PROJECT REPORT

ON

INDUSTRIAL RESEARCH

A STUDY AT NTPC Ltd.

&

RELIANCE INDUSTRIES Ltd.

Submitted By:

GAURAV SONI

KUMAR DEEPAK

SAURABH MISHRA

SANYA GULATI

TABLE OF CONTENT

PARTICULARS

1. Acknowledgement

2. NTPC Profile

3. Nature of business

4. Location

5. Product portfolio

6. Swot analysis

7. Entreprenurship/Leadership

8. Compensation/rewards plan

9. Hiring policies

10. Training and development practices

11. Appraisals

12. Conclusions

13. Suggestions and Recommendations

ACKNOWLEDGEMENT

The project Industrial research has been conducted by our group members at NTPC Ltd. We have completed this project, based on the Primary research, under the guidance of Miss SMITA MENON.We owe enormous intellectual debt towards my guides Miss Smita menon, who have augmented my knowledge in the field of Industrial research.. They have helped us to learn about the process and giving me valuable insight into the field of industrial research.We are obliged to all the employees of the HR department for their cooperation during the research. Our increased spectrum of knowledge in this field is the result of their constant supervision and direction perspectives.We would like to thank all the respondents without whose cooperation my project would not have been possible.Last but not the least, We feel indebted to all those persons and organizations who have provided helped directly or indirectly in successful completion of this study.

Industry analysis

Size of the industry

Strengths

Developing economy: Historically, demand for petroleum products has traced the economic growth of the country. With GDP expected to grow at near 7% in the long-term, the energy sector would benefit from the same, going forward. To put things in perspective, diesel sales grew by nearly 12% (which constitutes 40% of the entire petro-products basket), petrol sales by 9% and a double-digit growth in LPG (liquefied petroleum gas) in 1QFY05. While this rate is not likely to sustain, we expect the industry to witness a 4% growth in the entire product basket in FY05 and beyond. Government decisions: The recent price increases and also the decision to allow oil companies to increase prices within a band of 10% augurs well for the industry. This step is likely to reduce government interference and provide some autonomy to oil companies when it comes to increasing petrol and diesel prices in order to protect margins. Further, the duty cuts are also likely to result in reduced under-recoveries by way of subsidies on LPG and kerosene.

Weakness:

Crude prices: Nearly 70% of India's crude requirements are fulfilled by imports and this figure is likely to increase going forward. Crude prices have breached the $45 barrier again and are likely to remain at around $40 per barrel range. As per IEA, India is one of the most inefficient countries among developing nations as far as energy usage is concerned. Such high crude prices are likely to impact margins of oil marketing companies. Given the political implications, retail prices may continue to lag the rise in input cost.Lack of freedom: Although the government has decided to provide autonomy to oil companies to increase petrol and diesel prices within a 10% band, other products such as LPG and kerosene continue to remain under the government controlled price mechanism. As per the current estimates, the subsidies on LPG amount to Rs 90 per cylinder after factoring in duty cuts and that on kerosene is over Rs 6 per litre. While the government has managed to reduce its share in subsidies, select oil companies are being forced to absorb the losses.

Opportunities:

Equity Oil: Major oil marketing companies are now venturing into upstream exploration and production activities so as to secure crude supply. To put things in perspective, IOC and OIL India are likely to jointly bid for oil fields aboard. At the same time, ONGC's wholly owned subsidiary, ONGC Videsh (OVL) has acquired stakes in over 9 countries in its quest to attain the 20 MMT (million metric tonnes) by 2020. This backward integration is an opportunity for IOC to secure at least 25% of its crude oil requirements for the refineries.

Natural Gas: Natural gas has the potential to be the fuel of the future with demand outpacing supply by more than two times. Such high scarcity of natural gas provides a big opportunity for oil companies. The below mentioned table indicates the allocation to the various core sectors and the shortage faced by them, thereby giving an idea of the potential for growth. Although Petronet LNG has now started importing natural gas, the future holds promise as Reliance Industries' Krishna Godavari Basin goes into commercial production in FY06 and Shell commences its terminal at Hazira. More exploration activities are in the pipeline and this could reduce the country's dependence on crude in the long term.

Threats:

Competition: Until FY04, oil-marketing companies had complete control over the downstream marketing business while private sector players were restricted to only refining. However, with entry of private players such as Reliance, Essar Oil and Shell (in the waiting), the sector is likely to witness increased competition going forward. The oil PSUs had hitherto developed a fortnightly pricing mechanism, which is likely to discontinue. The price of petrol and diesel is artificially kept high so as to cross-subsidize LPG and kerosene. Since private players will not be bound to provide for these subsidies, PSU marketing players are likely to suffer from lower throughput per outlet.

Continuing government interference: During the first six months of the current fiscal year, the oil marketing companies were refrained from increasing product prices due to political reasons. This affected margins of downstream players. Going forward, if the government interference continues, oil-marketing companies will be at a disadvantage. Although we believe the industry is likely to witness increased competition, the initial retail rush by private sector players has slowed down. PSU marketing companies have already stepped up their expansion plans and to that extent, have created significant entry barriers for private players. Although throughput per outlet (sales per outlet) is likely to decline in the future, we believe that any substantial entry of the private players would indirectly benefit the PSUs, as the government's pricing policy will not hold much water and the market forces would determine pricing.

Growth trends

The initiative set by the Government of India to attract global players in oil exploration, production and refining, to fulfill India’s large scale present and forecasted demand requirement seems to receive further momentum. Major global upstream and down stream (exploration and refining) heavyweights along with the service providers are evincing increasing interest to enter into the country. Thanks, to the new exploration and licensing policy of the Government of India. Entry of newer entrants holds significance, as many of the players and project service providers, willing to source business opportunities in the sector, are showing interest in setting up green field projects and also enter into technical collaborations with Indian counterparts, through technology transfer agreements for business promotion. This could entail larger foreign direct investment running into billions of dollars into the sector. Not the least, in plugging the country’s energy requirement deficit. This perception was evident in the recently held Pertrotech- 6th International Petroleum Conference and Exhibition in New Delhi. The event, saw major presence of large number of Indian and foreign Oil

and gas companies, consisting the likes of ONGC- as the major organiser of the event, LNG Petronet, Shell, Zarubezheneft of Russia, Ras gas of Iran among many others looking for sourcing opportunities into the hydrocarbon and gas sector .

INTRODUCTION

NTPC PROFILE

NTPC Limited is the largest thermal power generating company of India. A public sector company, it was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and Within a span of 31 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country.

NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under the 'Excellent category' (the best category) every year since the MOU system became operative.

Recognising its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector ‘Navratnas’- a potential global giant”.

POWER SECTOR

NTPC’s core business is engineering, construction and operation of power generating plants. It also provides consultancy in the area of power plant constructions and power generation to companies in India and abroad. As on date the installed capacity of NTPC is 27,904 MW through its 15 coal based (22,895 MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects (1,054 MW). NTPC’s share on 31 Mar 2007 in the total installed capacity of the country was 20.18% and it

contributed 28.50% of the total power generation of the country during 2006-2007.

NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. NTPC is committed to the environment, generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. NTPC has undertaken massive afforestation in the vicinity of its plants. A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been established in NTPC with the assistance of United States Agency for International Development. (USAID). Cenpeep is an efficiency oriented, eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India

Over the last three decades, NTPC has spearheaded development of thermal power generation in the Indian power sector. In this process, it has built a strong portfolio of coal and gas/liquid fuel based generation capacities. The company has made initial forays in the area of hydropower development and plans to have a significant share of hydro power in its future generation portfolio.

