Summer Training

SUMMER TRAINING PROJECT REPORT ON

Contact execution at BHEL Jagdishpur “BHARAT HEAVY ELECTRICALS LIMITED” INSULATOR PLANT, JAGDISHPUR INDUSTRIAL AREA, SULTANPUR (U.P.) Submitted to: Mr. P Lal (Dy. Manager, Commercial)

Bhagwant University Ajmer (Raj.) Submitted By: Kripa Shanker Verma M.B.A Rol No.-108027023

BHARAT HEAVY ELECTRICALS LIMITED INSULATOR PLANT, JAGDISHPUR INDUSTRIAL AREA, SULTANPUR (U.P.) Certificate This is to certify that the project report entitled “Procedure of marketing and finance department” of Bharat Heavy Electricals Limited, Insulator Plant, Jagdishpur, submitted to marketing (commercial) and finance department. This study is a bonafied research work carried out by Mr. Abhishek Srivastava under our guidance and supervision. We further certify that all necessary help or source of information as has been availed of in the connection, is duly acknowledged by them. During their training period their performance and behavior is found EXCELLENT.

Dated: Place: Jagdishpur

P. Lal (Sr. Engineer, Commercial) P. K. Srivastava (Manager, Finance)

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DECLARATION

This is to certify that Mr. Kripa Shanker Verma students of MBA (200810) Bhagwant University Ajmer have successfully completed their summer training in our departments under our guidance. We wish them a very bright future.

P. Lal (Sr. Engineer, Commercial)

P.K. Srivastava (Manager, Finance) BHEL, Insulator Plant, Jagdishpur, Sultanpur (U.P.)

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ACKNOWLEDGEMENT It is our proud privilege to express deep sense of gratitude regards an appreciation to our guide Mr. P. Lal, Sr. Engineer (Commercial) and Mr. P.K. Srivastava, Manager (Finance) for their invaluable guidance, deep rooted interest, inspiration and continuous encouragement through out our summer training which helped us to learn about the company’s working and to complete our project work. We are also thankful to Mr. U. Das, Executive HR for his guidance through out the project. We also want to extend our heart felt thanks to Mr. Anil Srivastava (Assembling and Testing Department), Mr. S.P. Singh (Purchase Department), Mr. Y.P. Singh (HR Department), Mr. Manoj Kumar (Taxation Section), Mr. Sengar (Payroll Section), Mr. Verma (Suppliers Payment Section) and Mr. Joshi (Sales Section) for their continuous support and inspiration. Finally, we are grateful to those who have directly or indirectly helped us during the project work.

Kripa Shanker verma MBA (2008-10) Bhagwant University Ajmer

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TABLE OF CONTENTS

Page No. Introduction to BHEL………………………………………………………….… 5 Vision, Mission & Values of BHEL……………………………………………... 9 BHEL an Overview………………………………………………………………. 10 Human Resource Management……………………………………………......… 4 Products………………………………………………………………………....... 17 International Operations………………………………………………………... 20 Future Plans……………………………………………………………………… 23 BHEL at a Glance………………………………………………………………... 24 BHEL Jagdishpur………………………………………………………………… 26 Performance of BHEL Jagdishpur for the year 2008-09……………………… 29 Process of Manufacturing Insulators…………………………………………… 30 A Short History of Insulators…………………………………………………… 33 Marketing (Commercial) Department…………………………………………. 36 Finance Department……………………………………………………………... 45 Conclusion………………………………………………………………………… 49 Suggestion………………………………………………………………………… 50 Bibliography……………………………………………………………………… 51

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INTRODUCTIN TO BHEL BHEL is the largest engineering and manufacturing enterprise in India in the energy related/infrastructure sector today. BHEL was established more than 40 years ago ushering in the indigenous heavy electrical industry in India, a dream that have been more than realized with a well recognized track record of performance. It has been earning profiles continuously since 1971-72 and paying dividends since 1976-77. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian economy viz., power generation and transmission, industry, transport, telecommunication, renewable energy etc. The wide network of BHEL, 14 manufacturing divisions, four power sector reginiol centers over 100 project sites.it services its customers and provides them with suitable product, system and services efficiently and at competitive prices. THE QUALITY AND RELIABILITY OF ITS PRODUCTS DUE TO EMPHASIS ON DESIGN, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R& D centers. BHEL has acquired certification to quality management system ISO 9001:2000 environmental management system ISO 14001 and occupational health and safety management system OHSAS 18001 and has also adopted the concepts of total quality management. BHEL HAS: Installed equipment for over 1, 15,356 MW of power generation for utilities, captive and industrial users.  Supplied over 2, 25,000 MW transformer capacities and sustained equipment operating in transmission and distribution network up to 400 KC-AC and DC.  Supplied over 25,000 motors with drive control system to power projects, petrochemicals, refiners, steel, aluminum fertilizer, cement plants etc.  Supplied traction electrics and AC/DC locos to power over 12000 km railway network.  Supplied over one million valves to power plants and other industries.

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BHEL’S operations are organized around three business sectors, namely power industry including transmission, transportation, telecommunication and renewable energy and overseas business .this enables BHEL to have a strong customer orientation to be sensitive to his needs and respond quickly to the changes in the market. BHEL’S vision is to become a world class engineering enterprise, commited to enhance stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations as a ‘Navratna’ company since more than 10 years. The greatest strength of BHEL is highly skilled and committed 44,000 employees. Every employee is given equal opportunity to develop himself and improve his position. Continuous training and retraining, career planning, a positive work culture and participative style of management have endeared development of a committed and motivated work force leading to enhanced productivity and higher levels of quality. BHEL manufactures a wide range of products and systems for thermal nuclear gas and hydro based power plant to meet the customer’s requirement for power generation, transmission and utilization. The products that BHEL manufacture are described below. THERMAL BHEL manufactures steam turbine generators and boilers with matching auxiliaries up to 500 MW. NUCLEAR In this field BHEL manufactures steam turbines and generators and shields and heat exchange for 235 MW projects. GAS BHEL is the only company to manufacture large sized gas based power plant equipment comprising turbines up to 200 MW. HYDRO BHEL engineers and manufactures has built francis, pelton and Kaplan type turbine, pump turbines and minor-micro hydro plants with matching generators for different head discharge combination. The maximum size of hydro equipment already built and installed is 265 MW.

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TRANSMISSION BHEL supply a wide range of transmission products and systems up to 400 KV. These include high voltage power and distribution transformers, instrument transformers, dry type transformers, SF 6 switching gears cape electric citers etc for economic transmission of bulk power over long distances. High voltage direct current (HVDC) technology is now available. R & D projects for the development of equipment for 800 KV class are progressing a pace resistance high alumina ceramic line material of power, steel cement and mining industries as well as a wide range of industrial ceramics. The product portfolio can be divided into three categories: A) LT Type insulators B) HT type insulators (Disc insulators) C) Corallines D) New products (hollow insulators & bus support insulators)

L.T. Type Insulators: These are divided into four categories. They are I).Pin type (5/10 KN with creep age distance of 230/280/320mm) ii) Guy/Stay/Strain type (53/89/110 KN with creep age distance of 63/70/75 mm iii) Post type Disc type insulators: According to codes they are divided into: Code Strength

(in KN)

01

160(CD-280mm)

02

70/90/120

03

45

06

120(CD-280mm)

08

210

11

120

14

70/90/120

8

15

70/90/120/160

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70/90/120

Ceralin: Under ceramic line products of Ceralins it manufactures bends cones ventury canes O collars, Multiple discharge valves, multiport outlet, fuel Intel elbows, and other applications, Flyash tiles and also produced as per customer requirements. Bullet proof jacket and Catalytic converters are the products under current development.

