COMPANY’S PROFILE – POWER GENERATION

INTRODUCTION

Established in 1975, NTPC, the largest power company the country has been consistently powering of the growth of India. An ISO 9001:2000 certified company; it is world’s 3rd largest thermal power generator and second most efficient capacity utilization. It feeds a fourth of India's electricity needs or as we say "NTPC lights up every fourth bulb in the country". It is one of the most efficient power companies in India, having operations that match global standards.

Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilization and coal mining. NTPC ranked 337th in the

PROJECT REPORT

ON MCKINSE

Y’s 7-S FRAMEWORK OF

NATIONAL

THERMAL POWER CORPORATION

LIMITED

‘2012, Forbes Global 2000’ ranking of the World’s biggest companies. NTPC became a Maharatna company in May, 2010, one of the only four companies to be awarded this status.

With this, NTPC reaffirms as one of the very Best Employers in India, second only to Google and Intel. NTPC has also been ranked first amongst PSUs, 1st amongst large organizations (more than 10,000 employees) and 1st amongst manufacturing and production industries. Shri S.P. Singh, Director (HR) and Shri S. Roy, Executive Director (HR), NTPC Ltd. received the award.

The total installed capacity of the company is 45,548 MW (including JVs) with 18 coal based and 7 gas based stations. 7 Joint Venture stations are coal based and 8 renewable energy projects. The company has set a target to have an installed power generating capacity of 1,28,000 MW by the year 2032. The capacity will have a diversified fuel mix comprising 56% coal, 16% Gas, 11% Nuclear and 17% Renewable Energy Sources including hydro. By 2032, non fossil fuel based generation capacity shall make up nearly 28% of NTPC’s portfolio. Towards this goal, NTPC has adopted a multi prong strategy which includes Greenfield projects, Brownfield projects, joint ventures and acquisition of existing plants route. Besides, the corporation has also adopted the diversification strategy in related business areas such as coal mining, power trading, and manufacturing etc to ensure robust growth of the company.

NTPC has been operating its plants at high efficiency levels. Although the company has 17.73% of the total national capacity, it contributes 25.91% of total power generation due to its focus on high efficiency.

NTPC has 70% Government holding of the equity share capital. NTPC is not only the foremost power generator; it is also among the great places to work. The company is guided by the “People before Plant Load Factor” mantra which is the template for all its human resource related policies. NTPC has been ranked as “6th Best Company to work for in India” among the Public Sector Undertakings and Large Enterprises for the year 2014, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.

SERVICES OFFERED:

1) POWER GENERATION2) POWER DISTRIBUTION3) POWER TRANSMISSION4) CONSULTANCY SERVICE5) ASH BUSINESS6) COAL MINING7) COAL TRADING

MCKINSEY’S 7-S FRAMEWORK OF NTPC LTD. IN POWER GENERATION SEGMENT

STRATEGY

Strategy of the Company

NTPC is ramping up its generation capacity and is expected to increase its market share from about19% today to around 25% by 2017. The capacity growth of will enable it to maintain its position as the market leader. Today, the installed capacity is 30,644 MW, including 2,294

MW in joint ventures. During the 11th plan, NTPC has already commissioned 3,240 MW capacity .Capacity aggregating to 17,930 MW consisting of 45 units, including 8 super-critical units of 660 MW each, is under construction at 18 projects situated in 16 locations. Capacity of 3,022 MW is under the award process. For the 12th plan, company has started the process of capacity addition in right earnest. NIT is to be issued for 5,940 MW capacities through bulk tendering of 9 units of 660 MW each by mid-October 2009.Feasibility reports have been approved for 11,450 MW capacities for further processing and for an additional 10,100 MW capacity, feasibility reports are ready and are in the process of approval. Company is aiming to place orders for the 12th plan projects during the next 2 years. Infrastructure work has already commenced in several 12th plan project sites. Thus, NTPC is fully geared to become a 75,000 MW Company by 2017. In other words, it is going to increase its generation capacity by two and half times between now 2017.With the11th plan projects under execution, the 12th plan projects in the process company is targeting to achieve 10% or double-digit growth in generation every year.

Diversified Growth

 NTPC‟s quest for diversification started with its foray into Hydro Power. It has, since then, been moving towards becoming a highly diversified company through backward, forward and lateral integration .The company is well on its way to becoming „an Integrated Power Major‟, having entered Hydro Power,Coal Mining, Power Trading, Equipment Manufacturing and Power Distribution. NTPC has made longstrides in developing its Ash Utilization business. In its pursuit of diversification, NTPC has also developed strategic alliances and joint ventures with leading national and international companies.

a) Hydro Power:

In order to give impetus to hydro power growth in the country and to have a balanced portfolio of power generation, NTPC entered hydro power business with the 800 MW Koldam hydro projects in Himachal Pradesh. Two more projects have also been taken up in Uttarakhand. A wholly owned subsidiary, NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW.

b) Coal Mining:

In a major backward integration move to create fuel security, NTPC has venture dinto coal mining business with an aim to meet about 20% of its coal requirement from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC, including 2blocks to be developed through joint venture route. Coal Production is likely to start in 2009-10.

c) Power Trading:

'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly owned subsidiary was created for trading power leading to optimal utilization of NTPC‟s assets. It is the second largest power trading company in the country. In order to facilitate power trading in the country, National Power Exchange Ltd.‟, a JV between NTPC, NHPC, PFC and TCS has been formed for operating a Power Exchange.

d) Ash Business:

NTPC has focused on the utilization of ash generated by its power stations to convert the challenge of ash disposal into an opportunity. Ash is being used as a raw material input for cement companies and brick manufacturers. NVVN is engaged in the business of Fly Ash export and sale to domestic customers. Joint ventures with cement companies are being planned to set up cement grinding units in the vicinity of NTPC stations.

e) Nuclear Power:

An agreement had been signed between Nuclear Power Corporation of India Ltd (NPCIL) and NTPC to form a joint venture company (with 51 per cent stake held by NPCIL and 49 per cent by NTPC) for establishing nuclear power projects. A JV company Anushakti Vidhyut Nigam Ltd. has been formed.

f) Renewable Power:

In order to broad base its fuel mix NTPC has plan of capacity addition of about 1,000 MW through renewable resources, such as solar and wind energy by 2017.

