EXECUTIVE SUMMARY

The 6-week inplant training was undertaken at Bharat Heavy Electricals LimitedElectronics Division in Bangalore BHELS Internship program is directed at providing exposure to students in all functional areas, procedures and policies pertaining to BHEL. The Internship program is an integral function of H.R Department at BHEL.Executives and managers shared their knowledge and wisdom in classes conducted specifically in particular functional areas or departments. The classes were invariably followed by departmental visits, which helped in grasping concepts better. Towards the end of the study it was clear , why BHEL is referred as a navarathna company. The company has a turnover chart which has continuously defied gravity,The morale of the work force is high.Remuneration is not one of the highest in the industry but the satisfaction and loyalty levels of the employees towards the company are comparatively higher.There has been an appreciable reduction in the inventory held so far and also the work force.

.The main objective of the project was to get exposed to the working of the organization,to understand the problems of the employees,to know the relationship between employees and management,also between trade union and the management,then find out the satisfaction levels of the employees and finally to give shape to a problem area of the organization.

Employees are one of the most important assets of any organization and without it the organization would cease to exist.

A survey was conducted to understand the job satisfaction levels of employees, as well as their problems and relationship with the management.

In the first and second chapters are mentioned the industry profile along with details abou the the major players in the market and the company profile that includes the details about the origin and growth of BHEL.It was established in 1976 and it has travelled a long way in heavy electrical Industry. The research was conducted amongst the employees of BHEL-EDN, the type of data employed was both primary and secondary,stratified sampling procedure was employed and personal interview method was applied. The respondents were chosen from different departments to avoid monotony in the findings as employees of same departments would have similar satisfaction levels. Awareness about the companys mission and vision,relationship with the superiors and management,role of the trade union were amongst the yardsticks employed for evaluating the employee satisfaction levels

The survey has certain limitations .Time was the main constraint when we got enrolled for BHEL we found the time allotted to do the internship insufficient. Morever most of the students were working on diverse topics,we couldnt find enough time to co-ordinate in completing our internship work . Amongst the employees who were given questionnaires to fill I found it difficult to get them to fill the questionnaire because of the different timings of work of the employees overall 80 employees were administered.

A structured questionnaire comprising of 8 closed and 2 open ended was administered to the employees.The official questionnaire supplied to the employees by BHEL-EDN similar to the questionnaire supplied by BHEL-HRD department. . Research shows that satisfied, motivated employees will create higher customer satisfaction and in turn positively influence organizational performance. Convenient work location, working with young people, opportunities for promotion and career prospects, fair salary, good policies, job security and dynamic working environment are few attributes which are critically important from the view point of most of the employees. On interviewing one of the employees I found that he was pretty happy with his job profile and he had not joined any other company despite getting lucrative offers . The relationship of the employees towards their superiors did not give clear cut results as proportion of respondents showing excellent, satisfactory. good relationship towards their superiors was almost equal. Another observation was that there was more than 50% of respondents showing positive relationship towards the administration. Through the questionnaire I asked the respondents if they needed any changes in the work environment and more than 50% said they were in favour of changes in work environment.

Finally it was found that the employee job satisfaction levels at BHEL-EDN are fairly high, despite remuneration being less than the remuneration of the employees of the private companies. Hence the conclusion that can be obtained is that despite remuneration being lesser than other companies there is higher quotient of loyalty amongst the employees towards BHEL

PART-A ORGANISATION STUDY

INDUSTRY PROFILE

Heavy Electrical Industry

Heavy Electrical Industry covers power generation, transmission, distribution and utilization equipments. These include turbo generators, boilers, various types of turbines, transformers, switchgears and other allied items. Majority of the products manufactured by heavy electrical industry in the country, which includes items like transformers, switchgears etc. are used by all sectors of the Indian economy. Some major areas where these are used are the multi core projects for power generation including nuclear power stations, petrochemical complexes, chemical plants, integrated steel plants, non-ferrous metal units, etc. India is the only other developing country besides China, which produces a full range of electric power generation and transmission equipment. In fact,the history and growth of (Bharat Heavy Electricals Ltd.), a public sector enterprise under in the country, symbolizes the overall growth pattern of heavy electrical industry in the country.BHEL has the unique distinction of being one of the very few companies in the world, manufacturing all major power generating equipment under one roof. The industry has been upgrading the existing technology and is now capable of taking up turnkey contracts also for export markets. The industry has been delicensed. Foreign collaborations are allowed with 100 percent FDI.The country is planning to add 150,000 MW power generation capacity in the the next 10 years.This will generate

substantial demand for heavy electrical equipments. The heavy electrical industry is capable of manufacturing transmission and distribution equipment upto 400 KV AC and high voltage DC. The industry has taken up the work of upgradation and transmission to the next higher voltage system of 765 KV and have upgraded their manufacturing facilities to supply 765 KV class transformers, reactors, CTS, CVT, bushing and insulators, etc. The investments in R & D by the electrical industry are amongst the largest in the corporate sector in India.Large electrical equipment used in steel plants, petrochemical complexes and other such heavy industries are also being manufactured in the country. The domestic heavy electrical equipment manufacturers are making use of the developments of the global market with respect to product designs and upgrading of manufacturing and testing facilities.The heavy electrical industry has established its reference in the global arena also.These encompass thermal, hydro and gas based power plants, substation projects, rehabilitation projects, besides a wide variety of products like transformers, photo voltaic equipments, insulators,switchgears, motors,etc.

Turbines and Generator Sets

The capacity established for manufacture of various kinds of turbines such as steam & hydro turbines including Industrial turbines is more than 7000 MW per annum in the country. Apart from BHEL, the public sector unit that has the largest installed capacity, there are units in the private sector also manufacturing steam & hydro turbines for power generation and industrial use. The manufacturing range of BHEL includes steam turbines upto 660 MW unit rating and the facilities are available for 1000 MW unit size. They have the capability to manufacture gas turbines upto 260 MW (ISO) rating and gas turbine based Co-generation and Combined Cycle Systems for the industry and utility applications. Custom built conventional hydro turbines of Kaplan, Francis and Pelton types with matching generators are also available indigenously.

AC Generators manufactured in India are on par with international AC Generators and consistently deliver high quality power with high performance. Domestic manufacturers are capable of manufacturing AC Generator right from 0.5 KVA to 25,000 KVA and above with specified voltage rating.The imports and exports of turbines and generators during 2005-06 were Rs. 2420 crore and Rs. 565 crore respectively. Boilers Bharat Heavy Electrical Ltd.(BHEL) is the largest manufacturer of boilers in the country (with more than 60% share) and has the capacity to manufacture boilers for Super Thermal Power Plants apart from utility boilers and industrial boilers. The industry has the capability to manufacture boilers with super critical parameters upto 1,000 MW unit size. The domestic industry has the capacity to meet the indigenous requirement / demand for boilers.The imports and exports of boilers during 2005-06 were Rs.160 crore and Rs.242 crore respectively.

Transformers
The domestic transformer industry is well established with capability to provide state of- the-art equipments. The industry has the capacity to manufacture whole range of power and distribution transformers including the REC rating of 25,53, 100 KVA and also the extra High voltage ranges of 400 kV, 600 MVA. Special types of transformers required for furnaces, rectifiers electric tract etc. and series and shunt reactors as well as HVDC transmission upto 500 kV are also being manufactured in the country.The imports and exports of transformers during 2005-06 were Rs.1800 crore and Rs.1640 crore respectively.

Switchgear and Control Gear

In India, the entire range of circuit breakers from bulk oil, minimum oil, air blast, vacuum to SF6 are manufactured to standard specification for the benefit of customers. The ranges of products produced cover the entire voltage range for 240V to 800KV, switchgear and control gear, MCBs, air circuit breakers, switches, rewireable fuses and
8

HRC fuses with their respective fuse bases, holders and starters. The industry is competitive in the field of design and engineering as the skill sets available in the country are relatively less expensive.The imports and exports of the above equipments during 2005-06 were around Rs.1690 crore and Rs. 1108 crore respectively.

Electrical Furnaces
Electrical Furnaces are used in Metallurgical and Engineering industries like forging and foundry, machine tools, automobiles etc. Adequate capacity for production of these products has been established.The imports and exports of electrical furnances during 2005-06 were aound Rs.186 crore and Rs. 108 crore respectively.

Shunting Locomotives
Shunting Locomotives for localized/ internal transport facilities are used in railways, steel, plants, thermal power plants, etc. BHELs Jhansi unit among others is manufacturing such locomotives. The installed capacity is adequate to meet the domestic demand.

Major Players
BHEL is the largest engineering and manufacturing enterprise in India in the energyrelated/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight service centres and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services -- efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centres.

BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL has Installed equipment for over 90,000 MW of power generation -- for Utilities, Captive and Industrial users.
10

Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC). Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network. Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organised around three business sectors, namely Power, Industry - including Transmission, Transportation, Telecommunication & Renewable Energy and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market. BHEL's vision is to become a world-class engineering enterprise, committed to enhancing stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player. The greatest strength of BHEL is its highly skilled and committed 42,600 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.

Andrew Yule & Co. Ltd.

Andrew Yule & Co. Ltd. is a medium-large (~Rs. 6 Billion / US$ 124 mm) Indian manufacturing and industrial conglomerate, approximately 97.5% owned by the Indian Government. It is the main company owned by the Yule Group.It was incorporated as a
11

private company in 1919. After India gained independence from the British empire, the company was turned into a public company in 1948.It is currently headquartered in Kolkata (formerly Calcutta), and has offices in the main Indian cities.The majority of the products and services offered by the company's subsidiaries are related to heavy industry and engineering.

Bharat Bhari Udyog Nigam Limited

Government of India Enterprise, Bharat Bhari Udyog Nigam Limited (BBUNL) is a Holding Company comprising of five Eastern India based engineering companies under its umbrella as its wholly owned subsidiary units. BBUNL was established in 1986 as a Public Sector Holding Company under the administrative control of the Dept. of Heavy Industry & Public Enterprises, Govt. of India. The individual subsidiary units have more than 150 years of experience. The Group is engaged in the design, manufacture, supply, erection and commissioning of a wide range of Capital Goods and Turnkey Projects required by the Core Sector Industries such as Railways, Ports, Coal Mines, Power, Petroleum and Oil, together with Construction of Highways & Flyovers.

With an annual turnover of around US Dollar 100 million and having a total fabrication capacity of 24,000 MT per annum, employing about 3,372 skilled personnel, BBUNL group companies have been involved in most of the projects of national importance. Stepping up exports, BBUNL group today has a diverse export profile, spread around forty countries worldwide

Bharat Yantra Nigam Limited "The one-source, multi-resource engineering

group" The Bharat Yantra Nigam Ltd (BYN) is a holding company having in its fold six
12

technically competent engineering organisations forming one of the most versatile engineering groups.The Group caters to the core sector industries with over 50 products, most of which are backed by foreign collaboration. BYN provides its customers with one-source, multi-resource heavy engineering solution and packages, including design, engineering, construction, fabrication, manufacture and project management. BYN Group comprises of six subsidiary companies spread over five states :

Bharat Heavy Plate & Vessels Ltd.(BHPV), Visakhapatnam (Andhara Pradesh) Bharat Pumps & Compressors Ltd.(BPC), Allahabad (Uttar Pradesh) Bridge & Roof Co. (India) Ltd.(B&R), Kolkata ( West Bengal ) Richardson & Cruddas (1972) Ltd .(R&C), Mumbai ( Maharashtra ) Riveni Structurals Ltd.(TSL), Allahabad (Uttar Pradesh) Tungabhadra Steel Products Ltd.(TSP), Hospet (Karnataka)

Synergizing the strengths and capabilities of these six giant achievers, BYN has been handling turnkey projects from concept to commissioning and has emerged as an established winner in the international market. BYN Units have state-of- the-art technology coupled with latest manufacturing facilities including full-fledged seafronts for handling oversized consignments for exports.Each constituent Company is ISO 9001:2000 certified, renowned in its area of specialization and recognized by leading international inspection agencies like Lloyds, Bureau Veritas, Crown Agents, Sweco, EIL, PDIL, Humphry & Glassgow, Uhde, NPCIL, RDSO and BIS. The group has 25 regional offices and 9 manufacturing units spread all over the country with a turnover of more than US $125 million. With implementation of numerous innovative approach, BYN has been adapting to dynamic environment by continuous diversification and moving towards the single vision- "BUILDING TOMORROW'S WORLD TODAY" BYN's mission is to excel in every area of activity with a synergistic approach.
13

BHPV ( A BYN's Group Company )

Bharat Heavy Plate & Vessels Ltd (BHPV) an ISO 9001:2000 Certified Company situated at Port city of Visakhapatnam, AP India is a leading organization for Engineering, Manufacturing Testing, Installation & Commissioning of various equipment, Cryogenics combustion System, and Turn-key packages required for Process Plant Industries Like Refineries, Petrochemicals, Chemicals, Oil and Gas, Fertilizers, power (including Nuclear), Steel etc . With technical backup acquired from world renowned companies, BHPV's product range include Pressure Vessels, Columns, Towers, Heat Exchangers, Air Fin coolers, Storage Tanks, Reactors, Multilayer vessels, Nitrogen and Oxygen Plants, Cryogenic Storage Tanks, Purge Gas Recovery Units, Evaporation plants, Boilers, Fired heater, Deaerators, Steam Condensers, Fired Heaters, Skid Mounted packages for offshore operations and system packages like Sulpher Recovery units, Vacuum Ejector system, Crude Stabilization Unit, LPG Storage and handling System etc

Bharat Pumps & Compressors Limited ( A BYN's Group Company )

BPC was incorporated in 1970 with an objective of indigenous manufacture of process pumps, gas compressors and high pressure seamless gas cylinders. With international technical collaborations - Pomps Guinard, France; Nuovo Pignone, Italy; Oil Well, USA; Uraca, Germany; B.J. Hughes, USA; Coyne, USA and others, the company has established itself as a well-known manufacturer of a wide range of high-tech products in the fluid- handling system. In fact, BPC is the exclusive manufacturer in the country of carbamate and ammonia pumps for fertilizer plants, mud pumps, cement pumping units and high-pressure reciprocating gas compressors for the oil and gas industry.