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VISION, MISSION & VALUES OF BHEL AT A GLANCE

VISION A world class engineering enterprise committed to enhancing stakeholders value.

MISSION

To be an Indian multinational engineering enterprise providing total business solutions through quality products, systems and services in the field of energy, industry, transportation, infrastructure and other potential area.

VALUES : Zeal to excel and zest for change. : Integrity and fairness in all matters. : Respect for dignity and potential of individuals. 10

: Strict adherence commitment. : Ensure speed of response. : Foster learning, creativity and teamwork. : Loyalty and pride in the company.

BHARAT HEAVY ELECTRICALS LIMITED AN OVERVIEW Bharat heavy Electrical Limited. (BHEL), a company with majority share holding by the government of its kind in India and is among the 12 leading equipment manufacturers in the world. The company was set up in the year 1956 with a view to reach self-sufficiency in Power and Industrial products vital for the industrialization of India. BHEL is organized along three Business Sectors, viz, Power, Industry and International Operations. The main activities of Business Sector are marketing, Project Engineering, Erection, Commissioning and service after sales. The product Range of BHEL encompasses power generating equipment, electrical and thermos mechanical equipment for industrial applications, electrical traction equipment and urban transport systems. The company has a workforce of 44,000 including technicians, skilled workers and about 9,000 qualified engineers. BHEL today has 13 manufacturing plants and host of service divisions and around 200 projects sites. BHEL major manufacturing divisions have already received accreditation to ISO 9001/9002 BHEL has enjoyed an impressive growth record since its inception and registered a turnover of approximately us$1.25 billion during the year 1992-1993.

POWER BHEL has commissioned more than 800 Nos. utility and industrial sets totaling to over 50,000 MW equivalent generating capacity. BHEL’s share in utility generating capacity was approximately 64% of the installed capacity in

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India in March 1993. Presently, BHEL has capacity to supply power equipment equivalent to 7000 MW per year. (A) Thermal Generation: The unit sizes of utility stations in India range from 30 MW to 500 MW BHEL has so for being responsible for over 2000 of these installations accounting for over 40000 MW of installed generating capacity (utility) which include sets up to 500 MW capacity. The technology for manufacture of turbo generators comes from a comprehensive technical calibration agreement with Scienes AG of Germany. BHEL manufactures steam generator as per technology of M/S ABB Combustion Engineering of the USA. This technology has been acquired through 20 years of collaboration/license agreement. Both these collaboration covered unit ratings up to 1000 MW. Operating in an environment of high technology and severe competition as BHEL does, the company has perform to stay abreast with the technology leaders in the world. It is in recognition of such imperatives that BHEL has technology tie-ups around the world for a variety of power station auxiliaries as well. BHEL has a well chalked out programmed to assimilate, adapt and modify such acquired technology to suit differing economic, developmental, geographic & climatic requirement. The company has also a full-fledged Research and Development Division which undertake fundamental and applied research in power and related fields. Research; is being carried out on non-conventional energy sources as well. Several of these efforts such as those in the areas of fluidized Bed Combustion, Solar and Wind Power have already resulted in commercial ventures. (B) Hydro Generation: BHEL has supplied Hydro Sets upto 165 MW rating and 200 MW sets are under manufacture, BHEL has facilities to manufacture and install sets of even higher rating as per specific customer requirements. It also supplies turbines for low head mini and micro hydro stations to meet the needs of rural and backward areas located in the remote corners of the country. So far, BHEL has commissioned mire than 200 Hydro Sets of various types and capacities tattling to about 12000 MW. (C)Nuclear Generation: India’s first wholly indigenous Atomic Power plant at Kalapakkam near Madras is equipped with two sets of power generation equipment of rating 235 MW each supplied by BHEL. Subsequently, another two sets of similar rating have been commissioned successfully at Narora. BHEL is now manufacturing sets of 500 MW rating for nuclear power stations.

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(D)Gas Turbines based generators plants: Today BHEL is fully equipped to supply simple/confined cycle/cozen plants with various frame sizes of gas turbines of unit rating upto 200 MW. BHEL has collaboration agreements with two leaders of has turbines technology in the world namely general electric, USA and Siemens AG, Germany. The agreement with GE, USA covers rating from 4.6 MW (ISO). The Siemens agreement covers unit rating from 130 MW to 200 MW. So far BHEL has supplied more than 33 nos. Has a turbine. All these turbines have been supplied from our Hyderabad plant based on general electric, USA technology. BHEL has bagged orders for two gas turbine based projects in Malaysia, commissioning schedule of 6- 10 months. The first project has already been commissioning in 6 months time. While the gas turbines of GE/USA design are supplied from Hyderabad plant. With the plants (i.e. Hyderabad and Hard war) are fully equipped with state of manufacturing and testing facilities. BHEL is fully equipped to supply waste heat recovery boilers from their Tiruchirapalli plant. BHEL have an ongoing collaboration agreement with M/S Henry volt, USA for the Waste Heat Recovery Boilers. BHEL is supplying WHRSGS foe 6X30 MW gas turbines for Delhi electric supply undertaking, and 817 MW Dadri Project of national thermal power corporation limited besides those for other power stations. (E) Transmission: In addition to equipment for generating of power, BHEL supplies a variety of equipment for transmission and utilization of power. The company has also undertaken a number of turnkey sub-station contracts for voltage rating up to 400 kv class. Keeping with the KM long HVDC (High voltage direct current) transmission line project line for reliable and efficient transmission of bulk power. BHEL has in house capability to supply most of the equipment like power transformer current transformer, voltage transformers switches, insulators etc., and also possesses in house modern testing facilities. Billions of BHEL manufactured insulators of various ratings upto 160 KN are satisfactory service in many countries namely Turkey, Egypt, Malaysia, Iran, Iraq, USA Libya, Tanzania Dubai and course India. (F) Industry: The industry Sector of BHEL offers diverse items such as Transformers, Switcher, Rectifiers, Insulators, Capacitors, Control Gear, Valves Compressors, Pumps, Piping, Motors, Industrial turbines oilrig’s and semiconductor devices to meet the varying needs of industry.

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(G) Transportation: For over quarter of a century, BHEL has been supplying drives and control for traction equipment mainly to the Indian Railway, which is the third largest Railway network in the world. Today, 65% of the rolling stock in Indian contains electric of BHEL make such as traction motors, traction generators/alternators, and transformers. The company has lately moved from the position of supplier of electrics only to supplier of complete locomotives -both diesels electric as well as A.C. Locos. The urban transportation problem demands different solutions and BHEL’s contribution extends to underground tube, light rail and battery powered road vehicles

(H) Services (a) Project Engineering: The total engineering for thermal power stations is undertaken by a core group project engineering management. With over 500 engineers and supporting staff, this division offers specialized service in different technical disciplines and undertakes engineering works relating to optimization of cycle configuration selections of parameters and design of suitable system for power stations with a total MW capacity of 30000 and is currently involved in several turnkey project including stations having 500 MW unit size. b) Constructions Management: BHEL has a full-fledged construction management division to undertake erection work. This division well organized with over 500 experienced engineers,1000 technicians and 1300 skilled workers besides construction equipment valued at over 40 million US Dollars. c) Service After sales: BHEL extends its supply and construction scope with service such as commissioning field engineering performance monitoring trouble shooting operation and maintenance. Renovation modernization and rehabilitation works of aged power stations are also undertaken. BHEL has a separate spare group response for insuring ready availability of essential spares to Power stations. d) Projects Management: The project management division of BHEL coordinates th4 entire range of BHEL activities in relation to thermal power plant project and is responsible to the purchasing organization for compliance of the specifications. Entrusted

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with the overall coordination of the project the division initiates, directs coordinates, supervises and control all activities that are necessary for the performance of the project right from the conception stage until the contractual obligations are fully discharged. BHEL offers a wide spectrum of products and services for core sectors like power transmission industry, transportation, oil & gas telecommunication etc, deseeds supply of non-conventional energy systems. It has also embarked it to other areas including defense & aviation.