Key factors for strategy formulation used by NTPC

Demand and SupplyDemand and Supply is the factor used for the making of strategy. They do their operational planning by looking at the demand of power and resources available for power generationThe energy requirement registered a growth of 0.55 and peak demand grew at 9.0% during the financial year 2014-15 was 3.05 and 4.7% and is likely to go under 2.1% and 2.0% respectively. Despite very high shortages likely to be experienced by southern region. The demand is believed to be suppressed due to poor financial health of discoms who find supplying power at existing tariffs unviable. The energy requirement will go up once the latent demand is unlocked. Industrial consumption is the maximum and most remunerative in India, growth in industrial activity will fuel power demand in the country. Further, still large population to the tune of ~28 crore are without access to power. The per capita consumption of power in India still remains abysmal at 1010 units (provisional) for financial year 2014-15. Goal has also set a target to provide 24X7 power for all 2019. Given the above scenario the long term outlook for power demand remains strong.

SWOT AnalysisNTPC use SWOT analysis as the key factor for formulating the strategy. It is the analysis done by the HR department. Through the SWOT analysis one can know about their strengths, weaknesses, opportunities and threats.

Plant load factor (PLF)NTPC has complete focus to increase their PLF.Although the company has approx. 18% of the total national capacity it contributes to over 27% of total power generation due to its focus on operating its power plants at higher efficiency levels (approx. 83% against the national PLF rate of 78%). But PLF of the company is decreasing due to less demand in power market and increase in competition from private companies.

Future Strategy

Company has prepared its long term Corporate Plan for the period 2010– 2032 which includes all strategies and growth targets, fuel choices, technology choices and measures to deal with the likely changes in the business environment. During the course of implementing this proposed Plan, company would aspire to be the most valuable Indian company as well as the world leader in power generation.Company also aspires to be a leader in GREEN

POWER. NTPC Ltd, India’s largest power producer, is working on a new strategy to face the challenges posed by an evolving energy landscape marked by regulatory change, its unfolding acquisition plans and the government’s increasing focus on renewable sources of power.

As part of the ambitious exercise, the state-owned thermal power utility will appoint a consultant to revise its NTPC Corporate Plan 2032, which lays down its future road map.

Consultants such as Bain and Co. India Pvt. Ltd, Deloitte Touche Tohmatsu India Pvt. Ltd and McKinsey and Co. are in the fray for the assignment.

The exercise comes in the backdrop of the Bharatiya Janata Party-led National Democratic Alliance government making energy security one of its top priorities. The government has launched a scheme aimed at ensuring eight hours of quality power supply to farmers and 24-hour electricity to rural households.

For the government’s strategy to succeed, NTPC, which has a 17% share in India’s power generation capacity of 255,012.79 megawatts (MW), has to play an important role. The utility plans to add 14,038MW in 2012-17 and has an ambitious capital expenditure target of Rs.1.5 trillion. It has set itself the target of becoming a 128,000MW power producer by 2032.

“The idea is to prepare NTPC in a fast-changing business landscape. The corporate plan has to be revised. There are both opportunities and challenges. The strategy has to be evolved keeping all the new emerging issues in mind such as regulatory changes, mergers and acquisition opportunities, and a focus on renewable sources of energy. The presentations from the consultants are on,” a person aware of the development said, requesting anonymity.

Shared Values

VISION

“A world class integrated power major, powering India’s growth, with increasing global presence”

MISSION

“Develop and provide reliable power, related products and services at competitive prices, 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 prices and ensure timely realization of revenues.

Develop a strong portfolio of profitable businesses in overseas markets including technical services, generation assets etc.

Continuously attract and develop committed human resources to match world standards.

Lead fundamental and applied research for adoption of the state-of-the- art technologies, breakthrough efficiency improvements and new fuels.

Lead developmental efforts in the Indian power sector including assisting state utility reform, policy recover etc.

Adopt a broad based capacity portfolio including Hydro Power, LNG, Nuclear Power, and non conventional and eco-friendly fuels.

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

Be an integrated utility by implementing strategic diversifications in areas such as power trading distribution, transmission, coal mining, coal beneficiation etc.

CORE VALUES – BE COMMITTED

B = Business Ethics.

E = Environmentally & Economically Sustainable

C = Customer Focus

O = Organizational & Professional Pride

M = Mutual Respect And Trust

M = Motivating Self & Others

I = Innovation and Speed.

T = Total Quality For Excellence

T = Transparent & Respect Organization

D = Devoted

OBJECTIVES OF COMPANY

Business Portfolio Growth

To further consolidate NTPC‟S position as the leading thermal power generation company in India and establish a presence in hydro power segment. To broad base the generation mix by evaluating conventional sources of energy to ensure long run competitiveness and mitigate fuel-risks. To diversify across the power value chain in India by considering backward and forward integration into areas such as power trading, transmission, distribution, coal mining, coal beneficiation, etc.

To develop a portfolio of generation assets in international markets.

To establish a strong brand in the domestic & international market

Customer Focus

To foster a collaborative style of working with customer growing to be a preferred brand for supply of quality power.

To expand the relationship with existing customers by offering a bouquet of services in addition to supply of power e.g. trading, energy consulting, distribution consulting, management consulting, management practices.

To expand the future customer portfolio through profitable diversification into downstream business, inter alia retail distribution and direct supply.

To ensure rapid commercial decision making, using customer specific information with adequate concern for the interests of the customer.

Agile Corporation

To ensure effectiveness in business decisions and responsiveness to change in the business environment by Adopting a portfolio approach to new business development.

To develop a learning organization having knowledge based competitive edge in current and future businesses.

To effectively leverage information technology to ensure speedy decision making across the organization.

Performance Leadership

To continuously improve on project execution time and cost in order to sustain long run competitiveness in generation.

To operate & maintain NTPC stations at par with the best run utilities in the world with respect to availability, reliability, efficiencies.

To aim for performance excellence in the diversification businesses.

To embed quality in all systems and processes.

Human Resource Development

To enhance organizational performance by institutionalizing an objective and open performance management system.

To align individual and organizational needs and develop business leaders by implementing a career development system.

To enhance commitment of employees by recognizing and rewarding high performance.

To build and sustain a learning organization of competent world-class professionals.

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 this would ensure remunerative tariffs and minimize receivables.

Sustainable & Development

To contribute to sustainable power development by discharging corporate social responsibilities.

