CHAPTER 3

PROFILE OF THE APGENCO (KTPS) 33

When A.P. State Electricity Board (APSEB) came into existence in 1959, it started
functioning with the objectives of maintaining the power sector efficiently and
economically simultaneously ensuring demand meets the supply

During the last decade, inadequate capacity addition and low system frequency
operation of less than 48.5 Hz as against 50 Hz for more than half a decade
considerably reduced the power supply reliability.

The imbalance of the revenues against the cost of production, no significant reduction
in technical losses and energy thefts, high cost purchases from IPPs, other SEBs
gradually worsened the financial position of APSEB.

HIGH LEVEL COMMITTEE AND ITS RECOMMENDATIONS

Government of Andhra Pradesh, realizing the declining tendency of the financial

position of APSEB and considering the Government of India's liberalized policy for
attracting private investment into power sector, set up a high level committee in
January 1995 to look into working of the APSEB and suggest remedies for
improvement. The committee after detailed deliberations with all the concerned and
critical analysis submitted the Report with its recommendations.

Government of Andhra Pradesh considering the recommendations made by Committee

had embarked upon the A.P. Electricity Reforms Act in 1998. As a sequel, the APSEB
was unbundled into Andhra Pradesh Power Generation Corporation (APGENCO) &
Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) on 01.02.99.
APTRANSCO was further unbundled with effect from 01.04.2000 into "Transmission
Corporation" and four "Distribution Companies" (DISCOMS).

33
www.apgenco.gov.in

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Thus, A.P. Power Generation Corporation (APGENCO) was incorporated as a
Company under the provisions of the Companies Act, 1957 on 29.12.1998. According
to the Andhra Pradesh Electricity Reforms Act, 1998, APGENCO commenced its
business operations effective from 1.2.1999 and according to the memorandum of
Association APGENCO has to Acquire, Establish, Construct and Operate Power
generating stations. All the Generating Stations owned by erstwhile APSEB were
transferred to the control of APGENCO.

The installed capacity of APGENCO as on 31.03.2010 is 6580.9 MW comprising

2992.50 MW Thermal, 3586.4 MW Hydro and 2 MW Wind power stations, and
contributes about half the total energy requirement of Andhra Pradesh. APGENCO is
the third largest power generating utility in the country, next to NTPC and Maharashtra
SEB. It's installed Hydro capacity of 3586.4 MW is the highest in the Country.
APGENCO has an equity base of Rs.2107 crores with 10273 dedicated employees. The
company has an asset base of approximately Rs.12000 Crores.

KTPS has an installed capacity of 680 MW, comprising of 8 power units.

Vision

• To be the best power utility in the country and one of the best in the world.

Mission

• To generate adequate and reliable power most economically, efficiently and

eco-friendly.

• To spearhead accelerated power development by planning and implementing

new power projects.

• To implement Renovation and Modernization of all existing units and enhance

their performance.

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Core Values

• To proactively manage change to the liberalized environment and global trends.

• To build leadership through professional excellence and quality.

• To build a team based organization by sharing knowledge and empowering

employees.

• To treat everyone with personal attention, openness, honesty and respect they
deserve.

• To break down all departmental barriers for working together.

• To have concern for ecology and environment.

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HUMAN RESOURCE MANAGEMENT IN KTPS (APGENCO)

Manpower Planning

In APGENCO, after completion of the construction works, the required staff for
Operation & Maintenance of the newly commissioned unit will be sanctioned. The
posts created during construction period will be either suppressed or diverted to the new
projects which are under execution.

Before sanctioning any new post, care is taken to see that –

a) The available man power can take additional work, if it is for a short period and
on one time basis.

b) Whether there is any surplus, consequent to closure/completion of construction

works.

c) Whether the additional cost of man power is within the budgetary limits.

The man power planning mainly consists of the following:-

a) Sanction/creation and suppression of posts duly reviewing deployment of the

existing man power to cope up with the work load.

b) Recruitment/filling-up of posts either by utilizing the existing man power or

resorting to direct recruitment and also to forecast the future requirement.

