INTERNSHIP TRAINING REPORT

A study conducted at

NATIONAL THERMAL POWER CORPORATION UNCHAHAR

Submitted to Bangalore University

In partial fulfillment of the requirement of the degree of

MASTER OF BUSINESS ADMINISTRATION

By (Rahul kumar singh) Reg No. 06CQCM6068 Under the guidance of Dr. Kalyani Rangarajan Professor &HOD DSCMIT

Dayananda Sagar College of Management & Information Technology Shavige Malleshwara Hills, Kumara swami layout Bangalore 560078.

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Dayananda Sagar College of Management & Information Technology, Bangalore 78 August - 2007 Certificate

This is to certify that internship training report has been submitted in the partial fulfillment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

To Bangalore University By Rahul kumar singh Under the guidance of Dr. Kalyani Rangarajan Professor &HOD, DSCMIT

Dr. Kalyani Rangarajan Head of department, MBA

Dr. T Rangarajan Director, MBA

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STUDENT DECLARATION

I hereby declare that the Internship Training Report submitted in partial fulfillment of the requirement of degree of Master Administration to Bangalore University Under the guidance and supervision of Dr. Kalyani Rangarajan professor & HOD, DSCMIT is my original work and not submitted for the award of any other Degree, Diploma, Fellowship or other similar title.

Place: Bangalore Date:

Rahul kumar singh REG. NO. O6CQCM6068

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FACULTY CERTIFICATE

This is to certify that the Internship Training Report at National Thermal Power Corporation Unchahar, is completed under my guidance and supervision. It is submitted in partial fulfillment of the requirement of degree of Master Administration to Bangalore University by Rahul kumar singh. And this has not formed a basis for the award of any other Degree, Diploma and Fellowship by any other institute or university.

Place: Bangalore Date:

Dr. Kalyani Rangarajan Professor & HOD, DSCMIT

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ACKNOWLEDGEMENT

First of all I pay my respect to the Chairman of Dayananda Sagar college of Management & Information Technology for offering this management studies facilities, which is not only benefiting us but also creating further opportunities for management studies in the country. I take this opportunity to thank Dr. T Rangarajan- Director, DSCMIT for his unflagging support, guidance and direction. I express my sincere gratitude to Dr. Kalyani Rangarajan, Head of Department MBA, DSCMIT, whose profound intellectual guidance, support and encouragement has acted as an inspiration in my endeavor. And under whose guidance, I have learned, relearned and unlearned views, ideas, values and knowledge and completed this internship training successfully. Finally, I would like to thank Mr. T. Mukherjee (Deputy General Manager), and Mr. Bimal Shah Officer (HR-ED) and all other organization members. Last but not the least I would wish to acknowledge my gratitude to those who provided me encouragement, assistance and guidance in various levels for overall completion of this work.

CHAPTER DSCMIT

PARTICULARS

PAGE
5

I.

INTRODUCTION
GENERAL INTRODUCTION OBJECTIVE OF THE STUDY INDUSTRIAL BACKGROUND

NO 10
11 12 13

II.

ORIGIN OF THE INDUSTRY GROWTH & DEVELOPMENT OF THE INDUSTRY PRESENT STATUS OF THE INDUSTRY BUSINESS ENVIRONMENT FUTURE OF INDUSTRY

PROFILE OF THE ORGANIZATION

PRESENT STATUS AND FUTURE VISION OF THE ORGANISATION

32

ORIGIN AND GROWTH OF ORGANISATION

ORGANISATION CHART SWOT ANALYSIS OF THE ORGANIZATION

III.

DETAILED STUDY OF THE DEPARTMENTS 47

FUNCTIONAL DEPARTMENT

CONTRACT DEPARTMENT PURCHASE DEPARTMENT STORES DEPARTMENT HUMAN RESOURCE DEPARTMENT FINANCE DEPARTMENT PRODUCTION DEPARTMENT

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IV. STUDY OF SPECIFIC MANAGEMENT PROBLEM 101 SPECIFIC MANAGEMENT PROBLEM SUGGESTION RECOMMENDATION V.

BIBILOGRAPHY

104

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LIST OF GRAPHS
Graph Number 1 2 3 4 5 6 7 8 9 10 11 Matter Installed capacity and Generation Power Generation 2006-07 Total capacity as on 31-03-07 Power Allocation Station Generation Station Turnover Station Gross Margin-(Profit) Station Profit/ Turnover (%) Stage I Power Generation Stage II Power Generation STATION POWER LOAD FACTOR (PLF) % Page Number 15 16 16 37 38 94 94 95 99 100 100

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LIST OF TABLES
Table Number Matter Page No.

1 2 3 4 5 6 7 8

An Overview of NTPC Coal Based Power Stations Gas/Liq. Fuel Based Power Stations Power Plants with Joint Ventures Projects under Implementation A Brief Profile of the Project Activities, Responsibility and Approving Authority Estimated value of indent

19 20 21 21 22 36 49 70

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CHAPTER-1

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GENERAL INTRODUCTION:
NTPC Limited is the largest thermal power generating company of India. A public sector company incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and others. Within a span of 30 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Based on 1998 data, carried out by Data monitor UK, NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilisation amongst the thermal utilities in the world. NTPC Limited is the largest thermal power generating company of India. A public sector company incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and others. Within a span of 30 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Based on 1998 data, carried out by Data monitor UK, NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilisation amongst the thermal utilities in the world.

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OBJECTIVES OF THE STUDY:

1. To have an overview of the organization, Its operation, its activities its working conditions and techniques used and applied in these all prevailing activities, the growth and development, present status, competition and challenges facing by the organization in the industry, the future trends in this backdrop. 2. To understand, The internal mechanism operation of the organization The working of the organizations various departments To focus on IR ( Information Resources ) requirements of the company To make a detailed report and study about the specific problems prevailing in the company, and our suggestions and conclusion relating to that of the growth of the concern

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INDUSTRIAL BACKGROUND AND ORIGIN OF INDUSTRY:

NTPC Limited come into being on 7th November 1975, through an amendment of India Electricity (Supply) Act, to supplement the efforts of the Indian states for quicker & greater capacity addition with the mandate for planning, promoting and organization an integrated development of thermal power (including associated transmission systems) in India to support the economy of the country. In a span of just over 23 years after commissioned of the first 200 MW unit at Singrauli in Feb 1982, NTPC has grown to become that largest power generation utility of India with a commissioned capacity of 24249 MW with 23 power station geographically spread over the length & breadth of India, covering coal and combined cycle power plants. The company has expanded its operations in the area of hydropower and is on the way for backward & forward integration in fuel, power transmission & distribution. In 1997 the department of Public Enterprises, Govt.of India granted Navratna status with power of operational authority to the board of NTPC. The objective was to turn the public sector enterprise into a global giant. This has helped NTPC in speedy implementation of power projects, absorption of new technologies & formation of joint ventures in the core generation as well as services businesses. NTPC limited has gone in for diversification initiatives beyond thermal power to move towards becoming an integrated power major.

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NTPC Limited has an aggressive capacity addition programme to become a 66,000 MW company by 2017 with a thrust on hydropower targeting about 8,000 MW hydro capacities. Integrated coal mining cum power project, induction of large size unit for future projects, new technologies etc are some of the drives already initiate.

An Overview

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a) Date incorporation b) Mode incorporation c) Administrative Ministry d) Details

of : November 7, 1975 of : Incorporated as a Government Company under the provisions of the Companies Act, 1956. : Ministry of Power, Government of India : The Govt. of India was holding the entire paidup share capital of the Company till October 2004. The Govt. of India disinvested 5.25% of its holding in the Company through Offer for Sale along with Initial Public Offering of 5.25% of the paid-up share capital by the Company in the year 2004-05. In the post-issue scenario, the holding of the Government of India is reduced from 100% to 89.5% of the paid-up equity share capital. : A Government Company within the meaning of Section 617 of the Companies Act, 1956.

of Disinvestments

e) Present status f) Share Capital

: Rs. 100,000.00 million i) Authorized ii) Subscribed, : Rs. 82,455 million issued up & paid-

GROWTH OF NTPC INSTALLED CAPACITY & GENERATION: DSCMIT

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Graph-1

INSTALLED CAPACITY
MW

GENERATION

30000 25000 20000 15000 10000 5000 0

19 86 19 8 7 87 19 8 8 88 19 8 9 90 19 9 1 91 19 9 2 92 19 9 3 93 19 9 4 94 19 9 5 95 19 9 6 96 19 9 7 97 19 9 8 98 19 9 9 99 20 0 0 00 20 0 1 01 20 0 2 02 20 0 3 03 20 0 4 04 20 0 5 05 20 0 6 06 -0 7
27,404 MW (as on 31.03.07)

PRESENT STATUS:
Graph-2

GENERATION 2006-07

NTPC

NTPC 188.67 Bus 28.50%

ALL INDIA

ALL INDIA 662.43 BUs DSCMIT TOTAL CAPICITY AS ON 31-03-2007

16

NTPC

Graph-3

NTPC 27,404 MW 20.18%

ALL ALL INDIA INDIA 662.43 BUs

ALL INDIA 130,539 MW

Business of the Company

NTPC has been established to carry out the objectives specified in the Memorandum & Articles of Association of the Company as amended from time to time. The main activities of NTPC are setting up of power plants and power generation through its coal-based and gas-based power plants. The Company has also diversified into construction of hydro power plants and generation of hydro power besides trading and distribution of electricity. The Company is now entering into area of coal mining & coal washries and oil exploration as well. The business portfolio of the company is as under:

i) Power Project Construction ii) Generation of Electric Power. iii) Coal Mining and Coal Washries. iv) Oil Exploration.

