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INTERNSHIP TRAINING REPORT
A study conducted at
NATIONAL THERMAL POWER CORPORATION
UNCHAHAR
Submitted to Bangalore University
In partial fulfillment of the requirement of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
(Rahul kumar singh)
Reg No. 06CQCM6068
Under the guidance of
Dr. Kalyani Rangarajan
Professor &HOD
DSCMIT
Dayananda Sagar College of Management & Information TechnologyShavige Malleshwara Hills, Kumara swami layout
Bangalore – 560078.
DSCMIT 1
Dayananda Sagar College of Management & Information
Technology, Bangalore – 78
August - 2007
Certificate
This is to certify that internship training report has been submitted in the partial fulfillment for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
To
Bangalore University
By
Rahul kumar singh
Under the guidance of
Dr. Kalyani Rangarajan
Professor &HOD, DSCMIT
Dr. Kalyani Rangarajan Dr. T RangarajanHead of department, MBA Director, MBA
DSCMIT 2
STUDENT DECLARATION
I hereby declare that the “Internship Training Report” submitted in partial
fulfillment of the requirement of degree of Master Administration to
Bangalore University Under the guidance and supervision of Dr. Kalyani
Rangarajan professor & HOD, DSCMIT is my original work and not
submitted for the award of any other Degree, Diploma, Fellowship or other
similar title.
Place: Bangalore Rahul kumar singh
Date: REG. NO. O6CQCM6068
DSCMIT 3
FACULTY CERTIFICATE
This is to certify that the “Internship Training Report” at National Thermal
Power Corporation Unchahar, is completed under my guidance and
supervision. It is submitted in partial fulfillment of the requirement of degree
of Master Administration to Bangalore University by Rahul kumar singh.
And this has not formed a basis for the award of any other Degree, Diploma
and Fellowship by any other institute or university.
Place: Bangalore Dr. Kalyani Rangarajan
Date: Professor & HOD,
DSCMIT
DSCMIT 4
ACKNOWLEDGEMENT
First of all I pay my respect to the Chairman of Dayananda Sagar college of
Management & Information Technology for offering this management
studies facilities, which is not only benefiting us but also creating further
opportunities for management studies in the country.
I take this opportunity to thank Dr. T Rangarajan- Director, DSCMIT for
his unflagging support, guidance and direction.
I express my sincere gratitude to Dr. Kalyani Rangarajan, Head of
Department MBA, DSCMIT, whose profound intellectual guidance,
support and encouragement has acted as an inspiration in my endeavor. And
under whose guidance, I have learned, relearned and unlearned views, ideas,
values and knowledge and completed this internship training successfully.
Finally, I would like to thank Mr. T. Mukherjee (Deputy General
Manager), and Mr. Bimal Shah Officer (HR-ED) and all other
organization members.
Last but not the least I would wish to acknowledge my gratitude to those
who provided me encouragement, assistance and guidance in various levels
for overall completion of this work.
DSCMIT 5
CHAPTER PARTICULARS PAGE NO I. INTRODUCTION 10
GENERAL INTRODUCTION 11
OBJECTIVE OF THE STUDY 12
INDUSTRIAL BACKGROUND 13
ORIGIN OF THE INDUSTRY
GROWTH & DEVELOPMENT OF THE INDUSTRY
PRESENT STATUS OF THE INDUSTRY
BUSINESS ENVIRONMENT
FUTURE OF INDUSTRY
II. PROFILE OF THE ORGANIZATION 32
ORIGIN AND GROWTH OF ORGANISATION
PRESENT STATUS AND FUTURE VISION
OF THE ORGANISATION
ORGANISATION CHART
SWOT ANALYSIS OF THE ORGANIZATION
III.DETAILED STUDY OF THE DEPARTMENTS 47
FUNCTIONAL DEPARTMENT
CONTRACT DEPARTMENT
PURCHASE DEPARTMENT
STORES DEPARTMENT
HUMAN RESOURCE DEPARTMENT
FINANCE DEPARTMENT
PRODUCTION DEPARTMENT
DSCMIT 6
IV. STUDY OF SPECIFIC MANAGEMENT PROBLEM 101
SPECIFIC MANAGEMENT PROBLEM
SUGGESTION
RECOMMENDATION
V. BIBILOGRAPHY 104
DSCMIT 7
LIST OF GRAPHS
GraphNumber
Matter PageNumber
1 Installed capacity and Generation 15
2 Power Generation 2006-07 16
3 Total capacity as on 31-03-07 16
4 Power Allocation 37
5 Station Generation 38
6 Station Turnover 94
7 Station Gross Margin-(Profit) 94
8 Station Profit/ Turnover (%) 95
9 Stage – I Power Generation 99
10 Stage – II Power Generation 100
11 STATION POWER LOAD FACTOR (PLF) %
100
DSCMIT 8
LIST OF TABLES
Table Number
Matter Page No.
1 An Overview of NTPC 19
2 Coal Based Power Stations 20
3Gas/Liq. Fuel Based Power Stations
21
4 Power Plants with Joint Ventures 21
5 Projects under Implementation 22
6 A Brief Profile of the Project 36
7 Activities, Responsibility and Approving Authority
49
8 Estimated value of indent 70
DSCMIT 9
CHAPTER-1
DSCMIT 10
GENERAL INTRODUCTION:
NTPC Limited is the largest thermal power generating company of India. A
public sector company incorporated in the year 1975 to accelerate power
development in the country as a wholly owned company of the Government
of India. At present, Government of India holds 89.5% of the total equity
shares of the company and the balance 10.5% is held by FIIs, Domestic
Banks, Public and others. Within a span of 30 years, NTPC has emerged as a
truly national power company, with power generating facilities in all the
major regions of the country. Based on 1998 data, carried out by Data
monitor UK, NTPC is the 6th largest in terms of thermal power generation
and the second most efficient in terms of capacity utilisation amongst the
thermal utilities in the world.
NTPC Limited is the largest thermal power generating company of India. A
public sector company incorporated in the year 1975 to accelerate power
development in the country as a wholly owned company of the Government
of India. At present, Government of India holds 89.5% of the total equity
shares of the company and the balance 10.5% is held by FIIs, Domestic
Banks, Public and others. Within a span of 30 years, NTPC has emerged as a
truly national power company, with power generating facilities in all the
major regions of the country. Based on 1998 data, carried out by Data
monitor UK, NTPC is the 6th largest in terms of thermal power generation
and the second most efficient in terms of capacity utilisation amongst the
thermal utilities in the world.
DSCMIT 11
OBJECTIVES OF THE STUDY:
1. To have an overview of the organization, Its operation, its activities its
working conditions and techniques used and applied in these all
prevailing activities, the growth and development, present status,
competition and challenges facing by the organization in the industry,
the future trends in this backdrop.
2. To understand,
The internal mechanism operation of the organization
The working of the organization’s various departments
To focus on IR ( Information Resources ) requirements of the
company
To make a detailed report and study about the specific problems
prevailing in the company, and our suggestions and conclusion
relating to that of the growth of the concern
DSCMIT 12
INDUSTRIAL BACKGROUND AND ORIGIN OF INDUSTRY:
NTPC Limited come into being on 7th November 1975, through an
amendment of India Electricity (Supply) Act, to supplement the efforts of
the Indian states for quicker & greater capacity addition with the mandate
for planning, promoting and organization an integrated development of
thermal power (including associated transmission systems) in India to
support the economy of the country. In a span of just over 23 years after
commissioned of the first 200 MW unit at Singrauli in Feb 1982, NTPC has
grown to become that largest power generation utility of India with a
commissioned capacity of 24249 MW with 23 power station geographically
spread over the length & breadth of India, covering coal and combined
cycle power plants. The company has expanded its operations in the area of
hydropower and is on the way for backward & forward integration in fuel,
power transmission & distribution. In 1997 the department of Public
Enterprises, Govt.of India granted “Navratna” status with power of
operational authority to the board of NTPC. The objective was to turn the
public sector enterprise into a global giant. This has helped NTPC in speedy
implementation of power projects, absorption of new technologies &
formation of joint ventures in the core generation as well as services
businesses. “NTPC limited” has gone in for diversification initiatives
beyond thermal power to move towards becoming an integrated power
major.
DSCMIT 13
NTPC Limited has an aggressive capacity addition programme to become a
66,000 MW company by 2017 with a thrust on hydropower targeting about
8,000 MW hydro capacities. Integrated coal mining cum power project,
induction of large size unit for future projects, new technologies etc are
some of the drives already initiate.
An Overview
a) Date of
incorporation
: November 7, 1975
b) Mode of
incorporation
: Incorporated as a Government Company under
the provisions of the Companies Act, 1956.
c) Administrative
Ministry
: Ministry of Power, Government of India
d) Details
of Disinvestments
: The Govt. of India was holding the entire paid-
up share capital of the Company till October
2004. The Govt. of India disinvested 5.25% of its
holding in the Company through Offer for Sale
along with Initial Public Offering of 5.25% of the
paid-up share capital by the Company in the year
2004-05. In the post-issue scenario, the holding
of the Government of India is reduced from
100% to 89.5% of the paid-up equity share
capital.
e) Present status : A Government Company within the meaning of
Section 617 of the Companies Act, 1956.
DSCMIT 14
f) Share Capital
i) Authorized
: Rs. 100,000.00 million
ii) Subscribed,
issued & paid-
up
: Rs. 82,455 million
GROWTH OF NTPC INSTALLED CAPACITY &
GENERATION:
Graph-1
PRESENT STATUS:
DSCMIT 15
Graph-2
Graph-3
DSCMIT 16
GENERATION 2006-07
NTPC188.67 Bus
28.50%
ALL INDIA 662.43 BUs
TOTAL CAPICITY AS ON 31-03-2007
NTPC27,404 MW
20.18%
ALL INDIA 130,539 MW
Business of the Company
NTPC has been established to carry out the objectives specified in the
Memorandum & Articles of Association of the Company as amended from
time to time. The main activities of NTPC are setting up of power plants and
power generation through its coal-based and gas-based power plants. The
Company has also diversified into construction of hydro power plants and
generation of hydro power besides trading and distribution of electricity. The
Company is now entering into area of coal mining & coal washries and oil
exploration as well. The business portfolio of the company is as under:
i) Power Project Construction
ii) Generation of Electric Power.
iii) Coal Mining and Coal Washries.
iv) Oil Exploration.
v) Distribution, Trading of Electricity, Trading of Ash and other related
products through its wholly-owned subsidiary companies.
