Summer Training Report: ON Employee Welfare Schemes at National Fertilizers Limited, Bathinda

SUMMER TRAINING REPORT
ON
EMPLOYEE WELFARE SCHEMES AT
NATIONAL FERTILIZERS LIMITED,
BATHINDA.
SUPERVISED BY: - SUBMITTED BY:-
Mr. D.K. BORA AMARJIT KAUR
HRD MANAGER MBA- 3RD SEM.
ROLL NO: - RQ1002A11
LOVELY PROFESSIONAL UNIVERSITY

JALANDHAR
PREFACE
For the completion of MBA it has been mandatory to obtain an industrial training in human
resource department.
This training session really helped me in gathering practical knowledge of human resources.
I have prepared this project on the topic “EMPLOYEE WELFARE SCHEMES” in which i
have described about the human resource department, welfare schemes in NFL.
The report has been prepared during summer training which life’s greatest treasure is as it is
full of experience, observation and knowledge.
The training held was very gainful as it took us close to real life. This period also provided a
chance to give the theoretical knowledge a practical shape and learn from practical results.
The report is a result of 6 week training that i have taken at National Fertilizers Limited,
Bathinda. It has been very educative and fruitful experience for me, as it has given me an
insight into some practical experience without which classroom knowledge can be regarded
as incomplete.
I hope this report serve as the practical guide for the Employees Welfare Schemes of the
company.
ACKNOWLEDGEMENT
I am highly indebted to the management of National Fertilizers Limited, Bathinda to take me
as a summer intern in their organisation. I would like to thank specially Mr. D.K. Bora
(Manager HRD) for providing me an opportunity to undertake summer training at NFL,
Bathinda.
I wish to express my gratitude towards Mr. A.K. Narang (Manager P&A) and Hemant Gupta
(Assistant Manager Administration) for permitting me to work under his guidance, without
those guidance and co-operation, this project would not have been a success. I have no words
to express my gratitude to the profound interest taken by him at every stage of the project.
I also express my sincere thanks to my parents and friends who always have been source of
inspiration to me and supported me morally and financially in every activity during the
training.
Above all, i would like to thank almighty for showering his blessing on me in completing the
project.
TABLE OF CONTENTS
CHAPTER TOPIC PAGE NO.

1 INTRODUCTION TO
COMPANY
2 INTRODUCTION TO
PROJECT
3 OBJECTIVE AND
SCOPE OF STUDY
4 RESEARCH
METHODOLOGY
5 DATA ANALYSIS
AND
INTERPRETATION
CHAPTER- 1
INTRODUCTION OF COMPANY
NATIONAL FERTILIZERS LIMITED,
BATHINDA
NFL is a Schedule ‘A’ and Mini
Ratna company which was
incorporated on 23rd August 1974
with two manufacturing Units at
Bathinda and Panipat. The
commercial production from these
plants commenced w.e.f 1.10.1979
and 1.9.1979 respectively.
Subsequently, on the reorganization of
Fertilizer group of Companies in
1978, the Nangal Unit of Fertilizer
Corporation of India came under the
NFL fold. The Company expanded its
installed capacity in 1984 by installing NFL Corporate office: Noida
and commissioning of its Vijaipur gas
based Plant in Madhya Pradesh.
Expansion of Vijaipur plant was taken
up in the year 1993 for doubling its
annual production capacity. The
commercial production from this plant
commenced with effect from
31.3.1997.
The Vijaipur Plant was a landmark achievement in project management in

India. The plant was completed well within time and approved project cost. In
recognition of this achievement, the project was awarded the First Prize in
Excellence in Project Management by Govt. of India. Subsequently the
Vijaipur plant doubled its capacity to 14.52 lakh MTs by commissioning
Vijaipur Expansion Unit i.e. Vijaipur-II in 1997. The plant annual capacities
have now been re-rated w.e.f. 1.4.2000 from 7.26 lakh MT of Urea to 8.64
lakh MT for Vijaipur-I & Vijaipur-II Plants each. Three of the Units are
strategically located in the high consumption areas of Punjab and Haryana.
The Company has an installed capacity of 32.31 lakh MTs of Urea and has
recorded an ever-best annual sales turnover of Rs.3866 crores and operating
profit of Rs 212.84 crores during the year 2006-07. The Company’s strength
lies in its sizeable presence, professional marketing and strong distribution
network nationwide.
NFL has embarked on the revamp of Vijaipur I and II plants for augmenting
their production capacities by 16% and 23% respectively. NFL, a profitable
public sector undertaking operates under the administrative control of
Department of Fertilizers in the Ministry of Chemicals &Fertilizers. Kisan Urea
NFL’s popular brand is sold over a large marketing territory spanning the length
and breadth of the country. The Company also manufactures and markets Bio
fertilizers and a wide range of industrial products like Methanol, Nitric Acid,
Sulphur, Liquid Oxygen, and Liquid Nitrogen etc. The Company has developed
Neem coated Urea which on demonstration has improved the crop yield by 4-
5%. The Company is focusing its thrust to widen the marketing operations of
Neem coated Urea. The company is also undertaking R&D for the development
and production of other value added products like Zincated & Sulphur Coated
Urea. NFL over the years has developed a team of dedicated professionals in the
areas of production, maintenance, project management, safety and environment
control. These professionals are sought after in the Industry both in India &
abroad for their Specialized Services.
NFL is known in the industry for its work culture, value added human
resources, Quality Management, Safety, Environment, Concern for Ecology and
its commitment to social up liftment. All NFL plants are certified under ISO-
9001 (2000) for conforming to International Quality Standards and International
Environmental Standard viz. ISO-14001. NFL is equally concerned about the
safety of its plants and people and accordingly implemented internationally
accredited OHSAS-18001 safety standard for its three plants. With the
certification of Corporate Office/Marketing operations under ISO-9001: 2000,
NFL has become the first Fertilizer Company in the country to have its total
business covered under ISO-9001 Certification. Urea is an essential commodity
under the Essential Commodities Act, 1955. The Department of Fertilizers
(DoF) plans and monitors production, import and distribution of fertilizers and
management of subsidy for indigenous and imported fertilizers in the country.
In this regard, DoF has recently set up an on line web based Fertilizers
Monitoring System. The System of marketing of Urea has undergone a change
w.e.f. 1.4.2003 when company has been allowed to market 25% of its produce
outside ECA during Kharif 2003. This percentage of sales outside ECA was
raised to 50% in Rabi 2003-04, which continue to prevail for 2006-07. NFL
enters into a Memorandum of Understanding (MoU) with the Government for
each year under which the Government undertakes to assist NFL with regard to
availability of inputs, obtaining ECA allocations commensurate with the
availability of fertilizers from NFL plants etc. NFL on its part undertakes to
adhere to its production and movement plans, achieve its ECA allocation and
provide regular feedback to the Administrative department.
COMPANY PROFILE: NATIONAL FERTILIZER LIMITED
A PROFILE INTRODUCTION
The rise in fertilizer consumption in India has been quite Phenomenal during the
past two & half decades. To meet the rise in consumption of fertilizers, creation
of additional Capacity was also planned. The change in worldwide energy
Concept and the rise in oil prices in 1973 forced India to broad base it
nitrogenous production by adopting new and sophisticated technology, which
could use cheaper sources of raw materials hitherto not tried in the Country. It is
in the context that National Fertilizer Limited (NFL) (a public sector
Undertaking) was conceived to plan & implement two modern large Capacity
single stream nitrogenous fertilizer plants in the predominant fertilizer
consuming areas of northern states of India to cater to ever increasing demand
for fertilizer in the region. National fertilizer limited was incorporated on
23rdaugust, 1974 for setting up two nitrogenous fertilizer plants, each with a
capacity of 5.11 lakh tonnes of urea per annum at Bathinda (Punjab) & Panipat
(Haryana) based fuel oil/LSHS as main raw material. On recognition of
Fertilizer Corporation of India (FCI) –NFL group of Companies, Naya Nangal
unit of FCI was taken over by NFL on 1st April 1978. Later on, a gas based
fertilizer plant was entrusted to NFL. It has come up at Vijaipur in Guna district
of Madhya Pradesh, which started production in July 1988, with an installed
capacity of 7.26 lakh tonnes of urea per annum. The Company’s Marketing
Network comprises of Central Marketing Office at NOIDA, three Zonal Offices
at Bhopal, Lucknow & Chandigarh, 16 State Offices and about 40 Area Offices
spread across the country. Agriculture Extension and Social Welfare activities
are undertaken in the adopted villages. It has its registered office at scope
complex, core-III, 7-institutional areas, Lodhi Road, New Delhi -110003 and
corporate office at A-II, sector –24, and district Gautam Budh Nagar, NOIDA
(UP) 201301. A brief about the company & its operating unit is given as under.
THE COMPANY
Registered on 23.8.1974
Authorized capital Rs. 500.00 crores
Paid up capital Rs. 490.58 crores
Capacity 13.70 lakh MT nitrogen
The capacity has increased from 13.70 lakh MT nitrogen to 14.86 lakh MT
nitrogen consequent upon commissioning of Nangal unit revamp scheme II
w.e.f 1.4.2000. The total capacity of Urea is 32, 30,700 MT which in term of
Nitrogen comes to 14.86 lakh MT.
NANGAL UNIT INSTALLED CAPACITY
Urea 4, 78,500 MT
Methanol 22,110 MT
Project cost urea (including revamp) Rs .283.11 Cr
Foreign exchange component (including revamp) Rs.118.49 Cr
Commissioned (urea revamp) 01.02.2001

PANIPAT UNIT INSTALLED CAPACITY
Urea 5, 11,500 MT
Commissioned 01.09.1979
Project cost Rs 223.50 Cr
Foreign exchange component Rs 55.79 Cr
BATHINDA UNIT INSTALLED CAPACITY
Urea 5, 11,500 MT
Project cost Rs 239.30Cr
Foreign exchange component Rs 67.87
VIJAIPUR UNIT -1 INSTALLED CAPACITY
Urea 8, 64,600 MT
Project cost Rs 533 Cr
Foreign exchange component Rs 185.20

VIJAIPUR UNIT -11 INSTALLED CAPACITY
Urea 8, 64,600 MT
Project cost Rs 1071 Cr
Foreign exchange component Rs 431Cr
The installed capacities of Vijaipur unit –I & II has been reassessed by Fertilizer
Industry Coordination Committee (FICC) w.e.f 1.4.2000 and the capacity of
both the plants has increased from 7, 26,000 MT to 8, 64,600 MT from interim
reassessed capacity of 8, 53, 400 MT.
PRODUCTS OF NFL
National Fertilizer Limited is the producer of Nitrogenous Fertilizer and the

product of fertilizer is known as “Kisan Khad” and “Kisan urea”. Kisan Khad
which is calcium ammonium nitrate (CAN) contains 25% nutrient “N” while
“Kisan Urea” contains 46% nutrient “N”. Kisan Khad is ideally suited for all
types of crops. The marketing territory for Kisan Khad and Kisan Urea is the
states of Punjab, Haryana Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra,
Orissa, Andhra Pradesh, J & K, Himachal Pradesh and union territory of Delhi
and Chandigarh. NFL is also engaged in undertaking various marketing
development activities under the company‘s agriculture services and farmer
education activities for publicity and sales promotion.
MAIN PRODUCTS
KISAN KHAD (CAN)
KISAN UREA
KISAN BIO-FERTILIZER
INDUSTRIAL PRODUCTS
Liquid nitrogen (N2)
Liquid oxygen (O2)
Argon gas (Ar)
Carbon slurry (C)
Sodium nitrate (NaNO3)
Methanol (CH3OH)
Carbon dioxide (CO2)
Sulphur (S)
CORPORATE OBJECTIVES OF NFL
In terms of Memorandum of Association, NFL was set up to manufacture and