To lead the sector in the areas of resettlement and rehabilitation and environment protection including effective ash-utilization, peripheral development and energy conservation practices.

To lead developmental efforts in the Indian power sector through efforts at policy advocacy, assisting customers in the operations and management of power plant.

STRUCTURE

DIRECTOR

HR

DIRECTOR

PRODUCTION

DIRECTOR

MARKETING

DIRECTOR

FINANCE

DIRECTOR

TECHNICAL

REGIONAL DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

ASSISTANT GENERAL MANAGER

SENIOR MANAGER

CMD NTPC

MANAGER

FUNCTIONAL DEPARTMENTS

Fig – 3.1 FUNCTIONAL DEPARTMENTS

FINANCE & ADMINISTRATION:

Every business main intentions are to make the profit so, business transaction need to be recorded in specific format for the calculation of profit or loss at the end of year. Finance department is very important for every organization to keep the finance related information. Finance department involved in the recoding of monitory transaction and finalization of accounts which is helpful for management decisions. Finance department is also responsible for planning of funds requirements in the future and it needs to find the sources finance.

OBJECTIVES OF DEPARTMENT:

a. Ensuring regular & sufficient supply of capital to business.

b. Ensure affair rate of return to the supplier of the capital.

c. Ensure the best utilization of capital by following the principals of liquidity, profitability & safety.

d. Coordinating the activities of the finance department with those of other department of the enterprise.

Functional Departments

Finance & Admin

Human Resource

Operation & Mgmt

Fig – 3.2 STRUCTURE OF F&A DEPARTMENT

F&A DEPARTMENT

Finance department is very essential for any organization to be set up. It is the backbone of any organization. Similarly the finance department plays a vital role in the set up and running of NTPC Chief Accountant manager and chief finance manager work under the direct control of finance Director at NTPC. Other top executives in the finance department are senior executive (finance), divisional officer (finance), accounts officers; assistant accounts officers, senior assistants (Accounts) and assistant (accounts). The chief finance manager and accounts manager handle various activities in the finance department. Each of them has their tasks cut out systematically in these areas.

In NTPC, finance and accounting department is subdivided into 8 sub departments. They are:-

BOOKS & BUDGET:

The main work of this section is accounting and maintaining the register of finance. Another function done by this section is auditing for which the accountants are out sources by the NTPC. The main audits conducted by the company are:

a) Internal audit & Statutory audit: - Mainly done by the out sources accountants. It is done quarterly or as per the need.

b) Controller & Auditor general of India audit: - This audit had done by controller’s attorney general of India. This is the audit of balance sheets.

c) Cost audit: - From 2005-2006 company start cost audit. It handles the cash. These departments send the estimation for cash requirement, to the corporate office weekly and daily basis and also tell why it is required. Also interface with banks, make payment and receive payment Take custody of monetary and non-monetary instrument for security. It is also take bank guarantee for performance; it is also called documentary credit.

d) Prosperity audit: - This audit is done for check the system to see that all going properly or not. It is done once in five year.

DGM

Works & Admin

Sr.M (Works, Books, Budget,

Cash & Bank)

SMF

Purchase

Sr. MANAGER

MANAGER

Asst. MANAGER

Sr. MANAGERMANAGER

MANAGERAsst. MANAGER

Asst. MANAGER

HOD

(F&A)

COMMERCIAL SECTION

This section does the accounting of sales of the project. It makes oil and coal payment voucher. It also maintain priced store ledger (PSL).

STORE BILLS SECTION

This section does the payment of inventory as per terms of purchase order, advance and final payment and maintains account. Make advance schedule and material under inspection schedule. It also makes insurance payment, transporters payment, premium and claims.

VETTING AND CONCURRENCE

The work of this Section is Contract and Purchase estimation, Vetting of competitive statement then we calculate Land Price, Vetting of Draft Purchase Order, Finance Concurrence.

PRICED STORE LEDGER (PSL) SECTION

This section does the physical inventory valuation. The method of valuation is monthly moving weighted average. This valuation is done in every month. This department gives the reports in various topic like XYZ, ABC and VED analysis report, and non-moving item report. And also done physical verification of stock every year.

WORKS BILL SECTION

This Sec t ion does the payment o f se rv ices taken by SSTPS l ike Main tenance Contracts. The payment made on Running Bill on the basis of Measurement Book. Also do the final payment and take Penalties and return there Securities. This section also do the capitalization were work is going on. The work not had done fully completed Show under Capital Work In Progress Account (CWIP). When this work complete then CWIP to Fixed Assets. Incidental Expenditure during Construction (IEDC) and Interest During Construction (IDC) add in CWIP Account. Renovation and Modernization Work is going on four Stations i.e. Singrauli, Korba, Ramagundam and Farakka. And the work of Renovation and Modernization handle by this Section.

ESTABLISHMENT SECTION

This Section give the Salary and recover the PPF amount, House rent, Electricity charge, Club expenses and Income tax from employees. This section also deals with Loan & Advances given to employees. Some special type of  Loans provides by NTPC to its employees.

MISCELLANEOUS SECTION

This section makes the payment of Non-Oriented contract payment. Deal with Petty Cash. Telephone bills, Entertainment expenses paid by this Section.

HUMAN RESOURCE MANAGEMENT

HRM can be defined as managing (Planning, organizing, directing & controlling) the functions human relations with a view to contribute proportional to the organization individual & social goals.

Functions of HRM:

I. Managerial functiona. Planning

b. Organizingc. Directingd. Controlling

II. Operative functiona. Employmentb. Human resource developmentc. Compensationd. Human relation

OBJECTIVES OF HR FUNCTION:

To Place manpower of required quality and in required number in position so as to ensure fulfillment of company’s objectives, plans and policies. The department would forecast on a continuous basis in advance, manpower requirement at various stages of the construction and operation of company’s projects, the organization structure, the type of manpower etc. and plan advance action to meet the above objective. Through proper recruitment and selection process, the department would Endeavour to attract persons with potential and select those with high degree of knowledge, skill and caliber.

To formulate design, review and implement suitable pre-employment and post-employment training and in-company and external management development and workers development programmers with an individual employee of the company.

To identify from among the employees of the company persons with potential to rise to high levels of organizational hierarchy and develop implement suitable systems of career planning and managerial succession planning.