As on date the installed capacity of NTPC is ~25,000 MW through its 14
coal based (20,185 MW), 7 gas based (3,955 MW) and 3 Joint Venture
Projects (314 MW). NT PC acquired 50% equity of the SAIL Power Supply
Corporation Ltd. (SPSCL). This JV company operates the captive power
plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW).
NTPC is also managing Badarpur thermal power station (705 MW) of
Government of India. As on December 31, 2005, the installed capacity of the
company represented approximately 19.35% of India's total installed
DSCMIT 17
capacity, and contributed 27.1% of the total power generation of India
during the April - Dec 2004-05.
NTPC has set new benchmarks for the power industry both in the area of
power plant construction and operations. It is providing power at the
cheapest average tariff in the country. With its experience and expertise in
the power sector, NTPC is extending consultancy services to various
organisations in the power business.
NTPC is committed to the environment, generating power at minimal
environmental cost and preserving the ecology in the vicinity of the plants.
NTPC has undertaken massive afforestation in the vicinity of its plants.
Plantations have increased forest area and reduced barren land. The massive
afforestation by NTPC in and around its Ramagundam Power station (2100
MW) have contributed reducing the temperature in the areas by about 3°c.
NTPC has also taken proactive steps for ash utilisation. In 1991, it set up
Ash Utilisation Division to manage efficient use of the ash produced at its
coal stations. This quality of ash produced is ideal for use in cement,
concrete, cellular concrete, building material.
A "Centre for Power Efficiency and Environment Protection (CENPEEP)"
has been established in NTPC with the assistance of United States Agency
for International Development. (USAID). Cenpeep is efficiency oriented,
eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern
towards environmental protection and continued commitment to sustainable
power development in India.
DSCMIT 18
As a responsible corporate citizen, NTPC is making constant efforts to
improve the socio-economic status of the people affected by the projects.
Through it's Rehabilitation and Resettlement programmes, the company
endeavors to improve the overall socio-economic status of Project Affected
Persons.
NTPC was among the first Public Sector Enterprises to enter into a
Memorandum of Understanding (MOU) with the Government in 1987-88.
NTPC has been Placed under the 'Excellent category' (the best category)
every year since the MOU system became operative.
Recognizing its excellent performance and vast potential, Government of the
India has identified NTPC as one of the jewels of Public Sector ‘Navratnas’-
a potential global giant.
AN OVERVIEW Table-1
Projects No. of Projects Commissioned
Capacity(MW)
NTPC OWNED
COAL 15 22,895
GAS/LIQ. FUEL 07 3,955
TOTAL 22 26,850
OWNED BY JVCs
Coal 3 314*
Gas/LIQ. FUEL 1 740**
GRAND TOTAL 26 27,904
DSCMIT 19
PROJECT PROFILE Table-2
Coal Based Power Stations
Coal based State Commissioned
Capacity(MW)
1. Singrauli Uttar Pradesh 2,000
2. Korba Chattisgarh 2,100
3. Ramagundam Andhra Pradesh 2,600
4. Farakka West Bengal 1,600
5. Vindhyachal Madhya Pradesh 3,260
6. Rihand Uttar Pradesh 2,000
7. Kahalgaon Bihar 1,340
8. NTCPP Uttar Pradesh 840
9. Talcher Kaniha Orissa 3,000
10. Unchahar Uttar Pradesh 1,050
11. Talcher Thermal Orissa 460
12. Simhadri Andhra Pradesh 1,000
13. Tanda Uttar Pradesh 440
14. Badarpur Delhi 705
15. Sipat Chattisgarh 500
Total (Coal) 22,895
DSCMIT 20
Gas/Liq. Fuel Based Power Stations
Table-3
Gas based State Commissioned
Capacity(MW)
16. Anta Rajasthan 413
17. Auraiya Uttar Pradesh 652
18. Kawas Gujarat 645
19. Dadri Uttar Pradesh 817
20. Jhanor-Gandhar Gujarat 648
21. Rajiv Gandhi
CCPP Kayamkulam
Kerala 350
22. Faridabad Haryana 430
Total (Gas) 3,955
Power Plants with Joint Ventures Table-4
Coal
Based State Fuel
Commissioned Capacity
(MW)
23. Durgapur West Bengal Coal 120
24. Rourkela Orissa Coal 120
25. Bhilai Chhattisgarh Coal 74
26. RGPPL Maharastra Naptha/LNG 740
DSCMIT 21
Total(JV) 1054
Grand Total (Coal + Gas + JV) 27,904
Projects under Implementation
Table-5
Coal / Hydro State Fuel
Additional Capacity Under Implementation
(MW)
1. Kahalgaon
Stage II (Phase I) (Phase II)
Bihar Coal500500
2. Sipat (Stage I)
(Stage II)Chhattisgarh Coal
1980500
3. Barh Bihar Coal 1980
4.
Bhilai (Exp. Power
Project-JV with SAIL)
Chhattisgarh Coal 500
5. Korba
(Stage III)Chhattisgarh Coal 500
6. Farakka
(Stage III)West Bengal Coal 500
7. NCTPP
(Stage II)Uttar
PradeshCoal 980
8. Simhadri (Stage II)
Andhra Pradesh
Coal 1000
9. Koldam (HEPP)
Himachal Pradesh
Hydro 800
10. Loharinag Pala
(HEPP)Uttarakhand Hydro 600
DSCMIT 22
11. Tapovan
Vishnugad (HEPP)
Uttarakhand Hydro 520
Total (Coal + Hydro) 10,860
MAJOR HIGHLIGHTS OF NTPC IN 2005-06
(Unaudited financial figures; as per press release dt 20.04.06)
The Company takes a new name ‘NTPC Limited’ aligned to its new
business plans.
The company’s market capitalisation crosses Rs. One trillion (Rs. 1,
00,000 crore) and is one of the top three largest Indian companies in terms of
market cap.
A highest ever generation of 170.88 BUs during 2005-06 registering an
increase of 7.40% over the generation of 159.11 BUs during 2004-05.
With 19.51% [including capacities of Joint Ventures Companies] share
of the total installed capacity of the nation, NTPC contributed 27.68 %
electricity generated in the country during 2005-06.
Coal Stations of NTPC achieved an operating availability of 89.91%.
Coal stations of NTPC recorded a PLF of 87.54 %, which is the highest
DSCMIT 23
for any financial year since inception. The PLF during previous year was
87.51%.
100% realization for the third year in succession.
Provisional and unaudited net sales of Rs. 259,928 million during the
year 2005-06 as against Rs. 225,316 million for the year 2004-05. However,
provisional and unaudited Gross Revenue is Rs. 286,473 million during
2005-06 as against Rs. 255,460 million for the year 2004-05.
Provisional and unaudited Net profit after tax for the year 2005-06 is Rs.
57,061 million as compared to Rs.58,070 million during the year 2004-05.
Total capacity added during the four years of Xth Plan period (2002-
2006) increases to 4000 MW with another 500 MW getting added during
the year 2005-06 taking the total capacity of the company to 24,249 MW
(including capacities of Joint Venture Companies).
Construction works on 9470 MW in progress.
Further projects with capacity of 3720 MW under bidding process
Ratnagiri Gas and Power Supply Pvt Ltd formed with NTPC having a stake
of 28.33% for taking over and operating the Dabhol Power Project.
The Government allots 7 more coal mining blocks to NTPC for captive
use taking the total mines allotted to 8 with an expected output of 50 MT per
annum.
A consortium comprising of NTPC and two other members allotted an
DSCMIT 24
oil exploration block in Arunachal Pradesh
Capital expenditure incurred in 2005-06 on capital schemes was Rs.
71,879 million compared to Rs. 53,603 million in 2004-05
Capital Outlay for 2006-07 set at Rs. 113,250 million
A USD 1 Bn Medium Term Note program established. NTPC becomes
the first Indian Corporate since 1997 to make a successful offering of 10
year Fixed Rate Note amounting to USD 300 million
Standard & Poor’s have revised outlook on the rating of the company
from stable to positive while affirming the ‘BB+’ issuer rating.
An interim dividend of 20% for the financial year 2005-06 amounting to
Rs. 16, 491 million.
Government has assigned NTPC the consultant role to modernize and
improve several plants across the country in the ‘Partnership In
Excellence’ program of the government
Partnering the government in the Rajiv Gandhi Grameen Vidyutikaran
Yojana.
NTPC has also taken up Distribution Generation for rural electrification
of remote villages through non-conventional energy sources.
Simhadri project receives International Project Management award
instituted by International Project Management Association [IPMA]. NTPC
DSCMIT 25
is the only Asian Company that has received this award.
Ranked 3rd “Great Place to work for in India” by M/s Grow Talent and
Business World 2005.
NTPC has achieved all the targets to be rated “Excellent” during 2005 -
06 for the nineteenth consecutive year since inception of the MOU system.
GROSS REVENUE AND PROFIT
Provisional and unaudited net sales of Rs. 259,928 million during the year
2005-06 as against Rs. 225,316 million for the year 2004-05. However,
Provisional and unaudited Gross Revenue is Rs. 286,473 million during
2005-06 as against Rs. 255,460 million for the year 2004-05. Provisional
and unaudited Net profit after tax for the year 2005-06 is Rs.57, 061 million
as compared to Rs. 58,070 million during the year 2004-05.
BUSINESS ENVIRONMENT:
Organizational Culture
NTPC has successfully transformed the working culture of employees who
were under electricity boards to adopt a culture of Quality, Safety and Eco-
friendly generation and providing healthy and stimulating environment after
takeover.
