MANPOWER OPTIMIZATION -

EXPERIENCE OF
Member
Organizations:
• NHPC
• BBMB
• DVC
• NTPC
• NEEPCO
• NHPC
• NTPC • POWERGRID
• PFC
• POWERGRID
• REC
• SJVN
• THDC

Chief Patron:
Secretary-Power,
Govt. of India

Patrons:
CEOs – Brought out by
Member Organizations
Power HR Forum Sectt.
Power Management Institute/NTPC
Members: Plot No 5-14, Sector 16 A
Heads of HR – NOIDA -201301
Member Organizations

The information contained herein is strictly confidential. It may

not be disclosed or furnished to any third party without approval
www.powerhrforum.org from Power HR Forum Sectt. or your organization.

For Internal Circulation only

 CONTENTS

Page
A. Manpower Optimization in NHPC 1-22
1. The Background 1
2. Manpower At Operating Power Stations 2
2.1 Constraints 2
2.2 Norms 2
2.3 Estimation of Manpower 2
2.4 O&M Expenses 3
2.5 Examination & Methodology 4
2.5.1 Internal Benchmarking 4
2.5.2 Manning at Dhauliganga Hydroelectric Power Station 6
3. Manpower At Power Projects 14
3.1 Constraints 14
3.2 Norms 15
3.3 Estimation of Manpower 15
3.3.1 Parameters 15
3.3.2 Requirement of Manpower 16
4. Future Strategies 20
4.1 External Benchmarking 20
4.2 Surplus Manpower & Planned Interventions for Optimization 20
4.2.1 Redeployment 20
4.2.2 Separation 20
4.2.3 Ban on Recruitment 20
4.2.4 Multi-skilling & Job enrichment 20
4.3 Interventions identified for upgrading surplus/obsolete manpower 21
4.4 Outsourcing 22

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Page

B. Manpower Optimization in NTPC 24-32

1. The Background 24
2. Present Manpower Situation 25
3. Manning of Operating Power Stations 25
3.1 Manpower Norms 25
3.2 Manpower Pattern 26
3.3 International Benchmarks 28
4. Manning of Projects 29
5. Manpower Optimisation Strategies 29
6. Organisational Setup 30
6.1 Regional Headquarters 30
6.2 Gas Stations 31
6.3 Coal Based Super Thermal Power Project 32

C. Manpower Optimization in POWERGRID 33-44

1. The Background 33
2. Manpower Planning at POWERGRID 33
3. Development of Manpower Norms 35
4. Training, Retraining & Deployment Strategy to Achieve 38
Optimization of Manpower
5. Business Results 41

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Manpower Optimization in NHPC

1. THE BACKGROUND

National Hydroelectric Power Corporation Limited (NHPC), A Govt. of

India Enterprise, was incorporated in the year 1975 with an objective to plan,
promote and organise an integrated and efficient development of hydroelectric
power in all aspects. Later on NHPC expanded its objects to include other
sources of energy like Geothermal, Tidal, Wind etc. Since its inception in 1975,
NHPC has grown to become one of the largest organisation in the field of hydro
power development in the country. With its present capabilities, NHPC can
undertake all activities from concept to commissioning of Hydroelectric
Projects.

At present, NHPC is a schedule 'A' Enterprise of the Govt. of India with

an authorised share capital of Rs. 1,50,000 million. With an investment base of
over Rs. 2,22,000 million, NHPC is among the top ten companies in the country
in terms of investment.

Initially, on incorporation, NHPC took over the execution of Salal Stage-I,

Bairasiul and Loktak Hydro-electric Projects from Central Hydroelectric
Projects Control Board. Since then, it has executed 10 projects with an installed
capacity of 3755 MW on ownership basis including projects taken up in joint
venture. NHPC has also executed 3 projects with an installed capacity of 79.35
MW on turnkey basis. Two of these projects have been commissioned in
neighbouring countries i.e. Nepal and Bhutan.

Presently NHPC is engaged in the construction of eleven projects aggregating to

a total installed capacity of 5623 MW including 520 MW under implementation
by NHDC (Narmada Hydro-electric Development Corp.). NHPC has planned to
add 2480 MW during the 10th Plan period and 7707 MW during 11th Plan period
and it is planned to add over 15,000 MW of hydropower capacity by the end of
12th plan (year 2017). More information related to operating stations, ongoing
projects and other information about NHPC, is available at the company’s
website www.nhpcindia.com

Present manpower strength of NHPC is approx. 13200 and in order to have

optimum manning at operating hydro-electric power stations and projects,
NHPC has been continuously trying. In the subsequent pages, this endeavour
has been illustrated, for the purpose of serving as a reference document for
others. The aspect of optimization of manpower has been covered in three broad
sections; optimization of man-power at operating stations and of construction
stage projects and future strategies.

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2. MANPOWER AT OPERATING POWER STATIONS

2.1 Constraints
The requirement of manpower for a particular Power Station depends, to a
large extent upon the following major parameters:

• Number of Machines / Units installed, irrespective of capacity.

• Location factor i.e. distances between Power House & Dam, as it may be
a deciding factor for construction of colony, Hospitals / dispensaries /
clubs etc.
• Extent of Remoteness, as it may be a deciding factor for level of
outsourcing some of the indirect activities.

What makes it difficult to asses the manpower requirement with respect to

capacity (MW) of the station is the fact that every machine / unit requires a
dedicated crew with fixed skill mix, irrespective of unit size. Therefore if unit
capacity is higher, the Men/MW ratio will be lower and the vice-versa. Thus
for manpower estimation exercise should be independent of linkages to
capacity.

2.2 Norms
For projection of manpower for hydro stations in the country Nation Power
Plan has estimated a norm of 2.43 men/mw for VIII plan and 2.00 men/mw for
IX Plan. Fixation of Norm for X Plan is currently under process of
finalization for which the primary data is being collected form various
organizations.

2.3 Estimation of Manpower

The Manpower Estimation Exercise takes into account and mainly dwells
upon following parameters:

• CEA guidelines
• Job profile
• Organization Structure
• Outsourcing
• O&M expenses provided by CERC

Over a period of time, various workshops were conducted at various power

stations for the said objectives aimed at evolving trend setter HR practice in
the corporation, job profile and specification were prepared with an eye an
efficient manpower planning, productivity enhancement well defined sphere
of functions and responsibilities. The process of development of Job Profile
evolved around standardization in term of number of department and evolving
Manpower Norms as reflected in Table-1.

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TABLE-1

Description Manpower Remarks

Norms
Station Head Sectt. 24 Manpower for technical service, Health
services & Vigilance
Civil Engineering 60 Dam / Water conductor system, Disaster
Department & Reservoir Management, Land
Management, infra structure, Civil /
Contractors, Hydro Mechanical.
Power Engineering 141 Power House Operation, P/H Maintenance,
Department Instrumentation, Communications, Elect.,
maintenance of colony, materials & transport
mgmt., Fire & Safety.
Human Resource 24 Establishment, Recruitment, Industrial
Department Relation, Administration, Training &
Development, Public Relation, Rajbhasha
& Law.
Finance Department 19 Salary, Banking, Stores & PSL and
Compilation
TOTAL 268
Note: Details regarding job profile, organization structure available in Job
Profile handbook of NHPC.