The Indian power sector is witnessing several changes in the business and regulatory environment. The legal and policy framework has changed substantially with the enactment of the Electricity Act 2003. In the foreseeable future, India faces formidable challenges in meeting its energy needs. Recently, a draft integrated energy policy has been issued, which addresses all aspects including energy security, access, availability, affordability, pricing, efficiency and environment

Growth of the Generation Business

Developing and operating world-class power stations is NTPC’s core competence. Its scale of operation, financial strength and large experience serve to provide an advantage over competitors. To meet the objective of making available reliable and quality power at competitive prices, NTPC would continue to speedily implement projects and introduce state-of-art technologies.

Total capacity portfolio

India’s generation capacity can be expected to grow from the current levels of about 120 GW to about 225-250 GW by 2017. NTPC currently accounts for about 20% of the country’s installed capacity and almost 60% of the total installed capacity in the Central sector in the country.. Towards this end, NTPC would target to build an overall capacity portfolio of over 66,000 MW by 2017.  .

Diversification along the Value Chain

NTPC has achieved the distinction of being the largest thermal generating company in India. In the past, this focus was adequate as the industry was highly regulated with limited diversification opportunities.

Establishing a Global Presence

To become a truly global company serving global markets, it is essential for NTPC to establish its brand equity in overseas markets. NTPC would continue to focus on offering Engineering & Project Management Services, Operations & Maintenance services, and Renovation & Modernization services in the international market.

Regulatory Framework

Responsibility for the development of the power industry is shared between the Central Government and the State governments. The Electricity Act 2003 provides the overall legislative framework for the sector. The government has also set up Central Electricity Authority which advises the MoP on electricity policy and technical matters. The government has also constituted Central Electricity Regulatory Commission (“CERC”) as per legislative requirement to regulate the tariffs for the Central Power utilities and other entities with interstate generation or transmission operations. The Electricity Act also requires state governments to set up State Electricity Regulatory Commissions for the rationalization of energy tariffs and the formulation of policy within each state. As of March 31, 2006, twenty-four states have set up their regulatory commissions. Recent Policy Initiatives of Government with respect to Power Sector Ultra Mega Power Project. National Electricity Policy Government of India has also formulated the National Electricity Policy as required under the Electricity Act. The policy aims to accelerate development of the power sector,provide supply of electricity to all areas and protect interests of consumers and other stakeholders. The objectives of the policy include access to electricity to all households by the year 2012, power demand to be fully met, supply of reliable and quality power, per capita availability of electricity to be increased to over 1000 units by 2012, commercial viability of electricity sector and protection of consumers’ interests. The Policy has set the goal of adding new generation capacity of more than one lakh MW by the year 2012 including a spinning reserve of 5% in the. The reforms taking place in the sector are expected to bring in more investments into sector and thus competition is expected to increase. We believe that NTPC is well positioned to take benefit of the opportunities in the sector and maintain its market share. Risk Management. As a further step towards institutionalising this system we have now put in place a Risk Management Policy. As an initial step the policy has identified the risks being faced by the company, the short-term as well long-term measures to mitigate those risks and also a reporting system which would enable critical risks beyond certain tolerance levels to be reported for further action.

CHALLENGES AND OPPORTUNITIES FACING BY NTPC

: Diesel Fuel prices have increased dramatically, as high as 75%. This is causing major rate pressures in communities that rely on diesel for their generation. NTPC has worked to minimize this impact to the extent possible (see sidebar); however, in many of the communities served by NTPC, similar to other remote parts of Canada, there are no practical alternatives to generating power with diesel fuel. Planned end of “credits” to customers: During previous rate applications rate impacts to customers were offset by credits in amortization expense and from other revenue received from the government for pension expenses. These credits were temporary and this rate application incorporates the impact of the termination of these credits. Increased Regulation and tight Labour and Contractor markets: Safety, environment, human rights, access t information and fuel facility standards are just some of the areas where regulation has grown since the last rate application. Responding to changes in regulation requires both human and financial resources and NTPC’s 2006/08 rate application includes resources to help it meet its obligations under the new regulation regimes. Markets for labour are extremely tight today, with wages for skilled workers (and now contractors) at unprecedented levels. This reflects the labour markets in Alberta and BC for skilled workers for the oilpatch and Olympics, as well as utility competition for workers such as line trades. As a recent example, one utility in Canada has a national line trades recruiting program underway, including major signing bonuses. With respect to contractors, NTPC in many cases now has difficulty soliciting sufficient bids for many projects, and bids often contain constraints on timing or pricing that were unheard of until recent years.

Inflation Compared to Lack of Sales Growth: Although inflation has occurred at 2-3% a year (8-12% since the last GRA), NTPC’s loads in most cases are not growing, and in some cases (like the Yellowknife mines) have dropped substantially. This means there is no growth in revenues to aid in addressing inflationary pressures. The retail systems have also seen modest to major reductions in residential and streetlight sales (due in part to energy efficiency).

MAJOR PLAYERS

BHEL

BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector,. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc.

ANDREW YULE & CO. LTD.Andrew Yule & Co. Ltd. is a medium-large (~Rs. 6 Billion / US$ 124 mm) Indian manufacturing and industrial conglomerate, approximately 97.5% owned by the Indian Government. It is the main company owned by the Yule Group.It was incorporated as a private company in 1919.

Bharat Bhari Udyog Nigam LimitedGovernment of India Enterprise,  Bharat Bhari Udyog Nigam Limited (BBUNL) is a Holding Company comprising of five Eastern India based engineering companies under its umbrella as its wholly owned subsidiary units.  The Group is engaged in the design, manufacture, supply, erection and commissioning of a wide range of Capital Goods and Turnkey Projects required by the Core Sector Industries such as Railways, Ports, Coal Mines, Power, Petroleum and Oil, together with Construction of Highways & Flyovers. With an annual turnover of around US Dollar 100 million and having a total fabrication capacity of 24,000 MT per annum, employing about 3,372 skilled personnel, BBUNL group companies have been involved in most of the projects of national importance.

Bharat Yantra Nigam Limited "

The one-source, multi-resource engineering group" The Bharat Yantra Nigam Ltd  (BYN) is a holding company having in its fold six technically competent engineering organisations   forming one of the most versatile engineering groups.The Group caters to the core sector industries with over 50 products, most of which are backed by foreign collaboration. BYN provides its customers with one-source, multi-resource heavy engineering solution and packages, including design, engineering, construction, fabrication, manufacture and project management.

BHPV ( A BYN's Group Company )Bharat Heavy Plate & Vessels Ltd (BHPV) an ISO 9001:2000 Certified Company situated at Port city of Visakhapatnam, AP India is a leading organization for Engineering, Manufacturing Testing, Installation & Commissioning of various equipment, Cryogenics combustion System, and Turn-key packages required for Process Plant Industries Like Refineries, Petrochemicals, Chemicals, Oil and Gas, Fertilizers, power (including Nuclear), Steel etc . 

GOVERNMENT INITIATIVES TO MEET POWER DEMAND IN THE COUNTRY

Govt. of India has initiated a massive capacity addition programme and has taken steps to correct existing hydro- thermal mix. A 100,000 MW additional capacity shall be made available during 10th and 11th Plan, which shall improve hydro share to 32% against 25% as of now.

Hydropower is renewable economic, non-polluting and environmentally benign source of energy. Hydro power stations have a long useful life and inherent ability for instantaneous starting, stopping, load variations etc. and help in improving reliability of power system. They are the best choice for meeting peak demand. The generation cost is inflation free. This made Government of India to formulate a policy on hydropower development in 1998. The main objectives being exploitation of vast hydroelectric potential at a faster pace, promoting small mini hydel projects, strengthening the role of PSUs., increasing private investment etc. To achieve the objectives, Government proposed various measures like increased funding, basin wise development, to evolve an approach to develop hydro potential which is locked up on account of interstate river issues, renovation, modernization and uprating, rationalization of tariff etc. Recently Hon’ble Prime Minister of India launched a programme where in additional 50,000 MW of hydropower shall be developed.

Government’s initiative to establish Power Exchanges in India has benefitted the country.

