ACADEMIC YEAR: 2013-2014

I certify that the Project entitled “TRAINING & DEVELOPMENT” submitted to
Mumbai University in partial fulfillment for the award of degree of MASTER OF
COMMERCE (MANAGEMENT) is a record of original research work done by
YUGANDHARA SUDHAKAR PATIL, during the period of study 2013-14 in the
Department of Commerce, Mumbai University under my Guidance and Supervision
and the dissertation has not formed the basis for the award of any Degree/ Diploma/
Association/ Fellowship or other similar title to any other Candidate of any

Project Guide: External Examiner:

Coordinator: Principal:

College Seal


I, YUGANDHARA SUDHAKAR PATIL, hereby declare the Project Work
entitled “TRAINING & DEVELOPMENT” submitted to Mumbai University
in partial fulfillment of the requirement for the award of the degree of
MASTER OF COMMERCE (MANAGEMENT) is original work done by me
under the supervision and guidance of DR.SUBHASH D’SOUZA it has not
formed the basis for the award of any Degree/ Diploma/ Association/
Fellowship or other similar title to any Candidate in any University.





Human Resource Management (HRM):-

A relatively new term that emerged during the 1930s. Many people used to refer it before
by its traditional titles, such as Personnel Administration or Personnel Management. But
now, the trend is changing. It is now termed as Human Resource Management (HRM).
Human Resource Management is a management function that helps an organization
select, recruit, train and develops.

In the field of human resource management, training and development is the field
concerned with organizational activity aimed at bettering the performance of individuals
and groups in organizational settings. It has been known by several names, including
employee development, human resource development, and learning and development.

Training & Development

Organisation and individual should develop and progress simultaneously for their
survival and attainment of mutual goals. So, every modern management has to develop
the organisation through human resources development. Employee training is the most
important sub-system of human resources development. Training is a specialised function
and is one of the fundamental operative functions for human resources management.

After an employee is selected, placed and introduced in an organisation he/she must be
provided with training facilities in order to adjust him to the job. Training is the act of
increasing the knowledge and skill of an employee for doing a particular job. Training is
a short-term educational process and utilising a systematic and organised procedure by
which employees learn technical knowledge and skills for a definite purpose. Dale S
Beach defines the training as “…. the organised procedure by which people learn
knowledge and/or skill for a definite purpose.”

In other words training improves changes and moulds the employee’s knowledge, skill,
behaviour and aptitude and attitude towards the requirements of the job and the
organisation. Training refers to the teaching and learning activities carried on for the
primary purpose of helping members of an organisation to acquire and apply the
knowledge, skills, abilities and attitudes needed by a particular job and organisation.

Thus, training bridges the differences between job requirements and employee’s present
Training and development encompasses three main activities: training, education, and
development. Garavan, Costine, and Heraty, of the Irish Institute of Training and
Development, note that these ideas are often considered to be synonymous. However, to
practitioners, they encompass three separate, although interrelated, activities

This activity is both focused upon, and evaluated against, the job that an individual
currently holds.

This activity focuses upon the jobs that an individual may potentially hold in the future,
and is evaluated against those jobs.

This activity focuses upon the activities that the organization employing the individual, or
that the individual is part of, may partake in the future, and is almost impossible to

Training is the act of increasing the knowledge and skills of an employee for performing
the job assigned to him. It is a short-term process. After an employee is selected, placed
and introduced in an organization he must be provided with training facilities so that he
can perform his job efficiently and effectively.

Development is a long-term educational process utilizing an organized and systematic
procedure by which managerial personnel learn conceptual and theoretical knowledge for
general purpose. It covers not only those activities which improve job performance but
also those activities which improve the personality of an employee.

Need and Significance of the Study:

NTPC LIMITED is the largest thermal power generation company of India with very
vast human resource and hence, to know the effectiveness of Training and development
programmes across different departments and also to know what are the strategies being
followed in NTPC LIMITED to maximize the effectiveness of the programmes in their
organization. Thus a detailed study regarding the effectiveness of training and
development in NTPC Simhadri is to be done, to identify the shortcoming in
management and to suggest for improvement in employee development.

Objectives of the study:
 To assess the effectiveness of training and development programmes in NTPC

 To understand the effectiveness of during the training phase
 To understand the effectiveness of post training phase.

