National Thermal Power Corporation Limited: “BE COMMITTED”

Company Overview

NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. It is

emerging as an ‘Integrated Power Major’, with a significant presence in the entire value chain of

power generation business. NTPC ranked 424th in the ‘2014, Forbes Global 2000’ ranking of the

World’s biggest companies. With a current generating capacity of 43,128 MW (exhibit 1), NTPC plans to

become a 128,000 MW company by 2032.

The total installed capacity of the company is 43,128 MW (including JVs) with 17 coal based and 7 gas

based stations, 7 joint ventures stations are coal based and 7 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(RES) including hydro. By 2032, non fossil fuel based generation capacity shall make up

nearly 28% of NTPC’s portfolio. 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.

In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and

5.25% as offer for sale by Government of India. NTPC thus became a listed company in November 2004

with the Government holding 89.5% of the equity share capital. In February 2010, the Shareholding of

Government of India was reduced from 89.5% to 84.5% through Further Public Offer. Government of

India has further divested 9.5% shares through OFS route in February 2013. With this, GOI's holding in

NTPC has reduced from 84.5% to 75%. The rest is held by Institutional Investors and Public.

Business portfolio:

1. Generation of Electric Power.

2. Coal Mining and Coal Washier.

3. Oil/ Gas Exploration.

4. Power Project Construction.

5. Renovation & Modernization of Power Stations.

6. Distribution and Trading of Electricity through its wholly-owned subsidiary companies.

Vision:

To be the world’s largest and best power producer, powering India’s growth.

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.

The leader behind success:

Dr. Arup Roy Choudhury, Chairman & Managing Director, NTPC Limited and Chairman, DVC has been

conferred Doctorate in 'Performance Assessment of Infrastructure Development Projects' – a select

study from IIT Delhi on 18.04.2013.

Serving NTPC Limited since September 01, 2010 , has an illustrious career spanning over 34

years of outstanding contribution in the fields of engineering, general management, strategic

management and business leadership. He is a Graduate in Civil Engineering from Birla Institute

of Technology, Mesra and a Post-Graduate in Management and Systems from IIT-Delhi. A keen

learner of the latest professional developments, he has been conferred Doctorate in

"Performance Assessment of Infrastructure Development Projects" from IIT-Delhi in April, 2013.

Dr. Choudhury brings to NTPC the dynamism of a leader with proven abilities to achieve

transformational changes. He has the distinction of becoming the youngest Chief Executive

Officer of a Central Public Sector Enterprise (CPSE) at the age of 44 years when he joined as

Chairman & Managing Director, National Buildings Construction Corporation Limited (NBCC) on

April 03, 2001. Prior to that he had worked in prominent public and private sector companies

since 1979, when he started his career. Dr. Choudhury's rich and varied contribution of over 32

years has been recognized by prestigious professional, academic and Government institutions,

both national and international.

His vision, leadership and industriousness transformed NBCC, which was a sick company with

negative net-worth and salary back-log in 2001, into a blue-chip enterprise having Schedule 'A'

and 'Miniratna' status bestowed upon it by the Government of India. The stunning turnaround

of the Company brought about by him has enabled NBCC's turnover grow about 10 times and

net-worth over 500 times during his tenure of nine-and-a-half years at the helm. He pulled

NBCC out of the abyss and catapulted it into the distinguished league of 'Top Ten CPSEs'. Under

him, NBCC broadened its business horizons. Its entry into power project development dovetails

very productively with his new role as CMD, NTPC.

As Chairman, Standing Conference of Public Enterprises (SCOPE), the apex body of central

public sector enterprises (CPSEs), Dr. Choudhury effectively led policy advocacy for greater

empowerment of these enterprises. He is also promoting the cause of greater professionalism,

competitiveness, societal commitment, transparency and global-benchmarking among the

CPSEs.

