NLC - HR by
NLC - HR by
CHAPTER 1
INDUSTRY OVERVIEW
1.1INDUSTRY PROFILE
India's economic growth has been largely influenced by the mining industry. Although its GDP
contribution is roughly 2.2% to 2.5%, but, if you compare it with the GDP rate of the total industrial
sector in India, you will see that mining contributes to about 10-11%, which is quite a number.
Furthermore, the industry also provides job opportunities to about 7 lakh people in India. Mines
are natural resources (you can even call them the Gifts of Mother Nature) that
accelerate both economic and social development. For centuries, mining activities have constituted
a big part of India’s economy. However, it was not always a healthy place to work in. History
holds that the coal mines in India were sites of extreme exploitation and massacre in the name of
profit. They have come a long way since then. Standing where they are right now, it is quite
unimaginable that the mining industry in India went through such horrible days.
Bauxite, Dolomite, Fluorspar, Gypsum, Iron Ore, Limestone, Copper, Asbestos, Zinc, to name a
few.
The electric utility industry, which evolved from the gas and electric carbon-arc commercial and
street lighting system, began around 1880 when Thomas Edison's Pearl Street power station started
generating electricity in lower Manhattan. Its main purpose was to provide power for one of
Edison's most famous inventions: the light bulb. That first power station provided electricity to 59
customers.
The first AC power distribution system that used electric transformers was built in 1886 and used
to electrify the city of Great Barrington, Mass. Three-phase AC power was sent across a long
distance in Lauffen-Frankfurt, Germany in 1891. Today's electric utilities are working to transition
away from analog and electromechanical technologies and move toward the all digital smart grid.
But long before today's terms were coined, the electric power industry had other debates. How
should line workers be kept safe? What about getting power to air raid shelters during a war?
Should electric meters be hidden from view, or integrated into the décor of a home? From the
pages of Electric Light & Power magazine, founded in 1922 and now in its 91st year, here's a look
back at the electric utility industry from those who wrote about it throughout the 20th century.
CHAPTER 2
4
COMPANY OVERVIEW
NLC India Ltd (NLCIL) formerly, Neyveli Lignite Corporation Limited, a Navaratna enterprise
of Government of India (GOI) is an existing, profit making, public sector enterprise engaged in
mining of lignite and generation of power through lignite based thermal power plants. NLCIL was
established by GOI in 1956, following the discovery of lignite deposits in Neyveli, Tamil Nadu.
NLCIL comes under administrative control of Ministry of Coal, GOI and serves as an important
source of power generation to the states of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala,
Telangana, Rajasthan and Union Territory of Puducherry. NLCIL currently operates four opencast
lignite mines with a combined capacity of 30.6 MTPA. The details of the existing operational
mines are as shown in the table below:
In FY 2017-18, NLCIL achieved an aggregate lignite production of 25.15 MT. NLCIL’s thermal
power station (the units under TPS-I) are South Asia’s first lignite fired and India’s first pithead-
based power station. From the lignite extracted from its mines, NLCIL operates five thermal power
stations with an aggregate capacity of 3,240 MW in the states of Tamil Nadu and Rajasthan. Apart
from lignite-based power plants, NLCIL also operates one coal based thermal
power plant of 1,000 MW (2 X 500 MW) capacity through its joint venture with TANGEDCO,
NLC Tamil Nadu Power Limited. It has also installed solar and wind based power plants. The
details of power plants operated by NLCIL are as shown in the table below:
Power Station Location of plant Capacity(MW) Commissioning
TOTAL 4,531.00
2.2 HISTORY
Neyveli Lignite Corporation (NLC), incorporated in 1956, is the business of lignite mining and
power generation. At present, NLC operates three opencast lignite mines of total capacity of 24
million tonnes and three thermal power stations with total installed capacity of 2490 megawatt.
Neyveli Lignite Corporation is a Public-Sector Enterprise, under the administrative control of
Ministry of Coal. The company also operates subsidiary –– NLC Tamilnadu Power Limited.
