A PROJECT REPORT ON

SUBMITTED BY GARIMA AGGRAWAL 3RD SEMESTER 2004-2006 D.D.U. GORAKHPUR UNIVERSITY GORAKHPUR

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PREFACE

The well planned, properly executed and evaluated vocational training helps a lot in including good work culture .It provide linkage between to problem solving based on board2

understanding of process and mode of operation of an organization. This project report if the result of study conducted in EOC (engineering office complex) NTPC, Noida during the period 13th JUNE to 6th AUGUST 2005.This project report is basically rooted to study GRIEVANCE SETTLEMENT MACHINERY. In their working lives, employees occasionally have cause to be uncomfortable, disappointed or aggrieved either about certain managerial decision, practices or service condition. In the present day social context, especially in democratic systems, it is accepted that employees should be able to express their dissatisfaction, whether it is an irritation, a serious problem or a difference of opinion with the supervisor over terms and conditions of employment. The grievance procedure is one of the most important means that is available to the employees with which they can express their dissatisfaction. It is also a mean available to management to keep a check on the relevant diagnostic data on the state of organizations health. I feel rewarded by the management of NTPC who gave me an opportunity to study, in such a large organization, which is engaged in generating thermal power. GARIMA AGGRAWAL

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ACKNOWLEDGEMENT

It is said, No learning is possible without any proper guidance and no research endeavor is a solo exercise, some contribution is performed by various individual4

By acknowledging the guidance, support and assistance, I pay my deepest sense of guidance to the management of NTPC. I hereby acknowledge my profound gratitude to MR.P.P.AKHORI under whose guidance I have studied the training and development of NTPC. MR. ASHOK MEHRA (exe-secretary-NTPC) who helped in collecting material related to my project, MISS INDU RAMAKRISHNAN for her valuable guidance for helping me in accomplishing this project report. I am highly thankful the above-mentioned employees for their continuous encouragement and inspiration that helped me in completing this project report. My special wishes and thanks shall always be for those who responded to me and extended their co-operation in preparing and collecting data by which this project report has been smoothly conducted. SUBMITTED BY:GARIMA AGGRAWAL

CONTENTS EXECUTIVE SUMMARY5

INTRODUCTION COMPANY PROFILE THERETICAL BASE SOURCES OF GRIEVANCE AND THEIR CAUSE GRIEVANCE HANDLING PRACTISES GRIEVANCE PROCEDURE SETTLEMENT OF GRIEVANCE IN INDIAN INDUSTRY GRIEVANCE SETTLEMENT MACHINERY IN NTPC ANALYSISAND INTERPRETATION CONCLUSION RECCOMENDATION LIMITATION OF THE STUDY BIBLEOGRAPHY ANNEXURES

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EXECUTIVE SUMMARY

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National Thermal Power Corporation Limited (NTPC) is the largest thermal power generating company of India. A public sector company incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. Within a span of 30 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. National Thermal Power Corporation is the pride of India's power industry. Based on 1998 data, carried out by Data monitor UK, NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilization amongst the thermal utilities in the world In my project, entitled-Grievance Settlement Machinery at Engineering Office Complex, NTPC, I have studied the grievance procedure for employees in HR department .In my own style, I have tried to find out the present system is effective or not i.e. to understand the needs of employees and provide them formal and regular feedback. For this purpose, I used questionnaires to get the feedback of the employees related to their grievances and how it is handled. I also went through different books, websites & magazines to gather the material related to this project. After collecting the information, I analyzed the data and provide the necessary suggestions to improve the system. The research methodology used the following sources; Primary Sources: Secondary Sources: Internal sources External Sources

As the data collection tools different methods were used; Interview Method Questionnaires

In the era of liberalization, globalization and customer enthusiasm, the rules of the business are changing. In practically every sector of the economy, the dynamics of competition are shifting away from the industrial logic of the

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past to the service driven philosophy of the future. The Human Resource of any company has to stand up to face this challenge Methodology for the study of application level evaluation has taken care of with following parameters Selection of the time period Preparation of questionnaire Distribution & Collection of questionnaire Analysis of data Grievance settlement had the impact in improving performance on the

Analysis was done for both the executives and non-executives It is highly recommended to make the grievance procedure more and more flexible, simple, and speedy as Justice delayed is justice denied. These are the corner stone of a sound personnel policy.

NTPC9

THE TOTAL POWER COMPANY

VISION

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To be one of the worlds largest and vest power utilities, powering Indias growth.

CORE VALUES (COMIT):Customer Focus Organization Pride Mutual Respect and Trust Initiative and SpeedTotal Focus

CORPORATE MISSION Make available reliable and quality power in increasingly large quantities at appropriate tariffs and ensure timely realization revenues. Adopt a broad based capacity portfolio including hydropower, LNG nuclear power and non-conventional and ECO-FRIENDLY fuels. 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, and coal. Mining, coal beneficiation etc. Develop a strong portfolio of profitable business in overseas market including technical service generation assets etc. Continuously attract and develop competent and committed human resources to match world standards. Lead fundamentals and applied research for adoption of state of the art technologies, breakthrough efficiency improvements and new fuels. Lead developmental efforts in the INDIAN power sector including assisting state utility reform advocacy etc. Be a socially responsible corporate entity with thrust on environment protection, ash utilization, community development and energy conservation.

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CORPORATE OBJECTIVES GROWTH: To add generating capacity within prescribe time and cost. To expand CONSULTANCY operations and to participate in ventures abroad. To diversify into power related business to ensure integrated development of energy sector in India. To operate and maintain power stations at high availability ensuring minimum cost of generation. To maintain the financial soundness of the company by managing the financial operations in accordance with good commercial utility practices. To function as a responsible corporate citizen and discharge social rehabilitation. The corporation will strive to utilize the ash produced at its station to the maximum extent possible through production of ash, bricks, building materials etc. To introduce, assimilate and attain self-sufficient in technology, acquire expertise in utility management practices and to disseminate knowledge essentially as a contribution of the power sector in the country.

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THE COMPANY National Thermal Power Corporation Limited (NTPC) has been the power behind Indias sustainable power development since November 1975.Contributing 26% of the countrys entire power generation NTPC today lights up every fourth bulb in the country.NTPC is the largest thermal power generating company of India. With ambitious growth plans to become a 56,000 MW power company by2017, NTPC-the largest power utility of India has already diversified into hydro sector. Further initiatives for greater organisation transformation have been approved under PROJECT DISHA. A public sector company incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and others. SHAREHOLDING PATTERN

A Promoters Holding

1 Indian Promoters (Government Of India)

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(including 700 shares held in the names of nominees of President of India) 7379634400 89.50 Indian Promoters NIL NIL Foreign Promoters NIL NIL 2 Persons Action in Concert NIL NIL Government of India 7379633700 (89.50%)

Sub Total 7379634400 89.50 B Non-Promoters Holding

3 Institutional Investors

a Mutual Funds & UTI 25101041 0.30 Mutual Funds 25101041 (0.30 %) (No individuals Mutual funds holding 1% and above)

b Banks, Financial Institutions, Insurance Companies(Central/State Govt. Institutions/Non Govt. Institutions)

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(No individuals institutions holding 1% and above) 64220443 0.78 c Foreign Institutional Investor 490666417 5.95 Capital Research MNGT.Co. A/C Capt. World Growth & income fund (108890000 1.32%)

Sub Total 579987901 7.03 C Others

a Private Corporate Bodies (No Individual Corporate Bodies are holding 1% and above) 35680487 0.43 b Indian Public 241467197 2.93 c NRI/OBCs 4754634 0.06 Foreign Individuals 856 0.00 d Others : Trust 2266427 0.03 : Clearing Members 1606360

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0.02 : Directors & Their Relatives (Excluding 500 shares held as nominees of 66138 0.00 Sub Total 285842099 3.47 Grand Total 8245464400 100.00

President of India as given in A(1) above)

CATEGORY

% OF HOLDING SHARES HELD ( 30.06.05)

NOTE: 495421907 equity shares, being held by FIIs/NRIs/OCBs/Foreign Collaborators Foreign Banks and Foreign Nationals representing 6.00% of Share Capital.

NTPC : THE POWER GENERATING COMPANY Within a span of 30 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Based on 1998 data, carried out by Data monitor UK, NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilization amongst the thermal utilities in the world

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COMPANY PROFILENTPC's core business is engineering, construction and operation of power generating plants and also providing consultancy to power utilities in India and abroad. As on date the installed capacity of NTPC is 23,749 MW through its 13 coal based (19,480 MW), 7 gas based (3,955 MW) and 3 Joint Venture Projects (314 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW). NTPC is also managing Badarpur thermal power station (705 MW) of Government of 17

India.