Dr. Choudhury believes in growth and excellence through proactive approach and his dictum is

"Sankalp Shuddha Hi Siddha" i.e. if your intentions are pure, you are bound to succeed. He has

a strong commitment for the well-being of the society at large. His sharp focus on corporate

governance and environmentally sustainable growth has been demonstrated in concrete

actions and substantial benefits.

Human resource management at NTPC

'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies

at NTPC. The brand NTPC Limited holds in it the promise of high performance, growth and challenge. For

a new recruit joining the company, the company promises a challenging career with an opportunity to

be a partner in nation's growth. They are strongly committed to the development and growth of all

employees as individuals and not just as employees. They currently employ approximately 26,000

people at NTPC. Organization structure of any particular NTPC plant is very diversified but shows well

planned distribution of work and power (Exhibit 2) and (Exhibit3).

Competence building, Commitment building, Culture building and Systems building are the four

building blocks on which their HR systems are based.

HR Vision: To enable our people to be a family of committed world class professionals.

The MBA program initiative came from one of the System Review Groups within NTPC. This

group helps NTPC to monitor and improve their HR strategies and also to make HR policies.

Their main functions are as following:

• These groups have been created to review the HR systems and processes and suggest

changes for improvement.

• They make presentations before HR group heads and once the idea is approved, it

becomes a policy.

Core values: BE COMMITTED

• B-Business Ethics

• E-Environmentally & Economically Sustainable

• C-Customer Focus

• O-Organisational & Professional Pride

• M-Mutual Respect & Trust

• M-Motivating Self & others

• I-Innovation & Speed

• T-Total Quality for Excellence

• T-Transparent & Respected Organisation

• E-Enterprising

• D-Devoted

To actualize the core values and ensure that they remain relevant, NTPC have taken various

steps:

• Creating a weightage for values in Performance Management Systems;

• Conduct training programs on values and including sessions on values in key programs;

• Rewarding value based behavior and creation of “Value Actualization Task force”.

• A Vision & Values Revisit Workshop by top management is a major component of core

value actualization.

Employee Development (ED)

This department takes the HR initiatives of promotion, appraisals and other development aspects. ED

maintains the Management Information System for the organization. ED is introduced with a view to

provide opportunities and extend facilities to the willing employees for self learning and acquiring

school level academic qualifications to enhance their level of awareness, knowledge, communication

skills, and competence, and also to facilitate career development. It is applicable to all employees in the

workmen category who are desirous of obtaining school level qualifications for their self development.

The company will provide opportunities and facilities to employees to obtain following school-level

qualifications:

Qualification equivalent to Matric

Qualification equivalent to Class VIII

Mentoring system was launched in NTPC with a view to guide and direct the new entrants during their

vital and formative years in the organisation. Mentoring is a reciprocal and collaborative learing

relationship between two individuals who share mutual responsibility and accountability for helping a

mentee work towards achievement of clear and mutually defined learning goals and assimilate and

adapt to the organization culture. The mentors are experienced executives in the organization who act

as friend, philosopher and guide and integrate the new joinees with the systems and values of the

organization and also counsel the young executives on a regular basis.

Objectives of mentoring system in ntpc:

1. To remove apprehensions and difficulties faced by a newly joined executive in the

organization.

2. To enable the newly joined executives to assimilate and adapt to the culture and

environment of the organization.

3. To provide mentor-mentee the opportunity to develop a mentoring relationship that

will further strengthen and inspire personal and professional success.

4. To provide useful guidance to mentees to enable them to carve out a career path for

themselves.

5. To enhance self confidence in them and make them feel proud of NTPC.

Talent management at NTPC

Recruitment

NTPC believes in the philosophy ‘Grow your own timber’. They hire afresh from campuses and groom

individuals into all round Power Professionals. NTPC's ‘Executive Trainee’ Scheme was introduced in the

year 1977 with the objective to raise a cadre of home grown professionals. First Division Graduate

Engineers/Post Graduates are hired through nation wide open competitive examination and campus

recruitments. Hiring is followed by 52 weeks induction training (fully paid) consisting of theoretical

input, on job training, personality development & management modules.