Some of the other products manufactured by BPC include centrifugal pumps, reciprocating plunger and piston pumps, nuclear pumps, cylinder cascades, compressed natural gas compressors (CNG) and welded and seamless high pressure gas cylinders.

14

All these products are built to international design codes under the surveillance of reputed inspection agencies like Lloyds, Bureau Veritas, Snam Progetti, Humphry and Glassgow, EIL, PDIL, NPCIL, BIS and CCE etc. BPC is an ISO9001 certified company for design manufacture and supply erection and commissioning of rotating equipment like Pumps and Compressor etc. All of these equipment are used in core sector industries such as oil and gas exploitation, refineries, chemicals, petrochemicals, fertilizers, air and gas separation plants, thermal and nuclear power plants and the defence industry. The Company's major clients, to name a few, are the Oil & Natural Gas Corporation Ltd., Oil India Ltd., Indian Oil Corporation Ltd., Krishak Bharti Co-operative Ltd., Indian Petrochemical Corporation Ltd., Indian Farmers Fertilizer Co-operative Ltd., Gas Authority of India Ltd., OIL, and Nuclear Power Corporation Ltd. The equipment supplied by BPC includes :

Carbamate and ammonia pumps to Krishak Bharati Co-operative Ltd., Rashtriya Chemicals & Fertilizers Ltd., Chambal Fertilizers Ltd., and Tata Chemicals. Cementing units to Oil & Natural Gas Corporation Ltd. Mainline oil pumps for Oil & Natural Gas Corporation Ltd. at Bombay High. Pipeline pumps to Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. Bone dry Nitrogen Compressors for Indo Gulf Fertilizers Corporation Ltd. High Pressure Compressed Natural gas (CNG) Compressors to Gas Authority of India Ltd. Sucker-rod pumping units to Oil & Natural Gas Corporation Ltd. Hydrogen Make-up Compressors to IOCL's Gujarat Hydrocracker Project at Baroda. High pressure seamless oxygen and DA cylinders to innumerable gas manufacturers including a large consignment exported to Algeria.

15

Bridge & Roof Co. ( India ) Limited ( ABYN's Group Company )

B&R was incorporated in 1920 and is one of India 's premier construction companies. The company undertakes all categories of Civil and Mechanical construction related to mega projects like refineries, fertilizers, power, cement, steel and non-ferrous metal plants, chemical complexes, storage tanks etc. both in India and abroad. Major Civil Construction jobs include heavy foundation in various projects, prilling towers and parabolic silos in fertilizer plants, high-rise buildings, concrete bridges, sports and stadium complexes and high concrete chimneys etc. Other diverse civil construction activities include cooling towers, mechanized construction of roads and high-ways, piling (both bored and driven) and soil densification jobs, marine berth construction and turnkey construction of raw water and effluent treatment plants. The company employ the most modern methods of construction in all its civil engineering works, including Slip form system for tall structures and various mechanized equipment like Tower Cranes, Truck Mixers, Batching Plants, Dozers, Excavators, Dumpers etc., keeping pace with modern construction methodologies. B&R has been marching towards excellence and expertise in Mechanical Construction. The major mechanical works include heavy structural steel work of various projects, construction of all types of heaters, furnaces including blast furnace, pipelines, special pipes, steel bridges and turnkey construction of floating roof storage tanks for oil refineries, etc. These have been augmented by diversifying in cryogenic storage tanks, and turnkey construction of zero flare group gathering stations, oil terminals, ore beneficiation plants, non-ferrous extraction plants and sulphuric acid plants etc. The Company has also executed turnkey contract for pioneer in this field. Besides, B&R has established itself as India 's foremost and most versatile
16

65,000 cu.m. capacity

storage tanks, including civil and mechanical construction and it can claim to be the

manufacturing and construction organization in the field of structural work . It has executed contracts for major steel plants, power stations, industrial and office buildings, highways and railway bridges, sports stadia etc B&R also undertakes the manufacture of Steel Structures and Railway Bridge Girders, Bunk Houses, LPG Storage Bullets, Pressure Vessels and Heat Exchangers at its workshop at Howrah . It has also taken up manufacture of Bailey Type Unit Bridges , Forged Flanges, House on Wheels and Truck Mounted Domestic Containers etc. Some of B&R's high profile clients include: Bharat Petroleum Corporation Ltd., Indian Oil Corporation Ltd., Bongaigaon Refinery and Petrochemicals Ltd., HPCL, Cement Corporation of India Ltd., Mangalore Refineries and Petrochemicals Ltd., Damodar Valley Corporation, National Thermal Power Corporation, Oil and Natural Gas Corporation Ltd., Rajasthan Atomic Power Project, Indian Railways- Eastern & South Eastern, P.W.D., U.P., Tata Engineering & Locomotive Co. Ltd., Cochin Refineries Ltd., His Majesty's Government of Nepal Department of Roads.

Richardson& Cruddas Limited ( A BYN's Group Company )

Richard and Cruddas (1972) Ltd. (R & C) Mumbai was established as a small foundry in 1858 at Byculla, Mumbai and gradually emerged as a leading structural engineering company in Western India . The company was nationalized in 1973 and has four manufacturing units today - one each at Byculla and Mulund in Mumbai, at Ambattur in Chennai and at Hingna in Nagpur. The company manufactures steel structures, transmission line and microwave towers on turnkey basis, railway points and crossing, steel turn out sleepers, rubber machinery, tubular structures for off shore platforms, turnkey sugar projects, pressure vessels, heat exchangers, LPG tankers, horton spheres, dished ends, India Mark II/III hand pumps, water and sewage treatment plants, refrigeration compressors, condensing units and refrigeration application products. It also offers services like Tower Testing up to 400KV D/C, Environmental Impact Assessment Studies and Laboratory Testing of Industrial Waste and Effluents.
17

R&C has established its presence abroad through the export of its products to countries like Afghanisthan , Botswana , Burma , Ethiopia , Guinea , Kampuchea , Kenya , Madagascar , Nepal , Nigeria , Philippines , Salisbury , Sierraleone , Singapore , Sri Lanka , Sudan , Tanzania , Thailand , Uganda , Upper Volta and Zaire . Some of R&C's important clients are the Indian Railways, Department of Atomic Energy, Department of Space, Bharat Heavy Electrical Ltd., Oil and Natural Gas Corporation Ltd., Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd., Indian Oil Corporation Ltd., Rashtriya Chemicals & Fertilizers Ltd., HMT Ltd., Dunlop India Ltd., Modi Rubber Ltd., J.K. Tyres, Larsen & Toubro Ltd. Others : All India Radio, National Thermal Power Corporation of India Ltd., Power Grid Corporation Ltd., State Electricity Boards, Indian Post and Telegraphs, Damodar Valley Corporation, etc. Prestigious projects handled by R&C include

Cargo & terminal buildings for Kuwait International Airport 2500 TCD sugar plant on turnkey basis at Kaithal, Haryana 1250 TCD sugar plants on a turnkey basis for EPIL and NHEC including Shri Vithal Sahakari Sakhar Karkhana Ltd., Samarth Sahakari Sakhar Karkhana Ltd., and Vighnahar Sahakari Sakhar Karkhana Ltd., in Maharashtra

Two 132 KV D/C transmission line tower projects on a turnkey basis for his Majesty's Government of Nepal 400 KV S/C Karadi-Satpura transmission line towers on turnkey basis for NTPC, New Delhi 400 KV S/C Jamshedpur-Rourkela and Durgapur-Jamshedpur transmission line towers for Power Grid Corporation of India, New Delhi 220 KV D/C transmission line towers for Damodar Valley Corporation, Kolkata Complete support structures for SLV 3 for the Department of Space

18

Water, sewage and effluent treatment plants and consultancy services for HMT, Department of Space, Brook Bond India Ltd.; T.I. Cycles of India Ltd., AngloFrench Textiles Ltd

Refrigeration equipment for dairy development projects in Tamil Nadu, Andhra Pradesh and Pondicherry Extra deep well India Mark II/III hand pumps to Sokoto Agricultural Development Projects, Nigeria, Ground-water Survey Development Agency, Pune, GWS&S Board, Gujarat

Reconstruction work for large number of school buildings in Nepal for His Majesty's Govt. of Nepal Points and crossings and steel turnout sleepers for Indian Railways

Triveni Structurals Limited ( A BYN's Group

Company )

Triveni Structurals Limited (TSL) was founded in 1965 as a joint venture of the Government of India and Voest-Alpine, a leading industrial house of Austria . It has established itself as one of the leading construction companies which is involved in design, engineering, fabrication, installation and commissioning of sophisticated technological structures and fabricated equipment for a diverse range of core sector applications. TSL is renowned for its proficiency and excellence in the turnkey construction of technological steel structures, hydro mechanical equipment viz. gates, hoists, penstocks and process equipment viz. pressure vessels, LPG bullets, gas holders and separators. Besides, TSL also produces a wide range of miscellaneous equipment such as furnaces, stacks, silos, bunkers, pit-head frames etc. The company also undertakes the execution of complex and multi-disciplinary projects such as turnkey execution of passenger and material ropeways, rocket launching facilities, microwave, radar and VLF communication systems with self supporting tower/guide masts for television, power transmission lines upto 400 KV. Etc. TSL's areas of operation include thermal, hydel and nuclear power stations, steel plants, fertilizers, petrochemicals, chemicals, refineries, railways, defence, space and TV relay transmission and microwave communication networks.

19

TSL's proven design and quality products conforming to international standards have received wide recognition in national and international markets. These include hydraulic structures and hoists supplied to Cambodia, Thailand, Iraq, Tanzania and Zambia and transmission lines in Mauritius , Nepal , Thailand and Malaysia . Some of TSL's major clients are the State Electricity Boards, Doordarshan, All India Radio, Ministry of Defence, Power Grid Corporation of India Ltd., State Irrigation Departments, Steel Authority of India Ltd., Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., Atomic Energy Commission and the Indian Space Research Organization. Prestigious projects designed and commissioned by TSL include:

Unique launch pad, mobile service tower and umbilical mast, the first of their kinds in the country, for the PSLV and GSLV Projects of the Indian Space Research Organization, Sriharikota

150 metres free-span super-dome roof structure for the indoor stadium, Asiad' 82 Asia 's largest radial gates of size 18.28 X 17.4 M at Srisailam Longest 4 Km. bi-cable Zig-Back type passenger ropeways at Joshimath (Auli) VLF communication system for Indian Navy LD convertor shop structures for TISCO modernization Asia 's tallest self supporting TV Tower at Mumbai - 300m. high 1 lac cu.m. capacity MAN-oil seal type and WIGGIN - fabric seal type gas holders for Durgapur and Vizag Steel Plants Coal Washery for CIL at Nandan 230/132 KV Transmission Line Projects in Thailand and Nepal

20

Tungabhadra Steel Products Limited ( A BYN's Group Company )

Tungabhadra Steel Products Limited (TSP) was set up in 1960 as a specialist in the area of water management and control, through the manufacture and supply of hydro mechanical equipment like hydraulic gates and points cranes (EOT and gaudy ) and steel structures necessary for core sector projects like irrigation and power. Today, TSP has completed over 200 projects in India and is the leader in its field. With a strength of over 500 qualified and experienced personnel, TSP has over the years developed vast expertise in carrying out turnkey jobs and has specialized in the design, manufacture and installation of hydraulic gates and various other steel structures and equipment.