NTPCs share on 31 Mar 2005 in the total installed capacity of the country was 20.4% and it contributed 27.1% of the total power generation of the country during 2004-05. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operation. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector, NTPC is extending consultancy services to various organisations in the power business. NTPC is committed to the environment generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. NTPC has undertaken massive afforestation in the vicinity of its plants. Plantations have increased forest area and reduced barren land. The massive afforestation by NTPC in and around its Ramagundam Power station (2100 MW) has contributed reducing the temperature in the areas by about 3c. NTPC has also taken proactive steps for ash utilisation. In 1991, it set up Ash Utilisation Division to manage efficient use of the ash produced at its coal stations. This quality of ash produced is ideal for use in cement, concrete, cellular concrete, building material. A "Centre for Power Efficiency and Environment Protection (CENPEEP)"has been established in NTPC with the assistance of United States Agency for International Development. (USAID). Cenpeep is 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. As a responsible corporate citizen, NTPC is making constant efforts to improve the socioeconomic status of the people affected by the its projects. Through its Rehabilitation and Resettlement programmes, the company endeavors to improve the overall socioeconomic status of Project Affected Persons.

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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. Inspired by its glorious past and vibrant present, NTPC is well on its way to realise its vision of being one of the worlds largest and best power utilities, powering Indias growth.

HISTORY NTPC was establish, as a public sector power utility by government of India in the year 1975 at a time when the country was under acute shortage of power and other players in the field were not able to cope up with situation. NTPC true to the expectation played a key role in the development of the sector and has emerged as the largest power utility, lighting ever fourth bulb in the country. Powering the growth of the country power in plenty. The growth of the organization had been phenomenal and with the passage of time the batons of leadership started changing to new hands families at19

different levels of organization. Therefore as it happens in large families there of need for continuous reminder of the values and traditions so that the performance culture remains unaffected and all the members of the realizing the vision of the country. As a part of JR business strategy organization focused on evolving a codified vision and values statement to be the guiding compass for all employees. The first exercise was made in 1995-96 and the same were widely shared with all sections of the employees. Based on the nature of feedback received the vision and values were revisited in May 2000 through a process of building shared views from all business units of the company. The revised vision and value statement have been evolved and notified to all the members of the organization for their actualization these have to be shared and practiced by each one of the family members of the NTPC, and then only they can accomplish the challenges before the community of the NTPC. It is sometime now that the revised vision and values are in operation and it has generated a lot of appreciation and understanding amongst employees. In order to have a common understanding and perspective of the meaning of the values, which form the pillars of the organization, an effort is being made to consolidate meaning and expected behavior for uniform appreciation and implementation of the values by all members of the NTPC. While doing this the contribution of task force on values at corporate center, shares view of business unit heads and various feedbacks received from different units and all cross sections of employees have been liberally used.

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NTPC COVERING INDIA

Within a span of 30 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country.

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The operating performance of NTPC has been considerably above the national average. The availability factor for coal stations has increased from 85.03 % in 1997-98 to 91.20 % in 2004-05, which compares favorably with international standards. The PLF has increased from 75.2% in 1997-98 to 87.51% during the year 2004-05 which is the highest since the inception of NTPC.

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However, for regions other than Eastern Region, which has power evacuation constraints due to low system demand, a PLF of 87.51 was achieved during this year. Over last ten years, employee productivity has almost doubled as measured by the ratio of turnover to number of employees. It may be seen from the table below that while the installed capacity has increased by 40.97% in the last seven years, the employee strength went down by only 0.41%Description Installed Capacity Generation No. of employees Generation/employee Unit MW MUs No. MUs 1997-98 16,847 97,609 23,585 4.14 2004-05 23,749 1,58,110 23,491 6.73 % of increase 40.97 61.98 -0.41 62.63

The table below shows the detailed operational performance of coal based stations over the years.

OPERATIONAL PERFORMANCE OF COAL BASED NTPC STATIONSUnit 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 Generation PLF Availability Factor BU % % 66.1 70.00 83.34 76.4 78.07 86.48 79.1 76.57 85.97 93.2 78.80 85.32 97.6 77.00 84.10 106.2 75.20 85.03 109.5 76.60 89.36 118.7 80.39 90.06 130.1 81.8 88.54 133.2 81.1 81.8 02-03 140.86 83.6 88.7 03-04 149.16 84.4 88.8

The energy conservation parameters like specific oil consumption and auxiliary power consumption have also shown considerable improvement over the years.

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From concept to commissioning and beyond NTPC, as a consultant in power business follows an integrated approach to problem solving for business organisations from all over the world. Combining the technical, managerial and financial skills, and keeping in mind the cross-functional implications; it provides the holistic solution for organizations in power and related infrastructure organisation in power and related infrastructure sector. The prowess of NTPC in handling the power business springs from the fact that it has done engineering, project management and operates over 22,000 MW capacity, covering about 75 coal/gas units of capacities varying from 50 MW to 500 MW. NTPC has developed nearly 8,000 MW for other utilities and Independent Power Producers. With the string of achievements behind it, NTPC has emerged as the acknowledged leader in engineering, construction, O&M and management of power projects. The Consultancy Wing of NTPC is the nodal point for all the Consultancy and turnkey project for clients. NTPC has the capability and expertise to provide the total range of services from Concept to Commissioning of power station covering areas such as feasibility & EIA studies, design, engineering, QA&I, procurement, project management, construction supervision, testing, commissioning, operation & maintenance and training etc. NTPC has the varied and rich experience of working with equipment/systems sourced from different parts of the world such as USA, UK, France, Germany, Japan, Italy, and Russia etc.

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The Consultancy Wing of NTPC, with an ISO 9001 accredition, undertakes all the Consultancy and turnkey project contracts for clients. NTPC has the capability and expertise to provide the total range of services from Concept to Commissioning of power station covering areas such as Feasibility & Environmental Impact Assessment studies, design, engineering, Quality Assurance and Inspection services, procurement, project management, construction supervision, testing, commissioning, operation & maintenance and training. NTPC has rich experience of working with equipment sourced from different parts of the world such as USA, UK, France, Germany, Japan, Italy, Russia etc. NTPC is registered as a consultant with several leading international development and financial institutions such as The World Bank, The Asian Development Bank, the African Development Bank, and UNDP. NTPC's vast pool of qualified technical and managerial manpower is well supported by excellent infrastructure facilities to deliver customer value through Time, Quality and Cost standards meeting the global standards. At NTPC, we offer consultancy services related to infrastructure sector business such as:

Fossil fuel based thermal power generation Combined cycle power generation Cogeneration Non-conventional energy Water supply and treatment Environment engineering and management Surface transport (Roads, bridges and fuel transportation) Town planning and development

NTPC as Consultant

Largest Power Utility in South Asia In 29 years since its inception, NTPC has emerged as the largest power utility in South Asia, owning 13 Coal based Super Thermal Power Stations and 7 Gas based Combined Cycle Power Plants, with a approved capacity of 30,425 MW and has total installed capacity of 22,249 MW. In a survey carried out by MarketLine International Ltd, London,

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NTPC has been ranked as the 6th Largest Thermal Power Generating Company in the World and the 2nd most efficient in capacity utilization amongst these thermal power generators.

Integrated Project Management NTPC follows a systems approach to Project Management integrating the various functions such as Engineering, Procurement, Quality Assurance & Inspection, Construction Management, Operations Management etc. in all facets of project construction from Concept to Commissioning. In recognition of the systems adopted by NTPC and quality of services provided, NTPC has received ISO 9000 accreditation for most of its divisions at Corporate Centre including Consultancy Wing and its various Power Stations.

Expertise from Concept to Commissioning NTPC has the capability and expertise to provide the total range of services from Concept to Commissioning of Power Stations covering areas such as feasibility & EIA studies, design, engineering, QA&I, construction supervision, testing, commissioning, operation and maintenance and training etc. Expertise based on rich O&M experience NTPC has developed rich experience in engineering and O&M of conventional fossil fuel fired Power Plants based on Coal/Oil as well as Gas/liquid fuel by way of implementation of its own Power Plants covering 32 units of 200/210 MW & 16 units of 500 MW of Coal/Oil fired Plants and 7 Gas based Combined Cycle Power Plants O&M feedback incorporated in designs Being a power utility itself, NTPC has the unique advantage of receiving regular feedback on various operational and maintenance aspects from its generating plants. This feedback is suitably incorporated for improvement in future designs. State-of-the-art equipment/systems procured through ICB Most of the NTPC power plants have been funded by International Funding Agencies like the World Bank, KfW, ADB, JBIC, etc. These plants incorporate state-of-the-art equipment and systems generally procured through International Competitive Bidding (ICB). Experience of various Equipment/Systems NTPC has the varied and rich experience of working with Plant & 26

Equipment sourced from different parts of the world such as USA, UK, France, Germany, Japan, Italy, Russia, etc.

