technical assistance consultant’s report · retirement profiling ... common seniority list...

Technical Assistance Consultant’s Report

Project Number: 41614 September 2010

India: Energy Efficiency Enhancement Project in Assam (Financed by the Japan Special Fund funded by the Government of Japan)

This

Prepared by

Pricewaterhouse Coopers Pvt. Ltd.

India

For Assam Power Generation Corporation Limited

consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and e Government cannot be held liable for its contents. (For project preparatory technical

nce: All the views expressed herein may not be incorporated into the proposed project’s design. ADB and thassista

Building Organizations

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PricewaterhouseCoopers Global Network: Energy, Utilities & Mining Practice Performance Improvement Advisory

Redesigning the Organization Structure Assam Power Generation Corporation Limited (APGCL)

Redesigning the Organization Structure for APGCL

PricewaterhouseCoopers Page 2 of 64

Table of Contents Introduction ..................................................................................................................................................................... 3�

Background of the Assam State Electricity Board ..................................................................................................... 3�Background of Assam Power Generation Corporation Limited ................................................................................. 3�Scope of this Study .................................................................................................................................................... 5�Objective of the Study ............................................................................................................................................... 6�Approach & Methodology for the study ...................................................................................................................... 6�Structure of the Report .............................................................................................................................................. 8�

AS-IS Analysis and TO-BE Recommendations ............................................................................................................ 9�

The Reporting Hierarchies in APGCL ........................................................................................................................ 9�Human Resource Profiling ....................................................................................................................................... 10�

Age Profiling ....................................................................................................................................................... 11�Retirement Profiling ............................................................................................................................................ 12�

Board Level: Board of Directors of APGCL ............................................................................................................. 13�Corporate Level: Function wise Organization Structure of APGCL ......................................................................... 27�

Generation Department ...................................................................................................................................... 27�Hydro Department .............................................................................................................................................. 31�Finance & Accounts Department ........................................................................................................................ 35�Human Resource ................................................................................................................................................ 38�

Plant Level: Organization Structure of the Generation Plants of APGCL ................................................................ 41�Namrup Thermal Power Station (NTPS) ............................................................................................................. 41�Lakwa Thermal Power Station (LTPS) ................................................................................................................ 45�Karbi Langpi Hydro Electric Project (KLHEP) ..................................................................................................... 48�

Conclusion .................................................................................................................................................................... 55�

Annexures ..................................................................................................................................................................... 58�

Annexure 1 ......................................................................................................................................................... 58�Annexure 2 ......................................................................................................................................................... 63�



Introduction Introduction

Background of the Assam State Electricity Board

The Assam State Electricity Board (ASEB) was unbundled into five companies by the state Government of Assam (GoA) in December 2004 under the provisions of Electricity Act, 2003. The companies that were formed were Assam Power Generation Corporation Limited (APGCL), Assam Electricity Grid Corporation Limited (AEGCL), and three distribution companies named Lower Assam Electricity Distribution Company Limited (LAEDCL), Upper Assam Electricity Distribution Company Limited (UAECL), and Central Assam Electricity Distribution Company Limited (CAEDCL).

The objectives of unbundling were to encourage efficiency, improve the quality of service and increase the accountability of the management. Experience of the last 6 years of unbundling suggests that though the Assam power sector has improved, much scope for improvement in efficiency still remains. Some of the main issues impeding the successful implementation of unbundling are:

• Partial autonomy with regard to financial management: The newly formed generation, transmission, and distribution companies continue to be partially autonomous with regard to financial management and operate under a centralized cash flow mechanism. These expenses have been prioritized among various heads. Financial management functions such as investment, funding, and budgeting decision making are being carried out in consultation with ASEB.

• Paucity of well-trained staff: This has resulted in dual charges for positions that require specialized skills among companies. This leads to delays in decision making and restricts the introduction of new initiative within the companies.

• Employees running as a unified cadre: Despite the reorganization of ASEB and the implementation of a staff transfer scheme, employees in the successor companies have actually run as a unified cadre to protect inter-se seniority and promotional avenues across the companies. Promotion of the employees of the rank of Senior Manager (SM) and above is done through the common seniority list maintained by ASEB for all companies. This is counter-productive for the employees and for the companies in the long-run as it prevents the successful implementation of a company-specific structure aligned with company level objectives and prevents the ability to build necessary competencies that are essential for each company.

Background of Assam Power Generation Corporation Limited

Assam Power Generation Corporation Ltd. (APGCL) was constituted after unbundling of ASEB in December 2004.The Company was incorporated with the main objective to take over, operate, maintain and use the existing electricity generation stations to produce electricity that will meet the demands of power in the state of Assam. The following is the broad role of APGCL:

• To utilize the generation potential of the state

• To improve plant load factors and other plant efficiency parameters



• To satisfy the state generation demand in a competitive manner

• To maintain commercially viable fuel supply agreements with fuel suppliers and transporters

• To maintain and comply the directives of AERC, CERC etc.

• To maintain liaison with CEA, Funding agencies, Banks, local authorities etc.

APGCL has 3 power plants - Namrup Thermal Power Station (NTPS) of a capacity of 134 MW, Lakwa Thermal Power Station (LTPS) of a capacity of 120 MW, and Karbi Langpi Hydro-electric Power Station (KLHEP) of a capacity of 100 MW.

Some of the main challenges that APGCL has been facing in the last few years are effective utilizing of its entire available capacity due to gas availability constraints at LTPS and machine health issues at NTPS. APGCL has initiated the process of decommissioning the Bongaigaon Thermal Power Station (BTPS) and handing over the Chandrapur Thermal Power Station (CTPS) to a private player.

At present, APGCL has large number of projects under execution. The table given below gives the status of the projects under execution.

Sl.

No

Project Status

1 Namrup Replacement Power Project

EPC contract awarded to BHEL and BHEL is in the process of starting civil work

2 Lakwa Waste Heat Recovery Project

About 70% of the work is complete

3 Amguri TPS LOI for Environmental Impact Assessment study issued to consultant

4 Revival of CTPS The special Purpose company with a JV has been formed by the name of the “Imperial APGCL Power ltd”. This company will now undertake the RLA of the plant

5 Lower Kopili HE Project (3*50) Hydrological observations/metrological data collection are in progress. Agreement for EIA study signed

6 Langpi upper stage Hydrological observations/metrological data collection are in progress.

7 Myntriang (2X3, 2X 1.5) MW Geo Technical report approved and earth work under progress

8 Amtreng ( Myntriang) SHP (20MW)

Consultant appointed for detailed survey investigation for preparation of DPR

9 Lungit SHP Work under process

In the changed paradigm, APGCL will require the following - a well define strategy to achieve the business targets within timelines; a revised structure to



build appropriate governance and drive the business results; healthy systems and processes to streamline the way work is performed; attractive rewards to align goals of individual and company and talented people to obtain necessary technical, human capabilities to succeed.

The components (Strategy, Structure, Processes, Rewards and People) essentially form a part of Organization Design. Hence it is of utmost priority for APGCL to carry out detailed Organization Design exercise to ensure that organization ad employees are aligned towards fulfilment of the organization goal.

Scope of this Study

The overall scope of this study includes:

• Reviewing and benchmarking of the existing organization structure with other well-performing utilities and proposing appropriate head office and field organization structures for each company, given the overall objectives of the company

• Undertaking a human resource profiling exercise of the employees in successor companies

• Analyzing and presenting options for a promotion policy that addresses concerns regarding immediate transition and evolving requirements over a five year period across successor companies

• Reviewing the efficacy of the existing performance management system and proposing options to make it more objective and aligned to each successor company objectives

• Proposing Key Performance Indicators for each company and analyzing alternatives for an employee performance linked incentive scheme for each organization in consultation with the company’s top management. This should draw from experiences in other similarly placed organizations in the country.

This report pertains to study of re-designing the Organization structure for APGCL.

Further, the report is restricted to the study of the executive workforce from the level of SM & above. The study pertaining to Manager & below including non-executive workforce is not covered under this study of the Organization Structure of APGCL.

Redesigning the

PricewaterhouseCoopers

Redesigning the Organization Structure for AP


Organization Structure for AP


Objective of the Study

The objective

• To develop an organization structure at bring broad functional

• To study the apex structure of few Indian appropriate structure

• To carry out human resource profiling and analyse the age and retirement pattern for each organization

Approach

PwC has developed a comprehensive organizational design methodology to assist with structural design, role design, associated linkages and performance measures

This report ifollowing approach was adopted while designing the same for

Organization Structure for APGCL


The objectives of carrying out this

To develop an organization structure at bring broad functional

To study the apex structure of few Indian appropriate structure

To carry out human resource profiling and analyse the age and retirement pattern for each organization

Approach & Methodology

PwC has developed a comprehensive organizational design methodology to assist with structural design, role design, associated linkages and performance measures. The same is shown pictorially below

This report is limited to the study of organization structure for APGCL. Tfollowing approach was adopted while designing the same for


of carrying out this

To develop an organization structure at bring broad functional clarity

To study the apex structure of few Indian appropriate structure


& Methodology

PwC has developed a comprehensive organizational design methodology to assist with structural design, role design, associated linkages and performance

. The same is shown pictorially below

s limited to the study of organization structure for APGCL. Tfollowing approach was adopted while designing the same for

of carrying out this re-designing of

To develop an organization structure at clarity and accountability

To study the apex structure of few Indian


& Methodology for the study


. The same is shown pictorially below


designing of the

To develop an organization structure at the corporate and field level and and accountability

To study the apex structure of few Indian utilities

To carry out human resource profiling and analyse the age and retirement

study


. The same is shown pictorially below (source pwc G


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Page 6 of 64

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Options were generated and deliberated and recommendations made

Benchmarking with different state utilities to obtain industry information

Understand Business Context, Expansion plans; Understand and review the existing hierarchy, the functional responsibilities, the reporting mechanisms, the main functional areas and the geographical spread of operations etc.

