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ACKNOWLEDGEMENT

I gratefully acknowledge the help and co-operation of the entire Manpower of LANCO Budhil Hydro Electric Project (70 MW) at Bharmour. At the outset, I would like to thank Mr. Anil Gautam, General Manager (HR) for giving me an opportunity to learn at LANCO Budhil Hydro Electric Project (70 MW) at Bharmour; My guide Mr. Nasir Khan, Officer (HR), whose versatile guidance provided me with an insight into the field of Human Resource Development, particularly deserves my thanks. A similar vote of thanks goes to Mr. Umed Singh and Mr. Sartaj Singh o LANCO BHEP, Bharmour whose expertise in the field proved to be of great value to me during my training. I would like to thank Mr. Rajesh Kumar, Assistant Professor, SOBMS, CUHP Dharamshala for his valuable guidance in making my project successful. I also wish to thank my Mom and Dad for their financial and moral support. Above all I want to thank God Almighty for always being with me. With all their encouragement and well wishes, my project proved to be fruitful

(DEEPAK KUMAR)

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DECLARATION

I, Deepak Kumar, student of Central University of Himachal Pradesh, pursuing MBA (ED) under Roll no. CUHP 10 MBA(ED) 5, hereby declares that, I have completed my 8 weeks Summer Training in LANCO Budhil Hydro Electric Project at Bharmour, Distt. Chamba of H.P. and, therefore, submitting this Summer Training Project Report in original. I further declare that all the contents of this report are authentic and based upon the research conducted by me during the period of Summer Training. This Report is exclusively submitted in the Central University of Himachal Pradesh for the partial fulfillment of the degree of MBA.

(DEEPAK KUMAR)

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TABLE OF CONTENTS

Acknowledgement Declaration Table of Contents

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PART 1: THE ORGANIZATION DIAGNOSIS AND UNDERSTANDING I. Origin and Growth of Company II. Managerial Practices adopted by the Mgmt. of the Company III. Organizational Structure IV. Performance in terms of Financial and Non Financial aspects V. SWOT Analysis of LANCO BHEP 4 10 19 20 28

PART II: PROJECT WORK VI. Introduction to the Topic Chosen for Study VI. Problem Identification and Problem Formulation VIII. Research Methodology IX. Results and Recommendations 29 34 36 39

Table and Pie Charts

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APPENDICES Annexure I: Industry Supervisor Report Annexure II: Questionnaire 49

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PART I: ORGANIZATIONAL DIAGNOSIS AND UNDERSTANDING:

I. THE ORIGIN AND GROWTH OF COMPANY: ORGANIZATIONS PROFILE: LANCO Infratech Limited is one of Indias rapidly emerging business entities. For the last two and a half decades it has been driving growth in the domains of Engineering, Procurement and Construction (EPC), Power, Solar, Natural Resources, Infrastructure and Property Development. Its continuous focus on innovation and expansion together with its commitment to quality and excellence has contributed significantly to the progress that the company has made over a short span of time. The 25-year-old group is, today, uniquely poised to attain leadership position in its areas of operation. The key positions in the company are held by: L Rajagopal is the Founder Chairman of LANCO Group of Companies. L Madhusudhan Rao is the Executive Chairman of LANCO Infratech Ltd. G Bhaskara Rao is the Executive Vice Chiarman of LANCO Infratech Ltd.

ORGANIZATIONS HISTORY: 1960-76: The Seeds of Enterprise: In 1960, brothers Amarappa Naidu, Venkata Rama Naidu and Venkata Ratnam Naidu laid the foundation of LANCO by starting a transport business with one truck (a converted bus) inherited from their father L.V. Subba Naidu. Amarappa Naidu's business acumen and the brothers' commitment soon led to orders pouring in from construction companies that needed material to be transported to and from construction sites. By 1976, the thriving business boasted of a fleet of 100 trucks that serviced the construction industry in Andhra Pradesh.
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1977-85: Building the Foundation: Having succeeded beyond imagination, the Naidu brothers planned to enter the construction business themselves. In 1980, Uma Maheshwar Rao and Company was established and soon made a name for itself in the construction industry by delivering several prestigious turnkey projects in Andhra Pradesh and Karnataka. By 1980, the company's assets included 150 trucks, eight excavators, 10 bulldozers and 15 drilling machines. In 1985, L.V. Rama Naidu's son, L. Rajagopal, a mechanical engineer, was inducted into the company. 1986-90: Overcoming Adversity: In 1986, when the company went through some tough circumstances, L. Rajgopal's resolve to succeed even got firmer. He acquired a new construction firm, S.V. Contractors, in partnership with his brother-in-law, G. Bhaskara Rao, also an engineer. The first year of operation saw a profit of Rs. 1crore; by 1990 the company's annual turnover was Rs. 25 crore. 1991-94: Seizing Opportunities: Taking advantage of the new opportunities offered by the liberalization of the Indian economy, L. Rajagopal diversified from construction business to manufacturing by setting up a pig iron plant of 90,000 tpa. He took inspiration from his uncle Lagadapati Amarappa Naidu and named this new business as LANCO Ferro. LANCO is an acronym for Lagadapati Amarappa Naidu and Company and is tribute to his vision and ideals. In 1991, L. Rajagopal inducted his younger brother, L. Madhusudhan Rao, to manage the business at LANCO Ferro, which was renamed as LANCO Industries in 1993. L. Madhusudhan Rao launched several ambitious initiatives and expanded LANCO Ferro into a fullyintegrated plant producing cement, ductile iron pipes and pig iron. 1995-1999: Diversifying to Grow:

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Diversification through joint venture partnerships became the key word at LANCO as the organization embarked on an aggressive growth path. In 1995, the Andhra Pradesh government opened the power sector to private players. LANCO entered the power sector against a power purchase agreement with the state government with a 368 MW gas power plant in Kondapalli, commissioned in 2000. Kondapalli Power Ltd. (LKPL), a joint venture between LANCO and the Genting Group of Malaysia marked a major milestone in the organizations growth as an independent power producer. 2000-05: A New Century, a New Vision: In 2002, L. Rajagopal retired from the business to pursue public life, and L. Madhusudhan Rao took over as the Chairman of the organization. This was a period of change and reorganization, as LANCO prepared itself to meet the challenges of a new century. LANCO also consolidated its position in the power sector by commissioning several large projects, winning bids for several others, and winning a range of business and industry awards and prestigious recognition forums. 2005-10: Poised for Industry Leadership: LANCO Infratech Limited, a new holding corporate entity, was created in 2006 to consolidate diverse operations under a single brand. LANCO decided to focus on its core business: energy and construction and enter the infrastructure and property development sectors. Simultaneously, LANCO embarked on Vision 2020, an ambitious growth plan primarily in the sectors of power, solar energy, EPC and natural resources. By 2015, it plans to achieve a capacity of 15,000 MW in the power sector and also become one of the country's major developers in solar energy.