HUMAN RESOURCE MANAGEMENT 1. Industrial Relations The Industrial Relations at various Units and service divisions of the Company were harmonious and cordial during the year under report. Thrust to develop and nurture the participative culture in the Company continued during the current year also. The elections of the Unions through secret ballot at various Manufacturing and Service Divisions for representation at the apex level Joint Committee were held in July, 2002. Accordingly, Joint Committee for BHEL was reconstituted. Subsequently, a seminar for the orientation of new members of the reconstituted Joint Committee and familiarization with the issues related to the Company was held at Hyderabad for 2 days in October, 2002. A two days' workshop was also conducted in November, 2002 for Supervisors and Executives on Enhancing Organizational Effectiveness. The objective of the workshop was to bring about better understanding and appreciation of the issues being faced both by the Company and the employees. The apex level bipartite forum viz. Joint Committee for BHEL held 3 meetings while the Plant and Shop Councils held 51 and 236 meetings respectively during the year at various Units of the Company. 2. BHEL Excel Awards Inspired by the ideal of 'Yoga Karmasu Kaushalam', the Board of Directors of BHEL in its 320th meeting held on 30th October, 2000, took a historic step by approving BHEL Excel Awards Scheme to institutionalise the culture of Excellence in BHEL. The first such awards were presented for 2000-01 on 13th January, 2002. The objective of the scheme is to recognise, reward and place on record any direct or indirect outstanding and exemplary contribution by the employee towards growth and profitability of the company. The scheme stipulates the following nine categories of awards, each valuing up 15

to Rs. 50,000 in case of an individual, and up to Rs. 5 lakh in the event of a group/team winning the award. 1. BHEL Utkrishthta Puraskar 2. BHEL Gunvatta Puraskar 3. BHEL Tatparta Puraskar 4. BHEL Utpadakta Puraskar 5. BHEL Utkrishtha Takniki Lekh Puraskar 6. BHEL Anusandhan Puraskar 7. BHEL Srijanatmakta Puraskar 8. BHEL Grahak Santushti Puraskar 9. BHEL Paryavaran/Samaj Seva/Sanskriti/Khel Puraskar While the first eight awards are for the company employees only, the ninth award covers spouses and dependent children of the employees also. The Scheme also stipulates Swasth Karamchari Samman which are given to employees in appreciation of good health. The Samman is at the unit level for employees who do not claim any medical reimbursement for self and also do not avail any leave on account of sickness in the previous financial year. The 106 nominations, received from various units/ divisions for the year 2001-02 were scrutinized and short listed by a Screening Committee. The short listed entries were evaluated by the Jury constituted by CMD. The awards have been announced in 8 categories to a total of 50 employees/family members and 2 token awards in 25 recognition of individual skills. Their outstanding contribution is hailed as a significant milestone in BHEL's journey towards excellence. A word of appreciation to all those who participated and shown the zeal to excel. The journey of excellence will go on unabated with ever increasing vigour. 3. Awards won by BHEL Units and Employees SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management - Individual Category. Shri K.G.Ramachandran, Chairman and Managing Director, has won the coveted SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management, for the year 2001-02, in his individual capacity for his outstanding contribution to Public Sector management. The award carries a cash amount of Rupees One Lakh and a Golden Plaque. "Achiever of the Year Award" by CHEMTECH Foundation Shri K.G.Ramachandran, Chairman and Managing Director, has been awarded the "Achiever of the Year Award" by CHEMTECH Foundation, in recognition of his contribution to industry, under the category of Power Plant and Machinery Industry. He was unanimously selected by the awards committee, comprising some of the most prominent industrialists of the country. Prime Minister's Shram Awards Prestigious "Prime Minister's Shram Awards" instituted by Ministry of Labour namely Shram Bhushan, Shram Vir and Shram Shri have been won by four BHEL employees for the year 2002. This is the highest number of awards

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won by BHEL since the inception of the awards in 1985. Vishwakarma Rashtriya Puraskars Six Vishwakarma Rashtriya Puraskars, for the year 2000 were won by 19 employees of BHEL. The award is instituted by Ministry of Labour. National Safety Awards Four BHEL Units, i.e. Tiruchy, Hyderabad, Electronics Division - Bangalore and Electro porcelains Division - Bangalore, won National Safety Awards for the year 2000. The award is instituted by Ministry of Labour. "Excellence in Energy Management"- CII Awards HEEP-Haridwar Unit has been awarded a certificate in the category of an "Energy Efficient Unit", along with other companies, in the competition held in December, 2002 at Chennai by CII.

INSSAN Awards Hyderabad Unit has won the first prize for Excellence in Suggestion Scheme, Best Suggestor Award and two Best Slogan Awards in the INSSAN National Convention for the year 2002. These awards are instituted by the Indian National Suggestion Scheme Association (INSSAN). Those details of the awards won by Hyderabad Unit are: a) Excellence in Suggestion Scheme b) Best Suggestor Award c) Best Slogan Award (Hindi) d) Best Slogan Award (English) 4. Human Resource Development During 2002-03, 40466 participants were exposed to different training programs in our various training Centers at Units as well as at apex level in NOIDA. Besides, 3700 Act Apprentices and 1300 Technician Apprentices were also provided with training at our Units, as part of fulfillment of our social obligation towards the society. Also, towards our ongoing efforts for higher customer satisfaction, around 1100 customers' personnel were provided training inputs on our products at Training Centers in the Units. 5. Activities of the company for welfare and Advancement of Scheduled Castes (SCs) And Scheduled Tribes (STs) The company has been following the Presidential Directives and guidelines issued by the Government of India from time to time regarding reservation for SCs and STs in letter and spirit. During the year, the various Community Development activities focused on Socio- Economic development of SCs and STs have been carried out by BHEL in the 56

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villages adopted by it. Representation of SC/ST employees the representation of SC/ST employees in total manpower was 18.13% and 3.73% for SCs and STs respectively as on 1/1/2003

PRODUCTS  Industrial fans Power generation & Transmission  Sam less Steal tubes  Steam Turbine-Generation Sets & Auxiliaries  Fabric Filter  Boiler and Boiler Auxiliaries  AC/DC Motors, Variable Speed  Once through Boilers  AC Drives  Nuclear Power Generation Equipment  Electronic Control Gear & Automation  Hydro turbine-Generator Sets & Auxiliaries  Equipment  Mini/Micro hydro Generator Sets  DDC for Process Industry  Gas Turbine-Generator Sets  Thirstier Equipment  Waste Heat Recovery Boilers  Power Devices 18

 Heat Exchangers  Energy Meters  Condensers  Transformer  Bowl Mills and Tube Mills  Gravimetric Feeders  Insulators  Regenerative Air Pre-Heaters  Capacitors  Electrostatic Precipitators  Broad Gauge, AC,AC/DC Locomotives  Bag Filter  Diesel- Electric Shunting Locomotives  Valves  Tractions Motors  Pump  Electric Trolley buses  electric Machines  AC Electric Multiple Units  Piping System  Drives & Control for Metro system  Power, Distribution 7 Instrument Transformers - Battery Operated Passenger Vans  Reactors  Oil Rigs & Oil Field Equipments  Synchronous Condensers  Digital Switching System

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 Switchgear  Rural Automatic Exchange  Control Gear  Simulators  Distributed Digital Control for Power station  Wind Electric generators  Bus Ducts  Solar powered Water Pumps  Porcelain Insulators  Photo Voltaic System  Ceralins  Defense Equipments/Oil/Gas  Reverse Osmosis Desalination plant/ Telecommunication /Renewable Energy  System Turbine  Generator Sets A dynamic 67000 Strong team embodies the BHEL philosophy of professional excellence with corporate headquarters in New Delhi: BHEL is India’s ambassador to the world with export presence in more than 50 countries. BHEL has a consistent tract of growth performance & profitability.

