PROJECT

REPORT
ON
MCKINSE
Ys 7-S
FRAMEW
ORK OF
NATIONA
L
THERMA
L POWER
CORPOR
ATION
LIMITED

COMPANYS PROFILE POWER

GENERATION

INTRODUCTION
Established in 1975, NTPC, the largest power company the country has been consistently
powering of the growth of India. An ISO 9001:2000 certified company; it is worlds 3rd largest
thermal power generator and second most efficient capacity utilization. It feeds a fourth of
India's electricity needs or as we say "NTPC lights up every fourth bulb in the country". It is one
of the most efficient power companies in India, having operations that match global standards.
Apart from power generation, which is the mainstay of the company, NTPC has already ventured
into consultancy, power trading, ash utilization and coal mining. NTPC ranked 337th in the 2012,

Forbes Global 2000 ranking of the Worlds biggest companies. NTPC became a Maharatna
company in May, 2010, one of the only four companies to be awarded this status.
With this, NTPC reaffirms as one of the very Best Employers in India, second only to Google
and Intel. NTPC has also been ranked first amongst PSUs, 1st amongst large organizations (more
than 10,000 employees) and 1st amongst manufacturing and production industries. Shri S.P.
Singh, Director (HR) and Shri S. Roy, Executive Director (HR), NTPC Ltd. received the award.
The total installed capacity of the company is 45,548 MW (including JVs) with 18 coal based
and 7 gas based stations. 7 Joint Venture stations are coal based and 8 renewable energy projects.
The company has set a target to have an installed power generating capacity of 1,28,000 MW by
the year 2032. The capacity will have a diversified fuel mix comprising 56% coal, 16% Gas,
11% Nuclear and 17% Renewable Energy Sources including hydro. By 2032, non fossil fuel
based generation capacity shall make up nearly 28% of NTPCs portfolio. Towards this goal,
NTPC has adopted a multi prong strategy which includes Greenfield projects, Brownfield
projects, joint ventures and acquisition of existing plants route. Besides, the corporation has also
adopted the diversification strategy in related business areas such as coal mining, power trading,
and manufacturing etc to ensure robust growth of the company.
NTPC has been operating its plants at high efficiency levels. Although the company has 17.73%
of the total national capacity, it contributes 25.91% of total power generation due to its focus on
high efficiency.
NTPC has 70% Government holding of the equity share capital. NTPC is not only the foremost
power generator; it is also among the great places to work. The company is guided by the
People before Plant Load Factor mantra which is the template for all its human resource
related policies. NTPC has been ranked as 6th Best Company to work for in India among the
Public Sector Undertakings and Large Enterprises for the year 2014, by the Great Places to Work
Institute, India Chapter in collaboration with The Economic Times.
SERVICES OFFERED:
1)
2)
3)
4)
5)
6)
7)

POWER GENERATION
POWER DISTRIBUTION
POWER TRANSMISSION
CONSULTANCY SERVICE
ASH BUSINESS
COAL MINING
COAL TRADING

MCKINSEYS 7-S FRAMEWORK OF NTPC LTD. IN POWER

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

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

Diversified Growth
NTPCs quest for diversification started with its foray into Hydro Power. It has, since then,
been moving towards becoming a highly diversified company through backward, forward
and lateral integration .The company is well on its way to becoming an Integrated Power
Major, having entered Hydro Power,Coal Mining, Power Trading, Equipment
Manufacturing and Power Distribution. NTPC has made longstrides in developing its Ash
Utilization business. In its pursuit of diversification, NTPC has also developed strategic
alliances and joint ventures with leading national and international companies.
a) Hydro Power:
In order to give impetus to hydro power growth in the country and to have a balanced
portfolio of power generation, NTPC entered hydro power business with the 800 MW
Koldam hydro projects in Himachal Pradesh. Two more projects have also been taken up in
Uttarakhand. A wholly owned subsidiary, NTPC Hydro Ltd., is setting up hydro projects
of capacities up to 250 MW.
b) Coal Mining:
In a major backward integration move to create fuel security, NTPC has venture dinto coal
mining business with an aim to meet about 20% of its coal requirement from its captive
mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC,
including 2blocks to be developed through joint venture route. Coal Production is likely to
start in 2009-10.

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

NTPC has focused on the utilization of ash generated by its power stations to convert the
challenge of ash disposal into an opportunity. Ash is being used as a raw material input for
cement companies and brick manufacturers. NVVN is engaged in the business of Fly Ash
export and sale to domestic customers. Joint ventures with cement companies are being
planned to set up cement grinding units in the vicinity of NTPC stations.
e) Nuclear Power:
An agreement had been signed between Nuclear Power Corporation of India Ltd (NPCIL)
and NTPC to form a joint venture company (with 51 per cent stake held by NPCIL and 49
per cent by NTPC) for establishing nuclear power projects. A JV company Anushakti
Vidhyut Nigam Ltd. has been formed.
f) Renewable Power:
In order to broad base its fuel mix NTPC has plan of capacity addition of about 1,000 MW
through renewable resources, such as solar and wind energy by 2017.
Key factors for strategy formulation used by NTPC
Demand and Supply
Demand and Supply is the factor used for the making of strategy. They do their operational
planning by looking at the demand of power and resources available for power generationThe
energy requirement registered a growth of 0.55 and peak demand grew at 9.0% during the
financial year 2014-15 was 3.05 and 4.7% and is likely to go under 2.1% and 2.0% respectively.
Despite very high shortages likely to be experienced by southern region. The demand is believed
to be suppressed due to poor financial health of discoms who find supplying power at existing
tariffs unviable. The energy requirement will go up once the latent demand is unlocked.
Industrial consumption is the maximum and most remunerative in India, growth in industrial
activity will fuel power demand in the country. Further, still large population to the tune of ~28
crore are without access to power. The per capita consumption of power in India still remains
abysmal at 1010 units (provisional) for financial year 2014-15. Goal has also set a target to
provide 24X7 power for all 2019. Given the above scenario the long term outlook for power
demand remains strong.
SWOT Analysis
NTPC use SWOT analysis as the key factor for formulating the strategy. It is the analysis done
by the HR department. Through the SWOT analysis one can know about their strengths,
weaknesses, opportunities and threats.
Plant load factor (PLF)
NTPC has complete focus to increase their PLF.Although the company has approx. 18% of the total
national capacity it contributes to over 27% of total power generation due to its focus on operating its
power plants at higher efficiency levels (approx. 83% against the national PLF rate of 78%). But PLF