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LANCO BUDHIL HYDRO ELECTRIC PRJECT (70 MW) AT BHARMOUR: AN INTRODUCTION: LANCO Budhil Hydro Electric Power Project is under construction on Budhil River, which is one of the main tributary of river Ravi. The Project catchment is between: In tehsil Bharmour, District Chamba of Himachal Pradesh. It has two sites: 1. Dam and Office Site (In Village Thala) 2. Powerhouse site (In Kharamukh) The Diversion Dam is located near the village Thalla on Chamba- Chobia road (near about 9 Km from Bharmour) and the underground Powerhouse is located on the upstream of Budhil confluence point with the river Ravi at Kharamukh. Capacity: 70 MW (2 x 35 MW): It has two turbines with a capacity of producing 35 MW of electricity each per day River: It is built upon river Budhil (a Major tributary of river Ravi, confluence at Kharamukh) Budget: Rs. 550 Crores is the amount invested on the project BOT Basis: 40 years: Project is on the Built Operate and Transfer basis i.e. it will be constructed by LANCO and on its completion time which is 5 years from the date of Contract (since 2005), it will be further harnessed by the company for the next 40 years and then handed over to the HP government. Components: 1. Office Site 2. Dam Site 3. Tunnel 4. Powerhouse 5. Transmission Line
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OFFICE SITE: Office Site is located village Thala of Tehsil Bharmour of Disrict Chamba HP. It has Administration, HR & Liaison Department, Finance and Accounts Department, Billing, Planning and Store Department etc. DAM SITE: Dam Site is located village Thala of Tehsil Bharmour of Disrict Chamba HP. The height of the dam is 61 m and its length is 64 m. It has 3 gates each of dimension 6.5 m X 10.5 m. Dam feeds two Feeder Canals which supply the water to De Silting Chamber where Silt is settled (as these are deeper than the feeder canals). Later it leads to HRT i.e. Head Race Tunnel. The Dam is built upon Budhil nullah which is one of the major tributary of River Ravi. This is a newly built dam, though is functional now but still as the Powerhouse is under construction so water is not stored upto required level till now. It will store the water of the Budhil nullah and feed two feeder canals with it which will send the water through Head Race Tunnel (HRT) to the powerhouse so as to rotate turbine for Power generation. TUNNEL: Tunnel connects Dam with the Powerhouse. It consists of 2 Feeder Canals, 2 De Silting Chambers, 1 Pressure Shaft through which water fell 80 m deep to produce enough pressure to rotate the turbines. Feeder Canals are fed with the water of the Dam. They carry the water to the to the De- silting chambers. In de-silting chamber, as the name suggests, the silt is settled down to purify the water. As this silt can cause the harm to the turbine so it is essential to purify the water before it reaches the turbines. This de- silting chamber is actually a tunnel more deeper than the feeder canal so that water when enter into these de- silting chamber make silt settle down and the pure which is above flow freely to the Head race Tunnel, which is again having the
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diameter equal to that of feeders canal. This Head Race Tunnel further carries water to the rest of the distance and ends in the Pressure Shaft. This Pressure Shaft is a few meters away from the Powerhouse where Turbines are located. It is 80m deep so the water flow with a great pressure in it enough to rotate the Turbines and generate target electricity which is set upto minimum 70 MW in a day. POWERHOUSE SITE: Powerhouse is actually Underground and having Dimensions of 14.5 m X 43 m. Its location is at the right bank of river Ravi at Kharamukh. It has two Vertical shaft Turbines driven to generate per day units of 35 MW each (2 X 35 = 70 MW). Its Access Tunnel is 305 m long and 7 m high. It is D shaped. It houses Transformer and Control Room also. Its construction adit is at the top of the Powerhouse and it serves as Ventilation Tunnel also. TRANSMISSION LINE: The Transmission Line is 18 Km long and it is fed into Chamera- III Grid Sub- station of NHPC Ltd. It has 60 Towers at the gap of 300 m each. LANCO Budhil Hydro Electric project Transmission line stretches only upto this. After this the Generated power of LANCO Budhil Hydro Electric Project is carried on by the Transmission lines of Chamera- III Transmission lines which is situated in Dharwala, Distt. Chamba. It further propagates power to the Power Grid India Ltd. Sub station at Chamba from where Power Grid India Ltd. distributes the energy to various areas according to its demand. It is noteworthy here that the calculation of units produced by LANCO Budhil Hydro Electric Project is done by the Power Grid India Ltd. only. It note down the Power provided to it by LANCO Budhil Hydro Electric Power Project with the help of a meter installed for the calculation of Power provided by the above said.

