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

Designation:- Executive manager

Faculty Mentor’s Name: - Dr. Parul Agarwal

Designation: - Associate Professor

Submitted BY
Student’s Name: - NUPUR KUMARI

TABLE OF CONTENT

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Originality of certificate …………………………………..4

Faculty Mentor’s Certificate

Acknowledgement………………………………………………5
Executive Summary
Introduction …………………………………………………………….6-7
About BHEL……………………………………………………………….8-10
History of BHEL………………………………………………………….10-19
People Planning…………………………………………………………..20-23
Recruitment policy ………………………………………………………24-37
Salary grade………………………………………………………………….38-45
Promotion policey………………………………………………………..46-

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3
 Originality certificate

(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)

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 Acknowledgement
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.

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 HR PROCESS
The HR process refers to the set of activities and procedures carried out by the Human
Resources department within an organization. These processes encompass various aspects of
managing employees throughout their lifecycle within the company, including recruitment,
onboarding, performance management, training and development, employee relations,
compensation and benefits, and offboarding.
Each HR process is designed to ensure that the organization effectively acquires, develops,
and retains a skilled and motivated workforce, ultimately contributing to the achievement of
the company's goals and objective.
Recruitment: This process involves sourcing, attracting, and selecting suitable candidates for
job vacancies within the organization. It includes creating job descriptions, advertising job
openings, screening resumes, conducting interviews, and ultimately hiring the most qualified
candidates.
Onboarding: Once new employees are hired, the onboarding process helps them integrate into
the organization smoothly. It includes orientation, introducing them to company policies,
procedures, culture, and providing necessary training to excel in their roles.
Performance Management: This process aims to ensure that employees' performance aligns
with the company's objectives. It involves setting performance goals, conducting regular
performance reviews, offering feedback, and identifying areas for improvement or
development.
Training and Development: HR facilitates employee training and development programs to
enhance their skills and knowledge, contributing to their professional growth and the
organization's overall effectiveness.
Employee Relations: This process focuses on maintaining positive relationships between
employees and the company. HR handles conflict resolution, grievance procedures, and
fosters a healthy work environment.
Compensation and Benefits: HR manages employee compensation packages, including
salary, bonuses, and benefits such as health insurance, retirement plans, and other perks.
Offboarding: When an employee leaves the organization, HR handles the offboarding
process, which includes exit interviews, finalizing paperwork, and ensuring a smooth
transition for the departing employee.

Employee Engagement: HR works to keep employees engaged and motivated in their roles,
promoting job satisfaction and productivity. This involves employee surveys, feedback
mechanisms, and initiatives to improve the overall work experience.

Compliance and Legal Matters: HR ensures that the organization follows labor laws and
regulations, maintains proper documentation, and handles issues related to employment
contracts, discrimination, and other legal matters.

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Succession Planning: HR collaborates with management to identify and develop potential
leaders within the organization, ensuring a smooth transition when key employees move on
or retire.

Each of these HR processes plays a vital role in managing the human capital of an
organization and contributes to its overall success and sustainability. The specific activities
and approaches may vary depending on the company's size, industry, and organizational
culture.

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 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.

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Overview: BHEL was established in 1964, with its headquarters located in New Delhi, India.
It is a public-sector undertaking (PSU) under the ownership of the Indian government. BHEL
operates in the field of power generation, transmission, transportation, and other industrial
sectors.

Business Segments: BHEL is primarily involved in three main business segments:

a. Power: BHEL is a leading manufacturer of power generation equipment, including boilers,

turbines, generators, and auxiliary systems for thermal, nuclear, hydro, and gas-based power
plants.

b. Industry: BHEL supplies a wide range of products and systems to various industrial
sectors, such as cement, steel, refineries, petrochemicals, and defense.

c. Transportation: BHEL manufactures electric locomotives, traction motors, and other

components for the railway transportation sector.

Manufacturing Facilities: BHEL has a vast manufacturing infrastructure spread across

multiple locations in India. Some of the major manufacturing units are in places like Bhopal,
Haridwar, Trichy, Ranipet, Jhansi, Hyderabad, and Bangalore.

Research and Development: BHEL emphasizes research and development to stay at the
forefront of technological advancements. It has research centers and labs to develop new
products and improve existing ones.

Global Presence: BHEL has a significant international presence with project exports and
collaborations worldwide. It has executed projects and supplied equipment to various
countries across continents.

Public Sector Status: As a public-sector undertaking, BHEL plays a crucial role in supporting
India's infrastructure development and energy needs. It collaborates with other PSUs, the
government, and private enterprises on various projects.

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Financial Performance: BHEL's financial performance has been subject to market conditions,
government policies, and industry trends. Like many engineering and infrastructure
companies, it faced challenges due to economic fluctuations and changes in the energy sector.

Diversification Efforts: Over the years, BHEL has diversified its portfolio by venturing into
renewable energy sources, such as solar and wind power, to adapt to the changing global
energy landscape.

BHEL's contributions to India's industrial growth, power generation, and transportation

sectors have been significant. It continues to be an essential player in the country's
infrastructure development and is committed to technological excellence, environmental
sustainability, and providing reliable energy solutions.

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.

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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

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(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.

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 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.

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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

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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,

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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

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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.

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 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. 

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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

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 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.

BHEL RECRUITMENT POLICY

OBJECTIVES
   
To meet the requirement of staff in the Company, both in terms of numbers and requisite
  knowledge, skills and attitude.
   
To lay down the standards for recruiting employees from outside to ensure transparency and
adherence to uniform standards.
DEFINITIONS
   
  Unless repugnant in the text or context, the following are the definitions of words used herein:
   
(i) ‘Competent Authority' means the Chairman and Managing Director or any other authority delegated
  with powers in this behalf.
   
(ii) ‘Appointing Authority' in relation to a specific post means the authority declared as such in the
  delegation of powers.
   
(iii) ‘Employee’ means any person appointed by the Company as regular or temporary employee other
  than on deputation or casual employment.  The term also includes Company’s own trainees.
   
(iv) ‘Deceased employee’ means an employee who dies while in company service.
 

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(v)  
  ‘Dependent of the deceased employee’ means only son, daughter or spouse of the employee.
 
3.0 APPOINTING AUTHORITY
   
(a) The Chairman and Managing Director is the appointing authority for appointments to posts at E5
  and above levels except that to which appointments are made by the Government.
   
(b) For appointments to posts upto E4 levels, the appointing authority is the authority delegated with the
  powers in this regard.
 
4.0 INDUCTION LEVELS
4.1 Job specifications for Induction Levels of Executives and Non-Executives are given in Annexure I
and Annexure II respectively.
4.2 Recruitment to various posts is normally made at the induction levels indicated in the Annexures.
The requirement of posts at other than induction levels, is normally met from amongst the Company
employees.  In exceptional circumstances, however, recruitment to posts at other than induction
levels may be resorted to, with the prior approval of the Corporate Office, if candidates, with
suitable skill and experience are not available internally in required numbers.
4.3 In the Executive Cadre, induction is normally at grade E1 by absorption of Executive/ Engineer
Trainees on their satisfactory completion of training in accordance with the relevant training
schemes of the Company.  Direct recruitment to this Cadre is made only in cases where such
training is not envisaged, such as in Law and Medical functions.  All posts in grades higher than
E1A including the Sr. Executive Cadre are normally filled from amongst internal candidates unless
otherwise decided by the Competent Authority.
 
4.4 Induction levels for various categories are as under:
 
Category Grade
Unskilled Group AI*
Skilled Group AIII*
Supervisory  Group S0**
Engineer / Executive ET***
 
* Appointment to induction level posts for AI and AIII grades is as Temporary employees for a
period of one year on consolidated wages basis before regularization in the relevant regular grade
on successful completion of Temporary period.
 
 ** Induction to S0 grade in the Technical/Non-Technical group is normally for the post of
Supervisor Trainees, who will undergo training for a period of one year and will get absorbed as
Assistant Engineer II (SAI)/ Assistant Officer II (SBI) grade, on successful completion of
training.
 
*** Induction to Engineer/ Executive cadre is normally through the post of Engineer/ Executive
Trainees, who will undergo training for a period of one year and will get absorbed as Engineer /

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 Executive/ Officer in the E1 grade, on successful completion of training.
 
On regularization/ successful completion of training, the employee will be on probation for a
period of one year.
 