DSCMIT 26
ISO certification for Quality system, Environment management, Occupation
Health and Safety, health services, work place management and social
accountability are some of the milestones achieved during our journey on the
TQM front towards achieving overall goal of excellence in business.
Technology, Equipment & Facilities
NTPC operation & maintenance systems including planning and monitoring
activities equipped with proven and latest technology equipments supported
by a strong team of corporate R&D, OS and CENPEEP are the main features
which have contributed to the turn around of Unchahar. To support its in-
house maintenance function many facilities have been developed like
electrical and C&I labs, Electrical and mechanical workshops where the
repairing and maintenance of plant equipments are carried out with quality.
For comprehensive maintenance and operation skills many executive have
been tried at CEGB, UK and at our Simulator training centre at Korba.
Organization Structure & Leadership
NTPC’s current three-tier structure comprises corporate center (CC),
Regional Headquarters and Stations/ Projects. Unchahar is one of the
stations and comes under Northern Reason. NTPC is a large organization
formulation of all major policies and strategies are done at CC level so as to
uniformly manage and integrate operation all across the organization. CC
has a systematic approach to consultation and feedback with all RHQ’s and
stations/units. The GM is fully accountable for all business operations of the
power station. Operational freedom is available to HOD’s sectional heads to
take appropriate decisions on conduct of their routine work and function
DSCMIT 27
specific initiatives. The delegation of powers further strengthens the
organizational management system. Planning, review and assessment is
facilitated at difference levels.
Regulatory/Statutory Environment
All the activities and business conducted at Unchahar complies with statutes
and law of the land. Applicable laws are part of ISO 9001:2000, ISO
14001:2004, OHSAS 18001:1999 and SA 8000:2001 systems. The
compliances are not limited to those specified by the law but are even
exceeding the requirement in consonance with the NTPC corporate
philosophy and good Engineering Practices. NTPC has always kept valid
clearances, licenses with respect to the applicable statutory and legal
requirements. Comprehensive rehabilitation action plan derived from the
R&R policy of the government of India was developed at Unchahar with the
state and the project affected villages with overall development of these
villages as focus areas. DMP of Unchahar has been revised periodically and
the safety drills are being conducted regularly.
Relationships with Suppliers
Coal, water, fuel oil and spares are the most critical inputs for the power
plants. NTPC have the systems, structures and processes to manage value
creating long term relationship with IOC, CCL, BCCL, and BHEL. Vender
development is an on going process. They work with partnership spirit with
their venders, suppliers and service providers and take their feed back for
self-improvement. They work closely with BHEL keeping in mind their
focus on issues of technology, safety and environment. NTPC’s IT system
DSCMIT 28
and various tools help them to manage their materials, hospitals, contracts,
finance, and HR and O&M activities. E-procurement is a new initiative for
faster and wider coverage for procurement
Business Challenges
Despite significant reforms since 1991-92, the power sector in India is
ridden with a host of problems, and hence reform is a key priority area,
given the sector’s impact on country’s economics. The poor financial health
of SEBs (customer and competitors as well) has been a dragging force
disabling power sector to evolve and mature. Absence of fully integrated
national power grid is another major constraint for the power sector, and
does not offer optimized opportunities to better performing power plants.
The recently pronounced Electricity Act 2003 is a good government
intervention but still a lot is desired.
NTPC has been working very closely with various constituents of the power
sector, e.g. MOP, MOF, CEA, SEBs, Regulators, etc, to rejuvenate the
health and maturity of power sector in India. Unchahar has been involved in
several initiatives of NTPC for the betterment of power sector and the better
relationship with the stakeholders.
NTPC has well established systems for performance review and
improvement ,which is implemented and deployed at Unchahar .There are
two fountainhead systems that set, drive, measure and improve performance
at corporate level, regional level, station level, department level and
individual level: (1) MOU, and (2) recently introduced PMS. Organizational
improvement studies are carried out from time to time through partnership
with renowned consultants like Dr.Athreya, IIM, AT Kearney, etc. to carry
DSCMIT 29
out strategic improvements. For last 2 years the whole organization is
involved in Organizational Transformation (project “DISHA”) in association
with AT Kearney. CII’s Business Excellence model is being used since
2003. Perception measures of stakeholders and measurement of internal
performance metrics and process results are taken in to consideration to
improve policy, strategy, systems and processes. Process orientation has
been further reinforced by having ISO systems for quality, environment and
safety. Since long we have been following a system of structured
forums-e.g. , ORT, SMC, RMC, MC, etc.- for review, planning and
improvement. Total quality movement has accelerated the journey of
improvement. People’s involvement in improvement programmes is
refelected by their participation in PC, QC, Suggestion schemes,
Departmental council Meetings, POGs, 5S implementation, etc.
Benchmarking, six sigma, Kaizen, Balanced Score Card are being utilized to
bring in business improvements. People from all cadre and functions are
committed to building Unchahar as an excellent organization and role model
among NTPC stations.
FUTURE OF INDUSTRY:
A world class integrated power major,
powering India’s growth,
with increasing global presence.
DSCMIT 30
NTPC 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 price and ensure timely realization of revenues.
Adopt a broad based capacity portfolio including hydropower, LNG,
nuclear power, and non- conventional & eco-friendly fuels.
Plan and speedily implement power projects using state-of-the-art
technologies.
Be an integrated utility by implementing strategic diversification in areas
such as power trading, distribution, transmission, coal mining, coal
beneficiation etc.
Develop a strong portfolio of profitable businesses in overseas markets
including technical services, generation assets etc.
Continuously attract and develop competent and committed human
resources to match world standards.
Lead fundamental and applied research for adoption of state-of-the-art
technologies, breakthrough efficiency improvements and new fuels.
Lead development efforts in the Indian power sector including assisting
state utility reform, policy advocacy etc.
DSCMIT 31
Be a socially responsible corporate entity with thrust on environment
protection, ash utilization, community development, and energy
conservation.
NTPC Core Values
Business Ethics
Customer Focus
Organizational and Professional Pride
Mutual Respect and Trust
Innovation and Speed
Total Quality
DSCMIT 32
CHAPTER-2
DSCMIT 33
INTRODUCTION AND BACKGROUND OF NTPC UNCHAHAR
ORIGIN AND GROWTH:
Unchahar Station’s foundation stone was laid by Late Prime Minister Mrs.
Indira Gandhi in June 1981 for five units of 210 MW Its first and second
units of 210 MW capacity each were commissioned in 1988 & 1989
respectively during Uttar Pradesh Rajya Vidvut Utpadan Nigam (UPRVUN)
period.
The plant performance was for below the expected level of the stakeholders
whereas the performance level of NTPC owned contemporary station was
much above the national average instilling confidence amongst the
DSCMIT 34
customers in general and sector players in particular regarding the
company’s ability and capability to deliver the desired results. Under such
scenario in 1992, NTPC was entrusted with the responsibility of
transforming Unchahar from low performing station to bring at par with
NTPC’s station. Thus it become the first take over station for NTPC with a
challenge to bring about performance turn around.
The installed capacity of the station which was 2 x 210 MW at the time of
take over has been doubled by adding two more units of 210 MW capacity
each in 1999 & 2000. One more unit of 210 MW is added in 2006.
The operational performance level which was 18% Plant load factor with
27% availability at the time of takeover was significantly improved using
de-bottlenecking techniques. Plant load factor went up to 35.5% in first six
month and 73.7% in twelve months. Corresponding Availability Factor
improvement was 49.5% and 79.5% respectively. Further within a span of
four years after takeover the yearly Availability& PLF level of 2 x 210 MW
units was improved to 94% & 84% respectively. This outstanding
performance of the station was achieved by supplementing key operational
areas with well trained personnel drawn from NTPC owned station and
bringing about work culture change amongst the employees taken over from
previous management.
Consolidating on the above and with addition of 2 x 210 MW units, the
operational performance level of 4 x 210 MW station was further improved,
through concerted efforts by dedicated team, training & development of
DSCMIT 35
employees, introduction of NTPC’s system on operation and maintenance,
adoption of latest available technologies. The station continuously improved
its ranking year after year and has now attained 1st position in NTPC and 3rd
in the country during current financial year 2005-06 with a PLF of 95.69%.
The plant has risen from rock bottom performance levels to country’s top
performing station while operating in regulatory regime and using wide
variety of coal having an ash content around 40%, received from more then
30 sources.
Safe handling and environment friendly disposal of approximately 6,000 MT
of ash generated on daily basis itself was a big challenge. The conventional
wet ash disposal system was partly converted to dry fly ash system to
facilitate its utilization. Further the system was augmented to facilitate and
achieve 100% ash utilization.
A BRIEF PROFILE OF THE PROJECTTable-6
Location In Unchahar Tehisl, Raebareli District PIN-
229406
Approach On Lucknow Allahabad State Highway 120 Km
from Lucknow, 85 Km from Allahabad and 35
Km from Raebareli.
Land Area For Stage-I 1953 Acres including township. For
Stage-II 250.7 Acres
Approved Capacity 1050 MW
Installed Capacity Stage I & II : 840 MW (2 x 210 + 2 x 210 MW)
DSCMIT 36
Stage III :210 MW (1 x 210 MW)
Coal Source CCL, BCCL, ECL – Coal Mines approx 700 Km
fro the station
Fuel requirement Around 14,000 MT per day
Water Source Sharda Sahayak Canal (Main Source), Dalmau
Pump canal during shutdown of Sharda
Sahayak Canal
Approved Cost Stage I & II : Rs 2337.09 Crores
Stage III : Rs 938.61 Crores
Unit Commissioned Unit I : 210 MW November 1988
Unit II: 210 MW March 1989
Unit III:210 MW January 1999
Unit IV : 210 MW October 1999
Unit V : 210 MW September 2006
Power Evacuation Double circuit 220 KV lines to Lucknow
(UPPCL), two double circuit line to Kanpur
(PGCIL)
PRESENT STATUS AND FUTURE VISION OF THE ORGANISATION:
Graph-4
Power Allocation
DSCMIT 37
Graph-5
Station Generation
DSCMIT 38
Financial year
MU
Unchahar’s turn around has been wonderfully brought out in the book
“India 2020- A Vision for the New Millennium” by none other then first
man of our country, president A.P.J. Abdul Kalam. The contents are as
given.