Some of the products manufactured by TSP are building structures, conveyor drums, cranes-EOT, gantry and Goliath, hoists - hydraulic, chain, rope drum and screw, hydraulic gates - radial, fixed wheel and slide, penstock pipes, rubber seals for hydraulic gates, solar energy appliances, special structures, transmission line towers, sub-station structures and mini hydel plants.

TSP has also developed fluro carbon cladded rubber seals for gates. These are more flexible and have a low co-efficient of friction leading to substantial reduction in hoist capacity which reduces project cost substantially.

TSP's prestigious clients include State Irrigation Departments and Electricity Boards, Power Corporations - Tehri Hydro Development Corporation National Hydro Electric Power Corporation, National Thermal Power Corporation Ltd., Karnataka Power Corporation, major public sector undertakings - Bharat Heavy Electricals Ltd., Indian Railways, National Projects Construction Corporation, National Building Construction Corporation, Hindustan Steel Construction Ltd., Steel Authority of India Ltd., Kudremukh Iron Ore Company Ltd., and Chukka Hydel Project, Bhutan.

21

Prestigious projects undertaken and completed by TSP include:

Spillway and sluice gates for Srisailam, Pochampad and Nagarjunasagar in Andhra Pradesh, Dantiwada, Kadana and Ukai in Gujarat, Tungabhadra, Linganamakki, Kalinadi, Narayanpur and Supa projects in Karnataka, Kuttiyadi and Iduki hydel projects in Kerala, Barna, Mahanadi and Sukta projects in Madhya Pradesh, Balimela and Salandi projects in Orissa, Kota and Mahibajaj Sagar projects in Rajasthan, Lower Jhelum and Salal projects in Jammu & Kashmir, Beas project in Punjab and Jaldhara in West Bengal.

Penstock pipes for Tungabhadra, Supa and Almatti in Karnataka, Mettur Hydel in Tamil Nadu and Chukka Hydel project in Bhutan.

Plant and building structurals for Bokaro Steel Plant, Kudremukh Iron Ore Company Limited, Sponge Iron India Limited, Kothagudem.

Spillway Crest Radial Gates with Rope Drum Hoists and embedded parts and stoplogs for Sardar Sarovar Narmada Project in Gujarat.

1.2.1. PROFILE OF INDIAN POWER SECTOR. Power sector is one of those segments of the Indian economy that has not affected much by the global recession. Despite slowdown in the economy the power deficit continue to be in high at 11% for the eleven month ended Feb 2009 and the peak deficit was at sharp 13.8%. Thus the country could not afford to loosen the accelerator on the pace of development of the power generation. Balance of plant (BoP) is one of the crucial groups of equipment/service that makes a power project complete and up for operation. With continued power deficit in the country, the power sector is the one that is not seen drop in investment or focus. The examples of Balance of plant equipments/services are those such as coal and ash handling systems, water treatment plants, cooling water systems, cooling towers, construction equipment, civil works and services etc. Some of the major players

22

operating in this space of engineering segment are Larsen & Toubro, Gammon India, BGR Energy, Sunil Hitech, Ion Exchange, Mcnally Bharat, Elecon Engineering, TRF etc.1

Opportunity Galore The accelerated power development in the country though has benefited power generation, T&D equipment players, the Balance of Plant (BoP) Equipment suppliers are also the equal beneficiary. While the main plant equipment such as Boiler, Turbine and Generator accounts for 40-50% of the total power plant cost the rest was accounted by BoP equipments. With about 78700 MW of new power generation capacity addition being targeted under Eleventh Five Year Plan period of 2007-12 and of which 59693 MW being thermal power plants the opportunity is huge for the BoP players in the country. The market for BoP in the country will be about Rs 119386 crore as far as thermal power projects alone in the 11th five year plan period on a thumb rule basis on assumption of Rs 5 crore/ MW. With the GoI, Ministry of Power, stated power for all by 2012, and considering future demand growth has made its intention clear of placing order for about 20000 MW per year. This is all expected to result in strong demand growth for the industry.2

POWER MINISTRY IN INDIA

The Ministry of Power started functioning independently with effect from 2nd July, 1992.Earlier it was known as the Ministry of Energy comprising the Departments of Power, Coal and Non-Conventional Energy Sources. The Ministry of power is primarily responsible for the development of electrical energy in the country.

1 2

23

The Ministry is concerned with perspective planning, policy formulation, processing of projects for investment decision, monitoring of the implementation of power projects, training and manpower development and the administration and enactment of legislation in regard to thermal, hydro power generation, transmission and distribution. The Ministry of Power is mainly responsible for evolving general policy in the field of energy. The main items of work dealt with by the Ministry of Power are as below: 1. General Policy in the electric power sector and issues relating to energy policy and coordination thereof. (Details of short, medium and long-term policies in terms of formulation, acceptance, implementation and review of such policies, cutting across sectors, fuels, regions and intra country and inter country flows). 2. All matters relating to hydro-electric power (except small/mini/micro hydel projects of and below 25 MW capacity) and thermal power and transmission & distribution system network. 3. Research, development and technical assistance relating to hydro-electric and thermal power, transmission system network and distribution systems in the States/UTs. 4. Administration of the Electricity Act, 2003, ( 36 of 2003) , the Energy Conservation Act, 2001 (52 of 2001 ), the Damodar Valley Corporation Act,1948 ( 14 of 1948) and Bhakra Beas Management Board as provided in the Punjab Reorganization Act,1966 (31 of 1966). 5. All matters relating to Central Electricity Authority, Central Electricity Board and Central Electricity Regulatory Commission; 6. All matters concerning energy conservation and energy efficiency pertaining to Power Sector.3

24

PROVISIONS AND IMPACT OF BUDGET 2009-10 ON POWER SECTOR The budget proposes action on long pending demands to remove implementation bottlenecks and to ease financing. PROVISIONS Tax holiday for setting up undertaking for generation, transmission or distribution of power, and renovation and modernization of network has been extended. Allocation for the accelerated power development and reform programme increased by 160% to Rs 2,080 crore. Further, allocation to the Rajiv Gandhi Grameen Vidyutikaran Yojana increased by 27% to Rs. 7,000 crore. Plan to implement an integrated energy Act to improve energy security.

25

COMPANY PROFILE
The Electronics Division (EDN) of BHEL was formed in 1976 to primarily establish a strong footing for india in the sector of industrial electronics and also in the field of power it was envisioned that it would be an added tool to strengthen the position of the country in terms of performance in the field as power generation transmission industry and transportation. The division came into being when BHEL took over the Radio and Electricals Manufacturing Company (REMCO), which formally merged with BHELEDN in 1980. For a simple beginning in 1976 when it was in its incipient stage BHEL has made rapid strides towards success and its success story is ampy reflected in the fact that most of the power stations in the country today are equipped with products of BHEL-EDN.In the ARC survey of the year 2005, BHEL is holding over 65% of market share of dcs supplies to power industry in india including hardware software and services) From April 2008, BHEL's projects are monitored online, the implementation of a new Webbased project monitoring system covered this and it would enable to get a real-time status on project schedules. BHEL firmly establishing itself in target export markets, positioning of BHEL as a regular EPC (engineering, procurement and construction) contractor in the global market and exploring various opportunities for setting up overseas joint ventures etc

The two pillars of BHELS Stupendous success in recent times has been its inhouse solution finding capability and its technical collaborations with the major world players.it has had a consistently strong growth rate and success despite being under the
26

heavy pressure of international competititors. Electronis Division also made commendable work in the field of renewable energy sector by commisioning large size grid interactive as well as stand alone solar power plants and thus has managed to bring a ray of hope for the million of people of the country who have lived in darkness even after so many years of independence.

It has bagged a ISO 9001 Certificate since july 1993.In order .to fulfill its role of responsible corporate citizen also It has framed a corporate environment management policy.to fulfill its moral responsibility of environment protection and also to ensure accordingly the electronics division has become the first electronics industry in Bangalore to get ISO 14001 environment management system certification and OHSAS 18001 certification .The Electronics Division has proven itself in diverse fields like IT applications,using state of the art technology systems for communication,computing,networking and security requirement of the organistion in achieving its business goal,due to this success in diverse fields, it has managed to achieve certification of ISO /IEC 27001:2005 information security management system syatem from STQC,ministry of information and communication technology,Government of India.

Among other achievements of BHEL are the following: It has joined united nations global compact and has commited itself to support the set of core values enshrined in its ten principles.It was established more than 40 years ago ushering in the indigenous Heavy Electrical Equipment industry in India, a dream that has been more than realized with a well-recognized track record of performance. It has been raking in huge profits continuously since 1971-72 and paying dividends since 1976-77. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz.,
27

Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The organisation has a huge network of branches which is vital for any organization to succeed in a geographically huge country like India.It has 14 manufacturing divisions,four power regional centres over 100 project sites,eight service centres and 18 regional offices,enables the company The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services - efficiently and at competitive prices. The product quality is made top class due to the emphasis on design, engineering manufacturing the products adhering to international standards It has reached its present pinnacle of success by adopting technologies taken from some of the leading companies in the world together with the technologies developed in its own R and D centres.Shareholding Pattern BHEL has a capital base of Rs. 244.8 crore and its current market capitalization is Rs. 3451.12 crore. The company has 24.48 crore shares outstanding. The free float available in the market for trading is only 6% of the total shares outstanding. Indian government holds a high amount of stakes in the company which is going to be disinvested in the future and

28

Board of Directors

K G Ramachandran-Chairman & Managing Director Pradeep Kumar - Director J Jayaraman - Director Shekhar Datta - Director Tarjani Vakil - Director K C Lahiry - Director K S Rao - Director Ishan Shankar - Director M K Mittal - Director Dr J J Irani - Director R N Agarwal - Director A K Chakraborty - Secretary

Business Overview
The business of BHEL is focused essentially on two broad segments, viz. Power Equipment, accounting for 60% of revenue, and, Industrial Equipment, accounting for the rest. Earlier the company was focused on the Power Equipment only. However, in order to reduce the dependence on power utility providers (SEBs), the company widened its focus area and hence product base. BHEL is now manufacturing equipments for industrial users, railways and several other industries including telecommunications, metallurgical and process industry.

29

BHEL's forte is coal-based Thermal Power Plants. BHEL's products, services and projects are exported to over 52 countries including United States and New Zealand. BHEL's market share in the coal-based thermal power plant segment is 75%, 65% in nuclear-based thermal plants, 50% in hydro-based thermal power plants. However, in the emerging gas-based combined cycle thermal plants, which have short gestation period, the company has a relatively low market share of just 18%. BHEL also provides services of erecting plants and executing projects on a turnkey basis. The cumulative capacity of power generating equipment supplied by BHEL outside India is over 3000 MW.

Business Mix Industry Segment Break-up

The reform process in the Power sector, though initiated quite sometime back, is yet to gather momentum. The delay could lead to low growth in downstream industries like Power Plant manufacturers. Investments in infrastructure projects have not picked up as expected. This coupled with excess capacity in many basic industries, such as the capital goods sector, have led to slowdown in the growth at less than half the growth rate experienced in the previous year.

30

The ongoing changes in the global market for Power Generation Equipment have had a direct impact on domestic companies. Significant industry consolidation across the continents was primarily driven by de-regulation and opening up of many formerly protected markets. The industry was also affected by over capacity, heavy development cost of maintaining competitive position in advanced technologies, WTO requirements and lowering of tariff barriers. The continuing integration of the Indian economy with the global economy has made the environment highly competitive. BHEL was focused on reducing its dependency on the power sector because of the dominance posed by the SEBs. Hence it forayed into the field of Industry operations as well. It also took up a lot of risk containment measures such as entry into export markets, new market segments. The company has always been very conservative in the sales credit front as well. Recently it has announced plans to set up a 100% subsidiary in the field of Information Technology as well.

Performance of Segments
Its power division contributes about 60% of its total revenues. Its industry division with 40% contribution has been consolidating its position in the Indian capital goods sector. It has increased its success rate of bagging orders from 56% in FY99 to 65% in FY00. 03/99 Sales value(Rs mn) Industrial & traction machines Power transformers Switchgear Sales Volume(units) Industrial & traction machines (Nos.) Power transformers (Nos.) 3,046.5 1,298.5 641.5 3,011.0 225.0 03/00 2,808.5 1,219.7 365.1 2,800.0 106.0 %change -7.81% -6.07% -43.09% -7.01% -52.89%
31

Switchgear (Nos.) Unit realization (Rs/unit) Industrial & traction machines (Nos.) Power transformers (Nos.) Switchgear (Nos.)

