NTPC Organization Structure and Functions

CHAPTER 1
INTRODUCTION
CONCEPT OF ORGANIZATION Organization is the process of: Identifying and grouping the work to be performed. Defining and delegating responsibility and authority. Establishing the relationship for the purpose of enabling people to work PRINCIPLES OF ORGANIZATION Principles means the theoretical basis on which something is built up. The theoretical basis is formulated from fundamental truth. Some of the important principles to be followed for developing round and efficient organizations are: Principle of unity of objective Principle of specification Principle of co-ordination Principle of unity of command Principle of span of control Principle of exception Principle of flexibility Principle of simplicity Principle of communication Principle of efficiency REQUSITIES OF A GOOD ORGANIZATION The objective are to be clear, candid and well defined and the organization must have a capacity to achieve it. All activities therein must be implemented easily, effectively and properly coordinated. The communication system within the organization must be effective. The span of control at all levels must be reasonable. There should be provisions for further expansion, whenever needed. All activities and functions should follow defined procedures. The organization must be such that it promotes the morality of employees. There should be a proper diversion of authority and responsibility.
Acharya Academy Of Management Studies
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IMPORTANCE OF AN ORGANIZATION Significance of the organization in any institution may be discussed as It ensures optimum use of human resources: it establishes person with below: different interests skills, knowledge and viewpoints. It simulates creativity: a sound and well-conceived organization structure is the source of creativity thinking and initiation of new ideas. Use of improved technology: a good organization provides for optimum Co-ordination in the enterprise: in a good organization, the different Executive development: the pattern of an organization structure has use of technological improvements. Departments perform their functions in a closely related manner strong influence on the development of executives. It ensures co-operations among workers: a good organization promotes mutual goodwill and cooperation among workers also. PURPOSE OF STUDY The purpose of the study is to familiarize with the industry and attain a firsthand experience of the functioning of the organization. It provides a chance to interact with the different department and authorities in the organization, and also enable to know how the theory learned are practically applied in an organization.
OBJECTIVES OF THE STUDY

To get an insight into organization structure To know the corporate profile structure & performance. To learn & study the functioning of an organization in the field. To know the function & activities of the employees.
SCOPE OF THE STUDY

This report mainly focuses its view on companys profile & different departments such as manufacturing, finance, marketing &human resources. Since the scope is very vast, future studies can be undertaken in the following areas; 1. To find out the financial performance of the company. 2. Consumer perceptions about the organization etc.
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CHAPTER 2 INDUSTRY PROFILE INTRODUCTION:

Power sector plays a very vital role in overall economic growth of any country. For Indian perspective, the power sector needs to grow at the rate of at least 12% to maintain the present GDP growth of about 8%. Presently there is a significant gap between the demand and supply of power. The energy deficit is about 8.3% and the power shortage during the peak demand is about 12.5%. The power industry is responsible for the production and delivery of electrical energy in sufficient quantities via a power grid. Given the demand for electricity is uniform across all domestic, industrial and commercial operations, power is viewed as a public utility and basic infrastructure. The total installed capacity of the company is 41,184 MW (including JVs) with 16 coal-based and seven gas-based stations, located across the country. In addition under JVs (joint ventures), six stations are coal-based, and another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal-based capacity of around 31,855 MW, 3,955 MW through gas, 1,328 MW through hydro generation, about 1,400 MW from nuclear sources and around 1,000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations. NTPC has been operating its plants at high efficiency levels. Although the company has 19% of the total national capacity it contributes 29% of total power generation due to its focus on high efficiency. NTPCs share at 31 Mar 2001 of the total installed capacity of the country was 24.51% and it generated 29.68% of the power of the country in 200809. Every fourth home in India is lit by NTPC. As at 31 Mar 2011 NTPC's share of the country's total installed capacity is 17.18% and it generated 27.4% of the power generation of the country in 2010 11. NTPC is lighting every third bulb in India. 170.88BU of electricity was produced by its stations in the financial year 20052006. The Net Profit after Tax on 31 March 2006 was 58.202 billion. Net profit after tax for the quarter ended 30 June 2006 was 15.528 billion, which is 18.65% more than that for the same quarter in the previous financial year. It is listed in Forbes Global 2000, for 2011 ranked it 348th in the world. The electrical power industry is commonly split up into four processes, namely, electricity generation (e.g. power station), electric power transmission, electricity distribution and electricity retailing. In many countries, electric power companies own the whole infrastructure from generating stations to transmission and distribution infrastructure. For this reason, electric power is viewed as a natural monopoly and is thus heavily regulated. There has been great concern over the past 2 decades about the scarcity of energy resources, and the need to focus on alternative fuel and renewable energy options. Despite environmental concerns, there hasnt been much traction thus far for these greener options. However, there are indications that renewable energy and distributed generation, which have typically been less cost effective, are finally becoming more viable in economic terms. Additionally, a diverse mix of generation sources reduces the risks of electricity price spikes.
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Performance The capital-intensive power industry suffered tremendous losses due to the economic recession. Industry analysts have revealed that there was a staggering 50% decline in the number, value and capacity of new projects between the beginning of the credit crunch in Q3 2012 and Q3 2013. There is a silver lining though, as analysts believe figures for Q3 2013 have shown signs of positive growth. Going forward, it is believed the hotspots of activity will primarily be in India, China and the UK. As well as new builds, there are also significant opportunities for synergies across the global energy supply chain with industry and governments keen to invest in and adopt new technologies. In order to best capitalize on these new opportunities, major contractors and companies across the energy supply chain have begun to work together more closely, to streamline their operating and procurement procedures. India has the fifth largest electricity generation capacity in the world. The total installed capacity of India is ~150,000 MW, of which majority of generation, transmission and distribution capabilities with either public sector companies or with State Electricity Boards (SEBs). Only ~15% capacity is from the private sector, though this is now beginning to increase. Market research suggests ~65% of Indias total installed capacity is contributed by thermal power with the Western and Southern regions each accounting for ~30%. Due to unbalanced growth and rural-urban disparity, only ~40% of rural household have access to electricity versus ~80% of urban households. Key players include National Thermal Power Corporation Limited, Nuclear Power Corporation of India Limited, North Eastern Electric Power Corporation Limited, Power Grid Corporation of India and Tata Power. Growth potential The Indian power sector is experiencing a large demand-supply gap. At present, the energy shortage in the India is ~10% but there are States where the energy shortage is as high as 25%. To combat this, over 80,000 MW of new generation capacity is planned in the next five years. A corresponding investment is required in Transmission and Distribution networks. A massive capital investment is further required over the subsequent years with the countrys power requisite expected to touch 800,000 MW by 2031-32. Future prospects Due to the influx of foreign companies, and the ramping up of operations by domestic companies, the industry is experiencing a hiring spike. New graduates would be advised to seek an initial position in one of the larger companies as there will be specific training courses and more opportunities for someone starting out. Given the breadth of the power industry, it is possible to work with a range of different technologies and disciplines depending upon the preferences. All of the large power-generation companies are looking for graduates and apprentices in a range of disciplines. Degrees in engineering (mechanical, electrical or civil), science (physics, chemistry or mathematics) and even IT or business studies are required. In addition, work experience is a big advantage.
INTERNATIONAL ENERGY AGENCY:The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its mandate is two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply and to advise member countries on sound energy policy. The IEA carries out a comprehensive programs of energy co-operation among 28 advanced economies, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency aims to: Secure member countries access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. Promote sustainable energy policies that spur economic growth and environmental protection in a global context particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. Improve transparency of international markets through collection and analysis of energy data. Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organization and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal
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Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States The European Commission also participates in the work of the IEA.
OVERVIEW OF INDIAS POWER SECTOR