4.5 In the 'B' group of salary grades (Non-Technical) direct recruitment when made is at grades BI,
BIII, BIV (for Stenographers and Receptionists), BV (for Staff Nurses), and S0 grade unless
specifically decided otherwise by the Competent Authority.  
 
4.6 Any departure from the above shall require prior approval of Corporate Office in each case.
5.0 SOURCES OF RECRUITMENT
  Recruitment to induction levels and other levels, where approved by the Competent Authority, is
normally made from the sources mentioned below:
 
5.1 Open Market
Posts Source  
 
(i) Post in the Executive Cadre including    
Executive / Engineer  Trainees  
 
From open market through
 
(ii)  Posts in Non-Executive Cadre advertisement on All India Basis  
including Supervisor Trainees in the Press (National and/or
 
Regional Dailies, Employment
 
(iii) Posts in Non-Executive Cadre News) & Careers Website).
 
(Artisans)
 
 

In addition, vacancies to be notified to :

- Employment Exchanges as per the provisions of the Employment Exchanges (Compulsory

Notification of Vacancies) Act, 1959.

-  The vacancies of Group ‘C’ and ‘D’ to be notified to the Regional or Local employment

exchanges of the State in which the Units are located. Recruitment notices should be displayed on
the Office notice boards also for wider publicity. Notification to Central Employment Exchanges
/Local Press need be undertaken if it is felt that sufficient number of reserved category candidates
may not be available in the State, where the Units are located.

- DOPT Recognized Associations/Organizations of Scheduled Castes/ Scheduled Tribes, Ex-

Servicemen and other similar special categories. The vacancies shall be notified   with an advice
that candidates may be advised to follow the procedure of applying as prescribed.

- All the vacancies earmarked for Ex-Servicemen in Group ‘C’ and ‘D’ should be notified to Zilla /

23
 Rajya Sainik Board/ Directorate General Resettlement for sponsoring/ nominating Ex-Servicemen.

-  Vacancy Notifications/Advertisements for filling vacancies reserved for the Physically

Challenged persons are to be sent to the Special Employment Exchanges, Vocational Rehabilitation
Centers and All India Federation of Blind, for Physically Handicapped persons functioning in the
States, in addition to Local/ Regional Employment Exchanges.  Where there are no Special
Employment Exchanges, the vacancy Notification may be sent to the nearest Local Employment
Exchange.  A list of posts with identified disabilities specific to BHEL is enclosed as Annexure
III.  The List of Special Employment Exchanges for Physically Challenged can be found at
http://www.ncpedp.org/employ/sch-exch.htm
 
5.2 Campus Recruitment:
From reputed Engineering/ Management Institutes through Campus interviews subject to legal
position on this source of recruitment.
5.3 Internal Candidates:
Internal candidates possessing the requisite qualifications and experience etc. as prescribed for
them are eligible to apply and be considered on equal merits along with others for all posts
advertised and sought to be filled up.  There will be no upper age limit for departmental candidates

5.4 Deputation:
By immediate absorption of deputationists from the Central/State Governments and other Public
Sector Undertakings.  Exemption from this should be on account of non-availability of suitable
persons for particular posts and after all attempts have been made to fill up the post on a regular
basis. However, Government of India guidelines issued on this subject  from time to time shall
apply.
5.5 Recruitment of Specialists working abroad with experience in cutting edge technologies of
relevance to BHEL. This source of recruitment shall be invoked in exceptional circumstances with
the approval of Board of Directors.
 
5.6 Ex-BHEL Personnel:
While prior employment with BHEL does not give any preferential right, the Company may
consider re-employing ex-BHEL employees whose training/ experience gained in BHEL is of a
specialized nature. Such re-employment shall be through open advertisement and will be subject to
their meeting the criteria prescribed.
 
6.0 PREFERENCE IN RECRUITMENT
 
6.1 It is the policy of the Company to help the Government in achieving its objectives in respect of the
socio-economic status of those belonging to weaker sections of the society. In order that this
objective is realized, the Company does not spare any efforts to adhere to and follow the
Presidential/ Govt. Directives/ Act concerning reservation of vacancies and concessions allowed to
candidates belonging to Scheduled Caste/ Scheduled Tribes/ Other Backward Classes/
Economically Weaker Sections/ Ex-Servicemen/ Physically Challenged/ Minority Communities etc.
All Units/ Divisions must ensure fulfillment of the requirements in this regard and send periodical
returns to the Corporate Office as required.
 

24
6.2 As per the Presidential Directives on Reservation, a certain percentage of posts under its (GOI)
control is reserved for SC/ ST/ OBC and EWS. In order to determine the number of vacancies for
SCs, STs, OBCs and EWSs, in a particular recruitment, Reservation Rosters have been prescribed.
The following are the percentage of reservations in various methods of Direct Recruitment:

Type of Recruitment SC   ST OBC  EWS 

(i) Group A & B posts:    
By open competition on
All India Basis. 15% 7.50%  27% 10% 
(ii) Group A & B posts:  
Otherwise than by open  
competition on All India 16.66% 7.50% 25.84%  10% 
Basis.
(iii) Group C & D posts      
normally attracting
candidates from a As per
locality or a region.  State  Roster 

7.0 PROCEDURAL DETAILS/ AGE LIMITS

 
7.1 A candidate is considered for appointment only if his age, according to Matriculation/ SSLC/
Higher Secondary certificate or the birth certificate issued by the concerned authorities is above 18
years and below the upper age limits laid down in the job specifications, provided that the upper age
limit may be relaxed as per rules in respect of different categories as prescribed in Presidential/
Govt. Directives/ Act.
 
7.2 No person can be appointed if his age is 60 years or above.
8.0 RELAXATIONS & CONCESSIONS FOR SC/ST/OBC CANDIDATES
 
Age Upper age limit is relaxable by 05 years for SC/ST and by 03 years for OBC (Non-Creamy Layer)
candidates.
Fee SC/ST candidates are exempt from payment of fees for admission to any examination for
recruitment/selection.
9.0 RESERVATION & CONCESSIONS FOR PHYSICALLY CHALLENGED CANDIDATES
 
9.1 3% posts are reserved for persons with physical disabilities (Physically Challenged) of which 1%
each for persons with following disabilities: -
 
i)         Blindness or Low Vision (Visually Handicapped).
ii)        Hearing Impairment (Hearing Handicapped).
iii)        Locomotor Disability or Cerebral Palsy (Orthopedically Handicapped).

25
          If a post is identified suitable only for one category of disability, reservation in that post
shall be given to persons with that disability only.  Reservation of 3% shall not be reduced
in such cases and total reservation in the post will be given to persons suffering from the
disability for which it has been identified.  Likewise, in case the post is identified suitable
for two categories of disabilities, reservation shall be distributed between persons with
those categories of disabilities equally, as far as possible.  It shall, however, be ensured
that reservation in different posts is distributed in such a way that the persons of three
categories of disabilities, as far as possible, get equal representation.
Fee Physically Challenged candidates are exempt from payment of fees for admission to any
examination for recruitment/selection.
9.2 The Physically challenged persons appointed will be placed in the SC/ST/OBC/EWS Reservation
Roster in the appropriate category, i.e., SC/ST/OBC/EWS or General depending upon the category
to which they belong. This 3% reservation will be within the prescribed percentage of reservation
for SC/ST/OBC/EWS and will not result in increase in overall reservation for SC/ST/OBC/EWS.
 
9.3 Upper  age  limit  for  persons  with   disabilities  shall  be  relaxable  by  (a) 10 years (15 years for
SCs/STs and 13 years for OBCs) in case of direct recruitment to Group C and Group D posts; (b) 5
years (10 years for SCs/STs and 8 years for OBCs) in case of direct recruitment to Group A and
Group B posts where recruitment is made otherwise than through open competitive examination;
and (c) 10 years (15 years for SCs/STs and 13 years for OBCs) in case of direct recruitment  to
Group A and Group B posts through open competitive examination.
 