Theater Workshop - The orientation module for ETs include such unique practices like Theatre

Workshops in order to enhance their communication skills-verbal and non verbal, team work,

body language, expressions etc. conducted with the help of professional institutions like

National School of Drama.

Yoga-For the holistic development of the trainees, caring for their physical health and mental

alertness is as important as hard skills training. Yoga and meditation are part of our orientation-

training programme for Executive Trainees. Yoga sessions are scheduled every morning during

the training period.

Corporate Social Responsibility- In order to make new hires a part of our social responsibility

drive, exposure to on-field community development and responsibilities towards Project

Affected Persons is given. A special module on corporate social responsibility is a part of

orientation training which covers all the important aspects of corporate social responsibility like

environment, safety, health hazards, environmental impact, ash utilisation etc.

Mentoring "Ankur"- For effective socialisation and transformation from training mode to

executive capacity of taking responsibility, executive trainees are attached to mentors once they

are put on job. Mentors are senior executives with 10-15 years of experience in NTPC who act as

a friend, philosopher and guide to the budding power professions.

Sports - To keep the trainees physically active and agile, emphasis is laid on sports activities.

Sports infrastructure has been provided at each NTPC location and inter/intra unit matches are

organised from time to time.

Career Advancement Opportunities

NTPC has well established talent management systems in place to ensure that the company delivers on

its promise of providing exponential growth and challenge to all employees.

Performance Management- NTPC has a standardised and formalised performance management

system. A KPA based system is designed to assess functional, managerial and potential

competence in an objective and transparent manner. The system is designed to accomplish the

overall organisational vision and mission by linking individual performance to the company’s

objectives and strike a balance between performance and competence to help individuals excel

in their fields.

Career Paths - A formal career path and development process exists in NTPC. All career paths

have an underlying management structure. Promotions within each career path are aligned with

the needs of the organisation. Succession criteria for leadership positions in each career path

have been identified, which provide basis for job rotation. Anyone joining the organisation can

choose to pursue a business, function or staff career path and will be put through specific

training interventions and job rotation path towards becoming a business, function or staff

head.

Leadership Development - Potential employees are assessed for leadership competence and are

groomed to occupy leadership positions in the company. We have a system that enables

measurement of leadership effectiveness, gap identification against an identified set of

leadership competence. Individual development plans are made based on the gaps identified to

ensure that the process of development and growth is meaningful.

Innovate, Create, Compete

We have introduced numerous initiatives which seek to enhance the creativity, innovation, functional

aptitude and teamwork of our employees. These initiatives are:

NTPC Open Competition for Executive Talent (NOCET)-National Open Competition for Executive

Talent (NOCET) is a 3 tier theme based team event held to solicit ideas on latest issues facing the

organisation. A ‘Theme’ for the competition is decided by CMD of NTPC. A topic that is relevant

to NTPC scenario is chosen. 3-4 member teams are formulated that compete at unit, regional

and corporate levels. A panel of judges comprising of top notch NTPC executives and external

experts judge the teams on their concept and presentation.

Professional Circles - As a learning organisation, NTPC encourages formation of Professional

circles for knowledge dissemination; knowledge updating etc. professional circles are interest

groups where employees sharing same interest areas get together to share knowledge and

latest developments in the field. In order to encourage and recognise professional circles, NTPC

has institutionalised a three-tier competition amongst the professional circles culminating at the

company level. Currently, about 300 professional circles are active in the company.

