization.
Apart from power generation, which is the mainstay of the company, NTPC has
already ventured into consultancy, power trading, ash utilization and coal mining.
NTPC ranked 337th in the 2012, 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.
With this, NTPC reaffirms as one of the very Best Employers in India, second only
to Google and Intel. NTPC has also been ranked first amongst PSUs, 1st amongst
large organizations (more than 10,000 employees) and 1st amongst manufacturing
and production industries. Shri S.P. Singh, Director (HR) and Shri S. Roy,
Executive Director (HR), NTPC Ltd. received the award.
Fig-1.1 Growth of NTPC
The total installed capacity of the company is 39,174 MW (including JVs) with 16
coal based and 7 gas based stations, located across the country. In addition under
JVs, 7 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
16
Sources(RES)
including hydro. By 2032, non fossil fuel based generation capacity shall make up
nearly 28% of NTPCs portfolio.
Year of Establishment: 1983
Korba the Power City of Chhattisgarh is endowed with natural resources
such as coal and bauxite. Being rich in coal, Korba was chosen for setting up of
pithead power plants. In early stages, two power plants of MPEB (Now CSEB)
were installed in the vicinity of Korba city. Thereafter in January 1978 NTPC got
clearance from the government to set up Thermal Power Plant of 2100 MW
Capacity at Korba.
In tune with the need for massive capacity addition in the changing scenario, 500
MW Unit was commenced operation in mid 2010 and the installation cost would
be Rs 2,448.49 crore. Now Korba will added another feather in its cap by having
the first Merchant Power plant of NTPC and will thus help the company in taking
one more step in its Mission 2017.
In present day scenario, only the most economical, Qualitative and efficient
power generating station will meet the requirement of survival of the fittest. Korba
17
Super Thermal Power Station is constantly raising the bar of efficient and
economical power generation for excellence.
Despite over 25 years, NTPC Korba achieves over 97% PLF and is thus
treated as one of the best stations when we talk about Power Generation in India
today. Meritorious Performance Awards of twenty times in the last 28 years is a
testimony to the fact that this project has created a niche in the domain of
Operation and Maintenance of thermal power stations. The station has in fact set a
benchmark in producing power at the lowest cost.
Table - 1.1 Growth of Power Generation in Korba
Stage
Unit Number
Installed Capacity (MW)
Total
Seven
2600
1st
200
1983 March
1st
200
1983 October
1st
200
1984 March
2nd
500
1987 May
2nd
500
1988 March
2nd
500
1989 March
3rd
500
2010 December
Date of Commissioning
18
AN OVERVIEW
Name & Location:
NTPC LIMITED, KORBA

(SUPER THERMAL POWER STATION)
On the west bank of the Hasdeo river near Korba
District of Chhattisgarh
Approach:
Nearest Rail Heads (Champa 52 Kms & Bilaspur 102

Kms)
Nearest Airport:
Raipur 220 Kms
Installed capacity:
Stage - I: 3x 200 MW, Stage -II: 3x 500 MW,

Stage -III: 1x500 MW
Approved investment: Rs. 2324 crores

Coal Source:
Gevra Mines & Kusmunda Block
Coal Transportation:
Merry-Go-Round system of 34.80 Km
Annual Coal:
11.4 Million Tonnes (approx.)
Water Source:
Right Bank Canal of Haste River
Water requirement:
2.80 Lakhs Cu. M/day
Beneficiary States:
Madhya Pradesh, Chhattisgarh, Maharashtra, Gujarat,

Goa, Union Territories of Daman, Diu, Dadra Nagar
Haveli
External Financial:
IDA, OPEC, KFW
19
20
INCEPTION, HISTORY & PRESENT STATUS

INCEPTION:
Indias 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 utilization and coal mining.
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.
At NTPC, People before Plant Load Factor is the mantra that guides all HR related
policies. NTPC has been awarded No.1, Best Workplace in India among large
organizations and the best PSU 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.
The Corporation recorded a generation of 159.11 Billion Units (BUs) in 2011-12,
through 16 coal based , 7 gas based power plants, and Joint Venture Projects spread
all over the country.
21
Driven by its vision to lead, it has charted out an ambitious growth plan of
becoming a 66,000 MW plus company by 2017.NTPC has been rated as one of the
top most Best Employer of the country for the year 2003, 2004 and 2005 in a
row. Best Companies to Work for in India Business Today Survey 2004, it has
developed into multi-location and multi-fuel company over the past three decades.
These achievements have been made possible by the 23500 strong and motivated
work forces that with their dedication are ever willing to take NTPC to greater
heights.
HISTORY OF NTPC
NTPC Company was incorporated on November 7, 1975 under the
Companies Act as a private limited company under the name National Thermal
Power Corporation Private Limited, and the word 'Private' was deleted on
September30,1976 consequent upon the notification issued by the government.
Exempting government companies from the use of word 'private' in their name On
September 30, 1985, NTPC Company was converted from a private limited
company into a public limited company. Subsequently, the name of Company was
changed to its present name NTPC Limited and a fresh certificate of incorporation
was issued on October 28, 2005. The name of Company was changed to reflect the
diversification of our business operations beyond thermal power generation to
include, among others generation of power from hydro, nuclear and renewable
energy sources and undertaking coal mining and oil exploration activities.
NTPC Company is not operating under any injunction or restraining order.
In July 1976, the registered office of our Company was changed from Shram
Shakti Bhawan, New Delhi to Kailash Building, Kasturba GandhiMarg, and New
22
Delhi. Subsequently, in May 1979 the registered office of our Company was
shifted to NTPC Square, 62- 63, Nehru Place, New Delhi and thereafter in October
1988 to its present location for administrative and operational efficiency.
MAJOR EVENTS
1975:-
Incorporation of NTPC Company.
1978:-
Takeover of management of the Badarpur project.
1982:-
Commissioning of the first 200MW unit at Singrauli Centre of

education at power Management Institute, Delhi established First
direct foreign currency borrowing . A consortium of foreign banks
led by Standard Chartered Merchant Bank extends a loan of
GBP298.41 million for the Rihand project.
1984:-
The transmission line based on High Voltage Direct Current

(HVDC) technology, commissioned for power transmission
from Rihand to Delhi Singrauli project received World Bank loan
of Rs 150 million.
1986:-
Synchronized first 500MW unit at Singrauli NTPC Company

became one of the first PSUs to issue bonds in the debt market.
1988:-
5,000 MW installed capacity mark crossed.
1989:-
First syndicated Japanese loan of 30 billion JPY raised.
1990:-
Consultancy division of that Company launched First unit (88

MW) of Companys first gas based combined cycle power plant at
Anta, Rajasthan commissioned.
23
1992:-
Total installed capacity of 10,000 MW reached.
1993:-
First acquisition by that Company of Frozen Gandhi snchahar

