Employee Welfare Activities in Bhel

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1

A SUMMER TRAINNING REPORT

ON

EMPLOYEE WELFARE ACTIVITIES IN BHEL,HARIDWAR

Submitted in partial fulfillment for the award of Degree of

Master of Business Administration

(Affiliated to U.P. Technical University, Lucknow )(2008-10)

SUBMITTED TO SUBMITTEDBY

MR. PUNEET KUMAR ADITYA KUMAR SINGH(HOD) MBA ( III SEM )

IIMT, GR. NOIDA ROLL NO. 0821670002

IIMT COLLEGE OF ENGINEERINGGREATER NOIDA


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ACKNOWLEDGEMENT

BHEL (HEEP) Haridwar an ISO-9001 manufacturing unit is setting out

milestones in providing Summer Training to professional students studying in

India. This is one of the dream units where one gets an opportunity to take training

in such a highly advanced and prestigious Human Resource Development

Centre (HRDC), BHEL, Haridwar.

I would like to express my gratitude to Mr. B.C. Sharma (Engr.), HRDC under

whom I started my training. He gave me the perfect environment for my overall

development and deep knowledge about the activities in BHEL.

A very special thanks goes to Mr. D. PANT (SDGM), HRDC for all his support

and guidance throughout my training period especially in completion of my project

and research work.

Appreciation also goes to all those employees of BHEL who made my studyincluding research work possible and an enjoyable experience for me.

I would also like to thank Dr. P.V. Kapoor (Director , IIMT Management College ,

G. NOIDA ) and all other faculty members of my college without whose

motivation and encouragement I would not have been able to complete my training

successfully.

I would like to thank my family, friends and all those who have always been a

constant source of inspiration to me.

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DECLARATION

I, Aditya Kumar Singh, hereby declare that the project report titled Employee

Satisfaction from Employee Welfare Activities in BHEL has been undertaken and

completed after one month 15 days training in BHEL, Haridwar for partial

fulfillment of the Master in Business Administration (M.B.A) degree awarded by

IIMT College of Engineering, G. Noida. It iscompletely up-to-date and based on

recent research done by me.

Aditya KumarSingh

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TABLE OF CONTENTS

Sl. No. CONTENTS Page No.

1. Introduction to the subject 6-10

2. Organization Study

2.1 BHEL-an overview2.2 Profile of the organization2.3 Companys history2.4 Recent achievements2.5 Product range and its customers2.6 Financial status2.7 Future prospects2.8 Plant overview-HEEP, BHEL2.9 SWOT analysis of BHEL2.10 Welfare activities in BHEL2.11 Factories Act, 1948.

11-2122

23-3233-4243-4748-5051-5253-60

6162-7172-74

3. Research Project

3.1 Executive Summary3.2 Literature Review3.3 Objective of study3.4 Research Methodology3.5 Limitations of the study3.6 Data analysis and interpretation

3.7 Findings3.8 Recommendations

75-7677-80

818283

84-96

9798

4. Bibliography 99

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5. Appendix 100-101

1. EMPLOYEE WELFARE ACTIVITIES

Welfare activities include all service, amenities and facilities provided by the

employer to employees other than wages. The international labor conference at its

39 session enumerated the following activities-

Feeding facilities

Rest and recreation facilities

Transportation to and from the work place to their homes, etc.

The labor investigation committee stated, For our port we pray to include welfare

activities anything done for the intellectual, physical, moral and economic

betterment of the worker whether by employer, by Govt. or by other agencies over

and above is laid by

law

BASIC FEATURES OF WELFARE MEASURES

Employee welfare activities include various facilities, services and amenities

provided to workers for improving their health, efficiency, social status and

economic betterment.

Welfare measures are in addition to regular wages and other economic

benefit available to workers as per legal provision and collective bargaining.

Employee welfare measures are flexible and ever changing new welfare

measures are added to the existing onesfrom time to time.

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IMPORTANCE OF WELFARE ACTIVIES IN INDIA

Welfare activities in India are essentially required because India is a developing

country and welfare activities are necessary for improving the working conditions

as well as the economic standard of the workers. In all the developed countries of

the world the employers are providing best working conditions to their employees.

Following are the reasons why welfare activities are important in India:

Establishment of industrial peace: - Employee welfare activities help in

establishing harmonious relationship between employers and employees.

The feeling among the employees that they are getting all the possible

facilities and employers take care of them helps in establishment of

industrial peace.

Increase in the responsibilities of the employees: - Provision of employee

welfare activities in an enterprise increase the sense of responsibility among

its employees as they feel that they should work efficiently and to the best of

their ability for the facilities they are getting in the company.

Helpful in reducing the rate of absenteeism and labor turnover: - the rate of

absenteeism and labor turnover is much higher in India compared to otherdeveloped countries of the world. The provision of labor welfare activities

helps in reducing this rate when employees are satisfied.

Increases the efficiency of the workers: - Labor welfare activities increase

the working efficiency of employees as it develops a feeling of dedication

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among them. Due to increase in efficiency the productivity of the enterprises

increases considerably

Helpful in maintaining health and safety of the employees: - Most of the

Indian workers are unhealthy and ill fed which reduces the working capacityof the employees. Provision of nourishing food and medical facilities help in

maintaining health and safety of employees. Provision of various safety

measures, insurance schemes, etc all aids in employee satisfaction.

OBJECTIVES OF EMPLOYEE WELFARE ACTIVITIESIN A NUTSHELL

To provide proper working conditions to the employees so that they are

motivated to stay in the organization.

To make the quality of work life better in the organization.

To develop a healthy competition among employees with a feeling of

integration.

To establish harmonious relationship between labor unions, employees andthe govt.

To relieve workers from industrial fatigue and to improve

intellectual/cultural and material condition.

To make workers happy and satisfied.

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CONSTITUTION OF LABOR WELFARE ACTIVITIES

Dr. Broughton has divided labor activities into two categories as follows:

1 .Intra-Mural activities

2. Extra-Mural activities

Intra-Mural activities: in this category those welfare activities are included which

are made available to the workers within the organization. These facilities include

the following:

1. Scientific selection or appointment-The scientific selection of workers for

various jobs within the factory.

2. Industrial training-Training for different jobs in the factory.3. Arrangement for light, fresh air and water-This classification comprehends

arrangement in factory for cleanliness, ventilation, clean drinking water,

lavatories, urinals, light, air, etc.

4. Prevention of accidents-It includes the arrangement for protection against

dangerous machines, fire and extreme fluctuation of power, etc.

5. Other activities-various other activities for welfare of workers like

restrooms, etc.

6. Health and medical facilities for the employees and their family members.

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Extra-Mural activities- these are the activities provided by enterprises for welfare

of their employees outside the enterprises. It includes the following-

1. Provision of education- arrangement for the education and the training of

workers and the facilities of education for the children of workers.

2. Accommodation facility-arrangement for proper housing accommodations

for the employees at the rent that they can afford easily.

3. Facilities of recreation-arrangement such as clubs, libraries, reading rooms,

gymnasium, etc.

4. Provision of providing food to the employees at affordable prices.

5. Provision for provident.

6. Provision for gratuity.

7. Provision for sickness and maternity benefits.

8. Arrangement of co-operative societies from where the employees can

purchase goods of daily use at reasonable prices.

9. Group insurance scheme.

10.Facilities of transportation.

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B.H.E.L. A CORPORATE GIANT

******************************

Established in the late 50's BHARAT HEAVY ELECTRICALS LIMITED (BHEL)is a name which is recognized across the industrial world. It is one of the largest

engineering and manufacturing enterprises in INDIA and is one of the leading

international companies in the power field. BHEL offers a wide spectrum of products

and services for core sectors like Power Generation & Transmission, Industrial

Transportation, Renewable Energy, Defense etc. Besides supply of non-conventional

energy systems. A dynamic 63000 strong team embodies the BHEL philosophyexcellence through continuous striving for state of the art technology. With corporate

headquarters in NEW DELHI, 14 manufacturing divisions, 4 power sector regional

centres, 8 service centres, 15 regional offices and a large number of project sites

spread all over India and even abroad, BHEL is India's industrial ambassador to the

world with export presence in more than 50 countries.

