Annexure- A Summer Internship Project Report

Submitted in partial fulfilment of the requirements for the Two Year Full Time
Post Graduate Diploma in Management Session (2022-2024)

Under the Guidance of

Dr. Parul Agarwal
Industry Mentor’s Name: - Mr. Ashish Kumar Faculty Mentor’s Name: - Dr. Parul
Agarwal Designation: - Executive Manager Designation: - Associate Professor

Submitted BY
Student’s Name: - NUPUR KUMARI
 Annexure B-1

(Originality Certificate) I hereby declare that this Summer Internship

Project is my own work and that, to the best of my knowledge and
belief, it reproduces no material previously published or written that
has been accepted for the award of any other degree of diploma,
except where due acknowledgement has been made in the text

(Student Name)
Acknowledgement First of all I would like to take this opportunity to thank the
Institute of Management Studies, Ghaziabad for having project as a part of the
MBA Curriculum.

I would like to take this opportunity to express my sincere thanks to Dr.

Prasoon M Tripathi for providing me helpful environment in complexity this
project and for giving me the fine opportunity to do this project in the
esteemed organization.

I gratefully acknowledge to Mr. Ashish Kumar who has given me the

opportunity to learn at deep level to prepare this report and supported me
throughout this project with utmost cooperation and patience.

I express my profound sense of gratitude and sincere thanks to BHEL for

offering me this project and training in this organization. I also extend my
gratitude to my Project Guide Dr. Parul Agarwal who assisted me in compiling
the project.

An acknowledgement would not be complete without a word of thanks to all

our friends for their valuable suggestions.
Place:
STUDENT NAME

Date : ROLL NO.

 ABOUT BHEL
BHEL is India’s largest engineering and manufacturing enterprise in the energy
and infrastructure sectors. Established in 1964, we are a leading power
equipment manufacturer globally and one of the earliest and leading
contributors towards building an Aatmnirbhar Bharat.

We serve our customers with a comprehensive portfolio of products, systems

and services in the areas of power-thermal, hydro, gas, nuclear & solar PV;
transmission; transportation; defence & aerospace; oil & gas and new areas like
BESS and EV chargers.
Right from developing country’s power generation capacity to creating multiple
capabilities in country’s core industrial & strategic sectors, BHEL is deeply
aligned to the vision of a self-reliant India. Consistent expenditure of more than
2.5% of its turnover on R&D and innovation; establishment of world-class
manufacturing assets, development and absorption of new technologies; and
creating sustainable business solutions and initiatives in skilling youth,
promoting health & hygiene, education, cleanliness and environment protection,
stand a testimony to our commitment to contribute not just to our business
interests, but also to society at large.
 History of BHEL

One of the greatest challenges before the Government of India on attaining

freedom in 1947 was to provide a strong base in infrastructure and capital goods
for economic and industrial development. The Government under the leadership
of Prime Minister, Pandit Jawaharlal Nehru realized that there should be a large
manufacturing base and adequate technically qualified personnel for sustained
economic growth.

The country's planners recognized that adequate supply of electric power was a
precondition for long term industrial growth. This could be sustained only with
a strong domestic power equipment industry. Accordingly, the Planning
Commission recommended initiating steps towards setting up a factory for the
manufacture of all types of heavy electrical equipment required for various
projects.
As a result, the Government of India signed an agreement on 17th November,
1955, with Associated Electrical Industries (AEI), UK, for the establishment of
a factory at Bhopal complete in all respects for the manufacture of heavy
electrical equipment in India. The company was registered as Heavy Electricals
(India) Limited (HE(I)L) in the Public Sector under the Ministry of Industry and
Commerce on 29th August, 1956.
Substantial increase in demand for power generating capacity was expected in
the subsequent Five Year Plans being formulated by the Government of India,
with the resolve to push the installed capacity in the country for power
generation up to 1,00,000 MW by the turn of the century. Accordingly a
decision was taken by the Government to set up three more plants for the
manufacture of heavy electrical equipment.

Then There was BHEL

The first one was at Tiruchirappalli (Tamil Nadu) for high pressure boilers, the second one at Hyderabad
(Telangana) for steam turbo generators and high pressure pumps and compressors - both of these with
collaboration from Czechoslovakia and the third plant at Haridwar (Uttarakhand) with erstwhile USSR
collaboration for large steam turbo generating sets and motors and also hydro generating sets including
turbines and generators.

These three newly conceived projects were part of Heavy Electricals (India) Limited for which the work
was initiated at Bhopal. All the initial preparatory work was carried out from Bhopal till November 1964.
Government decided to create a separate corporation for setting-up and managing these three units. Thus
Bharat Heavy Electricals Limited was born and formally incorporated on 13th November, 1964.