Thermal Power Station (2x210MW) from Uttar Pradesh Rajiv
Vidyut Utpadan Nigam of Uttar Pradesh the transmission systems
owned by our Company were transferred to Power Grid
Corporation of India Limited
pursuant to legislation by the
Parliament of India.
1994:-
IBRD extended direct loan of US0 million to NTPC Company

under time slice concept for its projects.
1995:-
15,000 MW of installed capacity achieved Maiden declaration of

dividend of Rs. 650 million Jhanor- Gandhar (Gujarat) becomes
our first thermal power station to have commissioned an integrated
Liquid Waste Treatment Plant.
1998:-
'Navratna' status granted by the GoI100 billion units generation in

one year achieved a consortium of foreign banks led by Sumitomo
Bank, Hong Kong extends foreign currency loan of 5 billion
Japanese Yen for the first time without Got guarantee.
1999:-
Commissioned the first Naphtha based plant at Kayamkulam with

a capacity of 350 MW.
2000:-
NTPC Companys Dadri thermal power project, Uttar Pradesh

adjudged the best in India with a PLF of 96.12%Dadri thermal
power project, Uttar Pradesh certified with ISO 14001.
24
2003:-
Three wholly owned subsidiaries, viz., NTPC Electric Supply

Company Limited, NTPC Hydro Limited and NTPC VidyutVyapar
Nigam Limited incorporated ESP[Electrostatic precipitators) set
up at Talcher power plant20,000 MW installed capacity mark
exceeded
2004:-
NTPC Company undertook debt re-structuring. Raised funds

through bonds (Series XIII and XIV) Construction of first hydroelectric power project of 800 MW capacity in Himachal Pradesh
commenced after the investment approval.
2005:-
The award of contract for the first Super Critical Thermal Power
Plant at Sipat Reached a total installed capacity of 22,249MW
with the Talcher Unit V getting synchronized on May 13, 2004Our
Companys Feroze Gandhi Unchahar Thermal station achieves
record PLF of 87.43% in current year up from 18.02% in February
1992 when it was taken over by us LIC extends credit facility for
Rs. 70 billion. Rs. 40 billion is in the form of unsecured loans
andRs.30 billion is in the form of bonds Our Company makes its
debut issue of euro bonds amounting to USD 200 million in the
international market First coal mining block allotted Listing of our
Equity Shares on the Stock Exchanges.
2006:-
NTPC Company received the International Project Management

Award 2005 for its Simhadri project at the International Project
Management Association World Congress. Oil block allocated
under
NELP
Our
Company
adopted
core
values
'BCOMIT'(Business Ethics, Customer Focus, Organizational

25
Pride, Mutual Respect and Trust, Innovation and Speed and Total
Quality for Excellence).
2007:-
Badarpur Thermal Power Station having an installed capacity 705

MW transferred to our Company.
2008:-
Granted in-principle approval for allocation of a new coal block,

Chatti-Bariatu (South) to our Company subject to the conditions
stipulated in the approval letter. The share of reserves is estimated
to be 354 Million Tonnes.
2009:-
NTPC Company adjudged as the Star PSU 2008 Board expanded

by appointment of 5 independent Directors India Power Award
conferred on Centre for Power Efficiency and Environmental
Protection.
2010:-
Memorandum of understanding entered into with the Nuclear

Power Corporation of India Limited (NPCIL) for development of
nuclear power in India 30,000 MW installed capacity mark crossed
Long term fuel supply agreement with Coal India Limited for
supply of coal to our power stations for a period of 20 years.
2011:-
NTPC ranked 348th in the 2011, Forbes Global 2000 ranking of

the Worlds biggest companies.
2012:-
Bagged 3rd rank in Indias Best Companies to Work for the year
2012 by The Great Place to Work and The Economic Times, in a
glittering award ceremony in Mumbai on 13th July, 2012.
26
NTPC is the largest power utility in India, accounting for about 17.75% of Indias
installed capacity.
PRESENT INSTALLED CAPACITY
The generating capacity as well as plant performance or operational efficiency has
been continuously growing without break since its inception. NTPCs Installed
Capacity and performance depicts the companys outstanding performance across a
number of parameters.
Table 1.2 Performances across Number of Parameter
NTPC Owned
Coal
Gas/Liquid Fuel
Total
Owned By JVs
Coal & Gas
Total
NO. OF PLANTS
CAPACITY (MW)
16
7
23
30,855
3,955
34,810
7
30
4,364
39,174
Table 1.3 Regional Spread of Generating Facilities

REGION
Northern
Western
Southern
Eastern
JVs
Total
COAL
8,515
9,840
4,600
7,900
2,424
33,279
GAS
2,312
1,293
350
1,940
5,895
TOTAL
10,827
11,133
4,950
7,900
4,364
39,174
27
COAL BASED POWER STATIONS

The coal based power station has been power stations have been always the main
stay
of
NTPC.
It is one
biggest
coal
The
in
1.
2.
3.
Coal
Based(Owned
by NTPC)
Singrauli
Korba
Ramagundam
4.
5.
Farakka
Vindhyachal
6.
7.
8.
9.
10.
11.
12.
Rihand
Kahalgaon
Dadri
TalcherKaniha
Unchahar
Talcher
Simhadri
13.
14.
15.
16.
Tanda
Badarpur
Sipat-II
Mauda
Total
S.No
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
Maharashtra
Commissioned
Capacity(mw)
2,000
2,600
2,600
of
the
users of
India.
entire
2,100
3,760
2,500
2,340
1,820
3,000
1,050
460
2,000
440
705
2,980
500
30,855
generation back bone of NTPC is based on its coal fired stations. Following are the
coal based stations of NTPC.
Table 1.4 Coals Based Power Station
28
29
GAS/LIQUID FUEL BASED POWER STATIONS
S.N
o
1.
2.
3.
4.
5.
6.
7.
Total
Gas Based
(Owned by NTPC)
Anta
Auraiya
Kawas
Dadri
Jhanor-Gandhar
Rajiv Gandhi CCPP
Kayamkulam
Faridabad
State
Commissioned
Capacity(mw)
Rajasthan
Uttar Pradesh
Gujarat
Uttar Pradesh
Gujarat
Kerala
413
652
645
817
648
350
Haryana
430
3,955
With a combined gas based commissioned capacity of 3955 MW, NTPC caters to
the peeking demand for power.
Table - 1.5 Gases/Fuel Based Power Station
Table 1.6 Gases Based Joint Ventures
S.No
1.
2.
3.
4.
5
6.
Total
Coal based (Owned

by JVS)
Ratnagiri
Raurkela
Bhilai
Durgapur
Muzaffarpur
Jhajhar
State
Maharashtra
Orissa
Chhattisgarh
West Bengal
Bihar
Haryana
Commissioned
Capacity
1480
120
574
120
110
500
3,364
30
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. Two other hydro projects under construction
are Tapovan Vishnugad and Loharinag Pala. On all these projects construction
activities are in full swing.
Table 1.7 Hydro Based Power Project
S.No
Hydro Based
State
1.
Koldam (HEPP)
2.
Loharinag Pala (HEPP)
Himachal
Pradesh
Uttarakhand
3.
TapovanVishnugad
(HEPP)
Uttarakhand
Total
Approved
Capacity(mw)
800
600
520
1,920
31
VISION, MISSION, CORE VALUE & OBJECTIVES