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II. MANAGERIAL PRACTICES ADOPTED BY THE COMPANY: ORGANIZATIONS VISION, MISSION AND VALUES: VISION: Most Admired Integrated Infrastructure Enterprise. MISSION: Development of Society through Leadership, Entrepreneurship and Ownership. VALUES: Integrity: LANCO group choose to be honest in all their Business Interactions and Transactions and remain steadfast even when challenged. They strive for consistency between what they Think, what they Say and what they Do. Humility & Respect: They are consistently humble in their approach to and interactions with people. They treat every person with respect at all times, unconditionally. Organization Before Self: They recognize that organization interest is supreme, above individual preferences and goals. In all their decisions, actions and dealings they put the Organization before self. Achievement Drive: They have an urge that drives them to intensely focus on performance and act decisively with high energy to achieve the desired results. Positive Attitude: They always demonstrate a 'can-do' mind-set and engage to deliver organizational goals. They look upon challenging circumstances as

opportunities to enhance their capabilities and find ways of achieving. Accountability:


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They own up to their words, actions and outcome. When they commit to do something, they own it and they do it- decisively and responsibly. Teamwork: They work harmoniously with a shared vision, energized by their collective talent. They Trust, Listen to, Share with and Empower team members and take collective responsibility for the results. Continuous learning: They strive to continuously learn and consistently set higher standards of performance. They learn together on a day to day basis from each of their stakeholders, both internal and external. They change to learn, and learn to change at a fast pace in order to excel; ultimately creating an edge in everything that they do.

PEOPLE (Human Resource) at LANCO: At LANCO, they believe that the organization's largest and most valuable asset is its people (Human Resource). Their knowledge, expertise and skills combined with their energy and commitment are the engines that drive business growth and success. The adage an organization is only as good as its people truly applies to LANCO, an organization that is committed to being Always Inspiring for its people. They inspire their people to bring their talents and ideas to work to help LANCO achieve the goals outlined in their Vision 2015. They also strive to create an environment that inspires people to give their best, to be productive and deliver exceptional results. They aim to ensure that each person working at LANCO is happy, healthy, professionally fulfilled and treated fairly, and that he or she regards LANCO as an employer of choice.

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Employee engagement finds a place of high priority at LANCO. They strive to keep people engaged through frequent communication to raise awareness, increases participation, and boost performance. Rewards and recognition for achievement and exception performance are other ways to retain people's engagement as are their fast track career growth opportunities and their leadership and development programme. They seek to create an environment where people enjoy coming to work every day, where there is a feeling of camaraderie and good fellowship, where people get to work with alacrity and confidence, where they like the people they work with, and where they think of themselves as partners instead of employees.

LANCO EDGE: Their ability to generate greater value for the organization and its shareholders constitutes a distinct, sustainable edge over competition. The LANCO edge is an amalgamation of the values and ethics, human resources policies, business practices, systems and beliefs: their core business philosophy: that they have put into place over the years, which allows them to gain and retain an incisive advantage in todays competitive market place. They seek to remain always inspiring and attain the LANCO edge in every business vertical and domain that they operate in. The LANCO edge comprises: An aspiration to innovate continuously and foster a corporate culture that enables innovation. An emphasis on constant learning, to build competencies at the individual, team and organizational levels, through the LANCO Learning Academy.

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A unique Leadership, Entrepreneurship and Ownership (LEO) framework that aims at identifying, creating and nurturing Growth Leaders who excel in multiple competencies, through a competency matrix to measure and match talent and create quality people. A 'concept to commissioning' EPC execution model that addresses time, cost and quality in every project. An unwavering focus on creating customer delight by delivering quality construction projects on time, every time. A fully integrated solar value chain: the first in India, with a presence in sectors from poly-silicon to wafer to module manufacturing coupled with project development, turnkey EPC and operations and maintenance services. The experience and expertise of successful project implementation within cost and time schedules as well as the ability to make quick decisions and capitalize on market opportunities, as the largest independent power producer in India today. Expertise in providing cost-effective customized solutions for hydro projects, irrespective of the project's size or complexity. Optimizing resources and utilizing strategic locations to set benchmarks in the power sector as the most cost-effective thermal power producer in the country. Acquisition of resources that focus on provision of fuel security to support the organization's participation in the burgeoning coal trading market. Achievement of a 15 percent share of the power trading market with intent to become an integrated energy trader and service provider.

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The ability to conceptualize and create upscale, environment - friendly and lifestyle oriented urban infrastructure that compares with the best in the world.

UNITY AND DIVERSITY: At LANCO they strive to create a work environment that provides all their people: regardless of gender, race, age, culture, nation and ethnic identity, equal access to information, development and opportunity. By building an inclusive work environment, they seek to leverage their diverse people's unique talent, understanding, experience and ideas. For them, diversity is more than mere policies and practices. They see it as a lever that can unlock the power of difference to their competitive advantage. As they venture into global arena, they believe that their ability to understand, embrace and operate in a multicultural environment is critical to their long term sustainability and success, and to bringing agility and resilience into their business practices. They also understand the importance of unifying diversity to work towards their shared ideals, goals and vision as an organization. They believe in ensuring that their corporate policies are empathetic to diversity and that effective communication will contribute significantly to guaranteeing that their diverse people are unified towards energizing the organization to greater success. LANCO 's ventures in China, Indonesia, Australia, Germany, Spain, France and the United Kingdom are perfect examples of businesses that are thriving in the global marketplace. As they continue to realize their aspirations to become a truly global organization, they will also continue to advance their ability to

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understand and embrace workplace diversity, and build a global workforce that can operate successfully in a multicultural world.

LEO (Leadership, Entrepreneurship and Ownership): LEO, LANCOs unique Leadership, Entrepreneurship and Ownership framework, is aimed at creating high quality and sustainable human capital of global standards to drive the organization's dynamic, achievement oriented mindset. They believe LANCO is a product of their quality people who excel in three dimensions: Human Dimension which is a about Leadership Business Dimension which is about Entrepreneurship Personal Dimension which is about Ownership They encourage every employee at LANCO to develop these three dimensions of Leadership, Entrepreneurship and Ownership. The three dimensions are interrelated and interdependent, and it is the synergy between these three that is the key to success and to owning the spirit of LANCO. Leadership at LANCO is an interpersonal influence process of setting direction and inspiring people to achieve challenging goals. Leaders inspire and influence through their behaviour of embracing the idea of being a role model by setting an example and motivating people by involving them in problem solving and decision making processes. Entrepreneurship is being accountable for the profitability and growth of the business. Their people develop a compelling vision of the future. They search out challenging opportunities to grow, innovate and improve. They experiment, take risks and learn from their mistakes. They have a strategic mindset and always work towards the next goal.

