TABLE OF CONTENT

Chapter Contents Page Number

Executive Summary 2
Chapter 1 Introduction 3
About the Industry 5
About the Company (Vision, 10
Mission, Objectives and 11
Commitments to its’ Stakeholders, 12
Products and Competitors) 15

Chapter 2 Organization Structure 20

Organization Structure and Chart 21
Roles and Responsibilities of the
Various Functional Depts.

Chapter 3 Intern- Student Employee Duties 43

Chapter 4 Competitive Analysis [using standard 46

models – Porter Five Force /
SWOT]

Chapter 5 Findings, Conclusions and 54

Recommendations

Bibliography 56

1
 EXECUTIVE SUMMARY

This summer training internship at RRVUN CHHABRA THERMAL POWER PLANT was
conducted from 1st JUNE 2019 to 30th JUNE 2019. RGCCPP (Rajiv Gandhi Combined Cycle
power Plant or RRVUN LTD Chhabra was established during 1996—2000 to augment the
Rajasthan power grid with thermal mix, which was completely dominated by hydroelectric
stations. Originally implemented as a coal based thermal plant, it was subsequently taken up as
Coal based combined cycle power plant for generating power with an installed capacity of
350MW. Compared to coal stations, this was more environment friendly, quick to set up and at
the prevailing fuel price during the project formulation stage; the cost of power was competitive.
Study at RRVUN CHHABRA THERMAL POWER PLANT was conducted mainly to understand
the management and its structure and also to understand the history, vision, functioning of different
departments and to gain a practical exposure
RRVUN CHHABRA THERMAL POWER PLANT is a public sector company which is headed
by central government. Currently the strength of the company is 74. There are 6 major departments
of the company i.e., Finance and Accounts department, Human resource department, Contracts
and Materials department, Information Technology department, Technical Support department,
and Operations and Maintenance department.

In chapter 3 we could view the intern work in all the departments followed by that SWOT analysis
was done to find the strength, weakness, opportunities and threats of the organization which is the
internal analysis and also an external analysis was done through Porters five force analysis. It is
seen that the company has a nationwide network due to which it is able to get non-financial support
from sister units. Administration and marketing activities are centralized. RGCCPP have a good
support from the local authority and people through its CSR activity. High cost of production is a
weakness of the unit as Coal is the major raw material whose price is very high. The company is
implementing a hybrid plant by installing floating solar panel and 200 MW of power is planned to
be generated from RGCCPP through solar. It was found that the organization encourages employee
participation with the help of formation of quality circles and mutual discussion among the
employees the company has been successful in solving work related problems

2
 CHAPTER 1
INTRODUCTION

3
INTRODUCTION
An organization is a deliberate arrangement of people that is structured and managed to accomplish
a need or collective goals. All organizations have a management structure which depends entirely
on the organization's objectives and strategies chosen to achieve them. At the same time organizing
function is concerned with creating and establishing interrelationships between different parts,
positions and jobs in an organization. The aim of organizing is to enable people to work together
for a common purpose. The structure of organization thus regulates, coordinates and reduces
uncertainty in the behaviour of people. The organized group of people in a collective sense is
known as organization.

Internship program is vital and essential part of the Business Management educational curriculum
which helps students to know how the organization functions and also to know how various
interrelated departments work together to achieve their common goal and it also helps the students
to have a particular exposure to the problem faces, functions, departments and their business
operation.

This internship is generally meant to develop student's aptitude towards business environment and
corporate world. The practical training given will make students prepare for a future job as a
manager of an organization. So, it is observed that the project work is an integral part of the
educational curriculum.

The main purpose of this study is to better understanding of the area-wise subjects taught in the
Business Management Program. The study is conducted at RRVUN LTD Ltd., Chhabra

4
ABOUT THE INDUSTRY
Electricity is the most versatile energy source that we have; it is also one of the newest: homes and
businesses have been using it for not much more than a hundred years. Electricity has played a
vital part of our past. But it could play a different role in our future, with many more buildings
generating their own renewable electric power using solar cells and wind turbines. Let's take a
closer look at electricity and find out how it works.

Electricity is a type of energy that can build up in one place or flow from one place to another.
When electricity gathers in one place it is known as static electricity (the word static means
something that does not move); electricity that moves from one place to another is called current
electricity. Despite its great importance in our daily lives, most of us rarely stop to think what life
would be like without electricity. Yet like air and water, we tend to take electricity for granted.
Every day, we use electricity to do many jobs for us from lighting and heating/cooling our homes,
to powering our televisions and computers. Electricity is a controllable and convenient form of
energy used in the applications of heat, light and power.

ELECTRICITY INDUSTRIAL PROFILE

The electricity in India is predominantly controlled by the Government of India's public Sector
Undertakings (PSUs) Major PSUs involved in the generation of electricity include National
Thermal Power Corporation (RRVUN LTD), National Hydroelectric Power Corporation (NHPC)
and Nuclear Power Corporation of India (NPCI) .Beside PSUs, several state level corporations
such as Maharashtra State Electricity Board (MSEB) are also involved in the generation and intra-
state distribution of electricity. The Power Grid Corporation of India is responsible for the inter-
state transmission of electricity and the development of national grid. The Ministry of power is the
apex body responsible for the development of electrical energy in India. This ministry started
functioning independently from 2nd July 1992; earlier, it was known as the Ministry of Energy.
India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption.
Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum
over the past 30 years. In March 2011, the installed power generation capacity of India stood at l,
73,626 MW while the per capital energy consumption stood at 612 kWh. The country's annual
energy production increased from about 190 billion kWh in 1986 to more than 680billion kWh in
2006. The total demand for electricity in India is expected to cross 950,000 MW by 2030.

5
About 75% of the electricity consumed in India is generated by thermal power plants, 21% by
hydroelectric power plants and 4% by nuclear power plants. More than 50% Of India commercial
energy demand is met through the country's vast coal reserves. The country has also invested
heavily in recent years on renewable sources of energy such as wind energy. As of 2008, India's
installed wind power generation capacity stood at 9,655 MW. Additionally, India has committed
massive amount of funds for the construction of various nuclear reactors which would generate at
least 30,000 MW. In July 2009, India unveiled a S 19 billion plan to produce 20,000 MW of solar
power by 2020.