 To understand the motivation towards the Training.

 To know the organizational policy towards the Training.

 To offer valuable suggestions to improve the effectiveness of training and
Development programmes in NTPC Simhadri.

Importance of Training

The importance of human resources management to a large extent depends on human
resources development and training is its most important technique. No organisation can
get a candidate who exactly matches with the job and the organisation requirements.
Hence, training is important to develop the employee and make him suitable to the job.
Training works towards value addition to the company through HRD Job and
organisational requirements are not static, they are changed from time to time in view of
technological advancement and change in the awareness of the Total Quality and
productivity Management (TQPM). The objectives of the TQPM can be achieved only
through training, which develops human skills and efficiency. Trained employees would
be a valuable asset to an organisation. Organisational efficiency, productivity, progress
and development to a greater extent depend on training. If the required training is not
provided, it leads to performance failure o the employees. Organisational objectives like
viability, stability and growth can also be achieved through training. Training is
important, as it constitutes a significant part of management control. Training enhances
4Cs for the organisation viz.
 Competence
 Commitment
 Creativity
 Contribution

Towards the accomplishment of the said objectives, information would be obtained from
primary as well as secondary data sources; Primary data will be generated by way of
meeting different executives concerned with training and development programs. Also a
survey on training program is conducted by means of a questionnaire to derive the
training programmers at NTPC. Efforts will be directed in obtaining the view of
employees /executives who got trained in the in house/ outside training programmers.

Information pertaining to training and development programs organized over a period
will be obtained by way of referring to record of the statistical departments, personnel
departments, and training and development departments. In-house magazines, journals,
newspapers, any other published materials will be referring to in collection of necessary

Data collected for the study has been divided into two parts

Primary data:

Primary data is mainly gathered by distributing various questionnaires and by interacting
with officials at different levels.

The questionnaire comprises of multiple choice questions. The size of the sample is 100
employees. Simple random sampling technique was adopted to choose the respondents
for the sample. The technique was used keeping in view the scope of the study which
tried to cover different levels of executives, workmen and supervisors.

Secondary data:

Secondary data is collected through various sources i.e. journals, news papers, websites.


To know the function of the organization as a whole and as well to know how the
policies are made and implemented and conveyed to the employees. The study is to know
in brief about the following departments:
 Training and Development Center

 Human Resource Development Department

Following departments were approached for survey during the project: -
 Finance Department
 Production Department
 M.I.S.Section

 Marketing Department

 Quality Control Department

Limitations of the study:
In the actual practice it is very difficult to survey each and every Individual. Due to space
and time constraint the survey was not covered among all the Employees of NTPC
Simhadri, otherwise more accurate information Would have been possible
The time constraint there to study all the policies of ntpc, as it is a very vast Topic.
 Sample size collected is not very large.
 Subjectivity on this part in interpretation and analysis
Profile of the Power Industry

Power is an essential requirement for all facets of our life and has been recognized as a
basic human need. It is the critical infrastructure on which the socio-economic
development of the country depends. The growth of the economy and its global
competitiveness hinges on the availability of reliable and quality power at competitive
rates. The demand of power in India is enormous and is growing steadily. The vast Indian
power market, today offers one of the highest growth opportunities for private

India is endowed with a wealth of rich natural resources and sources of energy.
Resources for power generation are unevenly dispersed across the country. This can be
appropriately and optimally utilized to make available reliable supply of electricity to
each and every household. Electricity is considered key driver for targeted 8 to 10%
economic growth of India. Electricity supply at globally competitive rates would also
make economic activity in the country competitive in the globalized environment.

As per the Indian Constitution, the power sector is a concurrent subject and is the joint
responsibility of the State and Central Governments. The power sector in India is
dominated by the government. The State and Central Government sectors account for
58% and 32% of the generation capacity respectively while the private sector account for
about 10%. The bulk of the transmission and distribution functions are with State
utilities. The private sector has a small but growing presence in distribution and is
making an entry into transmission. Power Sector which had been funded mainly through
budgetary support and external borrowings was opened to private sector in 1991.