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Ownership in LANCO is to recognize the organization's interest as supreme, above individual preferences and goals. Owners put the organization before self in all decisions, actions and dealings. Ownership is dependent on personal traits and starts with having faith in one self. It is demonstrated through a passion for work, and the ability to turn every day adversity into an opportunity. It also means working towards a purpose, taking pride in the purpose, having patience, and perseverance never giving up till the purpose is accomplished. LEO is a scientific approach that places the right people in the right roles by measuring and matching talent as well as a transparent mechanism to grow people within the organization. The framework is instrumental in identifying learning and development needs of our people, and in inspiring and motivating them to learn and develop. At LANCO, the LEO framework is integrated with all the people processes such as recruitment, learning and development, performance management, succession planning, career planning, and creating high potential growth leaders. It is the core of all human resource processes that enables alignment of individual goals and the organization's vision for the future.

HR FUNCTIONS (ACTIVITIES) AT LANCO BHEP: Attendance: Record of attendance of all the employees of the organization is an important function of HR department. In LANCO Budhil Hydro Electric Project, the officers of various working sites viz. Office site, Dam site, HRT etc. keep the record of the presence and absence of the employees and then it is provided to the HR officer in the end of the day. The HR officer then sends this to the HR department of the head office in the organization at Gurgaon through internet. The head office then prepares the salary of the employees on
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the basis of it and thus employees are provided with the salary accordingly by the HR department of the LANCO Budhil Hydro Electric Project, Bharmour. Recruitment: Recruitment is chiefly done by the HR department of the Head office. For this HR department of LANCO Budhil Hydro Electric Project, Bharmour send specifications of Job requirements at this place. They also call the tenders for various works from Large and Small scale contractors. E.g. they are outsourcing 70% of the construction work through Coastal Project Ltd. Training: HR department of LANCO Budhil Hydro Electric Project also impart on the job trainings to various trainees like students from Engineering and Management background, they also provide training to their employees or otherwise recommend them for the required training Promotions: In LANCO Budhil Hydro Electric Project Performance Appraisals are conducted annually according to the rules and regulations of the company. Motivation: Employees are motivated either through Money or appreciation e.g. Gold Coins are given to the employees who completes 10 years in the organization, Bonus is also given annually. Transportation: In Hydro Electric Power Plants transportation is very essential to manage as LANCO Budhil Hydro Electric Project is split in the two sites, so to make employees and workers reach at work in right time is very important. For this Transportation is managed by HR department. Accommodation: In faraway place like Bharmour which is a Tribal area arrangement of accommodation of the employees is again a big challenge, so the HR Department take care of the Guest House Lease deeds etc. Safety and Security at working sites: Hydro Electric Power Plants are very accidental prone sites so safety and security of the employees is again a big issue. For this Safety Officers are appointed by the LANCO Budhil Hydro Electric

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Plant who checks on the workers whether they are taking precautions at the work sites or not e.g. like wearing helmets is compulsory and they can fine the worker not wearing helmet at the work site, they can also fine worker who has taken liquor and working at the project site, Medical facility like First Aid is available with an appointed Doctor, for some serious accident Ambulance is also available for speedy transportation. Accidents & Casualty: Every employee working at LANCO Budhil Hydro Electric Project is ensured with Aviva MetLife Insurance. In case of casualty next of the kin of the employee are provided claim etc. Grievances handling: Other problems regarding pay and strikes etc. are also handled by the HR department. Environmental Issues: These are very important and have to be taken care of as they are according to the laws and cannot be denied. The issues like where to dispose muck cutting of trees, construction of roads etc. are carried out only with the consent of the state authorities and HR department have to take care of it.

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III. ORGANIZATION STRUCTURE (HIERARCHY) OF LANCO BHEP:

Project Director (Executive Director)

General Manager

Office Site

Dam

HRT

Powerhouse

Transmission Line

Admn. HR

Finance

AGM

HR

Sr. Fin.

AGM AGM

AGM

AGM

Officer Officer

DM

Accountant

DM

DM

DM

DM

SE

SE

SE

SE

En.

En.

En.

En.

AE

AE

AE

AE

JE

JE

JE

JE

PA

PA

PA

Abbreviations: HRT= Head Race Tunnel, HR= Human Resource, AGM= Assistant General Manager, DM= Deputy Manager, SE= Senior Engineer, En.= Engineer, AE= Assistant Engineer, JE= Junior Engineer, PA= Project Assistant.

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IV. PERFORMANCE IN TERM OF FINANCIAL AND NON FINANCIAL ASPECTS: FINANCIAL PERFORMANCE OF THE COMPANY: The organizations dynamic advancement is propelled with its unique strategic plan: LANCO's Vision 2015. It is aimed at building LANCO as an achievement oriented and customer centric organization; an organization that is committed to attain industry leadership with aggressive growth plans for the business verticals in which it operates. LANCO Infratech Limited became a listed entity in November 2006 following the Initial Public Offering (IPOs) of shares. Presently, the market capitalization of the company is approximately US$ 2.28 billion. Of the total 240.78 million shares outstanding 67.95 percent is held by the founder promoters of the company. LANCOs gross revenue before elimination as on March 2011 was over Rs. 11,265 crores (USD 2.56 billion). Engineering, Procurement and Construction (EPC) is core business competence and strength of this organization and its Seamless integration with other domains such as infrastructure, construction and power, has borne rich dividends for LANCO. The organizations expertise in building large civic and urban infrastructure projects has been deployed in constructing thermal, gas and hydro power projects across the country. In a bid to find cost effective, sustainable and green solutions to the county's energy requirements, LANCO has made its presence felt in the area of solar power as well. is fast emerging as one of the top three private sector power developers in India with 2,092 megawatt (MW) under operation, 7,153 MW under construction, and 11,070 MW of projects under development. In a strategic move that provides increased fuel security for its current power generating assets and its future power portfolio expansions, LANCO through its Australian subsidiary, LANCO Resources Australia, has acquired
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Griffin Coal Mining Company and Carpenter Mine Management. Griffin Coal owns the largest operational thermal coal mines in Western Australia, producing over 4 million tonnes per annum (mtpa) of coal which can be ramped up to over 15 mtpa in the near term, post development of evacuation infrastructure. LANCO also has strategic global partnerships with leading power companies including Genting, Harbin, GE, Dongfang, Doosan, etc. With team strength of about around 7,000 people, , headquartered in Gurgaon close to New Delhi, has a pan India presence in strategic locations in 20 states in India and an expanding footprint in the emerging global markets. Currently, its international operations are located in Australia, China, Indonesia, Nepal, Singapore, Europe and the United States. LANCO is a privileged member of the World Economic Forum and has been acknowledged as an elite member of the top 200 "Global Growth Companies".