These three new plants went into production in the latter half of the sixties, focusing on generation
equipment, in addition to the Bhopal plant, which had already been manufacturing thermal and hydro
generator plants for customer orders from Electricity Boards.

The plants under BHEL also made rapid progress. However, there was considerable overlap as also
complementarities in the product profile and technologies of the two corporations. There was urgent need
for rationalization of product profile, standardization of designs and engineering practices. Integration of
the corporations would result in synergy and optimal use of resources. The merged entity would also be
better able to stand growing global competition. After due deliberations, Government of India in 1972,
decided to merge the operations of the two corporations and create a truly modern global enterprise.
Accordingly, HE(I)L and BHEL formally merged in January 1974.
 ERA OF STRATEGIC PLANNING AND DEVELOPMENT
The merged entity, BHEL systematically upgraded its facilities to manufacture thermal generating sets of
individual capacities ranging from 30 MW to 210 MW, hydro generating plants of various ratings and
transmission products up to 400 kV ratings. The organization began transforming itself from the
production/operations management phase to strategic planning and management phase. BHEL with its
team of 45,000 highly trained and widely experienced technicians and engineers, reached a turnover level
of Rs. 230 crore by the year 1973-74. The company contributed 910 MW of power generating equipment
to India's capacity of 4,579 MW by end of Fourth Plan, in the mid-seventies. BHEL upgraded its products
in association with global leaders to meet changing domestic needs and exports. This period also saw
BHEL embarking on its overseas journey with the execution of the first export order for Malaysia.

Even in the early years, BHEL realized that the future business growth could only come through providing
total service to customer by developing system integration and service capability. The successful
integration of the two corporations created stronger engineering enterprise to meet greater future
challenges. Equally important was creation of in-house visioning and long term planning capability to meet
technology and market changes.

After intense consultations with the stakeholders and benchmarking with global leaders, the company
brought-out a Corporate Plan in March 1974. This was a major step in the history of BHEL and galvanized
the organization for rapid growth and development. It laid the foundation for creating a truly global
enterprise and was a landmark in the corporate history of India.

As envisaged in the Corporate Plan of transformation from "Production Orientation" to "Engineering,

Development and Market Orientation", the strategic initiatives of functional orientation, rationalization and
standardization of products, development of basic R&D, vertical integration, system sales, business
expansion through acquisition, thrust on exports and strengthening customer service capability, among
others were implemented.

Through the setting up of Corporate Research and Development division with a chain of laboratories at
Hyderabad in 1977 and with scientists and highly qualified staff recruited specially for R&D work,
improvements had continuously been made in designs to suit local conditions so as to enable satisfactory
operation of all major equipment. Special divisions were also set up to meet alternative sources of energy.

These efforts also enabled BHEL to meet stringent and urgent needs for supporting the country's nuclear
power programmes. BHEL rose to the occasion by developing steam generators and other equipment
required for nuclear power projects on its own and helped these projects to come on-stream as planned.
Another example of the company rising to the critical needs of the country in crisis situations was at the
time of Oil Shock in 70’s. The company organized quickly for production of oil field equipment including
on-shore oil rigs for ONGC's exploration programmes.

By the end of 70's, systems concept had taken deep roots and BHEL was providing total services from
concept to commissioning to all the customers in energy, industry and transportation segments. During the
first two decades, the company had made substantial investments in meeting the needs of technicians and
engineers. By the 1970's, it was recognized that nurturing managerial talent and future leaders within the
organization was an imperative. The corporate plan helped in addressing this need. BHEL's pool of talent
was also a source for budding leaders in many public and private sector enterprises in India.

As per the plan, the second-generation manufacturing units were set up as Transformer Factory at Jhansi,
Central Foundry Forge Plant at Haridwar, and Seamless Steel Tube Plant at Tiruchirappalli to meet the
objective of expansion and vertical integration.

Further diversification was achieved in 70's with the acquisition of Radio and Electrical Manufacturing
Company (REMCO) rechristened as the Electronics Division to give fillip to the control electronics
business. In line with the Government directives to ensure supplies of BHEL generating and transmission
equipment for power stations including nuclear power generating plants, industries and Indian Railways,
various important steps were initiated with the formation of an Engineering Committee to rationalize the
engineering procedures to result in a unified design for all products under BHEL banner. The company's
pioneering efforts in adopting information technology helped speedy adoption of unified systems in all the
plants.