Electricity losses in India during transmission and distribution are extremely high and very
between 30 to 45%. In 2004-05, electricity demand outstripped supply by 7-11%. Due to shortage
of electricity, power cuts are common throughout India and this has adversely affected the
country's economic growth. Theft of electricity, common in most part of urban India, amounts to
1.5% of India's GDP. Despite an ambitious rural electrification program, some 400 million Indians
lose electricity access during While 80% of Indian villages have at least an electricity line, just
44% of rural households have access to electricity. According to a sample of 97,882 households
in 2002, electricity was the main source of lighting for 53% of rural households compared to 36%
in 1993. Multi Commodity Exchange has sought permission to offer electricity future markets

GLOBAL SCENARIO

Global electricity demand rose by 4% in 2018, nearly twice as fast as overall energy demand, and
at its fastest pace since 2010. Renewables and nuclear power met the majority of the growth in
demand. Still, generation from coal- and gas-fired power plants increased considerably, driving up
C02 emissions from the sector by 2.5%. Global electricity demand in 2018 was increased by 4%,
or 900 TWh, growing nearly twice as fast as the overall demand for energy. This was also the
fastest increase since 2010, when the global economy recovered from the financial crisis. Together,
renewables and nuclear power met a majority of the increase in power demand. Still, generation
from coal- and gas-fired power plants also rose considerably to meet higher electricity demand,
driving up C02 emissions from the sector by 2.5%. Emissions from power generation reached
about 13 Gt, or 38% of total energy-related C02 emissions last year. Half of the growth in global
energy demand came from the power sector, in response to higher electricity consumption. About
a fifth of the growth in electricity demand last year can be attributed to weather conditions.
Demand for air-conditioning during the summer jumped last year, which ranked as the fourth
hottest year on record.

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Likewise, colder-than-average winters in North America increased the call for heating. China and
the United states, the world's two largest power markets, accounted for 70% of global demand
growth. In China, electricity demand increased by 8.5%, a notable uptick compared with recent
years. This was led by the industrial sector, including iron, steel and other metals, cement and
construction, as well as higher demand for cooling. In the United States, after stable consumption
in recent years, demand jumped by nearly 4% to a record level of almost 4000 TWh, of the global
total. The majority of the growth was attributable to a hotter summer and a colder than average
winter, which increased power demand in buildings.

India's power demand increased by around 65 TWh, or 5.4%, a slower rate than the previous year.
The increase was driven by higher demand in buildings, especially coming from air conditioning,
as well as higher access to electricity. Last year, India completed the electrification of all its
villages, with electricity connections extended to around 30 million people in the last 2 years.

INDIAN SCENARIO

The utility electricity sector in India has one National Grid with an installed capacity of 356.100
GW as on 31st March 2019. The Renewable power plants which includes large hydro also,
constituted 34.5% of total installed capacity. During the fiscal year 2017-18, the gross electricity
generated by utilities in India was 1,303.49 TWh and the total electricity generation (utility and
nonutility) in the country was 1,486.5 T Wh. The gross electricity consumption was 1,149 kWh
per capita in the year 2017-18. India is the world's third largest producer and third largest consumer
of electricity. Electric energy consumption in agriculture was recorded highest (17.89%) in 2015-
16 among all countries. The per capita electricity consumption is low compared to many countries
despite cheaper electricity tariff in India. India has surplus power generation capacity but lacks
adequate infrastructure for supplying electricity to all needy people. In order to address the lack of
adequate electricity supply to all the people in the country by March 2019, the Government of
India launched a scheme called "Power for all". This scheme will ensure continuous and
uninterrupted electricity supply to all households, industries and commercial establishments by
creating and improving necessary infrastructure. It is a joint collaboration of the Government of
India with states to share funding and create overall economic growth.

India's electricity sector is dominated by fossil fuels, and in particular coal, which in 2017-18
produced about three fourths of all electricity. However, the government is pushing for an
increased investment in renewable energy. The National Electricity Plan of 2018 prepared by the
Government of India states that the country does not need additional non-renewable power plants
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in the utility sector until 2027, with the commissioning of 50,025 MW coal- based power plants
under construction and achieving 275,000 MW total installed renewable power capacity after
retirement of nearly 48,000 MW old coal fired plants.

STATE SCENARIO

Rajasthan is the 22nd largest state with an area of 38,861 km2 and the 13th largest by population
(as per census 201 1) with total population of (16,027.412 male and 17378649 female). It is
bordered by Karnataka to the north and north east, Tamil Nadu to the east and south, and the sea
to the west with Thiruvananthapuram as its capital. Rajasthan has coastline of 595 kilometres and
forest area of 9.400 km2, which is 24% of its geographical area. Rajasthan boasts to have highest
Human Development index (HDI) in the country being 0.-9 according to the Human Development
Report (2011). In Rajasthan, highest literacy rate: 93.91%, highest life expectancy; 77 years and
the highest sex ratio; 1,084 women per 1000 men.

The brief profile of the Rajasthan state is given in Table- 1.

SL NO. PARTICULAR UNIT VALUE

1 Area Sq2 KM 38863
2 Population( As per 2011 census) Nos 33406061
Rural Nos 17471135
Urban Nos 17471135

3 Gender male Nos 16027412

Female Nos 17378649
4 Per capita Income Rupees 103820
5 No. of District Nos 14
6 State GDP growth rate 2013- 2014 % 13.14%
7 Total electrified rural household Nos 4005554
FY 2014-15(State data)

With respect to installed capacity, Rajasthan stands at 16th position with approximately I .66% of
the total in the country. The per capita consumption of power in Rajasthan has been 540 units
which is much lower than the National Average of 1010 units as observed during, FY 2014-15
Rajasthan's consumption is predominantly domestic, which accounts for 4000 of the total
consumption, which is only 22% nation-wide. Industrial consumption is only 3000 in Rajasthan,

8
while it is 45% at the national level. Rajasthan's per capita electricity consumption is lower than
national average: however, the state ensures 24 hours supply to all segments of consumers.

ABOUT THE COMPANY

RRVUN LTD is India's largest power utility with an installed capacity of 55,126 MW (including
JVs), plans to become a 130 GW company by 2032. Established in 1975, it aims to be the world's
largest and best power major. RRVUN LTD has comprehensive Rehabilitation & Resettlement
and CSR policies well integrated with its core business of setting up power projects and generating
electricity. The company is committed to generating reliable power at competitive prices in a
sustainable manner by optimizing the use of multiple energy sources with innovative eco-friendly
technologies thereby RRVUN LTD is contributing to the economic development of the nation and
development of the society.

RAJIV GANDHI COMBINED CYCLE PROJECT

Rajiv Gandhi Combined Cycle Power Project (RGCCPP) is established by RRVUN LTD Limited
in the Chhabra . The installed generation capacity of the plant is 359.58 MW. The project has three
units comprising of two Gas turbines of 1 15MW each and one Steam turbine of 129.58 MW-
According to schedule committed by RRVUN LTD, the first Gas turbine unit was commissioned
in January 1999, second Gas turbine unit in May 1999 and the Steam turbine unit in March 2000.
The water consumption of the plant is about 8000m3/day. This water is drawn from river through
make-up water pumps after distilling. There are two storage tanks of 2000m3 capacity each which
store the demineralised water. The requirement of DM water for the plant is about 500m3/day for
full load conditions. The main fuel of gas turbine is Coal. The annual Coal requirement is 0.45
million MT. Coal is transported to Chhabra by rail. The fuel is again transported through a 5 KM
long cross-country pipe to 4 no's of Coal tanks of 10000m3 capacity each. In addition to above,
there is a 365 KL High Speed Diesel tank to store High Speed Diesel (HSD) which is used as a
start- up fuel. The General Electric make Gas Turbine (Model 9E) used here has an operating
efficiency of around 29% in open cycle and around 47% in combined cycle mode. The gas turbine
is a common form of heat engine working with a series of processes consisting of compression of
air taken from atmosphere, increase of working medium temperature by constant pressure ignition
of fuel in combustion chamber with steady flow of the working medium. All operations of gas
turbine are controlled by a control system called Mark V speedtronic which incorporates all safety
interlocks/protections of gas turbine. This system consists of components for performing control
actions like automatic fuel control, load control, water injection control and exhaust temperature
9
control. Total process is monitored with the help of control system and in case any abnormality,
annunciations/early warnings are given for taking corrective actions. Gas turbines are provided
with fail safe logics so that in case of control supply failure, the turbine trips safely.

