Suman Project

FINAL PROJECT
On
“ Business strategies and training process in NHPC ”
Submitted towards partial fulfillment of requirements of

Two Year Full Time PGDM (Equivalent to MBA)
2009-11
Supervisor/ Guide: Submitted By:
Asjad Usmani Suman Jakhar

Roll no: 963
Batch:2009-11
DPC INSTITUTE OF MANAGEMENT

(An Educational Wing of Delhi Productivity Council)
Approved by AICTE, Ministry of HRD, Govt. of India
Sector 9, Dwarka, New Delhi-110075
Declaration
I, Suman Jakhar, Roll No: 963, student of PGDM(Equivalent to MBA)

Batch (2009-11) at DPC Institute of Management Sector 9, Dwarka,
New Delhi-110075 hereby declare that the project / report titled “
Business strategies and training process in NHPC ” has been completed
by me independently and the concerned report has not been submitted
elsewhere for any purpose.
Signature of Student
Signature of Faculty Supervisor

DPC Institute of Management
Signature of Director
DPC Institute of Management
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ACKNOWLEDGEMENT
Undertaking any project in life proves to be a milestone in more ways than

one. Its successful completion relies on a myriad people and their priceless
help.
I am deeply indebted to all who have inspired, guided and helped me in the
successful completion of the project. I owe debt of gratitude to them, who
were so generous with their valuable time and expertise.
I also acknowledge all the respondents who helped me without hesitation in

sharing their experiences out to learn the process. Through this
acknowledgement I express my sincere gratitude towards Mr. Asjad Usmani
and the director Mr. V.K.Khurana.
I would like to thanks DPCIM, which has incorporated the Winter project
program in the curriculum which has helped me learned some variable facts.
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TABLE OF CONTENTS
CONTENTS PAGE NUMBERS
1. INTRODUCTION 1 - 34
2. REVIEW OF LITERATURE 35 – 42
3. THE COMPANY 43 – 62
4. DATA PRESENTATION & ANALYSIS 63 -67
5. FINDINGS 68-69
6. CONCLUSIONS & RECOMMENDATIONS 70 - 72
7. BIBLIOGRAPHY 73
8. APPENDICES 74
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CHAPTER 1
1
INTRODUCTION
1.1 INTRODUCTION ABOUT BUSINESS STRATEGY AND TRAINING &

DEVELOPMENT
Business strategy is related to linking business with strategic management. It is a process

of relating an organization to its environment by formulation and implementation of
suitable strategy. It is a function of Human Resources of a corporation. All issues
associated with the management of resources should be derived issues. Strategically
speaking, these must flow from and be dependent upon organization’s corporate strategy.
Organizational effectiveness is achieved by ensuring a tight fit between business strategy
and HR of the organization.
Strategic business is the art and science of formulating, implementing and evaluating
cross-functional decisions that will enable an organization to achieve its objectives. It is
the process of specifying the organization's objectives, developing policies and plans to
achieve these objectives, and allocating resources to implement the policies and plans to
achieve the organization's objectives.
NHPC therefore uses business strategies which help in combining the activities of
the various functional areas of the business to achieve organizational objectives.
It is the highest level of managerial activity, usually formulated by the Board of directors
and performed by the organization's Chief Executive Officer (CEO) and executive team.
Strategic management thus provides overall direction to the enterprise.
2
Business strategy is a combination of three main processes:
1. Strategy formulation
2. Strategy implementation
3. Strategy evaluation
OBJECTIVES OF THE STUDY
1. To learn classroom theories through observation and practical

implementation.
2. To identify the business strategies used by NHPC.
3. To identify the need of business strategies and content of related training
programs.
4. To find out the relation of these strategies with the business strategies of
the corporation.
5. To analyze the efficiency of these business strategies and related training
programs.
6. To assess the benefits and result of the training programs.
3
METHODOLOGY
It is the method which we will be using to work on the project. It consists of a number of
steps which are to be followed to head towards the goal of achieving the objective of
project completion. The project title will be tried to understand its meaning with context
to NHPC Ltd. Then the project will be moved forward by completing various steps to
find out the results with the help of observation method and come up with a project
report. The steps which will be followed are as follows:
1. Analysis of the training and development programs and the subjects of these
programs of NHPC with the help of the corporation’s training calendar.
2. Observation method will be used to identify the business strategies which the
corporation uses in its business and the programs related to these strategies.
3. The programmes will be analyzed in detail and, and information like what are the
topics and areas that they cover, where they are conducted and for which level of
employees will be collected with the help of primary data.
4. What do these strategies mean in view of corporate business and how these are
related to NHPC? Secondary data will be collected by interacting with the
employees who are concerned with the business strategies.
5. Then finally it will be analyzed how these strategic training programs help the
employees and the corporation to achieve their goals and objectives.
4
RESULTS
This project will conclude towards the analysis of business strategies used by NHPC and
how the training programs related to these strategies help the organization.
Through this project we will try to conclude:
1) What are the training strategies used by NHPC.

2) How these strategies help the organization in achieving its objectives.
3) How the training calendar is designed.
4) Which training programmes are related to these strategies?
5) What topics these programs cover.
6) Impact of these training programmes on the employees as well as the
organization.
LIMITATIONS OF THE STUDY
With the completion of this project there are certain limitations which were faced while
carrying out the project. These are as follows:-
1) As the topic of the project is a new and upcoming, the primary data available was
very less.
2) Technical programmes were difficult to understand.
3) There was no provision for even a computer and internet for the students to do
work related to the project.
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BUSINESS STRATEGIES OF NHPC
TRAINING CALENDER
The Annual Training Schedule of NHPC for the year 2008-09 is published in the training
calendar of the organization. It contains diversified programmes integrated to build the
competencies of employees at work and empowering employees to excel in the area of
activities. The training calendar not only consists of training programmes and OD
interventions, planned to cater to the short term individual needs but organizational needs
as well.
TRAINING PROGRAMS IDENTIFIED AS PER BUSINESS STRATEGY
The training calendar of NHPC contains information about a number of programmes

based on various categories like Self Development, Leadership Development, Strategic
Development, Organizational Development, HR Management, Technical programmes
etc.
Among these training programmes, 25 programmes have been identified as related to the
business strategy of the organization. These are the strategic programmes.
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STRATEGIC ANALYSIS OF TRAINING PROGRAMMES
1. LEADERSHIP EXCELLENCE
Leadership excellence lies in understanding the significance of the interdependence

that exists between an organization and its dynamic socio-economic environment
and formulating strategies to manage the expectations of the key stakeholders
besides maintaining a competitive advantage.
PROGRAMME OBJECTIVE:
Hydro-power is one of the energy sources which oscillate between aspiration and
achievements. And to acquire those achievements, it is important for the individuals
and the organization to gain better insights and develop an intuitive understanding of
evolving perspectives, worldviews, visions and purposes. For this, NHPC has
designed leadership excellence programme to help the employees for a self-
discovery in the area of leadership and providing practical tools that can make them
more competent, more articulate, more creative, more inspirational and more
credible.
PROGRAMME COVERAGE:
The programme is scheduled to be held at IIM – K for the top level management of
the corporation. The programme is designed to explore leadership dimensions that
are result oriented, entrepreneurial, innovative, change and growth oriented besides
giving insightful inputs on competition, change, motivation/inspiration, pursuing
excellence, accommodating diversity, creating team spirit and coping with stress and
many other work-life issues based on a well researched content. It also aims to
provide insights, tips, tools, techniques and strategies for developing one’s own
leadership effectiveness.
1
PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:
The programme is a part of Leadership Development of the employees. It will help

the employees of NHPC to analyze their own performance with practical insights,
new cases and concepts and action steps so that they can develop a confident, self-
aware leadership style that is genuine and consistently influential in accordance with
their own capacities, personality, style and organization. The program helps the
managers
• To explore leadership dimensions that are responsible, responsive, result

oriented, entrepreneurial, innovative, change and growth oriented.
• To understand the art of pursuing excellence, leading change, accommodating

diversity, creating team spirit and coping with stress for increasing
performance capacity.
2. EVOLVING MANAGERS INTO LEADERS – A COMPETENCY
BASED APPROACH
Developing managers to help them become effective leaders is crucial to creating a

confident culture and driving forward organizational improvement. This programme
is a part of leadership development program and is scheduled at IMT – Ghaziabad
for the middle level employees. Mapping these competencies helps the corporation
in designing development interventions to enhance competence levels in areas where
organizational competence is not currently sufficient.
2
PROGRAMME COVERAGE:
The programme covers topics like Managers v/s Leaders, Developing Leadership
Model, Leadership Traits, Individual Competency Assessment and Development
Plan etc.
Leadership is not a position or designation. It is a way of thinking – a mind set.