BHEL has had a consistent track record of growth, performance and profitability. The

World Bank in its report on the Indian Public Sectors, has described BHEL as one of

the most efficient enterprises in the industrial sector, at par with international standards

of efficiency". BHEL has acquired ISO 9001 certificate for most of its operations and

has taken up Total Quality Management (TQM).

All the major units/divisions of BHEL have been upgraded to the latest ISO-9001:

2000 version quality standard certification for quality management. All the major

units/divisions ofBHEL have been awarded ISO-14001 certification for environmental

management systems and OHSAS-18001 certification for occupational health and

safety management systems.

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BHEL occupies an all-important niche as evident by its ranking by CII amongst top eightPSUs based on financial performance. The company received EEPCs Top Export Award

for Project Exports for seventeenth year in succession.

2. ORGANISATION STUDY

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2.1 BHEL-An Overview

The Heavy Engineering Industry comprise capital goods/machinery and equipment

and can be broadly classified into electrical machinery & equipment and non-electrical machinery and equipment segments.

The electrical machinery comprises power generation, transmission and

distribution equipment like motors, generators, switchgears and transformers.

The non-electrical machinery segment comprises machines and equipment used in

various industries like material handling equipment, boilers, transportation

equipment, etc.

Heavy Engineering

Electrical machinery

And equipment

Non electrical

Machinery and

Equipments

Classification of Heavy Engineering Industry**(Source: ICRA information, Guide and Research Service, 2005)

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The Indian engineering industry, including the transport equipment segment, is

estimated around 1.2 trillion. The share of heavy engineering is about 80% of the

value while rest is contributed by light engineering sector.

Majority of players in the heavy engineering industry have well defined markets

catering to specific sector(s) and are technology driven. Turnkey engineering

capacity is also limited to a few domestic entities like BHEL, ABB, L&T and

competition in this segment is also limited.

The industry follows institutional model for sales and distribution rather than retail

model. It leads to emphasis on direct selling methods rather than a geographically

penetrative distribution network.

HEAVY ELECTRICAL INDUSTRY

Industrial units manufacturing large plant and machinery required for power

generation, transmission, distribution and utilization are covered under the

category Heavy Electrical Industry. India is the only developing country besides

China which produces a full range of electric power generation and transmission

equipment. In fact, the history and growth of Bharat Heavy Electrical Ltd (BHEL),

a public sector enterprise under in the country symbolizes the overall growth

pattern of heavy electrical industry in the country.

BHEL has the unique distinction of being one of the very few companies in the

world, manufacturing all major power generating equipment under one roof. The

industry has been upgrading the existing technology and is now capable of taking

turnkey contracts also for export markets. Among the Third World countries,

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India is major exporter of heavy and light engineering goods, producing a

wide range of items.

The industry has been de-licensed. Foreign collaborations are allowed with 100percent FDI. The investment in R&D by the electrical industry is amongst the

largest in the corporate sector in India. Large electrical equipment used in steel

plants, petrochemical complexes and other such heavy industries are also being

manufactured in the country.

BHEL ACTIVITY LOCATIONS

Corp. P&D

NEW DELHI

VADODARA

NAGPUR

PATNAKOLKATA

VARANASI

GOINDWAL

HARDWAR

RUDRAPUR

JAGDISHPURJHANSI

BHOPAL

HYDERABAD

BANGALORE

RANIPET

TIRUCHIRAPALLY

CHENNAI

CHANDIGARH

Registered Office & CorporateHQ : New Delhi

18 Regional Operations offices

Corporate R&D Division: Hyd.

Over 150 project sites

8 Service Centers

14 Manufacturing plants

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REGIONAL OFFICES (POWER SECTORS)

******************************************1. NOIDA (NORTHERN REGION)

2. KOLKATA (EASTERN REGION)

3. NAGPUR (WESTERN REGION)

4. CHENNAI (SOUTHERN REGION)

BUSSINESS OFFICES

**********************

1. BANGALORE

2. VADODRA

3. BHUBANESHWAR

4. MUMBAI

5. KOLKATA

6. CHANDIGARH7. GUWAHATI

8. JABALPUR

9. JAIPUR

10. LUCKNOW

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11. CHENNAI

12. NEW DELHI

13. RAIPUR

14. RANCHI15. SECUNDRABAD

MANUFACTURING UNITS

*****************************

1. BANGALORE

2. BHOPAL

3. GOINDWAL

4. HARDWAR

5. HYDERABAD

6. JAGDISHPUR

7. JHANSI

8. RUDRAPUR

9. RANIPET

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For preparing itself to meet the countrys power capacity addition targets

and for providing Power to all by 2012, BHEL has embarked upon a plan

of enhancing its manufacturing capacity from 6000 MW to 15000 MW per

annum by 2009 with a total investment of Rs. 4800 crore for the EleventhFive Year Plan. BHEL has achieved 10000 MW power equipment capacities

as on 31.12.2007.

BHEL has also been awarded the Business Standard Star Public Sector

Company Award -2006 for its exceptional high growth performance with

across-the-board gains on all parameters in its areas of operation.

BHEL employees have won maximum no. of Prime Ministers ShramAwards (2004), the highest honor bestowed on individuals for outstanding

contribution towards production and productivity, technological innovations,

cost saving, import substitution and valuable saving of foreign exchange.

The Shram Bhushan award for the year has also been won by a BHEL

employee. The awards were presented by the Honble Prime Minister on 27th

April, 2007. Three National Safety Awards have also been won by BHEL employees

for outstanding achievements in terms of the longest accident free period.

MAJOR PLAYERS IN HEAVY ELECTRICAL INDUSRTY

Alstom

ABB BHEL

General Electric

Siemens

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EMERGING COMPETITORS

Dang Fang (China)

LMZ (Russia)

L&T in collaboration with Japan

SEPCO (China)

2.2 Profile of the Organization

Name of the organization: Bharat Heavy Electricals Ltd. (BHEL) Major Industry: Electricals

Sub-Industry: Miscellaneous Industry

Country: India

Employees: 46000

Business Description

BHELs principal activities are to manufacture and distribute electrical, electronic,

mechanical and nuclear power equipment. The company operates under two

segments: Power sector and Industry sector. Power sector includes products and

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services relating to power generation sets and its auxiliaries. Industry sector

includes products and services relating to transportation and transmission, electric

machines, industrial sets and DG sets, telecommunications and other industrial

products and systems. The plants of the company are located in Ranipat, Goindwal,Jagdishpur, Tiruchy, Rudrapur, Hyderabad, Bangalore and other places.

2.3 Companys history

BHEL is a public sector company engaged in the engineering and manufacturing

businesses. The company installed its first plant in the year 1956 at Bhopal.

Then in 1960 the company launched another three units at Haridwar, Hyderabad

and Thiruchirapalli to accelerate its production level.

BHEL is the largest engineering and manufacturing enterprise in India in the

energy-related/infrastructure sector, today. BHEL was established more than 40

years ago, ushering in the indigenous Heavy Electrical Equipment industry in India- a dream that has been more than realized with a well-recognized track record of

performance. The company has been earning profits continuously since 1971-72

and paying dividends since 1976-77.

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BHEL manufactures over 180 products under 30 major product groups and caters

to core sectors of the Indian Economy viz., Power Generation & Transmission,

Industry, Transportation, Telecommunication, Renewable Energy, etc. The wide

network of BHEL's 14 manufacturing divisions, four Power Sector regionalcentres, over 100 project sites, eight service centers and 18 regional offices,

enables the Company to promptly serve its customers and provide them with

suitable products, systems and services -- efficiently and at competitive prices. The

high level of quality & reliability of its products is due to the emphasis on design,

engineering and manufacturing to international standards by acquiring and

adapting some of the best technologies from leading companies in the world,

together with technologies developed in its own R&D centers.