Field visits were conducted to Jorhat, Silchar, Plant locations Discussions were held to understand various roles and responsibilities and staff allocations at various functions

The approach has 3 main stages:

Review and Analysis of the Current Structure: This entailed a review of the existing structure and identification of potential areas for strengthening and greater focus. The following tasks were conducted to achieve the same:

• Stakeholder Consultation & Plant Visits: The top level interactions with the Chairman & Managing Director and CGMs were held to understand the expectations of the client. Subsequently, discussions with the next level of the hierarchy were conducted to understand and review the existing hierarchy, the functional responsibilities, the reporting mechanisms, the main functional areas at the corporate and field level and the geographical spread of operations, expansion plans etc.

Visits to all operating plants at Namrup (NTPS), Lakwa (LTPS) and Karbi Langpi (KLHEP) were made. Discussions were held to understand the various role-responsibilities and staff allocations at various functions

Please refer to Annexure 2 to see the offices that were visited

Identify Design Criteria and Benchmarking: This entailed an analysis of the existing structure based on management coverage, span of control, key



operating priorities, expansion plans, top level functional clarity etc. The top level structures of some of the state utilities were also studied to identify improvement opportunities. The generation companies used for this were AP Genco (APGCL), Gujarat Genco (GSECL) and Haryana Genco (HPGCL).

Develop Organization Structure, Validate and Finalize: Based on the previous stages of the approach, the organization structure for APGCL was re-designed. Successively, based on iterations and need based discussions with the stakeholders on the proposed structure and based on the initial feedback, the proposed organization structure was revised and documented in this report.

Structure of the Report

This report on the organizational structure of APGCL is divided into 3 chapters.

• Chapter 1 - Introduction: The first chapter is an introduction to the report and covers the background of ASEB and APGCL, objectives of the study and the approach followed by PwC to conduct the study.

• Chapter 2 – AS-IS Analysis and TO-BE Recommendations: The second chapter is an AS-IS analysis of the organizational structure and covers human resource profiling, details of the present organization design and structure. The AS-IS analysis is followed by TO-BE recommendations to enable a comparison and clearly highlight the changes being recommended. The TO BE structure is supported with a write-up on the Basis for recommendations, Comparison of as-is & to-be manning-positions and Future scenario & migration for the company.

• Chapter 3 – Conclusion: The third chapter of this report summarizes the broad recommendations made for APGCL.

o Annexure 1 – Benchmarking: Annexure 1 covers the benchmarking of the organization structure of APGCL with other state utilities and highlights the key learning of the benchmarking exercise. The key learning is also aligned appropriately in chapter 2 to highlight structural implications.

o Annexure 2 – List of the offices, who were visited in order to understand the reporting hierarchies and various functions performed by them

.

Redesigning the


Present Organization StrucutreAS IS AnalysisTO BE Recommendations

Redesigning the Organization Structure for AP


Present Organization StrucutreAS IS AnalysisTO BE Recommendations


Present Organization StrucutreAS IS Analysis and TO BE Recommendations


Present Organization Strucutre

TO BE Recommendations AS

The Reporting H

There are various levels of hierarchies present in the following diagram is a representation of the various levels of hierarchies (above the level of AM) being followed in the company. The hierarchies are representations of the legafor quick referral.

Sl.

No

1

2

3

4

5

6

Organization Structure for APGCL

AS-IS Analysis

The Reporting H


Earlier Designation

Assistant Engineer

Assistant Executive Engineer

Executive Engineer

Superintending

Additional

Chief Engineer

IS Analysis and TO

The Reporting Hierarchies in


Earlier Designation

Assistant Engineer (AE)

Assistant Executive Engineer

Executive Engineer (EE)

uperintending Engineer

dditional Chief Engineer

Chief Engineer (CE)

and TO-BE Recommendations

ierarchies in APGCL

There are various levels of hierarchies present in the following diagram is a representation of the various levels of hierarchies (above the level of AM) being followed in the company. The hierarchies are representations of the legacies followed in the

(AE)

Assistant Executive Engineer (AEE)

(EE)

Engineer (SE)

Chief Engineer (ACE)

BE Recommendations

APGCL

There are various levels of hierarchies present in the following diagram is a representation of the various levels of hierarchies (above the level of AM) being followed in the company. The hierarchies are

cies followed in the organization

New Designation

Assistant Manager (AM)

Manager/Deputy Manager (M

Senior Manager (SM)

Deputy General Manager (DGM)

General Manager (GM)

Chief General Manager (CGM)

BE Recommendations

There are various levels of hierarchies present in the organizationfollowing diagram is a representation of the various levels of hierarchies (above the level of AM) being followed in the company. The hierarchies are

organization and can be used

New Designation


ager/Deputy Manager (M

Senior Manager (SM)


General Manager (GM)


Page 9 of 64

organization. The following diagram is a representation of the various levels of hierarchies (above the level of AM) being followed in the company. The hierarchies are

and can be used


ager/Deputy Manager (M / DM)



. The following diagram is a representation of the various levels of hierarchies (above the level of AM) being followed in the company. The hierarchies are

and can be used



Human Resource Profiling

The HR profiling exercise has been carried out for the three companies (APDCL, APGCL and AEGCL) together.

It has been carried out on the basis of the manpower data collected from the office of the Director Personal and Deputy General Manager- Human Resource (DGM-HR) of respective companies.

Based on the information available, employees have been classified into two categories - Executive and Non Executive.

All employees belonging to grade 10 (G10) and above have been classified as executives and all employees belonging to grade 9 (G9) and below have been classified as non executives.

Details of the availability of the data in the data base collected from each company are given below:

Company Number of Employees

E / NE Ratio (%) Executives Non-Executives

Total At HQ At Field At HQ At Field

AEGCL 33 195 77 1550 1855 12 / 88 APDCL 110 494 424 10204 11232 5 / 95 APGCL 44 174 107 1113 1438 15 / 85 Total 187 863 608 12867 14525 7 / 93

In this report, the HR profiling analysis has been carried out for APGCL only.

The main observations that have been made on the basis of the profiling exercise are as follows:

• In APGCL, about 11% of the total employees are in the headquarters and about 89% of the total employees are in the field offices/plant level.

• In APGCL, HQ executives form 29% of the total employees working in the HQ and field executives form only 14% of the total employees working in field functions. For APGCL as a company Executives form 15% of the total employees working.



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• The average employee age of APGCL is 50 years.

• The average age of executives and non-executives do not vary much as compared to the company average.

• Approximately 60% employees are above 50 yrs of age (lowest in 3 companies) and approximately 68% executives are above 50 yrs of age.

• The non executive to executive ratio for APGCL is 6.



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Retirement Profiling


• Approximately 38% workforce will retire by calendar year’16 (CY’16)

• Approximately 46% executives will retire by CY’16 (highest among 3 companies)

• Approximately 10% among SM & above will retire every year till CY’16 (highest among 3 companies)



The AS-IS and TO-BE Structure

The AS-IS analysis and TO BE recommendations for re-designing the organization structure for APGCL have been classified into three broad levels. These are:

Board Level: Board of Directors of APGCL

The Board of Directors (BoD) of APGCL has eight members and is headed by the Chairman of the Board. The Managing Director (MD) is the lone functional director of the board and has been delegated powers to undertake management and control of the affairs of the company. The rest of the board members are non-functional directors.

The current board comprises of One Chairman, one Managing Director, Two State Government representative Directors (one each from Department of Power and Department of Finance) and Four Independent Director (from academic institutes, local repute etc)

Main Observations:

• APGCL Board of directors has representation from the state Government.

• APGCL Board has 4 independent Directors. Their process of appointment / nomination is specified in Article of Association.

• APGCL Board has one Functional Director as Managing Director.

Relevant Guidelines on Corporate Governance:

Plant Level

Corporate Level

Board Level

11

22

33



The Department of Public Enterprises has laid out certain guidelines for constitution of Board for Central Sector PSUs (Source: Guidelines on corporate governance for CPSE 2007). The key points of the guidelines are:

• The Board of directors of the company shall have an optimum combination of functional, nominee and independent directors.

• The number of functional directors (including CMD/MD) should not exceed 50% of the actual strength of the Board.

• The number of nominee directors shall be restricted to a maximum of two.

• In case of CPSEs listed in Stock Exchanges, the number of independent directors shall be at least 50% of Board Members. In case of CPSEs not listed in the Stock Exchanges, at least one-third of the Board Members should be independent directors.

Experience from Other Utilities

Following table shows the composition of Board of Directors from some of the other state utilities:

Indicator Directors UHBVNL OHPC AP Genco

AP Transco APNPDCL APCPDCL

No of Directors

Functional 4 3 7 6 6 8

Govt Nominee 4 3 1 1 - -

Other Non-Executive - 4 2 2 2 -

Recent Board Size 8 10 10 9 8 8

The above table shows that the number of government nominated directors is restricted in most utilities (except UHBVNL) to ensure more independence in operations of the company. The functional directors in most utilities include functional directors from Operations, Finance, Human resource, Technical / Projects to assist the CMD/MD.

In UHBVNL (Haryana Discom), the company has formed a committee consisting of functional directors of the company, known as “Committee of Whole Time Directors (WTD) of the Company”. This is popularly called the WTD Committee. The details and powers of the committee are incorporated in the Article of Association of the company. The WTD committee has been assigned ‘Full Powers’ for making various decisions in order to enable smooth functioning of the company. The powers of the WTD committee are clearly defined and separated out from the Board of the company.