India's power market is the fifth largest in the world. The power sector is high on India's priority as it offers tremendous potential for investing companies based on the sheer size of the market and the returns available on investment capital. Contribution from different sources of power generation
Almost 55 per cent of this capacity is based on coal, about 10 per cent on gas, 26 per cent on hydro, approximately 5 per cent on renewable sources, about 3 per cent on nuclear and 1 per cent on diesel. In the past five years, there has been a much greater emphasis on transmission and distribution reforms. The government aims to provide "power to all" by 2015. To achieve that promise, it will have to add as much as 1,00,000 MW of generation capacity, cut AT&C losses substantially to below 20 per cent, rationalize tariffs and ensure that average revenue realization is greater than the cost of production. It will have to continue to push the process of reform and restructuring and ensure greater private participation, in every segment. In the past few years, there has been considerable growth in power plants based on renewable sources of energy. The Plant Load Factor (PLF) of generating plants has improved consistently over the last 10 years. The share of thermal power as a proportion of total power generated has decreased from 71 per cent to 66.3 per cent in the last decade. The share of hydro has increased to 26 per cent from 25.7 per cent. Of the fossil fuel supplies, there is delivery constraint with respect to gas. A number of gas plants today are running at sub-optimal plant load factor (PLF) levels due to shortages. The
government has decided not to embark on new projects that rely on gas. It is feared that supply shortages can disturb the capacity addition plans, reduce PLFs, as the rising crude prices have led to firmer naphtha and natural gas prices. Emerging environmental concerns have led to an increasing interest in renewable . Captive power plants (CPPs) also make a major contribution, which is more than one-fifth of the total installed capacity. In the last three years, captive capacity has grown at an average of 1,600 MW per year. They have to pay huge prices as they have to source power from the grid during low frequency periods. During this time the CPP power comes in handy at a much lower tariff. The reform process in the power sector continues. Thirteen states have unbundled SEBs into separate entities for transmission, distribution and generation. Two states have privatized distribution. Regulatory authorities have been set up in 24 states. These authorities are applying commercial principles to tariff setting, monitoring the performance of state utilities and paying attention to areas such as demand side management and grid discipline. FUTURE PLANS OF CAPACITY ADDITION Plan for Capacity Addition during XIIth Five Year Plan (2012-2017):The power generation capacity added during the last five years is a lowly 21,280 Mw, which is about half the original target of 41,110 MW set for the Tenth Plan. This is also 2000 Mw less than the 23,250 Mw capacity addition projected by the government in last few days of XIth five year plan. An ambitious target of 78,577 Mw has been set by the government for the twelfth plan period. Of this, the hydropowers share would be 16,553 MW, the thermal power would constitute 58,644 MW and the nuclear powers share would be 3,380 MW. Capacity addition plan from different sources during XIIth five year plan (2012-2017). Plan for capacity addition from various sources during 12th year Plan
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Policy for Additional Capacity Generation Following is the policy for future power generation under the National Electricity Plan: Inadequacy of generation has characterized power sector operation in India. To provide availability of over 1000 units of per capita electricity by year 2012 it had been estimated that need based capacity addition of more than 1,00,000 MW would be required during the period 2002-12. Government of India has initiated several reform measures to create a favourable environment for addition of new generating capacity in the country. The Electricity Act 2003 has put in place a highly liberal framework for generation. There is no requirement of licensing for generation. The requirement of techno-economic clearance of CEA for thermal generation project is no longer there. For hydroelectric generation also, the limit of capital expenditure, above which concurrence of CEA is required, would be raised suitably from the present level. Captive generation has been freed from all controls. In order to fully meet both energy and peak demand by 2012, there is a need to create adequate reserve capacity margin. In addition to enhancing the overall availability of installed capacity to 85per cent, a spinning reserve of at least 5per cent, at national level, would need to be created to ensure grid security and quality and reliability of power supply. Non-conventional Energy Generation The Ministry of Non-conventional Energy Sources is promoting development of small/mini hydro power projects. The potential of generation of power from small and mini hydel projects is estimated to be about 10,000 MW in the country. Feasible potential of non-conventional energy resources, mainly small hydro, wind and biomass would also need to be exploited fully to create additional power generation capacity. With a view to increase the overall share of non-conventional energy sources in the electricity mix, efforts will be made to encourage private sector participation through suitable promotional measures.
Hydro Electricity Generation Hydroelectricity is a clean and renewable source of energy. Maximum emphasis would be laid on the full development of the feasible hydro potential in the country. The 50,000 MW hydro initiatives have been already launched and are being vigorously pursued with DPRs for projects of 33,000 MW capacity already under preparation. Harnessing hydro potential speedily will also facilitate economic development of States, particularly North-Eastern States, Sikkim, Uttaranchal, Himachal Pradesh and J&K, since a large proportion of our hydro power potential is located in these States. The States with hydro potential need to focus on the full development of these potentials at the earliest. Hydel projects call for comparatively larger capital investment. Therefore, debt financing of longer tenure would need to be made available for hydro projects. Central Government is committed to policies that ensure financing of viable hydro projects. State Governments need
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to review procedures for land acquisition, and other approvals/clearances for speedy implementation of hydroelectric projects. The Central Government will support the State Governments for expeditious development of their hydroelectric projects by offering services of Central Public Sector Undertakings like National Hydroelectric Power Corporation (NHPC). Proper implementation of National Policy on Rehabilitation and Resettlement (R&R) would be essential in this regard so as to ensure that the concerns of project-affected families are addressed adequately. Adequate safeguards for environmental protection with suitable mechanism for monitoring of implementation of Environmental Action Plan and R&R Schemes will be put in place.
Small Hydropower Plants The Electricity Act 2003 is the catalyzing and facilitating factor for the Power revolution in India. The concern that no households be left out from being electrified, is being aptly addressed by the Union and state Governments. Impetus is being given to Rural Electrification. In order to achieve this objective, synergy is to be evolved where distributed Power Generation supplements (or makes up for the limitation) of electric supply through grid. Besides this mission, initiatives for environmental conservation are propelling utilities to generate more of Green Power Decentralised Power Generation and Distribution has the power to adequately make up for the limitation of the Electric supply through Grid, and is considered a potential means to provide Power to all by 2012 DPG technologies such as Small Hydro Power help in producing power at the point of consumption. In India, small hydro schemes are further classified by the Central Electric Authority as follows: Type Micro Mini Small Station Capacity Upto 100 KW 101 KW to 2000 KW 2001 KW to 25000 KW Unit rating Upto 100 KW 101 KW to 1000 KW 1001 KW to 5000 KW
Thermal Generation Even with full development of the feasible hydro potential in the country, coal would necessarily continue to remain the primary fuel for meeting future electricity demand. Imported coal based thermal power stations, particularly at coastal locations, would be encouraged based on their economic viability. Use of low ash content coal would also help in reducing the problem of fly ash emissions. Significant Lignite resources in the country are located in Tamil Nadu, Gujarat and Rajasthan and these should be increasingly utilized for power generation. Lignite mining technology needs to be improved to reduce costs.
Use of gas as a fuel for power generation would depend upon its availability at reasonable prices. Natural gas is being used in Gas Turbine /Combined Cycle Gas Turbine (GT/CCGT) stations, which currently accounts for about 10 per cent of total capacity. Power sector consumes about 40per cent of the total gas in the country. New power generation capacity could come up based on indigenous gas findings, which can emerge as a major source of power generation if prices are reasonable. A national gas grid covering various parts of the country could facilitate development of such capacities. Imported LNG based power plants are also a potential source of electricity and the pace of their development would depend on their commercial viability. The existing power plants using liquid fuels should shift to use of Natural Gas/LNG at the earliest to reduce the cost of generation. For thermal power, economics of generation and supply of electricity should be the basis for choice of fuel from among the options available. It would be economical for new generating stations to be located either near the fuel sources e.g. pithead locations or load centres. Generating companies may enter into medium to long-term fuel supply agreements specially with respect to imported fuels for commercial viability and security of supply. Nuclear Power Nuclear power is an established source of energy to meet base load demand. Nuclear power plants are being set up at locations away from coalmines. Share of nuclear power in the overall capacity profile will need to be increased significantly. Economics of generation and resultant tariff will be, among others, important considerations. Public sector investments to create nuclear generation capacity will need to be stepped up. Private sector partnership would also be facilitated to see that not only targets are achieved but exceeded. Nuclear Power Capacity Addition Plan: Nuclear power is seeing a renaissance. Power-starved India, which has the largest number of reactors under construction, is at the forefront of this revival of interest in nuclear power. India is building seven of the 30 reactors under construction around the world. This is likely to increase significantly once the India-US agreement on nuclear cooperation is accepted by the rest of the world. India has been commissioning nuclear reactors in record time of less than five years. The capital cost per megawatt in the case of nuclear plant is Rs 50 million, which is higher than the average cost of the thermal plants (Rs 40 million or less). However, with the fuel cost being much lower than the thermal plants, nuclear power becomes an appealing option. Captive Generation The liberal provision in the Electricity Act, 2003 with respect to setting up of captive power plant has been made with a view to not only securing reliable, quality and cost effective power but also to facilitate creation of employment opportunities through speedy and efficient growth of industry. The provision relating to captive power plants to be set up by group of consumers is primarily aimed at enabling small and medium industries or other consumers that may not individually be in a position to set up plant of optimal size in a cost effective manner.
It needs to be noted that efficient expansion of small and medium industries across the country would lead to creation of enormous employment opportunities. A large number of captive and standby generating stations in India have surplus capacity that could be supplied to the grid continuously or during certain time periods. These plants offer a sizeable and potentially competitive capacity that could be harnessed for meeting demand for power. Under the Act, captive generators have access to licensees and would get access to consumers who are allowed open access. Grid inter-connections for captive generators shall be facilitated as per section 30 of the Act. This should be done on priority basis to enable captive generation to become available as distributed generation along the grid. Towards this end, nonconventional energy sources including co-generation could also play a role. Appropriate commercial arrangements would need to be instituted between licensees and the captive generators for harnessing of spare capacity energy from captive power plants. The appropriate Regulatory Commission shall exercise regulatory oversight on such commercial arrangements between captive generators and licensees and determine tariffs when a licensee is the off-taker of power from captive plant.
Major Players:A J
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CHAPTER 3 COMPANY PROFILE INTRODUCTION:National Thermal Power Corporation (NTPC) has been accorded the status of MAHARATNA by the Government of India with enhanced powers to expand its operations in both domestic and global markets. This is recognition of the globally comparable stature, strengths and potential of the Company. Capitalizing upon its proven strengths and key strategic priorities, the Company is futureready with a new vision: To be the worlds largest and best power producer, powering Indias growth. The new vision is part of the new Corporate Plan developed by the Company for the period up to the year 2032. Among the largest and best performing power generation companies in the world, NTPC has already set up 32,194 MW capacity. By 2032, it plans to have total capacity of 1,28,000 MW. While the Company has ~ 20% market share of installed capacity in India, through its higher capacity utilization levels compared to those of other power generating companies, it produces ~ 30% of Indias total electricity generation. On the operational front, the Company has successfully adopted the 90% plus PLF strategy for coal based stations and demonstrated the same for the last three years. Thus, for the third consecutive year, NTPC maintained PLF of above 90% during 2011-12, which is remarkable in view of its large fleet size comprising 81 coal-based units with average unit age of ~ 19 years. The gas stations achieved best ever PLF of 78.38% against the previous years 67.01%. Sustained operational excellence of NTPCs earliest plants like Singrauli (commissioned in 1982), with a PLF of 92.83% and Korba (commissioned in 1983), with a PLF of 97.61%, highlights the Companys proven operational and engineering capabilities. With a market cap of over Rs. 1,60,000 crore, the Company has remained among the top five Indian Companies in terms of market capitalization which underlines its high-value market position. The Companys total income increased by ~ 9% during 2011-12 to reach close to Rs. 50,000 crore mark (Rs. 49,233.9crore). It earned a profit of Rs. 8,728.2 crore, an increase of 6.42% over the previous years profit. The Company has been given the highest possible credit ratings by prestigious agencies. The Company has been realizing 100% payment of current bills for sale of power for seven consecutive years. The Companys Customer Relationship Management initiatives and innovative incentive schemes highlight its customer focus. In line with the strategy of expanding its leadership position in the sector, the Company is geared to reach 75,000 MW capacity by 2017 which means an aggressive annual capacity addition target of > 6,000 MW. Currently 45 units aggregating to 17,340 MW are under construction at 16 locations. A capacity of 7,105 MW is under bidding. Feasibility Reports have been approved for a capacity of 8,447 MW, which will very soon go to the award stage. Feasibility Reports are ready for 10,980 MW. Feasibility Reports are under preparation for ~ 15,500 MW.
In order to achieve this quantum ramping up in capacity addition, The Company has created a very focused project execution and monitoring system at the core of which is the newly built world-class web-enabled Project Monitoring Centre (PMC), the first of its kind in the country. The Company is more equipped and energized than ever before to execute its ambitious capacity addition and growth plans with much sharper focus on on-the-ground progress. The Companys fuel security strategy is a judicious mix of domestic and international longterm coal agreements/ contracts, purchase of coal from spot markets, developing captive coal mines and acquiring stakes in mining companies. For gas, The Company is exploring long-term agreements/contracts and opportunities for participation in LNG value-chain. As the leader in introducing new technologies in the sector, The Company has been investing in technology and innovation with focus on efficiency, environment and economical generation of power .The Company has developed a long-term technology roadmap. For the new coal based stations, the Company has adopted state-of-the art super critical steam parameters which will result in efficiency gains and reduction in CO2 emissions. We are close to commissioning the first super critical unit of the country at Sipat. We plan to commission the first 800 MW ultra super critical operating station by Fiscal 2016. The NTPC Energy Technology Research Alliance (NETRA) is focusing on technologies to deal with climate change issues and will also provide a complete range of scientific services to enable NTPC power stations to retain their technological and commercial edge.The Company believes that nuclear power has a key role to play as part of a solution to issues concerning energy availability and climate change. Hence nuclear power is an important building block in NTPCs capacity growth strategy with a target of 2,000 MW nuclear capacity by 2017. The Company has entered into a Memorandum of Agreement for a joint venture with Nuclear Power Corporation of India Limited (NPCIL) for setting up nuclear power projects and the joint venture company is going to be incorporated soon. In line with its aspiration to become one of the leaders in green power, The Company is entering the renewable energy space with capacity target of at least 1,000 MW by 2017. The main components of the renewable portfolio will be solar and wind. NTPC Vidyut Vyapar Nigam Limited (NVVN) has been designated as the Nodal Agency for the purchase of up to 1,000 MW of solar power under the National Solar Mission. The Company has an outstanding team of power professionals with deep-rooted sense of pride in serving the nation. In order to sustain the strong work ethic and professionalism, The Company is taking a number of initiatives to further improve the entry level-talent-quality to establish a strong talent pool. It is also taking steps to develop a leadership pipeline. The Company seeks to foster a winning culture of entrepreneurship through focus on an objective and open performance management system, a well-conceived manpower deployment policy, exposure to a variety of assignments etc. In view of the quantum jump in the capacity growth targets of the Company and of the sector, a very large pool of skilled manpower at all the levels needs to be developed urgently. Giving major focus on skill development, The Company has been hiring high-caliber engineers directly from the campuses of IITs and NITs and recruiting a large number of engineers through a rigorous examination process. It is providing state-of-the art training to its employees at all the levels.
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In order to create a large base of technically skilled work force, the Company has been adopting ITIs and setting up new ITIs with emphasis on relevant courses and quality of training. Till now, the Company has adopted 18 ITIs and is setting up 8 new ITIs. The Company will be taking many more such initiatives for skill development. The sound system of checks and balances developed by The Company and applied by it throughout the organization has matured into an exemplary corporate governance system which is praised by the stakeholders. Implementation of Integrity Pact, adoption of a
comprehensive Enterprise Risk Management Framework and a well-defined Internal Control Framework add to the transparency and robustness of the Companys business practices. The Company has been taking concrete steps to fulfill its corporate social responsibility by helping the physically challenged and other marginalized communities through setting up Information and Communication Technology (ICT) Centres for the physically challenged at many places, District Disability Rehabilitation Centre (DDRC) at NTPC-Tanda, Directly Observable Treatment (DOT) Centres to take care of tuberculosis patients in the vicinity of
its power stations, distributed generation projects in remote villages and providing safe drinking water. Thus the Company has been Transforming lives of the people.
Above diagram shows the dynamism in share holding pattern of the course of 32 years which briefly shows the increase in participation of private individuals to be the part of NTPC by acquiring certain shares.
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STATIONS Fuel Type Capacity(MW) Gen.(MU)Gross:STATIONS Gen.(MU)Gross Northern Region Singrauli Rihand Unchahar Tanda Coal National Capital Region Badarpur Dadri Coal Anta Gas Auraiya Gas Dadri Faridabad Western Region Korba Vindhyachal Sipat Kawas Jhanor Gandhar Eastern Region Farakka Kahalgaon Talcher - Kaniha Talcher - Thermal Southern Region Ramagundam Simhadri Rajiv Gandhi CCP Total Fuel Type Capacity(MW) 5490 2000 2000 1050 440 Coal 1330 413 652 Gas Gas Coal Coal Coal Gas Gas Coal Coal Coal Coal Coal Coal Liquid Fuel 817 430 7653 2100 3260 1000 645 648 7400 1600 2340 3000 460 3950 2600 1000 350 28840 4347 705 7829 3002 4528 5607 3212 62532 17955 27586 8175 4327 4488 48974 10239 11314 23759 3662 32533 21595 8521 2418 218840 3555 29285 5108 45515 16264 16743 8952
Coal Coal Coal
VISION:
To be the worlds largest and best power producer, powering Indias growth
CORE VALUES: (B-COMIT)

