Description
This is to certify that the project work titled “STUDY OF RETIREMENT BENEFITS OF NTPC LTD” is a bona fide work of BED PRAKASH DHIRHEY; University Roll No- 10208380066 is carried out in partial fulfillment for the award of M.B.A. From MODERN INSTITUTE OF MANAGEMENT & TECHNOLOGY, KORBA (CHHATTISGARH) Study Centre Code-838 affiliated to PANJAB TECHNICAL UNIVERSITY, JALANDHAR under my guidance.
This project has not been submitted earlier for the award of any degree/diploma of any other Institution/University
A Project Report On
STUDY OF RETIREMENT BENEFITS OF NTPC LTD KORBA
Submitted in partial fulfillment of requirements for the degree of
MASTERS OF BUSINESS ADMINISTRATION (2011-2012)
Affiliated to Punjab Technical University, Jalandhar
Submitted To
Punjab Technical University, Jalandhar
STUDY CENTRE
Modern Institute of Management & Technology, Korba (C.G.) Study Center Code – 838
Submitted By
BED PRAKASH DHIRHEY SEMESTER-IV MBA (HR & MARKETING)
Roll No. 10208380066
TABLE OF CONTENT
Acknowledgement Declaration Certificate from the Guide Certificate Study Objective
Chapter
Chapter-1 1.1 1.2 1.3 1.4 Chapter-2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
Index
INTRODUCTION OF MY TOPIC
Meaning and Definition of Retirement Retirement in Specific Countries Types of Retirement Importance of Retirement Plan
Page No.
9 10 11 13 15 16 17 20 21 26 27 29 30 33 34 35
INTRODUCTION OF COMPANY
Introduction Company Vision and Mission Director?s Profile Evolution of NTPC Milestone of Company Future Plans of Company Recognitions and Awards NTPC Korba Profile Plant Process NTPC Contribution for District Administration Korba
2
Chapter-3 3.1 3.2 3.3 3.4 Chapter-4 Chapter-5 5.1 5.2 5.3 5.4 Chapter-6 6.1 Chapter-7 7.1
RESEARCH METHODOLOGY
Research Types of Research Method of Data Collection Sampling Plan
36 37 38 40 42 67 85 86 90 91 92 93 94
95 96
ANALYSIS AND INTERPRETATION FINDING
Finding Limitation Suggestion Conclusion
REFERENCE
Bibliography
Annexure
Retirement – Questionnaire
3
ACKNOWLEDGEMENT
No work is considered complete unless due indebtedness is expressed to all those, who made the work successful. Concentration, dedication, hard work & application are essential but not the only factors to achieve the desired goal. There must be supplemented by guidance, assistance and co-operation of people to make it a success. Every complete successful assignment is the result of many hands joined together. A formal statement of acknowledgement is hardly sufficient to express my gratitude towards the personalities who have helped me to undertake this training. I would like to thanks Ms. PRACHI CHAUHAN OFFICER of HRD, NTPC LTD KORBA who had supported me with her valuable time and experience in the company. Her guidance also helped a lot for the completion of the project. I am highly indebted to cooperative staff of NTPC LTD KORBA who gave me weighty guidance in the study. It was really nice experience to work in their guidance and helping me in knowing practical things, which was my main objective, before entering the corporate world. They have provided me an unconditional support during the project work. I am highly thankful to Ms. DEVJANI MOITRA HOD of MIMT for it Guidance. It has been a constant source of inspiration and it critical evaluation during our course in the institute has helped me to complete this project properly. Through this acknowledgment I would like to grab the opportunity to thank all those who helped me from the start of my training, to its end. It is warmth and efforts of my teachers, friends and well wishers who has been a source of strength and confidence for me in the endeavor. Finally, yet importantly, we would like to thank almighty for blessing me to do and complete this project.
Signature
BED PRAKASH DHIRHEY MBA SEM-IV
4
DECLARATION
I, BEDPRAKASH DHIRHEY, declare that with the exception of the suggestion and guidance received from lecturer Ms. Devjani Moitra this research project report work titled STUDY OF RETIREMENT BENEFITS OF NTPC LTD for the year 2011- 2012 is my Original work. This discussion is one which substantially the same, as this has not been submitted by me for any other examination at any other university.
Signature
Place: Date: BED PRAKASH DHIRHEY MBA SEM-IV
5
CERTIFICATE FROM THE GUIDE
This is to certify that the project work titled “STUDY OF RETIREMENT BENEFITS OF NTPC LTD” is a bona fide work of BED PRAKASH DHIRHEY; University Roll No- 10208380066 is carried out in partial fulfillment for the award of M.B.A. From MODERN INSTITUTE OF MANAGEMENT & TECHNOLOGY, KORBA (CHHATTISGARH) Study Centre Code-838 affiliated to PANJAB TECHNICAL UNIVERSITY, JALANDHAR under my guidance. This project has not been submitted earlier for the award of any degree/diploma of any other Institution/University.
Signature
Place: Date: Ms. DEVJANI MOITRA (HOD, MIMT)
6
7
STUDY – OBJECTIVES
1. To find out the awareness among employees of NTPC Ltd. Korba regarding their retirement policies and procedures. 2. To find out the employees of NTPC Ltd. Korba, are satisfied or not with their retirement benefits. 3. To know the retirement benefits provided by the NTPC Ltd. Korba.
8
CHAPTER-I INTRODUCTION OF MY TOPIC
9
1.1: RETIREMENT BENEFITS
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours, it also known as superannuation. Definition of Superannuation: An organizational program created by a company for the benefit of its employee, also referred to as a “company pension plan” Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions no longer allow the person to work anymore (by illness or accident) or as a result of legislation concerning their position.[3] In most countries, the idea of retirement is of recent origin, being introduced during the late 19th and early 20th centuries. Previously, low life expectancy and the absence of pension arrangements meant that most workers continued to work until death. Germany was the first country to introduce retirement, in 1880. Nowadays most developed countries have systems to provide pensions on retirement in old age, which may be sponsored by employers and/or the state. In many poorer countries, support for the old is still mainly provided through the family. Today, retirement with a pension is considered a right of the worker in many societies, and hard ideological, social, cultural and political battles have been fought over whether this is a right. In many western countries this right is mentioned in national constitutions.
BENEFITS Various types of facilities given to a person who has got his retirement after long service for an organization or any firms those facilities are known as retirement benefits. It includes Pension, Gratuity, Leave Payments, Medical facilities etc.
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1.2: RETIREMENT IN SPECIFIC COUNTRIES
A person may retire at whatever age they please. However, a country's tax laws and/or state old-age pension rules usually mean that in a given country a certain age is thought of as the "standard" retirement age. The "standard" retirement age varies from country to country but it is generally between 50 and 70 (according to latest statistics, 2011). In some countries this age is different for males and females, although this has recently been challenged in some countries (e.g., Austria), and in some countries the ages are being brought into line. The table below shows the variation in eligibility ages for public old-age benefits in the United States and many European countries, according to the Organisation for Economic Co-operation and Development Country Austria Belgium Cambodia Denmark France Germany Greece Italy Netherlands Norway Spain Sweden Thailand United Kingdom United States Early retirement age 60 (57) 60 50 None 62* 65 55 57 60 62 60** 61 50 None 62 Normal Employed, Employed, Employed, Employed, retirement 55–59 60–64 65–69 70+ age 65 (60) 39% 7% 1% 0% 65 55 65 65* 67 65 60 65 67 65** 65 65 (64) 60 68 67 45% 16% 77% 51% 61% 65% 26% 53% 74% 46% 78% 77% ? 69% 66% 12% 1% 35% 12% 23% 18% 12% 22% 33% 22% 58% 46% ? 40% 43% 1% 0% 9% 1% 3% 4% 1% 3% 7% 0% 5% 7% ? 10% 20% 0% 0% 3% 0% 0% 0% 0% 0% 1% 0% 1% 2% ? 2% 5%
Switzerland 63 (61), [58]
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India
In India - there are three sets of pension benefits. They are really good although the value may have now eroded: 1. Gratuity - at the end of service @ of 15 days salary (basic only) multiplied by number of years of service. 2. Superannuation - Varies from company to company - good companies provide Group Annuity Schemes 3. Employees Provident Fund and Family Pension - Employee Contributed at 12 % of salary per annum.
Here is some information on Superannuation Fund
1. Superannuation Fund is a retirement benefit given to employees by the Company. 2. Normally the Company has a link with agencies like LIC Superannuation Fund, where their contributions are paid. 3. The Company pays 15% of basic wages as superannuation contribution. There is no contribution from the employee. 4. This contribution is invested by the Fund in various securities as per investment pattern prescribed. 5. Interest on contributions is credited to the members account. Normally the rate of interest is equivalent to the PF interest rate. 6. On attaining the retirement age, the member is eligible to take 25% of the balance available in his/her account as a tax free benefit. 7. The balance 75% is put in an annuity fund and the agency (LIC) will pay the member a monthly/quarterly/periodic annuity returns depending on the option exercised by the member. This payment received regularly is taxable. 8. In the case of resignation of the employee, the employee has the option to transfer his amount to the new employer. If the new employer does not have a Superannuation scheme, then the employee can withdraw the amount in the account, subject to deduction of tax and approval of IT department, or retain the amount in the Fund, till the superannuation age. 9. Normally Companies do not extend the Superannuation benefits to all employees- but only to a specific category of employees - like for example Level-1 of Managers onwards.
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1.3: TYPES OF RETIREMENT
Retirement on Superannuation:
It means retirement of an employee on reaching the maximum prescribed age limit for employment. The retirement age has been set at different age limits for various types of organizations/institutions. For instance the retirement age for employees of public sector undertakings is 60 years of age and that for scientists of the Government of India it is extendable to 64 years of age. For private sector firms the ages of retirement vary.
Voluntary Retirement:
Voluntary retirement is one of the options made available to employees of an organization under the Voluntary Retirement Scheme. Under the scheme employees are given the option to retire earlier than the superannuation age. It is mainly adopted by organizations to trim staff strength by making available monetary or other benefits.
Compulsory Retirement:
Compulsory retirement is sorted to by an organization for the dismissal or discharge of an employee. An employee can be made to compulsory retire on account of serious misconduct, theft of office property, etc.
Types of Retirement (According to department of defense and accounting of United States): There are several types of retirement:? ? ? ? ?
Regular Retirement Reserve Retirement Temporary Disability Retirement List Permanent Disability Retirement List Temporary Early Retirement Authority
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Type of Retirement Regular Retirement
Basic Eligibility Completed 20 years of active service
?
Determination Criteria Based on salary and service information submitted by member?s Branch of Service Based on salary and service information submitted by member?s Branch of Service Based on Disability Determination by Branch of Service Based on salary and service information submitted by member?s Branch of Service Based on Disability Determination by Branch of Service Based on salary and service information submitted by member?s Branch of Service Based on number of soldiers needed to maintain force readiness Based on salary and service information submitted by member's Branch of Service Based on the legislation governing this special program Based on number of soldiers needed to maintain force readiness Based on salary and service information submitted by member's Branch of Service Based on the legislation governing this special program
Reserve Retirement
Reservist with 20 years of active service who has reached age 60 Temporary disability rating, placed on retirement rolls by member's Branch of Service (max of 5 years)
?
Temporary Disability Retirement List (TDRL)
?
?
Permanent Disability Retirement List (PDRL)
Permanent disability rating, placed on the retirement rolls by member's Branch of Service
?
?
1993-2001 Temporary Early Retirement Authority (TERA)
At least 15, but less than 20 years of active service between 1993 and 2001. This program ended effective September 2002 and any future use must be approved by Congress.
?
?
?
2012-2018 Temporary Early Retirement Authority (TERA)
At least 15, but less than 20 years of active service between 2012 and 2018. This program is expected to end Dec.31, 2018. Any future use will have to be approved by Congress.
?
?
?
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1.4: IMPORTANCE OF RETIREMENT PLAN
It is important because of three main factors –
?
Rising Life expectancy – Life expectancy has significantly increased over the
years in our country. This can mean a person can outlive his/her savings. Improper retirement planning will lead to ugly situations that will force retirees to work until they pass away to sustain themselves or live in poverty.
?
Optimum asset allocation – Asset allocation is very important to ensure that
there are enough funds to cover all living expenses throughout retirement. Many times people are just happy to have a big bank balance or invest all savings in risk free but very low yielding instruments. For example, if you have all your savings in the savings bank account that gives a mere 3.5%-4.00% interest; you are losing money if you consider the high inflation rate today.
?
Medical Expenses and Health Care for a long term – Health care costs are
rising and combined with increased life expectancy, expenses can shoot through the roof. Many people work in private organizations where no pensions are given post retirement generally. Moreover unlike countries like US, there is no government scheme or social security to take care of the health needs of the senior citizens. They have to fend for themselves or depend on relatives, children and well wishers.
Employers, government or financial institutions can set up retirement plans. They are suitable not only for retirees or senior citizens, but for anyone planning for a secure future.
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Chapter-II ITRODUCTION OF COMPANY
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2.1: INTODUCTION
Registered Office: NTPC BHAWAN, SCOPE COMPLEX 7, INSTITUTIONAL AREA, LODHI ROAD NEW DELHI-110003 Web site: www.ntpc.co.in
Subsidiaries
? ? ? ? ? NTPC Electric Supply Company Ltd. NTPC Hydro Ltd. NTPC Vidyut Vyapar Nigam Ltd. Kanti Bijlee Utpadan Nigam Ltd. Bhartiya Rail Bijlee Company Ltd.
Shares Listed at
? National Stock Exchange of India Ltd. ? Bombay Stock Exchange Limited
India?s largest power company, NTPC was set up in 1975 to accelerate power development in India. NTPC is emerging as a diversified power major with presence in the entire value chain of the power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 341st in the „2010, Forbes Global 2000? ranking of the World?s biggest companies. NTPC became a Maharatna company in May, 2010, one of the only four companies to be awarded this status. The total installed capacity of the company is 39,174 MW (including JVs) with 16 coal based and 7 gas based stations, located across the country. In addition under JVs, 7 stations are coal based & another station uses naphtha/LNG as fuel. 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 17.75% of the total national capacity, it contributes 27.40% of total power generation due to its focus on high efficiency.
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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. The rest is held by Institutional Investors and the Public. National Thermal Power Corporation is India's largest power utility and the sixth largest thermal power generator in the world. In 2003-04, the company had an installed capacity of 19.4 per cent in India and produced 27 per cent of total electricity generated in the country.
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NTPC is currently implementing India's largest coal based electricity plant at Sipat in Chhattisgarh. The plant will have an installed capacity of over 3,000 MW and is expected to cost over US$ 1,800 million. Coal Based Power Station [ Singraulli | Korba | Ramagundam | Farakka | Vindhyachal | Rihand | Kahalgaon | NTCPP | T alcher Kaniha | Unchahar |Talcher Thermal | Simhadri | Tanda | Badarpur | Sipat ] Gas/Liq. Fuel Based Power Stations [ Anta | Auraiya | Kawas | Dadri | Faridabad | Jhanor-Gandhar | Rajiv Gandhi CCPP Kayamkulam ] Hydro Based Power Station [ Koldam | Loharinag Pala | Tapovan Vishnugad ] Power Plants with Joint Ventures [ Durgapur | Rourkela | Bhilai | RGPPL ]
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2.2: VISION AND MISSION
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.” Core Values – BE COMMITTED B E C O M M I T T E D Business Ethics Environmentally & Economically Sustainable Customer Focus Organisational & Professional Pride Mutual Respect & Trust Motivating Self & others Innovation & Speed Total Quality for Excellence Transparent & Respected Organisation Enterprising Devoted
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2.3: DIRECTOR'S PROFILE
The Board of Directors has a combination of Executive and Non-Executive Directors.
Shri Arup Roy Choudhury, Chairman & Managing Director since September 01, 2010, has an illustrious career spanning over 32 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 is currently pursuing a doctorate in „Select Study of Project Performance Metrics in Indian Construction Industry? from IIT-Delhi. Shri Choudhury brings to NTPC the dynamism of a leader with proven abilities to achieve transformational changes. He seeks to position the Maharatna enterprise on course to become the largest and best power producer in the world. Shri Choudhury 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. Shri 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. Shri Choudhury 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.
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Shri A.K. Singhal, Director (Finance) since August 2005, a Chartered Accountant, comes with rich experience of 29 years of Corporate Finance Management. He is also a member of All India Management Association (AIMA) and Institute of Internal Auditors (IIA). Prior to joining NTPC in 2001, he was the Executive Director (Finance) in National Fertilizers Limited (NFL) as head of Finance & Accounts department
Sh. I.J.Kapoor, Director (Commercial) since December? 2008 is a Graduate in Mechanical Engineering and Masters in Business Administration (Marketing). He joined NTPC in 1978 as 3rd batch Engineering Executive Trainee (EET) and is the first EET to be on the Board of the Company. He has a rich and varied experience of over 32 years in the areas of Commercial, Engineering, Contracts & Materials Management, Project Management, Consultancy, Cost Engineering, Station Engineering and Quality Assurance & Inspection.
Shri Sushil Khanna,(60 years) is Fellow of Indian Institute of Management, Calcutta (IIM-C). He is Professor of Economics and Strategic Management at IIM-C since 1991. He has been visiting Professor in various Universities and institutes abroad. He is currently, Member, Board for Reconstruction of Public Sector Enterprises, and Independent Director on the Board of Oil India, Shipping Corp of India and Nicco Internet Ventures Limited.
Sri B.P. Singh (55 yrs), Director(Projects), is a Graduate in Mining Engineering. He has rich and varied experience both in coal as well as power sector. He started his career in 1974 in coal mining sector firstly with Indian Iron & Steel Company and subsequently joined Bharat Coking Coal Ltd. He joined NTPC Ltd. in 1981 and worked in various capacities, at Corporate Centre and Power Projects, in the areas of Fuel Management, Coal Mining & Coal Washery.
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Shri S. P. Singh(57 Years), Director(HR), is a Graduate in Electrical Engineering from Madhav Institute of Technology & Science, JIWAJI University , Gwalior (year 1973- 74). Shri Singh joined NTPC in 1984 and worked for more than 25 years in Engineering Department, looking after various functions of Plant Engineering related Quality Assurance & Inspection, Project Layout engineering, Project Engineering etc. He served as ED (Corporate Contacts & Materials) and Chief Executive officer, of NTPC Electric Supply Company (A wholly owned subsidiary of NTPC) and lastly as ED (I/C) Human Resources during his tenure in NTPC.
Shri N.N.Misra (55 years), Director (Operations), graduated in Electrical Engineering with Honours from Regional Engineering College, Rourkela in the year 1977. Shri Misra joined NTPC in 1977 as Executive Trainee (2nd Batch). He has an experience of 33 years in NTPC out of which 28 years were in the Design Department looking after the various functions of Electrical Design and Project Engineering beginning with the first Project of NTPC.
Shri A.K. Jha has taken over as Director Technical, NTPC Sunday, 1st July, 2012. Shri Jha has more than 35 years of rich and varied experience in Power Sector in the areas of Erection and Commissioning, Project Planning & Monitoring, Project Management.
Shri S. B. Ghosh Dastidar, joined the Indian Railway Traffic Service in 1969 after completing his Bachelor of Engineering (Mech.) from Calcutta University. Over 37 years of experience on Indian Railways, he held various prestigious posts including Member Traffic, General Manager, Chief Operational Manager, Divisional Railway Manager etc. He played a pivotal role in the Indian Railway. He was awarded “Padam Shri” by Government of India for his outstanding contribution in Indian Railways.