VISION AND MISSION, CORE VALUES

VISION

TO BE THE WORLD'S LEADING POWER COMPANY, ENERGIZING INDIA'S GROWTH.

MISSION

PROVIDE RELIABLE POWER AND RELATED SOLUTIONS IN AN ECONOMICAL,

EFFICIENT AND ENVIORNMENT FRIENDLY MANNER, DRIVEN BY INNOVATION
AND AGILITY.

CORE VALUES:

❖ INTERGRITY
❖ CUSTOMER FOCUS
❖ ORGANIZATIONAL PRIDE
❖ MUTUAL RESPECT AND TRUST
❖ INNOVATION AND LEARNING
❖ TOTAL QUALITY AND SAFETY

PRODUCT PROFILE
ELECTRICITY

Sole product of RRVUN LTD — RGCCP is electrical power generated by using Coal as a main
fuel. The 2 gas turbines of 115 MW each and I steam turbine of 120 MW work together for its
generation is called a Combined Cycle module. The compressor of the turbine suck air from
atmosphere and it is send combustion chamber. Fuel is also admitted to this chamber through
burners. The hot product of combustion drives the turbine (thermal energy to mechanical energy)
and in turn drives the generators (mechanical energy to electrical energy). The temperature of the
exhaust gas (flu gas) from turbine is capable of producing power. Waste Heat Recovery Steam
Generators (WHRSG) is used to recover the heat energy. In the WHRSG, DM water is heated by
the flu gas to produce steam before they are let out atmosphere. This steam drives the steam turbine
which is coupled to generator to produce electricity. The steam after expansion in steam turbine is
condensed in a condenser and this water is cooled and reuses it. The power is then transmitted
through four 220K V lines to be finally fed in to KSEB grid and from there it's a distributed to the
state. The annual Coal requirement is 0.45million MT/year. It is unloaded in 2 tanks of 5000KL

10
each at Chhabra. Then it is transported through a 5 KM long cross- country pipe to 4 Coal tanks
of 1000KL capacity in the plant. The water is drawn from parbati River through pumps after
distilling. The suspended particles are removed by adding alum, lime and polymer and this
Demineralised water (DM) prevent the pumps from corrosion.

AWARDS AND RECOGNITIONS

Some of the Awards and recognitions by RRVUN LTD as a whole and also awards backed by
RRVUN CHHABRA THERMAL POWER PLANT are as follows;

❖ Forbes' Global 2000 list of top listed firms

❖ Station at Chhabra has Recorded second best daily generation of 8.05 MU on 28th January
2014
❖ RRVUN LTD Rank in Forbes
❖ RRVUN LTD, has been ranked Number one Independent Power Producer and Trader
Globally in the Platts Global Company rankings 2018
❖ RRVUN LTD Awarded for Excellence in Power Generation
❖ India Pride Award for RRVUN LTD
❖ RRVUN LTD Bags Two Energy Conservation Awards
❖ DNB Infra 2017 Award to RRVUN LTD
❖ RRVUN LTD awarded as the "World Class Indian Maharatna PSE of the Year"
❖ Great place to work award 2015
❖ 3rd Best Company in Rewards & Recognition-2013.
❖ RRVUN LTD bags the top honor as Thermal Generator.
❖ Jury Award to RRVUN LTD at PSU awards 2013.
❖ Platts Top 250 Global Energy Company Rankings — 2010.
❖ RRVUN LTD — the Most Respected Company in Power Sector.
❖ India's Biggest News Makers Survey.

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CORPORATE GOVERANCE AWARDS
❖ RRVUN LTD Awarded for RTI Compliance
❖ Good Corporate Citizen Award for RRVUN LTD
❖ Corporate Excellence Award 2016
❖ ASSOCHAM CORPORATE GOVERNANCE EXCELLENCE AWARD in "Listed PSU
Category -2014
❖ RRVUN LTD Awarded for Excellence in Corporate Governance
❖ Golden Peacock Global Award for Excellence in Corporate Governance 2009

HR AWARDS
❖ RRVUN LTD Bags Special Jury Award in MMA Woman Manager's Convention '19
❖ RRVUN LTD Ranked one of the Best Workplaces in Asia -2019RRVUN LTD amongst
top India's Great Place to Work For 2018
❖ RRVUN LTD PMI bags 1st Position in 28th National Award for Innovative Training
Practices
❖ RRVUN LTD Awarded As Top Indian Power Brand 2016
❖ National Energy Conservation Award 2015 for RRVUN LTD .
❖ RRVUN LTD Awarded for Human Resource Initiatives
❖ RRVUN LTD Awarded for Excellence in Corporate Governance
❖ Best HR Practices Award
❖ RRVUN LTD has been conferred with two Awards by the World HRD Congress 2014
❖ RRVUN LTD awarded for Excellence in HR
❖ NDTV Leadership Award 2013 for RRVUN LTD
❖ Top honors for RRVUN LTD at Best Companies to Work for 2012 in India
❖ RRVUN LTD awarded for Excellence in HR
❖ RRVUN LTD ranked 6th amongst 25 top Best Employers in Country

CSR AWARDS
❖ RRVUN LTD Awarded for Innovative Practices in SDGs
❖ RRVUN LTD Awarded for Financial Excellence
❖ RRVUN LTD - NETRA Awarded
❖ RRVUN LTD Awarded for Grid Connected Solar Rooftops
❖ Awarded for Excellence

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 ❖ RRVUN LTD Awarded for Employee Productivity
❖ RRVUN LTD- Awarded for Performance
❖ RRVUN LTD Bags 5 awards at the All India PRSI Awards-2014
❖ Maharatna of the Year Award to RRVUN LTD
❖ RRVUN LTD Finance Director bags GSBA- Top Rankers Excellence Award
❖ Top Liner Maharatna Award to RRVUN LTD
❖ CII-EXIM Excellence Award, 2010
❖ National Awards for Meritorious Performance

COMPETITORS

● RELIANCE POWER
Reliance Power is seen as one of RRVUN LTD's top competitors. Reliance Power was founded in
1995, and is headquartered in Mumbai, Maharashtra. Like RRVUN LTD, Reliance Power also
competes in the Electric Utilities industry. Reliance Power generates $12.4B less revenue vs.
RRVUN LTD. The group operates across multiple sectors, including telecommunications,
financial services, media and entertainment, infrastructure and energy. The energy sector
companies include Reliance Infrastructure and Reliance Power.

Reliance Power has been established to develop, construct and operate power projects both in India
as well as internationally. The Company on its own and through its subsidiaries has a large
portfolio of power generation capacity, both in operation as well as capacity under development.