10.0 RESERVATION TO EX-SERVICEMEN
10.1 Reservation for posts, to be filled by direct recruitment of Ex-Servicemen, to the following extent
have been prescribed: -
                                                Group C Posts            _        14.5%
                                                Group D Posts            _          24.5%
 
10.2 As in the case of Physically Handicapped, the percentage of reservation for Ex- Servicemen is
within the overall percentage of reservation for SC/ST/OBC and will be shown against relevant
categories, viz., SC/ST/OBC or General
10.3 Ex-Servicemen who have put in not less than six month¿s continuous service in armed forces shall
be allowed to deduct the period of such service from their actual age and if the resultant age does
not exceed the prescribed maximum age by more than three years, they shall be deemed to satisfy
the condition regarding age limit. 
 
11.0 MODE OF RECRUITMENT
 
11.1 Unskilled, Semi-skilled, Skilled and Supervisory Groups:
All posts in this group required to be filled by outside recruitment shall be notified to the
appropriate Employment Exchange in the manner as provided in the Employment Exchanges
(Compulsory Notification of Vacancies) Act, 1959 and Rules. In addition, a notification is to be
issued in the 'Employment News' published by the Publication Division of the Ministry of
Information and Broadcasting, Government of India and in other National/ Regional Dailies. In
addition, the Recruitment notice is to be displayed on the Notice Board of the Units. All the eligible
candidates, who have submitted their applications in response to the above notifications, shall be

26
 considered.
11.2 Executive and Sr. Executive Cadre:
An advertisement is required to be issued in leading daily newspapers on an All-India basis to tap
fully the potential available in the open market. However, where job is of a special nature which can
be performed only by certain types of specialized personnel, the Competent Authority may decide
to fill-up the posts by persons on deputation from the Central/ State Governments and other Public
Sector Undertakings. Where recruitment from open market is resorted to, other sources available, as
mentioned at 5.2, 5.5 and 5.6 may also be drawn upon where considered necessary by the
Competent Authority.
11.3 Safety, Welfare and Hindi Officer:
Separate Policy for recruitment is annexed as Annexure IV, V & VI.
   
12.0 SELECTION PROCESS
   
12.1 Constitution of Selection Boards:
 
Selection Boards are constituted by the appointing authority/ Personnel Heads to conduct tests/
interviews and to select candidates for appointment to any posts in the company from among those
called for such tests/ interviews.  Selections to posts in the Senior Executive Cadre and other
common Executive Cadre are conducted by the Central Selection Board constituted for the purpose
by the Corporate Office.  For selection to posts falling within the purview of the Unit Management,
Selection Boards are constituted as required or as prescribed by Corporate Office, provided that in
the case of recruitment to Executive posts, a member of the Central Selection Board is associated.
12.2 An officer belonging to different categories / communities is to be co-opted on the Selection Boards
in terms of Presidential / Govt. Directives on the reservation/ safeguarding the interests for different
categories/ communities including minorities.
 
For making recruitment to 10 or more vacancies in any level of posts or services, it shall be
mandatory to have one Member belonging to SC/ST, one member belonging to OBC category and
one member belonging to Minority Community in such Committees/Boards. Further, one of the
members of the Selection Committee/Board, whether from the general category or from the
minority community or from the SC/ST/OBC community should be a lady failing which a lady
member should be co-opted on the Committee/Board. Where the number of vacancies against which
selection is to be made is less than ten, no effort should be spared in finding the SC/ST, OBC
Officer and the Minority Community Officer and a lady officer, for inclusion in such
Committees/Boards.
   
13.0 EMPLOYMENT TO DEPENDENTS OF DECEASED EMPLOYEES
General guidelines to be followed for direct employment on compassionate grounds are as under :
   
13.1 Employee dying due to accident ‘during the course of’ and ‘arising out of employment’ 
In such eventualities, existing practice of consideration on case to case basis for sanction of vacancy
(USW/ SSW/ Artisan or Clerk) will continue keeping in view that none of the children or the spouse
of such employees is already employed in Govt./ Semi Govt./ Autonomous Body/ PSU/
Organisations listed on Stock Exchange.  Such appointment will, however, be subject to assessment
of suitability.
 

27
13.2 In other cases of death
 
 i) In other cases, whenever Units are sanctioned vacancies of USW/ SSW/ Artisans and Clerk,
upto 25% vacancies may be earmarked for being filled-up from dependants of deceased
employees (spouse/ son/ unmarried daughter) subject to their meeting the job-specifications
and consideration for suitability.  If number of vacancies sanctioned are so low that it is
difficult to adopt above criteria for reserving vacancies, decision in this regard may be taken by
the Unit Incharge. In addition, this consideration is available provided none of the children or
the spouse of such employees is already employed in Govt./ Semi-Govt./ Autonomous Body/
PSU/ Organisations listed on Stock Exchange.
 
(ii) Age relaxation may be allowed as under:
 
a)  Employees dying due to accident ‘during the course of’ and ‘arising out of Employment’ on
merit of each case.
 
(b)In other cases age relaxation upto a maximum of 5 years.
 
iii)   The reservation for various categories like SC/ST/ OBC/EWS etc. may be worked-out for
the total number of vacancies sanctioned and accordingly filled-up.  However, it should be an
endeavor to fill-up vacancies kept reserved for dependents of deceased employees, to the
extent possible, from such candidates on pro-rata basis.
 
iv)  A separate written test may be conducted for dependents of deceased employees in case
written examination is being conducted for remaining vacancies also.
 
v)   A separate panel may be prepared for dependents of deceased employees.
13.3 Notification of vacancies to Employment Exchange
It is obligatory to notify such vacancies to Employment Exchange concerned indicating in the
requisition that the vacancy (ies) in question are proposed to be filled by the dependents of the
deceased employees and that the submissions by the Employment Exchange are not required.
 
13.4 General 
In case, some of the vacancies kept reserved for dependents of deceased employees remain unfilled
due to non-availability of suitable candidates, Units are vested with the powers to fill-up these
vacancies from other candidates.
  Note: For purpose of this concession 'dependent' means only son, daughter or spouse of the
employee. 'Deceased employee' means an employee who dies while in company service.
 
14.0 APPOINTMENTS
14.1 Appointment Offers:
An offer of appointment is issued to the selected candidate in the prescribed format.  This is signed
by the Appointing Authority or the officer to whom the power is delegated in this behalf/ nominated
for this purpose.
14.2 Joining Time:
Normally a person to who an offer of appointment has been made is expected to join the services of
the Company within 30 days from the date of issue of appointment offer.  However, extension in

28
 this period may be granted by the Competent Authority depending upon exigencies of work,
urgency with which the post is to be filled up etc.  If the candidate does not report for duty within
the stipulated period, the offer of appointment shall be deemed to have been withdrawn.
14.3 Medical Fitness:
Every candidate appointed to a post in the Company is required to undergo a medical examination
by the Company's Medical Officer at the time of appointment and is required to satisfy the medical
fitness standards prescribed for the post.  This does not, however, apply to an internal candidate of
the Company who has already been medically examined and declared fit at the time of his initial
appointment and such other candidates who come from Central/ State Government unless the
Appointing Authority decides otherwise. The Medical Examination and the fitness or otherwise is
governed by the Medical Examination Rules of the Company.
14.4 Reference checks and antecedent’s verification:
The character and antecedents of all the selected candidates shall be verified in the manner
prescribed by the Management. However, employees recruited under the Ex-servicemen quota are
exempted from verification of character and antecedents if the period intervening their date of
discharge from Armed forces & their date of joining the Company is less than one year.
 
14.5 Joining Formalities:
Appointees to regular scales of pay, on joining the Company to take up appointment, are required to
report to the HR Head of the Unit concerned and furnish such documents as are required by them.
If on verification at the time of appointment or at a later date, it is found that an appointee has
furnished wrong information, having bearing on his eligibility and/or suitability for selection to the
post, he is liable for termination from the services of the Company
14.6 Seniority:
Seniority on appointment is strictly as per the merit list drawn up by the Selection Committee. 
After a candidate is inducted into the Organization, he is given a seniority status vis-à-vis his
existing colleagues in the Company, based upon his date of entry into that particular grade and
taking into account weightage, if any, granted for his earlier service.  Weightage for past service has
to be approved in each individual case by Corporate Office.
 CMD  Rs.200000-370000
14.7 Probation and Confirmation:
All appointees in the Company are governed
 Director by the rules relating to probation and confirmation as
 Rs.180000-340000
notified from time to time.   
   
 Executive Director  Rs.150000-300000
15.0 INTERPRETATION AND CHANGES
The Chairman and Managing Director shall be the final authority in the interpretation of these rules.
 