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INTERNATIONAL OPERATIONS BHEL has over this year established its references in around 60 countries of the world ranging from United States in the west to New Zealand in the East. These References Encompass almost the entire product range of BHEL covering turnkey power project of thermal hydro and gas based type substation project, rehabilitation project, based a wide variety of project, like transformers, insulators, switchgears, heat exchanger, casting and forging, valves well-head equipment etc. Apart from over 1110 MW of boiler capacity contributed in Malaysia and execution of four prestigious power project in Oman, some of the other major successes achieved by the company have been in Australia, Saudi Arabia, Libya, Greece, Cyprus, Egypt. Technology Up gradation and Research & Development to remain competitive and meet customer’s expectations, BHEL lays great Emphasis on the continuous up gradation of product and related technologies and development of new project works. The company has upgraded its product to contemporary levels through continuous in- house effort as well as through acquisition of new technology from leading engineering origination of the world. The Corporate R&D Division at Hyderabad, spread over a 140 acre complex leads BHEL research efforts in the number of areas of importance to BHEL’s product range research and product development center at each of the manufacturing division play a complementary role. BHEL’s investment in R7D is among the largest past several state-pf-the art product developed in housing during the last five years contributed about 8.6% to the revenues in 2000-2001 BHEL has introduced in the recent past several state –of –the –art produced developed in –housing: low-Nox oil gas burner, circulating fluidized bed combustion boilers high efficiency Pillion hydro-turbines, petroleum depot automation system, 36KV gas –insulated sub stations, etc. The company also transferred a few technologies developed in-housing to other Indian companies for commercialization. Some of on going developed & demonstration project include: Smart wall blowing system for cleaning boiler soot deposit , and micro- controller based governor for dieselElectro-locomotives . The company also engaged in research in futuristic areas, such as application of super conducting materials in power generation and industry, and fuel cells for distributed environment –friendly power generation. 21

HUMAN RESOURCE DEVELOPMENT INSTIUTE The most praised asset of BHEL is its employers. The Human Resource Development Institution and other HRD centers of the company help in not only keeping their skills updated and finally honed but also in adding new skills, whenever required Continuous training and retraining, a positive work culture and Participative style of management, have engendered developed of a committed and motivated workforce, leading the enhanced productivity and higher levels of Quality.

MANAGEMENT HEALTH SAFETY AND ENVIROMENT BHEL is the integral part of business performance and in its endeavor of becoming a word class origination and shearing the growing global concern on issue related to environment in and around its own establishment, and to provide safe and healthy working environment to all its employers. For fulfilling these obligations, Corroborate Policies have been formulated as; Environmental Policy:  Compliance with applicable Environmental Legislation/ Regulation;  Continual improvement in Environmental Management System to protect our natural environment and Control Pollution;  Promotion of activities for conservation of resources by Environmental Management  Enhancement of Environment awareness among employees, custom & suppliers  BHEL will also assist and cooperate with the concerned governmental Agencies and Regulatory Bodies engaged in environmental activities, offering the company’s capabilities in this field. Occupational Health and Safety policy:  Compliance with applicable Legislations and Regulations;  Setting objectives and targets to eliminate/ control /minimize risks due to Occupational safety Hazards;  Formulation and maintenance of OH&S Management Programs for continual improvement.  Product review of OH&S Management system to ensure it continuing suitable adequacy and effectiveness;  Communications of OH&S Polices to its all employees and interested parties.

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The major units of BHEL have already acquired ISO14001.Environmental management system certification, and other units are in advanced stages of acquiring the same. Action plan has been prepared to acquire OHSAS 18001Occupational Health and Safety Management systems certification for all BHEL units. Participation in the “Global Compact” of the United Nat the “Global Compact” is a partnership between the United Nations, the business Community, international labour and NGOs. It provided a forum of them to work together and Improve corporate practices through co-operation Compact” of United Nations and has committed to support it and the set of core value ensured its nine principles.

“PRINCIPLES OF THE “GLOBAL COMPACT” HUMAN RIGHTS 1. Business should support and respect the protection of internationally proclaimed Human rights 2. Make sure that they are not complicit in human rights abuse. Lab our standards 3. Business should uphold the freedom of association and the effective Recognition of the rights to collective bargaining. 4. The elimination of all forms of forces and compulsory labors. 5. The effective abolition of child labor 6. Eliminate discrimination. 7. Business should support a precautionary to environmental changes. 8. Undertake initiatives to promote grater environmentally responsibility. 9. Encourage the development and diffusion of environmentally friendly techniques by joining the “Global Compact” , BHEL would get a unique opportunity of networking with corporate and sharing experiences related to social responsibility on Global basis.

FUTURE PLANS As a part of forward integration strategy the company plans to enter into the power distribution business. The company already manufactures product required by the distribution systems like transformers, switchgears etc. BHEL has announced that it will launch a B2B portal, keeping in mind its core competency-power systems. As per the company announcement it could take them four 23

to six month to announce the location of its new business. The company is planning towards becoming an application service provider. The company will continue to focus on project management reducing cycle time and cost control. In the power sector, the company plans to obtain a part of the business generated by independent power producers through a combination of approaches including consortium route, equity participation and limited financial syndication. BHEL would also put additional emphasis on spares and service business for hydro and thermal plants. BHEL is introducing a number of new products like 3-phase traction electric and advance class gas turbines in the Indian market. It is equipping it self with the new type of once-through design boiler technology, and for pollution control-bag filter technology. BHEL is planning to enter new business in integrated gasification combined cycle system, coal washeries and LRT systems. In its existing businesses of transportation, transmission and industry. BHEL is pursuing opportunities in EMU coaches, loco refurbishment, gas-insulated switcher, HVDC insulators and electronic meters. The company will continue to focus on product development in order to foster its growth strategy. New products are expected to contribute 46% of its total turnover. The electronics division has frayed into traction business and received a large order from Dot for switching equipment for 0.25mm lines. The Industrial System Group has bagged orders from BWSSB for water pumping stations (Cauvery Stage IV), funded by Japan Bank for international cooperation. The electro porcelains division is now manufacturing HVDC disk insulator and its catalytic converter has also passed the entire test.

BHEL AT A GLANCE Rupees (In Million)

2003-04 2004-05

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CHANGE (%) Turnover

Value Added

Employee (Nos.)