2,449.0

2,585.0

+5.55% -0.86%

1,011,783 1,003,046

5,771,027 11,506,236 +99.37% 261,952 141,230 -46.09%

Comparing the sales breakup of the year 2000 and 1999, one can see that in the Power Transformers segment, Unit Realization has increased by 99.37%. But, there has been a major downside shift of 52.89% in the volumes, which has lead to the decline in the sales of Power Transformers by 6.07%. The Unit realizations went down in the Switchgear. The increase in sales volume did not makeup for the fall in unit realization and hence Sales dropped by 43.09%. In the Industrial & traction machines the Sales value, Sales volume, and Unit realization faced a decline. BHEL's products, services and projects have been exported to over 52 countries ranging from the United States in the West to New Zealand in the far East. The cumulative capacity of power generating equipment supplied by BHEL outside India is over 3000 MW. The order book position of the company and the bill-to-order ratio of the company is as follows: 1998 1999 2000 5760 5810 7210 -18.2% +0.9% +24.1%

10400 10000 10600 cr.) % change -1.9% -3.8% +6.0% Sales (Rs. cr.) 6470 6790 6640 % change +12.7% +5.0% -2.3% Book-to-bill ratio 0.89 0.86 1.08 The segment wise order backlog position is as follows: Segment Power Industry International % breakup 57.85% 23.43% 12.12%
32

New orders (Rs. cr) % change Order backlog (Rs.

Business Others

6.6%

PRODUCTS

BHEL has Installed equipment for over 90,000 MW of power generation - for Utilities, Captive and Industrial users. Supplied over 2,00,000 MVA transformer capacity and sustained equipment operating in Transmission & Distribution network up to 400 KV - AC & DC. Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. Supplied Traction electrics and AC/DC locos to power over 12,000 Kms Railway network. Supplied over one million Valves to Power Plants and other Industries. BHEL's operations are organized towards three business sectors mainly Power Industry Which includes Transmission transportation,telecommunication Renewable energy , Overseas business .This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market.

BHELS VISION is to become a world class engineering enterprise, committed to enhance stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations as a Navratna' Company.Now it is planning to strengthen its position among the leading navarathnas It is now looking to strengthen its position among the leading navarathnas.

33

The organization has a pool of talent to choose from to work towards making the organisation a market leader in the field of heavy electricals . The greatest strength of BHEL is its highly skilled and committed 47,000 employees. Every employee is given ease. i.e Every employee is given an equal opportunity to develop himself and improve his position. The employees are given continuous training and retraining, they are given ample opportunities for career planning and also given ample training in diverse fields which are relevant to the requirements of the organization, it also excels in the vital field of work culture in the organization and BHEL also firmly believes in adopting the strategy of participative style of management ,these strategies combined with the develpment of a committeed and motivated work force The participative style of management have enabled the development of a commited and motivated work force that leads to enhanced productivity and higher levels of productivity and set new bench marks in enhancing productivity and improving quality Today BHEL has a major share in the market for power especially in the domestic sector and accounts for 65% of the nations installed power generating capacity, BHEL thus a big role to play in the development of the Indian economy over the years as for any country to progress there has to be enough power supply to meet meet the burgeoning demand for power in the country. BHEL has also contributed towards rural electrification thus helping the country reach its goal of making a significant contribution towards development of villages It has consistently performed well over the years and has an excellent track record of growth, performance and profitability and has been reported by the World Bank as being one of the most efficient enterprises in the industrial sector at par with international standards of efficiency. an ample amount of opportunities to develop onself and improve his position in the organization in order to climb the ladder of success with

34

Having technology and business tie-ups with some of the leading world giants in the field, BHEL has demonstrated its international competitiveness time and again which is evident by the fact that over 86% of domestic power plant orders floated for competitive bidding since 1978 have been bagged by BHEL

EVOLUTION OF THE ORGANISATION Feb 1947 the advisory planning board felt the need for electrical machinery in India. March 1948 Exploratory committee to set up heavy electrical generating body January 1955 S.A Gelkey committee reiterates need for an electrical equipment factory August 1956 November 1964 July 1972 July 1974 Heavy Electrical (Pvt) Ltd incorporated later renamed H.E (1), Ltd at Bhopal Bharat Heavy Electrical Ltd, established & plants at Hardwar, Hyderabad and Trichy setup Action committee of public enterprise recommends integration H.E (1) Ltd, and BHEL formally merged. Company prepares first corporate plan 1980 Company prepared second corporate plan with emphasis on growth.

35

992

Government brings out liberalization policy. Allows private sector to manufacture power-generating equipments. Disinvestments policy of government on PSU share holding, BHEL shares offered to employees also. BHEL shares listed on all principal stock exchanges of the country. 1997 Greater autonomy to PSUs BHEL BHEL prepares document on Perspectives for 2002 2009 BHEL wins Rs.1, 700 Million contract for setting up an

995

Cogeneration power plant at Manali Refinery of CPCL Bharat Heavy Electricals Limited (BHEL) has secured a contract from Chennai Petroleum Corporation Limited (CPCL) for setting up an energy efficient and environment friendly co-generation power plant at its Manali Reposing confidence in BHEL's capabilities, CPCL has placed an order worth Rs.1, 700 Million, for setting up a 20 MW (Frame-5) Gas Turbine-based plant. The project is being set up to meet the additional power and steam requirements of the refinery as part of its endeavour to achieve compliance to Euro-IVnorms.

36

MAJOR MANUFACTURING PLANTS AND THEIR PRODUCTS MANUFACTURING PROFILE HEP, BHOPAL PLANT PRODUCT Hydro sets, Nuclear turbines, Thermal sets (110 MW), AC Motors & large Electric Motors, Power Transformers, Traction Machine & Controls for traction & industrial applications, Diesel Generating sets, Switchgear, Capacitors, Industrial TP, JHANSI turbines. Power transformers (less than 220 KV) freight Loco transformers, Instrument transformers, AC HPEP, HYDERABAD Locos Diesel Electric Shunters etc. Thermal sets, Gas turbine generator sets combined cycle/Co.gen plants, Industrial TG sets, Compressors, Oil Rigs, mills, SF & MOCB HEEP, HARDWAR switchgear, Heat exchanger. Casting and forging for thermal/Hydro sets, motors defense etc. Special facilities like 9000T press For SSTP, TRICHY BAP, RANIPET EDN, BAGALORE forgings, electric arc furnaces for melting steel, etc. Seamless steel tubes. Boiler auxiliary fans, Electrostatic Preheaters. Variable speed drives, programmable. Login and digital EPD, BANGALORE controllers, Power devices, meters, photovoltaic/solar Panels, simulators, etc. Insulators: solid core, bushings, pin. Post and ceramic lines.
37

IP, JAGADISHPUR IVP, GOINDWAL CFP, RUDRAPUR ESD, BANGALORE

Disk Insulators, Ceramic liners. Industrial Valves Wind mills, solar water heaters and lanterns Telecom products & simulators.

In recognition of its commitment to the quality systems and procedures, the unit was awarded ISO 9001 certification by BVQI(UK) in july 1993.this was further rectified in july 1993.This was further rectified in july 1996 for the updated version of ISO 9001.Presently the unit is treading along the path of the quality management (TQM) as well as business processrengineering(BPR) In addition to the regular products new technology areas have been identified in order to earmark them for future developments,in addition the new technology areas have been extensively researched upon .prominent among the new technology areas are power and control electronics for traction application energy management systems Training simulators for defence applications large telecommunication exchanges ,electronic energy meters etc. In addition to their comprehensive products profile a number of new technology areas have been earmarked for future developments. Prominent among them are power and control electronics for traction application, energy management systems, training simulators for defence applications, large telecommunication exchanges, electronic energy meters etc. On the threshold of the millennium BHELs Vision 2001 envisages further growth for EDN, transforming it into a world class enterprise providing comprehensive solutions to costumers, while exploring new frontiers in software and hardware application to fulfill the growing needs and expectations of the global market.

38

Vision: To be a world class, innovative, competitive and profitable Engineering Enterprise providing total business solutions and committed to enhancing stakeholder value. Mission: To be an Indian Multinational Engineering Enterprise providing Total Business Solutions through Quality Products, Systems and Services in the fields of Energy, Transportation, Infrastructure and other potential areas. Values: Meeting commitments made to external and internal customers. Foster learning, creativity and speed of response. Respect for dignity and potential of individuals. Loyalty and pride in the company. Team work Zeal to excel Integrity and fairness in all matters.

CONCERN FOR SOCIETY:

BHEL has made it one of its top priorities to contribute towards the upliftment of the poorer and backward sections of the society and it has always been striving for the growth of the nation Striving for the growth of the nation, BHEL-Electronics Division has always been contributing for the upliftment of the poorer and backward sections of the society. Three villages near Bangalore have been adopted by BHEL and a number of social welfare programmes like solar electricity, low cost housing, educational, medical and drinking water

39

facilities have been implemented resulting in remarkable transformation in the living conditions of the villagers.

PRODUCT PROFILE:
The comprehensive product profile of electronics division includes: AUTOMATION AND POWER ELECTRONIC SYSTEMS Power plant automation DC drive systems AC drive systems Static starters Power supplies Excitation systems Traction drive systems HVDC systems Static VAR compensation systems Industrial automation TELE COMMUNICATIONS EPABX RAX SBM MAX L (Electronic Private Automatic Branch Exchanges) (Rural Automatic Exchanges) (Single Base Module) (up to 10000 lines)

SEMICONDUCTOR AND PHOTOVOLTAIC SYSTEMS Power semiconductor devices Solar cells

40

Photovoltaic panels Integrated PV systems

DEFENCE ELECTRONICS Simfire tactical gunnery simulator Infantry weapon effects simulator for tactical gunnery training Small Arms Training Simulator for Marksmanship Training. METERS AND CAPACITORS Electrochemical (Ferrari) energy meters Electronic Energy Meters Electrolytic capacitors

A BRIEF OVER-VIEW OF THE PRODUCTS

POWER PLANT AUTOMATION Any power plant in the country has requirement of ranging from simple power units to a variety of other equipments.BHEL-EDN offers a large variety of control Digital automation systems for equipments for power stations ranging from simple control systems to single push button automation for power plants of any size. controlling steam/water turbines, boilers and generators employing Distributed Control Systems (DCS) are amongst the products that are offered. The systems for power plants include CRT-based MAN-MACHINE interface and computer based information management and optimization systems. BHEL-EDN also has unified DCS solution for the entire power plant comprising of boiler, turbine balance of plant (BOP) bringing uniformity in hardware, software, and operation methodology as well as spares inventory to the user.
41

Amongst the individual control systems for steam generators manufactured by BHEL-EDN are: -Burner management systems -Secondary air dampener systems -Soot blower control systems & -Bypass control systems -BHEL-EDN manufactures integrated control and instrumentation systems capable of monitoring and controlling the critical parameters of a steam turbine to high degree of accuracy. The system is designed for automatic safe start up and shut down, as well as efficient operation during normal and abnormal conditions. Balance of plant (BOP) automation comprises of: Control Monitoring and information system including regulatory controls. Co-ordinate controls Sequential controls Interlocks and protections Alarm annunciation Operator interface units as well as performance calculation for the entire power plant. Higher-level automation can also be offered ensuring automatic plant start-up, shut down and plant optimization. Solutions also include automation for gas turbine based on open and combined cycle power plants as well as hydro power plants. BHEL-EDN also manufactures SPEEDTRONIC MARK IV/MARKV controls for gas turbines with technical know-how from GE (USA). BHEL-EDN is the only sub licensee of GE (USA) for manufacturing and servicing MARK IV/MARKV gas turbine controls in the world. DC DRIVE SYSTEMS:

42

BHEL-EDNs Thyristorised Digital Convertors are used for DC drives with constant power or constant torque control. Many such converters are already in service in rolling mills and process lines in industries like steel, aluminums, rubber, cement, coal and copper. Converters upto 10000A ratings with digital controls have been supplied by BHEL-EDN.

AC DRIVE SYSTEMS: BHEL-EDNs adjustable speed AC Drive System with load commutated inverter is a highly energy efficient system for controlling synchronous motors used for flow Control Applications like fans, pumps, and compressors in power plants and industries. Speed control of squirrel cage induction motors with GTO (Gate Turnoff) thyristors are cost effective and low on maintenance and find widespread use in industries. The digital controls with hot stand by control and power channel increase system availability and make these drives user friendly. A number of systems have been designed for ID Fans and Boiler Feed Pumps (BFP) of various ratings up to 500 MW power plants. Solutions also exist to provide cost effective Digital Drive Controllers for new and existing induction motors employing either GTO or Insulated Gate Bipolar Transistor (IGBT) devices.

STATIC STARTERS: BHEL-EDN has designed and manufactured special purpose Digital Static Starters for soft starting of hydro generators and synchronizing with the grid either as a pump or as a synchronous condenser. The system provides an easy interface with plant I&C and has protections like over voltage, over current, earth fault etc. static starters of 18.5 MVA/13.8KV and of 3.3KV/1.2MW ratings have been supplied. POWER SUPPLIES:

43

BHEL-EDN offers state-of-the-art, digitally controlled, highly efficient low voltage and high current DC Power Supplies (Typical rating: upto 90KVA and 950V DC) with water cooled Thyristor Rectifiers to Industries like Caustic Soda, Aluminium/Copper smelters and others. Solutions also exist for high voltage power supplies (Typical rating: upto100A and 20KV DC) using air-cooled thyristors suitable for broadcasting transmitters, test plants and many other applications. BHEL-EDN has also supplied forced Air Cooled Inverters using IGBT devices, suitable for medium frequency induction heating equipment, for controlled preheating of X20 special alloy tubes for welding and stress relieving at higher temperature (Typical rating: upto 3kHz and 120 KW).