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v) Distribution, Trading of Electricity, Trading of Ash and other related products through its wholly-owned subsidiary companies. As on date the installed capacity of NTPC is ~25,000 MW through its 14 coal based (20,185 MW), 7 gas based (3,955 MW) and 3 Joint Venture Projects (314 MW). NT PC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW). NTPC is also managing Badarpur thermal power station (705 MW) of Government of India. As on December 31, 2005, the installed capacity of the company represented approximately 19.35% of India's total installed capacity, and contributed 27.1% of the total power generation of India during the April - Dec 2004-05. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector, NTPC is extending consultancy services to various organisations in the power business. NTPC is committed to the environment, generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. NTPC has undertaken massive afforestation in the vicinity of its plants. Plantations have increased forest area and reduced barren land. The massive afforestation by NTPC in and around its Ramagundam Power station (2100 MW) have contributed reducing the temperature in the areas by about 3c. NTPC has also taken proactive steps for ash utilisation. In 1991, it set up

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Ash Utilisation Division to manage efficient use of the ash produced at its coal stations. This quality of ash produced is ideal for use in cement, concrete, cellular concrete, building material. A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been established in NTPC with the assistance of United States Agency for International Development. (USAID). Cenpeep is efficiency oriented, eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India. As a responsible corporate citizen, NTPC is making constant efforts to improve the socio-economic status of the people affected by the projects. Through it's Rehabilitation and Resettlement programmes, the company endeavors to improve the overall socio-economic status of Project Affected Persons. NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under the 'Excellent category' (the best category) every year since the MOU system became operative. Recognizing its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector Navratnasa potential global giant.

AN OVERVIEW

Table-1

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Projects NTPC OWNED COAL GAS/LIQ. FUEL TOTAL OWNED BY JVCs Coal Gas/LIQ. FUEL GRAND TOTAL

No. of Projects

Commissioned Capacity (MW) 22,895 3,955 26,850 314* 740** 27,904

15 07 22 3 1 26

PROJECT PROFILE

Table-2

Coal Based Power Stations

Coal based 1. 2. 3. 4. 5. 6. 7. 8. Singrauli Korba Ramagundam Farakka Vindhyachal Rihand Kahalgaon NTCPP State Uttar Pradesh Chattisgarh Andhra Pradesh West Bengal Madhya Pradesh Uttar Pradesh Bihar Uttar Pradesh Commissioned Capacity (MW) 2,000 2,100 2,600 1,600 3,260 2,000 1,340 840

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9. 10. 11. 12. 13. 14. 15.

Talcher Kaniha Unchahar Talcher Thermal Simhadri Tanda Badarpur Sipat Total (Coal)

Orissa Uttar Pradesh Orissa Andhra Pradesh Uttar Pradesh Delhi Chattisgarh

3,000 1,050 460 1,000 440 705 500 22,895

Gas/Liq. Fuel Based Power Stations

Table-3

Gas based 16. 17. 18. 19. Anta Auraiya Kawas Dadri Rajiv Gandhi CCPP Kayamkulam

State Rajasthan Uttar Pradesh Gujarat Uttar Pradesh Gujarat Kerala

Commissioned Capacity (MW) 413 652 645 817 648 350

20. Jhanor-Gandhar 21.

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22.

Faridabad Total (Gas)

Haryana

430 3,955

Power Plants with Joint Ventures

Coal Based State Fuel Coal Coal Coal Naptha/LNG

Table-4

Commissioned Capacity (MW) 120 120 74 740 1054 27,904

23. Durgapur West Bengal 24. Rourkela 25. Bhilai 26. RGPPL Orissa Chhattisgarh Maharastra Total(JV)

Grand Total (Coal + Gas + JV)

Projects under Implementation

Table-5

Coal / Hydro Kahalgaon Stage II (Phase I) (Phase II)

State

Fuel

Additional Capacity Under Implementation (MW) 500 500 1980 500 1980 500

1. 2. 3. 4.

Bihar

Coal Coal Coal Coal

Sipat (Stage I) Chhattisgarh (Stage II) Barh Bihar Bhilai Chhattisgarh (Exp. Power Project-JV with

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SAIL) 5. 6. 7. 8. 9. 10. 11. Korba (Stage Chhattisgarh III) Farakka (Stage III) NCTPP (Stage II) Simhadri (Stage II) Koldam (HEPP) West Bengal Uttar Pradesh Andhra Pradesh Himachal Pradesh Coal Coal Coal Coal Hydro 500 500 980 1000 800 600 520 10,860

Loharinag Pala Uttarakhand Hydro (HEPP) Tapovan Vishnugad (HEPP) Uttarakhand Hydro

Total (Coal + Hydro)

MAJOR HIGHLIGHTS OF NTPC IN 2005-06 (Unaudited financial figures; as per press release dt 20.04.06)

he Company takes a new name NTPC Limited aligned to its new T business plans. The companys market capitalisation crosses Rs. One trillion (Rs. 1, 00,000 crore) and is one of the top three largest Indian companies in terms of

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market cap. A highest ever generation of 170.88 BUs during 2005-06 registering an increase of 7.40% over the generation of 159.11 BUs during 2004-05. With 19.51% [including capacities of Joint Ventures Companies] share of the total installed capacity of the nation, NTPC contributed 27.68 % electricity generated in the country during 2005-06. Coal Stations of NTPC achieved an operating availability of 89.91%. Coal stations of NTPC recorded a PLF of 87.54 %, which is the highest for any financial year since inception. The PLF during previous year was 87.51%. 100% realization for the third year in succession. Provisional and unaudited net sales of Rs. 259,928 million during the year 2005-06 as against Rs. 225,316 million for the year 2004-05. However, provisional and unaudited Gross Revenue is Rs. 286,473 million during 2005-06 as against Rs. 255,460 million for the year 2004-05. Provisional and unaudited Net profit after tax for the year 2005-06 is Rs. 57,061 million as compared to Rs.58,070 million during the year 2004-05. Total capacity added during the four years of Xth Plan period (2002-2006) increases to 4000 MW with another 500 MW getting added during the year 2005-06 taking the total capacity of the company to 24,249 MW (including

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capacities of Joint Venture Companies). Construction works on 9470 MW in progress. Further projects with capacity of 3720 MW under bidding process Ratnagiri Gas and Power Supply Pvt Ltd formed with NTPC having a stake of 28.33% for taking over and operating the Dabhol Power Project. The Government allots 7 more coal mining blocks to NTPC for captive use taking the total mines allotted to 8 with an expected output of 50 MT per annum. A consortium comprising of NTPC and two other members allotted an oil exploration block in Arunachal Pradesh Capital expenditure incurred in 2005-06 on capital schemes was Rs. 71,879 million compared to Rs. 53,603 million in 2004-05 Capital Outlay for 2006-07 set at Rs. 113,250 million A USD 1 Bn Medium Term Note program established. NTPC becomes the first Indian Corporate since 1997 to make a successful offering of 10 year Fixed Rate Note amounting to USD 300 million Standard & Poors have revised outlook on the rating of the company from stable to positive while affirming the BB+ issuer rating. An interim dividend of 20% for the financial year 2005-06 amounting to Rs. 16, 491 million.

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Government has assigned NTPC the consultant role to modernize and improve several plants across the country in the Partnership In Excellence program of the government Partnering the government in the Rajiv Gandhi Grameen Vidyutikaran Yojana. NTPC has also taken up Distribution Generation for rural electrification of remote villages through non-conventional energy sources. Simhadri project receives International Project Management award instituted by International Project Management Association [IPMA]. NTPC is the only Asian Company that has received this award. Ranked 3rd Great Place to work for in India by M/s Grow Talent and Business World 2005. NTPC has achieved all the targets to be rated Excellent during 2005 -06 for the nineteenth consecutive year since inception of the MOU system. GROSS REVENUE AND PROFIT Provisional and unaudited net sales of Rs. 259,928 million during the year 2005-06 as against Rs. 225,316 million for the year 2004-05. However, Provisional and unaudited Gross Revenue is Rs. 286,473 million during 2005-06 as against Rs. 255,460 million for the year 2004-05. Provisional and unaudited Net profit after tax for the year 2005-06 is Rs.57, 061 million as compared to Rs. 58,070 million during the year 2004-05.

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BUSINESS ENVIRONMENT:
Organizational Culture NTPC has successfully transformed the working culture of employees who were under electricity boards to adopt a culture of Quality, Safety and Ecofriendly generation and providing healthy and stimulating environment after takeover. ISO certification for Quality system, Environment management, Occupation Health and Safety, health services, work place management and social accountability are some of the milestones achieved during our journey on the TQM front towards achieving overall goal of excellence in business. Technology, Equipment & Facilities NTPC operation & maintenance systems including planning and monitoring activities equipped with proven and latest technology equipments supported by a strong team of corporate R&D, OS and CENPEEP are the main features which have contributed to the turn around of Unchahar. To support its inhouse maintenance function many facilities have been developed like electrical and C&I labs, Electrical and mechanical workshops where the repairing and maintenance of plant equipments are carried out with quality. For comprehensive maintenance and operation skills many executive have been tried at CEGB, UK and at our Simulator training centre at Korba.