India is well on its way to becoming an economic superpower and, increasing at an
annual economic growth rate of 8-10%, it desperately needs all the energy it can harness.
Dams, nuclear reactors, thermal power stations, all symbolize this much-needed energy
without which the nation’s economic horses may slow down. Energy is a complex
subject and there are no easy answers to these questions. A mix of foresight, courage and
inventiveness will determine what forms of energy India chooses to power its economic
growth with and whether it could leapfrog into a sustainable energy regime without
losing its competitive edge in the world economy.

Electric power generation in India is done predominantly by government sector entities.
These are controlled by various central public sector corporations, such as:
 National Hydroelectric Power Corporation.

 National Thermal Power Corporation.

 Various state level corporations (State Electricity Boards - SEBs).

The transmission and distribution is managed by the State Electricity Boards (SEBs) or
private companies. Private sector participation is increasing especially in Generation and

Installed capacity

• India has the fifth largest electricity generation capacity in the world, low per capita
Consumption at 606 units; less than half of China

• T & D network of 5.7 million circuit km – the 3rd largest in the world.

• Coal-fired plants constitute 53% of the installed generation capacity, followed by 25%
From hydel power, 10% gas based, 3% from nuclear energy and 8% from renewable
Main Power Stations in India:
 Hydro Power Station.

 Gas Turbine Power Station.

 Nuclear Power Station.

 Diesel Engine Power Station.

 Thermal Power Station

The critical role played by the power industry in the economic progress of a country has
to be emphasized. A self-sufficient power industry is vital for a nation to achieve
economic stability.
The Energy Industry incorporates a broad range of sectors, including, Natural Gas and
Petroleum (Extraction, Refining and Distribution through pipelines), Electricity,
including Nuclear, Coal Mining and Refining. The Energy industry incorporates the sub
sectors of Oil and Gas Extraction, Coal Mining, Utilities, including electricity and gas
transmission and distribution and Petroleum and Coal Products Manufacturing. The
power industry in India comprises of the various governmental bodies looking after the
power systems in India, power generation industry and technologies in India, power
supplies, power industry report showing the analysis of the power scenario in India, the
India power requirements and shortage, the various India power supply units and the
power infrastructure in India.
Indian Power Industry

Before Independence:
The British controlled the Indian power industry firmly before Independence. The then
legal and policy framework was conducive to private ownership, with not much
regulation with regard to operational safety.

Post Independence:
Immediately after Independence, the country was faced with capacity restraint. India
adopted a socialist structure for economic growth and all the major industries were
controlled by public sector enterprises. By 1970's India had nationalized most of its
energy assets, due to its commitment to social goals. By the late 1980's the Indian
economy felt the strain of the socialist agenda followed since independence. Faced with a
serious deterioration in public finance and balance of payment crisis, the Union
government as part of its policy of economic liberalization allowed greater investment by
private sector in the power industry.

Non Renewable Energy:

Fossil fuels:

The Industrial Revolution in Europe in the 19th century forced human's to seek
alternative sources of fuel to cater to the increasing demand. Focus was shifted to fossil
fuels as an alternate source of energy. Fossil fuels were formed millions of years ago.
They are nothing but fossilized organic remains that after millions of years has been
converted into oil, gas and coal. Because this process takes a long time, they are known
as non renewable.


It is the most easily available fossil fuel in the world. It is mostly carbon and is used as a
combustion fuel, especially after the Industrial Revolution. Coal can further be divided
into lignite, bituminous and anthracite. Lignite and Bituminous have lesser percentage of
carbon and therefore burn faster. They are not environmentally friendly, Whereas
Anthracite has about 98% carbon and therefore burns slowly and is more
environmentally friendly. Coal can be found in both underground mines and open mines.
Though Petroleum gained prominence through the 20th century, coal still continues to be
the most used raw material for power generation.

Oil and Gas:

Oil and Gas are mostly found in underground rocks. Millions of years ago when plants
and animals died, they got buried in layers of mud and sand. The earth's crust changed its
shape and put immense pressure and heat on the dead plants and animals. Over a period
of time, the energy in those plants and animals changed into hydrocarbon liquids and
gases. They then turned into chemicals called hydrocarbons .Most of the hydrocarbons is
found under the sea bed. Natural gas is usually found near a source of oil. It is a mixture
of light hydrocarbons. It is lighter than air and is odorless. It is therefore mixed with a
chemical that gives it a strong odor and thereby easy to detect in case of a leak. It is the
cleanest burning fossil fuel.