“Power is a high priority sector for the Government and policy initiatives will continue to promote competition, efficiency, restructuring and investment,”

During the year the total number of members and clients of IEX has crossed 130 and over 3,600 million units of power worth Rs. 3,000 crore has been traded through the Power Exchange.

The Electricity Act, 2003 has been brought about to facilitate private sector participation and to help cash strapped SEBs to meet electricity demand. It envisages competition in electricity market, protection of consumer’s interests and provision of power for all.

The Act provides for National Electricity Policy, rural electrification, open access in transmission, phased open access in distribution, mandatory SERCs, license free generation and distribution, power trading, mandatory metering, and stringent penalties for theft of electricity.

Considering the present inter-State power trading scenario and the need to promote power trading in a free power market, Central Electricity Regulatory Commission (CERC) approved the setting up of IEX as the first power exchange in India. (ANI)

PORTER’S FIVE FORCE MODELPorters fives forces model is an excellent model to use to analyse a particular environment of an industry. So for example, if we were entering the PC industry, we would use porters model to help us find out about:

1) Competitive Rivalry2) Power of suppliers3) Power of buyers4) Threats of substitutes5) Threat of new entrants.

The above five main factors are key factors that influence industry performance, hence it is common sense and practical to find out about these factors before you enter the industry. Lets look at them below.

Competitive rivalry

A starting point to analysing the industry is to look at competitive rivalry. If entry to an industry is easy then competitive rivalry will likely to be high. If it is easy for customers to move to substitute products for example from coke to water then again rivalry will be high. Generally competitive rivalry will be high if:

• There is little differentiation between the products sold between customers.• Competitors are approximately the same size of each other.• If the competitors all have similar strategies.• It is costly to leave the industry hence they fight to just stay in ( exit barriers)

 Power of suppliers

Suppliers are also essential for the success of an organisation. Raw materials are needed to complete the finish product of the organisation. Suppliers do have power. This power comes from:

• If they are the only supplier or one of few suppliers who supply that particular raw material.• If it costly for the organisation to move from one supplier to another (known also as switching cost)• If there is no other substitute for their product.

Power of buyers

Buyers or customers can exert influence and control over an industry in certain circumstances. This happens when:

• There is little differentiation over the product and substitutes can be found easily.• Customers are sensitive to price.• Switching to another product is not costly.

Threat of substitutes

Are there alternative products that customers can purchase over your product that offer the same benefit for the same or less price? The threat of substitute is high when:

• Price of that substitute product falls.• It is easy for consumers to switch from one substitute product to another.• Buyers are willing to substitute.

Threat of new entrant

The threat of a new organisation entering the industry is high when it is easy for an organisation to enter the industry i.e. entry barriers are low.

An organisation will look at how loyal customers are to existing products, how quickly they can achieve economy of scales, would they have access to suppliers, would government legislation prevent them or encourage them to enter the industry.

SWOT ANALYSIS OF NTPC

KEY STRENGTHS

Largest market share in the domestic power generation and a broad customer portfolio across the country.

Excellent track record of performance in project implementation and plant operations.

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.

Navratna status

High brand equity among stakeholders

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 take-over plants at Talchar, Tanda and Unchachar.

High credit rating indicating the high confidence of leaders

Established systems and procedures to institutionalize excellence in business operations- received ISO accreditation in several functions/areas.

In-house training facility PMI,CENPEEP,R&D etc that assists in development of the sector.

Thrust on reducing social cost of capacity growth-strong execution of Resettlement & Rehabiliation plans.

KEY WEAKNESS

Low risk-diversification of business portfolio: Consists primarily of generation of generation assets.

Functional orientation hampering cross-functional perspective in decision making.

Long and multi layered procurement process leading to long lead times and process delays.

Fragmented IT architecture

Gaps in HR systems such as performance management, rewards and incentives and career development.

Inadequate development of a strong knowledge management system that could assist in improving efficency and effectiveness in all aspects of the business.

Hierarchy for decision making that affects responsiveness.

Role ambiguity and dilution within different levels of the organization

KEY OPPORTUNITIES

Expand generation capacities by putting up thermal and hydro capacities, maintaining 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.

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 integration into the distribution business in India.

KEY THREATS

Entrance of private players in the Indian Power Sector.

Low availability of fuel mix in India and high import prices might affect the cost of electricity generation.

The existence of PSU culture affecting the organizational efficiency in comparison of the Private work culture.

Lack of commitment to be aware of the ever changing needs of the clients/customers.

PEST ANALYSIS

POLITICAL –

India is the biggest democracy in the World. The government type is federal republic. Based on English common law; judicial review of legislative acts; accepts compulsory ICJ jurisdiction with reservations; separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the country is more or less stable. For most of its democratic history, the federal Government of India has been led by the Indian National Congress (INC). State politics have been dominated by several national parties including the INC, the Bharatiya Janata Party (BJP), the Communist Party of India (CPI), and various regional parties. In the 2004 Indian elections, the INC won the largest number of Lok Sabha seats and formed a government with a coalition called the United Progressive Alliance (UPA), supported by various left-leaning parties and members opposed to the BJP. Overall India currently has a coalition led government and both major political parties the UPA and BJP whichever comes in power.

ECONOMIC – The economic factors in India are improving continuously. The GDP (Purchasing Power Parity) is estimated at 2.965 trillion U.S. dollars in the year 2007. The GDP- per Capita (PPP) was 2700 U.S. dollars as estimated in 2007. The GDP- real growth rate in 2007 was 8.7%. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U.S. and China. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5.5 billion a year earlier. There is a continuous growth in per capita income; India’s per capita income is expected to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07. This will lead to higher buying power in the Hands of the Indian consumers.

The economy of the country is growing. India's economy is diverse. Major industries include automobiles, cement, chemicals, consumer electronics, food processing, machinery, mining, petroleum, pharmaceuticals, steel, transportation equipment, and textiles.[1]

However despite economic growth, India suffers from poverty. 27.5% of the population was living in poverty 2004–2005.[28] In addition, 80.4% of the population live on less than USD$2 a day.[29]

SOCIAL – India is the second most populous nation in the world with an approximate population of over 1.1billion people. This population is divided in the following age structure: 0-14 years – 31.8%, 15-64 years – 63.1% and 65 years and above – 5.1 There are two main language families in India, the Indo-Aryan and the Dravidian languages. About 69% of the people speak an Indo-Arayan language, about 26% speak a Dravidian language. Other languages spoken in India come from the Austro-Asiatic group of languages. Around 5% of the people speak a Tibeto-Burman language.

Hindi is the official language in India with the largest number of speakers. It is the official language of the union. Native speakers of Hindi is about for 41% of the Indian population (2001 Indian census). English is also used, mostly for business and in the administration. It has the status of a 'subsidiary official language. The constitution also recognises in particular 21 other languages. For these there are either many people speaking them, or they have been recognised to be very important for Indian culture. The number of dialects in India is as high as 1,652.

In the south of India, many people speak Kannada, Telugu, Tamil and Malayalam. In the north, many people speak Chhattisgarhi, Punjabi, Bengali, Gujarati, and Marathi, Oriya, and Bihari. About 70%

of Indians live in farms. The largest cities in India are Mumbai, Kolkata, Delhi, Chennai, Bangalore, Hyderabad, and Ahmedabad. India has 23 official languages Altogether, there are 1,625 languages that are spoken in India.[

TECHNOLOGICAL- The technological knowhow and expertise will also enter the Indian market with an increase in competition.. Technology has created a society which expects instant results. This technological revolution has increased the rate at which information is exchanged between stakeholders. A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment.

However an ability to react quickly also creates extra pressure as businesses are expected to deliver on their promises within ever decreasing timescales..

For example the Internet is having a profound impact on the marketing mix strategy of organisations. Consumers can now shop 24 hours a day from their homes, work, Internet café’s and via 3G phones and 3G cards. Some employees have instant access to e-mails through Blackberrys but this can be a double edged sword, as studies have shown that this access can cause work to encroach on their personal time outside work.