1. 2. 3. 4. 5. 6. B-BUSINESS ETHICS C-CUSTOMER FOCUS O-ORGANIZATIONAL & PROFESSIONAL PRIDE M-MUTUAL RESPECT & TRUST I-INNOVATION & SPEED T-TOTAL QUALITY FOR EXCELLENCE
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CORPORATE 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
CORPORATE OBJECTIVES
To realise the vision and mission, eight key corporate objectives have been identified. These objectives would provide the link between the defined mission and the functional strategies: Business portfolio growth To further consolidate NTPCs 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 and non-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 services brand in the domestic and international markets. Customer Focus To foster a collaborative style of working with customers, 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 practices. To expand the future customer portfolio through profitable diversification into downstream businesses, 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 changes in the business environment by: - Adopting a portfolio approach to new business development.
- Continuous and co-ordinated assessment of the business environment to identify and respond to opportunities and threats. To develop a learning organisation having knowledge-based competitive edge in current and future businesses. To effectively leverage Information Technology to ensure speedy decision making across the organisation. 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, efficiency, productivity and costs. To effectively leverage Information Technology to drive process efficiencies. - To aim for performance excellence in the diversification businesses. - To embed quality in all systems and processes. Human Resource Development To enhance organisational performance by institutionalising an objective and open performance management system. To align individual and organisational needs and develop business leaders by implementing a career development system. To enhance commitment of employees by recognising and rewarding high performance. To build and sustain a learning organisation of competent world-class professionals. To institutionalise core values and create a culture of teambuilding, empowerment, equity, innovation and openness which would motivate employees and enable achievement of strategic objectives. 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.
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To continuously strive for reduction in cost of power generation by improving operating practices. Sustainable Power 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-utilisation, peripheral development and energy conservation practices. To lead developmental efforts in the Indian power sector through efforts at policy advocacy, assisting customers in reforms, disseminating best practices in the operations and management of power plants etc. Research and Development To pioneer the adoption of reliable, efficient and cost effective technologies by carrying out fundamental and applied research in alternate fuels and technologies. To carry out research and development of breakthrough techniques in power plant construction and operation that can lead to more efficient, reliable and environment friendly operation of power plants in the country. To disseminate the technologies to other players in the sector and in the long run generating revenue through proprietary.
Company Information:Registered Office NTPC Bhawan, SCOPE Complex , 7, Institutional Area, Lodi Road, New Delhi 110 003 Phone No. : 011-2436 0100 Fax No. : 011-2436 1018 Web site : www.ntpc.co.in
Subsidiaries Dena Bank NTPC Electric Supply Company Ltd. NTPC Hydro Ltd. NTPC Vidyut Vyapar Nigam Ltd. Pipavav Power Development Company Ltd. Kanti Bijlee Utpadan Nigam Limited Bhartiya Rail Bijlee Company Limited
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Registrar & Share Transfer Agent Karvy Computershare Pvt. Ltd. 17-24, Vittal Rao Nagar Madhapur State Hyderabad 500 081 Phone No. : 040-2342 0815-28 Fax No. : 040-2342 0814 E- Mail Id : mailmanager@karvy.com
Shares listed at National Stock Exchange of India Limited Bombay Stock Exchange Limited
Depositories M/s Varma & Varma National Securities Depository Limited Central Depository Services (India) Limited
Company Secretary A.K. Rastogi
Auditors M/s Dass Gupta & Associates M/s S.K. Mittal & Co. M/s Varma & Varma M/s Parakh & Co. M/s B.C. Jain & Co. M/s S.K. Mehta & Co.
Bankers Allahabad Bank Andhra Bank Bank of Baroda Bank of India Canara Bank Central Bank of India Citi Bank,
Dena Bank Indian Overseas Bank ICICI Bank Ltd. Jammu & Kashmir Bank Ltd. Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank State Bank of Bikaner & Jaipur State Bank of Mysore State Bank of Hyderabad State Bank of India Madhapur State Bank of Patiala State Bank of Travancore UCO Bank Union Bank of India United Bank of India Vijaya Bank.
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CHAPTER 4 ORGANIZATION STRUCTURE STRUCTURE:

Structure describes the hierarchy of authority and accountability in an organization these relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures- pyramidal, matrix or structured ones- to accomplish their goals. A structure is the formalizing of relationships, roles and responsibilities in order to recognize and perform work. The structure provides the frame work for relationship among different parts of the organization. The structure sets out formal reporting relationship, mode of communication among members their respective rules and regulations for carrying out different task.
Organization structure of NTPC:
The organization structure of NTPC starts with the chairman who is the decision maker of the company under him there is a board which control the organization by separating entire organization into number of departments there will be a managing director who controls all the activities of the board the managing director will among the board members who is selected by the board with the help of voting. Under the managing director there are different directors who individually handle different departments these directors control one or more departments based on the size of department and capability director. Down the hierarchy after the director there will come general managers who is the highest authority of individual departments each general manager handles the one department Acharya Academy Of Management Studies Page 23
only. He is the responsible person regarding to all the activities. In NTPC the general managers are for each department like GM for marketing, GM for finance, GM for human resource, GM for production. For the assistance of the general manager there will be an assistant manager which is the second position of the department in NTPC each department have only one assistant general manager. There are one or more senior managers in each department under the asst manager who is the direct person who will control all the activities of departments he is controller of the department who has to responsible to the GM &AGM, there should be at least one manager to control the activities the will be varies with size of the department. In the hierarchy of the organization next is managers among whom the senior person will be promoted as Sr. manager there will be assistant manager and deputy manager who control all the other activities of individual departments.
SKILLS:
NTPC has variety of skills doing its business. The company analyzes the potential market so that it can market its products in efficient manner. The company sales person is trained and provided with skills to deal with customers personally to know their needs and wants. Company also strives in providing the better services. It has skilled staff which also provides market information regularly which helps to study about competitors move. It also informs and makes customer aware of market conditions. Skills are parallel to core competencies whenever there is a shift in the strategy, firm may have to acquire expertise in new skills and older skills.
STYLE:
NTPC Company is having its own style of doing the business. All the employees of the company are influenced to use their skills, values, knowledge, judgment, attitudes and attributes to the fullest extent. The employees have the freedom to give suggestions to the top management. Every individual behaves as leader and express his/her character towards their work. The company also recognizes value, respect and celebrates the cultural difference and diversity of background and thought of its employees. It expects its suppliers to follow applicable laws and principles in the countries in which they operate.
STRATEGY:
NTPC Company exists to benefit and refresh everyone it touches. It is mainly targeted to younger generation. The main company strategy is to use its significance resources and capabilities to provide active leadership on environmental issues. NTPC is striving hard to the market leader in the carbonated cement industries. Every employee of the organization is expected to maintain
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higher standards of quality in product, process and relationship. This made them to be the premium price brands in the market. It also has strategy of maintaining good industrial and customer relationship. Because of all these strategies NTPC is successful in the market. The supplier guiding principles is based on the belief that good corporate citizenship and actions in the market place, environment in the community.
SYSTEM:
System in this framework stands for rules and regulations, procedures and practices that must be followed to carry out tasks in the organization. These include both the formal and informal system that accommodating an organization structure. Changes in the organization structure lead to changes in the system sometimes these are referred as a something dull, hinders management functions, but it is well known that good system creates working environment in the enterprise. MIS is a system which provides information support for decision making in the organization. NTPC is using computerized processing system as computer can store voluminous data, the data from different sources in the organization are collected and processed in the system so that information regarding any subject is available at hand. This system helps the NTPC to take corporate decisions in its activities.
STAFF:
The NTPC compensates its employees fairly and competitively relative to their industry in full compliance which applicable local and national wages and hour laws. It also offers opportunities to employees to develop their skills aptitude, capabilities, abilities, if the performance of the employee is good to the extent required by the company to operate its business. Each designation has their own duties and responsible to fulfil the visionary goals of the company. To carry out the company activities staff is classified in to: Technical staff Clerical staff
SHARED VALUES: The reputation of the NTPC is built on trust. Those who go business with NTPC all over India know that the company is committed to managing its business with a consistent set of values that represent the highest standards of quality, integrity, excellence and compliance with the law and respect for the value of their shareholders investment. This is achieved by the sales growth, cost Acharya Academy Of Management Studies Page 25
control and wise investment of resources. Value creates a path to the future and plan for how to achieve the vision. The NTPC values are: INTEGRITY COMMITMENT PASSION SEAMLESSNESS SPEED
Basically NTPC has three level of organisational structure: Corporate level:-This is structured in head office of NTPC which is situated in Delhi. They are basically concerned with top level management where they handle Analysis, Decision making, future prospect part.
Regional level:-There are five regional head offices of NTPC. Plant level:-They perform duty of producing electricity.
Various departments/ in plant level:Headed by Head of the Project
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Transfer policy Objectives: To cater to the changing needs of the organisation. To ensure optimum utilisation of manpower and their skills To accomplish specific task/objectives with the available resources Towards developmental needs of the employees To meet the individual employee needs matching it with organisational requirement Job-Rotation-to give opportunities to executives to handle various functions so that they get all round exposure which would prepare them to take up leadership positions at a later time
Procedures/Practices:Vacancy: w.r.t. budget for the year Critical requirement: Requirement for the initiatives Formation of JVs & subsidiaries Takeover Consultancy assignment etc. Requirement at new green field/Brown field projects etc.
Redeployment: Tapering of activities like project construction Need based: Stay at existing place of positioning Nearing superannuation (less than three years service left) Request of individuals
EXECUTIVE RECRUITMENT POLICY, SELECTION PROCESS