Renewable Energy:

Because of the environmentally disastrous effect of non renewable energy, an alternate
source of energy which would not pollute the environment and which can also be
renewed was tapped. They are known as renewable energy. The various types of
renewable energy are

Solar Energy:

It is the most easily available renewable resource. After the oil shock in 1970's many
countries conducted research work to tap solar energy. It is believed in the next few years
millions of consumers across the world would switch to solar energy. In India the Indian
Renewable Energy Development Agency and the Ministry of Non Conventional Energy
Sources are devising strategies to encourage the usage of solar energy. Solar energy can
be used for cooking, heating, drying, distillation, electricity, cooling, refrigeration, cold
storage etc

There is huge potential for Solar Energy development in India. Installed manufacturing
capacity has grown from a meager 10MW in 2000 to a total of 335 MW by 2007. India is
now 7
worldwide in Solar PV Cell production.

There are many schemes for generating electricity from the sun. These include

 Photovoltaic cells. These are an attractive field of research, and have
Gradually been made more efficient and less costly.

 Power towers. Mirrors focus sunlight on a boiler, which generates steam and
Then electricity.

 Burning biomass. This competes with other uses of agricultural land and
Requires more labor than present energy generation methods.
Solar Power Satellites:

Solar energy is more easily collected in space than on earth. The solar collectors can be
permanently aimed at the sun, and there are no clouds. This has given rise to proposals
for solar power satellites that would collect solar energy and beam it to earth using
microwaves. The energy would be beamed to retina fields that would rectify the
microwave beams and distribute the energy to users.
Despite the competitive disadvantage that solar energy technologies have right now, the
availability of "free" sunlight will remain a driving force behind the development of new
ideas that can make solar power more affordable in the future. As economies of scale are
achieved in the manufacture of solar collection devices (both thermal and electric), and
as petroleum prices gradually rise, solar energy will become more cost competitive.
Hyde Energy:
Energy available in fast flowing water can be used to generate electricity. Waves occur
due to the interface of the wind with surface of sea and represent a transfer of energy.
This energy can be tapped for commercial purpose.

Hydro Power:
It is the one of the best, cheapest and cleanest source of power, though large dams could
have environmental and social repercussions. In view of these problems associated with
larger dams, experts have advocated the construction of smaller dams. New
environmental laws to safeguard the planet from the effects of global warming have
made smaller hydropower projects more viable. India ranks 8
in terms of Hydro
electricity generated. It has the potential to provide energy in remote and hilly areas
where extension of an electrical transmission grid system is uneconomical. Till now 14
States have announced policies for setting up commercial SHP projects.

Wind Energy:
It is the kinetic energy used for many centuries in water sports like sailing and for
irrigation. It converts kinetic energy into more usable forms of power. Wind turbines help
to convert the energy in the wind into mechanical energy which can be used for
generating power. Since the late 1980's the viability of wind energy has gained in
prominence across the globe. In India the states of Tamil Nadu and Gujarat lead in the
field of wind energy. India is 4
largest producers of wind energy in the world. India’s
current installed wind capacity is 8.7 GW (approximately 10% of the world’s total
installed capacity).
Wind installation (global) 60,000 MW (cumulative) India’s share (and position)
6270 MW(fourth in the world) SPV cell production (global) 1,700 MW (in 2005)
India’s share (and position) 37 MW (seventh in the world) Biogas plants (global) 16
million units (cumulative) India’s share (and position) 3.9 million family size units
(second in the world) Solar Thermal (global) 110 million sq.m s (cumulative)
India’s share (and position) 1.65 million sq. m (ninth in the world).
It is sourced from the carbonaceous waste of animals and is also the by products
from timber industry, agricultural crops, raw material from forest, household waste
and wood. It can be used to generate power with the same power plant that are
burning fossil fuels and is very much environmentally friendly.
It is being used in the western countries for applications such as combined heat and
power generation. In India 90% of the rural households and 15% of the urban households
use bio mass fuel.