Structural Implications

Sl. No

Issue Experience from other Utilities

Recommendations / Changes considered

1 Need for greater functional representation at Board level

Presence of 3-6 Functional Directors depending upon the size and focus of the organization

Functional Directors at Board Level for Hydro, Human Resource, F&A and Operations proposed to be introduced

2 Internal Audit Function not strengthened

Internal Audit function is a separate function directly reporting to the head of the company

Internal Audit function is proposed, which will report to Board Audit Committee

Recommendations

• The introduction of 4 functional directors’ positions at the Board level namely Director Hydro, Director Human Resources, Director F&A and Director Operations is proposed. These positions are in addition to existing position of MD of APGCL.

• These positions at the Board level need to be selected based on merit and functional requirements and not be treated as posts by promotion.

Future Scenario and Migration

• During various stakeholder discussions, it was highlighted that incorporation of the positions of functional director at the Board level requires appropriate changes in the Article of Association of the company and thus, it may not be feasible to fill these positions immediately.

• Therefore, an interim arrangement is recommended under which the proposed positions of Directors may be replaced with Executive Directors (ED) for the company. The appointment of EDs should be filled from the respective functional stream only. For eg: it is recommended that the position of ED F&A or ED Technical is filled from the respective finance or electrical cadre itself.

• The position of EDs should be retained till the time amendments in Article of Association are made that enable the appointment Functional Directors at the Board Level.

• A committee comprising EDs and MD should be formed and appropriate powers should be delegated to the committee to ensure smooth functioning of the company. As discussed above, UHBVNL (Haryana Discom) has similar arrangement known as WTD Committee.



An overview of the entire structure of APGCL

The Existing Top Level Structure

The diagram below captures the first level of management that is directly reporting to the Managing Director (MD) and thus depicts the functional perspective of the entire APGCL in one chart. The MD is the top most functional position in APGCL and is the person to whom all the functional heads in the organization report.

APGCL has a functional structure and each function is headed by a CGM. It has four main functional groups - Generation, Hydro, F&A and HR. For the purpose of clarity in the report, the functions of F&A, HR, Generation and Hydro have been explained in detail under the Corporate Structure, while the functions of the Plant Offices have been explained under the Plant structure. However, wherever possible in the Plant structure, the functional presence of F&A, HR etc have been captured in detail and an analysis on making the structure conducive to maximum work effort has been made.

The top level existing structure under the MD is as follows:

ManagingDirector

CGM (Civil)Hydro

CompanySecretary

CGMGeneration

CGMFinance & Accounts

CGMHuman Resource

Chief Medical Officer

GM (Civil)Civil Design

GM (#3)Plant Heads (LTPS,

NTPS, KLHEP)

GM (Civil)Headquarter (HQ)

SMCTPS

GMHeadquarter (HQ)

DGMBTPS

DGMFund Mgt,

Corporate Finance

SMHR

Assistant Security Officer

Resident Engineer Liaison, New

Delhi

DGM (Civil)Investigation Circle

DGM (Civil)DHEP Coordinator

DGM (Civil)Projects

Monitoring

DGM (Civil)Nodal Officer

LKHP

Controller of MoveKolkatta

DGMProject Planning &

Regulatory

DGMO&M

DGMFuel Contracts &

Purchase

DGMEstablishment,

PF, Bill payment

SM (Civil) (#4)Design



The broad description of the functions reporting directly to MD is summarized below:

Sl. No

Function / Position Broad Role & Responsibility

1 CGM Generation • Operation & Maintenance of the generating plants (thermal & hydro)

• Commercial activities related to fuel purchase, tariff petitions, payment of railway bills etc.

• Project planning, designing, execution monitoring of new generating plants / expansion

2 CGM Hydro • Responsible for civil activities in the plant • Civil design and preparation of DPR for hydro

plants • Project monitoring and implementation of hydro

projects

3 CGM F&A • Preparation of pay and keeping pension & provident fund records

• Corporate finance • Preparation of final accounts, budgeting and audit

activities

4 CGM HR • Posting and transfer of employees • Promotions • Recruitment • The position is acting as Director – Personnel also

for ASEB for unified cadre activities

5 Chief Medical Officer • Approval of medical bills • Liaison with local hospitals / medical practitioners

6 Company Secretary • Act as company secretary on behalf of BoD • Maintain details of Board meetings and other

statutory compliance

7 Resident Engineer, Liaison, New Delhi

• Residing at New Delhi for coordination with MoP, CEA and other Central Govt authorities

8 Assistant Security Officer • Handle activities related to security


Sl. No

Issue Impact Structural Implication/Changes to be considered

1 Functions of Security, Medical and Liaison (New delhi) reporting to MD directly

It increases the span of control for MD

The functions need to be aligned appropriately to reduce avoid direct reporting to MD

2 Internal Audit function is not present separately and is taken care by F&A function

The functional independence is required for

Internal Audit Function needs to be introduced and should report to MD directly



Sl. No


itself internal audit

3 The post of CGM F&A is vacant and is under dual charge of APGCL and AEGCL

Reduces the company independence as dual charge is with CGM F&A of AEGCL

Separate CGM for F&A function is required

4 The post of CGM HR is in dual charge of Director – Personnel of ASEB for common activities of recruitment, promotions etc.

Increases the work load as well Director (P) dominates ahead of CGM – HR

Slowly, over a period of time, the role of Director – Personnel should minimize and respective companies should handle their HR tasks

5 The HR department has more of a transactional role and transformational functions are absent

This affects the HR development in the company

HR should have adequate focus transformational role

6 BTPS has been handed over to NTPC. At present some man power is posted at BTPS for the disposal of the scrap.

In future no man power will be required for this plant

BTPS has not been included in the proposed structure

7 CTPS has been handed over to a joint venture formed between APGCL and a Pvt Company.

In future no man power will be required for this plant

CTPS has not been included in the proposed structure

8 Acquiring new skills related to commercial, procurement, regulatory activities

Need adequate focus for formation of companies

The proposed structure need to have appropriate representation for these functions

9 Lack on focus on IT function Need appropriate focus on MIS and effective decision making and plant monitoring

Required to build scope for strengthening IT activities and online MIS for plant monitoring

10 The Hydro function primarily takes care of only civil activities for the company which includes thermal business also

The Hydro business has both Civil and EM activities

The nomenclature need to be changed to Civil and accordingly structure to align for Hydro and Thermal business

11 The civil, design; project monitoring; investigation, DPR, tendering, procurement, establishment functions etc are interrelated

The clear accountability among various civil function lacks

The proposed structure need to align functions in a way to bring appropriate accountability.

12 The representation of functional directors at board level

The enhanced representation will ensure effective decision making for company

The top level org structure need to be supported with more functional directors



TO BE Structure

The top level proposed organization structure for APGCL is as follows:

The following is a summary of the key changes recommended:

• The four positions of functional directors – Director Hydro, Director Operations, Director F&A and Director HR have been introduced to ensure representation of the company at the Board level and facilitate effective decision making for company operations.

• Internal audit is proposed to be a separate function to ensure independence is maintained while carrying out audit activities. The function will take care of internal and statutory audit and preferably be supported by external auditing firms. The internal audit function will report to board audit committee

• The activities related to legal, PRO are proposed to be handled by the company secretary

Each function and the related changes have been highlighted in detail under the corporate and plant structure respectively.

Managing Director

DirectorHydro

CompanySecretary, PRO, Legal, Security

DirectorOperations

DirectorF&A

DirectorHR

CGMF&A

GMHR

SMEstablishment

DGMTraining, PMS

CGMGeneration

DGMEM & Civil Design

DGMCommercial & IT

Resident Engineer, New

Delhi

CGMCivil Planning &

Projects

GMCivil & EM Design

SMInternal Audit

Board Audit Committee



Comparison of As Is and To Be Man-in-Position

Designation Electrical Civil F&A HR Secretariat Total

E P E P E P E P E P E P CGM 1 1 1 1 0 1 1 0 0 0 3 3 GM 4 4 2 2 0 0 0 1 0 0 6 7 DGM 9 10 6 6 2 2 0 1 0 0 17 19 SM 24 25 16 16 4 8 1 2 1 1 46 52 AM / DM / M 110 110 0 0 0 0 1 7 0 0 111 117 CMO / MO 0 0 0 0 0 0 5 4 0 0 5 4 Total 148 150 25 25 6 11 8 15 1 1 188 202

Note: 1) The numbers mentioned in above table are based on our discussions at corporate office and plant

offices 2) *: The count of AM / DM / M is based on the employee database. 3) E: Existing; P: Proposed



Building Cadres and Promotional Avenues

This section has been divided into two parts – Highlighting the concerns raised by the stakeholders and addressing the concerns raised by the stakeholder.

Concerns raised by the Stakeholders:

• The various concerns raised by the stakeholders have been grouped under two headings – Building of cadres in the company and Promotional avenues for the executive workforce of the erstwhile ASEB, now belonging to APDCL, AEGCL and APGCL respectively. The details under each part is as follows:

o Building of cadres in the company: The main concerns in this regard are as follows:

� What are the new cadres that need to be introduced and how can they be built in the company?

� How should the existing cadres be strengthened?

� How can attractive promotional avenues be built for employees in each cadre?

o Promotional avenues for the employees of erstwhile ASEB, now belonging to APDCL, APGCL and AEGCL respectively: The main concerns raised in this regard are as follows:

� Inter Company Promotional Avenues: How can it be ensured that employees belonging to the three companies post restructuring do not feel at a disadvantaged position in terms of promotional avenues as compared to the situation prior to restructuring? In the pre restructuring scenario, employees are eligible to move across the three companies to avail the promotional opportunities. However, post restructuring, this movement will be restricted. (for eg. In the current situation, it is possible that a GM in AEGCL becomes CGM in APDCL/APGCL, if any vacancy arises in APDCL/APGCL respectively. But post re-structuring it will be possible for this GM of AEGCL to become the CGM only when a vacancy arises in AEGCL). In case the vacancy arises in the other two companies before it arises in AEGCL, an employee will feel he/she was better off in the pre restructuring scenario. To conclude, how can it be ensured that employees don’t feel that the other company is offering better promotional avenues?