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

POWER. NTPC Ltd, Indias largest power producer, is working on a new strategy to face the
challenges posed by an evolving energy landscape marked by regulatory change, its
unfolding acquisition plans and the governments increasing focus on renewable sources of
power.
As part of the ambitious exercise, the state-owned thermal power utility will appoint a
consultant to revise its NTPC Corporate Plan 2032, which lays down its future road map.
Consultants such as Bain and Co. India Pvt. Ltd, Deloitte Touche Tohmatsu India Pvt.
Ltd and McKinsey and Co. are in the fray for the assignment.
The exercise comes in the backdrop of the Bharatiya Janata Party-led National Democratic
Alliance government making energy security one of its top priorities. The government has
launched a scheme aimed at ensuring eight hours of quality power supply to farmers and 24hour electricity to rural households.
For the governments strategy to succeed, NTPC, which has a 17% share in Indias power
generation capacity of 255,012.79 megawatts (MW), has to play an important role. The
utility plans to add 14,038MW in 2012-17 and has an ambitious capital expenditure target
of Rs.1.5 trillion. It has set itself the target of becoming a 128,000MW power producer by
2032.
The idea is to prepare NTPC in a fast-changing business landscape. The corporate plan has
to be revised. There are both opportunities and challenges. The strategy has to be evolved
keeping all the new emerging issues in mind such as regulatory changes, mergers and
acquisition opportunities, and a focus on renewable sources of energy. The presentations
from the consultants are on, a person aware of the development said, requesting anonymity.

Shared Values
VISION
A world class integrated power major, powering Indias growth, with increasing global
presence
MISSION
Develop and provide reliable power, related products and services at competitive prices,
integrating multiple energy sources with innovative and eco-friendly technologies and contribute
to society.
Make available reliable and quality power in increasingly large quantities at competitive
prices and ensure timely realization of revenues.
Develop a strong portfolio of profitable businesses in overseas markets
including technical services, generation assets etc.
Continuously attract and develop committed human resources to match world
standards.
Lead fundamental and applied research for adoption of the state-of-the- art
technologies, breakthrough efficiency improvements and new fuels.
Lead developmental efforts in the Indian power sector including assisting state utility
reform, policy recover etc.

 Adopt a broad based capacity portfolio including Hydro Power, LNG,

and non conventional and eco-friendly fuels.

Nuclear

Power,

Plan and speedily implement power projects using state-of- the art technologies.
Be an integrated utility by implementing strategic diversifications in areas
such as power trading distribution, transmission, coal mining, coal beneficiation etc.
CORE VALUES BE COMMITTED
B

Business Ethics.

Environmentally & Economically Sustainable

Customer Focus

Organizational & Professional Pride

Mutual Respect And Trust

Motivating Self & Others

Innovation and Speed.

Total Quality For Excellence

Transparent & Respect Organization

Devoted

OBJECTIVES OF COMPANY
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 sources of energy to ensure long run
competitiveness and mitigate fuel-risks. To diversify across the power value chain in
India by considering backward and forward integration into areas such as power trading,
transmission, distribution, coal mining, coal beneficiation, etc.

To develop a portfolio of generation assets in international markets.

To establish a strong brand in the domestic & international market

Customer Focus

To foster a collaborative style of working with customer growing to be a preferred brand

for supply of quality power.

To expand the relationship with existing customers by offering a bouquet of services in

addition to supply of power e.g. trading, energy consulting, distribution consulting,
management consulting, management practices.

To expand the future customer portfolio through profitable diversification into

downstream business, inter alia retail distribution and direct supply.

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

Agile Corporation

To ensure effectiveness in business decisions and responsiveness to change in the

business environment by Adopting a portfolio approach to new business development.

To develop a learning organization having knowledge based competitive edge in current

and future businesses.

To effectively leverage information technology to ensure speedy decision making across

the organization.

Performance Leadership

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

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

To aim for performance excellence in the diversification businesses.

To embed quality in all systems and processes.

Human Resource Development

To enhance organizational performance by institutionalizing an objective and open

performance management system.

To align individual and organizational needs and develop business leaders by

implementing a career development system.

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

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

Financial Soundness

To maintain and improve the financial soundness of NTPC by prudent management of

the financial resources.

To continuously strive to reduce the cost of capital through prudent management of

deployed funds, leveraging opportunities in domestic and international financial markets.

To develop appropriate commercial policies and processes this would ensure

remunerative tariffs and minimize receivables.

Sustainable & Development

To contribute to sustainable power development by discharging corporate social

responsibilities.

To lead the sector in the areas of resettlement and rehabilitation and environment
protection including effective ash-utilization, peripheral development and energy
conservation practices.
To lead developmental efforts in the Indian power sector through efforts at policy
advocacy, assisting customers in the operations and management of power plant.

STRUCTURE

CMD NTPC

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

FINANCE

PRODUCTION

MARKETING

HR

TECHNICAL

REGIONAL DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL
MANAGER

ASSISTANT GENERAL
MANAGER

SENIOR MANAGER

MANAGER

FUNCTIONAL DEPARTMENTS

Fig 3.1 FUNCTIONAL DEPARTMENTS

Functional
Departments

Finance &
Admin

Human
Resource

Operation &
Mgmt

FINANCE & ADMINISTRATION:

Every business main intentions are to make the profit so, business transaction need to be
recorded in specific format for the calculation of profit or loss at the end of year. Finance
department is very important for every organization to keep the finance related information.
Finance department involved in the recoding of monitory transaction and finalization of accounts
which is helpful for management decisions. Finance department is also responsible for planning
of funds requirements in the future and it needs to find the sources finance.
OBJECTIVES OF DEPARTMENT:
a. Ensuring regular & sufficient supply of capital to business.
b. Ensure affair rate of return to the supplier of the capital.
c. Ensure the best utilization of capital by following the principals of liquidity, profitability
& safety.
d. Coordinating the activities of the finance department with those of other department of
the enterprise.