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For sanction of posts, norms will be arrived at, based on the job description. While
fixing norms for sanction of posts, the following main aspects are taken into
consideration:

i) Job description

ii) Work Study methods

iii) Historical background of previous norms

iv) Capacity to relate higher wages to higher norms

v) Comparison of norms with the norms prevailing in other Electricity

Companies

vi) Sophistication of equipment installed

vii) To fix norms with reference to the ability and salaries those are prevailing,
with a view to keep a ceiling on the expenditure for different categories of
posts.

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Recruitment & Selection

The Services in APGENCO have been classified based on the functions they perform
and each service has several categories of posts. The categories of posts have been
grouped in general as Class I, II, III & IV depending on their importance. The services
are:-

1. Personnel & General Service

2. Engineering Service
3. Accounts Service
4. General Service
5. Security Service
6. Educational Service
7. Medical Service

Recruitment in APGENCO is done by method of Direct Recruitment for Assistant

Engineer/Junior Officer & above cadres (Management Staff) and through
Compassionate Appointment Scheme for the dependents of the deceased employees for
last Grade(Class IV) and Lower Cadre posts like Sweeper, Watchman, Lower Division
Clerk, Sub-Engineer etc,. Historically, being a Public Sector Organization, it also
absorbs workmen engaged as Contract/Casual Labour, based on the orders of the
Government of Andhra Pradesh.

While the Selection of Direct Recruited is done through merit-based Written Test and
Oral Interview, the selection for staff under Compassionate Appointments is done by
Oral interview. In respect of staff absorbed under contract/casual labour system, the
selection is done based on man days put in by such staff, besides Read & Write Test.

Apart from this, certain categories of posts like Chemist/Sub-Engineer/Junior Officer

are filled by method of appointment by transfer and by promotions from lower/feeder
categories, according to the qualification and experience criteria fixed from time to
time.

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Career development

A person recruited to a particular post with requisite qualification is assured with at

least three promotions in his entire service, in normal course.

There are two types of promotions in vogue - one is on the grounds of ‘merit-cum-
seniority’ and the other is on the basis of ‘seniority’, subject to fitness.

The criteria adopted for fixing the merit rating in respect of ‘merit-cum-seniority’ is:-

a) The total marks obtained in the last 5 years’ Annual Appraisal Reports shall be
divided by 5 to obtain Average Marks.

b) Based on the average marks so obtained, the grading shall be made as follows:-

Out of turn 90% and above

In turn Less than 90%
Unfit Not to be considered

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Performance Appraisal

The primary objective of performance appraisal is to optimize the human resource

through development of individual employees. It can serve as:-

i) Base for personal decisions to promote good performers and to weed out
low performers. To train, transfer and to justify merit increases.

ii) Predictor i.e., when they are used to make promotional decisions.

iii) Helps in establishing objectives for training programmes.

iv) Gives concrete feed-back to employees.

The Performance Appraisal System in APGENCO has the following components:

a) Annual Appraisal Report from April to March by Superior

b) Self-Appraisal Report by the appraisee
c) Communication of Adverse Remarks to the appraisee
d) Gradation(A,B,C,D & E)

A = Outstanding 81% and above

B = Very Good 71% to 80%
C = Good 61 to 70%
D = Satisfactory 50% to 60%
E = Poor Below 50%

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Training & Development

APGENCO has Corporate Training Institute for Thermal Stations at Dr.Narla Tatarao
Thermal Power Station (formerly Vijayawada Thermal Power Station) and for Hydel
Training Institute at Srisailam. The Training Institute at Dr.NTTPS is recognized by
the Central Electricity Authority for imparting statutory induction training. These
Institutes organize in-house training programmes for all cadres of employees at
Corporate Training Institute or at Generating Stations depending upon the composition
of the participants. Apartment from this, the employees are also nominated for external
training programmes, nationally & internationally.

Training Needs Identification is done every year and Annual Training Calendar is
prepared based on the inputs from Generation Stations.

The Training Institute has latest gadgets like LCD Projectors, Video Films, OHPs, for
conducting Training Programmes.

Course material is also being distributed to the participants so that they can refer the
same as and when they desire, besides attending the classes.

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