Vacancy: Keeping in view recruitment/vacancy, proposals are prepared by industrial engineering group Recruitment group initiates selection process Advertisement: Advertisement releases in national newspaper across India Advertisement in bi-lingual in the employment news Reservation for SC/ST/OBC/PH prescribed by govt. of India reflected in advertisement
Receipt of application: Application are invited online Senior level applications are also accepted off-line SELECTION PROCESS: Candidates are subjected to test/interview For ETs, selection test & GD before interview are compulsorily held SC/ST/OBC interviewed in separate groups Concessions/relaxation applicable to SC/ST/OBCPH candidates in recruitment and selection Separate panel for suitable candidates prepared Issue of offer Cycle time: Few month from date of advt. to date of offer Cycle time for employee training
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CHAPTER 5 FUNCTIONAL DEPARTMENTS

Basically, there are many functional departments in any organization. They are Finance, Marketing, H.R, Operations etc. In NTPC, there are departments like Finance, Marketing, H.R, Operations. In this chapter, all the departments of NTPC are discussed in detailed.
5.1 HUMAN RESOURCE DEPARTMENT

WELFARE
FIRST AID: Company in maintaining OHC and ambulance room at time office building. A chief
medical officer and other concern medical staff available round the clock. There were about 94 first aid boxes available in organisation. CANTEEN: As a statutory provision canteen is being maintained and run by management. The yearly subsidy is about Rs 65 lakhs per annum. It provides breakfast, lunch and dinner to all the employees. CRECHE: Crche is provided and maintained cradles, small dining table with chairs, benches and toys were provided. Welfare non statutory: MEDICAL ASSISTANCE: Medical assistance scheme for treatment of chronic diseases 1. Employees who are covered under ESI Rs. 35000 2. Employees who are not covered under ESI Rs. 1,50,000 BIRTHDAY SWEETS: management presents one KG of sweets with greeting card duly signed by managing EXGRATIA: Management provides exgratia of Rs 4, 00,000 to the employees on permanent rolls and Rs 3, 00,000 to the contract workmen in case of fatal accidents during the course of employment .this exgratia will be given to the legal heir of the deceased employee in the case of his death in the factory due to accident while on duty. DEATH RELIEF FUND: Management provides an amount of RS 1lakh to the legal heir of deceased employee in case of death .this fund is paid to the legal heirs of an employee who expires during the
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service. The management and the employees shall contribute to the fund equally the contribution payable by the employee shall be recovered from wages /salaries whenever the fund is to be raised. FUNERIAL EXPENSES: Management meets the funereal expenses for an amount of Rs 1800 Immediately and extends all the help to bereaved family. EDUCATIONAL ASSISTANCE: Management gives an amount of Rs 10,000 to 20 children of employees who are got highest rank in EAMCET (medical and engineering). MEMENTOS FOR SERVICE: Management presents one silver memento to the employees who have completed 25 years of service. RETIREMENT MEMENTO: Management organizes farewell function and facilitates with silver plate worth of RS 2,500 to each employee who retires from the service of company. KALYANA MANDAPAM EXPENSES: Management gives an amount of RS 4,000 to the employees who perform the marriage of their children. FAMILY PLANNING: Management gives an amount of RS 500 to those who undergo family planning operation. BUS/TRANSPORT FACILITY: Management has provided conveyance to school/college going children of employees. SPORTS/GAMES AND CULTURAL ACTIVITIES: Management celebrates republic day on 26th Jan every year by conducting games, sports and their family members and awards prices for winners and runners. Management encourages and sponsors its employees to participate in zonal/state level sports conducted by AP labor welfare board every year on the occasion of mayday celebrations. MAINTANANCE OF COURTS: Management is maintaining courts like ball badminton courts, basketball courts (flood lights), volley ball court and cricket pitches in both the colonies. SALARY ADVANCES: Management is providing festival advances and general advances to and general advances to its employees.
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SAFETY DEPARTMENT
Safety Department Structure:
Occupier
Factory manager
Senior manager safety
Sr. safety officer Functions of safety office:
Safety officer
Safety officer (Trainee)
1. To advice the concern departments in a factory in planning and organizing measures necessary for the effective control of personal injuries. 2. To check and evaluate the effectiveness of the action taken to prevent personal injuries. 3. To advice on safety aspects in all job studies and to carry out detailed job safety of selected jobs. 4. To advice the purchasing and stores department in ensuring high quality and availability of personal protective equipment (PPE). 5. To provide advice on matters related to carrying out plant safety inspections. 6. To carry out plant safety inspections in order to observe the physical conditions of work and the work practices followed by the workers and to render the advice on measures to be adopted for removing unsafe physical conditions and preventing unsafe actions by the workers. 7. To render the advice on matters related to reporting and investigation of industrial accidents and diseases. 8. To investigate selected accidents. 9. To investigate the case of industrial diseases contracted and dangerous occurrences under rule 96. 10. To advice on the maintenance of such records as are necessary relating to such records as are necessary and industrial diseases. 11. To promote setting up of safety committees and act as adviser and catalyst to such committee. Acharya Academy Of Management Studies Page 32
12. To organize in association with the concerned departments campaigns, competitions, contests and other activities which will develop and maintain the interest of workers in establishing and maintaining safe conditions of work and procedures. 13. To design and conduct either independently or in collaboration with the training department suitable training and educational programmes for the prevention of personal injuries. DUTIES AND RESPONSIBILITIES: 1. Plant safety inspection. 2. Coordinating departmental activities. 3. Accident incident investigation. 4. Statutory compliance. 5. PPE (personal productive equipment) surveys.
SECURITY DEPARTMENT
Security Department Structure:
Chief security officer (HOD)
Assistant chief security officer
Security assistants
Contract supervisors
Guards
Duties and responsibilities:
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Card punching Controlling of staff movements Frisking the outgoing Allowing of vehicles by checking the documents Checking of outgoing vehicles
TIME OFFICE ADMINISTRATION

This department deals with the different functions of workers. The main functions of TOA are 1. Attendance 2. Leave feeding 3. Over time recording 4. Deployment
1. Attendance:
Every month starting TOA makes total schedule for entire month for the workers duties after that they will send that schedule to the respective departments if they need any changes they will reschedule the shifts and sends it to the TOA. Actually the workers having 4 major shifts A-shift B-Shift C-shift General (6am - 2pm) (2pm -10pm) (10pm- 6am) (7am-12pm) lunch (1.30-4.30pm)
In NTPC each worker is assigned with ID card while coming inside the Organisation they have to punch their ID that will record their attendance after they will go to their respective work places before entering into the work they have to sign in the registers. At the end of the day shift in charge will submit the register to the TOA they will tally both registers and record to conform their attendance. In a day they have to punch their ID card for four times. 1. While entering in to the job. 2. At the time of lunch 3. When return from lunch
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4. When leaving from the job
2. Leave feeding:
TOA have other function of feeding the leave of different workers there are different types of leaves I. Casual leave II. Earn leave III. Sick leave
3. over Time:
If the person for the shift not attended to the work then the employee who was previously doing that work have to continue with the work, the superiors will inform about OT to the TOA
4. Deployment:
If there is any requirement of the labor for the unskilled jobs like sweeping, helper etc. TOA will deploy some workers to that type of jobs.
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5.2 FINANCE DEPARTMENT

Department Structure:
PRESIDENT
GENERAL MANAGER
Sr. Manager Accounts
Sr. Manager Costing
Sr. Manager Central Excise
Manager Sales Accounts
Finance is the life blood of any organization. Basic requirement for an organization for existence and survival is found or finance. Financial Management is concerned with the management decisions that results in the acquisition & financing long term and short term. It deals with the acquisition of specific assets the selection of specific liability as well as size and growth of an enterprise. The function and activities carried out by this department include finance management and maintaining books of accounts, records and other supporting document. In NTPC organization quick books software and account software are used for financial purpose.
OBJECTIVE
Avoiding capital blocking Maintaining adequate funds Acharya Academy Of Management Studies Page 36
Minimizing risk Profit maximization Searching efficient sources of funds
ROLE OF FINANCE MANAGER

Annual Budgeting Monthly budgeting Statutory audits Internal audits Directing and controlling funds Minimizing losses to the company Fringe benefits Providing details to auditors Assisting in sales tax and income tax assessment
RESPONSIBILITIES AND DUTIES

Arranging and disbursement of funds: inter group, inter unit, head office, suppliers, governmental and statutory payments etc., Cash management Working capital management Maintenance of books of accounts and records Internal and external audit Final reports presentation
REPORTS AND RECORDS MAINTAINED