VISION
A world class integrated power major, powering Indias growth, with increasing
global presence
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.
Make available reliable and quality power in increasingly large quantities at
competitive prices and ensure timely realization of revenues.
Develop a strong portfolio of profitable businesses in overseas
markets including technical services, generation assets etc.
Continuously attract and develop committed human resources to
match world standards.
Lead fundamental and applied research for adoption of the state-ofthe-art technologies, breakthrough efficiency improvements and new fuels.
Lead developmental efforts in the Indian power sector including assisting
state utility reform, policy recover etc.
Adopt a broad based capacity portfolio including Hydro Power, LNG,
Nuclear Power, and non conventional and eco-friendly fuels.
32
Plan and speedily implement power projects using state-of- the art
technologies.
Be an integrated utility by implementing strategic diversifications in areas
such as power trading distribution, transmission, coal mining, coal
beneficiation etc.
CORE VALUES BE COMMITTED
B
Business Ethics.
Environmentally & Economically Sustainable
Customer Focus
Organizational & Professional Pride
Mutual Respect And Trust
Motivating Self & Others
Innovation and Speed.
Total Quality For Excellence
Transparent & Respect Organization
Devoted
33
OBJECTIVES OF COMPANY
Business Portfolio Growth
To further consolidate NTPCS position as the leading thermal power
generation company in India and establish a presence in hydro power
segment. To broad base the generation mix by evaluating conventional
sources of energy to ensure long run competitiveness and mitigate fuel-risks.
To diversify across the power value chain in India by considering backward
and forward integration into areas such as power trading, transmission,
distribution, coal mining, coal beneficiation, etc.
To develop a portfolio of generation assets in international markets.
To establish a strong brand in the domestic & international market
Customer Focus
To foster a collaborative style of working with customer growing to be a
preferred brand for supply of quality power.
To expand the relationship with existing customers by offering a bouquet of
services in addition to supply of power e.g. trading, energy consulting,
distribution consulting, management consulting, management practices.
To expand the future customer portfolio through profitable diversification
into downstream business, inter alia retail distribution and direct supply.
To ensure rapid commercial decision making, using customer specific
information with adequate concern for the interests of the customer.
34
35
Agile Corporation
To ensure effectiveness in business decisions and responsiveness to change
in the business environment by Adopting a portfolio approach to new
business development. Continuous and coordinated assessment of the
business environment to identify and respond to opportunities and threats.
To develop a learning organization having knowledge based competitive
edge in current and future businesses.
To effectively leverage information technology to ensure speedy decision
making across the organization.
Performance Leadership
To continuously improve on project execution time and cost in order to
sustain long run competitiveness in generation.
To operate & maintain NTPC stations at par with the best run utilities in the
world with respect to availability, reliability, efficiencies.
To aim for performance excellence in the diversification businesses.
To embed quality in all systems and processes.
Human Resource Development
To enhance organizational performance by institutionalizing an objective
and open performance management system.
36
To align individual and organizational needs and develop business leaders by

implementing a career development system.
To enhance commitment of employees by recognizing and rewarding high
performance.
To build and sustain a learning organization of competent world-class
professionals.
To institutionalize core values and create a culture of team building,
empowerment, equity, innovation and openness which would motivate
employees and enable achievement of strategic objectives.
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 this would ensure
remunerative tariffs and minimize receivables.
Sustainable & Development
To contribute to sustainable power development by discharging corporate
social responsibilities.
37
To lead the sector in the areas of resettlement and rehabilitation and

environment protection including effective ash-utilization, peripheral
development and energy conservation practices.
To lead developmental efforts in the Indian power sector through efforts at
policy advocacy, assisting customers in the operations and management of
power plant.
PRODUCT PROFILE
What is electricity?
Electricity is a type of energy that can build up in one place or flow from one place
to another. When electricity gathers in one place it is known as static electricity
(the word static means something that does not move); electricity that moves from
one place to another is called current electricity.
Generating electricity
Just as electricity can make magnetism, so magnetism can make electricity. A
bicycle dynamo is a bit like an electric motor inside. When you pedal your bicycle,
the dynamo clipped to the wheel spins around. Inside the dynamo, there is a heavy
core made from iron wire wrapped tightly aroundmuch like the inside of a
motor. The core spins freely inside some large fixed magnets. As you pedal, the
core rotates inside these outer magnets and generates electricity. The electricity
flows out from the dynamo and powers your bicycle lamp.
The electric generators used in power plants work in exactly the same way, only on
a much bigger scale. Instead of being powered by someone's legs, pedalling
furiously, these large generators are driven by steam. The steam is made by burning
fuels or by nuclear reactions. Power plants can make enormous amounts of
38
electricity, but they waste quite a lot of the energy they produce. The energy has to
flow from the plant, where it is made, to the homes, offices, and factories where it
is used down many miles of electric power cable. Delivering electricity this way
can waste up to two thirds of the power originally produced.
How does electricity get from a power plant to your home?
The heart of a power station is a large generator that extracts energy from a fuel.
Some power stations burn fossil fuels such as coal, oil, or gas. The heat produced is
used to turn water into steam at high pressure. This steam turns a windmill-like
device called a turbine connected to an electricity generator. Extracting heat from a
fuel takes place over a number of stages and some energy is wasted at each stage.
Fig 1.2 Steps to Generate Electricity
39
1. Fuel: The energy that finds its way into your TV, computer, or toaster starts
off as fuel loaded into a power plant. Some power plants run on coal, while
others use oil, natural gas, or methane gas from decomposing rubbish.
2. Furnace: The fuel is burned in a giant furnace to release heat energy.
3. Boiler: In the boiler, heat from the furnace flows around pipes full of cold
water. The heat boils the water and turns it into steam.
4. Turbine: The steam flows at high-pressure around a wheel that's a bit like a
windmill made of tightly packed metal blades. The blades start turning as the
steam flows past. Known as a steam turbine, this device is designed to
convert the steam's energy into kinetic energy (movement). For the turbine
40
to work efficiently, heat must enter it at a really high temperature and

pressure and leave at as low a temperature and pressure as possible.
5. Cooling tower: The giant, jug-shaped cooling towers you see at old power
plants make the turbine more efficient. Boiling hot water from the steam
turbine is cooled in a heat exchanger called a condenser. Then it's sprayed
into the giant cooling towers and pumped back for reuse. Most of the water
condenses on the walls of the towers and drips back down again. Only a tiny
amount of the water used escapes as steam from the towers themselves, but
huge amounts of heat and energy are lost.
6. Generator: The turbine is linked by an axle to a generator, so the generator
spins around with the turbine blades. As it spins, the generator uses the
kinetic energy from the turbine to make electricity.
7. Electricity cables: The electricity travels out of the generator to a
transformer nearby.
8. Step-up transformer: Electricity loses some of its energy as it travels down
wire cables, but high-voltage electricity loses less energy than low-voltage
electricity. So the electricity generated in the plant is stepped-up (boosted) to
a very high voltage as it leaves the power plant.
9. Pylons: Hugh metal towers carry electricity at extremely high voltages,
along overhead cables, to wherever it is needed.
10.Step-down transformer: Once the electricity reaches its destination,
another transformer converts the electricity back to a lower voltage safe for
homes to use.
41
11.Homes: Electricity flows into homes through underground cables.