To create and sustain a favorable employee attitude a view to obtaining maximum contribution and cooperation of employees in achieving the objectives of the company through suitable employment, adequate, compensation by way of wages/salaries, benefits, welfare facilities, suitable motivational schemes, safe working conditions and job satisfaction.

Develop personnel policies in all areas relevant to the manpower to management and notify the same to the employees with a view to reducing the communication gap between the management and the employees.

To cultivate and maintain a participative culture through suitable system of managers participation in decision making and workers participation in management.

To establish and introduce suitable systems of grievance handling for redresser of employees grievances in the shortest possible time and with the lowest possible steps.

To encourage healthy and legitimate trade union activities and based on mutual respect of each other’s view points and look upon trade unions as the agencies of communication between the management and workers. To this end, the department would endeavor to understand the problems of workers through regular dialogues with the trade unions and aim at solving problems and disputes through mutual discussions.

To identify key areas of organization development, diagnose the problems, suggest measures and follow-up the implementation.

Fig- 3.3 STRUCTURE OF HUMAN RESOURCE DEPARTMENT

GENERAL MANAGER

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. Although NTPC has formulated many HR policies for employee’s development and growth, it was felt that there is still space for enhancing employee’s motivation and morale on a continued and sustained basis. Therefore, a bouquet of rewards and recognition schemes is evolved with an objective of reinforcing good work and behavior of employees in order to achieve Organizational excellence.

HR Function at Corporate Level

Major functions under this level are:

a) Industrial Engineering: The activities of this group span the various facts of manpower planning & budgeting, organization structure, development of manpower norms/ standards/modules, incentive/ reward schemes, preparation of financial budgets for Corporate Personnel &Administration, Job Evaluation & Development of job specification/descriptions, Personnel Data Bank and computerization, Organization & Methods etc.

b) Employment and Placement: This function covers with the various activities pertaining to the recruitment of all executives/executive trainees of the corporation and the non-executives of Delhi based offices.

c) Corporate Training:

This group looks after the development of training policies, programmers of various types of technical training schemes including Engineering Executive Trainees, Executive

DEPUTY GENERAL MANAGER

ASST. GENERAL MANAGER

SENIOR MANAGER

MANAGER

ASST. MANAGER

OFFICER

trainees (Chemistry), Diploma Trainees, ITI Trainees, training under contract packages etc.

d) Management Development, Organizational Development and Personnel Research:This function encompasses the various organization development aspects relating to performance appraisal, career & succession planning, job rotation & action learning, promotion policy etc.

e) Establishment: This area covers personnel activities from the time an employee joins the organization to the time he leaves or superannuates. These include the joining formalities, postings and transfers, confirmation/absorption, promotion & seniority, forwarding of applications, processing of resignations etc. for the executives of the entire and the non-executives of Delhi based offices.

f) Policies & Rules: This area includes various activities pertaining to formulation, implementation and auditing, monitoring of various personnel policies like wages & salary, allowances & reimbursements, Safety etc. Also covered under this area are the development, implementation and issue of clarifications relating to service rules, conduct, discipline and appeal rules, rules on entitlements, overtime & pay fixation rules, etc.

OPERATION AND MAINTENANCE DEPARTMENT

NTPC has consistent track record of high availability and plant load factor (PLF) across plants based on diverse technologies. NTPC has emphasized predictive & preventive maintenance systems to achieve this track record.

Services covered under Environmental Engineering and Management include the following:

Plant start-up including prescribing pre-operational checks.

Station management services for Operation & Maintenance services for Coal based and Gas based Combined Cycle plants.

Development of Operation and Maintenance Management Systems & computerization.

Supervision of Equipment Repairs and Unit Overhaul.

Laboratory tests & field tests and PG test/capacity test.

State-of-the-art Operation and Maintenance training for coal based and gas based units.

Performance Analysis and Optimization.

Condition Monitoring of critical equipment.

Fuel Management and Energy audit

Fig – 3.4 STRUCTURE OF OPERATIONS & MAINTENANCE DEPARTMENT

HOD (O&M)

Primarily it is the operation and maintenance of the power projects which holds the key for being successful as an Independent Power Producer. NTPC with its proven world class track record of operating and maintaining the power stations and having provided this service successfully to many domestic clients is now positioned to offer this service to International clients through its International Cell. The O&M service has been tailored for international clients and consists of the following modules and sub-modules. However, this can be further tailored to meet any client’s expectations

Maintenance Management

The term ‘maintenance’ means to keep the equipment in operational condition or repair it to its operational mode. Main objective of the maintenance is to have increased availability of production systems, with increased safety and optimized cost. Maintenance management involves managing the functions of maintenance. Maintaining equipment in the field has been a challenging task since the beginning of industrial revolution. Since then, a significant of progress has been made to maintain equipment effectively in the field. As the engineering equipment becomes sophisticated and expensive to produce and maintain, maintenance management has to face even more challenging situations to maintain effectively such equipments in industrial environment.

Functions of Maintenance Department

Following are the major functions of maintenance department:

Maintenance of installed equipment and facilities

Installations of new equipment and facilities

Inspection and lubrication of existing equipment

Monitoring of faults and failures using appropriate techniques

Modifications of already installed equipment and facilities

DGM (OPN) DGM (EMG) DGM (MTP)

AGM

Sr. MANAGER

MANAGER

Asst. MANAGER

ENGINEER

AGM AGM

Sr. MANAGER Sr. MANAGER

MANAGER MANAGER

Asst. MANAGER Asst. MANAGER

ENGINEER ENGINEER

Management of inventory

Supervision of manpower

Keeping records

Material Management

According to Lee & Dobler - Material management as a confederacy of traditional material activities bound by a common idea- the idea of an integrated management approach to planning, acquisition, conversion, flow and distribution of production material from the raw material state to the finished product state.

Function of Material Management

To arrange the facilities required for the material management.

To dispatch the material to the production department.

To look for new materials and suppliers that can contributes to company profits.

Keep record of the material received, issued and balance.

To receive the finished goods from the production department, to verify them and store them properly till they are distributed.

To maintain the material handling equipment and other incidental items like pallets, containers, etc.

Environment Management, Occupational Health and Safety Systems

NTPC has actively gone for adoption of best international practices on environment, occupational health and safety areas. The organization has pursued the Environmental Management System (EMS) ISO 14001 and the Occupational Health and Safety Assessment System OHSAS 18001 at its different establishments. As a result of pursuing these practices, all NTPC power stations have been certified for ISO 14001 & OHSAS 18001 by reputed national and international Certifying Agencies.