market chemical fertilizer, other chemicals and by- products as well as to
provide the allied services in order to achieve and maintain a leading position in
the production and marketing of fertilizer. The company has achieved excellent
rating and the following micro objectives have been identified.
1. PRODUCTIVITY
To achieve the best possible levels of production and economy in use of inputs
while ensuring safety and proper maintenance of plant and machinery and
pollution control, more specifically (a) to strive to raise capacity utilization &
(b) to improve on consumption norms consistently.
2. RESEARCH AND DEVELOPMENT
To carry out R&D activities for-increasing plant availability saving in the use of
energy in different form better recovery of saleable products process
improvement/development and increasing utilization efficiency on a sustainable
basis in the application of chemical fertilizer in combination with other
agricultural inputs.
3. PROFITABILITY
To manage the assets, men and material in most effective and efficient manner
ensuring reasonable return on investment commensurate with principles laid
down by the government from time to time, and Generation of increasing
internal resources.
4 .MARKETING AND CONSUMER SERVICES
To provide to the farmers high quality in right time and in adequate quantities
and with a package of modern agricultural practices, at the same time,
maintaining reputation for fair business practices to further intensify
promotional efforts for increased use of fertilizer and to maximize distribution
of company‘s products within the areas covered by the company, consistent
with govt. policy.
5. ORGANIZATION
To develop & maintain an organizational environment for encouraging

individual and group initiative and productivity and also sustain fair deal and
human approach.
6. GROWTH
To achieve reasonable and consistent growth in the business of manufacture and

marketing of fertilizer and chemicals compatible with needs of the market. To
work out diversification/expansion schemes to increase profitability of the
company and meet the changing needs of the Customers.
7. OBLIGATION TO SOCIETY
 To conduct the business of NFL in accordance with ethical and legal

standards and
 To undertake socio- economic activities, consistent with government

policies, in order to generate good environment, in which the company
operates.
 To promote development of ancillary industries.
 Under social welfare programmers, NFL had earlier adopted ten villages
in the Baster district of MP, in these villages major thrust was given on
social hygiene, adult education and civic amenities to bring about
transformation in the life – styles of tribal farming community.
(8) INFORMATION TECHNOLOGY
NL is fast moving towards paperless office. For achieving this objective, local
area network (LAN) has been completed at all units and offices of the company.
All the units and marketing offices have been connected through wide area
network (WAN) WAN comprises of leased time connectivity from NOIDA to
all units and zonal offices. On line integrated web-based computerizations is in
advance stage implementation. The computerizations cover Materials
Management, Finance & Accounts, Human Resource and Management
Information System. The company has its internet website
www.nationalfertilizers.com and internet website for providing information to
all concerned.
BATHINDA UNIT OF NFL
Bathinda unit of national fertilizers Ltd is situated in Bathinda district of

Punjab. The unit is situated 8 kms away from Bathinda city on “Sibian road“.
Bathinda unit as one of the sites for fuel oil based plant was basically chosen
from consumption point of view. The following factors were considered in view
by govt. of India while selecting the site at Bathinda availability of land steady
power supply in the vicinity of project availability of good quality water from
the Sirhind Canal Bathinda town being conjunction of Punjab, Haryana &
Rajasthan and all states having potential for fertilizer Consumption.
IMPLEMENTATION OF PROJECT
To take up challenging job for completion of this project within a period Of 36

months from the zero date i.e. from 26.09.1974, the contracts were Signed with
“Toyo Engineering Corporation “(TEC) & Engineers India Limited (EIL), well
known Japanese & Indian consultancy companies Respectively.
Introduction about the HR department of NFL
In NFL, Bathinda there are 6 sections like:
1) Transport
2) Industrial relation and welfare
3) Legal
4) Medical and administration
5) Public Relations
6) Estate
7) Establishment
8) Hindi
1) Transport:-
Mr. A.K. Rana is in charge of this section. The section caters to the
transport needs of the company. The company has 20 vehicles like 3
school buses, 1 matador, 2 ambulances, 2 ambassadors, 1 Maruti, Tata
407, 3 fire tenders, 2 jeeps, 4 motorcycles, 1 auto crane, 1 tractor HMT.
The company has taken some vehicles on contract basis. The matador is
used to carry school children and to meet other local transportation
requirements. In jeeps, one jeep is provided to deputy commissioner CISF
and the other is provided to Assistant commissioner Fire for performance
of their official duties. The ambulances have been used for carrying NFL
patients from township to other local hospitals in the city. NFL has 3 Fire
tenders which are used in case of fire in the plant as well as surrounding
areas. Fire tenders are also provided to District Administration at their
emergency call. The company has 4 motorcycles which have provided to
inspect the CISF car performing their official duties. In addition to above
NFL has hired motor vehicle on round the clock basis to meet the local
transportation requirements and also provided on chargeable basis to NFL
employees for going to railway station etc. For the purposes of carrying
school children NFL has also hired own buses from the contractor and an
ambulance to carry patients from Bathinda to outstation hospitals at
Ludhiana and Delhi.
2) Industrial Relations and Welfare:-

Mr. Vinod Mittal is looking after this section. The section comprises of
various acts like ESIC Act, Factory Act 1948, Workmen’s Compensation
Act, Trade Union Act, Industrial Disputes Act 1947 etc. the parties
involved are:-
 National Fertilizers Limited(The Management)
 National Fertilizers Employees Union(The Workers)
 Government Authorities- The Labour Inspector, the Assistant Labour
Commissioner and the Labour Commissioner.
There is a Works Committee which is also known as Statutory

Committee. In this the members are both from the workers and
management side and have equal participation. Both the parties use their
pressure or tactics to get their demands fulfilled like strikes, lockouts,
gherao, agitation etc. the notice of at least 42 days is given before taking
action. Postering is also one of the events of this program.
3) Legal:-
Mr. Karamchand Sharma is charged with the responsibility of seeing this
section. It is one of the most important sections of the company. Every
company is faced with the problem of conflicts or other such type of
problems for which there is a need of a proper legal department that deals
with the cases of all functional areas like HR, Finance, Marketing etc. all
the case go through the Court Appeal Channel: Lower Court, District
Court, High Court and Supreme court. It basically handles two types of
cases like Civil and Criminal.
Civil cases relate to payments, compensation and wages.
Criminal cases relate to punishment, death and injuries.
There are internal opinions, external cases and panel of advocates. First
when any case arises, it is first sent to the company’s legal advisor for
giving the judgement and if it is not satisfied then it is sent to the outside
bodies or it is moved into the court.
The company has its own panel of advocates or it can also go in for hiring
the advocates from outside depending upon the stake in the company.
Stake is the only determining factor for hiring the advocates from outside.
In Bathinda unit there is only one legal officer that handles the cases of
NFL.
4) Medical and Administration:-

Mr. R.K. Goel is in charge of this section. This section follows NFL
Employees Medical Attendance and Treatment Rule. It is applicable to
NFL employees, Trainees and their dependent family members.
The section provides two types of treatments namely OPD treatment and
indoor treatment. There are also various social security schemes like
basic pay and DA, death benefit in which all employees contribute 25%
of their incomes.
The various security schemes of NFL are:-
Casual leaves
Leave with wages
Medical leaves
Maternity leave for women
Administration section is also looked after by Mr. R.K. Goel. Under this
section there are four sub sections like general administration, dispatch,
guest house and sanitation.
General administration consists of infrastructure like chair, table, and
telephone etc needs. The employees have been provided with the facility
of fax, Photostat, stamps, furniture, carpets, courier service etc along like
motivating tools like suitcases, diaries.
Dispatch section deals with the letters, mails, NIT (Notice Inviting
Tender) that is needed for communication purposes.
Sanitation deals with cleanliness of washrooms and rooms etc.
5) Public Relations:-
The in charge of this section is Mr. Vikram Rawat. It is one of the vital
functions of any business organisation. It is a link between the company
and the public. This department is helpful in creating an image in the
minds of the public. Company creates relation with other departments. If
any meeting is held by a company then this department should be present
there. Every year Diwali Mela is held by PR department and the profit
which is earned by the department is utilized for the welfare schemes.
Momentos are provided to VIP visitors from PR section. The various
functions of this department are:-
Plant visit-
If any organisation visits the company for industrial visit then it is the
responsibility of PR department to welcome the organisation.
Liasoning with Media-
It deals with print media, mass media, newspaper etc. every news that is
given in the newspaper is a work of Public relations department.
Advertisements-
It deals with tendering the plant. An ad can be given in the newspaper
either with the help of ad agency or by making direct contact with the
media. If add is given through agency then 15% discount is given to
agency but if it is made through direct contact then no discount is
provided.
Photography-
The company has one quarterly magazine VANI in which every
information is given related to every department of the organisation. All
the units forward their information to the corporate office of the NFL in
Noida and they see to it and pass the same to be printed in the magazine.
It contains all activities like VIP visits; tree plantation etc. The magazine
is common in all the units and has information of all units of NFL.
Diaries and calendar-

All the employees of NFL are provided with 1 diary and 1 calendar which
are also centralized in corporate office. All the printing of these diaries
and calendar is done by the corporate office of NFL based in Noida.
6) Estate:-
Mr. Kamaldev is looking after this section. The section is basically
concerned with the accommodation of employees in township area.
Company has approximately 672 acres of land and there are A, B, C, D
type of quarters and 1 GM’s bungalow. The bungalow is given to unit’s
head. The quarters are allotted to employees according to their basis
salary and seniority basis. The quarters are semi furnished but bungalows
are fully furnished. The maintenance of quarters is seen by company
itself. The company also provides the facility of guest houses which are
allotted to those who are not given houses as per their entitlement.
Type Eligibility of quarters

A Below Rs. 5710/-
B Basic pay Rs. 5710/- in the scale of 5550-160-8910
C Basic pay Rs.11050/- in the scale of 10750-300-16750
D Basic pay Rs. 5710/- in the scale of 14500-350-18700
The company has also provided the facility of Retention of company’s

accommodation
Resignation- 1 month
Transfer- 2 months
Retire- 4 months
Death- 6 months
7) Establishment:-
Mr. Hemant Gupta is looking after this section. This section deals with
the service matters of the employees. The term service matter implies the
entry of the employees in the organisation to the exit of the employees. It
basically deals with the pay fixation and the appointment orders of the
employees. The company has itself made its own rules and policies to
deal with the various matters. All the personnel officers directly report to
senior manager Mr. A.K. Narang.
8) Hindi:-
The most important department of the company is Hindi section which is
looked after by Mr. Yashpal Singh. It follows a rule named as Official
Language Rule 1976. The committee of Parliament on Official Language
contains 30 members in which 20 are from Lok Sabha and 10 from Rajya
Sabha. It reviews the progress made in the use of Hindi language in
central government offices and submit the report to the President of India.
Though Hindi Divas is on 14th September but in NFL it is celebrated from
14th September to 30th September.
Language wise division of regions:
Region A- It includes all the Hindi speaking areas like Bihar, Haryana,
Himachal Pradesh, U.P., M.P. etc
Region B- It includes those regions which are both Hindi as well as
Punjabi speaking like Punjab, Gujarat and Maharashtra.
Region C- It includes the remaining regions like those of south.
The company has to follow the rules related to the usage of Hindi
Language and that’s why they organise certain competitions in order to
promote this language in the organisation.
All the replies to the communications which are received in Hindi are
made in Hindi only.
Meetings are also held by the company in order to discuss on the various
issues 2 times in a year.
IMPLEMENTATION OF THE PROJECT
Commissioning of water filtration plant 15-12-1976

Commissioning of DM plant 04-03-1977
Commissioning of instrument air system 13-03-1977
Commissioning of boiler 01-08-1977
Ammonia production 28-05-197
Urea production 02-06-1979
Commercial production started 01-10-1979

INSTALLED CAPACITY
Ammonia 900 MT/Day of ammonia
Ammonia (annual) 2, 97, 000 MT (330 stream days)
Urea 1550 MT /Day (330 stream days)
PROJECT COST
The approved project cost of Bathinda unit is Rs. 239.30 crores with a foreign
exchange component of Rs 67.87 crores. Foreign exchange was mainly met
from Japanese yen credit. However, for certain equipments, foreign exchanges
were met out of free foreign exchange and Dutch credit.
REQUIREMENTS OF RAW MATERIAL
Fuel oil/LSHS 860 MT Day