EXCITATION SYSTEMS: BHEL-EDN offers Excitation Systems in Synchronous Generators for hydro, thermal, nuclear, co-generation, and combined cycle, DG power plants as well as for synchronous machines in industrial applications. With the ever-growing size and complexities of the power system network, fast response excitation systems capable of meeting more stringent specifications are called for to improve system stability and availability. The state-of-the-art excitation system offered by EDN includes fast acting, fully controlled semiconductor bridges along with digital controls. Redundant philosophy in power and control circuits employed ensures high availability and hot repair/ replacement possibilities. The digital electronics with self-diagnostic feature, programmable logic controls and serial communication etc., provide easy and efficient integration with plant DDC. Unique facility exists at works for closed loop performance testing, using an online real time generator simulator. Solutions are also offered for different types of excitation systems such as Static excitation and Brushless excitation system in digital versions for any size and make of synchronous machines to meet the ultimate customer requirements. To date, BHEL-

44

EDN has supplied more than 800 excitation systems of various ratings, which include over 30 sets in operation in other countries.

TRACTION DRIVE SYSTEMS: BHEL-EDN has supplied 3000 HP Broad Gauge AC or AC/DC Electrical Multiple Unit (EMU) and 6000 HP Loco Power Converter/Electronics for the Indian Railways. Three-phase technology uses GTO Thyristors and Pulse Width Modulation (PWM) technique on the Converter as well as the Inverter side with digital controls for driving three phase squirrel cage induction motors. Three-phase technology has the advantage to work at unity power factor and draws sinusoidal currents. Additionally, regenerative braking results in energy saving, giving fast payback. Use of squirrel cage motor results in virtually no maintenance as compared to conventional DC Drive systems. Thyristor Converters and Controls for 6000 HP locos for the Indian Railways have already been designed. Plans are on the anvil to supply battery powered IGBT based AC package inverters for broad gauge coaches to replace MG sets. HVDC SYSTEMS: In order to improve the efficiency of power transmission system, high voltage DC transmission technology was introduced. On an experimental basis, the first project taken up by BHEL was the 100MW/100KV National HVDC project between Barsoor (Madhya Pradesh) and Lower Silery (Andhra Pradesh) with indigenous technology, based on the successful completion of the first phase, the second phase taken up to upgrade the system to 200MW/200KV using state-of-the-art technology. BHEL has also executed commercial HVDC projects of Rihand Delhi and Chandrapur-Padghe of rating 1500MW, +/- 500kv each in collaboration with ABB Power System, Sweden. STATIC VAR COMPENSATION SYSTEMS (SVC): With quality of power supply-gaining prominence both in utilities and industries, BHEL-EDN offers indigenously developed technology for reactive power

45

management by way of Series Compensation Systems and Shunt Compensation Systems. A number of systems have been supplied for both utility and industrial applications for improvement of voltage, reactive power controls etc. BHEL-EDN manufactures thyristor valves and controls for the SVC. To cater to the need of LT loads, solid state switched capacitor systems using Thyristors or Triacs are also offered for improving the power factor, reducing the reactive power demand.

TELECOMMUNICATION: With a view to meet the growing requirements of telecom sector in the fast changing world and keeping in mind the expertise gained in the field of electronics, BHEL-EDN has been manufacturing switching systems based on the proven C-DOT technology. Solutions from BHEL-EDN are available encompassing the total range of switching systems from Medium and Large exchanges. Plans are on the anvil to diversify in the area of Transmission Equipment like Time Division Multiple Access Point to Multi-Point (TDMA-PMP)

POWER SEMICONDUCTOR DEVICES: BHEL-EDN manufactures Power Thyristor Devices and Diodes of various ratings to meet the requirement of high power electronic systems used for various applications in Power, Industry and Transportation systems. While high power thyristor devices are used in high current rectifiers for Industrial projects, high voltage thyristor devices are used in HVDC applications. Power semiconductor devices manufactured by EDN are famous for their quality and reliability. As a testimony to this, the unit has won the prestigious ELCINA award thrice and has been recognized by the Department of Electronics as a Centre of

46

Excellence

in this area. A new type of diode suitable for rotational applications,

developed by BHEL-EDN, has also been exported. This device is used in the exciter of turbo-generators for power generation. PHOTOVOLTAIC SYSTEMS: Realizing the tremendous potential of Solar Power as a Non-Conventional Energy Source, BHEL-EDN started manufacturing Solar Photovoltaic (SPV) Cells and Modules besides developing complete SPV Systems. A sophisticated facility with a capacity of 2MW per annum has been set up for manufacture of cells and modules. The SPV systems are specifically designed keeping in mind the necessity. Some of the major systems in operation are SPV Power Plants (Stand Alone and Grid Interactive), Solar Power Systems for Rural Radio Phones, Telecommunications, Railway Signaling and other applications. BHEL has the competence to undertake site surveys, detailed designing, manufacture, supply and commissioning of complete application specific PV Systems. The PV modules manufactured by BHEL have been certified to International Standards (CEI/IEC 61215) by JRC, ESTI, Italy. DEFENCE ELECTRONICS: With the strong background of Control, Instrumentation and System aspects of power plants and industries, BHEL-EDN has diversified into the field of Simulators for training police, paramilitary and defense personnel with state-of-the-art technology. The following types of Simulators are manufactured:

SIMFIRE: Simfire is laser based outdoor training simulator for training of crews in armored fighting vehicles with precision gunnery and tactical warfare without using live ammunition, resulting in a much more effective training at much lower cost. INFANTRY WEAPON EFFECTS SIMULATION SYSTEM:

47

The Infantry Weapon Effects Simulation System (IWESS) is a laser-based system, which simulates the effects of small arms live fire like Self Loading Rifle, Light Machine Gun, and Snipers etc. The IWESS is used for training in Police, Paramilitary, Military forces etc. The IWESS greatly reduces the usage of real ammunition and it gives the soldier the realism of being able to accurately use his personal weapon and also gives immediate feedback about the effectiveness of his fire position, shooting skills, weapon skills and use of ground cover.

SMALL ARMS TRAINING SIMULATOR: Small Arms Training Simulator (SATS) is an indoor simulator used for marksmanship training. The system can be adopted for small arms such as Rifles, Light Machine Guns etc. The SATS system is computer based and can accurately simulate small arms with real recoil effect. It is a substitute for live ranging training, thereby reducing ammunition cost involved in training. ENERGY METERS: Electronics Divisions Induction type energy meter range includes single and three phase versions for both domestic and industrial applications. The unit to its credit has delivered over 15 million energy meters, a feat unparallel among various energy meter manufacturers in the county. The improved designs of the Electronic Energy Meters have additional antifraud features like Phase reversal and Earth loading. The new generation software based Trivector Meters with Maximum Demand Indication, Differential Tariff, Time of Day, Down loading are some of the new features being offered to customers.

WORLD CLASS TECHNOLOGIES:

48

With a view to bring world class technologies from world leaders to Indian clients, BHEL-EDN has entered into strategic alliance with many international giants, and sourced technologies from them. The significant tie-ups for different products/systems include: Siemens AG : : : : Traxis ABB ADTranz (through CLW) : : : : : : General Electric Sulzer Brothers C-DOT, India Stock Eqpt. co. Engg. Combustion : : : : : : : : : DC Drives Power Semiconductor Devices Brushless Excitation System 3 Phase AC Loco DC/AC EMU HVDC Controls Distributed Control Systems Static Excitation Systems Large Area Power Semiconductor Devices AC Drive Controls Gas Turbine Controls HP/LP, HP, PRDS Controls RAX, MAX-L, MAX-XL Gravimetric Feeder Controls Flame Scanner Amplifiers Tactical Training Simulators for Tanks Infantry Weapon Effects Simulator Systems Small Arms Training Simulators

Electronic Automation for Steam Turbines

Lockheed Martin Information Systems OSCMAR Spartanics

ACHEIVEMENTS OF BHEL-EDN 1) NATIONAL SAFETY AWARDS(GIVEN BY MINISTRY OF LABOUR) National safety awards are given to recognized good safety performance one the part of industrial undertakings (cover under factorys act 1986) and to

49

stimulate and maintain interest of both the mgt and the workers in accident prevention programmes. Five national safety awards in the winner category (TIRCHI-4 and EPD-1) have been owned by BHEL during 2006-07. 2. NATIONAL AWARDS FOR THE WELFARE OF PERSONS WITH DISABILITIES The awards are given by ministry of social justice and empowerment to recognize outstanding distribution by person with disabilities. This year Shri R. C. parakh, AGM from Bhopal unit received this award from India for his contribution to technological development of transferal product in Bhopal 3. INDIAN NATIONAL SUGGESTION SCHEMES ASSOCIATION AWARDS (INSAAN AWRDS) Indian national suggestion scheme association give these awards for excellence in various categories like suggestion, postage, technical papers, slogans etc. out of 49 awards given by INSAAN, BHEL unit have own 12 awards. These are (Ranipet-1, Hyderbad-2, Haridwarr-5& tiruchi-4). 4. EXCEL AWARDS Excel awards are given in- house to recognize, reward and place on record out standing contribution by the employees towards growth and profitability of the co and to the society 28 employees of the co from various unit have own BHEL excl awards in 7 categories which were distributed by our CMD.

5) IMPRESS SCHEME. Impress scheme was introduced companywide to exploit untapped potential in the organization to achieve higher efficiency of conversion of basic inputs like material and capital into saleable products and services. 1300

50

empowerments project have been rewarded under impress during the year in various units.

OTHER ACHIEVEMENTS OF BHELS- EDN BHELs manufactured solar panels comprising high efficiency multi-junction solar cell with 5500 vats out ptu and satellite batteries (nickels hydrogen type 70 AH). These were deployed in the communication satellite INSAT4A, which was put in geosynchronous orbit by ISRO in December 2005. BHEL has got its large- size higher wattage ( 150 watt) PV models certified by European solar test installation ( ESTI), joint research center ( JRC), European commission ISPRA, Italy. BHEL had earlier obtained the certification marketing of the entire spectrum of PV product in overseas markets. for wattage models. This internationally recognized development will facilitate

51

BANKERS
ABN-AMRO Bank, N V ANZ Grindlays Bank Bank of America Bank of Baroda Canara Bank Citibank N A Corporation Bank Deutsche Bank HDFC Bank Ltd HSBC ICICI Bank Ltd IDBI Bank Indian Bank Indian Overseas Bank Kotak Mahindra Bank Ltd Oriental Bank of Commerce Punjab National Bank Standard Chartered Bank State Bank of Hyderabad State Bank of India State Bank of Travancore Syndicate Bank

52

2. FUNCTIONAL AREAS 2.1 HUMAN RESOURCE MANAGEMENT

The dawn of the new millennium has brought with it huge challenges and bhel is aware about the changing business situations and challenges before it.One of the new approaches to human resource management is the developing and maintaining of a dynamic work culture that enables joint optimization of organizational goals and indivudual goals and individual potential .The BHEL as an organization has to focus on the need for fulfilling the changing aspirations of the people and the need to fulfill the potential of the people it also has the need for improving the efficiency of the people With the changing business scenario, BHEL is awake to the change and challenges before it. In terms of new approaches to Human Resource Management; developing and sustaining a dynamic work culture which enables joint optimization of organizational goals and individual potential, taking care of changing aspirations of the people are the key areas of focus for the organization at this juncture. Human resource is a vital and indispensable aspect of any organization and it applies equally to BHEL. BHEL has a highly efficient HR department. Recently HRD separated to Personnel & Administration Department and it is now clubbed with EDP and headed by a common AGM. There is a DGM-HRD who envisages the function of HRD.

ORGANISATIONAL CHART FOR P & A DEPARTMENT

53

Personal Officer

54

PERSONNEL AND ADMINISTRATION DEPARTMENT

The Personnel and Administration Department deals with the policies ,rules, and procedures relating to various aspects of human resource, management takes care of all the policies, rules and procedures relating to various aspects of HUMAN RESOURCE MANAGEMENT and is intended to serve as a basis for the effective and uniform implementation of these across the entire organization. In other words, it is basically an effective personal policy. BHEL has a legacy of effective personal policy and it has struck with with this policy that has withstood the test of time and has stayed put for more than 3 decades ago and updated now regularly . The employees are provided various provides various benefits to the employees. amenities and advantages and benefits, also it There is a common Head for Personnel and

Administration Department. The duties of personnel and administration are widely classified into 4 wide categories. The various jobs handled under each head are listed below. There are 3 senior assistants, personnel assistants and office superintendents all handling serious functions. The entire department is headed by a DGM (HRD). DISTRIBUTION IN HR DEPARTMENT: There are separate HR departments for all the units which administrate the HR functions at the unit level. All the units have their separate HR departments, which administrate the HR functions at the unit level. Apart from this, there is a conferrable HR, which controls all HR departments. This conferrable body is responsible for all the policy, decision-making and other key functions.