Defining competences allows managers to grasp what is required to reach
improved levels of excellence and performance by providing a common
framework which articulates the skills, knowledge and attitudes relevant to
successful business practice.
The training programme helps in achieving an organizational excellence by

assessing the competency of executives of NHPC holding managerial positions
and helping them in developing their competencies in order to enhance their
individual and team performance to deliver excellence. The programme also helps in
improving an individual’s career prospects, as well as meeting organizational
succession planning needs.
3. MANAGING CHANGE
Globalization, technological developments and liberalization have thrown open

many challenges for the organization. With such changes, it is inevitable for
organizations in any sector to move ahead, without learning to cope with it.
3
To cope with a changing world, an employee must develop the capacity to

understand changes at the macro and micro level and the way the change would
affect his role, so that he could build the required competencies in a changing
environment. Training for leadership development of the employees covers all such
programs.
PROGRAMME COVERAGE:
The programme covers the Concept of Change, Changing Scenario, Organization

Diagnosis, Problem Identification, Change Implementation and handling Resistance
/ Fear to change.
NHPC uses change management strategy to overcome these problems and to fulfill
the demands. It is management's responsibility to detect trends in the
macroenvironment and microenvironment so as to identify changes and initiate
programs.
So, NHPC holds regular change management programmes, directs new and
improved policies and procedures and then implement them. The programme aims
to prepare the management and employees to accept change without pain and also
enable them to manage change in a better manner.
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4. MANAGING PERFORMANCE
Performance management is the activity of tracking performance against targets and

identifying opportunities for improvement - but not just looking back at past
performance. The focus of performance management is the future - what do you
need to be able to do and how can you do things better?
Managing performance is about managing for results. Every initiative or effort of

the management in an organization is either geared towards enhancing performance
or an outcome of performance. Performance of the employees is the core area of
concern for every organization and NHPC uses this programme because the
performance of the employees constitutes the performance of the organization.
PROGRAMME COVERAGE:
The programme on this topic aims to develop a working understanding of the

conditions affecting organizational performance. The programme will focus on
structures, systems, and processes that impinge on performance. It is for the
leadership development of the employees. It will also cover tools and techniques
involved in establishing performance criteria and measures for assessing actual
performance.
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Performance management helps the employees to focus on their goals and

objectives. NHPC trains its employees to find out their Key Result Areas (KRA) and
helps in improving their performance by comparing the desired performance with
the actual performance. Performance-based management helps the employees in
understanding:
• what they are aiming for

• what they have to do to meet their objectives
• how to measure progress towards the objectives
• how they can detect performance problems and remedy them.
5. CORPORATE GOVERNANCE
Corporate governance is the set of processes, customs, policies, laws and institutions affecting
the way corporation is directed, administered or controlled. Corporate governance also
includes the relationships among the many stakeholders involved and the goals for which the
corporation is governed. The principal stakeholders are the shareholders, management and the
board of directors. Other stakeholders include employees, suppliers, customers, banks and
other lenders, regulators, the environment and the community at large.
It is a system of structuring, operating and controlling a company with a view to achieve long
term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers,
and complying with the legal and regulatory requirements, apart from meeting environmental
and local community needs.
6
The training programme is held to enable the participants understand the perpetual change in
the organisational enviornment and ways to constantly adapt to meet the expectations of
various stakeholders. This programme is mostly for the middle level management and senior
executives.
PROGRAMME COVERAGE:
The programme covers the topics like : Meaning and Characteristics of Corporate
Governance, Evolution of Corporate Governance in the Indian and Global context,
Challenges in Corporate Governance, Implementing good Corporate Governance Practices
and Processes, Maximising value for Shareholders and other stakeholders by practising good
Corporate Governance, Sustaining good Corporate Governance practices with the changing
business scenario, Aligning the values of leaders to the organisation etc.
NHPC uses corporate governance as a strategy in their business as it ensures the

accountability of certain individuals in the organization through mechanisms that try to reduce
or eliminate the principle-agent problem. With the help of it the corporation can easily focus
on economic efficiency and shareholders welfare.
6. STRATEGIC LEADERSHIP FOR GLOBAL COMPETITIVENESS
An overall goal of improving global competitiveness is the imperative under which

managers strategically guide their organization. A global perspective consists of a global
mindset supported by appropriate skills and knowledge. Global mindset allows
meaningful global strategizing that requires managers to effectively integrate the three
global forces of - (a) global business, (b) regional/country pressures and (c) worldwide
functions.
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There is a growing need for managers to become global leaders with a global perspective.
To make its employees global leaders and to make them work in this world of
globalization, NHPC trains its employees for strategic leadership. The programme is held
at IIM – A for the higher level managers and directors of the corporation.
PROGRAMME COVERAGE:
The programme develops an insight about the topics like understanding the financial health of
business including the emerging issues of financial reporting. Strategic Cost Analysis,
Evolving Macro Economic environment including industrial, fiscal and trade policy
initiatives/direction and their implications, functioning of financial markets and their role in
resource mobilization, Leadership, Change Management and emerging organizational
HR Challenges, Effective managerial communication and negotiation skills, Corporate
Governance, Contract Management with particular emphasis on the legal aspects thereof.
This programme is aimed at enlightening executives with the importance of strategic

Leadership as an emergent priority to take on the present competitive business scenario.
The programme also enables the employees for developing Leadership traits essential for
facing immense challenges, incredible pressures to derive immediate results, maximum output
with least resources. The focus of the programme is on empowering the participants to be in a
position to develop strategies and implement them, keep them energized to deliver radical
performance improvement.
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7. STRATEGIC THINKING FOR BUSINESS LEADERSHIP
Strategy takes centre-stage in this new world. Designing innovative strategic moves is
very important for non-liner expansion and growth.
NHPC has develop a strategic thinking programme which is aimed at managers who are
currently in roles that require them to handle strategic issues or managers who are looking
to move into such roles.
The programme is held at IIM – K. The programme is particularly useful for senior level
managers and profit centre heads. Understanding of market rivalries, institutions and
power, leaderships and transformations is very important the corporation. It aims at
developing a strategic thinking mode and making employees understand how authority is
wielded and negotiated in multiple contexts, especially amidst great complexity in the
business scenario.
PROGRAMME COVERAGE:
The programme deals with discerning the strategic significance of few contemporary
developments such outsourced models of business, vigorous use of informatics, de-
layering of organizations and so on.
The programme covers the topics viz. Strategic Thinking: Simulating wars, Institutions
and Power, understanding competition, New marketing approaches: Customization,
individuated business solutions and the new consumer sovereignty, Electronic
marketplaces, auctions, intermediation, Property rights and strategies in knowledge
business.
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This programme will help NHPC to meet the future demands of electricity power in India
as it is designed to help leaders and individual contributors find the balance between
meeting today's expectations and requirements, while keeping an eye on future
opportunities, issues, and concerns that may affect business results tomorrow. The
programme emphasizes on looking at issues from a strategic perspective.
CORPORATE RESURGENCE AND GROWTH
The programme is aimed at enabling the participant discerning significant external

changes and translating those insights into strategies for comprehensive organizational
renewal so as to forge a competitive lead.
PROGRAMME COVERAGE:
The programme broadly covers the topics like Current global and Indian business
scenario, New trends in and sources of global competitiveness, Strategic options and
choices in the emerging business scenario, Reinventions: Doubts and Dilemmas,
Corporate entrepreneurship: Managing culture and processes, Leadership for corporate
entrepreneurship and reinvention, Organizational learning and knowledge management
and Harnessing intellectual property for competitive advantage etc.
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PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY
The accelerating pace of globalization and emerging identity of the country as a

significant economic power are opening unprecedented managerial opportunities and
challenges for Indian organizations. To keep pace with today’s globalize world, NHPC
has developed Corporate Resurgence and Growth programme which is to be held at IIM –
A. This program is a part of training for strategic development of the employees.
9. MANAGING CREATIVITY AND INNOVATION
The programme is aimed at developing a critical appreciation of concepts related to

creativity and management of creativity and innovation, assessing own creative potential,
and developing a personal agenda for overcoming these blocks.
PROGRAMME COVERAGE:
The programme deals with developing an appreciation among the participants about the
organizational context of creativity and innovation so that they can work towards making
the organization into creative workplaces which come out with innovation on a sustained
basis. The programme will cover topics like creative personality, creative process, creative
problem solving techniques, and creativity in the organizational context.
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Creativity and innovation are very important for a corporation like NHPC, because there
is a need for coming up with new projects and solve the problems prevailing in the
existing projects, if any. For this, NHPC has scheduled a programme which is a part of
strategic development for its middle level as well as top level employees at IIM – K.
10. STRATEGIC MANAGEMENT
Strategic management is the art and science of formulating, implementing and evaluating
cross-functional decisions that will enable an organization to achieve its objectives.
It is an ongoing process that assesses the business and the industries in which the
company is involved; assesses its competitors and sets goals and strategies to meet all
existing and potential competitors; and then reassesses each strategy regularly to
determine how it has been implemented and whether it has succeeded or needs
replacement by a new strategy to meet changed circumstances, new technology, new
competitors, a new economic environment., or a new social, financial, or political
environment.
It is aimed to provide overall direction to the enterprise. Strategic management will help
NHPC in combining the activities of the various functional areas of the business to
achieve organizational objectives.
PROGRAMME COVERAGE:
The programme is designed to clarify why individuals need to develop strategic thinking
skills, map out a personal strategic initiative that will add value and derive results,
generate interest in and commitment to living and working more strategically prepare to
face uncertainty and manage change better, setting financial and strategic objectives
implementing and executing strategy , eveluating and correcting.
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Strategic management has helped NHPC in:
• specifying the organization's objectives,