� Promotional Avenues within a company: How can it be ensured that all cadres within the same company have equal promotional opportunities? For eg: An employee serving as a DGM in the F&A cadre in APGCL must not feel that he/she lacks promotional opportunities as compared to a DGM in the electrical cadre in APGCL.



� How to ensure that the employees occupying the leadership positions in each company (eg: at the CGM level), occupies the position for a longer duration to have sufficient time to build a vision and also be involved in the execution? At present, the tenure of employees at these positions is limited to 1-2 years.

Addressing the concerns raised by the Stakeholder:

• Building Cadres for APGCL:

o The re-designing of organization structure for the three companies has been conducted and the cadres proposed for three companies are exclusively for the respective companies. This exercise for APGCL has built new cadres for HR stream and strengthened the existing cadres of Electrical, F&A and Civil.

o The aspects of building/strengthening each cadre have been discussed below:

� Electrical Cadre: This is the largest cadre in APGCL. This cadre serves the core function of the company and top most position of this cadre is the level of CGM. In the redesigned organization structure, the presence of this function across the HQ and across all levels of the plant has been maintained.

Overall, there has been an increase in the promotional avenues among executives. The additional post at the DGM and SM level provide greater opportunities of promotion for the executives.

� Civil Cadre: In the redesigned structure, this cadre has been given all the positions from SM till CGM level under various activities both at HQ and plant / field level.

Overall, there has been no change in the number of executives at SM & above level for this cadre.

The promotional avenues for this cadre are likely to increase when more hydro projects are added for construction. In the proposed organization structure, we have provided linkage to provide additional post of DGM and SM per new construction site of hydro project.

� F&A Cadre: In the redesigned organization structure, this cadre has been strengthened and has been given positions at CGM, DGM and SM level under various activities. The cadre is present at the plant level also and the same is retained in the proposed organization structure. The position that has not been given under this cadre is of the level of GM. This has been recommended as Post Personnel (PP) post. The PP concept is explained later within this section.



Overall, there has been an increase in the promotional avenues among executives. By introducing additional posts at SM level, the promotional avenues have been increased for AM / DM / M level.

� HR Cadre: The presence of the HR cadre in APGCL has been very limited and is mainly handled by electrical cadre at the plant level. Thus, the redesigned organization structure has built this cadre in the company. Eleven positions of HR at various levels have been proposed. The positions of SM’s that have been proposed are partially occupied and the position of DGM is not occupied. Therefore, it is recommended that lateral recruitment for filling these positions be conducted immediately. Alternatively, it is also possible to give an option to the existing DPMs (placed at plant office but from electrical cadre) to switch over to the HR cadre and carry out the functions respectively. Among total eleven, seven positions have been recommended at the entry level. In order to ensure that the cadre is built within the company, the appointment for twelve positions must be conducted keeping in mind that people who will fill this post must have an appropriate HR background. Overall, the recruitments at senior positions or at entry level positions should be done among candidates with a background in HR to help the company build this cadre effectively.

The position that has not been given under this cadre is the level of CGM. This has been recommended as Post Personnel (PP) posts. The PP concept is explained later within this section.

• Promotional avenues for the employees of erstwhile ASEB, now belonging to APDCL, APGCL and AEGCL respectively

• In dealing with the various issues arising with respect to promotional avenues, a concept of Post Personnel (PP) has been used. Before the concerns with respect to promotional avenues are addressed, a brief description of the concept of PP is presented below:

� ‘Post Personal (PP)’ enables an employee to attain the next level in the hierarchy and earn the benefits assigned to higher position, despite that position actually not existing within the structure. Once this employee retires, this post will cease to exist and will return to the original proposed position. For Eg: In the proposed organization structure of one of the companies, the highest proposed position is GM in a cadre. This means that the employee cannot get promoted beyond the level of GM as there is no post available above this. By introducing the concept of PP, the employee will be promoted to the post of CGM based on some set criteria (this needs to be defined in the PP policy directive). He/she retains the position achieved through PP



till he/she retires. Post his/her retirement, the status of position in the structure is restored to GM level and the promotion among successors will take place accordingly.

o Dealing with inter company promotional avenues:

� This refers to the situation where an employee on the common seniority list who could have been promoted to the next level in the pre-restructuring scenario now loses out on the opportunity in the post-restructuring scenario. The vacancy that arises is in the next company is filled by someone else from that company and this person despite being eligible for promotion gets left out as he is not working in that company.

In order to deal with this issue, the following options are recommended:

• Give promotion to each employee who is likely to be deprived of the next promotion

• Allow PP based higher position to eligible employees in other companies

• Grant higher pay scale to deprived employees equivalent to the promotion post.

� In either case, these options can only be exercised till a particular point of time. Beyond a certain point, when the company has taken care of the majority of such cases, individual cases can be handled and each aggrieved employee can be dealt with at an individual level.

� The retirement profiling of the three companies reveals that by Calendar Year (CY) 2018, 60% of the total executives of APGCL would have retired. The same figures for APDCL and AEGCL are 62% and 60% respectively. Thus, by CY 2018, a majority of the executive workforce (more than 60%) that is likely to be affected by the restructuring exercise would have retired.

� The PP Policy must then be made valid only till 2018, so that these employees need not suffer. The situation post CY2018 needs to be reviewed and a separate solution can be created when the business requirements are different and a different set of solutions can be created.

o Dealing with promotional avenues in different cadres of the same company post restructuring:

� This refers to the situation where employees belonging to different cadres of the same company feel that they are disadvantaged as they belong to a cadre that does not have enough promotional avenues.



� In order to deal with this issue, the following option is recommended:

• Allow PP based promotions to deserving and eligible employees in each cadre. This will be an accommodation made for the employee to motivate him/her to keep performing and ensure that the promotional avenues are not blocked.

• This policy of PP for cadre based promotions is not time bound. This is because the structure itself does not provide for the promotional avenue. So whenever the employee hits a ceiling, a PP post must be offered till the employee retires or becomes eligible for the next level of promotion.

• Following is the summary of cadre wise PP position proposed to be introduced in APGCL

F&A HR

CGM

PP

GM PP

DGM

SM

o Increasing the tenure of Top Management, especially at the level of CGM

� It is recommended that the company creates an appropriate policy to ensure that the employees occupying the position of CGM have a minimum balance of service period (say three years).

� While preparing such policy for the company, the following care must be taken:

• The performers do not lose out on promotional avenues as their balance of service is less then 3 years. For such employees, an interim arrangement such as extension of service may be adopted.

• The ineligible (based on balance of service period) but senior employees do not lose out on their chance to occupy CGM position. They may be granted promotion either on PP basis or may be awarded higher pay scale.

� This policy will ensure the following:

• The average tenure spent by the CGM will increase and greater time will be available for conceptualization and implementation of an overall strategy



• The deserving employees do not lose out on promotional opportunities



Corporate Level: Function wise Organization Structure of APGCL

This section highlights the structure and functions performed by the respective departments:

Generation Department

The functional head of Generation department is the CGM and is primarily in charge of two sets of functions: the plant level functions of each plant and the corporate level functions. In addition, there are two plants namely BTPS and CTPS and the control of these plants is with NTPC / private company. Therefore, these are not discussed in this report.

The generation plants are headed by GM level position and are discussed separately under Plant level.

For APGCL, the corporate level functions are functions related to the GM (HQ), Controller of movement, Kolkatta and Plants under closure. These are discussed below:

General Manager – Headquarter (HQ)

• GM (HQ) is responsible for the following main functions.

- Planning and monitoring O&M expenses of the plants (thermal &hydro).

- Procurement of spares required for plants.

- Commercial functions, related to fuel purchase, tariff petitions, payment of railway bills etc.

- Project planning and monitoring of thermal projects.

• GM (HQ) has 3 DGMs and 7 SMs working under him. The table given below gives the details of the functions and responsibilities of the officers working under GM (HQ).

Sl.

No

Function Responsibility Assisted by

1 Project Planning and regulatory DGM (Project planning and regulatory)

SM (Regulatory) SM(Project and planning)

2 Operations and Maintenance; Design; Tendering & Contracts

DGM (O&M) SM 1# for each plant

SM (Design)

3 Contracts and Purchase DGM (Contracts and Purchase) SM (Gas Contracts)



Controller of Movement (CoM), Kolkatta

The CoM based at Kolkatta is handling the import of various machinery parts for three generating plants required for break down and wear & tear issues as well as for the maintenance of any new machinery. In addition, import of machinery related to new / upcoming plants is also coordinated at the Kolkatta port by CoM.

The CoM is also the liaison with local West Bengal suppliers for the needs of APGCL. Therefore, to ensure smooth port clearance and local coordination, APGCL has created an office of the Controller of Movement in Kolkata. This office is headed by one DGM who is supported by one DM and one AM.

Resident Engineer – Liaison, New Delhi

APGCL has an office at New Delhi for coordination with ministry of power, ministry of new and renewable resources, CEA, CERC, ATE and any other relevant central government department. At present two officers - one Senior Manager and one Assistant Manager - are posted in this office. This office provides services to APGCL and AEGCL also.

Basis of Recommendations

The following table analyses and highlights the existing functions that are being performed, functional heads who are performing them, and how they should be aligned in the new structure. The To-Be structure has been designed to address the current and future priorities of APGCL keeping in mind the structural implications discussed earlier.