WORK CULTURE:
The priced possession of BHEL are its employees The employees are trained to meet the various needs of the organization .The most priced assets of BHEL are its employees continuous training and retaining of a positive work culture and participative style of management.This has resulted in the developing of a commited and motivated workforce, which is equipped to meet the challenges of the future. This has resulted in developing of a committed and motivated work force which is ready to meet the challenges of the future.There is participation of workers at all levels including the Shop Plant Board
55

Workers participation at all levels including the shop, the plant and even the board has become the norm at BHEL. The representatives of workers actively participate in various advisory bodies. . All employees are given encouragement to take part in cultural, sports, educational and other activities. A unique work culture has set a tradition of individual responsibility and commitment, which reflects in every sphere of BHELs growth.

COMMITTEES: BHEL has a corporate policy and culture that encourages the committees at various levels of operations for the various aspects. productivity are the Safety committee Canteen management committee Some of the committees that have contributed to the

EMPLOYEE CLASSIFICATION

1. EXECUTIVES E1 E2 E3 E4 E5 E6a E6b E7 E8 E9 -Officers \ Engineers -Senior Officers \ Engineers -Deputy Manager -Manager -Senior Manager -Deputy General Manager (DGM) -Senior Deputy General Manager (SDGM) -Additional General Manager (AGM) -General Manager (GM) -Executive Director (ED)

2. SUPERVISORS 3. ARTISANS 4. SUPPORTIVE TECHNICAL STAFF 5. UNSKILLED WORKERS

56

6. SEMI SKILLED WORKERS 7. CLERICAL AND OFFICE STAFF 8. TRAINEE ENGINEERS\ OFFICERS 9. TEMPORARY AND CASUAL WORKERS

IMPORTANT FUNCTIONS OF HRD

1. TRANING AND DEVELOPMENT OF EMPLOYEES: Training is a tool that helps an organization in avoiding the obsolence of knowledge of man power. Some of the reasons for training are: Technological obsolescence Motivation Attitudinal changes Reduce manpower turnover Improve the qualities Increase the productivity Personnel growth Training is classified into two types: 1. In house training 2. External training INHOUSE TRAINING: This type of training is done within the BHEL-EDN premises,.the people who take up the training are internal or external,the trainer is usually an expert in this field. There are training coordinators to evaluate the need for any training required in their department. They have a strategy of coordinating with the training programme. Some of the common topics covered are Personality development, Aptitude,
57

Social responsibility, Social development Attitude etc EXTERNAL TRAINING: This type of training programme which all the executives usually undergo are usually conducted by professional consultants who may be from india or abroad.

The various types of methods used to train the employees are that the workshops are conducted in hotels.The contents of this programme include the programs conducted by educational institutions and professional bodies .The subjects dealt with include Personality development Stress management etc. The employees who attend such programmes are selected depending upon the vitality of the subject and the kind of positions the employees are in the organization, usually it happens that external training is usually for the employees who are high up in the cadre in the organization

BUDGET
The actual budget allocated for training is about 25 lakh rupees, though the amount is increasing due to the increase in complexity of organization .The amount only deals with the sum paid to the trainers and the training program and does not include travel expenses which are related to training. 2. TRAINING FOR APPRENTICESHIP AND MANAGEMENT TRAINEES: The recruitment of apprentice has come about as a policy due to the fact that BHEL has stopped recruiting people for the lower level,these are the posts which do not require much qualification and less qualified persons could be recruited into it. The hiring of apprentice solves this problem. Every year 600-700 apprentices are selected for various levels of jobs with different background.The people with requisite qualification are recruited depending upon their
58

qualification or its equivalent and are placed in various departments depending on the requirement placed by various departments.

Monthly Enrolment
Every apprentice is fixed a monthly stipend of Rs 1900/-, as per the Government Policies and an additional Rs. 50 is provided from BHEL, amounting to a net stipend of Rs 1950. The apperentice is given a facility of using the canteen in which he is avails the food facility at subsidized rates,another added facility is the use of companys transport.They are even provided with a pair of uniform Selection process of apprentice: The apprentices are selected from all over India through a campus recruitment process. The process of selection is through written test and interview.

Management Trainees: BHEL has the policy of employing only at lower level of executive cadre, which is E1 class. Later they are promoted based on their service and merit. The executives selected on the E1 classes are called the management trainees. They are on the training period of one year, later they are all absorbed as regular permanent employees. In the period of training they are offered a salary of Rs 7000/-, then they are finally selected as engineers.

METHOD OF SELECTION FOR MANAGEMENT TRAINEES

The various steps followed in selection are as given below. a. b. Advertisements: The Corporate Office, Delhi, specifying the needs of all the units and offices, gives Advertisements in all major newspapers. Screening: Written examination in which, Part1 constitutes academic specialization of the candidate, Part2 constitutes general awareness and aptitude. Both the parts are of the objective type.

59

c.

Interviews: Interview committee conducts the interview of the selected candidates on various aspects of individual like enthusiasm, initiative, creativity, attitude, behavior, loyalty factors, etc.

STUDENT TRAINEES: As a social obligation and responsibility, BHEL EDN is continuously helping young students by providing the necessary project training. In plant training (non-technical aspect) (M.B.A, M.COM) Industrial training (technical aspect) (Diploma, B.E, M.E) Industrial visits.

3. CO-ORDINATION IN SEMINARS AND MEETINGS: HRDS one of the major activities is the work of coordinating various seminars and meetings which are organized in the premises. The onus is on HRD to arrange for the necessary facilities and infrastructure It is the responsibility of HRD to arrange for the necessary facilities and infrastructure.In certain cases they even host seminars which are beneficial to the society.

WELFARE AND BENEFITS

LEAVE TRAVEL CONCESSION (LTC): Once in every 2 years, employees can go on LTC to any desired destination in India along with their family members. An employee of the grade of DGM and above can claim airfare, where as others can claim for second-class AC rail fare.

60

RETIREMENT BENEFITS
Individuals who retire on completion of service duration get some of the benefits if he has been in continuous service for the past 3 years. They include Pension Provident fund Group insurance etc.

VEHICLE LOAN: Vehicle loans are provided for all the permanent employees depending on their cadre for a 2 wheeler/ 4 wheeler. Employees of the cadre of E2 and above are only provided a 4-wheeler loan. Other employees are provided with 2 wheeler loans. The loan amount is Rs 15000/- and 1, 10,000/for two-wheeler and 4 wheeler respectively. The loans are made available at the interest fixed by SBI. DEATH COMPENSATION: In case of death of any of the employees during service, BHEL provides all the benefits that are due to the nominee. Provident Fund and Gratuity payments are allowed to the immediate payments, it however doesnt provide any job compensation for any of its family members. Any of the savings during the course of service and any unsettled cashable leaves are paid to the family members immediately. COMPUTER LOANS: All the executives are entitled to a computer loan of Rs 80000/- at an interest of 1.8% per month (fixed by S.B.I). UNIFORMS: Every employee and casual labourer is provided the material for a pair of uniform every year. The stitching charges are paid by the company, which is fixed by the Corporate Office. INTERNET REIMBURSEMENT:

61

Executive of E1 to E5 is entitled to claim for 100 hours of Internet charges. Where as the E6 and above can claim for 250 hours for a year. MEDICAL EXPENDITURE: The company meets all the medical expenses incurred by the employees. The claims can be made on monthly basis. In case of high amount for major surgeries or such, the advance can be obtained by producing the necessary documents. The claims can be made for every family member of the employees. TRAVELING ALLOWANCE: Any of the traveling expenses incurred by an employee for any official work is met as per the guidelines. The Executives of E5 class and above can claim for carfare.

NEWSPAPER ALLOWANCE: Every employee is given newspaper allowance every month. The amount is however fixed by the Corporate Office and is included in the salary.

HOUSING FACILITIES:

The employees are eligible to claim accommodation facility.

DEARNESS ALLOWANCE: DA is granted to compensate the price increase above CPI 1099 points, to which the revised salary grades relate. Payment of DA based on slab basis relate to percentage increases over quarterly of AICPI 1099. INCENTIVES/ BONUS:

62

BHEL does not practice incentives on any individual performance. Every year based on the turnover and profits, yearly bonus is given to all its employees as fixed by the corporate office. WORKING HOURS: Every individual has to put in a minimum of 48 hours of work per year, 7:30 am to 4:30 pm in all working days except on Saturday (7:30 to 12:30 pm), Sunday is weekly off. LEAVES: Casual Leave (CL): During the period of training and on absorption, every employee is eligible for CL of 10 days per year. CL can be claimed even for half a day.

Earned Leave (EL): During the period and on joining, each employee is entitled to EL with salary for 30 days in the first five years of service. The minimum limit of the accumulation is 240 days. Maternity Leave: All female employees, excluding apprentices, according to the Apprentices Act 1961, are entitled to the grants of maternity leave. Subject to the provision of this act, every woman shall be entitled to and her employer shall be liable for payment during the period of her actual absence immediately proceeding and including the day of her delivery and for the immediate six weeks. Canteen Facilities: Every employee, temporary or casual is provided with the canteen facility. The food is available at subsidized rate.

63

Law & Administration

Law & Administration is playing a vital role in maintaining the company rules & regulations & to give justice for the employees. It has its own legal advisors to maintain justice in the organization. An executive takes care of the departments. Quite a large number of disputes of BHEL-EDN are about the quarrels between two parties regarding the breaking of company rules & regulations laid by corporate office. Disciplinary action is taken against the employees who do not obey the rules. Depending on the seriousness of the case, it is transferred to the court. 4. PERFORMANCE APPRAISAL: Every authority maintains Annual Confidential Report (A.C.R.) of all his subordinates with the performance recorded very often. It is kept highly confidential and is available only to the senior authority and the personnel department. During the time of performance appraisal the promotion committee discusses the various positive and negative factors.

Promotions: Every employee is eligible for promotion. The criterion for promotion is time bound and performance/merit based. The promotion is given once the employee completes the stipulated duration and then based on the performance; promotions are awarded. The list is usually released twice a year, once during June and other during December.

PROMOTION POLICES AND RULES

Objectives To provide all employees with broad equality of opportunities in growth and career prospects. To ensure fairness, equality, consistency and uniformity in the matters of promotion of employees in all the units/divisions of the company
64

 To sustain the high morale of the employees by informing them of the promotion opportunity existing in the organization. PROMOTION RULES: Classification of group/cadres: For the purpose of promotion and career growth all the employees are included in one of the following groups/ cadres. Sr. Executive cadre Executive cadre Supervisory cadre Skilled labour Semiskilled group Unskilled group E6 and above E1 to E5 SA1 / SB 1 to SA7/SB7 & IES A3 / B3 to A11 / B11 A2 / B2 A1 / B1

Sr. Executive cadre is treated as all company cadres. Promotion to and within this cadre will be regulated on a company wide basis and carried out by the corporate office on the recommendations of the special committee.

VOLUNTARY RETIREMENT SCHEME (V.R.S): The organization structure in BHEL not being a pyramid and the number of people in the middle management being people of the lower class, BHEL has come out with V.R.S. The benefits to the employees were as below: 45 days salary of each completed year of service. Claim on gratuity and provident fund as per the legal rules under the various schemes.

Exit Interviews: BHEL had a different story regarding the number of people who used to leave BHEL before liberalization and number of people who have left BHEL after liberalization.It was found that not
65

many people used

to leave BHEL With the break up of the erstwhile soviet union the Indian

economy was in a crisis situation with a situation where the foreign currency was just enough to last one week,the then financial minister manmohan singh brought about changes in the economc structure by bringing aabout reforms like liberalization,privatization and globalization.Now MNCS are offering better prospects including better remuneration .Now when many MNCs have opened their offices and are offering better prospects, it is observed that considerable amount of people are quitting for better prospects. The problem with BHEL is that it cannot offer a higher pay package than that defined in the personel policy. When exit interviews were conducted for the employees quitting BHEL it was found to give predictable results and the reason for those results. Exit interviews were conducted for the employees, quitting BHEL. A specific form is to be filled by every employee and even suggestions are taken on the working and the improvement of the organization. Dealing on their reasons for quitting the organization, BHEL has found that better prospects are the main cause and it is not really possible to tackle this problem; BHEL is trying to develop loyalty amongst its employees.