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Dr. M. Govinda Rao is Director, National Institute of Public Finance and Policy, New Delhi. He is also a Member, Economic Advisory Council to the Prime Minister. His past positions include Director, Institute for Social and Economic Change, Bangalore and Fellow, Research School of Pacific and Asian Studies, Australian National University, Canberra, Australia.
Shri Rajib Sekhar Sahoo is a practicing Chartered Accountant born on 1st July, 1962. He qualified as CA in the year 1987. He is one of the Principal partner of M/s.SRB & Associates, Chartered Accountants. At present he is a Director in NTPC Limited a Maharatna Company of Govt. of India, Hindustan Zinc Limited and THDC India Limited (Tehri Hydro Development Corporation India Limited) appointed by the Appointment Committee of Cabinet, Govt. of India.
Shri I.C.P. Keshari, is a Government nominee Director. He graduated with a Master of Arts degree from Delhi University and holds Junior Research Fellowship of UGC for Master of Philosophy. He is currently Joint Secretary in the Ministry of Power.
Shri Rakesh Jain, is a Government Nominee Director in NTPC. He is currently the Joint Secretary & Financial Adviser (JS&FA) in the Ministry of Power. He is Government Nominee Director on the Board of NHPC Limited and Power Grid Corporation of India Limited under the administrative control of Ministry of Power.
Shri Ajit M. Nimbalkar,(68 years), is a retired Indian Administrative Service Officer of 1967 Batch, Maharashtra Cadre. He has over 37 years of experience as IAS and has held several positions at the District, State and Central Levels. From August 2005 and till August 2011, he served as the first Chairman of the newly enacted Maharashtra Water Resources Regulatory Authority, a qausi-judicial post. Shri Nimbalkar has taken over the charge as Non-Official Part-time Director on the Board of NTPC on 20.01.2012.
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Shri S.R. Upadhyay,(62 years), is B.Sc (Hons.) (Mining) from Indian School of Mines, Dhanbad. He has obtained 1st Class Mines Managership Certificate of Competency (Coal), 1975. He is life Member of IMMA, MGMI and was also member of prestigious Board of Mining Examinations of the Director General of Mines Safety, GOI, while in service. Shri Upadhyay has taken over the charge as Non-Official Part-time Director on the Board of NTPC on 20.01.2012.
Ms. Homai A. Daruwalla,(63 years), is a qualified Chartered Accountant. Her main areas of concern included HRD, Technological up gradations matching industry levels, Business Process Reengineering with active participation from field and customizing the products/ services as well as systems and procedures to match the market requirements. She also handled prestigious assignment as Region of India Director on the Board of „The Institute of Internal Auditors?, Florida, USA.
Shri Anol Nath Chatterji has been Director General of the National Academy of Audit and Accounts, Shimla and later became Director of the National Institute of Financial Management, Faridabad. Shri Chatterji has been Additional Deputy CAG responsible for audit of Autonomous Bodies and State Commercial Enterprises. He was promoted as Deputy CAG and was responsible for the audit of Indian Railways, Local Bodies and the Accounts of the States. Concurrently he was also Chairman Audit Board responsible for the Audit of all Central Public Sector Undertakings.
Shri T. Venkatesh,(48 years) has done his Post Graduation in Mechanical Engineering and is an Indian Administrative Service officer of 1988 batch of U.P. Cadre. He is looking after the work of Chief Vigilance Officer of our company since October, 2009.
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2.4: EVOLUTION OF NTPC
1975
NTPC WAS SETUP IN1975 WITH 100% OWNERSHIP BY THE GOVT. OF INDIA IN THE LAST 30 YEARS; NTPC HAS GROWTH INTO THE LARGEST POWER UTILITY IN INDIA.
1997
IN 1997, GOVT. OF INDIA GRANTED NTPC STATUS OF “NAVRATNA” BEING ONE OF THE NINE JEWELS OF INDIA, INHANCING THE POWER TO THE BOARD OF DIRECTORS
2004
BECOME A LISTED COMPANY WITH MAJORITY GOVT. OWNERSHIP OF 89.5%. THIRD LARGEST BY MARKET CAPATILIZATION OF LISTED COMPANY.
2005
THE COMPANY RECHRISTENED AS NTPC LTD TO CHANGE ITS BUSINESS PORTFOLIO AND TRANSFORM ITSELF FROM A THERMAL POWER UTILITY TO AN INTEGRATED POWER UTILITY
Stakeholder Value Creation Investments philosophy aimed at maximizing returns; adherence to best practices Strong Managementtea m, Professional and dedicated organization Sound business concept & High standards of Corporate Governance
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2.5: MILESTONE OF COMPANY
Capitation Addition Programme
Capacity at end of 10th Plan Capacity Added during 2007-08 Capacity Added during 2008-09 Capacity Added during 2009-10 Capacity Added during 2010-11 Capacity Added during 2011-12 Capacity Added during 2012-13 Total as on Today Capacity under Construction Capacity Under Bidding FR Approved Loharinagpala (4X150 MW) has been discontinued as per go I directions dated 24.12.2010
MW
27404 1740 1000 1560 2490 2820 2160 39174 16638 12041 12111
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Capacity Added During 11th Plan
Kahalgaon U# 6 & U# 7 Sipat U# 4 & U# 5 Bhilai U# 1 & U# 2 Dadri U# 5 & U# 6 Jhajjar U# 1 & U#2 Korba U# 7 Farakka U# 6 Simhadri U# 3 & U# 4 Sipat U# 1 & U# 2 RGPPL Mod-3 Vallur U# 1 In addition following added to NTPC?s capacity RGPPL(Adjusted) Kanti
MW
1000 1000 500 980 1000 500 500 1000 1320 740 500 460 110 9610
Total
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2.6: FUTURE PLAN OF COMPANY Future Capacity Additions
NTPC has formulated a long term Corporate Plan upto 2032. In line with the Corporate Plan, the capacity addition under implementation stage is presented below: PROJECT Coal 1. Indira Gandhi STPP- JV with IPGCL & HPGCL (500) 2. Mauda I( 500) 3. Vallur I -JV with TNEB ( 500) 4. Vallur Stage-I Phase-II -JV with TNEB (500) 5. Bongaigaon I (3 x 250) 6. Mauda II 7. Rihand Stage-III(500) 8. Vindhyachal-IV (500) 9. Muzaffarpur Expansion (2x195) – JV with BSEB 10. Nabinagar TPP-JV with Railways (4 x 250) 11. Barh II (2 X 660) 12. Barh I (3 X 660) 13. Solapur I (2 X 660) 14. Kudgi(3 X 800) 15. Meja (2 X 660) 16. Vindhyachal (500) Hydro 1. Koldam HEPP ( 4 x 200) 2. Tapovan Vishnugad HEPP (4 x 130) 3. Singrauli CW Discharge(Small Hydro) Solar 1. A & N Solar PV (5) 2. Dadri Solar PV (5) STATE Haryana Andhra Pradesh Tamilnadu Tamilnadu Assam Maharashta Uttar Pradesh Madhya Pradesh Bihar Bihar Bihar Bihar Maharashtra Karnataka Uttar Pradesh Madhya Pradesh Himachal Pradesh Uttarakhand Uttar Pradesh Port Blair Uttar Pradesh MW 500 500 500 500 750 1320 500 500 390 1000 1320 1980 1320 2400 1320 500 800 520 8 5 5 16,638
Total
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2.7: RECOGNITIONS AND AWARDS
NTPC has a glorious record of excellence in every field of its activities ever since its inception in 1975. Leading the country?s power sector with a vision to become a 75,000 MW company by 2017, we take pride in our people and their performance which has been acknowledged time and again at various national and international for.
HR Awards
1. 2. 3. 4. 5. 6. 7. 8. Top honors for NTPC at Best Companies to Work for 2012 in India NTPC awarded for Excellence in HR NTPC ranked 19th by the GPTW for 2011 amongst 25 top Best Companies in India NTPC ranked 6th amongst 25 top Best Employers in Country Exemplary Leadership Award to Shri Arup Roy Choudhury for People Excellence NTPC wins Star TV Talent Leadership and HR Award Two Awards for NTPC at Asia Best Employer Brand Awards Overall 7th in „India?s Best Companies to Work for 2010?, 1st amongst the PSUs and 1st in Manufacturing & Production Industry Segment. 9. Great Places to Work Award 2010 10. NCPEDP-Shell Helen Keller Award 2009 11. Vishwakarma Rashtriya Puraskar (VRP) – 2007 12. Best Companies to Work For – 2009 13. SCOPE Meritorious Award for Best Practices in Human Resource Management
Company Rankings
1. Ranked 348th in Global ranking among „Global 2000? list of companies compiled by Forbes in 2011. 2. Forbes' Global 2000 list of top listed firms 3. Platts Top 250 Global Energy Company Rankings – 2010 4. NTPC – the Most Respected Company in Power Sector 5. India?s Biggest News Makers Survey 6. Business Standard's "BS1000" companies
Safety Awards
1. National Safety Award - 2008 2. Safety Innovation Award 3. Safety Award 2009 4. Best Environment Management Station Award for Safety
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Environment Awards
1. Golden Peacock Environmental Management Award 2. CII Sustainability Award 3. 3rd Green Globe Foundation Awards 4. The Sunday Indian Special Mega Excellence – “India?s Best Environment Driven Company Award – 2009.
Performance Awards
1. 2. 3. 4. 5. 6. SCOPE Excellence Award to NTPC NTPC Finance Director bags GSBA- Top Rankers Excellence Award Top Liner Maharatna Award to NTPC SCOPE Excellence Award to Shri Arup Roy Choudhury, CMD, NTPC PSU Excellence Award for NTPC Enertia Awards for NTPC Projects & Shri D K Jain, Director (Technical), NTPC Ltd receives award for Excellence in Nuclear, Thermal (Conventional Energy) 7. Vishwakarma Award for 12 NTPC Employees 8. Prime Minister?s Shram Award to NTPC?s Misri Lal Choudhary 9. The Best Performing CFO Award 10. India Pride Awards – Energy and Power Category 11. Enertia Award 2010 12. SAFA Best Presented Accounts Awards 2008 13. CII-EXIM Excellence Award, 2010 14. National Awards for Meritorious Performance
CSR AWARDS
1. NTPC WINS GOLDEN PEACOCK AWARD FOR CORPORATE SOCIAL RESPONSIBILITY 2. NTPC Awarded for Corporate Social Responsibility & Responsiveness for 2010-11 3. NTPC Awarded for Corporate Social Responsibility 4. 2nd India Power Awards 2009 5. CII ITC Sustainability Award
Corporate Governance Awards
1. Good Corporate Citizen Award to NTPC 2. Golden Peacock Global Award for Excellence in Corporate Governance – 2009 3. ICSI National Award for Excellence in Corporate Governance 2009
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Quality Awards
1. International Gold Star Award for Quality 2009 2. NTPC Korba wins trophy for Best Employee Relations 2600-MW Korba project of NTPC Ltd has won the runner-up trophy in Employee Relations category in NTPC Swarn Shakti Awards for the year 2010-11. S.N. Ganguly, Regional Executive Director, Western Region II Headquarter, Raipur and S.K. Roy, General Manager, NTPC, Korba received the award from Arup Roy Chowdhury, CMD, and NTPC at a function in New Delhi recently.
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2.8: NTPC KORBA PROFILE
One of its largest plants, with an installed capacity of 2,600 MW is located at Korba in Chhattisgarh. ADDRESS Telephone Fax Approved capacity Installed Capacity Location Coal Source Water Source Beneficiary States Approved Investment Unit Sizes P.O. Vikas Bhawan, Jamanipali-495 450,Dist. Korba, Chattisgarh (STD-07759) - 233021 233095 2600 MW 2600 MW Korba ( Chattisgarh) Kusmundha Block, Gevra Mines Hasdeo River Madhya Pradesh,Chattisgarh, Maharashtra, Gujarat, Goa, Daman, Diu & Nagar Haveli Rs. 2448.49 Crore Stage - I: 3x 200 MW Stage -II: 3x 500 MW Stage -III: 1x500 MW Unit -I 200 MW March 1983 Unit -II 200 MW October 1983 Unit -III 200 MW March 1984 Unit -IV 500 MW May 1987 Unit -V 500 MW March 1988 Unit -VI 500 MW March 1989 Unit -VII 500 MW December 2010
IDA OPEC KFW
Units Commissioned
International Assistance
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2.9: PLANT PROCESS
Power Plant Process Flow Chart
Coal Transportation & Handling
SECL
MGR
CHP
Milling
Boiler
Generation & Transmission
Steam Steam
Gen Tx. Turbine Generator Electricity
Switch Yard
Ash
Chimney ESP
C U S T O M E R S
Ash Utilization
Manual Transport
Customers Auto Loading from SILO
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2.10: NTPC CONTRIBUTION FOR DISTT. ADMN. KORBA SL.NO.
1 2 3 4 5 6 7 8 9 10 11
ACTIVITY
CONST. OF DEGREE COLLEGE OF KORBA CONST. RBC ROAD UPGRADING OF KORBA-KATGHORA ROAD CONTRIBUTION FOR ROAD BETWEEN KORBACHAMPA CONTRIBUTION FOR BRIDGE AT DHENGURNALA CONST. FOR RING ROAD DARRI-BARBASPUR CONTRIBUTION FOR RAJYOTSAV, SPORT,WOMEN’S FOOTBALL CONTRIBUTION FOR TREE PLANTATION CONTRIBUTION FOR CONST. OF ROAD BRIDGE AT RBC CONST. FOR SETTING UP ENGINEERING COLLEGE OTHER (Mass marriage, Elect. etc)
AMOUNT(Lacs)
19.60 26.00 24.00 32.00 50.00 100.00 18.00 200.00 113.00 400.00 22.75
TOTAL
1005.35
35
CHAPTER-III RESEARCH MATHODOLOGY
36
3.1: RESEARCH
According to Clifford woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deduction and reaching conclusion and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. Research in common parlance refers to a search of knowledge. The term “research” refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solution towards the concerned problem or in certain generalizations for some theoretical formulation.
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data .more explicitly, the design decisions happen to be in respect of: 1. What is the study about? 2. Why is the study being made? 3. Where will the study be carried out? 4. What type of data is required? 5. Where can the required data are found? 6. What periods of time will the study include? 7. What will be the sample design? 8. What techniques of data collection will be used? 9. How will the data be analyzed? 10. In what style will the report be prepared?
37
3.2: TYPES OF RESEARCH
1. Descriptive research
Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time. ? ? ? ? ? ? ? ? Statement of the problem Identification of information needed to solve the problem Selection or development of instruments for gathering the information Identification of target population and determination of sampling procedure Design of procedure for information collection Collection of information Analysis of information Generalizations and/or predictions
2. Analytical research
Analytical research involves in-depth study and evaluation of available information in an attempt to explain complex phenomenon. The researcher has to use facts or information already available and analyze these to make a critical evaluation of the material. Subdivisions of Analytical Research: Historical research Philosophical research Review Research synthesis (Meta analysis i.e. analysis the review that already published)
3. Applied research
Applied research is a form of systematic inquiry involving the practical application of science. It accesses and uses some part of the research communities' (the academy's) accumulated theories, knowledge, methods, and techniques, for a specific, often state, business, or client driven purpose. Applied research is compared to pure research (basic research) in discussion about research ideals, methodologies, programs, and projects. Applied research deals with solving practical problems and generally employs empirical methodologies.
4. Fundamental research
"Fundamental research means experimental or theoretical work under taken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any direct practical application or use in view."
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5. Quantitative research
Quantitative research generates numerical data or data that can be converted into numbers. Quantitative research is about asking people for their opinions in a structured way so that you can produce hard facts and statistics to guide you. To get reliable statistical results, it?s important to survey people in fairly large numbers and to make sure they are a representative sample of your target market. 6. Qualitative research Qualitative research is used to explore and understand people's beliefs, experiences, attitudes, behavior and interactions. It generates non- numerical data, e.g. a patient's description of their pain rather than a measure of pain. In health care, qualitative techniques have been commonly used in research documenting the experience of chronic illness and in studies about the functioning of organizations.
7. Conceptual research
A conceptual definition is an element of the scientific research process, in which a specific concept is defined as a measurable occurrence. It basically gives you the meaning of the concept. It is mostly used in fields of philosophy, psychology, communication studies. This is especially important when conducting a content analysis.
8. Exploratory research
Exploratory research is undertaken to explore an area where little is known or to investigate the possibilities of undertaking a particular research study (feasibility study / pilot study). From the process adopted to find answer to research questions – the two approaches are: ? Structured approach ? Unstructured approach Structured approach: The structured approach to inquiry is usually classified as quantitative research. Here everything that forms the research process- objectives, design, sample, and the questions that you plan to ask of respondents- is predetermined. Unstructured approach: The unstructured approach to inquiry is usually classified as qualitative research. This approach allows flexibility in all aspects of the research process.
39
3.3: METHOD OF DATA COLLECTION
1. PRIMARY DATA COLLECTION In primary data collection, you collect the data yourself using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it. There are many methods of collecting primary data and the main methods include:
? ? ? ? ? ? ?
Questionnaires Interviews Focus group interviews Observation Case-studies Diaries Critical incidents
2. SECONDARY DATA COLLECTION Secondary data are second hand information?s. They are not collected from the source as the primary data. In other words, secondary data are those which have already been collected. So they may be relatively less accurate than the primary data. Secondary data are generally used when the time of enquiry is short and the accuracy of the enquiry can be compromised to some extent. Secondary data can be collected from a number of sources which can broadly be classified into two categories.
I.
Published Sources: Mostly secondary data are collected from published sources.
Some important sources of published data are the following. a) Published reports of Central and State Governments and local bodies. b) Statistical abstracts, census reports and other reports published by different ministries of the Government. c) Official publications of the foreign Governments. d) Reports and Publications of trade associations, chambers of commerce, financial institutions etc. e) Journals, Magazines and periodicals.
f) Periodic Publications of Government organizations like Central Statistical Organization (C. S. O.), National Sample Survey Organization (NSSO). g) Reports submitted by Economists, Research Scholars, Bureaus etc. h) Published works of research institutions and Universities etc.
40
II.
Unpublished Sources:
Statistical data can also be collected from various unpublished sources. Some of the important unpublished sources from which secondary data can be collected are: a) The research works carried out by scholars, teachers and professionals. b) The records maintained by private firms and business enterprises. They may not like to publish the information considering them as business secret. c) Records and statistics maintained by various departments and offices of the Central and State Governments, Corporations, Undertakings etc.
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3.4: SAMPLING PLAN
This is an exploratory research in which objective is to find out the Retirement Scheme in NTPC Ltd Korba. The research is done by the Survey method by doing a survey on the employees. The Stratified Random Sampling is used to select the respondents from the whole population. The survey is done by the method of questionnaire. The research has been done in five steps: 1. Literature survey 2. Formation of the questionnaire/ interview questions 3. Data collection 4. Data analysis 5. Conclusion
3.4.1: SECONDARY DATA
Methodology: The methodology that was followed for collecting secondary data was as follows: 1. Literature Review: A study of data through various articles and studies and research work conducted on this topic has been done to provide a better insight. This helped me in getting to know the real picture of my topic in regards to the company. 2. Company manual: I also went through the company manual in order to find out about their practices.