Broad Functions Existing Functional Heads Proposed Functional Groups

Overall Generation CGM Generation

Plant Operations & Maintenance GM Plant Assigned under Plant Heads

Fuel Contract & Purchase DGM – III Commercial & IT

Regulatory DGM – I Commercial & IT

IT Projects CGM Commercial & IT

Design DGM – II EM & Civil Design

Civil Under CGM Hydro EM & Civil Design

BTPS Coordination DGM Function not under APGCL

CTPS Coordination SM Function not under APGCL

Controller of Movement DGM - IV / CoM O&M Monitoring, Plant Coordination, Planning

Project Planning DGM – I O&M Monitoring, Plant Coordination, Planning

O&M Coordination DGM – II O&M Monitoring, Plant Coordination, Planning

Resident Engineer Liaison RE / SM Resident Engineer

Tendering & Contracting DGM – II Tendering, Procurement



TO BE Structure

The following structure has been proposed under the Director Operations:

The key changes proposed under Director – Operations are discussed below:

• The generation vertical will take care of the existing & future thermal businesses and handle activities related to O&M, project planning, design, tendering, procurement and execution

• A dedicated function of commercial & IT department has been proposed for acquiring new skills in regulatory, IT/MIS. The function of fuel contract management and purchase is placed under the commercial department.

• The project planning, procurement/ tendering and plant O&M has been kept under the CGM – generation. The design function will be reporting directly to Director – Operations.

• The existing position of DGM – project planning & regulatory has now been placed directly under Director Operations as DGM – commercial legal & IT. The position is supported by SM regulatory, commercial, SM IT projects and SM fuel contract & purchase. This



function is expected to bring the entire commercial & regulatory activities under one umbrella and ensure single point accountability. In addition, the position of SM IT Projects will ensure dedicated focus towards building IT enabled support to the company.


Designation

Electrical Civil Total

E P E P E P

CGM 1 1 0 0 1 1 GM 1 1 0 0 1 1 DGM 4 5 0 0 4 5

SM 8 9 0 1 8 10 AM / DM / M 0 0 0 0 0 0 CMO / MO 0 0 0 0 0 0

Total 14 16 0 1 14 17



Hydro Department

The Hydro function is headed by a CGM and is responsible for civil design, preparation of detailed project reports for hydro plants, project monitoring, and implementation of hydro projects and Investigation of the potential sites for hydro plants. The CGM Hydro is supported by two GMs i.e. GM Headquarter and GM Civil Design. The functions performed by both GMs are discussed below:

General Manager – Headquarter (HQ)

• The GM (HQ) has two DGMs working under him. They are DGM (Project monitoring) and DGM (LKHP).

- DGM (Project Monitoring): He is responsible for the monitoring of the progress of the various hydro projects under implementation. DGM (Project Monitoring) has 5 Senior Managers working under him. The table given below gives the details of the functions and responsibilities of the officers working under DGM ((Project Monitoring).

Sl.

No

Function Responsibility Assisted by

1 Karbi Project SM Manager

2 Normal Development works SM Manager 3 Monitoring of all projects SM Manager 4 Amtreng and Longnit SM

5 DHEP SM

- DGM (LKHP): He acts as the nodal officer for the Lower Kopali Hydro Electric Project.

General Manager - Civil Design

• GM (Civil design) has one DGM (Investigation circle) and 4 SM’s to support the GM in the design office. One more DGM is placed under him for the 20MW DHEP (Dhanasri hydro project)

- DGM (Investigation circle): DGM investigation circle has four divisions working under him. Each division is responsible for the investigation of the potential Hydro Electric Power station site. Details of the sub division reporting to DGM (Investigation circle) are given below:

Sl.

No

Name of Sub-division Responsibility Assisted by

1 Jagiroad SM

2 Amtreng (Myntriang) SM AM

3 Lower Kopili construction division

SM AM



Sl.

No

Name of Sub-division Responsibility Assisted by

4 Longnit SM DM

- Senior Manager Design (#4): In the office of the GM (Civil design), there are 4 SM’s. These SM’s take the investigation reports prepared by the investigation team and prepare DPRs for the proposed projects. Apart from this, the office of the GM (Civil design) also provides support for civil design function to APDCL and AEGCL.

- DGM (DHEP): One post of DGM is placed at Dhansiri HE Project for monitoring the construction and execution of the same.




Plant Operation & Maintenance Plant Head Assigned under Plant Heads

Civil Design GM – I Civil & EM Design

Civil Investigation DGM – I Civil & EM Design

Preparation of DPR GM – I Civil & EM Design

EM Design CGM Civil & EM Design

Civil HQ, Coordination GM – II Civil Planning & Projects Project Execution / Coordination (DHEP, LKHP)

DGM - II, DGM – III Civil Planning & Projects

Projects Monitoring DGM – IV Civil Planning & Projects

Tendering & Procurement CGM Civil Planning & Projects

Overall Hydro / Civil CGM Civil Planning & Projects



TO BE Structure

The following structure has been proposed under the Director Hydro:

The key changes proposed under Director – Hydro are discussed below:

• The hydro vertical will take care of existing & future hydro businesses and handle activities related to project planning, design, tendering, procurement and execution. O&M will be handled by the Generation vertical.

• The investigation & survey, design, project planning and tendering/procurement have been proposed with clear responsibility and accountability.

DirectorHydro

GMCivil & EM Design

CGMCivil Planning &

Projects

DGMInvestigation &

Survey

SM (#4)Jogiroad,

Amtreng, Lognit

DGMDesign, Qly Ctrl

SM (#2) CivilSM (#1) EM

GMProject & Planning

SMHydel - Tendering, Contract, Procurm

DGMProjects

SM (#3)Hydel

DGMExecution/Const

SM (#1) Execution / Const

Staffing based on the size of the Project.

Current no of projects are 2 (DHEP, LKHEP)




Designation

Electrical Civil Total

E P E P E P

CGM 0 0 1 1 1 1 GM 0 0 2 2 2 2 DGM 0 0 5 5 5 5 SM 0 1 13 12 13 13 AM / DM / M 0 0 0 0 0 0 CMO / MO 0 0 0 0 0 0 Total 0 1 21 20 21 21



Finance & Accounts Department

The Finance and Accounts function is headed by a CGM and is responsible for preparation of pay and keeping pension & provident fund records, corporate finance, preparation of final accounts and budgeting. CGM (Finance) is supported by two DGM’s.

The following section explains the functions of the DGM (Establishment, PF, Bill payment - Subsidiary drawing accounts) and DGM (Fund management, corporate finance - Principal bank account). The plant F&A function is handled at plant level and primarily reports to DGM (Principal bank accounts) for routine activities.

DGM (Subsidiary Drawing Accounts)

• DGM (Subsidiary Drawing Accounts) is responsible for the following main activities.

- Pay & allowances of all employees in Head quarter

- Payment of bills for the work done or materials procured from head quarters

- Establishment of the employees of F&A cadre

- Maintaining GPF records

- Maintaining pension records of the employees

DGM (Principal Bank Accounts)

• DGM (Principal Bank Accounts) is responsible for the following main activities.

- Fund management ( arrangement and disbursement of funds to plants)

- Preparation of Final Accounts

- Preparation of tariff petition

- Preparation of Annual Budget

- Tax issues.




Audit CGM Assigned under Board Audit Committee



Tariff Petition DGM Principal A/c Assigned under Commercial function

Budget & HQ Cash DGM Principal A/c Budget, Taxation, Compilation, Corporate Account

Billing & Subsidiary cash DGM Subsidiary A/c Budget, Taxation, Compilation, Corporate Account

Compilation DGM Principal A/c Budget, Taxation, Compilation, Corporate Account

Reconciliation DGM Principal A/c Budget, Taxation, Compilation, Corporate Account

Taxation DGM Principal A/c Budget, Taxation, Compilation, Corporate Account

Corporate Account DGM Principal A/c Budget, Taxation, Compilation, Corporate Account

Corporate Finance DGM Principal A/c Corporate Finance, Fund Management, Project Finance

Project Finance & Resource mobilization

DGM Principal A/c Corporate Finance, Fund Management, Project Finance

GPF DGM Subsidiary A/c Establishment, Pension, NPS, PF

Establishment DGM Subsidiary A/c Establishment, Pension, NPS, PF

Pension DGM Subsidiary A/c Establishment, Pension, NPS, PF

TO BE Structure

The following structure has been proposed under the Director F&A:

CGMF&A

SMEstablishment

DGMCorp Fin, Fund Mgt, Proj Fin

DGMCorp A/c, Budget, Taxation, Compile

SMCorporate Finance

DirectorF&A

SMBudget,

Compilation, Compliance

SMCorp A/c,

Taxation, Billing



The key changes proposed under Director – F&A are discussed below:

• The functions under CGM – F&A are aligned to support the F&A activities of the company and create clear accountability for functional heads under CGM – F&A. The changes under F&A are focused towards achieving functional clarity & accountability

• The activities related to taxation, new pension scheme, project finance have been introduced to address the emerging needs.


Designation F&A

Remarks Existing Proposed

CGM 0 1

GM 0

DGM 2 2

SM 4 8 One for Internal audit, One each for plant (LTPS,NTPS,KLHEP)

AM / DM / M 0 0

CMO / MO 0 0

Total 6 11



Human Resource

The Human resource department is headed by the CGM (HR). The CGM (HR) is entirely responsible for planning, supervising and monitoring all the HR functions across the organization. CGM (HR) is also working as the Director Personal (ASEB). He takes care of the transfer of employees across ASEB successor companies.

Promotion in the successor companies of ASEB are still being done through a common seniority list. Director Personal is responsible for the promotion of executives. There is no clearly defined responsibility or role for the APM HR. Since he is the only one who is assisting the CGM HR in the Corporate Office, the work allotted is on an ad-hoc basis and done as and when the need arises.

Medical Department

The Medical function in APGCL is segregated into two parts - at the plant level and at the Head Quarter level. At the Head Quarter, medical function is headed by a Chief Medical Officer and is supported by a Senior Medical officer. The medical function is handling activities related to checking and clearance of medical bills for employees as per policy.