SKILLS

NTPC subscribes to the belief that efficiency, effectiveness and success of the organisation depends largely on the skills, abilities and commitment of the employees who constitute the most important asset of the organisation.

TRAINING AND DEVELOPMENT

A systematic Training plan has been formulated for ensuring minimum seven man days (56 hours) training per employee per year and includes level-wise planned intervention designed to groom people for assuming positions of higher responsibility, as well as specific need-based interventions based on scientific Training Needs Analysis.

Continuing with their commitment towards developing itself into a learning organization and aligning itself with its corporate vision, the company established a training institute called the Power Management Institute (PMI). PMI’s mission was to work towards “wider adoption of innovative and relevant management concepts in the power sector”. The institute’s activities included conducting management development programs, as well as research and consultancy

continuous performance improvement. Besides several management development programs, the company also conducted leadership development programs for its executive directors and general managers.

The programs at the center were open to NTPC managers (middle and senior levels) as well as to managers from state electricity boards and from multinational companies. They were open to managers in the power sector as well as those not in the power sector, and even took managers from other countries. The center also undertook training courses supported by foreign agencies like USAID, Overseas Development Agency (ODA) UK, World Bank and E7 group21, and ones supported by Indian institutions such as Administrative Staff College of India (ASCI) 22, Hyderabad and IIM, Ahmedabad. Such has been success of this project that it has become a premier training imparting institute and due to the high quality of PMI training, many companies from countries like Korea, Tunisia, etc. came to India to attend the training programs. The PMI campus had a well-equipped auditorium, classrooms and residential and recreational facilities for trainees. NTPC wanted its employees to better themselves continuously. The company identified the following areas as its focus for training:

o change management,

o quality management and

Apart from PMI, which focused on management development, the company also ran technical training centers at all its 20 plants. They were called Employee Development Centers (EDCs). NTPC has institutionalized "Development Centers" in the company to systematically diagnose the current and potential competency requirements of the employees with the objective of enhancing their development in a planned manner. Here the employees imparted specialized technical training to employees based on systematic identification of their competencies and training needs.

The company has two Simulation Training Institutes which enable employees to learn the operations of a real power plant without any loss or damage to the company. The simulation training also raised the level of proficiency and equipped employees to handle emergencies effectively.

NTPC has a training budget which is more than Rs.5000 lakh and no wonder NTPC means serious business when it comes to training and development of its employees. NTPC has >90% utilization of its fund allotted to T&D.

Other methods used for skill enhancement

1)Career Advancement & Opportunities

NTPC have a well established talent management system in place, to ensure that we fulfill on our promise of meaningful growth and relevant challenges for our employees. Our talent management system comprises PERFORMANCE MANAGEMENT, CAREER PATHS and LEADERSHIP DEVELOPMENT.

2)Innovate, Create, Compete

NTPC have introduced numerous initiatives which seek to enhance the creativity, innovation, functional aptitude and teamwork of our employees. These initiatives include the National Open Competition for Executive Talent (NOCET), Professional Circles, Quality Circles, Business Minds and Medha Pratiyogita (a quiz for our employees). A management journal called

“Horizon” is published quarterly to enable the employees to share their ideas and experiences across the Company.

3)Knowledge Management in NTPC

To meet our ultimate objective of becoming a learning organization, an integrated Knowledge Management System has been developed, which facilitates tacit knowledge in the form of learning and experiences of employees to be captured and recognizing for future reference.

MOU Signed By NTPC For Skill Development

1)NTPC to develop and enhance the technical skills of youth around it projects

NTPC Limited and National Power Training Institute (NPTI) signed a Memorandum of Understanding for running of Solapur Power Training Institute being set up at Solapur, Maharashtra. The Institute shall meet requirement of skilled workforce in the Industries and power sector by developing and enhancing the technical skills of the local youth of areas in and around the upcoming NTPC project at Solapur.NTPC has recently launched new Courses in 12 NTPC adopted and New Industrial Training Institutes (ITIs) at various locations in the vicinity of NTPC power stations to help in meeting the skilled manpower requirement.

2)MoU signed between NTPC, NSDF & NSDC, Ministry of Skill Development & Entrepreneurship, Govt. of India

NTPC Limited India's largest power utility entered into the MoU with Ministry of Skill Development & Entrepreneurship (NSDF – National Skill Development Fund) and National Skill Development Corporation (NSDC) and allocated Rs. 6.50 Cr. from its CSR Fund for year 2015-16 and 2016-17 for various skill development programs. These skill development projects will be pursued at 22 locations with special focus on the eastern states/ part of the country where NTPC power plants are located. 5000 youths will be trained in various vocational skill sets.

Education Up-gradation Schemes

'When you upgrade your employee’s skills, you upgrade your company', NTPC actively motivates its academically inclined employees to pursue higher studies which are in consonance with the needs of the recognizing . NTPC has tie-ups with leading institutions like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc on this end. NTPC sponsors batches of employees who are inducted into their courses based on their performance rating in the company and their performance in the entrance exam conducted by the respective institutes. Unlike other study leave and sabbaticals, employees undergoing these courses do not forego their salary or growth during the during the course.

Staff

NTPC strongly believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of it’s over 25,000 employees to fulfill its business plans. At NTPC, it begins and ends with people. The company is deeply passionate about ensuring the holistic development of all its employees as distinct individuals and good citizens. We currently employ approximately 24,546 Employees at NTPC.Competence building, Commitment building, Culture building and Systems building are the four pillars on which our HR systems are based.NTPC is resolved to provide a framework of policies which will enable the organisation to attract the right talent for the jobs and make it available at the right time and in right number with the ultimate objective of ensuring optimum and effective utilisation of the human resources in a climate of satisfaction, development and growth. NTPC has continuously

been part of the Best Workplaces List for the last eight years and has been consistently amongst top performers.

Manpower Planning and Budgeting

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

Based on the requirements of additional manpower of the individual departments, the detailed manpower plan for the financial year will be prepared jointly by the Planning and Personnel Departments for the Division as a whole giving specific details of each new posts other than casual posts and justification therefor and this manpower plan containing details of expenditure involved will form a part of the overall Manpower Budget of the Division.