42
RETIREMENT BENEFITS IN NTPC LTD KORBA
The parting emotion of the employees and their family, on superannuation, after contributing their long and dedicated span of service for the company, needs to be treasured. Addressing this need, a brochure on “Know your Insurance, health and social security benefits on separation”, has been brought out by NTPC, Korba HR. NTPC Korba is provided to all employees the information regarding eligibility, benefit structure and procedure for availing Social Security benefits on retirement from the company. Those are given below:
1. 2. 3. 4. 5. 6. 7. 8.
EMPLOYEES GRATUITY FUND EMPLOYEES PROVIDENT FUND LEAVE SALARY CONTRIBUSION SCHEME FOR PODST RETIREMENT MEDICAL FACILITIES MEDI-CLAIM INSURANCE FOR VOLUNTARY RETIRED EMPLOYEES NTPC SELF CONTRIBUTORY SUPERANNUATION PENSION EMPLOYEES PENSION UNDER EPS-95 OTHER BENEFITS a) Identity Card on Superannuation b) Farewell Gift on Superannuation c) Travel Allowance d) Baggage Charge e) Packing Charge
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1. GRATUITY
ELIGIBILITY: i. Gratuity shall be payable to an employee:? On completion of continuous service for not less than five year ? On superannuating or ? On retirement, resignation or termination of his service ? On death or disablement due to accident or disease Provided that the completion of continuous service of five years, shall not be necessary, where the termination of the employment of any employee is due to death or disablement. Provided further that in the case of death of the employee, gratuity payable to him, shall be paid to his nominee, or if no nomination has been made, to his heirs.
ii.
iii.
BENEFITS: i. The amount of gratuity shall be equal to fifteen days wages last drawn for every completed year of service or part thereof, in excess of six months, subject to maximum of Rs. 10 lakes The amount of gratuity shall be computed in the following manner:
ii.
In case of death of an employee, amount of gratuity will be calculated as follows:-
Period of Continuous Service
Up to 1 Year More than 1 year up to 5 year More than 5 year but up to 20 year More than 20 year
Amount of Gratuity
4 time 15 days wages 12 times 15 days wages 24 times 15 days wages Half month?s wages for completed half year of service subject to maximum of 66 times 15 days wages.
44
i.
Gratuity payable to an employee shall be partially forfeited, where the services of an employee has been terminated for any act of wilful omission or negligence causing any damage or loss to, or destruction of property belonging to the company, to the extent of the damage or loss so caused. The gratuity payable to an employee shall be wholly forfeited, if the services of such employee has been terminated for his riotous or disorderly conduct or any other act of violence on his part, Or if, services of such employee has been terminated for any act which constitutes an offence involving moral turpitude that such offence is committed by him in the course of his employment. Income tax or any other tax/duty, if any, payable on the amount of gratuity shall not be borne by the fund but shall be deducted from the gratuity amount payable.
ii.
iii.
PROCEDURE i. An employee who is eligible for payment of gratuity shall apply to HR department, within 30 days from the gratuity becomes payable in Form E. A nominee of an employee who is eligible for payment of gratuity shall apply to HR department within 30 days from the date the gratuity becomes payable to him in Form F. A legal heir of an employee who is eligible for the payment of gratuity shall apply to HR department within one year from the gratuity becomes payable to him in Form G. After receipt of application from the employee (verification of nomination details in case of death of an employee), an approval for payment of gratuity from the Competent Authority shall be accorded.
ii.
iii.
iv.
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2. PROVIDENT FUND
ELIGIBILITY: i. The employee is entitle to receive lump sum payment of accumulations with interest on the following occasions:? ? ? ? ? On Superannuation or On Resignation, VRS or termination of service or On death or total/ permanent disablement due to accident or disease or Termination of the job and remaining unemployed for over 02 months or Leaving the job from a covered establishment and joining an establishment not covered under EPF Act
ii.
Provided that in case of death of the employee, final settlement of PF payable to him, shall be paid to his nominee, or if no nomination has been made, to his legal heirs. BENEFIT The amount of PF shall be equal to the total accumulations (employee and employer contribution), including interest thereon, available to his PF account. PROCEDURE i. An employee, who is eligible for payment of PF, shall apply in Form C to HR department. For transfer of PF accumulations, employee has to apply in Form-13(Revised), through the new Employer at the EPF Office from which transfer is sought, clearly stating New and Old EPF Numbers and obtain new EPF Number from the New Employer. New EPF Number will be allotted by the New Employer, not by EPFO. Income tax or any other tax/ duty, if any, payable in the amount of PF, shall not be borne by the trust but shall be deducted from the amount payable. Whenever any provision of NTPC Rules are found silent, the provisions of Employees provident fund & Miscellaneous Provisions Act, and 1952 shall apply. After receipt of application from the employee (verification of nomination details in case of death of an employee), an intimation to finance department for payment of PF shall be forwarded.
ii.
iii.
iv.
v.
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3. LEAVE SALARY
ELIGIBILITY: i. Final settlement of EL and HPL balance, shall be payable to an employee ? On superannuation or ? On resignation or cessation of service, other than on grounds of disciplinary action ? On death while in service. Provided that the encashment of half pay leave is allowed in full, subject to a maximum of 240 days, on the above occasions, only if the concerned employee has completed a minimum of 10 years of continuous service in Central/ state Government/ PSU, out of which a minimum of 5 years in NTPC Provided that the encashment of Earned Leave is allowed in full, including non- in cashable portion, subject to a maximum of 300 days of the above occasions Provided further that, in case of death of the employee, final settlement towards balance EL and HPL, shall be paid to his nominee, or if no nomination has been made, to his legal heirs.
ii.
iii.
iv.
BENEFIT For the purpose of encasement of EL and HPL, last down Basic Pay and DA are taken into account and shall be computed as follows:-
PROCEDURE The Leave Salary Payment shall be processed by HR department, only after No Dues Certification from all concerned, including vacation of Company?s Quarter and final payment toward leave salary shall be released by Finance department, only after adjustment of all outstanding dues (if any)of the employee concerned.
47
4. POST RETIREMENT MEDICAL FACILITY FOR EMPLOYEE
ELIGIBILITY: i. All employees on superannuation or on separation on medical grounds, with minimum10 years of continuous service in Government / PSU with minimum of 05 years in NTPC Employees prematurity retiring on attaining 58 years with minimum 20 years of service in NTPC To the spouse of deceased employee In case of death of retired employee, who has been availing the benefits under the Scheme, his /her spouse will continue to avail benefits under the Scheme, subject to his /her continuing to meet the terms and conditions of the Scheme. Board appointees on completion of first term, below board level executives, completed 57 years of age, with minimum 20 years of service in NTPC and resigning to join regulatory commission, provided no medical facility are otherwise availed.
ii.
iii. iv.
v.
BENEFITS The medical benefits to the beneficiary, under the Scheme, will be admissible for the treatment taken only in India and would be as under: Where Company’s own hospital /fully fledged dispensary is available The beneficiary residing at place where the Company has its own hospitals /fully fledged dispensaries, would be allowed medical treatment facilities, including medicines, as available in such hospitals /dispensaries only. Where Company’s own hospital /fully fledged dispensary is not available The beneficiary, who resides at place where the Where the Company does not have its own hospital /fully fledged dispensaries, reimbursement of medical expenses incurred, shall be regulated as under: For Indoor Treatment – Reimbursement of Medical expenses incurred for Indoor treatment will be allowed, subject to the condition that the treatment is obtained in Government hospitals or other hospitals notified by the Company. However, the non-executives employees separated prior to 01.01.2007 shall be entitled to IPD treatment facility for a maximum amount of Rs.5 lakes for life for self and spouse. After the demise of one of the spouses, the ceiling limit shall be reduced to 50% of the balance of such ceiling remaining unutilized at the time of death of the spouse with a maximum of Rs. 2.5 lakes for the surviving spouse.
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For Out Patient /Domiciliary Treatment – Reimbursement of medical expenses shall be allowed as per Company?s Medical Attendance and Treatment Rules for serving employees. The annual ceiling for reimbursement of expenditure incurred for Outpatient /Domiciliary treatment would be equivalent to the maximum of the Pay Scale of a serving employee of equivalent status /rank, on the last day of the relevant financial year. The maximum ceiling for the employees who are enrolled for the benefits under the Scheme, for the first year after their retirement will however, be proportionate to the number of months for which the benefits will be availed after retirement up to 31st March of that Financial year. The entitlement of Medical benefits for the beneficiary, as above, shall be same as admissible to serving employees of equivalent status /rank and shall be allowed as per Company?s Medical Attendance and Treatment Rules as applicable for serving employees, within India. TERMS AND CONDITIONS FOR AVAILING PRMS BENEFITS The benefits under the Scheme would be available to the concerned employee, only if the employee concerned and his /her spouse is not availing any medical facilities from or through the Central /State Government /Public Sector Undertaking /Quasi Government Body. ? Admission Slip – Admission slip may be issued for treatment of beneficiary under contributory scheme of PRMS, subject to the following conditions:i. A deposit of Rs. 5000/-(Rupees five thousand only), may be taken from the beneficiary to take care of inadmissible expenditure incurred by the beneficiary, during the treatment in notified hospital, which will be refunded after adjusting any inadmissible charges within the 7 days of the receipt of the bill from the hospital. Only after the deposit of Rs. 5000/-, admission slip to the notified hospitals, may be issued a per format at Annexure-A. For the purpose CMOs and HOPs in case of Regional Headquarters will be the authorized signatories. The system of sectioning advance payment to the notified hospitals shall be discounted.
ii.
iii.
iv.
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? Contribution – Eligible beneficiary who intended to avail the benefits under the Scheme shall be required to pay contribution at the following rates, Subject to revision from time to time.
Contribution Where Company’s hospital available Where Company’s hospital not available Non-Executive 7,200/12,000/Executive 14,400/-
Contribution once paid shall not be refundable even if the benefits under the scheme are not availed by the beneficiary or in the event of death of beneficiary /beneficiaries before the expiry of the term for which the contributions have been paid. Where a retired employee does not become a member of the Scheme or /and pay his contribution, he cannot seek any advantage by making contribution for the past. The Medical Card will become invalid if any of the eligibility conditions ceases /fulfilled by the beneficiaries and in that case, the contribution paid for the unexpired period if any will not be refundable.
PROCEDURE FOR REGISTRATION OF BENEFICIARY i. The retired employee, who intend to avail the Medical benefits under the Scheme for self and spouse, shall apply in Annexure-B (02 copies), affixed with a join passport size photograph of self and spouse, to the HR department, from where he has retired, indicating inter-alia the NTPC Project /Unit where he wants to register himself for availing the facilities, giving his residential address. The spouse of the deceased employee, who intends to avail the Medical benefits under the scheme, shall apply in Annexure-B (02 copies), affixed with a passport size photograph, to the HR department, where he /she wants to register for availing the facilities, giving his /her residential address. In the event, the beneficiary wants to change the place from where he has to avail the benefits: he will have to approach the Project /Unit from where he is availing the facilities, for change. After receipt of application from the beneficiary, and receipt of onetime contribution, an approval from the Competent Authority shall be accorded and necessary Order will be issued by concerned HR department.
ii.
iii.
iv.
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PROCEDURE FOR REIMBURSEMENT OF MEDICAL EXPENDITURE i. For claiming reimbursement of medical expenditure, incurred by the beneficiaries, the beneficiary shall prefer claim not more than once in a six month, to the Finance Department of the Project / Unit concerned in the from prescribed as Annexure –C. The claim will be processed and reimbursed to the beneficiary by the concerned Finance Department, after verifying the validity of the Medical Card and the benefits admissible to the beneficiary concerned under the scheme. In case any doubt arises regarding the genuineness or otherwise of the claims preferred by the beneficiary, the Company reserves the right to direct the beneficiary to present himself before a Medical Board are received in this regard. If no reasonable belief or on the basis of recommendations of the Medical Board, it is found that there is misuse of the benefits under the Scheme by any beneficiary, he may be summarily debarred from the benefits under the Scheme. The Company reserves the right to amend, modify or discontinue the scheme, in part or full.
ii.
iii.
iv.
v.
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5. MEDI-CLAIM INSURANCE
ELIGIBILITY: i. Employees, retired under Voluntary Retirement Scheme and taken Medi-claim Insurance Policy in lieu of Contributory Post Retirement Medical Facilities. The coverage will be for retired employee and his /her spouse
ii.
BENEFIT i. The retired employee and his /her spouse will be provided insurance coverage for an amount of Rs. 1 Lakh each for self and spouse, per annum, subject to the condition that retired employee and his /her spouse is not reimbursed medical expenses from any other Company /Agency. As in individual Medi-claim insurance policies, there is no provision for OPD treatment and it covers only treatment for IPD /hospitalization, the employee opted for VR may be allowed to avail of the OPD treatment in addition to Medi-Claim Policy(consultation, medicines, diagnostic/surgical procedures etc.) available in NTPC own hospitals /dispensaries, free of cost. Reimbursement of OPD treatment expenses towards consultation, medicines etc. Will not be admissible. For reimbursement of IPD treatment expenses towards hospitalization cases, retired employees may submit their claim with the concerned Insurance Company. As and when Group Medi-Claim Policy is taken by the Company for giving medical coverage to the employees opted for Voluntary Retirement, reimbursement of premium for individual Medi-Claim policy will cease. Alternatively, in lieu of individual /group medical policy above, the employee opting for voluntary retirement may take one time lump sum towards medical expenditure equivalent to 10 times the annual premium on Medi-Claim coverage for 2 people for Rs. 1 Lakh.
ii.
iii.
iv.
v.
52
PROCEDURE: The retired employee shall take the Medi-Claim insurance policy on a yearly basis and the amount of premium, after adjustment of employee?s contribution @ Rs.150/- per person per annum will be reimbursed the concerned employee. After, renewal of Med-Claim Policy, the retired employee shall submit the insurance copy of insurance policy along with premium receipt in original to HR department for reimbursement of premium amount. On approval from the Competent Authority, HR department will process for reimbursement of premium, after adjustment of Rs. 150/- per person per annum and issue an office order for OPD treatment available in NTPC hospital only till expiry of the insurance policy.
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6. NTPC SELF CONTRIBUTORY SUPERANNUATION BENEFIT(PENSION)SCHEME
ELIGIBILITY All employees on superannuation, attaining the age of 60 years Incapacitation while in service On resignation, VRS and dismissal To the spouse of deceased employee BENEFIT The member would be entitled to pension benefits by way of purchase of pension annuities on the basis of accumulated contribution amount with the trust in respect of individual employee. The pension annuity will be purchased through LIC. The employee may opt for any one of the following mode of pension:Mode – 1 Mode – 2 Mode – 3 Mode - 4
Option for life pension ceasing on death of pensioner Option for life pension guaranteed for 10 years Option for life pension guaranteed for 15 years Option for life pension with return of corpus on death of pensioner to nominee
The member may, at his sole discretion, commute 1/3rd of the accumulated contribution amount. Member may option for refund of the accumulated amounts of contributions in case of VRS, resignation, dismissal. The amount will be refunded to the member after deducting escalation on additional contribution amount, which was paid on surrendered items. Or if, any member wants to avail the pension benefits, he is allowed for the same instead of refund of contribution.
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PROCEDURE: The beneficiary, who intends to avail the benefits under the scheme, shall apply in the following formats, to the HR department for onward submission to LIC of India through CC – Pension Trust:
Documents Required
On Superannuation
PTF - 02 PTF - 05 PTF - 06 PTF - 07 PTF - 08 PTF - 09 PTF - 12 PTF - 13 PTF - 14 PTF - 18 Discharge receipt (In Duplicate) Forwarding letter to LIC Letter of authority and declaration of nominee to LIC LIC Form Application for opting commutation Pre- receipt of commutation amount Application for non-commutation of benefits Adjustment of outstanding contributions, if opted for commutation Advance intimation sheet for pension calculation Option form for choosing pension mode
55
7. EMPLOYEES PENSION SCHEME-1995
ELIGIBILITY i. ii. iii.
iv.
On attaining the age of 58 years and On completion of a total service of 10 years or more Is not getting any other EPF Pension To the family on death of a member, while in service, provided that at least one month?s contribution has been paid into the Employee?s Pension Fund To the family on death of a member, after commencement of payment of the monthly member?s pension Three situations when pension can be applied for:SITUATION On Superannuation ? Age 58 years or more and ? At list 10 years of service DESCRIPTION The member can continue in service while receiving this pension On attaining 58 years of age, a EPF member ceases to be a member of EPS automatically Death while in service Death while not in service Permanently and totally unfit for the employment which the member was doing at the time of such disablement
v.
vi.
1
2
Death of the member
3
Permanent Disability
56
BENEFITS TO THE MEMBER ON ATAINING 58 YEARS OG AGE The amount of monthly superannuation pension, for the member joined after 16.11.1995, shall be computed as follows:-
?
The amount of monthly superannuation pension, for the members joined before 16.111995, shall be aggregate of past service pension and monthly member pension, as computed above. No pension before 50 years of age Full pension after 58 years of age
? ?
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BENEFITS TO THE FAMILY ON DEATH OF MEMBER
SITUATION
Widow /widower Pension
? ?
DESCRIPTION
The monthly Widow / widower pension shall be, equal to the monthly members pension which would have been admissible as if the member had retired on the date of death. Pension shall be payable up to the date of death of the widow or remarriage whichever is earlier.
Children Pension
? ? ?
Monthly children pension for each child shall be equal to 25 percent of the amount assemble to the widow /widower of the deceased member Monthly children pension shall be payable until the child attains the age of 25 years The monthly children pension shall be admissible to maximum of two children at a time will run from the oldest to the youngest child in that order
Pension to disabled child
?
If a member dies leaving behind son or daughter who is permanently and totally disabled, shall be entitled for payment of monthly children pension or orphan pension, as the case may be, irrespective of age and number of children in the family in addition to the children pension
Orphan pension
?
If the deceased member is not survived by any widow but is survived by children, the children shall be entitled to a monthly orphan pension equal to 75 % of the amount of the monthly widow pension. In the event of death or remarriage of the widow / widower of the sanctioning of widow /widower pension, the children shall be entitled in lieu of the monthly children pension, to a monthly orphan pension. The monthly orphan pension shall be admissible to a maximum of 2 orphans at a time and shall run in order from the oldest to the youngest orphan
?
?
Nominee Pension
?
A member who is not marriage or who does not have any living spouse and /or an eligible child may nominate a person to receive benefits. In the event of death of the member such a nominee shall be entitled to receive a monthly pension equal to the monthly widow pension. If a member dies living behind no spouse and /or an eligible child an no nomination by such deceases member exists, the widow pension shall be paid either to dependent father or dependent mother as the case may be. In the event of death of the father pensioner, the admission pension shall be extended to the surviving mother lifelong.
?
?
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BENEFIT OF SCHEME CERTIFICATE
i. ii.
This Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 year while living an establishment, and applies for this certificate in Form-10C. Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new Establishment. After attaining the age of 50 or above, the member can apply for pension by surrendering this scheme certificate(if total service is at least 10 year) This is a better choice than withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension(Death while not in service)
iii.
iv.
v.