The following table analyses and highlights the existing functions that are being performed, functional heads who are performing them, and how they should be aligned in the new structure. The To-Be structure has been designed to address the current and future priorities of APGCL keeping in mind the structural implications discussed earlier


Administrative matters CGM at HQ / SM at Plant Establishment, IR, Welfare, Admin

Employee grievance, Disciplinary matters

CGM at HQ / SM at Plant Establishment, IR, Welfare, Admin

Industrial relations, union matters, Employee welfare

CGM Establishment, IR, Welfare, Admin

Employee establishment matters

CGM at HQ / SM at Plant Establishment, IR, Welfare, Admin

Recruitment & manpower planning

CGM / ASEB Coordination ASEB Coordination

Promotions CGM / ASEB Coordination ASEB Coordination

Transfers & postings CGM / Plant Head Establishment, IR, Welfare, Admin

Medical Medical Officer Medical




Employee Legal SM Function assigned to Company Secretary

Training & development CGM Training , PMS

Performance appraisals CGM / ASEB Coordination Training , PMS

TO BE Structure

The following structure has been proposed under the Director HR:

The key changes proposed under Director – HR are discussed below:

• The proposed position of GM – HR is expected to bring about a more transformational role of HR. The functions introduced under the GM – HR ensure functional clarity and accountability keeping in mind the fact that these functions are essential for employee development and career progression.

• The position of SM Establishment will handle activities related to employee establishments. SM Administration and IR will look into matters relating to welfare, IR, manpower planning

• DGM – Training, PMS will ensure the introduction of employee development initiatives and coordinate with field offices

• The position of senior medical officer formerly reporting to the MD will now report to the GM – HR. There if no functional change for this position.

• The new position of SM ASEB Coordination has been proposed and will carry out all the common functions related to all three utilities (eg: promotions, transfers, recruitment). Over a period of time, when all utilities

GMHR

DGMTraining, PMS

SMASEB

Coordination

SMEstablishment, IR,

Welfare, Admin

DirectorHR

Senior Medical Officer



start handling these tasks internally, the position will be renamed to include activities like employee welfare, employee vigilance etc.


Designation HR

Remarks Existing Proposed

CGM 1 0

GM 0 1 DGM 0 1

SM 1 2 One at each plant, Two with DGM Trg / PMS, one with each SM at HQ

AM / DM / M 1 7 One SMO at HQ and one MO at each plant

CMO / MO 5 4

Total 8 15



Plant Level: Organization Structure of the Generation Plants of APGCL

There are currently 3 operational plants for APGCL - NTPS, LTPS and KLHEP. These plants are situated in far flung areas of Assam and thus the administrative structure of each of them is like that of a small company with a setup to meet all the requirements of the established unit.

The following section explains in detail the structural and functional analysis of each of the 3 plants and brings out the various gaps in the present structure that will have implications on the proposed structure.

Namrup Thermal Power Station (NTPS)

NTPS is a combined cycle power project of the capacity of 119.5 MW. NTPS is headed by a GM position. The plant functions like a divisional unit, where the complete responsibility of the operations, maintenance, material procurement, establishment, maintenance of colonies etc is decentralized and is carried out at plant level.

The top level structure of the plant is shown below:

GMNTPS

DGMNRPP

Medical OfficerMedical

DGMO&M

SMMaterials

SMF&A

ManagerTechnical

SMAncillary

Maintenance

SMSteam Turbine Maintenance

SMGas Turbine Maintenance

SMOperations


SMEstablishment/HR

SMCivil

Senior ChemistLab

SMNRPP



There are currently nine positions reporting directly to the GM. These are:

• DGM (Operations and Maintenance)

• DGM (NRPP)

• SM (Materials)

• SM (F&A)

• SM (Establishment)

• Senior chemist

• Manager (Technical)

• Medical Officer (MO)

• Assistant Security Officer (ASO)

The main functions have been explained in detail below.

DGM Operation & Maintenance (O&M)

The DGM (O&M) is responsible for smooth operations and maintenance of the entire plant. He is accountable for the ancillary maintenance, plant operations, mechanical maintenance, electrical maintenance and civil functions of NTPS. He has five SM’s divided functionally reporting to him for discharging the above mentioned responsibilities effectively.

- SM Ancillary Maintenance Division: The ancillary maintenance division headed by the SM is further divided into two sub-divisions. The first sub-division is responsible for the maintenance of the DM plant and the water supply system. The second sub-division is responsible for the maintenance of the electrical panel at the DM plant, water intake from DIllighat, electrical power supply system, maintenance of L/T line and the maintenance of the 11KV and 33 KV feeders. Each subdivision is headed by a DM.

- SM Operations: The operations for the plant are carried out in shifts. It is the responsibility of the SM operations that the plant operates uninterrupted and smoothly. For the same, he is assisted by a Manager and by 9 AM’s who are held responsible for different shifts.

- SM GTMD: The following is the functional details performed by SM (GTMD)

o The GTMD is divided into the mechanical maintenance division, electrical maintenance division, switch yard and control & instrumentation division. In the As Is structure, there are no officers heading the function of electrical maintenance under the GTMD SM

o The main functions involved in mechanical maintenance include cleaning of air inlet, generator cooler, seal oil cooler, spray pond etc, maintenance of diesel power house (DPH), periodic overhauling of GT units, routine maintenance including checking of air compressors, oil level checking of oil reservoirs etc



o The main function involved in electrical maintenance pertains to the power house. It involves periodic maintenance activities such as exciter overhauling, AVR and diesel generator maintenance, maintenance of control panel & circuits, periodic overhauling of GT units along with its auxiliaries, power house illumination etc

o The main functions involved in maintenance of switchyard include maintenance of circuit breakers, conductors, clamp changing and tightening, maintenance of transformers, switchyard illumination etc The main functions involved in C&I include cleaning and repairing of air filters, calibration and cleaning of pressure gauges, measurement of vibration, testing and calibration of pressure switch etc.

o The fire fighting sub division is under the supervision of C&I functions. The main functions involved in this are testing of fire extinguishers, testing of all hydrant line points and hydrant pumps, emulsifier system line testing and checking etc

- SM STMD: Like GTMD, even STMD is divided into the mechanical, electrical and C&I sub divisions. STMD does not have the switchyard sub division under it as it is taken care by GTMD. The mechanical maintenance is bifurcated into two parts, one for each unit of the plant and is headed separately.

- SM Civil: The SM civil is responsible for smooth execution of all civil works related to operation and maintenance of plant as well as maintenance of colonies, office buildings, guest house, school, internal roads etc.

DGM NRPP

Namrup Replacement Power Project (NRPP) is a 2X100 MW project to replace the existing old units of NTPS in a phased manner. The DGM (NRPP) is responsible for smooth execution of the project. For the same, he is assisted by one SM.

SM Materials

The SM (Materials) is responsible for the entire procurement function of NTPS. Any purchase above this is made by the HQ. The stores are maintained by the respective maintenance divisions and material is drawn as and when required. The SM (Materials) is assisted by a DM for executing the functions.

SM F&A

The SM (F&A) is responsible for costing and budgeting for the entire plant, disbursements of payments related to employees and supply & contract, compilation of all accounts, maintenance of leave accounts for employees etc.



SM Establishment

The SM (Establishment) is responsible for the employee related activities including transfers and postings within divisions in NTPS, recruitment of grade-4 employees, appointments of school teachers, annual increments of non-officers, maintaining training file, disciplinary activities, maintenance of service books of non officers etc.

Manager Technical

The Manager (Technical) supporting the GM – Plant for its technical activities and provides technical support, works related activities.

Senior Chemist

The chemistry function is responsible for taking periodic samples, test as per requirements and record the same. Based on the results of the test samples, any preventive measure is also planned.


Sl. No


1 Division of mechanical maintenance divisions under GTMD into two units (Unit 5 and 6)

Leading to duplication of roles, skills as well as managers.

The two units can be merged under the same head for mechanical maintenance

2 Fire fighting is a function that has been clubbed with the C&I function of GTMD

This dilutes the attention that is paid to C&I function as well as the fire fighting function

A separate unit of fire fighting should be created in NTPS

3 NTPS currently has SM (HR). The duties performed however do not need an officer of that level to be present.

Expansion of the top level management of APGCL, disproportionate to work requirements

While the presence of an officer is required for each function, the level in the hierarchy can be reduced.



Lakwa Thermal Power Station (LTPS)

The capacity of the plant at LTPS is 120 MW. It has a gas turbine. It is an open cycle power project. LTPS is headed by a GM position. However, currently there is one DGM holding charge as GM. In representing the structure, we have, however, taken the GM as a separate entity.

The plant functions like an independent organization where all the main functions are present and each of the functional head reports to the GM. It is the duty of the GM to ensure the smooth functioning of the entire plant.

The following is the existing top level structure of the plant:

There are currently seven positions reporting directly to the GM. These are

• DGM (Operations and Maintenance)

• DGM (WHRP)

• SM (Materials)

• SM (F&A)

• SM (Establishment)

• Medical Officer

GMLTPS

DGMWHRP


DGMO&M

SMMaterials

SMF&A

SMElectrical Gas

Turbine

SMMechanical

Maintenance

SMElectrical S/w yard, Colonies

SMOperations


SMEstablishment/ HR

SMCivil

SMWHRP



• Assistant Security Officer


DGM Operation & Maintenance

The DGM (O&M) is responsible for smooth operations and maintenance of the entire plant. He is accountable for the operations and maintenance of the electrical division and proper maintenance of the mechanical division. Apart from this, he is also responsible for the entire civil function of the plant. He has five SM’s divided functionally reporting to him for discharging the above mentioned responsibilities effectively.

In LTPS, the functions have been divided separately into operations and maintenance. Maintenance is further divided into electrical maintenance and mechanical maintenance.

The structure of the hierarchy reporting to the DGM (O&M) has been shown above. The following is a detailed explanation of the functions reporting to the DGM (O&M).

- SM Operations: The operation for the plant is carried out in shifts. It is the responsibility of the SM (Operations) that the plant operates uninterrupted and smoothly. The functions performed are similar to those explained in GTMD (NTPS). He is assisted by 5 DM’s and 4 AM’s to man different shifts.