• developing policies and plans to achieve these objectives, and
• allocating resources to implement the policies and plans to achieve the
organization's objectives.
11. CORPORATE VISION AND MISSION
The vision and mission statements are the touchstone for every activity / project NHPC
undertakes right from planning to implementation and goes beyond with the continous
performance evaluation. These two statements are important guidelines for the concrete
identification of future plans and procedures.
The programme is designed for the lower level employees of the corporation to make
them aware of the mission and vision of the company. It deals with the organizational
development. Once the vision and mission are written and conveyed, the rest of the
business activities certainlyhave a direction and guidelines to move ahead.
Vision of NHPC: A world class, diversified & transnational organization for sustainable
development of hydro power and water resources with strong environment conscience.
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Mission of NHPC:
• To achieve international standards of excellence in all aspects of hydro power and

diversified business.
• To execute and operate projects in a cost effective, environment friendly and
socio-economically responsive manner.
• To foster competent trained and multi-disciplinary human capital.
• To continually develop state-of-the-art technologies thru innovative R&D and
adopt best practices.
• To adopt the best practices of corporate governance and institutionalize value
based management for a strong corporate identity.
• To maximize creation of wealth through generation of internal funds and effective
management of resources.
PROGRAMME COVERAGE:
The programme aims to make participants well versed with organizational Mission and
Vision so as to institutionalize the concept of Mission /Vision statements in their
performance. The programme also deals with the concept of Mission and Vision, crafting
Mission/Vision Statement Purpose etc.
12. DEVELOPING POSITIVE WORK CULTURE
Work culture isn’t something one can define. It is intangible: a state of mind, a feeling, a
collective consciousness that's infused in a business and its employees. NHPC conducts
various programmes for its employees to understand and develop a positive work culture.
14
PROGRAMME COVERAGE:
Organizational development programmes are very important. This programme aims at

developing awareness amongst the employees with the key factors influencing work
culture in the organization and to develop skills and values for developing work culture.
The programme also includes the analysis of relationship between work culture and
performance of department/organization.
The employees of a company are its greatest assets, and when business experiences a
growth surge, a united front of employees is needed that supports your company's efforts
in mind, body and spirit. The programme helps the employees in understanding:
• Work Related Behavior and Components of Work Culture,

• Tools for Developing Work Culture,
• Leadership and Team Building Skills,
• Work Culture and Higher performance,
• Managerial effectiveness and Developing Positive Work Culture not only at
Departmental level but at ogranizational level also.
13.BUSINESS PROCESS RE-ENGINEERING
Reengineering is radical redesign of an organization's processes especially its business

processes. Rather than organizing a firm into functional specialties (like production,
accounting, marketing, etc.) and looking at the tasks that each function performs, we
should, according to the reengineering theory, be looking at complete processes from
materials acquisition, to production, to marketing and distribution. The firm should be re-
engineered into a series of processes.
15
NHPC has initiated the Business Process Re-engineering exercise to study the various
processes operating in the corporation and redefine them to improve the efficiency either
by suitably modifying them with an ultimate aim of adding value to each and every
activity /process. It is a part of organizational training programme. The programme is
aimed at developing an orientation and awareness about the BPR exercise so as to achieve
better results and make the BPR successful.
PROGRAMME COVERAGE:
The orientation would cover Business Process Re-engineering Methodology, business

modeling and analysis techniques through the use of practical exercises and detailed case
studies in addition to lectures. Business Process Re-engineering Methodology Overview,
Assessment Phase, Re-engineering phase, change and implementation phase,
methodology and techniques necessary to implement a business re-engineering project.
Business process reengineering (BPR) is a management approach aiming at improvements

by means of elevating efficiency and effectiveness of the processes that exist within and
across organizations. The key to BPR is for organizations to look at their business
processes from a "clean slate" perspective and determine how they can best construct
these processes to improve how they conduct business. NHPC has been able to redesign
its processes with the help of ERNST & YOUNG consultancy.
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14. PROJECT MANAGEMENT WITH EMPHASIS UPON
INVESTIGATIONAN AND IMPLEMENTATION PLANNING
For project management, planning and implementation is a difficult and most important
task, NHPC conducts this programme to make its employees understand the projects. It is
a part of cross-functional development of the organization. It is for lower level and middle
level employees.
PROGRAMME COVERAGE:
This programme will cover the topics like Types of Investigation (Desk study, Field study
), Scope of Investigations, Hydrology investigation, Topography investigation, Geological
investigation, Constructional Material investigation, Enviornmental investigation, Power
Potential Studies , Technical investigation, Preliminary investigation, Detailed
investigations, Nature of investigation, Techniques applied, Time schedule, Financial
Implementation, Stages of Investigation, Feasibility Stage, DPR Stage, clearences,
Evaluation and Appraisal stage.
Hydro power project management is complex task and becoming increasingly challenging
in the present competitive enviornment. It requires critical understanding of stages
involved in investigation of a project and planning for implementation. For this the
corporation conduts a programme on project planning and implementation.
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15. R &R POLICY AND CONCERNED ISSUES
NHPC makes every effort towards socio-economic upliftment of the affected people
thereby improving their quality of life. The corporation develops programs related to
Resettlement & Rehabilitation which helps in understanding the problems faced by people
who are displaced from the area of project and how to solve these problems.
The basic law which has guided the Resettlement & Rehabilitation (R&R) of the
displaced people has been the Land Acquisition Act of 1894 whereby the Government is
empowered to acquire any land for “public purpose” and to pay cash compensation. As a
part of environmental clearance process, along with the EIA & EMP reports, Resettlement
and Rehabilitation (R&R) package for Project Affected Families (PAFs) is also assessed
and approved by the Expert Appraisal Committee (EAC) of Ministry of Environment &
Forests (MOEF).
PROGRAMME COVERAGE:
The programme deliberates detailed discussions on Resettlement & Rehabiliation Policy

of NHPC. It also discusses the methods and techniques for undertaking the surveys in the
Project area to know the socio-economic aspects, ethno-cultural and religious beliefs of
PAP.
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In the rapid pursuit for hydro development, the biggest challenge is to safeguard the
interests of Project Affected Persons (PAPs). Though NHPC has been putting sincere and
conscious efforts in his regard but it is the area where always improvements can be made
with the changing socio-cultural norms, priorities of the society, religious values etc. It is
for the cross-functional development of the organization.
16. MANAGING HUMAN RELATIONS IN ORGANIZATION
Human Behavior is very unpredictable and for the effective and efficient working of a
company, the management of human relations is very important. The corporation has
developed a programme to improve the personality and skills of its employees. The
programme provides a thorough understanding of the various aspects of human behavior.
The programme also highlights the techniques for building organization through the
process of people development.
PROGRAMME COVERAGE:
It deals with interpersonal skills, Relationship Building, Personality assessment,

Personality type, Transactional Analysis, maintaining sound industrial relation by
trengthening interpersonal relationships amongst the employees etc.
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17. STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic Human Resource Management (HRM) is a process of linking HRM with corporate
strategic management. Corporate strategic management is a process of relating an
organization to its environment by formulation and implementation of suitable strategy. It is a
functional development program. It is important for NHPC to use strategic HRM in its
business so as to gain the skills and abilities and train its employees to attain its goals and
objectives.
PROGRAMME COVERAGE:
The programme will cover the topics like aligning HR strategies with organizations vision
and objectives, strategic HRM, emerging challenges HR planning with emphasis upon
Training and Development, performance management leveraging human potential ,
competency management, management of change and case studies.
This programme is developed for lower level and middle level employees. The programme is
aimed at enabling the participants in acquiring/developing skills abilities needed to meet the
requirements as per organizational objectives by adapting appropriate HR strategies. The
programme would also help in developing advanced capabilities among HR
professionals so as to make them enable to effectively execute leadership roles in NHPC
and synergize HR strategy with overall Business Strategy.
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18. EFFECTIVE HR TRAINING AND DEVELOPMENT
Training is a process of learning a programmed behavior and development is the overall

development of the competency of managerial personnel in the light of present as well as
future requirement. This programme is initiated by the corporation as it will help in:
• Increase in efficiency
• Increase in morale of employees
• Better human relations
• Reduced supervision
• Increased organizational viability and flexibility
PROGRAMME COVERAGE:
The programme covers topics related to importance of training and development, steps
involved in training and development process, training need identification and analysis,
design and conductance of training program, training evaluation methods, impact assessment
exercise etc.
NHPC needs training and development for its employees to maintain the match between
employee’s capability and their job requirements in terms of knowledge, skills and attitudes.
A programme is developed to find out the needs of training and development of the
employees. The programme aims to upgrade the training capabilities of the participants
through exposure to new and emerging concepts, techniques and methodologies of Human
Resource Training and Development.
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19. CERC NORMS / GRID CODE FOR THE OPERATION OF HYDRO
PLANT
Reforms in Indian power sector and consequent competition have changed the tariff structure.
CERC stipulates some norms for disciplining the grid users and knowledge of CERC norms is
essential for increasing revenue through Electricity generation. A technical programme is
conducted by NHPC to design a blueprint for power generation and its further supply. This
program would provide an overall perspective of the electricity tariff structure and market
mechanism, the monetary mechanism for disciplined generation etc. Methodology includes
class room lectures, case studies, Question-answer sessions, pre-training and post-training
evaluation.
PROGRAMME COVERAGE:
The programme covers the topics like introduction of CERC regulations, Electricity Act
2003, concept of availability based tariff for all type of Hydro Power Stations, tariff
regulations, tariff fixation as per the norms of CERC, procedure for making/filling
petition in CERC, terminologies used for making petition, commercial aspects for the
operation of hydro plants, role of other agencies in commercial aspects for the operation of
hydro plants etc.
20. PROJECT MANAGEMENT FOR RIVER VALLEY PROJECTS
Management of river valley concept is a new concept that one organization will
manage entire projects in river valley.
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Project management programme is a technical program and is very important for NHPC, as
the organization has to take care of a number of projects or all projects in a river valley at
different geographical areas.
It is a very challenging task as the managers need to be versatile so that they are able to
understand the project properly and work collectively to achieve the goals and objectives of
the organization.
NHPC has developed this programme on project management for its engineers and middle
level employees. It helps them in understanding the various issues related with the projects
and solve them with the help of new tools and techniques.
PROGRAMME COVERAGE:
This programme enables participants to understand the different aspects involved in