Coal 19000 MT
CORPORATE SOCIAL RESPONSIBLITY
As a part of corporate social responsibility, NFL undertakes projects in areas in

the vicinity of its units for development of villages such as educational facilities
for children studying in schools, health camps, rural sports and civic amenities
to bring about transformation in the life style of the rural folk.
Company’s marketing division has adopted about 60 villages throughout its

marketing territory where social welfare programmes like health awareness
campaigns, animal health camps, assistance to village schools, providing safe
drinking water, distribution of sewing machines to ST/SC women and poor
widows, tricycles to handicapped etc are undertaken for the upliftment of
villagers.
Employees of the company have been contributing generously to Prime

Minister’s National Relief Fund to help the victims of natural calamities.
(As on 31.03.2011)
1. Shri Satish Chandra Chairman & Managing Director

Joint Secretary
Government of India
Department of Fertilizers
Shastri Bhawan, New Delhi 110 001
2. Ms. Neeru Abrol Director (Finance)

National Fertilizers Ltd.
Corporate Office, Noida (U.P.)
3. Shri R.K .Aggarwal Director (Technical)

4. Capt. Pavan Kumar Kaul Director (Marketing)

Shri Tek Chand

Company Secretary & Compliance Officer
National Fertilizers Limited
A-11, Sector-24, Noida-201301
Distt. Gautam Budh Nagar (U.P.)
Investors Complaints E-mail ID : [email protected]
UNIT HEADS
Units
Contact Person Tel. No.
:01887-220543 (o)
Tel
Shri. B.G.Singh :01887-220510 (R)

Nangal
General Manager-I/c
Fax : 01887-220541
Email : [email protected]
Tel : 0164-2760200,2270220 (O)
Shri. K.B. Verma : 0164-2270137 (R)

Bathinda
Executive Director
Fax : 0164-2270463,2760270
Tel : 0180-2652676,2652551 (O)
Shri. R. K. Bhatia : 0180-2665508.2666404 (R)

Panipat Executive Director
Fax : 0180-2652515,2652874
Tel : 07544-273101 (O)
: 07554-273102 (R)
Shri S. M. H. Rizvi
Vijaipur
Executive Director
Fax : 07544-273109
PLANTS
NFL Operating Plants are at:
National Fertilizers Limited,

Vijaipur,
Distt. Guna,
Madhya Pradesh-473111.
Email: [email protected]
Fax : 07544 - 273089, 273109
Tel. : 91- 7544 - 273101, 273090
Vijaipur Plant

Gohana Road,
Panipat,
Haryana-132106.
Fax : 0180- 2652515
Tel. : 0180- 2652481 to 485, &
0180- 2655570
Panipat Plant

Sibian Road,
Bathinda,
Punjab-151003.
Fax : 0164- 2270463; 0164-
2271270
Tel. : 0164- 2270220/2271200
Bathinda Plant

Naya Nangal,
Distt. Ropar,
Punjab-140126.
Fax : 0187-220541
Tel.
Nangal Expansion Plant

FINANCIAL PERFORMANCE
NFL DEVELOPS NEEM-COATED UREA
National Fertilizers Limited (NFL), a premier manufacturer of Nitrogenous

Fertilizers in the country, has made strides in developing a process for
manufacture of Neem-Coated Urea on commercial scale.
NFL has made efforts to harness unique properties of Neem in regulating

release of Nitrogen to crops when mixed and applied with urea into soil and
making available to farmers a more efficient Nitrogenous fertilizer in the form
of its Neem-coated urea primarily based upon research work conducted by
Scientists of Indian Agricultural Research Institute, New Delhi.
‘Fertilizers’ being the costliest input required for commercial crops, it has
always been endeavour of various agencies, including Government /
Agriculture Universities and other Extension Agencies / manufacturers to
develop various measures for enhancing nutrient use, efficiency of fertilizers
and crop yields to sustain vital food chain and bring about economy in inputs
costs. Since Urea is the richest source of Nitrogen Nutrient (46%N) among the
prevalent fertilizers, it has drastically low Nitrogen use efficiency i.e. in the
range of 20-40% when applied in low-land condition, particularly to Paddy
crop as most of the Nitrogen is lost due to processes like leaching of urea with
water, volatilization loss of ammonia and de-nitrification under reduced
conditions. NFL, thus, has embarked upon development of Neem-Coated Urea
by using Neem oil water emulsion out of various combinations of mixing /
coating of Neem material available.
After carrying out extensive laboratory as well as field studies, NFL has found
out that Neem-coated urea produced with a thin film of Neem oil-water
emulsion of specified concentration has resulted in enhanced shelf-life,
reducing caking of material during storage and increased nitrogen availability
to crops at the time of their growth and hence significantly contributing
towards better crop yields. It has further been reported that the process
developed by NFL in producing Neem-coated urea involves marginally higher
costs.
(2)
In order to test the efficacy of Neem-coated urea so developed, under the field
conditions, NFL has laid 50 Field Demonstrations on Paddy crop during
Kharif-2002 season, covering extensive area spreading up to Panipat, Rohtak
and Karnal in the State of Haryana, Meerut and Muzaffarnagar in U.P. and
Bathinda in Punjab. At Meerut / Muzaffarnagar, Panipat and Bathinda,
demonstrations were laid under the expert guidance and supervision of
Extension Wing / KSKs of respective Agriculture Universities. The results
obtained under the general parameters, including increase in yield, insect pest
control and general crops stand have been very encouraging with an average
savings to the farmers to the extent of around Rs.700/- per Acre by way of
increased yields and reduction in expenses towards use of insecticides in
Paddy crop. Besides above, NFL has distributed around 1,500 Tonnes of
Neem-coated urea to farmers through its dealers’ network in Punjab &
Haryana to adjudge general response of farmers as compared to normal urea
being marketed by the Company. The general response obtained from the
farmers indicated a healthy crop stand, reduction in insects / pest attacks and
increase in yield, thus, reflecting a general appreciation for the new product
developed by NFL.
During the current Rabi season, NFL proposes to lay more Field
Demonstrations on the farmers fields for crops like Sugarcane, Potato &
Wheat with reduced doses of Nitrogen to the extent of 80% through Neem-
Coated Urea to compare with full recommended dose through normal urea and
to establish benefits accrued thereupon in terms of increased productivity.
NFL further proposes to distribute increased quantity of Neem-coated urea to

farmers through its extensive dealers’ network in Punjab, Haryana & U.P. to
further assess benefits of Neem-coated urea over normal urea with a view to
economize on input costs to the advantage of farmers.
NFL has a proven track record of over two decades in the areas of Project
Management, Plant operation and Maintenance etc. NFL provides its expertise in
the areas of specialised services.
Maintenance of Rotary Equipments
Heavy Equipment Erection
NFL is well known for taking up assignments in India and abroad in the fields
of:
 Commissioning Activities of Plant/ Equipments

 Heavy Equipment Erection supervision
 Complete operation of Chemical plants on a continuous basis
 Overall maintenance of plants; specialised maintenance and repair
services/shutdown/turn around jobs.
 Special maintenance & repair services for rotatory equipment, like pumps,
compressors, turbines etc.
 Energy Audits leading to energy savings
 Safety Audit Services
 Design and monitoring of Environment Protection Systems
 NDT, Corrosion and RLA services
 Laboratory Services
 Training of technical manpower in Operation Maintenance and Safety
Management
 Consultancy in Project Management
Assignments Taken Abroad
 Assistance in checking the operatability and maintainability of PETROBRAS

Fertilizer Plant in Brazil and training of Specialist Welders.
 Assistance in operation and maintenance of Ammonia and Methanol Complex of
Gulf
Petrochemical Industries Co., Bahrain.
 Assistance in operation and maintenance of Ammonia Plant of NAPETCO, Libya
through UNIDO.
NFL Provides expertise in the area of specialised services.
List of select Assignments & Clients. Undertaken By NFL in Past Years
International Assignments
Assignments Organisation
Assistance in checking the operatability & PETROBRAS fertilizer plant in
maintainability of Fertilizer Plant & training of Brazil.
specialised Welders.
Assistance in the operation & maintenance of Gulf Petro chemical
Ammonia & Methanol complex plants. Industries
Co., Bahrain.
Assistance in the operation & maintenance of NAPETCO Libya (through
Ammonia Plant UNIDO)
Commissioning supervision of three fuel oil based China, through Toyo Engg.
fertilizer plants in China. Corporation, Japan.
Assistance in the Commissioning of Ammonia/Urea Venezuela through M/s.Snam
plants. Progetti, Italy.
Contracts/MOU under negotiation with for Specialised Services
 Engineers India Ltd.

 Petroleum India International
 National Productivity Council
Services Rendered in India

SERVICES RENDERED IN INDIA
Assignments Carried Out Organisations in India

Plant start-up commissioning, operation Gujarat Narmada Valley Corpn.Gujrat
and Maintenance services.
Hindustan Fertilizer Corpn.West Bengal
Paradeep Phosphates Ltd. Orissa.
Compressor Stations under SPIE-CAPAG
/NKK/TOYO CONSORTIUM on HBJ gas
pipeline.
Operation of various Gas Stations of Gas
Authority of India Ltd.(GAIL)
Numaligarh Refineries Ltd.,Assam
Indian Oil Refinery,Panipat,Haryana
Haldia Petrochemicals, West Bengal through

Toyo Engg.Corporation (TEC) Japan.
Chambal Fertilizers, Gadepan through TEC
Japan.
Assistance in the preparation of Ministry of Programme Implementation
comprehensive manual on project Govt. of India.
implementation.
Formulation of Award Scheme for Fertilizer plants at National level.
excellence in project implementation
and formulation of Award scheme.
Designing Incentive and Motivation Public Sector Fertilizer Companies in India.
Schemes.
Preparation of Corporate Plan. Paradeep Phosphates and Chemicals Ltd.,
(PPCL)
Preparation of Corporate Plan. Services Projects & Development India Ltd.
with regard to investigation of industrial
accidents/ mis-haps,
Organisation restructuring. Hindustan Fertilizer Corporation New Delhi.
Computerisation of maintenance A.P. Rayons Ltd., Andhra Pradesh.

system
Assistance in the preparation of Ministry of Programme Implementation,
comprehensive manual on project Govt. of India.
implementation.
Award Scheme for excellence in project Fertilizer Companies at National level.
implementation and formation of award
scheme for excellence in annual
performance.
NFL IS THE PROUD RECIPIENT OF SEVERAL AWARDS IN VARIOUS AREAS
PRODUCTIVITY AWARDS
AWARDS YEAR UNIT
National Productivity Award for Bio- 2002-03 Vijaipur

Fertilizers
FAI Award for Best Overall Performance 1999-00 Vijaipur

of an Operating Nitrogenous
Fertilizer unit
Productivity Award by NPC 1997-98 Bathinda
Certificate of Merit from NPC 1997-98 Bathinda
Certificate of Merit by NPC 1996 Nangal
Commendation certificate for 1996 Vijaipur

outstanding work in Energy
Conservation
by the Ministry of Power, Govt. of India
Second Best Productivity Award by 1993-94 Panipat
Second Best National Productivity Award 1993-94 Panipat

by National Productivity
Council (NPC)
Certificate for Productivity Improvement 1991-92 Bathinda

by National Productivity
Council
OTHER PRESTIGIOUS
AWARDS & RECOGNITIONS
AWARDS YEAR UNIT
Golden Peacock Innovation Award from 2005 Panipat

IOD, N. Delhi.
National Energy Conservation Award 2005 Vijaipur-I

from the Ministry of Power
National Energy Management Award 2005 Vijaipur

from CII
Golden Peacock Innovation Award from 2005 Panipat

IOD
Energy Conservation Award from the 2000 Vijaipur

Ministry of Power.
Best Energy Conservation 1999-00 Panipat

Implementation Gold Award by
Institutional
Green Land Society, Hyderabad.
National Energy Conservation Award by 1995 Vijaipur

Ministry of Power, G.o.I
Udyog Excellence Gold Medal and 1995 Bathinda

Citation by Industrial Economic
Forum, G.o.I
Corporate Performance Award by 1993-94 NFL