 E-8 - General Manager  Rs.120000-280000
  E-7 - Addl. General Manager  Rs.120000-280000
 E-6A - Sr. Deputy Gen. Manager  Rs.120000-280000
 E-6 - Deputy General. Manager  Rs.100000-260000
 E-5 - Senior Manager   Rs.100000-260000 SALARY GRADES
 1. Executive Salary Grades
 E-4 - Manager   Rs.90000-240000 with effect from 1.1.2017:
 E-3 - Deputy Manager  Rs.80000-220000  
  E-2 - Sr. Engineer/Officer /  Rs.70000-200000
 

        Sr. Executive
29
 E-1 -Engineer/Officer/Executive    Rs.60000-180000

  ET - Executive Trainee  Rs.50000-160000

  
 

 
  

 
   

 
  
 

  
 

 
  
 
 
 

 
  
 

 
    A - Technical   
 
 SA VIII  Rs.90000-240000
 SA VII  Rs.90000-240000 2. Non-Executive Salary
 SA VI  Rs.80000-220000 Grades with effect from
1.1.2017:
 SA V   Rs.70000-200000       
 SA IV  Rs.60000-180000                                                     
  
 S3A*  Rs.48000-150000
SA III / SAIII A / AIX / AIX A  Rs.42500-140000
SA II / AVIII  Rs.37000-130000
 JE Rs.35000-125000 
SAI / AVII Rs.33500-120000
S0 Rs.32000-100000
 AVI  Rs.31000-95000
 AV  Rs.30500-85000 
 AIV   Rs.30000-75000
 AIII   Rs.29500-65000
AII   Rs.24000-55000
30
 AI   Rs.23000-50000
   
   
 DearnessAllowance:

1. With effect from 01.01.2017 Dearness Allowance is granted to compensate the price
increase above AICPI 277.33, to which the revised salary grades relate. The payment of D.A.
is based on 100% neutralisation over quarterly of AICPI 277.33.

2. The periodicity and effective dates of revision will be as under:

3. in determining the average consumer price index the actual up to two places of decimal
will be reckoned.
4. For computation of D.A. 50 paise and above to be rounded off to next Rupee and less than
50 Paise to be ignored.
5. D.A. on HPL
D.A. during Half Pay Leave is to be computed with reference to the basic pay actually
drawn.  In other words, in such cases D.A. will be computed on the reduced pay only.

Pay fixation on Promotion

 Pay fixation on promotion from E4 grade to E5 grade w.e.f. 25.06.2017

Pay Scale of E4 grade:
Pay Scale of E5 grade:

  Detail  Amount Rs.      

Per Month
  Revised Basic Pay as on 01.01.2017 in E4  103180.00         
A grade
 B Annual Increment if due (3% of 'A')       3095.40
C   Notional Increment (3% of 'A')      3095.40
  Total (A+B+ C)   109370.80         
D
 E Basic Pay rounded off (to the next  109380.00
31 multiple of Rs.10) and fixed as on
25.06.2017 in E5 grade 
  HOUSE RENT ALLOWANCE & LEASING OF ACCOMMODATION

A HOUSE RENT ALLOWANCE

1. Payment of House Rent Allowance on revised basic pay w.e.f. the date of issuance of
presidential Directive i.e. 27.12.2017 to the employees not provided with company
accommodation will be at the following rates:
 Classification of cities Rate of HRA 
 X-Class (Population of 50 lakhs and  24% of Basic Pay
above 
 Y-Class (Population of 5 Lakh to 50 lakh)  16% of Basic
Pay 
 Z-Class (Population below 5 lakh) 8% of Basic Pay
DOE Guidelines : Classification of Cities into X Y Z

The rates of HRA will be revised to 27%, 18% & 9% for X,Y and Z class cities respectively
when IDA crosses 25% and further revised to 30%, 20% & 10% when IDA crosses 50%.
The payment of HRA shall be as per classification of cities notified by the Government.

 Payment of Performance Related Pay (PRP)

 for the year 2017-18 for Executives and Supervisors in S4 and above grades. 

In terms of the Presidential Directives received, revised scheme for payment of Performance
Related Pay for all Executives and Supervisors in S4 & above grades is being introduced with
effect from the FY 2017-18. The revised scheme of Performance Related Pay (PRP) as
approved by the Remuneration Committee and the Board of Directors of BHEL for the year
2017-18 is as under: -
 Scheme
The scheme will be applicable to all Executives and Supervisors in S4 & above grades on the
rolls of the Company as on 01.04.2017 and to those who joined thereafter. Payment will
however be made for the actual service rendered during the period from April, 2017 to
March, 2018. 
Methodology 

1. The overall profit for distribution of PRP shall be limited to 5% of the year's profit
accruing only from core business activities (without consideration of interest on idle cash /
bank balances), which will be exclusively for Executives and Supervisors in S4 & above
grades of the Company. 

32
2. The ratio of break-up of profit accruing from core business activities for payment of
PRP between relevant year's profit to Incremental profit shall be 65:35 to arrive at the
Allocable profits and the Kitty factor. 

I. PRP differentiator components:

(A) PRP payout is to be distributed based on the addition of following parts/

components: -
Company Performance Component: -

a) Weightage = 50% of PRP payout 

b) Based on Company MOU rating:

 MOU rating  %age eligibility of PRP

 Excellent  100%
 Very Good  75%
 Good  50%
 Fair  25%
 Poor  Nil

Accordingly, for the FY 2017-18 since the MOU rating is 'Excellent', the percentage
eligibility for Company Performance Component shall be taken as 100%. 
Team Performance Component: -

a) Weightage = 30% of PRP payout 

b) Based on Team rating (i.e. linked to Plant/Unit's productivity measures and

operational / physical performance): 
 Team rating  %age eligibility of PRP
 Excellent  100%
 Very Good  80%
 Good  60%
 Fair  40%
 Poor  Nil

33
c) The Team rating shall be derived from the MOU rating and the contribution of group
of individuals towards common goals of the Unit/Product/Function. 
 Individual Performance Component: -
a) Weightage = 20% of PRP payout 

b) Based on Individual performance rating {i.e. as per the Company Performance

Management System (PMS)}:
 Individual performance rating  %age eligibility of PRP
 Excellent  100%
 Very Good  80%
 Good / Average  60%
 Fair  40%
 Poor  Nil

c) Those with MAP/PMS-S score of less than 3 would not be entitled for payment of
any PRP.

d) Capping on assigning 'Excellent' rating to not more than 15% of the total eligible
employees has been applied.

e) However, in respect of ETs (Executive Trainees / Engineer Trainees), who are not
assessed through a formal performance Management System during the training period, the
individual performance rating has been arrived at based on the marks secured in the
absorption test at the end of training period.
II. Percentage ceiling of PRP (%age of BP):
a) The grade-wise percentage ceiling for drawal of PRP within the allocable profits has
been rationalized as under:
 Grade  Ceiling (% of Basic Pay)
 S4 to S6  40
 S7 & S8   50
 ET to E3  40
 E4 to E5  50
 E6 to E6A  60
 E7  70
 E8  80
 E9  90
Director  125
CMD  150

34
PROMOTION POLICEY AND RULES

To provide all employees with broad equality of opportunity in growth and career prospects.

To ensure fairness, equitability, consistency and uniformity in the matters of promotion of

employees in all the Units/Divisions of the Company.

To sustain the high morale of the employees by recognising and rewarding employees for
their contribution to the growth of the Organisation.

Promotion Rules

2.1 Classification of Cadres

For purposes of promotion and career growth all employees are included in one of the
following cadres:

a)Executive Cadre

b)Supervisory Cadre

c) workmen cadre

3.0 In the Executive Cadre, promotions will be regulated either by the Unit Management or
Corporate Office (to be referred to hereinafter as Corporate Cadre Promotions). The salary
grades in the purview of Unit Management and Corporate Office will be notified from time to
time.

4.0 Guidelines and Principles

4.1 Promotion from one Cadre and another Cadre

Employees are eligible for consideration for Promotion to the higher cadre on completion of a
specified number of years of service (to be referred to hereinafter as eligibility period) in the

35
highest non-equivalent grade in the lower cadre. The eligibility period for consideration for
promotion will be notified by the Management from time to time keeping in view the
requirements of the organisation. Promotion from one cadre to another cadre is decided on
the basis of relative merit as assessed through a selection process, as defined in the Promotion
Guidelines notified from time to time. Promotion from one Cadre to another Cadre will be
made only at lowest post/grade in the higher cadre.