Quality Circles- Quality circles were introduced as an initiative to involve every grass root level

employee. Under this initiative, employees volunteer to take up improvement projects in their

work areas. Annual contests are organised at project level, regional level and company level in

which QCs from all over NTPC compete with each other. The winning team also gets a chance to

participate at National and International level QC Convention. NTPC has been winning the

National Quality Circles Convention for last 4 consecutive years and has participated in

International Quality Control Conventions at Bangkok(2004), South Korea (2005), Indonesia

(2006) and China (2007)

Business Minds- Another initiative which is very popular among NTPC employees, is called the

Business Minds. This is a management game that develops strategic thinking & decision making

in executives by exposing participants to simulated real life business situations that help them

discover new skills. It is conducted in association with AIMA. Cross-functional teams participate

in the game as it is multi – disciplinary in nature reflecting real life multifunctional role of

business. Qualifying teams compete at the national level. In 2008, The winning team from NTPC

Ramagundam also won the national management games competition conducted by AIMA and

qualified to compete at the Asia level.

Medha Pratiyogita- We have been conducting a quiz competition very successfully. Medha

Pratiyogita is conducted for the children of NTPC employees. It features renowned Quizmaster

Derek O’Brien and his team. The quiz is conducted at the Project, Regional and Corporate levels.

Knowledge Management in NTPC- In initiative to meet our ultimate objective of becoming a

Learning Organisation, an integrated Knowledge Management has been developed. This system

allows tacit knowledge in form of learning and experiences of employees to be captured and

summarised for future reference. It provides adequate communication and a formal process for

classification, codification, and sharing of knowledge through which employee can contribute,

learn, share and generate solutions.

Training infrastructure

Power Management Institute– It is the apex training institute of NTPC located in NOIDA, close

to the company headquarters and houses a world class training infrastructure.

• The Institute has full time dedicated faculty.

• Employee Development Centres- Employee Development Centres (EDCs) are located at

all NTPC projects and stations and take care of training needs of employees at the unit.

Simulator Centers - NTPC is the proud owner of two simulator training centers, for both coal

based and gas based plants.

• These simulator centers are meant to give hands on experience of operating a power

plant to engineers in total safety.

Compensation system

NTPC Known as the highest payer in Power sector. The compensation structure is designed in

such a way so as to recognize and reward critical skills and competencies in employees. The

remunerations of employees are fixed through negotiations with Employee’s Union subject to

the overall guidelines of Department of Public Enterprises, Government of India. Compensation

structure includes base pay, fixed bonuses, allowances or other payments relevant to the local

market.

In addition, accommodation in Company quarter on nominal rent, other perks & allowances

upto 47% of Basic Pay (Exhibit4). Medical Treatment/ reimbursement, Subsidized Canteen

facilities, Self Contributory Superannuation Benefit Fund, Provident Fund, Productivity Incentive

admissible as per Company's Rules. NTPC offers employees various discounts for goods and

services – NTPC Personal computer purchase, housing assistance purchase plan, car purchase

plan, child care services and mobile phone plans, fitness centers and educational courses.

Rewards and benefits

NTPC believes that everyone who works should feel valued and appreciated. That is why the company

offers a total compensation package that includes both cash compensation and benefits.

Employee benefits –

o Health care (PPO, POS, HMO, HAS)

o Dental care plans

o Retirement plans

o Flexible benefit plans

o Disability benefit plans

o Group life & AD insurance plans

o Benefits for part-time employees

Employee policy & programs –

o Paid – time off (PTO)

o Alternative work schedule

o Recruitment and hiring

o Hiring bonuses

o Referral bonuses

o Retention bonuses

o Severance practices

o Workplace environment

o Career planning & professional development

Cash compensation

To ensure that NTPC attracts, retains and motivate high-performing individuals. The compensation

structure is designed in such a way so as to recognize and reward critical skills and competencies in

employees. Compensation structure includes base pay, fixed bonuses, allowances or other

payments relevant to the local market. Performance bonus and sales incentive may also be

included in the cash compensation, and are used to ensure that the employees are paid

competitively in the market.

Performance bonus

High performing employees are paid performance bonus through schemes like ‘generation

performance scheme’ to reward the employees for good performance. This helps in boosting the

moral of employees and recognizes their effort.