It has a chequered history of achievements.
2.3 VISION
2.4 MISSION
Promoting adherence to value-basedculture. Encouraging / Creating an atmosphere of continual
learning and competency building. Devising / Upgrading HR Systems to support organizational
goals. Maximizing stakeholder value in harmony with business goals. Fostering an enabling work
environment that encourages talent and unleashed creativity. Building employee commitment
through collaboration, empowerment and transparent communication system.
As a diversification move and as a socially responsible Corporate Citizen, NLCIL has taken
following Green Energy initiatives:
• 20 MW Solar Power Project with battery energy storage is standing; a first of its kind in
India at Andaman and Nicobar island is in process.
• Various State Governments are pursued for implementation of Solar Projects in their States
by NLCIL.
2.5 MINES
Mine–I – This mine, located on the northern part of Neyveli Township in Tamil Nadu, is spread
over an area of 26.69 sq. km. This mine has reserve of 365 million tonnes and has production
capacity 10.5 million tonnes of lignite per annum. This mine feeds lignite to its 600 MW capacity
of First Thermal Power Station and 420 MW Thermal Power Station I (expanded).
Mine–IA – This mine is spread over an area of 11.6 sq. km. The mine has a reserve of 120 million
tonnes with a production capacity of 3 million tonnes of lignite per annum. It caters to the need of
250 MW independent power project, in addition to the requirement of NLC's Thermal Power
Stations.
Mine–II – This mine was sanctioned by the Government of India in February 1978 with a lignite
production capacity of 4.7 mtpa which was increased to 10.5 mpta in 1983. This mine is spread
over an area 27.74 sq. km and has a reserve of 390 million tonnes.
Thermal Power stations (TPS)TPS–I –– This is South Asia's first and only lignite–fired thermal
power station. This plant was commissioned with one unit of 50 MW and currently possess six
units of 50 MW each and three units of 100 MW each. The company has set up additional capacity
of 420 MW. It has total generating capacity of 1020 MW
8
9
2.6 PROJECTS
Neyveli Lignite Corporation has entered into a joint venture with Gujarat Power Corporation
Limited to set up a mine–cum–power project in the state of Gujarat, at an estimated cost of Rs
6,400 crore. The ministry of coal has sanctioned Advance Action Proposal for taking up certain
preliminary activities. The Government of Gujarat (GoG) has been addressed for water allocation,
mining lease, etc. Feasibility Report and Environmental Report for the mine and power projects
are under preparation.
The company has proposed to set up a coal based mega power plant in the state of Orissa at an
estimated cost of Rs 8,000 crore. In–principle approval of the Government of Orissa for allocation
of land in Rengali Taluk of Sambalpur district in Orissa is awaited. The joint venture company
between Mahanadi Coal Fields Limited, Hindalco and NLC for mining coal from Talabira block
has been established. MCL, being the lead partner is carrying out all pre–project activities.
Geological report has been prepared and EIA/EMP report is under preparation. The mine plan has
been approved and land acquisition is in process.
NLC also proposes to exploit the lignite deposits in Hadla and Palana lignite blocks in Bikaner
district of Rajasthan for the 250 MW power plant to be set up as an extension of the on–going
Barsingsar Power Project.
The main activity of NLC India is Mining(Coal & Lignite) and Power Generation (Thermal
and Renewable Energy).
Mining
10
NLC India at present has four open cast lignite mines namely Mine I, Mine II, Mine IA and
Barsingsar Mine. The lignite mined out is used as fuel to the linked Pit head power stations. Also,
raw lignite is being sold to small scale industries to use it as fuel in their production activities.
Capacity
Mines
( in MTPA)
Mine I 10.5
Mine I A 3.0
Mine II 15.0
Power Generation
NLC India has five pithead Thermal Power Stations with an aggregate capacity of 3240 MW.
Further, NLC India has installed 34 Wind Turbine Generators of capacity 1.50 MW each and also
commissioned 140 MW Solar Photo Voltaic Power plant in Neyveli, resulting in an overall power
generating capacity of 3431 MW (excl. JVs).