Summary of all the activities of a month in the unit, cash flow statement, yearly statutory reports and return such as income tax, sales tax etc.,
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SUB DEPARTMENTS OF VARIOUS FUNCTIONS 1. MAINTENANCE MATERIAL PLANNING MACHANICAL ELECTRICAL CONTROL AND INSTRUMENTATION FUEL MANAGEMENT
2. FINANCE EMPLOYEE BENIFIT WORK SECTION BOOK SECTION CONCURRENTS AUDIT : INTERNAL AUDIT( IN EVERY THREE MONTH ) GOVERNMENT AUDIT( ONCE IN A YEAR ) STATUTORY AUDIT( ONCE IN A YEAR )
3. HUMAN RESOURCE DEPT EMPLOYEE BENEFIT HUMAN RESOURCE DEVELOPMENT CORPORATE SOCIAL RESPONSIBILITY EMPLOYEE DEVELOPMENT COUNCIL PUBLIC RELATION RAJ BHASA EMPLOYEE SECURITY
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4. OPERATION & MAINTENANCE (O&M) Plant start-up including prescribing pre-operational checks Development of operation and maintenance management systems & computerization Supervision of equipment repairs and unit overhaul Laboratory tests & field tests 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 Energy Audit
5. MATERIAL MANAGEMENT Optimal logistics and transportation strategies Review and risk coverage requirement Integrated inventory management system, and interlink ages with o&m system Optimal inventory policy Development of material management system & its computerization Scrap disposal management
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CHAPTER 6 SWOT ANALYSIS Strengths:1. Sheer size: Indias largest power plant with capacity to produce more than 34,000 MV electricity in a year. One of the Maha-Ratna of Indian company 84.50% shares are held by the government of India. Among the largest shareholder base in India with over 550 institutional investors and over 8,00,000 retail investors as of June 30th 2013. Out of 15 coal stations, 3 stations achieved PLF of more than 95% and other 7 stations achieved PLF of more than 90%. 2.Operational efficiency: Coal stations achieved an availability of 91.66% as against 91.41% in 2011-12. Gas stations achieved an availability of 92.60% as against 90.64% in 2011-12. Increase in power generation capacity by 19.40% in 2012-13. Increase of 11.87% in assets as against 2011-12. Increase of revenue by 15.46% as compare to the last year. Increase of 7.78% in profit after tax.
3. Contribution towards human resource: Providing employment opportunities to more than 25,000 of people. Every employee is paid on the basis of 6th pay commission . Separate department for employees development and welfare.
Weakness : Delay in decision making. Diversification in large area makes it difficult to manage all the operations. Unavailability of labour work force
Opportunities: Demand of power to be increase by 1.6 times by the year 2017 which provides lots of scope to satisfy more demand. Energy demand growth rate is closely related with GDP growth rate and India is one of the few countries which is showing positive growth. Not withstanding sustained demand, India continues to be among the lowest per capita consumers of electricity, lagging behind Brazil & China by over 3:1. Power deficit scenario has sustained despite capacity addition which says 9.8% peak deficit and 8.5% energy deficit. In FY11.
Long term plan to generate 132 GW by 2032. Agreement with Bangladesh, Bhutan, and Sri Lanka to fuel more growth.
Threats:1. Fuel/environmental risk : Overall requirement is 164.MMT but availability is only 137.2 MMT. Hike in prices of fuel by more than 10% over the period of time. Environmental concerns because of uncontrolled mining activities. Rules regarding emission of gas from plant. Various channels for testing machinery to be cleared before used. Huge land is required to increase the capacity. 2. Sustaining operational efficiency: NTPC became the member of North American electric reliability corporation which maintain data for 5000 electric units. Maintaining huge human resources which is over 25,000.
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CHAPTER 7 FINANCIAL RESULTS PROFIT & LOSS ACCOUNT: AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2013
(Rs./Lakh) Stand Alone S Particulars l. Quarter ended 31.03.2013 Quarter Year ended ended 31.03.2012 31.3.2013 Year ended 31.3.2012
(Audited)
Consolidated Year ended 31.3.2013