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Organization Structure & Leadership NTPCs current three-tier structure comprises corporate center (CC), Regional Headquarters and Stations/ Projects. Unchahar is one of the stations and comes under Northern Reason. NTPC is a large organization formulation of all major policies and strategies are done at CC level so as to uniformly manage and integrate operation all across the organization. CC has a systematic approach to consultation and feedback with all RHQs and stations/units. The GM is fully accountable for all business operations of the power station. Operational freedom is available to HODs sectional heads to take appropriate decisions on conduct of their routine work and function specific initiatives. The delegation of powers further strengthens the organizational management system. Planning, review and assessment is facilitated at difference levels. Regulatory/Statutory Environment All the activities and business conducted at Unchahar complies with statutes and law of the land. Applicable laws are part of ISO 9001:2000, ISO 14001:2004, OHSAS 18001:1999 and SA 8000:2001 systems. The compliances are not limited to those specified by the law but are even exceeding the requirement in consonance with the NTPC corporate philosophy and good Engineering Practices. NTPC has always kept valid clearances, licenses with respect to the applicable statutory and legal requirements. Comprehensive rehabilitation action plan derived from the R&R policy of the government of India was developed at Unchahar with the state and the project affected villages with overall development of these

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villages as focus areas. DMP of Unchahar has been revised periodically and the safety drills are being conducted regularly. Relationships with Suppliers Coal, water, fuel oil and spares are the most critical inputs for the power plants. NTPC have the systems, structures and processes to manage value creating long term relationship with IOC, CCL, BCCL, and BHEL. Vender development is an on going process. They work with partnership spirit with their venders, suppliers and service providers and take their feed back for self-improvement. They work closely with BHEL keeping in mind their focus on issues of technology, safety and environment. NTPCs IT system and various tools help them to manage their materials, hospitals, contracts, finance, and HR and O&M activities. E-procurement is a new initiative for faster and wider coverage for procurement

Business Challenges Despite significant reforms since 1991-92, the power sector in India is ridden with a host of problems, and hence reform is a key priority area, given the sectors impact on countrys economics. The poor financial health of SEBs (customer and competitors as well) has been a dragging force disabling power sector to evolve and mature. Absence of fully integrated national power grid is another major constraint for the power sector, and does not offer optimized opportunities to better performing power plants. The recently pronounced Electricity Act 2003 is a good government intervention but still a lot is desired. NTPC has been working very closely with various constituents of the power

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sector, e.g. MOP, MOF, CEA, SEBs, Regulators, etc, to rejuvenate the health and maturity of power sector in India. Unchahar has been involved in several initiatives of NTPC for the betterment of power sector and the better relationship with the stakeholders. NTPC has well established systems for performance review and improvement ,which is implemented and deployed at Unchahar .There are two fountainhead systems that set, drive, measure and improve performance at corporate level, regional level, station level, department level and individual level: (1) MOU, and (2) recently introduced PMS. Organizational improvement studies are carried out from time to time through partnership with renowned consultants like Dr.Athreya, IIM, AT Kearney, etc. to carry out strategic improvements. For last 2 years the whole organization is involved in Organizational Transformation (project DISHA) in association with AT Kearney. CIIs Business Excellence model is being used since 2003. Perception measures of stakeholders and measurement of internal performance metrics and process results are taken in to consideration to improve policy, strategy, systems and processes. Process orientation has been further reinforced by having ISO systems for quality, environment and safety. Since long we have been following a system of structured forums-e.g. , ORT, SMC, RMC, MC, etc.- for review, planning and programmes is etc. improvement. Total quality movement has accelerated the journey of improvement. Peoples involvement in improvement Departmental council Meetings, POGs, 5S refelected by their participation in PC, QC, Suggestion schemes, implementation, Benchmarking, six sigma, Kaizen, Balanced Score Card are being utilized to bring in business improvements. People from all cadre and functions are

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committed to building Unchahar as an excellent organization and role model among NTPC stations.

FUTURE OF INDUSTRY:
A world class integrated power major, powering Indias growth, with increasing global presence.

NTPC Mission

DEVELOP PRODUCTS

AND AND

PROVIDE SERVICES

RELIABLE AT

POWER,

RELATED PRICES,

COMPETITIVE

INTEGRATING MULTIPLE ENERGY SOURCES WITH INNOVATIVE AND ECO - FRIENDLY TECHNOLOGIES AND CONTRIBUTE TO SOCIETY

Make available reliable and quality power in increasingly large quantities

at competitive price and ensure timely realization of revenues.

Adopt a broad based capacity portfolio including hydropower, LNG,

nuclear power, and non- conventional & eco-friendly fuels.

Plan and speedily implement power projects using state-of-the-art

technologies.

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 Be an integrated utility by implementing strategic diversification in areas

such as power trading, distribution, transmission, coal mining, coal beneficiation etc.
Develop a strong portfolio of profitable businesses in overseas markets

including technical services, generation assets etc.

Continuously attract and develop competent and committed human

resources to match world standards.

Lead fundamental and applied research for adoption of state-of-the-art

technologies, breakthrough efficiency improvements and new fuels.

Lead development efforts in the Indian power sector including assisting

state utility reform, policy advocacy etc.

Be a socially responsible corporate entity with thrust on environment

protection, ash utilization, community development, and energy conservation.

NTPC Core Values Business Ethics Customer Focus Organizational and Professional Pride Mutual Respect and Trust Innovation and Speed Total Quality

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CHAPTER-2

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INTRODUCTION AND BACKGROUND OF NTPC UNCHAHAR ORIGIN AND GROWTH:

Unchahar Stations foundation stone was laid by Late Prime Minister Mrs. Indira Gandhi in June 1981 for five units of 210 MW Its first and second units of 210 MW capacity each were commissioned in 1988 & 1989 respectively during Uttar Pradesh Rajya Vidvut Utpadan Nigam (UPRVUN) period.

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The plant performance was for below the expected level of the stakeholders whereas the performance level of NTPC owned contemporary station was much above the national average instilling confidence amongst the customers in general and sector players in particular regarding the companys ability and capability to deliver the desired results. Under such scenario in 1992, NTPC was entrusted with the responsibility of transforming Unchahar from low performing station to bring at par with NTPCs station. Thus it become the first take over station for NTPC with a challenge to bring about performance turn around. The installed capacity of the station which was 2 x 210 MW at the time of take over has been doubled by adding two more units of 210 MW capacity each in 1999 & 2000. One more unit of 210 MW is added in 2006. The operational performance level which was 18% Plant load factor with 27% availability at the time of takeover was significantly improved using de-bottlenecking techniques. Plant load factor went up to 35.5% in first six month and 73.7% in twelve months. Corresponding Availability Factor improvement was 49.5% and 79.5% respectively. Further within a span of four years after takeover the yearly Availability& PLF level of 2 x 210 MW units was improved to 94% & 84% respectively. This outstanding performance of the station was achieved by supplementing key operational areas with well trained personnel drawn from NTPC owned station and bringing about work culture change amongst the employees taken over from previous management.

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Consolidating on the above and with addition of 2 x 210 MW units, the operational performance level of 4 x 210 MW station was further improved, through concerted efforts by dedicated team, training & development of employees, introduction of NTPCs system on operation and maintenance, adoption of latest available technologies. The station continuously improved its ranking year after year and has now attained 1st position in NTPC and 3rd in the country during current financial year 2005-06 with a PLF of 95.69%. The plant has risen from rock bottom performance levels to countrys top performing station while operating in regulatory regime and using wide variety of coal having an ash content around 40%, received from more then 30 sources. Safe handling and environment friendly disposal of approximately 6,000 MT of ash generated on daily basis itself was a big challenge. The conventional wet ash disposal system was partly converted to dry fly ash system to facilitate its utilization. Further the system was augmented to facilitate and achieve 100% ash utilization. A BRIEF PROFILE OF THE PROJECT
Table-6

Location Approach

In Unchahar Tehisl, Raebareli District PIN229406 On Lucknow Allahabad State Highway 120 Km from Lucknow, 85 Km from Allahabad and 35 Km from Raebareli.

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Land Area Approved Capacity Installed Capacity Coal Source Fuel requirement Water Source

For Stage-I 1953 Acres including township. For Stage-II 250.7 Acres 1050 MW Stage I & II : 840 MW (2 x 210 + 2 x 210 MW) Stage III :210 MW (1 x 210 MW) CCL, BCCL, ECL Coal Mines approx 700 Km fro the station Around 14,000 MT per day Sharda Sahayak Canal (Main Source), Dalmau Pump canal during shutdown of Sharda Sahayak Canal Stage I & II : Rs 2337.09 Crores Stage III : Rs 938.61 Crores Unit I : 210 MW November 1988 Unit II: 210 MW March 1989 Unit III:210 MW January 1999 Unit IV : 210 MW October 1999 Unit V : 210 MW September 2006 Double circuit 220 KV lines to Lucknow (UPPCL), two double circuit line to Kanpur (PGCIL)

Approved Cost Unit Commissioned

Power Evacuation

PRESENT STATUS AND FUTURE VISION OF THE ORGANISATION:

Graph-4

Power Allocation

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Unallocated J&K Haryana H.P. Chandigarh Uttranchal U.P. Punjab Delhi Rajasthan
Graph-5

Station Generation
8000 7000 6000 5000

MU

4000 3000 2000 1000 0

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Financial year

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Unchahars turn around has been wonderfully brought out in the book India 2020- A Vision for the New Millennium by none other then first man of our country, president A.P.J. Abdul Kalam. The contents are as given. Let us not overlook successes even in this gloomy situation. Unchahar thermal power station was acquired by NTPC from government of Utter Pradesh. Performance was improved dramatically by using de-bottlenecking techniques. Prior to the take over the Unchahar station had a PLF of 18%; in six months thereafter it went up to 35.5% and in the twelve months to 73.7% ! The availability factor which was 27% at the time of takeover, went up to 49.5% six months later and about 79.5% after 12 months. Specific oil consumption, which is an indicative of wastage and inefficiency of operation, which was at 21.8 milli litres (ml) per Kilowatt hour (KWh) at the time of takeover went down to 6.3 ml/KWh in 12 months. These dramatic result have been obtained under ordinary or even oppressive circumstances, and despite the absence of recognition by the system. While a days power breakdown or an audit report on delay or excessive project costs hits headlines, nobody even brothers to mention these achievements in a small column of a newspaper. Nor even is such achievement talked about by politicians or bureaucrats ! We dont know who are the heroes & heroines who made these achievements possible through teamwork !