Economic Times.
First Prize in Excellence in Project Mgt. 1989 Vijaipur

By Ministry of Program
Implementation.
POLLUTION CONTROL AWARDS
AWARDS YEAR UNIT
Silver Award for outstanding 2004-05 Vijaipur

achievement in Environment
Management by M/s Green tech
Foundation, Hyderabad
Madhya Pradesh State Level Annual 1999-00 Vijaipur

award on Environment
11th Indira Gandhi Memorial National 1998-99 Vijaipur

Gold Award for Environmental &
Ecological Implementation
Best Pollution Control Implementation 1998-99 Vijaipur

Gold Award from International Green
land Society, Hyderabad
Environment Protection Award by 1995-96 Vijaipur

Fertilizer Association of India
Environment Protection Award by 1991-92 Vijaipur

Fertilizer Association
of India
SAFETY AWARDS
AWARDS YEAR UNIT
Prashansha Patra by National Safety 2005 Vijaipur

Council of India
Suraksha Puruskar for adopting 2004 Bathinda

Occupational Safety and Health
Management Systems from NSC.
Yogyata Praman Patra – 2001 award by 2003-04 Bathinda

NSC
National Safety Award – 2002 2003-04 Nangal

National Safety Award – 2002(Runner 2003-04 Bathinda
up)
Punjab State Safety Award – 2003 2003-04 Nangal
Yogyata Praman Patra – 2003 2003 Bathinda
Prashansa Puraskar – 2000 award by 2000 Bathinda

NSC
Haryana State Safety & Welfare Award 1999-00 Panipat
National Safety Award 1999 & 2000 Bathinda
Yogyata Praman Patra by NSC, Mumbai 1998-99 Vijaipur
Safety awards (5 Nos.) by Punjab Govt. 1998 & 1999 Bathinda
Award for Excellence in Safety by FAI 1997-98 Nangal
Award from National Safety Council, USA 1997 Panipat
British Safety Council Safety Award 1997 Nangal
Award of Honour by NSC,USA 1996 Nangal
British Safety Council Award 1996 Nangal
Sarv Sresht Safety Award 1994 & 96 Vijaipur
Longest Accident Free Period by NSC, 1992 Nangal

USA
Longest Accident Free Man days by NSC, 1990 Panipat

USA
EMPLOYEES SKILL AWARDS
AWARDS YEAR UNIT
Punjab State Krit Veer Award 2003 Bathinda
Krit Veer Award to 1 employee by 2002 Nangal

Punjab Govt.
Vishwakarma Rashtriya Puraskar from 1999 Bathinda

the Ministry of Labour & Employment,
G.o.I
Krit Vir awards to 13 employees by 1995, 96 & 98 Bathinda

Punjab Govt.
Krit Vir awards to 13 employees by 1995 & 1996 Nangal

Punjab Govt.
Vishwakarma Rashtriya Puraskar to 1993 Bathinda

three employees.
Krit Award to 6 Employees by Punjab 1993 Bathinda

State Labour Deptt.
Vishwakarma Rashtriya Puraskar to one 1992 Nangal

Employee by Ministry of Labour, G.o.I
Krit Vir Award to 5 employees by Punjab 2002 Nangal

State Labour Deptt.
Prime Minister’s Shramvir Award to four 1984 Panipat

employees for Unconventional repairs of
Air Compressor Blades
ISO CERTIFICATIONS
PLANTS / OFFICE CERTIFICATION AWARDED SINCE
Vijaipur Plant ISO-9002/ISO-14001 1997-98/98-99
ISO 9001:2000 2003-04
Panipat Plant ISO-9002/ISO-14001 1999-00/2000-01
ISO 9001:2000 2003-04
OHSAS-18001 2004-05
Bathinda Plants ISO-9002/14001/18001 2000-01/2001-02/03-04
ISO 9001:2000 2003-04
OHSAS-18001 2003-04
Nangal Plant ISO 9001: 2000 2002-03
ISO-14001 2001-02
CO/CMO ISO 9001:2000 2002-03

The Cornerstone of NFL's
meritorious track record is its human
resource. At NFL, we firmly believe
that our employees are our most
valued resources.
NFL has always been a forerunner in

the fertilizer sector and this has been
made possible through the company's
thrust on human resources
development.
NFL offers a host of exciting career/opportunity to dynamic/young/qualified

individuals in Production/Maintenance/Marketing/Finance and Human
Relations. NFL has three induction levels Management Trainees/Technicians
& Operator Apprentices & Commercial Apprentices. Developmental and
functional programs based on training needs, as judged in the area of updation
of technical supervisory and managerial skills along with specialized
requirements from time to time.
The services which have been developed in the area of Training and
Development within the organization are readily available to other
organizations within the laid policies and procedures of the Company.
Caring Organization
The Company's concern for its employees is reflected through its efforts in the
area of health, safety and welfare of its employees. NFL not only meets the
statutory obligations, but has undertaken numerous voluntary measures beyond
the statutory requirements. The Company has well equipped hospitals,
canteens recreation clubs, housing facilities, schools and safe working
environment. The onus of NFL's high production levels lies on harmonious
and cordial industrial relations at all its manufacturing Units. The Company
has not lost even a single man day on this account.
To cater to the needs of training and development, NFL has a well defined
and well designed training plan. Major activities undertaken by HRD are:
Recruitment and Training of Trainees at various levels viz. officers,

supervisors and workers.
Organizing of developmental and functional programs based on training needs,
as judged in the area of updation of technical, supervisory and managerial
skills along with specialized requirements from time to time.
Imparting of training to people from other organisations within India and

abroad.
Formulate policies regarding manpower deployment on hire to other

organisations within India and abroad.
The services which have been developed in the area of Training and
Development within the organisation are readily available to other
organisations within the laid policies and procedures of the Company.
MANPOWER STATUS AS ON 28.02.2010
UNIT Total Employees Executives Non Executives
NANGAL 1510 342 1168

BATHINDA 873 335 538
PANIPAT 904 374 530

VIJAIPUR 842 394 448
CMO 458 316 142
CO 173 141 32
TOTAL 4760 1902 2858
PERCENTAGE 40.02 59.98
The complete farmer satisfaction
through best services is the drawing
force of NFL’s marketing, strategy.
The Company has expanded its
programme from improving the crop
productivity at farm level to the
overall development of the farming
community.
To provide to the farmers high

quality products in the right time,
NFL has an extensive and integrated
marketing network.
The Company provides

comprehensive capsules of various
fertilizer promotion activities, which
includes agronomical programmes,
use of extension media, publicity and
farmer development programmes.
NFL's area of operation
Soil testing services are provided

free of cost to the farmers to advocate
the balanced use of fertilizers at
economic levels. One mobile soil-
testing unit caters to the need of the
remotest of remote farmers in far
areas and provide technical guidance
to the farmer at field level. Soil testing services
Other farm services include
fertilizer demonstration on
cultivator’s fields, field days,
fertilizer/farmers Mela, pilot
project, adoption of villages etc.
NFL also conducts various training
programmes to educate the farmers
on the balanced use of fertilizer and
its timely application besides
providing guidance on pesticides & Educating the farmers
fungicides.
NFL’s Farmer Training Centre at Vijaipur caters to the training needs of small
and marginal farmers, particularly those belonging to tribal areas in the State
of Madhya Pradesh. The training schedules are tailor made to suit the
requirement of the farmers.
To commemorate the 50th anniversary of India’s independence, the Company

has undertaken a Sustainable Integrated Rural Development Programme,
titled ‘Sulabh, National Fertilizer Development Initiative for Tribal Areas
(SUNADITA). The mission of the project is to help the farming community in
eradicating poverty and empowering people with self sustaining process of
economic well being.
KISAN UREA
Kisan Urea is a highly concentrated, solid, nitrogenous fertilizer containing 46%

of nitrogen. It is completely soluble in water; hence nitrogen is easily available
to crops. It contains nitrogen in amider form which changes to ammonical form
and is retrieved by soil colloides for longer duration. Urea is available in
granular form and be applied by drill and broadcasting.
Kisan Urea is ideally suitable for all types of crops and for foliar spray which
instantly removes nitrogen deficiency. Kisan Urea also has a strong and long
lasting effect on crop resulting in bumper crops. Carbonic acid present in Kisan
Urea helps in absorption of other nutrients like phosphate and potash by roots of
crop.
FOOD GRAINS CASH CROPS
Rice Sugarcane
Wheat Cotton
Millets Jute
Jawar Fodder
Bajra
Maize
HORTICULTURE VEGETBLES AND OIL SEEDS
Apple Castor
Banana Cotton Seeds
Grapes Groundnut
Mangoes Mustard
Orange Sunflower
Papaya Sesame
Pineapple Soya been
Onion
Potatoes
Tomatoes
Mushroom
Cabbage
Cauliflower
NFL has a long tradition of
nurturing the environment in and
around its manufacturing Units.
At NFL, we believe in sustainable
development without degrading
the environment and are fully
committed to our responsibility to
the Society. In line with our
commitment to this object, we
have installed with state of art
effluent treatment facilities at all
our Units. At NFL Vijaipur the
Company has adopted cleaner
technology to minimise generation
of pollutants.
All the pollutants generated in the manufacturing process are treated at source
and pollution control schemes have been incorporated at the
inception stage itself.
NFL meets the standards prescribed by the Central and State Pollution Control
boards and ensures that our Pollution Control measures are upgraded from time
to time. The major facilities available at NFL's operating Units are :
a) Installation of NOX Abatement Scheme along with associated

sodium nitrite/nitrate plants for Nitric Acid Plant at Nangal.
b) Provision of Thermal Urea Hydrolyser at Nangal.
c) Facilities for cyanide and chromate treatment of effluent from

carbon recovery and cooling towers sections at Nangal.
d) Provision of acoustic granulators for reducing dust emissions

from Prilling towers at Panipat & Bathinda.
e) Provision of additional electrostatic precipitators on all the coal fired

boilers at Panipat, Bathinda and Nangal.
The Company has also adopted an extensive Afforestation programme and has
planted more than 1.5 lakh trees of different species. The once barren stretch of
land around NFL Vijaipur Unit in Madhya Pradesh is now a lush green belt
with about 1.5 lakh trees-which stands testimony to the Company's
Commitment to environment preservation.
ENVIRONMENTAL POLICY:-
NFL is committed to achieve Pollution Free Environment and Balanced

Ecology by adopting Environmental Management System through:
1) Environmental Management System as Corporate Policy with continued

efforts for improvement.
2) Training and Motivation of employees including contractors for awareness
on environment and ecology.
3) Assessing environmental aspects before starting a new project or scheme
and before decommissioning any installed capacity.
4) Advising and educating customers in the safe use, transportation, storage
and disposal of products sold by the company.
5) Operation of manufacturing plants and utilities in efficient manner to
minimise the waste generation and consequent adverse environmental
impact.
6) Improvement and development in process technology.
7) Development and maintenance of emergency management plants.
8) Conducting regular environmental audits and compliance with the Statutory
and legal requirements.
QUALITY POLICY:-
NFL is committed to serve the farming community and other customers to their
satisfaction by manufacturing and marketing high quality fertilizers and
industrial products through:
1) Process improvement and development.