- SM Electrical Division 1: The electrical division 1, primarily looks after the electrical maintenance activities of gas turbine and allied equipments.

- SM Electrical Division 2: The electrical division 2, primarily looks after the electrical maintenance activities of switchyard and colony areas.

- SM Mechanical maintenance: The mechanical maintenance division is responsible for the maintenance of power house, DG sets and other mechanical parts of the plant.

- SM Civil: The main activities looked after by the SM civil include maintenance of water supply at the power house, maintenance of quarters, roads, colonies, school, office building, hospitals, supervision ongoing civil construction, preparing layout plans, drawings, estimates for new plants and monitoring and controlling them.

DGM WHRP

DGM heads the Waste Heat Recovery Project (WHRP). The project is currently in the phase of construction and thus a set up supporting the requirements has been constructed at LTPS. The DGM is responsible for the monitoring and supervision of the entire project and is supported by one SM and two AM’s for the same.

SM Materials



The SM (materials) is responsible for the procurement function of LTPS. This SM is assisted by 2 AM’s for executing the functions.

SM F&A

The SM (F&A) is responsible for costing and budgeting for the entire plant, disbursements of payments related to employees and supply & contract, making collections of miscellaneous nature (eg: rent from guest house etc), compilation of all accounts, maintenance of leave accounts for employees etc. In LTPS, F&A also is involved in establishment activities such as verification of pension forms, payment of salaries, maintenance of acquittance books etc.

SM Establishment

The SM (establishment) is responsible for the employee related activities including transfers and postings within divisions in LTPS, recruitment of grade-4 employees, appointments of school teachers, annual increments of non-officers, maintaining training file, disciplinary activities, maintenance of service books of non officers etc.


Sl. No


1 No presence of a technical cell in LTPS

Lack of assistance to the GM.

Need to create a technical wing under the GM

2 No presence of the fire fighting function

An entire function is being ignored. The need being felt is not being fulfilled.

Need to create the presence of the function in the organization

3 No presence of the ancillary function

An entire function is being ignored. The need being felt is not being fulfilled.

Need to create the presence of the function in the organization

4 LTPS currently has SM (HR). The duties performed however do not need an officer of that level to be present.





Karbi Langpi Hydro Electric Project (KLHEP)

The capacity of the plant at KLHEP is 100 MW. The plant was commissioned in 2007 and is operational since then. KLHEP like NTPS and LTPS is also headed by a GM. The plant functions like an independent organization where all the main functions are present and each of the functional head reports to the GM. It is the duty of the GM to ensure the smooth functioning of the entire plant.

The following is the existing top level structure of the plant::

There are currently seven positions reporting directly to the GM. These are

• DGM (Electrical)

• DGM (Civil)

• SM (F&A)

• Manager (Technical)

• OSD (Establishment)

• Senior Medical Officer

• Assistant Security Officer

GMKLHEP

DGMCivil Maintenance

Senior Med OfficrMedical

DGMO&M

ManagerTechnical

SMOperations and

Valve/Pump house mtce

SMDam Site


OSDEstablishment/HR

SMCivil Maintenance

SMF&A




DGM Electrical

The DGM (Electrical) is responsible for smooth operations and maintenance of the entire plant. He has two SM’s divided functionally reporting to him for discharging the above mentioned responsibilities effectively.

There are mainly three electrical units at KLHEP – the valve house, the dam site and the power house. While the operations and maintenance functions of the valve house and power house are with APGCL, the O&M works of the dam site have been awarded as an annual maintenance contract.

- SM O&M 1: The SM (O&M 1) is responsible for the main functions including shift duty operation of units, operational data maintenance, dealing with regulatory matters, dealing with the plant performance monitoring system, liaising with SLDC and other outside agencies in connection with running of the station.

- (SM O&M 2): The SM (O&M 1) is responsible for the main functions including overall maintenance of both units along with switchyard and all auxiliaries including those at dam site and valve house, DG, cranes, dozers and any other plant machinery, maintenance of electrical stores and workshops, maintenance of 33KV sub stations and colony power supply system and power systems to dam site/valve house, managing any pending construction works.

DGM Civil

The DGM (Civil) is responsible for maintenance of hydraulic gate, stoplock gate, maintenance of penstock, maintenance of internal roads, buildings, water supply, office building, monitoring the gate that is with AMC, undertaking small construction of plant related to O&M works, maintaining and managing civil stores and materials.

Manager Technical

The Manager (Technical) heads the technical wing of KLHEP. It provides technical assistance to the GM as and when required.

SM F&A

The SM (F&A) is responsible for costing and budgeting for the entire plant, disbursements of payments related to employees and supply & contract, making collections of miscellaneous nature (eg: rent from guest house etc), compilation of all accounts etc.

OSD Establishment

Presently, the post is filled by one OSD to manage the entire activities of establishment of the plant.




Sl. No


1 Lack of allocation of responsibility regarding the power house, dam site and valve house among AM’s

Lack of clarity in role Need to divide responsibilities clearly for better accountability

2 KLHEP currently has SM HR / OSD Establishment for its HR function. The duties performed however do not need an officer of that level to be present.



3 Lack of fire and safety function

Entire function being ignored

Need to create the presence of this function

Basis of Recommendations for all three Plants

The following table analyses and highlights the existing functions that are being performed, functional heads who are performing them, and how they should be aligned in the new structure. The To-Be structure has been designed to address the current and future priorities of APGCL keeping in mind the structural implications discussed earlier


Overall Plant O&M GM Overall Plant O&M

Establishment SM / OSD Establishment / HR

F&A support SM F&A

Medical SMO / MO F&A

Fire & safety & security Manager / ASO Fire, Safety & Security

Materials SM Materials

Chemist Lab Senior Chemist O&M

Plant O&M DGM / DGM Civil O&M

Civil Maintenance DGM Civil / SM Civil O&M (Thermal) / Civil Maintenance (Hydro)

Special Projects DGM Special Projects

Technical support Manager Technical



TO BE Structure

The following structures have been proposed for the three plants respectively:

Namrup Thermal Power Station

There is no change in the activities performed by respective functional heads. The main changes that have been proposed are discussed below:

• The new position of Manager – Fire, Safety and Security to take care of the related activities for the entire plant

• The change in reporting of Medical officer who will report to SM F&A, as SM F&A is responsible for payment of all employee / medical claims

• The change in reporting of Senior chemist who will report to DGM O&M, as it facilitates the O&M function

GMNTPS

DGMNRPP

ManagerFire, Safety,

Security

DGMO&M

SMMaterials

SMF&A

ManagerTechnical

SMAncillary

Maintenance

SMSteam Turbine Maintenance

SMGas Turbine Maintenance

SMOperations

APMEstablishment/HR

SMCivil

Senior ChemistLab

SMNRPP




Lakwa Thermal Power Station

There is no change in the activities performed by respective functional heads. The main changes that have been proposed are discussed below:



GMLTPS

DGMWHRP


Security

DGMO&M

SMMaterials

AMEstablishment/HR

SMElectrical Gas

Turbine

SMMechanical

Maintenance

SMElectrical S/w yard, Colonies

SMOperations

ManagerTechnical

SMCivil

SMWHRP

SMF&A




Karbi Langpi Hydro Electric Power Station

There is no change in the activities performed by respective functional heads. The store function will continue to be separate for civil and electrical functions under the respective DGMs The main changes that have been proposed are discussed below:



GMKLHEP

DGMCivil Maintenance


Security

DGMO&M

AMEstablishment/HR

SMShift Operations

SMElectrical

Maintenance

Manager (Civil), AM (Electrical)Tech Support

SMCivil Maintenance

SMF&A

Senior Med OfficrMedical




Designation Electrical Civil Total

Exist Prop Exist Prop Exist Prop

CGM 0 0 0 0 0 0

GM 3 3 0 0 3 3 DGM 5 5 1 1 6 6 SM 16 15 3 3 19 18

AM / DM / M 0 6 0 0 0 6

Total 24 29 4 4 28 33



Conclusion

Conclusion

This chapter highlights the key recommendations / changes proposed for re-designing of organization structure of APGCL. The details of the same are covered in the previous chapters of this report.

• The highlights of the human resource profiling carried out for the existing employees of the company are as follows:

• The average employee age of the company is approximately 50 years and approximately 52% of the existing workforce will superannuate during next 8 years. Therefore, the company requires an immediate focus on manpower planning and linked recruitment plans to induct employee at entry level.

• The main recommendations made at the Company Board level are as follows:

• The introduction of 4 board level functional directors namely Director – Operations, Director – Hydro, Director – Human Resource and Director – Finance & Accounts. These board level director positions are in addition to the existing position of MD of APGCL.

• The positions of functional directors at Board level need to be selected on the basis of merit and functional requirements and need not be treated as posts of promotion.

• The introduction of these positions at Board level will enhance the corporate governance framework, enable greater representation of company at board level and ensure effective decision making for company operations.

• As informed during stakeholder discussions, the appointment of functional directors requires certain changes in the Article of Association of the company, which might take some time to incorporate. Therefore, as an interim arrangement, instead of directors, the positions of executive directors (ED) have been proposed.

• The main changes proposed at the Corporate and Plant level are as follows:

• The span of control of MD has been reduced to 6 from 8 positions, by clustering core business functions together and aligning them under one umbrella.

• Internal audit has been proposed as a separate function to maintain independence while carrying out audit activities. The function will take care of internal and statutory audit and should preferably be supported by external auditing firms. The internal audit function will report to the board audit committee.

• The role of company secretary has been increased by assigning additional activities of PRO, legal, security.



• The HR function at the corporate office and at plant level is gaining a greater transformational role. Plant level presence has been assigned for both transformational and transactional activities. A total of 11 executive level positions have been proposed, which include 3 positions at plant offices of APGCL.