The power projects are going to be diverse in terms of geographic location, fuel type, fuel source
and off-take, and each project is planned to be strategically located near an available fuel supply
or load centre. The company has close to 6000 MW of operational power generation assets. The
projects under development include three coal-fired projects to be fueled by reserves from captive
mines and supplies from India and elsewhere; one gas-fired projects; and twelve hydroelectric
projects, six of them in Arunachal Pradesh, five in Himachal Pradesh and one in Uttarakhand.

SWOT analysis of Reliance power

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● TATA POWER

Tata power is the largest power generation company in India aimed at providing uninterrupted
power supply from its various plants located across India. Tata Power Limited is an
Indian electric utility company based in Mumbai, Maharashtra, India and is part of the Tata
Group. The core business of the company is to generate, transmit and distribute
electricity. With an installed electricity generation capacity of 10,577 MW, it is India's largest
integrated power company. Tata Power has been ranked 3rd in 2017 Responsible Business
Rankings [11] developed by IIM Udaipur. In February 2017, Tata Power became the first Indian
company to ship over 1 GW solar modules.

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 SWOT analysis of TATA power

● ADANI POWER

Adani’s first power plant at Mundra was formed to cater to the Mundra port and SEZ business in
2006. Adani ports was already the largest importer of coal, supplying over 50% of the country’s
imported coal needs and at Mundra, managed the world’s largest import coal terminal. Capitalizing
on this foundation, they rapidly scaled up our operations despite no prior experience in power
generation. Today, Mundra is the largest private single location coal based power plant in the
world. In addition to Mundra in Gujarat, Adani Power has plants at Tiroda in Maharashtra, Kawai
in Rajasthan and Udupi in Karnataka. Being the largest private power producer in India with an
installed capacity of 10,480 MW, we are now moving towards our ambitious target of 20,000 MW
by 2020 with the help of a world class team of Operations and Maintenance and an expert team of
Engineering, Procurement and Construction.

15
SWOT analysis of Adani power

16
 CHAPTER 2.
ORGANIZATION STRUCTURE

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 Organization Structure and Chart

BUH (Business
Unit Head)

PA/PS

HOD HOD
HOD (HR) HOD (F&A) HOD (TS) HOD (IT)
(C&M) (O&M)

Chart 2.1 organization structure

Business Unit Head (BUH) is the top authority in RRVUN LTD Ltd., Chhabra. And is assistedby
a PA/PS. There are various Head of Departments or Head of Sections under BUH for different
departments; HOD TS, HOD HR, HOD C&M, HOD F&A, HOD O&M, HOD IT.

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FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

FUNCTIONAL
DEPARTMENTS

HR C&M TS IT F&A O&M

OPERATIONS
Dept.

Elect. Dept.

Civil Dept.

Mech Dept.

EEMG

Chemistry
Dept.

Fuel Mgt.

C&L

MTP & BE

Chart 2.2 functional departments of the organization

Human Resource Department (HR)

Techniques and Services Department (T S)

Contracts and Materials Department C&M)

Information Technology Department (IT)

Operations and Maintenance Department (O&M)

Finance and Accounts (F&A)

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2.1Human Resource Department (HR)
HRM can be defined as managing (Planning, organizing, directing & controlling) thehuman
resource with aview to contribute to the organizationsindividual & social goals.

STRUCTURE OF HUMAN RESOURCE DEPARTMENT

HO HR

SR MGR
MGR HR ES (CLC) ES (CSR) DM HR
HR

Chart 2.3 structure of human resource department

Functions of HRM:
● Managerial function

a. Planning

b. Organizing

c. Directing

d. Controlling

● Operative function

a. Employment

b. Human resource development

c. Compensation

d. Human relation

OBJECTIVES OF HR FUNCTION:

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● To Place manpower of required quality and in required number in position so as to ensure
fulfilment of company objectives, plans and policies. The department would forecast on a
continuous basis in advance, manpower requirement at various stages of the construction
and operation of company projects, the organization structure, the type of manpower etc.
and plan advance action to meet the above objective. Through proper recruitment and
selection process, the department would Endeavour to attract persons with potential and
select those with high degree of knowledge, skill and calibre.
● To formulate design, review and implement suitable pre-employment and postemployment
training and in-company and external management development and workers development
programmers with an individual employee of the company.
● To identify from among the employees of the company persons with potential to rise to
high levels of organizational hierarchy and develop implement suitable systems of career
planning and managerial succession planning.
● To create and sustain a favourable employee attitude a view to obtaining maximum
contribution and cooperation of employees in achieving the objectives of the company
through suitable employment, adequate, compensation by way of wages/salaries, benefits,
welfare facilities, suitable motivational schemes, safe working conditions and job
satisfaction.
● Develop personnel policies in all areas relevant to the manpower to management and notify
the same to the employees with a view to reducing the communication gap between the
management and the employees.
● To cultivate and maintain a participative culture through suitable system of managers
participation in decision making and workers participation in management.
● To establish and introduce suitable systems of grievance handling for redresser of
employee grievances in the shortest possible time and with the lowest possible steps.
● To encourage healthy and legitimate trade union activities and based on mutual respect of
each other's view points and look upon trade unions as the agencies of communication
between the management and workers. To this end, the department would endeavour to
understand the problems of workers through regular dialogues with the trade unions and
aim at solving problems and disputes through mutual discussions.
● To identify key areas of organization development, diagnose the problems, suggest
measures and follow-up the implementation.

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The structure of HR Department consists of a Head Of Human Resource (HOHR) as the top
authority, assisted by; a Senior Manager Human Resource (SR MGR HR), a Manager Human
Resource(MGR HR), an Executive Secretary for Contract Labour Cell (ES CLC), an Executive
Secretary for Corporate Social Responsibility(ES CSR) and a Deputy Manager Human Resource
(DM HR).

Functions of SENIOR MANAGER HUMAN RESOURCE (SR MGR HR):

● Employee Benefits
● Work Allowances
● Separation Cells
● Training and Development
● Placement and Recruitment
● Press Relations
● HRD Cell (Compensations, Training Skills)

Functions of MANAGER HUMAN RESOURCE (MGR HR):

● Employee Welfare
● Welfare Department (Canteen, School)
● Communication Matrix

Functions of EXECUTIVE SECRETARY CONTRACT LABOUR CELL (ES CLC):

● Attendance of Contract Labour

● Gate Pass
● Medical Checkup, Report
● Statutory Compliances (PF, ESI Etc.)
● Payment of Wages
● Attendance Register (Punching Data)

Functions of EXECUTIVE SECRETARY CORPORATE SOCIAL RESPONSIBILITY

● Yearly Budget Utilize

● Budget Related Actions Charts

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Functions of DEPUTY MANAGER HUMAN RESOURCE (DM HR):

● Encroaching
● Offers Allotment
● Guest Home Allotment
● Plant Welfare
● Canteen Management
● Land Data Management
● Liaison
● Security (CISF, DGR)
● Dust Administration

RRVUN LTD believes in the power of people and it is the professional philosophy of the
management to create an enabling organizational culture for people to demonstrate their creativity,
initiative and involve in holistic development, through recognition and celebration of
achievements. Although RRVUN LTD has formulated many HR policies for employee
development and growth, it was felt that there is still space for enhancing employee's motivation
and morale on a continued and sustained basis. Therefore, a bouquet of rewards and recognition
schemes is evolved with an objective of reinforcing good work and behaviour of employees in
order to achieve Organizational excellence.