BHEL had also planned for the higher voltage equipment for transmission of power up to 400 kV and
increased ratings of generation equipment in keeping with global trends. An important step was then taken
in 1974-75 for collaboration with Kraftwerke Union (KWU) of Germany for the design and technology for
thermal generating sets above 210 MW and up to 1,000 MW based on the modular principles of design and
construction.

ERA OF MARKET ORIENTATION TECHNOLOGICAL ADVANCEMENT

The period of 80's was a phase of market orientation for the company and the company faced increased
overseas competition due to resource constraints for power projects in the country. BHEL's operations
were reorganized around business sectors and regions.
Product Manager concept was introduced to address increased accountability and responsibility for an
integrated approach towards maintaining all round growth. A thrust was given on commercialization of in-
house developed technologies and entry into new potential growth areas such as gas turbines, locomotives
and fluidized bed combustion boilers.

Next generation of manufacturing units were added through four smaller plants, for manufacture of
ceramic insulators at Jagdishpur, boiler auxiliaries at Ranipet, industrial valves at Goindwal and non-
conventional energy source (NCES) products at Rudrapur, by the mid-eighties. Mysore Porcelains Limited
(MPL), Bangalore, was merged with BHEL to become the company’s Electro Porcelains Division, for
manufacture of insulator and ceramic liners.

Continued thrust on technology absorption and assimilation resulted in speedy stabilization of 210 MW
thermal sets, which were introduced in 1977 for the first time in Indian power systems. By mid-80's, BHEL
started supplying 500 MW thermal power equipment and had already established itself as a premier public
sector organization in the country, capable of rising to any challenge posed by the environment.

his had been made possible through the process of learning mainly from various stakeholders especially
customers, through regular feedback on power plants in operation. The company developed strengths in
engineering and manufacturing areas to take up production and supply of equipment of any complexity. It
recognized the importance of owning intellectual property and technology to compete in the global area.

ERA OF RESURGENCE, IDEATION AND INNOVATION

The business environment was undergoing a major transformation due to economic liberalization and
lowering of trade barriers in the WTO regime. BHEL had to meet the increased expectations of all
stakeholders. The sea-change in economic and trade policies have brought into sharper focus the immense
potential of some of the strategic moves that the company had already initiated.

Foremost among these were enhancing international competitiveness through technological upgradation,
developing in-house capability for manufacture of key production inputs, emphasis on exports, and
introduction of new product/business areas. BHEL’s 14th manufacturing unit, Electronics Systems
Division was established at Bangalore.

The Corporate Plan for 90's enabled the company to respond to the challenges by reorganizing and
strengthening of marketing and project execution capabilities. BHEL become the only organisation of its
type in the country, which has demonstrated its international competitiveness, by bagging all the power
plant orders in the domestic market, under transparent international competitive bidding (ICB) procedures.
The company also opted for selective financing services to meet the customer requirements.

New growth areas were identified as defence, telecom, large gas turbines and 3-phase AC locomotives.
The thrust of R&D efforts has always been to improve BHEL's competitive edge. In view of the high
potential perceived, BHEL entered the fields of wind energy, HVDC power transmission and the frontier
technology of superconductivity. In the transportation sector, a 40-seater battery powered passenger bus
was developed

BHEL became the first public sector company to obtain ISO 9000 and ISO 14000 accreditations. The
company became fully geared to enter the next century as a Y2K-ready enterprise after implementing an
elaborate strategy to achieve Y2K readiness on a timely basis.

MISSION, VISION AND VALUE OF BHEL

Governance
We are stewards of our shareholders' investments and we take that responsibility very seriously. We are
accountable and responsible for delivering superior results that make a difference in the lives of the people
we touch.

Respect
We value the unique contribution of each individual. We believe in respect for human dignity and we
respect the need to preserve the environment around us.

Excellence
We are committed to deliver and demonstrate excellence in whatever we do.

Loyalty
We are loyal to our customers, to our company and to each other.

Integrity
We work with highest ethical standards and demonstrate a behavior that is honest, decent, and fair. We are
dedicated to the highest levels of personal and institutional integrity.

Commitment
We set high performance standards for ourselves as individuals and our teams. We honour our
commitments in a timely manner.

THE VALUES that inspire BHEL

Innovation
We constantly support development of newer technologies, products, improved processes, better services
and management practices.