12.Appliances: Electricity flows all round your home to outlets on the wall.
When you plug in a television or other appliance, it could be making a very
indirect connection to a piece of coal hundreds of miles away
42
MARKET SHARE
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.
Fig 1.3 NTPC Vs Rest of India
PERFORMANCE STATISTICS
In terms of operations, NTPC has always been considerably above the national
average. The availability factor for coal based power stations has increased from
78.00% in 1997-98 to 88.00% in 2011-12, which compares favorably with
international standards. The PLF has increased from 76.6% in 1998-99 to 85.00%
during the year 2011-12.
43
Fig 1.4 PLF of NTPC Station vs All India

COMPETITORS
OVERVIEW
TATA POWER
Tata power is Indias largest private sector power utility. Its revenues are $ 1 bn. Its
Profit after tax is $ 137 mn. Its generation capacity is 2300 MW. Out of that in
Mumbai, the capacity is 1800 MW. It has presence in generation, transmission and
distribution of power. It supplies power to Mumbai and Delhi regions.
Business strategy:
The core business of Tata Power Company is to generate, transmit and distribute
electricity. The Company operates in two business segments: Power and Other
services. The Power segment is engaged in generation, transmission and
distribution of electricity. The other services segment includes electronic
equipment, broadband services, and project consultancy and oil exploration.
RELIANCE ENERGY
Reliance Energy Ltd (REL) formerly known as Bombay Suburban Electric Supply
(BSES) is a part of the Anil Dhirubhai Ambani Group. It is an integrated power
utility company in the private sector in India which came into existence when it
took over BSES in 2002.
44
The company is the sole distributor of electricity to consumers in the suburbs of

Mumbai. It also runs power generation, transmission and distribution businesses in
other parts of Maharashtra, Goa and Andhra Pradesh. REL has significant presence
in the field of execution of the Power projects on EPC (Engineering, Procurement
and Commissioning) basis.
CESC
CESC, a power utility in India was setup in 1899. CESC Limited is a flagship
company of RPG Enterprises, which is one of India's well-managed groups of
companies with a diversified presence. Company brought thermal power to India
more than 100 years ago and supplies power to the city of Kolkata.
GAIL (INDIA) LIMITED
GAIL (India) Limited is no blowhard when it comes to turning energy into profits.
The largest gas transmission and marketing company in India, GAIL owns more
than 6,700 km of pipeline and has a 78% market share in India's natural gas
transmission business. It has seven gas processing units and owns India's largest
gas-based
petrochemicals
complex.
In
addition, GAIL
has
major
domestic exploration and production operations. It also has a fibre-optic cable

network of 13,000 km that provides bandwidth to telecommunications carriers. It is
also involved in liquefied natural gas import projects. The company is also
exploring buying US shale assets. The government of India owns 57% of the
company.
45
WORK FORCE DETAILS

NTPC has continuously been part of the Best Workplaces List for the last eight
years and has been consistently amongst top performers. NTPC has over 25000
employees spread over 29 locations across the country. Company is the leader in
power generation with presence in Thermal, Hydro, power trading, coal mining
and power consultancy services.
The below pie-chart shows the category wise distribution of employees of NTPC,
Korba as on 31-03-2012.Today NTPC Korba with a dedicated and trained
manpower of around 2300 employees has earned a distinction for itself in the field
of power generation. For works of non-perennial nature, contracts are resorted to.
All employees and also contractor employees are covered under safety, health and
environmental management system (IS/ISO 14001: 1996 & IS18001:2000).
Fig 1.5 NTPC, Korba Manpower Profile
46
NTPC, Korba maintains healthy and mutually enriching relationship with all
representatives (Unions & Associations) of its people. Award and Reward scheme
is effectively developed to recognize the contributions of our people who are
making NTPC, Korba a success story.
In tune with the need for massive capacity addition in the changing scenario,
adding another 500 MW Unit was commenced on end of 2010. Once completed,
Korba will added another feather in its cap by having the first Merchant Power
plant of NTPC and will thus help the company in taking one more step in its
Mission 2017.
In present day scenario, only the most economical, Qualitative and efficient power
generating station will meet the requirement of survival of the fittest. Korba Super
Thermal Power Station is constantly raising the bar of efficient and economical
power generation for excellence.
Despite over 25 years, NTPC Korba achieves over 97% PLF and is thus treated as
one of the best stations when we talk about Power Generation in India today.
Meritorious Performance Awards of twenty times in the last 26 years is a testimony
to the fact that this project has created a niche in the domain of Operation and
Maintenance of thermal power stations. The station has in fact set a benchmark in
producing power at the lowest cost.
47
Fig - 1.6 ORGANIZATIONAL STRUCTURE
CMD NTPC
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
FINANCE
PRODUCTION
MARKETING
HR
TECHNICAL
REGIONAL DIRECTOR
GENERAL MANAGER
DEPUTY GENERAL
MANAGER
ASSISTANT GENERAL
MANAGER
SENIOR MANAGER
MANAGER
48
CHAPTER- 2
RESEARCH METHODOLOGY
DESIGN OF THE STUDY
An organizational study at National Thermal Power Corporation Ltd (NTPC),
Korba. It is a study of organizational activities in all functional areas in an
organization which is to relate the theoretical knowledge acquired. Further the
study could include study of a specific management problem of any specific
department or a case study focusing on any specific issue.
OBJECTIVES OF THE STUDY:
An objective is specific statement of the outcome we aim for in a learning activity.
We want to state your objectives in a measurable way, so that we can evaluate
whether it has been met. When we talk about an objectives or goals we would like
to achieve the future.
To have knowledge of the formal functional activities of the organization.
To know about the work culture followed by the company.
To know the organization structure.
To know the manufacturing process.
To gain firsthand experience.
To relate the theoretical studies with the practical style of management
followed in organization.
49
It helps in developing skills in application of the theory to practical work

situations.
To study on SWOT analysis.
SCOPE
The scope of the organizational study is wide. The study helps to know about the
work culture of the organization. It also helps to enable about the duties,
responsibilities and functions of each departments in achieving the organizational
goal of the company. Moreover it helps to ascertain the interrelationship among
different departments in the organization. It also helps to know about the
organization hierarchy, structure and its policy.
SOURCES OF DATA
Primary Data
The report has been framed out of the primary data source. It basically deals
with the inspection done by me with the management and supervision of various
departments.
Secondary Data
The data was collected through reference books, website, company profile,
broachers, manuals, reference to previous studied, report, etc.
50
LIMITATIONS
There are some limitations to the study done, they are as follows:
The study was restricted for 45 days; due to time constraint an in depth study
of all the departments was not possible.
All the inherent limitations of the secondary data are applicable to this study
and are static for the given frame of time.
A comprehensive study using all the tools of analysis couldnt be made due
to the limitation of time.
51
CHAPTER- 3
Fig 3.1 FUNCTIONAL DEPARTMENTS
Functional
Departments
Finance &
Admin
Human
Resource
Operation &
Mgmt
FINANCE & ADMINISTRATION:

Every business main intentions are to make the profit so, business transaction need
to be recorded in specific format for the calculation of profit or loss at the end of
year. Finance department is very important for every organization to keep the
finance related information. Finance department involved in the recoding of
monitory transaction and finalization of accounts which is helpful for management
decisions. Finance department is also responsible for planning of funds
requirements in the future and it needs to find the sources finance.
52
OBJECTIVES OF DEPARTMENT:
a. Ensuring regular & sufficient supply of capital to business.
b. Ensure affair rate of return to the supplier of the capital.
c. Ensure the best utilization of capital by following the principals of liquidity,
profitability & safety.
d. Coordinating the activities of the finance department with those of other
department of the enterprise.
Fig 3.2 STRUCTURE OF F&A DEPARTMENT
HOD
(F&A)
DGM
Sr.M (Works, Books, Budget,
SMF
Works & Admin
Cash & Bank)
Purchase
Sr. MANAGER
MANAGER
Sr. MANAGER
MANAGER
Asst. MANAGER
MANAGER
Asst. MANAGER
Asst. MANAGER
53
F&A DEPARTMENT
Finance department is very essential for any organization to be set up. It is
the backbone of any organization. Similarly the finance department plays a vital
role in the set up and running of NTPC Chief Accountant manager and chief
finance manager work under the direct control of finance Director at NTPC. Other
top executives in the finance department are senior executive (finance), divisional
officer (finance), accounts officers; assistant accounts officers, senior assistants
(Accounts) and assistant (accounts). The chief finance manager and accounts
manager handle various activities in the finance department. Each of them has their
tasks cut out systematically in these areas.
Different sections of Korba Super thermal power Station (KSTPS) Finance
Departments. This section Work on a system that is online integrated material and
Finance accounting system (OLIMFAS). The language of the system is Indresh.
Now new programme come is enterprise resource planning system (ERP).Workmaintenance of fixed assets, make register. Provide depreciation threw its Stateline
method on the fixed assets. When the Value of assets comes down 5% of its total
value than no depreciation will charge on the assets. The rate of depreciation
giving by central electricity authority (CEA).This section also make budget-Firstly
a cost centre is allocated in each department and each cost centre is handling by a
responsibility centre. They make estimation and give to book and budget section.
This section collects all estimation from each responsibility centre and make final
estimation and send it to corporate office then corporate office finalize this budget
estimate. In each six-month the budget estimate is revised and if any change are
required then it sent to corporate office and then it finalize.
54
In NTPC, finance and accounting department is subdivided into 8 sub departments.

They are: Books & Budget
Commercial section
Store bill section
Vetting and concurrence
Priced store ledger (PSL) section
Works bill section
Establishment section
Miscellaneous section
BOOKS & BUDGET:
The main work of this section is accounting and maintaining the register of
finance. Another function done by this section is auditing for which the
accountants are out sources by the NTPC. The main audits conducted by the
company are:
a) Internal audit & Statutory audit: - Mainly done by the out sources
accountants. It is done quarterly or as per the need.
b) Controller & Auditor general of India audit: - This audit had
done by controllers attorney general of India. This is the audit of
balance sheets.
55
c) Cost audit: - From 2005-2006 company start cost audit. It handles

the cash. These departments send the estimation for cash requirement, to
the
corporate
office
weekly and
daily
basis and
also tell why
it is required. Also interface with banks, make payment and receive payment
Take custody of monetary and non-monetary instrument for security. It is
also take bank guarantee for performance; it is also called documentary
credit.
d) Prosperity audit: - This audit is done for check the system to see that all
going properly or not. It is done once in five year.
COMMERCIAL SECTION
This section does the accounting of sales of the project. It makes oil and coal
payment voucher. It also maintain priced store ledger (PSL).
STORE BILLS SECTION
This section does the payment of inventory as per terms of purchase order, advance
and
final payment
and maintains
account. Make
advance schedule
and material under inspection schedule. It also makes insurance payment,

transporters payment, premium and claims.
VETTING AND CONCURRENCE
The work of this Section is as follows:a) Contract and Purchase estimation-If we purchase any goods in second time
then last price is based. If we purchase first time then User give budget offer.
b) Vetting of competitive statement then we calculate Land Price.
56
c) Vetting of Draft Purchase Order.

d) Finance Concurrence.
PRICED STORE LEDGER (PSL) SECTION
This section does the physical inventory valuation. The method of valuation is
monthly moving weighted average. This valuation is done in every month. There
are some tools for PSL:1) (SRV) Store Received Voucher on invoice value.
2) (MRN) Material Return Note.
3) (SIV) Store Issue Voucher.
4) (MTN) Material Transfer Note.
This department gives the reports in various topic like XYZ, ABC and VED
analysis report, and non-moving item report. And also done physical verification of
stock every year.
WORKS BILL SECTION
Thi s Sect ion does the pay ment of services taken by SSTPS li ke
Mai nt enance Contracts. The payment made on Running Bill on the basis of
Measurement Book. Also do the final payment and take Penalties and return there
Securities. This section also do the capitalization were work is going on. The work
not had done fully completed Show under Capital Work In Progress
Account (CWIP). When this work complete then CWIP to Fixed Assets.
Incidental Expenditure during Construction (IEDC) and Interest During
Construction (IDC) add in CWIP Account. Renovation and Modernization
57
Work is going on four Stations i.e. Singrauli, Korba, Ramagundam and

Farakka. And the work of Renovation and Modernization handle by this Section.
Method of Renovation and Modernization
1) Old assets replace threw new assets.
2) Totally new assets if life of assets is end.
3) Improve the efficiency of Machines.
4) Increase the life of Machine
ESTABLISHMENT SECTION
This Section give the Salary and recover the PPF amount, House rent,
Electricity charge, Club expenses and Income tax from employees. This section
also deals with Loan & Advances given to employees. Some type of Loans
provides by NTPC to its employee:1) Furniture or Household loan up to 9000 for Non-executives, 15000 for
assistant manager and 25000 for managers.
2) Multipurpose loan it is equal to the Basic pay.
3) Convenience loan for Car, Bike.
4) House Advances Maximum 750000.
MISCELLANEOUS SECTION
This section makes the payment of Non-Oriented contract payment. Deal with
Petty Cash. Telephone bills, Entertainment expenses paid by this Section.
58
HUMAN RESOURCE MANAGEMENT