Capacity
Power Plants
( in MW)
TPS – I 600
11
TPS – II 1470
Men In Position:
Executives 4046
Workman 9778
GENERAL 7222
OBC 3786
SC 2789
ST 404
Villages Benefitted: 83
Beneficiaries :76688
• Diversifying into coal-based power generation and generation from renewable energy
sources like solar and wind.
• Marching towards 21011MW BY 2025.
13 ASST./CLERICAL W3
14 ASST./TYPING W3
20 TECH.GR.II (B) W4
25 W4
HINDI TRANSLATOR GR-I (W4)
26 ATTENDENT SPL GR A /PERS W5
31 STENOGRAPHER GR. II W5
33 TECH. GR.I.(A) W5
41 STENOGRAPHER GR. I W6
43 ADMN. ASST. W7
44 S.M.E. OPR. W7
50 SR. STENOGRAPHER W7
SR.ADMIN.ASST GR-II W7
53
54 CHIEF CONDUCTOR W8
56 CHIEF TECHNICIAN W8
61 MASTER OPERATOR W8
63 PERSONAL ASST. W8
15
66 SPL.GR.A – COOK W8
70 FOREMAN SG1
71 JR OFFICER(ADMINISTRATION) SG1
81 SG – DRAUGHTSMAN SG2
90 ASST.OFFICER(ADMINISTRATION) SG3
99 ASST.OFFICER(ADMINISTRATION)-SG4 SG4
Strengths:
Mining
Solar 3860 MW
Wind 200 MW
Total 16580 MW
Permanent employee
Temporary employee
CHAPTER 3
• Employee relations
• Statutory complaints
• Compensation and benefits
• Training and development
Employee developments:
The Company gives high priority towards training of executives, supervisors and workers. Apart
from utilising the training facilities available in the Learning and Development Centre of the
Company, the employees are also deputed to other training centres within India. Training facilities
provided by the equipment manufacturers within the country/abroad are also utilised.
Quality Circle activities are co-ordinated in Learning and Development Centre which has given
many benefits to the organisation. Case Study presentation of Neyveli Quality Circles brought
good name by demonstrating their contribution outside Neyveli in many conferences.
Learning and Development Centre is in the job of fulfilling the Training needs of all Categories of
Employees and developing the Skills, Knowledge and Attitude. TRAINING adding VALUE to
LIFE is the mantra for development and indeed the growth of the individual and the organization
to which he belongs. The enrichment of the individual is achieved through the objectives:
• Continual Improvement of the Training Practices using the Skills and Technology to excel
in this Competitive World.
• To effectively utilize the In-house Competency of Human Potential
• To achieve Human Excellence through effective Training Practices.
• To maintain, Review and Update ISO 9001-2008 Quality Management System standard
requirements.
At LDC Training Programmes are conducted under various categories.
20
In-house Training Programmes are planned systematically. All training programmes will start
with prayer and end with a stress relieving Yoga / Meditation in most of the programmes as a
work-life balancing art.
Training @ Site through which large number of employees can be motivated at the work place
itself to perform better. Team Building, Motivation, 5 S, QC Concepts, Official Language Hindi,
Energy Conservation etc., are some of the programmes planned under the category.
OBT - Under Out Bound Training the following programmes are conducted in this year
Employees are deputed for the programmes sponsored by Department of Personnel and Training
of Government of India at various State Government run institutes like
Anna Institute of Management, Chennai, Administrative Training Institute, Mysore, Dr. MCR
Institute of AP, Hyderabad, Institute of Public Enterprise, Hyderabad etc.,
IndustryInstituteInterface
In line with the Industry - Institute Interface, Engineering Students belonging to
Diploma/Degree are permitted to do their In-Plant Training (IPT) and Project work (PW) in the
period between December to July every year. Student community is benefitted by way of
synergizing the theoretical knowledge learned at class rooms with the practical applications at the
plants so as to enrich their creative brains.