Let us not overlook successes even in this gloomy situation. Unchahar
thermal power station was acquired by NTPC from government of Utter
Pradesh. Performance was improved dramatically by using de-bottlenecking
techniques. Prior to the take over the Unchahar station had a PLF of 18%; in
six months thereafter it went up to 35.5% and in the twelve months to 73.7%
! The availability factor which was 27% at the time of takeover, went up to
49.5% six months later and about 79.5% after 12 months.
Specific oil consumption, which is an indicative of wastage and inefficiency
of operation, which was at 21.8 milli litres (ml) per Kilowatt hour (KWh) at
the time of takeover went down to 6.3 ml/KWh in 12 months.
These dramatic result have been obtained under ordinary or even oppressive
circumstances, and despite the absence of recognition by the system. While a
day’s power breakdown or an audit report on delay or excessive project
costs hits headlines, nobody even brothers to mention these achievements in
a small column of a newspaper. Nor even is such achievement talked about
by politicians or bureaucrats !
We don’t know who are the heroes & heroines who made these
achievements possible through teamwork !”
DSCMIT 39
ORGANISATION CHART OF NTPC-UNCHAHAR
DSCMIT 40
GM
AGM (O&M)AGM (Projects)AGM(Commg)
DGM (EEME)
DGM (EED)
DGM (AMG)
DGM (C&I)
DGM (T/S Adm)
DGM (TGOS)
DGM (MTP)
DGM (F&A)
DGM (BMD)
DGM (HR)
DGM (Mech E) DGM (EMD)
DGM (Opn)
DGM (FM) SR MGR(Safety)
DGK (TS)
CMO
DGM (TQM)
DGM (FQA)
DGM (C&M)DGM (FES)
Dy Mgr (Vig)
SWOT Analysis
STRENGTHS:
Govt. of India granted “Navratna” status with power of operational
authority to the board of NTPC.
NTPC has achieved all the targets to be rated “Excellent” during
2005 -06 for the nineteenth consecutive year since inception of the
MOU system.
Ranked 3rd “Great Place to work for in India” by M/s Grow Talent
and Business World 2005.
DSCMIT 41
A part of ISO 9001:2000, ISO 14001:2004, OHSAS 18001:1999 and
SA 8000:2001 systems.
NTPC stations having achieved a PLF of 92.15% in the year 2004-
2005.
A "Centre for Power Efficiency and Environment Protection” has
been established in NTPC with the assistance of United States Agency
for International Development. (USAID).
NTPC is committed to the environment, generating power at minimal
environmental cost and preserving the ecology in the vicinity of the
plants.
Based on 1998 data, carried out by Datamonitor UK, NTPC is the 6th
largest in terms of thermal power generation and the second most
efficient in terms of capacity utilisation amongst the thermal utilities
in the world.
WEAKNESS:
Railway has limitation of carrying goods.
Limited sources.
Too much distance between mines and Plants.
Monopoly of suppliers.
DSCMIT 42
OPPORTUNITY:
There is high demand for electricity so there is good opportunity to
growth.
Growing different power generation areas.
Improvements of technology.
THREATS:
Cyclical & Rising Furnace Oil Prices.
Process orientation has been further reinforced by having ISO systems
for quality, environment and safety.
In area of power generation other competitors may affect the
generation of NTPC.
DSCMIT 43
AWARDS AND ACCOLADES OF NTPC FGUTPP
DSCMIT 44
FGUTPP rated 5th best power station in the country in the FY 2001-
2002.
FGUTPP has won silver medal under Meritorious Productivity
Scheme of GOI for the years 1997-98 & 1998-99 consecutively.
Control Point quality circle stood first in the Northern Region QC
Competition organized by Confederation of Indian Industries (CII) at
Lucknow on 23rd Sept. 2000.
Adjudged best in Cultural programme in Kanpur chapter convention
of quality circle organized by Quality Circle Forum of India (QCFI) at
Kanpur during 26th – 28th Sept. 2000.
Stood 2nd in National Convention of Quality Circles of NTPC Farakka
during Jun 2001.
Awarded 1st prize in slogan competition and meritorious award in QC
presentation at National Convention of Quality Circles held at
Hyderabad from 20-22 Dec. 2001.
Awarded the first prize of prestigious National Award of Environment
& Ash Utilization for Thermal Centenary Celebration 1999 (under
700 MW category) by Ministry of Environment and Forests.
Won the Safety award from British Safety Council for two
consecutive years (1998-1999).
FGUTPP received second best for Industrial Relation (IR) Award for
two consecutive years i.e. 1999-2000 & 2000-2001.
Two children from FGUTPP won “Bal Shree” award for the year
2000 & 2002. The award was presented by President of India at
Rastrapati Bhawan.
“Ayurmanch” from hospital won 2nd place in national professional
DSCMIT 45
competition held at PMI on 19th Dec. 2001.
“Shram Shakti” quality circle stood first in NTPC Northern Region
Convention held at Singrauli in Jan. 2002.
Construction work of Unit #4 completed without any reportable
accident.
Awarded with ISO 9001:2000, ISO 14001:1996 & OHSAS
18001:1999 certificates for its Quality Management, Environment
Management and Occupational Health and Safety Management
systems.
Winner Shield for the best performance in protection of environment
and ash utilization for 2001-2002.
GOI Productivity Awards in the field of Fuel Oil Consumption in
1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000.
GOI Productivity Awards in the field of Auxiliary power consumption
in 1992, 1995, 1997, 1999.
Certification of 5’S’ in Dec. 2003.
Certificate from District Magistrate for employment of Handicapped.
Gold Medal for Peak-Hour Generation in FY 2001-2002.
Silver Medal for Peak Hour Generation in FY 1997-1998-99 and
2002-2003.
FGUTPP rated 9th best power station in the country in the FY 1999-
2000 & 2000-2001.
Received Golden Globe Award (2003-2004) for Industrial Relations
Green Tech Safety Gold Award for 2004-2005.
DSCMIT 46
CHAPTER-3 Detail Study of the departments
DSCMIT 47
CONTRACT
DSCMIT 48
An agreement between two or more competent parties in which an offers is
made and accepted, and each party benefits. The agreement can be formal,
informal or written. Some contracts are required to be in writing in order to
be enforced.
In NTPC 50% work are done by contract basis
Contract functions in NTPC Projects/Station can be classified into two broad
categories i.e.
Pre- award Activities
Post-award Activities
This Pre-Award Contracts covers various activities starting from
conceptualizing and preparation of the indent to award of Contract. The
basic framework is provided by the Delegation of Power and Work &
Procurement Policy of NTPC. The main activities relating to pre-award
function along with the responsibility centre and the approving authority
have been identified as detailed hereunder and a few of these described in
detail thereafter.
Table-7
SN MAIN ACTIVITIES RESPONSIBILITY APPROVING
AUTHORITY
1. Technical Approval &
Administrative approval
of Cost Estimate
Indentor / Tech.
Services
Competent
Authority (C.A.)
as per
Delegation of
power
2. Budget Certification Indentor / Tech. Finance
DSCMIT 49
Services
3. Mode of Tendering Contracts C.A. as per
D.O.P.
4. Qualifying Requirement
(QR)
Indentor / Tech.
Services (ruted
through QR
Committee)
GM (Project)/
HOP/HOS
5. Preparation of Technical
Specification, drawing &
Scope of work
Indentor / Tech.
Services
C.A. as per
D.O.P.
6. Preparation of Tender
document
Contracts (Technical
Specification to be
provided by the
indentor)
C.A. as per
D.O.P
7. Issue of Notice Inviting
Tender (NIT)
Contracts C.A. as per
D.O.P
8. Constitution of Tender
Committee (T.C.)
Contracts As per D.O.P.
9. Opening of tender Contracts (presence
of an executive from
Finance deptt. is
also required during
opening pf the
tender)
DSCMIT 50
10. Technical evaluation (if
required)
Indentor / Tech.
Services
11. Preparation of
Comparative Statement
(CS)
Contract to be
vetted by Finance
12. Co- ordinating T.C.
Meeting
Contracts on behalf
of the Committee
13. Commercial evaluation
by T.C.
Contracts
14. Preparation of evaluation
report and its approval
T.C. As per D.O.P.
15. Pre- award discussion and
approval of resolution
T.C. As per D.O.P.
16. Award of Contract and
Issue of Letter of Award
(LOC)
Contracts to be
vetted by Finance
Signing
Authority as
per DOP
17. Signing of Agreement Contracts to be vetted
by Legal deptt.
As per DOP
TECHNICAL APPROVAL
Requirements are firmed up by the indenting department. Requirement
should be detailed and specific. Approval of the Competent Authority is
DSCMIT 51
obtained as per DOP by the indenting Department, for technical
requirement’s.
COST ESTIMATE
The cost estimate of a package should be as realistic as possible. Generally
the cost estimate will be prepared based on the CPWD, Delhi Schedule of
Rates (DSR) for civil works and Schedule of Rates (SOR) for electrical
works.
MODE OF TENDERING
Section of agency for the purpose of execution of work should be done on
the basis of competitive bidding.
For the purpose of Tendering, the following shall be kept in mind :
The option of bidding could be through Open Tender or Single Tender basis.
While choosing the mode of tendering, reasons/justification for selection of
the particular mode should be recorded while obtaining the approval of the
Competent Authority.
Estimated cost of the work to be indicated in the Notice Inviting Tender
(NIT) will be 90% of its approved cost estimate.
Earnest money deposit (EMD) and the cost of tender documents shall be as
per the guidelines issued by Corporate Contracts from time to time.