HRM can be defined as managing (Planning, organizing, directing & controlling)
the functions human relations with a view to contribute proportional to the
organization individual & social goals.
Functions of HRM:
I.
II.
Managerial function
a. Planning
b. Organizing
c. Directing
d. Controlling
Operative function
a. Employment
b. Human resource development
c. Compensation
d. Human relation
OBJECTIVES OF HR FUNCTION:
To Place manpower of required quality and in required number in position
so as to ensure fulfillment of companys objectives, plans and policies. The
department would forecast on a continuous basis in advance, manpower
requirement at various stages of the construction and operation of companys
projects, the organization structure, the type of manpower etc. and plan
advance action to meet the above objective. Through proper recruitment and
selection process, the department would Endeavour to attract persons with
potential and select those with high degree of knowledge, skill and caliber.
To formulate design, review and implement suitable pre-employment and
post-employment training and in-company and external management
59
development and workers development programmers with an individual

employee of the company.
To identify from among the employees of the company persons with
potential to rise to high levels of organizational hierarchy and develop
implement suitable systems of career planning and managerial succession
planning.
To create and sustain a favorable employee attitude a view to obtaining
maximum contribution and cooperation of employees in achieving the
objectives of the company through suitable employment, adequate,
compensation by way of wages/salaries, benefits, welfare facilities, suitable
motivational schemes, safe working conditions and job satisfaction.
Develop personnel policies in all areas relevant to the manpower to
management and notify the same to the employees with a view to reducing
the communication gap between the management and the employees.
To cultivate and maintain a participative culture through suitable system of
managers participation in decision making and workers participation in
management.
To establish and introduce suitable systems of grievance handling for
redresser of employees grievances in the shortest possible time and with the
lowest possible steps.
To encourage healthy and legitimate trade union activities and based on
mutual respect of each others view points and look upon trade unions as the
agencies of communication between the management and workers. To this
60
end, the department would endeavor to understand the problems of workers

through regular dialogues with the trade unions and aim at solving problems
and disputes through mutual discussions.
To identify key areas of organization development, diagnose the problems,
suggest measures and follow-up the implementation.
61
Fig- 3.3 STRUCTURE OF HUMAN RESOURCE DEPARTMENT

GENERAL MANAGER
DEPUTY GENERAL
MANAGER
ASST. GENERAL MANAGER
SENIOR MANAGER
MANAGER
ASST. MANAGER
OFFICER
62
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. Although NTPC has formulated many HR
policies for employees development and growth, it was felt that there is still space
for enhancing employees motivation and morale on a continued and sustained
basis. Therefore, a bouquet of rewards and recognition schemes is evolved with an
objective of reinforcing good work and behavior of employees in order to achieve
Organizational excellence.
To enhance organizational performance by institutionalizing an objective
and performance management system.
To individual and organizational needs and develop business leaders by
implementing a career development system.
To enhance commitment of employees by recognizing and rewarding high
performance.
To build and sustain learning organization of competent world- class
professionals.
To institutionalize core values and create a culture of team-building,
empowerment, equity, innovation and openness which would motivate
employees and enable achievement of strategic objectives.
We recognize that our employees are our prime assets and we always strive to
create an environment where employees feel they belong. We value their
contributions, support their development and help them balance their work and
63
personal lives. Development of skill and competencies and particularly safety

awareness of our employees and also of contract labour who are engaged in our
works is a key issue for us. We constantly strive to focus our human resource
policies, benefit plans and programmers to enhance the performance. Our
employees /spouses have formed various welfare bodies which are: Pragati Club
Nucleus club
Maitry Mahila Samiti
Bal Bhawan to promote various cultural & sports activities
CORPORATE SOCIAL RESPONSIBILITY
Social Responsibility is the obligation of managers to choose and act in a way that
benefit both the interest of the organization and those of the society as a whole.
Corporate Social Responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving the
quality of life of the workforce and families as well as local community and
society at large.
CSR in NTPC Ltd. is not limited to only community development, but
encompasses a whole range of issues in line with global international CSR
principles and practices. A measure of NTPCs commitment to CSR is that of 0.5%
of its profit is set aside for community development under the umbrella of CSR.
64
The main functions of CSR are as follows:

Achieve community development targets
Improve ASH Utilization
Reduce Carbon Dioxide emission
Achieve ISO 1400/SA8001 certification
Involve professional (socio-economic surveys)
Access to water, road and electricity
Education and Capacity building facilities
Healthcare support
Sanitation and Public health
Promotion of sports and games
Community centers
Vocational training and Capacity building,
Skill development centers,
Support for agricultural activities
65
HR Function at Corporate Level

Major functions under this level are:
a) Industrial Engineering
b) Employment and Placement
c) Training Management Development, Organizational Development &
Personal Research
d) Establishment
e) Policies and Rules
f) IR and Welfare Policy
g) HRD - Promotion, Performance Appraisal System and Employee
Development.
h) Administrative Services
i) Corporate Office Administration
j) Public Relations
Explanations of the above functions have been given in the following Paragraphs
Industrial Engineering:
The activities of this group span the various facts of manpower planning &
budgeting,
organization
structure,
development
of
manpower
norms/
standards/modules, incentive/ reward schemes, preparation of financial budgets for

Corporate Personnel &Administration, Job Evaluation & Development of job
66
specification/descriptions, Personnel Data Bank and computerization, Organization

& Methods etc.
Employment and Placement:
This function covers with the various activities pertaining to the recruitment of all
executives/executive trainees of the corporation and the non-executives of Delhi
based offices. The major activities undertaken include recruitment planning,
release of advertisement, screening of applications, organizing test and/or
interviews, drawing up panels, release of offers, post-offer correspondence etc.
apart from visioning with Employment Exchange and other Governmental
agencies.
Corporate Training:
This group looks after the development of training policies, programmers of
various types of technical training schemes including Engineering Executive
Trainees, Executive trainees (Chemistry), Diploma Trainees, ITI Trainees, training
under contract packages etc. Training design and review, policies and assistance
regarding training infrastructural development, design of trade test/skill
development programmers etc. also forms an important component of this area.
Also, the development, standardization and review of course material, audio visual
aids etc. is looked after by this group.
Management Development, Organizational Development and Personnel
Research:
This function encompasses the various organization development aspects relating
to performance appraisal, career & succession planning, job rotation & action
learning, promotion policy etc. Design and conduct of need based in company
management development programmes, sponsorship to outside agencies for
67
training also forms once the basic segments of this function. The design,
organizing and conduct of trainee schemes for Finance & personnel Executive
Trainees and Supervisor (Personnel) & Accountant Trainees is another area under
this function.
Establishment:
This area covers personnel activities from the time an employee joins the
organization to the time he leaves or superannuates. These include the joining
formalities, postings and transfers, confirmation/absorption, promotion & seniority,
forwarding of applications, processing of resignations etc. for the executives of the
entire and the non-executives of Delhi based offices apart from employee
entitlement like Leave encashment, LTC, Loans & Advances, terminal benefits,
group insurance for the executives and non-executives of Delhi based offices.
Maintenance of personnel records/files also forms one of this areas major tasks.
Policies & Rules:
This area includes various activities pertaining to formulation, implementation and
auditing, monitoring of various personnel policies like wages & salary, allowances
& reimbursements, Safety etc. Also covered under this area are the development,
implementation and issue of clarifications relating to service rules, conduct,
discipline and appeal rules, rules on entitlements, overtime & pay fixation rules,
etc. Dealing with parliament questions and coordination of various consultative
committees, joint machineries, personnel heads meeting etc. also forms a part of
this area.
68
IR & Welfare Policy:

Scholarship for meritorious students of employees.
Canteen facilities at subsidized rates.
Workmen compensation for all employment injury.
Settlement of accounts terminal benefits of death causes.
Recreation- fine arts, clubs, sports clubs for employees.
Education facilities to employees children.
Community development immunization on family planning, tailoring classes,
polio and others.
Arranging talks on diseases like AIDS, Cancer, and Diabetes etc.
Arranging for periodical health checkups.
Labour welfare fund loans and advances to employees.
Reference courses for education of employees.
Consumer co-operative society for benefit of employees.
Medical facilities and hospitals with in and outpatient facilities.
Transportation facilities.
69
HRD Promotion, Performance Appraisal System and Employee Development:

This group looks after the performance appraisal system, Promotion Policy for
Executives, Supervisors and Workmen. Also, covered under this group is of
Employee Development scheme so as to provide career development opportunities
to the employees in Supervisory/Workmen Cadres.
Administrative Services:
This area deals with planning, coordination with appropriate agencies and
development of Security and fire fighting systems, intelligence systems etc. apart
from rendering assistance to projects in the establishment of Central Schools,
telephone exchanges etc.
Corporate Office Administration:
This function consists of work relating to leasing and allotment of office and
residential accommodation, transport & guest house facilities, receipt and dispatch,
communication facilities procurement, and issue of office equipment and
consumables, travel booking, Medical facilities and SC/ST cell etc. apart from
implementation of official language (Hindi) etc.
Public Relations:
This function looks after the building up and sustaining the image of the
organization in the eyes of the public at large through arrangement of press
coverages of important events in the organization, TV/Radio coverages and
publicity material. This publication of house journal and associated editing
activities are also a part of this function.
70
OPERATION AND MAINTENANCE DEPARTMENT

NTPC has consistent track record of high availability and plant load factor (PLF)
across plants based on diverse technologies. NTPC has emphasized predictive &
preventive maintenance systems to achieve this track record.
Services covered under Environmental Engineering and Management include the
following:
Plant start-up including prescribing pre-operational checks.
Station management services for Operation & Maintenance services for Coal
based and Gas based Combined Cycle plants.
Development of Operation and Maintenance Management Systems &
computerization.
Supervision of Equipment Repairs and Unit Overhaul.
Laboratory tests & field tests.
State-of-the-art Operation and Maintenance training for coal based and gas
based units.
Performance Analysis and Optimization.
Condition Monitoring of critical equipment.
Fuel Management.
PG test/capacity test.
71
Energy audit
72

Fig 3.4 STRUCTURE OF OPERATIONS & MAINTENANCE DEPARTMENT
HOD (O&M)
DGM (OPN)
DGM (EMG)
DGM (MTP)
AGM
AGM
AGM
Sr. MANAGER
Sr. MANAGER
Sr. MANAGER
MANAGER
MANAGER
MANAGER
Asst. MANAGER
Asst. MANAGER
Asst. MANAGER
ENGINEER
ENGINEER
ENGINEER
73
Primarily it is the operation and maintenance of the power projects which holds the
key for being successful as an Independent Power Producer. NTPC with its proven
world class track record of operating and maintaining the power stations and
having provided this service successfully to many domestic clients is now
positioned to offer this service to International clients through its International
Cell. The O&M service has been tailored for international clients and consists of
the following modules and sub-modules. However, this can be further tailored to
meet any clients expectations
Maintenance Management
The term maintenance means to keep the equipment in operational condition or
repair it to its operational mode. Main objective of the maintenance is to have
increased availability of production systems, with increased safety and optimized
cost. Maintenance management involves managing the functions of maintenance.
Maintaining equipment in the field has been a challenging task since the beginning
of industrial revolution. Since then, a significant of progress has been made to
maintain equipment effectively in the field. As the engineering equipment becomes
sophisticated and expensive to produce and maintain, maintenance management
has to face even more challenging situations to maintain effectively such
equipments in industrial environment.
Functions of Maintenance Department
Following are the major functions of maintenance department:
Maintenance of installed equipment and facilities
Installations of new equipment and facilities
74
Inspection and lubrication of existing equipment
Monitoring of faults and failures using appropriate techniques
Modifications of already installed equipment and facilities
Management of inventory
Supervision of manpower
Keeping records
Material Management
According to Lee & Dobler - Material management as a confederacy of traditional
material activities bound by a common idea- the idea of an integrated management
approach to planning, acquisition, conversion, flow and distribution of production
material from the raw material state to the finished product state.
Function of Material Management
To arrange the facilities required for the material management.
To dispatch the material to the production department.
To look for new materials and suppliers that can contributes to company
profits.
Keep record of the material received, issued and balance.
To receive the finished goods from the production department, to verify
them and store them properly till they are distributed.
75
To maintain the material handling equipment and other incidental items like
pallets, containers, etc.
Environment Management, Occupational Health and Safety Systems
NTPC has actively gone for adoption of best international practices on
environment, occupational health and safety areas. The organization has pursued
the Environmental Management System (EMS) ISO 14001 and the Occupational
Health and Safety Assessment System OHSAS 18001 at its different
establishments. As a result of pursuing these practices, all NTPC power stations
have been certified for ISO 14001 & OHSAS 18001 by reputed national and
international Certifying Agencies.
7S MODEL
The 7-S-Model is better known as Mc Kinsey 7-S. this is because the two persons
who developed their model, Tom Peters and Robert Watermen, have been
consultants at McKinsey & Co at that time. They published their 7-S-Model in
their critical Structure is Not Organization (1980) and their books. The Art of
Japanese Management (1981) and In Search of Excellence (1981). The model
starts on the premise that an organization is not just Structure, but consists of seven
elements.
Those seven are distinguished in so called hard Ss and soft Ss. The hard elements
are feasible and easy to identify. They can be found in strategy statements,
corporate plans, organizational charts and other documentations.
The four soft Ss however, are hardly feasible. They are difficult to describe since
capabilities, values and elements of corporate culture are continuously developing
and changing. They are highly determined by the people at work in the
76
organization. They are highly determined by the people at work in the