management of river valley projects in different geographic entities. The programme will also
enlighten the participants with the infrastructure and logistics requirements for new projects
considering environmental, financial, contractual, construction, technological and geological
aspects.
The project is linked with NHPC strategy in terms of its expansion through understanding
new projects. Program is specifically aimed at developing an understanding about the
difference between a normal HE project and a River Valley Project. Conductance of this
programme / inclusion of the programme in the training calendar exemplify NHPC’s
commitment for developing an aptitude amongst the employees before taking new initiative.
Clear-cut understanding of a river valley project eases out the process of putting up DPR as
per the requirements and thus results into effective and timely execution of the project.
23
21. MEGA POWER POLICY
Central Government extends various incentives to Mega Power Projects. This program aims
to update knowledge of special benefits in taxation, import and export duties for mega
projects.
PROGRAMME COVERAGE:
The programme includes the topics like tax benefit extended to Mega Power Plants,
applicability of import & export duties, sales tax, applicability of service tax and entry tax.
The programme is a newly identified programme keeping in view the future strategy of
NHPC and upcoming challenges due to changes in the government plans and procedures. The
programme is tailormade and aimed at understanding the incentives available to Mega Power
Project. In future, if NHPC plans to go for some mega power project then the understanding
developed through this programme would play a vital role.
The programme exemplifies the mitigate planning or long term planning of NHPC
management keeping in view the market trends and developing the competencies of the
employees accordingly.
22. DEEMED EXPORT BENEFIT IN CONTEXT OF HYDRO POWER

PROJECT AND TAXATION
Globalization and liberalization has opened up the hydroelectric power industry also. Since
hydro power projects are situated all over the world, new tools and techniques are being used.
Now agencies involved and equipments available are from all over the world.
24
To deal with global players to the benefit of organization is very important to know the rules
related to taxation. For this NHPC develops this technical programme which helps in solving
the financial matters and dealings with global players.
PROGRAMME COVERAGE:
The programme includes topics like applicability of import and export duties to hydro power
projects (except mega projects), applicability of sales tax, applicability of service tax etc.
NHPC has been importing the equipments / technology from the equipment manufacturing
companies located in foreign countries so as to utilize best available technology in the global
market for generation of power and thus to meet the peeping power demand to the maximum
possible extent. The important issue involved in this process is of taxation.
Presently for understanding the involved technical problems NHPC used to take the services
of some consultants which on the one side calls for too much expenditure and on the other
side results into delay in the process.
The programme is a newly taken initiative as part of the business strategy which is aimed at
growing its own employees with proper training and thus converting them into an asset for the
corporation. Through this one time expenditure, a lot of expenditure can be saved and it will
also result into fastening the process.
25
23. INDUCTION-CUM ORIENTATION PROGRAMME
Induction training is more than the skills training, different from regular training. Induction is
a technique by which a new employee is rehabilitated into the changed surroundings and
introduced to the practices, policies, and purposes of the organization.
An induction cum orientation programme is held regularly for newly recruited employees in
the organization. The programme is designed to address questions coming into the minds of
newly recruited employees. During the program, participants are exposed to the key
functions, work-culture, mission, goals and objectives of the corporation, roles and
responsibilities, facilities in NHPC.
PROGRAMME COVERAGE:
Participants are imparted with training on soft skills development, wellness issues, human
values, health issues, emerging concepts in present business scenario etc. Participants are also
provided with exclusive training for two weeks on various subjects pertaining to their
respective discipline. With a view to enable the participants in acquiring varied learning
experience about the project features, their operation and work life, participants are taken to
one or two power station/project of NHPC.
Induction training is absolutely vital for newly recruited employees. Good induction training
ensures quick adjustment with the new working atmosphere and acceptance to a productive
role. Newly recruited employees also need to understand the organization’s mission, goals,
values, philosophy and of course the job responsibilities they are required to perform.
26
24. SKILLING AND MULTI SKILLING TRAINING
The programme aims at providing skills and training for the workmen in the unskilled cadre
with an aim of effective utilization of existing manpower. The training is to be conducted at
Industrial Training Institute (ITI), Patiala and Nangal as part of MOU signed between NHPC
and Deptt. of Technical Education & Industrial Training, Govt. of Punjab for providing
Skilling/Multi skilling Training for NHPC Employees.
25. ERP AWARENESS CUM ORIENTATION PROGRAM

Enterprise resource planning (ERP) systems that attempt to integrate several data sources and
processes of an organization into a unified system. A typical ERP system will use multiple
components of computer software and hardware to achieve the integration. A key ingredient
of most ERP systems is the use of a unified database to store data for the various system
modules.
Enterprise Resource Planning (ERP) has become more or less an industrial standard in NHPC.
This program is related with information technology. It helps in reducing costs and
increasing productivity. Given the dynamics and complexity of environment, a system is
needed that is capable of not only efficiently providing information for decision making but
also effectively integrating all systems in the organization. The features of ERP like
accommodating variety, integrated management information, supply chain management and
resource management has helped NHPC in:
• Increase in productivity
• Reduced quality costs
• Improved resource utilization
• Improved information accuracy
27
PROGRAMME COVERAGE:
The programme is meant to cover the basics of ERP, ERP benefits and reality check, ERP
lifecycle, possible causes of failure, change management, ERP in NHPC.
Project Kiran - the ambitious ERP initiative of NHPC is being implemented in line with the
best practices in the industry. ERP, contrary to the popular belief of being an IT- initiative, is
actually an organization wide initiative, which depends upon the active participation of all the
major business functions of a company.
Training is a process of learning a sequence of programmed behavior. It is concerned with

imparting and developing specific skills for a particular purpose. Development refers to the
nature and direction of change induced in employees particularly managerial personnel.
There are many different training and development methods. On-the-job training, informal
training, classroom training, internal training courses, external training courses, on-the-job
coaching, life-coaching, mentoring, training assignments and tasks, skills training, product
training, technical training, behavioral development training, role playing and role-play
games and exercises, attitudinal training and development, accredited training and learning,
distance learning - all part of the training menu, available to use and apply according to
individual training needs and organizational training needs.
Designing a training and development programme involves a sequence of steps that can be
grouped into five phases: needs assessment, instructional objectives, design, implementation
and evaluation.
28
To be effective and efficient, all training programmes must start with a needs assessment.
Long before any actual training occurs, the training manager needs to determine the who,
what, when, where, why and how of training. For this, the training manager analyzes as much
information as possible about the following:
Organization and its goals and objectives.
Jobs and related tasks that need to be learned.
Competencies and skills that are needed to perform the job.
Individuals who are to be trained.
Training Process Ideas and Outline Process
5. Design
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agree training or learning
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requirement Look also at The
Involve the into personality Kirkpatrick Presentation is
people in manageable types. model an important
identifying elements. Remember especially aspect to
and agreeing you are helps you to delivery.
relevant Attach dealing with structure
29
aligned standards or people, not training See also
training. measures or objects. design. running
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helps identify scale.
development
needs.
30
Need Assessment
The first step in designing a training and development programme is to conduct a
need assessment. The assessment begins with a "need" which can be identified in
several ways but is generally described as a gap between what is currently in place
and what is needed, now and in the future. Gaps can include
discrepancies/differences between:
• What the organization expects to happen and what actually happens.
• Current and desired job performance.
• Existing and desired competencies and skills.
Need assessment can also be used to assist with:
• Competencies and performance of work teams.
• Problem solving or productivity issues.
• The need to prepare for and respond to future changes in the organization or
job duties.
Once the needs assessment is completed and training objectives are clearly
identified, the design phase of the training and development process is initiated:
• Select the internal or external person or resource to design and develop the
training.
• Select and design the program content.
• Select the techniques used to facilitate learning (lecture, role play,

simulation, etc.).
• Select the appropriate setting (on the job, classroom, etc.).
• Select the materials to be used in delivering the training (work books, videos,
etc.).
31
• Identify and train instructors (if internal)
After completing the design phase, the training is ready for implementation:
• Schedule classes, facilities and participants.
• Schedule instructors to teach.
• Prepare materials and deliver them to scheduled locations.
• Conduct the training.
The final phase in the training and development programme is evaluation of the
program to determine whether the training objectives were met. The evaluation
process includes determining participant reaction to the training programme, how
much participants learned and how well the participants transfer the training back on
the job. The information gathered from the training evaluation is then included in the
next cycle of training needs assessment. It is important to note that the training needs
assessment, training objectives, design, and implementation and evaluation process
is a continual process for the organization.
OBJECTIVES OF THE STUDY
¾ For the partial fulfillment of the degree of MBA.