• It is recommended that the commercial function be strengthened with clear responsibility for Regulatory and Commercial activities at corporate office. The commercial function will also look after activities related to IT & MIS, fuel contracting & purchase in the redesigned structure.

• The entire generation O&M (hydro & thermal) is retained under CGM Generation. However, projects are separated under two heads i.e. hydro projects and thermal projects. In the proposed organization structure, the activities related to hydro projects will be managed under Director – Hydro and those related to thermal projects will be managed under Director – Operations.

• The As-is and To-be man-in-position is tabulated below:

Designation Electrical Civil F&A HR Secretariat Total

Remarks E P E P E P E P E P E P

CGM 1 1 1 1 0 1 1 0 0 0 3 3 GM 4 4 2 2 0 0 0 1 0 0 6 7 DGM 9 10 6 6 2 2 0 1 0 0 17 19 SM 24 25 16 16 4 8 1 2 1 1 46 52 AM / DM / M 110 110 0 0 0 0 1 7 0 0 111 117 CMO / MO 0 0 0 0 0 0 5 4 0 0 5 4 Total 148 150 25 25 6 11 8 15 1 1 188 202

Note: 1) The numbers mentioned in above table are based on our discussions at corporate office and on

assumption that all the field level circle heads and division heads positions are filled. 2) *: The count of AM / DM / M is based on the employee database. 3) E: Existing; P: Proposed

• The benchmarking of organization structure was carried out with other state utilities in India and based on the learning from the benchmarking exercise, the new structure for the company was proposed.

• The following solutions have been proposed to address the concerns of the stakeholders of the company:

• The promotional avenues among various cadres have been increased, thus ensuring employees of one company are least affected due to promotions in other companies.

• Under circumstances in which the employee eligible for promotion in the pre restructuring scenario based on the common seniority list loses



out on the promotional avenue due to the companies now being different, the following solutions are recommended:

o All senior employees are promoted in their respective companies, or

o All senior employees are provided with PP based higher positions in their respective companies, or

o All senior employees are granted higher pay scale.

o The above mentioned recommendations to manage inter-se issues are allowed till the calendar year 2018, By then, majority of the executive workforce, which is likely to be affected due to creation of company specific cadre would have retired. Approximately 60% of the executive workforce will retire by calendar year 2018.

• In case of different promotional avenues for employees in the same organization belonging to different cadres, the concept of PP is introduced. This will be granted to employees on the basis of set criteria (mostly depending on performance). In case the employee is eligible for promotions and is meeting his/her performance standards, the employee will be entitled to the benefits of the next level. Thus, even though the structure does not provide for greater growth opportunities for the employee, the career graph does not hit a ceiling in the same organization.



Annexures

Annexures

Annexure 1

This section presents the analysis of the benchmarking exercise carried out for APGCL with other states in relation to the top level organization structure.

In order to arrive at appropriate organization structure, PwC has obtained top level organization structure from following organisations for comparison purpose:

• Andhra Pradesh Generating Company Limited (APGenco)

• Haryana Power Generating Company Limited (HPGCL)

• Gujarat State Electricity Company Limited (GSECL)

AP Genco

(source: www.apgenco.gov.in)

ManagingDirector

DirectorThermal

Chief of Vigilance & Security

DirectorFinance

DirectorTechnical

DirectorHydel

EDCoal

ILLUSTRATIVEOverall Top Level Org Chart

AP Genco

FA & CCAAccounts

CEGeneration

FA & CCAResource

CECivil Hydro

CEProject

CECivil Thermal

CEO&M

DirectorProjects

CETPC

DirectorHR

EDInformation

Systems

CEO&M Plant

CECommercial

CGMAdmn

CGMIR

CGMHR



Main Observations

• The organization is structured as per the Business units i.e. Thermal & Hydel business

• Within thermal business; the O&M function, Fuel management, Commercial functions are working

• For the hydel business unit, the projects as well as O&M activities are under hydel generation department.

• The civil planning and design for all thermal as well as hydel projects is under single department called as technical department

• HR function is segregated from the administrative function. Adequate focus is given to training & development function including training institute at plant level

• The functions related to F&A, corporate communication. Vigilance, security reports to MD directly

Haryana Genco

•

ManagingDirector

DirectorTechnical

COO

DirectorGeneration

DirectorProjects

FA

CEPlanning


HPGCL

CEFTPS

CERGTPP

Company Secretary

CAO

CECRTPP

CEPTPS

CEAdmin

CEProject



(source: www.hpgcl.gov.in)

Main Observations

• The organization is structured functionally as key departments Technical, Projects, Finance, Generation reporting to Managing Director directly

• Single point accountability for entire generation activities as each plant is reporting to director Generation at head office

• The Chief accounts officer (CAO) reporting to MD directly and responsible for entire accounting, compilation and taxation issues. The MD is further supported by Financial advisor (FA) for F&A activities

• The HR department does not have strategic presence

• Adequate focus is given to communication function and single point accountability with communication officer reporting directly to MD

• Company secretary is responsible for compliances under company’s act and is reporting directly to MD

Gujarat Genco

(Source: www.gsecl.in)

Main Observations

• The organization is structured functionally as key departments F&A, HR, Generation, Project & Planning, Civil reporting to Managing Director directly

• Single point accountability for entire generation activities as each plant is reporting to ED Generation at head office

ManagingDirector

CGMHR

Company Secretary

CEP&P

EDGeneration


GSECL

CECivil

GMF&A



• The project & planning department looks after the new projects, renovation & modernization activities for entire company

• Appropriate focus to HR function for its transformational role. The thermal stations have appropriate training facilities and company has its own simulator training centre at one of the thermal unit

• Dedicated focus towards fuel management under generation, responsible for logistics, quality control and contract management of fuel supply

• Distinct civil department, responsible for all civil projects, maintenance activities

Key Learning

In the table given below we have summarized the key learning’s from the benchmarking of the organization structures of above utilities.

Sl.

No.

Structural Imperatives Summary Comparative Position with APGCL

1 Structural basis Primarily organizations are structured as functional structures. The business wise structure is also available

APGCL is also structured functionally at the HQ level and follows a divisional structure at the plant level.

2 Functional clustering Organizations have clustered most of the core functions together

APGCL has its main functions clustered into 4 categories of Generation, Civil, HR and F&A. However, the activities being performed under these functions need to be streamlined and made more systematic.

3 Span of control Single point accountability of functions with the optimal span of control for CMD/MD, range varies from 5 to 8

The span of control of the MD of APGCL is 8 and lies within comparable range.

4 Operations Plant operations are operating under single accountability at corporate office.

The plant operations for APGCL operate under one head – the CGM (Generation) of APGCL.

5 Commercial and regulatory Most organizations have the regulatory function combined with the commercial department and focus on ARR & tariff filing and handling regulatory compliances

There is no presence of a separate function of Commercial and regulatory for APGCL. It is under one DGM managing project planning as well as the regulatory function. Thus, much focus is not laid on this function as compared to other utilities.

6 Projects Project is a clearly defined function in organization and includes new projects as well R&M projects

In APGCL, project planning for Hydel projects and Thermal projects are conducted separately. The function is not centrally defined as one for the entire organization.

7 Material Management Mostly, MM is a part of project function In APGCL, the function of MM is under the GM (HQ) who also looks into project works for APGCL.

8 Finance All organizations have defined F&A function reporting directly to the head of organization

The F&A function in APGCL is clearly established as a separate function. However, there is scope of improvement of reorganizing



Sl.

No.

Structural Imperatives Summary Comparative Position with APGCL

the structure of the F&A department.

9 Company secretary The CS function is reporting to head of the organization directly

The CS function is reporting to head of the organization directly

10 Internal audit The function is clubbed under F&A function The presence of this function has not been established separately for APGCL. This is however a very important function and must be established as a unit directly reporting to the MD

11 Human resource HR is an important department in all organizations with a direct reporting to head of the organization

The HR function is established as a separate function reporting to the MD. However, there is scope of improvement for the way in which the HR department is structured in APGCL.



Annexure 2

The following is the list of the various offices that were visited during the AS IS analysis for the study. This list covers the entire list of executives from the level of MD to DGM’s with whom interactions were held. When the offices of the officers listed below were visited, an interaction with the SM’s, M/DM’s and AM’s in their offices were also made. They have however, not been indicated in the list below.

The offices that were visited during the as-is analysis:

Corporate Office:

- ASEB (Bijulee Bhawan) – Paltan Bazaar

- Meeting with Mr Abbasi (MD, APGCL)

- Meeting with Mr SK Saha (CGM (F&A))

- Meeting with Mr B Duari (CGM (HR))

- Meeting with Mr G R Baruah (CGM (Hydro))

- Meeting with Mr Arjun K Das (CGM (Generation))

- Meeting with Mr SP Bhattacharjee (GM (Thermal))

- Meeting with Mr Pathak (GM (Civil Design))

- Meeting with Mr Atual Baruah (GM – o/o the CGM (Hydro))

- Meeting with Mr Jayantar Sharma (DGM – o/o CGM (Generation))

- Meeting with Mr Anil Barthakur (DGM – o/o CGM (Generation))

- Meeting with Mr Mukul Das (SM – o/o CGM (Generation), taken charge as DGM)

- Meeting with Mr P Mukherjee (DGM – o/o CGM (Hydro)

- Meeting with Mr Anil Saikia (DGM – Nodal Office for LKHEP)

When the plants were visited, meetings were held with all the DGM’s and SM’s present at the plant during the time of visit. The following is the list of the plants visited and the point of contact at each plant:

Plants:

- O/o GM (NTPS) - Meeting with Mr K Phatwali (GM (NTPS))

- O/o GM (KLHP) - Meeting with Mr Pradip K Datta (GM (KLHEP)

- O/o GM (LTPS) - Meeting with Mr Choudhary (SM (LWHRP) – LTPS)



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