WITHDRAWAL BENEFITS i. If not eligible for pension, member may withdraw the amount accumulated in his pension account by applying in Form-19 The calculation of this amount is based only on (I) Last average salary and (II) Service (not based on actual amount available in Pension Fund Account)
ii.
PROCEDURE i. Employee /Nominee have to apply in form – 10D at the EPF Office, through last Employer. To draw pension from a different place, furnish appropriate Bank details with account number in the application form. Pension is distributed through designated banks only (e.g. Indian Bank, SBI, Indian Overseas Bank, HDFC Bank, ICICI and Axix Bank) Concerned PF Office will issue a PPO (Pension Payment Order) in respect of all pensioners and remit amount of pension, to the bank, every month in advance, for credit of the amount of pension to the accounts of the pensioners. After receipt of PPO, the pensioner will approach the bank for identification and other formalities by the bank. After verification, the bank would credit the pension amount before 7th of each month.
ii.
iii.
iv.
v.
59
Document Required
By the Employee, on attaining 58 years of age a. b. c. d. e. f. From 10D (In 02 Copies) for non- executives and 04 copies for executives Individual passport size photograph (04 No) Joint passport size photograph with spouse (04 No) Attested copy of age proof /date of birth certificate (02 No) Age proof of children, where children below 25 years of age Certificate copy of individual /joint bank account with spouse proof of the designated bank for receiving pension (02 No) g. Annexure-K, issued by PF office, transferring pension contribution period By the widow /children /Orphan, on death of the employee a. Separate Form 10D of widow /02 eldest children below 25 years of age at a time (in duplicate) b. Attested copy of death certificate of employee member (02 No) c. Individual passport size photograph (02 No) d. Joint passport size photograph with children below 25 years of age (04 No) e. Attested copy of age proof / date of birth certificate(02 No) f. Age proof of children, where children below 25 years of age g. Certified copy of individual /joint bank account proof of the designated bank for receiving pension (02 No) h. Guardianship certificate, issued by court, where guardian is claiming pension in respect of minor children and the guardian is neither nominated by the member nor the natural guardian By HR department a. Form 4-PS (Membership details of the employee under EPS-95) b. From 5-PS (Leaving details of the employee under EPS-95) c. From 7 PS (Contributions details of last 12 months of the employee under EPS-95) d. NCP /NRS details of the employee PROCEDURE FOR TRANSFER OF EPS Where a member ceased to be employed in the Company and employment in any other establishment to which the Employee?s Funds Act, 1952 /EPS-1995 applies, the period of contribution shall be transferred to the concerned RPFC, in whose jurisdiction it is covered, in From 13 (Revised).
60
RETENTION OF COMPANY’S ACCOMODATION
An accommodation allotted to an employee may be retained on any of the events specified below and for the period indicated against each event, provided that the accommodation is required for bona fide use of the employee or members of his family:
Events
On resignation or Dismissal On Superannuation On Demise
Permissible Period for Retention of Company’s Quarters
01 month from the termination of service 04 months from the date of the superannuation 04 months from the date of demise of an employee
61
8. OTHERS BENEFITS
SUPERANNUATION IDENTITY CARD Employee on superannuation will be issued a card by respective Project /Station /office, from where he /she retires, containing name of the employee in full with Photograph, father /husband name date of birth, post last held and date of Superannuation. FAREWELL GIFT A token gift of 24 carat gold coin of 10 grams is presented while giving farewell to the retiring employees, embossing “NTPC logo” on one side and “Thank you for your contribution” on another side. TRAVELING ALLOWANCE A retiring employee will be entitled to the benefits (except transfer pay advance and cost of transportation of his conveyance), as admissible to a serving employee of his status / pay range, for self and member of his family, for proceeding to home town or any place in India Provided, however, the cost of transportation of his conveyance will be reimbursed, only if the maintenance of the same was in company?s interest prior to his retirement.
BAGGAGE CHARGES Baggage charges for transportation of house hold items by goods train, as per the grade and entitlement of the employees as per the following details:-
Grade
E4 & above E2 –E3 W9 /S3 –E1 W4 toW8 – S2 W3 & below
Permissible limit /Entitlement
240 Quintals 120 Quintals 60 Quintals 40 Quintals 20 Quintals
62
PACKING CHARGES Packing charges are also reimbursable as per following rates and subject to production of receipt:-
Grade
All non-executives E1 – E5 E5 & above
Permissible limit / Entitlement
Rs. 3000/Rs. 5250/Rs. 7500/-
Note:- In case of death while in service, family will be entitled for the same benefits as above
TRANSFER GRANT A retiring employee will also be entitled for Transfer Grant, as admissible to a serving employee of his status /pay range, subject to one month Basic pay + DA or Rs. 15000/whichever is less. ELECTRONIC FUND TRANSFER In case employee /nominee wants to receive all payments through electronic mode directly to the bank account, an authorization by the employee/ nominee, duly certified by the banker in EFT Form is required for all payments through Electronic Fund Transfer system.
MODE OF PAYMENT OF BENEFITS The payment of above benefits shall be made through Cheque or through Electronic Fund Transfer mode, to the eligible employee or legal heir, as the case may be. HANDING OVER /TAKING OVER Whenever, an employee leaves the company, especially on resignation /retirement, the controlling officer should exercise proper check and ensure that he /she must properly handover all the documents / files, booklets, drawings, photographs, papers, instruments, patents, inventories, discoveries relating to NTPC in his /her possession or in the possession of his /her secretarial staff to the person authorized by the controlling officer. An undertaking on the prescribed format should be obtained from the employee to whom No Dues Certificate is to be issued. This undertaking accompanied with the handing over /taking over notes should be sent to the HR along with No Dues Certification by the controlling officer.
63
9. EXIT INTERVIEW
ELIGIBILITY The Exit Interview system shall cover:i. All employees of NTPC, up to E-9 level ii. Employees separated on grounds of resignation or retirement on attaining the age of superannuation or retirement through VRS BENEFIT i. ii. Developing Organizational Climate conductive for employee?s development and growth, based on employee?s perception and feedback Capturing employees perception and view on various organizational aspects like job satisfaction, salary and benefits, nature of work, HR policies and system, value actualization, interpersonal relationship, work culture, etc. And initiating corrective measures for higher employee satisfaction and retention
iii.
PROCEDURE Exit Interview process shall be completed in three parts as under
art - I Part - II Exit Interview Questionnaire to be filled by the concerned employee Detailed interview by HR representative and Senior Managerial Employee Analysis of data, preparation and submission of report
Part - III
64
HR REVIEW 2011 SN Benefits Number of Beneficiaries Processed 1. 2. 3. 4. 5. 6. Farewell Function PRMS Leave Salary PF Gratuity NTPC Pension 29 29 23 29 29 29 Completed 29 29 23 29 29 29 Pending 0 0 6 (QNV) 0 0 0
65
3.4.2: PRIMARY DATA
Methodology: The methodology that was adopted to collect the primary data for my research purpose can be divided in to two stages: 1. Questionnaire: A primary research was conducted through administration of questionnaire. 2. Analysis: An overall analysis of the whole data collected through primary research was done.
Sample Size: 60 Employees Research Tools: The research tools used for the research are:
1. Questionnaire 2. Structured Interviews Keeping in view the objectives of the study, questionnaires for the employees were developed. The questionnaire that is used in the project is designed under the guidance and consultation of the faculty guide and training head of company under which I had completed my summer internship.
Questionnaire:
1. The Questionnaires used in the research is of subjective in nature. The questionnaire which was designed for the Employees has 11 questions. 2. The questionnaires carry the respondent?s department and his/her division. 3. The sample size taken of the company?s employees has left up to 5 years for their retirement.
66
CHAPTER-IV ANALYSIS AND INTERPRETATION
67
ANALYSIS AND INTERPRETATION
Are you aware of the following retirement benefits of NTPC? 1. Gratuity Fund
Rating AWARE NOT AWARE Total Respondents 58 02 % of Respondents 96.67 03.33
Employee Awareness
AWARE NOT AWARE
2. Provident Fund
Rating AWARE NOT AWARE Total Respondents 60 00 % of Respondents 100 00
Employee Awareness
AWARE NOT AWARE
68
3. Leave Salary
Rating AWARE NOT AWARE Total Respondents 59 01 % of Respondents 98.34 1.66
Employee Awareness
AWARE NOT AWARE
4. Contribution scheme for post retirement facilities
Rating AWARE NOT AWARE Total Respondents 54 06 % of Respondents 90 10
Employee Awareness
AWARE NOT AWARE
69
5. Voluntary Retirement Scheme
Rating AWARE NOT AWARE Total Respondents 34 26 % of Respondents 56.67 43.33
Employee Awareness
AWARE NOT AWARE
6. NTPC Pension Plan
Rating AWARE NOT AWARE Total Respondents 32 28 % of Respondents 53.44 46.56
Employee Awareness
AWARE NOT AWARE
70
7. Employees Pension under EPS-95
Rating AWARE NOT AWARE Total Respondents 46 14 % of Respondents 76.67 23.33
Emoloyee Awareness
AWARE NOT AWARE
Are you aware about the basic criteria for availing this retirement?
1. Gratuity Fund
Rating AWARE NOT AWARE Total Respondents 45 15 % of Respondents 75 25
Employee Awareness
AWARE NOT AWARE
71
2. Provident Fund
Rating AWARE NOT AWARE Total Respondents 46 14 % of Respondents 76.67 23.33
Employee Awareness
AWARE NOT AWARE
3. Leave Salary
Rating AWARE NOT AWARE Total Respondents 46 14 % of Respondents 76.67 23.33
Employee Awareness
AWARE NOT AWARE
72
4. Contribution scheme for post retirement facilities
Rating AWARE NOT AWARE Total Respondents 45 15 % of Respondents 75 25
Employee Awareness
AWARE NOT AWARE
5. Voluntary Retirement Scheme
Rating AWARE NOT AWARE Total Respondents 34 26 % of Respondents 56.67 43.33
Employee Awareness
AWARE NOT AWARE
73
6. NTPC Pension Plan
Rating AWARE NOT AWARE Total Respondents 27 33 % of Respondents 45 55
Employee Awareness
AWARE NOT AWARE
7. Employees Pension under EPS-95
Rating AWARE NOT AWARE Total Respondents 40 20 % of Respondents 66.57 33.33
Employee Awareness
AWARE NOT AWARE
74
Were you ever a member of any pension policy from outside NTPC?
Rating YES NO Total Respondents 7 53 % of Respondents 11.57 88.33
Sales
YES NO
I am satisfied with the following benefits given at the time of retirement1. Retirement Identity Card
Rating SATISFIED DISSATISFIED Total Respondents 52 08 % of Respondents 86.66 13.34
Retirement identity card
SATISFIED DISSATISFIED
75
2. Farewell gift
Rating SATISFIED DISSATISFIED Total Respondents 55 05 % of Respondents 91.66 08.34
Farewell Gift
SATISFIED DISSATISFIED
3. Travelling allowance
Rating SATISFIED DISSATISFIED Total Respondents 53 07 % of Respondents 88.33 11.67
Trevelling Allowance
SATISFIED DISSATISFIED
76
4. Baggage charge
Rating SATISFIED DISSATISFIED Total Respondents 54 06 % of Respondents 90 10
Baggage Charge
SATISFIED DISSATISFIED
5. Packing charge
Rating SATISFIED DISSATISFIED Total Respondents 53 07 % of Respondents 88.33 11.67
Packing Charge
Satisfied Dissatisfied
77
I am aware of various procedures for applying for gratuity in Voluntary Retirement Scheme and Superannuation
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 06 10 11 24 09
% of Respondents 10 16.66 18.33 40 15
Awareness Rating
40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Awareness Rating
78
I think my pension will be adequate for me after my retirement
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 28 12 08 11 01
% of Respondents 46.67 20 13.33 18.33 1.67
Adequacy of Pension after Retirement
50 45 40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Adequacy of Pension after Retirement
79
Limitation of leave payment scheme is acceptable to me. [Up to 240 days for Half Pay Leave (HPL) and 300 days for Earned Leave (EL)
Rating Total Respondents 15 08 02 24 11 % of Respondents 25 13.33 3.33 40 18.34
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Acceptance of Limitation of Leave Payment
40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Acceptance of Limitation of Leave Payment
80
Process of retirement benefit is easy for me
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 00 02 15 32 11
% of Respondents 00 3.33 25 53.33 18.34
Easiness of Getting retirement benefits
60 50 40 30 20 10 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Easiness of Getting retirement benefits
81
Retirement benefits are given on time as when they become due
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 00 02 06 34 18
% of Respondents 00 3.33 10 56.67 30
Pension Payment in due time
60 50 40 30 Pension Payment in due time 20 10 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
82
The Medi-Claim insurance given to me and my spouse is sufficient for my family
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 09 08 13 21 09
% of Respondents 15 13.33 21.67 35 15
Adiquacy of Medi-Claim Insurance
35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Adiquacy of Medi-Claim Insurance
83
My service is motivated by the retirement benefits of NTPC
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 01 04 13 24 18
% of Respondents 1.66 6.67 21.67 40 30
Service motivation By Retirement Benefits
40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Service motivation By Retirement Benefits
84
CHAPTER-V FINDING
85
5.1: FINDINGS
1. The survey findings on the adequacy of retirement income (including superannuation) show how important financial security is to public sector employees. Along with health, financial matters are the main motivator behind when to retire or how long to keep working. 2. Majority of Employees i.e. 81.68% are aware about the retirement benefits given by the NTPC Ltd. 3. 32.64% Employees don?t know the basic criteria for Retirement Benefits of NTPC Ltd. 4. Only 11.57% Employees have taken another pension policy outside of NTPC Ltd. 5. Maximum Employees are satisfied with other retirement benefit(Retirement Identity Card, Farewell gift, Travelling allowance, Baggage charge and Packing charge) given by NTPC Ltd at the time of their retirement, i.e. 88.99% 6. Most of the respondent?s i.e. 55% Agree including 15% Strongly Agree that they are aware of various procedures for applying for gratuity in Voluntary Retirement Scheme and Superannuation; rest, 10% Strongly Disagree, 16.16% Disagree, and 18.33% Neither Agree Nor Disagree 7. Most of the respondent?s i.e. 66.67% strongly Disagree including 20% Disagree that their pension will be adequate for after retirement life; rest, 18.33% agree, 1.67% strongly agree, and 13.33% Neither Agree nor Disagree 8. Most of the respondent?s i.e. 58.34% Agree including 18.33% Strongly Agree and one of them said “Human needs is like a infinitive” so that limitation of leave payment is acceptable for them.; rest, 25% Strongly Disagree, 13.33% Disagree, and 3.33% Neither Agree Nor Disagree. 9. Only 3.33% employees said that the process of retirement benefits used has difficult and retirement benefits are not given on time as when they become due. 10. 28.33% Employees are disagreeing that Medi-Claim insurance is adequate for retired employee and his /her spouse rest 45% are agree including 15% strongly agree and 21.67% are not sure that they are agree or disagree. 11. Most of the respondent?s i.e. 70% Agree including 30% Strongly Agree that their service is motivated by the retirement benefits of NTPC Ltd.; rest, 1.66% Strongly Disagree, 6.67% Disagree, and 21.67% Neither Agree Nor Disagree.
86
FAREWEL PICTURES INFRUNT OF NTPC GATE NO.1
87
FAREWEL GIVEN BY STAFF MEMBERS OF RETIRED EMPLOYEE’S
88
RETIRED EMPLOYEE WELCOMES BY HIS FAMILY MEMBER ON NTPC PLANT TO TOWNSHIP RAOD WITH DRUM AND FIRE WORKS
89
5.2: LIMITATIONS
? ? ? ? ?
Time period was very short. The sample collected is very small compared to the population of the company. Thus it may not bring out the exact analysis. It was difficult to convince the employees to fill the questionnaire. Most of the employees were not ready to give complete information. There is lack of time to communicate employees regarding their retirement scheme.
90
5.3: SUGGESTION
1. The accumulation of leave days should be increased. 2. Informal discussion between employers and employees should be conduct. 3. Pension should be provided on the basis of their salary. 4. Bus facility should be provided to the retired local person from NTPC to CHAMPA. 5. The process for getting pension should be made easy so that employees can get without much difficulty. 6. The leaving time of NTPC houses after retirement should be increased from 4 months to 6 months. 7. Pension to employees should be provided on timely. 8. Adequate training must be conducted to make informed the employees about the various benefits.
91
5.4: CONCLUSION
? ? ? ? The hypothesis that we have assumed is true that good retirement scheme brought by the HR department of NTPC Ltd for its employee?s. Maximum employees are aware to the procedure and criteria of retirement benefits. A retirement benefits must satisfy the retired employee and it?s satisfied the majority of NTPC?s employees. One special movement is touched me when retired employee celebrated the retirement farewell at NTPC gate number one now I would say NTPC has a great bounding among employees.
92
CHAPTER-VI REFERENCE
93
BIBLOGRAPHY
The data have been collected from:
1.
Books:
NTPC Employee handbook, A brochure on “Know your insurance, health and social
security benefits on separation” by NTPC, Korba HR 2.
Internet: www.google.com, www.ntpc.co.in
94
CHAPTER-VII ANNEXURE
95
RETIREMENT SCHEME – QUESTIONNAIRE
Instruction The following questionnaire is aimed at the finding the appropriateness of NTPC's Retirement scheme for the purpose of knowing employee's attitudes towards their retirement benefits. Kindly give us your feedback on following aspects. Please rate the following statements by putting a tick mark ( Respondent details:Grade: ______________ ) in the appropriate cell. Department: ______________
1. Are you aware of the following retirement benefits of NTPC?
? ? ? ? ? ? ? Gratuity fund Provident Fund Leave Salary Contributory Scheme for Post Retirement Medical Facilities Voluntary Retirement Scheme NTPC Pension Plan Employees Pension under EPS-95 YES YES YES YES YES YES YES NO NO NO NO NO NO NO
2. Are you aware about the basic criteria for availing this retirement?
? ? ? ? ? ? ? Gratuity fund Provident Fund Leave Salary Contributory Scheme for Post Retirement Medical Facilities Voluntary Retirement Scheme NTPC Pension Plan Employees Pension under EPS-95 YES YES YES YES YES YES YES NO NO NO NO NO NO NO
3. Were you ever a member of any pension policy from outside NTPC?
Ans. – YES NO
4. I am satisfied with the following benefits given at the time of Retirement
? ? ? ? ? Retirement Identity Card Farewell gift Travelling allowance Baggage charge YES YES YES YES YES NO NO NO NO NO
Packing charge
96
Please rate the following statements on 1-5 scale, "1" being "Strongly Disagree", by putting a tick mark ( S. NO ) in the appropriate cell. Statement Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
5
I am aware of various procedure for applying for gratuity in Voluntary Retirement Scheme and Superannuation I think my pension will be adequate for me after my retirement Limitation of leave payment scheme is acceptable to me[up to 240 days for Half Pay Leave(HPL) and 300 days for Earned Leave(EL)] Process of retirement benefit is easy for me Retirement benefits are given on time as when they become due The Medi- claim insurance given to me and my spouse is sufficient for my family My service is motivated by the retirement benefits of NTPC
6
7
8
9
10
11
SUGGESTIONS:___________________________________________________________________________ ___________________________________________________________________________ _________________________________________________________________________
97
doc_801118600.docx
This is to certify that the project work titled “STUDY OF RETIREMENT BENEFITS OF NTPC LTD” is a bona fide work of BED PRAKASH DHIRHEY; University Roll No- 10208380066 is carried out in partial fulfillment for the award of M.B.A. From MODERN INSTITUTE OF MANAGEMENT & TECHNOLOGY, KORBA (CHHATTISGARH) Study Centre Code-838 affiliated to PANJAB TECHNICAL UNIVERSITY, JALANDHAR under my guidance.