4.2 Promotion within a Cadre

Employees are eligible for consideration for promotion from a lower grade to the next higher
grade within the same cadre on completion of the number of years of service prescribed in the
lower grade (to be referred to hereinafter as the ('eligibility period'). The 'eligibility period'
for consideration for promotion will be notified by the Management from time to time
keeping in view the requirements of the Organisation. Promotion within a cadre is decided on
the basis of relative merit as per specified parameters/criteria mentioned in promotion
guidelines which are notified from time to time.

Probation shall be regulated as provided in the chapter on 'General Terms and

Conditions' of HR Manual.

4.3 'Fast Track Promotions'

With a view to rewarding employees for sustained outstanding performance, displaying high
potential, and in order to provide motivation to them for further improvement, accelerated
promotions can be considered for eligible employees on completion of a specified period of
service as may be prescribed for this purpose from time to time for each grade.

5.0 ' Channels of Promotion

Promotion of an employee means his movement from a post in a lower grade/ cadre to a post
in the next higher grade / cadre along with respective promotion channels specified for the p
Rules and Procedures urpose. The channels of promotion are shown for the non-executive
cadre at Annexure I & Annexure II and for Executive cadre at Annexure- III.

6.0 Rules and Procedures

Promotions will be considered by Departmental Promotion Committees (DPCs) to be

constituted at the Unit level for various grades falling under the purview of the Unit
Management. Corporate Cadre Promotions will be coordinated by Corporate HR centrally
with DPCs being constituted at the Corporate level. The criteria adopted by the DPC for
considering promotions will broadly include factors such as qualifications, experience,

36
performance, general suitability and potential for higher responsibility.

Further, DPC has full discretion to devise its method and procedure within the framework of
company policy / guidelines for objective assessment of suitability and relative merit of the
employees being considered by it. In assessing the suitability of an employee on whom a
penalty has been imposed, the DPC will take into account the circumstances leading to the
imposition of the penalty and decide in the light of general service record of the employee
and the fact of imposition of penalty, whether the employee should be promoted. The DPC
after due consideration has authority to assess the employee as 'unfit' for promotion. However
where the DPC considers that despite the penalty the employee is suitable for promotion,
promotion will be effected only after the currency of penalty is over.

In case of promotion from Supervisory cadre to Executive cadre, the Selection Committee
should include a Central Selection Board Member.

Vigilance clearance should be obtained in respect of all employees, who are in the zone of
consideration, before considering them for promotion.

The promotion cases of eligible employees who are transferred after 31st March and before
June, will be considered by the previous unit, if due for promotion, during that year. The
recommendations of the DPC will be communicated to the latter unit for issue of orders.

For purposes of reckoning Suitability for promotion, the average EOL availed during the
preceding three years will be taken note of. In cases where the average EOL during the last
three years exceeds 30 days per year, this would go against the employee in the matter of
suitability for promotion. EOL on medical grounds certified by the company / Govt Medical
Officer will be excluded for this purpose.

The dispensation of 30 days average EOL during last three years, as stated above, is
invariably applicable when an employee comes up for consideration for promotion for the
first time. However, in cases where an employee has already been dropped once on this
account, the concept of average EOL during last three years shall not be invoked, provided
the employee has not availed more than 30 days of EOL on an average during the subsequent
performance years including the year in which he / she is being considered for promotion.
The period spent on unauthorised absence shall not be reckoned for the purpose of computing
the eligibility period for consideration of promotion.

7.0 Preference for SC/ST

37
The orders issued by the Government of India from time to time relating to reservations /
concessions for SC/ST employees will be observed in so far as these are applicable in the
context of BHEL promotion policey.

8.0Seniority

Seniority shall be determined as provided in the Chapter on 'General Terms and

Conditions’ of HR Manual.

9.0 Representations regarding Non-Selection or Super-session

An attempt is always made by the Divisional/Departmental Head to explain to an employee

the reasons for his/her non-selection so that the employee has an opportunity to make up
his/her deficiencies in the relevant area. If the employee still has a grievance he/she may
submit a representation to the competent authority through proper channel.

The Head of Department will examine the case and submit to the General Manager/Executive
Director with his remarks/ recommendations for orders . .

Representations must be submitted within one month of the date of release of promotion
order/list and unbecoming language will not only be rejected but will be taken up suitably
with the employee concerned. Also joint appeals or representations will not be entertained.

10.0 Promotion of Employees whose conduct is under investigation

10.1 As per extant Promotion policy guidelines, Sealed Cover Procedure is applicable to the
following categories of employees at the time of consideration of promotion and details of
such employees falling in the consideration zone for promotion should be specifically
brought to the notice of the Departmental Promotion Committee: -

i) Employees Under suspension. .

ii) Employees in respect of whom a charge-sheet has been issued and disciplinary
proceedings are pending ………………………..

38
iii) Employees in respect of whom prosecution for a criminal charge is pending.

The criminal charge would be deemed to be pending under the following circumstances: i) In
the case of Police / CBI proceedings, only upon issuance of the charge sheet. ii) In the case of
a private complaint, only upon framing of charges by the judge.

Clarification regarding the further course of action in the following situations:

i. The employee is acquitted by trial court but an appeal against the judgment is either
contemplated or has been filed;

ii. The employee has been found guilty in Disciplinary Proceedings / by the trial court and an
appeal against the penalty order is pending at Appellate / Reviewing Authority under BHEL
CDA Rules or an appeal has been filed in higher court for setting aside the penalty order;

Following is clarified in this regard .

1 . In case an employee has been acquitted by trail court but an appeal against the judgment is
either contemplated or has been filed, following procedure shall be adhered to:
.

i) Where the recommendations of DPC has been kept in sealed cover solely on account of
pendency of the criminal case, the sealed cover shall be opened in case of acquittal of the
employee provided it has not been stayed by a superior court.

ii) In the order of promotion, a mention shall, however, be made that the promotion is
provisional subject to the outcome of appeal that may be filed against the acquittal of the
employee. The promotion thus will be without prejudice to the action that may be taken if the
judgment of the trial court acquitting the employee is set-aside.

iii) In case on appeal the employee stands convicted, following action will be taken:
.

a. The provisional promotion shall be deemed 'not est', and the employee shall stand reverted;

b. In case of the employee being sentenced to imprisonment exceeding 48 hours, he will be

deemed to be under suspension in terms of these act.

39
c. Action under Rule 30 (i) of BHEL CDA Rules shall be taken.

2. In case an employee has been found guilty as a result of disciplinary proceeding or has
been convicted after a judicial adjudicatory process, an appeal against the penalty / conviction
or even a stay on the sentence shall have no effect unless conviction itself has been stayed.
Accordingly, in such cases, 'sealed cover' shall not be opened. Further as the disciplinary /
criminal proceedings are not 'per se' pending, there is no requirement to adopt 'sealed cover
procedure' for further promotions.

10.2 The Departmental Promotion Committee shall assess the suitability of the employees
coming within the purview of the circumstances mentioned above along with other eligible
employees without taking into consideration the disciplinary case/criminal prosecution
pending. The assessment of the DPC, including ¿Unfit for Promotion¿, and the grading
awarded by it will be kept in a sealed cover. The cover will be super-scribed 'Findings
regarding suitability for promotion to the grade/post of.................................in respect of
Shri............................. Staff No...........................(name of the employee and Staff No.). Not to
be opened till the termination of the disciplinary case/criminal prosecution against
Shri................................... ' .The Minutes of the DPC need only contain the note 'The findings
are contained in the attached sealed cover'.

10.3 The same procedure outlined in the above Para will be followed by the subsequent
Departmental Promotion Committees convened till the disciplinary case/criminal prosecution
against the employee concerned is concluded.

Provided further that 'Sealed Cover Procedure' as specified above shall not be required to be
followed in such case of pendency of criminal prosecution against an employee, which has
arisen out of bonafide discharge of official duties and the company is defending the matter.
Such cases shall be considered along with cases of other eligible employees without taking
into consideration the pendency of criminal prosecution against the concerned employees(s)
and effect of promotion shall be given as per normal rules.