Profit Before Tax

Profit After Tax

Dividend

Dividend Tax

Retained Earnings

Total Assets

Net Worth

Total Borrowings

Debt : Equity

86625 103364 19.32

36800 42540 15.60

43952 43302 -1.48

10148 15816 55.85

6582 9534 44.85

1469 1958 33.29

190 266 40.00

4923 7310 48.49

116564 144915 24.32

52781 60269 14.19

5400 5370 -0.56

0.10 0.09 -10.90

Per Share (in Rupees) : - Net worth

215.64 246.24

25

14.19 - Earnings

- Dividend

26.89 38.95 44.86

6.00 8.00 33.33

(US $ in million) Turnover

Profit Before Tax

Profit After Tax

1976 2371 19.98

232 363 56.71

150 219 45.65

Conversion Rates (Rates as on 31st March) : 1 US $ = Rs. 43.83 for 2003-04 1 US $ = Rs. 43.59 for 2004-05

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INSULATOR PLANT - BHEL, JAGDISHPUR The insulator plant BHEL, Jagdishpur was set up in 1984, catering to electric power transmission business by way of manufacture and supply of disc insulator. Presently the plant is geared to produce 19 thousand tons of disc insulators annually and one thousand tons of Ly. of insulators. Over the year lot of technological innovation have taken place in the plant which has streamlining of manufacturing processes & has taken it in to the level of best industry. New type of disc insulator has also been introduced periodically and today it manufactures disc insulators up to 160-Kn.Stength ranging from normal to anti fog type. The plant has till date executed many prestigious export contracts and has supplied disc insulators to Turkey, Malaysia, Trinidad & Tobago, Ghana, and Nigeria etc. Since 1994, low tension types of insulators have also been introduced in the product range in addition it supplies to domestic market quantities have also been exported to countries like UK & South Africa. In present area of liberalization the company has not only gone for diversification but also has taken concrete measures for organizational and product improvement by ISO-9001 certification and adopting iqm approach. In the present world an attempt has been made to system erotically analyze the export market requirements of insulators and identify the product forming bulk exports. The world market scenario of insulators imports have been presented with a view to provide strategic global market information for insulator exports. On 3rd march 1984 the prime minister of India Smt. Indira Gandhi inaugurated BHEL’s 11th manufacturing unit in Jagdishpur Sultanpur district,78 kilometers away from Lucknow, on the Lucknow Sultanpur highway. BHEL’S more than 40 years experience in the ceramic field ,blended with that of NGK, Japan’s world leader in insulator technology, set the pace for been provided with the most modern and sophisticated facilities, and was commissioned in a record line of 18th months. Insulator plant Jagdishpur has developed into one of the India’s disc insulator manufacturing centers with the most streamlined layout and modern technology.It6 has provisions to cope with latest advances in the ceramic field.

MAJOR RIVALS OF ‘BHEL’ INSULATOR PLANT, JAGDISHPUR  JAI SHREE INSULATORS, KOLKATA (BIRLA GROUP)  WS INSULATORS, KOLKATA (WEST BENGAL)  MODERN INSULATORS, CHENNAI  IEC, KOLKATA (WEST BENGAL)

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 BATHINDA CERAMICS, PUNJAB  HI-TECH, KHURJA (U.P.)  POWER TECH, KHURJA (U.P.)

MAJOR CUSTOMER OF ‘BHEL’ IP JAGDISHPUR Jagdishpur insulator plant has some important customer which are state electricity board, government organizations, public sector units and private customer and Indian railways. STATE ELECTRICITY BOARDS  UPPCL  MPSEB  GEB  PSEB  KSEB  KPTCL  TNEB  MSEB PUBLIC SECTOR UNITS  POWER GRID  NTPC  NHPC  DVC  NLC

Government Organizations  Govt. of Tripura  Govt. of J&K  Govt. of Mijoram  Govt. of Manipur

Private Customers  Jyoti Structures Ltd.  JSPL (Jindal Steel Power Ltd)  Associated Transrail Strucrures Ltd 29

 RPG Transmission Ltd.  Tata Project  Ramji Power Construction  EMC (Electrical Manufacturing Company)  KPTL (Kalputra Power Transmission Ltd.)  Devang Electricals.

PERFORMANCE OF ‘BHEL’ JAGDISHPUR FOR THE FINANCIAL YEAR 2005-06 Total Turnover

Rs. 7846 lacs

Value Added

Rs. 2864 lacs

Profit Before Tax

Rs. 165 lacs

Net Current Assets (W.C.)

Rs. 4778 lacs

Net Block

Rs. 887 lacs

Capital Employed

Rs. 5665 lacs

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TARGET OF ‘BHEL’ JAGDISHPUR FOR THE FINANCIAL YEAR 2006-07 Physical Target

11884 Tonnes

Financial Target

Rs. 8500 lacs

Profit

Rs. 605 lacs

PROCESS OF MANUFACTURING INSULATORS The various manufacturing units through which the insulator passes before getting converted into the finished product are as follows: 1) STORAGE: The different raw materials for manufacture of insulators are stored in the identified bins. The raw materials that are required are: a) calcined chaibasa clay b) dolomite c) manganese dioxide d) chrome ore e) calcite f) talc g) ellur clay h) than clay i) quartz for brown clay j) quartz k) feldspar l) bikaner clay m) pyrophyllite n) felcite o) sericite p) japan ball clay All these materials are used in different quantities for different type of insulators that are manufactured and demanded by the customers. 2) SLIP HOUSE: The slip house performs the following operations: 31

a) WEIGHING: Different raw materials from the storage bins are collected and weighed according to the percentage composition given by the E&D and according to the ball mill capacity to be charged. Then the weighing card is attached to the lot. A sample data for preparation of suspension body slip in a 5 ton ball mill for the first charge are as follows: Quartz Feldspar Pyrophylite Bikaner clay Felcite Pebbles

1053 kg 603 kg 653 kg 387 kg 201 kg 157 kg(due the presence of previously charged pebbles in the ball mill)

B) RIVER-PEBBLE CHARGING: For initial charging of river pebble in the ball mill after rolling large ,medium and small pebbles are collected as per standard samples and weighted as per specification number(PPSL: 0100 R-2 )and pebbles are charged as per the quantity specified. C) PREPARATION OF FIRST CHARGE BODYSLIP: Weighed quantity of first charged raw materials is charged into the ball mill by attaching a cone to its hole from the charging hole on the platform. The pebbles are cleaned with water before charging and then specified quantity of water is charged into the ball mill. Generally charging takes 1-2 hours and ball mill runs 14-16 hours. D) PREPARATION OF SECOND CHARGE BODY SLIP: Weighed quantity of second charge is charged into the ball mill with required quantity of water after preparation of first charge body slip and the ball mill is run for specified time. Then the slip is discharged into the mixing tank and is agitated continuously. E) BLUNGING RETURN SLIP: Scrap and water returned by the process is charged into the blunger in specified proportions to get required specific gravity of the slip. Then it is blunged to achieve homogeneous slip. F) PREPARATION OF CAKE: The slip from the initial tank is pumped into the press using plunger pump and then adequate pressure is applied to turn it into a cake. Here the slip house work is complete. 3) JIGGERING UNIT: The cake from the slip house is fed into the plungmill. Plungmill makes dough of the cake and releases it in continuous cylindrical moulds. These moulds are then made into required shapes by automatic jiggering machines.

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4) FINISHING UNIT: the article is placed on the rotating wheel and adequate layer of mass is removed without affecting die formation. Then the articles are placed on tunnel drier cars and the cars are led into the temperature dryings chambers. 5) GLAZING UNIT: the glazing unit carries out the following operations: a) CMC solution preparation b) Sanding glaze preparation c) Brown glaze preparation d) Glazing operation e) Sanding operation f) Stamping and loading 6) FIRING UNIT: the firing work is done in the kiln. It is a continuous process and the kiln temperature and cycle is maintained according to the instructions of the E&D. This is done to test and check the suitability of the product according to the specifications mentioned during the whole process. 7) ASSEMBLY SECTION: the various operations performed during assembly are: a) application of bituminous paint b) preparation of cement mortar c) assembly of insulators 8) TESTING SECTION: here the testing of the finished product is done before the dispatch by the R&D of the company. This is usually done by taking any sample from the lot and then testing it. 9) DISPATCH SECTION: after all the above processes are finished and the testing is complete a green chit is marked which confirms that the product is not defective and right for dispatch.