Moreover, manpower requirement may vary either on higher or lower side

depending upon the no. of location / distances, level of outsourcing, adoption
of latest technology etc.

As to the outsourcing, the following activities of Power Station are generally

outsourced:
• Security
• Running & maintenance of Guest house, canteens, field hostels
• Housekeeping
• Major maintenance of equipment
• Vehicles except those of station Head, VIP, Fire tender, Ambulances etc.
• Other unskilled activities

2.4 O&M Expenses

This is the main guiding factor for estimation of manpower for a particular
Power Station. O&M expenses provided by CERC are 1.5% of the capital
cost of the project including expenses towards employees remuneration,
Repair & Maintenance of machines and Administrative expenses. In most of
the Power Stations the actual O&M expenses are exceeding the expenses
provided by CERC. Main culprit for this is expenditure on account of
manpower which is about 80 to 121% of the expenses provided by CERC thus
leaving little scope for incurring expenses for R&M of machines &
administration. In a sense Additional O&M expenses are direct loss to the
company.

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2.5 Examination & Methodology

The O&M expenses provided by CERC constitutes the following type of
expenditures:

• Repair & Maintenance of machines

• Employee remuneration
• Administration expenses

However, the employee remuneration being so high, there is hardly any space
left for other expenses. It is pertinent to mention that CERC approves
expenditure in lump sum @ 1.5% of the capital cost of the project without any
distinction of percentage share of R&M of machines, employee remuneration
and administrative expenses. Thus it is imperative that some kind of internal
benchmarking is evolved to keep a tab on exorbitant employee remuneration
which is eating into organizational profitability.

2.5.1 Internal Benchmarking

Corporate Industrial Engineering Group, NHPC has thoroughly examined the
entire issue in the perspective of CERC O&M expenditure, Job profiling.
Manpower Study, employee remuneration expenses etc.

After the through scrutiny, the power stations / upcoming projects have been
classified into 4 types based on installed capacity. This is done to figure out
Av. Cost / MW at market prices as indicated in Table-2.

TABLE-2

Capacity Range Av. Cost / Installed Capacity

(MW) [Rs Cr. / MW ]
Up to 100 9.9
101-200 6.60
201 - 350 6.30
351 – 500 5.50
Above 500 5.00

The optimum manpower has been estimated. Parameters i.e. job profile, on
the basis of various level of outsourcing which is as follows:

TABLE-3

Capacity (MW) Estimated Nos.

Upto 100 150
101 - 200 260
200 - 350 325
351 - 550 390
500 & above 475

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Taking the manpower cost @ Rs. 3.5 lacs per employee; the employee
remuneration expenses have been calculated. Based on av. Cost / MW for
select project / Power station from each classified category, the benchmarks
have been evolved for employee remuneration as % of CERC O&M
expenditure.

The following table-4 elucidates the methodology:

TABLE-4

Capacity Select Av. Capital Assuming Manpower Man/ Employee Employee

Range Capacity Cost Cost CERC as per MW remuneration remuneration
(MW) (MW) / (Rs Cr) Expenditure evolved Ratio as per evolved as % of
MW @ 1.5% of norms (nos.) norms @ Rs. CERC
(Rs. capital cost 3.5 lacs p.a. (proposed
Cr.) per employee Norms)
(Rs. Cr.)
(Rs. Cr.)
Up to 100 60 9.90 600 9.00 150 2.50 5.25 58.33
101 to 200 180 6.60 1188 17.82 260 1.44 9.10 51.07
201 to 350 280 6.30 1764 26.46 325 1.16 11.38 42.99
351-500 480 5.50 2640 39.60 390 .78 13.65 34.5
500 & 690 5.00 3450 51.75 475 .69 16.63 32.13
above

Thus we may fix employee remuneration as percentage to CERC.

O&M expenses is indicated in Table-5

TABLE-5

Capacity Range (MW) Proposed Norms (Rs. Cr.)

Up to 100 5.25
101 to 200 9.10
201 to 350 11.38
351-500 13.65
500 & above 16.63

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2.5.2 Manning at Dhauliganga Hydroelectric Power Station

The estimation of manpower requirement of Dauliganga Hydro-electric Power
Station has been done as per the above. In the subsequent pages (6-12), the
manning structure of the departments of Dhauliganga HES has been
illustrated.

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Organisation Structure for Dhauliganga Power station

(Manpower functional centre wise)

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Organisation structure for Dhauliganga Power Station Head Secretariate

General
Manager

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Organisation Structure of HR Deptt at Dhauliganga Power Station

Note: Attendants: 02 nos.

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Organisation Structure of Finance Deptt. at Dhauliganga Power Station

Note: Attendant=02 nos.

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Organisation structure for Civil Engineering Deptt. at Dhauliganga Power Station

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Organisation Structure of Power Engg.Deptt. at Dhaliganga Power Station

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3. MANPOWER AT POWER PROJECTS

3.1 Constraints
The requirement of manpower for a particular project in construction stage
depends upon the following major parameters:

• Number of locations i.e. Dam, Power House etc.

• Design features of Project i.e. Type of Power House, length of Tunnel,
number of adits etc.
• Mode of Construction i.e. Departmental or package contracting /
Turnkey basis.
• Topographical conditions etc.

Like Power Stations it is not feasible to link the manpower requirement with
the capacity of Project. A number of organizations including various stage
Electricity Boards of the country as well as “Sub Group” set by the
Government for a study on Manpower Planning have endeavored to make a
detailed study for setting up uniform Manpower norms, however, could not
finalize any such norms primarily for the following valid technical reasons:

• Composition of a Hydroelectric Project situated in an arduous and

difficult terrain is unique by itself.
• Unlike thermal (Coal based / oil fired) and nuclear counterparts, hydro
projects are absolutely non-standard in design and layout.
• Hydro projects are tailor made to suit the site conditions (topography,
hydrological situations, geo-technical environment etc.) and Design and
Layout of a hydro project has no relation whatsoever with the installed
capacity (MW).
• Generating Units of certain capacity can be relatively very small if the
head available is high. Therefore, smaller size generating units would
naturally require reduced dimensions of Power House Civil Works.
• A very small capacity project can have a long water conductor system
passing through a complex topography and geology necessitating
considerable civil engineering efforts.
• NHPC is operating mostly in Himalayan region & North East region
where geology is highly typical. The kind of geological surprises that
we come across make it impossible to think of any norms of Manpower
Planning.
• Manpower norms even if existing abroad will have no relevance to
Indian conditions in view of a very large gap in technological level,
large difference in geo-technical environment and also large variation in
social and climatic conditions.
• Items of work undertaken by contract labour differ from project to
project. While many of the jobs in projects are done by contract labour,
some projects primarily engage departmental manpower whereas some
are constructed on turnkey basis under bilateral agreements.