NON FINANCIAL PERFORMANCE: ORGANIZATIONS DOMAINS: ENGINEERING, PROCUREMENT AND CONSTRUCTION: With its unique concept to commissioning execution model that considers time, cost and quality parameters, LANCO is an established industry leader in executing large projects. The organizations ISO 9001 certified EPC division has over 25 years experience in civil construction projects and seven years in implementing power projects through the EPC route. Strong capabilities in strategic management and speedy development, over 4,000 highly experienced professionals, and resilient relationships with critical national and international equipment manufacturers and agencies make LANCO's EPC team a formidable force.
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With its wide range of project execution experience in subcritical (300/600 MW), supercritical (660 MW), gas based and combine cycle projects, LANCO aims to become a global EPC (Engineering, Procurement and Construction) organization in the near future. Areas of Operation LANCO offers Engineering, Procurement and Construction services in two business segments: Power Others Power: Thermal Power Projects, Hydro Power Projects, Chimneys, Cooling Towers & Balance of Plant, Transmission & Distribution: Kondapalli gas based Power Project at Andhra Pradesh 120 MW Gas based Tanjore Power Project at Tamil Nadu Udupi Power Project, an imported coal based thermal power project at Karnataka Power Amarkantak Power Project in Chhattisgarh, a coal fired thermal based project Clarion Power Corporation Ltd (12 MW) Rithwik Energy Systems Ltd (6 MW) Barrage & Tunnel Construction at Teesta VI Hydro Electric Power Project, Sikkim 275m Double Flue Can Chimney for ANPARA-C Kondapalli- Nuna Transmission Line 275m Twin flue/ Brick-lined chimnies for BHEL at Bellary, UKAI & North Chennai Projects Cooling Water Circulation System for NTPC at Ramagundam

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Others: Roads, Highways & Bridges, Metros & Railways, Buildings & Airports, Sea Ports & Marine Structures, Water & Pipeline: Dalkhola- Islampore sub section II of NH 31 in the state of West Bengal Construction of 81 KM of NH 4 from KR Puram- Hoskote Construction of 81 KM of NH 48 from Bangalore- Devihalli EPC Contract for Construction of WTP, RWR and 100Km Pipeline for IL & FS at Paradip, Orissa Veeranam Project, 1875MM DIA, 114 KM Pipeline Chennai Metropolitan, Tamil Nadu Terminal Building of Varanasi Airport Koparkhairane Railway Station for CIDCO on Thane Belapur Road, Navi Mumbai Shastri Park Railway Station for Delhi Metro Railway has bagged the order for Construction of New Airport Terminal Building for Biju Patnaik Airport (BBI), Bhubaneswar, Orissa Construction of Hills Residential, IT Tower, Podium & Other Infrastructure Ashwini Hospital for Navy, Mumbai LANCOs Construction Division has bagged its first Metro Project on EPC basis from Chennai Metro Rail Limited, For Design & Construction of an Elevated station at Meenambakam and Viaduct, Ramps, Cut & Cover Tunnel between OTA station and Chennai Airport Station. The Project has to be completed in 36 Months. LANCOs Construction Division bagged its first 765kv transmission line (from Raigarh to Champa in Chhatisgarh state) from M/S. Power Grid Corporation of India Limited (PGCIL).

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SOLAR POWER: To realize its vision of providing sustainable, innovative and costeffective solutions to India's ever increasing energy needs, is focused on commercializing alternate technologies for green and efficient energy generation systems such as solar thermal and solar photovoltaic (PV). The group is working towards realizing its goal of indigenizing these technologies with the aim to reduce costs and achieve grid parity. LANCOs integrated Sand to Power strategy is best positioned to turn India's solar dream into a reality. LANCO is the first Indian organization to effectively integrate the entire solar value chain, with a presence in sectors such as Polysilicon to Wafer to Module Manufacturing as well as project development, turnkey EPC and O&M services. With its strong focus on a synergetic strategy and high end technology, LANCO targets to make solar energy affordable by every person in the country in the near future. Solar currently has one of the largest solar power project pipelines in the country and a project pipeline of more than 300 MW of power globally. It has aggressive plans to execute 500 MW of EPC projects, 400 MW of its own projects and 250 MW of manufacturing a year by 2013, and to emerge as a leading developer and turnkey EPC service provider in the country and globally. To facilitate its aggressive growth strategy, the company operates from 10 states in India and seven countries globally. SOLAR INTERNATIONAL: Project development activities in the international arena have been initiated through LANCO Solar's London based office and a diversified team of experts based in six European countries, the US, and Canada. Currently, two projects in the US and two projects in Italy and Spain are under installation, and a development pipeline of about 100 MW.
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NATURAL RESOURCES: With the acquisition of the Australian Griffin mines and the successful bid to develop the Mahatamil coal block in Chhattisgarh, LANCO has added over 2 billion tonnes of coal resources to its business portfolio. This strategic move will allow the organization to provide fuel security (India will have a gap of over 200 million tonnes by 2015) and to participate in the burgeoning coal trading market. The Griffin mines alone are expected to produce over 20 million tonnes per annum (mtpa) by 2015, helping LANCO to import 15 mtpa of thermal coal. LANCO has thus joined the exclusive league of mine operators in India and is looking to capitalize on this advantage by monetizing opportunities arising in other natural resources in the country. The LANCO Resources division comprises the following verticals: Coal Mining: Griffin Coal Mine, Australia (100 percent acquisition by ) Rampia and dip side of Rampia, India (coal block jointly allotted to six parties under the Government of India captive scheme) Trading (imports into and exports from India): Coal (coking and non-coking thermal coal) Long and short term, Spot and Index Prices Iron ore Limestone Bauxite Other minerals New Initiatives: Coal washeries