2) Economy in use of inputs and optimization of utilization efficiency.
3) Safety of plant and personnel.
4) R&D activities for energy saving and process improvement.
5) Pollution control and ecological balance.
6) Organizational environment of group initiative, innovation and
productivity.
7) Human resource development.
8) Compliance with statutory laws and regulations.
SAFETY, HEALTH AND ENVIRONMENT POLICY:-
National Fertilizers Limited Bathinda is totally committed to conduct all its

activities in harmony with society and nature without compromising on the
health and safety of employees as well as the people living around the complex.
A full-fledged Safety, Health and Environment protection department has been
set up in the unit to achieve fulfilment of its statutory obligations concerning
prevention of personal injuries, maintaining safe working conditions and
protection of environment.
For effective implementation of the Safety, Health and Environment(SHE)

policy, the following steps have been incorporated in the working system:
1) All concerned departments/sectional heads shall be responsible to comply

with statutory requirements and to maintain safety of the plant, man,
machinery and environment.
2) Each and every employee shall observe the safe system of work and
follow proper safety work permit system while carrying out maintenance
jobs inside the factory.
3) Workers shall be encouraged to participate in the suggestion schemes,
good housekeeping competitions and celebration of National Safety Day
and Fire Service Day.
4) A Central Safety Committee shall be constituted with proper
representation from workers and management for monitoring and
improving health and safety standards of all the employees and their
families.
5) Safety consciousness of employees shall be evaluated in their appraisal
report.
6) All contractors, sub-contractors, transporters and other agencies entering
NFL premises for executing any work shall be instructed to follow
prescribed safety procedure framed by the company. It shall also form
part of their contract work order.
7) Safety, Health and Environment performance shall be covered suitably in
the annual report of the company.
8) Safety Audits and Risk Analysis shall be carried out at regular intervals
and recommendations of the audit team shall be implemented.
9) While procuring plant and equipment machinery, Safety, Health and
Environmental aspects shall be given due priority.
10) Mental as well as physical fitness of all the employees shall be
ensured. Periodical medical check up of all employees shall be carried
out.
11) Responsibility and accountability of employees towards safety,
health and environment shall be raised by providing appropriate
information and training through Safety literature, instructions and other
different forms of media for continual improvement and development of
their Safety, Health and Environment standards.
LOGO OF NATIONAL FERTILIZERS LIMITED
CHAPTER- 2
INTRODUCTION
TO
PROJECT
EMPLOYEE WELFARE
Welfare includes anything that is done for the comfort and improvement
of employees and is provided over and above the wages. Welfare helps in
keeping the morale and motivation of the employees high so as to retain the
employees for longer duration. The welfare measures need not be in monetary
terms only but in any kind/forms. Employee welfare includes monitoring of
working conditions, creation of industrial harmony through infrastructure for
health, industrial relations and insurance against disease, accident and
unemployment for the workers and their families.
Employee welfare entails all those activities of employer which are directed
towards providing the employees with certain facilities and services in
addition to wages or salaries.
In general these are the benefits that an employee must receive from his/her
company, like allowances, housing for those companies which provide
transportation, medical, insurance, food and some other way where the
employee has right to demand.
Employee welfare defines as “efforts to make life worth living for workmen”.
These efforts have their origin either in some statute form formed by the state
or in some local custom or in collective agreement or in the employer’s own
initiative.
PRINCIPLES OF EMPLOYEE WELFARE SERVICE
The principles which are to be followed in setting up a employee welfare

service are as follows:-
 The service should satisfy real needs of the workers. This means that the
manager must first determine what the employee’s real needs are with
the active participation of workers.
 The service should be such that can be handled by cafeteria approach.
Due to the differences in sex, age, marital status, number of children,
type of job and the income level of employees, there are large
differences in the choice of a particular benefit. This is known as the
cafeteria approach. Such an approach individualises the benefit system,
though it may be difficult to operate and administer.
 The employer should not assume a benevolent posture.
 The cost of the service should be calculated and its financing should be
established on a sound basis.
 There should be periodical assessment or evaluation of the service and
necessary or timely action should be taken on the basis of feedback.
The purpose of the benefits is to increase the economic security of the

employees.
Types of Employee Welfare Services
Safety Services
Prevention of accidents is an objective which requires no explanation.
The costs of accidents are enormous in suffering to the injured, in reduction or
loss of earnings, in disabilities and incapacities which afflict those involved
and in compensation, insurance and legal costs, in lost time, filling in reports
and attending to enquiries, and in spoilage of materials, equipment and tools to
management.
Accidents are the consequence of two basic factors: technical and
human. Technical factors include all engineering deficiencies, related to plant,
tools material and general work environment. Thus, for example, improper
lighting, inadequate ventilation, poor machine guarding and careless
housekeeping are some hazards which may cause accidents. Human factors
include all unsafe acts on the part of employees. An unsafe act is usually the
result of carelessness.
Young and new employees, because of their difficulty in adjusting to
the work situation and to life in general, also have many more accidents than
do old and nature workers.
The Phenomenon of Accident Proneness. Some persons believe wrongly in
the theory that certain individuals are accident prone, that is , they have some
personality trait as opposed to some characteristic of the environment which
predisposes them to have more accidents than others in work condition where
the risk of hazards is equal to all.
Components of a Safety Service
Among the many components of a safety service the following have
proved effective when applied in combination:

 Appointment of safety officer
In big organizations, the appointment of a safety officer to head the safety
department is a must. In small organizations, the personnel manager may look
after the functions of this department. The head of the safety department, who
is usually a staff man, is granted power to inspect the plant for unsafe
condition, to promote sound safety practices (through posters and safety
campaigns), to make safety rules, and to report violations to the plant manager.
 Support by line management
The head of the safety department, whether enjoying a staff or a functional
position, by him, cannot make a plan safe. His appointment lulls line
management into assuming that all its safety problems have been solved.
 Elimination of hazards
Although complete elimination of all hazards is virtually an
impossibility but following steps can be taken to help reduce them:
 Job safety analysis
All job procedures and practices should be analysed by an expert to discover
hazards. He should then suggest changes in their motion patterns, sequence
and the like.
 Placement
A poorly placed employee is more apt to incur injury than a properly placed
employee. Employees should be placed on jobs only after carefully estimating
and considering the job requirements with those which the individual
apparently possesses.
 Personal protective equipment

Endless variety of personal safety equipment is available nowadays which can
be used to prevent injury.
 Safeguarding machinery
Guards must be securely fixed to all power driven machinery.




 Materials handling
Though often ignored, the careless handling of heavy and inflammable
materials is an important source of several injuries and fire.
 Hand tools
Minor injuries often result from improperly using a good tool or using a poorly
designed tool. Therefore, close supervision and instruction should be given to
the employees on the proper tool and its usage.
 Safety training, education and publicity
Safety training is concerned with developing safety skills, whereas safety
education is concerned with increasing contest programmes, safety campaigns,
suggestion awards, and various audiovisual aids can be considered as different
forms of employee education.
 Safety inspection
An inspection by a trained individual or a committee to detect evidence of
possible safety hazards (such as poor lighting, slippery floors, unguarded
machines, faulty electrical installations, poor work methods and disregard of
safety rules) is a very effective device to promote safety.
Health Services
The prevention of accident constitutes only on segment of the function of
employee maintenance. Another equally important segment is the employee’s
general health, both physical and mental.
There are two aspects of industrial health services:-
 Preventive
 Curative
The former consists of pre-employment and periodic medical
examination, removal or reduction of health hazards to the maximum
extent possible, Surveillance over certain classes of workers such as
women, young persons and persons exposed to special risks.
Counselling Services
An employee very often comes across problems which have emotional
content. For example, he may be nearing retirement and feeling insecure or he
may be getting promotion and feeling hesitant to shoulder increased
responsibility or he may be worried due to some family problem.
Employee Welfare in India
The chapter on the Directive Principles of State Policy in our
Constitution expresses the need for labour welfare thus:-
 The State shall strive to promote the welfare of the people by securing
and protecting as effectively as it may a social order in which justice,
social, economic and political, shall inform all the institutions of the
national life.
 The State shall, in particular, direct its policy towards securing:
 That the citizens, men and women equally, have the right to an adequate
means of livelihood;
 That the ownership and control of the material resources are so
distributed as to sub serve the common good.
o The State shall make provision for securing just and humane
conditions of work and for maternity relief.
Factories Act, 1948
The principal Act to provide for various labour welfare measures in
India is the Factories Act, 1948. The Act applies to all establishments
employing 10 or more workers where power is used and 20 or more workers
where power is not used, and where a manufacturing process is being carried
on.
Employee Welfare Officer
Section 49 of the factories act provides that in every factory wherein
500 or more workers are ordinarily employed the employer shall appoint at
least one welfare officer.
The welfare officer should possess; (i) a university degree; (ii) degree
or diploma in social service or social work or social welfare from a recognized
institution; and (iii) adequate knowledge of the language spoken by the
majority of the workers in the area where the factory is situated.
¯ Supervision
¯ Counselling workers
¯ Advising management
¯ Establishing liaison with workers
¯ Working with management and workers to improve productivity.
¯ Working with outside public to secure proper enforcement of various acts.
Health of Employees
 Cleanliness. Every factory shall be kept clean by daily sweeping or washing
the floors and work rooms and by using disinfectant where necessary.
 Disposal of wastes and effluents. Effective arrangements shall be made for
the disposal of wastes and for making them innocuous.
 Ventilation and temperature. Effective arrangements shall be made for
ventilation and temperature so as to provide comfort to the workers and
prevent injury to their health.
 Dust and fume. Effective measures shall be taken to prevent the inhalation
and accumulation of dust and fumes or other impurities at the work place.
 Artificial humidification. The State Government shall make rules prescribing

standard of humidification and methods to be adopted for this purpose.
 Overcrowding. There shall be in every work room of a factory in existence

on the date of commencement of this act at least 9.9cubic meters and of a
factory built after the commencement of this act at least 4.2 cubic meters of
space for every employee.
 Lighting. The State Government may prescribe standards of sufficient and

suitable lighting.
 Drinking Water. There shall be effective arrangement for wholesome

drinking water for workers at convenient points.
 Latrines and urinals. There shall be sufficient number of latrines and urinals,
clean, well-ventilated, conveniently situated and built according to prescribed
standards separately for male and female workers.
 Spittoons. There shall be sufficient number of spittoons placed at convenient

places in the factory.
Safety of Employees
 Fencing of machinery. All dangerous and moving parts of machinery shall
be securely fenced. Screws, bolts and teeth shall be completely encased to
prevent danger.
 Work on or near machinery in motion. Lubrication or other adjusting
operation on moving machinery shall be done only by a specially trained
adult male worker.
 Employment of young persons on dangerous machines. No young person
shall be allowed to work on any dangerous machine (so prescribed by the
state government) unless he is sufficiently trained or is working under the
supervision of knowledgeable person.
 Device for cutting off power. Suitable device for cutting of power in
emergencies shall be provided.
 Hoists and lifts. These shall be made of good material and strength,
thoroughly examined at least once in every six months and suitably protected
to prevent any person or thing from being trapped.
Welfare of Employees
Chapter V of the factories Act contains provisions about the welfare of
employees. These are as follows:
 There shall be separate and adequately screened washing facilities for the use
of male and female employees.
 There shall be suitable places provided for clothing not worn during working
hours and for the dying of wet clothing.
 There shall be suitable arrangement for all workers to sit for taking rest if
they are obliged to work in a standing position.
 There shall be provided the required number of first-aid boxes or cupboard
(at the rate of one for every 150 workers) equipped with the prescribed
contents readily available during the working hours of the factory.
 The State Government may make rules requiring that in any specified factory
employing more than 250 employees a canteen shall be provided and
maintained by the occupier for the use of the employee.
 There shall be provided sufficiently lighted and ventilated lunch room if the
number of employees ordinarily employed is more than 150.
Restrictions in the Factories Act on the employment of young persons:
1. Prohibition as to employment of children (Section 67)
No child who has not completed his fourteenth year shall be required or
allowed to work in any factory.
2. Employment of Children and Adolescent (Section 68)
A child who has completed his fourteenth year or an adolescent shall not be
required or allowed to work in any factory unless following conditions are
fulfilled:
 The manager of the factory has obtained a certificate of fitness granted
to such young
 While at work, such child or adolescent carries a token giving reference
to such certificate.
3. Certificate of fitness (Section 69)
Before a young person is employed in the factory, a certifying surgeon has to
certify that such person is fit for that work in the factory.
Welfare Funds
In order to provide welfare facilities to the workers employed in mica,
iron, ore, manganese ore and chrome ore, limestone and dolomite mines and in
the beedi industry, the welfare funds have been established to supplement the
efforts of the employers and the State Government under respective
enactments.
The welfare measures financed out of the funds relate to development
of medical facilities, housing, supply of drinking water, support for education
of dependents and recreation, etc.
Voluntary Benefits
Benefits are also given voluntarily to workers by some progressive
employers. These include loans for purchasing houses and for educating
children, leave travel concession, fair price shops for essential commodities
and loans to buy personal conveyance.
Machinery Connected with Employee Welfare Work
1. Chief inspector of Factories
It is the duty of the Chief inspector of factories (who generally works under
the administrative control of the labour commissioner in each state) to ensure
enforcement of various provisions of Factories Act i8n respect of safety, health
and welfare of workers.
2. Central Labour Institute
The institute was set up in Bombay in 1966 to facilitate the proper
implementation of the Factories Act, 1948; to provide a centre of information
for inspectors, employers, workers and others concerned with the well being of
industrial labour and to stimulate interest in the application of the principles of
industrial safety, health and welfare.
3. National Safety Council
The National Safety Council was wet up on 4th March, 1966 in Bombay at the
initiative of the Union Ministry of Labour and Rehabilitation, Government of
India, as an autonomous national body with the objective of generating
developing and sustaining a movement of safety awareness at the national
level.
4. Director General of Mines Safety
The Director General of Mines Safety enforces the Mines Act, 1952. He
inspects electrical installation and machinery provided in the mines and
determines the thickness of barriers of 2 adjacent mines in order to prevent
spread of fire and danger of inundation.
Appraisal of Welfare Services
 One of the main obstacles in the effective enforcement of the welfare
provisions of the Factories Act has been the quantitative and qualitative
inadequacy of the inspection staff.
 At present, a labour welfare officer is not able to enforce laws
independently because he has to work under the pressure of
management.
 Women workers do not make use of the crèche facilities either because
they are dissuaded by the management to bring their children with them
or because they have to face transport difficulties.
National Commission on Employee Recommendations