BHEL has acquired certifications to Quality Management Systems (ISO 9001),

Environmental Management Systems (ISO 14001) and Occupational Health &

Safety Management Systems (OHSAS 18001) and is also well on its journey

towards Total Quality Management. BHELs manufacturing facilities are

comparable with the best in the world with modern design, engineering, material

preparation, fabrication, welding, heat treatment, handling, testing and sipping

facilities.

BHEL has supplied boilers and auxiliaries accounting for nearly 70% of total

installed thermal power generation capacity in India. BHEL utility boilers account

for over 65% of the total installed thermal power generation capacity in India.

The companys inherent potential coupled with the strong performance over the

year has resulted in it chosen as one of NAVRATNA PSEs, which are to be

supported by the govt. in their endeavor to become future global players.

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BHEL was incorporated as a govt. owned organization in 1950. After liberalization

of Indian economy, the govt. decided to divest a portion of its holding. In 1991-92,

it has divested a part of its equity shares to public and financial institutions. At

present the govt. of India holds 67.72% in the total equity capital of the company.

In a period of about 25 years the BHEL has grown into one of the largest

engineering and manufacturing organization in the country. With growing

experience and expertise BHEL now offers a wide spectrum of products and

services in the field of power industry.

BHEL has

Installed equipment for over 90,000 MW of power generation -- for Utilities,

Captive and Industrial users.

Supplied over 2,25,000 MVA transformer capacity and other equipment

operating in Transmission & Distribution network up to 400 kV (AC & DC).

Supplied over 25,000 Motors with Drive Control System to Power projects,

Petrochemicals, Refineries Steel, Aluminum, Fertilizer, Cement plants, etc.

Supplied Traction electrics and AC/DC locos to power over 12,000 kms

Railway network

Supplied over one million Valves to Power Plants and other Industries

The greatest strength of BHEL is its highly skilled and committed 46000

employees. Every employee is given an equal opportunity to develop himself and

grow in his career. Continuous training and retraining, career planning, a positive

work culture and participative style of management. All these have engendered

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development of a committed and motivated workforce setting new benchmarks in

terms of productivity, quality and responsiveness.

Business Activities

It can be classified as:

o Power Sector

Generation

Transmission

o Industries

Transportation

Telecommunication

Renewable

o Other Industries

o

International Operationso Research & Development

Power Sectori. Power Generation Sector

Power generation sector comprises thermal gases hydro and nuclear power plantbusiness. As on 31-03-05 BHEL supplied sets account of nearly 71255 MW or

64% of the total installed capacity of 111151 MW in the country as against nil till

1969-70.

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The power plant equipment manufactured by BHEL is based on the contemporary

technology comparable to the best in the world, and is also internationally

competitive.

The company has proven expertise in plant performance improvement through

renovation, modernization and upgrading of a variety of power plant equipment,

beside specialized know-how of residual life assessment, health diagnostics and

life extensions of plants.

For preparing itself to meet the countrys power capacity addition targets and for

providing Power to all by 2012, BHEL has embarked upon a plan of enhancing

its manufacturing capacity from 6000 MW to 15000 MW per annum by 2009 with

a total investment of Rs. 4800 crore for the Eleventh Five Year Plan.

ii. Power Transmission

BHEL also supplies a wide range of transmission and systems of up to 400 kV

class. These include high voltage power and instrument transformers, shunt and

series reactors, 33 kV gas insulated sub-station capacitors, insulators etc.

For economic transmission of bulk power over long distances, high voltage directcurrent systems are supplied. Series and shunt compensation systems, to minimize

transmissions losses, have also been supplied.

Industries

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i.Transportation

Most of the trains operated by Indian railways including the metros in Calcutta are

equipped with BHELs traction electric and traction control equipment.

The company supplies electric locomotives to Indian railways and diesel shunting

locomotives to various industries. Battery powered road vehicles are also

manufactured by the company.

ii.Renewable Energy

Technologies that can be offered by BHEL for exploiting on conventional and

renewable source of energy include with energy generators, solar power based

water pump, lighting and heating systems. The company manufacture wind electric

generator of unit size up to 250 kW for wind forms, to meet the growing demand

for harnessing wind energy.

Other Industries

BHEL is a major contributor of equipment and systems to industries such as

Cement

Sugar

Fertilizer

Refineries

Petrochemicals

Steel, Paper, etc.

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The range of systems and equipments supplied includes captive power plants, high

speed industrial drives turbines, industrial boilers and auxiliaries, waste heat

recovery boilers, gas turbines, heat exchangers, electrical machines, pumps, values,

seamless steel tubes and process controls. The company has commencedmanufacture of large desalination plants to help augment the supply of drinking

water to people.

International Operations

BHEL, ranking among the major power plant equipment suppliers in the world, is

one of the largest exporters of engineering products & services from India. Over

the years, BHEL has established its references in around 60 countries of the world,

ranging from the United States in the West to New Zealand in the Far East.

BHEL's export range covers individual products to complete Power Stations,

Turnkey Contracts for Power Plants, EPC Contracts, HV/EHV Sub-stations, O&M

Services for familiar technologies, specialized after-market services like Residual

Life Assessment (RLA) studies and Retrofitting, Refurbishing & Overhauling, andsupplies to manufacturers & EPC contractors.

BHEL has assimilated and updated/adopted the state-of-the-art-technologies in the

Power and Industrial equipment sectors acquired from world leaders. BHEL has

successfully undertaken turnkey projects on its own and possesses the requisite

flexibility to interface and complement international companies for large projects,

and has also exhibited adaptability by manufacturing and supplying intermediate

products to the design of other manufacturers and original equipment

manufacturers (OEMs). The success in the area of rehabilitation and life extension

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of power projects has established BHEL as a reliable alternative to the OEMs for

such power plants.

Research & Development

To remain competitive and meet customers' expectations, BHEL lays great

emphasis on the continuous up gradation of products and related technologies, and

development of new products. BHEL's commitment to advancement of technology

is reflected in its involvement in the development of futuristic technologies likefuel cells and superconducting generators. BHEL's investment in R&D is amongst

the largest in the corporate sector in India. Products developed in-house during the

last five years contributed about 7% to the revenues in 2005-06.v

Vision, Mission and Values of BHEL

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Motto of the company:

Power to the people

Customer Focus:

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Bhopal (Madhya Pradesh)- Heavy Electrical Equipment Plant

Goindwal (Punjab)- Industrial Values Plant

Haridwar (Uttarakhand)- Heavy Electrical Equipment Plant

Central Foundry Forge Plant

Jagdishpur (U.P.)- High Tension Cremica Plant

Jhansi (U.P.)- Transformer Plant

Ranipet (Tamil Nadu)- Boiler Auxiliaries

Rudrapur (Uttarakhand)- Wind Mills

Tiruchirapalli (Tamil Nadu)-High Pressure Boiler Plant

2.4 Recent Achievements and Milestones

Company's Performance during 2009-10:

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Nuclear field:

MoU signed with NPCIL for formation of JV for conventional island of

Nuclear Power Projects. Technology tie-ups being explored for

700/1000/1600 MW TG sets through this JV Company.

MoU signed with GE-Hitachi for cooperation in nuclear island equipments

for Power plants to be set up by NPCIL

Strategic Alliances:

Partnerships forged with NTPC, KEL, HEC and PTC for leveraging equipment

sales as well as strengthening the supply chain by developing additional sources

for critical inputs

Inorganic Growth:

Acquisition of BHPV as 100% subsidiary.

Opportunities being pursued in the areas of Transmission, Transportation,

Nuclear and Renewable energy.

MoUs signed with GE for Diesel Electric locomotives and manufacture of

propulsion systems for these locomotives.

Capacity Expansion:

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Manufacturing capacity expansion from 10,000 MW to 15,000 MW p.a.

proceeding apace and further augmentation to 20,000 MW p.a. planned by

2011-12.

Foundation stone for a new plant in Tirumayam in Pudukottai district of

Tamil Nadu laid for manufacture of boiler components.