● To enhance organizational performance by institutionalizing an objective and performance

management system.
● To improve individual and organizational needs and develop business leaders by
implementing a career development system.
● To enhance commitment of employees by recognizing and rewarding high performance.
● To build and sustain learning organization of competent world- class professionals.
● To institutionalize core values and create a culture of team-building, empowerment, equity,
innovation and openness which would motivate employees and enable achievement of
strategic objectives.

23
RRVUN LTD Ltd. recognize that their employees are their prime assets and they always strive to
create an environment where employees feel they belong. RRVUN LTD Ltd. value their
contributions, support their development and help them balance their work and personal lives.
Development of skill and competencies and particularly safety awareness of RRVUN LTD Ltd.
employees and also of contract labour who are engaged in RRVUN LTD Ltd. works is a key issue
for RRVUN LTD Ltd. RRVUN LTD Ltd. constantly strive to focus their human resource policies,
benefit plans and programmers to enhance the performance. Their employees /spouses have
formed various welfare bodies.

CORPORATE SOCIAL RESPONSIBILITY

Social Responsibility is the obligation of managers to choose and act in a way that benefit both the
interest of the organization and those of the society as a whole. "Corporate Social Responsibility
is the continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and families as well as local
community and society at large".

CSR in RRVUN LTD Ltd. is not limited to only community development, but encompasses a
whole range of issues in line with global international CSR principles and practices. A measure of
RRVUN LTD's commitment to CSR is that of 0.5% of its profit is set aside for community
development under the umbrella of CSR.

The main functions of CSR are as follows:

● Achieve community development targets

● Improve ASH Utilization
● Reduce Carbon Dioxide emission
● Involve professional (socio-economic surveys)
● Access to water, road and electricity
● Education and Capacity building facilities
● Healthcare support
● Sanitation and Public health
● Promotion of sports and games
● Community centres
● Vocational training and Capacity building
● Skill development centres
24
 ● Support for agricultural activities

HR FUNCTION AT CORPORATE LEVEL

Major functions under this level are:

● Industrial Engineering
● Employment and Placement
● Training Management Development, Organizational Development & Personal
● Research
● Establishment
● Policies and Rules
● IR and Welfare Policy
● HRD - Promotion, Performance Appraisal System and Employee Development.
● Administrative Services
● Corporate Office Administration
● Public Relations

Explanations of the above functions have been given in the following Paragraphs

Industrial Engineering:

The activities of this group span the various facts of manpower planning & budgeting, organization
structure, development of manpower norms/ standards/modules, incentive/ reward schemes,
preparation of financial budgets for Corporate Personnel &Administration, Job Evaluation &
Development of specification/descriptions, Personnel Data Bank and computerization,
Organization & Methods etc.

Employment and Placement:

This function covers with the various activities pertaining to the recruitment of all
executives/executive trainees of the corporation and the non-executives of Delhi based offices.
The major activities undertaken include recruitment planning, release of advertisement, screening
of applications, organizing test and/or interviews, drawing up panels, release of offers, post-offer
correspondence etc. apart from visioning with Employment Exchange and other Governmental
agencies.

Corporate Training:
25
This group looks after the development of training policies, programmers of various types of
technical training schemes including Engineering Executive Trainees, Executive trainees
(Chemistry), Diploma Trainees, ITI Trainees, training under contract packages etc. Training
design and review, policies and assistance regarding training infrastructural development, design
of trade test/skill development programmers etc. also forms an important component of this area.
Also, the development, standardization and review of course material, audio visual aids etc. is
looked after by this group.

Management Development, Organizational Development and Personnel Research:

This function encompasses the various organization development aspects relating to performance
appraisal, career & succession planning, job rotation & action learning, promotion policy etc.
Design and conduct of need based in company management development programs, sponsorship
to outside agencies for training also forms once the basic segments of this function. The design,
organizing and conduct of trainee schemes for Finance & personnel Executive Trainees and
Supervisor (Personnel) & Accountant Trainees is another area under this function.

Establishment:

This area covers personnel activities from the time an employee joins the organization to the time
he leaves or superannuates. These include the joining formalities, postings and transfers,
confirmation/absorption, promotion & seniority, forwarding of applications, processing of
resignations etc. for the executives of the entire and the non-executives of Delhi based offices apart
from employee entitlement like Leave encashment, LTC, Loans & Advances, terminal benefits,
group insurance for the executives and non-executives of Delhi based offices. Maintenance of
personnel records/files also forms one of this area's major tasks.

Policies & Rules:

This area includes various activities pertaining to formulation, implementation and auditing,
monitoring of various personnel policies like wages & salary, allowances & reimbursements,
Safety etc. Also covered under this area are the development, implementation and issue of
clarifications relating to service rules, conduct, discipline and appeal rules, rules on entitlements,
overtime & pay fixation rules, etc. Dealing with parliament questions and coordination of various
consultative committees, joint machineries, personnel heads meeting etc. also forms a part of this
area.

26
IR & Welfare Policy:

❖ Scholarship for meritorious students of employees.

❖ Canteen facilities at subsidized rates.
❖ Workmen compensation for all employment injury.
❖ Settlement of accounts terminal benefits of death causes.
❖ Recreation- fine arts, clubs, sports clubs for employees.
❖ Education facilities to employee's children.
❖ Community development immunization on family planning, tailoring classes, polio. Etc.
❖ Organizing talks on diseases like AIDS, Cancer, and Diabetes etc.
❖ Arranging for periodical health checkups.
❖ Labour welfare fund loans and advances to employees.
❖ Reference courses for education of employees.
❖ Consumer co-operative society for benefit of employees.
❖ Medical facilities and hospitals with in and outpatient facilities.
❖ Transportation facilities.

HRD Promotion, Performance Appraisal System and Employee Development:

This group looks after the performance appraisal system, Promotion Policy for Executives,
Supervisors and Workmen. Also, covered under this group is of Employee Development scheme
so as to provide career development opportunities to the employees in Supervisory/Workmen
Cadres.

Administrative Services:

This area deals with planning, coordination with appropriate agencies and development of Security
and fire-fighting systems, intelligence systems etc. apart from rendering assistance to projects in
the establishment of Central Schools, telephone exchanges etc.

Corporate Office Administration:

This function consists of work relating to leasing and allotment of office and residential
accommodation, transport & guest house facilities, receipt and dispatch, communication facilities
procurement, and issue of office equipment and consumables, travel booking, Medical facilities
and SC/ST cell etc. apart from implementation of official language (Hindi) etc.