Registered with World Bank & other Funding Agencies NTPC is registered as a Consultant with the World Bank, Asian Development Bank, African Development Bank and other international funding agencies. Experience of working with International Consultants NTPC engineers have had the opportunity of working in close association with several international consultants viz. Black and Veatch Intl., USA; UE&C, USA; British Electricity International, U.K.; EDF, France; Gilbert Commonwealth, USA and many more. Experience of working overseas NTPC has experience in working overseas in countries of West Asian countries (middle east), SAARC countries and Africa. Familiarity with Environment Regulations With funding from International Funding Agencies, NTPC is fully familiar with the requirements of various Environment Control Regulations imposed by statutes and the funding agencies. Performance comparable to best performing utilities During the year 2003-2004 NTPC stations have generated 149 Billion units of electricity, which is about 26% of the total annual generation in the country. NTPC coal based Stations recorded an impressive Plant Load Factor (PLF) of above 80%. Due to successful implementation of modern management systems, NTPC power plants could achieve performance level comparable to most efficient power plants of the World. Largest pool of qualified manpower NTPC has a vast pool of over 24,000 qualified technical and managerial manpower. This include over 6800 executives, well supported by highly trained staff and other infrastructure facilities for providing services for its own Power Plants as well as to its distinguished Clients in various areas. Training facilities NTPC has full-fledged facilities in Power Management Institute (PMI), Noida, for providing training in all aspects of Management and Systems for power sector. NTPC also has Training Simulators both for Coal as well as Gas based Stations for training personnel in Operation and Maintenance of Power Plants.

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Research & Development NTPC has set up full-fledged Research & Development facilities in its R&D Centre, Noida with the objective of resolving O&M problems through applied research using analytical tools. The R&D centre is fully equipped with most of the new ultramodern testing & laboratory equipment. The main functions are to carry out applied research work to help achieve improvement in reliability, to provide laboratory test services, to undertake scientific studies in environmental pollution and waste utilization, etc.

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Harmony between man and environment is the essence of healthy life and growth. Therefore, maintenance of ecological balance and a pristine environment has been of utmost importance to NTPC. Environment protection continues to be a key area of activity in NTPC along with growth in generation of power. Driven by its commitment for sustainable growth of power, NTPC has evolved a well defined environment management policy for minimising environmental impact arising out of setting up of power plants and preserving the natural ecology. In November 1995, NTPC became the first public utility to bring out a comprehensive document entitled "NTPC Environment Policy and Environment Management System". Amongst the guiding principles, adopted in the document, are the company's proactive approach to environment, optimum utilisation of equipment, adoption of latest technologies and continual environment improvement. The policy also envisages efficient utilisation of resources, thereby minimising waste, maximising ash utilisation and providing green belt all around the plant for maintaining ecological balance. NTPC's environment-friendly approach to power has already begun to show results in conservation of natural resources such as water and fuel (coal, oil & gas) as well as control of environmental pollution. NTPC has chalked out a set of well-defined activities that are envisaged right from the project conceptualisation stage. Performance enhancement and upgradation measures are undertaken by the organisation during the post operational stage of the stations. These activities have greatly helped to minimise the impact on environment and preserve the ecology in and around its power projects. These measures have been enumerated as follows. Environment Management System / ISO-14001 NTPC has established Environmental Management System (EMS) as per ISO-14001 at its 29

different establishments. As a result of pursuing sound environment management practices, all NTPC power stations (excluding Simhadri which was commissioned recently) as well as the Corporate Environment Management and Ash Utilisation Division have already been certified for ISO-14001 EMS by reputed Certifying Agencies. The only remaining station Simhadri is also in the process of obtaining the ISO-14001 Certification. Environment Policy The salient features of NTPC's Environment Policy and Environment Management System as adopted in November, 1995 are enumerated below. To achieve and maintain a leader's role in the area of Environment Management in the Power Sector in the country. To keep in view the various environmental requirements in all its business decisions. To continuously adopt ways and means for Environment Protection and Environment Improvement around its business units. To adopt sound Environment Management practices. To aim at full compliance with the statutory norms / requirements. In addition, we have specific environmental policies at our Environment management and Ash Utilization Division at Corporate Centre and at each station as a part of EMS as per ISO-14001. The Environment Policy of the Corporate Environment Management and Ash Utilization Division as adopted in March, 2003 under the EMS is stated below. Continual improvement of environmental performance of all NTPC power stations in pursuance of our vision of powering Indias growth. Continually monitor all the stations for pollution prevention and environmental protection. Conservation of natural resources including land by utilizing more and more ash generated by thermal power stations of NTPC. Assist stations for compliance with relevant environmental legislations and regulations. To promote environmental awareness amongst the employees of NTPC. To create awareness of Ash Utilisation and its environmental benefits among the Engineers, Builders, Architects, Potential Entrepreneurs, NTPC personnel and public at large. NTPC has undertaken a comprehensive Ecological Monitoring Programme through Satellite Imagery Studies covering an area of about 25 Kms radius around some of its major plants. The studies have been conducted through National Remote Sensing Agency (NRSA), Hyderabad at its power stations at Ramagundam (AP), Farakka, (WB), Korba (Chhatisgarh),Vindhyachal (MP), Rihand (UP) and Singrauli (UP). . Advanced / Eco-friendly Technologies NTPC has gained expertise in operation and management of 200 MW and 500MW Units installed at different Stations all over the country and is looking ahead for higher capacity Unit sizes with super critical steam parameters for higher efficiencies and for associated environmental gains. At Sipat (Chattisgarh), higher capacity Units of size of 660 MW and

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advanced Steam Generators employing super critical steam parameters have already been envisaged as a green field project. Higher efficiency Combined Cycle Gas Power Plants are already under operation at all gasbased power projects in NTPC. Advanced clean coal technologies such as Integrated Gasification Combined Cycle (IGCC) have higher efficiencies of the order of 45% as compared to about 38% for conventional plants. NTPC has initiated a techno-economic study under USDOE / USAID for setting up a commercial scale demonstration power plant by using IGCC technology. These plants can use low grade coals and have higher efficiency as compared to conventional plants. With the massive expansion of power generation, there is also growing awareness among all concerned to keep the pollution under control and preserve the health and quality of the natural environment in the vicinity of the power stations. NTPC is committed to provide affordable and sustainable power in increasingly larger quantity. NTPC is conscious of its role in the national endeavour of mitigating energy poverty, heralding economic prosperity and thereby contributing towards India's emergence as a major global economy.

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ASH UTILIZATION

Ash utilization is one of the key concerns at NTPC. The Ash Utilization Division, set up in 1991, strives to derive maximum usage from the vast quantities of ash produced at its coalbased stations. The division proactively formulates policy, plans and programme for ash utilization. It further monitors the progress in these areas and works at developing new fields of ash utilization. The quality of ash produced conforms to the requirements of IS 3812. The fly ash generated at NTPC stations is ideal for use in cement, concrete, concrete products, cellular concrete, lightweight aggregates, bricks/blocks/tiles etc. This is attributed to its very low loss on ignition value. To facilitate availability of dry ash to end-users all new units of NTPC are provided with the facility of dry ash collection system. Partial dry ash collection systems have also been set up at the existing stations where these facilities did not exist earlier. Augmentation of these systems to 100% capacity is presently in progress. As the emphasis on gainful utilization of ash grew, the usage over the years also increased. From 0.3 million tonnes in 1991-1992, the level of utilization during 2002-03 stood at over 5.67 million tonnes.

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The various channels of ash utilization currently include use by a number of Cement, Asbestos-Cement products & Concrete manufacturing Industries, Land Development, Roads & Embankments, Ash Dyke Raising, and Building Products. Area wise break-up of utilization for the year 2002-03 is as under: Area of Utilization Land Development Cement & Concrete Roads/Embankments Ash Dyke Raising Bricks Others Total Quantity (in Million Tons) 2.19 2.16 0.73 0.47 0.11 0.01 5.67

NTPC has adopted user friendly policy guidelines on ash utilisation. These include actions identified for: i) Ash Collection & Storage System ii) Facilities & Incentives to users iii) Direct Department Activities iv) Administrative & Financial aspects. In order to motivate entrepreneurs to come forward with ash utilisation schemes, NTPC offers several facilities and incentives. These include free issue of all types of ash viz. Dry Fly Ash / Pond Ash / Bottom Ash & infrastructure facilities, wherever feasible. Necessary help and assistance is also offered to facilitate procurement of land, supply of electricity etc. from Govt. Authorities. Necessary techno-managerial assistance is given wherever considered necessary. Besides NTPC uses only ash based bricks & Portland pozzolana cement (FAPPC) in most of its construction activities. FAPPC (as per IS 1489 Part-1) and Fly Ash Bricks (as per IS 12894) have been included in our standard specifications. Demonstration projects are taken up in area of Agriculture, Building materials, Mine filling etc. 33

Besides, literature related to Cement Concrete & Fill Material has also been compiled and is available in a booklet form. A documentary film, titled 'Coal ash as a Fill Material', has also been produced covering use of ash in construction activities of NOIDA-Gr.NOIDA Expressway, Delhi Metro Rail Corporation, Sarita Vihar Flyover (in Delhi) etc.