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Limestone mines Bauxite mines Coal exports out of Griffin Coal Mine, Western Australia Resources in Global Outlets: Infratech Ltd., Corporate Office, Gurgaon (India) Resources International Pte. Ltd., Singapore Resources Australia Pty. Ltd., Perth, (West Australia)

Griffin Coal Mining Company Pty Ltd., Perth ( West Australia) Carpenter Mine Management Pty. Ltd., Perth (West Australia) Energy Africa (Proprietary) Ltd., Johannesburg ( South Africa) INFRASTRUCTURE: LANCOs Infrastructure development business is focused on executing large civil and urban projects such as roads, highways, ports, airports, railway lines etc. The division envisions a pan India Build, Operate and Transfer (BOT) project portfolio worth Rs. 10,000 Crores by 2015, with a strong focus on the highways sector. The projects currently under execution include two major National Highway (NH) projects, on a BOT basis, to construct 163 km of roads at an estimated cost of Rs. 1,348. Another major project under development is the 238 km toll road between Kanpur and Aligarh (NH 91) on a Design, Build, Finance, Operation and Transfer (DBFOT) basis.

WHY LANCO? At LANCO, they value people. They have confidence in their experience, skill, expertise, commitment and drive. That is why they strive to provide an

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environment where they can grow, as part of their core belief in Always Inspiring! As one of India's fastest growing business entities, over the last 25 years, LANCO has been driving growth in domains such as Engineering, Procurement & Construction, Power, Solar, Resources and Infrastructure. The company is a member of the UN Global Compact, and is recognized for its good corporate governance and social responsibility initiatives led by the LANCO Foundation. As part of the LANCO team, one can contribute to world class projects that help shape the nation, while building their own skills and expertise. LANCO employs around 7,000 committed, talented and ambitious

professionals. If one is motivated and ones values match theirs, as a national player propelled by the desire to excel, they offer some of the most rewarding career development opportunities in the industry. Ones professional development is vital to them. Their business is built around a dedicated and motivated team, and they make long term investments in their people. They empower their people to stay ahead of competition by providing regular exposure to world class training programmes in some of the most reputed institutes in the country. They are proud of their high performance standards and seek improvement constantly. There are no limits to what they can achieve together or on the legacy one can leave while working for LANCO.

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V. SWOT ANALYSIS OF LANCO BUDHIL HYDRO ELECTRIC PROJECT: STRENGTHS: Providing employment to the locals help gaining their trust. Providing employees with better transportation to make them comfortably reach at work site. CSR (Corporate Social Responsibility): making roads, providing trainings etc. Being a construction company is itself an added advantage for LANCO.

WEAKNEESES: Not having a strong recognition yet. Salary is less as compare to others (e.g. Costal Project and NHPC, Chamba) Long distance between Dam and Powerhouse site (17 Km). HR practices are not very strong, Employee absenteeism is there. Not a big infrastructure like NHPC.

OPPRTUNITIES: Stable enough to take the bid of other projects at this area. Will sale energy generated by the project for next 40 years (under BOT basis). Once the construction work will be over very few employees would be required (cut CTC).

THREATS: Climatic conditions could affect power generation to a great level. Problems related to environmental code violation. Site is in the Seismic Zone V (Earthquakes are often, high risk area). Labour Unions supported by CITU (politics and strikes affects the work).

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PART II: PROJECT WORK:

VI. INTRODUCTION TO THE TOPIC CHOSEN FOR STUDY: Absenteeism refers to unauthorized absence of the worker from his job. Absenteeism can be defined as failure of employees to report for work when they are scheduled to work. In India, the problem of absenteeism is greater than other countries. When the employee takes time off, on a scheduled working day with permission, it is authorized absence. When he remains absent without permission or informing, it is wilful absence without leave. In these days, when the needs of the country require greater emphasis upon increase of productivity and the economic and rational utilization of time and materials at our disposal, it is necessary to minimize absenteeism to the maximum possible extent. Recent surveys indicate the following trends in absenteeism: 1. The higher the rate of pay and the greater the length of service of the employee, the fewer the absences. 2. As an organization grows, there is a tendency towards higher rates of absenteeism. 3. Single employees are absent more frequently than married employees. 4. Younger employees are absent more frequently than older employees but the latter are absent for longer periods of time. 5. Unionized organizations have higher absenteeism rates than non-union organizations. The rate of absenteeism can be calculated by considering the number of persons scheduled to work and the number actually present. Thus, the rate of absenteeism can be estimated in the following way:
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Rate of Absenteeism = No. of Total Manshifts Lost No. of Total Manshifts scheduled to work

X 100

CAUSES: Important factors leading to absenteeism can be summarized as follows: 1. Long hours of work. 2. Bad working conditions. 3. Boredom. 4. Lack of co-operation and understanding between management and workers. 5. Sickness. 6. Accidents. 7. Occupational disease. 8. Problem of transport facilities. 9. Low wages. 10. Lack of proper medical aid and health programmes. 11. Lack of canteen services, rest rooms, etc. 12. Bad housing conditions. 13. Evil of drinking. 14. Lack of marketing facilities. 15. Social or religious festivals. 16. Harvest seasons. 17. Marriages. 18. Education of children. 19. Domestic problems and consequent worries, etc. Among these causes, in the existing Indian conditions, wage level in industries, has a direct bearing on absenteeism. Sickness on account of bad housing conditions contributes highest to industrial absenteeism. Social and
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religious causes can be accounted as the second important contributing factor forabsenteeism. Absenteeism in industry varies from place to place, depending on thefestival, marriage, harvest season and other factors.