(Audited)
Year ended 31.3.2012

(Audited)
(Unaudited) (Unaudited) (Audited)
1 2
4 1235339
5 5487400
6 4632259
7 5741846
8 4825645
1 (a) Net 1551894 Sales (Net of Electricit y Duty) (b) Other 45867 Operatin g Income (c) Deprecia 191 tion Written Back (net) & Advance Against Deprecia tion recognis ed as Prior Period Sales
37815
164524
189873
171566
193224
(1360)
184054
(1655)
189821
(2542)
Page 42
Total (a+b+c) 2 Expenditure
1597952
1271794
5835978
4820477
6103233
5016327
(a Fuel Cost 972556 ) (b Employee 70819 ) s Cost (c Depreciati 69814 ) on (d Other 98247 ) Expenditu re (e Provision 28398 ) s Total 1239834 (a+b+c+d+e) 3 Profit from 358118 Operations before Other Income, Interest & Exceptional Items (1-2) 4 Other Income 20556 5 Profit before 378674 Interest & Exceptional Items (3+4) 6 Interest & Finance charges 7 Profit after 52995
834598
3537378
2946274
3641435
3018766
74561
278971
241236
292226
252309
73216
248569
265006
271969
289438
57316
284783
199965
341212
243333
930
155215
1090
155277
1235
1040621
4504916
3653571
4702119
3805081
231173
1331062
1166906
1401114
1211246
24950 256123
88806 1419868
102533 1269439
87406 1488520
101483 1312729
48179
214908
180893
249287
207818
325679
207944
1204960
1088546
1239233
1104911
Page 43
Interest but before Exceptional Items (5-6) 8 Exceptional items -
9 Profit(+)/Los 325679 s(-) from Ordinary Activities before Tax (7+8) 1 Tax 0 Expenses: (a Current ) Tax (b Deferred ) Tax (c Fringe ) Benefit Tax (FBT) 61632
207944
1204960
1088546
1239233
1104911
(9762)
255332
194544
260216
197908
(14137)
15941
39369
20913
44194
22963
269
270
Total (a+b+c) 47495 Less: FBT transferred to Expenditure during Construction / Development of coal mines Tax Expenses 47495 (Net)
6179 -
294701 -
215726 -
304410 -
221141 (5)
6179
294701
215726
304410
221146
Page 44
1 Net 278184 1 Profit(+)/ Loss(-) from ordinary activity after tax (9-10) 1 Extraordinary 2 Items (Net of tax expenses) 1 Net 278184 3 Profit(+)/ Loss(-) for the year before Minority Interest (1112) 1 Minority 4 Interest in Consolidated Profit 1 Net Profit 278184 5 (+)/ Loss (-) for the year after Minority Interest (1314) 1 Paid-up 824546 6 Equity Share Capital (Face value of share Rs. 10/- each) 1 Paid-up Debt 7 Capital
201765
910259
872820
934823
883765
201765
910259
872820
934823
883765
(517)
(3)
201765
910259
872820
935340
883768
824546
824546
824546
824546
824546
4318824
3779702
Page 45
1 Reserves 8 excluding revaluation reserve as per Balance Sheet 1 Debenture 9 Redemption Reserve 2 Earnings per 0 share - (EPS in Rs.) (a Basic and 3.37 ) diluted EPS before Extraordinary items (not annualise d) (b Basic and 3.37 ) diluted EPS after Extraordinary items (not annualise d) 2 Debt Equity 1 Ratio 2 Debt Service 2 Coverage Ratio (DSCR) 2 Interest Service
5964679
5419196
6013910
5437182
223166
198672
2.45
11.04
10.59
11.34
10.72
2.45
11.04
10.59
11.34
10.72
0.64
0.61
2.57
3.92
11.42
13.64
Page 46
3 Coverage Ratio (ISCR) 2 Public 4 Shareholding (a Number 127810322 ) of shares 0 (b %age of ) share holding 2 Promoters 5 and Promoter Group Shareholdin g (a Pledged/ ) Encumber ed Number of Shares Percentag e of share (as % of the total shareholdi ng of promoter and promoter group) Percentag e of share (as % of the total share capital of 15.50 12781032 20 15.50 12781032 20 15.50 12781032 20 15.50 12781032 20 15.50 12781032 20 15.50
Page 47
the company) (b Non) encumber ed Number 696736118 of Shares 0 Percentag 100.00% e of share (as % of the total shareholdi ng of promoter and promoter group) Percentag 84.50% e of share (as % of the total share capital of the company) 69673611 80 100.00% 69673611 80 100.00% 69673611 80 100.00% 69673611 80 100.00% 69673611 80 100.00%
84.50%
84.50%
84.50%
84.50%
84.50%
BALANCE SHEET:
SUMMARY OF ASSETS AND LIABILITIES AS AT 31st MARCH 2013 (Rs./Lakh) Stand Alone Particulars Year ended 31.03.2013 (Audited) Year ended 31.03.2012 (Audited) Consolidated Year ended 31.03.2013 (Audited) Year ended 31.03.2012 (Audited)
SOURCES OF FUNDS
Shareholders Funds: (a) Capital (b) Reserves and Surplus 824546 5964679 824546 5419196 161084 824546 6013910 79205 824546 5437182 161084
Deferred Revenue from 79205 Advance Against Depreciation Deferred Income from Foreign Currency Fluctuation Ash Utilisation Fund Loan Funds (a) Secured Loans (b) Unsecured Loans Deferred Foreign Exchange Fluctuation Liability Deferred Tax Liability (net) after Recoverable Minority Interest TOTAL APPLICATION OF FUNDS Goodwill on Consolidation 991068 3327756 9654 6243
6243
5896
1062
907992 2871710 6105
1742640 3332843 9667
1537643 2877210 6105
60295
20925
67165
22971
11263446
10211558
48505 12130620
27896 10895699
62
62
Fixed Assets incl. CWIP 7750659 and Construction Stores & Advances Investments Deferred Foreign Currency Fluctuation 1234484 45915
6686560
8971821
7648619
1480709 36517
835733 45915
1177761 36525
Page 49
Assets Current Assets, Loans And Advances (a) Inventories (b) Sundry Debtors (c) Cash and Bank balances (d) Other current assets (e) Loans and Advances Less: Current Liabilities and Provisions (a) Liabilities (b) Provisions Net Current Assets 1032048 275243 2232388 768758 307058 2005764 2008 1243876 283567 2277089 975792 315033 2030724 2008 363912 792431 1618526 334771 665146 1445948 391083 839987 1785983 353296 708081 1605301
104697 660113
84404 551311
107158 680321
86802 568069
Deferred Expenses from Foreign Currency Fluctuation TOTAL 11263446
10211558
12130620
10895699
AUDITED SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED 31st March 2013 (Rs./Lakh) Stand Alone Quarter Sl. Particulars ended 31.03.2013 (Unaudited) 1 2 1 Segment Revenue (Net Sales)
Consolidated Quarter ended 31.03.2012 (Unaudited) 4 Year ended 31.03.2013 (Audited) 5 Year ended 31.03.2012 (Audited) 6 Year ended 31.03.2013 (Audited) 7 Year ended 31.03.2012 (Audited) 8
- Generation 1547114 - Others - Total 2 Segment Results (Profit before Tax and Interest) - Generation 327128 - Others - Total Less (i) 36450 Unallocated Interest and Finance Charges (ii) Other (34239) Unallocable expenditure net of unallocable income Total Profit 325679 before Tax 3 Capital Employed (Segment Assets Segment Liabilities) - Generation 4526023 762 327890 4780 1551894
1230529 4810 1235339
5470455 16945 5487400
4616867 15392 4632259
5683996 57850 5741846
4774991 50654 4825645
197550 1664 199214
1209483 5020 1214503
1015253 5816 1021069
1267669 13598 1281267
1049376 16085 1065461
28584
143284
111682
174059
138312
(37314)
(133741)
(179159)
(132025)
(177762)
207944
1204960
1088546
1239233
1104911
3945020
4526023
3945020
5050764
4346095
Page 51
- Others - Unallocated - Total
425 2262777
5445 2293277
425 2262777
5445 2293277
29635 1758057
33623 1882010
6789225
6243742
6789225
6243742
6838456
6261728
The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable. Notes: 1 The Subsidiaries and Joint Venture Companies considered in the Consolidated Financial Results are as follows a) 1 Subsidiary Companies NTPC Electric Supply Company Ltd. (incl. its Joint Venture Kinesco Power and Utilities Private Ltd *. with 50% holding) NTPC Vidyut Vyapar Nigam Ltd. NTPC Hydro Ltd. Kanti Bijlee Utpadan Nigam Ltd. Bhartiya Rail Bijlee Company Ltd. Joint Venture Companies Utility Powertech Ltd. NTPC Alstom Power Services Private Ltd. NTPC SAIL Power Company Private Ltd.* NTPC - Tamilnadu Energy Company Ltd.* Aravali Power Company Private Ltd. Ratnagiri Gas and Power Private Ltd. Meja Urja Nigam Private Ltd. NTPC-BHEL Power Projects Private Ltd BF-NTPC Energy Systems Ltd.* 50 50 50 50 50 30.17 50 50 49 Ownership (%) 100
2 3 4 5 b) 1 2 3 4 5 6 7 8 9
100 100 64.57 74
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10 Nabinagar Power Generating Company Private Ltd. 11 National Power Exchange Ltd. 12 NTPC-SCCL Global Ventures Private Ltd. 13 International Coal Ventures Private Ltd.* 14 Transformer and Electrical Kerala Ltd.* 15 Energy Efficiency Services Ltd.* 16 National High Power Test Laboratory Private Ltd.* 17 CIL-NTPC Urja Pvt. Ltd.* All the above companies are incorporated in India. * The financial statements are un-audited. 2 a)
50 16.67 50 14.28 44.6 25 25 50
The Central Electricity Regulatory Commission (CERC) notified the Regulations, 2011 in January 2011, containing inter-alia the terms and conditions for determination of tariff applicable for a period of five years with effect from 1st April 2011. Pending determination of station-wise tariff by the CERC, sales have been provisionally recognized at Rs. 48,93,531 lakh (previous year Rs. 44,47,393 lakh) for the year ended 31st March 2011 on the basis of principles enunciated in the said Regulations on the capital cost considering the orders of Appellate Tribunal for Electricity (APTEL) for the tariff period 2004-2011 including as referred to in para 2 (d). Regulations, 2011 provide that pending determination of tariff by the CERC, the Company has to provisionally bill the beneficiaries at the tariff applicable as on 31st March 2011 approved by the CERC. The amount provisionally billed for the year ended 31st March 2013 on this basis is Rs. 47,51,921 lakh (previous year Rs. 43,76,513 lakh).
b)
For the units commissioned subsequent to 1st April 2011, pending the determination of tariff by CERC, sales of Rs. 4,52,839 lakh (previous year Rs. 1,73,540 lakh) have been provisionally recognised on the basis of principles enunciated in the Regulations, 2011. The amount provisionally billed for such units is Rs. 4,41,612 lakh (previous year Rs. 1,53,650 lakh). Sales of Rs. 80,087 lakh (previous year Rs. 11,933 lakh) pertaining to previous years have been recognized based on the orders issued by the CERC/APTEL. In respect of stations/units where the CERC had issued tariff orders applicable from 1st April 2004 to 31st March 2011, the Company aggrieved over many of the issues as considered by the CERC in the tariff orders, filed appeals with the APTEL. The
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c)
d)
APTEL disposed off the appeals favourably directing the CERC to revise the tariff orders as per the directions and methodology given. The CERC filed appeals with the Honble Supreme Court of India on some of the issues decided in favour of the Company by the APTEL. The decision of Honble Supreme Court is awaited. The Company had submitted that it would not press for determination of the tariff by the CERC as per APTEL orders pending disposal of the appeals by the Honble Supreme Court. Considering expert legal opinions obtained that it is reasonable to expect ultimate collection, the sales for the tariff period 2004-2011 were recognised in earlier years based on provisional tariff worked out by the Company as per the directions and methodology given by the APTEL. As accountal of sales is subject to the decision of the Honble Supreme Court of India, pending decision of the Honble Supreme Court of India, a sum of Rs. 1,26,286 lakh included in debtors has been fully provided for during the year. Effect, if any, will be given in the financial statements upon disposal of the appeals. e) Consequent to issue of additional capitalisation orders by the CERC, advance against depreciation required to meet the shortfall in the component of depreciation to be charged in future years has been reassessed and the excess determined amounting to Rs. 7,975 lakh has been recognised as sales. During the year, the CERC has issued tariff orders in respect of some of the stations in compliance with the judgement of APTEL mentioned at para d) above, and the beneficiaries were billed accordingly. Since the orders of CERC include those issues which have been challenged by them before Honble Supreme Court, and are pending disposal, the impact thereof amounting to Rs. 25,222 lakh has been accounted as Advance from customers.
f)
3 Sales includes Rs. 33,851 lakh (previous year (-) Rs. 71,993 lakh) on account of income tax recoverable from customers as per CERC Tariff Regulations, 2006 and Rs. 2,172 lakh (previous year Rs. 24,847 lakh) on account of deferred tax recoverable from customers as per CERC Tariff Regulations, 2011. 4 CERC has issued a draft notification dated 3rd September 2012 which inter-alia provides for upfront truing up of un discharged liabilities with regard to capital cost admitted by CERC before 1st April 2011. In anticipation of final notification an estimated amount of Rs. 26,359 lakh has been provided for towards tariff adjustment. 5 Provision for current tax for the year includes tax related to earlier years amounting to Rs. 5,602 lakh (previous year (-) Rs. 52,540 lakh). 6 During the year 2012-13, one unit of 490 MW at Dadri and one unit of 500 MW at Korba of the Company have been declared commercial w.e.f 31st July 2012 and 21st March 2013 respectively.
7 Effect of changes in Accounting Policies: a) During the year, the Office of the Comptroller & Auditor General of India has expressed an opinion that power sector companies shall be governed by the rates of depreciation notified by the CERC for providing depreciation in respect of generating assets in the accounts instead of the rates as per the Companies Act, 1956. Accordingly, the Company revised its accounting policies relating to charging of depreciation w.e.f 1st April 2011 considering the rates and methodology notified by the CERC for determination of tariff through Regulations, 2011. In case of certain assets, the Company has continued to charge higher depreciation based on technical assessment of useful life of those assets. Consequent to this change, prior period depreciation written back is Rs. 1,11,650 lakh, depreciation for the year is lower by Rs. 27,962 lakh. As a result, fixed assets and profit before tax for the year is higher by Rs. 1,39,612 lakh. Due to the above change, the amount of advance against depreciation (AAD) required to meet the shortfall in the component of depreciation in revenue over the depreciation to be charged off in future years has been reassessed by the Company station-wise as at 1st April 2011 and the excess determined, amounting to Rs. 72,749 lakh has been recognised as prior period sales. Further, the amount recoverable from the beneficiaries on account of deferred tax materialised for the financial year 2011-12 has been reassessed and excess amount of Rs. 21,267 lakh is reversed as Prior Period Sales with equivalent reduction in provision for tax of earlier years in the Profit and Loss Account. Further, due to the above change, deferred tax liability (net) and deferred tax recoverable from the beneficiaries as at 31st March 2012 amounting to Rs. 3,04,941 lakh and Rs. 2,84,016 lakh respectively have been reviewed and restated to Rs. 4,41,519 lakh and Rs. 3,80,969 lakh respectively. As a result, deferred tax liability as at 31.03.2012 has increased by Rs. 1,36,578 lakh out of which Rs. 96,953 lakh is recoverable from the beneficiaries as per Regulation 39 of Regulations, 2011 and net increase is debited to provision for deferred tax.
b)
c)
d)
8 Ministry of Power (MOP), Government of India (GOI) vide letter dated 24.12.2012 has communicated the discontinuation of one of the Hydro Power Projects of the Company in the State of Uttarakhand. Subsequently, the Company has issued Letter of Frustration to the suppliers/vendors of the project. MOP has sought details of expenditure incurred, committed costs, anticipated expenditure on safety and stabilization measures, other recurring site expenses and interest costs, as well as claims of various packages of contractors/vendors. Management expects that the total cost incurred, anticipated expenditure on safety and stabilization measures, other recurring site expenses and interest costs as well as claims of various packages of contractors/vendors for this project will be compensated in full. Hence, cost incurred on
the project up to 31.03.2013 amounting to Rs. 74,882 lakh has been accounted as recoverable from GOI. 9 The Company is executing a thermal power project in respect of which possession certificates for 1,489 acres (previous year 1,489 acres) of land has been handed over to the Company and all statutory and environment clearances for the project have been received. Subsequently, a high power committee has been constituted as per the directions of GOI to explore alternate location of the project since present location is stated to be a coal bearing area. Aggregate cost incurred up to 31st March 2013 Rs. 19,019 lakh (previous year Rs. 18,310 lakh) is included in Fixed Assets. Management is confident of recovery of cost incurred, hence no provision is considered necessary. 10 During the quarter, the Company has paid an interim dividend of Rs. 3.00 per share (face value Rs. 10/-each) for the year 2012-13. The Board of Directors has recommended final dividend of Rs. 0.80 per share (face value Rs. 10/-each). The total dividend (including interim dividend) for the financial year 2012-13 is Rs. 3.80 per share (face value Rs. 10/each). 11 The audited accounts are subject to review by Comptroller and Auditor General of India under section 619(4) of the Companies Act, 1956. 12 Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation and Tax/(Interest net off transferred to expenditure during construction + Principal repayment) and ISCR = Earning before Interest, Depreciation and Tax/(Interest net off transferred to expenditure during construction). 13 Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 31st March 2013 Opening Balance No. of complaints 8 Additions 1813 Disposals 1809 Closing Balance 12
14 The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 10th May 2013 and approved by the Board of Directors in the meeting held on the same day. 15 Figures for the previous year have been regrouped/ rearranged wherever necessary. For and on behalf of Board of Directors Place: New Delhi Date: 10thMay 2013 sd/(A.K.SINGHAL) DIRECTOR (FINANCE)
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CHAPTER 8 FINDINGS, SUGGESTIONS AND CONCLUSION