Training Ambience
• Fully equipped A/C and non-A/C halls with state-of-the-art facilities creating an ambience
for effective training.
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• Mini-Auditorium of 100 seats capacity to cater micro meetings. Buffet System in Dining
to choose their liking and avoid wastage.
• Auditorium of 300 seats capacity to host Corporate Events.
NLC continues to maintain cordial industrial relations. The Joint Council of Unions and
Associations of Engineers and Officers are functioning in NLC effectively. The Management has
a regular system of discussions on common matters which helps to maintain good industrial
relations and to create mutual trust and belief among the employees.
Welfare facilities
villages will be done by engaging the services of Voluntary Organisation.NLC India Ltd. is a
pioneer in open-cast mining and Major Indian Non-State Player in Lignite Mining and Power
Generation Business. NLCI views its Business as an opportunity to set up the mechanisms for
sustainable socio-economic development of its operating regions and also for contributing to the
Nation Building Efforts. NLCI's business strategies are closely linked to its Corporate Social
Responsibility (CSR). NLCI's CSR is aimed at Human Development through innovative strategies
and measurable social impacts. A Holistic Approach is adopted by NLCI for achieving Inclusive
Growth in its operating regions by means of formulating and implementing projects, programs and
activities for the benefit of neighborhoods in the focus areas of Rural Infrastructure, Water, Health,
Education and Capacity Building / Skill Development etc. with continued social impacts. NLCI
has been taking up various CSR projects / activities for the benefits of inhabitants of neighboring
village’s right from its inception and had adopted a full-fledged CSR policy from the year 2009
The actions will be taken under standing order chapter- 8 point 46 from NLCIL for non- executives
and chapter 10 for employee (conduct) rules, for executive (rule 26)
1. Unauthorized absent
Employees who take leave more than 10 days without any proper information will be taken
action under standing order.
2. Negligence od duty
1. Missing during work hours
2. Theft
3. Misconduct
4. Damaging the property
5. Unwanted talk about the superiors
6. Sleeping during the work hours
Procedures:
24
Step 1: Without informing the superiors taking leave more than 10 days will take into account for
the Issue of memo to the employee address. While on the same time they will track the post
whether it is received or not, this will be recorded simultaneously. Then to, if the employee is not
responding within 3 days then,
Step 2: After 15 days if the employee is not responding then they will Deactivate the card. At
that period of time they will organize the first enquiry officer and presenting officer by the
management. That original copy of the enquiry report will be send to the employee address.
Minor punishment:
a) Warning/fine,
b) Censure,
c) Stoppage of Increment,
Major punishment:
Finally, this case will take to vigilance/ department case. The removal order will be send to the
employee address.
Suspension order
MIP AT MINE- I:
• Unskilled employee,
• Semi-skilled employee,
• Skilled employee,
• Highly skilled employee,
• Supervisors.
For these employees the conduct workers head need to submit the personal and
qualification of the employee who are working under them. The certification contains
Registration of wages,
ii. Form-III Under rule 21 (2) of the contract labour (Regulation and Abolition)
central rules, 1971, and rules 7(3) of the inter-state migrant workmen (regulation of
employment and conditions of 1970 service) central rules, 1980)
Centre for Applied Research & Development (CARD) is the in-house R&D Centre of NLC India
Limited and has been recognized by the Department of Science & Technology since 1975. The
testing and R&D facilities were upgraded under a project (LERI) sponsored by United Nations
Industrial Development Organization (UNIDO), Vienna during 1995 - 2000. The main objective
was to strengthen CARD to improve its capability to provide analytical, environmental services of
national and international experts were utilized for lignite utilization and opencast mines, power
stations related problems and acquired sophisticated equipments, training and established
combustion and gasification testing facilities. The major functions of CARD are carrying out
Science & Technology Projects (Ministry of Coal), In-house S&T Plan Projects, Pollution level
measurements, Quality control Testing & Consultancy services, Pilot Plant studies based on R&D
and commercialization of technology developed, Coordination of S&T projects taken by other
NLC Units, Institutional services for students, Special studies for operation & new schemes etc.