Employee stock purchase plan

Since 1988, NTPC has offered stock purchase plans because the company believes in the value of

employee ownership. All regular employees, including workers who are regular part-timers, are

eligible to participate in the plan if they choose.

Healthcare, well-being and personal benefits

NTPC offers a range of personal benefits such as medical schemes, dental schemes, health

screening, wellness programs, retirement and insurance programs. The dependents of the

employeeare also under the purview of this benefit.

Flexibility and work-life balance

NTPC is committed to create a workplace culture and environment in which the employee can

balance the career aspirations and personal priorities. The company offers a number of programs,

ranging from staggering work hours to work from home to part time regular work which gives them

the opportunity to achieve a better work/life balance.

Additional programs

NTPC offers employees various discounts for goods and services – NTPC Personal computer

purchase, housing assistance purchase plan, car purchase plan, child care services and mobile

phone plans, fitness centers and educational courses.

Industrial Relation (IR)

Trade unions, discipline, social, economic, and political environment, group dynamistic; some of

these elements are traditional and other original. The traditional element ought to be particularly

watched in every planning process, there is a temptation of adopting the easier relation between

action and response. Any poor job of planning will be reflected immediately but will surely have

an effect on long term basis. When these defects are discovered it would have been too late to

make correction, even if corrections are made, at alter stage they will be sluggish, invoke

considerable resistance and reaction and will at best be only sub-optimal.

Where several new technique of manpower planning have been developed in recent years. The

process of manpower assessment and managing largely continues to be empirical, training, etc.;

all these make manpower planning all the more critical necessary and important.

Rajbhasha Group

As it is compulsory for all Government organization to keep a Hindi so is in NTPC also for the

same reason NTPC has Rajbhasha Group. This Group does the Hindi translation; conduct

debates and other Hindi promotional activities

HR Policies

Promotional Policies

NTPC as a company subscribes to the philosophy of generating growth from within, and in pursuance

thereof, endeavours to achieve synchronisation of the organization with the aspiration for growth and

development of the individual employees. NTPC hereby declares that it will be the Company’s general

policy to look within the organization for suitable persons with the requisite skills and expertise.

o Promotional Policies for supervisors

The objective of the Company’s Promotion Policy for employees in the supervisory categories is to

provide, keeping in view the organization requirement, adequate growth opportunity consistent

with merit and suitability.

o Promotional Policies for executives

To motivate and enthuse executives and managers for better and more effective performance by

rewarding them with promotion to positions of higher responsibility commensurate with their merit

and ability and contribution towards the achievement of the organisational goals and objectives.

o Promotional Policies for workmen

The objective of the Company’s Promotion Policy for employees in the Workman categories is to

provide keeping in view the organizational requirement, adequate growth opportunity consistent

with merit and suitability.

Employee Benefit Group (EB)

The Employee Benefits Groups take care of the welfare and benefits like recruitment, separation loans

and advances, which the employees are eligible. The Voluntary Retirement Scheme is also dealt by EBG.

Leave Travel concession (LTC)

A scheme of reimbursement of expenditure on local travel for official purposes is introduced with a view

to encourage executives of the Company to own and maintain their own vehicle and to use such vehicle

for journey undertaken for official purposes, thereby reducing demand for use of Company’s vehicle.

The scheme will cover all employees in executive pay scales of the company. This will also cover such

deputationists who have been taken against the posts in the pay scales of E1 and above.

Laptop for official purposes

The scheme of providing laptops to executives has been introduced to facilitate faster retrieval and

transfer of data alongwith access to latest information all the time. This facility is in lieu of existing

desktop PCs currently provided to executives in office.

Family accommodation at a location other than the place of posting

To enhance commitment of employees towards work and to ensure work life balance, the Scheme of

Grant of Family Accommodation at a location other than place of posting has been formulated.