EFFECTS : Absenteeism is one of the root causes of labour unrest. It affects the workers earnings as well as the company in the following manner: 1.Decrease in Productivity: Employees may be carrying an extra workload or supporting new or replacement staff. Employees may be required to train and orient new or replacement workers. Staff morale and employee service may suffer. 2. Financial Costs Payment of overtime may result: Cost of self-insured income protection plans must be borne plus the wage costs of replacement employees. Premium costs may rise for insured plans. 3. Administrative Costs : Staff time is required to secure replacement employees or to reassign the remaining employees. Staff time is required to maintain and control absenteeism. The definition of absenteeism, its causes, its affects on productivity, and its costs in terms of finances and administrative effectiveness are quite clear. What is not as clear is how to take affirmative action to control absenteeism in such a way as not to create mistrust, costly administration and systems avoidance. Traditional methods of absenteeism control based only on disciplinary procedures have proven to be ineffective. It is almost impossible to create a fair disciplinary procedure because even well run disciplinary systems, which
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treat similar actions in consistently similar ways, are usually seen as unfair. The reason for this is discipline alone usually does not identify or address the root causes of absenteeism. Every employee who takes time off in defiance of company regulations has reasons, right or wrong, which justify to themselves the legitimacy of their actions. Unless a management attendance program identifies and addresses the causes of employee absenteeism it will be ineffective and unfair. Traditional disciplinary programs alone can, at best, give the illusion of control. It is no secret that there are ways to beat even the best systems. The fear of discipline often only increases the desire to avoid management systems. If absenteeism is to be controlled, the physical and emotional needs of employees must be addressed. Incentives can be introduced to discourage absenteeism. Attendance bonus is awarded in certain establishments, merit increases and promotions are linked to minimum attendance. Good leave record of the employee is an important factor in considering him for more responsible positions. These incentives, no doubt, will be effective inducements for regular attendance and work which, in turn, will ensure efficient service. Habitual absenteeism must be treated as a misconduct and it must be stated that habitual absentees are liable for disciplinary action. India, and in particular Himachal Pradesh has a great potential for Hydro Electric Power generation. Hydro Electric Power is the energy generated by water through a proper procedure of making water fall on the Turbines with a great pressure to rotate them in order to produce high energy. The laws of physics are applicable to these procedures as the water falling with a great pressure on the turbines to make them rotate and change Potential energy into Electrical energy. The electrical energy thus produced is commercially used as Electric Power and which is an essential part of the human life in
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todays world. It is evident from a Power failure that what is the importance of electricity in our lives. But, the biggest problem here is that this electrical energy is non renewable. It once consumed changes into other form of energies and cannot be recovered. So there is continuous demand to generate this energy. Himachal Pradesh government is keen on this situation and it has known the potential of this land of Gods of harnessing its water resources to generate Hydro Electric power. Also these Power generation projects are one of the biggest resources of revenue for the state government. It also helps the State government to provide many employment opportunities to the people of the state in their own home land. But, working at Hydro Electric Power Projects is not an easy task. It is a challenge of its own kind in itself. These sites are generally away from town and working conditions are generally not according to the wishes of the employees. It often results in absenteeism of employees, increases dissatisfaction regarding job among them which leads to the higher attrition rate. So it was important to conduct a survey regarding Absenteeism of employees, to find their reasons and suggest remedial measures to ensure maximum attendance.

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VII. PROBLEM IDENTIFICATION AND PROBLEM FORMULATION: PROBLEM IDENTIFICATION: As per discussed in the previous chapter that working in the hydro power projects is itself a challenge of its own kind, and there are certain problems which the employee faces and these problems should be thus of utmost care to be taken of and the onus of it lies on the shoulders of HR department. One of such problem is the growing absenteeism among employees in the working sites and offices of the hydro electric plants. For this an effort is being made to know the reasons regarding absenteeism among employees of LANCO Bhudil Hydro Electric Plant and to provide some suggestions to the management so as to help them to take some remedial decisions and ensure maximum of attendance at the workplace.

PROBLEM FORMULATION: The title of the problem is: Absenteeism: Cause, Effect and Control in LANCO Budhil Hydro Electric Project (70MW) at Bharmour

OBLECTIVES OF THE STUDY: The objectives of the project are: To understand and analyze: 1. What are the main causes of absenteeism in LANCO BHEP, Bharmour? 2. What are the effects of the unauthorized absenteeism by the employees in the company? 3. What are the current disciplinary actions taken by the HR department for reducing absenteeism? 4. What is the attitude of employees towards these disciplinary actions? 5. What factors are to be considered in order to reduce absenteeism?
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6. What suggestions can be given to the management to improve the regular attendance of the employees in the company? Thus, the above objectives have been observed and analyzed in a detailed manner in this project report. I have made an attempt to go into root causes of the subject by using the various techniques of Research Methodology.

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VIII. RESEARCH METHODOLOGY: A project is like a journey and it is always better to have atleast the faintest of ideas of the probable direction of our destination. Initially we have to decide upon the general area of interest or the aspect of the subject to inquire into. This decision is rather broad and not very precise. It is crude indication of the purpose of the study and is of little help for further planning and organization of the study. Research Methodology is defined as a more systematic activity directed towards discovery and the development of an organized body of knowledge. An efficient research contributes to the evaluation of a proper decision, which ultimately affects the path the organization will choose. The data collected is of paramount importance and hence the research process has to be effective and an efficient one. Research Methodology involves adopting various techniques which are best suited for the research and study of the problem, for investigation and analysis of the problem. It starts with data collection from various sources i.e., primary and secondary sources, data analysis and interpretation and finally the findings or conclusion from the analysis. In this project, Primary data was collected by Questionnaire Survey. The workmen selected for the interview purpose were the employees of LANCO BHEP, Bharmour. A random selection of samples from the workmen segment was done in the company. There are 190 employees in the company. From them respondents were selected randomly as sample to avoid any bias. Thus, 25 workmen were selected for survey through the questionnaires prepared. This helped to be fair to all by not keeping in view the past record of absenteeism of individuals. The secondary data was collected from:
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Monthly absenteeism data. Yearly absenteeism report. Leave records of employees. After the collection of data, the response of the 25 individuals were arranged in a chronological pattern and then evaluated. Many inferences could be drawn from both the primary as well as secondary data available which are put forth in the analysis section. It is often beneficial to undertake an intensive study of a few well selected instances of the phenomenon of interest. The method demands for great sensitivity and receptivity on our part. As new information pours in, the study is reformulated and redirected. Hence, to be on the safer side, it would always be wise to work keeping a particular method in mind.