Nuclear Energy:
Nuclear energy can be created in nuclear reactors under strict human control. The nuclear
power can be generated by the fission of uranium, plutonium or thorium or the fusion of
hydrogen into helium. Nowadays mostly Uranium is used for generating nuclear power.
With a view to increase India's dependence on nuclear energy to offset the energy crisis
in the country, the Indian government entered into an agreement with the government of
USA called the 123 agreement. This agreement aims to assuage greater cooperation
between the two countries in the field of nuclear technology. Nuclear power plants use
the amazing power of the atom to generate electricity with a very low fuel cost and much
less pollution than fossil fuel plants. However, the planning, building, and operating of a
nuclear power plant is a long, costly, and very complex process.

Initiatives on international cooperation in nuclear

The government has taken the initiatives on international cooperation in nuclear energy.
These will end India’s international isolation and enable full nuclear commerce. While
ensuring unhindered progress of the domestic power and strategic programmes. India
will have access to the international market for nuclear fuel, reactors, goods and services.
It will open up the possibility of additional ties, based on imported fuel and enhance
nuclear power capacity. It will enable import of fuel for safe guarded rectors. The other
major benefit will be the opening of the export option.

India which is the only country with a live technology of small reactors and has the
potential for export of the same to countries with smaller grids and desirous of nuclear
power. As Indian industry also has the capacity of manufacturing all nuclear equipment
and components, there will be a huge opportunity for export, given the cost advantage.
The vide experience of Indian personnel in specialized nuclear services such as
renovation and modernization, in core jobs and construction coupled with the cost
advantage, will open market for nuclear services.
Ministry of Power

Indian power sector comes under the Ministry of Power India. Earlier known as Ministry
of Energy, it comprised of separate departments for power, coal and non-conventional
sources of energy. In 1992, the Ministry of Power started working independently with
work area covering planning and strategizing the Indian power projects and policies. The
power management and implementation of the various power projects undertaken,
formulation and amendments of the power laws in India, management of the power
supply in India, monitoring of the power plants in India, power companies in India,
power generation in India and other power shortage problems etc.
The Ministry of Power (M0P) is coordinated by Central Electricity Authority (CEA) in
all technical and economic aspects. Along with the CEA, other subsidiary organizations
of the MOP are:
 National Thermal Power Corporation (NTPC) National Hydro Electric
Corporation (NHEC)

 Power Finance Corporation of India (PFCI) Nuclear Power Corporation of India

 North Eastern Electric Power Corporation (NEEPC) Rural Electrification
Corporation (REC)

 Damodar Valley Corporation (DVC)

 Bhakra Beas Management Board (BBMB)

 Tehri Hydro Development Corporation (THDC) Satluj Jal Vidyut Nigam (SJVN)

 Power Grid Corporation of India Ltd (Power Grid India) Power Trading
Corporation (PTC)

 Bureau of Energy Efficiency (BEE)
Eligibility of workers / employees to enter into the

Workers can enter the Oil and Gas Extraction industry with a variety of educational
backgrounds. The most common entry-level field jobs usually require little or no
previous training or experience. Other entry-level positions, such as engineering
technician, usually require at least a two-year Associate degree in engineering
technology. Professional jobs, such as geologist, geophysicist, or petroleum engineer,
require at least a bachelor's degree, but many companies prefer to hire candidates with a
master's degree, and may require a Ph.D. for those involved in petroleum research.

Employers seek high school graduates for entry-level power plant operator, distributor
and dispatcher positions. Candidates with strong mathematics and science skills are
preferred. College-level courses or prior experience in a mechanical or technical job may
be helpful. With computers now used to keep records, generate reports and track
maintenance, employers are increasingly requiring computer proficiency. While most
mining jobs can be entered directly from high school, the increasing sophistication of
equipment and machinery requires a higher level of technical skill.

Power Infrastructure in India:

The power industry in India derives its funds and financing from the government, some
private players that have entered the market, World Bank, public issues and other global
funds. The Power Ministry India has set up Power Finance Corporation of India that
looks after the financing of the power sector in India. The Power Finance Corporation
Limited provides finance to major power projects in India for power generation and
conversion, distribution and supply of power in India.
Power Finance Corporation (PFC) Ltd India also looks after the installation of any new
power projects as well as renovation of an existing power project India. The PFC in
association with central electricity authority and the ministry of power facilitates the
development in infrastructure of the power sector India.