¾ To learn classroom theories through observation and practical
implementation.
¾ To develop a practical understanding about Training and
Development Activities.
¾ To identify the business strategies used by NHPC.
¾ To identify the Training and other HRD Interventions for
considering business strategies of NHPC.
32
¾ To find out the relation of these Training Interventions with the
business strategies of the corporation.
¾ To analyze the efficiency of these training programmes in view of
the Business Strategy of NHPC.
¾ To assess the benefits and result of the training programs.
¾ For detailed learning about the topic.
METHODOLOGY
It is the method which we will be using to work on the project. It consists of a

number of steps which are to be followed to head towards the goal of achieving the
objective of project completion.
The project title will be tried to understand its meaning with context to NHPC Ltd.
Then the project will be moved forward by completing various steps to find out the
results with the help of observation method and come up with a project report. The
steps which will be followed are as follows:
¾ Analysis of the training and development programs and the subjects

of these programs of NHPC with the help of the corporation’s
training calendar.
¾ Observation method will be used to identify the business strategies
which the corporation uses in its business and the programs related
to these strategies.
¾ The programmes will be analyzed in detail and, and information like
what are the topics and areas that they cover, where they are
conducted and for which level of employees will be collected with
the help of primary data.
33
¾ What do these strategies mean in view of corporate business and how
these are related to NHPC? Secondary data will be collected by
interacting with the employees who are concerned with the business
strategies.
¾ Then finally it will be analyzed how these strategic training programs
help the employees and the corporation to achieve their goals and
objectives.
RESULTS
This project will conclude towards the analysis of business strategies used by NHPC
and how the training programs related to these strategies help the organization.
Through this project we will try to conclude:
¾ What are the training strategies used by NHPC.
¾ How these strategies help the organization in achieving its objectives.
¾ How the training calendar is designed.
¾ Which training programmes are related to these strategies?
¾ What topics these programs cover.
¾ Impact of these training programmes on the employees as well as the

organization.
34
CHAPTER 2
35
CRITICAL REVIEW OF LITERATURE
2.1 TNA AND T&D PROCESS IN NHPC
TNA AND FINALISING OF TRAINING CALENDER
The training need assessment is a critical activity for the T&D department of NHPC
as according to these needs only, training calendar is developed. The need for
training and development arises to maintain the match between employee’s
capability and their job requirements and organizational goals and objectives.
Designing and finalizing the training calendar addresses the following questions and
issues:
• Are all the gaps between employees and job requirements to be filled
through T&D programmes?
• Should T&D needs assessment cover all employees at all levels or should it
be restricted to few groups of employees?
• Should T&D need assessment take only present requirements or future
requirements too?
• What model of T&D needs assessment should be applied?
• From where and how relevant information will be collected.
• Who will be responsible for collecting information, analyzing it and
reporting its results?
For finding out solution to all such issues, the T&D department of NHPC works
through a number of steps. These steps also help in the identification of training
36
needs because it provides the basis on which all other training activities can be
considered and to differentiate between the need for training and organizational
issues and bring about a match between individual aspirations and organizational
goals. These steps are:
Individual Training Needs Analysis:
It analyzes how well the individual employee is doing the job and determines which
employees need training and of what kind. The focus is on the individual employee,
his abilities, his skills, and the inputs required for job performance, or individual
growth and development in terms of career planning. Major sources of information
for individual analysis are: performance evolution, performance problems,
observation at the workplace, interviews with his superiors and peers, personal
records, production records, questionnaires, attitude survey, checklist etc.
Business Plan of NHPC:
Assessing the business plan looks at the effectiveness of the organization and
determines where training is needed and under what conditions it will be conducted.
It involves a detailed analysis of the organization structure, objectives, HR and
future plans.
The starting point of assessing the business plan is the identification of the long term
objectives and defining the operational objectives of the organization. With the help
of business plan, the HR manager can anticipate if there are any training inputs that
can help in achieving organizational objectives.
37
Such information can be collected from: organizational goals and objectives,
mission statements, strategic plans, staffing inventory, succession planning, long and
short term staffing needs, skills inventory, analysis of efficiency indices, changes in
equipment, technology or automation, annual report, plans for reorganization or job
restructuring, planning systems etc.
Recommendation of HOD’s:
Before finalizing anything regarding the T&D programme, it is very important to
show the plans to the head of the department. Their recommendation and
suggestions are necessary, as HOD’s are more experienced people and know the
goals and objectives of the organization better. They tell about the alterations to be
made, if any and how to plan out the training schedule.
Technical Upgradation:
For the attainment of the challenging goals and objectives advancements and
upgradation in the training programmes is necessary. In this world of changes and
transition, it is important that new tools and techniques are used in the training
process so as to make the employees learn and understand better.
The trainees as well as the trainers must become more dedicated to the training
process. The trainer’s ability to teach must be regularly assessed. By making trainees
more focused on their learning, they will be better able to integrate technological
improvements into their procedures in the future. The HR manager decides what
should be the tools and techniques to be used for training like classroom learning, on
the job training, simulation techniques, lectures, role play etc.
38
Organizational Development Intervention:
Organization Development is a process decision which NHPC makes to actively

give shape and direction to the organization. In this the managers establishes
objective criteria for the outputs of the organization's goal-setting processes. Then
they hold people accountable not only for stating goals against those criteria but also
for producing the desired results.
This is actually a set of interventions that managers plan with in order to

"acculturate" everyone in the organization into an agreed-upon vision, mission,
purpose, and values. The interventions might include training, goal setting,
organizational survey-feedback, communications planning, etc. It is done by
developing reliable, valid questionnaires, collecting data from all personnel,
analyzing it for trends, and feeding the results back to everyone for action planning.
Career Development Initiative:
Career Development and Training are two related processes that increase the
capacity of employees to contribute to the organization’s mission. The challenge is
to continually find ways to invest in the development of the employees while
balancing the requirements of current work.
Career development is a part of the training process by which employees

strategically explore, plan, and create their future at work by designing a personal
learning plan to achieve their potential and fulfill the organization’s mission
requirements. It also helps in sustaining a vital and effective workforce through
strategic succession planning. Career Development involves continual learning,
seeking opportunities, taking risks, and finding ways to contribute to the
organization in a productive and motivated manner which helps in completing the
main motive of training in NHPC.
39
Following all such steps, the need assessment for training is completed by the
manager. The results of this needs assessment allows the training manager of NHPC
to set the training objectives by answering two very basic questions: who, if anyone,
needs training and what training is needed. Once the needs assessment is completed
and training objectives are clearly identified, the design phase of the training and
development process is initiated:
• Select the internal or external person or resource to design and develop the
training.
• Select and design the program content.
• Select the techniques used to facilitate learning (lecture, role play,

simulation, etc.).
• Select the appropriate setting (on the job, classroom, etc.).
• Select the materials to be used in delivering the training (work books, videos,
etc.).
• Identify and train instructors (if internal).
After completing the design phase, the training calendar is ready and the training is
ready for implementation:
• Schedule classes, facilities and participants.
• Schedule instructors to teach.
• Prepare materials and deliver them to scheduled locations.
• Conduct the training.
40
TRAINING AND DEVELOPMENT IN NHPC
NHPC strongly believes that the very essence of the success and excellence for an
organization lies in its Human Resources. To sustain and nourish the employee’s
potential in a continual manner Training has been viewed as a very crucial and most
important instrument so as to transform them as an asset for the corporation. NHPC
is investing heavily in fostering and developing internal talent through multi-
pronged Leadership Development Programmes.
The NHPC training and HRD policy, formulated in line with the National Training
Policy for Power Sector is implemented across NHPC. Strategic alliance has been
established with leading educational institutions of the country of offering latest and
the best know-how education in the field of management and engineering like IIM-
Ahemdabad, IIM-Lucknow, IIM-Kolkata, ASCI-Hyedrabad, IMT-Ghaziabad,
NIFM-Faridabad, AIMA, MDI-Gurgaon, ESCI-Hyedrabad, IIT-Roorkee, IIT-Delhi
etc.
Interface with market leaders on the prevailing trends and upcoming concepts in
power sector has been established with ABB, AREVA (T&D), ALSTOM, VA,
Tech, BHEL, Siemens etc. with an aim of effective utilization of existing manpower
in workmen cadre skilling / multi skilling training in various trades has been planned
and initiated in coordination with Deptt. Of Technical Education & Industrial
Training, Govt. of Punjab.
Organization wide climate survey has been carried out to assess, analyze and
evaluate the existing policies and procedures of the corporation in line with the
expectations and aspirations of the employees at all levels posted across NHPC. The
survey report has been submitted and based upon the recommendations made in the
report, training and organizational development programmes have been identified
and incorporated in the Training Calendar for the year 2008-09.
41
The competency mapping exercise has been completed for ED’s and GM’s in view
of the identified organizational competencies as per the future plans of NHPC,
present business scenario, and competition in power sector. Competency
Development Plan has been worked out. Based upon the competency development
plan suggested by the consultants, ED’s and GM’s are being nominated in the
training programs accordingly. In the second phase the complete plan has been lined
up for initiating the Competency Mapping Exercise for the executives in the training
calendar for the year 2008-09.
Employees are being regularly nominated in different programs conducted in

different parts of India as well as in foreign countries with a view to develop their
aptitude and skills in global perspective. Besides this employees are also nominated
to attend the training programs conducted in India and abroad under Transfer of
Technology (TOT) agreement with the Equipment Manufacturing Companies
(EMC).
Employees have been imparted cross functional training for developing a better
understanding of the functioning of other departments so that improved line of
coordination among different departments may be established and multi skilled task
force is developed. Programs like HR for line managers, Finance for non finance,
Technical Appreciation program for Hr and Finance executives Management
Development program to various levels of executives of all disciplines bear
testimony of this fact.
42
CHAPTER 3
43
THE COMPANY
3.1 BRIEF HISTORY ABOUT “ NHPC ”
NHPC Limited (Formerly known as National Hydroelectric Power