 The statutory provisions on safety are adequate for the time being
effective enforcement is the current need.
 Every fatal accident should thoroughly be enquired into and given wide
publicity among workers.
 Employers should play a more concerted role in safety and accident
prevention programme and in arousing safety consciousness.
 Safety should become a habit with the employers and workers instead of
remaining a mere ritual as at present.
 Unions should take at least as much interest in safety promotion as they
take in claims for higher wages.
SOCIAL SECURITY
The connotation of the term “Social Security” varies form country to
country with different political ideologies. In socialist countries, the avowed
goal is complete protection to every citizen form the cradle to the grave.
There are some components of Social Security:
 Medical care
 Sickness benefit
 Unemployment benefit
 Old-age benefit
 Employment injury benefit
 Family benefit
 Maternity benefit
 Invalidity benefit and
 Survivor’s benefit
Social Securities may be of two types
 Social assistance under which the State finances the entire cost of the
facilities and benefits provided.
 Social insurance, under the State organizes the facilities financed by
contributions from the workers and employers, with or without a
subsidy from the state.
Social Security in India
At present both types of social security schemes are in vogue in our
country. Among the social assistance schemes are the most important.
The social insurance method, which has gained much wider acceptance
than the social assistance method, consists of the following enactments.
The workmen’s Compensation Act, 1961.
The Employee’s State Insurance Act, 1948.
The employees’ State Insurance Act, 1948.
The Maternity Benefit Act, 1961.
Employees’ compensation Act, 1923
a. Coverage. This Act covers all workers employed in factories, mines,
plantations, transport undertakings, construction works, railways, ships, circus
and other hazardous occupations specified in schedule II of the Act.
The Act empowers the State Government to extend the coverage of the Act by
adding any hazardous occupation to the list of such occupations is schedule II.
 Administration. The Act is administered by the State Government
which appoints Commissioners for this purpose under sec. 20 of the
Act.
 Benefits. Under the Act, compensation is payable by the employer to a
workman for all personal injuries caused to him by accident arising out
of and in the course of his employment which disable him for more than
3 days.
2. Employees’ State Insurance Act, 1948
1. Other than seasonal factories, run with power and employing 20 or more
workers.
2. Administration. The Act is administered by the ESI Corporation, an
autonomous body consisting of representatives of the Central and State
Governments, employers, employees, medical profession and
parliament.
3. Benefits. The Act, which provides for a system of compulsory
insurance, is a landmark in the history of social security legislation in
India.
1. Medical Benefit. An insured person or (where medical benefit bas been
extended to his family) a member of his family who requires medical
treatment is entitled to receive medical benefit free of charge.
2. Sickness Benefit. An insured person, when he is sick, is also entitled to get
sickness benefit at the standard benefit rate corresponding to his average
daily wage.
3. An insured woman is entitled to receive maternity benefit (which is twice
the sickness benefit rate) for all days on which she does not work for
remaining during a period of 12 weeks of which not more than 6 weeks
shall precede the expected date of confinement.
4. The Act makes a three-fold classification of injuries in the same way as is
done in the workmen’s compensation Act.
5. Dependant’s Benefit. If an insured person meets with an accident in the
course of his employment a dies as a result thereof, his dependants, i.e. his
widow, legitimate or adopted sons and legitimate unmarried daughters get
this benefit.
3. The Maternity Benefit Act, 1961
Maternity benefit is one of the important benefits provided under the
Employees State Insurance Act, 1948. Another important legislation in this
respect is the Maternity Benefit Act, 1961. The Act covers only those persons
who are not covered by the Employees State Insurance Act. The Act entitles a
woman employee to claim maternity leave from her employer if she has
actually worked for a period of at least 160 days in the 12 months immediately
preceding the day of her expected delivery.
The act further provides for the payment of medical bonus of Rs. 250
to the confined woman worker.
The committee on the status of women in India 1974 has, therefore,
recommended the following changes in the Act:
1. The administration of the fund should follow the pattern already established
by the ESIC.
2. For casual labour a minimum of 3 months of service should be considered as
qualification service for this benefit.
3. This will provide greater incentive to women workers to participate in trade
union activities.
1. The Payment of Gratuity Act, 1972
2. Coverage. The Act applies to every factory, mine, oilfield, plantation,
port and Railway Company and to every shop or establishment in which
10 or more persons are employed, or were employed, on any day of the
preceding 12 months.
3. Administration. The Act is administered by a controlling authority
appointed by the appropriate Government.
4. Benefits. Under the Act gratuity is payable to an employee on the
termination of his employment after he has rendered continuous service
for not less than five years. The completion of continuous service of
five years is, however, not necessary where the termination of the
employment is due to death or disablement Gratuity is payable at the
rate of 15 days’ wages based on the rate of wages last drawn by the
employee for every complete year of service or part thereof in excess of
six months. But the amount of gratuity payable to an employee shall not
exceed Rs. 3.5 lakh.
5. Source of Funds. Under the Act gratuity is payable entirely by the
Employer. For this purpose is required either (i) to obtain insurance
with the Life Insurance Corporation, or (ii) to establish a gratuity
fund. Thus it is his liability to pay the premium in the first case to make
the contribution in the second case.
Employee welfare has the following objectives:
1. To provide better life and health to the workers.

2. To make the workers happy and satisfied.
3. To relieve workers from industrial fatigue and to improve intellectual,
cultural and material conditions of living of the workers.
The basic features of employee welfare measures are as follows:
1. Employee welfare includes various facilities, services and amenities

provided to workers for improving their health, efficiency, economic
betterment and social status.
2. Welfare measures are in addition to regular wages and other economic
benefits available to workers due to legal provisions and collective
bargaining.
3. Employee welfare schemes are flexible and ever-changing. New welfare
measures are added to the existing ones from time to time.
4. Welfare measures may be introduced by the employers, government,
employees or by any social or charitable agency.
5. The purpose of employee welfare is to bring about the development of the
whole personality of the workers to make a better workforce.
The very logic behind providing welfare schemes is to create efficient, healthy,
loyal and satisfied labour force for the organization. The purpose of providing
such facilities is to make their work life better and also to raise their standard of
living. The important benefits of welfare measures can be summarized as
follows:
 They provide better physical and mental health to workers and thus
promote a healthy work environment.
 Facilities like housing schemes, medical benefits, and education and
recreation facilities for workers’ families help in raising their standards of
living. This makes workers to pay more attention towards work and thus
increases their productivity.
 Employers get stable labour force by providing welfare facilities.
Workers take active interest in their jobs and work with a feeling of
involvement and participation.
 Employee welfare measures increase the productivity of organization and
promote healthy industrial relations thereby maintaining industrial peace.
 The social evils prevalent among the labours such as substance abuse, etc
are reduced to a greater extent by the welfare policies.
The employee welfare schemes can be classified into two categories viz.
statutory and non-statutory welfare schemes. The statutory schemes are those
schemes that are compulsory to provide by an organization as compliance to
the laws governing employee health and safety. These include provisions
provided in industrial acts like Factories Act 1948, Dock Workers Act (safety,
health and welfare) 1986, Mines Act 1962. The non statutory schemes differ
from organization to organization and from industry to industry.
STATUTORY WELFARE SCHEMES
The statutory welfare schemes include the following provisions:
1. Drinking Water: At all the working places safe hygienic drinking water
should be provided.
2. Facilities for sitting: In every organization, especially factories, suitable
seating arrangements are to be provided.
3. First aid appliances: First aid appliances are to be provided and should
be readily assessable so that in case of any minor accident initial
medication can be provided to the needed employee.
4. Latrines and Urinals: A sufficient number of latrines and urinals are to
be provided in the office and factory premises and are also to be
maintained in a neat and clean condition.
5. Canteen facilities: Cafeteria or canteens are to be provided by the
employer so as to provide hygienic and nutritious food to the employees.
6. Spittoons: In every work place, such as ware houses, store places, in the
dock area and office premises spittoons are to be provided in convenient
places and same are to be maintained in a hygienic condition.
7. Lighting: Proper and sufficient lights are to be provided for employees
so that they can work safely during the night shifts.
8. Washing places: Adequate washing places such as bathrooms, wash
basins with tap and tap on the stand pipe are provided in the port area in
the vicinity of the work places.
9. Changing rooms: Adequate changing rooms are to be provided for
workers to change their cloth in the factory area and office premises.
Adequate lockers are also provided to the workers to keep their clothes
and belongings.
10.Rest rooms: Adequate numbers of restrooms are provided to the workers
with provisions of water supply, wash basins, toilets, bathrooms, etc.
NON STATUTORY SCHEMES
Many non statutory welfare schemes may include the following:
1. Personal Health Care (Regular medical check-ups): Some of the

companies provide the facility for extensive health check-up
2. Flexi-time: The main objective of the flexitime policy is to provide
opportunity to employees to work with flexible working schedules.
Flexible work schedules are initiated by employees and approved by
management to meet business commitments while supporting employee
personal life needs
3. Employee Assistance Programs: Various assistant programs are
arranged like external counselling service so that employees or members
of their immediate family can get counselling on various matters.
4. Harassment Policy: To protect an employee from harassments of any
kind, guidelines are provided for proper action and also for protecting the
aggrieved employee.
5. Maternity & Adoption Leave: Employees can avail maternity or
adoption leaves. Paternity leave policies have also been introduced by
various companies.
6. Medi-claim Insurance Scheme: This insurance scheme provides
adequate insurance coverage of employees for expenses related to
hospitalization due to illness, disease or injury or pregnancy.
7. Employee Referral Scheme: In several companies employee referral
scheme is implemented to encourage employees to refer friends and
relatives for employment in the organization.
WELFARE SCHEMES OFFERED BY NFL
SPECIAL DEATH BENEFIT SCHEME
In order to provide better security to the employees of NFL, Bathinda Unit, in

the event of death of any employee, due to any reason during service, all
employees of NFL, Bathinda Unit contribute an amount of Rs. 60/- each from
their salary and the total amount so collected is paid to the nominee of the
deceased employee.
BENEVOLENT SCHEME
In terms of the Benevolent Scheme, in the event of death of an employee of
NFL, under any circumstances during service, all employees of the Company
contribute an amount of Rs. 25/- each from their salary and the total amount so
collected is paid to the widow / widower of the deceased employee. There is,
however, no contribution from the Management side.
The said Scheme was introduced in NFL w.e.f. 1st November 1994.
SPECIAL WELFARE FUND SCHEME