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ORGANISATION CHART OF NTPC-UNCHAHAR GM

AGM (Projects) CMO (O&M) AGM(Commg) AGM

DGM (FM) DGM (EEME)

DGM (EED) DGM (T/S Adm) DGM (Mech E)

DGM (HR) DGM (F&A) DGM (C&M)

SR MGR
(Safety)

DGK (TS) DGM (EMD) DGM (FES) DGM (MTP) DGM (TQM) Dy Mgr (Vig) DGM (AMG) DGM (FQA)

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SWOT Analysis

STRENGTHS:
Govt. of India granted Navratna status with power of operational authority to the board of NTPC. NTPC has achieved all the targets to be rated Excellent during 2005 -06 for the nineteenth consecutive year since inception of the MOU system. Ranked 3rd Great Place to work for in India by M/s Grow Talent and Business World 2005.

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 A part of ISO 9001:2000, ISO 14001:2004, OHSAS 18001:1999 and SA 8000:2001 systems. NTPC stations having achieved a PLF of 92.15% in the year 20042005. A "Centre for Power Efficiency and Environment Protection has been established in NTPC with the assistance of United States Agency for International Development. (USAID).

NTPC is committed to the environment, generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants.

Based on 1998 data, carried out by Datamonitor UK, NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilisation amongst the thermal utilities in the world.

WEAKNESS:

Railway has limitation of carrying goods. Limited sources.

Too much distance between mines and Plants. Monopoly of suppliers.

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OPPORTUNITY:
There is high demand for electricity so there is good opportunity to growth. Growing different power generation areas. Improvements of technology.

THREATS:
Cyclical & Rising Furnace Oil Prices. Process orientation has been further reinforced by having ISO systems for quality, environment and safety.

In area of power generation other competitors may affect the generation of NTPC.

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AWARDS AND ACCOLADES OF NTPC FGUTPP

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 FGUTPP rated 5th best power station in the country in the FY 2001-

2002. FGUTPP has won silver medal under Meritorious Productivity Scheme of GOI for the years 1997-98 & 1998-99 consecutively.
Control Point quality circle stood first in the Northern Region QC

Competition organized by Confederation of Indian Industries (CII) at Lucknow on 23rd Sept. 2000.
Adjudged best in Cultural programme in Kanpur chapter convention

of quality circle organized by Quality Circle Forum of India (QCFI) at Kanpur during 26th 28th Sept. 2000.
Stood 2nd in National Convention of Quality Circles of NTPC Farakka

during Jun 2001.

Awarded 1st prize in slogan competition and meritorious award in QC

presentation at National Convention of Quality Circles held at Hyderabad from 20-22 Dec. 2001. Awarded the first prize of prestigious National Award of Environment & Ash Utilization for Thermal Centenary Celebration 1999 (under 700 MW category) by Ministry of Environment and Forests. Won the Safety award from British Safety Council for two consecutive years (1998-1999). FGUTPP received second best for Industrial Relation (IR) Award for two consecutive years i.e. 1999-2000 & 2000-2001. Two children from FGUTPP won Bal Shree award for the year 2000 & 2002. The award was presented by President of India at Rastrapati Bhawan.
Ayurmanch from hospital won 2nd place in national professional

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competition held at PMI on 19th Dec. 2001. Shram Shakti quality circle stood first in NTPC Northern Region Convention held at Singrauli in Jan. 2002. Construction work of Unit #4 completed without any reportable accident. Awarded with ISO 9001:2000, ISO 14001:1996 & OHSAS 18001:1999 certificates for its Quality Management, Environment Management and Occupational Health and Safety Management systems. Winner Shield for the best performance in protection of environment and ash utilization for 2001-2002. GOI Productivity Awards in the field of Fuel Oil Consumption in 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000. GOI Productivity Awards in the field of Auxiliary power consumption in 1992, 1995, 1997, 1999. Certification of 5S in Dec. 2003. Certificate from District Magistrate for employment of Handicapped. Gold Medal for Peak-Hour Generation in FY 2001-2002. Silver Medal for Peak Hour Generation in FY 1997-1998-99 and 2002-2003.
FGUTPP rated 9th best power station in the country in the FY 1999-

2000 & 2000-2001. Received Golden Globe Award (2003-2004) for Industrial Relations Green Tech Safety Gold Award for 2004-2005.

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CHAPTER-3

Detail Study of the departments

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CONTRACT

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An agreement between two or more competent parties in which an offers is made and accepted, and each party benefits. The agreement can be formal, informal or written. Some contracts are required to be in writing in order to be enforced. In NTPC 50% work are done by contract basis Contract functions in NTPC Projects/Station can be classified into two broad categories i.e. Pre- award Activities Post-award Activities This Pre-Award Contracts covers various activities starting from conceptualizing and preparation of the indent to award of Contract. The basic framework is provided by the Delegation of Power and Work & Procurement Policy of NTPC. The main activities relating to pre-award function along with the responsibility centre and the approving authority have been identified as detailed hereunder and a few of these described in detail thereafter.
Table-7

SN 1.

MAIN ACTIVITIES Technical Approval & Administrative approval of Cost Estimate

RESPONSIBILITY Indentor / Tech. Services

APPROVING AUTHORITY Competent Authority (C.A.) as per Delegation of power Finance

2.

Budget Certification

Indentor / Tech. Services

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3.

Mode of Tendering

Contracts

C.A. as per D.O.P.

4.

Qualifying Requirement (QR)

Indentor / Tech. Services (ruted through QR Committee) Indentor / Tech. Services Contracts (Technical Specification to be provided by the indentor) Contracts

GM (Project)/ HOP/HOS

5.

Preparation of Technical Specification, drawing & Scope of work Preparation of Tender document

C.A. as per D.O.P. C.A. as per D.O.P

6.

7. 8. 9.

Issue of Notice Inviting Tender (NIT) Constitution of Committee (T.C.) Opening of tender

C.A. as per D.O.P As per D.O.P.

Tender Contracts Contracts (presence of an executive from Finance deptt. is also required during opening pf the tender) Indentor / Tech. Services

10.

Technical evaluation (if required)

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11.

Preparation of Comparative Statement (CS) Co- ordinating T.C. Meeting Commercial evaluation by T.C. Preparation of evaluation

Contract to be vetted by Finance Contracts on behalf of the Committee Contracts T.C. As per D.O.P. As per D.O.P. Signing Authority as per DOP As per DOP

12. 13. 14. 15. 16.

report and its approval Pre- award discussion and T.C. approval of resolution Award of Contract and Issue of Letter of Award (LOC) Signing of Agreement Contracts to be vetted by Finance Contracts to be vetted by Legal deptt.

17.

TECHNICAL APPROVAL Requirements are firmed up by the indenting department. Requirement should be detailed and specific. Approval of the Competent Authority is obtained as per DOP by the indenting Department, for technical requirements. COST ESTIMATE The cost estimate of a package should be as realistic as possible. Generally the cost estimate will be prepared based on the CPWD, Delhi Schedule of

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Rates (DSR) for civil works and Schedule of Rates (SOR) for electrical works. MODE OF TENDERING Section of agency for the purpose of execution of work should be done on the basis of competitive bidding. For the purpose of Tendering, the following shall be kept in mind : The option of bidding could be through Open Tender or Single Tender basis. While choosing the mode of tendering, reasons/justification for selection of the particular mode should be recorded while obtaining the approval of the Competent Authority. Estimated cost of the work to be indicated in the Notice Inviting Tender (NIT) will be 90% of its approved cost estimate. Earnest money deposit (EMD) and the cost of tender documents shall be as per the guidelines issued by Corporate Contracts from time to time.

OPEN TENDER Open tender will be resorted to for high value packages in line with provision of D.O.P. Abridged version of Notice Inviting Tender (NIT) shall be published in Newspapers on all India coverage basis and detailed NIT shall be published on NTPCs website and other free private website. Such NIT will have provisions for appropriate Qualifying Requirements (QR) depending on the value and nature of job. It is important to ensure that the terms and conditions stipulated in NIT or not. (Normally for indent value of Rs 5 lacs and as per DOP guidelines issued from time to time)

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LIMITED TENDER By invitation to sources already registered with NTPC or having proven performance in past or any reference document as per Work and Procurement policy. Whenever the estimated cost of the package does not warrant / justify action for open tender, as provided in the DOP, Limited tendering will be resorted to. For the purpose of Limited Tender, selection of parties should be done carefully and in a transparent manner. (for Indent value normally below Rs. 5 lacs and as per DOP guidelines issued from time to time.) SINGLE TENDER The mode of Single tender should generally be avoided except in case of items of proprietary nature, extreme urgency and uncommon nature of work calling for specific skill and experties etc. Finalization of rates in case of single tender is to be done very carefully since there may not be any supporting offers / basis available for verification/ justification of the quoted price. Therefore it is important that the responsibility of the price are ensured before awarding the contract. Responsibility can be ascertained by comparing with the ordered price of any other unit of NTPC or other public sector/Govt. Agency. TENDER DOCUMENT In case of open tendering the order document shall, interalia, contain the following : Reference to detailed specification and drawing wherever necessary.