Customer Confidence:

Confidence reposed by Private Sector customers; orders worth Rs.13,317

Crore place by Jindal Power, Jaiprakash Power Ventures, GVK Power,

Hindalco, HPCL Mittal Energy Ltd., Adani Power, Tatas, ACC, among

others.

Highest value order of Rs.2,010 Crore received in Industry Sector business

segment from Hindalco for 6x150 MW BTG package for Mahan (MP).

First ever order for generator transformers for 800 MW sets and also the

largest rating to be installed in India for Mundra UMPP, reinforcing

technological and market leadership in transformers.

Global Forays:

Physical export orders of Rs.3, 265 Crore up 41% from 22 countries in 5

continents.

Forays in new markets Senegal, Rwanda and new market segments in

Syria, Tajikistan, Japan and Nigeria.

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Long term business tie-up Six-year Rate Contract for 126 MW rated Gas

Turbine Generating Sets from Oman one of its kinds in the world.

MoU signed with TGR, Hungary for exploring opportunities for

conventional boilers and R&M of boilers in European and CIS countries.

Technology Edge:

BHEL becomes sole supplier in the world for 420 kN/320 kN porcelain

insulators for +800kV HVDC transmission lines, following successful

testing at STRI, Sweden; first consignment for PGCIL flagged-off.

R&D spend at Rs.650 Crore - 40% higher than the previous year; 29%

growth in BHELs IPR capital with 202 patents/copyrights filed taking the

total number to 857.

An understanding has been reached with Sheffield Forge masters

International Ltd., UK for technology transfer in the area of Forgings

required for advanced class Gas Turbines, Hydro Turbines and Thermal &Nuclear sets up to 1,000 MW rating.

MoU for TCA signed with Nuovo Pig none S.p.A Italy for Centrifugal

Compressors.

Equipment Performance:

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All 6 thermal power stations awarded with Govt. of Indias Meritorious

Productivity Awards are equipped with BHEL equipment, reinforcing the

reliability and quality of BHELs equipment.

BHEL built sets contributed 73% of the power generated in the country

during the year.

Other Initiatives:

HR initiatives - Manpower ramped up by 4,500 persons in 2008-09 as a

capability building measure

On-line project monitoring system introduced implemented in Dadri and

Mejia

In a bid to maintain complete transparency in its major contracts and

procurement, BHEL adopts Integrity Pact and signs MoU with

Transparency International India (TII)

PROJECTS EXECUTED

BHEL synchronized 4,182 MW of power plant equipment during the year

comprising Utility & Captive sets.

Utility sets totaling to 5,795 MW were put under Commercial Operation.

The installed capacity of BHEL supplied Utility sets went up to 87,646 MW

and BHELs share stands at 64% in the country's total installed capacity of

1, 38,175 MW.

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BHEL supplied 850 MW of power generating equipment during the year, to

customers in several countries including Bangladesh, Iraq, Libya, UAE,

Sudan, Indonesia, etc. In addition, three 230 kV substations were

commissioned in Bangladesh and Ethiopia, while 27 Transformers totalingto nearly 2,885 MVA were commissioned in Egypt, Bangladesh,

Afghanistan and Ethiopia.

BHEL reinforced its commitment to providing prompt and efficient

customer service aimed at facilitating uninterrupted power supply and

keeping power plants in good running condition.

During the year, BHEL overhauled 96 thermal utility/captive and 5 hydrosets.

CAPACITY AUGMENTATION & ASSET

MODERNISATION

In order to capitalize on the emerging opportunities in the countrys power

capacity addition programmed, it was decided to augment the manufacturing

capacity for Power Plant Equipment from 10,000 MW per annum to 15,000

MW per annum. All Schemes for capacity enhancement to 15,000 MW per

annum are proceeding apace.

BHEL made a capital investment of Rs.1,106 Crore during 2008-09 towards

augmentation of manufacturing capacity and facilities in manufacturingunits and for construction equipment at power project sites, as against

Rs.726 Crore invested during 2007-08, registering an increase in capital

investment of 52%.

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Focused attention was given on Rebuilding and Retrofitting of existing

facilities to enhance their life, accuracy and productivity through an

additional investment of over Rs.60 Crore.

The foundation stone for a new plant in Tirumayam in Pudukottai district of

Tamil Nadu laid for manufacture of boiler components.

HUMAN RESOURCE

An Integrated Human Resource Management System has been

introduced companywide.

Consequently, the entire organization is now on a common platform with

respect to master data of employees. This facilitates access to reports on a

real time.

In line with changing market requirements, the knowledge and skills of

BHEL employees are continuously upgraded. Each employee on an average

was exposed to developmental programmers for16.77 man days during the

year. In addition, 989

Customer personnel were trained at various units.

Manpower is being ramped up in a commensurate and timely manner and

around 4,500 persons were recruited in 2008-09.

Industrial Relations continued to remain cordial contributing to production

and productivity. Thrust on a participative culture was re-emphasizedthrough the apex level bipartite forum, Joint Committee.

A workshop on Tackling Business Challenges was organized to apprise

Joint Committee Members about the challenges being faced by BHEL and

38


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the role of the employees in overcoming these challenges. The workshop

focused on evolving strategies to meet the challenges and customer

commitments.

CORPORATE SOCIAL RESPONSIBILITY

As part of its Corporate Social Responsibility (CSR), during the year, BHEL

undertook socio-economic and community development programmes to

promote education, improvement of living conditions and hygiene in

villages and communities located in the vicinity of its manufacturing plants

and project sites spread across the country.

BHEL has joined hands with DVC and Coal India to set up an ITI which

will provide learning opportunities and fulfill the manpower needs of the

power sector. Aimed at providing high quality technical education and to

give a fillip to the economic and developmental needs of the region, the

Kabiguru Industrial Training Centre is being set up at Bolpur nearShantiniketan in West Bengal.

As part of social commitment, 4,139 Act Apprentices were trained in the

company.

QUALITY

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16 units of BHEL are moving ahead in the CII Exim Award Scheme for

business excellence as per the globally recognized model of European

Foundation for Quality Management (EFQM).

Continuing its winning streak, BHELs units at Bhopal and Jhansi and its

Power Sector Northern and Eastern Region construction divisions have won

Commendations for Significant Achievements/Strong Commitment to

TQM.

BHELs Insulator Plant at Jagdishpur bagged the Certificate of Merit

commendation as part of the R.K. Bajaj Quality Awards. Quality Circle teams from BHELs Trichy unit and Electro porcelains

Division, Bangalore won the highest Gold Awards at the International

Quality Circle Conference (ICQCC-2008) held at Dhaka, Bangladesh.

GREEN INITIATIVES

A MoU has been signed with BEL for formation of a JV to address Solar

Photovoltaic business and for setting up manufacturing facility for silicon

wafers, solar cells and modules.

In conformity with its concern for the environment, BHEL has been

contributing to the national effort for developing and promoting renewable

energy based products on a sustained basis.

During the year, 47 Solar PV powered systems (5.94 kWp each) were

installed for dispensing petrol at HPCL retail outlets, located all over India.

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These systems have enabled HPCL to illuminate and run the company-

owned and operated petrol pumps smoothly irrespective of Grid power

outage.

ACCOLADES

Continuing its tradition of bagging prestigious national/international awards,

the organization and its employees won several awards during the year.

Notable among these included; for the third consecutive year, BHELs

performance was recognized by the prestigious publication Forbes

Asia, which featured BHEL in its fourth annual Fabulous 50 list of the

best of Asia-Pacific's publicly-traded companies with revenues or market

capitalization of at least US$ 5 billion, having highest long-term profitability

and sales & earnings growth. Significantly, BHEL is the only Indian PSU to

figure on the elite list, since the list was conceived.

Prime Ministers Shram Awards, Vishwakarma Rashtriya Awards andNational Safety Awards.

BHEL and its units were awarded 4 ICWAI Awards for Excellence in

Cost Management for 2008 the highest among both public and

private sector companies.

BHEL won EEPC's Top Export Award for the eighteenth year in

succession. The company was awarded the 2nd position in the SCOPE Best

Enterprise Award for initiatives taken to develop women employees.