This project has not been submitted earlier for the award of any degree/diploma of any other Institution/University
A Project Report On
STUDY OF RETIREMENT BENEFITS OF NTPC LTD KORBA
Submitted in partial fulfillment of requirements for the degree of
MASTERS OF BUSINESS ADMINISTRATION (2011-2012)
Affiliated to Punjab Technical University, Jalandhar
Submitted To
Punjab Technical University, Jalandhar
STUDY CENTRE
Modern Institute of Management & Technology, Korba (C.G.) Study Center Code – 838
Submitted By
BED PRAKASH DHIRHEY SEMESTER-IV MBA (HR & MARKETING)
Roll No. 10208380066
TABLE OF CONTENT
Acknowledgement Declaration Certificate from the Guide Certificate Study Objective
Chapter
Chapter-1 1.1 1.2 1.3 1.4 Chapter-2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
Index
INTRODUCTION OF MY TOPIC
Meaning and Definition of Retirement Retirement in Specific Countries Types of Retirement Importance of Retirement Plan
Page No.
9 10 11 13 15 16 17 20 21 26 27 29 30 33 34 35
INTRODUCTION OF COMPANY
Introduction Company Vision and Mission Director?s Profile Evolution of NTPC Milestone of Company Future Plans of Company Recognitions and Awards NTPC Korba Profile Plant Process NTPC Contribution for District Administration Korba
2
Chapter-3 3.1 3.2 3.3 3.4 Chapter-4 Chapter-5 5.1 5.2 5.3 5.4 Chapter-6 6.1 Chapter-7 7.1
RESEARCH METHODOLOGY
Research Types of Research Method of Data Collection Sampling Plan
36 37 38 40 42 67 85 86 90 91 92 93 94
95 96
ANALYSIS AND INTERPRETATION FINDING
Finding Limitation Suggestion Conclusion
REFERENCE
Bibliography
Annexure
Retirement – Questionnaire
3
ACKNOWLEDGEMENT
No work is considered complete unless due indebtedness is expressed to all those, who made the work successful. Concentration, dedication, hard work & application are essential but not the only factors to achieve the desired goal. There must be supplemented by guidance, assistance and co-operation of people to make it a success. Every complete successful assignment is the result of many hands joined together. A formal statement of acknowledgement is hardly sufficient to express my gratitude towards the personalities who have helped me to undertake this training. I would like to thanks Ms. PRACHI CHAUHAN OFFICER of HRD, NTPC LTD KORBA who had supported me with her valuable time and experience in the company. Her guidance also helped a lot for the completion of the project. I am highly indebted to cooperative staff of NTPC LTD KORBA who gave me weighty guidance in the study. It was really nice experience to work in their guidance and helping me in knowing practical things, which was my main objective, before entering the corporate world. They have provided me an unconditional support during the project work. I am highly thankful to Ms. DEVJANI MOITRA HOD of MIMT for it Guidance. It has been a constant source of inspiration and it critical evaluation during our course in the institute has helped me to complete this project properly. Through this acknowledgment I would like to grab the opportunity to thank all those who helped me from the start of my training, to its end. It is warmth and efforts of my teachers, friends and well wishers who has been a source of strength and confidence for me in the endeavor. Finally, yet importantly, we would like to thank almighty for blessing me to do and complete this project.
Signature
BED PRAKASH DHIRHEY MBA SEM-IV
4
DECLARATION
I, BEDPRAKASH DHIRHEY, declare that with the exception of the suggestion and guidance received from lecturer Ms. Devjani Moitra this research project report work titled STUDY OF RETIREMENT BENEFITS OF NTPC LTD for the year 2011- 2012 is my Original work. This discussion is one which substantially the same, as this has not been submitted by me for any other examination at any other university.
Signature
Place: Date: BED PRAKASH DHIRHEY MBA SEM-IV
5
CERTIFICATE FROM THE GUIDE
This is to certify that the project work titled “STUDY OF RETIREMENT BENEFITS OF NTPC LTD” is a bona fide work of BED PRAKASH DHIRHEY; University Roll No- 10208380066 is carried out in partial fulfillment for the award of M.B.A. From MODERN INSTITUTE OF MANAGEMENT & TECHNOLOGY, KORBA (CHHATTISGARH) Study Centre Code-838 affiliated to PANJAB TECHNICAL UNIVERSITY, JALANDHAR under my guidance. This project has not been submitted earlier for the award of any degree/diploma of any other Institution/University.
Signature
Place: Date: Ms. DEVJANI MOITRA (HOD, MIMT)
6
7
STUDY – OBJECTIVES
1. To find out the awareness among employees of NTPC Ltd. Korba regarding their retirement policies and procedures. 2. To find out the employees of NTPC Ltd. Korba, are satisfied or not with their retirement benefits. 3. To know the retirement benefits provided by the NTPC Ltd. Korba.
8
CHAPTER-I INTRODUCTION OF MY TOPIC
9
1.1: RETIREMENT BENEFITS
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours, it also known as superannuation. Definition of Superannuation: An organizational program created by a company for the benefit of its employee, also referred to as a “company pension plan” Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions no longer allow the person to work anymore (by illness or accident) or as a result of legislation concerning their position.[3] In most countries, the idea of retirement is of recent origin, being introduced during the late 19th and early 20th centuries. Previously, low life expectancy and the absence of pension arrangements meant that most workers continued to work until death. Germany was the first country to introduce retirement, in 1880. Nowadays most developed countries have systems to provide pensions on retirement in old age, which may be sponsored by employers and/or the state. In many poorer countries, support for the old is still mainly provided through the family. Today, retirement with a pension is considered a right of the worker in many societies, and hard ideological, social, cultural and political battles have been fought over whether this is a right. In many western countries this right is mentioned in national constitutions.
BENEFITS Various types of facilities given to a person who has got his retirement after long service for an organization or any firms those facilities are known as retirement benefits. It includes Pension, Gratuity, Leave Payments, Medical facilities etc.
10
1.2: RETIREMENT IN SPECIFIC COUNTRIES
A person may retire at whatever age they please. However, a country's tax laws and/or state old-age pension rules usually mean that in a given country a certain age is thought of as the "standard" retirement age. The "standard" retirement age varies from country to country but it is generally between 50 and 70 (according to latest statistics, 2011). In some countries this age is different for males and females, although this has recently been challenged in some countries (e.g., Austria), and in some countries the ages are being brought into line. The table below shows the variation in eligibility ages for public old-age benefits in the United States and many European countries, according to the Organisation for Economic Co-operation and Development Country Austria Belgium Cambodia Denmark France Germany Greece Italy Netherlands Norway Spain Sweden Thailand United Kingdom United States Early retirement age 60 (57) 60 50 None 62* 65 55 57 60 62 60** 61 50 None 62 Normal Employed, Employed, Employed, Employed, retirement 55–59 60–64 65–69 70+ age 65 (60) 39% 7% 1% 0% 65 55 65 65* 67 65 60 65 67 65** 65 65 (64) 60 68 67 45% 16% 77% 51% 61% 65% 26% 53% 74% 46% 78% 77% ? 69% 66% 12% 1% 35% 12% 23% 18% 12% 22% 33% 22% 58% 46% ? 40% 43% 1% 0% 9% 1% 3% 4% 1% 3% 7% 0% 5% 7% ? 10% 20% 0% 0% 3% 0% 0% 0% 0% 0% 1% 0% 1% 2% ? 2% 5%
Switzerland 63 (61), [58]
11
India
In India - there are three sets of pension benefits. They are really good although the value may have now eroded: 1. Gratuity - at the end of service @ of 15 days salary (basic only) multiplied by number of years of service. 2. Superannuation - Varies from company to company - good companies provide Group Annuity Schemes 3. Employees Provident Fund and Family Pension - Employee Contributed at 12 % of salary per annum.
Here is some information on Superannuation Fund
1. Superannuation Fund is a retirement benefit given to employees by the Company. 2. Normally the Company has a link with agencies like LIC Superannuation Fund, where their contributions are paid. 3. The Company pays 15% of basic wages as superannuation contribution. There is no contribution from the employee. 4. This contribution is invested by the Fund in various securities as per investment pattern prescribed. 5. Interest on contributions is credited to the members account. Normally the rate of interest is equivalent to the PF interest rate. 6. On attaining the retirement age, the member is eligible to take 25% of the balance available in his/her account as a tax free benefit. 7. The balance 75% is put in an annuity fund and the agency (LIC) will pay the member a monthly/quarterly/periodic annuity returns depending on the option exercised by the member. This payment received regularly is taxable. 8. In the case of resignation of the employee, the employee has the option to transfer his amount to the new employer. If the new employer does not have a Superannuation scheme, then the employee can withdraw the amount in the account, subject to deduction of tax and approval of IT department, or retain the amount in the Fund, till the superannuation age. 9. Normally Companies do not extend the Superannuation benefits to all employees- but only to a specific category of employees - like for example Level-1 of Managers onwards.
12
1.3: TYPES OF RETIREMENT
Retirement on Superannuation:
It means retirement of an employee on reaching the maximum prescribed age limit for employment. The retirement age has been set at different age limits for various types of organizations/institutions. For instance the retirement age for employees of public sector undertakings is 60 years of age and that for scientists of the Government of India it is extendable to 64 years of age. For private sector firms the ages of retirement vary.
Voluntary Retirement:
Voluntary retirement is one of the options made available to employees of an organization under the Voluntary Retirement Scheme. Under the scheme employees are given the option to retire earlier than the superannuation age. It is mainly adopted by organizations to trim staff strength by making available monetary or other benefits.
Compulsory Retirement:
Compulsory retirement is sorted to by an organization for the dismissal or discharge of an employee. An employee can be made to compulsory retire on account of serious misconduct, theft of office property, etc.
Types of Retirement (According to department of defense and accounting of United States): There are several types of retirement:? ? ? ? ?
Regular Retirement Reserve Retirement Temporary Disability Retirement List Permanent Disability Retirement List Temporary Early Retirement Authority
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Type of Retirement Regular Retirement
Basic Eligibility Completed 20 years of active service
?
Determination Criteria Based on salary and service information submitted by member?s Branch of Service Based on salary and service information submitted by member?s Branch of Service Based on Disability Determination by Branch of Service Based on salary and service information submitted by member?s Branch of Service Based on Disability Determination by Branch of Service Based on salary and service information submitted by member?s Branch of Service Based on number of soldiers needed to maintain force readiness Based on salary and service information submitted by member's Branch of Service Based on the legislation governing this special program Based on number of soldiers needed to maintain force readiness Based on salary and service information submitted by member's Branch of Service Based on the legislation governing this special program
Reserve Retirement
Reservist with 20 years of active service who has reached age 60 Temporary disability rating, placed on retirement rolls by member's Branch of Service (max of 5 years)
?
Temporary Disability Retirement List (TDRL)
?
?
Permanent Disability Retirement List (PDRL)
Permanent disability rating, placed on the retirement rolls by member's Branch of Service
?
?
1993-2001 Temporary Early Retirement Authority (TERA)
At least 15, but less than 20 years of active service between 1993 and 2001. This program ended effective September 2002 and any future use must be approved by Congress.
?
?
?
2012-2018 Temporary Early Retirement Authority (TERA)
At least 15, but less than 20 years of active service between 2012 and 2018. This program is expected to end Dec.31, 2018. Any future use will have to be approved by Congress.
?
?
?
14
1.4: IMPORTANCE OF RETIREMENT PLAN
It is important because of three main factors –
?
Rising Life expectancy – Life expectancy has significantly increased over the
years in our country. This can mean a person can outlive his/her savings. Improper retirement planning will lead to ugly situations that will force retirees to work until they pass away to sustain themselves or live in poverty.
?
Optimum asset allocation – Asset allocation is very important to ensure that
there are enough funds to cover all living expenses throughout retirement. Many times people are just happy to have a big bank balance or invest all savings in risk free but very low yielding instruments. For example, if you have all your savings in the savings bank account that gives a mere 3.5%-4.00% interest; you are losing money if you consider the high inflation rate today.
?
Medical Expenses and Health Care for a long term – Health care costs are
rising and combined with increased life expectancy, expenses can shoot through the roof. Many people work in private organizations where no pensions are given post retirement generally. Moreover unlike countries like US, there is no government scheme or social security to take care of the health needs of the senior citizens. They have to fend for themselves or depend on relatives, children and well wishers.
Employers, government or financial institutions can set up retirement plans. They are suitable not only for retirees or senior citizens, but for anyone planning for a secure future.
15
Chapter-II ITRODUCTION OF COMPANY
16
2.1: INTODUCTION
Registered Office: NTPC BHAWAN, SCOPE COMPLEX 7, INSTITUTIONAL AREA, LODHI ROAD NEW DELHI-110003 Web site: www.ntpc.co.in
Subsidiaries
? ? ? ? ? NTPC Electric Supply Company Ltd. NTPC Hydro Ltd. NTPC Vidyut Vyapar Nigam Ltd. Kanti Bijlee Utpadan Nigam Ltd. Bhartiya Rail Bijlee Company Ltd.
Shares Listed at
? National Stock Exchange of India Ltd. ? Bombay Stock Exchange Limited
India?s largest power company, NTPC was set up in 1975 to accelerate power development in India. NTPC is emerging as a diversified power major with presence in the entire value chain of the power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 341st in the „2010, Forbes Global 2000? ranking of the World?s biggest companies. NTPC became a Maharatna company in May, 2010, one of the only four companies to be awarded this status. The total installed capacity of the company is 39,174 MW (including JVs) with 16 coal based and 7 gas based stations, located across the country. In addition under JVs, 7 stations are coal based & another station uses naphtha/LNG as fuel. 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 17.75% of the total national capacity, it contributes 27.40% of total power generation due to its focus on high efficiency.
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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. The rest is held by Institutional Investors and the Public. National Thermal Power Corporation is India's largest power utility and the sixth largest thermal power generator in the world. In 2003-04, the company had an installed capacity of 19.4 per cent in India and produced 27 per cent of total electricity generated in the country.
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NTPC is currently implementing India's largest coal based electricity plant at Sipat in Chhattisgarh. The plant will have an installed capacity of over 3,000 MW and is expected to cost over US$ 1,800 million. Coal Based Power Station [ Singraulli | Korba | Ramagundam | Farakka | Vindhyachal | Rihand | Kahalgaon | NTCPP | T alcher Kaniha | Unchahar |Talcher Thermal | Simhadri | Tanda | Badarpur | Sipat ] Gas/Liq. Fuel Based Power Stations [ Anta | Auraiya | Kawas | Dadri | Faridabad | Jhanor-Gandhar | Rajiv Gandhi CCPP Kayamkulam ] Hydro Based Power Station [ Koldam | Loharinag Pala | Tapovan Vishnugad ] Power Plants with Joint Ventures [ Durgapur | Rourkela | Bhilai | RGPPL ]
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2.2: VISION AND MISSION
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.” Core Values – BE COMMITTED B E C O M M I T T E D Business Ethics Environmentally & Economically Sustainable Customer Focus Organisational & Professional Pride Mutual Respect & Trust Motivating Self & others Innovation & Speed Total Quality for Excellence Transparent & Respected Organisation Enterprising Devoted
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2.3: DIRECTOR'S PROFILE
The Board of Directors has a combination of Executive and Non-Executive Directors.
Shri Arup Roy Choudhury, Chairman & Managing Director since September 01, 2010, has an illustrious career spanning over 32 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 is currently pursuing a doctorate in „Select Study of Project Performance Metrics in Indian Construction Industry? from IIT-Delhi. Shri Choudhury brings to NTPC the dynamism of a leader with proven abilities to achieve transformational changes. He seeks to position the Maharatna enterprise on course to become the largest and best power producer in the world. Shri Choudhury 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. Shri 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. Shri Choudhury 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.
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Shri A.K. Singhal, Director (Finance) since August 2005, a Chartered Accountant, comes with rich experience of 29 years of Corporate Finance Management. He is also a member of All India Management Association (AIMA) and Institute of Internal Auditors (IIA). Prior to joining NTPC in 2001, he was the Executive Director (Finance) in National Fertilizers Limited (NFL) as head of Finance & Accounts department
Sh. I.J.Kapoor, Director (Commercial) since December? 2008 is a Graduate in Mechanical Engineering and Masters in Business Administration (Marketing). He joined NTPC in 1978 as 3rd batch Engineering Executive Trainee (EET) and is the first EET to be on the Board of the Company. He has a rich and varied experience of over 32 years in the areas of Commercial, Engineering, Contracts & Materials Management, Project Management, Consultancy, Cost Engineering, Station Engineering and Quality Assurance & Inspection.
Shri Sushil Khanna,(60 years) is Fellow of Indian Institute of Management, Calcutta (IIM-C). He is Professor of Economics and Strategic Management at IIM-C since 1991. He has been visiting Professor in various Universities and institutes abroad. He is currently, Member, Board for Reconstruction of Public Sector Enterprises, and Independent Director on the Board of Oil India, Shipping Corp of India and Nicco Internet Ventures Limited.
Sri B.P. Singh (55 yrs), Director(Projects), is a Graduate in Mining Engineering. He has rich and varied experience both in coal as well as power sector. He started his career in 1974 in coal mining sector firstly with Indian Iron & Steel Company and subsequently joined Bharat Coking Coal Ltd. He joined NTPC Ltd. in 1981 and worked in various capacities, at Corporate Centre and Power Projects, in the areas of Fuel Management, Coal Mining & Coal Washery.
22
Shri S. P. Singh(57 Years), Director(HR), is a Graduate in Electrical Engineering from Madhav Institute of Technology & Science, JIWAJI University , Gwalior (year 1973- 74). Shri Singh joined NTPC in 1984 and worked for more than 25 years in Engineering Department, looking after various functions of Plant Engineering related Quality Assurance & Inspection, Project Layout engineering, Project Engineering etc. He served as ED (Corporate Contacts & Materials) and Chief Executive officer, of NTPC Electric Supply Company (A wholly owned subsidiary of NTPC) and lastly as ED (I/C) Human Resources during his tenure in NTPC.
Shri N.N.Misra (55 years), Director (Operations), graduated in Electrical Engineering with Honours from Regional Engineering College, Rourkela in the year 1977. Shri Misra joined NTPC in 1977 as Executive Trainee (2nd Batch). He has an experience of 33 years in NTPC out of which 28 years were in the Design Department looking after the various functions of Electrical Design and Project Engineering beginning with the first Project of NTPC.
Shri A.K. Jha has taken over as Director Technical, NTPC Sunday, 1st July, 2012. Shri Jha has more than 35 years of rich and varied experience in Power Sector in the areas of Erection and Commissioning, Project Planning & Monitoring, Project Management.
Shri S. B. Ghosh Dastidar, joined the Indian Railway Traffic Service in 1969 after completing his Bachelor of Engineering (Mech.) from Calcutta University. Over 37 years of experience on Indian Railways, he held various prestigious posts including Member Traffic, General Manager, Chief Operational Manager, Divisional Railway Manager etc. He played a pivotal role in the Indian Railway. He was awarded “Padam Shri” by Government of India for his outstanding contribution in Indian Railways.