RECENT INITIATIVES TAKEN BY GOVT. AGENCIES i) Indian Road Congress (IRC) have issued Guidelines (SP- 58) for use of ash as fill material in Road Embankments (March 2001) ii) Indian Road Congress (IRC) has published "Rural Roads Manual" wherein various methods of utilization of ash in roads and embankment construction are covered. (Feb. 2002) iii) As per Bureau of Indian Standards (BIS) fly ash up to 35% by weight can be used in manufacture of Portland Pozzolana Cement (PPC). iv) IS 456-2000: Code of practice for plain and reinforced concrete allows use of fly ash (up to 35 %) as cementations content in concrete (where OPC is used). v) IS 456-2000: Code of practice for plain and reinforced concrete also allows use of fly ash based PPC in reinforced concrete works. vi) Items of Clay Ash Bricks and Fly Ash-Lime Bricks have been incorporated in CPWD's Delhi Schedule of Rates (DSR-2002). vii) Ministry of Envt. & Forests (GOI) has issued draft amendment (dated. 06.11.2002) to Gazette Notification on ash utilization (dated. 14.09.1999) which is under finalization and final notification is expected to be issued soon. It covers: a. Use of at least 25 % ash in manufacture of clay bricks within 100 Kms of 34

coal based power stations b. Mandatory use of ash based bricks/blocks/tiles etc. by construction agencies in phased manner within 100 Kms of coal based power stations. c. Mandatory use of ash in low-lying landfill & construction of road embankments & flyovers within 100 Kms of coal based power stations.

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JOINT VENTURES

NTPC, with a rich experience of engineering, constructing and operating nearly 20,000 MW of thermal generating capacity, is the largest and one of the most efficient power companies in India, having operations that match the global standards. NTPC has identified Joint Ventures, strategic alliances as well as acquisitions and diversifications as viable and desired options for its business development. NTPC looks for opportunity to create such joint ventures and strategic alliances, in the entire value chain of the power business. NTPC as a partner endows the Joint Venture Alliances with a winning edge. Acquisitions and Diversifications in the areas related to the core business not only ensure growth but also add to the robustness of the company. Diversification is carried out either directly or through subsidiaries/JVs. JOINT VENTURE PARTNERS The following joint venture companies have been formed so far: NTPC -ALSTOM POWER SERVICES PVT. LTD. (NASL) (Incorporated in 1999 and formerly known as NTPC-ABB ALSTOM POWER SERVICES PVT. LTD) OBJECTIVE: Undertake Renovation & Modernization of power stations in India and other SAARC countries. PROMOTERS' NTPC: 50% EQUITY: ALSTOM Power Generation AG : 50% UTILITY POWER TECH LTD (Incorporated in 1996) This JV has been promoted with BSES Limited, a private sector Indian power company. OBJECTIVE: To undertake project construction & management activities PROMOTERS' NTPC: 50% EQUITY: BSES: 50% POWER TRADING CORPORATION (Incorporated in 1998) This JV has been promoted with Power Grid Corporation of India Ltd (PGCIL), a Government owned transmission major in India. Power Finance Corporation (PFC), a power sector finance company owned by the Government of India and National Hydro Electric Power Corporation Ltd. (NHPC), a Government owned hydro power utility. OBJECTIVE: To trade power generated by mega power projects in India PROMOTERS' NTPC: 8% Tata Power: 10% 36

EQUITY:

PGCIL: 8% DV: 10% PFC: 8% FII: 18.5% NHPC: 8% *Balance 29.5% unallocated.

NTPC-SAIL POWER COMPANY (PVT) LTD (NSPCL) This JV has been formed on 23rd March, 2001 with Steel Authority of India Ltd (SAIL), a Government of India undertaking engaged in the steel manufacturing business and owns four large integrated steel plants in the country. OBJECTIVE: To supply power to the Durgapur Steel Plant and Rourkela Steel Plant of Steel Authority of India Limited (SAIL) from its Coal based power stations at Durgapur (West Bengal) 2x60MW and Rourkela (Orissa) 2x60 MW. PROMOTERS' NTPC: 50% EQUITY: SAIL : 50% BHILAI ELECTRIC SUPPLY COMPANY LTD (BESCL) This JV has been formed on 22nd March, 2002 with Steel Authority of India Limited (SAIL), a Government of India undertaking engaged in the steel manufacturing business. OBJECTIVE: To supply power to the Bhilai Steel Plant (BSP) of Steel Authority of India Limited (SAIL) from its Coal based power station at Bhilai (Chattisgarh) 2x30 MW + 1x14 MW. PROMOTERS' NTPC: 50% EQUITY: SAIL : 50% PROPOSED JOINT VENTURES NTPC has also entered into Memorandum of Understanding (MOU) with various Company(ies) to form alliances / joint ventures: 1.0 INDIAN OIL CORPORATION LTD (IOCL) IOCL, a Govt. of India undertaking, is a 'FORTUNE 500' company engaged in the petroleum refining and distribution business. OBJECTIVE: To set up combined cycle power stations based on refinery residue / Naphtha and other petroleum products. LIKELY EQUITY NTPC and IOCL will have equal equity contribution, and CONTRIBUTION the combined equity holding of NTPC and IOCL shall not FROM PROMOTERS exceed 50% of the paid up equity capital of the company. Balance may be offered to financial institutions and general public. 2.0 INDIAN RAILWAYS MOU signed on 18th February 2002. Indian Railways are the largest rail network in

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Asia and the world's second largest under one management. OBJECTIVE: To set up power stations to meet traction and non-traction power requirement of Indian Railways. LIKELY EQUITY Yet to be finalised CONTRIBUTION FROM PROMOTERS 3.0 TAMIL NADU ELECTRICITY BOARD MOU signed on 12th July 2002. TNEB is a State run Electricity Board in the State of Tamil Nadu engaged in generation, transmission and distribution of electricity. OBJECTIVE: To set up a 1000 MW coal based power station at Ennore in Tamil Nadu utilising the existing infrastructure facility at Ennore. EQUITY NTPC : 50% CONTRIBUTION TNEB : 50% ACQUISITION Business development through Acquisition serves both NTPC's own commercial interest as well as the interest of the Indian economy Taking over being a part of the acquisition process, is also an opportunity for NTPC to add to its power generation capacity through minimal investment and very low gestation period. NTPC has, over the years, acquired the following three power stations belonging to other utilities/SEBs and has turned around each of them using its corporate abilities. POWER STATIONS TAKEN OVER YEAR ORIGINAL OWNER 2x210 MW FEROZE GANDHI UP RajyaVidyut Utpadan UNCHAHAR THERMAL POWER 1991 Nigam of Uttar Pradesh STATION 4x60 MW + 2x110 MW TALCHER 1995 Orissa State Electricity Board THERMAL POWER STATION 4x110 MW TANDA THERMAL POWER 2000 UP State Electricity Board STATION DIVERSIFICATION To broad-base the business and also to ensure growth, diversification in the areas related to NTPC's core business of power generation such as Hydro power, Distribution, Trading, Coal mining, LNG etc. have been identified as priority areas. A. HORIZONTAL DIVERSIFICATION - HYDRO POWER The urgent need for adding peak load stations coupled with shortage of domestic fuels and concern for environmental pollution prompted the Government to lay thrust on adding hydro stations. This has provided NTPC with an opportunity to horizontally diversify and set up hydro electric power stations towards the due need of operating peak load demands and thermal for base load. 38