BHELs Electro porcelains Division, Bangalore received the Greentech

Environment Excellence Silver Award 2008.

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BHEL was awarded the first DSIJ (Dalal Street Investment Journal)

Most Investor Friendly PSU Award for 2009.

For commendable contribution and achievements over several decades of

excellence in the industry, Mr. K. Ravi Kumar, CMD, BHEL, was conferred

the ENERTIA Individual Contribution Award in Thermal Power

Sector 2008.

In recognition of his leadership in the financial field, Mr. C.S. Verma,

Director (Finance), BHEL, was conferred the Best Performing CFO

Award 2008 in the Capital Goods and Infrastructure sector, by CNBC-

TV18. Mr. Verma was also awarded the TOP RANKERS ExcellenceAward 2007-08 for Best Finance Professional.

2.5 Product Range & Customers of BHEL

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Products:

Power

Air Preheaters

Boilers

Control Relay Panels

Electrostatic Precipitators

Fabric Filters

Fans

Gas Turbines

Hydro Power Plant

Piping Systems

Pulverizes

Pumps

Seamless Steel Tubes

Soot blowers

Steam Generators

Steam Turbines

Steam Turbines

Turbo generators

Valves

43
http://www.bhel.com/product_services/product.php?categoryid=13&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=13&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=141&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=124&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=107&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=11&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=106&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=14&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=130&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=102&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=87&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=84&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=83&link=Powerhttp://www.bhel.com/product_services/category.php?categoryid=89&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=129&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=62&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=62&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=81&link=Powerhttp://www.bhel.com/product_services/category.php?categoryid=95&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=13&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=141&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=124&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=107&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=11&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=106&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=14&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=130&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=102&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=87&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=84&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=83&link=Powerhttp://www.bhel.com/product_services/category.php?categoryid=89&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=129&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=62&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=62&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=81&link=Powerhttp://www.bhel.com/product_services/category.php?categoryid=95&link=Power


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Industry

Capacitors

Ceralin

Compressors

Desalination Plants

Diesel Generating Sets

Industrial Motors & Alternators

Gas Turbines

Oil Field Equipment

SolarPhotovoltaic

Power Semiconductor Devices

Seamless Steel Tubes

Soot blowers

Steel Castings & Forgings Steam Generators

Steam Turbines

Turbo generators

Valves

Transmission

Bushings

Capacitors

Control Relay Panels

44
http://www.bhel.com/product_services/category.php?categoryid=155&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=127&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=88&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=10&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=122&link=Powerhttp://www.bhel.com/product_services/category.php?categoryid=51&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=14&link=Industryhttp://www.bhel.com/product_services/category.php?categoryid=48&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=38&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=38&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=121&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=83&link=Industryhttp://www.bhel.com/product_services/category.php?categoryid=89&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=103&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=129&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=62&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=81&link=Industryhttp://www.bhel.com/product_services/category.php?categoryid=95&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=125&link=Transmissionhttp://www.bhel.com/product_services/category.php?categoryid=155&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=124&link=Transmissionhttp://www.bhel.com/product_services/category.php?categoryid=155&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=127&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=88&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=10&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=122&link=Powerhttp://www.bhel.com/product_services/category.php?categoryid=51&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=14&link=Industryhttp://www.bhel.com/product_services/category.php?categoryid=48&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=38&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=121&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=83&link=Industryhttp://www.bhel.com/product_services/category.php?categoryid=89&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=103&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=129&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=62&link=Powerhttp://www.bhel.com/product_services/product.php?categoryid=81&link=Industryhttp://www.bhel.com/product_services/category.php?categoryid=95&link=Industryhttp://www.bhel.com/product_services/product.php?categoryid=125&link=Transmissionhttp://www.bhel.com/product_services/category.php?categoryid=155&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=124&link=Transmission


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Dry-type Transformers

Energy Meters

HVDC Transmission System

Insulators

Switchgears

Power Semiconductor Device

Power System Studies

Control Shunt Reactor

Transportation

Electric Rolling Stock

Electrics for Rolling Stock

Electrics for Urban Transportation System

Non Conventional Energy Source

Mini/Micro Hydro Sets

Solar Lanterns

SolarPhotovoltaic

Solar Water Heating Systems

Wind Electric Generators

R&D Products

45
http://www.bhel.com/product_services/product.php?categoryid=156&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=60&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=58&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=126&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=123&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=59&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=158&link=Transmissionhttp://www.bhel.com/product_services/category.php?categoryid=17&link=Transportationhttp://www.bhel.com/product_services/category.php?categoryid=43&link=Transportationhttp://www.bhel.com/product_services/product.php?categoryid=65&link=Transportationhttp://www.bhel.com/product_services/product.php?categoryid=148&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=37&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=38&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=38&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=33&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=80&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=156&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=60&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=58&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=126&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=123&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=59&link=Transmissionhttp://www.bhel.com/product_services/product.php?categoryid=158&link=Transmissionhttp://www.bhel.com/product_services/category.php?categoryid=17&link=Transportationhttp://www.bhel.com/product_services/category.php?categoryid=43&link=Transportationhttp://www.bhel.com/product_services/product.php?categoryid=65&link=Transportationhttp://www.bhel.com/product_services/product.php?categoryid=148&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=37&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=38&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=33&link=NCEShttp://www.bhel.com/product_services/product.php?categoryid=80&link=NCES


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Fuel Cells

Surface Coatings

Automated storage & Retrievals

Load Sensors

Transparent Conducting Oxide

Customers:

DOMESTIC

Punjab State Electricity Board (PSEB)

UP State Electricity Board (UPPSEB)

National Thermal Power Corporation (NTPC)

Apollo Tyres (AT)

National Hydel Power Corporation (NHPC)

Andhra Pradesh State Electricity Board (APSEB)

West Bengal State Electricity Board (WBSEB)

Indian Oil Corporation Ltd. (IOCL)

MP State Electricity Board (MPSEB)

Orissa State Electricity Board (OSEB)

Karnataka State Electricity Board (KSEB)

Birla Cement (BC)

Birla Tyres (BT)

Bokaro Steel Plant (BSP)

46
http://www.bhel.com/product_services/product.php?categoryid=159&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=160&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=161&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=161&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=162&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=163&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=159&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=160&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=161&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=162&link=RDhttp://www.bhel.com/product_services/product.php?categoryid=163&link=RD


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Grasim Industries

Goa Ship Yard (GSY)

Haryana State Electricity Board (HSEB)

Himachal Pradesh State Electricity Board (HPSEB)

Indian Navy (IN)

Delhi Vidyut Board

DLW, Varanasi

Dept. of Atomic Energy

Essar Oil Siemens, New Delhi

Kirloskar

JK Cement

Scooter India Ltd.

INTERNATIONAL

M/S Ebara Corporation, Japan

M/S Zelco Incorporation, USA

Simmco International

Siemens, Germany

Siemens, Singapore

Balaji Project, Iraq

KYCR Coil Industries, Bangladesh

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Investment

(Rs.Crore)

FINANCIAL PERFORMANCE During 2008-09, BHEL recorded the highest-ever turnover of Rs.27, 505

Crore, up by29%, compared to Rs.21, 401 Crore of the previous year.

The company's Net Profit (PAT) went up by 6% at Rs.3, 039 Crore against

Rs.2, 859 Crore in the previous fiscal. Profit before Tax (PBT) also rose by

2% at Rs.4, 530 Crore, during the year. With this, BHEL maintained its

track record of earning profits uninterruptedly since 1971-72. The growth in PBT and PAT after neutralizing the impact of wage revision

provision is 21% and 25%, respectively.

An interim equity dividend of 90% on the enhanced post-bonus equity

capital has already been paid for fiscal 2008-09.

Earnings Per Share (EPS), during the year, stood at Rs.62.1 an increase of

6% over 2007-08. Economic Value Added (EVA) rose 8% at Rs.1, 955 Crore over that of Rs.1,

810 Crore in 2007-08.

Net Asset Value (NAV) per share increased to Rs.263.3, from Rs.220.1 in

the previous year, reflecting the intrinsic strength of the company, while

Value Added per employee went up to Rs.21.24 lakh from Rs.19.07 lakh in

2007-08.