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 Qualifying requirements carefully designed to permit entry only to

tenderers who posses the technical, financial and managerial capability to perform and the same will be finalised by committee.
Reference to General Purpose Condition (PC) applicable to the

transaction.
Special terms and conditions (if necessary). Quantity schedule. Delivery period. Instruction to bidders. Proforma and guideline s for submission of EMD in the form of BG.

In case of single and limited tendering where tender enquiry is required to be used regularly to registered vendor or vendors having proven performance in the past, qualifying requirements and general purchase condition may not required to be included in each of the invitations to the tender. Document as mention above shall however from part of tender document in each case of open tendering.

TENDER COMMITTEE As per Delegation of power beyond certain value of procurement a tender committee consisting of representatives of indenting Deptt. and finance Deptt. needs to be formed to finalised recommendation of the procurement action witch may be approved by competent authority.

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Tender Committee may be constituted by members from the group which is raising the indent, dealing officer in Materials department at appropriate rank and the corresponding officer in the Finance Concurrence Group for all cases exceeding the ceiling limit as per DOP. The TC should consider and recommend all the terms and condition, prices, QAP and inspection procedures, phasing delivery, if any required. QUALIFYING REQUIREMENT The Qualifying requirement (Q.R.) is required for open tender only. Q.R. is to be prepared on case to case basis depending on various factors like Cost of the Package, Technical Importance. Time Frame for implementation and Quality Plan requirement etc. The primary purpose of Q.R. is to asses the Financial & Technical Capability of the bidders who can deliver the Goods/services as per the requirement. For Qualifying Requirement Q.R. of a package, a committee will be constituted at projects/station with representative of site Materials. Finance and Indenting departments at appropriate level. The Q.R. will be approved by the Head of project / station or the award approving authority of the package whichever is of lower level. However for functional convenience project / station may consider a standing Q.R. committee. Q.R. once stipulated in the NIT cannot be altered / relaxed. In case of poor response against a stipulated Q.R., the Q.R. committee may review the same and revise for the purpose of re-floating the tender. PREPARATION OF TENDER DOCUMENT

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Completeness of tender documents make the task of tender preparation, evaluation and award much easier. It also helps smooth execution of the work by eliminating the possibility of disputes/ differences arising out of conflicting interpretation of conditions. The important areas, which are to be taken care of while preparing the tender document, are as follows : SCOPE OF WORK SPECIFICATION TERMS AND CONDITION CHEQUE POINTS FOR THE PREPARATION OF TENDER DOCUMENTS
Following specific instructions are to be included in the Tender

document :
Language of Bid in English. Instruction for Bid security (Relaxation, wherever applicable, to be

mentioned).
Instruction for bidder qualification (QR), wherever applicable. P.F. code number prom RPF commissioner. Instruction for recording the deviation/ exception. Specific mention

for unacceptable deviation that will make the offer non responsive. Mobilisation details, wherever required. Quality plan, wherever required.
Wok programme. Bid validity. Correction of arithmetical errors.

Evaluation criteria.

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 The bound signing of contract agreement. Performance gurantees.

NOTICE INVITING TENDERS (NIT) In case of open tenders where NITs are issued, the detailed NIT on websites should contain the following information :
1. Corporate signature 2. Project name & location 3. Mode of Tendering 4. Formal Invitation (NIT no. & Date) 5. Brief scope of work 6. Details of sale of tender Document, Bid submission & Bid opening 7. Cost of Tender Document 8. Value and mode of Bid Security 9. Specific Qualification Requirement 10. Any specific requirement 11. Address for Communication

BID OPENING Tender will be opened on the due date and time indicated in the tender enquiry, in the presence of authorised representative with proper authorisation of the tenderers, if they wish to present themselves. The tenders will be opened by purchase and finance executive nominated by respective HODs. When the tenders are opened the name of all present tenderers would be read out for the benefit of the tenders present and the quoted rates of each tenderers will also be read out. Any omission or

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irregularity such as absence of signature of a tenderers, absence of earnest money deposit, references etc. may be pointed out on the spot for the information of the tenderers. All the tenders opened will be entered giving details as under :
Name of the work. NIT no. and date. Bid opening date and time. Names of the parties who have submitted the offers. Details of EMD. Name & Signature of the bidders representatives attending. Signature of the NTPC- members opening the Tender.

BID EVALUATION Bid evaluation should be carried out strictly in line with the evaluation criteria mentioned in the tender document. All technical and commercial conditions, deviations taken by the bidder and entered in the standard deviation statement should be cost compensated by the cost of withdrawal mentioned by the bidder therein. However for case where deviation alone has been mentioned in the statement without giving the cost of withdrawal, the financial implication of the Deviation should be estimated in a fair and reasonable manner for the purpose of cost compensation during the evaluation. EVALUATION REPORT Based on the technical and commercial evaluation of the tenders, the tender committee will put up a final evaluation report for approval of the

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Competent Authority. The evaluation repot should generally include the following details alongwith the detailed evaluation :
1. Name of the package. 2. Brief Scope of Work 3. Cost estimate 4. Invitation to Bid 5. Preliminary evaluation

COMPARISON OF THE EVALUATION BID Comparison of the evaluated lowest (L1) technically and commercially responsive/ acceptable bidder with respect to the approved cost estimate and reasonability of the offer is to be mentioned. Apart from reasonability of the total tendered amount, any abnormal variations in the rates of particular item/items are also to be deliberated. APPROVEL FOR PLACEMENT OF AWARD Tender committee shall put up a proposal for approval of the Resolution reached with the successful bidder to the Competent Authority

PLACEMENT OF AWARD Draft latter of Award shall be prepared by Contract in the line with guidelines issued from time to time in this regard, specially highlighting the post bid resolutions.

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Draft latter of award shall be vetted by Contracts and Finance for the correctness of the contents of the latter of Awrd. Latter of Award shall be signed and issued in duplicate by the Contract Executive authorized as per DOP.

ACCEPTANCE OF LETTER OF AWARD Contract Deppt. Should obtain the duplicate copy of Latter of Award duly signed by authorised representative of contractor on each page, as a token of acknowledgement, unequivocal acceptance and confirmation of the Latter of Award, within 15 days of issuance of LOA. VENDOR REGISTRATION For the purpose of vendor registration, Abridged Notice Inviting application from prospective vendor to be published in the leading newspapers on all India basis and detailed notice to be hosted on the website of NTPC and some other free private website as per Corporate Contracts and subsequent amendment/ instruction issued from time to time. Application will be invited for different categories of vendors depending on value and nature of job.

LATE AND DELAYED TENDER Late tenders are those which have been posted on or after the due date and received subsequently. Tenders received through couriers after the bid opening time and date shall be treated as late tenders. Delayed tenders are

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those which have been posted before the due date but received after the bid closing time and date. Delayed tenders received through Regd. Post / Speed Post which clear postal stamp showing date of posting as before the tender opening date and received within 6(six) working days of bid due date, may be opened and considered with the approval of competent authority. In case of decision on the tender has been taken earlier to six working days, they shall not be opened. Delayed tenders, without superscription of tender enquiry No. and due date will naturally be opened in normal course. In advertently such tenders and offers received in open condition may be returned to the venders immediately by the concerned executive with the approval of HOD (M&CS).

NEGOTIATION Negotiation should not be normally undertaken wherever adequate competition exists. However, if it is found that the price are unreasonably high / low as compared to the last purchase price / estimate or in case of some technical / commercial clarification, negotiation can be done with the approval of competent authority as per DOP. Normally negotiation should be held with technically and commercially evaluated lowest (L1) vendor only.

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EARNEST MONEY & SECURITY DEPOSITE For enlistment / registration of supplier the cost of documents (Application form) and registration fees as prescribed shall be applicable. In addition Refundable Security Deposit of Rs. 10,000/- will be furnished by the vendors on being registered. While sending enquiry to the parties, Earnest money may not be insisted in case of limited tender / single tender, for packages of estimated value up to Rs. 2.0 lacs after taking appropriate actions in line with Corporate Materials Circular and its amendment issued from time to time. For Limited Tender & Single Tender case above Rs. 2.0 lacs, EMD may be asked for depending on the merit of the case. ERNEST MONEY DEPOSIT WILL BE REGULATED AS FOLLOWS : Estimated value Up to Rs, 500 lacs Above Rs. 500 lacs EMD Money - 2% estimated value -1% subject to minimum of Rs. 10 lacs

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Purchase is divided into three partsI. Indent II. Enquiry

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III. Purchase order INDENT: For the purpose of indenting materials planning is to be done on the basis of following groups: 1. Stock items(Automatic Recoupment items)(AR) 2. insurance items(I) 3. Unit replacement items(UR) 4. Capital items(P) 5. Other non-stock items(O) ABC classification of items: ABC analysis is a technique by which selective control can be exercised on all Materials Management activities. A-class items: Items having annual consumption over Rs 1 lakh B-class items: Items having annual consumption over Rs 10,000 & up to Rs 1 lakh C-class items: Items having annual consumption up to Rs 10,000

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Mode of indenting: 1. For A class items of spares in nature, indenting shall be done equipment wise. However for A class consumables, the same may be clubbed for similar type of items. For B & C class items, indenting shall be done on the basis of main group. Each indent should contain items of same main group. 2. The indent as per described format should be completed in all respects with the following informations.
a) Description of item should contained detailed

specifications which should include the relevant IS/BS standard or any other acceptable standard drawing details etc. so that calling of sample may be avoided as far as possible.
b) Quantities to be intended item wise shall depend on past

consumption, anticipated consumption in future, nature of item including shelf life & classification of items as above.
c) Estimated value of the indent should be as far as practicable.