The pace of technological change is so fast that the average life of a computer chip is approximately 6 months. Technology is utilised by all age groups, children are exposed to technology from birth and a new generation of technology savvy pensioners known as “silver surfers” have emerged. Technology will continue to evolve and impact on consumer habits and expectations, organisations that ignore this fact face extinction.more haphazard indicating a breakdown of social mores and structures that promoted urban regulations and enforced construction codes.

COMPENSATION/REWARDS PLANS

DEARNESS ALLOWANCE

(For Executives, Supervisors & Workmen)

The Dearness Allowance in the revised pay scales as on 1-1-97 shall be zero, w.e.f. 1.4.97, the DA payable would be governed as per the following provisions:

(a) Dearness Allowance would be revised on 1st April, 1st July, 1st October and 1st January of each year based on the percentage increase in the quarterly average of the AICPI for the Quarters ending February, May, August and November respectively over AICPI 1708.(Basic 1960=100)

(b)  There shall be 100% neautralisation of DA for all employees. Based on the revised DA scheme, the payment Dearness allowance w.e.f 1.1.97 is enclosed at Annexure ‘A’.

(c)  DA shall be payable on Basic pay and special pay, if any 

CITY COMPENSATORY ALLOWANCE

Employees borne on the regular establishment of the Company other than those appointed on casual/daily rated/daily but monthly paid basis; will be paid City Compensatory Allowance at the rates, as given here under:

i)     EXECUTIVES & SUPERVISORS:/ Workmen

CCA will be paid as per the following rates, w.e.f 01.08.97, based on the revised classification of cities as announced by the Government of India:

(Amount – Rs. Per Month)

BP Month (Rs.) A-1 City A City B-1City B-2City

4001-5250 125 95 65 35

5251-6499 200 150 100 65

6500-above 300 240 180 120

However, in case of any workmen if the revised amount becomes less than the existing amount the existing amount will be paid on protection basis to such workmen. 

The term 'Pay', as above, includes in addition to basic pay, special pay, personal pay, deputation (duty) pay.

CCA at the above rates will be admissible from the date of joining duty at the places mentioned above.Payment of CCA at the above rates will be governed and regulated by the same terms,

conditions and rules, as laid down in the Govt. of India, Ministry of Finance, Office Memorandum No. F2(37)-E.II(B)/64 dated 27.11.1965 as amend- ed or modified from time to time.

HOUSE RENT ALLOWANCE RULES

House Rent Allowance is payable to the eligible employees who are not pro- vided with the residential accommodation by the Company at the places where the Company has its Projects/Units/Offices etc.

APPLICABILITY

For the purpose of House Rent Allowance, the employees eligible are those borne on the regular establishment of the Company including probationers, lien holders, deputationists (unless otherwise specified in their terms of deputation) and persons appointed on contract basis (unless otherwise specified in the terms of their contract) but excluding apprentices/trainees whether engaged under Company's own training scheme or under the Apprentices Act, 1961 (save to the extent specifically mentioned in these Rules) and muster roll, daily rated, casual, badli or substitute employees.

DEFINITIONS -

In these rules, unless the context otherwise requires:

"Company" means the National Thermal Power Corporation Limited including the offices/projects/units under its management.

"Places" means A1,A,B-1, B-2 & C Class cities notifïed by the Government of India for the purpose of oayment of HRA to the Central Govt. employees, from time to time and other unclassified localities.

"Family" means employee's spouse, legitimate children and step children (including legally adopted children) and parents (parents-in-law in case of female employees).

Only one spouse is included in the term "Family".

GENERATION INCENTIVE SCHEME

The Scheme shall be called "NTPC Power Generation Incentive Scheme".

BASIC CONSIDERATIONS

The purpose of any Incentive Scheme is to motivate the employees to give their best. In the case of a power plant, the incentive plan also takes into account the maintenance aspect of the plant while motivating employees to maximize generation. Any Scheme which encourages maximization of Generation only in the short term may be self defeating as it leads to irreparable damage to plants and machinery because of insufficient motivation to employee of the proper upkeep and regular maintenance of the Plant. A successful Incentive Scheme, hence, should strike a balance between short

range and long range plant requirements and should achieve a good blend of the two in such a way as to optimize generation on a sustained long range basis.  

The parameters for payment have been determined to encourage better maintenance for higher availability of plant..

APPLICABILITY

The Scheme covers all regular employees of NTPC directly or indirectly engaged in Generation of Electricity. The Scheme will not be applicable to:-

a)Apprentices under Apprentices Act and Trainees

b)Casual or daily rated employees

Monthly Incentive

The monthly incentive will be paid based on Equivalent Availability Factor (EAF%) achieved during the month.

Quarterly Incentive

The quarterly incentive will be paid based on Equivalent Availability Factor (EAF%) achieved during the quarter. The quarter for this purpose will be April-June, July-Sept., Oct.-Dec. and Jan.-March of the financial year.

yearly Incentive

The yearly incentive will be paid based on Equivalent Availability Factor (EAF%) achieved during the year. The year for this purpose will be April-March of the financial year.

OTHER GENERAL CONDITIONS

The employees will be entitled to incentive payments on pro-rata basis for actual period of attendance. The period of training in India for a duration of not more than 15 days and casual leave will be treated as attendance for the purpose of incentive payment.

The amount of Incentive earnings will neither be termed as pay nor allowance, nor wages. Accordingly, this amount would not count for any service benefits i.e computation of House Rent Allowance, Compensatory Allowance, cash compensation, encashment of leave, pay fixation, Provident Fund, Pension or Gratuity etc.

Employees may be transferred from one department/division to another. In such cases their entitlement for incentive will be determined as per the entitlement of the department/division in which they are actually posted.

Relevant particulars and data relating to generation, oil consumption, attendance etc., will be finalized on the basis of records and accounts maintained by the Company.

NTPC INCENTIVE SCHEME FOR ACQUIRING HIGHER/ADDITIONAL QUALIFICATIONS

The NTPC Incentive Scheme for acquiring higher/additional qualifications has been formulated with a view to encouraging employees to acquire higher/ additional qualifications so as to enable them to improve their knowledge and professional competence for better and more efficient performance in their respective functional areas.

APPLICABILITY:

The Scheme shall be applicable to all employees and drawing pay in the regular pay scales of the Company excluding the following :-

i)Deputationists;

ii)Apprentices/trainees engaged under either Company's own training scheme or Apprentices Act, 1961; and

iii)Muster roll, daily-rated, casual, badli or substitute employees.

OTHER CONDITIONS :

If an employee, who has received the Incentive under the Scheme, leaves the services of the Company within a year of the receipt of the incentive, he shall be liable to refund the same to the company before his Resignation is accepted.

LONG SERVICE AWARD SCHEME

The Scheme shall be called the “NTPC Long Service Award Scheme”

OBJECTIVE:

Rewarding the employees suitably in recognition and appreciation of long, continuous and satisfactory service rendered by them, so as to further motivate them and strengthen their range of belongingness to the Company.

COVERAGE:

The Scheme shall be applicable to all regular employees borne on the establishment of the Company, but shall exclude the following:

(i)Casual, daily rated, temporary or muster roll employees; and

(ii)Persons in employment of the Company on contract basis.

ELIGIBILITY:

An employee shall be eligible for grant of awards under the Scheme on completion of 15 years and 25 years of continuous service.

THE AWARD:

(a)On completion of 15 years of continuous service, the employees shall be presented with a silver plaque weighing 110 gms.

(b)On completion of 25 years of service, the employees shall be presented with a silver plaque weighing 250 grams.

HIRING POLICY

Manpower Planning and Budgeting

In all Divisions and Projects of the Company, before the end of August every year, each Department will review the adequacy or otherwise of the available manpower with reference to the tasks and targets and determine the additional requirements of manpower in qualitative and quantitative terms for the immediately following financial year.