Total export turnover (Physical + Deemed) was also at an all-time high of

Rs.8, 406 Crore during the year, accounting for over 31% of the companys

turnover during the year.

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This performance is significant in the backdrop of the subdued economic

environment in the country and demand contraction in the industrial

segment, adversely affecting the entire manufacturing sector. During the

year, provisioning of Rs.1, 728 Crore has been done for the impending wagerevision (due w.e.f. 1.1.2007) which has impacted the net profit of the

company. The company withstood all these pressures because of its inherent

strength and strong fundamentals.

ORDERS INFLOW

Operating in an intensely competitive environment, BHEL obtained a record

order inflow of Rs.59, 687 Crore, during the year. Fiscal 2008-09 has ended

with a cumulative order book for execution in 2009-10 and beyond, of Rs.1,

17,000 Crore the highest-ever in physical as well as financial terms.

In the Power Sector business segment, BHEL secured orders worth Rs.44,

407 Crore, for 17,020 MW of power plants. Major highlights of the yearincluded the first-ever orders for 800 MW supercritical boilers, 660 MW

supercritical turbine generator sets and largest number of orders for 8 sets of

600 MW.

In the Industry Sector business segment also, BHEL secured record orders

worth Rs.10,254 Crore - a growth of 30% over the previous year, in Captive

Power, Transportation, Power Transmission, Oil & Gas and other industrial

segments.

Transmission Projects group, after its consolidation during 2007-08, has

turned around and achieved highest-ever revenue and profits.

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2.7 Future Prospects of the Company:

The Power Sector in India continues to exhibit growth momentum.

In line with the Capacity and Capability enhancement strategy adopted by

the company, BHELs manufacturing capacity expansion from 10,000 MW

p.a. to 15,000 MW p.a. is proceeding apace and plans are afoot to hike this

further to 20,000 MW by 2011-12.

Capability building initiatives being pursued by the company include,

forging strategic alliances by way of JVs to leverage equipment sales in the

Supercritical technology domain, JVs for technology sourcing, JVs for

sourcing critical inputs, equipment, etc. Such alliances include

partnerships with NTPC, NPCIL, TNEB, KPCL, GSECL, KEL, BEL,

HEC and PTC.

To deal with the competition in the domestic market, BHEL has introduced

new ratings of 150 MW, 270 MW, and 525 MW, 600 MW, in the sub-

critical segment and 660 MW and 800 MW unit sizes in the supercritical

segment. Further, the company is introducing new technologies, like

Advanced class Gas Turbines, IGCC, etc., for which orders have alreadybeen received.

To pursue inorganic growth, tie-ups are being explored in the areas of

Transmission with focus on 765 kV and 1200 kV segments; Transportation

with focus on IGBT-based propulsion systems, metro coaches, electric locos

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etc.; Photovoltaic with focus on manufacture of silicon wafers, solar cells,

modules and setting up a Greenfield PV project, and in Nuclear with focus

on the reactor side, for which cooperation with GE-Hitachi to implement

projects being pursued by NPCIL. Bharat Heavy Plate & Vessels (BHPV),engaged in the manufacture of industrial boilers and process equipment, has

been acquired as a 100% subsidiary.

In order to remain cost competitive and to retain market share, capability-

building initiatives, through Design to Cost (DTC), Lean Manufacturing

(Lean) and Purchase & Supply Management (PSM) tools have been

undertaken for identified products at selected units of BHEL. International business will be further enhanced by focusing on

consolidation in existing international markets as well as entering new

markets. The company is thus future ready and is on track to becoming an

Rs.45, 000 Crore turnover company by 2011-12 as per the Strategic

Plan of the company.

Contribution to Indian Power Sector

52

0

105000 140760

209160

0

50000

100000

150000

200000

250000

300000

1947 2007 2012

(Projected)

2017

(Projected)

Others

BHEL

1300

MW

135,000

204,000

290,500

Every 3 out of 4home in India islighted by BHELmanufacturedequipment.


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2.8 Plant Overview-HEEP, BHEL, Haridwar.

BHELHaridwar

CFFP PCRIHEEP

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HEEP

Total Area :3500 Acre

Factory Area :700 Acre

Facilities & Machine Tools : Above 4000 Nos. No of Employee :5990 (25-07-2007)

Residential Houses : 6186 Nos.

Schools & Colleges :17 + 1 (Bal Bhavan)

Hospital & Dispensaries :180 Bed Hospital, 6

Dispensaries and 1

Occupational Health Centre

Adopted Villages :4

Ladies Welfare Centers :9 + 1 Charitable Dispensary

Sports Complex :2 (Stadium, Khel Bhawan)

Club & Community Centers :4 + 3 (Shivalik Nagar)

Barat Ghar :2

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Organizational chart (HR) of HEEP, BHEL

55

GM HR

AGM (HR-NEX) AGM (HR-LLX) AGM (HRDC) DGM (TA)

Sr. Mgr (Non ExecutiveEstablishment)

DGM (Recruitment)

Mgr (Policy)

SM (IT& sports,Contract Mgmt)

M (IR)

M (contract Mgmt)

M (Rajbhasha)

DM (Law)

SDGM (TWX)

SDGM (ET, ST, VT)

DGM (ETH, Adm)

DM (EmployeeDevelopment)

Mgr (Estate)

Mgr (HouseAllotment)

Mgr (Horticulture)

MGR (ElectricalMaintenance)

Mgr (CivilMaintenance)

Mgr (Establishment,Terminal Benefits)


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Functioning of various cells of Human

Resource in BHEL, Haridwar:

Industrial Relation Cell: It maintains records of unions and handles

the union disputes through negotiation, conciliation, arbitration through

bodies like joint committee, plant council & shop council.

Rajbhasha cell: It lays emphasis on promotion of Hindi and sees that

in various departments work is done in Hindi language. For this it conducts

programmes & meetings of heads of departments where they communicate

in Hindi.

Welfare Department: It sees the strict compliance with Factory

Welfare Act, 1948. There is also representative of welfare department in

shop councils. It is the coordinator between welfare of employees, various

acts regarding it & the management. It helps in solving disputes & checking

of rumors between management and employees.

Operation Cell: In these cell personnel records & files are maintained

of the non-executives working inside the plant.

Canteen: According to the Factory Act, where more than 200 employees

are working, it is necessary to provide canteen services. So, there are

canteens inside and outside the plant at suitable locations which provide

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DEPARTMENTS

Major departments in HEEP unit of BHEL, Haridwar are as follows:

1. Engineering

2. Engineering and Commercial

3. Personnel and Administration

4. Works Engineering And Services

5. Finance

6. Electric Machine Manufacturing7. Turbine Manufacturing

8. Fabrication and Welding Technology

9. Quality Management

10.Technology and Tool Room

11.Insulation System and GRI

12.Material Management

13.Defense Project

14.Business Development

15.Productivity and TQM

16.Resource Planning and Technology Development

17.Quality Surveillance

18.Material Planning and Inventory Control

19.Gas Turbine Project

20.Kraft Weak Union Collaboration

21.Vigilance

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PLANT PREMISES

Sl.

No.

Area/Block Specifications

1. Block-I Electrical Machines

2. Block-II Fabrication Block

3. Block-III Turbines & Auxiliary Block

4. Block-IV Feeder Block

5. Block-V Fabrication

6. Block-VI Fabrication

7. Block-VII Stamping& Dias Manufacturing

8. Block-VIII Wood working

9. Block-IX Drilling & Welding

10. Services Plant TPS; PGP Plant; Compressor House;

Oxygen Plant; 132 KV substation

11. Motor Transport Fleet of vehicles for transport service

12. Telecommunication Telephone services

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13. Hydro Turbine Lab Testing of turbine models

14. HRDC Training to employees; VTs;

Apprentices, etc.15. Engineering Design & Drawings of all products

16. Computer Centre IT services

17. CPL (Central Plant Lab) Testing of component

18. CFFP (Central Foundry Forge

Plant)

Steel melting shop; Steel Foundry;

Services plants, etc.