Fig 3.2 STRUCTURE OF F&A DEPARTMENT

HOD
(F&A)

DGM

Sr.M (Works, Books, Budget,

SMF

Works & Admin

Cash & Bank)

Purchase

Sr. MANAGER

MANAGER

Sr. MANAGER

MANAGER

Asst. MANAGER

MANAGER

Asst.
MANAGER
F&A
DEPARTMENT

Asst. MANAGER

Finance department is very essential for any organization to be set up. It is the backbone
of any organization. Similarly the finance department plays a vital role in the set up and running
of NTPC Chief Accountant manager and chief finance manager work under the direct control
of finance Director at NTPC. Other top executives in the finance department are senior executive
(finance), divisional officer (finance), accounts officers; assistant accounts officers, senior
assistants (Accounts) and assistant (accounts). The chief finance manager and accounts manager
handle various activities in the finance department. Each of them has their tasks cut out
systematically in these areas.
In NTPC, finance and accounting department is subdivided into 8 sub departments. They
are:BOOKS & BUDGET:
The main work of this section is accounting and maintaining the register of finance. Another
function done by this section is auditing for which the accountants are out sources by the NTPC.
The main audits conducted by the company are:
a) Internal audit & Statutory audit: - Mainly done by the out sources
accountants. It is done quarterly or as per the need.
b) Controller & Auditor general of India audit: - This audit had done by
controllers attorney general of India. This is the audit of balance sheets.
c) Cost audit: - From 2005-2006 company start cost audit. It handles the cash.
These departments send the estimation for cash requirement, to the corporate office

weekly and daily basis and also tell why it is required. Also interface with banks, make
payment and receive payment Take custody of monetary and non-monetary instrument
for security. It is also take bank guarantee for performance; it is also called documentary
credit.
d) Prosperity audit: - This audit is done for check the system to see that all going properly
or not. It is done once in five year.
COMMERCIAL SECTION
This section does the accounting of sales of the project. It makes oil and coal payment voucher. It
also maintain priced store ledger (PSL).
STORE BILLS SECTION
This section does the payment of inventory as per terms of purchase order, advance and
final payment
and maintains
account. Make
advance schedule
and material
under inspection schedule. It also makes insurance payment, transporters payment, premium
and claims.
VETTING AND CONCURRENCE
The work of this Section is Contract and Purchase estimation, Vetting of competitive statement
then we calculate Land Price, Vetting of Draft Purchase Order, Finance Concurrence.
PRICED STORE LEDGER (PSL) SECTION
This section does the physical inventory valuation. The method of valuation is monthly moving
weighted average. This valuation is done in every month. This department gives the reports in
various topic like XYZ, ABC and VED analysis report, and non-moving item report. And also
done physical verification of stock every year.
WORKS BILL SECTION
T h i s S e c t i o n d o e s t h e p a ym e n t o f s e r v i c e s t a k e n b y S S T P S l i k e M a i n t e n a n c e
Contracts. The payment made on Running Bill on the basis of Measurement Book. Also do the
final payment and take Penalties and return there Securities. This section also do the
capitalization were work is going on. The work not had done fully completed
Show under Capital Work In Progress Account (CWIP). When this work complete
then CWIP to Fixed Assets. Incidental Expenditure during Construction (IEDC) and
Interest During Construction (IDC) add in CWIP Account. Renovation and Modernization
Work is going on four Stations i.e. Singrauli, Korba, Ramagundam and Farakka. And the
work of Renovation and Modernization handle by this Section.
ESTABLISHMENT SECTION
This Section give the Salary and recover the PPF amount, House rent, Electricity
charge, Club expenses and Income tax from employees. This section also deals with Loan &
Advances given to employees. Some special type of Loans provides by NTPC to
its employees.
MISCELLANEOUS SECTION
This section makes the payment of Non-Oriented contract payment. Deal with Petty Cash.
Telephone bills, Entertainment expenses paid by this Section.
HUMAN RESOURCE MANAGEMENT

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

II.

Managerial function
a. Planning
b. Organizing
c. Directing
d. Controlling
Operative function
a. Employment
b. Human resource development
c. Compensation
d. Human relation

OBJECTIVES OF HR FUNCTION:
To Place manpower of required quality and in required number in position so as to ensure
fulfillment of companys objectives, plans and policies. The department would forecast
on a continuous basis in advance, manpower requirement at various stages of the
construction and operation of companys projects, the organization structure, the type of
manpower etc. and plan advance action to meet the above objective. Through proper
recruitment and selection process, the department would Endeavour to attract persons
with potential and select those with high degree of knowledge, skill and caliber.
To formulate design, review and implement suitable pre-employment and postemployment training and in-company and external management development and
workers development programmers with an individual employee of the company.
To identify from among the employees of the company persons with potential to rise to
high levels of organizational hierarchy and develop implement suitable systems of career
planning and managerial succession planning.
To create and sustain a favorable employee attitude a view to obtaining maximum
contribution and cooperation of employees in achieving the objectives of the company
through suitable employment, adequate, compensation by way of wages/salaries,
benefits, welfare facilities, suitable motivational schemes, safe working conditions and
job satisfaction.
Develop personnel policies in all areas relevant to the manpower to management and
notify the same to the employees with a view to reducing the communication gap
between the management and the employees.
To cultivate and maintain a participative culture through suitable system of managers
participation in decision making and workers participation in management.
To establish and introduce suitable systems of grievance handling for redresser of
employees grievances in the shortest possible time and with the lowest possible steps.
To encourage healthy and legitimate trade union activities and based on mutual respect of
each others view points and look upon trade unions as the agencies of communication
between the management and workers. To this end, the department would endeavor to

understand the problems of workers through regular dialogues with the trade unions and
aim at solving problems and disputes through mutual discussions.

To identify key areas of organization development, diagnose the problems, suggest

measures and follow-up the implementation.