Teamwork
We work together as a team to provide the best solutions & services to our customers. Through quality
relationships with all stakeholders, we deliver value to our customers.
People management

As an organisation contributing greatly to the growth of the economy, BHEL is a people-strong company
with an objective of ensuring employee growth and development

With a sturdy foundation of more than fifty years of engineering excellence, BHEL is a people-centric
PSU that has contributed greatly to the growth of the country as a whole. An integrated power plant
equipment manufacturer that is counted among the largest engineering and manufacturing companies
working in the field of design, engineering, manufacturing, construction, testing, commissioning and
servicing of products, systems and services for a number of core sectors of the economy, BHEL has been a
pioneer in initiating employee engagement practices. Through these practices, the organisation aims at
delivering well on its employee expectations in the short and long run.

While the organisation has been busy working towards achieving many more accolades for itself, it surely
does not leave its people behind, as, at the core of all its achievements, are its people. It is remarkable that
the organisation's satisfaction index among its employees has been at 7 on a scale of 10, which is
commendable in contemporary circumstances.

Skill development
As a dependable name in the engineering sector, BHEL provides a lot of importance to skill development
of its employees as is evident from the various training programmes that are organised in house regularly.
The total number of training man-days per employee every fiscal, are in the range of 4 to 6, showcasing
that the organisation is committed towards providing the best of training for skill development to its
employees. Workshops and training programmes are organised at regular intervals to develop management
skills, functional skills and also technical skills of the workforce that is an integral part of this employee-
oriented company. 

Adhering to its primary objective of keeping the employees motivated at all times, BHEL has come up
with a scheme named 'Executive Coaching Scheme' besides other mentoring schemes. Training and
coaching programmes have been developed here keeping in mind the fact that these programmes would
ultimately benefit the organisation in terms of higher work performance and more committed workforce.
The organisation reckons the fact that these schemes go a long way in developing new talents and also
engaging the workforce. These schemes at BHEL focus on enhancing individual effectiveness on the job,
developing business related competencies, and sharing best practices. 

BHEL, being a leading PSU of the country, has an inherent culture with a timeline of more than five
decades. The parameter on culture and values has been rated the highest in various internal as well as
external surveys. The amount of trust the society has placed in this organisation is visible from the fact that
there are several instances of three generations of the same family working here. A number of surveys have
highlighted the fact that BHEL has, over the years, remained a preferred employer with the attrition rate
being less than 1%.

Key HR practices
In line with its commitment towards its human resource, HR policies in BHEL are user-friendly for its
employees. While adopting all contemporary workplace practices, the organisation has ensured
transparency in all HR practices that have instilled two-way trust. Multiple mechanisms have been adopted
for getting employee feedback to ensure that the employees are content. BHEL introduced an online
transparent performance management system way back in 2001-02. It was a milestone as, at that time, this
was not even a norm in the PSUs. Bell-curve system is utilised for employee appraisals. Plans are
evaluated and individual scores are assigned, which are then converted into ratings through a scientific
system-driven process of normalisation. 

With a stable organisation like BHEL, issues like career instability do not crop up for the employees. Job
security, high potential employees' scheme, job rotation, specific growth processes and succession
planning systems are in place since several years. 

The entire process of recruitment in BHEL is e-enabled and transparent. Being a central PSU, all
government guidelines on recruitment and selection are adhered to. The vacancies for which the candidates
are invited from all over the country are widely advertised in the prescribed manner. Besides, notification
is also given to recognised SC/ST associations and employment exchange, wherever required. The
selection committee is constituted in the manner prescribed in government directives and the best suitable
candidates are hired. Besides, the reservation guidelines on recruitment are complied with.

Employees' opinions and perceptions are consolidated and acted upon while framing organisation's
strategies and policies. Career growth-oriented promotion policy provides the platform for growth and
development to all individuals. HR systems are regularly reviewed and benchmarked with the best-in-
class, whether they are HR policies regarding recruitment, employee benefits or HR systems like online
information and claims systems, and employee centric welfare schemes like medical, housing and
insurance.

Attractive employee benefits

Besides the statutory provision of social security, BHEL continues to extend comprehensive post-
retirement benefits to all its employees and their families, both in terms of financial as well as medical
benefits. Opportunities are made available for learning and professional development in a wide range of
technical and functional areas for employees. Employee engagement practices here are not restricted to
excellent training and development benefits. On the contrary, the organisation believes in engaging its
employees by way of quarterly feedback on behavioural aspects, cultural events, sports events, townhalls,
shop councils, plant councils and various management committees for employees. The organisation has
launched a social networking portal that will further the communication between the employees and the
management. A well laid-down mechanism is in place through which employees can voice their grievances
and have them redressed in a time-bound manner. 

BHEL fosters a culture of recognising and incentivising the best work done at all levels. Therefore, to
reward its employees, in addition to the best employee of the quarter, the company has started the Excel
Awards scheme, besides a number of other recognitions.