OPEN TENDER
Open tender will be resorted to for high value packages in line with
provision of D.O.P. Abridged version of Notice Inviting Tender (NIT) shall
DSCMIT 52
be published in Newspapers on all India coverage basis and detailed NIT
shall be published on NTPC’s website and other free private website. Such
NIT will have provisions for appropriate Qualifying Requirements (QR)
depending on the value and nature of job. It is important to ensure that the
terms and conditions stipulated in NIT or not. (Normally for indent value
of Rs 5 lacs and as per DOP guidelines issued from time to time)
LIMITED TENDER
By invitation to sources already registered with NTPC or having proven
performance in past or any reference document as per Work and
Procurement policy. Whenever the estimated cost of the package does not
warrant / justify action for open tender, as provided in the DOP, Limited
tendering will be resorted to. For the purpose of Limited Tender, selection of
parties should be done carefully and in a transparent manner. (for Indent
value normally below Rs. 5 lacs and as per DOP guidelines issued from
time to time.)
SINGLE TENDER
The mode of Single tender should generally be avoided except in case of
items of proprietary nature, extreme urgency and uncommon nature of work
calling for specific skill and experties etc.
Finalization of rates in case of single tender is to be done very carefully
since there may not be any supporting offers / basis available for
verification/ justification of the quoted price. Therefore it is important that
the responsibility of the price are ensured before awarding the contract.
DSCMIT 53
Responsibility can be ascertained by comparing with the ordered price of
any other unit of NTPC or other public sector/Govt. Agency.
TENDER DOCUMENT
In case of open tendering the order document shall, interalia, contain the
following :
Reference to detailed specification and drawing wherever necessary.
Qualifying requirements carefully designed to permit entry only to
tenderers who posses the technical, financial and managerial
capability to perform and the same will be finalised by committee.
Reference to General Purpose Condition (PC) applicable to the
transaction.
Special terms and conditions (if necessary).
Quantity schedule.
Delivery period.
Instruction to bidders.
Proforma and guideline s for submission of EMD in the form of BG.
In case of single and limited tendering where tender enquiry is required to be
used regularly to registered vendor or vendors having proven performance in
the past, qualifying requirements and general purchase condition may not
required to be included in each of the invitations to the tender. Document as
mention above shall however from part of tender document in each case of
open tendering.
DSCMIT 54
TENDER COMMITTEE
As per Delegation of power beyond certain value of procurement a tender
committee consisting of representatives of indenting Deptt. and finance
Deptt. needs to be formed to finalised recommendation of the procurement
action witch may be approved by competent authority.
Tender Committee may be constituted by members from the group which is
raising the indent, dealing officer in Materials department at appropriate
rank and the corresponding officer in the Finance Concurrence Group for all
cases exceeding the ceiling limit as per DOP. The TC should consider and
recommend all the terms and condition, prices, QAP and inspection
procedures, phasing delivery, if any required.
QUALIFYING REQUIREMENT
The Qualifying requirement (Q.R.) is required for open tender only. Q.R. is
to be prepared on case to case basis depending on various factors like Cost
of the Package, Technical Importance. Time Frame for implementation and
Quality Plan requirement etc. The primary purpose of Q.R. is to asses the
Financial & Technical Capability of the bidders who can deliver the
Goods/services as per the requirement.
For Qualifying Requirement Q.R. of a package, a committee will be
constituted at projects/station with representative of site Materials. Finance
and Indenting departments at appropriate level. The Q.R. will be approved
by the Head of project / station or the award approving authority of the
package whichever is of lower level. However for functional convenience
project / station may consider a standing Q.R. committee.
DSCMIT 55
Q.R. once stipulated in the NIT cannot be altered / relaxed. In case of poor
response against a stipulated Q.R., the Q.R. committee may review the same
and revise for the purpose of re-floating the tender.
PREPARATION OF TENDER DOCUMENT
Completeness of tender documents make the task of tender preparation,
evaluation and award much easier. It also helps smooth execution of the
work by eliminating the possibility of disputes/ differences arising out of
conflicting interpretation of conditions. The important areas, which are to be
taken care of while preparing the tender document, are as follows :
SCOPE OF WORK
SPECIFICATION
TERMS AND CONDITION
CHEQUE POINTS FOR THE PREPARATION OF TENDER
DOCUMENTS
Following specific instructions are to be included in the Tender
document :
Language of Bid – in English.
Instruction for Bid security (Relaxation, wherever applicable, to be
mentioned).
Instruction for bidder qualification (QR), wherever applicable.
P.F. code number prom RPF commissioner.
Instruction for recording the deviation/ exception. Specific mention
for unacceptable deviation that will make the offer non responsive.
Mobilisation details, wherever required.
DSCMIT 56
Quality plan, wherever required.
Wok programme.
Bid validity.
Correction of arithmetical errors.
Evaluation criteria.
The bound signing of contract agreement.
Performance gurantees.
NOTICE INVITING TENDERS (NIT)
In case of open tenders where NITs are issued, the detailed NIT on websites
should contain the following information :
1. Corporate signature
2. Project name & location
3. Mode of Tendering
4. Formal Invitation (NIT no. & Date)
5. Brief scope of work
6. Details of sale of tender Document, Bid submission & Bid opening
7. Cost of Tender Document
8. Value and mode of Bid Security
9. Specific Qualification Requirement
10.Any specific requirement
11.Address for Communication
BID OPENING
Tender will be opened on the due date and time indicated in the tender
enquiry, in the presence of authorised representative with proper
DSCMIT 57
authorisation of the tenderers, if they wish to present themselves. The
tenders will be opened by purchase and finance executive nominated by
respective HODs. When the tenders are opened the name of all present
tenderers would be read out for the benefit of the tenders present and the
quoted rates of each tenderers will also be read out. Any omission or
irregularity such as absence of signature of a tenderers, absence of earnest
money deposit, references etc. may be pointed out on the spot for the
information of the tenderers. All the tenders opened will be entered giving
details as under :
Name of the work.
NIT no. and date.
Bid opening date and time.
Names of the parties who have submitted the offers.
Details of EMD.
Name & Signature of the bidders representatives attending.
Signature of the NTPC- members opening the Tender.
BID EVALUATION
Bid evaluation should be carried out strictly in line with the evaluation
criteria mentioned in the tender document. All technical and commercial
conditions, deviations taken by the bidder and entered in the standard
deviation statement should be cost compensated by the cost of withdrawal
mentioned by the bidder therein. However for case where deviation alone
has been mentioned in the statement without giving the cost of withdrawal,
the financial implication of the Deviation should be estimated in a fair and
DSCMIT 58
reasonable manner for the purpose of cost compensation during the
evaluation.
EVALUATION REPORT
Based on the technical and commercial evaluation of the tenders, the tender
committee will put up a final evaluation report for approval of the
Competent Authority. The evaluation repot should generally include the
following details alongwith the detailed evaluation :
1. Name of the package.
2. Brief Scope of Work
3. Cost estimate
4. Invitation to Bid
5. Preliminary evaluation
COMPARISON OF THE EVALUATION BID
Comparison of the evaluated lowest (L1) technically and commercially
responsive/ acceptable bidder with respect to the approved cost estimate and
reasonability of the offer is to be mentioned. Apart from reasonability of the
total tendered amount, any abnormal variations in the rates of particular
item/items are also to be deliberated.
APPROVEL FOR PLACEMENT OF AWARD
Tender committee shall put up a proposal for approval of the Resolution
reached with the successful bidder to the Competent Authority
DSCMIT 59
PLACEMENT OF AWARD
Draft latter of Award shall be prepared by Contract in the line with
guidelines issued from time to time in this regard, specially highlighting the
post bid resolutions.
Draft latter of award shall be vetted by Contracts and Finance for the
correctness of the contents of the latter of Awrd.
Latter of Award shall be signed and issued in duplicate by the Contract
Executive authorized as per DOP.
ACCEPTANCE OF LETTER OF AWARD
Contract Deppt. Should obtain the duplicate copy of Latter of Award duly
signed by authorised representative of contractor on each page, as a token of
acknowledgement, unequivocal acceptance and confirmation of the Latter of
Award, within 15 days of issuance of LOA.
VENDOR REGISTRATION
For the purpose of vendor registration, Abridged Notice Inviting application
from prospective vendor to be published in the leading newspapers on all
India basis and detailed notice to be hosted on the website of NTPC and
some other free private website as per Corporate Contracts and subsequent
amendment/ instruction issued from time to time. Application will be invited
for different categories of vendors depending on value and nature of job.
DSCMIT 60
LATE AND DELAYED TENDER
Late tenders are those which have been posted on or after the due date and
received subsequently. Tenders received through couriers after the bid
opening time and date shall be treated as late tenders. Delayed tenders are
those which have been posted before the due date but received after the bid
closing time and date.
Delayed tenders received through Regd. Post / Speed Post which clear postal
stamp showing date of posting as before the tender opening date and
received within 6(six) working days of bid due date, may be opened and
considered with the approval of competent authority. In case of decision on
the tender has been taken earlier to six working days, they shall not be
opened.
Delayed tenders, without superscription of tender enquiry No. and due date
will naturally be opened in normal course. In advertently such tenders and
offers received in open condition may be returned to the venders
immediately by the concerned executive with the approval of HOD
(M&CS).
NEGOTIATION
Negotiation should not be normally undertaken wherever adequate
competition exists. However, if it is found that the price are unreasonably
high / low as compared to the last purchase price / estimate or in case of
some technical / commercial clarification, negotiation can be done with the
approval of competent authority as per DOP.
DSCMIT 61
Normally negotiation should be held with technically and commercially
evaluated lowest (L1) vendor only.
EARNEST MONEY & SECURITY DEPOSITE
For enlistment / registration of supplier the cost of documents (Application
form) and registration fees as prescribed shall be applicable. In addition
Refundable Security Deposit of Rs. 10,000/- will be furnished by the
vendors on being registered.
While sending enquiry to the parties, Earnest money may not be insisted in
case of limited tender / single tender, for packages of estimated value up to
Rs. 2.0 lacs after taking appropriate actions in line with Corporate Materials
Circular and its amendment issued from time to time. For Limited Tender &
Single Tender case above Rs. 2.0 lacs, EMD may be asked for depending on
the merit of the case.