19. Occupational Health Centers (At

HEEP & CFFP gate )

Medical services to employees

2.9 SWOT Analysis of BHEL:

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2.10 Welfare Activities in BHEL, Haridwar:

The companys belief that no grievance is too small, no employee too insignificant

and no challenge too great had led to the involvement of a harmonious Industrial

Relation system in the company by the active involvement of all the employees

and the trade union.

Besides the monetary remunerations to the employees, the company also has

various schemes for welfare of the employees providing adequate facilities in the

areas of the education, medical, housing, canteens, sports, cultural activities, etc.

The companys township at the manufacturing units has schools where most of the

children of the employees study. Medical facilities have been provided in the

township through full fledged hospitals, clinics and peripheral dispensaries,manned by qualified medical staff.

The company has been encouraging sports & cultural activities for the employees

in order to develop a sense of healthy competition and social interaction among the

61

Strengths

Threats

Weaknesses

Opportunities

Overheads are increasingcontinuously.Govt. contract based products.Strong unionism.Surplus work force.

Global competitiveness will help in

export.Navratna status is helping in moreautonomous decision making.Product line diversification.Building strong employer-employeesrelationships.

Privatization of the core areas of

BHEL.Increased competition by Siemens,ABB, etc.Lesser demand domestically.

Large HR availability. BHEL has large

manufacturing plants. Flexible product mix. Large capital investment.


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employees. The annual inter-unit sports meet by the rotation in units has heralded

an era of social progress in the company. Kala-Milan an annual meet of music,

dance and variety of entertainment in which BHEL employees from all the units

take part and show their talents.

The township also has clubs and community centers which are for the social needs

of the employees.

TYPES OF WEFARE SERVICES

On the whole, the welfare activities are basically of three types:

1.Economical services:These provide some additional economic security over & above wages or

salaries such as pension, life insurance, etc. It will reduce the dissatisfaction

among employees in the area of economic security.The BHEL also has interest-subsidy scheme for house loans, vehicle loans, etc.

This is a provision to raise the standard of living of the employees. Similarly, there

are other employee benefits like LTC, Railway Concession Ticket facility,

Retired Employees Contributory Health Scheme, Death Relief Fund, etc.

2. Recreational Services:The employees need a break from their daily routine. Therefore they are provided

with many recreational facilities like sports & games. The indoorgames like table

tennis in the common room, organizing matches between employees, reading

rooms, libraries, etc are there for recreation of the employees.

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3. Facilitative services:

These are some facilities for the convenience of the employees & better working

conditions-

a) Canteen, Rest Rooms and Lunch Rooms:

Unless proper facilities for tea & food, rest rooms, etc are available, the working

efficiency of the employees will go down. Hence, almost all the companies today

provide canteen services where food & other refreshments can be obtained at fair

prices.

b) Housing Facilities:

The first & foremost welfare service provided by BHEL to its employees is the

facility of township. The BHEL complex is spread over an area of 5320 acres

(Plant-700 acres, Township-1250 acres and Afforestation-1146 acres). The

township is having around 6186 Quarters out of which 5248 are regular or

permanent and 938 are non-regular.

Regular Quarters:Type-I 172

Type-II 3590

Type-III 1034

Type-IV 364

Type-V 63

Type-VI 8 (G.Ms and above)

Project House 1 (E.D.)

Medical Officers (Type-III) 16

Total: 5248

Non-Regular Quarters:

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Accommodations 364

Supervisor Hostel 56

Workers Hostel 207 (183 sector 3 + 24 sector 6)

HSCL quarters 101Labor Quarters 106

Consultant Quarters 104 (56 sector 5 + 48 sector 4)

Total: 938

c) Medical Facilities:

One of the major welfare service provided to employees is the medical facility.

The complete medical services for a scratch to a major operation is free for

the employees, their spouse, dependant parents and children which implies that

complete consultation, investigation and other services are totally free of cost.

Round the clock emergency is taken care of.

Number of Hospitals, beds & Dispensaries:

Main Hospital 1

Beds 200

Health Center 1

Dispensaries 9 (1 each in Sector I, II, III, IV, V, VI, HSCL colony,

Main gate (HEEP), Main gate (CFFP)

Manpower:

It consists of doctors in almost all specialized branches like medical, surgery, ENT,

etc.

Doctors 54

Para medical staff 123

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Ministerial staff 21

Executives 02

(Dy. Manager Civil-1)

(Administrative officer-1)Class IV staff 102

BHEL is spending around 5 crores per annum on medical facilities.

d) Washing Facilities:It is necessary to provide washing facilities which is conveniently accessible to all

workers. It should be clean, properly separated and screened for male & female

employees.

e) Educational Facilities:

This facility is provided by the organization to the employees for the education of

their children. There are many schools within the BHEL campus.

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ALLOWANCESi) Compensatory Allowances:

Name of City Rate of C.C.A

Mumbai, Delhi, Chennai, 6% of pay

Calcutta, Hyderabad, Bangalore

& others

Bhopal, Allahabad, Lko, Jabalpur, 45% of payPatna, Baroda & other cities declared

By Central Govt. as BI class cities

From time to time for the purpose

of C.C.A.

Chandigarh, Srinagar, Amritsar, 35% of pay

Bhilai & other cities (BI & B2)

ii) Location Allowances:

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Non- executive employees up to AVI category working in Haridwar, Jhansi,

panipat, Jagdishpur, Rudrapur & Gaindual will be entitled to the payment of this

allowance at the rate of 3.5% of basic.

iii) Late Night Snack Allowances:

Employees extending beyond midnight are paid this allowance at the rate of Rs.

15/- per night.

iv) Allowances for nursing staff:

a) Mess Allowances: All Matrons/Astt. Matrons/Sister/Nurses GI/GII are entitled

Rs. 50/-.b) Free Unfurnished Accommodation: All Matrons/Asstt. Matrons/Sister/

Nurses Gr. I/ Gr. II in the medical department are entitled for free unfurnished

accommodation.

c) Free Electricity: All Matrons/Asstt. Matrons/Sisters/Nurses Gr.I/Gr II in the

medical department are entitled for free electricity as per the scale given-

Matrons/Asstt. Matron upto 20 units per monthSisters up to 15 units per month

Nurses Gr. I/II up to 10 units per month

v) Dearness Allowances:

With effect from 01-01-1997, D.A. is granted to compensate the price increase

above AICPI 1708, to which the revised salary grades relate.D.A. on HPL: D.A. during half pay leave is to be computed with reference to the

basic pay actually drawn.

vi) House Rent Allowances:

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Subject to other conditions in the rules, employees who have not been provided

accommodation by the company are entitled to HRA at the following w.e.f.

01.01.2000.

City/Class of Cities Rates of HRA per month

Mumbai, Delhi, Chennai, Calcutta 30% of pay

Other A class cities 25% of pay

BI and B2 class cities 15% of pay

C class/Unclassified 10% of pay

SCHEMES

1. Group Savings Linked Insurance Schemes (GSLIS):

The scheme is applicable to all between the age of 18 & 58 years who are drawing

pay in the salary grades of the company in the pay scales of the Govt. / Public

Sector undertakings in the case of deputations including companys own trainees

but excluding casual / temporary / adhoc, those on daily wages and trainees /apprentices under the apprentices Act, 1961. The coverage commences from the

time of joining service to the end of calendar day of the service.

2. Employees Deposit Linked Insurance Scheme (EDLIS):

This is a group insurance scheme operating with Life Insurance Corporation of

India w.e.f. 01.03.90. This scheme is a leer of the statutory EDLI Scheme 1976,

applicable to all the provident fund subscribers.It confers a uniform coverage of Rs. 37000/- to all categories of employees of the

company.

3. Housing Loan Group Insurance Scheme:

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In the event of death of the borrower employee covered under the scheme, the

housing loan and interest thereon outstanding on the date of death subject to a max.

of Rs. 5.5 lakh will be paid by LIC to BHEL. This in turn will adjust it against

HBA and interest there on outstanding on the date of death of employee and willpass on the same to the lending agency in case the loan has been taken from any

ending agency.