23
Dr. M. Govinda Rao is Director, National Institute of Public Finance and Policy, New Delhi. He is also a Member, Economic Advisory Council to the Prime Minister. His past positions include Director, Institute for Social and Economic Change, Bangalore and Fellow, Research School of Pacific and Asian Studies, Australian National University, Canberra, Australia.
Shri Rajib Sekhar Sahoo is a practicing Chartered Accountant born on 1st July, 1962. He qualified as CA in the year 1987. He is one of the Principal partner of M/s.SRB & Associates, Chartered Accountants. At present he is a Director in NTPC Limited a Maharatna Company of Govt. of India, Hindustan Zinc Limited and THDC India Limited (Tehri Hydro Development Corporation India Limited) appointed by the Appointment Committee of Cabinet, Govt. of India.
Shri I.C.P. Keshari, is a Government nominee Director. He graduated with a Master of Arts degree from Delhi University and holds Junior Research Fellowship of UGC for Master of Philosophy. He is currently Joint Secretary in the Ministry of Power.
Shri Rakesh Jain, is a Government Nominee Director in NTPC. He is currently the Joint Secretary & Financial Adviser (JS&FA) in the Ministry of Power. He is Government Nominee Director on the Board of NHPC Limited and Power Grid Corporation of India Limited under the administrative control of Ministry of Power.
Shri Ajit M. Nimbalkar,(68 years), is a retired Indian Administrative Service Officer of 1967 Batch, Maharashtra Cadre. He has over 37 years of experience as IAS and has held several positions at the District, State and Central Levels. From August 2005 and till August 2011, he served as the first Chairman of the newly enacted Maharashtra Water Resources Regulatory Authority, a qausi-judicial post. Shri Nimbalkar has taken over the charge as Non-Official Part-time Director on the Board of NTPC on 20.01.2012.
24
Shri S.R. Upadhyay,(62 years), is B.Sc (Hons.) (Mining) from Indian School of Mines, Dhanbad. He has obtained 1st Class Mines Managership Certificate of Competency (Coal), 1975. He is life Member of IMMA, MGMI and was also member of prestigious Board of Mining Examinations of the Director General of Mines Safety, GOI, while in service. Shri Upadhyay has taken over the charge as Non-Official Part-time Director on the Board of NTPC on 20.01.2012.
Ms. Homai A. Daruwalla,(63 years), is a qualified Chartered Accountant. Her main areas of concern included HRD, Technological up gradations matching industry levels, Business Process Reengineering with active participation from field and customizing the products/ services as well as systems and procedures to match the market requirements. She also handled prestigious assignment as Region of India Director on the Board of „The Institute of Internal Auditors?, Florida, USA.
Shri Anol Nath Chatterji has been Director General of the National Academy of Audit and Accounts, Shimla and later became Director of the National Institute of Financial Management, Faridabad. Shri Chatterji has been Additional Deputy CAG responsible for audit of Autonomous Bodies and State Commercial Enterprises. He was promoted as Deputy CAG and was responsible for the audit of Indian Railways, Local Bodies and the Accounts of the States. Concurrently he was also Chairman Audit Board responsible for the Audit of all Central Public Sector Undertakings.
Shri T. Venkatesh,(48 years) has done his Post Graduation in Mechanical Engineering and is an Indian Administrative Service officer of 1988 batch of U.P. Cadre. He is looking after the work of Chief Vigilance Officer of our company since October, 2009.
25
2.4: EVOLUTION OF NTPC
1975
NTPC WAS SETUP IN1975 WITH 100% OWNERSHIP BY THE GOVT. OF INDIA IN THE LAST 30 YEARS; NTPC HAS GROWTH INTO THE LARGEST POWER UTILITY IN INDIA.
1997
IN 1997, GOVT. OF INDIA GRANTED NTPC STATUS OF “NAVRATNA” BEING ONE OF THE NINE JEWELS OF INDIA, INHANCING THE POWER TO THE BOARD OF DIRECTORS
2004
BECOME A LISTED COMPANY WITH MAJORITY GOVT. OWNERSHIP OF 89.5%. THIRD LARGEST BY MARKET CAPATILIZATION OF LISTED COMPANY.
2005
THE COMPANY RECHRISTENED AS NTPC LTD TO CHANGE ITS BUSINESS PORTFOLIO AND TRANSFORM ITSELF FROM A THERMAL POWER UTILITY TO AN INTEGRATED POWER UTILITY
Stakeholder Value Creation Investments philosophy aimed at maximizing returns; adherence to best practices Strong Managementtea m, Professional and dedicated organization Sound business concept & High standards of Corporate Governance
26
2.5: MILESTONE OF COMPANY
Capitation Addition Programme
Capacity at end of 10th Plan Capacity Added during 2007-08 Capacity Added during 2008-09 Capacity Added during 2009-10 Capacity Added during 2010-11 Capacity Added during 2011-12 Capacity Added during 2012-13 Total as on Today Capacity under Construction Capacity Under Bidding FR Approved Loharinagpala (4X150 MW) has been discontinued as per go I directions dated 24.12.2010
MW
27404 1740 1000 1560 2490 2820 2160 39174 16638 12041 12111
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Capacity Added During 11th Plan
Kahalgaon U# 6 & U# 7 Sipat U# 4 & U# 5 Bhilai U# 1 & U# 2 Dadri U# 5 & U# 6 Jhajjar U# 1 & U#2 Korba U# 7 Farakka U# 6 Simhadri U# 3 & U# 4 Sipat U# 1 & U# 2 RGPPL Mod-3 Vallur U# 1 In addition following added to NTPC?s capacity RGPPL(Adjusted) Kanti
MW
1000 1000 500 980 1000 500 500 1000 1320 740 500 460 110 9610
Total
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2.6: FUTURE PLAN OF COMPANY Future Capacity Additions
NTPC has formulated a long term Corporate Plan upto 2032. In line with the Corporate Plan, the capacity addition under implementation stage is presented below: PROJECT Coal 1. Indira Gandhi STPP- JV with IPGCL & HPGCL (500) 2. Mauda I( 500) 3. Vallur I -JV with TNEB ( 500) 4. Vallur Stage-I Phase-II -JV with TNEB (500) 5. Bongaigaon I (3 x 250) 6. Mauda II 7. Rihand Stage-III(500) 8. Vindhyachal-IV (500) 9. Muzaffarpur Expansion (2x195) – JV with BSEB 10. Nabinagar TPP-JV with Railways (4 x 250) 11. Barh II (2 X 660) 12. Barh I (3 X 660) 13. Solapur I (2 X 660) 14. Kudgi(3 X 800) 15. Meja (2 X 660) 16. Vindhyachal (500) Hydro 1. Koldam HEPP ( 4 x 200) 2. Tapovan Vishnugad HEPP (4 x 130) 3. Singrauli CW Discharge(Small Hydro) Solar 1. A & N Solar PV (5) 2. Dadri Solar PV (5) STATE Haryana Andhra Pradesh Tamilnadu Tamilnadu Assam Maharashta Uttar Pradesh Madhya Pradesh Bihar Bihar Bihar Bihar Maharashtra Karnataka Uttar Pradesh Madhya Pradesh Himachal Pradesh Uttarakhand Uttar Pradesh Port Blair Uttar Pradesh MW 500 500 500 500 750 1320 500 500 390 1000 1320 1980 1320 2400 1320 500 800 520 8 5 5 16,638
Total
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2.7: RECOGNITIONS AND AWARDS
NTPC has a glorious record of excellence in every field of its activities ever since its inception in 1975. Leading the country?s power sector with a vision to become a 75,000 MW company by 2017, we take pride in our people and their performance which has been acknowledged time and again at various national and international for.
HR Awards
1. 2. 3. 4. 5. 6. 7. 8. Top honors for NTPC at Best Companies to Work for 2012 in India NTPC awarded for Excellence in HR NTPC ranked 19th by the GPTW for 2011 amongst 25 top Best Companies in India NTPC ranked 6th amongst 25 top Best Employers in Country Exemplary Leadership Award to Shri Arup Roy Choudhury for People Excellence NTPC wins Star TV Talent Leadership and HR Award Two Awards for NTPC at Asia Best Employer Brand Awards Overall 7th in „India?s Best Companies to Work for 2010?, 1st amongst the PSUs and 1st in Manufacturing & Production Industry Segment. 9. Great Places to Work Award 2010 10. NCPEDP-Shell Helen Keller Award 2009 11. Vishwakarma Rashtriya Puraskar (VRP) – 2007 12. Best Companies to Work For – 2009 13. SCOPE Meritorious Award for Best Practices in Human Resource Management
Company Rankings
1. Ranked 348th in Global ranking among „Global 2000? list of companies compiled by Forbes in 2011. 2. Forbes' Global 2000 list of top listed firms 3. Platts Top 250 Global Energy Company Rankings – 2010 4. NTPC – the Most Respected Company in Power Sector 5. India?s Biggest News Makers Survey 6. Business Standard's "BS1000" companies
Safety Awards
1. National Safety Award - 2008 2. Safety Innovation Award 3. Safety Award 2009 4. Best Environment Management Station Award for Safety
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Environment Awards
1. Golden Peacock Environmental Management Award 2. CII Sustainability Award 3. 3rd Green Globe Foundation Awards 4. The Sunday Indian Special Mega Excellence – “India?s Best Environment Driven Company Award – 2009.
Performance Awards
1. 2. 3. 4. 5. 6. SCOPE Excellence Award to NTPC NTPC Finance Director bags GSBA- Top Rankers Excellence Award Top Liner Maharatna Award to NTPC SCOPE Excellence Award to Shri Arup Roy Choudhury, CMD, NTPC PSU Excellence Award for NTPC Enertia Awards for NTPC Projects & Shri D K Jain, Director (Technical), NTPC Ltd receives award for Excellence in Nuclear, Thermal (Conventional Energy) 7. Vishwakarma Award for 12 NTPC Employees 8. Prime Minister?s Shram Award to NTPC?s Misri Lal Choudhary 9. The Best Performing CFO Award 10. India Pride Awards – Energy and Power Category 11. Enertia Award 2010 12. SAFA Best Presented Accounts Awards 2008 13. CII-EXIM Excellence Award, 2010 14. National Awards for Meritorious Performance
CSR AWARDS
1. NTPC WINS GOLDEN PEACOCK AWARD FOR CORPORATE SOCIAL RESPONSIBILITY 2. NTPC Awarded for Corporate Social Responsibility & Responsiveness for 2010-11 3. NTPC Awarded for Corporate Social Responsibility 4. 2nd India Power Awards 2009 5. CII ITC Sustainability Award
Corporate Governance Awards
1. Good Corporate Citizen Award to NTPC 2. Golden Peacock Global Award for Excellence in Corporate Governance – 2009 3. ICSI National Award for Excellence in Corporate Governance 2009
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Quality Awards
1. International Gold Star Award for Quality 2009 2. NTPC Korba wins trophy for Best Employee Relations 2600-MW Korba project of NTPC Ltd has won the runner-up trophy in Employee Relations category in NTPC Swarn Shakti Awards for the year 2010-11. S.N. Ganguly, Regional Executive Director, Western Region II Headquarter, Raipur and S.K. Roy, General Manager, NTPC, Korba received the award from Arup Roy Chowdhury, CMD, and NTPC at a function in New Delhi recently.
32
2.8: NTPC KORBA PROFILE
One of its largest plants, with an installed capacity of 2,600 MW is located at Korba in Chhattisgarh. ADDRESS Telephone Fax Approved capacity Installed Capacity Location Coal Source Water Source Beneficiary States Approved Investment Unit Sizes P.O. Vikas Bhawan, Jamanipali-495 450,Dist. Korba, Chattisgarh (STD-07759) - 233021 233095 2600 MW 2600 MW Korba ( Chattisgarh) Kusmundha Block, Gevra Mines Hasdeo River Madhya Pradesh,Chattisgarh, Maharashtra, Gujarat, Goa, Daman, Diu & Nagar Haveli Rs. 2448.49 Crore Stage - I: 3x 200 MW Stage -II: 3x 500 MW Stage -III: 1x500 MW Unit -I 200 MW March 1983 Unit -II 200 MW October 1983 Unit -III 200 MW March 1984 Unit -IV 500 MW May 1987 Unit -V 500 MW March 1988 Unit -VI 500 MW March 1989 Unit -VII 500 MW December 2010
IDA OPEC KFW
Units Commissioned
International Assistance
33
2.9: PLANT PROCESS
Power Plant Process Flow Chart
Coal Transportation & Handling
SECL
MGR
CHP
Milling
Boiler
Generation & Transmission
Steam Steam
Gen Tx. Turbine Generator Electricity
Switch Yard
Ash
Chimney ESP
C U S T O M E R S
Ash Utilization
Manual Transport
Customers Auto Loading from SILO
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2.10: NTPC CONTRIBUTION FOR DISTT. ADMN. KORBA SL.NO.
1 2 3 4 5 6 7 8 9 10 11
ACTIVITY
CONST. OF DEGREE COLLEGE OF KORBA CONST. RBC ROAD UPGRADING OF KORBA-KATGHORA ROAD CONTRIBUTION FOR ROAD BETWEEN KORBACHAMPA CONTRIBUTION FOR BRIDGE AT DHENGURNALA CONST. FOR RING ROAD DARRI-BARBASPUR CONTRIBUTION FOR RAJYOTSAV, SPORT,WOMEN’S FOOTBALL CONTRIBUTION FOR TREE PLANTATION CONTRIBUTION FOR CONST. OF ROAD BRIDGE AT RBC CONST. FOR SETTING UP ENGINEERING COLLEGE OTHER (Mass marriage, Elect. etc)
AMOUNT(Lacs)
19.60 26.00 24.00 32.00 50.00 100.00 18.00 200.00 113.00 400.00 22.75
TOTAL
1005.35
35
CHAPTER-III RESEARCH MATHODOLOGY
36
3.1: RESEARCH
According to Clifford woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deduction and reaching conclusion and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. Research in common parlance refers to a search of knowledge. The term “research” refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solution towards the concerned problem or in certain generalizations for some theoretical formulation.
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data .more explicitly, the design decisions happen to be in respect of: 1. What is the study about? 2. Why is the study being made? 3. Where will the study be carried out? 4. What type of data is required? 5. Where can the required data are found? 6. What periods of time will the study include? 7. What will be the sample design? 8. What techniques of data collection will be used? 9. How will the data be analyzed? 10. In what style will the report be prepared?
37
3.2: TYPES OF RESEARCH
1. Descriptive research
Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time. ? ? ? ? ? ? ? ? Statement of the problem Identification of information needed to solve the problem Selection or development of instruments for gathering the information Identification of target population and determination of sampling procedure Design of procedure for information collection Collection of information Analysis of information Generalizations and/or predictions
2. Analytical research
Analytical research involves in-depth study and evaluation of available information in an attempt to explain complex phenomenon. The researcher has to use facts or information already available and analyze these to make a critical evaluation of the material. Subdivisions of Analytical Research: Historical research Philosophical research Review Research synthesis (Meta analysis i.e. analysis the review that already published)
3. Applied research
Applied research is a form of systematic inquiry involving the practical application of science. It accesses and uses some part of the research communities' (the academy's) accumulated theories, knowledge, methods, and techniques, for a specific, often state, business, or client driven purpose. Applied research is compared to pure research (basic research) in discussion about research ideals, methodologies, programs, and projects. Applied research deals with solving practical problems and generally employs empirical methodologies.
4. Fundamental research
"Fundamental research means experimental or theoretical work under taken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any direct practical application or use in view."
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5. Quantitative research
Quantitative research generates numerical data or data that can be converted into numbers. Quantitative research is about asking people for their opinions in a structured way so that you can produce hard facts and statistics to guide you. To get reliable statistical results, it?s important to survey people in fairly large numbers and to make sure they are a representative sample of your target market. 6. Qualitative research Qualitative research is used to explore and understand people's beliefs, experiences, attitudes, behavior and interactions. It generates non- numerical data, e.g. a patient's description of their pain rather than a measure of pain. In health care, qualitative techniques have been commonly used in research documenting the experience of chronic illness and in studies about the functioning of organizations.
7. Conceptual research
A conceptual definition is an element of the scientific research process, in which a specific concept is defined as a measurable occurrence. It basically gives you the meaning of the concept. It is mostly used in fields of philosophy, psychology, communication studies. This is especially important when conducting a content analysis.
8. Exploratory research
Exploratory research is undertaken to explore an area where little is known or to investigate the possibilities of undertaking a particular research study (feasibility study / pilot study). From the process adopted to find answer to research questions – the two approaches are: ? Structured approach ? Unstructured approach Structured approach: The structured approach to inquiry is usually classified as quantitative research. Here everything that forms the research process- objectives, design, sample, and the questions that you plan to ask of respondents- is predetermined. Unstructured approach: The unstructured approach to inquiry is usually classified as qualitative research. This approach allows flexibility in all aspects of the research process.
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3.3: METHOD OF DATA COLLECTION
1. PRIMARY DATA COLLECTION In primary data collection, you collect the data yourself using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it. There are many methods of collecting primary data and the main methods include:
? ? ? ? ? ? ?
Questionnaires Interviews Focus group interviews Observation Case-studies Diaries Critical incidents
2. SECONDARY DATA COLLECTION Secondary data are second hand information?s. They are not collected from the source as the primary data. In other words, secondary data are those which have already been collected. So they may be relatively less accurate than the primary data. Secondary data are generally used when the time of enquiry is short and the accuracy of the enquiry can be compromised to some extent. Secondary data can be collected from a number of sources which can broadly be classified into two categories.
I.
Published Sources: Mostly secondary data are collected from published sources.
Some important sources of published data are the following. a) Published reports of Central and State Governments and local bodies. b) Statistical abstracts, census reports and other reports published by different ministries of the Government. c) Official publications of the foreign Governments. d) Reports and Publications of trade associations, chambers of commerce, financial institutions etc. e) Journals, Magazines and periodicals.
f) Periodic Publications of Government organizations like Central Statistical Organization (C. S. O.), National Sample Survey Organization (NSSO). g) Reports submitted by Economists, Research Scholars, Bureaus etc. h) Published works of research institutions and Universities etc.
40
II.
Unpublished Sources:
Statistical data can also be collected from various unpublished sources. Some of the important unpublished sources from which secondary data can be collected are: a) The research works carried out by scholars, teachers and professionals. b) The records maintained by private firms and business enterprises. They may not like to publish the information considering them as business secret. c) Records and statistics maintained by various departments and offices of the Central and State Governments, Corporations, Undertakings etc.
41
3.4: SAMPLING PLAN
This is an exploratory research in which objective is to find out the Retirement Scheme in NTPC Ltd Korba. The research is done by the Survey method by doing a survey on the employees. The Stratified Random Sampling is used to select the respondents from the whole population. The survey is done by the method of questionnaire. The research has been done in five steps: 1. Literature survey 2. Formation of the questionnaire/ interview questions 3. Data collection 4. Data analysis 5. Conclusion
3.4.1: SECONDARY DATA
Methodology: The methodology that was followed for collecting secondary data was as follows: 1. Literature Review: A study of data through various articles and studies and research work conducted on this topic has been done to provide a better insight. This helped me in getting to know the real picture of my topic in regards to the company. 2. Company manual: I also went through the company manual in order to find out about their practices.