A Special Welfare Fund has been constituted for undertaking welfare projects in
the neighborhood of the Company's Offices or for giving relief to hard cases
inside the establishment. All employees contribute @ Rs. 5/- p.m. towards this
fund with matching grant by the Management subject to minimum of Rs. 1000/-
p.m. for each Unit / office (Revised contribution is w.e.f. 1.10.2009). A
Managing Committee consisting of representatives of Management and
employees administers the fund.
SELF INSURANCE OF OUTSTANDING HOUSE BUILDING
ADVANCE
A self Insurance Scheme for the purpose of providing insurance cover for
outstanding HBA and interest due thereon is in vogue in the Company within
the following parameters:-
a) Employees who have taken HBA from the Company, contribute @ Rs. 2/-
per one thousand per annum w.e.f. 1.4.2000 on the amount of HBA outstanding
and interest due thereon in her name as on 1st April of each financial year,
which is recoverable in 12 equal monthly instalments from the salary of
employees.
b) The fund so generated is utilized to meet the liability of the deceased

employee towards repayment of HBA and interest accrued thereon.
c) For matching contributions on behalf of company, necessary accounting

adjustments are carried out at Corporate Office at the time of death of an
employee with regard to the outstanding amount of HBA along with interest
thereon by debiting Company's share to the respective Unit/Office.
d) The fund is managed by a Governing body comprising of representatives of

Management, Officers' Associations and recognized Unions.
e) The said Scheme was introduced in the Company w.e.f. 1.4.1992.
RELIEF MEASURE TO THE FAMILIES OF THE DECEASED

EMPLOYEES IN CASE OF DEATH / PERMANENT TOTAL
DISABLEMENT WHILE IN SERVICE
a) In the event of death of an employee at any place, other than at the Plant
while on duty, the Company should arrange for the transportation of the body.
b) An amount of Rs. 2500/- shall be payable to the family of the deceased
employee as "Funeral Expenses".
c) All dues should be settled and paid within 15 days from the date of death of
the employee.
d) The Company has introduced a Social Security Scheme, w.e.f. 11.12.1998.

The existing scheme of providing compassionate employment to the dependents
of the deceased employee on account of permanent total disablement / death /
retirement on account of permanent while in service of the Company shall cease
to operate retrospectively w.e.f.11.12.1998. The details of the said Scheme are
as under:
NFL'S SOCIAL SECURITY SCHEME

OBJECTIVE
To provide financial benefit to an employee / nominee of the deceased, as the

case may be, in the event of death / permanent total disablement / retirement on
medical grounds.
ELIGIBILITY
All regular employees (both executives & non-executives) including Company

Trainees appointed against regular posts, who die while in service or suffer
permanent total disablement and cease to be in employment with the company
or are discharged from services by NFL because of permanent total disability on
medical grounds, on or after the date of implementation of the scheme.
EFFECTIVE DATE
The Scheme shall come into force w.e.f. 11.12.1998. The existing Scheme of
providing compassionate employment to the dependents of the deceased
employees on account of permanent total disablement / death / retirement on
medical grounds while in service of the Company shall cease to operate w.e.f.
11.12.1998.
BENEFITS UNDER THE SCHEME
a) On separation from the service of the Company on account of permanent

total disablement / death / retirement on medical grounds, the employee /
beneficiary shall be provided lump sum benefit equivalent to Basic Pay +
DA (restricted to Rs. 15000/- p.m.) for 50% of the left over months of
service limited to 60 months pay, whichever is less, to be released in a
phased manner subject to tax deduction under the Income Tax Law.
b) The minimum amount payable to the beneficiary under the scheme will be
Rs.1.00 (one) lakh irrespective of left over service.
RELEASE OF PAYMENTS
The payment under the Scheme /shall be released, in a phased manner, as
indicated below:
1st Year 40% of admissible amount
2nd Year 20% of admissible amount
3rd Year 20% of admissible amount
4th Year 20% of admissible amount
In the first year, the beneficiary shall be paid 40% of the admissible amount or
Rs. 1.00 lakh whichever is more. Balance amount shall be paid in three equal
annual installments, subject to tax deduction under the Income Tax Law.
CONDITIONS FOR BEING A BENEFICIARY UNDER THE SCHEME

The benefit under the SCHEME shall not be extended in the following
circumstances:
i) Outstanding loans / advances and other dues, if any, taken by the employee
from the Company have not been repaid/settled.
ii) Company's quarter, if allotted, has not been vacated.
GENERAL
a) Clarifications to these rules, as and when required shall be issued by

Personnel Deptt. at Corporate Office suo-moto or on reference received from
any of the Unit/Office;
b) Where any doubt arises as to the interpenetration of these rules, it shall be

referred to Corporate Office for decision which would be final and binding.
REVIEW
The Management reserves the right to withdraw the whole or any part of the
Scheme. It will also have the right to curtail or expand the benefit under the
Scheme, at its sole discretion at any time.
GROUP SAVING LINKED INSURANCE SCHEME

a) The Group Saving Linked Insurance Scheme (GSLIS) of LIC has been
introduced in all Units/Office of the Company providing coverage of insurance
amount ranging from Rs.1.20 Lakh to Rs. 4.00 lakh in the event of death of an
employee. The Scheme provides for a monthly contribution of the total sum
insured, out of which 35% is appropriated towards risk for insurance cover and
65% is credited to Savings Portion.
b) In the event of unfortunate death of a member covered under the Scheme,
the nominee becomes entitled for Life Insurance benefit as applicable to the
member's category plus the amount accumulated with interest in the saving fund
account of the member.
c) In the case of survival up to the normal retirement date or early withdrawal by
resignation or termination of service, the total accumulated amount in the savings
portion with interest lying to the credit of the member in the saving fund account
becomes payable.
d) The contributions paid under the Scheme are eligible for exemption under the
Income Tax Act, 1961 (Section 88.) The Maturity proceeds or claims amount
are also free from Income Tax. The contributions are payable on monthly basis
through deduction from employee's salary.
WELFARE EXCURSION SCHEME
Two Excursion Trips in a Calendar year are arranged by the Club at Units.
However, at Mktg. Division & Corporate Office, where there are no clubs, such
excursion trips are arranged by the concerned Welfare / Industrial Relations
Department. Under the Scheme, the places to be visited during such Excursion
trips are arranged within a distance of 500 kms. Each way from the Township /
place of work. One night stay is also allowed for the said trip. However
Company does not bear any extra expenses on account of boarding / lodging
and the employees make their own arrangement for night stay and avail their
own leave.
Management provides hire charges for two buses for each trip at Units and total
three buses for the two trips at C.O. & CMO.
A sum of Rs. 50/- per member per year is also given to the respective clubs and
where there are no clubs, the amount @ Rs. 50/-per employee availing the
facility is placed at the trips. All other expenses on such trips are, however, met
through the contributions of the employees availing this facility.
LONG SERVICE AWARD SCHEME
In terms of Company's policy regarding grant of long service award, employees
are given an award on completing specified length of service of 10/15/20/25/30
& 35 years, as per details given below:
No. of years of service in the Company Amount of Award
i) On completion of 10 years service Rs. 900/-
ii) On completion of 15 years service Rs. 1150/-
iii) On completion of 20 years service Rs. 1250/-
iv) On completion of 25 years service Rs. 1500/-
v) On completion of 30 years service Rs. 1800/-
vi) On completion of 35 years service Rs. 2200/-
SCHOLARSHIP TO THE OUTSTANDING CHILDREN OF NFL EMPLOYEES

Children of NFL employees studying in schools who secure the first three
positions in Annual Examinations out of the first five (for SC/ST's, first three
position among SC/ST students) in the classes mentioned against each in the
next class tenable for one year provided they continue their studies in the next
class.
Class Amount of Scholarship (per month)
I to IV Rs. 70/- per month w.e.f. 2008-09

Academic sessions.
V to IX Rs. 100/- -do-
X to XI Rs. 150/- -do-
WELFARE AND SPORTS GRANTS / FACILITIES
Following grants / facilities are providing for this purpose:-

SPORTS GRANTS
Under this head, budget allocations are made for the following:-
i) Annual Sports / Welfare Grants.
ii) Grants for holding inter- unit tournaments.
iii) Sponsored Tournament.
Given below are break-up of grants for sports activities:-
Unit Annual Grants Budget for Inter Sponsored T A/DA
for Sports Unit Tournament Tournament
Nangal 80,000 - - 25,000

30,000
Vijaipur 60,000 - - 25,000

60,000
Bathinda/
Panipat 60,000 - - 25,000

30,000
C.O. / CMO 30,000 - - Actual be complied by unit

taking
All Units/ 35,000 15,000 into account no. of games, no.

of
Offices players deputed etc.

Settlement of dues on Retirement/ Resignation/ Death- No Dues Certificate
Every employee of NFL shall retire from service of NFL on attaining the age of
60 years. A notification will be issued at least 3 months in advance by the
concerned Personnel Department to this effort for the information of the
employee concerned with a copy to Finance department Vigilance Department,
Administration, Materials, Library, co-operative society etc to enable them to
take timely action for settlement final dues.
With a view that the retiring employees/ dependents of deceased employees get
their final dues expeditiously, it has now been decided as under:-
a) To deal with the cases of resignation/ death of employees a committee be

constituted in all units/ offices to assist the concerned employee and / or
their department for expedition’s release of final payment. The committee
should also assist the dependents of the deceased employee in obtaining
death/ successions certificate, wherever required. Personnel department
should invariably send a copy of the notification to the Chairman of the
committee for taking necessary action. A copy of the circular notifying
the constitution the constitution of said committee may also be sent to
Personnel department Corporate Office.
b) In case of an employee retiring on superannuation, a notification at least 3
months in advance may be issued for information of the employee
concerned with a copy to finance Department for timely action for
settlement/ release of final dues.
c) After issue of notification with regard to superannuation, Personnel
department of the Unit/ Division would also ensure the collection of No
Demand Certificate from all the concerned departments and advise the
consolidated position accordingly to Finance department at least one
month before the date of retirement. This would also detail the position
with regard to balance of Earned Leave due to the employee at the time of
retirement for release of cash there against.
d) Orders to release the gratuity after having financial occurrence and
administrative approval of the competent authority would be issued by
Personnel Department of the Unit/ Division at least one month before the
date of retirement along with request of the retiring employee for
settlement of PF account.
e) On receipt of requisite notification with regard to Superannuation,
gratuity and encashment of Leave orders etc from the personnel
department, Finance Department after ascertaining the position of various
outstanding advances and interest thereon, would keep the final account
of the retiring employees ready at least 15 days before the date of
retirement.
f) On receipt of request for settlement of Provident Fund account though
Personnel Department, Finance Department would also ensure its
settlement, so that the same could be released on the date of retirement.
g) After compilation of position of the final account, cheque for the dues of
the retiring employees would be handed over to him on the day of
retirement, after retaining the outstanding amount of advances (HBA,
Conveyance, House Hold etc) & interest due thereon.
h) In the Units, where employees have been allotted company quarters in
township, it may not be possible to obtain the No Demand Certificate
from the East Department before the date of superannuation in case the
employee retains the accommodation after retirement for the period as
admissible under allotment rules. In such cases estimated amount
equivalent to rental, electricity and water charges and any other cost of
deficiency noticed in the house may be retained as security equivalent to
20% of gratuity from the dues of the employees. Refund of these
recoveries will be made on receipt of vacation report and No Demand
Certificate from Estate Department after adjusting the recoveries of rent,
electricity and water charges etc as intimated by Estate Department.
PAYMENT OF GRATUITY
With effect from 24.5.94, all employees irrespective of their salary/ status are
covered under the payment of Gratuity Act, 1972. As a result of thereof, Death-
cum-retirement Gratuity Scheme no more remains in operation. However, for
the purpose of calculation of gratuity, employees or their legal heirs/ nominees
(in case of death of an employee) or at option to choose any set of benefits, in
Toto, either under the Payment of Gratuity Act, 1972 or under the Death-cum-
Retirement Gratuity Scheme, whichever is more beneficial to them.
The benefits available under the Act and the scheme in case of death are as
under:-
Payment of Gratuity Act Death-cum-Retirement Gratuity
Scheme
Rate of Gratuity Act
15 days wages for every completed 1/4th of the employee monthly
year of service or part thereof in emoluments for each completed 6
excess of 6 months by taking a month months of qualifying service or part
of 26 days, subject to a maximum of thereof subject to a maximum of 16.5
Rs. 3.5 lakh (w.e.f 24.9.1997) times monthly emoluments or Rs. 3.5
lakh, whichever is less by taking a
month of 26 days.
Rate of gratuity in case of death
Same as above Death during 1st year of qualifying
service(2 months emoluments)
Death after 1 year but before 5 years of
qualifying service(6 months
emoluments)
CHAPTER- 3
OBJECTIVE AND SCOPE OF STUDY

OBJECTIVE OF THE STUDY:-
As we know that the employees are the life lines of the business, so no business
can be done without them. But in the competitive market, it is more difficult to
retain the employee and this can only be done if the employees are fully
satisfied from head to toe. If the company is not able to satisfy the employee
then they will surely leave the organisation and join the other.
The main objective of my study is to analyse, what are the various welfare
policies and services provided by the NFL to its employees and their
satisfaction level from those benefits.
That is what I try to do in this report to know that the employees are satisfied
with the welfare policy of NFL.
The main scope of the study is:-
 To find out the employees satisfaction level.