4. Accident/ Medical insurance policies scheme:

a) Group Personal Accident Insurance Policy:

With effect from Feb, 1987, it is being operated at the unit covering all executives

from salary grade E4 and above. It is providing maximum coverage of one lakh forinjury, disablement or death of a member.

b) Overseas Medical Insurance Scheme:

It is in operation with effect from March 1987 on an individual basis to the officers

visiting foreign countries in their cynical capacity according to the duration of the

visit.

c) Individual Personal Accident Insurance Policy:With effect from Sep 1989, it is operative for all categories of employees posted,

visiting, passing through areas of Punjab, Assam & Jammu & Kashmir.

5. Death Relief Fund Scheme:

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The BHEL employees DRF Scheme gives monetary help to the families of the

members who die while in service of the company. Scheme covers all categories of

employees who have voluntarily enrolled themselves as members of the scheme. A

committee formed by respective unit management administers the scheme.The employees contribute Rs. 100 per member at the death of any constituent

member. Death will be notified by the personnel department and the payment will

be made within 45 days of the death.

ADVANCES

1. Cycle Advance:

An advance for purpose of cycle is admissible once every five years to all

employees other than temporary and casual employees who have completed at

least one year of service in the company.

The amount of advance will be Rs. 800 or anticipated cost of the cycle whichever

less is.2. House Building Advance and Interest-Subsidy Scheme:

No Company HBA to be sanctioned till further orders from corporate officer. HBA

will be granted to company employees on regular establishment with not less than

five years of continuous service. HBA shall be admissible for construction,

acquisition of a house, ownership of a flat in any place of their choice in India.

3. Vehicle Advance:An advance for the purchase of motor car, motor cycle/scooter is admissible only

to employees who are BHEL provident fund and who have been subscribing to it

for at least one year and have been working for at least one year in the company.

4. Festival Advances:

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Definition of Factory: (sec 2m)

Whereon 10 or more workers are working or were working on any day of the

preceding twelve months, and in any part of which a manufacturing process is

being carried on with the aid of power or is ordinarily so carried on;

OR

Whereon 20 or more workers are working or were working on any day of the

preceding twelve months, and in any part of which a manufacturing process is

being carried on without the aid of power or is ordinarily so carried on.

The term Factory does not include

Mines : Indian Mines Act, 1952 Mobile units belonging to armed forces.

Hotel and restaurants or food courts.

Provisions regarding the welfare of the workers in Factory Act,

1948:

Washing Facilities

-Separate & adequate screened facility for male & female workers

-Clean & easily accessible.

Facilities for storing & drying clothes

Facilities for sitting

First aid appliances

-boxes must not be less than 1 for 150 workers

-Box shall be kept in charge of separate person who has certificate in F-A

treatment

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-more than 500 workers shall maintain an ambulance room with qualified

nurses & prescribed equipments.

Canteen

-The expenditure should not be taken into account for fixing the price-compulsory for factories employing more than 250 workers.

Shelters, restrooms and Lunch rooms

-compulsory for factories having more than 150 workers

-lighted, ventilated & maintained

Crches

-factories where more than 30 woman workers are employed shall providerooms for the care of their children under the age of 6

-necessary intervals shall be provided to take care of children.

Welfare officers

-compulsory for factories having more than 500 employees

-duties, qualification, etc. will be prescribed by state govt.

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Keeping this in view almost all big organizations today conduct employee

satisfaction surveys to gauge their satisfaction level. This project is a pilot for the

employee satisfaction survey conducted by BHEL for their employees. The report

presents the main findings of the research study done in Heavy ElectricalsEquipment Plant (HEEP) unit of BHEL, Haridwar in order to know the satisfaction

level of the employees from the various Employee Welfare Activities

undertaken in BHEL.

The research was carried out mainly through a questionnaire. A lot of forethought

went into the design of the questionnaire. The questionnaire was designed such that

it consumes as less time as possible and is answered with ease. A standard five

point Likert scale was used throughout the questionnaire in order to measure the

responses.

The satisfaction level of the employees from welfare activities was mainly

measured across three parameters: Facilitative services, Economical services &

Recreational services. The employees were also encouraged to give suggestions

and feedbacks in the two open-ended questions included in the questionnaire in

order to avoid biased responses. The number of respondents was 60. The sample

was a homogenous mix of employees randomly selected from various

departments. The analysis of the data has been done with the help of pie-charts.

Before switching over to research study, the primary knowledge about theorganization and the welfare activities has been done.

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After the analysis, it was found that most of the employees of BHEL are satisfied

and they look forward to few improvements in some of the activities for better

working conditions.

3.2 Literature Review:

1. Behling, F., 2008-07-31 "Theory and Empirical Evidences of Employee

Welfare"Paper presented at the annual meeting of the American Sociological

Association Annual Meeting

Publication Type: Conference Paper/Unpublished Manuscript

Abstract: Globalization and neoliberalism fundamentally reconfigured relations

between economy, society and state in recent years. Especially for welfare, this

increased demands for options to traditional governmental provisions. One

possibility is the partial transfer of welfare responsibilities to corporations.

Corporate welfare, it will be argued, subsumes and defines such activities whichenhance and secure the wellbeing of employees. Wellbeing will be understood as

including psychological, socio-psychological, and physiological issues of an

employees life. This broad definition, firstly, is possible as corporate welfare

situates itself at the margins of economy, state and society. Secondly, it focuses on

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less welfare recipients than states do and, hence, can provide more individualized

benefits.

Various propositions with i.e. Corporate Social Responsibility, De-

commodification or Managerial Capitalism have been made to explain economic,sometimes non-profit oriented, behavior - but unsatisfactorily in their approach. In

this presentation, I briefly outline a theory of corporate welfare and present results

from the British Workplace Employee Relations Survey 2004. The simplicity and

feasibility of corporate welfare programs will evolve, as non-monetary

implementations like honesty or flexible job design are the greatest contributing

factors to wellbeing. I will try to assess the possibility of positioning corporate

welfare as an option to traditional welfare states.

2. Dickson, Tracey J; Huyton, Jeremy Customer service, employee welfare

and snow sports tourism in Australia.

Article Type: Research paper

Abstract:

Purpose The aim of this paper is to explore the extent to which employee

welfare and human resource management impacts on customer services.

Design/methodology/approach Data were collected from a number of

operational staff of the Mount Kosciusko ski fields in Australia. The staff was

selected at random and comprised both permanent local staff and seasonal staff,

and completed a self-administered questionnaire.

Findings The results highlight the challenging living conditions of many

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seasonal workers on whom the industry depends and at the organizational level this

research demonstrates a need for effective management skills and employment

strategies that reflect the needs of seasonal staff. As was shown, there is a

relationship between staff satisfaction, camaraderie and customer satisfaction.

Research limitations/implications To better gauge the extent to which this

research is applicable to all front line employees this study could be replicated in

such locations as islands or isolated resorts with comparisons made with the same

labor in established tourism resorts. The limitation of this study would be the

specific mountain location in which it was conducted, and the size of the sample.

Practical implications This study clearly identifies an area of human resource

management which needs to be considered. When a region relies heavily on

seasonal staff their welfare should be of prime consideration, because

disgruntled staff translates directly into disgruntled customers.

3. Mishra, Shobha; Dr Bhagat, Manju Principles for successful

implementation of labor welfare activities.

Abstract: The success of welfare activities depends on the approach which has

been taken into account in providing such activities to the employees. Welfare

policy should be guided by idealistic morale and human value. Every effort should

be made to give workers/ employees some voice in the choice of welfare activitiesso long as it does not amount to dictation from workers.

There are employers who consider all labor welfare activities as distasteful legal

liability. There are workers who look upon welfare activities in terms of their

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3.3 Objectives of the study:

To know the satisfaction level of the employees from various facilitative

se

Documents

Employee Welfare Activities in Bhel