IT DEPARTMENT The company also has an IT department which gives full technical support to all equipments related to information technology. Now a day IT plays a big role in transmitting information in any company. It is much more efficient and fast than the conventional system. BHEL IT department sets a good example of it. Here we can see the complete system through which company is interlinked as well as with EPD Bangalore (A branch of BHEL). They provide services to all the departments via LAN (Local area network) and WAN (Wide area network).

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A SHORT HISTORY OF INSULATOR INTRODUCTION: A transition of insulator can be seen in various types of pin insulator suspension long road insulators etc. The history of electric power industry is more than 100 year and in this line span the industry has performed the indispensable role of supply of energy to various industry & is still developing at a transition of insulator can be seen in various types of pin insulators and in this span conductor suspended from silk threads to insulate them from ground. SUSPENSION INSULATOR Pin type insulators continued to be used for transmission of voltages up to 70 KV. However, pin type insulators were already becoming too large to0 be used with transmission voltages over 100 KV. And was quickly becoming impractical for large voltages. This lead to the development of suspension insulator by Mr. Lock, owner of the lock insulator mfg. Co, who produced the world’s first suspension insulator in 1903. This isolator soon had its shape improved to become the Duncan insulator. This insulator had the advantage that it could be copied for use with higher transmission voltages. In Europe, the first suspension insulator was developed in 1908 by the Hermsdorf problem fabric, These insulators had shaped which were an advanced over those of the pin type insulator. In 1907 the American E.M. Hewlett developed the insulator which is known as the interline, or fish-type insulator. These insulators soon came to be known as Hewlett insulators and were widely used all over the world for many years. 1915 brought the development of the J.D. insulators by the American company of Jeffery Dewitt. thickness, thoroughness and no deterioration advocated by this insulator attracted the attention of the electric power industry, but its advantage of heavy weight resulted in their disappearance after 10 years. Today’s suspension insulators are an improvement of the Duncan type and use the connecting method for insulator, which has developed around 1910 by the look co. this developed into the cleaves type suspension insulator as we known it today. About the some time, The Ohio Brass Co. developed the two type of suspension insulator. Many improvements were later made on these two types of suspension insulator to provide the standard form of suspension insulator in use today. The tensile strength of the standard 250-mmsuspension insulator in 1921are so was at level of 4000-5000 Kg . With an extremely poor annual deterioration rate of 0.75% later improvements to the porcelain body and the introduction kilns and the improved design of the porcelain part, the inner surface of the cape and the pin head part as well as content improvement resulted in a gradual advance in quality and performance. In 1850 the German company Siemens developed a porcelain pin type of insulator with a single lair. The development of the first glass pi type of insulator followed in 1858.

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The paths of development which shapes of insulators on opposites of the Atlantic took were fairly different. The first insulator had increased thickness of porcelain for higher voltage with diameter of porcelain been increased to make the leakage distance longer. The range of increase leakage distance or resistance which was made possible by increased diameter was very limited. It was at this stage that double lair pin type insulator was developed in the USA. The surface of pin type insulator was often short -circuited with atmospheric moistures and this led to the hasty development of oil pin insulators in Europe. How ever, even the practical use of this concept was soon out moded by multi lair pin type insulators. The size of porcelain insulators become extremely large with high transmission voltage and the production of large pieces of porcelain of was of by means simple. This brought about the manufacture of lair pin type insulators in order to insulator transmission voltage 20KV. a transmission of 55KV was successful operated in the USA in 1902. The transmission was first planned to use the triple lair pin type insulators, but as these were found to be mechanically weak, quadruple, this resulted in there eventual adoption. Consequently, when compared with the first such insulators, today’s insulators are four times as strong and have an annual deterioration rate of about 1/1000.

Long-Rod Is Insulators The early suspension insulators had a high deterioration rate. One of the cause was the expansion of the cement connecting the pin of the suspension insulators to the porcelain cavity parts which resulted in an internal force tending to push the insulators open and the corresponding increase in the tension stress in the porcelain, bringing about the eventual destruction of the insulators stress this was regarded a fundamental structural problem in both Germany & Switzerland, it was considered that any improvement on the conventional structure would not amount to any complete eradication of the problem. Therefore, a structure, which did not generate increased tension in the porcelain, even if the cement expands, was study. The insulator which was forerunner of today’s long road insulators was developed in Switzerland by the Motors-Columbus Co. in 1917. At the time, the use of cement filler was out of favor, so the structure had a metal fitting. Which was mechanically consternated from the out side? This was later modified to the normal metal cap connection. The insulators manufactured by Motor-Columbus Co. are called motor insulators. Such insulators parts become sort when copra to the length of insulators in its connect states. This is to say that for a comparison of motor insulator and suspension insulators in case of same. This necessitated increasing length of porcelain in portion of the motor insulators and consequence gave rise around. These insulators also come to be made in fairly long and let to the development and manufacture of the long stab isolator which could with stand 110 KV and a length of more than one meter. This insulator was developed by the Hermsdorf-Schaumburg Co. in 1936 and was forerunner of today’s long rod insulators.

Apparatus Insulators These are two main type of insulator for apparatus at sub stations. They are the hollow porcelain used for the transformer bushings, and the subject insulators used for supporting the bus lines.

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In BHEL Jagdishpur generally orders for sale of product are referred from Bangalore office. In Bangalore, BHEL has a full fledged marketing division which handles all the issues related to marketing of jagdishpur insulator plant. After getting the orders several steps are performed to get the order fulfilled in a proper manner. First the contract letter is reviewed and the terms and conditions are carefully reviewed and inspected. There are some points to be analyzed: 1 General terms and conditions and special terms and conditions.

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2 3 4 5 6

Price quality and delivery schedule. Technical specification Price variation formula. Guaranteed technical particulars Dispatch instructions

After this the work order is issued to different departments by the marketing department for the production and completion of the whole contract. These include 1 Production planning and coordination 2 Finance department. 3 Engineering department 4 Quality control department 5 Material management departments

TENDER NOTIFICATION AND PURCHASE ORDER The work of marketing department commences when they fill a tender and the purchase order is received by them. After receiving the purchase order the marketing department works within the guidelines that are mentioned in the purchase order to fulfill that particular order. Following are the general guidelines that are mentioned in a purchase order-

DRAWING Drawing specifications are given to the engineering department for preparation of detailed drawings for further submission to the customers for approval. After approval from the customer copies of the drawing are given to the engineering department, quality department and to the production department for their reference and for modification in the manufacturing, if suggested by the customer in the drawing.

TYPE TEST AND QUALITY PLAN As per the specification of the contract, the type test is to be conducted either at BHEL works or at third party laboratory. The type test reports for which the test have already been carried out within 5 years earlier to the date of contract, the same are submitted to the customer. The customer considers these tests as per the industry

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terms and gives the approval. But if the customer insists for fresh type tests, the same has to be performed. Some customers like powergrid, UPCL, power-links etc requires the quality plan, and the same is submitted to the party with consultation of quality department.

MANUFACTURING After all the above steps manufacturing process starts according to the specification and quality design.

GENERAL AND SPECIAL TERMS AND CONDITIONS The sales contract is considered as having come into force from the date of notification of award. The contractor whose supply contract is accepted is called supplier. The scope of contract shall be the design and engineering, wherever applicable, manufacture, inspection and testing before dispatch, packing and supply on F.O.R. Destination basis of the material and equipments in accordance with the enclosed technical specification and bill of material. The qualities of porcelain items and line hardware to be supplied by contractor may vary within +10% of the quantity ordered by the purchaser. This is because of the possibility of slight variation in the ultimate yield of the manufacturing process of these items.