42
RETIREMENT BENEFITS IN NTPC LTD KORBA
The parting emotion of the employees and their family, on superannuation, after contributing their long and dedicated span of service for the company, needs to be treasured. Addressing this need, a brochure on “Know your Insurance, health and social security benefits on separation”, has been brought out by NTPC, Korba HR. NTPC Korba is provided to all employees the information regarding eligibility, benefit structure and procedure for availing Social Security benefits on retirement from the company. Those are given below:
1. 2. 3. 4. 5. 6. 7. 8.
EMPLOYEES GRATUITY FUND EMPLOYEES PROVIDENT FUND LEAVE SALARY CONTRIBUSION SCHEME FOR PODST RETIREMENT MEDICAL FACILITIES MEDI-CLAIM INSURANCE FOR VOLUNTARY RETIRED EMPLOYEES NTPC SELF CONTRIBUTORY SUPERANNUATION PENSION EMPLOYEES PENSION UNDER EPS-95 OTHER BENEFITS a) Identity Card on Superannuation b) Farewell Gift on Superannuation c) Travel Allowance d) Baggage Charge e) Packing Charge
43
1. GRATUITY
ELIGIBILITY: i. Gratuity shall be payable to an employee:? On completion of continuous service for not less than five year ? On superannuating or ? On retirement, resignation or termination of his service ? On death or disablement due to accident or disease Provided that the completion of continuous service of five years, shall not be necessary, where the termination of the employment of any employee is due to death or disablement. Provided further that in the case of death of the employee, gratuity payable to him, shall be paid to his nominee, or if no nomination has been made, to his heirs.
ii.
iii.
BENEFITS: i. The amount of gratuity shall be equal to fifteen days wages last drawn for every completed year of service or part thereof, in excess of six months, subject to maximum of Rs. 10 lakes The amount of gratuity shall be computed in the following manner:
ii.
In case of death of an employee, amount of gratuity will be calculated as follows:-
Period of Continuous Service
Up to 1 Year More than 1 year up to 5 year More than 5 year but up to 20 year More than 20 year
Amount of Gratuity
4 time 15 days wages 12 times 15 days wages 24 times 15 days wages Half month?s wages for completed half year of service subject to maximum of 66 times 15 days wages.
44
i.
Gratuity payable to an employee shall be partially forfeited, where the services of an employee has been terminated for any act of wilful omission or negligence causing any damage or loss to, or destruction of property belonging to the company, to the extent of the damage or loss so caused. The gratuity payable to an employee shall be wholly forfeited, if the services of such employee has been terminated for his riotous or disorderly conduct or any other act of violence on his part, Or if, services of such employee has been terminated for any act which constitutes an offence involving moral turpitude that such offence is committed by him in the course of his employment. Income tax or any other tax/duty, if any, payable on the amount of gratuity shall not be borne by the fund but shall be deducted from the gratuity amount payable.
ii.
iii.
PROCEDURE i. An employee who is eligible for payment of gratuity shall apply to HR department, within 30 days from the gratuity becomes payable in Form E. A nominee of an employee who is eligible for payment of gratuity shall apply to HR department within 30 days from the date the gratuity becomes payable to him in Form F. A legal heir of an employee who is eligible for the payment of gratuity shall apply to HR department within one year from the gratuity becomes payable to him in Form G. After receipt of application from the employee (verification of nomination details in case of death of an employee), an approval for payment of gratuity from the Competent Authority shall be accorded.
ii.
iii.
iv.
45
2. PROVIDENT FUND
ELIGIBILITY: i. The employee is entitle to receive lump sum payment of accumulations with interest on the following occasions:? ? ? ? ? On Superannuation or On Resignation, VRS or termination of service or On death or total/ permanent disablement due to accident or disease or Termination of the job and remaining unemployed for over 02 months or Leaving the job from a covered establishment and joining an establishment not covered under EPF Act
ii.
Provided that in case of death of the employee, final settlement of PF payable to him, shall be paid to his nominee, or if no nomination has been made, to his legal heirs. BENEFIT The amount of PF shall be equal to the total accumulations (employee and employer contribution), including interest thereon, available to his PF account. PROCEDURE i. An employee, who is eligible for payment of PF, shall apply in Form C to HR department. For transfer of PF accumulations, employee has to apply in Form-13(Revised), through the new Employer at the EPF Office from which transfer is sought, clearly stating New and Old EPF Numbers and obtain new EPF Number from the New Employer. New EPF Number will be allotted by the New Employer, not by EPFO. Income tax or any other tax/ duty, if any, payable in the amount of PF, shall not be borne by the trust but shall be deducted from the amount payable. Whenever any provision of NTPC Rules are found silent, the provisions of Employees provident fund & Miscellaneous Provisions Act, and 1952 shall apply. After receipt of application from the employee (verification of nomination details in case of death of an employee), an intimation to finance department for payment of PF shall be forwarded.
ii.
iii.
iv.
v.
46
3. LEAVE SALARY
ELIGIBILITY: i. Final settlement of EL and HPL balance, shall be payable to an employee ? On superannuation or ? On resignation or cessation of service, other than on grounds of disciplinary action ? On death while in service. Provided that the encashment of half pay leave is allowed in full, subject to a maximum of 240 days, on the above occasions, only if the concerned employee has completed a minimum of 10 years of continuous service in Central/ state Government/ PSU, out of which a minimum of 5 years in NTPC Provided that the encashment of Earned Leave is allowed in full, including non- in cashable portion, subject to a maximum of 300 days of the above occasions Provided further that, in case of death of the employee, final settlement towards balance EL and HPL, shall be paid to his nominee, or if no nomination has been made, to his legal heirs.
ii.
iii.
iv.
BENEFIT For the purpose of encasement of EL and HPL, last down Basic Pay and DA are taken into account and shall be computed as follows:-
PROCEDURE The Leave Salary Payment shall be processed by HR department, only after No Dues Certification from all concerned, including vacation of Company?s Quarter and final payment toward leave salary shall be released by Finance department, only after adjustment of all outstanding dues (if any)of the employee concerned.
47
4. POST RETIREMENT MEDICAL FACILITY FOR EMPLOYEE
ELIGIBILITY: i. All employees on superannuation or on separation on medical grounds, with minimum10 years of continuous service in Government / PSU with minimum of 05 years in NTPC Employees prematurity retiring on attaining 58 years with minimum 20 years of service in NTPC To the spouse of deceased employee In case of death of retired employee, who has been availing the benefits under the Scheme, his /her spouse will continue to avail benefits under the Scheme, subject to his /her continuing to meet the terms and conditions of the Scheme. Board appointees on completion of first term, below board level executives, completed 57 years of age, with minimum 20 years of service in NTPC and resigning to join regulatory commission, provided no medical facility are otherwise availed.
ii.
iii. iv.
v.
BENEFITS The medical benefits to the beneficiary, under the Scheme, will be admissible for the treatment taken only in India and would be as under: Where Company’s own hospital /fully fledged dispensary is available The beneficiary residing at place where the Company has its own hospitals /fully fledged dispensaries, would be allowed medical treatment facilities, including medicines, as available in such hospitals /dispensaries only. Where Company’s own hospital /fully fledged dispensary is not available The beneficiary, who resides at place where the Where the Company does not have its own hospital /fully fledged dispensaries, reimbursement of medical expenses incurred, shall be regulated as under: For Indoor Treatment – Reimbursement of Medical expenses incurred for Indoor treatment will be allowed, subject to the condition that the treatment is obtained in Government hospitals or other hospitals notified by the Company. However, the non-executives employees separated prior to 01.01.2007 shall be entitled to IPD treatment facility for a maximum amount of Rs.5 lakes for life for self and spouse. After the demise of one of the spouses, the ceiling limit shall be reduced to 50% of the balance of such ceiling remaining unutilized at the time of death of the spouse with a maximum of Rs. 2.5 lakes for the surviving spouse.
48
For Out Patient /Domiciliary Treatment – Reimbursement of medical expenses shall be allowed as per Company?s Medical Attendance and Treatment Rules for serving employees. The annual ceiling for reimbursement of expenditure incurred for Outpatient /Domiciliary treatment would be equivalent to the maximum of the Pay Scale of a serving employee of equivalent status /rank, on the last day of the relevant financial year. The maximum ceiling for the employees who are enrolled for the benefits under the Scheme, for the first year after their retirement will however, be proportionate to the number of months for which the benefits will be availed after retirement up to 31st March of that Financial year. The entitlement of Medical benefits for the beneficiary, as above, shall be same as admissible to serving employees of equivalent status /rank and shall be allowed as per Company?s Medical Attendance and Treatment Rules as applicable for serving employees, within India. TERMS AND CONDITIONS FOR AVAILING PRMS BENEFITS The benefits under the Scheme would be available to the concerned employee, only if the employee concerned and his /her spouse is not availing any medical facilities from or through the Central /State Government /Public Sector Undertaking /Quasi Government Body. ? Admission Slip – Admission slip may be issued for treatment of beneficiary under contributory scheme of PRMS, subject to the following conditions:i. A deposit of Rs. 5000/-(Rupees five thousand only), may be taken from the beneficiary to take care of inadmissible expenditure incurred by the beneficiary, during the treatment in notified hospital, which will be refunded after adjusting any inadmissible charges within the 7 days of the receipt of the bill from the hospital. Only after the deposit of Rs. 5000/-, admission slip to the notified hospitals, may be issued a per format at Annexure-A. For the purpose CMOs and HOPs in case of Regional Headquarters will be the authorized signatories. The system of sectioning advance payment to the notified hospitals shall be discounted.
ii.
iii.
iv.
49
? Contribution – Eligible beneficiary who intended to avail the benefits under the Scheme shall be required to pay contribution at the following rates, Subject to revision from time to time.
Contribution Where Company’s hospital available Where Company’s hospital not available Non-Executive 7,200/12,000/Executive 14,400/-
Contribution once paid shall not be refundable even if the benefits under the scheme are not availed by the beneficiary or in the event of death of beneficiary /beneficiaries before the expiry of the term for which the contributions have been paid. Where a retired employee does not become a member of the Scheme or /and pay his contribution, he cannot seek any advantage by making contribution for the past. The Medical Card will become invalid if any of the eligibility conditions ceases /fulfilled by the beneficiaries and in that case, the contribution paid for the unexpired period if any will not be refundable.
PROCEDURE FOR REGISTRATION OF BENEFICIARY i. The retired employee, who intend to avail the Medical benefits under the Scheme for self and spouse, shall apply in Annexure-B (02 copies), affixed with a join passport size photograph of self and spouse, to the HR department, from where he has retired, indicating inter-alia the NTPC Project /Unit where he wants to register himself for availing the facilities, giving his residential address. The spouse of the deceased employee, who intends to avail the Medical benefits under the scheme, shall apply in Annexure-B (02 copies), affixed with a passport size photograph, to the HR department, where he /she wants to register for availing the facilities, giving his /her residential address. In the event, the beneficiary wants to change the place from where he has to avail the benefits: he will have to approach the Project /Unit from where he is availing the facilities, for change. After receipt of application from the beneficiary, and receipt of onetime contribution, an approval from the Competent Authority shall be accorded and necessary Order will be issued by concerned HR department.
ii.
iii.
iv.
50
PROCEDURE FOR REIMBURSEMENT OF MEDICAL EXPENDITURE i. For claiming reimbursement of medical expenditure, incurred by the beneficiaries, the beneficiary shall prefer claim not more than once in a six month, to the Finance Department of the Project / Unit concerned in the from prescribed as Annexure –C. The claim will be processed and reimbursed to the beneficiary by the concerned Finance Department, after verifying the validity of the Medical Card and the benefits admissible to the beneficiary concerned under the scheme. In case any doubt arises regarding the genuineness or otherwise of the claims preferred by the beneficiary, the Company reserves the right to direct the beneficiary to present himself before a Medical Board are received in this regard. If no reasonable belief or on the basis of recommendations of the Medical Board, it is found that there is misuse of the benefits under the Scheme by any beneficiary, he may be summarily debarred from the benefits under the Scheme. The Company reserves the right to amend, modify or discontinue the scheme, in part or full.
ii.
iii.
iv.
v.
51
5. MEDI-CLAIM INSURANCE
ELIGIBILITY: i. Employees, retired under Voluntary Retirement Scheme and taken Medi-claim Insurance Policy in lieu of Contributory Post Retirement Medical Facilities. The coverage will be for retired employee and his /her spouse
ii.
BENEFIT i. The retired employee and his /her spouse will be provided insurance coverage for an amount of Rs. 1 Lakh each for self and spouse, per annum, subject to the condition that retired employee and his /her spouse is not reimbursed medical expenses from any other Company /Agency. As in individual Medi-claim insurance policies, there is no provision for OPD treatment and it covers only treatment for IPD /hospitalization, the employee opted for VR may be allowed to avail of the OPD treatment in addition to Medi-Claim Policy(consultation, medicines, diagnostic/surgical procedures etc.) available in NTPC own hospitals /dispensaries, free of cost. Reimbursement of OPD treatment expenses towards consultation, medicines etc. Will not be admissible. For reimbursement of IPD treatment expenses towards hospitalization cases, retired employees may submit their claim with the concerned Insurance Company. As and when Group Medi-Claim Policy is taken by the Company for giving medical coverage to the employees opted for Voluntary Retirement, reimbursement of premium for individual Medi-Claim policy will cease. Alternatively, in lieu of individual /group medical policy above, the employee opting for voluntary retirement may take one time lump sum towards medical expenditure equivalent to 10 times the annual premium on Medi-Claim coverage for 2 people for Rs. 1 Lakh.
ii.
iii.
iv.
v.
52
PROCEDURE: The retired employee shall take the Medi-Claim insurance policy on a yearly basis and the amount of premium, after adjustment of employee?s contribution @ Rs.150/- per person per annum will be reimbursed the concerned employee. After, renewal of Med-Claim Policy, the retired employee shall submit the insurance copy of insurance policy along with premium receipt in original to HR department for reimbursement of premium amount. On approval from the Competent Authority, HR department will process for reimbursement of premium, after adjustment of Rs. 150/- per person per annum and issue an office order for OPD treatment available in NTPC hospital only till expiry of the insurance policy.
53
6. NTPC SELF CONTRIBUTORY SUPERANNUATION BENEFIT(PENSION)SCHEME
ELIGIBILITY All employees on superannuation, attaining the age of 60 years Incapacitation while in service On resignation, VRS and dismissal To the spouse of deceased employee BENEFIT The member would be entitled to pension benefits by way of purchase of pension annuities on the basis of accumulated contribution amount with the trust in respect of individual employee. The pension annuity will be purchased through LIC. The employee may opt for any one of the following mode of pension:Mode – 1 Mode – 2 Mode – 3 Mode - 4
Option for life pension ceasing on death of pensioner Option for life pension guaranteed for 10 years Option for life pension guaranteed for 15 years Option for life pension with return of corpus on death of pensioner to nominee
The member may, at his sole discretion, commute 1/3rd of the accumulated contribution amount. Member may option for refund of the accumulated amounts of contributions in case of VRS, resignation, dismissal. The amount will be refunded to the member after deducting escalation on additional contribution amount, which was paid on surrendered items. Or if, any member wants to avail the pension benefits, he is allowed for the same instead of refund of contribution.
54
PROCEDURE: The beneficiary, who intends to avail the benefits under the scheme, shall apply in the following formats, to the HR department for onward submission to LIC of India through CC – Pension Trust:
Documents Required
On Superannuation
PTF - 02 PTF - 05 PTF - 06 PTF - 07 PTF - 08 PTF - 09 PTF - 12 PTF - 13 PTF - 14 PTF - 18 Discharge receipt (In Duplicate) Forwarding letter to LIC Letter of authority and declaration of nominee to LIC LIC Form Application for opting commutation Pre- receipt of commutation amount Application for non-commutation of benefits Adjustment of outstanding contributions, if opted for commutation Advance intimation sheet for pension calculation Option form for choosing pension mode
55
7. EMPLOYEES PENSION SCHEME-1995
ELIGIBILITY i. ii. iii.
iv.
On attaining the age of 58 years and On completion of a total service of 10 years or more Is not getting any other EPF Pension To the family on death of a member, while in service, provided that at least one month?s contribution has been paid into the Employee?s Pension Fund To the family on death of a member, after commencement of payment of the monthly member?s pension Three situations when pension can be applied for:SITUATION On Superannuation ? Age 58 years or more and ? At list 10 years of service DESCRIPTION The member can continue in service while receiving this pension On attaining 58 years of age, a EPF member ceases to be a member of EPS automatically Death while in service Death while not in service Permanently and totally unfit for the employment which the member was doing at the time of such disablement
v.
vi.
1
2
Death of the member
3
Permanent Disability
56
BENEFITS TO THE MEMBER ON ATAINING 58 YEARS OG AGE The amount of monthly superannuation pension, for the member joined after 16.11.1995, shall be computed as follows:-
?
The amount of monthly superannuation pension, for the members joined before 16.111995, shall be aggregate of past service pension and monthly member pension, as computed above. No pension before 50 years of age Full pension after 58 years of age
? ?
57
BENEFITS TO THE FAMILY ON DEATH OF MEMBER
SITUATION
Widow /widower Pension
? ?
DESCRIPTION
The monthly Widow / widower pension shall be, equal to the monthly members pension which would have been admissible as if the member had retired on the date of death. Pension shall be payable up to the date of death of the widow or remarriage whichever is earlier.
Children Pension
? ? ?
Monthly children pension for each child shall be equal to 25 percent of the amount assemble to the widow /widower of the deceased member Monthly children pension shall be payable until the child attains the age of 25 years The monthly children pension shall be admissible to maximum of two children at a time will run from the oldest to the youngest child in that order
Pension to disabled child
?
If a member dies leaving behind son or daughter who is permanently and totally disabled, shall be entitled for payment of monthly children pension or orphan pension, as the case may be, irrespective of age and number of children in the family in addition to the children pension
Orphan pension
?
If the deceased member is not survived by any widow but is survived by children, the children shall be entitled to a monthly orphan pension equal to 75 % of the amount of the monthly widow pension. In the event of death or remarriage of the widow / widower of the sanctioning of widow /widower pension, the children shall be entitled in lieu of the monthly children pension, to a monthly orphan pension. The monthly orphan pension shall be admissible to a maximum of 2 orphans at a time and shall run in order from the oldest to the youngest orphan
?
?
Nominee Pension
?
A member who is not marriage or who does not have any living spouse and /or an eligible child may nominate a person to receive benefits. In the event of death of the member such a nominee shall be entitled to receive a monthly pension equal to the monthly widow pension. If a member dies living behind no spouse and /or an eligible child an no nomination by such deceases member exists, the widow pension shall be paid either to dependent father or dependent mother as the case may be. In the event of death of the father pensioner, the admission pension shall be extended to the surviving mother lifelong.
?
?
58
BENEFIT OF SCHEME CERTIFICATE
i. ii.
This Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 year while living an establishment, and applies for this certificate in Form-10C. Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new Establishment. After attaining the age of 50 or above, the member can apply for pension by surrendering this scheme certificate(if total service is at least 10 year) This is a better choice than withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension(Death while not in service)
iii.
iv.
v.