Need for restructuring Growth in size and businesses of NTPC likely to affect pace of decision making Increased burden on functional Directors at corporate level, both policy level as well as operational level Decision making at customer interface becomes critical in view of growing number of customers Increased accountability to investors would warrant adequate delegation of power near regions for quick decision making Recommendations on Restructuring Retain current three tier structure, since this is best suited to maximise overall long term value. Four regional Directors & Six Directors at CC (Finance, HR, Commercial, Hydro, Technical/Engineering, Planning & Business Development Advantage of recommended structure Decentralisation and delegation of more power to regions to achieve better and faster decision making in day-to-day functioning in the areas of operation, project execution and commercial etc. There will be healthy competition between regions through internal benchmarking, cooperation and sharing of best practices and resources amongst the regions. NTPC shall be able to take on the competition effectively. Better customer focus as the decision making point becomes closer to customers. There will be better avenues of growth for the employees in NTPC. Measures to improve organisational effectiveness Induction of new technologies Super critical Plant land area needs to be reduced compact land area for plant, multi stored flats in township, reduced land foe ash disposal by using washed coal and utilisation of ash Plant lat out needs to be standardised with specific acreage norms and made compact Inventory control-standardisation, common pool of inventory Maintenance regime-move to higher levels of maintenance philosophy to sustain high availability at low O&M cost, focus on R&M, provide large scale consultancy services in R&M to other sector players Location of permanent township near plant
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Conclusions and observations:I have observed that National Thermal Power Corporation (NTPC) is well structured, highly efficient in work force and very much strict regarding their rules and regulation recommended by the top level management. NTPC is one of the Maha-Ratna of India and personally it is almost impossible to study each and everything in a short span of time. In spite of being in power generation industry which leads to environment pollution they do all they can to protect the environment. There are various channel that any plan has to go through before it gets implemented which leads to high level of efficiency but at the same time its time consuming. They are very conscious regarding red tapism, favouritism, wastage of time, delay in decision making etc. which is common in general government office. One important thing i have observed is that they dont have any marketing department .They directly supply generated electric power to the government of India .
Page 58
BIBLIOGRAPHY:BOOKS:
Author
Philip Kotler P.Subba Rao
Book name
Marketing management Essential of human resource management and industrial relations
Edition
13th
Publisher
Pearson publishers Himalaya Publishers
Alexis Leon Omachonu Kemp Anandan C Aswathappa K
ERP Systems Principles Of Total Quality Budgeting For Managers Product Management Organisational Behaviour
2nd 3rd 3rd 5th 6

th
Tata McGraw Hill Taylor Mcg Tata McGraw Hill Himalaya Publishers
WEBSITES: www.ntpc.co.in www.ntpcpmc.com www.kvntpcanta.org.in/ www.wikipedia.com http://knowledge.wharton.upenn.edu/india/ www.checkonomics.com http://economictimes.indiatimes.com www.moneycontrol.com www.thehindubusinessline.com http://india.gov.in http://www.kvfarakka.org/ http://www.csidc.in
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NTPC Organization Structure and Functions

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NTPC Organization Structure and Functions

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CHAPTER 1

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OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

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CHAPTER 2 INDUSTRY PROFILE INTRODUCTION:

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OVERVIEW OF INDIAS POWER SECTOR

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Acharya Academy Of Management Studies

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Coal Coal Coal

CORE VALUES: (B-COMIT)

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Acharya Academy Of Management Studies

Acharya Academy Of Management Studies

Company Secretary A.K. Rastogi

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CHAPTER 4 ORGANIZATION STRUCTURE STRUCTURE:

Organization structure of NTPC:

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Various departments/ in plant level:Headed by Head of the Project

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EXECUTIVE RECRUITMENT POLICY, SELECTION PROCESS

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CHAPTER 5 FUNCTIONAL DEPARTMENTS

5.1 HUMAN RESOURCE DEPARTMENT

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Acharya Academy Of Management Studies

Senior manager safety

Sr. safety officer Functions of safety office:

Safety officer (Trainee)

Chief security officer (HOD)

Assistant chief security officer

Duties and responsibilities:

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TIME OFFICE ADMINISTRATION

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4. When leaving from the job

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5.2 FINANCE DEPARTMENT

Sr. Manager Accounts

Sr. Manager Costing

Sr. Manager Central Excise

Manager Sales Accounts

Minimizing risk Profit maximization Searching efficient sources of funds

ROLE OF FINANCE MANAGER

RESPONSIBILITIES AND DUTIES

REPORTS AND RECORDS MAINTAINED

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Consolidated Year ended 31.3.2013

Year ended 31.3.2012

(Unaudited) (Unaudited) (Audited)

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Total (a+b+c) 2 Expenditure

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