Basis of estimates should be either on last purchase price with escalation if any or market trend or on the basis of technical specifications e.g. Size, weight etc.
d) Indent should be raised only when the budget is allocated for

that section/group. In case of extreme urgency and when the

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budget is not allocated the same can be raised with the written approval of head of project & same will be got certified by finance budget section before placement of purchase order.
e) Approval of indents to be done as per existing delegation of

power issued from time to time & in accordance with the provision of works & procurement policy. f) Scrutiny of indents by purchase Before registration of indents, purchase section shall scrutinize the indents with regard to various points e.g. completeness of specification, realistic delivery period, proprietary article/standardization certificate, approval of competent authority or any other deficiencies in the drawing etc. requiring clarification in the absence of which procurement is not possible. g) Registration of indents The indent will be registered in purchase section through computer & 6 digit no. shall be given. h) Regulation of indents by stores All indents shall be forwarded by the indenter to stores (MPIC group) for achieving the following objectives.

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I. Verification of adequacy of material specifications/quality plan/inspection procedure. II. Stock availability & expected deliveries if any. III. Substitution of near identical material for the indented item, if available. IV. Review of quantity of item if required to achieve economic/optimum procurement. V. Correctness of the data furnished in the indent which is essentially required for a tender finalization without resorting to another reference after tenders are open. ENQUIRYMODE OF TENDERING1. Open Tender: In this the advertisements are given in newspapers and also on the website of the company. So the interested parties can send an intent letter to the company after reading this advertisement. This is usually given for indent value of Rs 5 lacs or more. 2. Limited Tender:

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In this the parties which are already registered with NTPC or in past have proved themselves are invited. This is usually given for indent value less than Rs 5 lacs. 3. Single Tender: In this there is only a single party. The party may be OEM/OES or the tender is provided if there is urgency. Selection of modes of tendering: The mode of tendering shall be selected based on: a) Total estimated cost of the purchase to be made. b) Type of materials. c) No. of proven parties known & available. d) Urgency of requirement. Tender documents: In case of open tendering, the tender documents shall contain the following: a) b) Reference to detailed specification and drawing wherever necessary. Qualifying requirements carefully designed to permit entry only to tenderers who possesses the technical, financial and managerial capability to perform and same will be finalized by the committee.

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c) d) e) f) g)

Reference to General Purchase Condition (GPC) applicable to the transaction. Special terms and conditions (if necessary). Quantity Schedule. Delivery period. Instruction to bidders.

Qualifying Requirement: The qualifying requirement (Q.R.) is required for open tenders only. Q.R. is prepared on case to case basis depending on various factors like cost of the package, Technical importance, time frame for implementation and quality plan requirement etc. The primary purpose of Q.R. is to assess the financial and technical capability of the bidders who can deliver the goods/services as per requirement. For the purpose of formulating Q.R. of a package, a committee will be constituted at projects/stations with representatives of site materials, Finance and indenting departments at appropriate level. While preparing the Q.R. it is to be ensured that the Q.R. does not become too stringent leading to poor or no response. It is therefore necessary to indicate the no. of parties likely to meet the Q.R. being proposed for a particular package. Cost of tender documents:

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In case of open tender the tender documents fee shall be decided on the basis of estimated value of the indent before going for advertisement. Accordingly same shall be fixed as per the following guidelines:

Table-8

S.I. No. 1. 2. 3. 4. 5. 6.

Estimated value of indent Upto Rs. 10 lacs Above Rs. 10 lacs & upto Rs. 25 lacs Above Rs. 25 lacs & upto Rs. 50 lacs Above Rs. 50 lacs & upto Rs. 100 lacs Above Rs. 100 lacs & upto Rs. 500 lacs Above Rs. 500 lacs

Cost of tender documents Rs. 200/Rs. 300/Rs. 500/Rs. 750/Rs. 1500/Rs. 3000/-

Tender opening: Tenders will be opened on due date and time indicated in the enquiry, in the presence of authorized representative with proper authorization of tenderers, if they wish to present themselves. The tenders will be opened by purchase and finance executives nominated by respective HODs. When the tenders are opened the name of all present tenders would be read out for the benefit of the tenderes present and the quoted rates of each tender will be read out. In case of difference in the rates quoted in figures and words, the amount in words shall prevail.

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The bid opening date as notified to the bidders through enquiry should be strictly adhered to. However, in case of unforeseen circumstances or due to administrative reasons the bids are not opened on the due date. The same shall be opened on the next working day at the same time without any further approval. In case of holidays the bids received up to the time of closing of bids on the next working day shall be considered for opening. PURCHASE ORDER: After then tender is awarded the purchase order is generated and all the required items are purchased.

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FUNCTIONS OF STORES WING

1. The Site Materials Management function ensures adequate and timely

supply of materials at right price to the contractor for smooth execution of power projects and to operating departments for smooth

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running of the power plants. The major tasks performed by Stores Wing forming a part of the materials management function are as follow:
2. To arrange clearance, receive, inspect / arrange inspection, accept,

arrange payment and store materials.

3. To systematically issue the materials for construction, erection, and

operations etc.
4. To maintain uptodate records on procurement, issue and stocks. 5. To maintain continuing and sustained liaison with the Purchase Wing,

Finance, Indenting Department, suppliers and streamline the optimum and smooth flow of materials by transporters for speedy release of payments and expediting settlement of rejection, disputes etc. that arise from time to time regarding materials supply.
6. To plan and arrange preservation, storage and requisite materials

handling facilities.
7. To procure insurance policies for various assets of the organisation,

covering various risks as per the policy, prefer claims for losses and pursue settlement.
8. To identify surplus and obsolete materials at the earliest and scrap. 9. To judiciously regulate the flow of materials by coordinating with

Purchase / supplier / Inventory Planning so that service levels are maximized and inventory kept to the optimum.
10. To maintain proper accounts of materials arranged. 11. The organization will be headed by a Head of Materials Management

(HOMM) whose role and function are described below:

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12. The stores Wing will function under the direction and overall

supervision of HOMM. The responsibility of ascertaining the need of materials and stores of the power plant and of arranging the supply of such materials and stores in the most efficient, economic and expedient manner possible, shall lie with him. He will also be responsible for the receipt, inspection and custody of materials and finally for their issues on indents received from the authorized officials of NTPC. FUNCTION OF HEAD OF MATERIALS MANAGEMENT (HOMM) The stocks of stores on hand, whether with the Stores Wing or other departments represent funds which are non-productive. While stocks should be such that stores required by NTPC are readily available, they should be a small as possible and losses due to obsolescence or deterioration should be minimum possible. The centralized control over the storage and procurement functions that is required for this purpose will be vested in the HOMM, who will be the head of MM deptt. and will be responsible for the Purchase and Inspection; and Custody and Issue of Stores. All materials for which the consuming deptts. have no immediate use should be returned to the stores wing. The HOMM shall be responsible for their survey and valuation, and the disposal by sale or otherwise. He shall also deal with all surplus and unserviceable materials of NTPC. The HOMM is not a disbursing officer, nor is he required to keep general accounts of the Stores transactions. His duties in this respect will be limited to the maintenance of numerical records of stores in stock and preparation of the initial documents of receipt and issue.

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GENERAL / SUPERVISORY CONTROL The HOMM shall arrange for submission to him of such statements and returns as may be necessary to keep him informed of the stocks available in his depots, the manner in which the indents of the departments are being complied with, the inflow of materials not required by the deptts. and the steps taken to dispose of surplus and unserviceable stores. PLANNING OF SUPPLIES OF STORES The HOMM is responsible for preparing a correct estimate of the quantities of stores to be purchased and for making the most suitable arrangements possible for the economic purchase of stores. In this, he will be guided by the Purchase and Work policy, the contract rules and the rules prescribing the purchase of certain articles through specified agencies.

FUNCTIONAL GROUPS In order to facilitate division of responsibility of Materials Management Deptt. involving following functional groups: Storage function Purchase
Policy planning and monitoring

STORAGE

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Storage Operations are divided into three distinct areas on the basis of distinct activities:
1. Good Receipt Goods clearance and dispatch Goods inspection & inward movement Risk Management 2. Custody and Warehousing 3. Materials Planning and Inventory Control.

GOODS RECEIPT SECTION Goods Receipt section shall be responsible for the following major functions:
1. Goods clearance and dispatch

2. Receipt and arranging inspection of materials

3. Custody of rejected items and un connected consignments 4. To have insurance coverage and handle claims for damages and

shortages and rejection of materials and pursue settlement thereof. 5. To maintain store of approved samples
6. In-ward movement and handing over goods to custody and

warehousing section. CUSTODY AND WAREHOUSING SECTION The section shall be responsible for the following :

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 Receipt of inspected materials in the custody cell ( also variously

called godowns, sheds, yards etc.)