Testing Facilities
CARD has a well-established analytical facility and is rendering analytical services towards
quality control of various products/materials used in mines, power stations and other service units
27
as well as outside agencies. The analytical testing facility includes lignite analytical, microbiology,
material testing, environmental section, soil mechanical section, metal testing, paint testing,
general analytical, petrography etc. The sophisticated instruments available include Scanning
Electron Microscope with EDS, ED-X-RAY Fluorescence Spectrometer, Elemental Analyzer,
TGA/DTA, Heating Microscope, Inductively coupled Plasma spectrometer, Atomic Absorption
Spectrometer, High Pressure Liquid Ion Chromatograph, Nitrogen Analyzer, Fluorescence
Microscope, Petrography microscope, Metallurgical Microscope, Surface area analyzer,
Continuous Ambient Air Quality Monitoring System, Power quality analyzer etc. CARD facilities
are available for internal use and utilized by other agencies like SAIL, BHEL, MECL, GSI,
STCMS etc. Scanning Electron Microscope Real time Air Quality Monitoring System CARD has
implemented Laboratory Information Management System (LIMS) an application tool for all day-
to-day sample related works.
CARD is carrying out various R&D works on lignite utilization, diversification, product
development, by-product utilization, solid waste management, wasteland reclamation, corrosion
evaluation and prevention etc. For implementing these projects, CARD is associating with outside
agencies like, IIT-Delhi, IITM-Chennai, IIT-Kharagpur, CIMFR-Dhanbad, TNAU-Coimbatore,
BHEL-Trichy, Anna University-Chennai, Madras University-Chennai, Annamalai University-
Chidambaram, NIIST-Thiruvananthapuram, VIT-Vellore, NIT-Trichy, CECRI-Karaikudi,
28
VCRC-Pudhucherry, IRERC, Kollam, etc. Based on the R&D works, some of the processes have
been scaled up to pilot plant scale. The projects include Ministry of Coal funded R&D projects as
well as in-House S&T funded projects. CARD has completed seventeen projects funded by
Ministry of Coal and seventeen projects under in-house R&D. There are two on-going Ministry of
Coal funded projects and nine on-going projects under in-house R&D and a study on upgradation
of brown coal in association with M/s Kobe Steel Ltd., Japan with a funding from NEDO, Govt.
of Japan. CARD/NLC has conducted extensive studies on mine spoil reclamation, integrated
farming system, slope stabilization, ash pond reclamation, utilization of Fly ash, bottom ash and
bottom slag etc. Corrosion studies have been conducted in SME structures of Mines to develop
suitable coating material. Corrosion studies are also being conducted in SWC pumps to prevent
erosion-corrosion due to adverse conditions in mining environment.
CARD has patented a process for the production of potassium humate from lignite. Potassium
humate helps to build up organic matter status in soil and is a plant growth stimulant. By
commercialization of this product, lignite will have a diversified utility in producing a value added
product and thereby promoting agricultural growth in the country. CARD successfully completed
a joint R&D project with National Institute of Interdisciplinary Science & Technology (NIIST),
Thiruvananthapuram, for development of a process for the production of activated carbon from
Neyveli lignite. This is a novel method for the production of activated carbon from lignite . Zeolite
has been synthesized from Neyveli lignite fly ash under the consultancy project given to
IIT/Kharagpur for the reduction of calcium in blow down water of Thermal Power Stations.
Feasibility studies on using zeolite are proposed on pilot scale water treatment plant at CARD.
29
CHAPTER 4
ANALYSIS
Strengths
30
• NLCIL, a ‘Navratna’ company operates the largest open cast mine in Asia atNeyveli and
has a track record of over 50 years in successful lignite mining.
• NLCIL has been operating lignite-based power plants for the past 40 years making use of
the lignite mined from its mining operations as fuel there by improving efficiency of the
power plants.