In case disciplinary proceeding/ criminal prosecution is prolonged beyond next eligibility

period and reasons of delay are not attributable to the employee, he/she should be considered
by the DPC for promotion to the next higher grade/post as well as for subsequent higher
grades/posts for which he/she becomes eligible for consideration for promotion, had he/she
been normally¿ promoted to the previous higher grade/ post, during the pendency of such
disciplinary proceedings /criminal prosecution. The DPC shall take a holistic consideration of
the general service / track record of the employee and award marks only for Suitability in
respect of each post before keeping its findings in a sealed cover.

40
Marks towards other parameters such as Qualification, Experience, and Performance
Appraisals shall be awarded only at the time of opening of the sealed cover, as per extant
procedural guidelines on the subject applicable on the date of keeping the proceedings under
sealed cover. This is required to take care of such a situation when the employee is promoted
on opening of sealed cover and also becomes eligible for consideration to subsequent
promotions during the pendency of disciplinary / criminal proceedings.

Clarification on issuance of promotion orders in the event of pendency of disciplinary

proceedings post approval of DPC recommendations.

Normally status of pendency of disciplinary proceedings / criminal prosecution does not

undergo a change between the date of approval of DPC recommendations and date of
issuance of promotion orders to check considerable amount of vigilance related issues .

It has come to notice that in some cases, particularly in case of Pre- Retirement Promotion in
interregnum, the status of pendency of disciplinary proceedings / criminal prosecution
underwent change due to issuance of charge sheet/ framing of charges by the Court against
the employee.

It is clarified that after the approval of the DPC recommendations but before issuance of
promotion orders if a charge sheet has been issued or notice of criminal charges framed by
court against an employee has been received by the Company, then in such cases, DPC
recommendations shall not be acted upon and promotion orders should not be issued. Units
are rather advised to resort to sealed cover procedure in such cases.

10.4 On the conclusion of the disciplinary case/criminal prosecution, which results in

dropping of allegations against the employee, the sealed cover or covers shall be opened. In
case the employee is completely exonerated, the due date of his promotion will be determined
with reference to the position assigned to him in the findings kept in the sealed cover/covers.
However, whether the employee concerned will be entitled to any arrears of pay for the
period of notional promotion preceding the date of actual promotion, and if so to what extent,
will be decided by the Disciplinary Authority by taking into consideration all the facts and
circumstances of the disciplinary proceeding/criminal prosecution.

In case of promotion on opening of the sealed cover, sealed covers made in respect of
subsequent years for the same post need not be opened. Sealed cover for the subsequent
promotion(s) shall be opened in a similar manner as provided above.

Where the Authority denies arrears of salary or part of it, it will record its reasons for doing
so. It is not possible to anticipate and enumerate exhaustively all the circumstances under
which such denials of arrears of salary or part of it may become necessary. However, there
may be cases where the proceedings, whether disciplinary or criminal, are, for example

41
delayed at the instance of the employee or the clearance in the disciplinary proceedings or
acquittal in the criminal proceedings is with benefit of doubt or on account of non-availability
of evidence due to the acts attributable to the employee etc. These are only some of the
circumstances where such denial can be justified. .

Following guidelines are to be kept in mind by the authorities while taking decision with
regard to denying arrears of salary or part thereof: i) If the employee is exonerated in
disciplinary proceedings and not awarded any penalty OR on finalization of investigation into
the criminal offence, the employee is not prosecuted / no disciplinary proceedings are
initiated OR employee is acquitted honourably. - Full Pay and DA and all consequential
benefits shall be paid. .

ii) If the employee is not acquitted honourably AND in such cases of suspension where
Disciplinary Authority has decided to treat the suspension period as on-duty - Proportion of
Pay & Allowance as decided by the Disciplinary Authority shall be paid.

iii) If the employee is not acquitted honourably AND in such cases of suspension where
Disciplinary Authority has decided not to treat the suspension period as on-duty - No Pay &
Allowances shall be paid.

10.5 If any penalty is imposed on the employee as a result of the disciplinary proceedings or
if he/she is found guilty in the criminal prosecution against him, the findings of the sealed
cover/covers shall not be acted upon. His case for promotion may be considered by the next
DPC in the normal course and having regard to the penalty imposed on him.

10.6 It is necessary to ensure that the disciplinary case/criminal prosecution instituted against
an employee is not unduly prolonged and all efforts to finalise expeditiously the proceedings
should be taken so that the need for keeping the case of employee in a sealed cover is limited
to the barest minimum label of consideration because of security purpose.

It has, therefore, been decided that the authorities concerned should review comprehensively
the cases of employees, whose suitability for promotion to a higher grade has been kept in a
sealed cover on the expiry of 6 months from the date of convening the first Departmental
Promotion Committee, which had adjudged his suitability and kept its findings in the sealed
cover. Such a review should be done subsequently also every six months. The review should,
inter alia, cover the progress made in the disciplinary proceedings/criminal prosecution and
further measures to be taken to expedite their completion. .

10.7 In spite of the six monthly review referred to in Para 10.6 above, there may be some
cases, where the disciplinary case/criminal prosecution against the employee are not
concluded even after the expiry of two years from the date of the meeting of the first DPC,
which kept its findings in respect of the employee in a sealed cover. In such a situation the

42
competent authority may review the case of the employee, provided he is not under
suspension, to consider the desirability of giving him ad hoc promotion keeping in view the
following aspects so that there will be clear perspective of it :

a) Whether the promotion of the employee will be against public interest.

b) Whether the charges are grave enough to warrant continued denial of promotion;

c) Whether there is not likelihood of the case coming to a conclusion in the near future so that
there can be clear picture in the mind about the fact.

d) Whether the delay in the finalisation of proceedings, departmental or in a court of law is

not directly or indirectly attributable to the employee concerned;

e) Whether there is any likelihood of misuse of official position, which the employee may
occupy after ad hoc promotion, which may adversely affect the conduct of the departmental
case/criminal prosecution.

The competent authority should also consult the Central Bureau of Investigation and take
their views into account where the departmental proceedings or criminal prosecution have
risen out of the investigations conducted by the Bureau. .

10.8.1 In case the competent authority comes to a conclusion that it would not be against the
public interest to allow ad-hoc promotion to the employee, his case should be placed before
the next DPC held in the normal course after the expiry of the two years' period to decide
whether the officer is suitable for promotion on ad-hoc basis. Where the employee is
considered for ad-hoc promotion, the Departmental Promotion Committee should make its
assessment on the basis of the suitability of the individuals record of service without taking
into account the pending disciplinary case/criminal prosecution against him and her on the
basis of found evidence.
10.8.2 After a decision is taken to promote an employee on an ad-hoc basis, an order of
promotion may be issued making it clear in the order itself that:-

i) The promotion is being made on purely ad-hoc basis and the ad hoc promotion will not
confer any right for regular promotion; and appraisal to the employees

ii) The promotion shall be 'until further orders'. It should also be indicated in the orders that
the Company reserves the right to cancel the ad-hoc promotion and revert at any time the
employee to the post from which he was promoted by following the formal procedure of the

43
company.

10.8.3 If the employee concerned is acquitted in the criminal prosecution on the merits of the
case or is fully exonerated in the departmental proceedings, the ad hoc promotion already
made if any be confirmed and the promotion treated as a regular one from the date of the ad-
hoc promotion with all attendant benefits. In case the employee could have normally got his
regular promotion from a date prior to the date of his ad-hoc promotion with reference to his
placement in the DPC proceedings kept in the sealed cover(s), he would also be allowed his
due seniority and benefit of notional promotion as envisaged in Para 10.4 above format of
company rules.

10.8.4 If the employee is not acquitted on merits in the criminal prosecution but purely on
technical grounds and the Company further proposes to take up the matter to a higher court or
to proceed against him departmentally or if the employee is not exonerated in the
departmental proceedings, the ad-hoc promotion granted to him should be brought to an end.

While first adhoc promotion is provided only after the expiry of two years from the date of
meeting of first DPC, subsequent 'adhoc' promotion(s) may be considered after the
completion of 'eligibility' period for consideration for promotion to the higher post(s)
reckoned from the date of first/previous ad-hoc promotion, as the case may be, provided other
conditions of 'adhoc' promotion(s) are fulfilled by both employee and the company.

However, the amount already drawn towards salary and allowances while performing duty in
the adhoc promotion post(s), shall not be recovered until now.

Authority competent to approve promotions will approve 'Sealed Cover' & Adhoc Promotion
cases also taken into consideration for better results as per the rules.