Corporate Social Responsibility: “Valuing The Partnerships”

"We value the partnerships we build with the communities around our units. For us Corporate Social

Responsibility is Corporate Social Relationship"

-Arup Roy Choudhury, CMD, NTPC Ltd. (Exhibit 5,6,7)

Initiatives

Education:

o Setting up polytechnic at Kaladungi, Dist. Nainital, Uttarakhand.

o Subsidized education to children of about 20 schools run by NTPC predominantly

for community children, benefitting about 20,000 students of neighbourhood

areas.

o Identified Value Education Initiative for students of schools, affiliated with

Central Board of Secondary Education, teachers & parents.

o Supporting various activities under the banner “Awakening India”. Merit

scholarships to more than 2600 students every year.

Health and sanitation:

o Support to Impact India Foundation for “Lifeline Express Project" (camp) at

Dalmau Railway station in Distt. Raebareli, U.P for providing curative

interventions for disabled poor by general treatment & various surgical

operations.

o Support to District Hospital, Aurangabad, Bihar for procurement of medical

equipments for modular ICU.

o Support to N. Swain Memorial Trust - Aakar Asha, Hyderabad, for purchase of

equipments for Operation Theatre.

o Support committed for development of New Block at King George Hospital,

Visakhapatnam.

o Support for three specialized Eye Centres at Bhubneswar Eye Hospital, Odisha.

Capacity Building & Women Empowerment:

o Adoption of ITIs and setting-up new ITIs.

o 36 Weeks Training Program for 41 Jammu & Kashmir Youth in Thermal Power

Plant Engineering under Special Industry initiative – Udaan.

o Skill up gradation training in backward districts identified under BRGF of Planning

commission for improving employability benefitting 1388 village youth/ women.

o Assistance committed to part- finance Chanderi Development Society for

Handloom Weavers for construction of Weavers Blocks of Common Facility

Centre (CFC) in Handloom Park at Chanderi, District, Ashok Nagar, and MP.

o Construction of double storey building in women’s Polytechnic, Kayamkulam, Kerala.

Development of Social Infrastructure

o Installation of more than 500 Solar Lights in UP (Raebareli,Sidharthnagar, Santravidas

Nagar and Barabanki districts), Jharkhand (Godda district) and West Bengal

(Behrampore district) to promote use of conventional energy.

o Installation of about 50 High Mast Lights (HMLs) in Bihar ( Kahalgaon), Jharkhand

(Goodda), Kerala (Alappuzha, near Kayamkulam), West Bengal (Berhampore, near

Farakka) and Tripura (Udaipur).

o 5 Km road from NH–200 to State Highway-63 in Angul & Talcher subdivision.

o Area lighting around Shri Jagannath Temple, Puri.

o Comprehensive village development including Drinking Water, Sanitation, Education and

Health Infrastructure in six villages, 3 villages each in Bhagalpur and Godda District.

o Laying of cement concrete road in various villages in district Chhindwara, MP.

o Construction of culvert over Pikia Nala at Pakaaria Ghat, Sant Kabir Nagar, UP.

o Support for construction of Community Parivarthana Bhavans in the select mandals for

catering to the needs of SC/ST persons of Prakasam & Guntur Districts of AP.

o Conservation of selected National Monuments in association with Archaeological Survey

of India.

And many more……

To know more about NTPC, visit their website: www.ntpc.co.in

Exhibit 1. Growth of NTPC

Exhibit 2. Organization Structure.

Exhibit 3.

HR department structure NTPC.

HRMEB

ED

IE

ER

Rajbhasha

PR

Law

CSR

ES

Exhibit 4. The Base Pay plan at NTPC

Base Pay plan for executives:

Base Pay plan for supervisors:

Base Pay for workmen:

Exhibit 5. CSR practice at NTPC

Exhibit 6. CSR structure of NTPC.

Exhibit 7. CSR expenditure.