 To find the pitfalls in employees.
 To throw light on the weak and strong points which effect employee’s
satisfaction?
 To find out the reasons why does the employee want welfare schemes?
 And what NFL should improve to increase its welfare policies.
SCOPE OF THE STUDY:-

The study is conducted at National Fertilizers Limited, Bathinda for a
period of 45 days. The study is based on primary and secondary data.
RESEARCH METHODOLOGY:-
RESEARCH PROBLEM:-
To study that, are the employees satisfied with the welfare policies of
NFL Bathinda?
TYPES OF RESEARCH:-
Blend of descriptive & conclusive method has been used in this research for the
collection of data. As the research is related to the study of employee’s
satisfaction about the welfare policy. Which can more efficiently be studied
through direct questions, personal interview and informal talks, experiment
research will not much effective also, considering the time constraints,
descriptive research leading to conclusive result is the most suitable design for
this research.
SOURCES OF DATA COLLECTION:-
Primary sources:-
These sources include the data collected by the researcher himself for his own
study. It includes direct conversation with the company officers of different
departments and staff and that is with the help of the questionnaire.
SAMPLE DESIGN: - RANDOM SAMPLING.
SAMPLE SIZE: - 50.
SAMPLE UNIT: - INDIVIDUAL.
GEOGRAPHICAL LOCATION: - NFL Bathinda.
DATA COLLECTION METHOD: - Questionnaires to be filled by employees.
Secondary sources:-
The preparation of this report has also made use of secondary sources like the
company’s welfare policies which is available with the officers have been
studied deeply.
LIMITATIONS OF THE STUDY:-
In spite of the best efforts, there are always some problems or limitations
associated with market research that cannot be removed but can be minimized
only. In this survey also there could be certain errors due to those factors.
The study may have the following limitations:-
 It was very difficult for me to get the forms filled because of the officer’s
busy schedule and therefore providing me insufficient time for filling up
the forms.
 This study is based on the assumption that responses are true and factual
although at times that may not be the case.
 Though every care has been taken to eliminate such biases, but
considering the human factor the possibility of small bias having come
up cannot be ruled out altogether.
 Consumer behaviour is dynamic in nature and thus over the time, finding
of today may become invalid tomorrow.
DATA ANALYSIS AND INTERPRETATION:-
Q1. From how much time are you with NFL?
a) Less than 2 years
b) 2-5 years
c) 5-10 years
d) More than 10 years
As per the research the data collected shows that the 75% of the
employees are with NFL form 10 years. It clearly shows that NFL is well
established organisation and 15% employees are working in NFL from 5-
10 years and 10% are working there from 2-5 years. NFL has also
recruited new employees that are working from less than 2 years.
Q2. Are you fully aware about the welfare schemes provided by NFL?
a) Yes
b) No
c) Approximately
There are 65% of the employees who are fully aware with NFL
welfare schemes. And 35% of the employees were aware about the
welfare schemes approximately.
Q3. What are the welfare schemes provided by NFL?

a) Medical
b) Housing
c) Social security
d) All
There are so many schemes provided by NFL as medical, housing
facility, social security at the time of employees death etc. if we
talk about medical facility it is very useful for a NFL employee that
he or she can receive treatment from eminent hospital. 17.5%
employees are satisfied with the medical facility and 12.5%
housing facility and more than 60% are satisfied with all facilities.
10% employees are satisfied with social security.
Q4. Are you fully satisfied with the welfare schemes of NFL?
a) Yes
b) No
As per data collected, it shows that NFL is fully able to satisfy its
employees with the welfare schemes. According to them these
welfare schemes are time consuming and that is provided only to a
few. Other reason is that NFL does not care for an employees’ and
that are provided only to a few.
Q5. Do you feel that NFL schemes are much better than other
government companies?
a) Yes
b) No
The ratio of schemes provided by NFL is 80%, it means this

organisation is much better than any other government company.
The government companies just offer only 60% schemes which are
mentioned in Factory Act, 1984. NFL’s medical schemes are
providing cheap medical services as it has Indian famous hospital
on its penal for all units.
Q6. According to your point of view which scheme is best for
employees?
a) Social security scheme
b) Welfare excursion scheme
c) Long service award scheme
d) Sports
e) Medical
f) Housing
g) All are best
A number of schemes are provided by NFL. In these schemes 45%

of the employees are satisfied with the medical and 42% are
satisfied with all the schemes and 12.5% employees are satisfied
with social schemes.
Q7. Do you think social security scheme is beneficial for

employee’s family? Is there any need to increase its amount?
a) Yes
b) No
In this all the employees are more satisfied with the social security
scheme because it gives security to the employee’s family after
death. But the employees want to increase the amount of this
scheme. 80% of the employees are agreed on this question that the
amount should be increased.
Q8. Do you think the excursion scheme is beneficial?

a) Yes
b) No
Two excursion trips in a calendar year are arranged by the club at units
however, at marketing division and corporate office where there are no
clubs, such excursion trips are arranged by the concerned welfare/
industrial relations department. Under the scheme, the place of 400kms
each way from the township/place of work. One night stay is also allowed
for the said trip. However company doesn’t bear any extra expenses on
account for boarding/ loading and the employees do make their own
arrangement for night stay and avail their own leave.
95% employees are satisfied with this scheme but 5% are not satisfied
with it because it is only for club member and not for all.
Q9. According to your point of view the scholarship and sports grant to
the outstanding children of NFL employees should be increased?
a) Yes
b) No
NFL also provides scholarship grant to the outstanding children of

NFL employees but this amount is very low, so the employees
want to increase this amount. 70% employees agree and 30%
employees do not agree with this point.
Q10. Are you fully satisfied with the medical policy of NFL?
a) Yes
b) No
68% of the employees are satisfied with the medical facility

provided by NFL and 33% are not satisfied because this policy has
a long process and needs detailed documents of the patient. NFL
has famous hospital on its panel, it is providing best medical
facilities to its employees but in other ways the policy is having
some weak points also.
FINDINGS
 In Bathinda there are many companies, despite of tough
competition still good number of people is joining NFL.
 Above 80% of the employees are satisfied with the welfare
schemes of NFL.
 The schemes provided by NFL are durable. Moreover these
schemes are beneficial for the employees as well as their
family.
 Another plus point of NFL is that the company is providing
the welfare schemes to all employees irrespective of their
levels.
 Other companies are providing less welfare schemes as
compared to NFL.
 NFL is providing Long Service Award Scheme to the
employees as per their experience. 80% employees are
satisfied with the present scheme and 20% want extra
medical facility.
 The medical facility is very useful for the employees because
it provides cheap and quality treatment and the company has
very eminent hospital on its panel.
Recommendation for improvement in employee’s welfare
policy
The following factors can play an important role for
improvement in the employee welfare policy:-
 Spreading awareness regarding welfare policy among
the employees.
 Motivating the employees for giving out good
performance in order to achieve the awards of good
workers.
 Time to time counselling is necessary for employee
awareness and for the amendments in the policy.
 Some employees are not satisfied with the medical
policy of NFL, which needs some improvements.
 70% employees agree upon the opinion that welfare
schemes should be amended after 5 years.
CONCLUSION
In the end after completing the project I conclude that welfare policy is very
important for each and every organisation. These policies play a vital role for
the development of human resources well as the organisation as a whole.
Organisation may not be able to attain the required results which are expected if
the welfare policies are not followed properly. Proper control should be
implemented in the organisation in order to check whether welfare policies are
followed or not.
While working on the project, I came to know that employee welfare schemes
play significant role and should not be neglected at any cost.
At the end I would like to conclude that NFL is following the welfare policies in
a much better way than any other organisation. It is providing many welfare
schemes which are mentioned in Factories Act, 1948.
I had 6 weeks training in NFL. It was a great experience to work in such a
reputed organisation. Proper rules and regulations are being followed. Working
atmosphere is co-operative and friendly.
BIBLIOGRAPHY
WEBSITES:-
www.nationalfertilizers.com
www.wikipedia.com
A quarterly magazine of the company named “Vani” has also been referred.

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SUMMER TRAINING REPORT

SUPERVISED BY: - SUBMITTED BY:-

Mr. D.K. BORA AMARJIT KAUR

HRD MANAGER MBA- 3RD SEM.

ROLL NO: - RQ1002A11

LOVELY PROFESSIONAL UNIVERSITY

CHAPTER TOPIC PAGE NO.

The Vijaipur Plant was a landmark achievement in project management in

Authorized capital Rs. 500.00 crores

Paid up capital Rs. 490.58 crores

Capacity 13.70 lakh MT nitrogen

NANGAL UNIT INSTALLED CAPACITY

Project cost urea (including revamp) Rs .283.11 Cr

Foreign exchange component (including revamp) Rs.118.49 Cr

Commissioned (urea revamp) 01.02.2001

Project cost Rs 223.50 Cr

Foreign exchange component Rs 55.79 Cr

BATHINDA UNIT INSTALLED CAPACITY

Project cost Rs 239.30Cr

Foreign exchange component Rs 67.87

VIJAIPUR UNIT -1 INSTALLED CAPACITY

Project cost Rs 533 Cr

Foreign exchange component Rs 185.20

Project cost Rs 1071 Cr

Foreign exchange component Rs 431Cr

National Fertilizer Limited is the producer of Nitrogenous Fertilizer and the

KISAN KHAD (CAN)

Liquid nitrogen (N2)

Liquid oxygen (O2)

Argon gas (Ar)

Carbon slurry (C)

Sodium nitrate (NaNO3)

Carbon dioxide (CO2)

CORPORATE OBJECTIVES OF NFL

In terms of Memorandum of Association, NFL was set up to manufacture and

2. RESEARCH AND DEVELOPMENT

4 .MARKETING AND CONSUMER SERVICES

To develop & maintain an organizational environment for encouraging

To achieve reasonable and consistent growth in the business of manufacture and

 To conduct the business of NFL in accordance with ethical and legal

 To undertake socio- economic activities, consistent with government

 To promote development of ancillary industries.

BATHINDA UNIT OF NFL

Bathinda unit of national fertilizers Ltd is situated in Bathinda district of

To take up challenging job for completion of this project within a period Of 36

In NFL, Bathinda there are 6 sections like:

2) Industrial Relations and Welfare:-

There is a Works Committee which is also known as Statutory

4) Medical and Administration:-

Diaries and calendar-

Type Eligibility of quarters

The company has also provided the facility of Retention of company’s

IMPLEMENTATION OF THE PROJECT

Commissioning of water filtration plant 15-12-1976

Commissioning of instrument air system 13-03-1977

Commissioning of boiler 01-08-1977

Ammonia production 28-05-197

Urea production 02-06-1979

Commercial production started 01-10-1979