Creation of Posts

For the purpose of according sanction to the creation of regular, trainee and temporary posts in different categories within the approved budget provisions and approving appointments to such posts, the following will be the competent authorities to be referred to hereinafter as the Appointing Authority5.

Posts

 

Authority

 

 

 (a) Top posts, as per Board's resolution under Agenda item 5-4, other than posts to which appointments are made by the President

 

(b) All executive posts in the level of E7

 

 

(c) all executive posts including Executive Trainees other than those included in (a) & (b)

 

 

Board of Directors

 

 

Chairman & Managing Director

 

 

 Director (HR)

 

 

 

Job specifications indicating the eligibility requirements in terms of minimum educational and/or professional qualifications, length, nature of quality of experience, upper age limit etc. and a general outline of the role and responsibilities will be laid down in respect of each job title along with the pay scale or consolidated daily/monthly wage rate in which the posts in the category will be operated.

Agencies for Recruitment

All recruitment to the executive cadres inclusive of executive trainees for all Divisions and Projects of the company will be centralized in the Corporate Center and dealt with by the Corporate HR Division.

Until such time as the Company's Projects do not have their separate training facilities, all recruitments of Diploma training scheme will be done by the Corporate HR Division.

In respect of all other non-executive personnel, recruitments will be done by the HR Department of the Division/Project concerned.

Sources and Modes of Recruitment

For recruitment of professional personnel in Company's executive cadre including executive trainees, selection, will be made on all India basis and for this purpose, the posts to be filled will be duly notified through press advertisements and Company Notice Boards and/or through circulars issued to Government Departments and Public Sector Undertaking where suitable candidates of the required expertise are expected to be available.

In respect of recruitment to non-executive posts carrying a basic pay of above Rs. 2500/- per month, recruitment will be made from the region comprising the State in which the Division/Project/Establishment concerned is located and the neighboring  

Application Formalities

No appointment other than appointments on deputation will be made in the Company except on the basis of an application giving details and particulars as may be prescribed from time to time. While as a rule, for all recruitments applications should be in the forms prescribed for different categories from time to time as far as possible, applications on plain paper may also be resorted to wherever necessary keeping in view the urgency for manning the post and the lead time involved.

Forwarding of Applications of Candidates from Government and Public Undertakings

Consistent with the guidelines issued by the Bureau of Public Enterprises vide BPE's Memo No.2 (172)/71- BPE (GM) dated August 18, 1971 NTPC will accept applications only if they are forwarded through proper channels in respect of persons employed in the Central and State Governments and in those Public Undertakings whose rules provide for carry forward of gratuity, leave, provident fund and other benefits or transfer on movement to another organization in the public sector with the consent of both the organizations concerned.

Processing of Applications

All applications received against a specific notification/ advertisement will be subjected to a preliminary scrutiny by the HR Department who will ensure that:

(a) Applications are duly completed and accompanied by the prescribed application fees and were received within the permitted time.

(b)Age of the applicant is within the prescribed limit.,

(c)Qualifications and experience of the candidates conform to those prescribed

(d) Applications have been submitted 'Through Proper Channel' whenever required.

(e) In the case of candidates from Schedule Castes and Scheduled Tribes, OBC, Ex-Servicemen etc. application is accompanied by a certificate to that effect from the competent authority.

After the applications are finally screened, HR Department will prepare a final list of eligible candidates in order of merit based on the criteria determined in the course of earlier scrutiny and other relevant factors keeping in view the reserved vacancies and the special relaxation for candidates belonging to Scheduled Castes and Scheduled Tribes etc. and this short list after approval by the appointing authority or the officer to whom powers in this behalf are delegated will form the basis for candidates being called for selection test and/or interview.

Selection Process and Constitution of Selection Boards

Various selection methods like trade tests, written tests, group discussions etc. may be employed depending on the requirements of the job for which selection is being made and for this purpose, the HR Department in association with the concerned Department wherever necessary will evolve and prescribe uniform methods of selection in all Units for similar jobs.

All direct appointments to every post in the Company, whether regular, temporary, trainee or casual, except appointments on deputation from Government organisations and public sector undertakings, will be made only, on recommendation of a duly constituted Selection Board/ Committee.

The candidates included in the short-list of rated applications referred to in Clause 13.5 above will be called upon to undergo a prescribed selection process which may consist of an interview before the Selection Board, or a test and/or group discussion followed by an interview of all candidates before the Selection Board, or an elimination test and/or group discussion followed by an interview before the Selection Board of only those who qualify in the test and/or group discussion.

All candidates called for interview who come from places beyond a distance of 32 kms will be reimbursed actual expenses incurred on travel to and from the place of interview on production of money receipt, or any other supporting documentary evidence in respect of the onward journey.

The call letters to the candidates for appearing for interview before the Selection Board, to be issued by registered post or under certificate of posting, not later than ten clear days before the date of interview should, inter alia state clearly the post and the grade/grades for which the candidate will be considered and other formalities that he will be required to comply with prior to the interview.

HR Department will issue the offers of appointment in the prescribed form in duplicate and the contract of appointment will be completed on receipt of the letter of acceptance along with the copy of offer duly signed by the candidate.

Medical Fitness

Nobody will be appointed to any post in the Company whether regular, temporary, trainee or casual unless he is declared physically fit as per the medical fitness standards prescribed for the post after a medical examination by the Company's authorised medical officer/officers at the time of appointment in the Company's service.

In case of recruitment to executive and supervisory posts, prescribed application blanks will include a column for the candidates to give names of two references to whom, in the event of selection of the candidate, reference will be made in the prescribed form for eliciting their views and opinions on the suitability of the candidate for employment in the Company.

TRAINING AND DEVELOPMENT

A grade/level/category-wise in-house training programme, normally based on a template course design, and conducted to improve competency base of employees as felt necessary by the organisation. The List of current Planned Interventions is given in Annexure I.

TRAINING TARGET:

It shall be the endeavour of the Company to provide seven mandays of training in a training year to every employee.

Employees shall make full use of the Training Systems to support this endeavour to create a learning organization.

AGENCIES OF TRAINING:

The agencies that shall deal with the training function in the Company shall include:

Power Management Institute: PMI shall be the apex-training institute and the nodal agency for Training for the Company. It shall cater to the advanced training needs of all executives of the Company. It shall specialise in Management Development and advanced technical areas including Information Technology and shall serve as knowledge dissemination centre for the Company as a whole.

TRAINING NEED ANALYSIS (TNA):

The objectives of Training Need Analysis are to

systematically identify developmental needs of employees

integrate so-identified individual needs with organisational needs

enhance relevance and acceptance of training programmes

The training needs expressed should be related to the employee’s present responsibilities and his likely areas of future assignments.

 Training Needs would be classified as Essential and Desirable along two time-frames of short-term (for immediate job performance) and long-term (for future job performance, in next two years or so ).

A training code directory, listing out codes for various training courses/programmes shall be evolved, maintained and circulated by PMI for uniform compilation and classification of training needs identified and training programmes attended by employees.

NOMINATION FOR TRAINING PROGRAMMES:

Planned Interventions:

The Training Centre/PMI would send to departmental training co-ordinators, schedules for the next three programmes of a planned intervention, who in turn shall seek preferences for nomination from the employees in the target group and send the list of employees to the Training Centre/PMI.

External Training:

Employees may generally be considered for nomination to training programmes only in the areas identified in the Training Needs Analysis and after verifying if a similar programme is being conducted in-house during the year.

 Training centres shall, as far as possible, try to provide training to employees in-house. Employees will normally be nominated for external programmes only for advanced programmes or where conducting the programme in-house is not feasible.