Fig- 3.3 STRUCTURE OF HUMAN RESOURCE DEPARTMENT

GENERAL MANAGER

DEPUTY GENERAL
MANAGER
ASST. GENERAL MANAGER

SENIOR MANAGER

MANAGER

ASST. MANAGER

OFFICER

NTPC believes in the power of people and it is the professional philosophy of the management to
create an enabling organizational culture for people to demonstrate their creativity, initiative and
involve in holistic development, through recognition and celebration of achievements. Although
NTPC has formulated many HR policies for employees development and growth, it was felt that
there is still space for enhancing employees motivation and morale on a continued and sustained
basis. Therefore, a bouquet of rewards and recognition schemes is evolved with an objective of
reinforcing good work and behavior of employees in order to achieve Organizational excellence.
HR Function at Corporate Level

Major functions under this level are:

a) Industrial Engineering:
The activities of this group span the various facts of manpower planning & budgeting,
organization structure, development of manpower norms/ standards/modules, incentive/
reward schemes, preparation of financial budgets for Corporate Personnel

&Administration, Job Evaluation & Development of job specification/descriptions,

Personnel Data Bank and computerization, Organization & Methods etc.
b) Employment and Placement:
This function covers with the various activities pertaining to the recruitment of all
executives/executive trainees of the corporation and the non-executives of Delhi based
offices.
c) Corporate Training:
This group looks after the development of training policies, programmers of various
types of technical training schemes including Engineering Executive Trainees, Executive
trainees (Chemistry), Diploma Trainees, ITI Trainees, training under contract packages
etc.
d) Management Development, Organizational Development and Personnel Research:
This function encompasses the various organization development aspects relating to
performance appraisal, career & succession planning, job rotation & action learning,
promotion policy etc.
e) Establishment:
This area covers personnel activities from the time an employee joins the organization to
the time he leaves or superannuates. These include the joining formalities, postings and
transfers, confirmation/absorption, promotion & seniority, forwarding of applications,
processing of resignations etc. for the executives of the entire and the non-executives of
Delhi based offices.
f) Policies & Rules:
This area includes various activities pertaining to formulation, implementation and
auditing, monitoring of various personnel policies like wages & salary, allowances &
reimbursements, Safety etc. Also covered under this area are the development,
implementation and issue of clarifications relating to service rules, conduct, discipline
and appeal rules, rules on entitlements, overtime & pay fixation rules, etc.

OPERATION AND MAINTENANCE DEPARTMENT

NTPC has consistent track record of high availability and plant load factor (PLF) across plants
based on diverse technologies. NTPC has emphasized predictive & preventive maintenance
systems to achieve this track record.
Services covered under Environmental Engineering and Management include the following:

Plant start-up including prescribing pre-operational checks.

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

Development of Operation and Maintenance Management Systems & computerization.

Supervision of Equipment Repairs and Unit Overhaul.

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

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

Performance Analysis and Optimization.

Condition Monitoring of critical equipment.

Fuel Management and Energy audit

Fig 3.4 STRUCTURE OF OPERATIONS & MAINTENANCE DEPARTMENT

HOD (O&M)

DGM (OPN)

DGM (EMG)

DGM (MTP)

AGM

AGM

AGM

Sr. MANAGER

Sr. MANAGER

Sr. MANAGER

MANAGER

MANAGER

MANAGER

Asst. MANAGER

Asst. MANAGER

Asst. MANAGER

ENGINEER

ENGINEER

ENGINEER

Primarily it is the operation and maintenance of the power projects which holds the key for being
successful as an Independent Power Producer. NTPC with its proven world class track record of
operating and maintaining the power stations and having provided this service successfully to
many domestic clients is now positioned to offer this service to International clients through its
International Cell. The O&M service has been tailored for international clients and consists of
the following modules and sub-modules. However, this can be further tailored to meet any
clients expectations
Maintenance Management
The term maintenance means to keep the equipment in operational condition or repair it to its
operational mode. Main objective of the maintenance is to have increased availability of
production systems, with increased safety and optimized cost. Maintenance management
involves managing the functions of maintenance. Maintaining equipment in the field has been a
challenging task since the beginning of industrial revolution. Since then, a significant of progress
has been made to maintain equipment effectively in the field. As the engineering equipment
becomes sophisticated and expensive to produce and maintain, maintenance management has to
face even more challenging situations to maintain effectively such equipments in industrial
environment.

Functions of Maintenance Department

Following are the major functions of maintenance department:

Maintenance of installed equipment and facilities

Installations of new equipment and facilities

Inspection and lubrication of existing equipment

Monitoring of faults and failures using appropriate techniques

Modifications of already installed equipment and facilities

Management of inventory

Supervision of manpower

Keeping records

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

To arrange the facilities required for the material management.

To dispatch the material to the production department.

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

Keep record of the material received, issued and balance.

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

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

Environment Management, Occupational Health and Safety Systems

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

SKILLS

NTPC subscribes to the belief that efficiency, effectiveness and success of the organisation
depends largely on the skills, abilities and commitment of the employees who constitute the most
important asset of the organisation.
TRAINING AND DEVELOPMENT
A systematic Training plan has been formulated for ensuring minimum seven man days (56
hours) training per employee per year and includes level-wise planned intervention designed to
groom people for assuming positions of higher responsibility, as well as specific need-based
interventions based on scientific Training Needs Analysis.
Continuing with their commitment towards developing itself into a learning organization and
aligning itself with its corporate vision, the company established a training institute called the
Power Management Institute (PMI). PMIs mission was to work towards wider adoption of
innovative and relevant management concepts in the power sector. The institutes activities
included conducting management development programs, as well as research and consultancy
continuous performance improvement. Besides several management development programs, the
company also conducted leadership development programs for its executive directors and
general managers.
The programs at the center were open to NTPC managers (middle and senior levels) as well as to
managers from state electricity boards and from multinational companies. They were open to
managers in the power sector as well as those not in the power sector, and even took managers
from other countries. The center also undertook training courses supported by foreign agencies
like USAID, Overseas Development Agency (ODA) UK, World Bank and E7 group21, and ones
supported by Indian institutions such as Administrative Staff College of India (ASCI) 22,
Hyderabad and IIM, Ahmedabad. Such has been success of this project that it has become a
premier training imparting institute and due to the high quality of PMI training, many companies
from countries like Korea, Tunisia, etc. came to India to attend the training programs. The PMI
campus had a well-equipped auditorium, classrooms and residential and recreational facilities for
trainees. NTPC wanted its employees to better themselves continuously. The company identified
the following areas as its focus for training:
o change management,
o quality management and
Apart from PMI, which focused on management development, the company also ran technical
training centers at all its 20 plants. They were called Employee Development Centers (EDCs).
NTPC has institutionalized "Development Centers" in the company to systematically diagnose
the current and potential competency requirements of the employees with the objective of
enhancing their development in a planned manner. Here the employees imparted specialized
technical training to employees based on systematic identification of their competencies and
training needs.
The company has two Simulation Training Institutes which enable employees to learn the
operations of a real power plant without any loss or damage to the company. The simulation
training also raised the level of proficiency and equipped employees to handle emergencies
effectively.
NTPC has a training budget which is more than Rs.5000 lakh and no wonder NTPC means
serious business when it comes to training and development of its employees. NTPC has >90%
utilization of its fund allotted to T&D.