In view of the above, all over the country, manpower deployment at Hydro
Construction sites is need based and is decided by experience on case-to-case

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basis. Each project has therefore to be considered as a case by itself. As may

be appreciated, some projects will have long underground tunnels, some will
have surface power channels, in some cases there would be surge tank deep
down the hill and in some cases it would not be there at all. Even project
modules are at large variance.

3.2 Norms
For projection of manpower for construction hydro station in the country
National Power Plan has estimated a norm of 2.75 Man / MW.

TABLE : Man/MW status at our ongoing projects:

Project Capacity Manpower Men / MW ration as per

MW Sanction In-position Sanction In-position
Dulhasti 390 743 747 1.90 1.91
Teesta-V 510 535 579 1.04 1.13
Sewa-II 120 247 434 2.05 3.61
Teesta L/D-III 132 164 207 1.24 1.56
Parbati-II 800 766 944 0.95 1.18
Subansiri Lower 2000 465 362 0.23 0.18
Chamera-III 231 278 343 1.20 1.48
Parbati-III 520 304 148 0.58 0.28
Total 4703 3502 3764 0.74 0.80

3.3 Estimation of Manpower

3.3.1 Parameters:

In NHPC perspective, while estimating manpower, the following parameters

taken into consideration:

3.3.1.1 Organization Structure

• Number of locations & distances

• Design features of the Project
• Organization structure – Functional Areas
• Job Profile
• Establishment expenses as approved in DPR
• Mode of Construction

3.3.1.2 Functional Areas:

The following functional areas have been identified while estimating
the manpower requirement for each of the project :

Construction Works
• Dam & Diversions
• Surge Shaft, Penstock
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• Water conductor for system & Reservoir management

• Power House Complex
• Tail Race Tunnel
• Head Race Tunnel
• Geology

Support Services (Technical)

• Planning, C-ordination & Monitoring
• IT & Communication
• Infrastructure (Roads, buildings, bridges, land acquisition, forest,
environment)
• Procurement / Contracts
• Quality Control
• Safety
• Workshops, field repair & maintenance, store, transport

Common Service
• Finance & Accounts (Salary, Suppliers & Contractor bills,
Budgetary Control, etc.)
• Personnel & Administration (Recruitment Industrial Relation,
Establishment, General Administration, Protocol, Law, Rajbhasha,
Public Relation, Training & Development etc.)
• Vigilance (Vigilance activities)

3.3.2 Requirement of Manpower

3.3.2.1 Manpower Norms For Stage-I Projects

Activities:
• Data collection / preparation of application for site clearance by
MOEF.
• Establishment of gauge and discharge sites and metrological
observatories. Hydrological measurements and Metrological
observations will continue till construction of the Project.
• Obtaining the site clearance from MOEF.
• Essential geological exploration for establishing type of dam and
its foundation and other civil structures.
• Topographic survey of the project area and detailed survey for the
purpose of preliminary layouts of dam, Powerhouse etc.
• Essential temporary infrastructure / access required for carrying out
the above works.
• Commencement of EIA & EMP studies.
• Formulation of a pre-feasibility report for assessment of
commercial viability of the project.
• Preparation of estimates for Stage-II activities and their submission
to CEA.

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Time Schedule:
One year form the zero date.

Expenditure:
The Ministry of Power will sanction expenditure up to Rs. 10
crores on survey and investigation and preparation of PFR.

Manpower Requirement:

Executive Numbers Supervisors Numbers

Chief Engineer 1 Civil 3 to 5
Civil Engineer 5 to 7 PE 2
Power Engineers 2 F&A 2
HR 1 Others 2
Finance 1 Total 9 to 11
Geology 2
Environment 1
Doctors 1
Total 14 to 16
Workmen 25-35
Grand Total 48-62

3.3.2.2 Manpower Norms For Stage-II Projects

Activities:
• Essential survey and investigation works comprising the following:
o Detailed Topographic survey of reservoir area and project area.
o Procurement of satellite imageries including aerial maps where
require.
o Geo-physical surveys comprising seismic and seismic and
resistivity tests etc.
o Hydro-metrological observations.
o Collection of silt data and its analysis.
o Geological exploration comprising surface mapping, drilling,
drifting and their logging etc.
o Construction material survey both qualitative and quantitative.
• Preparation of Detailed Project Report.
• Submission of DPR to CEA and obtaining Techno Economic
Clearance from CEA.
• Submission of EIA and EMP to MOEF and obtaining Forest and
Environment clearances of the Project.
• Temporary / permanent buildings (residential and non-residential)
• Roads and permanent bridges as may be required for approaching
work sites and transportation of heavy equipment.
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• Acquisition of land required for the execution of the Project

including land. Initiating the process for acquisition of land of the
reservoir submergences area.
• Arrangement of construction power.
• Preparation of tender specification and bid documents.
• Submission of PIB Memo / CCEA note.

Time Schedule:
Eighteen (18) months.

Expenditure:
Proposal costing Rs. 20 crores and more will require FM’s
approval. Cost over Rs. 50 crores will require the approval of the
cabinet / CCEA.

Manpower Requirement:

Executive Numbers Supervisors Numbers

Head of Project 1 Civil 5 to 7
Civil Engineer 10 to 15 PE 3 to 4
Power Engineers 3 to 5 Finance 2
HR 1 Admn. 1
Finance 1 Research 1
Geology 2 Total 13 to 16
Environment 1
Doctors 2
Total 21 to 28
Workmen 50-60
Grand Total 84-104

Establishment Expenses:
The more rational solution is to estimate manpower for a
construction project in correlation with approved establishment
charges as incorporated in Detailed Project Report (DPR) of the
project and which is generally 5% to 7% of the (I Works-B land) of
cost estimate of the Project.

The Central Water Commission provides this limit. If we exceed

the establishment charges it directly affects the profitability of the
Corporation due to cost over run.

3.3.2.3 Manpower Norms For Stage-III Projects

Activities:
• Tendering and awards of works.
• Actual construction.

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EXECUTIVES:
Discipline Upto 100 MW 101-300 MW 301-500 MW 501 & above
Civil 15 25 30 35
Electrical 4 6 7 10
Mechanical 3 4 5 5
HR 3 4 4 4
Finance 4 5 5 5
Medical 2 4 4 4
IT&C 1 1 1 1
E&C 1 1 1 1
PR 0 1 1 1
Hindi 1 1 1 1
Research 1 2 2 2
Geo/Geophy. 2 2 3 3
Env. 1 1 1 1
Total 38 57 65 73

SUPERVISORS:
Discipline Upto 100 MW 101-300 MW 301-500 MW 501 & above
Civil 6 10 12 15
Electrical 2 4 5 7
Mechanical 2 1 2 3
Finance 3 5 5 6
IT&C 1 2 2 3
E&C 1 2 2 2
Supervisors 6 10 11 16
(Civil,PE,office)
Total 21 34 39 52

WORKMEN:
Discipline Upto 100 MW 101-300 MW 301-500 MW 501& above
Technician 41 48 51 56
Office based 20 34 39 39
staff
Utilities 15 18 20 20
Unskilled 35 47 51 59
HEM operators 14 16 18 22
/ Drivers
Paramedical 10 12 13 13
Total 135 175 192 209

• Technician: Electrician, Fitter, Welder, Mechanic, SBT, Lineman etc.