Corporation Ltd.), A Govt. of India Enterprise, was incorporated in the year 1975
with an authorized capital of Rs. 2000 million and with an objective to plan,
promote and organize an integrated and efficient development of hydroelectric
power in all aspects. Later on NHPC Limited expanded its objects to include other
sources of energy like Geothermal, Tidal, and Wind etc.
At present, NHPC Limited is a schedule 'A' Enterprise of the Govt. of India with
an authorized share capital of Rs. 1,50,000 Million . With an investment base of
over Rs. 2, 54,000 Million Approx., NHPC Limited is among the TOP TEN
companies in the country in terms of investment.
Initially, on incorporation, NHPC Limited took over the execution of Salal Stage-I,
Bairasiul and Loktak Hydro-electric Projects from Central Hydroelectric Project
Construction and Control Board. Since then, it has executed 14 projects with an
installed capacity of 5175 MW on ownership basis including projects taken up in
joint venture. NHPC Limited has also executed 5 projects with an installed capacity
of 89.35 MW on turnkey basis. Two of these projects have been commissioned in
neighboring countries i.e. Nepal and Bhutan.
44
CORPORATE VISION
A world class, diversified & transnational organization for sustainable development

of hydro power and water resources with strong environment conscience.
MISSION
To achieve international standards of excellence in all aspects of hydropower

and diversified business.
To execute and operate projects in a cost effective, environment friendly and

socio-economically responsive manner.
To foster competent trained and multi-disciplinary human capital.
To continually develop state-of-the-art technologies thru innovative R&D

and adopt best practices.
To adopt the best practices of corporate governance and institutionalize value

based management for a strong corporate identity.
To maximize creation of wealth through generation of internal funds and

effective management of resources.
45
OBJECTIVES
Development of vast hydro potential at faster pace and optimum cost

eliminating time and cost over-run.
Completion of all on-going projects within stipulated period.
Ensure maximum utilization of installed capacity and help in better system

stability
Generation of sufficient internal resources for expansion and setting up new

projects.
Corporate development along with simultaneous Human Resource

Development
46
PROFILE
Authorised Capital Rs. 1,50,000 Million
Rs. 2,54,000 Million

Value of Assets
Approx.
Rs. 111,982 Million
Paid Up Capital
31.03.2007
Projects Completed 14 Nos. (5175 MW)
Projects Under Construction 11 Nos. (4622 MW)
Projects Awaiting Clearances 8 Nos. (5751 MW)
Projects Under Survey and Investigation Stage 11 Nos. (7585 MW)
Joint Venture Projects 3 Nos. (1586 MW)
Projects on Turnkey Basis 5 Nos. (89.35 MW)
In 2007-2008
Energy Generated (Including Deemed

14811.35 MU
Generation)
Capacity Index 96.13%
Sales Turnover 23110 Million
Net Profit 10020.6 Million
Performance Rating "Very Good"
In 2006-2007

13048.76 MU
Generation)
47
Net Profit 9248 Million
Performance Rating "Excellent"
In 2005-2006

12567.15 MU
Generation)
Net Profit 7427 Million
In 2004-2005

11286.43 MU
Generation)
Capacity Index 95.28 %
Net Profit 6845.8 Million
48
LOCATIONS OF NHPC
49
GENERATION
During the period 2006-2007 , NHPC Limited had a sales turnover of 19630 Million
with a Net Profit of 9248 Million.
Sales vs Profit
50
Presently NHPC Limited is engaged in the construction of 11 projects aggregating
to a total installed capacity of 4622 MW. NHPC Limited has added 1970 MW
during the 10th Plan period and planned to add 5322 MW during 11th Plan period.
8 projects of 5751 MW are awaiting clearances/Govt. approval for their
implementation. Detailed Projects report are being prepared for 11 projects of
7585 MW.
Since its inception in 1975, NHPC Limited has grown to become one of the largest
organisation in the field of hydro power development in the country. With its present
capabilities, NHPC Limited can undertake all activities from concept to
commissioning of Hydroelectric Projects.
PERFORMANCE REVIEW 2007-08
* NHPC has been conferred Mini Ratna status by the Government of India.
* Name of the Company has been changed from National Hydroelectric
Power Corporation Ltd. To NHPC Limited.
* Crossed profit figure of Rs. 1000 crore and installed capacity of 5000 MW.
Registered a net Profit of Rs. 1,002 crore against Rs. 925 crore during the
previous financial year.
* Poised to pay highest ever dividend.
* Achieved an all time high sales turnover of Rs. 2,311 crore as against
Rs.1,963 crore during the previous year.
* Achieved 100% revenue realization of Rs. 2270 crore
51
* Enjoys highest credit rating i.e. AAA for domestic borrowings and rating
equivalent to Sovereign rating for external borrowings from reputed
International rating agencies.
* Commissioned three projects namely the 520 MW Omkareshwar (JV) in

Madhya Pradesh, 390 MW Dul Hasti in J&K and 510 MW Teesta Stage-V in
Sikkim.
* Generated 14811.35 Million Units electricity against 13048.74 Million

Units generated during previous corresponding year, thereby registering an
increase of 13.5 %.
* The Power Stations achieved a Capacity Index of 96.13 % against the

MoU target of 94.50 %.
* Implementing India’s largest hydroelectric project, the 2000 MW Subansiri

Lower Project in Arunachal Pradesh.
* Plans to become 10000 MW plus company by 11th Plan.
* Revised MoA signed with Govt. of Arunachal Pradesh for implementation

of 3000 MW Dibang Multipurpose Project, 750 MW Tawang-I Project and
750 MW Tawang-II Project by NHPC.
* Recommendation of PIB for Govt. sanction and TEC of CEA obtained for
the 3000 MW Dibang Multipurpose Project. Dr. Manmohan Singh, Hon’ble
Prime Minister of India laid the foundation stone of the Project on 31.1.2008.
52
* Govt. sanction accorded for the 330 MW Kishanganga Project in Jammu &
Kashmir.
* DPR of the 520MW Teesta Stage-IV Project in Sikkim submitted to CEA
for accord of TEC.
* PIB has recommended the 530 MW Kotli Bhel-II Project in Uttarakhand

for Govt. sanction. Environment clearance has also been accorded by
Ministry of Environment and Forest for the Project.
* MoU signed with Govt. of Manipur for implementation of 66 MW Loktak

Downstream Project by NHPC in Joint Venture with Govt. of Manipur.
Ministry of Environment and Forest has accorded pre-construction activities
on the project.
* Environment clearance has been accorded by Ministry of Environment and

Forest for 195 MW Kotli Bhel-1A, 320 MW Kotli Bhel-1B, 120 MW Vyasi
Projects, all in Uttarakhand and 1000 MW Pakal Dul Project in Jammu &
Kashmir.
* Implementing Enterprise Resource Planning (ERP) of IFS AB, Sweden

across the organization.
* Four Independent Directors have been appointed on the Board of NHPC.
53
ANNUAL REVIEW 2007-08
Highest ever turnover and net profit, commissioning of three projects, viz. 520 MW
Omkareshwar in Joint Venture in Madhya Pradesh, 390 MW Dul Hasti in Jammu &
Kashmir, 510 MW Teesta Stage-V Project in Sikkim, achieving the highest ever net
profit and turnover, surpassing the MoU generation target, achieving 96.13 %
capacity index, record realization of energy bills from various beneficiaries, bagging
more consultancy assignments, obtaining Mini Ratna status, amending the
Memorandum of Association of the Company, changing the name of the Company,
implementing ERP solutions and making go live Energy Sales and Accounting
module of ERP, obtaining Government sanction for the 330 MW Kishanganga
Project in Jammu & Kashmir, obtaining PIB recommendation for the 530 MW Kotli
Bhel-II Project, obtaining TEC from CEA for the 3000 MW Dibang Multipurpose
Project, submission of DPR of the 520 MW Teesta Stage-IV Project to CEA for
according TEC, obtaining Environmental clearance from MOEF for 5 projects
totaling 2165 MW, Singing of Revised MOA with Govt. of Arunachal Pradesh for
implementing 3000 MW Dibang Multipurpose Project, 750 MW each Tawang – I
and Tawang-II Projects, signing of MoU with Govt. of Manipur for implementing
the 66 MW Loktak Downstream Project, speeding up construction activities on all
the Projects under construction are some of the major achievements of NHPC during
the Financial year 2007-08.
54
FINANCIAL PERFORMANCE DURING 2007-08
* Registered a net profit (after tax) of Rs. 1,002.06 crore against the net profit (after
tax) of Rs. 9,24.80 crore registered during the previous financial year.
* Achieved an all time high sales turnover of Rs. 2,311.47 crore as against Rs.
1,962.76 crore achieved during the year 2006-07
* Poised to declare an all time high dividend for the year 2007-08. An interim
dividend of Rs. 100 crore for the year 2007-08 has already been paid to Government
of India.
* Better business management coupled with prudent financial policies like efficient
sales realization, better grid management, efficient treasury management systems
etc. have resulted in sound financial position which made the Company self reliant
for the resources generation for ambitious capacity addition program in XI and XII
Five year plans.
* No budgetary support from Government during the year 2007-08.
* Enjoys highest credit rating i.e. AAA for domestic borrowings and rating
equivalent to Sovereign rating for external borrowings from reputed international
agency.
55
* Signed financing agreements with PFC aggregating approximately Rs. 4,000 crore
at most competitive terms.
* Necessary financial closure of all ongoing projects in place.
* Likely to come up with IPO in August 2008.
POWER GENERATION
During the period under review, the operating Power Stations of NHPC generated
14811.35 Million Units exceeding the annual MoU target of 13906.95 million units
for ‘very good’ rating, as compared to 13048.74 Million Units generated during the
same period of the previous year, showing an increase of 13.51 %.
The machine availability of the operating power stations measured as Capacity