ERNEST MONEY DEPOSIT WILL BE REGULATED AS FOLLOWS
:
Estimated value EMD Money
Up to Rs, 500 lacs - 2% estimated value
Above Rs. 500 lacs -1% subject to minimum of
Rs. 10 lacs
DSCMIT 62
DSCMIT 63
Purchase is divided into three parts-
I. Indent
II. Enquiry
III. Purchase order
INDENT:
For the purpose of indenting materials planning is to be done on the basis of
following groups:
1. Stock items(Automatic Recoupment items)(AR)
2. insurance items(I)
3. Unit replacement items(UR)
4. Capital items(P)
5. Other non-stock items(O)
ABC classification of items:
ABC analysis is a technique by which selective control can be exercised on
all Materials Management activities.
A-class items: Items having annual consumption over Rs 1
lakh
DSCMIT 64
B-class items: Items having annual consumption over Rs
10,000 & up to Rs 1 lakh
C-class items: Items having annual consumption up to Rs 10,000
Mode of indenting:
1. For A class items of spares in nature, indenting shall be done
equipment wise. However for ‘A’ class consumables, the same may
be clubbed for similar type of items. For ‘B’ & ‘C’ class items,
indenting shall be done on the basis of main group. Each indent
should contain items of same main group.
2. The indent as per described format should be completed in all
respects with the following information’s.
a) Description of item should contained detailed
specifications which should include the relevant IS/BS
standard or any other acceptable standard drawing details etc.
so that calling of sample may be avoided as far as possible.
b) Quantities to be intended item wise shall depend on past
consumption, anticipated consumption in future, nature of
item including shelf life & classification of items as above.
c) Estimated value of the indent should be as far as practicable.
Basis of estimates should be either on last purchase price with
DSCMIT 65
escalation if any or market trend or on the basis of technical
specifications e.g. Size, weight etc.
d) Indent should be raised only when the budget is allocated for
that section/group. In case of extreme urgency and when the
budget is not allocated the same can be raised with the
written approval of head of project & same will be got
certified by finance budget section before placement of
purchase order.
e) Approval of indents to be done as per existing delegation of
power issued from time to time & in
accordance with the provision of works & procurement
policy.
f) Scrutiny of indents by purchase
Before registration of indents, purchase section shall
scrutinize the indents with regard to various points e.g.
completeness of specification, realistic delivery period,
proprietary article/standardization certificate, approval of
competent authority or any other deficiencies in the drawing
etc. requiring clarification in the absence of which
procurement is not possible.
g) Registration of indents
The indent will be registered in purchase section through
computer & 6 digit no. shall be given.
DSCMIT 66
h) Regulation of indents by stores
All indents shall be forwarded by the indenter to stores (MPIC
group) for achieving the following objectives.
I. Verification of adequacy of material
specifications/quality plan/inspection procedure.
II. Stock availability & expected deliveries if any.
III. Substitution of near identical material for the indented
item, if available.
IV. Review of quantity of item if required to achieve
economic/optimum procurement.
V. Correctness of the data furnished in the indent which is
essentially required for a tender finalization without
resorting to another reference after tenders are open.
ENQUIRY-
MODE OF TENDERING-
1. Open Tender:
In this the advertisements are given in newspapers and also on the
website of the company. So the interested parties can send an intent
DSCMIT 67
letter to the company after reading this advertisement. This is
usually given for indent value of Rs 5 lacs or more.
2. Limited Tender:
In this the parties which are already registered with NTPC or in past
have proved themselves are invited. This is usually given for indent
value less than Rs 5 lacs.
3. Single Tender:
In this there is only a single party. The party may be OEM/OES or
the tender is provided if there is urgency.
Selection of modes of tendering:
The mode of tendering shall be selected based on:
a) Total estimated cost of the purchase to be made.
b) Type of materials.
c) No. of proven parties known & available.
d) Urgency of requirement.
Tender documents:
In case of open tendering, the tender documents shall contain the following:
DSCMIT 68
a) Reference to detailed specification and drawing wherever
necessary.
b) Qualifying requirements carefully designed to permit entry only to
tenderers who possesses the technical, financial and managerial
capability to perform and same will be finalized by the committee.
c) Reference to General Purchase Condition (GPC) applicable to the
transaction.
d) Special terms and conditions (if necessary).
e) Quantity Schedule.
f) Delivery period.
g) Instruction to bidders.
Qualifying Requirement:
The qualifying requirement (Q.R.) is required for open tenders only. Q.R. is
prepared on case to case basis depending on various factors like cost of the
package, Technical importance, time frame for implementation and quality
plan requirement etc. The primary purpose of Q.R. is to assess the financial
and technical capability of the bidders who can deliver the goods/services as
per requirement.
For the purpose of formulating Q.R. of a package, a committee will be
constituted at projects/stations with representatives of site materials, Finance
and indenting departments at appropriate level.
DSCMIT 69
While preparing the Q.R. it is to be ensured that the Q.R. does not become
too stringent leading to poor or no response. It is therefore necessary to
indicate the no. of parties likely to meet the Q.R. being proposed for a
particular package.
Cost of tender documents:
In case of open tender the tender documents fee shall be decided on the basis
of estimated value of the indent before going for advertisement. Accordingly
same shall be fixed as per the following guidelines:
Table-8
S.I. No. Estimated value of indent Cost of tender
documents
1. Upto Rs. 10 lacs Rs. 200/-
2. Above Rs. 10 lacs & upto Rs. 25 lacs Rs. 300/-
3. Above Rs. 25 lacs & upto Rs. 50 lacs Rs. 500/-
4. Above Rs. 50 lacs & upto Rs. 100 lacs Rs. 750/-
5. Above Rs. 100 lacs & upto Rs. 500 lacs Rs. 1500/-
6. Above Rs. 500 lacs Rs. 3000/-
Tender opening:
Tenders will be opened on due date and time indicated in the enquiry, in the
presence of authorized representative with proper authorization of tenderers,
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if they wish to present themselves. The tenders will be opened by purchase
and finance executives nominated by respective HOD’s. When the tenders
are opened the name of all present tenders would be read out for the benefit
of the tenderes present and the quoted rates of each tender will be read out.
In case of difference in the rates quoted in figures and words, the amount in
words shall prevail.
The bid opening date as notified to the bidders through enquiry should be
strictly adhered to. However, in case of unforeseen circumstances or due to
administrative reasons the bids are not opened on the due date. The same
shall be opened on the next working day at the same time without any
further approval. In case of holidays the bids received up to the time of
closing of bids on the next working day shall be considered for opening.
PURCHASE ORDER:
After then tender is awarded the purchase order is generated and all the
required items are purchased.
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FUNCTIONS OF STORES WING
1. The Site Materials Management function ensures adequate and timely
supply of materials at right price to the contractor for smooth
execution of power projects and to operating departments for smooth
running of the power plants. The major tasks performed by Stores
Wing forming a part of the materials management function are as
follow:
2. To arrange clearance, receive, inspect / arrange inspection, accept,
arrange payment and store materials.
3. To systematically issue the materials for construction, erection, and
operations etc.
4. To maintain uptodate records on procurement, issue and stocks.
5. To maintain continuing and sustained liaison with the Purchase Wing,
Finance, Indenting Department, suppliers and streamline the optimum
and smooth flow of materials by transporters for speedy release of
payments and expediting settlement of rejection, disputes etc. that
arise from time to time regarding materials supply.
6. To plan and arrange preservation, storage and requisite materials
handling facilities.
7. To procure insurance policies for various assets of the organisation,
covering various risks as per the policy, prefer claims for losses and
pursue settlement.
8. To identify surplus and obsolete materials at the earliest and scrap.
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9. To judiciously regulate the flow of materials by coordinating with
Purchase / supplier / Inventory Planning so that service levels are
maximized and inventory kept to the optimum.
10.To maintain proper accounts of materials arranged.
11.The organization will be headed by a Head of Materials Management
(HOMM) whose role and function are described below:
12.The stores Wing will function under the direction and overall
supervision of HOMM. The responsibility of ascertaining the need of
materials and stores of the power plant and of arranging the supply of
such materials and stores in the most efficient, economic and
expedient manner possible, shall lie with him. He will also be
responsible for the receipt, inspection and custody of materials and
finally for their issues on indents received from the authorized
officials of NTPC.
FUNCTION OF HEAD OF MATERIALS MANAGEMENT (HOMM)
The stocks of stores on hand, whether with the Stores Wing or other
departments represent funds which are non-productive. While stocks should
be such that stores required by NTPC are readily available, they should be a
small as possible and losses due to obsolescence or deterioration should be
minimum possible. The centralized control over the storage and procurement
functions that is required for this purpose will be vested in the HOMM, who
will be the head of MM deptt. and will be responsible for the Purchase and
Inspection; and Custody and Issue of Stores.
All materials for which the consuming deptts. have no immediate use should
be returned to the stores wing. The HOMM shall be responsible for their
DSCMIT 74
survey and valuation, and the disposal by sale or otherwise. He shall also
deal with all surplus and unserviceable materials of NTPC.
The HOMM is not a disbursing officer, nor is he required to keep general
accounts of the Stores transactions. His duties in this respect will be limited
to the maintenance of numerical records of stores in stock and preparation of
the initial documents of receipt and issue.
GENERAL / SUPERVISORY CONTROL
The HOMM shall arrange for submission to him of such statements and
returns as may be necessary to keep him informed of the stocks available in
his depots, the manner in which the indents of the departments are being
complied with, the inflow of materials not required by the deptts. and the
steps taken to dispose of surplus and unserviceable stores.
PLANNING OF SUPPLIES OF STORES
The HOMM is responsible for preparing a correct estimate of the quantities
of stores to be purchased and for making the most suitable arrangements
possible for the economic purchase of stores. In this, he will be guided by
the Purchase and Work policy, the contract rules and the rules prescribing
the purchase of certain articles through specified agencies.