• Office Based Staff: Assistants, Stenos & others ministerial staff
• Utilities: Pump, Compressors, Generators, etc.
• Unskilled: Helpers, Beldar, Attendant, Security Guard, Safaiwala, etc.
• HEM Drivers, Operators: Dozer, Dumpers, Shovel etc.

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4. FUTURE STRATEGIES

4.1 External Benchmarking

Industrial Engineering Group has also collected data from other organizations:

Capacity Range of Men-MW Ratio NHPC Comparative in other

(MW) in similar organizations organization
Upto 100 1.92 to 3.52 3.52 Tata Hydro : 1.92
101 to 200 4.47 to 7.00 4.47 Andhra Pradesh : 7.00
201 to 300 0.59 to 4.23 1.79 Tata Hydro :0.59
301 to 500 0.66 to 5.01 .69 Maharashtra : 0.66
501 to 750 0.53 to 0.41 1.28 Maharashtra : 0.53

4.2 Surplus Manpower & Planned Interventions for Optimization:

4.2.1 Redeployment:
Planned Redeployment to other ongoing project has been identified as
effective strategy to deal with surplus manpower problem. The benefits of the
same are:

• Limits of CERC O&M expenditure.

• Job profiling Rationale.
• Optimum Manpower Requirement / Utilization.
• Staggering Employee remuneration expenses.
• Profitability of Corporation.

4.2.2 Separation
Implementation of voluntary separation schemes may also help significantly
for reduction of surplus manpower.

4.2.3 Ban on Recruitment

4.2.4 Multi-skilling & Job enrichment

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4.3 Interventions Identified For Upgrading Surplus / Obsolete Manpower:

The trend of manpower requirement over and above the existing strength for
the Xth & XIth plan for workmen in various categories is as follows:

(i) Critical trades in which requirement is increasing substantially over

and above the existing strength:

Discipline 2005 2006 2007 2008 2009 2010 2011 2012

Electrician / SBT 16 43 116 134 172 269 293 445
Operator -13 3 11 17 29 42 50 75
(Pump / Comp.)
Machinist 7 13 18 20 23 27 29 38
Welder -10 10 12 20 23 24 25 13
EOT Crane 13 13 21 21 25 35 37 53
Operator
Operator 22 37 59 59 65 85 90 121
(Gen / Tur.)
HEM Operator -1 27 35 35 30 19 18 -7
Operator (Photo) 22 22 22 22 22 22 23 23
Scientific Asstt. / -4 24 25 24 26 25 25 25
Gauge Reader
Plumber 3 15 11 18 15 10 10 1

(ii) Critical trades in which requirement is decreasing substantially over

and above the existing strength:

Discipline 2005 2006 2007 2008 2009 2010 2011 2012

Assistant - 263 -109 -153 -73 -77 -144 -149 -260
Storekeeper -49 -13 -32 -17 -17 -36 -44 -71
Fitter -154 -145 -139 -135 -132 -127 -118 -85
Mechanic -115 -101 -109 -103 -109 -113 -114 -128
Helper / -809 -570 -639 -517 -514 -605 -626 -814
Beldar /
Attendant
Cook -34 -34 -38 -37 -39 -45 -44 -51
Carpenter -49 -39 -43 -38 -43 -47 -43 -46

The intervention envisages

• No Recruitment.
• Gaps be filled through training, job enrichment & multi-skilling as
reflected below:

(i) Electrician:
Providing 52 weeks training in Electrician trade at NPTI / ITI to Helpers
/ Beldars upto the age of 40 years who possess 8th and above
qualifications.
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(ii) Welder:
Providing training in Welder trade from NPTI or Larsen & Toubro
training centre to Helpers / Beldars (less than 40 years of age) possessing
qualification of 8th and above.

(iii) Machinist:
Providing training to Helpers possessing minimum of 8th qualification
from ITI Ropar or any other ITI or NPTI.

(iv) Operator (Pump / Compressor), Operator Gate:

The existing Mechanic to be given responsibility for operation of Pump
& Compressors / Gates. Familiarization programmes can be arranged
through FSUs of manufacturers.

(v) EOT Crane Operator:

Drivers up to the age of 45 years to be given responsibility of EOT crane
operation. Familiarization programmes can be arranged through FSUs
of manufacturers.

(vi) Scientific Assistant / Gauge Readers:

Existing Assistants or Work Assistants (who are excess to the
requirement) having matric or 8th with Science background to be
utilized for these jobs.

(vii) Plumber / Operator (Photostat):

The jobs of above categories to be outsourced.

(viii) Operator (Generator / Turbine):

Turbine Operation is an automated operation i.e. computerized or push
button start which an electrician can easily perform. However the
requirement is of operation Diesel Generating sets for which Mechanics
can be given responsibility. If needed, training may be provided from
reputed manufacturer of DG sets i.e. Kirlosker Cummins, Sulzer etc.

4.4 Outsourcing:
As to the outsourcing, the following activities of Power Station are generally
outsourced:

• Security
• Running & Maintenance of Guest House canteens, field hostels
• Housekeeping
• Major maintenance of equipment
• Other unskilled activities
• Vehicles except those of station Head, VIP, Fire tender, Ambulance, etc.

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An example of saving which can be accrued through hiring of vehicles is

depicted below:

Feasibility Analysis for Jeeps

S.No. Description Unit Per Per

Month Annum
1. Wages of Driver Rs. 22000 264000
2. 10% of Wages of one Mechanic Rs. 2200 264000
& Helper
3. Consumption of Diesel Litre 180 2160
(assumption 60 km / day)
4. Expenditure towards Diesel Rs. 5400 64800
(assuming diesel rate at Rs. 30
km/day)
5. Expenditure towards insurance Rs. 1000 12000
6. Spare Parts, Tyres etc. Rs. 000 12000
(2 tyres per day)
7. Servicing Rs. 500 6000
8. Interest on capital Rs. 3333 39996
(assuming 8% p.a. on Rs. 5
Lakh)
9. Depreciation (10%) Rs. 4000 48000
Grand Total Rs. 39613 475356
10. Add 10% on account of spillages 4500 5200
Grand Total Rs. 4413 480556
11. Expenses if hired through outside Rs. 21000 252000
12. Saving per Jeep Rs. 23113 228556

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Manpower Optimization in NTPC

1. THE BACKGROUND

NTPC Limited (NTPC; www.ntpc.co.in), a public sector company, was incorporated

in the Nov 1975 to accelerate power development in the country. Initially, a wholly
owned company of the Government of India, at present the GoI holds 89.5% of the
total equity shares of the company and the balance 10.5% is held by FIIs, Domestic
Banks, Public and others. Within a span of 30 years, NTPC has emerged as a truly
national power company, generating over 27 % of the power generated in India, with
power generating facilities in all the major regions of the country. The present total
installed capacity of NTPC is 24249 MW and it plans to become 40,000 MW by end
of 2012 and 66000 MW company by 2017.