 

  

PERFORMANCE APPRAISAL

The performance Appraisal System for executives of NTPC has been evolved after wide ranging discussions abd participation of all concerned at various stages. With a view to meeting the individual

and organizational needs. The System is an outcome of these deliberations on the objectives, forms and the process of the appraisal.

Process of Appraisal   

The Performance Appraisal System in NTPC is essentially an appraisal by results. It will be based on work planning and review, where an employee is evaluated against the targets/performance norms set jointly by him and his superior which in turn are based on the departmental/Group norms and targets and the overall organizational plans.

Periodic reports on performance for each employee should be correlated and form the basis for arriving at the annual assessment. The manner in which the monthly/periodic reports are translated into an annual assessment will be based on the relative priorities of tasks/performance norms assigned and fulfilled and extent to which constraints were overcome. The appraiser should have a review discussion with the employee before making his annual assessment

Appraisal for each executive will be done by the Reporting Officer ( to whom the executive reports) and by Reviewing Officer (to whom the reporting officer reports), which, it is believed, will provide checks and greater objectivity. The General Manager/Executive Director of the respective division will Countersign the report in case of agreement, and record his assessment wherever it differs from those of the reporting and reviewing officers. The Countersigning authority with respect to appraisal reports of

TABLE OF CONTENT

PARTICULARS PAGE NO.

1. Acknowledgement

2. REL Profile

3. Nature of business

4. Location

5. Product portfolio

6. Swot analysis

7. Entreprenurship/Leadership

8. Compensation/rewards plan

9. Hiring policies

10. Training and development practices

11. Appraisals

12. Any other innovative steps taken by organization

13. Conclusions

14. Suggestions and Recommendations

15. Bibliography

ACKNOWLEDGEMENT

The project Industrial research has been conducted by our group members at RPL Ltd. We have completed this project, based on the Primary research, under the guidance of Mr ALOK VARMA.We owe enormous intellectual debt towards my guides Mr.ALOK VARMA, who have augmented my knowledge in the field of Industrial research.. They have helped us to learn about the process and giving me valuable insight into the field of industrial research.We are obliged to all the employees of the HR department for their cooperation during the research. Our increased spectrum of knowledge in this field is the result of their constant supervision and direction perspectives.We would like to thank all the respondents without whose cooperation my project would not have been possible.Last but not the least, we feel indebted to all those persons and organizations who have provided helped directly or indirectly in successful completion of this study.

INTRODUCTION

REL PROFILE

VISIONTo be amongst the most admired and most trusted integrated utility companies in the world, delivering reliable and quality products and services to all customers at competitive costs, with international standards of customer care - thereby creating superior value for all stakeholders.To set new benchmarks in standards of corporate performance and governance through the pursuit of operational and financial excellence, responsible citizenship, and profitable growth.

Mission - attain global best practices and become a world-class utility. To provide uninterrupted, affordable, quality, reliable and clean power to millions of customers. To achieve excellence in service, quality, reliability, safety and customer care. To earn the trust and confidence of all customers and stakeholders and by exceeding their expectations, make the company a respected household name. To work with vigour, dedication and innovation, towards achieving the ultimate goal of total customer satisfaction. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organization. To be a responsible corporate citizen, nurturing human values and concern for society, the environment and above all, people. To contribute towards community development and nation building. To promote a work culture that fosters individual growth, team spirit and creativity to over come challenges and attain goals. To encourage ideas, talent and value systems. To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings.

Our ValuesWe believe that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring. These values are not to be lost sight of by anyone at RELIANCE ENERGY LIMITED under any circumstances irrespective of the goals that are intended to be achieved. To us, means are as important as the ends.Reliance Power Limited (RPower) is a part of the Reliance Anil Dhirubhai Ambani Group, one of the India’s largest business houses .RPower is engaged in the development, construction and operation of power generation projects with a combined planned capacity of 33,480 MW, the largest portfolio of private power generation assets under development in India. The Company has the unique distinction of securing three out of four Ultra Mega Power Projects (UMPPs) awarded by the Government of India on the basis of tariff based competitive bidding at Sasan in Madhya Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand. Our projects are diverse in geographic location, fuel source and offtake. RPower strongly believes in clean green power and our projects will be using technologies with minimum environment impact.They include seven coal-fired projects (18,580 MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the "KG Basin") off the east coast of India, and seven hydroelectric projects (4,620 MW), three of them in Arunachal Pradesh and one in Uttarakhand. Reliance Power has been successful in bagging three Ultra Mega Power Projects (3,960 MW each at Sasan in Madhya Pradesh & Tilaiya in Jharkhand and 4,000MW at Krishnapatnam in Andhra Pradesh). The 7,480 MW project to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired power project at a single location in the world. We intend to sell the power generated by these projects under a

combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers.

Key Developments

Financial ClosuresAs you are aware, our Company has embarked upon a capacity addition programme in generation that is unparalleled in the history of the Indian Power Sector. We plan to add over 30,000 MW in the next 7-8 years. Since financing these projects will entail significant amounts of debt, achieving timely financial closures is of utmost importance. It is therefore a matter of pride that we were able to secure the largest ever debt on non-recourse project finance basis across any industry in India for the Sasan Ultra Mega Power Project at a time when the External Debt Market had gone completely dry and the domestic lenders had turned ultra-cautious, thanks to the unfolding global credit crisis. The Sasan closure also represents the first ever appraisal of an integrated coal mine cum power project of this scale on project finance basis in the country. We were also successful in getting our appraisals completed for the 600-MW expansion at Rosa and the 300-MW at Butibori. In addition, we obtained part sanction for the Krishnapatnam Ultra Mega Power Project. In all, we were able to get appraisals done or obtain sanctions for project with an investment outlay of more than Rs 40,000 crore (US$ 8 billion).Progress on Project Execution Given our large generation portfolio, it is imperative that we focus our attention on ensuring that we implement all our projects on time and at costs which are lower than ourinitial estimates. Indeed, we are committed to setting new benchmarks in project costs and time schedules. The Rosa Power Plant, located in Uttar Pradesh, is currently ahead of schedule and we expect it to be operational before the end of FY 2009-10. In 2011, we expect to commission the expansion units at Rosa and the upcoming plants at Butibori. We have also advanced, by almost three years, the schedule for the commissioning of the first Ultra Mega Power Project at Sasan. We hope to commission two units of 660 MW each at Sasan before the end of FY 2011-12. We are well aware of the complex challenges that lie in the way of successful execution of power projects. But given our traditional strength in project management and the experience of our execution teams, we remain confident of successfully overcoming any odds.

New Projects

The power sector in India continues to offer exciting new opportunities. During the year, we won, through a competitive bidding process, the right to develop the 3,960 MW Tilaiya Ultra Mega Power Project located in the State of Jharkhand. Aside from the significant synergies that it has with other power projects that we are developing, Tilaiya also presents the added advantage of having captive coal mines allocated for it. While coal-based power projects provide large headroom for growth, we are equally confident about the benefits and advantages that would accrue from having hydro power projects in our portfolio. We have therefore keenly participated in the bids for such project s and have recently been awarded four more hydro power projects for development in the state of Arunachal Pradesh. With this, the total hydro capacity in our portfolio has gone up to 4,620 MW, while our aggregate portfolio now stands at more than 33,000 MW.

Performance reviewThe salient points of company’s financial performance are:Total income of Rs 334.72 crore as compared to Rs 132.87 crore in the previous year.

Net profit of Rs 248.90 crore as compared to Rs 94.67 crore in the previous year.Earnings per share (EPS) of Rs 1.04 as compared to Re 0.17 in the previous year.