WITHDRAWAL BENEFITS i. If not eligible for pension, member may withdraw the amount accumulated in his pension account by applying in Form-19 The calculation of this amount is based only on (I) Last average salary and (II) Service (not based on actual amount available in Pension Fund Account)
ii.
PROCEDURE i. Employee /Nominee have to apply in form – 10D at the EPF Office, through last Employer. To draw pension from a different place, furnish appropriate Bank details with account number in the application form. Pension is distributed through designated banks only (e.g. Indian Bank, SBI, Indian Overseas Bank, HDFC Bank, ICICI and Axix Bank) Concerned PF Office will issue a PPO (Pension Payment Order) in respect of all pensioners and remit amount of pension, to the bank, every month in advance, for credit of the amount of pension to the accounts of the pensioners. After receipt of PPO, the pensioner will approach the bank for identification and other formalities by the bank. After verification, the bank would credit the pension amount before 7th of each month.
ii.
iii.
iv.
v.
59
Document Required
By the Employee, on attaining 58 years of age a. b. c. d. e. f. From 10D (In 02 Copies) for non- executives and 04 copies for executives Individual passport size photograph (04 No) Joint passport size photograph with spouse (04 No) Attested copy of age proof /date of birth certificate (02 No) Age proof of children, where children below 25 years of age Certificate copy of individual /joint bank account with spouse proof of the designated bank for receiving pension (02 No) g. Annexure-K, issued by PF office, transferring pension contribution period By the widow /children /Orphan, on death of the employee a. Separate Form 10D of widow /02 eldest children below 25 years of age at a time (in duplicate) b. Attested copy of death certificate of employee member (02 No) c. Individual passport size photograph (02 No) d. Joint passport size photograph with children below 25 years of age (04 No) e. Attested copy of age proof / date of birth certificate(02 No) f. Age proof of children, where children below 25 years of age g. Certified copy of individual /joint bank account proof of the designated bank for receiving pension (02 No) h. Guardianship certificate, issued by court, where guardian is claiming pension in respect of minor children and the guardian is neither nominated by the member nor the natural guardian By HR department a. Form 4-PS (Membership details of the employee under EPS-95) b. From 5-PS (Leaving details of the employee under EPS-95) c. From 7 PS (Contributions details of last 12 months of the employee under EPS-95) d. NCP /NRS details of the employee PROCEDURE FOR TRANSFER OF EPS Where a member ceased to be employed in the Company and employment in any other establishment to which the Employee?s Funds Act, 1952 /EPS-1995 applies, the period of contribution shall be transferred to the concerned RPFC, in whose jurisdiction it is covered, in From 13 (Revised).
60
RETENTION OF COMPANY’S ACCOMODATION
An accommodation allotted to an employee may be retained on any of the events specified below and for the period indicated against each event, provided that the accommodation is required for bona fide use of the employee or members of his family:
Events
On resignation or Dismissal On Superannuation On Demise
Permissible Period for Retention of Company’s Quarters
01 month from the termination of service 04 months from the date of the superannuation 04 months from the date of demise of an employee
61
8. OTHERS BENEFITS
SUPERANNUATION IDENTITY CARD Employee on superannuation will be issued a card by respective Project /Station /office, from where he /she retires, containing name of the employee in full with Photograph, father /husband name date of birth, post last held and date of Superannuation. FAREWELL GIFT A token gift of 24 carat gold coin of 10 grams is presented while giving farewell to the retiring employees, embossing “NTPC logo” on one side and “Thank you for your contribution” on another side. TRAVELING ALLOWANCE A retiring employee will be entitled to the benefits (except transfer pay advance and cost of transportation of his conveyance), as admissible to a serving employee of his status / pay range, for self and member of his family, for proceeding to home town or any place in India Provided, however, the cost of transportation of his conveyance will be reimbursed, only if the maintenance of the same was in company?s interest prior to his retirement.
BAGGAGE CHARGES Baggage charges for transportation of house hold items by goods train, as per the grade and entitlement of the employees as per the following details:-
Grade
E4 & above E2 –E3 W9 /S3 –E1 W4 toW8 – S2 W3 & below
Permissible limit /Entitlement
240 Quintals 120 Quintals 60 Quintals 40 Quintals 20 Quintals
62
PACKING CHARGES Packing charges are also reimbursable as per following rates and subject to production of receipt:-
Grade
All non-executives E1 – E5 E5 & above
Permissible limit / Entitlement
Rs. 3000/Rs. 5250/Rs. 7500/-
Note:- In case of death while in service, family will be entitled for the same benefits as above
TRANSFER GRANT A retiring employee will also be entitled for Transfer Grant, as admissible to a serving employee of his status /pay range, subject to one month Basic pay + DA or Rs. 15000/whichever is less. ELECTRONIC FUND TRANSFER In case employee /nominee wants to receive all payments through electronic mode directly to the bank account, an authorization by the employee/ nominee, duly certified by the banker in EFT Form is required for all payments through Electronic Fund Transfer system.
MODE OF PAYMENT OF BENEFITS The payment of above benefits shall be made through Cheque or through Electronic Fund Transfer mode, to the eligible employee or legal heir, as the case may be. HANDING OVER /TAKING OVER Whenever, an employee leaves the company, especially on resignation /retirement, the controlling officer should exercise proper check and ensure that he /she must properly handover all the documents / files, booklets, drawings, photographs, papers, instruments, patents, inventories, discoveries relating to NTPC in his /her possession or in the possession of his /her secretarial staff to the person authorized by the controlling officer. An undertaking on the prescribed format should be obtained from the employee to whom No Dues Certificate is to be issued. This undertaking accompanied with the handing over /taking over notes should be sent to the HR along with No Dues Certification by the controlling officer.
63
9. EXIT INTERVIEW
ELIGIBILITY The Exit Interview system shall cover:i. All employees of NTPC, up to E-9 level ii. Employees separated on grounds of resignation or retirement on attaining the age of superannuation or retirement through VRS BENEFIT i. ii. Developing Organizational Climate conductive for employee?s development and growth, based on employee?s perception and feedback Capturing employees perception and view on various organizational aspects like job satisfaction, salary and benefits, nature of work, HR policies and system, value actualization, interpersonal relationship, work culture, etc. And initiating corrective measures for higher employee satisfaction and retention
iii.
PROCEDURE Exit Interview process shall be completed in three parts as under
art - I Part - II Exit Interview Questionnaire to be filled by the concerned employee Detailed interview by HR representative and Senior Managerial Employee Analysis of data, preparation and submission of reportPart - III
64
HR REVIEW 2011 SN Benefits Number of Beneficiaries Processed 1. 2. 3. 4. 5. 6. Farewell Function PRMS Leave Salary PF Gratuity NTPC Pension 29 29 23 29 29 29 Completed 29 29 23 29 29 29 Pending 0 0 6 (QNV) 0 0 0
65
3.4.2: PRIMARY DATA
Methodology: The methodology that was adopted to collect the primary data for my research purpose can be divided in to two stages: 1. Questionnaire: A primary research was conducted through administration of questionnaire. 2. Analysis: An overall analysis of the whole data collected through primary research was done.
Sample Size: 60 Employees Research Tools: The research tools used for the research are:
1. Questionnaire 2. Structured Interviews Keeping in view the objectives of the study, questionnaires for the employees were developed. The questionnaire that is used in the project is designed under the guidance and consultation of the faculty guide and training head of company under which I had completed my summer internship.
Questionnaire:
1. The Questionnaires used in the research is of subjective in nature. The questionnaire which was designed for the Employees has 11 questions. 2. The questionnaires carry the respondent?s department and his/her division. 3. The sample size taken of the company?s employees has left up to 5 years for their retirement.
66
CHAPTER-IV ANALYSIS AND INTERPRETATION
67
ANALYSIS AND INTERPRETATION
Are you aware of the following retirement benefits of NTPC? 1. Gratuity Fund
Rating AWARE NOT AWARE Total Respondents 58 02 % of Respondents 96.67 03.33
Employee Awareness
AWARE NOT AWARE
2. Provident Fund
Rating AWARE NOT AWARE Total Respondents 60 00 % of Respondents 100 00
Employee Awareness
AWARE NOT AWARE
68
3. Leave Salary
Rating AWARE NOT AWARE Total Respondents 59 01 % of Respondents 98.34 1.66
Employee Awareness
AWARE NOT AWARE
4. Contribution scheme for post retirement facilities
Rating AWARE NOT AWARE Total Respondents 54 06 % of Respondents 90 10
Employee Awareness
AWARE NOT AWARE
69
5. Voluntary Retirement Scheme
Rating AWARE NOT AWARE Total Respondents 34 26 % of Respondents 56.67 43.33
Employee Awareness
AWARE NOT AWARE
6. NTPC Pension Plan
Rating AWARE NOT AWARE Total Respondents 32 28 % of Respondents 53.44 46.56
Employee Awareness
AWARE NOT AWARE
70
7. Employees Pension under EPS-95
Rating AWARE NOT AWARE Total Respondents 46 14 % of Respondents 76.67 23.33
Emoloyee Awareness
AWARE NOT AWARE
Are you aware about the basic criteria for availing this retirement?
1. Gratuity Fund
Rating AWARE NOT AWARE Total Respondents 45 15 % of Respondents 75 25
Employee Awareness
AWARE NOT AWARE
71
2. Provident Fund
Rating AWARE NOT AWARE Total Respondents 46 14 % of Respondents 76.67 23.33
Employee Awareness
AWARE NOT AWARE
3. Leave Salary
Rating AWARE NOT AWARE Total Respondents 46 14 % of Respondents 76.67 23.33
Employee Awareness
AWARE NOT AWARE
72
4. Contribution scheme for post retirement facilities
Rating AWARE NOT AWARE Total Respondents 45 15 % of Respondents 75 25
Employee Awareness
AWARE NOT AWARE
5. Voluntary Retirement Scheme
Rating AWARE NOT AWARE Total Respondents 34 26 % of Respondents 56.67 43.33
Employee Awareness
AWARE NOT AWARE
73
6. NTPC Pension Plan
Rating AWARE NOT AWARE Total Respondents 27 33 % of Respondents 45 55
Employee Awareness
AWARE NOT AWARE
7. Employees Pension under EPS-95
Rating AWARE NOT AWARE Total Respondents 40 20 % of Respondents 66.57 33.33
Employee Awareness
AWARE NOT AWARE
74
Were you ever a member of any pension policy from outside NTPC?
Rating YES NO Total Respondents 7 53 % of Respondents 11.57 88.33
Sales
YES NO
I am satisfied with the following benefits given at the time of retirement1. Retirement Identity Card
Rating SATISFIED DISSATISFIED Total Respondents 52 08 % of Respondents 86.66 13.34
Retirement identity card
SATISFIED DISSATISFIED
75
2. Farewell gift
Rating SATISFIED DISSATISFIED Total Respondents 55 05 % of Respondents 91.66 08.34
Farewell Gift
SATISFIED DISSATISFIED
3. Travelling allowance
Rating SATISFIED DISSATISFIED Total Respondents 53 07 % of Respondents 88.33 11.67
Trevelling Allowance
SATISFIED DISSATISFIED
76
4. Baggage charge
Rating SATISFIED DISSATISFIED Total Respondents 54 06 % of Respondents 90 10
Baggage Charge
SATISFIED DISSATISFIED
5. Packing charge
Rating SATISFIED DISSATISFIED Total Respondents 53 07 % of Respondents 88.33 11.67
Packing Charge
Satisfied Dissatisfied
77
I am aware of various procedures for applying for gratuity in Voluntary Retirement Scheme and Superannuation
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 06 10 11 24 09
% of Respondents 10 16.66 18.33 40 15
Awareness Rating
40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Awareness Rating
78
I think my pension will be adequate for me after my retirement
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 28 12 08 11 01
% of Respondents 46.67 20 13.33 18.33 1.67
Adequacy of Pension after Retirement
50 45 40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Adequacy of Pension after Retirement
79
Limitation of leave payment scheme is acceptable to me. [Up to 240 days for Half Pay Leave (HPL) and 300 days for Earned Leave (EL)
Rating Total Respondents 15 08 02 24 11 % of Respondents 25 13.33 3.33 40 18.34
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Acceptance of Limitation of Leave Payment
40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Acceptance of Limitation of Leave Payment
80
Process of retirement benefit is easy for me
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 00 02 15 32 11
% of Respondents 00 3.33 25 53.33 18.34
Easiness of Getting retirement benefits
60 50 40 30 20 10 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Easiness of Getting retirement benefits
81
Retirement benefits are given on time as when they become due
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 00 02 06 34 18
% of Respondents 00 3.33 10 56.67 30
Pension Payment in due time
60 50 40 30 Pension Payment in due time 20 10 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
82
The Medi-Claim insurance given to me and my spouse is sufficient for my family
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 09 08 13 21 09
% of Respondents 15 13.33 21.67 35 15
Adiquacy of Medi-Claim Insurance
35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Adiquacy of Medi-Claim Insurance
83
My service is motivated by the retirement benefits of NTPC
Rating
Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
Total Respondents 01 04 13 24 18
% of Respondents 1.66 6.67 21.67 40 30
Service motivation By Retirement Benefits
40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree Service motivation By Retirement Benefits
84
CHAPTER-V FINDING
85
5.1: FINDINGS
1. The survey findings on the adequacy of retirement income (including superannuation) show how important financial security is to public sector employees. Along with health, financial matters are the main motivator behind when to retire or how long to keep working. 2. Majority of Employees i.e. 81.68% are aware about the retirement benefits given by the NTPC Ltd. 3. 32.64% Employees don?t know the basic criteria for Retirement Benefits of NTPC Ltd. 4. Only 11.57% Employees have taken another pension policy outside of NTPC Ltd. 5. Maximum Employees are satisfied with other retirement benefit(Retirement Identity Card, Farewell gift, Travelling allowance, Baggage charge and Packing charge) given by NTPC Ltd at the time of their retirement, i.e. 88.99% 6. Most of the respondent?s i.e. 55% Agree including 15% Strongly Agree that they are aware of various procedures for applying for gratuity in Voluntary Retirement Scheme and Superannuation; rest, 10% Strongly Disagree, 16.16% Disagree, and 18.33% Neither Agree Nor Disagree 7. Most of the respondent?s i.e. 66.67% strongly Disagree including 20% Disagree that their pension will be adequate for after retirement life; rest, 18.33% agree, 1.67% strongly agree, and 13.33% Neither Agree nor Disagree 8. Most of the respondent?s i.e. 58.34% Agree including 18.33% Strongly Agree and one of them said “Human needs is like a infinitive” so that limitation of leave payment is acceptable for them.; rest, 25% Strongly Disagree, 13.33% Disagree, and 3.33% Neither Agree Nor Disagree. 9. Only 3.33% employees said that the process of retirement benefits used has difficult and retirement benefits are not given on time as when they become due. 10. 28.33% Employees are disagreeing that Medi-Claim insurance is adequate for retired employee and his /her spouse rest 45% are agree including 15% strongly agree and 21.67% are not sure that they are agree or disagree. 11. Most of the respondent?s i.e. 70% Agree including 30% Strongly Agree that their service is motivated by the retirement benefits of NTPC Ltd.; rest, 1.66% Strongly Disagree, 6.67% Disagree, and 21.67% Neither Agree Nor Disagree.
86
FAREWEL PICTURES INFRUNT OF NTPC GATE NO.1
87
FAREWEL GIVEN BY STAFF MEMBERS OF RETIRED EMPLOYEE’S
88
RETIRED EMPLOYEE WELCOMES BY HIS FAMILY MEMBER ON NTPC PLANT TO TOWNSHIP RAOD WITH DRUM AND FIRE WORKS
89
5.2: LIMITATIONS
? ? ? ? ?
Time period was very short. The sample collected is very small compared to the population of the company. Thus it may not bring out the exact analysis. It was difficult to convince the employees to fill the questionnaire. Most of the employees were not ready to give complete information. There is lack of time to communicate employees regarding their retirement scheme.
90
5.3: SUGGESTION
1. The accumulation of leave days should be increased. 2. Informal discussion between employers and employees should be conduct. 3. Pension should be provided on the basis of their salary. 4. Bus facility should be provided to the retired local person from NTPC to CHAMPA. 5. The process for getting pension should be made easy so that employees can get without much difficulty. 6. The leaving time of NTPC houses after retirement should be increased from 4 months to 6 months. 7. Pension to employees should be provided on timely. 8. Adequate training must be conducted to make informed the employees about the various benefits.
91
5.4: CONCLUSION
? ? ? ? The hypothesis that we have assumed is true that good retirement scheme brought by the HR department of NTPC Ltd for its employee?s. Maximum employees are aware to the procedure and criteria of retirement benefits. A retirement benefits must satisfy the retired employee and it?s satisfied the majority of NTPC?s employees. One special movement is touched me when retired employee celebrated the retirement farewell at NTPC gate number one now I would say NTPC has a great bounding among employees.
92
CHAPTER-VI REFERENCE
93
BIBLOGRAPHY
The data have been collected from:
1.
Books:
NTPC Employee handbook, A brochure on “Know your insurance, health and social
security benefits on separation” by NTPC, Korba HR 2.
Internet: www.google.com, www.ntpc.co.in
94
CHAPTER-VII ANNEXURE
95
RETIREMENT SCHEME – QUESTIONNAIRE
Instruction The following questionnaire is aimed at the finding the appropriateness of NTPC's Retirement scheme for the purpose of knowing employee's attitudes towards their retirement benefits. Kindly give us your feedback on following aspects. Please rate the following statements by putting a tick mark ( Respondent details:Grade: ______________ ) in the appropriate cell. Department: ______________
1. Are you aware of the following retirement benefits of NTPC?
? ? ? ? ? ? ? Gratuity fund Provident Fund Leave Salary Contributory Scheme for Post Retirement Medical Facilities Voluntary Retirement Scheme NTPC Pension Plan Employees Pension under EPS-95 YES YES YES YES YES YES YES NO NO NO NO NO NO NO
2. Are you aware about the basic criteria for availing this retirement?
? ? ? ? ? ? ? Gratuity fund Provident Fund Leave Salary Contributory Scheme for Post Retirement Medical Facilities Voluntary Retirement Scheme NTPC Pension Plan Employees Pension under EPS-95 YES YES YES YES YES YES YES NO NO NO NO NO NO NO
3. Were you ever a member of any pension policy from outside NTPC?
Ans. – YES NO
4. I am satisfied with the following benefits given at the time of Retirement
? ? ? ? ? Retirement Identity Card Farewell gift Travelling allowance Baggage charge YES YES YES YES YES NO NO NO NO NO
Packing charge
96
Please rate the following statements on 1-5 scale, "1" being "Strongly Disagree", by putting a tick mark ( S. NO ) in the appropriate cell. Statement Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree
5
I am aware of various procedure for applying for gratuity in Voluntary Retirement Scheme and Superannuation I think my pension will be adequate for me after my retirement Limitation of leave payment scheme is acceptable to me[up to 240 days for Half Pay Leave(HPL) and 300 days for Earned Leave(EL)] Process of retirement benefit is easy for me Retirement benefits are given on time as when they become due The Medi- claim insurance given to me and my spouse is sufficient for my family My service is motivated by the retirement benefits of NTPC
6
7
8
9
10
11
SUGGESTIONS:___________________________________________________________________________ ___________________________________________________________________________ _________________________________________________________________________
97
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