The requirements of casual and other contingent staff will not form a part of the Manpower Budget as the same will be shown only in terms of estimate of expenditure to be incurred in respect thereof as a part of the Works Budget.

Creation of Posts

1) Notwithstanding the Board's overall sanction for the creation of posts as above, specific sanction for each new post from the competent authority will be necessary before initiation of action for filling the posts and the competent authority will issue the necessary sanction depending on the requirements from time to time during the year within the approved budget sanction and manpower plans subject, however, to policies and directives that may be issued by the Board of Directors and/or Chairman and Managing Directors, as the case may be.

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

Recruitment Procedure:

NTPC recruited mainly at the entry level for the posts of around 400-500 Executive Trainees every year.

The Steps in recruitment procedure:

The selection process involved three stages:

o Written test - Candidates are called for a written test to test the knowledge of their subject. Candidates who scored the cut off marks in the selection test are called for a Group Discussion.

o Group discussion – Further short listing is done on the basis of group discussion.

o Interview - The interview panel consists of personnel from HR department and technical manager. During the interview a candidate’s technical knowledge, communication skills, presentation skills, flexibility and aspiration level are tested.

For lateral recruitment above entry level, interview is a mode of selection.

The Induction Program:

To induct talent and groom them into a dedicated cadre of power professionals "Executive Trainee" Scheme was introduced in the year 1977 for recruitment in the disciplines of Mechanical, Electrical, Civil, Control & Instrumentation and now encompasses Computer Science, Chemistry, HR and Finance disciplines also. Besides a comprehensive one year training comprising theoretical inputs as well as on-the-job training, the new recruits are also attached with senior executives under a systematic and formal “Mentoring System” of the company to integrate them into the Culture of the company. This way, company’s specific skills can be (has been) developed and nurtured among the employees. Today, more than 50 % of the executive strength in the company is through this talent building mechanism. The Executive trainees are the back bone of Engineering, Chemistry, HR, Finance, IT and Hydro functions of the company.

Job Title, job Specifications, Role Outline and Pay scales

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

2) To ensure uniformity and consistency, such job titles, job specifications and role outlines together with the pay scale applicable in respect of all categories of posts will be issued by the Corporate Centre from time to time with the approval of the Chairman and Managing Director.

3) No appointment shall be made to any post in the Company unless the person fulfills the minimum eligibility requirements and conforms to the specifications prescribed for the post except where general relaxations are made in the case of reserved vacancies for candidates belonging to Scheduled Castes, Scheduled Tribes, other backward classes, Ex-servicemen and other special categories.

Provided, however, that in special and exceptional cases appointments may be made subject to the approval of the Appointing Authority in relaxation of the prescribed specifications where the Appointing Authority is satisfied that such relaxation is essential in the interest of the Company.

Required Qualities Of Staff

NTPC takes adequate steps to recruit people on the basis of various factors to identify the right candidate. The following are the main factors that are considered while recruiting new employees.

Learnability: NTPC give more emphasis on learnability, it means the ability to derive generic knowledge from specific experiences and apply the same in new situation.

Competency: NTPC give more importance to professional competence and academic excellence.

Other qualities: Other qualities include analytical ability, teamwork, leadership potential, communication and innovation skills, along with a practical and a structured approach to problem solving.

SystemPerformance Management System

The performance management system has an intrinsic motivational significance that facilitates learning and brings about role clarity which helps people focus on performance development. It is a continuous process to understand the employee’s ability, competencies, relative merits and worth of the organization. The present study explores performance management system (PMS) of National Thermal Power Corporation Limited (NTPC), a leading public sector organization in the power sector. It is descriptive in nature, and based on information obtained from secondary as well as primary source. The study observed that NTPC believes in achieving organizational excellence through human resource. The organizations system is based upon the four building blocks i.e. competence building, commitment building, culture building, and systems building. At NTPC, performance management system evaluates five components namely performance, competencies, values, potential appraisal, performance and potential appraisal. The study observed that the performance management system in the organization is capable to specifically address the developmental needs in order to overcome competency gaps in the employees under appraisal. The Performance Management System brings to focus important managerial attributes and strikes a balance between ‘Performance’ and other aspects of managerial talents/skills. Executives will have a set of Key Performance Areas to be identified through discussion and achieve them during the performance period. The system is to develop the competencies by involving the executive in setting targets and identifying Key Performance Areas. The System aims to bring the concept of ownership and accountability on both Appraisee and Appraiser to create mutual trust and confidence. To utilize the Performance Management System for facilitating individual career development and bring organization wide HR intervention at senior levels to bridge competency gaps.

PERFORMANCE MEASURES OF NTPC:

Performance management system at NTPC comprises appraisal of 5 components:

1) PERFORMANCE: At NTPC, the performance is evaluated at two intervals i.e. first half year performance appraisal, and second half performance appraisal.2) COMPETENCES: There are 8 competencies assessed and rated at NTPC. These competencies are technical Knowledge, Business Attitude, Strategic Thinking, Resources Management, Communication Skills, Systematic Thinking, Interpersonal Competence, and Empowering Skills.3) VALUES: Adoption of the Company’s Core Values in the business dealings is one of the essential duties of employees at all levels. Especially Senior Executives who occupy leadership positions in the Company, have a major role in the actualisation of Core Values by being ‘Role Models’ in observing and practising them and thereby leading by example. Hence due emphasis is laid on the Core Values demonstrated by the executive in his day-to-day business dealings and 15% weightage has been ascribed in the Performance Appraisal to the process of Value actualisation exhibited by the executive.4) POTENTIAL APPRAISAL: Potential is a component related to “Competencies”. It seeks to achieve one of the major objectives of the Performance Appraisal System, namely evaluating the suitability of the executive to assume higher responsibilities along the hierarchy.5) PERFORMANCE AND POTENTIAL PROFILE: The Part V would sum up all marks scored for the Performance Appraisal year. The marks scored for Part I, Part II, Part III and Part IV is transferred to this section and entered against respective item. The aggregate of the marks scored is arrived at by adding all marks scored for different components. This would form the Final score of Performance & Potential Appraisal rating of the executive out of 100 marks.