Issue of materials to indenting Deptts. To plain and arrange preservation, storage and requisite material

handling facilities.
To identifysurplus and obsolete materials and arrange their disposal.

MATERIALS PLANNING & INVENTORY CONTROL MATERIALS PLANNING This involves forecasting materials requirement, pricing and fixing inventory. It also includes preparation of materials budget and scheduling of the orders.

INVENTORY CONTROL It involves fixing order quantities, setting inventory levels and safety stock levels, designing implementing inventory system, selective control of inventories, analysis and control of lead times. MATERIAL CODIFICATION & STANDARDIZATION It involves allotting the codes to each item of the stores as well as standardization of description to be mentioned on all indents, receipt, issue vouchers and other documents. The variety reduction / rationalization activities shall also be undertaken by the group in order to enhance the quality and effectiveness of controls. EDP CO-ORDINATION & MIS

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This involves the co-ordination with the EDP Group regarding computerisation and generation of various MIS reports from time to time. PURCHASE This involves selection of source of supply, obtaining competitive quotations, finalization of terms of purchase, placement of Purchase Order and follow-up for completion of supplies and payment to supplier.

POLICY PLANNING AND MONITORING CELL This will be an important organ of materials management directly responsible to HOMM. Its function shall be to identify major activities fixing targets, keeping track thereof, monitoring and coordinating with various agencies within and without NTPC. MATERIAL IDENTIFICATION (CLASSIFICATION & CODIFICATION): NTPC projects have 40,000-50,000 items (spares, consumable and others) in store at each of the power stations. Basic prerequisite in managing inventory of such a large number of items is accurate identification of each part or raw material. It must be possible to classify like items in order to control variety and explore interchangeability and introduce standardization. As accurate description would involve a lengthy written explanation in many cases, NTPC has adopted use of codes for describing inventory items.

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The corporation has decided to use a 10 digit significant coding scheme for assigning codes. In this scheme, a group of 10 digit positions denotes some definition of that attribute. Exercise involved in identifying various attributes and their values for each class of item is laborious and time consuming. Therefore, till the time a code based on a crude, but faster method called provisional/temporary code scheme. As and when significant codes, also called permanent codes get developed, temporary codes are replaced in a systematic fashion.

Digit 10 Position Check digit

2 Main

5 Location code

8 S.I. No.

sub group will always be 00

Group

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HUMAN RESOURCE IN NTPC

People Resource are Planned, managed and improved

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NTPC believes in achieving organizational excellence through Human Resource and credits its success to the strong performance focus & organization loyalty of its employees. Our human Resource philosophy, which is based on the NTPC HR Model can be captured in its HR Vision. Human Resource Vision To enable our people to be family of committed worldclass professionals, making NTPC a learning organization HR department has been playing a strategic role in NTPC. It has been dynamic partner in achieving excellence through the most vital asset of the organization, its human resources. The HR team has worked hand in hand with the line managers for making NTPC a preferred employer in the power Sector. The unique NTPC HR model stand on four pillars of culture Building, Competences Building, Commitment Building and System Building. These pillars guide all HR initiative towards building commitment, culture and competencies of the companys Human Resource and also channelise all HR initiatives so as to develop a system orientation. The HR function at Corporate Centre, formulates vision, strategy and policy while the Regional Head Quarter is empowered as a growth center and enabler. The sites such as Unchahar power station act as implementer as well as cost / profit centers. Inputs from projects are taken through interfacing forums of management as well as through feedback and reporting system.

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The employees and their representatives have scheduled meetings with the management at project level under various forums. A communication matrix has been developed to streamline such interactions within the organization. During these meetings the issues that are raised by the employee representatives on behalf of the employees and need to be addressed at policy level in Corporate Centre are taken up by Head of HR during various planned interactions among the HR Executives of entire NTPC. Employee Profile NTPC Unchahar has strength of 413 executives, 23 supervisors and 674 workers. The executive team has a strong professional qualification base. The core function like O&M, HR, Contracts and materials, Finance, Projects are carried out by our dedicated and highly qualified employees. Non core activities like housekeeping and security have been out-sourced through agencies that are expert in their own areas. A compulsory annual medical checkup is carried out for employees above 40 years once in every two years and annually for people above 45 years and people working in hazardous area. Recruitment The recruitment of executive is done at Corporate Centre but the requirement of the same is sent by the project. The requirement of executives is assessed by effective manpower planning process at site. The non executive are required at the project. The requirement is done on an all India basis and selection techniques like trade test/ written test, interview are adopted to select the best candidate for the post. Succession

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planning is done at middle management level in the project wherein executives are identified in specific areas/ departments and are groomed for position of group head by giving suitable exposure at work, training to develop requisite managerial & potential competencies etc. Appraising and helping people improve their performance The Key Performance Areas are cascaded downward from the companys vision/ mission to the individual goals. Since the basic philosophy of NTPC, which is also reflected in the HR Vision of the company that all employees should be given equal opportunity to learn, grow and develop in the organization, only merit is taken into consideration for growth. There is no distinction in remuneration or opportunities and no difference is made in allotment of job or terms of payment based on location, city or gender. The fairness on employment and the satisfaction of employees with respect to salary & wages along with the open culture of the company has very explicitly been brought out in employee surveys. Communicating performance score and development feedback is critical to create transparency in the system and to make the performance management system more acceptable to employees. It reinforces good performance by employees. A transparent communication and feedback mechanism would also enable development of coaching and mentoring relationship between superior and subordinates.

Promotion System

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The current promotion system at NTPC provides for time-based, regulated promotions based on merit, cluster- wise vacancies are notified and communicated to employees. Peoples knowledge and competencies are identified, developed and sustained. NTPCs stated HR strategy requires training to be used as a tool for creating the right attitude and developing competencies among the employees. Training is also required to be develop employees knowledge and skills. With a view to serve the above objectives, NTPC has evolved a comprehensive training infrastructure. Since Human Resource of the company is its most valuable asset, great importance is attached to their selection.Utmost care is given to match the skills of the employees of the company who are indicated on the basis of specific educational qualification, experience & skills at various levels in the organizational hierarchy. Based on the knowledge, these employees are posted and further promoted. People are involved and empowered Various efforts have been made at NTPC FGUTPP where people are encouraged to work as individual and in term to initiate improvement activities like Professional Circle, Quality Circle, NTPC Open Competition For Executive Talent (NOCET), Suggestion Scheme and Think tank involving people and empowering them. The achievement of the employees/ teams is recognized through a welldrafted reward & recognized policy of the company. As per the policy any good work done by an employee or a team is immediately recognized by

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giving them a Latter of Appreciation. If an employee continues to do good work during the entire month, he is rewarded with Star of the Month. A yearlong performance for a non executive is praised and recognized by giving him Employee of the Year award and an executive by giving him Power Excel Award. All these awards are given in a public ceremony, meeting of HODs or during a project seminar. The participation & achievement of employees in various quality initiative like Quality Circle, suggestion scheme professional Circle, NOCET etc. is rewarded publicly during 26th January, 15th August, Raising Day function etc. People are rewarded, recognized and cared for The manpower of NTPC FGUTPP was effectively utilized by redeploying them in two newly constructed units of 210 MW by giving them suitable training and hence enhancing over all productivity of manpower. Keeping in view the increased responsibility, the remuneration of the employee has been suitably hiked in the last pay revision. NTPC Reward & Recognition NTPC believes in the power of People and it is the professional philosophy of the management to create an enabling organizational culture for people to demonstrate their creativity, initiative and involve in holistic development, through recognition and celebration of achievements. Keeping the above in mind, a bouquet of special Rewards and Recognition Schemes is evolved with an objective of reinforcing good work and behavior of employees in order to achieve organizational excellence.

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BEST PRACTICES OF HR DEPARTMENT Starting of Best Teachers award for The Performing Teachers in the Schools Three no. of schools are presently functioning in NTPC township, out of which two schools are based on CBSE pattern and one school is based on UP board. Teachers play an important role in imparting quality education amongst children, which is reflected in good results of the school. Good performance of children in various exams is not only a matter of great satisfaction for the parents but also give recognition & name to the school & NTPC in totality. Award for best teacher in subject: Physics, Chemistry, Mathematics, Biology and Computer. The criteria for selection of the best teacher is:

Class Average. Class Average for the subject should essentially be more then 75%. If the difference between the class average of the two teachers is less

then 5% then number of students getting more then 80% shall be the criteria.

Payments of all the Dues to the Employee on the Day of Superannuation

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All the dues of an employee like PF, gratuity, leave encashment & post retirement medical benefits are cleared on the day of superannuation & cheques & requisite documents are given to him. This has resulted in a lot of satisfaction amongst retiring employees and they continue to have a sense of pride & ownership for the organization that they have served for such a long time. E- Attendance System An E-Attendance system has been initiated at NTPC Unchahar w.e.f. 1.12.03. The system has following features :
Information to all HODs as regards the total number of employees

from their departments who have come inside the plant premises on a particular day.
Ensures availability of employees in the plant premises on time &

inculcate a culture of discipline in the plant.

Integration of the present E-Attendance system to the payroll system,

will not require manual intervention related to employee attendance resulting in saving of productive man-hours. Regular Visit of GM to the Residence of Employees General Manager visits the residence of employees on a regular basis, during these visits, he interacts with the employees & his family members regarding quality of life in township, well being of ladies & children. Promptness of civil and electrical maintenance works, condition of parks & on going culture & sport activity in the township including schools.