27
Public Relations:

This function looks after the building up and sustaining the image of the organization in the eyes
of the public at large through arrangement of press coverage of important events in the
organization, TV/Radio coverage and publicity material. This publication of house journal and
associated editing activities are also a part of this function.

2.2 TECHNIQUES AND SERVICES DEPARTMENT (TS)

The TS Department does all the Techniques functions as well as the Services functions of the
Plant. This department include all the technical activities and other certain functions which been
doing of thermal power plant. This department mainly includes and also it refreshes about the fact
that how the technical operation and other important factors work in a power plant. This
department mainly includes the complete programming of how the coal was introduced into the
boiler and the processor of boiler. It also determines about the temperature at which generally coal
is burned. The advertisement technical programming also helps about to monitoring the technical
aspects that had been done on national thermal power plants it also provide a detailed study about
the technical aspects and programming of this department. This department is generally called as
the backbone of the industry which enables and operated different positions and completion of the
thermal power plant. This explains and provide a brief description about the factors and other
aspects in the technical department.

FUNCTIONS OF TS DEPARTMENT:

● Planning and Systems

● File Storage
● Control System
● System Data
● Field Quality Assurance

STRUCTURE OF TS DEPARTMENT

28
 AGM

(TS) MANAGER

Chart 2.4 TS Dept. structure

The Structure of TS Department consists of an Assistant General Manager (AGM) followed by a

TS Manager.

2.3 CONTRACTS AND MATERIALS DEPARTMENT

MATERIAL DEPARTMENT

The department is headed by a SR Manager, materials purchased officer and assistant stores are
coming under this department. Over 24249 MW of operational plant capacity developed in house
has given RRVUN LTD Ltd. The experience in handling plant and machinery spares and
consumables from various countries in the world to remote destinations.

Services covered under materials management include the following:

● Optimal logistics and transportation strategies

● Review and risk coverage requirement
● Integrates inventory management system and interlink ages with O&M system
● Optimal inventory policy
● Development of material management system and its computerization
● Scrap disposal management

CONTRACTS DEPARTMENT

All issues of tender document, opening of tender documents, evaluation of tender documents and
award of both civil and O&M works are the jobs of contract cell. RRVUN LTD Ltd. executes
power plant by awarding contracts covering the specified scope of work to main contractors. The
main contractor is responsible for performance or guarantee of the complete package including
bought out items and outsourced process as such the system of legislation or empanelment of sub-
vendors is proposed by a bidder in pre-award stage for a particular project package with sufficient

29
backup details of their previous experience of similar items but no past experience details are
available for RRVUN LTD Ltd. projects awarded through Corporate Contracts then, name for
such sub-vendors are identified in 'DR'(details required) category.

Functions of DEPARTMENT:

● Purchase Requisition
● Bank Guarantee for High Transactions
● Work Area Contracts
● Materials Handling
● Intermediate Between Indenter and Vendor
● Types of Tender (Single, Limited and Open)

STRUCTURE OF C&M DEPARTMENT

HOD C&M

SUB
OFFICER

CONTRACT PURCHASE STORE

ES ES CENTRAL

JR. JR.
OFFICER O&M
OFFICER OFFICER

Chart 2.5 structure of C&M department

The Structure of C&M Department consists of HOD C&M as the top authority; followed by a Sub
Officer (Supporting Staff). It is then split into three as Contracts, Purchase and Stores heads.
Contracts and Purchase divisions has their own Executive Secretaries. Stores is divided into two

30
as one for Central and other for O&M purpose. The Contracts ES is assisted by two Junior Officers
and the Purchase ES is supported by a Officer of its own.

2.4 INFORMATION TECHNOLOGY DEPARTMENT (IT)

The department is responsible for both the personnel computer and communication wing in
RRVUN LTD Ltd, Chhabra. It also plays an important role in the functioning of all information
systems in RRVUN LTD Ltd,Chhabra an optical fibre connection connects various departments
with the IT department.

The RRVUN LTD .,Chhabrais interconnected using LAN and plants all over India are connected
using WAN network.

The IT department plays an important role in the installation of SAP, ERP package. ERP is
expected to help the company achieve, improve and faster exchange of information, Improved
Productivity and reduction of costs, better data consistency, knowledge sharing and unification of
planning and budgeting process. The IT department looks after the telecommunication facility in
RRVUN LTD, Chhabra. The SATCOM, a satellite communication channel is providing free of
cost communication between any projects all over RRVUN LTD. Internet facility is providing all
over RRVUN LTD.

SAP is used for all of the major business activities; Financial, HRM Procurement, Plant
Maintenance Etc. It is very crucial and important for the plant.

The main IT server is in Headquarters in Delhi. Data recovery setup is in Hyderabad, when one
fails another run. Issue backup function is there. RRVUN LTD own mail sever is also in Delhi. Its
backup also in Hyderabad. lntranet is used for local purpose and Info server is used for Intranet.
There is also an Online Complaint Management System (OCMS)

FUNCTIONS OF IT DEPARTMENT:
31
 ● IT Infra Maintenance
● IT Hardware Maintenance
● IT Software Maintenance
● Office LAN (Office Restricted Surfing)
● Internet LAN (Whole Plant Connected)
● SAP
● Online Complaint Management System (OCMS)
● PRADIP Software (e-Office/Paperless Office)
● DTS (Document Trading System; not used anymore because of PRADIP Software)
● e-shift Log (Control Room Shift Log)
● GePNIC (C&M Department Software)
● GeM (Used before GePNIC came)
● CLIMS (HR Related Contracts; Labour Info Management System; Attendance,
● Information/Data, Complete Details)
● Group SMS (Multiple Message Service)
● RRVUN LTD Alerts (Emergency Alerts)
● Material Gate Pass
● Opinion Poll System (Opinion Poll Feedbacks)
● Contracts Gate Pass (Visitors)
● Current Project Generation App (Real time Generation Data)
● Video Conference (Maintain Connection)
● CCTV Maintenance
● Anti-viruses (Install on Server; Scan, Update to the LAN Automatically, No Human
Intervention; Configure on Scan Launch Time; Update to software)
● Intercom Communication, Maintenance and Processes
● BSNL Co-ordination and function
● Walkie Talkie (For DRG, CISF Securities) Communication, Maintenance and Processes.

STRUCTURE OF IT DEPARTMENT

32
 DGM

SM

ENGINEER

Chart 2.6 structure of IT department

2.5 OPERATIONS AND MAINTENANCE DEPARTMENT (O&M)

RRVUN LTD has consistent track record of high availability and plant load factor (PLF) across
plants based on diverse technologies. RRVUN LTD has emphasized predictive & preventive
maintenance systems to achieve this track record.

Services covered under Environmental Engineering and Management include the following:

● Plant start-up including prescribing pre-operational checks.