Index is 96.13 % exceeding the annual MoU targets of 94.50 % for ‘Excellent’
rating
SALE OF ENERGY AND REALISATION
The sale rate of NHPC power during 2007-08 varied from 75 paise per unit (Salal
Power Station) to 310 paise per unit (Chamera-II Power Station). The average sale
rate is 173 paise per unit. Revenue realization from all the 27 beneficiaries of NHPC
operating power stations during 2007-08 is 100% (Rs. 2,270 crore)
56
PROJECTS COMMISIONED
NHPC has added 1420 MW during the period under review by commissioning three
projects.The 390 MW Dul Hasti Power Station was declared under commercial
operation with effect from 7.4.2007. The Power Station was dedicated to the Nation
on 26.4.2008 by Dr. Manmohan Singh, Hon’ble Prime Minister of India. The
beneficiaries of the Power Station are Jammu & Kashmir, Punjab, Haryana, Uttar
Pradesh, Uttarakhand, Rajasthan, Delhi and Union Territory of Chandigarh.
The 510 MW Teesta Stage-V Project in Sikkim has been put under commercial
operation during February/ March 2008. The beneficiaries of the Project are DVC,
Bihar, Orissa, Jharkand, West Bengal and Sikkim. Power from this Power Station is
being supplied to the beneficiaries @ Rs. 1.62/unit.
The 520 MW Omkareshwar Project (under joint venture with Govt. of Madhya
Pradesh) was commissioned during November 2007 against scheduled date of
Feb.’08.
CONSULTANCY SERVICES
NHPC has been providing consultancy services in the area of hydro power
development for generating additional revenue for the Corporation in the form of
consultancy business. The clients to whom the consultancy services are being
provided include agencies / organizations both in public and in private sector in
India and abroad. During the financial year 2007-08, consultancy assignments
amounting to Rs. 2156 lakh and total payment amounting to Rs. 3011 lakh were
received.
57
RURAL ELECTRIFICATION PROJECTS
Under Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY), NHPC has taken up
Rural Electrification works in 27 districts of States of West Bengal, Bihar, J&K,
Chhattisgarh and Orissa with an estimated cost of about Rs. 2,580 crore. The scope
of work of all the districts covers 32400 villages and service connection to 20.80
lakh of BPL households. Out of the 27 districts, NHPC has awarded work in 14
districts. In addition to the above, tendering process has been initiated in balance 13
districts which have been sanctioned recently.
RURAL ROADS PROJECT
Under the Pradhan Mantri Gram Sadak Yojna (PMGSY), NHPC has undertaken
construction of rural roads and its maintenance in six districts of Bihar namely East
Champaran, Muzaffarpur, Sheohar, Sitamarhi, Vaishali and West Champaran.
NHPC has prepared and submitted DPR for 427 number of roads with a total length
of 2259 km. Against this, approval for 304 number roads with a length of 1741 km
has been received and work on 495 km road has been completed so far.
RESEARCH AND DEVELOPMENT ACTIVITIES
NHPC has actively considered the Clean Development Mechanism (CDM) for its
hydropower Projects. Project Idea Notes (PINs) for 15 projects have been prepared.
Host country approval for Nimoo-Bazgo and Chutak Project in J&K have been
obtained from National CDM Authority. Agreement between M/s. MGM
International & IDBI has been signed for development of Nimoo-Bazgo and Chutak
Projects as CDM Projects and sale of certified Emission Reductions (CERs)
generated by these projects up to 31st December, 2012. Data collection and
feasibility studies on other projects for consideration of CDM benefits are in
58
process.
With a view to assess and optimize the power station’s performance, Energy Audit
of NHPC Power Stations is being conducted.
NHPC has signed an MoU with WBGEDCL for execution of the 3.65 MW
Durgaduani mini Tidal Project in West Bengal. The Project has been approved and
MNRE has conveyed the sanction of the project at an estimated cost of Rs. 48 crore
(without navigational lock) excluding agency charges and applicable taxes.
NHPC is one of the participating agencies in conjunction with CPRI & SJVNL in
the National R&D Project on “Development of Silt Erosion Resistant Material for
Turbines of Hydro Generators” by National Metallurgical Laboratory, Jamshedpur
that is under execution.
ENTERPRISE RESOURCE PLANNING (ERP)
With the objective of high level of interaction, co-ordination and synchronization

across all functions and to enhance NHPC's capability to respond to new needs in a
dynamic business environment, NHPC is implementing ERP of IFS AB, Sweden
across the organization covering Mega Processes such as Project Management,
Operations & Maintenance, Finance & Accounts, Procurement & Contracts, Energy
Sales Accounting, Human Resource and Engineering & Quality Assurance out of
which Energy Sales Accounting has been made Go Live as scheduled on 29th
February, 2008. The first phase of ERP implementation is scheduled to be
completed on 15th October, 2008. The ERP project when implemented shall
facilitate improved performance, productivity and profitability in the organization.
59
To support the ongoing implementation of ERP solution in NHPC, a scalable and
state-of-the-art, Tier-III enterprise class data centre is being developed in the NHPC
office complex at Faridabad. This Greenfield data centre building would be
equipped with advanced access control and climate control devices along with
redundancy in both power and communication links to ensure uninterrupted
operations. In addition, it is aimed to be compliant with the provisions of the Energy
Conservation Building Code, 2007 to ensure optimum utilization of energy
resources.
NHPC has also initiated actions to augment existing IT & Communication

infrastructure in terms of Local Area Networks, servers, desktops, security and
satellite based Wide Area Network to support the ERP initiative.
Efforts made in the area of IT & Communication in the organization have brought
about considerable transformation in terms of performance, efficiency and
productivity.
HUMAN RESOURCE DEVELOPMENT (HRD)
NHPC has conceived and initiated Business Process Reengineering & Restructuring
exercise aimed at evolving new organization design, optimizing Human Resource
and assessing and articulating Business Strategy through a reputed Consultant.
Several organization development initiatives have been implemented including
revisiting of HR Policies on the basis of an extensive organization climate survey.
60
NHPC has implemented Productivity Linked Group Incentive Scheme (PLGI)
which envisages variable pay up to 12.5% of the annual basic pay of an employee.
Aiming to provide social security to the employees, the NHPC Social Security
Scheme has been introduced which envisages equal contributions from the employee
and the employer.
In the event of death/ permanent disability, the employee / his family can get up to
Rs. 10 lakh under the above scheme. The Company has also implemented a number
of welfare measures for the benefit of the people living in and around its Power
Stations as a part of Corporate Social Responsibility. During the period, cordial
industrial relations prevailed due to which not even a single man day was lost.
AWARDS AND RECOGNITIONS WON
During the period under review NHPC has won many accolades in the form of
awards as mentioned below:
¾ Special Jury Award at the Asia Pacific Global HRM Summit for “Innovative
HR Practices”.
¾ BML Munjal Award instituted by the Hero Group for “Innovative Learning
& Development Practices”.
61
¾ Amity Award for CSR.
¾ SCOPE Excellence Award for CSR.
¾ 2nd Prize at the WIPS (Women in Public Sector) Meet in the category of
Best Performing Enterprise for Women Empowerment Initiatives.
QUALITY ASSURANCE
During 2007-08 Corporate Office and six Power Stations (Uri, Tanakpur, Chamera-
I, Salal, Dhauliganga and Baira Siul) were certified for Occupational Health &
Safety management System i.e. OHSMS-18001. In addition, Rangit Power Station
was certified ISO-9001 and Dhauliganga Power Station was certified ISO-14001.
Disclaimer: “The Company is proposing, subject to receipt of requisite approvals,

market conditions and other considerations, a public issue of its equity shares and to
file a Draft Red Herring Prospectus with SEBI”
62
CHAPTER 4
63
DATA PRESENTATION AND ANALYSIS
It is analyzed that NHPC uses its business strategies by formulating, implementing

and evaluating its cross-functional decisions that enables the organization to achieve
its objectives. The managers and higher authorities of the organization specify the
organization's objectives, develop policies and plans to achieve these objectives, and
then allocate resources to implement the policies and plans to achieve the
organization's objectives.
Business strategy is not a very common subject. Normally, employees of NHPC are
not aware what business strategy is all about and how the organization is relating
these strategies to the objectives of the organization. It is the highest level of
managerial activity, usually formulated by the Board of directors of the organization
and performed by the higher level of employees.
According to the business strategies finalized, training programmes are conducted