NTPC's core business is engineering, construction and operation of power generating

plants and also providing consultancy to power utilities in India and abroad. NTPC
has set new benchmarks for the power industry both in the area of power plant
construction and operations. It is providing power at the cheapest average tariff in the
country. With its experience and expertise in the power sector, NTPC is extending
consultancy services to various organisations in the power business. NTPC is
presently commissioning and operating Thermal, Gas and Hydro Power Plants.
Major diversifications which have recently been taken place are backward integration
(i.e. in the area of coal mining) and forward integration (i.e. Distribution of Power
supply). In future also NTPC is planning to enter in new areas like LNG, Hydro
Carbon, Nuclear etc.

Initially, NTPC stood for National Thermal Power Corporation Ltd. and the name
was changed to only “NTPC Limited”, to reflect the present diverse operations and
future plan to enter into all areas of power generation including coal mining, oil and
gas exploration.

Recognising its excellent performance and vast potential, Government of the India
has identified NTPC as one of the jewels of Public Sector ‘Navratnas’- a potential
global giant.

To meet the growing demand of the company, optimization of manpower is done on a

continuous basis with utmost care. In the following sections, the result of NTPC’s
optimization of manpower, is described, to serve as a reference document.

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2. PRESENT MAN-POWER SITUATION

The current manpower strength of NTPC is 23,858 detailed as under:

• Manpower posted in NTPC 21,766

• Manpower posted in JVs/Subsidiaries 442
• Manpower posted to Badarpur 1650
(managed by NTPC)
Total 23,858

MAN-MW RATIO OVER THE YEARS

(Excluding Badarpur, NSPCL/BESCL & NESC

4.50
4.23
4.00

3.50
MAN-MW RATIO

3.00
2.70
2.50
2.16
2.00 1.82 1.86
1.61
1.50 1.43
1.30 1.23 1.26 1.27 1.23 1.17 1.10 1.10 1.07 1.02
1.00 0.98

0.50

0.00
86-87 87-88 88-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99- 2000- 2001- 2002- 2003-
2000 01 02 03 04

YEAR
With TTP S

3. MANNING OF OPERATING POWER STATIONS

3.1 Manpower Norms

The factors affecting the manpower requirement for an operating thermal power
station depends on the followings factors:
• Type of the Unit
• Size of the Unit
• Level of automation
• Off-site facilities
• Plant Layout
• Control Room Locations
• Level of out-source

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From the beginning, all out efforts have been made in NTPC to improve the Man-
MW ratio on a continuous basis. Some of the tools and techniques used for
optimization of manpower are given under:
i) Review by internal Committees (Experts)
ii) Review by consultants
iii) Internal Bench Marking
iv) External/International Bench Marking
v) Development of manpower module/norms for different activities.
vi) Out-sourcing of non-core/maintenance activities
vii) Multi-skilling of existing employees
viii) Re-deployment/skill-upgradation of surplus to expansion projects

The manpower deployment have also been reviewed from time to time by consultants
and internal committees as under:
i) Sh. RN Ghosh, Consultant during 1989-90
ii) Sh. RP Mungla, Consultant during 1995-96
iii) Committee of Sr. Executives (Experts)-I during 2002-03
iv) Committee of Sr. Executives (Experts)-II-continuing
v) National Productivity Council (NPC) study on executive manpower
requirement at Corp.Centre and Regional Head Quarters (RHQs)– continuing.

3.2 Manpower Pattern

NTPC is presently operating both coal based and gas based power stations. The
Man:MW ratio for various coal based power plants ranges from 0.37 to 2.60 and for
gas based power plant ranges from 0.14 to 0.58. The present deployment is based on
the recommendations of these consultants/committees.

Project Units Manpower Man-MW

Singrauli 5x200+2x500 1791 0.90

(coal based) = 2000 MW
Simhadri 2x500 541 0.54
(coal based) = 1000 MW
Jhanor Gandhar 3x131+255 MW 198 0.31
(Gas based) = 648 MW
Sipat 3x660+2x500 1078 0.36
(upcoming coal based = 2980 MW
project)

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On an average, the Man-MW ratio has been reduced from 3.70 in 1991-92 to 0.91 in
2004-05 as given below:

MAN-MW Ratio & Generation per Employee over the years

Year Man-MW ratio Generation (MU/employee)

1991-92 1.61 3.70
1996-97 1.27 4.63
2001-02 1.07 6.26
2002-03 1.02 6.58
2003-04 0.98 7.11
2004-05 0.91 7.43

1.4 Man:MW pattern in O&M

and Non-O&M areas
1.2
1 0.56
0.49 0.47
0.8 0.46 0.41
0.38
0.6
0.4 0.71
0.61 0.6 0.56 0.57 0.53
0.2
0
1996- 2000- 2001- 2002- 2003- 2004-
97 01 02 03 04 05

O&M Non-O&M

The figures in Table and graph, are excluding NTPC managed power station at Delhi namely,
Badarpur Thermal Power Station and Balco Captive Power Station at Korba, MP and JVs/
Subsidiaries

The capacity addition in the past has also been done without any addition in non-
executive manpower. The manpower cost justified the present level of work.
However, all efforts are still being made to further rationalize the manpower and it is
likely that Man-MW ratio will be reduced further in the years to come. NTPC is
aiming to reduce Man-MW ratio to 0.87 by the end of 2006-07 and to 0.60 by the end
of 2011-12.

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3.3 International Benchmarks

The international bench mark for Man:MW ratio for operating coal based thermal
power stations is 0.13. However, this figure is applicable for the “Operational aspect
(main plant)” of the power stations. In contrast to the practices abroad, in India, the
manning pattern is quite different.

Present Man-MW ratio of NTPC’s best managed power station is very close to
international standards if various practices adopted at these power stations are
discounted, for which in NTPC the manpower is provided. The various activities
which are not reflected in the Man-MW ratio of international power producers vis-à-
vis the practices in NTPC are as under:

i) The regular manpower is mainly posted in the operation function of a power

plant.
ii) Even in some of the power stations like Drax Power of UK, the entire coal
handling plant is out sourced.
iii) The transportation of coal is generally done by external agencies.
iv) All maintenance activities are out-sourced
v) Mature vendors are readily available at door step to meet any
exigency/emergency.
vi) The spares are maintained by the agencies doing maintenance activities.
vii) There is no hospital set up at these power stations
viii) There is no dedicated township in the power station.
ix) There is not much manpower in the service function departments.
x) Good quality of coal with very less ash content.
xi) Non-existence of functions like township, R&R, Hindi/Rajbhasha, Law etc.
which are specific to Indian conditions.