11 Keeping in view the changes in internal conditions and external environment, the
Company may at any time and at its discretion, make any changes in the promotion policy
and the rules as stated herein if it is satisfied that such changes are necessary in the overall
interest of the organisation.

ANNEXURE

NON-EXECUTIVE CADRE CHANNELS OF PROMOTION (TECHNICAL 'A' GROUP)

S8 Exe. Additional Engineer Gr. II

S7 Sr. Addl. Engineer Gr.I

S6 Sr. Addl. Engineer Gr.II

44
S5 Addl. Engineer Gr.I

S4 Addl. Engineer Gr.II

----------------------------------------Engineer E1

S3 Dy. Engineer

S2 Assistant Engineer Gr. I

S1 Assistant Engineer Gr. II

S0 Assistant Engineer Gr. III*

A12 Sr. Chief Technician

A11 Chief Technician

A10 General Technician

A9 Master Technician

A8 Sr. Technician

A7 Technician

-------------------------Assistant Engineer Gr.II

A6 Artisan Gr.I/Auxiliary Worker Gr.I

A5 Artisan Gr.II/Auxiliary Worker Gr.II

A4 Artisan Gr.III/Auxiliary Worker Gr.III

A3 Artisan Gr.IV*/ Auxiliary Worker Gr.IV

A2 Semi Skilled Worker

A1 Unskilled Worker*

* Open Market

Annexure II

NON-EXECUTIVE CADRE CHANNELS OF PROMOTION ( NON-TECHNICAL 'B'

GROUP)

S8Ex- Additional executive engineer………………………………………………….

45
S7 Sr. Addl. Officer Gr.I

S6 Sr. Addl. Officer Gr.II

S5 Addl. Officer Gr.I

S4 Addl. Officer Gr.II

----------------------------------------Executive1

S3 Dy. Officer

S2 Assistant Officer Gr. I

S1 Assistant Officer Gr. II

S0 Assistant Officer Gr. III*

B12 Sr. Chief Assistant

B11 Chief Assistant

B10 General Assistant

B9 Sr. Assistant Gr.I

B8 Sr. Assistant Gr.II

B7 Sr. Assistant Gr.III

-------------------------Assistant Officer Gr.II

B6 Assistant Gr.I

B5 Nurse Gr.II*

B4 Assistant Gr.II

B3 Clerk*

B2 Attendant Gr.I

B1 Attendant Gr.II*

* Open Market

Annexure C

46
EXECUTIVE CADRE CHANNELS OF PROMOTION

ET Engineer Trainee/Executive Trainee ……………………………………………….

E1 Officer/Engineer/Executive

E2 Sr. Officer/Sr. Engineer/Sr. Executive

E3 Dy. Manager

E4 Manager/Specialist

E5 Sr. Manager/Sr. Specialist

E6 Dy. General Manager/Consultant

E6A Sr. Dy. General Manager/Sr. Consultant

E7 Addl. General Manager/Head

E8 General Manager Incharge/Group General Manager/General Manager/Chief

E9 Executive Director

SPECIAL INCENTIVE PAYMENT

Employees who are not eligible for Bonus under the Payment of Bonus Act are paid Special
Incentive. The payment on this account is linked to the performance under the MOU and is
regulated as per the categorisation of the Companys performance by the Government.
II. ANNUAL PAYMENT OF BONUS
Annual Payment of Bonus in the Company is regulated strictly in accordance with the
provisions of the Payment of Bonus Act, 1965, as amended from time to time. The rates of
bonus are computed with reference to and on the basis of the statements of accounts
maintained by the manufacturing units.

TRANSFER POLICY AND BENEFITS

1. Policy
Every employee of the Company is liable for transfer from one Department/Section/Job
within the same Unit/Division or from one Unit/Division of the Company to another or from
the Company to any other Government Department/Public Sector Undertaking as and when
required by the Company at the discretion of the Management. Such transferees are eligible,
unless otherwise stated, for the following benefits subject to the conditions stated hereunder:
2. Horizontal Transfer
Unless selected for a higher position, the transfer of an employee is made in the same grade
and pay as held at the time of transfer (hereinafter referred to as 'horizontal transfer'). 

47
 Transfer on selection to Higher Post against open advertisement
The employees selected from one Unit/Division for appointment to higher posts in another
Unit/Division against open advertisement are entitled to all the benefits as on horizontal
transfer except the grant of disturbance allowance and payment of Bonus. Their pay in the
higher post is fixed as on promotion.
Departmental employees, who are posted to other units on their selection as JEs in the
internal recruitment, may be treated as on transfer and transfer benefits allowed accordingly.
However, in the event of these employees taking transfer back to their original place of
posting within four years, then transfer benefits paid will be recovered.

BHEL LEAVE RULES

1 COVERAGE
1.1 The BHEL Leave Rules shall apply to all employees of the Company except Deputations.
The definition of employee shall be as provided in the chapter on General Terms &
Conditions.
2 DEFINITIONS
2.1 Earned Leave (EL) means leave earned in respect of periods of service rendered in
Company and granted on full pay.
2.2 Half Pay Leave (HPL) means leave on half pay earned by the employee in respect of
service rendered in the Company. This can be availed as half pay leave for personal reasons
or as Commuted Leave on medical reasons.
2.3 Commuted Leave means leave granted on medical reasons on full pay. For every
commuted leave, two HPL will be debited from the employees leave account.
2.4 Extra Ordinary Leave (EOL) means leave sanctioned under special circumstances on
medical grounds without any pay and allowances.
2.5 Pay is as defined under Pay Fixation Rules
2.6 Month will have same meaning as defined under General Terms & Conditions Chapter.
3 ENTITLEMENT OF LEAVE
The nature and quantum of leave admissible to the employees will be as under:
3.1 CASUAL LEAVE:
3.1.1 The casual leave entitlement for all regular employees is as under:
(a) Employees with service upto 10 years 10 days in a calendar year
(b) Employees with service above 10 years 12 days in a calendar year
a All employees will be entitled to 20 days of Half Pay 3.2 EARNED LEAVE
) Leave in a year.
b Advance credit will be allowed on 25th June / 25th 3.3 HALF-PAY LEAVE:
) December of each year at the rate of 10 days each time for 3.3.1
half year of service. At the time of joining or separation
from BHEL, Half pay leave will be credited at the rate of
l.67 days for each completed month as earlier, but on pro-
rata basis, depending on the actual no. of days of service in
the respective block which shall be suitably rounded off to
the nearest whole number. While determining the credit
during the period of service, period spent on unauthorized
absence, Sabbatical Leave, Child Care Leave (CCL) and
period treated as dies-non during the preceding half year
shall not be reckoned for crediting of HPL in respect of  MATERNITY LEAVE
next half year period. AND PATERNITY LEAVE
The procedure for pro rata computing of half pay leave
48credits at the time of joining or separation shall mutatis
mutandis apply during service period of an employee.
c There is no limit for accumulation of Half Pay Leave
)
3.8. A MATERNITY LEAVE (W.E.F. 01-04-2017)
3.8.1 All female employees are entitled to the grant of Maternity Leave as under:
3.8.2 On full pay for a period of 182 days from the date of its commencement in case of
female employees with less than two surviving children, subject to production of Medical
Certificate from the Authorised Medical Attendant (AMA).
Maternity Leave to female employees with more than two surviving children will be
restricted to 12 weeks (84 days), as per the Maternity Benefit Act.