Diversification along the Value Chain RPL has achieved the distinction of among the India’s top listed private companies on all major financial parameters, including assets, sales, profits and market capitalization. In the past, this focus was adequate as the industry was highly regulated with limited diversification opportunities. Over last few years, the country has been facing acute shortages, both in coal and gas, severely affecting optimum utilisation of its power stations and these shortages are likely to continue in future as well. This is in spite of the fact that India is one of the largest producers of coal in the World. To safeguard its competitive advantage in power generation business, RPL has moved ahead in diversifying its portfolio to emerge as an integrated power major, with presence across entire energy value chain. RPL has recently diversified into mining business primarily to secure its fuel requirements and support its aggressive capacity addition program.

Establishing a Global Presence The Anil Dhirubhai Ambani Group (ADAG) plans to make Reliance Power Ltd a global power utility behemoth. Apart from the proposed Rs 110,000 crore worth of investments being pumped into setting up 28,000 megawatt of power generation capacities in India, it is also looking at projects in Singapore and the Middle East. "While China has added 70,000 MW power generation capacities in the first half of 2007, India is planning to add a similar amount over the next five years," said Anil Ambani during Reliance Power IPO's road show in Ahmedabad on Saturday."The potential for power is huge in India and the 28,000 MW in pipeline are only a start for the company. We will continue to add more new projects in India and outside in the coming years," claimed Anil. With Reliance Power being made the vehicle for all new generation projects, what will happen to Reliance Energy, the already listed electricity utility company of the group? “Reliance Energy will continue to benefit from the growth in Reliance Power as it will have a 45 per cent stake in the latter," was Anil's answer at the press briefing. In fact, Reliance Energy has been one of the top performers on the Indian bourses recently, he added. Reliance Power is also aiming for nuclear power generation, if the government allows private companies to foray into the sector. The company currently has 13 power projects aggregating to 28,200 MW of power, which is coal-based, gas-based and hydroelectric in nature. "We are ready to foray into nuclear power generation, if the government policies favour private participation. We have also trained close to 100 personnel for this purpose as we don't want to miss out on capitalising this opportunity as and when it comes," said Anil. For developing these power projects, the company is coming out with the biggest IPO in Indian capital market of 26 crore equity shares of Rs 10 each raising Rs 10393 crore to Rs 11563 crore, depending on the price band on which the allotment is made. "We will be investing more than Rs 1,10,000 crore for developing these power projects," added Ambani. According to Ambani, the main challenge, which can delay execution of these projects is talent availability and power equipment availability. "Since the country is currently going through shortage of power equipment, the company would also like to enter into the sector and have started discussions on the front," Ambani said. The company has won two ultra mega power projects of 4000 Mw each in Sasan, Madhya Pradesh and Krishnapatnam in Andhra Pradesh

RPL corporate profile

RPL would have successfully diversified its generation mix, diversified across the power value chain and entered overseas markets. As a result RPLwould have altered its profile significantly. Elements of the revised profile that RPL would seek to achieve are: To attain global best practices and become a leading power generating company.To achieve excellence in project execution, quality, reliability, safety and operational efficiency.To relentlessly pursue new opportunities, capitalizing on synergies in the power generation sector.To consistently enhance our competitiveness and deliver profitable growth.To practice highest standards of corporate governance and be a financially sound company.To be a responsible corporate citizen nurturing human values and concern for society.To improve the lives of local community in all our projects.To be a partner in nation building and contribute towards India’s economic growth.To promote a work culture that fosters learning, individual growth, team spirit and creativity to overcome challenges and attain goals.To encourage ideas, talent and value systems and become the employer of choice.To earn the trust and confidence of all stakeholders, exceeding their expectations.To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings.

CORE VALUES

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

HUMAN RESOURCE

Powering India's Growth : Through people HUMAN RESOURCE MANAGEMENTFor any business to run one needs four M’s namely Man, Money, Machine and Material. Managing other three resources other than men, are easy to handle. Men are very difficult to handle because no two human beings are similar in all way. Human beings can think, feel and give response. Handling humans is more important for any business because human being have crucial potential that may be very profitable for the business. And these potential can be developed to an unlimited extent if they are provided with proper environment. So the function of managing men is as important as finance or marketing function in any business. HRM refers to practices and policies framed for the management of human resources in an organization, including Recruiting, screening, rewarding and appraising.”Human resources have at least two meanings depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of three factors of production. The more common usage within corporations and businesses refers to the individuals within the firm, and to the portion of the firm's organization that deals with hiring, firing, training, and other personnel issues. This article addresses both definitions.The objective of Human Resources is to maximize the return on investment from the organization's human capital. THE SCOPE OF HRM is indeed very vast. All major activities in the working life of a worker-from the time of his or her entry into the organization until he or she leaves- come under the purview of HRM. Specifically, the activities include are HR Planning Job analysis and design Recruitment and selection Orientation and placement Training and development Performance Appraisal and Job evaluation Employee and executive remuneration Employee Motivation Employee WelfareIt is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner."Human resource management aims to improve the productive contribution of individuals while simultaneously attempting to attain other societal and individual employee objectives." Schwind, Das & Wagar (2005).

HR STRUCTURE

CORPORATE HR: Activities taken up by Corporate HR are

Policy making Implementing suggestions - HEWITT CONSULTANT Strategic planning

ENTITY HR: Activities taken up by Entity HR are Execution of policies and practices Targets for recruitment of Circle HR

CIRCLE HR: Activities taken up by Circle HR are Recruitment Appointment Training Payroll Employees issues Exit full & final

HR FUNCTIONS

TALENT ACQUASITION Sourcing activity TALENT DEVELOPMENT Performance management system Training Carrier planning Suggestion planning

TALENT MANAGEMENT Operation HR

RECRUITMENT PROCESS

STEP 1: MANPOWER PLANNING .AOP (Annual Operating Plan), this process is taken up every year. It is taken up at Personal Level and Entity Level. Several points like Revenue generation, Acquisition number, etc.

STEP 2: SOURCING ACTIVITY There are three types of sourcing done at Reliance. After the resumes of candidates are chosen then the same is sent to the department head where the vacancy arises. The department head will then shortlist the same and they ask the HR department to fix an interview with the selected candidates.There are two type of interview which is taken up at Reliance, firstly the Functional interview and then the Functional Head and HR Head takes the interview.

INTERNAL SOURCING Employee Reference Re-employment of former employee

EXTERNAL SOURCING Placement Consultant – Ruchika, the Age, the Avenue. Job Portals - Monster, NAUKRI. Campus Recruitment

STEP 3: APPROVAL. The HR executives will Negotiate the CTC with the candidate. The approval is sent to the CRC (Corporate Recruitment Cell). Then after it is sent to ECRC. Then the same is sent to CRL. The same is then sent to Management for SAP Applicant Code. The applicant code is given to HR CIRCLE. OFFER is made to the candidate, which leads to the Joining Procedure.AVERAGE TIME PERIOD: The process of recruitment takes about 10 – 15 days

ELIGIILITY CRITERIA:Education Qualification – MBA with any specializationNot frequent job changesTenure of last job should at least be 1.5 – 2 yrs

OTHER REQUIREMENTS: Reference check is usually done for High level job The recruitment may differ with the current position of the business

INTERNAL SOURCINGIn the event of an open position in Reliance Communication, suitable candidates are first searched internally within the organization. This is based upon in-house talent which could be redeployed.Advertisement for internal vacant position is done by following two ways:

Through sending mail to all Reliance Infocomm employees across all locations including DAKC (Dhirubhai Ambani Knowledge City) Through DAKC Circular Employees of Reliance Communication who have completed more than 12 months of continuous service only those employees can apply for position placed on Intranet. Internal candidates are considered in accordance with their abilities and potential. The process is coordinated by CRC (Central Recruitment Cell) at Corporate Office.EMPLOYEE REFERENCE: In Reliance Communication, Employees can refer a candidate with whom he/ she have worked in his/ her previous employment. Employees can check available vacancies on Intranet and can submit the resumes of prospective candidates who fit the Job profile.RE-EMPLOYMENT OF FORMER EMPLOYEE: Re Hiring of an employeedone in Reliance Communication with a view to take trained manpower back in the company. Re Hiring is done as per the policy issued by Central Recruitment Cell at Corporate Office

EXTERNAL SOURCING

PLACEMENT CONSULTANCY: The placement agencies call for resumes of prospective candidates, which act as a good source of recruitment for the companies. Consultant’s interview candidates and shortlist those according to the criteria laid down by the companies. This helps the employer to interview a limited number of potential candidates, the minimizing the time taken in receiving and sorting applications, etc.Reliance Communication chooses Consultants having national presence. This sourcing option is only considered by the company when there is scarcity for candidates with requisite experience and skills.