Power Supply Units India:

Power is derived from various sources in India. These include thermal power,
hydropower or hydroelectricity, solar power, biogas energy, wind power etc. the
distribution of the power generated is undertaken by Rural Electrification Corporation for
electricity power supply to the rural areas, North Eastern Electric Power Corporation for
electricity supply to the North East India regions and the Power Grid Corporation of
India Limited for an all India supply of electrical power in India.

Thermal Power in India

It is mainly generated through coal, gas and oil. India coal power forms a majority share
of the source of power supply in India. The electric power in India is generated at various
thermal power stations in India. The power generated at these thermal power plants is
then distributed all over India through a network of power grid at regional and national
levels. The power ministry organization responsible for the thermal power management
in India is the NTPC.
Hydropower is India is one of the mega power generators in India. Various hydropower
projects and hydro power plants have been set up by the ministry of power for generation
of hydro power in India. Various dams and reservoirs are constructed on major rivers and
the kinetic energy of the flowing water is utilized to generate hydroelectricity. The power
generator here is the running water. The hydroelectric power plants and the hydro power
generation companies are managed by the National Hydro Electric Power Corporation
Wind Power in India is available in plenty as India witnesses high intensity winds in
various regions due to the topographical diversity in India. Efforts have been made to
utilize this natural source of energy available free of cost for wind power generation.
Huge wind energy farms have been set up by the government for tapping the wind energy
by using gigantic windmills and then converting the kinetic energy of the wind into
electricity by the use of power converters. The wind power advantages start with the very
fact that a wind energy power plant does not require much infrastructure input and the
raw material i.e. wind itself is available free of cost.
Solar Power in India is being utilized to generate electricity on smaller scale by setting
up massive solar panels and capturing the solar power. Solar power India is also being
utilized by the power companies in India to generate solar energy for domestic and small
industrial uses.
Nuclear Power in India is generated at huge nuclear power plants and nuclear power
stations in India. A nuclear power plant generates the electricity using nuclear energy. All
the nuclear power plants in India are managed by the Nuclear Power Corp of India Ltd
(NPCL). The electricity from all India nuclear plants is distributed by the NPCL as per
the nuclear power project scheme.
Biogas Production in India is still in its infancy stage. Also the number of biogas plants
in India is still very low. India being the largest domestic cattle producer has plenty of
biogas fuel and thus utilization of the fuel for mass biogas production by setting up more
biogas plants in India would solve the power shortage problem to some extent.
Power Companies in India:
Many government as well as private organizations have taken up the task of power
generation in India. The major Indian power companies playing prime are:
 Bhakra Beas Management Board Enercon Systems India
 Essar Group GMR Group
 Gujarat State Petroleum Corporation Ltd Jindal Steel & Power Limited
 Karnataka Power Transmission Corporation Limited (KPTCL) Karnataka
Renewable Energy Development Limited Konarka
 Magnum Power Generation Limited Nippo Batteries
 Reliance Energy Ltd. Shri Shakti
 Durgapur Projects Limited Satluj Jal Vidyut Nigam Ltd. United Power
 Ventral Systems Pvt. Ltd. Enron India Power Plant Celetronix Power India
 Caterpillar Power India Alton Power India
 Thorium Power India
 GE Power Controls India

National Thermal Power Corporation Limited is the largest power company in India and
has a capacity of 29894 MW with 7 gas based, 15 coal based power stations and about
four joint ventures. The company is the top among the Best Workplaces for Large
Organizations. Two major units of the company is in Orissa. The core business of the
company is construction, engineering and operation of power generating plants. With
global investments in 2004 totaling $28 billion as compared to $6 billion in 1995. Total
installed capacity based on renewable energy was 155,000 MW in 2004, of which wind
power itself totaled 48,000 MW. By the end of 1995, India's total installed power
generation capacity was 81,164 Megawatt. Of that, hydro-electricity (hydel) accounts for
almost 26 percent, but hydel accounts for less than 13 percent of the total electricity
generated in the first three years of the current eighth plan.
Five-Year Plans and Growth of Power Generating Capacity(percentage)
First Plan
(1951 – 56) 68.48
Second Plan
(1956 – 61) 61.23
Third Plan
(1961 – 66) 94
Fourth Plan
(1969 -74) 28.61
Fifth Plan
(1974 – 79) 60.11
Sixth Plan
(1980 – 85) 49.69
Seventh Plan
(1985 – 90) 49.43
Eighth Plan
(1992 – 97) 30.538
Ninth Plan
(1997 – 2002) 22.28
Tenth Plan
(2002 – 2007) 25.7
Table highlights the impact of neoliberalism on India’s electricity sector. An overview of
the increase in power generating capacity in India through the Five Year Plan periods
(see Table 1) shows that the rate of increase in capacity has been relatively high. Even
more noticeable is the fact that prior to the initiation of neoliberal policies (till the end of
the Seventh Plan), the rate of increase in capacity was far higher. Percentage increase in
capacity declined from 60.11, 49.69, and 49.43 in the Fifth, Sixth and Seventh Plan
periods respectively to 24.22, 22.28 and 25.70 in the Eighth, Ninth and Tenth plan
periods. The decline in the rate of increase of power generating capacity has taken place
despite continuing energy shortage in India, from 1997-98 through 2003-04, energy
shortage in India has ranged anywhere between 5.9 percent to 8.8 percent and peak
energy shortage has ranged between 11.20 percent and 13.90 percent.