organization. Therefore it is much more difficult to plan or to influence
characteristics of the soft element. Although the soft factors below the surface, they
can have great impact of the hard and structure, strategies and systems of the
organization.
Style
All organization has their own distinct culture and management style. It includes
the dominant values, beliefs and norms which develop over time and become
relatively enduring features of the organizational life. It also entails the way
managers interact with the employees and the way they spend their time. Culture
style of the organization shows how key managers behave in achieving the
organizations goals. The style of the organization is through leadership in which
leaders can establish unity of purpose and direction of the organization. They
create and maintain the internal environment in which people are fully involved in
achieving the organization goals.
In NTPC there is a Democratic style of leadership with centralization of authority
and responsibility to the divisions. The employees have been empowered to do
their work independently without pressures from their higher authority. They have
the ability to achieve their goals. The participation of workers in management is
considered vital in NTPC.
Staff
Organizations are made up of humans and its the people who make the real
difference to the success of the organization in the increasingly knowledge-based
society. The importance of human resources has thus got the central position in the
77
strategy of the organization, away from the traditional model of capital and land.
Staff deals with the human resource management processes used to develop
managers, socialization process, ways of introducing young recruits to the
company, ways of helping to manage the careers of employees.
Staff means that the company has hired people, trained them well and assigned
them to the right job for which they are best suited according to their
qualifications, skills, knowledge and experience. An enterprise may have a
comprehensive business play, a sound organization structure, but it cannot
accomplish results per plan without effective staff in the company. At present in
NTPC there are no recruitments as they are overstaffed. They only training and
development for the existing employees. NTPC maintained cordial and
harmonious relationship with the employees.
Skills
The capabilities and competencies that exist within the company. What it does best.
To improve the efficiency of the company. NTPC is giving full training to our
workers for better utilization of skills.
Shared Value
All members of the organization share some common fundamental ideas or guiding
concepts around which the business is built. This may be to make money or to
achieve excellence in a particular field. These values and common goals keep the
employees working towards a common destination as a coherent team and are
important to keep the team spirit alive. Shared values means that the companies
share the same guiding value. Values are things that would strive and even if they
78
where demonstrably not profitable act as an organization conscience providing

guidance in times of crisis.
At NTPC each individual department have specific goals and objectives within the
board framework of its Vision and Mission. They act as the framework for
achievement of organization objectives and goals efficiently and effectively. They
also bound to follow policies and procedures governed by the Government
Strategy
Strategy is the plan of action an organization prepares in response to, or
anticipation of, changes in its external environment. Strategy is differentiated by
tactics or operational actions by its nature of being premeditated, well though
through and often practically rehearsed.
Structure
Business needs to be organized in a specific from of shape that is generally referred
to as organizational structure. Organization is structured in a variety of ways,
dependent on their objectives and culture. The structure of the company often
dictates the way it operates and performs.
System
Every organization has some systems or internal processes to support and
implement the strategy and run day-to-day affairs. For example, a company may
follow a particular process for recruitment. These processes are normally strictly
followed and are designed to achieve maximum effectiveness.
79
CHAPTER- 4
SWOT ANALYSIS
Strenghts: Largest market share in domestic power generation and a broad customer
portfolio across the country.
Excellent track record of performance in project implementation and plant
operation.
Diversified thermal generation portfolio multiple sizes and fuel types.
Highly skilled and experienced human resources, exposed to state of the art
technologies in project execution and power generation.
High brand equity among shareholders.
Strong balance sheet ability to raise low cost debt.
Engineering skills in project configuration and package design.
Turnaround ability for old plants-demonstrated in the takeover plants of
Talcher, Tanda & Unchahar.
Thrust on reducing social costs of capacity growth strong execution of
Resettlement and rehabilitation plans.
High credit rating that is indicative of the confidence of lenders.
80
Weakness: Role ambiguity and dilution within different lends of the organization.
Low risk-diversification of business portfolio consists primarily of
generation assets.
Poor financial health of customers.
Functional orientation hampering cross functional perspective in decision
making.
Long and multi layered procurement process leading to long lead times and
process delay.
Fragmented IT architecture.
Gaps in HR systems such as performance management, rewards and
incentives and career development.
Inadequate deployment of a strong knowledge management system that
could assist in improving efficiency and effectiveness in all aspects of the
business.
81
Opportunities: Expand generation capacities by putting up thermal and hydro capacities;

maintain the position of a dominant generating utility in the Indian Power
sector.
Broad base fuel mix by considering imported coal, gas, domestic coal,
nuclear power etc with a view to mitigate fuel risks and maintain long run
competitiveness.
Expand services for R&M and O&M activities in the domestic as well as
international markets.
Backward integrate into fuel management to exercise greater control and
understanding of supply economics.
Lead the development and commercial deployment of non-conventional
energy sources especially in the distributed generation mode.
Improve collections by trading, direct sale to bulk customers and the active
role in allocation in new plants.
Execute increased number of power plants that classify for Mega Power
Projects status, thereby reducing the cost of the projects and power and
power generated.
Forward integrate into the distribution business in India.
82
Threats: Limited experience of operating in a truly liberalized environment with

competition.
Limited experience of operating in an independently regulated system.
Redirecting power may be constrained by inter-regional connectivity.
Downward regulatory and competitive pressure on tariffs.
Stringent norms for approval of increase in capital costs for projects in event
of time overrun.
Stringent environmental norms in the future may add to the cost of
generation.
Absence of an independent regular for coal industry and the delay in private
investments.
83
CHAPTER- 5
SUMMARY OF FINDINGS, CONCLUSIONS & SUGGESTIONS
Findings
Following are the findings arrived at from the study carried out at NATIONAL
THERMAL POWER CORPORATION LIMITED, Korba.
I observed from the study that the co-ordination and co-operation between
the workers and the top management is good.
The used zero based technique to prepared a new budgets which is very
beneficial for any company.
The labours who worked under contractors, NTPC will pay payment through
banks.
It was seen during the study that the company has provide safety
instruments for employees for their better performance.
NTPC, Korba are face shortage problem of coal which is decrease the
efficiency level.
Management has provided all welfare facilities required to the employees.
Meetings of AGM & DGM are held daily basis in every department which
are very much helpful to improve the efficiency.
I found that the company has their own transportation facility for the
employees who come from the city and remote areas.
84
It was heard that the company possess least percentage of accident rates
compare to similar organization.
It was observed that the company has taken up lot of initiates for
protecting the environment.
It seen during my stay in company that the company has best art of
technology.
Conclusions
Although from the above data and analysis it is concluded that the condition of
the villages is note that good. There are still problems related to the water
sources, ash pollution, drainage and sanitation but what I am analyzed during
my training period that NTPC has installed many new technologies in its plant
for reducing the pollution and specially the ash pollution. NTPC has adopted
measures to effectively utilize the ash by making ash brick sand also selling
them to other nearby organizations. It do a lot of plantation every year, recently
it had planted 3, 00,000 plants and is planning to plant around 10, 00,000
plants in coming years.
NTPC are also doing well to developing the village, It has provided many
syntax, constructed wells, installed hand pumps, arranged adult education
centers, skill up gradation centre for the adults so that they can earn their own
livelihood. It has also provided jobs to many villagers on contract basis.
Recently NTPC has promised to give Rs 10, 00, 00,000 for an Engineering
College in Korba and for IIT which is going to start in Raipur. For which it had
already given the first installment of Rs 4, 00, 00,000.
85
Suggestions
If they have their own mines it is very easy to get raw material.
They should keep on improve good relationship with the customers to get
more orders.
Provide good commission to the traders for further increase of sales.
Conduct more training and development programs in the organization for
Employers.
They should try to conduct safety awareness programs are regularly
arranged.
Provide awareness about the facilities provided in township.
Teamwork is essential for the development of any organization.
NTPC should try to capture all regions of India.
Develop the modern equipments which are in market.
IT creates energized work forces that evolve with the organization.
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Organization Study Conducted at NTPC, Korba

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