Other methods used for skill enhancement

1)Career Advancement & Opportunities
NTPC have a well established talent management system in place, to ensure that we fulfill on our
promise of meaningful growth and relevant challenges for our employees. Our talent
management system comprises PERFORMANCE MANAGEMENT, CAREER PATHS and
LEADERSHIP DEVELOPMENT.
2)Innovate, Create, Compete
NTPC have introduced numerous initiatives which seek to enhance the creativity, innovation,
functional aptitude and teamwork of our employees. These initiatives include the National Open
Competition for Executive Talent (NOCET), Professional Circles, Quality Circles, Business
Minds and Medha Pratiyogita (a quiz for our employees). A management journal called
Horizon is published quarterly to enable the employees to share their ideas and experiences
across the Company.
3)Knowledge Management in NTPC
To meet our ultimate objective of becoming a learning organization, an integrated Knowledge
Management System has been developed, which facilitates tacit knowledge in the form of
learning and experiences of employees to be captured and recognizing for future reference.
MOU Signed By NTPC For Skill Development
1)NTPC to develop and enhance the technical skills of youth around it projects
NTPC Limited and National Power Training Institute (NPTI) signed a Memorandum of
Understanding for running of Solapur Power Training Institute being set up at Solapur,
Maharashtra. The Institute shall meet requirement of skilled workforce in the Industries and
power sector by developing and enhancing the technical skills of the local youth of areas in and
around the upcoming NTPC project at Solapur.NTPC has recently launched new Courses in 12
NTPC adopted and New Industrial Training Institutes (ITIs) at various locations in the vicinity of
NTPC power stations to help in meeting the skilled manpower requirement.
2)MoU signed between NTPC, NSDF & NSDC, Ministry of Skill Development &
Entrepreneurship, Govt. of India
NTPC Limited India's largest power utility entered into the MoU with Ministry of Skill
Development & Entrepreneurship (NSDF National Skill Development Fund) and National
Skill Development Corporation (NSDC) and allocated Rs. 6.50 Cr. from its CSR Fund for year
2015-16 and 2016-17 for various skill development programs. These skill development projects
will be pursued at 22 locations with special focus on the eastern states/ part of the country where
NTPC power plants are located. 5000 youths will be trained in various vocational skill sets.
Education Up-gradation Schemes
'When you upgrade your employees skills, you upgrade your company', NTPC actively
motivates its academically inclined employees to pursue higher studies which are in consonance
with the needs of the recognizing . NTPC has tie-ups with leading institutions like MDI,
Gurgaon; IIT Delhi; BITS Pilani, etc on this end. NTPC sponsors batches of employees who are
inducted into their courses based on their performance rating in the company and their
performance in the entrance exam conducted by the respective institutes. Unlike other study
leave and sabbaticals, employees undergoing these courses do not forego their salary or growth
during the during the course.

Staff
NTPC strongly believes in achieving organizational excellence through Human Resources and
follows "People First" approach to leverage the potential of its over 25,000 employees to fulfill
its business plans. At NTPC, it begins and ends with people. The company is deeply passionate
about ensuring the holistic development of all its employees as distinct individuals and good
citizens. We currently employ approximately 24,546 Employees at NTPC.Competence building,
Commitment building, Culture building and Systems building are the four pillars on which our
HR systems are based.NTPC is resolved to provide a framework of policies which will enable
the organisation to attract the right talent for the jobs and make it available at the right time and
in right number with the ultimate objective of ensuring optimum and effective utilisation of the
human resources in a climate of satisfaction, development and growth. NTPC has continuously
been part of the Best Workplaces List for the last eight years and has been consistently amongst
top performers.
Manpower Planning and Budgeting
In all Divisions and Projects of the Company, before the end of August every year, each
Department will review the adequacy or otherwise of the available manpower with reference to
the tasks and targets and determine the additional requirements of manpower in qualitative and
quantitative terms for the immediately following financial year.
Based on the requirements of additional manpower of the individual departments, the detailed
manpower plan for the financial year will be prepared jointly by the Planning and Personnel
Departments for the Division as a whole giving specific details of each new posts other than
casual posts and justification therefor and this manpower plan containing details of expenditure
involved will form a part of the overall Manpower Budget of the Division.
The requirements of casual and other contingent staff will not form a part of the Manpower
Budget as the same will be shown only in terms of estimate of expenditure to be incurred in
respect thereof as a part of the Works Budget.
Creation of Posts
1) Notwithstanding the Board's overall sanction for the creation of posts as above, specific
sanction for each new post from the competent authority will be necessary before initiation of
action for filling the posts and the competent authority will issue the necessary sanction
depending on the requirements from time to time during the year within the approved budget
sanction and manpower plans subject, however, to policies and directives that may be issued by
the Board of Directors and/or Chairman and Managing Directors, as the case may be.
2) For the purpose of according sanction to the creation of regular, trainee and temporary posts in
different categories within the approved budget provisions and approving appointments to such
posts, the following will be the competent authorities to be referred to hereinafter as the
Appointing Authority.
Recruitment Procedure:
NTPC recruited mainly at the entry level for the posts of around 400-500 Executive Trainees
every year.
The Steps in recruitment procedure:
The selection process involved three stages:

o Written test - Candidates are called for a written test to test the knowledge of their
subject. Candidates who scored the cut off marks in the selection test are called for a
Group Discussion.
o Group discussion Further short listing is done on the basis of group discussion.
o Interview - The interview panel consists of personnel from HR department and technical
manager. During the interview a candidates technical knowledge, communication skills,
presentation skills, flexibility and aspiration level are tested.
For lateral recruitment above entry level, interview is a mode of selection.
The Induction Program:
To induct talent and groom them into a dedicated cadre of power professionals "Executive
Trainee" Scheme was introduced in the year 1977 for recruitment in the disciplines of
Mechanical, Electrical, Civil, Control & Instrumentation and now encompasses Computer
Science, Chemistry, HR and Finance disciplines also. Besides a comprehensive one year training
comprising theoretical inputs as well as on-the-job training, the new recruits are also attached
with senior executives under a systematic and formal Mentoring System of the company to
integrate them into the Culture of the company. This way, companys specific skills can be (has
been) developed and nurtured among the employees. Today, more than 50 % of the executive
strength in the company is through this talent building mechanism. The Executive trainees are
the back bone of Engineering, Chemistry, HR, Finance, IT and Hydro functions of the company.
Job Title, job Specifications, Role Outline and Pay scales
1) Job specifications indicating the eligibility requirements in terms of minimum educational
and/or professional qualifications, length, nature of quality of experience, upper age limit etc.
and a general outline of the role and responsibilities will be laid down in respect of each job title
along with the pay scale or consolidated daily/monthly wage rate in which the posts in the
category will be operated.
2) To ensure uniformity and consistency, such job titles, job specifications and role outlines
together with the pay scale applicable in respect of all categories of posts will be issued by the
Corporate Centre from time to time with the approval of the Chairman and Managing Director.
3) No appointment shall be made to any post in the Company unless the person fulfills the
minimum eligibility requirements and conforms to the specifications prescribed for the post
except where general relaxations are made in the case of reserved vacancies for candidates
belonging to Scheduled Castes, Scheduled Tribes, other backward classes, Ex-servicemen and
other special categories.
Provided, however, that in special and exceptional cases appointments may be made subject to
the approval of the Appointing Authority in relaxation of the prescribed specifications where the
Appointing Authority is satisfied that such relaxation is essential in the interest of the Company.
Required Qualities Of Staff
NTPC takes adequate steps to recruit people on the basis of various factors to identify the right
candidate. The following are the main factors that are considered while recruiting new
employees.

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

Competency: NTPC give more importance to professional competence and academic

excellence.

Other qualities: Other qualities include analytical ability, teamwork, leadership

potential, communication and innovation skills, along with a practical and a structured
approach to problem solving.

System
Performance Management System
The performance management system has an intrinsic motivational significance that facilitates
learning and brings about role clarity which helps people focus on performance development. It
is a continuous process to understand the employees ability, competencies, relative merits and
worth of the organization. The present study explores performance management system (PMS)
of National Thermal Power Corporation Limited (NTPC), a leading public sector organization in
the power sector. It is descriptive in nature, and based on information obtained from secondary as
well as primary source. The study observed that NTPC believes in achieving organizational
excellence through human resource. The organizations system is based upon the four building
blocks i.e. competence building, commitment building, culture building, and systems building.
At NTPC, performance management system evaluates five components namely performance,
competencies, values, potential appraisal, performance and potential appraisal. The study
observed that the performance management system in the organization is capable to specifically
address the developmental needs in order to overcome competency gaps in the employees under
appraisal. The Performance Management System brings to focus important managerial attributes
and strikes a balance between Performance and other aspects of managerial talents/skills.
Executives will have a set of Key Performance Areas to be identified through discussion and
achieve them during the performance period. The system is to develop the competencies by
involving the executive in setting targets and identifying Key Performance Areas. The System
aims to bring the concept of ownership and accountability on both Appraisee and Appraiser to
create mutual trust and confidence. To utilize the Performance Management System for
facilitating individual career development and bring organization wide HR intervention at senior
levels to bridge competency gaps.
PERFORMANCE MEASURES OF NTPC:
Performance management system at NTPC comprises appraisal of 5 components:
1) PERFORMANCE: At NTPC, the performance is evaluated at two intervals i.e. first half year
performance appraisal, and second half performance appraisal.
2) COMPETENCES: There are 8 competencies assessed and rated at NTPC. These competencies
are technical Knowledge, Business Attitude, Strategic Thinking, Resources Management,
Communication Skills, Systematic Thinking, Interpersonal Competence, and Empowering Skills.
3) VALUES: Adoption of the Companys Core Values in the business dealings is one of the
essential duties of employees at all levels. Especially Senior Executives who occupy leadership
positions in the Company, have a major role in the actualisation of Core Values by being Role
Models in observing and practising them and thereby leading by example. Hence due emphasis
is laid on the Core Values demonstrated by the executive in his day-to-day business dealings and
15% weightage has been ascribed in the Performance Appraisal to the process of Value
actualisation exhibited by the executive.

4) POTENTIAL APPRAISAL: Potential is a component related to Competencies. It seeks to

achieve one of the major objectives of the Performance Appraisal System, namely evaluating the
suitability of the executive to assume higher responsibilities along the hierarchy.
5) PERFORMANCE AND POTENTIAL PROFILE: The Part V would sum up all marks scored
for the Performance Appraisal year. The marks scored for Part I, Part II, Part III and Part IV is
transferred to this section and entered against respective item. The aggregate of the marks scored
is arrived at by adding all marks scored for different components. This would form the Final
score of Performance & Potential Appraisal rating of the executive out of 100 marks.