JOB PORTAL: The spread of Internet has enabled employers to search for candidates globally and has made recruitment easier. If vacancy arises, Reliance Communication browses the profile of candidates from the Job portal like naukri.com, monsterindia.com and then candidates are accessed through e-mail or telephone.

CAMPUS RECRUITMENT: Reliance Communication goes for Campus recruitment every year for technical department. For management level recruitment, it goes for campus recruitment as per requirement.For filling up position for MT (Management Trainee), following procedure is followed by Reliance Communication:HR representative of Reliance Communication gives Description about Job to all candidatesWritten Test i.e. (MAT) Mental Ability Test is taken for those candidates who has got aggregate 60% in all semesters GD (Group Discussion) is conducted for those candidates who had successfully pass MAT. At last PI (Personal Interview) is conducted for those candidates who had passed out GD and Personal interview is taken by respective head of department and HR Head. For filling up position for GET (Graduate Engineering Trainee), following procedure is followed by Reliance Communication:

SWOT ANALYSIS OF RPL

Strengths Developing economy: Historically, demand for petroleum products has traced the economic growth of the country. With GDP expected to grow at near 7% in the long-term, the energy sector would benefit from the same, going forward. To put things in perspective, diesel sales grew by nearly 12% (which constitutes 40% of the entire petro-products basket), petrol sales by 9% and a double-digit growth in LPG (liquefied petroleum gas) in 1QFY05. While this rate is not likely to sustain, we expect the industry to witness a 4% growth in the entire product basket in FY05 and beyond.

Government decisions: The recent price increases and also the decision to allow oil companies to increase prices within a band of 10% augurs well for the industry. This step is likely to reduce government interference and provide some autonomy to oil companies when it comes to increasing petrol and diesel prices in order to protect margins. Further, the duty cuts are also likely to result in reduced under-recoveries by way of subsidies on LPG and kerosene.

Weakness: Crude prices: Nearly 70% of India's crude requirements are fulfilled by imports and this figure is likely to increase going forward. Crude prices have breached the $45 barrier again and are likely to remain at around $40 per barrel range. As per IEA, India is one of the most inefficient countries among developing nations as far as energy usage is concerned. Such high crude prices are likely to impact margins of oil marketing companies. Given the political implications, retail prices may continue to lag the rise in input cost.

Lack of freedom: Although the government has decided to provide autonomy to oil companies to increase petrol and diesel prices within a 10% band, other products such as LPG and kerosene continue to remain under the government controlled price mechanism. As per the current estimates, the subsidies on LPG amount to Rs 90 per cylinder after factoring in duty cuts and that on kerosene is over Rs 6 per litre. While the government has managed to reduce its share in subsidies, select oil companies are being forced to absorb the losses.

Opportunities: Equity Oil: Major oil marketing companies are now venturing into upstream exploration and production activities so as to secure crude supply. To put things in perspective, IOC and OIL India are likely to jointly bid for oil fields aboard. At the same time, ONGC's wholly owned subsidiary, ONGC Videsh (OVL) has acquired stakes in over 9 countries in its quest to attain the 20 MMT (million metric tonnes) by 2020. This backward integration is an opportunity for IOC to secure at least 25% of its crude oil requirements for the refineries.

Natural Gas: Natural gas has the potential to be the fuel of the future with demand outpacing supply by more than two times. Such high scarcity of natural gas provides a big opportunity for oil companies. The below mentioned table indicates the allocation to the various core sectors and the shortage faced by them, thereby giving an idea of the potential for growth. Although Petronet LNG has now started importing natural gas, the future holds promise as Reliance Industries' Krishna

Godavari Basin goes into commercial production in FY06 and Shell commences its terminal at Hazira. More exploration activities are in the pipeline and this could reduce the country's dependence on crude in the long term.

Threats: Competition: Until FY04, oil-marketing companies had complete control over the downstream marketing business while private sector players were restricted to only refining. However, with entry of private players such as Reliance, Essar Oil and Shell (in the waiting), the sector is likely to witness increased competition going forward. The oil PSUs had hitherto developed a fortnightly pricing mechanism, which is likely to discontinue. The price of petrol and diesel is artificially kept high so as to cross-subsidize LPG and kerosene. Since private players will not be bound to provide for these subsidies, PSU marketing players are likely to suffer from lower throughput per outlet.Continuing government interference: During the first six months of the current fiscal year, the oil marketing companies were refrained from increasing product prices due to political reasons. This affected margins of downstream players. Going forward, if the government interference continues, oil-marketing companies will be at a disadvantage. Although we believe the industry is likely to witness increased competition, the initial retail rush by private sector players has slowed down. PSU marketing companies have already stepped up their expansion plans and to that extent, have created significant entry barriers for private players. Although throughput per outlet (sales per outlet) is likely to decline in the future, we believe that any substantial entry of the private players would indirectly benefit the PSUs, as the government's pricing policy will not hold much water and the market forces would determine pricing.

REL’S CULTURECore values are both intensely and widely shared

Climate of high behavioral controlLow employee turnoverHigh agreement among the employees, for what reliance stands for.All these point to the fact that strong cohesiveness, loyalty and organization commitment exist in lowering the attrition Rate.

CONCLUSION

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 317th in the ‘2009, Forbes Global 2000’ ranking of the World’s biggest companies. The total installed capacity of the company is 30, 644 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based & another station uses naptha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations.NTPC has been operating its plants at high efficiency levels. Although the company has 18.79% of the total national capacity it contributes 28.60% of total power generation due to its focus on high efficiency.NTPC is among the largest five companies in India in terms of market capitalisation. NTPC has been awarded No.1, Best Workplace in India among large organisations for the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.Right from social to developmental work of the community and welfare based dependence to creating greater self reliance; the constant endeavour is to institutionalise social responsibility on various levels. There is an ample scope for companies in the energy sector in this current trend demanded by the consumer. The market size is increasing day by day and the demand for more electricity is arising.The companies like NTPC(add more companies) are trying to capture more market share with their new strategies and better services. As per the companies which we chosen for our research work i.e.NTPC and Reliance power limited is concern the company should become liberal on his policies. Reliance power share are new comer in the market but company reputation has provided company a big amount of profit but for maintaining the growth rate it should give its share holders more facilities for opening of more possibilities forthe company future sake.

SUGGESTIONS AND RECOMMENDATIONS

The aim of NTPC can be to manage knowledge by effective people management. As we can't manage knowledge, we can manage the environment, in which knowledge can be created, discovered, captured, shared, distilled, validated, transferred, adopted, adapted and applied.NTPC would have to createRight Conditions: common reliable infrastructureRight Means: common model, tools and processesRight Actions: where people instinctively seek, share, and use knowledgeRight Leadership: where learning is rewarded and contribution acknowledged.

NTPC would have to make changes in its Compensation System. To encourage the employees to offer their help NTPC may have a system of rewarding people who exhibit the right behaviors. Recognition is the most powerful motivation, receiving acknowledgement that the contributions of the employees makes a difference. NTPC can use more innovative ways like of having "MOST HELPING EMPLOYEE OF THE MONTH" with regular Notice Board entries to it. Also such initiatives of helping colleagues can be made a part of the annual appraisal. Instead of Knowledge- hoarding knowledge dissemination and imparting can be made part of appraisal criteria.