3.8 B PATERNITY LEAVE :

Male employees with less than two surviving children may be granted paternity leave for a
period of 15 days (in one spell) during the period of confinement of his wife that is upto 15
days before expected time of delivery or upto six months from the date of delivery of the
child and if such leave is not availed during this period, it shall be treated as lapsed. Paternity
leave shall also be admissible in cases of still born child. Paternity leave shall not be debited
against leave account and may be combined with any other kind of leave as in the case of
maternity leave. Subject to above, the leave shall be granted only twice in the entire period of
service.
3.9 SPECIAL CASUAL LEAVE :
Special Casual Leave not exceeding 10 days in a calendar year may be granted in the
following cases:
(a) Special Casual Leave For Donating Blood

i. In the case of employees who donate blood to the

Company's Hospital, Special Casual leave on day of
donation, may be given based on certification issued by
Company's Medical Officer.
ii. In places where Company Hospitals do not exist and if any
of the employees donate blood on a working day to a
Registered Blood Bank, he/she will be allowed special
casual leave on day of donation based on certification
issued by Blood Bank.
iii There will be no payment by the Company of any
. travelling or daily allowance in the above cases.
iv. If the employees are called for donation of blood during
their regular duty hours, the day of donation will be
treated as on duty and special casual leave will be granted
for rest of the day of donation, based on certificate issued
by Medical Officer. Non-Executive Salary
Grades with effect from
1.1.2017:
v. The intention of granting special casual leave after blood  
donation is to give the employees rest for that day.
 SB VIII (wef  25.06.10)  Rs.90000-240000
 SB VII  Rs.90000-240000
 SB VI   Rs.80000-220000

49
 
 SB V  Rs.70000-200000
    Rs.60000-180000
 SB IV
 
  B XII (wef 01.01.2017)  Rs.59000-175000
 BXI   Rs.55500-170000
  BX  Rs.53000-165000

 SB III / SBIII A / BIX / BIX A  Rs.42500-140000

  SB II / BVIII    Rs. 37000-130000
 SB I / BVII     Rs.33500-120000
  S0   Rs.32000-100000
  
 BVI       Rs.31000-95000
   
 BV  Rs.30500-85000
 BIV   Rs.30000-75000
 BIII   Rs.29500-65000
    
  BII  Rs.24000-55000
  BI  Rs.23000-50000
    
     
3. Junior Executives (1.1.2017)
  Rs.35000-125000
4. Trainees / Apprentices
  Engineer Trainee - ET Scale
  Executive Trainees - ET Scale
  Supervisor Trainees - S0 Scale

. Title
The Scheme will be called 'BHEL EMPLOYEES PENSION SCHEME'.
2. Coverage
The scheme will cover regular employees of the Company, at Board level and below Board
level, who were/are on the rolls of the Company as on  01.01.2007 and onwards.
3. Defined Contribution Plan
The Scheme will be under Defined Contribution Plan, wherein the pension contribution from
the Company to the Fund will be defined within  the prescribed percentage.  The pension
corpus of the member / beneficiary shall depend upon the accumulated contribution in the

50
Fund and the applicable outflow as defined under the Scheme, at the time of prescribed
separation.
4. Eligibility for Pension Corpus
The following categories of employees are eligible for Pension Corpus from the Company:

The existing mandatory requirement of superannuation and minimum of 15 years of service

in the Company have been dispensed with for Pension benefit as per DPE Guidelines dated
03.08.2017. 

4.1 Regular employees of the Company, who superannuate from the Company on or after
01.01.2007, with minimum 15* years of continuous service. However, w.e.f. 01.01.2017,
mandatory condition of superannuation and minimum 15 years of service in the Company is
dispensed with.
Note: *Service rendered more than 14 years & 6 months but less than 15 years will not be
treated as 15 years.  The services rendered as temporary workers against sanctioned vacancy
will be counted for 15 years of service.
4.2 'Cases involving death/permanent disability and incapacitation, on or after 01.01.2007,
leading to cessation of service, with or without 15 years of service in the Company.' 
Note: On employee's death,the Pension corpus would be payable in the name of the nominee.
4.3 Superannuation on account of early retirement by the Company on or after 01.01.2007
but before 01.01.2017,  with minimum 15 years of continuous service.
W.e.f. 01.01.2017, the condition of minimum 15 years of service in the Company is
dispensed with.
4.4 Effective from 09.11.2012, in cases of lateral entrants to the Company, past service in
CPSEs immediately before joining BHEL, will be reckoned for eligibility of minimum 15
years' service but individual Pension Corpus from BHEL will be only for the entire service
rendered in BHEL, on superannuation or death while in service on or after 01.01.2007 upto
31.12.2016. 

However, w.e.f. 01.01.2017, the requirement of minimum 15 years of service in the Company
is dispensed with.

Laterally recruited employees in BHEL on or after 01.01.2017 may transfer Pension

Corpus from the CPSEs' Superannuation Benefit Scheme (i.e. previous employers) to
BHEL ESBF pertaining to past service in CPSEs before joining BHEL. The amount so
received from previous CPSE employers will be credited into the account of BHEL
ESBF. (vide Corp. HR Circular No.016/2022 dated 26.09.2022)
 
A. ELIGIBILITY :
1. Qualifying period of service, for eligibility and calculation of Pension Corpus,  should be
continuous without break in service.
2. The number of years of service as Temporary workers against sanctioned vacancies will
qualify for computation of eligibility service and calculation of Pension corpus, if placed on
regular scale without break in service.
3. Service rendered by an employee as ET/ST/AT will qualify for eligibility and calculation
of Pension Corpus.

51
Note: If a major penalty has been imposed as a result of disciplinary proceedings and as
a consequence Gratuity has been forfeited wholly or partially, the individual Pension
corpus should also be forfeited wholly or partially to the extent of percentage forfeiture
of Gratuity.  In all other cases involving major/minor penalities, the pension will not be
affected.  (Vide Corporate HR IOM dated 07.11.12)
The nominee, as per nomination given by the employee, becomes entitled to Pension Corpus
only in the event of death of the employee while in service.  Where the nominee is more than
one, the amount of pension corpus will be distributed in the ratio mentioned in the
nomination form by the Member.

In the event of death of an employee post Superannuation but before the transfer of individual
Pension Corpus to the annuity provider or before issuance of pension, the individual Pension
corpus in such cases may be released on behalf of the surviving spouse/nominee to the
annuity provider.

In cases where Spouse has remarried on or before the date of release of individual Pension
Corpus in his/her favour in the event of death of employee, he/she will not be eligible for the
individual Pension Corpus.
. In the absence of nomination, the pension corpus will be distributed among the legal heirs as
per the Nomination form submitted by the employee under EPF Scheme.

5. In the absence of any nomination under EPF Scheme, the Pension Corpus will be
distributed amongst legal heirs as per succession certificate given by competent court.

6. Under no circumstance, the individual Pension Corpus will earn any interest from the Trust
or BHEL or Insurance Company.  On transfer of the Pension Corpus to the Annuity provider,
Pension will be paid to the Annuity purchaser.
 Every appointment made under the Rule shall be in writing, signed by the Member and
attested by two witnesses and shall be in the prescribed form and shall remain in full force
and effect until the death of the Beneficiary or until the same has been revoked in writing by
the member, by whom the same was made and a fresh appointment made in the manner
aforesaid.
ANNUITY
1. The Annuities for Pension to the individual will have to be purchased only from the
Annuity providers empanelled by the Trust/Company.

2. The BHEL Employees Superannuation Benefit Fund shall authorise the Individual Pension
Corpus for the eligible employee / Beneficiary in terms of the Rules of this Scheme, at the
time of superannuation / retirement / death.

3. The Pension Corpus authorised by the BHEL Employees Superannuation Benefit Fund
will be intimated to the Fund Manager(s) and /or Annuity Provider.
Annuity Options available under the Scheme are as under:

52
a) Life Annuity (Annuity till life time of an employee)
b) Life Annuity with Return of Capital (Annuity till life time of an employee with return of
capital to nominee.  Spouse can only be nominated for ROC if he/she is alive.
c) Joint Life (Annuity till life time of an employee and on death of the employee, annuity
payable till life time of surviving spouse.
d) Joint Life with Return of Capital (Annuity till life time of an employee and on death of the
employee, annuity payable till life time of surviving spouse, on death of surviving spouse,
return of the capital to nominee). 
 
E. TRANSFER OF INDIVIDUAL PENSION CORPUS TO NPS
1. W.e.f. 01.01.2017, option of transfer of Pension Corpus to National Pension System (NPS)
account of the separated employee is made available on the request of the separated employee
in terms of the Rules of the Scheme.
F. PENSION CORPUS TRANSFER FROM PREVIOUS CPSE EMPLOYER(S)
1. Cases of Pension Corpus transfer from previous CPSE employers will be subject to
provisions of the Rules & Regulations of BHEL Pension Scheme and BHEL Employees
Superannuation Benefit Fund.

EXIT INTERVIEW BY EXECUTIVE

Executive interview is given by the executive and the supervisors in which they give
feedback and what better improvement can be done and the facilities ,leverage and benefits
provides along with the salary to make a sense of belonginess towards the company and
many more.

53