Environmental Management System

At NTPC, all our activities and operations are guided by sound environmental practices, second
to none. Right from its inception, the company has a well defined environment policy. It is
committed to protecting the fragile ecology as well as ensuring a sustainable growth of power. It
is passionate about ensuring a clean environment for all of us and future generations.
The Union Ministry of Environment & Forests and the Ministry of Power and NTPC were
involved in preparing the draft Environment Policy which was later approved by the Union
Cabinet in May 2006.
NTPC Environment Policy
Going Higher on Generation, lowering Green House Gas Intensity is their vision statement on
managing our environment. Since the genesis of the company, NTPC has led from the front on
this issue. he policy envisages new technology initiatives and efficient utilisation of resources,
thereby minimising waste, maximising ash utilisation and ensuring a green belt all around the
plant for maintaining ecological balance. We do not rest on our laurels and our work in this
crucial and challenging issue is an ongoing one where we are constantly striving to reduce our
impact further. We aim to be a global leader in environmental standards and practices.
Environment Management, Occupational Health and Safety Systems
NTPC has actively gone for adoption of the best international practices on environment,
occupational health and safety areas. Providing its employees with a safe working area is the
primary concern of the management. NTPC recognises and accepts responsibility for
establishing and maintaining safe & healthy working areas for all concerned.
The organisation has pursued the Environmental Management System (EMS) ISO 14001 and the
Occupational Health and Safety Assessment System OHSAS 18001 at its different
establishments. As a result of pursuing these practices, all NTPC power stations have been
certified for ISO 14001 & OHSAS 18001 by reputed national and international certifying
agencies.
Pollution Control Systems
Right from the planning stage, all plants have provisions for pollution control incorporated into
their blueprints. In order to ensure that NTPC complies with all the stipulated environment
norms, following state-of-the-art pollution control systems / devices have been installed to
control air and water pollution:
Electrostatic Precipitators
Flue Gas Stacks
Low-NOX Burners
Ash Dykes & Ash Disposal Systems
Liquid Waste Treatment Plants & Management System
Sewage Treatment Plants & Facilities
Environmental Institutional Set-up
Following are the additional measures taken by NTPC in the area of Environment
Management:
Environment Management During Operation Phase
Monitoring of Environmental Parameters

On-Line Data Base Management

Up-gradation & Retrofitting of Pollution Control Systems
Resources Conservation
Waste Management
Green Belts, Afforestation & Energy Plantations
VIGILANCE SYSTEM
Vigilance Mechanism:
NTPC ensures transparency, objectivity and quality of decision making in its operations, and to
monitor the same, the company has a vigilance Department headed by chief vigilance officer, a
nominee of central vigilance commission. The four units of vigilance Department namely
corporate vigilance cell ,Departmental proceeding cell(DPC),MIS Cell and Technical cell (TC)
deal with various facets of vigilance mechanism. Surprise checks were conducted in various
departments and recovery was made against discrepancies.
Implementation of integrity pact
NTPC is committed to have total transparency to its business processes and as a step in this
direction; it signed a memorandum of understanding with transparency international index in
December, 2008. The integrity pact is being implemented for all contracts having value
exceeding 10 crore. Three independent external monitors have been nominated by the central
vigilance commission for all contracts with value exceeding 100 crore. New format of integrity
pact as per the companys requirement and the suggestion given by IEMs were implemented.
Implementation of various policies/circulars
Complaint handling policy, Fraud Prevention Policy and Whistle Blower policy have been
implemented in the company to build and strengthen a culture of transparency. A uniform policy
for banning of business dealings with the contractors has been formulated and implemented.
Vigilance Awareness Week and Workshops
During 2014-15, 41 preventive vigilance workshops were conducted at various projects in which
1230 employees participated.

RISK, CONCERNS AND THEIR MANAGEMENT SYSTEM

Youe company has an elaborate enterprise risk management framework in place. A fuctional
level director committee called Risk Managemnt Committee (RMC) has been constituted in
compliance with the companies act, 2013 and cluse-49 of the listing agreement. The RMC is
responsible to identify and review the risks and to formulate action plans and strategies to
mitigate risks on short term as well as long term basis.
The RMC has identified 26 key risks and out of which following have been classified as the top
risks for the company:
Inadequate fuel supply
Difficulties in acquisition of land
Delay in execution of projects
Risks related to coal minings
Risks pertaining to hydro projects
Compliance of emission, ash utilization and regulatory norms
Sustaining efficient plant operations
Risks of not getting schedule
These areas are regularly monitored through reporting of key performance indicators of the
identified risks. Exceptions with respect to risk assessment criteria are reported regularly to the
board of directors. During the financial year 2014-15, Committee meetings have been held for all
the quarters to deliberate on strategies.
Internal Control

To ensure regulatory and statutory compliance as well to provide highest level of corporate
governance, NTPC has robust internal systems and processes in place for smooth and efficient
conduct of business and complies with relevant laws and regulations.
A comprehensive delegation of power exists for smooth decisions making which is being further
reviewed to align it with changing business environment and for speedier decision making.
Elaborate guidelines for preparation of accounts are followed consistently for uniform
compliance. In order to ensure that all checks and balances are in place and all internal control
systems are in order, regular and exhaustive internal audits are conducted by the experienced
firms of chartered accountants in close co-ordination with the companys own Internal Audit
Department. Beside the company has two committees of the board viz. Audit Committee and
Committee on management controls to keep a close watch on compliance with Internal Control
Systems.
STYLE
All organization has their own distinct culture and management style. It includes the dominant
values, beliefs and norms which develop over time and become relatively enduring features of
the organizational life. It also entails the way managers interact with the employees and the way
they spend their time. Culture style of the organization shows how key managers behave in
achieving the organizations goals. The style of the organization is through leadership in which
leaders can establish unity of purpose and direction of the organization. They create and maintain
the internal environment in which people are fully involved in achieving the organization goals.
PEOPLE FIRST
NTPC believes in achieving organizational excellence through Human Resources and follows
"People First" approach to leverage the potential of its 24,500 employees to fulfill its business
plans. 'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut
of HR policies at NTPC. NTPC are strongly committed to the development and growth of all our
employees as individuals and not just as employees.
Scholarship for meritorious students of employees.
Canteen facilities at subsidized rates.
Workmen compensation for all employment injury.
Settlement of accounts terminal benefits of death causes.
Recreation- fine arts, clubs, sports clubs for employees.
Education facilities to employees children.
Community development immunization on family planning, tailoring classes, polio and
others.
Arranging talks on diseases like AIDS, Cancer, and Diabetes etc.
Arranging for periodical health checkups.
Labour welfare fund loans and advances to employees.
Reference courses for education of employees.
Consumer co-operative society for benefit of employees.
Medical facilities and hospitals with in and outpatient facilities.
Transportation facilities.
Quality of Work-Life
NTPC is committed to provide the best available work life for its employees. In addition to
ensuring safe and aesthetically pleasing work places, NTPC actively encourages a culture of
mutual respect and trust amongst peers, superiors and subordinates. Far removed from the buzz
of cities, our townships are the epitome of serenity, natural beauty and close community living. A
range of welfare and recreation facilities including schools, hospitals and social clubs are
provided at the townships to enhance the quality of life & the well being of employees and their