● Station management services for Operation & Maintenance services for Coal based and
Gas based Combined Cycle plants.
● Development of Operation and Maintenance Management Systems &computerization.
● Supervision of Equipment Repairs and Unit Overhaul.
● Laboratory tests & field tests.
● State-of-the-art Operation and Maintenance training for coal base and gas base units.
● Performance Analysis and Optimization.
● Condition Monitoring of critical equipment.
● Fuel Management.
● PG test/capacity test.
● Energy audit

33
Primarily it is the operation and maintenance of the power projects which holds the key for being
successful as an Independent Power Producer. RRVUN LTD with its proven world class track
record of operating and maintaining the power stations and having provided this service
successfully to many domestic clients is now positioned to offer this service to International clients
through its International Cell. The O&M service has been tailored for international clients and
consists of the following modules and sub-modules. However, this can be further tailored to meet
any client's expectations

MAINTENANCE MANAGEMENT

The term 'maintenance' means to keep the equipment in operational condition or repair it to its
operational mode. Main objective of the maintenance is to have increased availability of
production systems, with increased safety and optimized cost. Maintenance management involves
managing the functions of maintenance. Maintaining equipment in the field has been a challenging
task since the beginning of industrial revolution. Since then, a significant of progress has been
made to maintain equipment effectively in the field. As the engineering equipment becomes
sophisticated and expensive to produce and maintain, maintenance management has to face even
more challenging situations to maintain effectively such equipment in industrial environment.

FUNCTIONS OF MAINTENANCE DEPARTMENT:

Following are the major functions of maintenance department:

● Maintenance of installed equipment and facilities

● Installations of new equipment and facilities
● Inspection and lubrication of existing equipment
● Monitoring of faults and failures using appropriate techniques
● Modifications of already installed equipment and facilities Management of inventory
● Supervision of manpower
● Keeping records

FUNCTIONS OF O&M DEPARTMENT:

● Preservation of Unit
● Permit System Shit Charge
● Frequency Maintenance of Plant (Some Variations are allowed)
● Commercial Aspects

34
 ● Fuel cost
● Emergency Situation Handling
● Authorizing Plant Entry and Exit at Night Shifts (After 1 pm)
● Reporting Operation Service to Headquarters at Delhi and Regional Headquarters at
Hyderabad
● Switchyard
● Substation Maintenance
● Safety Concerns
● Moisture Maintenance
● Corrosion Maintenance
● Equipment Maintenance

STRUCTURE OF DEPARTMENT (OPERATIONS DEPARTMENT)

35
 AGM
(OPERATION)

MANAGER OFFICE
(GENERAL SHIFT) SECRETARY

HOUSE KEEPING
SUPERVISOR

S.C.E S.C.E S.C.E S.C.E

GROUP 1 GROUP 2 GROUP 3 GROUP 4

D.E D.E D.E D.E

OPERATOR OPERATOR OPERATOR OPERATOR

Chart 2.7 structure of operations department department

The Operations Section of the O&M Department has AGM Operations as the top authority. AGM
is assisted by a Manager General Shift, a House-Keeping Supervisor and an Office Secretary.
Further down the line, there 4 groups of each of a Shift Charge Engineer, Desk Engineer and
Operator in hierarchy.

36
STRUCTURE OF O&M DEPEARTMENT (MAINTENANCE DEPARTMENT)

MECHANICAL
HOS

MAINTENENCE
ELECTRICAL
PLANNING
HOS
HOS

CHEMISTRY & IINSTRUMENT

MAINTENANCE
DM PLANT ATION
AGM
HOS HOS

ENVIRONMENT CIVIL
HOS HOS

FUEL
HOS

Chart 2.8 structure of maintenance department

The Structure of Maintenance Section of the O&M Department consists of Maintenance AGM has
the top authority. AGM is assisted by separate Head of Sections of Mechanical, Electrical,
Instrumentation, Civil, Fuel Management, Environment, Chemistry & DM Plant and Maintenance
Planning.

37
2.6 FINANCE AND ACCOUNTS DEPARTMENT

Every business main intention is to make the profit so, business transaction need to be recorded in
specific format for the calculation of profit or loss at the end of year. Finance department is very
important for every organization to keep the finance related information. Finance department
involved in the recoding of monitory transaction and finalization of accounts which is helpful for
management decisions. Finance department is also responsible for planning of funds requirements
in the future and it needs to find the sources finance.

OBJECTIVES OF DEPARTMENT:

1. Ensuring regular & sufficient supply of capital to business.

2. Ensure affair rate of return to the supplier of the capital.

3. Ensure the best utilization of capital by following the principals of soildity, profitability &
safety.

4. Coordinating the activities of the finance department with those of other department of the
enterprise.

F&A DEPARTMENT

Finance department is headed by CFM and is assisted by a Senior Manager, a Manager, a Deputy
Manager and Three Executives. Finance and Accounts Department is fully computerized and all
payments valuation were done by OLIMFAS package developed by TATA consultancies service
is used in RRVUN LTD.

After the installation of SAP Package, every transaction is recorded and can be easily through this.
Regional officers can verify all materials and book of account, daily production, PFL and all
technical parameters. This installation of ERP reduced the number of codes and now, each and
every transaction in any of the centre will be reflected all over RRVUN LTD Ltd.

The Finance Department consist of various sections as follows:

 Book Section

● Cash and Bank Section

● Establishment Section
● Stores Bill Section and Priced Stores ledger (PSL) Section
38
 ● Work Section
● Miscellaneous Payments Bill Section
● Budget Section
● IT Section
● Concurrence Section

AUDITING:

There are three types of audit which are conducted at RRVUN LTD:

l. Internal Audit

A separate Finance and Account Department under GM (Finance) is operating from Cooperate
Centre, New Delhi, responsible for all internal audit taking place at every quarter, one team from
internal send to audit all account like checking of cashbook, bankbook. all employees payments
and verification of various RRVUN LTD . rules and regulation, checking whether system are
followed or not are the main job of internal auditors and they submit the audit report at New Delhi,
Internal Audit Division.

2. Statutory Audit

These are appointed by government of India under CAG. They are appointed on regional basis of
three years and are eligible for reappointment.

3. Government Audit

Appointed by the Government of India under CAG. Their duty is to verify all system procedures
are followed or not responsibility is to see that any government rules are violated and any losses
are committed to the exchequer.

39
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT

HOD F&A

ES

JR. ASSISTANT
OFFICER

JR. ASSISTANT
OFFICER

JR. ASSISTANT
OFFICER

Chart 2.9 structure of finance department

The Structure of Finance and Accounts Department consist of HOD F&A at the top. Followed by
an Executive Secretary (ES) and followed further by three Junior Assistant Officers.

40
 CHAPTER 4.
COMPETITIVE ANALYSIS

41
4.1 PORTER'S FIVE FORCE ANALYSIS

PORTER'S FIVE FORCES ANALYSIS OF POWER SECTOR:

Industry Rivalry:

● Power producing companies — No competitive rivalry as demand for power is way above
its supply and all the power generated is used up.
● However, with government encouragement, private participation is expected to increase in
the coming years to take advantage of huge demand for power
● Power equipment market - Market leader like BHEL is facing tough competition from
L&T, Alstom, Doosan and most importantly Chinese suppliers.
● Major orders of Boiler, Turbine and Generator grabbed by Chinese suppliers from most of
the private sector clients.