In 1997 NTPC started the preliminary activities to tap a part of the abundant hydro electric potential of the country by identifying suitable projects for development. Northern Region and more specifically Himachal Pradesh and Uttar Pradesh were targeted for initial entry in hydro sector. NTPC's venture in hydro sector became a reality when Koldam Project, a green field Hydro Electric project of 800 MW capacity in the State of Himachal Pradesh, was formally assigned to NTPC on 26th Feb. 2000. An MOU has been signed with Govt. of Uttranchal on 31.12.02 for implementation of Lohari-Nagpala(4x130MW) and Tapovan Vishnugad (360MW)Hydro Electric power Project in the state of Uttaranchal on BOOM basis, subject to techno-commercial viability of the project, and clearance of MOEF. In order to develop small and medium Hydro Electric Power Project up to 250 MW capacity a wholly owned subsidiary company named NTPC Hydro Ltd. has been incorporated on 12th December 2002. More hydro projects are being explored to find out the techno-economic viability for development by NTPC. The company intends to add at least 3000 MW capacity through hydro projects by the end of X Plan. B. VERTICAL (FOREWARD) INTEGRATION - DISTRIBUTION AND POWER TRADING: In order to diversify along the power value chain, NTPC has gone in for distribution and power trading to ensure forward linkages and also enhance revenue channels. To acquire, establish and operate electrical systems etc. for distribution and supply of electrical energy to consumers, a subsidiary company named as NTPC Electric Supply Company Ltd. (NESCL) has been incorporated. In order to undertake business of sale and purchase of electric power, a subsidiary company known as NTPC Vidyut Vyapar Nigam Ltd. (NVVNL) has also been incorporated. C. VERTICAL (BACKWARD) INTEGRATION - COAL MINING AND LNG BUSINESS: COAL MINING: The policy changes in coal sector provide an opportunity to NTPC to enter captive coal mining business. NTPC is contemplating captive mines in North Karanpura area of Central Coal-fields Ltd (CCL) and Talcher area of Mahandi Coal-fields Ltd (MCL). Central Mine Planning & Design Institute Ltd (CMPDIL) (a subsidiary of Coal India Ltd), Ranchi is being appointed as a consultant for assisting and guiding NTPC in various activities of captive mining. COAL WASHERIES: NTPC is intending to set up coal washeries in the following three coal mine areas: Amlori area under Northern Coal-fields Ltd. (NCL) Talcher area under Mahandi Coal-fields Ltd. (MCL) North Karanpura under Central Coal-fields Ltd. (CCL) Feasibility studies for Amlori area is already completed in December 2002. NTPC has appointed Central Mine Planning & Design Institute Ltd. (CMPDIL) (a subsidiary of Coal India Ltd), Ranchi, India as the consultant for the feasibility studies. LNG: NTPC is contemplating procurement of LNG fuel/Natural Gas for expanding its gas based power projects at Anta, Auraiya, Kawas & Jhanor - Gandhar in North India with cumulative capacity addition of 2600 MW and at Kayamkulam in South India by 1950

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MW. Fuel requirement for North India is approximately 3.0 MMTPA and for South India is 2.0 MMTPA. Accordingly LNG fuel/Natural Gas terminals have been planned, one each in North India and in South India, to be commissioned by prospective suppliers. NTPC intends to keep options for 26% equity stake in regasification terminal and may seek 10% equity in liquefaction terminal. D. STEP TOWARDS GLOBALISATION NTPC is exploring the possibility of setting up a Gas Based Combined Cycle Power Plant in Bangladesh through Joint Venture with Bangladesh Power Development Board (BPDB) and Petro Bangla. NTPC has signed an MOU with Black and Veatch (USA) for rendering services in the areas of Engineering, Project Management, Operation and Maintenance, Quality Assurance etc. NTPC and BHEL have joined hands to work as consortium partners to set up a 500MW integrated water and power project with 30MGD of desalination plant in Oman on BOO basis.

INSTALLED CAPACITYAN OVERVIEW Projects No. of Projects Commissioned Capacity (MW)

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NTPC OWNED COAL 13 GAS/LIQ. FUEL 07 TOTAL 20 OWNED BY JVCs Coal 3 GRAND TOTAL 23 * Captive Power Plant under JV with SAIL PROJECT PROFILE Coal Stations Coal based 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. State

19,480 3,955 23,435 314* 23,749

Singrauli Uttar Pradesh Korba Chattisgarh Ramagundam Andhra Pradesh Farakka West Bengal Vindhyachal Madhya Pradesh Rihand Uttar Pradesh Kahalgaon Bihar Dadri Uttar Pradesh Talcher Kaniha Orissa Unchahar Uttar Pradesh Talcher Thermal Orissa Simhadri Andhra Pradesh Tanda Uttar Pradesh Total (Coal) @Capacity presently under implementation Rihand II 500 MW Vindhyachal 1000 MW Unchahar 210 MW Kahalgaon Stage II - Phase I 1500 MW - Phase II 1000 MW Gas/Liq. Fuel Stations Gas based 14. Anta State Rajasthan

Commissioned Capacity (MW) 2,000 2,100 2,600 1,600 2,260@ 1,500@ 840@ 840 3,000 840@ 460 1,000 440 19,480

Commissioned Capacity (MW) 413

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15. 16. 17. 18. 19. 20.

Auraiya Uttar Pradesh Kawas Gujarat Dadri Uttar Pradesh Jhanor-Gandhar Gujarat Kayamkulam Kerala Faridabad Haryana Total (Gas) Through Joint Venture Grand Total (Coal + Gas + JV) Power Stations Managed by NTPC Managed By NTPC State Delhi Total

652 645 817 648 350 430 3,955 314 23,749

21.

Badarpur

Installed Capacity (MW) 705 705

NTPC-LEADERS IN POWER SECTOR

Establish in November 1975 for NATION`S sustainable power development national thermal power corporation ltd. (NTPC) is today recognized as INDIA`S largest utility, with an installed capacity of 20,749 MW. NTPC has an ambitious growth plan to become a 56,000 MW plus company by the year 2017. With a share of 19% of INDIA`S total installed capacity, NTPC generates about 26% of COUNTRY`S entire generation.

EXCELLENT PERFORMANCE

Performing commendably in the areas of operations and maintenance. NTPC stations all over the country generated 133.19 Billions units (bus) of electricity with the coal station achieving an availability of 89.1% during 2001-02.

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OTHER AWARDS AND ACCOLADES WON: Shell KELLER award 2002 for promoting employment opportunity to disable people. Gets global energy award 2003 for commitment to community development. CORE- BESD corporate social responsibility award 2001-02 instituted by TERI. ICC-UNEP world summit business award for sustainable development partnership. National safety award 2002 instituted by the BRITISH safety council, to NTPC power station. Best HR practices award 2002 instituted by INDIAN society of training and development. World HRD congress award instituted by world HRD congress. Golden peacock national training award 2003 instituted by institute of directors to PMI. Meritorious productivity of the GOVT. Of INDIA to 12 stations. PRIME MINISTER`S SHRAM AWARD for the 17th year including two SHRAM RATNA. VISHWAKARMA AWARD by MINISTRY OF LABOUR, GOVT. OF INDIA. Climate technology initiative award. MOU excellence award of govt. Of INDIA. CII award for excellence in infrastructure. GREENTECH environment national award for the welfare of physically challenged people. Business today HEWITT best EMPLOYER`S award.

NTPC AS ONE OF THE NAVRATNAS

The government of INDIA has decided to accrue a special status to top profit making INDIAN public sector enterprises, calling them NAVRATNAS (literally, `nine jewels`, though now they number eleven)

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Bharat Heavy Electrical Ltd.(BHEL), Bharat Petroleum Corporation Ltd. (BPCL),Hindustan Petroleum Corporation Ltd.(HPCL), Indian Petroleum Corporation Ltd.(IPCL) , National Thermal Power Corporation Ltd.(NTPC ) , Oil And National Gas Corporation Ltd.(ONGC), Steel Authority Of India Ltd.(SAIL), Gas Authority Of India Ltd.(GAIL), Mahanagar Telephone Nigam ltd.(MTNL). As a `NAVRATNA public sector enterprise, NTPC has always been delivering peak performance, be it generation of power, financial performance, human resources development or presentation of environment. Not only does NTPC provide a lead to the power sector in INDIA. It is also establishing itself as a global player. The COMPANY`S corporate plan sets an ambitious target of becoming a 40,000 MW power colossus by 2012.

HR VISION TO ENABLE OUR PEOPLE HR GOALS

TO BE A FAMILY OF COMMITTED WORLD CLASS PROFESSIONALS MAKING NTPC A LEARNING ORGANISATION

to develop a learning organization having knowledge based competitive edge. to create a culture of team building, empowerment and accountability to convert knowledge into productive action with speed ,creativity and flexibility

HR STRATEGIES institutionalize core value for actualizing throughout organisation. Imbibe a culture of openness, competence, commitment, system orientation economy, productivity, knowledge management, communication and training. Undertake organizational renew, restricting periodical assessment to have a retook at various initiatives and their impact.