If a function wise comparison is made between power stations abroad and those of
NTPC stations, the results are very encouraging and it even surpass the international
standards. The following tabulation shows the Man”MW ratio of few NTPC stations,
where the manning at main-plant is considered only, as per international practice.

Talcher Kaniha: 0.12

Rihand : 0.12
Simhadri : 0.15
Ramagundam : 0.18
Vindhyachal : 0.23
Singrauli : 0.23

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4. MANNING OF POJECTS

The deployment of manpower during construction phase has also been optimized
progressively. The phase/activity wise manpower for a typical 3 x 660 MW coal
based power project is given below.

Stage of Project Executive Non-executive Total

Pre-investment approval 13 - 13
Between investment approval 62 15 77
and start of boiler erection
Between start of boiler 80 15 95
erection and drum lifting
Between Drum lifting and 92 34 126
Trial Operation
(Peak manpower)
Between Trial Operation and 37 - 37
warranty completion
Between warranty period and 14 - 14
contract closing

5. MANPOWER OPTIMISATION STRATEGIES

Given below are few factors which are being considered, through which it is possible
to bring manpower requirement progressively down.

i) High capacity unit (Capacity up to 800 MW)

ii) Out Sourcing of all maintenance activities.
iii) Significant reduction in unskilled workforce.
iv) Outsourcing of non-core activities.
v) Elimination of supervisory cadre.
vi) Rationalization of control room manning & other manning points in operation.
vii) Unification of control room.
viii) High degree of computerization in service functions, reduction in clerical and
secretarial staff.
ix) Significant reduction in non-O&M staff.
x) Redeployment of surplus staff to newer units.
xi) Skill Up-gradation of existing staff and their multiskilling

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ANNEXURES

ORGANISATIONAL SET-UP OF REGIONAL HEADQUARTER

E9 1 ED

|
|
| | | | | | | | | | | |
| | | | | | | | | | | |
HR OS & TQM Inspection Comml Tech Regional Cont.& Fin & Proc New Safety
| RCC T&CC* | Serv's Engg. Matls. Acctt Coordn Proj EMG
| | | | | | | | | | | R&R
| | | | | | | | | | | |
E8 9 1 1 | | 1 | | 1 1 1 1 2
| | | |
| | | | | |
| | | | | |
E7A 6 1 1 2 | 1 1
|
| | | | | |
| | | | | |
| | | | | |
E7 13 3 1 5 2 1 1

* T&CC-1
TOTAL 29 Insp-1 each for 4 Insp Offices

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ORGANISATIONAL SET-UP FOR A TYPICAL GAS STATION

REGIONAL ED
GENERAL MANAGER

Safety, Tech Serv's HR F&A C&M T/Ship Mntc TQM Medical O&M
Vigilance
AGM(O&M)

DGM DGM DGM DGM

1 1 1 1 DGM
6

EEMG
OPRN
MECH MNTC
ELECT MNC
C&I MNTC
MNTC PLNG

GM : 1
AGM : 1
DGM : 10
TOTAL : 12

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ORGANISATIONAL SET-UP FOR A TYPICAL STPP

REGIONAL ED
GENERAL MANAGER

Safety, Tech Serv's HR F&A C&M T/Ship Mntc Medical O&M TQM R&M
Vigilance
AGM(O&M)
1

DGM DGM DGM DGM DGM DGM DGM DGM

4 1 1 2 1 1 1 1

EMG
P&S
FES
IT

O&E Opern & Mech Elect C&I Mntc Fuel Fuel Civil Mntc
Chem Mntc Mntc Mntc Plng Handling Transportation

DGM DGM DGM DGM DGM DGM DGM DGM

1 5 2 2 2 1 2 1

GM : 1
AGM : 1
DGM : 28
TOTAL : 30

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Manpower Optimization in POWERGRID

1. THE BACKGROUND

Power Grid Corporation of India Ltd (POWERGRID,

www.powergridindia.com) was incorporated in October 1989 as a transmission
utility by taking over of transmission networks along with the associated
manpower of various Central Power Utilities during the period 1991 to 1994.
POWERGRID was formed to bring about development in the transmission sector
and undertake the responsibility of building a National Grid. The mandate during
establishing POWERGRID was to "establish and operate Regional and National
Power Grids to facilitate transfer of power within and across the Regions with
reliability, security and economy on sound commercial principles". The POWER
GRID has been statutorily acknowledged as Central National Transmission Utility
of the country. It operates more than 50,000 circuit kilometer of transmission
lines, 82 sub stations handling about 47,000 MVA with more than 99 %
availability.

Manpower absorbed in POWERGRID ranged from Public Sector Enterprises to

pure Govt. Departments and some of them possessing experience in the
generation units of Thermal and Hydro Power Plants rather than in transmission
systems. Further, out of total employees absorbed approximately 60% were
workmen, bulk of whom were non-technical staff like drivers, attendants,
assistants, guards and other support staff for whom there was little work in the
highly technology driven organization.

This unique fact posed an unique challenge to POWERGRID and in the

following sections, the result of manpower man-power planning and optimization
is illustrated.

2. MANPOWER PLANNING AT POWERGRID

Finding the right man for the right job and developing him in to an effective team
member is an important element of organizational success. Human resource is an
important corporate asset and the overall performance of organizations depends
upon the way it is put to use. In order to realize organizational objectives, it is
essential to have a manpower plan. With this approach, POWERGRID believes
that to be successful in every sphere of HR function, thereby leading to
organizational success, optimization of manpower is foremost and key factor.

Manpower planning and budgeting in POWERGRID has three stage processes. It

not only draws a company wide manpower requirement covering different levels

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and functions but also prepares action plan & links itself with organizational
development and other sub-systems of HR.

Stage-I: It starts with assessment of workload. The basic input for assessing
workload is company’s strategic business plan that spells out existing projects, its
expansion plan and upcoming projects. Furthermore work schedules and financial
allocations for individual projects also form the core of estimating annual
workload.

Stage – II : This stage starts with comparison of work load Vs manning norms
thereby giving the requirement for different functions, locations, etc.
POWERGRID has evolved well-defined manning norms separately for
Transmission Lines & Sub-station operation & maintenance, TL & Sub-station
construction and Regional offices. With expansion of business in Telecom,
APDRP, Distribution Management, Rural Electrification, Sub-transmission, etc.
we have also developed our norms for new business areas. With technology
advancement, manning norms for HVDC sub stations & norms for automated sub
stations are also developed.