So overall the intensity of competitive rivalry is MEDIUM

Bargaining power of Customer

● Industrial consumers have huge demand for power

● Their bargaining power is low in India as the number of power companies to buy from is
limited in number. Hence power companies are in better position.
● Retail customers -Government regulates the power sector to ensure supply of power at
reasonable prices but this regulation is limited.
● Peak shortage is much more in every region and it is about 12 % on all India basis which
allow suppliers to dictate terms with the buyers.

Overall, the bargaining power of buyers is MEDIUM

Bargaining power of supplier:

● Coal is majorly used for generating power.

● The supply of coal in India is limited and hence coal players are in dominant position.
● Power companies are required to import coal if the domestic supply is not sufficient, which
proves to be an expensive affair.

42
 ● With companies like Lanco, Adani Power buying coal mines in Indonesia. Australia etc.,
To import better grade coal than available in India, market dominance of Govt Companies
like Coal India will subside gradually.

However, looking at the present situation, the power of suppliers is HIGH.

Threat of new entrants:

● Highly capital-intensive industry and hence demands huge investment.

● Power producers — Behemoth like RRVUN LTD, SEBs contributing around 85 % of total
power produced.
● Ditto for Power Grid Corp. of India in Transmission and Distribution Segment
● Major plans by big companies like Reliance power, Adani power, Lanco etc. to make a
entry into power sector after market opened up for private sector through Electricity Act
2003 and subsequent reforms.
● However, obtaining regulatory approvals, fuel linkages, land etc. still remain the major
bottlenecks.

Hence the threat of new entrant appears to be LOW.

Threat of substitutes:

● Power does not have substitute but it can be generated from different sources of energy.
● Currently thermal power is dominant in India, coal being the major raw material.
● Coal availability is limited and therefore power from nuclear. hydro and other renewable
sources could be used as substitute for thermal power in future.
● Arrangements with various countries for nuclear collaboration will give major strength to
nuclear power plant.
● Although demand for power outstrips its supply, going forward, thermal power plant
companies have threats from non-thermal power generators.

Hence the threat for substitute product is MEDIUM

43
 THREAT
OF NEW
ENTRY
(LOW)

SUPPLIER THREAT OF BUYER

POWER SUBSTITUTES POWER
(HIGH) (MEDIUM) (MEDIUM)

INDUSTRY
RIVALARY
(MEDIUM)

Chart 4.1 five force model

44
4.2 SWOT ANALYSIS

STRENG
TH

THREAT
SWOT WEAKNESS
ANALYSIS

OPPERT
UNITIES

Chart 4.2 SWOT analysis

STRENGTH

● Largest market share in domestic power generation and a broad customer portfolio across
the country.
● Excellent track record of performance in project implementation and plant operation.
● Diversified thermal generation portfolio multiple sizes and fuel types.
● Highly skilled and experienced human resources.
● Strong coordination between various functional departments.
● High concern for safety and less accident rates.
● environmental clearance certificate.
● Strong execution of Resettlement and rehabilitation plans.
● Better social support by doing CSR activities.
● High infrastructure facility.
● The 4th largest power generating company in Asia.

45
WEAKNESS

● The unit cost of power is very high (7 per units), compared to power generation from hydro-
electric sector
● High dependence on Coal fuel
● Increasing cost of Coal fuel
● High maintenance cost because the project is implemented in coastal region.
● Role ambiguity and dilution within different lends of the organization.
● Low risk-diversification of business portfolio consists primarily of generation assets.
● Poor financial health of customers.
● Functional orientation hampering cross functional perspective in decision making.
● Long and multi layered procurement process leading to long lead times and process delay.
● Gaps in HR systems such as performance management, rewards and incentives and career
development.
● Inadequate deployment of a strong knowledge management system that could assist in
improving efficiency and effectiveness in all aspects of the business.

OPPURTUNITIES

● Good opportunity in power distribution and rural electrification.

● The company has extended its power generation from thermal to hydro-electric and wind
power.
● Expand generation capacities by putting up thermal and hydro capacities; maintain the
position of a dominant generating utility in the Indian Power sector.
● Broad base fuel mix by considering imported coal, gas, domestic coal, nuclear power etc.
with a view to mitigate fuel risks and maintain long run competitiveness.
● Expand services for R&M and O&M activities in the domestic as well as international
markets. Backward integrate into fuel management to exercise greater control and
understanding of supply economics.
● Lead the development and commercial deployment of non-conventional energy sources
especially in the distributed generation mode.
● Improve business operations by switching to solar powered plant.

46
 ● Execute increased number of power plants that classify for Mega Power Projects status,
thereby reducing the cost of the projects and power and power generated.
● Forward integrate into the distribution business in India.

THREATS

● Since the company adopt JIT fuel management, they have to face problem during scarcity
of fuel in the future
● The higher fuel expenses due to increase in fuel prices.
● Rapid changes of state government policies and decisions.
● Heavy competition especially from private companies
● regulatory and competitive pressure on tariffs.
● Central government norms and policies.
● Fluctuations in coal industry.
.

47
 CHAPTER 5

FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

48
5.1FINDINGS

Following are the findings arrived at from the study carried out at RRVUN LTD, CHHABRA.

1. From the study it is observed that the co-ordination and co-operation between the
employees and the top management is good.
2. It was seen during the study that the company has provided safety instruments for
employees for their better performance.
3. Management has provided all welfare facilities required to the employees.
4. There is a lack of demand for power due increasing price of Coal
5. During the study it was able to understand that the company possess least percentage of
accident rates compare to similar organization.
6. It was observed that the company has taken up lot of initiates for protecting the
environment.

5.2 CONCLUSION

RRVUN CHHABRA THERMAL POWER PLANT is solid fuel base power generating company
of India. The company plays an important role in strengthening the power base of the country's
economic growth. The company is more environment friendly compared to any other. The
company maintains good relationship with their employees and they provide good atmosphere to
work. Further what I analysed during my study that RRVUN CHHABRA THERMAL POWER
PLANT has installed many new technologies in its plant for reducing pollution. RRVUN
CHHABRA THERMAL POWER PLANT helps in developing the local area by providing
education centres, bus stops, street lights and also providing jobs to local people on contract basis.
In this Internship time period, an attempt was made to study about the organization, the various
departments in the organization and to secure practical knowledge regarding the MR, Finance,
Technical Service, Operation and Production aspects of Rajiv Gandhi Combined Cycle Power
Project (Chhabra). This internship helped me to get familiarized with the real-world organization
system, their strategies and to understand the various levels in the organization and the decision
flow process.

49
5.3 RECOMMENDATIONS

1. There is a lack of demand for power due to increasing price of Coal, if the company switch
to solar power it will reduces the unit price of power.
2. Switching to solar powered plant will helps to reduce the transportation cost and storage
cost.
3. Solar power is a long-term investment, it facilitates long term growth of the plant and
thereby increases operational efficiency.

50
BIBLIOGRAPHY

● https://www.RRVUN Ltd.co.in/power-generation/gas-based-power-stations/Chhabra
● https://www.RRVUN
Ltd.co.in/index.php?option=com_content&view=article&id=314&Itemid=84&lang=en
● http://www.rrvun.in.

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