• NLCIL has a strong network of interconnected mines and power plants wherein the excess
lignite earmarked for one power plant can be transferred to boost the efficiency of other
power plants thereby functioning as a well integrated mine and power utility.
• NLCIL has implemented its first coal based power plant in a joint venture with Tamil Nadu
state power utility (with the first unit commissioned in June 2015 and second unit in
August 2015), in Tuticorin and has hence already started the process of diversifying its
resource base.
• NLCIL has also formed JV with Uttar Pradesh RajyaVidyutUtpadhan Nigam Limited
(UPRVUNL) for setting up NUPPL and is also in final stages of acquiring Power project
of DVC.
• NLCIL has implemented its first renewable energy-based power plant (a 10 MW Solar
power plant at Neyveli and a 43.5 MW Wind Power plant are commissioned so far).
• NLCIL currently has an external credit rating of AAA+ and is able to raise the funds at the
lowest possible rates allowed for the Banks to fund the corporates.
• NLCIL has accumulated huge cash reserves through successful operations and the same
has enabled NLCIL to invest in upcoming projects on its own.
Weakness
• NLCIL on account of its long history has been operating some aged powerplants which
are relatively inefficient and are hence in need of up gradation. The thermal power plant
(TPS II) is nearing its residual life (30 years) of the plant. Due to aging, maintenance
requirements have increased. NLCIL plans to decommission TPS-I (600 MW) which is
31
more than 40 years old and replace it with Neyveli New Thermal Power Station (1000
MW).
• Stripping ratio is continuously on the rise due to ageing of NLCIL’s lignite mines which
increase cost of mining. NLCIL is assessing development of new mine areas located in
Neyveli which could have a lower stripping ratio and is looking at gradually phasing out
the mines which become uneconomical over a period of time. Strictly Private &
Confidential Up-dation of Corporate Plan 2018-2025NLC India Ltd 13
• The proposed power plants of NLCIL had undergone a delay in terms of implementation.
The delays are mainly attributable to delayed supplies of Specialized Mining Equipment
(SME) and delayed supply and erection of main plant package of thermal projects. Since
NLCIL is planning a pipeline of new and large projects across the country, it is necessary
to take steps to ensure timely supplies and erection and commission in the future to avoid
cost and time overruns with the incorporation of suitable clauses in the supplier’s contract.
Opportunities
• The company has already acquired lignite mines in Rajasthan and plans to set up lignite-
based power plants in addition to the existing one at Barsingsar to operate efficiently
utilizing the lignite mined.
• The company has proposed plans to set up two 1980 MW coal-based power plants (in
Odisha Phase I &II and Ghatampur) and has been allocated coal blocks by GoI for these
projects. NLCIL can leverage their mining experience to ensure effective development of
these coal mines and the same will enable NLCIL to acquire operational expertise with
regards to coal-based power plants. NLCIL plans to acquire coal mines in India to enhance
the rawmaterial reserves and enable diversification of fuel resources.
• NLCIL has opportunity to utilize its expertise in energy to provide energy consultancy
services to industry players such as state utilities who may need to improve the efficiency
of their projects to save costs.
• NLCIL is already in the process of implementing renewable energy based power projects
in wind and solar sector which will further diversify its generation base.
• Thrust by Government of India for development of power through Renewable energy and
acquisition of Power Assets
Threats
32
• Given the massive capacity addition plans in the renewable sector, CEA, in itsdraft national
electricity plan estimates no requirement for new coal plants in2017-22. Considering the
potential for renewable energy, NLCIL’s Board has given in principle approval for
installation of Solar Power Projects to the tune of 3,400 MW, subject to techno-commercial
viability, in various states. NLCIL has already set up a 10 MW Solar and 43.5 MW Wind
power plants. NLCIL shall adopt cleaner and more efficient technologies for setting up of
the proposed thermal plants.