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Cerate motivational enabling climate of enpowerment participation, career growth, sensitive line managers and equip them to their own HR initiatives and succession planning. Communication within and outside the company

Powering India's Growth : Through peopleNTPC strongly believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of its 23,500 employees to fulfill its business plans. Human Resources Function has formulated an integrated HR strategy which is rests on four building blocks of HR viz. Competence building, Commitment building, Culture building and Systems building. All HR initiatives are undertaken within this broad framework to actualize the HR Vision To induct talent and groom them into a dedicated cadre of power professionals "Executive Trainee" Scheme was introduced in the year 1977 for recruitment in the disciplines of Mechanical, Electrical, Civil, Control & Instrumentation and now encompasses Computer Science, Chemistry, HR and Finance disciplines also. Besides a comprehensive one year training comprising theoretical inputs as well as on-the-job training, the new recruits are attached with Senior executives under a systematic and formal 'Mentoring System' of the company to integrate them into the Culture of the company. NTPC has created 15 project training centers, 2 simulator training centres and an apex institute namely 'Power Management Institute' (PMI). While the project training centres (Employee Development Centres) have specialized in imparting technical skills and knowledge, PMI places emphasis on management development. Besides opportunities for long term education are also provided through tie ups with reputed Institutions like IIT, Delhi, (M.Tech in Power Generation Technology), MDI, Gurgaon (Executive MBA programme), BITS, Pilani (B.Tech) etc. NTPC Open Competition for Executive Talent (NOCET) is organized every year in which teams of executives compete annually through oral and written presentation on a topical theme. Similarly "Professional Circles" have been formed department-wise where Executives of the department meet every fortnight to share their knowledge and experiences and discuss topical issues. In order to tap the latent talent among non executives and make use of their potential for creativity and innovation, Quality Circles have been set up in various units/offices in NTPC. Besides a management journal called "Horizon" is published quarterly to enable the employees to share their ideas and experiences across the organization. Demonstrating its high concern for people, The motivation to perform and excel is further enhanced through a comprehensive NTPC Rewards and Recognition system. In order to institutionalize a strong Culture based on Values a number of initiatives are taken to actualize the Vision and Core Values (COMIT) across the company. A culture of celebrating achievements and a strong focus on performance are a way of life in NTPC. 45

Due to innovative people management practices there is a high level of pride and commitment amongst employees as reflected in the "Best Employers in India-2003" survey by Hewitt Associates in which NTPC bagged coveted third rank. Further continuous efforts are being made by HR function to leverage the potential of its employees and become a strategic business partner. Mercer HR - Business Today Employer Survey 2004NTPC has been rated among the top ten "Best companies to work for in India" by Mercer HR Consulting-Business Today Survey 2004. This is the second consecutive year that NTPC has appeared in this prestigious list.Besides, NTPC is also the only PSU among the top ten companies. The survey was conducted on the basis of five attributes to arrive at a total score for each company surveyed, such as HR Metrics, HR Processes, Employee Perception, Stake holder Perception and Attrition on a weighted scale

NTPC has also been ranked as "3rd great place to work" for in the country according to the survey conducted by Grow Talent and Business World 2004. What makes NTPC stand apart is its ability to balance concern for its employees with a high performance work culture. All NTPC employees have a Projects Managers obsession with deliverables and deadline.

PERFORMANCE LEADERSHIP

To achieve continuous performance improvement in the areas of project implementation, plant operation and maintenance, generating efficiency46

etc. and to acquire and sustain internationally comparable standards in these with good business ethics and values.

HUMAN RESOURCE DEVELOPMENT:

To develop a learning organization having knowledge based competitive edge. To create a culture of learning building, empowerment and accountability to convert knowledge into productive action with speed, creativity and flexibility.

FINANCIAL SOUNDNESS: To maintain and improve the financial soundness of NTPC by managing the financial resources in accordance with the best commercial utility practices. To develop appropriate commercial policies which ensure remunerative tariff and minimum receivables.

TECHNOLOGY LEADERSHIPTo acquire and adopt reliable, efficient and cost effective technologies and to disseminate knowledge to other constituents sector in the country.

PERFORMANCE HIGHLIGHTS (2003-04) 100% realization during the year as compare to 91.25% in the previous year. Provisional gross revenue of RS. 25,184 CRORE during 2003-04 as against RS. 19,850 CRORE during 2002-03.

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Estimated net profit after tax for the year 2003-04 is RS.4, 905 CRORE as compare to RS 3,608 CRORE during the previous year. With 19.24% share of the total installed capacity of the nation, NTPC contributed 26.7% electricity generated in the country. Highest PLF (plant load factor) of 84.4% since inception. Projects totaling 7010 MW capacity under various stages of construction. National award for welfare of persons with disabilities in the best employer category upon NTPC by PRESIDENT OF INDIA.

OPEREATIONAL PERFORMANCEThe corporation recorded a generation of 149.17 Billion Units (Bus) showing an increase of 5.9% over the previous years generation of140.9 Bus. With 19.24% share in the total installed capacity of the country, NTPC contribute 26.7 %electricity during 2003-2004.

HUMAN RESOURCE MANAGEMENTThe total strength of employees of the corporation is 23114 as on 31.03.2004. All the efforts were made to improve the manpower utilization. The overall Man: MW ratio for the year 2003-2004was 1.02 for the year 2002-2003. Employee productivity has considerably improved during the year: 2003-2004 2003 GENERATION/EMPLOYEE (MUS) 7.10 TURNOVER/EMPLOYEE (RS.LAKHS) 108.95 PROFIT/EMPLOYEE (RS.LAKHS) 21.22 6.76 84.63 15.16 2002-

EMPLOYMENT TO PHYSICAL CHALLENGED PERSONSWith a focus on its role of a socially responsible organization, NTPC has endeavored to take responsibility for adequate representation of physically challenged persons in its workplace. The company has already recruited 17348

numbers of physically challenged persons in group c & d posts in the first phase and plans to induct another batch of 169 such persons in the second phase.

FUTURE PROSPECTSBy 2017, we plan to expand our power generation capacity to over 56,000 MW. We also plan to diversify our fuel mix by setting up new power-based plants. Further, plan to diversify our business by taking advantage of opportunities in the Indian power sector, created by regulatory and economic reforms.

WORLD BANK APPRAISALThe World Bank has been periodically appraising the performance of NTPC. Few experts from the World Bank performance audit/staff appraisal report of 1993 is: NTPC has demonstrated that government owned power utility can be operated at efficiency levels comparable to those of privately owned utilities in India and well run utilities outside of India. NTPC`s record in plant construction, cost containment and operating efficiency has been exceptional while as a institution it has broken new ground in organization and management, successfully navigated the transition from construction to operative company generally coped quite well with the problem of rapid expansion. NTPC needs to be commended not only for its participation in all stages of project preparation, implementation and its final operation but also for its initiative to implement efficiently large conventional coal fired thermal power station, introduction of gas based combined power generation , HVDC transmission new control and instrumentation package contract management system simulator for operational training supply and erection type of packaging for auxiliaries concepts of quality assurance in engineering design etc. on the financial side , NTPC, has been successful in increasing substantially and in diversifying resource mobilization for future project financing.

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NEED FOR A FRESH LOOKThen economic reforms and the liberalization process initiated in the year 1991 and the new power policy announced by the government in October 1991 have redrawn the contours of power industry in the country. The policy is still being developed and has been undergoing successive modification Participation of the private sector in the hitherto exclusive domain of the government in the power generation transmission and the distribution is bringing in the fundamental changes in the sector well as NTPC. Thus at the end of the X plan is likely to witness a very different scenario in the power sector with pattern a of ownership of assets significantly altered and the norms of the project implemented plant availability and reliability operation etc. changed to match the international standards . Further the planning parameters financial , economic and social have competition from independent power producers, stringent environmental regulation uncertainties in fuel linkage funds constraints restoring SEBIs and place in reforms in the power sector are very all crucial factors having major impact on business decisions. In view of these fundamental changes taking place in the global business environment and power sector it is important for NTPC to review some objectives and to a fresh look at the corporate road map of NTPC.

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THE PROJECT

INTRODUCTION in their working lives, employee occasionally have cause to be uncomfortable, disappointed or aggrieved either about certain managerial decision, practices or services condition. The question then is whether this particular symptom or feeling is given any attention or is ignored altogether. What are the pros and cons of each of the approach will be governed by several variables such as the style of the management, size of the enterprise ,level of education of the workforce, technology of the plant and the extent of unionization of the workforce. In the present day social context, especially in democratic systems, it is accepted that employees should be able to52

express their dissatisfaction, whether it is an irritation, a serious problem or a difference of opinion with the supervisor over terms and conditions of employment. In respect of the latter , it could stem either from the interpretation of the contract, or in the absence of a negotiated collective contract between management and the union. The grievance procedure is one of the more important means available for employees to express their dissatisfaction .it is also a means available to management to keep a check on relevant diagnostic data on the state of the organizations health. OBJECTIVE OF THE STUDY 1. to know how much the employees are aware of the grievance settlement machinery in NTPC. 2. to know whom does employees approach in case of grievance. 3. to know what method are adopted by the organization for knowing grievance of the employees. 4. to know which procedure is used to solve the grievance of the employees. 5. to know what the employees think regarding the Grievance Settlement Machinery in their organisation

RESEARCH METHODOLOGY53

Combinations of different methods are used to study the dynamic subject- the employee grievances which involves recording the perceptions of the employees. Action and reactions to particular situation on one hand and organizational policies, strategies, philosophies on the other hand.