Medical facilities: Medical facility unit has own hospital and has a contact with a chain of hospitals like St.Johns hospital for neurology. Apollo hospital for cardiology. Mallya hospital CMC Vellore for cancer disease. KIMS Service is free for the employees in these hospitals and facilities are given for the employees and his family, but for children only up to 18 years of age. Depending upon the grade of the employee the hospital facility is provided as General ward Semi private ward ------employee ------for E1

66

Private ward INSURANCE:

------for E11

Insurance establishment is responsible for two types of insurance a. b. Group saving insurance connected with corporate office and LIC Group saving linked insurance.

2.2 MANAGEMENT INFORMATION SYSTEMS DEPARTMENT

BHEL has expressed interest in the field of information technology adding value to its expertise in the domain of power station engineering,servicing and allied areas.BHEL can diversify to work in fields like economic utilization of the knowledge of InfoTech and IT enabled services.BHEL can leverage itself to diversify into the new economy sector of InfoTech and IT enabled services. The company is strengthening its IT linkages within the organization and is evaluating its approach towards emerging opportunities in IT, including e-business which is fast transforming the traditional ways of business transactions.

67

With these strategies, initiatives and continuous efforts to enhance its competitiveness by reducing cycle time, cost and improving quality .BHEL is on its way to achieving its vision of being a world class innovative, competitive and profitable engineering enterprise providing total business solutions. BHEL started computerization in the early sixties.Initially, the manufacturing units were dependent on the technology transferred from the collaborators through collaborator supplier systems procedures and computer programs with suitable adaptations. Each of the manufacturing units has a strong functional, computerized system base supported by state-of-the-art information technology. The major units have centralized mainframe computers, while minor ones have got mini-computer systems. The front-end-user-friendly desktop personal computers are used in each of the units extensively. In the data communications area, all the units are linked up through a wide area corporate data network, BHELNET. Each of the major units is in the process of setting up its campus-wide backbone network supported by the LAN for inter-office/departmental connectivity for systems integration. . . A core group of IT personnel are available in each of the units with proper support and direction from a similar apex body at the corporate level.

MIS SUB SYSTEMS

MIS

Transaction Processing System (TPS)

Management Reporting System(MRS)

Decision Support System(DSS)

Office Automation System(OAS)

68

2.3 PRODUCTION DEPARTMENT

Production in EDN is divided into 6 product groups.

PRODUCT PROFILE

Control Equipment

TSC HVDC

Meters & Capacitors

Telecom

SC & PV

Defense Simulators

PRODUCTION MODEL:

PRODUCT
Control equipment

PRODUCTION TYPE
Job order production

LAYOUT
Group technology (Product+Process)
69

TSC & HDVC Meters & Capacitors Telecom SC & PV Defense simulator

Mass production Mass Production Batch production Batch production Job order production

Process layout Process layout Process layout Mixed & product

FABRICATION SHOP & TOOL ROOM: There are 2 fabrication shops in the electronics division and one tool room for the entire factory needs. Fabrication shop no.1 caters the need for meters and capacitors division. Fabrication shop no.2 caters the requirement of CE division. Tool room is common for the division. Tool room has number of machine tools such as lathes, milling machines, grinding machines, NC & CNC machines and many special purpose machines. DESIGNS: Design department comes into being after the commercial group prepares a MO and sends it to designs. Its significance lies in the fact that most of the orders of BHEL-EDN are customized.

PROCUREMENT OF MATERIALS: Material Requirement

Stores for the materials In stores)

MRP

Probable date (Checks of completion (It looks for the

70

Pending order)

Raising Indent

Suppliers

FOLLOW UP: Present month requirement is received by PPC and MPC and once in 3 months they meet and review the issues.

INVENTORY:; Additional material, new material and reduction material are accommodated and amended by purchase department. BHEL-EDN maintains minimum order quantity method for non-moving and slow moving materials. This is to allow purchasing any quantity from manufacturers, where batch order, that is MOQ (no less order if it is necessary than it is ordered). Hence it takes care of non-moving and slow moving materials.

MATERIALS MANAGEMENT: The departments major responsibility is to make sure that the right material of the right quality and quantity is supplied at the right price and at the right time. AGM or a senior DGM usually heads this department.

There are two departments that work under materials management for achieving its objectives, they are: Purchase Stores
71

MATERIALS PLANNING AND CONTROL (MPC): This department is usually headed by senior DGM. This department plays a strategic role in materials management. MPC is the prime agency responsible for the availability of any material required for production and hence constantly keeps track of material status. It is the department, which receives the material requisition (M.R) from the engineering dept and makes sure that the required material is made available to the manufacturing section. As this department has the major responsibility of the stock in the store and for allocation and coordination with the purchase department for procuring the right material.

Functions of M.P.C: Allocation of materials Follow up Authorization Inventory control PURCHASE: This department is headed by the senior DGM. This is the department that has key responsibility for placing the purchase order (P.O) and procuring the right material.

PURCHASE PROCESS: The technique of processing the right material from right supplier at a right price can be termed as the major function of the purchase. The steps carried out in this process of purchase are:

72

1. An initial check if there are any orders placed for similar material. If so then order placed is amended for the additional required quantity. 2. In the absence of any such order being placed there is a check for any rate contract (R.C) with the suppliers for the material intended. If any R.C is found, the order can be placed immediately. 3. In absence of any such R.C, check is made for any similar order placed in the past. If there is any order placed and the quantity required is less than three times and if the number of order placed of the same orders being less than three times, a repeat order can be placed. 4. In absence of any such repeat purchases, tender is called for and the purchase order is released.

STORES: This department is headed by the senior DGM. The major responsibility of this department is to store the material and issue them when requested by the authorized intender.

STORES OF BHEL-EDN: Maintain assembly store or component store. PCB stores: mechanical stores and electronic stores. Stores telecom Semiconductor stores. Photovoltaic stores. Energy meter and capacitor stores. Tool crib stores. Central tool crib stores. Inflammable and chemical stores. Scrap and surplus stores. Maintenance stores.

73

INDUSTRIAL ENGINEERING: Industrial Engineering is oriented towards optimum usage of the resource available. It includes the techniques like work study, time study, method study and PTS etc. Some of the advantages of Industrial engineering are stated below In calculating the expected time required to complete a project In fixing time standard for jobs In production planning and control In analysis of man, machine and material flow In performance appraisal In computing efficiency of the individual In estimation of overtime required in completion of any time bound project In decision making of Top management Make or Buy decision Assessing training needs Assessing manpower requirement As already discussed IE focuses towards optimization of resource available Vendor rating

74

2.4 MARKETING & COMMERCIAL DEPARTMENT

Marketing: Approach to marketing is different at BHEL, as customers are usually known and The central

orders are of large size and value. The main function of marketing department is to procure manufacturing order (M.O.) in coordination with the Commercial Department. assigns to the required manufacturing units. The process of sanctioning a project goes through the following stages: marketing agency is located at the corporate office in Delhi. It breaks a composite project and

CUSTOMERS

PROJECTS

FEASIBILITY STUDY

75

ORGANISATION CHART OF THE MARKETING AND COMMERICAL DEPARTMENT

GENERAL MANAGER

SDGM (CE MARKETING) - Proactive Marketing - Tendering - Post tender follow up

SENIOR OFFICER

SENIOR OFFICER

SENIOR OFFICER

- Utility power store For thermal (coal gas) & Nuclear -

- Renovation & moderation - Hydro power store control - Drives & manpower supplies - BHEL in-house equipments

- Transmission &automation

Captive power product control DCS for process Index

Staff

76

The following ways are used for getting an order: a) Direct enquiry b) Bidding after floating an enquiry, tenders and procures (annexure checklist for tender review), technical viability studies and commercial analysis is done to select the best one, 8090% of the orders floated have been bagged by BHEL. c) Global competitive bidding (funded by World Bank). BHELs international competitiveness is demonstrated by the fact that it has bagged 86% of the order floated for competitive bidding. BHEL usually adds a profit margin of about 10-12% of the orders. BHEL-EDN has different Marketing Department for each product group. Now the MNCs have started emerging as its competitors like Siemens, ABB, etc. BHEL-EDN exports its products to Iran, and Malaysia successfully. Some of the customers of BHEL-EDN are TISCO, MRL, Jindal Power Company Limited, Narmada Valley Authority Power Corporation Limited, Mysore paper mill, KPTCL.

Strengths: -BHEL is an established company -BHEL products are more standardized Weakness: -BHEL technology is not up to date -After detailed review and analysis the reasons for tenders lost by BHEL are because of Diplomatic problem Main orders lost at the corporate level Technological threats
77

 Finance Price Customer preference

2.5 FINANCE DEPARTMENT

DEPARTMENTAL STRUCTURE:

Executive Director

A.G.M Finance

Senior D.G.M 1

Senior D.G.M 2

D.G.M - 1

D.G.M 2

Senior Manager 1

Senior Manager 2

Senior Manager 3

78

Manager 1

Manager 2

Manager - 3

Sections of finance department

The various sections under finance department are: Book and budget Sales Priced stores ledger Costing Establishment Bills payable Books & budget: Collection of accounts from different sections Preparation of trial balance and final accounts Coordination with auditor Helps statutory auditor Sales: It deals with Invoice generation Billing Collection Debtors ledger MIR etc. Priced stores ledger: This section is responsible for maintaining accounts for the stores in monetary items.
79

Costing:

Each product is having a separate section. It sets the cost that is used by commercial

group to add profit margin to set the price. Establishment: This section is responsible for cash disbursements and payment. It handles all the payment to the employees such as
Benefits:

Medical reimbursement Provident fund Incentives Loans and advances etc. Bills payable: This section handles the payment to be made to the suppliers once the S.R.V (store receipt vouchers), P.O (purchase order) invoice are received, cross verification of the P.O terms, quality and quantity assurance with the S.R.V and invoice. satisfactory, the payment is issued as per the terms. Features: BHEL is the first government company to publish accounting policies. They have BHEL units cannot borrow Once all the claims are found

centralized cash credit control and centralized cash management. are allocated to other units and interest is charged on them. Other important functions Payment to establishment wages, salary etc. Payment to suppliers, 1. Indigenous purchase 2. Important purchase (e.g. purchase, bills) Terms of payment for purchase are: 1. Letter of credit (L/C) (most preferential) 2. Advance (D.D)

directly from outside but from centralized component account. The surplus funds of any BHEL unit

80

3. Cash and delivery (C.O.D) 4. Site draft (S.D) (if supplier is not familiar) 5. Pro-forma payment

SERVICE BILLS: This section maintains bills for payment of Factory service Maintenance (civil & mechanical)

PURCHASE FINANCE: Procurement of both indigenous and imports, 300 crores of material is purchased every year and 50-60% are imports.

INTERNAL AUDIT: The main functions of internal audit are: Fault recognition Suggestions for improvement Overseas work of book budget Assisting working level people Internal audit conducts site audit, once in a year. It is a practice of conducting an internal audit before this statutory external audit and this audit is conducted by CAG (Controller Auditor General).

81

Additional information: Weighted average method is used for inventory valuation. Companies use act of 1956 straight line depreciation method on fixed assets. By income tax act 1961 written down value method is used for charging depreciation.

82

BHELs expected performance for the year 2009-10

Gross Sales (Turnover) (Rs. Million) 310,000 Gross Margin (Rs. Million) 64,270 PBDIT to Total Employment (Rs. Million) 1.38 Gross Margin to Gross Block (%) 93.75 Gross Profit to Capital Employed (at year end) (%) 50.11 Net Profit to Net Worth (at year end) (%) 24.70 Added Value to Gross Sales (%) 16.91 Further, a stretch Turnover target of Rs. 320,000 Million has been fixed under 'Excellent' rating . In addition, a large number of Dynamic Parameters, Sector specific and Enterprise specific parameters covering areas such as Improvement in Customer Satisfaction Index, Human Resource management, Employees satisfaction survey, Timely

83

completion of Projects under Modernisation and Expansion Achievement of Delivery Index of on time deliveries in Customer Projects, Engineering and R&D, Globalisation through entry into new market segment Corporate social Responsibilities and Environmental Improvement projects have been identified with specific targets for each of them to be achieved.

2.6 QUALITY DEPARTMENT

ORGANISATION CHART OF QUALITY DEPARTMENT

Assistant General Manager

Senior Deputy Manager

Deputy General Manager

Senior Manager

DGM

Senior Manager

Senior Manager

SMer

Manager

84

QUALITY ASSURANCE
For most of its operations BHEL has acquired ISO -9000 certification . International bodies like ASME and API have awarded certification to BHEL after Comprehensive scrutiny and verification of systems and operations in force is in various units. Calibration facilities / testing laboratories have also been accredited under the NCTF scheme being operated under the aegis of DST (Department of science and technology).