Stage- III : Input for this stage is inventory of available manpower with us. In
order to ensure that the whole exercise is not restricted only to head counting,
skill and expertise of individual vis-à-vis requirement of organization is also taken
into account. This also gives an opportunity to the individual for his development
and growth. The competence gaps between the requirement and available
becomes one of the major developmental input for HRD. Based on this analysis,
annual recruitment and developmental plan is envisaged. Outcome of this analysis
is also used as input for other sub systems of HR like promotions, placements, job
rotation, etc.

Manpower plans in POWERGRID are made on long term (around 5 years) and
short term (annual) basis. Long-term manpower plan is subject to revision in case
of major change in assumptions like major policy change, change in Govt.
guidelines, etc. Manpower plan is an integral part of the overall corporate plan
and reflects the broad thinking of management about manpower needs in the
organization.

To complete the above process successfully, evolving manpower norms and its
continuous review is critical. Optimum manpower depends upon the effective
manning norms and the way it is being developed.

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3. DEVELOPMENT OF MANPOWER NORMS

At the time of formation, manpower norms of NTPC were adopted. Subsequently,

“National Productivity Council” (NPC) was engaged in the year 1994 and
manpower study was conducted with an aim to stimulate and promote
productivity consciousness. In the study manning norms for construction and
O&M were worked out after assessing various parameters like transmission line
length, terrain, sub-station operation, sub-station maintenance etc.

Manpower Study was done in systematic manner based on a number of factors

such as
• Technological trends
• Ongoing and immediate future projects/ operations and
• Operation schedule
• Employee turnover
• Absenteeism rate
• Current skill inventory
• Separations
• Productivity levels.

After carrying out detailed study NPC recommended new manning norms in the
year 1994.

In order to be competitive in the industry continuous review of plan ensures its

successful execution. With this view, an international consultant Cooper and
Lybrand (C&L) conducted systems audit to review policy, procedures & systems.
As a part of the study C&L gave emphasis on organization structure, systems and
processes. C&L recommended more autonomy to Regions and change in
organization structure. Some of the recommendations given by C&L are
presented below.
• Recommended Region operating as semi-autonomous Division headed by ED
& three GMs respectively for three core processes as Construction, O&M and
Commercial.
• To separate Operation & Maintenance and Construction Activities in Regions
• Recommended more autonomous structure for Sub-stations. DGM heading
S/S under operation directly reporting to General Manager (O&M) and same
for construction.
• Three Core functions for S/S as Operation, Maintenance (TL & S/s) and five
supporting functions as Safety, Finance, HR Admin, Stores, Town
Maintenance and Civil works.
• To outsource some of the specialized and repetitive jobs/activities.

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The above recommendation was implemented by the management and in the year
1999-00, Executive Committee reviewed and developed new manpower norms
based on C&L recommendations. Again in the year 2002, following the
philosophy of continuous review, a reputed HR consultant was appointed to
review manpower norms keeping in view the changes in our business model and
his recommendations were implemented in 2003-04 after elaborate discussion
across levels & functions for its acceptability. A pictorial representation of our
manpower norms for Transmission Line and Sub-station O&M (Fig N-1) and
construction (Fig N-2) are shown below :

Norms for O&M of Sub-Station and Lines

Station in-charge E6/E7 - 1

PA-1, STENO-1, ATTENDANT – 1,DRIVER-1

S/S
HR
S/S
O&M
O&M
E6- 1 T. L
Materials Admn. & Maint.
Finance
Stores Civil Maint.
S/S S/S
Maint. Opern.
E1-E5 - 0 E1-E5 - 0 E1-E5 - 0
S/KEEPER - 1 E1-E5 - 2 E1-E5 - 4
SUPR - 2 SUPR - 1 SUPR - 2
ATTDT-1 Sup -4
Tech - 4

For Plain 1 Exe for 400 KM

1 Supr. for 300 KM
Summary of manpower norm of
1 Tech for 150 KM
S/Station (O&M)
For Hilly 1 Ex for 150 KM
Executives - 08
1 Supr. for 75 KM
Supervisors - 10 1 Tech for 40 KM
W/Men - 09 In Finance and HR, one executive each shall be posted for
Total - 27 2-3 sub-stations.

Fig: N-1

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S/Stn Construction Chief

E6/E7 - 1

STENO-2; ATTENDET-1

Sub stn
Finance Sub-station Tr. Line
HR construction
Contracts Construction Construction
& E1-E4 - 1
Monitoring SUPR/ - 1
EXEC ACCT/ - 1
EXEC EXECUTIVES
E1-E4 - 1 I/C -1
I/C
SUPR - 1 CIVIL-2
ELEC-3
EVERY 100KMS
SUPERVISOR
EXEC - 1
CIVIL-2
SUPR - 2
ELEC-2
TECH - 2
Total Manpower S/Stn ( Constn)

EXECUTIVES - 08
SUPERVISORS - 06
WORKMEN - 03

TOTAL - 17

Fig: N-2

Similarly, manpower norms for HVDC sub station & construction and Regional
Offices, Regional Load Despatch Centres (RLDCs) are also well defined.
Recently with the advent of new technology like automated sub-stations,
POWERGRID has revised the norms by reducing staff in operation. Thus, for
these remote operated sub-stations under O&M, norm is 19 employees instead of
27.

Our manpower norms are commensurate with the business plans of the
organization and its continuous review enabled us to register continuous
improvement in productivity. We have also developed manpower norms for our
new businesses viz- Telecom, Distribution Management Services & Rural
Electrification Consultancy.

Thus, since evolution of our manpower norms, against manning norm of 47

employees/sub-station in the year 1994-95, presently only 27 and at some sub-
stations, 19 employees are deployed. Similarly, against initial norm of 55

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employees for 1000 km of Transmission Line maintenance (Plain area), present

norm is 12-13 employees.

All this was not achieved by serendipity. Management’s vision & corporate
strategy cascaded down to the lowest level of organizational hierarchy ensured its
successful execution thereby leading to the mantra of right man at the right job.
Though we have achieved a lot in our endeavor for optimization of manpower
there is still lot of scope of improvement and we are on continuous effort for
improving it further.

4. TRAINING, RETRAINING & REDEPLOYMENT STRATEGY TO

ACHIEVE OPTIMIZATION OF MANPOWER

In the initial years of formation of POWERGRID, amalgamation process brought

a pool of expertise from different constituent organization. At the same time it
also resulted in huge mismatch, i.e., shortage in skilled areas and surplus in
unskilled or non-technical discipline. Amalgamation process brought around 1100
employees in these categories.

The real challenge before POWERGRID was optimal utilization and balanced
deployment of these mismatch manpower effectively (Fig.1). POWERGRID
retrained more than 700 unskilled surplus workmen such as Attendants,
Drivers, and Security Guards, Assistants and redeployed them as Linemen,
sub-station Technicians, Stenographers, etc. during the period from 1994 to
2003. Innovative methods were developed to establish the trainability, six months
long training modules (Fig.2) covering basic education, technical and behavioral
inputs, on-the-job, off-the-job capsules, setting up of CEA accredited training
institutes in different parts of the country and training evaluation methods.
Training & deployment strategy helped in transforming the skill and knowledge
texture of the company (Fig.3).