I)Primary Sources:

i)Company Personnels II)Secondary Sources: i)Internal Sources ii)External Sources Internal Sources: i) Company Publications

ii) Leaflets iii) Brochures

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External Sources: i) Magazines and Newspapers

ii) Public Records iii) Internet

Data Collection Tools

i) Interview Method ii) Questionnaires The methods adapted for the study can be tabulated as follows: Personal interview My main tool for research. Better55

Focus group Questionnaire

person to person interface. Might not be possible for higher designations. Easy to handle number of questions, personal contact, easy to evaluate & comprehensive research

Sample Size (Over all): Controlling Officer Response Sheet : 100 Internal Trainees : 50 Target Audience : Response Sheet

Controlling Officer Response Sheet : 70

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Internal Trainees : 50

Response Sheet

Sampling Method: For Trainees probability Sampling. For Controlling Officer Probability Sampling. Process of Research

: :

Random Relative

Structured questionnaire Sample size Interview executives with senior management

Interview with Trainees General inference from observation Discussion guidelines for some questions.57

Research is systematic design, collection, analysis and reporting of data and findings relevant to a specific situation facing the company. Research has been seen only a fact finding operation. The researcher is supposed to design a questionnaire, chose a sample, conduct out interviews and report result often without being given a careful definition of the problem of the decision alternatives facing management. PRIMARY DATA The relevant data related to the project was collected through personal interviews sought with the by company personnels. This was done to accommodate the requirements of our objectives. DESIGNING THE QUESTIONNAIRE: Questionnaire is the most effective medium of communicator between the investigator and unknown person. Keeping in view the profile of the low level nonexecutives in the sample the questionnaire was drafted. Questionnaire was also drafted for the executives Responses from the respondents were clear and helped us to get required information.58

Using questionnaire method as data collection technique had its advantages because of the paucity of time with officials/respondents. It was resorted to interviewing at the top management level and the H.R manager (questionnaire would be inappropriate) so that I could get an extra bit of information that would make this project a meaningful venture. The whole process in detail It is essential to collect primary data to make the sample survey a success and the most popular technique of the data collection is through questionnaire thus a questionnaire was framed and distributed among the selected sample in NTPC-EOC (HR department) and also few employees were interviewed as some information couldnt be collected through questionnaire as respondents being bias while filling the questionnaire. DETERMINATION OF SAMPLE POPULATION Men or women employed in NTPC-EOC, in the HR department, must have a working experience ranging from 5 years to 30 years. Nature of population was homogenous therefore a small sample was effective to represent them. Sampling method

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Random (or probability) samples in which the probability of unit selection is unknown at any stage of the selection process and the selection of units is based on the judgment of the researcher, was selected. The method used was purposive sampling or judgmental sampling. These terms indicate selection by design- by choice, not by chance. The sample was chosen which was thought to be typical of the universe with regards to the characteristics under the investigation. Such type of sampling was possible because of my guide, who already had the necessary required knowledge about the employees, which made it easier to recognize typical items in the universe. Collection of data When planning was completed the survey moved into the field and under took the fieldwork, which is distribution and collection of facts. The total number of questionnaire distributed were (75), out of which only 50 were taken into analysis, few were rejected due to incomplete data entry and few questionnaires were not filled. ANALYSIS OF DATA Researcher must breathe life into the cold data by skillful analysis and hence he need to follow three preliminary steps-editing, classifying and coding of the data. The contents of the data obtained in the survey were carefully checked for any possible inconsistencies or incompleteness. Then came the careful content analysisthe data was then coded and tabulated according to the60

dummy tables prepared in advance with the help of tally making. And then finally the coded data was interpreted to reach a final conclusion. PRESENTATION OF DATA It was the last step of the survey. Through nice presentation, significant facts and comparisons are highlighted with the help of pie charts and a explanation of them is also given along with them to have a better understanding. . LIMITATIONS OF THE STUDY: Data related to the grievances, which are resolved in an informal way and go recorded was not unavailable. Some respondents were not willing to fill up the questionnaire as they feared some negative action against them by the top management. Time limit was also a limitation due to which the research could not be done on a vast scale. Some respondents were not willing to reveal the true picture of the grievance they were having through questionnaire. Few questionnaires were not filled completely so that they could not be considered for the study. inconvenience in locating the respondent time constrain on the part of higher officials:

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Questionnaire was used as a measure of data collection for the study. Everybody did not respond to the questions properly. Some respondent misinterpreted the questions, omitted essential items, and gave answers casually, which could not be tabulated. It was practically impossible to return such incomplete and unsatisfactory questionnaire to the respondents for correction. This technique does not provide a check on the honesty and reliability of replies, if the respondent gives replies, the investigator cannot know what the truth is. This technique was inappropriate when spontaneous answers were wanted; where it was important hat the views of one person was only obtained, uninfluenced by the discussion of others; and where questions resting a persons knowledge were to be included. The major reason for non62

response was that respondent adamantly refused to fill the questionnaire. This is a hard-core reason no matter how much effort one put in completing the returns; a source of bias always persists. At one stage in this technique the response rate being very low i was left in a dilemma whether the return can be generalized to the whole population or they merely represent the characteristics of the people who have returned the questionnaires. Despite there limitations the data collection exercise was enriching fulfilling and enjoyable.

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THEORETICAL BASE MEANING OF GRIEVANCES According to Michael j. Julius the term grievances means any discontent or dissatisfaction whether expressed or not and valid or not arising out of anything connected with the company that an employee thinks ,believes or even feels, is unfair , unjust or inequitable. The above definition indicates that a grievance may be factual or imaginary or disguised and it is a problem whether expressed or not. When an employee presents a problem, the grievance redressing authority has to analyze the problem, find out the root cause of the problem rather than viewing it from legal64

aspects and solve it, based on humanitarian approach. This approach of grievance redressal is known as clinical approach to grievance handling. Hence a grievance may be viewed as complex psychological phenomenon, calling for human rather than any procedural or legal action in its analysis and solution KEITH DAVIS has defined grievance as any real or imagined feeling of personal injustice which an employee has concerning his employment relationship. A grievance represents in which an employee feels that something unfavorable has happened or is going to happen. In an industrial enterprise, grievance may arise because of several factors: Violation of managements responsibility like poor working conditions. Violation of companys rule and practices Violation of collective bargaining agreement Violation of labour laws Violation of natural rules of justice like unfair treatment in promotion. The discontent may arise out of something connected with the company65

Workers may be dissatisfied because of several reasons e.g., illness in the family, quarrel with neighbor, disliking for the political party in power, so on. Such outside sources are beyond the control of the company and, therefore, do not constitute a grievance. The discontent may be expressed or implied Expressed grievances are comparatively easy to recognize and are manifested in several ways e.g. Gossiping, jealousy, active criticism, argumentation, increased labour turnover, carelessness in the use tools and materials, untidy house keeping etc. Unexpressed grievance is indicated by indifferences to work, day dreaming, absenteeism, tardiness etc. Unexpressed or implied grievances are more dangerous than the expressed ones because it is not known when they may be exploded. Hence the executive may develop a seventh sense for anticipating grievances. Only for painstaking and observant supervisor it is possible to discover what bothering employees are before they themselves are aware of the grievances. The personnel department can be helpful by training supervisors to become66

proficient in observing employees. The techniques of attitude survey and statistical interpretations of trends of turnover, complaints transfers, suggestions etc are also helpful in this connection. The discontent may be valid, legitimate and rational or untrue and irrational or completely ludicrous The point is that when a grievance is held by an employee comes to the notice of the management it cannot usually dismiss it as irrational or untrue. Such grievances also have to attend by the management in the same ways rational grievances. Emotional grievances which are based upon sentiments, misconceptions and lack of thinking are example of our irrational behavior. These grievances are most difficult to handle. Environment determinants Several facts of the work environment are related to the grievance rate in an organization, defined as the number of grievances filed per100 workers over a given

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period, usually 1 year low grievances rates are largely free of technological changes . Furthermore the greater the conflict apparent during the union organization process, the higher is the grievances rate following the certification of the union. Individual determinants Although a few demographic and personality characteristic of individual workers have been found to be related to their propensity to fill a grievance, none of these findings has been replicated in an independent sample. Further research results are inconclusive with regards to the level of whether the tendency to file a grievance is related to the level of a workers job performance. EFFECTS OF GRIEVANCES Grievances if they are not identified and redressed, may affect adversely the workers managers and the organization. The effect is: On production Low quality o production Low quality of production and productivity68

Increase in wastage of material, spoilage ,leakage of machinery Increase in cost of production per unit On the employees Increase in rate of absenteeism and turnover Reduces the level of commitment, sincerity and punctuality Increase the incidence of accidents Reduce the level of employee morale On the managers Strains the superior- subordinate relations Increase in degree of supervision, control and follow up Increase in indiscipline cases Increase in unrest and thereby machinery to maintain industrial peace

SOURCES OF GRIEVANCES AND THEIR CAUSE Some grievances are more serious than others since they are usually more difficult to settle.69

Discipline case and seniority problems (including promotions, transfers and layoffs) would top this list. Other would include grievances growing out of job evaluation and work assignments, overtime vacations incentive plans and holidays. REED RICHARDSON has mentioned five types of grievances which are as follows: 1. ABSENTEEISM An employer fired an employer for excessive absences. The employees file a grievances stating that that there had been no previous warnings and discipline related to excessive absences. 2. Insubordination An employee on two occasions refused to obey a supervisors order to meet with him, unless a union representative was present at the meeting. As a result the employee was discharged and subsequently filed a grievances protesting discharge. 3. overtime Sunday overwork was discontinued after a department was split. Employees effected filed a grievances protesting loss of overtime work.