Environmental Management SystemAt NTPC, all our activities and operations are guided by sound environmental practices, second to none. Right from its inception, the company has a well defined environment policy. It is

committed to protecting the fragile ecology as well as ensuring a sustainable growth of power. It is passionate about ensuring a clean environment for all of us and future generations.The Union Ministry of Environment & Forests and the Ministry of Power and NTPC were involved in preparing the draft Environment Policy which was later approved by the Union Cabinet in May 2006.NTPC Environment Policy“Going Higher on Generation, lowering Green House Gas Intensity” is their vision statement on managing our environment. Since the genesis of the company, NTPC has led from the front on this issue. he policy envisages new technology initiatives and efficient utilisation of resources, thereby minimising waste, maximising ash utilisation and ensuring a green belt all around the plant for maintaining ecological balance. We do not rest on our laurels and our work in this crucial and challenging issue is an ongoing one where we are constantly striving to reduce our impact further. We aim to be a global leader in environmental standards and practices.Environment Management, Occupational Health and Safety SystemsNTPC has actively gone for adoption of the best international practices on environment, occupational health and safety areas.  Providing its employees with a safe working area is the primary concern of the management. NTPC recognises and accepts responsibility for establishing and maintaining safe & healthy working areas for all concerned.The organisation has pursued the Environmental Management System (EMS) ISO 14001 and the Occupational Health and Safety Assessment System OHSAS 18001 at its different establishments. As a result of pursuing these practices, all NTPC power stations have been certified for ISO 14001 & OHSAS 18001 by reputed national and international certifying agencies.Pollution Control SystemsRight from the planning stage, all plants have provisions for pollution control incorporated into their blueprints. In order to ensure that NTPC complies with all the stipulated environment norms, following state-of-the-art pollution control systems / devices have been installed to control air and water pollution:

Electrostatic Precipitators Flue Gas Stacks Low-NOX Burners Ash Dykes & Ash Disposal Systems Liquid Waste Treatment Plants & Management System Sewage Treatment Plants & Facilities Environmental Institutional Set-up

Following are the additional measures taken by NTPC in the area of Environment Management:

Environment Management During Operation Phase Monitoring of Environmental Parameters On-Line Data Base Management Up-gradation & Retrofitting of Pollution Control Systems Resources Conservation Waste Management Green Belts, Afforestation & Energy Plantations

VIGILANCE SYSTEMVigilance Mechanism:NTPC ensures transparency, objectivity and quality of decision making in its operations, and to monitor the same, the company has a vigilance Department headed by chief vigilance officer, a nominee of central vigilance commission. The four units of vigilance Department namely corporate vigilance cell ,Departmental proceeding cell(DPC),MIS Cell and Technical cell (TC) deal with various facets of vigilance mechanism. Surprise checks were conducted in various departments and recovery was made against discrepancies.

Implementation of integrity pact NTPC is committed to have total transparency to its business processes and as a step in this direction; it signed a memorandum of understanding with transparency international index in December, 2008. The integrity pact is being implemented for all contracts having value exceeding 10 crore. Three independent external monitors have been nominated by the central vigilance commission for all contracts with value exceeding 100 crore. New format of integrity pact as per the company’s requirement and the suggestion given by IEMs were implemented.Implementation of various policies/circularsComplaint handling policy, Fraud Prevention Policy and Whistle Blower policy have been implemented in the company to build and strengthen a culture of transparency. A uniform policy for banning of business dealings with the contractors has been formulated and implemented.Vigilance Awareness Week and Workshops During 2014-15, 41 preventive vigilance workshops were conducted at various projects in which 1230 employees participated.

RISK, CONCERNS AND THEIR MANAGEMENT SYSTEMYoue company has an elaborate enterprise risk management framework in place. A fuctional level director committee called Risk Managemnt Committee (RMC) has been constituted in compliance with the companies act, 2013 and cluse-49 of the listing agreement. The RMC is responsible to identify and review the risks and to formulate action plans and strategies to mitigate risks on short term as well as long term basis.The RMC has identified 26 key risks and out of which following have been classified as the top risks for the company:

Inadequate fuel supply Difficulties in acquisition of land Delay in execution of projects Risks related to coal minings Risks pertaining to hydro projects Compliance of emission, ash utilization and regulatory norms Sustaining efficient plant operations Risks of not getting schedule

These areas are regularly monitored through reporting of key performance indicators of the identified risks. Exceptions with respect to risk assessment criteria are reported regularly to the board of directors. During the financial year 2014-15, Committee meetings have been held for all the quarters to deliberate on strategies.Internal Control To ensure regulatory and statutory compliance as well to provide highest level of corporate governance, NTPC has robust internal systems and processes in place for smooth and efficient conduct of business and complies with relevant laws and regulations.A comprehensive delegation of power exists for smooth decisions making which is being further reviewed to align it with changing business environment and for speedier decision making. Elaborate guidelines for preparation of accounts are followed consistently for uniform compliance. In order to ensure that all checks and balances are in place and all internal control systems are in order, regular and exhaustive internal audits are conducted by the experienced firms of chartered accountants in close co-ordination with the company’s own Internal Audit Department. Beside the company has two committees of the board viz. Audit Committee and Committee on management controls to keep a close watch on compliance with Internal Control Systems.

STYLEAll organization has their own distinct culture and management style. It includes the dominant values, beliefs and norms which develop over time and become relatively enduring features of the organizational life. It also entails the way managers interact with the employees and the way

they spend their time. Culture style of the organization shows how key managers behave in achieving the organization’s goals. The style of the organization is through leadership in which leaders can establish unity of purpose and direction of the organization. They create and maintain the internal environment in which people are fully involved in achieving the organization goals.

PEOPLE FIRST NTPC believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of its 24,500 employees to fulfill its business plans. 'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at NTPC. NTPC are strongly committed to the development and growth of all our employees as individuals and not just as employees.

Scholarship for meritorious students of employees. Canteen facilities at subsidized rates. Workmen compensation for all employment injury. Settlement of accounts terminal benefits of death causes. Recreation- fine arts, clubs, sports clubs for employees. Education facilities to employee’s children. Community development immunization on family planning, tailoring classes, polio and

others. Arranging talks on diseases like AIDS, Cancer, and Diabetes etc. Arranging for periodical health checkups. Labour welfare fund loans and advances to employees. Reference courses for education of employees. Consumer co-operative society for benefit of employees. Medical facilities and hospitals with in and outpatient facilities. Transportation facilities.