Contribution of the World Bank:
In 1994 the World Bank had withdrawn $750 million in funding for power projects in
India following Indian states refusing to stop giving away electricity. It is now
backing on the scene with a plan to restructure the state power sector in India.
The World Bank has recently announced a 350 million dollar loan to the eastern state of
Orissa, to restructure management and improve power generation and distribution. The
project will split the State Electricity Board into separate generation, transmission and
distribution companies. This is expected to reduce the power tariff and develop
infrastructural facilities.

Improvement in the power generation

The overall generation in the country has increased from 617.5 BU during 2005-2006 to
662.5 BU during the year 2006-07. The overall generation improved as follows:

Energy type Improved by

Thermal 6.10%

Hydro 11.90%

Nuclear 7.90%

Bhutan Imp. 70.60%
Improvement of power generation

Power consumption pattern in India:

India consumes 3.7% of the world’s commercial energy, making it the 5
consumer of energy globally. Total installed capacity of 1, 44,912 MW.22% of world
average Per capita electricity consumption, 600 KWhr per year. About 80% of total rural
energy consumption comes from non commercial energy.
Rapid economic development & increasing population lead to high demand for energy.
India requires an annual increase of

a) Commercial energy supply from 3.7% to 6.1%

b) Total primary energy supply from 2.2% to 5.1%

Infrastructure bottlenecks:

Most discussions on India’s economic growth story over the previous decade lead to the
conclusion that infrastructure bottlenecks pose the greatest risk to the sustainability of its
rapid GDP growth. Invariably it is the power sector in failing to set up with the demands
of the economy.
Lack of resources:
While the Power Sector in India looks more promising than ever before, it continues to
be troubled by lack of credible fuel options. India’s ever worsening thermal-hydro mix
has led to over dependence on coal based thermal power. Lack of reforms in the coal
sector implies that there still is no market for domestic coal in India. As of December
2008, 43 thermal stations in India had coal stock which would last only seven days and
28 0f them having stock of less than 4 days compared to the threshold norm of 15 days of
stock for thermal power plants. While the supply of coal as fuel has been hampered due
to lack of initiative from the Government to allocate coal blocks to power plants, the
supply of power from gas based power plants has been hindered due to non-availability
of fuel.
Power theft:
A key challenge for power companies is reducing theft by India's poor. Many have come
to view free electricity as a right, something that politicians have done little to counter in
a bid to win votes. The main problem in arresting the theft is a lack of political will.

Regarding hydro power:
 High gestation period
 High capital costs (per MW)

Targets and Achievement

Nuclear power:

Although nuclear power plants have many advantages, they have some major problems.
If anything were ever to go wrong inside the reactor, the results could be disastrous. One
of the most dangerous difficulties is the possibility of a nuclear meltdown. This occurs
when the core overheats in an uncontrolled manner -- the core simply melts. Such an
event would release amazing amounts of radioactivity. There are many emergency
cooling systems and back-ups to prevent the reactor from getting to meltdown
One problem that was not stopped was the incident at Chernobyl. The Chernobyl plant
reached 150 times its normal power level. The pressure inside the water holding tubes
there became so great that finally the plant just blew itself apart. Poor construction and
operation of the power plant caused the disaster. The disaster killed 31 people and 20
square miles of land are now uninhabitable. Some people say that the Chernobyl accident
is responsible for many cases of cancer all across Europe. The scientists and
environmentalists fighting against nuclear power, use accidents like these as their
Climate change
New nuclear power stations would not stop climate change. New investment in nuclear
power and its infrastructure will block development of renewable energy and energy
efficiency – the real solutions to climate change. Ironically, climate change itself also
threatens the safety of nuclear power stations; many reactors are built on coastal sites
vulnerable to the impacts of sea level rise, including flooding and erosion.
Over twenty years since the world’s worst nuclear disaster, Chernobyl, the human and
environmental consequences are still being suffered internationally. Nuclear power is
inherently dangerous and, despite claims of improvements in safety, scientists agree that
another catastrophe on the scale of Chernobyl could still happen anytime, anywhere.
The nuclear industry is hugely expensive. The construction and generating costs of
nuclear power are greater than most renewable energy and energy efficiency
technologies. Added to these are costs associated with dismantling nuclear stations and
waste disposal.
Solar energy:
Even though sunlight energizes virtually all processes on Earth, the amount of solar
energy falling on one square meter of ground is actually pretty small. The average
amount of sunlight reaching the surface of the Earth is about 300 Watts per square meter
(about 10 sq. ft.). This value is larger in the tropics or where there are few clouds, smaller
at high latitudes and where it is frequently cloudy. One rule of thumb is that a collector
area equal to about 10% of the floor area of a house is required to provide most of the
heating needs for that house. So for a 2,000 sq. ft. house, 200 sq. ft. of collector area
would be needed. For centralized collection of solar energy, large land areas need to be
covered with solar collectors in order to gather enough sunlight to generate a significant
fraction of our energy needs. Concentrating the sunlight with mirrors does not increase
the amount of energy that is collected. In fact, focusing the energy to produce higher
temperatures usually leads to more loss of energy.

The basic cost problems with solar energy are:
 High capital cost. This is probably not insuperable.
 The need to store energy, because of daily, hourly and weekly (from clouds) and
seasonal availability.
 The need to transport the energy long distances. This might put cloudy countries
at high latitudes at a severe economic disadvantage.
Maintenance cost. One person, experienced in maintaining complex systems gave me an
estimate of one percent a month, e.g. a system costing $40K costs $400 per month to
Profile of the NTPC

NTPC LIMITED is the largest thermal power generation company of India. It is a public
sector company, incorporated in the year 1975. At present government of India holds
89.5% of the total equity shares of the company and the balance 10.5% is held by FIT’s
domestic banks, public and others. NTPC has emerged generation facilities in all the
major regions of the corporation.

NTPC’S core business is engineering, construction and operation of power generating
plant. NTPC has set new benchmarks for the power industry both in the area of power
plant construction and operations. NTPC was among the first public sector enterprise to
enter into a memorandum of understanding (MOU) with the government of India in
1987-88. NTPC has been placed under “excellent category” every year since the MOU
system became operative.

Recognizing its excellent performance and fast potential, government of the India has
identified NTPC as one of the jewels of public sector “NAVARATNAS”-a potential
global plant. Inspired by its glorious past and vibrant present, NTPC is on its way to
realize its vision of being “A world class integrated power major powering India’s
growth, with increasing global presence.” NTPC is world’s 6
largest thermal power
generating and second most efficient in capacity utilization.

Around the year 1975, soon after the 4
five year plan, the power generating capacity
available in the country was around 17000MW, which is too less to meet the requirement
for country’s industrial development. In 1975, NTPC was incorporated with the main
objective of development, planning, promoting and integrating the thermal power in our
country. NTPC constitutes a total of 27 units all over India. The national Head Quarters
is at New Delhi, corporate office of NTPC. There are 4 regional head quarters at
Mumbai, Lucknow, Patna and Hyderabad. Each head quarters constitutes different sub

“A world class integrated power major, powering India’s growth, with increasing global

“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”

“To enable our people to be a family of committed world class professionals making
NTPC – a learning organization

NTPC – Core Values -: (B-COMIT):

B - Business Ethics

C - Customer Focus

O - Organizational Pride

M - Mutual Respect & Trust

I - Initiative & Speed

T - Total Quality