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4. plant rules The plant has posted rule barring employees from eating or drinking during unscheduled breaks. The employees filed a grievance claiming the rule was arbitrary. 5. seniority A junior employee was hired to fill the position of a laid off senior employee. The senior employee filed a grievance protesting the organization. Causes of grievances The causes of grievances can be grouped under three heads: 1. Grievances resulting from management policies Wages rates or scale of pay Overtime Leave Transfer- improper matching of the worker with the job Seniority, promotion and discharge Lack of career planning and employee development plan Lack of role clarity Lack of regard for collective agreement Hostility towards a labour union Autocratic leadership style of supervisors71

2. Grievances resulting from working conditions Unrealialistic Non availability of proper tools, machines and equipment and doing the job Tight production standards Bad physical condition of workplace Poor relationship with the supervisors Negative approach to discipline 3. Grievance resulting from personal factors Narrow attitude Over ambition Egoistic personality 4. Grievances resulting from alleged violation of Collective Bargaining agreement Central or state laws Past practices Company rules Managements responsibility How to know about grievances A good management redresses grievances as they arise excellent management anticipates them and prevents them from arising. A manager can know about the simmering even before they turn into actual72

grievances through several means such as exit interviews gripe boxes, opinion surveys and open door policy. 1. Exit interview Employees usually quit organization due to dissatisfaction or better prospect elsewhere. Exit interview if conducted carefully can provide important information about employees grievances 2. Gripe boxed These are the boxes in which the employee can drop their anonymous complaints. They are different from the suggestion boxes in which employees drop their named suggestions with an intention to receive awards. 3 opinion survey Opinion surveys etc group meetings periodical in interview with the employees, collective bargaining sessions are some other means through which one can get information about employees dissatisfaction before it turns into a grievances 1. observation A manager/ supervisor can usually track the behavior of the people working under him. If a particular employee is not getting along73

with people spoiling material due to carelessness or recklessness, showing indifference to commands. Reporting late for work or is remaining absent- the signals are fairly obvious. Since the supervisors are close to the scene of the action, he can always find out such unusual behavior and report promptly. 5. Open door policy Some organizations extend a general invitation to their employees to informally drop in the managers room any time and talk over their grievances. At first glance, this policy may appear very attractive but it has following limitations: This policy is workable only in small organizations. In big organizations where management by exception is practiced , the top management does not have the time to attend to the innumerable routine grievances daily which is the work of the lower-level managers Under this policy the frontline supervisors who should be the first man to know about the grievances of his subordinate is bypassed. This provokes him in two ways first he thinks the man who skipped him is disrespectful. Secondly, he fears that he will incur his74

superior s displeasurable because this will be interpretated by the superior as his failure to handle his subordinates. By following an open door policy the top management cannot have adequate clues to assess a superior s skill in handling grievances. It does not know what action , if any, the supervisors would have taken to resolve a grievance. Top management is likely to be too familiar with the work situation in which the grievances developed to be able to be correctly evaluate the information it gets. There may be several level o0f management between the operative employee and the top president of the company. Theoretically each level affords an equal opportunity for distortion , fading and delay of certain facts on which complaint may be based. Though the door of the executives office remains physically open, psychological and social barriers prevent employee in actually entering in it. Some employee hesitates to be signaled out as having grievances others are afraid they will incur their supervisors disfavor.

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Sometimes open door policy is used to hide the top managements own hesitation to make contact with the operatives and the open door is often a slogan to conceal closed minds. The way open door can be effective is for a manager to walk through, not employees. The true test of such a policy is whether the top man behind the door has an open door p attitude and his employees psychologically free to enter. Machinery for handling grievances Appropriate machinery must be established to take steps and to apply the principles of handling grievances. Responsibility must be assigned to given organization unit and executives. And the systematic flow of grievances through various stages and units must be encouraged through appropriate procedural designs. Hence grievance handling requires attention to organizational responsibility and procedures. Organizational responsibility76

Organizationally grievances handling is divided between and shared by first line supervision, staff and middle management executives top management and labour union representatives. 1.First line supervision This should be accorded the first opportunity to handle grievances .it should be empowered to pass upon grievances within policies , rules and jurisdictional limits established by the comp[any. And it good practice to require employees to present their grievances to their immediate superior , even though the final disposition must awaited higher authority. otherwise supervisors are in danger of loosing any importance in the organization and the respect of their subordinates . 2.staaf and middle management executives; All grievances can not be handled at the lowest levels , because some involve issues or policies beyond their authority or capacity. Hence responsibility is placed upon divisional , group and area managers to77

handle grievance cases with broader implications .and these may be aided by a staff labour relation unit in three ways,: a.staff may supply line executives with advice or informations on grievance handling, b.it may help executives in the processing of case . c. It may be given authority actually to settle certain classes of cases. 1. staff and middle management executive all grievances cannot be handled at the lowest levels because some involves issues or policies beyond their authority or capacity. Hence responsibility is placed upon divisional, group and area managers to handle grievance case with broader implications. And these may be aided by a staff labour relations unit in three ways: the staff may supply line executives with advice or informations on grievance handling. it may help executives in the processing of the cases it may be given authority actually too settle certain classes of cases

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3. top management levels Top management has two large areas of responsibility in grievance handling. First, it must assume jurisdiction of cases which are companywide in nature or significant as precedent makers. Second, top management must establish the broad policies and rules upon which grievance handling in the company will be based. Here again, top management may utilize the advice of a labour relations department. But the final decisions must be unequivocally accepted as its own. 4.Outside agencies The use of an ombudsman or an independent, outside party is suggested as the final step in resolving grievances in non union companies. 5.labour union representatives And finally in many companies, labour union representatives interact in the various organizational segments of the company. Shop and office stewards work at supervisory levels and officials of the union locals , business agents of the union and representatives of the national union offices work at key points of the grievance cases wherever they develop. Superimposed upon or paralleling the formal company organisation structure is that of the union structure . the role of the union plays often encompasses informal relations. Union representatives work out with their company counterpart decisions that bend contractual agreements.

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GRIEVANCE HANDLING PRACTISES Grievances are some symptoms of conflicts in enterprise. So they should be handled very promptly and efficiently. Coping with grievances forms an important part of managers job. The manner in which he deals with grievances determines his efficiency in dealing with the subordinates. A manger is successful if he is able to build a team of satisfied workers by removing their grievances. While dealing with grievances of subordinates it is necessary to keep in mind the following points: 1. a grievance may or may not be real 2. grievance may arise out of not one cause, but multifarious causes. 3. every individual does not give expression to his grievances. For the purpose of handling grievance properly and efficiently, it is necessary to find and analyse the grievance of the subordinates. If a grievance is found to be genuine or real, the corrective action should be taken immediately. But the grievance arises due to imagination or disturbed frame of mind of the worker, then it is necessary to explain and make it clear. Before dealing with the grievance their cause must be diagnosed. But when grievances are not given expression by the subordinates, it is managers job to detect the possible grievance and their causes. He may realize the existence of the grievances because of high labour turnover, high rate of absenteeism and poor quality of the work. These problems may go on multiplying if the cause of grievance may not identified and cured.80

Immediate redressal and settlement of grievance is must. The three cardinal principles of grievance settlement are:a) b) c) Settlement at the lowest level Settlement as quickly as possible. Settlement to the satisfaction of the aggrieved.

APPROACHES IN GRIEVANCE HANDLING There are three approaches documented reflecting the attitude of management employees to handling of grievances. These are 1. legalistic view approach 2. human relation approach 3. open door or step ladder approach LEGALISTIC VIEW APPROACH management can take a legalistic view and follow the negotiated contract. The management and worker follow the provision therein grievances are those defined by the contract and the process for the dealing with the grievances is clear to all concerned and specified with the time span for each stage. a. HUMAN RELATION APPROACH The employee and his specific problem is the major concern . the concern is for understanding and doing something to help overcome the individuals problem, the fundamental assumption being that individuals are more important than production targets. It is quite likely that understanding their needs and grievances will help

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in attaining production target, but primarily individuals are the end rather than the means to an end. b. OPEN DOOR AND STEP LADDER APPROACH Channels of handling grievance should be carefully developed and its information should be disseminated amongst the employees there are two procedures for the settlement of grievances 1. open door policy 2. step ladder procedure some company have an informal and open door policy for grievance handling and employees are free to go up the top level executives with their grievances for redressal. In large companies op