CONTRACT PRICE The price quoted is for delivery ex-contracts works/subcontracts works/port of entry inclusive of packing and forwarding but exclusive of freight and transit insurance charges. Quoted price also do not include sales tax, excise duty or local authorities from time to time and all such levies shall be charged extra as prevailing on the data of actual deliveries and borne by the purchaser at actual regardless of the contracted delivery schedule and other terms and conditions of contract. The purchaser, if registered under sales tax act should furnish to the contract with the purchase order and the necessary forms in duplicate to get the benefit of concession in the rate of sales tax. Otherwise, the sales tax have to be paid by the purchaser at the non-confessional rates.

STATUTORY OBLIGATIONS If the cost of performance of the contract is increased or reduced by reasons of making, passing or promulgation of any law after the date of tender in India or elsewhere or any other regulation or by law having the force of law, the amount of such increase or reduction shall be added to or deducted from the contract price as the case may be. 39

TEST AND INSPECTION Type tests are not included in this offer. The materials are subjected to root line and acceptance test as per relevant international standard and specification, by the contractor which works before dispatch. The testing facilities available in the contractor’s works are enclosed. Having satisfied himself that the materials have successfully passed the routine and acceptance test, the contractor shall dispatch the materials as per dispatch instructions in the contract and shall furnish the test certificate along with dispatch documents for purchaser’s reference and records. It is also desired that the contractor shall be placed to offer the “first lot” for inspection and witnessing of acceptance tests by purchasers representative contracts works. For this inspection the contractor shall normally give the purchaser 2 weeks written notice. The expenses of the purchaser’s representative will be borne by the purchaser. In case the purchaser’s representative arrives on the notified inspection date, he shall take up the inspection, witness the acceptance test, shall also sign the test certificates after successful completion of the tests at the contractor’s works itself. Then the lot will be deemed cleared for dispatch. In case the purchaser’s representative does not make himself available at the contractor’s works for inspection the contractor shall go ahead with the tests which shall be deemed to have been carried out in presence of purchaser’s representative and the lot shall be deemed cleared for dispatch. The contractor shall however take full responsibility for actually carrying out the routine and acceptance test successfully on these lots and for conformity of the material to the agreed specification.

PACKING Packing is done in accordance with the contractor’s standard practice. Any damage due to bad/loose shunting, improper handling by the railways/road transporters in transit or at the transshipment point is not the responsibility of the contractor.

DISPATCH Final dispatch orders are issued by the purchaser along with the order. However if the contractor faces difficulty in dispatch by the mode/route specified by the purchaser the contractor will have the option to effect dispatch by an alternative mode/route with the prior consent of the purchaser which is nay unduly withheld and the

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contractor should be paid any difference in the freight arising due the change in the dispatch route.

TRANSIT INSURANCE Liabilities pass over to the purchaser immediately upon the dispatch of goods. The contractor accepts no liability for storages in transit. Purchaser shall be furnished with dispatch particulars soon after dispatch of equipments to enable the purchaser to arrange transit insurance. Any replacement/repairs if required due to damage during transit, is covered by a separate new quotation and order.

DELIVERY The contractor shall deliver the equipments within the period specified in the offer. The commencement and completion of delivery, however, are subject to the following conditions: 1) The purchaser making available the detailed dispatch instruction along with the order. 2) The contractor’s foreign/indigenous supplier delivering the basis of raw materials and components within the committed delivery periods. 3) The purchase effecting the payment, as stipulated in the offer. 4) Force –majuro conditions. In all cases where the contractor experience delay on either one or more than one of the above accounts, the contractor should intimate the purchaser the cause of the delay and the period lost during such occurrences. The deliveries specified in the offer will automatically be extended by the period thus lost. Delivery shall be made in one or several consignments and each dispatch would constitute a sale.

PAYMENT TERMS: There are four modes of payments: 1) 100% advance payments in case of private party. 2) Through letter of credit in case of private and government party. 41

3) 100% advance 90% balance after dispatch from PSUs. 4) 100% after dispatch in case of government agencies. 5) For export to foreign country advance payment of 100% amount.

PAYMENT IN CASE OF LETTER OF CFEDIT IS OPENED Unless otherwise stated in the offer, 100% payment value of materials including taxes, duties levies, will be realized by the contractor for each consignment dispatched against an irrevocable divisible confirmed letter of credit at sight to be established by the purchaser with contractor’s bankers at industrial estate, jagdispur, district sultanpur. The letter of credit should be established by the purchaser at the time of issue of purchaser order itself. In case of payments terms agreed 100% payments against dispatch of documents through purchaser’s bankers; the following shall also be implied: 1) Delay in retirement of the invoices of the contractor is considered as a breach of the contract. Further, the purchaser shall pay there contractor interest charges at 18% for all payments which are due for more than 30 days from the date of invoice. 2) In addition to levying the interest charges, the contractor shall reserve the right to suspend the work and withhold the dispatches of the equipments/divert the equipments elsewhere in the event of delay on the party of purchaser in effecting prompt payments. In such cases the contractor shall also have the right to revise his price and delivery for the undelivered portion of equipments, accessories and services in the contract. 3) The contractor’s invoices should settle in full. 4) Full taxes, duties should be claimed in the invoice against dispatch. 5) In case purchaser desires the dispatch of equipment to private sights consigned to the consignee or transportation by road, the payment for each consignment will be collected against proforma invoice before dispatch. 6) All bank charges should be charged to the purchaser’s account.

MONETARY DEPOSITS/BANK GURANTEE Unless otherwise specifically mentioned in the contractor’s offer, the contractor is not bound to furnish the purchaser with any monitory or bank guarantee for purpose like earnest money, security deposit, performance guarantee or any other purpose.

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WARRANTY 1) The contractor warrants that the materials will be in accordance with specification and free from defects in workmanship. 2) For va period of twelve months commencing immediately from the date of collection but not later than 18 months from the date of dispatch of equipment called “WARRANTY PERIOD” the contractor is liable to replace any defective parts that may develop in the supplies of his own manufacture or those of his subcontractors under conditions provided by the contract and under proper use and arising solely from faulty design, materials or workmanship provided that notice of any such defects or failure to confirm the specification and satisfactory proof that is promptly given by the purchaser to the contractor, in the warranty period. 3) The contractor’s obligations against the above clause are limited at contractor’s option to repairing or replacing all transport charges from contractor’s side and back. 4) The acceptance of the equipment by purchasers shall in no way relieve the contractor for his obligation under this clause. 5) The provisions contained in this clause will not be applicable; a) If the purchaser or user has not used the materials according to generally approved practices. b) If the purchaser has not notified the contractor in writing as soon as defect occurred. c) If the equipment is spoiled or becomes defective on account of prong longed or improper storage at site or due to purchaser’s fault. d) In case of formal wear and tear. e) In case of lighting and improper design and maintenance of transmission lines/sub station equipments, where the offered goods are used. 6) The remedy stated above is the exclusive remedy of the purchaser for a breach of warranties by the contractor. There is no other warranties expressed or implied other than title. The purchaser’s exclusive remedy and the contractor’s sole obligation after acceptance of the equipment shall be those stated herein.

INVOICE 1) All descriptive literature, shipping specifications, drawings and particulars of weights and dimensions submitted with sales contract are approximately unless otherwise mentioned in the contractor’s tender. The description and illustrations contained in the catalogs and other advertisements matter are intended nearly to present a general idea of the equipment described herein and none if these shall form part of the contract. 2) The contractor shall have the right to improve or modify the design if equipment contacted during the tenure of contract without affecting the basic functional requirements of the contract, without seeking purchaser’s approval.