by the organization. As the business strategies are related to various subjects, there
are a number of training programmes which are conducted for the employees of the
organization to make them understand better about the business strategies and how it
works for the betterment of the organization. With the help of above analysis, it has
been identified that there are 25 training programs which are related to the business
strategies out of the total number of 110 training programmes.
64
The training programmes which have been identified as related to the Business
Strategy of NHPC are:
1. Leadership Excellence
2. Evolving Managers into Leaders – A Competency Based Approach
3. Managing Change
4. Managing Performance
5. Corporate Governance
6. Strategic Leadership for Global Competitiveness
7. Strategic Thinking for Business Leadership
8. Corporate Resurgence and Growth
9. Managing Creativity and Innovation
10. Strategic Management
11. Corporate Vision and Mission
12. Developing Positive Work Culture
13. Business Process Re-engineering
14. Project Management with Emphasis upon Investigation and
Implementation Planning
15. R&R Policy and Concerned Issues
16. Managing Human Relations in Organization
17. Strategic HRM
18. Effective HR T&D
19. CERC Norms / Grid Code for the Operation of Hydro Plant
20. Project Management for River Valley Projects
21. Mega Power Policy
22. Deemed Export Benefit in Context of Hydro Power Project and
Taxation
23. Skilling and Multi-skilling Training
24. ERP Awareness cum Orientation Programme
25. Induction cum orientation programme
65
These programmes are developed keeping in view of the needs of training the
employees. It has been taken into account that which employees are to be given
what type of training.
For example, leadership and management programmes are conducted for the top
level of employees technical programmes are conducted for engineers and JE’s etc.
The employees are categorized into three different levels.
• Lower level ( E1-E3 )

• Middle level ( E4-E6 )
• Top level ( E7-E9 )
The strategic programmes are scheduled to be conducted for a number of days in

different months over the year. For some programmes where training is related to
classroom learning, venues like IIM-A IIM-K, IIM–L, IMT-Ghz. etc are also
selected.
Some of these programmes are held two or more times in a year. The organization
reassesses each strategy annually to determine how it has been implemented and
whether it has succeeded or needs replacement by a new strategy. The programmes
have added a significant value in the lives of the employees by preparing them for
the challenges of the future.
66
The technical strategic programmes have helped the corporation in undertaking new
projects and developing aptitude and competency among the employees for timely
and effective execution of the projects. Such programmes cover the designing layout
of the projects, construction planning and management, software programmes etc
which impart conceptual clarity and hands on training on the most versatile software
packages used by engineers. Technical programmes play a vital role in the long-term
planning of NHPC resulting in increase of revenue through electricity generation.
NHPC uses business strategy as an ongoing process that assesses the business and
the industries in which the organization is involved; assesses the challenges which
the organization faces and sets goals and strategies to solve existing problems and
issues as well as to meet the future demands of electricity.
These strategic programmes have played a significant role in disseminating a vast

body of knowledge, inculcating competencies required for competing in this
turbulent global arena and developing leadership across levels and geographies to
help NHPC achieve its targets effectively and rapidly.
67
CHAPTER 5
68
FINDINGS
¾ It is analyzed that NHPC uses its business strategies by formulating,

implementing and evaluating its cross-functional decisions that enables the
organization to achieve its objectives.
¾ The managers and higher authorities of the organization specify the

organization's objectives, develop policies and plans to achieve these
objectives, and then allocate resources to implement the policies and plans to
achieve the organization's objectives.
¾ Business strategy is not a very common subject. Normally, employees of

NHPC are not aware what business strategy is all about and how the
organization is relating these strategies to the objectives of the organization.
It is the highest level of managerial activity, usually formulated by the Board
of directors of the organization and performed by the higher level of
employees.
69
CHAPTER 6
70
CONCLUSION & RECOMMENDATIONS
HRD and management of NHPC give focus to business strategies and appox. 23%
of the total training programmes conducted by the corporation are related to its
business strategies. Business strategies of NHPC influence all the activities of the
various functional areas of the business to achieve organizational objectives. NHPC
uses business strategies as an ongoing process that assesses the business and the
industries in which the organization is involved; assesses the challenges which the
organization faces and sets goals and strategies to solve all existing problems and
issues as well as to meet the future demand of electricity.
The organization reassesses each strategy annually to determine how it has been
implemented and whether it has succeeded or needs replacement by a new strategy
to meet changed circumstances, new technology, new competitors, a new economic
environment, or a new social, financial, or political environment.
As per the project carried out to know about the business strategies of NHPC, the
training programmes conducted and how these programmes are related to the
business strategy of the organization, some conclusions have been drawn. These are:
1) Training programmes have been identified keeping in view the various

factors like Individual Training Needs of the employees, Recommendations
of HODs, Technological advancement, Growing challenge in the Power
Sector, Business Plans of the organization, Needs derived from defined
Vision/Mission/objectives of the Corporation etc.
71
2) Justified weightage has been given to the Business Strategis of the
Corporation along with its future plans in identification of the training
programmes.
3) Appox. 23% of the total training programmes includes in the training

calendar are identified as per the Business Plans of NHPC, which
characterizes the importance and relevancy of the aspect in identification of
need based training programmes.
4) NHPC pays due attention to create the awareness amongst the employees
about its future plans and emerging challenges so as to make them capable to
face them effectively.
5) The training programmes related to business strategy have helped the

employees in honing their skills and developing versatility.
6) The programmes have helped the employees to understand the business

strategy of the organization and work according to it to attain the individual’s
as well as the organizational objectives.
7) It has helped in aiming towards the multi disciplinary development of its

employees.
8) The programmes have added a significant value in the lives of the employees
by preparing them for the challenges of the future.
72
BIBLIOGRAPHY
BOOKS:
1) Prentice Hall India, “Human Resource Management”, Garry Dassler, 7th

Edition.
2) Sultan Chand & Sons, “Human Resource Management”, L.M Prasad.
3) NHPC Training Calender (2008-09)
WEBSITES:
¾ www.google.com
¾ www.nhpcindia.com
73
APPENDICES
1) Annual Training Schedule (2008-09)
2) Training programmes identified as Business Strategies from Annual Training

Schedule
74

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FINAL PROJECT

“ Business strategies and training process in NHPC ”

Submitted towards partial fulfillment of requirements of

Supervisor/ Guide: Submitted By:

Asjad Usmani Suman Jakhar

DPC INSTITUTE OF MANAGEMENT

I, Suman Jakhar, Roll No: 963, student of PGDM(Equivalent to MBA)

Signature of Faculty Supervisor

Undertaking any project in life proves to be a milestone in more ways than

I also acknowledge all the respondents who helped me without hesitation in

CONTENTS PAGE NUMBERS

4. DATA PRESENTATION & ANALYSIS 63 -67

6. CONCLUSIONS & RECOMMENDATIONS 70 - 72

1.1 INTRODUCTION ABOUT BUSINESS STRATEGY AND TRAINING &

Business strategy is related to linking business with strategic management. It is a process

OBJECTIVES OF THE STUDY

1. To learn classroom theories through observation and practical

Through this project we will try to conclude:

1) What are the training strategies used by NHPC.

LIMITATIONS OF THE STUDY

2) Technical programmes were difficult to understand.

TRAINING PROGRAMS IDENTIFIED AS PER BUSINESS STRATEGY

The training calendar of NHPC contains information about a number of programmes

Leadership excellence lies in understanding the significance of the interdependence

The programme is a part of Leadership Development of the employees. It will help

• To explore leadership dimensions that are responsible, responsive, result

• To understand the art of pursuing excellence, leading change, accommodating

2. EVOLVING MANAGERS INTO LEADERS – A COMPETENCY

Developing managers to help them become effective leaders is crucial to creating a

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

Leadership is not a position or designation. It is a way of thinking – a mind set.

The training programme helps in achieving an organizational excellence by

Globalization, technological developments and liberalization have thrown open

To cope with a changing world, an employee must develop the capacity to

The programme covers the Concept of Change, Changing Scenario, Organization

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

Performance management is the activity of tracking performance against targets and

Managing performance is about managing for results. Every initiative or effort of

The programme on this topic aims to develop a working understanding of the

Performance management helps the employees to focus on their goals and

• what they are aiming for

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

NHPC uses corporate governance as a strategy in their business as it ensures the

6. STRATEGIC LEADERSHIP FOR GLOBAL COMPETITIVENESS

An overall goal of improving global competitiveness is the imperative under which

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

This programme is aimed at enlightening executives with the importance of strategic

CORPORATE RESURGENCE AND GROWTH

The programme is aimed at enabling the participant discerning significant external

The accelerating pace of globalization and emerging identity of the country as a

9. MANAGING CREATIVITY AND INNOVATION

The programme is aimed at developing a critical appreciation of concepts related to

10. STRATEGIC MANAGEMENT

Strategic management has helped NHPC in:

• specifying the organization's objectives,

11. CORPORATE VISION AND MISSION

• To achieve international standards of excellence in all aspects of hydro power and

12. DEVELOPING POSITIVE WORK CULTURE

Organizational development programmes are very important. This programme aims at

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

• Work Related Behavior and Components of Work Culture,

13.BUSINESS PROCESS RE-ENGINEERING

Organization and its goals and objectives.

Jobs and related tasks that need to be learned.

Competencies and skills that are needed to perform the job.

Individuals who are to be trained.