• NLCIL has limited opportunity to grow its lignite reserves. Lignite reserves in India are
estimated at around 43 billion tons, of which 79.5 percent occur in the southern State of
Tamil Nadu. Other states where lignite Strictly Private & Confidential Up-dation of
Corporate Plan 2018-2025 NLC India Ltd 14 deposits are located are Rajasthan, Gujarat,
Kerala, Jammu and Kashmir and Union Territory of Pondicherry. Out of the 43 billion tons
of lignite, only about 5.18 billion tons are regarded as mineable, leaving a large chunk of
around 38 billion tons of unmineable lignite reserves. NLCIL need to diversify its portfolio
to another source of power generation and NLCIL has already taken steps towards the same
as enumerated earlier.
• The lignite generated from the mines currently operated from NLCIL’s mines at their
current operating efficiency may not be sufficient to meet the increased lignite requirement
on account of capacity addition of lignite based plants and sales to Independent Power
Producer TAQA and external parties. NLCIL has to improve the efficiency of the mines
and also synchronize the commissioning of the proposed new plants with the
commissioning of proposed new mines/augmentation plans of existing mines. NLCIL has
already taken steps in this regard and has improved the mine availability of its existing
mines to 86.96% which is the highest in its history.
• The increasing cost (both social and economic) of land acquisition may delaythe proposed
projects of NLCIL and also impact the operating cost of power projects. Land acquisition
for expansion is becoming difficult with legal petitions for enhanced compensation. As of
now, there are over 6800 Land Acquisition Original Petition (LAOP) cases against NLCIL.
• NLCIL being located in an area in close proximity to the sea have faced instances where
flooding has impacted the mine production. NLCIL has implemented proactive measures
33
like pre-monsoon preparation and regular pumping of water which has minimized the
impact on production.
• Increased competition from IPPs has resulted in highly competitive tariff rates being
quoted. NLCIL will have to ensure operational efficiency so that it can compete with IPPs
in tariff based bidding process and NLCIL has taken steps towards the same by
implementing coal-based power projects. NLCIL has also requested for exemption from
competitive bidding route in specific cases and the same is under review
1 Political
NLCILused to be a portion of Qing dynasty before the early twentieth century. Being considered
as an of import military country between Bolshevik Russia and Qing dynasty. And so with the aid
of Bolshevik Russia. the Outer Mongolia has separated from a state of Qing dynasty and go a
Soviet system modelled state. Before the prostration of the U. S. S. R. . NLCIL has no important
popular agitation during the one-party communist system period. And with the reformation of the
province system. which is altering from communist regulation to the parliamentary system with a
multi-parties’ Congress. NLCIL has reverted to the stabilization of its political environment. ( U.
S. Department of State Background Note of NLCIL. 2007 )
* Since the Outer NLCIL was separated from China in 1946 and became an independent state. its
domestic political environment is changeless until the decomposition of the U. S. S. R. happened
in early 1990s ( NLCIL. 2010 ) . Because of the disappearing of the Soviet aid. NLCIL has felt
into a really deep recession. which taking to the reformation on province system ( U. S. Department
of State Background Note of NLCIL. 2007 ) . Then with the stabilization of the political
environment. NLCIL authorities introduced the free-market economic sciences and wide
denationalization of the once centrally determined economic system. which lead to a steady
economic growing return in the first decennary of twenty-first century ( U. S. Department of State
Background Note of NLCIL. 2007 ) .
* In mid-2006. the NLCIL Parliament has passed a profile about revenue enhancements on the
windfall net incomes of Cu and gold. Meanwhile. chief amendments to the minerals jurisprudence
34
which legalised the activities that authorities can take an equity portion in major new mines ( U.
S. Department of State Background Note of NLCIL. 2007 ) . And the influences of these Torahs
are non demoing up presently ( U. S. Department of State Background Note of Mongolia. 2007 )
.
* However. in comparing of the middle-east states. there is no information base which shows that
NLCIL is affected by any terrorist act.
2 Economic
* The economic form of NLCIL is assorted economic systems. With the influence of the U. S. S.