Quality of Work-LifeNTPC is committed to provide the best available work life for its employees. In addition to ensuring safe and aesthetically pleasing work places, NTPC actively encourages a culture of mutual respect and trust amongst peers, superiors and subordinates. Far removed from the buzz of cities, our townships are the epitome of serenity, natural beauty and close community living. A range of welfare and recreation facilities including schools, hospitals and social clubs are provided at the townships to enhance the quality of life & the well being of employees and their families. An entire gamut of benefits, from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person’s life.

Rewards & RecognitionsWe recognise the role played by rewards & recognitions in motivating our colleagues. To this end, we have created a culture of rewards and appreciation through celebration of various achievements and recognizing the contributions behind such success.

Quality Assurance

NTPC has invested hugely in quality with the view to secure long term plant reliability. Investment in terms of committing adequate number of qualified and trained human resources for quality related activities laboratories at the construction sites and more importantly, robust processes providing for direction methods and standards of performance, for the various tasks associated with quality. Quality in NTPC has a much deeper meaning ,identification of needs, planning for realization of the needs jointly with the stake holders including the various suppliers and verification whether the needs have been built into the product/service during manufacturing and erection and commissioning .The quality loop is further extended to capture whether the

originally indented plant reliability and operation standards have been realized or not Gaps ,if any, are filled through continuous improvements. NTPC’s performance indicators exceptional by any standards ,bears testimony to the soundness of the quality system deployed. NTPC is represented on various technical committees of ISO and IEC and is actively contributing in formulation and updating of power sector technical and technical and quality standards/guidelines.

Analysis of the project

After studying the Mckinsey’s 7-s Framework we analyze that the company has various strengths and weakness in their framework.

The strengths of the company are:-

NTPC is the leading power generation company in India, so it has the advantage of its settled infrastructure and huge economy to expand their network.

Highly skilled and experienced human resources exposed to the state of the art technologies in project execution and power generation.

Democratic style of leadership with centralization of authority and responsibility to the divisions so that employees have been empowered to do their work independently without pressures from their higher authority so it has good structure.

It has its own vigilance system which ensures the transparency, objectivity and quality of decision making in its operation.

Company gives good salary and incentives to their employees and make good quality working environment for the employees to work and give rewards to the employees for their good performance which encourage the employees to work hard.

Huge investment on training and skill development programs so that’s why it has highly skilled workforce

Performance management system of NTPC clearly establishes an understanding about what is to be achieved and developing the people to ensure that how it is to be achieved.

The weaknesses of the company are:- Due to the 70% government holding, they have to follow government policies and also

have to provide the electricity at subsidiary rates to the government agencies. Company is using older methods of power trading which do not reach all the consumers

properly whereas their competitors like tata power and NHPC are using e-bidding method for power trading which is the most effective method in modern age.

In comparison with their competitors the company is using old technologies and having joint ventures with Indian companies which do not have much experience in new technologies.

NTPC in their strategy emphasizing coal based thermal power plants which is depleting very fast and not environmental friendly so in near future they may suffer from coal shortage and also from environmental problems.

As the government is the part of the structure of the company so there is time lag in decision making and sometimes have to suffer from political pressures.

Due to the government intervention, sometimes NTPC does not get the right person according to their need for job. For Ex. Gate test is conducted by the government for the assistant engineer which is common for all the PSU’s.Earlier the test is conducted by the NTPC itself so the required skill person is chosen by them but now it is not possible.

As the mission of the company is to use innovative and eco-friendly technology but still the company is stick to the coal based technology which is non renewable and not eco-friendly.

NTPC is unable to complete its project within decided time in its plan so they are lagging in the power generation market.

As the capacity of power generation of NTPC’s competitors is increasing at a faster rate but NTPC is unable to cope up with the speed of their competitors. As a result the plant load factor of NTPC is decreasing whereas of TATA POWER it is increasing which shows that if they do not change their strategy they will lag in the power generation market.

In some cases it is seen that NTPC is unable to provide proper resettlement and rehabilitation to the affected people such as in NTPC singrauli people was left unsettled withour compensation.

Recommendations NTPC has very less penetration into nuclear power generation market as its most of its

plants are coal and hydro based. As of now the nuclear power generated in India contributes only 2.9% of generated capacity. After the nuclear deal, Indian govt. is planning to go in a big way to enhance its nuclear power generation .Since coal fields also are in their saturation stage there will be huge demand for nuclear power in future. To reap benefits of the deal it made a joint venture with NPICL to generate 2000MW which is very minute.It has joint ventures with coal mining industries, BHEL, Bharati Forex all these are ventures leverage its position. But these do not add value with respect its venture into nuclear power generation.Because, these organizations did not have expertise skills in nuclear power generating equipments or/and its technology. The technology and equipment required for it also different, in the present scenario no enterprise in India has acquired expertise in technology and equipment manufacturing of nuclear plants. So,this gives a huge opportunity for NTPC to leverage its financial, technological and human capital to extend its foot print into nuclear power industry.This can be done by making JV‟s with foreign players who are expert in nuclear power generation and subsequently get access to its technology, manufacturing of equipment, resource mining and dumping(the biggest concern).

The government interventions must be reduced and the control from government must be transferred to its managers and its shareholders so that NTPC could grow more without any disruptions and it also lead to good structure.

NTPC must be given the full authority for the recruitment and selection procedure so that they could select their staff with the required talent and skill.

Company must use the upgraded platform for the power trading so that they can link to more consumers in order to increase their PLF and their income.The platform like E-Bidding is the best method for power trading.

NTPC is investing more on its coal based plants. Some of its project for coal based plant are ash utilization, coal mining, new coal based plants. Instead of investing on these plants they must expend more and more on renewable sources of energy such as solar,wind etc. as they are replenish able in nature and does not come to end and also environmental friendly.NTPC should think over its strategy again and should think over the addition of more capacity of renewable energy resources plant.

By using new technologies and doing JV’s with foreign companies they can increase their project speed and it also help them in increasing their capacity addition process so that they can hold its top position in the power generation market.

NTPC must try to expand its services to all over the India especially to the remote areas where there is still no electricity and must reach the bottom of pyramid market.In India ,

there is still 28 crore people who do not have power in their homes.So these people must be the target of the NTPC as a consumers to sell their power at less profit because this market has the potential to open a gateway of great profit and also a life changing move for the consumers.

NTPC must create a proper policy for the resettlement and rehabilitation of affected people and must provide proper compensation for the affect on their life.