Value audit analysis by chartered accounts proved saving to the tune of Rupees 21
crores on account of this retraining intervention. DFID has recognized it as the
best model beneficial to developing countries. Asian Regional Training &
development organization (ARTDO) bestowed the 1996 ARTDO Asia Pacific
HRD Award on POWERGRID. POWERGRID was also honoured with National
HRD Network award, 1998.

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Fig 1: Unskilled Work Environment

Demand

Demand for Demand for

Balanced Skilled
Deployment Workforce
Availability
Balanced
Deployment Skilled
Workforce

Imbalanced
Unskilled
Deployment
Workforce

Fig 2 : Skill transformation through Training, retraining and

deployment

Leadership& Basic
Cultural Education
Transformation Programme

Skill Up-gradation Technician

For Contractors & Training & Dev.
Customers Programme

Graduation Diploma
Equivalent Equivalent
Programme Programme

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Fig 3 : Training, retraining and deployment for optimization of

manpower
Demand

Demand for Demand for

Balanced Skilled
Deployment Workforce

Availability

Balanced Skilled
Deployment Workforce

Fig: 3

Following interventions were also used by the management for the optimization
of manpower.

• Continuous refresher training of non-technical workmen redeployed as

technicians.
• Deployment of mismatch / surplus attendants in auxiliary services e.g.
dispensary, library, Transit camps, Employee clubs etc.
• Up gradation of jobs / enhancement in Channel of Promotion to match the gap
between surplus & deficit areas. For ex- Re designation of Attdts. as Jr. Optr.
(Print room/Admn. Services)
• Deployment of designated Security Guards on relevant jobs thereby saving on
security expenditure.

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5. BUSINESS RESULTS

Today POWERGRID is one of the largest transmission utilities in the world with
a significant presence on the global power arena. POWERGRID has excelled in
all the areas of its activities: project execution, operations, load dispatch,
commercial, finance and human resource. Standards set by POWERGRID in its
journey towards forming of national power grid are considered as benchmarks in
their own right. One of the key factor to many of these achievements is our
unstinted efforts on optimization of manpower through scientific forecasting, well
defined manpower norms & their periodical review, balanced deployment & skill
transformation through training, re-training & re-deployment. Moreover, all this
has been drawn from Strategic Business Plan of the organization. The financials,
transmission network, MVA, sub-stations that POWERGRID added in a decade
of its existence without adding much manpower. Figure: 4 / 5 and Table: 1.1 are
testimony to the record of POWERGRID's achievements. As both the figure and
the table illustrate, POWERGRID made a net profit of Rs. 786 crores against Rs.
237 crores and enhanced the turnover from Rupees 634 crores to a stupendous
figure of Rupees 2831 crores between the period 1992-93 to 2004-05. Similarly
number of sub-stations rose from 42 to 85 and length of transmission lines from
22228 to 50745 in the same period.

POWERGRID- THE GROWTH

ENGINE

3000

2500

2000
Turnover*
1500
Profits*
1000

500

0
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05

Fig: 4

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POWERGRID- THE GROWTH

ENGINE

60000

50000 MVA

40000 TL (Ckt.
Kms)
30000
Substations
20000
Manpower
10000

0
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05

Fig: 5

*Figures in Rs. Crores

1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002 2003 2004-
Year 93 94 95 96 97 98 99 00 01 02 -03 -04 05

Turnover* 634 649 810 984 1058 1435 1770 2124 2683 2456 2533 2805 2831

Profits* 237 188 208 276 306 337 444 601 743 689 643 748 786
Asset
Value* 3521 4229 5067 5492 5582 8096 8851 11450 13261 13777 18943 19876 21930

MVA 12201 20600 21173 22748 23331 27875 28820 31655 33973 34288 44836 46461 49459
TL (Ckt.
Kms) 22228 23426 25575 27244 27853 31250 35119 39017 39425 40289 46245 48000 50745
Substation
s 42 47 50 53 54 55 60 65 67 75 79 82 85

Manpower 5652 6115 6397 6624 6709 6885 6811 6777 6877 6923 6872 6911 6881

Table : 1.1

Our own benchmarks / indices and continuously strive to improve our

performance & productivity has been reflected in the following figures.

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Manpower Optimization in POWERGRID

MANPOWER (YEAR-WISE)

7000
6000
5000
NO.

4000
3000
2000
1000
0
93-94
94-95
95-96
96-97
97-98
98-99
99-2000
2000-01
2001-02
2002-03
2003-04
2004-05
YEAR
TOT EXE TOT SUP TOT WKM
S i 4 S i 5 S i 6

We added only 12% manpower since our formation whereas our profit
during the same period registered a remarkable growth of 278%

MANPOWER in 1993-94 MANPOWER in 2004-05

TOT WKM TOT WKM TOT EXE

TOT EXE
57% 29%
40% 39%

TOT SUP TOT SUP

14% 21%

MANPOWER in 1993-94 MANPOWER in 2004-05

3519 1770 2752 2703

826
TOT EXE 1426
TOT EXE
TOT SUP
TOT SUP
TOT WKM
TOT WKM

We added only 12% manpower since our formation whereas our profit
during the same period registered a remarkable growth of 278%

Despite, more than 300 percent increase in volume of work due to business
expansion POWERGRID has not added even 12 percent of manpower in last 10-
12 years. This is directly attributable to increased performance of highly

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Manpower Optimization in POWERGRID

motivated employees. Employees are more eager to assume higher responsibilities

and seek opportunities to involve themselves with an assignment from
conceptualization to implementation.
Year-wise MVA per Employee

7 .1 9
6.5 2
6 .7 2
8.00
7.00

4 .9 4
4 .9 1
4 .6 7
6.00

4 .2 3
4 .0 5
3 .4 8
3 .4 3
5.00
3 .3 7
3 .3 1
M VA

4.00
3.00
2.00
1.00
0.00
93-94
94-95
95-96
96-97

97-98
98-99
1999-00

2000-01
2001-02
2002-03
2003-04

2004-05
YEAR

'The ratio of MVA/Employee which was 3.37 in 1993-94 is 7.18 in 2004-05.

Profit per Employee 11.42

10.96
10.79
9.95

9.36
8.87
Rs. in Lacs

6.52
4.89
4.58
4.17
3.25

1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
1994-95
1995-96
1996-97
1997-98
1998-99

Year

Profit/Employee which was Rs. 3.25 lacs in 1994-95 is Rs.

11.42 lacs/Employee in 2004-05. Profit/Employee declined after
2000-01 due to changes in tariff structure by CERC

In the course of journey, POWERGRID has come a long way and optimization of
manpower, by evolving/reviewing manpower norms and various HR
interventions, became one of the major key factors of success of the organization.

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