Focus on Quality
ISO 9001 certification conferred by the Bureau Vertas Quality International (BVQI) UK, on . Latest, high precision test equipment in each area of testing is available in the mechanical, electrical, electronics and chemical laboratories. A full-fledged metrology laboratory (accredited by National Accredition Board for Testing and Calibration laboratories) caters to periodic in-house calibration of all mechanical gauges and fixtures. All electron test and measuring instruments are calibrated regularly at the units wellequipped Instruments calibration laboratory. The proximity and access of BHEL EDN, Bangalore to a number of defense and civilian test and evaluation facilities like CQAL, ETDC, CPRI, IISC and LCSO has helped it to be in touch with the quality standards. EDN also has a close working relationship with organizations like Bharat Electronics (BE), National Aeronautics Laboratory (NAL) and several defense laboratories , availability of subcontractors and vendors certified and approved by agencies like C-Dot, defense and space research organizations Electronics Division has enabled it to strengthen its presence both at home and in the International market.

85

NATIONAL AND INTERNATIONAL RECOGNITION

BHEL photovoltaic modules certified to the international standard IEC 61215, by Joint Research Centre, European commission, ISPRA, Italy.] ISI certification (IS 13779) for Electronic Energy Meters. HN Thandani award conferred on EDN by the Indian Institute of Industrial Engineering in recognition of innovative development and support to industrial engineering and productivity. IETE Corporate award for EDN by the Institute of Electronics and Telecommunication for outstanding performance and excellence in Electronics and Telecommunication. EDNs quality circle won the second prize in the National Convention of Quality Circles. For the second consecutive year, EDN received the British Safety Council Award. As a commitment towards Total Quality Management in line with CII / EFQM guidelines, annual improvement action plans are being implemented involving techniques like; Benchmarking Business Process Re-engineering Six Sigma and Kaizen BHEL has finalized a Corporate Environment Management Policy for ISO 14001 certification. For ISO 9001 certification the Internal audit is done once in 6 months by the BHEL personnel independent of their functions and the External Audit is done by BVQI (Bureau Veritas Quality International) The management Responsibilities regarding Quality are: Management must define and document its policy objectives and commitment to quality. Ensure that it is understood and implemented at all levels. Define responsibilities and authorities. Identify verification activities and assign to competent personnel with adequate resources.
86

 Appoint a management representative.

THE CII MODEL FOR TQM (followed by BHEL)

People Mgt

People satisfaction Processes Business results

Leadership

Policy & strategy Resources

Customer satisfaction Impact on society

ENABLERS

RESULTS -

Self-Assessment Continuous improvement Business Excellence

QUALITY SYSTEM STANDARDS

ISO INTERNATIONAL ORGANISATION FOR STANDARDISATION ISO SERIES OF STANDARDS ISO 9000, ISO 9001, ISO 9004

87

ISO 9001
Covers management responsibility, contract review, control of design, purchase, documents, production, testing storage etc. All units of BHEL are ISO 9001 certified Certification Agency- BVQI (Bureau Veritas Quality International) Internal Audit once in 6 months BVQI (external) Audit once in 6 months First certification was in July 1993 Recertified in Nov 1996(once in 3 yrs) Further recertified in Dec 2000

ISO 9000-2000 VERSION- BRIEF OVERVIEW

Revised standard is compatible with principles of ISO 14000 and TQM. It centers on results achieved through P-D-C-A (Plan, Do, Check, Act) and process approach. Focus on business needs, continual improvement through measurable performance parameters leading to customer satisfaction. Mandatory documentation requirement simplified; required in 6 of the following areas. 1. Document control 2. Quality records 3. Internal audit 4. Control of non-conforming products 5. Corrective action 6. Preventive action

88

ISO 14000 (ENVIRONMENT MANAGEMENT SYSTEM) Covers Statutory, Regulatory Acts (Pollution, Chemical Treatment, Discharge etc) Energy Conservation, Resource Utilization QUALITY ISSUES FACED BY BHEL PROBLEMS FACED (ISSUES) STAGE I: During installation, pre commissioning and commissioning 1. Performance/Function Input to Output performance (w.r.t. specification as per contract) 2. Dimensional Mounting Fitting Connections Layout Foundation etc 3. Completeness Incomplete Supplies Incomplete Finish Incomplete Spares Incomplete Tools Incomplete Documents (drawings, test reports/certificates etc) 4. Quality of Documentation Inadequacy (technical information) Not clear/legible 5. Delivery Delay w.r.t. Contract
89

 Not in sequence as required by site/customer 6. Others Finish Alignment Appearance Ease of handling/maintenance Ergonomics 7. Response time, behavior and attitude of BHEL personnel towards customer. STAGE II: AFTER COMMISSIONING, TILL THE END OF WARRANTY PERIOD Performance/Functional Completeness Quality of Documentation Others Response time, behavior STAGE III: POST WARRANTY PERIOD Performance/Functional Others Response time, behavior STAGE 0: PRE ORDER (i.e. TENDER, NEGOTIATION) Quality of Documentation Response tie, behavior

90

TQM MODEL: THE TEN ESSENTIAL STEPS 1. Management Readiness 2. Customer- Supplier Partnership 3. Environment Scanning 4. Existing System 5. Strategic Planning 6. TQM Training 7. Disciplined System Implementation 8. Process Enhancement 9. Performance Evaluation 10. Continuous Improvement

91

2.7 SAFETY DEPARTMENT

BHEL safety organization is taking every step to minimize accidents, by taking care and involving at the stage of planning and designing. Though the frequency rate of accidents is comparatively low, the management is taking keen interest to reduce the accidents as far as possible by engineering methods and personnel protective equipments at inevitable stages. Safety day is celebrated around March every year and surprise site visit to see whether the employees are following safety measures.

ORGANISATION CHART OF SAFETY DEPARTMENT

SENIOR MANAGER (Factory Service)

MANAGER (Safety)

EX-FOREMAN SAFETY

SENIOR ENGINEER

92

Safety precaution in BHEL EDN, Bangalore: Towards accident prevention: Safety committee Safety steward committee Safety training for executive supervisor and artisans Accident investigation reporting systems Issue of safety equipment The objectives of the safety committee is to Control the accidental hazards Promote safety consciousness among employees Communicate to the top management regarding safety aspects Safety stewards will be entrusted with the responsibility of continuous watchfulness. Persuasion and correction of fellow employees to enable safe methods of work being adopted (Steward Scheme in BHEL since 1988). Award of rolling shield for safety and cleanliness. A scheme for awarding a rolling shield for safety and cleanliness was introduced during the year 1983 in the unit. The rolling shield will be awarded to sections that maintain good safety condition of working and maintain cleanliness. Chemical hazard prevention in Electronic Division: Identified areas Electrolytic Capacitor Photovoltaic devices Painting Effluent treatment plant
93

Inflammable material stores.

In order to prevent toxic effects of chemicals by the way of contact via respiratory tract, skin, eye, mouth, or any other route, safety measures have been taken.

Hazards

The chemical hazards are corrosive and toxic.

Safety measures
Exhaust fans are provided at forming and etching areas. Personnel protective equipments such as hard glass, proof apron and goggles are provided.

Water resources
BHEL EDN has got 2 ground level reservoirs in which the water from all the bore wells and open wells is pumped. This water in the ground level is chlorinated at regular intervals. The chlorine content is regularly monitored and the potability of the water is frequently verified with the experts and control boards.

Effluent treatment
The effluents from all the departments are collected at the effluent treatment plant. They are collected in separate tanks and through separate effluent lines. They contain toxic specifies like the hexavalent chromium, cyanide, etc.

94

Safety measures
Separate soundproof chamber is provided. Exhaust fans and Ear aids are also provided to minimize sound effects while in operation.

AC Generators
AC generators are used in case of emergency when power supply is cut down.

Safety measures
Power generating machines are installed on huge concrete platforms. Inside these platforms huge rubber blocks are fixed with nuts and bolts so as to minimize the vibrators. Fire alarms are also kept.

Fire alarm System

Device building smoke and heat detectors Computer room-smoke, heat and infrared ray system.

Fire extinguisher (portable and trolley mounted) Type Soda acid Foam DCP Carbon dioxide Halogen Water and sand buckets capacity 91 litres and 10 gallons 91 litres and 10 gallons 2kg, 5kg, 10kg, 22.5kg. 2kg, 6.8kg, 22.5kg. 5kg. 9 litres capacity

95

2.8 SWOT ANALYSIS of BHEL-EDN: SWOT Analysis Strengths:

The company has 180 products under 30 major product groups that cater to the needs of the core sector like power, industry, transmission, transportation, defence, telecommunications and oil business. BHEL's ability to acquire modern technology and make it suitable to Indian conditions has been an exceptional strength of the company. 96

Strong relationship with NTPC is a strength as NTPC is planning a capacity expansion of Rs. 52 bn and based on the past, 85% of NTPC projects have been bagged by BHEL. The company also enjoys purchase price preference.

Weaknesses:
PSU status is a big weakness for BHEL as it is subject to their rules and regulations and is forced to carry a huge amount of labor force, which it is not able to retrench. The company offers very stringent credit facilities to the customers and this is a weakness when compared in the face of rising competition. On the other hand their customers in the power segment, SEBs, have a huge amount of receivables standing against their name in the company's balance sheet. This is a major weakness for the company. The company is vertically integrated, which could have been avoided by outsourcing its components for power generation and transmission. This could have reduced the cost.

Opportunities:
The power sector reforms are expected to pick up in the near future in India, which would directly benefit BHEL. Increase in defence budget will increase the topline for the company. NTPC is planning additional capacities to the tune of 2,800 MW, at a cost of Rs 52 bn. BHEL could benefit a lot as it has happened in the past that significant portion of the project of NTPC is handled by BHEL. Nearly 85% of the NTPC projects were assigned to BHEL only. The business of modernization and renovations of power plants is expected to grow in India. The disinvestment plans of the government would bring in new resources and experience into the company. Joint Venture with Siemens in the name of Powerplant Performance Improvement Ltd. (PPIL), is a major strength for the company. This tie-up will be beneficial as there is a lot of scope for business. During FY00 the PPIL received orders worth Rs. 320 crore.

Threats:
The global trend of consolidation has already resulted in a fall in turnover of the company and this will prove to be a major threat in the years to come as well. The company is dependent on NTPC to a great extent. Recently, the government has permitted the import of second hand capital goods that are 10 years old without the need for a license. This move will definitely increase competitive pressures for BHEL.

. SUGGESTIONS
97

1. Control Equipment to continue to be main contributor 2. Growth in Photovoltaic business should be anticipated 3. Shift in Telecom business from land line to mobile 4. To tap business in WLL and Access products 5. Entry into defense areas like Embedded Electronics, Naval Mines and Torpedoes, Computer Graphic Images (CGI) based Simulators, Battle Management System, 6. Combat Training Center (CTC) etc.

3. CONCLUSION
The electronic division of BHEL was formed in 1976 growing from a meager turnover of Rs 3 crores in 1976-77 to 500 (approximately) crores in 2001-02; BHEL has entered a new phase of growth. Its quick progress was aided by the collaboration with international leaders in the field of power and control electronics. Today, BHEL is the 12th largest company in the world in Power Plant Equipments manufacturing and the largest in India. The company has the ability to manufacture the entire range of power plant equipment and has one of the largest capacities of power plant equipment in the world. This enables the company to bid for large power projects. BHEL's cost-competitiveness vis-a-vis international competition in the power sector can be attributed to the factors like fully depreciated manufacturing facilities, lower labor and freight costs and economies of scale. Apart from being the lowest cost producer, BHEL also possesses the infrastructure that can supply power equipment for 4,000 MW of generating capacity annually. Today BHEL is one of the most profiteering PSUs in the country. All the products have continued to be the undisputed leaders in the categories, which is extremely creditable in the changing environment.
98

Looking around from its commanding height, BHEL sees exciting things happening today in the field of automation and power electronics and like any other adventurer it is eager and ready to cover new terrains. BHEL is more than just a company, a responsible member of the eco-conscious community, contributing towards the preservation of the environment. A true corporate citizen of the world. Electronic division stands poised for greater conquests in many challenging fields, using state of the art technologies and keeping pace with the international standards. BHEL-EDN has earned profits from the initial stage of its operations and it is confident of meeting all the challenges that lies ahead and aims at achieving the highest turnover. The current phase of innovation and business solutions has thrown up a number of challenges and opportunities for a changed approach to business itself, especially in the power sector. The organization has to explore new ways to tap the market for business and adopt strategies like lease financing, joint financing, joint bidding/ consortion, joint ventures deferred credit, financial packages, equity participation etc, appropriately

BIBLIOGRAPHY

PUBLICATIONS
1. 2. 3. 4. 5. 6. BHEL manuals and publications. The Hindu Newspaper. Prerana magazine Economic survey Budget 2009 Tata Mc Grawhills 4th edition

99

WEBSITES
1. 2. 3. 4. 5. www.bhel.com www.abb.com www.siemens.com www.BHELELIS.com www.karvy.com

100