FUNCTIONAL GROUPS
In order to facilitate division of responsibility of Materials Management
Deptt. involving following functional groups:
Storage function
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Purchase
Policy planning and monitoring
STORAGE
Storage Operations are divided into three distinct areas on the basis of
distinct activities:
1. Good Receipt
Goods clearance and dispatch
Goods inspection & inward movement
Risk Management
2. Custody and Warehousing
3. Materials Planning and Inventory Control.
GOODS RECEIPT SECTION
Goods Receipt section shall be responsible for the following major
functions:
1. Goods clearance and dispatch
2. Receipt and arranging inspection of materials
3. Custody of rejected items and un connected consignments
4. To have insurance coverage and handle claims for damages and
shortages and rejection of materials and pursue settlement thereof.
5. To maintain store of approved samples
6. In-ward movement and handing over goods to custody and
warehousing section.
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CUSTODY AND WAREHOUSING SECTION
The section shall be responsible for the following :
Receipt of inspected materials in the custody cell ( also variously
called godowns, sheds, yards etc.)
Issue of materials to indenting Deptts.
To plain and arrange preservation, storage and requisite material
handling facilities.
To identifysurplus and obsolete materials and arrange their disposal.
MATERIALS PLANNING & INVENTORY CONTROLMATERIALS PLANNING
This involves forecasting materials requirement, pricing and fixing
inventory. It also includes preparation of materials budget and scheduling of
the orders.
INVENTORY CONTROL
It involves fixing order quantities, setting inventory levels and safety stock
levels, designing implementing inventory system, selective control of
inventories, analysis and control of lead times.
MATERIAL CODIFICATION & STANDARDIZATION
It involves allotting the codes to each item of the stores as well as standardization of description to be mentioned on all indents, receipt, issue vouchers and other documents.The variety reduction / rationalization activities shall also be undertaken by
the group in order to enhance the quality and effectiveness of controls.
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EDP CO-ORDINATION & MIS
This involves the co-ordination with the EDP Group regarding
computerisation and generation of various MIS reports from time to time.
PURCHASE
This involves selection of source of supply, obtaining competitive
quotations, finalization of terms of purchase, placement of Purchase Order
and follow-up for completion of supplies and payment to supplier.
POLICY PLANNING AND MONITORING CELL
This will be an important organ of materials management directly
responsible to HOMM. Its function shall be to identify major activities
fixing targets, keeping track thereof, monitoring and coordinating with
various agencies within and without NTPC.
MATERIAL IDENTIFICATION (CLASSIFICATION & CODIFICATION):
NTPC projects have 40,000-50,000 items (spares, consumable and others) in
store at each of the power stations. Basic prerequisite in managing inventory
of such a large number of items is accurate identification of each part or raw
material. It must be possible to classify like items in order to control variety
and explore interchangeability and introduce standardization. As accurate
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description would involve a lengthy written explanation in many cases,
NTPC has adopted use of codes for describing inventory items.
The corporation has decided to use a 10 digit significant coding scheme for
assigning codes. In this scheme, a group of 10 digit positions denotes some
definition of that attribute. Exercise involved in identifying various attributes
and their values for each class of item is laborious and time consuming.
Therefore, till the time a code based on a crude, but faster method called
provisional/temporary code scheme.
As and when significant codes, also called permanent codes get developed,
temporary codes are replaced in a systematic fashion.
Digit 1 2 3 4 5 6 7 8 9 10
Position Main sub group will Location S.I. No. Check Group always be ‘00’ code digit
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HUMAN RESOURCE IN NTPC
People Resource are Planned, managed and improved
NTPC believes in achieving organizational excellence through Human
Resource and credits its success to the strong performance focus &
organization loyalty of its employees. Our human Resource philosophy,
which is based on the “NTPC HR Model” can be captured in its HR Vision.
Human Resource Vision
“To enable our people to be family of committed worldclass
professionals, making NTPC a learning organization”
HR department has been playing a strategic role in NTPC. It has been
dynamic partner in achieving excellence through the most vital asset of the
organization, its human resources. The HR team has worked hand in hand
with the line managers for making NTPC a preferred employer in the power
Sector. The unique NTPC HR model stand on four pillars of culture
Building, Competences Building, Commitment Building and System
Building. These pillars guide all HR initiative towards building
commitment, culture and competencies of the company’s Human Resource
and also channelise all HR initiatives so as to develop a system orientation.
The HR function at Corporate Centre, formulates vision, strategy and policy
while the Regional Head Quarter is empowered as a growth center and
enabler. The sites such as Unchahar power station act as implementer as well
as cost / profit centers.
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Inputs from projects are taken through interfacing forums of management as
well as through feedback and reporting system.
The employees and their representatives have scheduled meetings with the
management at project level under various forums. A communication matrix
has been developed to streamline such interactions within the organization.
During these meetings the issues that are raised by the employee
representatives on behalf of the employees and need to be addressed at
policy level in Corporate Centre are taken up by Head of HR during various
planned interactions among the HR Executives of entire NTPC.
Employee Profile
NTPC Unchahar has strength of 413 executives, 23 supervisors and 674
workers. The executive team has a strong professional qualification base.
The core function like O&M, HR, Contracts and materials, Finance, Projects
are carried out by our dedicated and highly qualified employees. Non core
activities like housekeeping and security have been out-sourced through
agencies that are expert in their own areas. A compulsory annual medical
checkup is carried out for employees above 40 years once in every two years
and annually for people above 45 years and people working in hazardous
area.
Recruitment
The recruitment of executive is done at Corporate Centre but the
requirement of the same is sent by the project. The requirement of
executives is assessed by effective manpower planning process at site.
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The non – executive are required at the project. The requirement is done on
an all India basis and selection techniques like trade test/ written test,
interview are adopted to select the best candidate for the post. Succession
planning is done at middle management level in the project wherein
executives are identified in specific areas/ departments and are groomed for
position of group head by giving suitable exposure at work, training to
develop requisite managerial & potential competencies etc.
Appraising and helping people improve their performance
The Key Performance Areas are cascaded downward from the company’s
vision/ mission to the individual goals. Since the basic philosophy of NTPC,
which is also reflected in the HR Vision of the company that all employees
should be given equal opportunity to learn, grow and develop in the
organization, only merit is taken into consideration for growth. There is no
distinction in remuneration or opportunities and no difference is made in
allotment of job or terms of payment based on location, city or gender.
The fairness on employment and the satisfaction of employees with respect
to salary & wages along with the open culture of the company has very
explicitly been brought out in employee surveys.
Communicating performance score and development feedback is critical to
create transparency in the system and to make the performance management
system more acceptable to employees. It reinforces good performance by
employees. A transparent communication and feedback mechanism would
also enable development of coaching and mentoring relationship between
superior and subordinates.
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Promotion System
The current promotion system at NTPC provides for time-based, regulated
promotions based on merit, cluster- wise vacancies are notified and
communicated to employees.
People’s knowledge and competencies are identified, developed and
sustained.
NTPC’s stated HR strategy requires “training to be used as a tool for
creating the right attitude and developing competencies among the
employees”. Training is also required to be develop employees knowledge
and skills. With a view to serve the above objectives, NTPC has evolved a
comprehensive training infrastructure. Since Human Resource of the
company is it’s most valuable asset, great importance is attached to their
selection.Utmost care is given to match the skills of the employees of the
company who are indicated on the basis of specific educational qualification,
experience & skills at various levels in the organizational hierarchy. Based
on the knowledge, these employees are posted and further promoted.
People are involved and empowered
Various efforts have been made at NTPC FGUTPP where people are
encouraged to work as individual and in term to initiate improvement
activities like Professional Circle, Quality Circle, NTPC Open Competition
For Executive Talent (NOCET), Suggestion Scheme and Think tank
involving people and empowering them.
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The achievement of the employees/ teams is recognized through a
welldrafted reward & recognized policy of the company. As per the policy
any good work done by an employee or a team is immediately recognized by
giving them a “ Latter of Appreciation”. If an employee continues to do
good work during the entire month, he is rewarded with “Star of the Month”.
A yearlong performance for a non – executive is praised and recognized by
giving him “Employee of the Year” award and an executive by giving him
“Power Excel Award”. All these awards are given in a public ceremony,
meeting of HODs or during a project seminar.
The participation & achievement of employees in various quality initiative
like Quality Circle, suggestion scheme professional Circle, NOCET etc. is
rewarded publicly during 26th January, 15th August, Raising Day function
etc.
People are rewarded, recognized and cared for
The manpower of NTPC FGUTPP was effectively utilized by redeploying
them in two newly constructed units of 210 MW by giving them suitable
training and hence enhancing over all productivity of manpower. Keeping in
view the increased responsibility, the remuneration of the employee has been
suitably hiked in the last pay revision.
NTPC Reward & Recognition
NTPC believes in the power of People and it is the professional philosophy
of the management to create an enabling organizational culture for people to
demonstrate their creativity, initiative and involve in holistic development,
through recognition and celebration of achievements.
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Keeping the above in mind, a bouquet of special Rewards and Recognition
Schemes is evolved with an objective of reinforcing good work and behavior
of employees in order to achieve organizational excellence.
BEST PRACTICES OF HR DEPARTMENT
Starting of Best Teachers’ award for The Performing Teachers in the
Schools
Three no. of schools are presently functioning in NTPC township, out of
which two schools are based on CBSE pattern and one school is based on
UP board.
Teachers play an important role in imparting quality education amongst
children, which is reflected in good results of the school. Good performance
of children in various exams is not only a matter of great satisfaction for the
parents but also give recognition & name to the school & NTPC in totality.
Award for best teacher in subject: Physics, Chemistry, Mathematics,
Biology and Computer. The criteria for selection of the best teacher is:
Class Average.
Class Average for the subject should essentially be more then 75%.
If the difference between the class average of the two teachers is less
then 5% then number of students getting more then 80% shall be the
criteria.
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Payments of all the Dues to the Employee on the Day of Superannuation
All the dues of an employee like PF, gratuity, leave encashment & post
retirement medical benefits are cleared on the day of superannuation &
cheques & requisite documents are given to him. This has resulted in a lot of
satisfaction amongst retiring employees and they continue to have a sense of
pride & ownership for the organization that they have served for such a long
time.
E- Attendance System
An E-Attendance system has been initiated at NTPC Unchahar w.e.f.