families. An entire gamut of benefits, from child care leave to post retirement medical benefits
are extended to employees to meet any exigency that may arise in a persons life.
Rewards & Recognitions
We recognise the role played by rewards & recognitions in motivating our colleagues. To this
end, we have created a culture of rewards and appreciation through celebration of various
achievements and recognizing the contributions behind such success.

Quality Assurance
NTPC has invested hugely in quality with the view to secure long term plant reliability.
Investment in terms of committing adequate number of qualified and trained human resources
for quality related activities laboratories at the construction sites and more importantly, robust
processes providing for direction methods and standards of performance, for the various tasks
associated with quality. Quality in NTPC has a much deeper meaning ,identification of needs,
planning for realization of the needs jointly with the stake holders including the various suppliers
and verification whether the needs have been built into the product/service during manufacturing
and erection and commissioning .The quality loop is further extended to capture whether the
originally indented plant reliability and operation standards have been realized or not Gaps ,if
any, are filled through continuous improvements. NTPCs performance indicators exceptional by
any standards ,bears testimony to the soundness of the quality system deployed. NTPC is
represented on various technical committees of ISO and IEC and is actively contributing in
formulation and updating of power sector technical and technical and quality
standards/guidelines.

Analysis of the project

After studying the Mckinseys 7-s Framework we analyze that the company has
various strengths and weakness in their framework.
The strengths of the company are:

NTPC is the leading power generation company in India, so it has the advantage of its
settled infrastructure and huge economy to expand their network.
Highly skilled and experienced human resources exposed to the state of the art
technologies in project execution and power generation.
Democratic style of leadership with centralization of authority and responsibility to the
divisions so that employees have been empowered to do their work independently
without pressures from their higher authority so it has good structure.
It has its own vigilance system which ensures the transparency, objectivity and quality of
decision making in its operation.
Company gives good salary and incentives to their employees and make good quality
working environment for the employees to work and give rewards to the employees for
their good performance which encourage the employees to work hard.
Huge investment on training and skill development programs so thats why it has highly
skilled workforce
Performance management system of NTPC clearly establishes an understanding about
what is to be achieved and developing the people to ensure that how it is to be achieved.
The weaknesses of the company are:-

Due to the 70% government holding, they have to follow government policies and also
have to provide the electricity at subsidiary rates to the government agencies.
Company is using older methods of power trading which do not reach all the consumers
properly whereas their competitors like tata power and NHPC are using e-bidding method
for power trading which is the most effective method in modern age.
In comparison with their competitors the company is using old technologies and having
joint ventures with Indian companies which do not have much experience in new
technologies.
NTPC in their strategy emphasizing coal based thermal power plants which is depleting
very fast and not environmental friendly so in near future they may suffer from coal
shortage and also from environmental problems.
As the government is the part of the structure of the company so there is time lag in
decision making and sometimes have to suffer from political pressures.
Due to the government intervention, sometimes NTPC does not get the right person
according to their need for job. For Ex. Gate test is conducted by the government for the
assistant engineer which is common for all the PSUs.Earlier the test is conducted by the
NTPC itself so the required skill person is chosen by them but now it is not possible.
As the mission of the company is to use innovative and eco-friendly technology but still
the company is stick to the coal based technology which is non renewable and not ecofriendly.
NTPC is unable to complete its project within decided time in its plan so they are lagging
in the power generation market.
As the capacity of power generation of NTPCs competitors is increasing at a faster rate
but NTPC is unable to cope up with the speed of their competitors. As a result the plant
load factor of NTPC is decreasing whereas of TATA POWER it is increasing which
shows that if they do not change their strategy they will lag in the power generation
market.
In some cases it is seen that NTPC is unable to provide proper resettlement and
rehabilitation to the affected people such as in NTPC singrauli people was left unsettled
withour compensation.

Recommendations

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

The government interventions must be reduced and the control from government must be
transferred to its managers and its shareholders so that NTPC could grow more without
any disruptions and it also lead to good structure.
NTPC must be given the full authority for the recruitment and selection procedure so that
they could select their staff with the required talent and skill.
Company must use the upgraded platform for the power trading so that they can link to
more consumers in order to increase their PLF and their income.The platform like EBidding is the best method for power trading.
NTPC is investing more on its coal based plants. Some of its project for coal based plant
are ash utilization, coal mining, new coal based plants. Instead of investing on these
plants they must expend more and more on renewable sources of energy such as
solar,wind etc. as they are replenish able in nature and does not come to end and also
environmental friendly.NTPC should think over its strategy again and should think over
the addition of more capacity of renewable energy resources plant.
By using new technologies and doing JVs with foreign companies they can increase their
project speed and it also help them in increasing their capacity addition process so that
they can hold its top position in the power generation market.
NTPC must try to expand its services to all over the India especially to the remote areas
where there is still no electricity and must reach the bottom of pyramid market.In India ,
there is still 28 crore people who do not have power in their homes.So these people must
be the target of the NTPC as a consumers to sell their power at less profit because this
market has the potential to open a gateway of great profit and also a life changing move
for the consumers.
NTPC must create a proper policy for the resettlement and rehabilitation of affected
people and must provide proper compensation for the affect on their life.