R. Mongolia has been through a period of state-run economic system ; and with the prostration of
the U. S. S. R and the undermentioned deep recession. NLCIL has embraced the free-market
manner economic sciences and enlarged the denationalization of the old economic system ( U. S.
Department of State Background Note of NLCIL. 2007 ) .
* The World Country Profiles showed that traditionally. NLCIL economic growing form is
majored in the herding and agribusiness primary merchandises exported to the neighbour states.
But in recent old ages. with the find of the assorted minerals being and the excavation industry’s
rise. the secondary industry particularly the excavation industry has become one of the engines for
economic growing. In add-on. because of the farness and uncontaminated natural beauty. the
touristry and service industry has become another ground of the economic growing roar ( U. S.
Department of State Background Note of NLCIL. 2007 ) .
* In 2006. the NLCIL Parliament passed the corporate income revenue enhancement
jurisprudence. taking at cutting the revenue enhancement load and promoting the growing of
economic system ( U. S. Department of State Background Note of NLCIL. 2007 ) . The series of
activities which may be a benefit for the foreign company to fall in the excavation industry and
have a corporation with the local authorities.
3 Social
* The informations base of Central Intelligence Agency indicates that the labour force of Mongolia
is 1. 068 million in 2008 ; the business of the secondary industry sector is merely 5 % of entire.
Furthermore. the information base in 2009 besides shows that the average age of the whole
35
population of Mongolia is 25. 3 old ages. in which male are 24. 9 old ages. while the unemployment
rate in 2008 is 2. 8 % ( CIA. 2010 ) . It can be concluded that the major labor force for the
excavation industry are ample. puting up a excavation company in NLCIL can assist the local
authorities solve the unemployment job.
* By the terminal of 2004. the population below poorness line in NLCIL is 36. 1 % ( CIA. 2010 )
. Large population are trusting the traditional agribusiness and herding industry and can non back
up the household. And because of the influence of the communist belief. NLCIL people’s societal
values are comparatively simple. and may hold large ideas and immense motivations to gain more
money and built their place. their attitude towards working must be positive.However. there might
be a favoritism trends among the Mongolian people towards Chinese business communities. even
though the cardinal authorities has a comparatively good relationship with China. That may be
concluded as a historical ground. And because of the local Chinese’s mode are non acceptable by
the NLCIL people and have a bad influence among the local usage. ( The strong anti-China temper
of Mongolia. 2009 )
4 Technological
* There is few literature resources about the proficient footings in Mongolia can be found. but the
lone factor that can be certain is that NLCIL authorities spend about 5 % of GDP on its instruction
outgos and the school life anticipation is 13 old ages on norm. harmonizing to the database of the
World Factbook ( CIA. 2010 ) . 4. 5 Legal
* There are established Torahs of NLCIL on Legal Status of foreign Citizens. which was enacted
in December 1993. and the most recent amendments were executed in December 2000. taking to
protect the rights of the foreign citizens ( Lynch & A ; Mahoney. n. d. ) .
* The Company Law of NLCIL is enacted in August 1999. puting up the basic constructs from the
company’s foundation to operation and many other factors in NLCIL ( Lynch & A ; Mahoney. n.
d. ) .
36
CHAPTER 5
CONCLUSION
CONCLUSION:
The study gave a wide exposure towards the industrial welfare, safety measures and
practical aspects regarding the functioning of an organization. Each and every organization plays
an important role in the welfare measures (i.e.) labour welfare is the key to smooth employee-
employers relationship, because success of an organization depend upon the identification of
various departments in the organization and their respective roles in the functioning of the
organization with various information regarding company profile, products, production process,
quality control and organizational structure of each department.
37
The training period has also provided the opportunities to develop and improve soft and
functional skills. All of this valuable experience and knowledge that have gained were not only
acquired through the direct involvement in task given but also through other aspects. Throughout
the forecast period, competition is expected to be high and manufacturers are likely to concentrate
more on solutions based approach and consolidating their share through strategic acquisitions.