1.12.03. The system has following features :
Information to all HODs as regards the total number of employees
from their departments who have come inside the plant premises on a
particular day.
Ensures availability of employees in the plant premises on time &
inculcate a culture of discipline in the plant.
Integration of the present E-Attendance system to the payroll system,
will not require manual intervention related to employee attendance
resulting in saving of productive man-hours.
Regular Visit of GM to the Residence of Employees
General Manager visits the residence of employees on a regular basis, during
these visits, he interacts with the employees & his family members regarding
quality of life in township, well being of ladies & children. Promptness of
DSCMIT 87
civil and electrical maintenance works, condition of parks & on going
culture & sport activity in the township including schools.
Regular Interaction of Physically Challenged Employees with GM for
Conductive Working Environment
NTPC, as part of its corporate social responsibility, recruited a number of
physically challenged persons. At NTPC Unchahar also 11 physically
challenged persons were recruited in the 1st phase & 06 physically
challenged person in the 2nd phase. GM & HOHR regularly interact with
these employees in order to elicit their well-being and also give them a
felling of togetherness. These efforts have resulted in an excellent
amalgamation of these employees in the work force of Unchahar and all of
them are presently working in their respective area with high morale.
Employee Development Centre
Here employee development centre is well equipped to provide training to
the employees for their respective areas. Training for the latest technologies
and concepts are arranged from time to time. The employees adopt those
ideas to their workplace and apart from this, the knowledge gained by them
is shared with other them members. Through seminars, Quality Circles,
Professional Circles etc. new developments when introduced or otherwise,
are given due publicity and familiarization training are organized for the
benefits of end users.
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Preparation of Training Plan for all the Employees Every Year
In NTPC Unchahar the training Plan provides a wide range of relevant
training programmes and helps a lot in competency building of employees.
The training plan is focused on attitude building, skill up gradation and
knowledge enhancement and will, therefore, be a great tool for competence
building of employees. Through this comprehensive training plan, the
training needs of all our employees are fully addressed.
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FINANCE ARE MANAGED
Financial strategies of Unchahar are derived from the long-term strategies of
NTPC. As per Central Electricity Regulatory Commission (CERC)
guidelines Availability Based Tariff (ABT) is applicable for Unchahar. The
benchmarks on operational and financial parameters are reviewed to fulfill
the expectations of the customer, that of low cost power. With the back drop
managing financial strategies of Unchahar are being framed to attain the
specified Return on Capital Employed (ROCE), generate additional profits
by optimizing operational parameters, maximize the productivity, cost
reduction by efficient management and cutting down the wasteful
expenditure.
Financial process and strategies are being continuously reviewed and
updated keeping in view the evolving trends in the industries. NTPC
prepared detailed financial manuals covering various aspects of finance and
accounts.
The stakeholder’s financial expectations are captured in the interaction with
financial institutions and through the yearly Memorandum of Understanding
(MOU) signed between NTPC and Government of India. The captured
expectations are cascaded through out the organization in the form of yearly
MOUs up to unit levels. Financial planning of the company and Unchahar
are made on five-year time horizon for micro level projections and annual
plan for yearly working. Budget planning is made for construction activities,
operational activities and capital addition schemes and financial parameters
DSCMIT 91
for effective review and monitoring, Budget process has played very vita
role in NTPC since inception. The MOU targets are supported with the
strategy of zero based budgeting for effective control and monitoring. This
strategy has yielded excellent results to NTPC for it’s all round performance
including financial achievements over the years. The financial review of
controllable expenses is done on monthly basis in Site Management
Committee (SMC) and financial review meetings.
In various capital addition schemes, investment decisions are taken on cost
benefit analysis and on pay back calculation. Investment decisions are based
on the recoverability of cost out of tariff and ensuring effective resources
utilization. These proposals are put up to corporate budget and Operation
Services group for their analysis and approval by Chairman and Managing
Director (CMD).
Several financial initiative have been taken in recent times to reduce
inventory, remove un wanted processes and introduce new processes to
bring about customer focus. Several financial practices followed in this
project have yielded positive results in its process management, resulting in
effective resource utilization.For managing working capital, Unchahar is
having a well-defined policy and at the time of conceiving the project,
certain norms were built in and accordingly certain portions are capsulated
through long term and short term sources. Again day-to-day working capital
management is done through effective collection mechanism, collection
through LC, credit from fuel suppliers and with short-term loan arrangement
with banks. Capital expenditure is approved for all the projects through
yearly capital budget mechanism and funded from long-term sources being
DSCMIT 92
arrange from financial institution and through bonds issue. Cash
management is done on centralized basis in order to derive the synergy of
funds. All collection from various clients are being done through banks at
regional office and remitted instantly to corporate office. Remittance to
various projects is being done on daily need basis. Daily funds position at
various sites is being monitored through daily reports and this effective
funds management has resulted in excellent earnings of the company.
Financial Soundness
To maintain and improve the financial soundness of NTPC by prudent
management of the financial resources.
To continuously strive to reduce the cost of capital through prudent
management of deployed funds, leveraging opportunities in domestic
and international financial markets.
To develop appropriate commercial policies and processes which
would ensure remunerative tariffs and minimise receivables.
To continuously strive for reduction in cost of power generation by
improving operating practices.
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FINANCIAL OUTCOMES
Station Turnover
Graph-6
Station Gross Margin-(Profit)
Graph-7
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Station Profit/ Turnover(%)
Graph-8
Above figures are showing Unchahar station’s turnover, gross margin
(profit), station profit per turnover and station’s profit per employee. The
reduction in performance as compared to Memorandum of Understanding
(MOU) in the financial years 02-03 & 03-04 are mainly due to normative
fixed charges, revision of Tariff and implementation of Availability Based
Tariff (ABT) regime. The drastic reduction in 03-04 is due to reduction in
Tariff and adjustments made for the previous year’s Tariff revision.
Last Figure shows performance in terms of operational and financial
management. It is noteworthy that Unchahar has consistently performed well
in terms of operational parameters and the financial parameters in few cases
could not be achieved as mentioned above but have been surpassing the stiff
MOU targets given by the company.
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POWER GENERATION PROCESS
Unchahar generates power using thermal energy of coal combustion. The
coal received at the station is crushed to size 25 mm and transported to the
unit bunkers.This coal is further pulverized in the coal mills and then burnt
in the boiler, which converts the water in to high- pressure steam and high
temperature steam (150 Kg/cm2 & 540 c). this steam rotates the turbine and
generator to produce electric power the power thus generated is transmitted
through 220 KV lines and distributed to the beneficiary states
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COAL
HANDLING
PLANT
(CHP)
BUNKERS /
MILLS
BOILERSTURBO
GENERATOR
TRANSFORMER/
SWITCH YARD
ASH
CEMENT / BRCKS
Coal Steam
Water
Electricity
The fuel gas coming out from the boiler is let out to the atmosphere, through
the Electrostatic precipitator (having an efficiency of 99.97%) where the dry
ash is collected and sent to silos keeping the environment clean. The ash
collected in silos is sent in bulkers/ closed trucks for cement manufacturing.
It is also used for manufacture of ash bricks in NTPC Unchahar.
PRODUCT DELIVERY
The quantity of electricity produced at any instant by Unchahar is as per
customer requirement and governed by a mechanism of declaring capability
for the next day generation and receiving schedules for the current date.
However, depending on the time specific demand on the Grid, Northern
Region Load Dispatch Centre (NRLDC) gives backing down/ normalization
of generation massages. The power generated is fed into the Northern grid.
The power so received by Northern grid is supplied to different states in the
northern region tied up with Unchahar station. With regard to the
commercial aspects, station commercial section provides all metering and
billing data to commercial section of Northern Region Head Quarters
(NRHQ) who in turn rise the bill and follow up with the NRLDC and state
concerned for realization of dues. The certification of generation of each
month, applicable tariff structure. Power quality and quantity related issues
are discussed in stakeholders meeting and commercial issues are taken up by
site Commercial department and NRHQ Commercial Departments with
customer representatives.
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RECYCLING
There is no reject in the product produced at Unchahar and hence does
warrant any recycling. However, Unchahar is strongly committed to
utilization of ash generated as a result of its process.The process design
provides for collection and storage of dry fly ash in silon on a continuous
basis. The promotional activities under ken and incentives provided by
Unchahar have enabled to continuously improve the fly ash utilization levels
to more then 100% since last two years.
Unchahar Performance
Stage – I GenerationGraph-9
Stage-II Generation (MU)Graph-10
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Financial year
MU
Financial year
STATION POWER LOAD FACTOR (PLF) %Graph-11
DSCMIT 100
%
Financial year
%
CHAPTER-4 Study of specific management problem
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SPECIFIC MANAGEMENT PROBLEM
Codification And Updation
Every equipment in the company which is being use like boilers, cylinder,
turbines etc. are having a code with 10 digits. Every machine or every
equipment is recognized by code, we can get all information and features of
any equipment through this code. This code was in use when the company
was incorporated but the features are being changed day by day for eg.
company was using computer when it started, the code was declared that
time, that time computer was having different features compare to this time
for eg. that time they were using Windos 98 software and this time they are
using Windos Xp and Windos Vista software, when we will open the code
that will give the information and features of old version because the code is
not updated. Due to this problem the company is facing a lot of problem.
Suggestion:
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A special team should be formed who should be assigned with the
job of updating the features (5 to 6 member).
Post coding system should be renewed and modern coding system
should be implemented.
Regular monitoring should be done by supervisor in order to see
whether updating is going properly or not.
An online system should be there so that on line processing should
be done or updation is going on or not.
Recommendation:
Management should take more responsibility in order to
make there process more effective.
An HR policy should be formed in order to make updation policy
more effective.
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CHAPTER-5
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BIBILOGRAPHY
BOOKS:
Philip Kotler “Marketing Management”.
Prasanna Chandra “Financial Management”.
Gaitther, N & Frazier, “Production & Operation”.
OTHER REFRENCES:
Library of NTPC Unchahar
Brochures
WEBSITES:
http://www.ntpc.co.in
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