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Regular Interaction of Physically Challenged Employees with GM for Conductive Working Environment NTPC, as part of its corporate social responsibility, recruited a number of physically challenged persons. At NTPC Unchahar also 11 physically challenged persons were recruited in the 1st phase & 06 physically challenged person in the 2nd phase. GM & HOHR regularly interact with these employees in order to elicit their well-being and also give them a felling of togetherness. These efforts have resulted in an excellent amalgamation of these employees in the work force of Unchahar and all of them are presently working in their respective area with high morale. Employee Development Centre Here employee development centre is well equipped to provide training to the employees for their respective areas. Training for the latest technologies and concepts are arranged from time to time. The employees adopt those ideas to their workplace and apart from this, the knowledge gained by them is shared with other them members. Through seminars, Quality Circles, Professional Circles etc. new developments when introduced or otherwise, are given due publicity and familiarization training are organized for the benefits of end users.

Preparation of Training Plan for all the Employees Every Year

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In NTPC Unchahar the training Plan provides a wide range of relevant training programmes and helps a lot in competency building of employees. The training plan is focused on attitude building, skill up gradation and knowledge enhancement and will, therefore, be a great tool for competence building of employees. Through this comprehensive training plan, the training needs of all our employees are fully addressed.

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FINANCE ARE MANAGED

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Financial strategies of Unchahar are derived from the long-term strategies of NTPC. As per Central Electricity Regulatory Commission (CERC) guidelines Availability Based Tariff (ABT) is applicable for Unchahar. The benchmarks on operational and financial parameters are reviewed to fulfill the expectations of the customer, that of low cost power. With the back drop managing financial strategies of Unchahar are being framed to attain the specified Return on Capital Employed (ROCE), generate additional profits by optimizing operational parameters, maximize the productivity, cost reduction by efficient management and cutting down the wasteful expenditure. Financial process and strategies are being continuously reviewed and updated keeping in view the evolving trends in the industries. NTPC prepared detailed financial manuals covering various aspects of finance and accounts. The stakeholders financial expectations are captured in the interaction with financial institutions and through the yearly Memorandum of Understanding (MOU) signed between NTPC and Government of India. The captured expectations are cascaded through out the organization in the form of yearly MOUs up to unit levels. Financial planning of the company and Unchahar are made on five-year time horizon for micro level projections and annual plan for yearly working. Budget planning is made for construction activities, operational activities and capital addition schemes and financial parameters for effective review and monitoring, Budget process has played very vita role in NTPC since inception. The MOU targets are supported with the strategy of zero based budgeting for effective control and monitoring. This

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strategy has yielded excellent results to NTPC for its all round performance including financial achievements over the years. The financial review of controllable expenses is done on monthly basis in Site Management Committee (SMC) and financial review meetings. In various capital addition schemes, investment decisions are taken on cost benefit analysis and on pay back calculation. Investment decisions are based on the recoverability of cost out of tariff and ensuring effective resources utilization. These proposals are put up to corporate budget and Operation Services group for their analysis and approval by Chairman and Managing Director (CMD). Several financial initiative have been taken in recent times to reduce inventory, remove un wanted processes and introduce new processes to bring about customer focus. Several financial practices followed in this project have yielded positive results in its process management, resulting in effective resource utilization.For managing working capital, Unchahar is having a well-defined policy and at the time of conceiving the project, certain norms were built in and accordingly certain portions are capsulated through long term and short term sources. Again day-to-day working capital management is done through effective collection mechanism, collection through LC, credit from fuel suppliers and with short-term loan arrangement with banks. Capital expenditure is approved for all the projects through yearly capital budget mechanism and funded from long-term sources being arrange from financial institution and through bonds issue. Cash management is done on centralized basis in order to derive the synergy of funds. All collection from various clients are being done through banks at

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regional office and remitted instantly to corporate office. Remittance to various projects is being done on daily need basis. Daily funds position at various sites is being monitored through daily reports and this effective funds management has resulted in excellent earnings of the company.

Financial Soundness
To maintain and improve the financial soundness of NTPC by prudent

management of the financial resources.

To continuously strive to reduce the cost of capital through prudent

management of deployed funds, leveraging opportunities in domestic and international financial markets.
To develop appropriate commercial policies and processes which

would ensure remunerative tariffs and minimise receivables.

To continuously strive for reduction in cost of power generation by

improving operating practices.

FINANCIAL OUTCOMES
Station Turnover
Graph-6

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(Rs. Crores)

1200

1100 ACT TAR

1000

900

800 2001-02 2002-03 2003-04 2004-05 2005-06

Station Gross Margin-(Profit)

Graph-7
(Rs. Crores)

300

200 ACT TAR 100

0 2001-02 2002-03 2003-04 2004-05 2005-06

Station Profit/ Turnover(%)

Graph-8

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25 20 15 10 5 0 2001-02 2002-03 2003-04 2004-05 2005-06

ACT TAR

Above figures are showing Unchahar stations turnover, gross margin (profit), station profit per turnover and stations profit per employee. The reduction in performance as compared to Memorandum of Understanding (MOU) in the financial years 02-03 & 03-04 are mainly due to normative fixed charges, revision of Tariff and implementation of Availability Based Tariff (ABT) regime. The drastic reduction in 03-04 is due to reduction in Tariff and adjustments made for the previous years Tariff revision. Last Figure shows performance in terms of operational and financial management. It is noteworthy that Unchahar has consistently performed well in terms of operational parameters and the financial parameters in few cases could not be achieved as mentioned above but have been surpassing the stiff MOU targets given by the company.

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POWER GENERATION PROCESS

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Unchahar generates power using thermal energy of coal combustion. The coal received at the station is crushed to size 25 mm and transported to the unit bunkers.This coal is further pulverized in the coal mills and then burnt in the boiler, which converts the water in to high- pressure steam and high temperature steam (150 Kg/cm2 & 540 c). this steam rotates the turbine and generator to produce electric power the power thus generated is transmitted through 220 KV lines and distributed to the beneficiary states

Coal

Steam

TURBO GENERATOR

Elect ricity

COALBOILERS/ BUNKERS TRANSFORMER/ HANDLING MILLS SWITCH YARD PLANT (CHP)

Water

ASH

CEMENT / BRCKS

The fuel gas coming out from the boiler is let out to the atmosphere, through the Electrostatic precipitator (having an efficiency of 99.97%) where the dry ash is collected and sent to silos keeping the environment clean. The ash

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collected in silos is sent in bulkers/ closed trucks for cement manufacturing. It is also used for manufacture of ash bricks in NTPC Unchahar.

PRODUCT DELIVERY
The quantity of electricity produced at any instant by Unchahar is as per customer requirement and governed by a mechanism of declaring capability for the next day generation and receiving schedules for the current date. However, depending on the time specific demand on the Grid, Northern Region Load Dispatch Centre (NRLDC) gives backing down/ normalization of generation massages. The power generated is fed into the Northern grid. The power so received by Northern grid is supplied to different states in the northern region tied up with Unchahar station. With regard to the commercial aspects, station commercial section provides all metering and billing data to commercial section of Northern Region Head Quarters (NRHQ) who in turn rise the bill and follow up with the NRLDC and state concerned for realization of dues. The certification of generation of each month, applicable tariff structure. Power quality and quantity related issues are discussed in stakeholders meeting and commercial issues are taken up by site Commercial department and NRHQ Commercial Departments with customer representatives.

RECYCLING

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There is no reject in the product produced at Unchahar and hence does warrant any recycling. However, Unchahar is strongly committed to utilization of ash generated as a result of its process.The process design provides for collection and storage of dry fly ash in silon on a continuous basis. The promotional activities under ken and incentives provided by Unchahar have enabled to continuously improve the fly ash utilization levels to more then 100% since last two years.

Unchahar Performance Stage I Generation

Graph-9
4000 3500 3000

MU

2500 2000 1500 1000 500 0

1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Financial year

Stage-II Generation (MU)

Graph-10

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2005-06

4000 3500 3000 2500 2000 1500 1000 500 0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Financial year STATION POWER LOAD FACTOR (PLF) %

Graph-11
100 95 90 85

%
80 75 70
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Financial year

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CHAPTER-4

Study of specific management problem

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SPECIFIC MANAGEMENT PROBLEM

Codification And Updation

Every equipment in the company which is being use like boilers, cylinder, turbines etc. are having a code with 10 digits. Every machine or every equipment is recognized by code, we can get all information and features of any equipment through this code. This code was in use when the company was incorporated but the features are being changed day by day for eg. company was using computer when it started, the code was declared that time, that time computer was having different features compare to this time for eg. that time they were using Windos 98 software and this time they are using Windos Xp and Windos Vista software, when we will open the code that will give the information and features of old version because the code is not updated. Due to this problem the company is facing a lot of problem.

Suggestion:

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 A special team should be formed who should be assigned with the

job of updating the features (5 to 6 member).

Post coding system should be renewed and modern coding system

should be implemented.
Regular monitoring should be done by supervisor in order to see

whether updating is going properly or not.

An online system should be there so that on line processing should

be done or updation is going on or not.

Recommendation:

Management should take more responsibility in order to An HR policy should be formed in order to make updation

make there process more effective.

policy more effective.

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CHAPTER-5

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BIBILOGRAPHY
BOOKS:

Philip Kotler Marketing Management. Prasanna Chandra Financial Management. Gaitther, N & Frazier, Production & Operation.

OTHER REFRENCES: Library of NTPC Unchahar Brochures

WEBSITES: http://www.ntpc.co.in

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