RESEARCH AREA: Research setting was to be chosen according to the relevance of research topic. So, the two main sites of the LANCO Budhil Hydro Electric Project, 70 MW (i.e. - Office site including Dam site and Powerhouse site at village Thala and Kharamukh of Tehsil Bharmour, Distt. Chamba of H.P. respectively) were chosen to collect the data for the research project.

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ANALYSIS AND INTERPRETATION OF DATA: Analysis of Data: TABLES & PIE- CHARTS: Tables 1: Employees Interest in their Jobs: Questions Is Job Interesting? Not at all 5 To some extent 5 Average 15 To Great Extent 5 Highly -

Chart 1: Employees Interest in their Jobs:

Is Job Interesting?
17% 0% 16% Not at all To Some Extent Average 50% To Great Extent Highly

17%

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Tables 2: Employees awareness about company rules: Questions Awareness about Co. Rules? Not at all 3 To some extent 3 Average 18 To Great Extent 6 Highly -

Chart 2: Employees awareness about company rules:

Awareness of Co. Rules


20% 0% 10% 10% Not At All To Some Extent Average 60% To Great Extent Highly

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Tables 3: Employees support from co- workers: Questions Support of Co- workers Not at all 5 To some extent 10 Average 12 To Great Extent 3 Highly -

Chart 3: Employees support from co- workers:

Support from Co- workers


10% 17% Not At All 40% 33% To Some Extent Average To Great Extent Highly

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Tables 4: Leaves availed by an employee in a year: Questions Leaves in a year 1-5 6-10 12 11-15 5 16-20 5 More 8

Chart 4: Leaves availed by an employee in a year:

Leaves in a Year
0% 27% 40% 1 to 5 6 to 10 17% 16% 11 to 15 16 to 20 More

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Tables 5: Reason behind availing leaves: Questions Reason for Leaves Personal Family Problem 12 Working Conditions 5 Social Problems 5 Addiction 8

Chart 5: Reason behind availing leaves:

Reason Behind Availing Leaves


0% 27% 40% Personal Family Problem 17% 16% Working Conditions Social Problem Addiction

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Tables 6: Salary structure of employee: Questions Reason for Leaves Satisfactory 5 Average 10 Unsatisfactory 15

Chart 6: Salary structure of employee:

Salary Structure of Employee


17%

50% Satisfactory 33% Average Unsatisfactory

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Tables 7: Family Conditions and family atmosphere of employee: Questions Family Conditions Satisfactory 3 Average 9 Unsatisfactory 18

Chart 7: Family Conditions and family atmosphere of employee:

Family Conditions of Employee


10%

30% 60% Satisfactory Average Unsatisfactory

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Tables 8: Is cause of absenteeism alcohol: Questions Is Cause Alcohol Not at all 12 To some extent 15 To great extent 3 Highly True 2

Chart 8: Is cause of absenteeism alcohol:

Is Cause Alcohol
9% 6% 38% Not At All To Some Extent 47% To Great Extent Highly True

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Table 9: Is cause of absenteeism Drug Intake: Questions Is Cause Drugs intake Not at all 15 To some extent 13 To great extent 2 Highly True -

Chart 9: Is cause of absenteeism Drug Intake:

Is Cause Drugs Intake


6% 4%

48% 42%

Not At All To Some Extent To Great Extent Highly True

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Table 10: Is cause of absenteeism Regular Health Problems: Questions Is Cause Regular Health Problems Not at all 3 To some extent 6 To great extent 18 Highly True 3

Chart 10: Is cause of absenteeism Regular Health Problems:

Is Cause Regular Health Problems


4% 11% 21% Not At All 64% To Some Extent To Great Extent Highly True

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IX. RESULTS AND RECOMMENDATIONS: RESULTS: 17% of workers takes 16 to 20 leaves in a year; among these 64% take leaves due to regular health problems of their family or of themselves. Reasons for Absenteeism are: 1. 17% of workers do not find their jobs interesting and resort to absenteeism 2. 10% workers are not aware about rules and regulations of the company and other 60% only knows them casually 3. Most of the absenteeism is due to Family Problems as family conditions of 60% workers is not satisfactory; 27% is due to addiction also and 6% of these are due to alcohol consumptions whereas 4% is due to High Drug Intake. 4. 16% workers do not find working conditions satisfactory whereas 50% workers are not happy with their salary.

RECCOMMENDATIONS: 1. There should be better salary structure 2. HR People should also counsel workers the ill- effects of the substance abuse 3. The working conditions should be satisfactory 4. The workers should aware about the rules and regulations of the company

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ANNEXURE II: QUESTIONNAIRE Questionnaire Regarding Job Satisfaction Dear Respondent, I am getting training in LANCO Budhil Hydro Electric Project as a Management Trainee in HR and thus studying about various aspects of it. Absenteeism is one of the issues of importance in any organization and thus I want to study it regarding this organization. I humbly request you to spare few minutes from your busy schedule to help me in my research work. Please tick one of the following options. I shall be highly thankful. Name: Age: . Gender: Working in this organization from last..years.

1. How many leaves availed by you per annum? 1-5/ 6-10/ 11- 15/ 16-20/ More 2. My job in company is very interesting: Not at all/ To some Extent/ Average/ To great Extent/ Highly 3. My colleagues are highly supportive: Not at all/ To some Extent/ Average/ To great Extent/ Highly 4. Are you aware of the leave rules of the company? Not at all/ To some Extent/ Average/ To great Extent/ Highly 5. Main reason behind high leave consumption: Personal/ Family related/ Work related/ Social/ Addiction 6. How is your family condition and family atmosphere? Satisfactory/ Average/ Unsatisfactory
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7. Is your salary structure adequate? Satisfactory/ Average/ Unsatisfactory 8. The cause of my absenteeism is taking alcohol: Not at all/ To some Extent/ To great Extent/ Highly True 9. The cause of my absenteeism is taking drugs: Not at all/ To some Extent/ To great Extent/ Highly True 10.The cause of my absenteeism is regular health problems: Not at all/ To some Extent/ To great Extent/ Highly True 11.Any other problem/ Suggestions .

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