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DEMURRAGE: In the event of or delay in retirement of the dispatch documents from the bank, consequent upon which demurrage and wharf age charges are payable to the transport or rail authorities, all such expenses shall be borne by the purchaser. In case the transporter or rail NOT CLEAR ABT THE WRITE UP

SUSPENSION OF WORK/CANCELLATION 1) The purchaser shall pay to the contractor reasonable expenses incurred by the contractor by reason of suspension of work caused by suspension or lack of information from purchaser unless such default on the part of the contractor or sub contractor. 2) The purchaser shall not unilaterally cancel the order once placed. In the event of an order being cancelled the purchaser shall pay to the contractor the cancellation charges to be advised by the contractor in the event of any cancellation under the provision of this clause, the purchaser shall have no claim on the design and materials lying ready with the contractor for the contract. These will remain property of the contractor. 3) In no case shall the purchaser have the right to purchase from elsewhere, equipments and services ordered on the contractor at the contractor’s risk and cost.

PATENTS The contractor shall indemnify the purchaser from any claim of infringement of left patent or registered design(published at date of contract order)by the sale of any article or material supplied by the contractor to the purchaser and against all cost and damages for which the purchaser may become liable, in such action, provided always that this indemnity shall not apply to any infringement which due to the contractor having followed a design or instruction furnished or given by the purchaser or to the user of such articles or materials in a manner or for a purpose or in a foreign country not specified by or disclosed to the contractor, and provide also that this indemnity is conditional on the purchaser given to the contractor earliest possible notice in writing and claim being mad4e for such action threatened or brought against purchaser and on purchaser permitting the contractor at his expenses to conduct any litigation that may ensure and all negotiations for settlements of the claim. The purchaser on his part warrant that any design or instruction furnished or given by the purchaser shall not be as such will cause us to infringe any letter patent, registered design or trade mark in the execution of the order.

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ARBITRATION If at any time any question, dispute or difference whatsoever shall arise between the purchaser and the contractor upon or in relation to or in connection with contract, either party may forthwith give to the other notice in writing of the existence of such question, dispute, or difference and the same shall be referred to the adjudication to arbitrators one to be nominated by the purchaser and the other to be nominated by the contractor, or in the case of said arbitrators in writing, before preceding with the reference and the award of arbitrators or in the event of not agreeing of the empire appointed by them shall be final and binding on the parties and the provisions of the Indian arbitration act 1940 and the rules under any statutory modifications shall be deemed to apply and be incorporated in this contract. Under every and any such reference the cost of and incidental to the reference and award respectively shall be in the discretion of the arbitrators or of the empire, as the case may be, who may determine the amount thereof, or direct the same to be taxed as between solicitor and client of as between party and party and shall direct by whom to whom and in what manner the same to be borne and paid. Work under the contract shall be continued by the contractor during the arbitration proceedings unless the purchaser shall order suspension thereof in writing and if such suspension shall be ordered the reasonable expenses of the contractor on account of such suspension shall be added to the contract price and unless the decision of the arbitrators or the empire, as the case may be is obtained and saved as those which are otherwise expressly provided in the contract on payment or payable by the purchaser shall be withheld on account of such arbitration proceedings unless it is the subject matter thereof.

CONTRACT AGGREMENT The issue of the purchaser order by the purchaser, incorporation of the terms and condition incorporated herein with alterations if any as may be mutually agreed to between the purchaser and the contractor. For such order issued by the purchaser, the contractor shall issue a formal acceptance letter on contractor’s letter-head.

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Like every manufacturing company, BHEL also has its own separate finance department which deals with the different financial matters of the company. The finance department of BHEL is sub-divided into various sections and the work flow is divided among these sections which are consolidated and put together as a whole at the end and the final accounts are prepared and then the decision making process begins and targets are set for

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the next financial year. The various sections into which the finance department is divided are: 1) 2) 3) 4) 5) 6)

supplier’s bill section pay-roll section sales section budget and book section taxation section works bill section

1. SUPPLIER’S BILL SECTION The supplier’s bill section of the finance department further deals with following issues of the company 1) TRANSPORT BILL: the transporter’s bill is first sent to this department and the department makes a record of the bill and SRV is prepared by the department. Then the payment is made according to the items that are agreed upon by the parties. All the payments are made through DD or CHEQUE. 2) PSL (PRICE STORE LEDGER): the price store ledger deals with the inventory related issues and for this purpose they use weighted average cost accounting method as decided by the board of BHEL. 3) SUPPLIER’S PAYMENT: all the supplier’s payments are made by this department. These are the payments to all those suppliers who act as ancillaries to BHEL. When they supply the material, the copy of this supply is sent to the metal department of the company and record is made of the materials supplied by the party. After this one copy of this is sent to the supplier’s bill section of the finance department with mentioning the materials that have been accepted and the number that have been rejected. Then the finance department pays to the supplier for the quantities that have been accepted as per the conditions agreed upon by the supplier and the company and final record is made. 4) CONTRACT LABOUR PAYMENT: BHEL has a lot of contract labourers working in the company and all the dealings related to them are dealt with in this particular section of the company. All the payments that are made to them are paid here in cash in the presence of their particular heads to dispose any discrepancy that may arise during the process.

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2. PAY-ROLL SECTION The work of the pay roll section begins the moment a person is appointed by the company and the letter of appointment is issued to the employee. The employee is given unique number in which the first two numbers indicate the unit to which the employee belongs. All the permanent employees are provided an electronic card and the temporary employees are provided a punch card for the attendance purpose. Every employee while entering the company swaps the card at entry gate and their entry and exit time is recorded the machine at the gate which is then transferred to the IT department of the company. The IT department prepares a record and sends it to the pay roll section of the company. The pay roll section then collects these data and prepares their own record of each and every employee of the company. After preparing their record they send this record to the respective department heads for their approval as they also have a manual record of the employees of their department. This is to dispose any discrepancy in the matter. After the records are signed by the respective heads and sent back to the pay roll section they prepare the attendance sheet of each employee along with other details. While preparing the details of the employees they mention all the matters such as the PF, loans that they have taken, LIC, income tax deducted, daily wage, DA etc and prepare the whole amount after this. A copy of their statement is handed over to each employee with all these details and the final salary which is being given to them after all these accounts have been done. One most important point that BHEL keeps in mind is that every employee who has a salary of above Rs 20000 is paid only through bank and not in cash. All the other employees who have a salary below this are either paid in cash or through bank as they desire.

3. SALES SECTION This section deals with all the sales related issues in the company. It keeps all the records and the data that is necessary while making the records and maintaining the account. It keeps the record of all the debtors and creditors of the company and the central and state sales tax that is levied on each item and the terms and conditions related to them. The debtor’s management is also dealt with this department. They have to prepare an MIR (manual information report) for every month which is sent to the corporate office every month as a report of the company.

4. BOOKS AND BUDGET SECTION This section keeps the records of all the matters of the finance department and all the other records that each section keeps with it. They record all the ledgers and vouchers of monthly, quarterly and yearly accounts. They also maintains records of the inter unit transactions i.e. the transfers that takes place between this unit and BHEL’s other units. 48

They keep the records of the entire audit that is done internally as well as the record of the entire statutory and government audit. This section also deals with the budgeting of the company. As the funds are allocated by the corporate office for each BHEL unit. After receiving this budget they prepare their own budget of each department with the respective heads and then allocate the funds to each department for their purposes. They also prepare the budgeted figures and targets for the company for the next financial year.

5. TAXATION SECTION This section takes care of the tax related issues of the company. All the indirect and direct taxes that they have to deal with is taken care of by this section. They also take care of the excise duties and customs duty in case of export. They also have to deal with the service tax related matters.

6. WORKS BILL SECTION This section has to keep record of all the infrastructure related issues. They have to keep the record of the building, roads, furniture and the township related matters. It keeps the record of the work that is needed to be done for the company as well as for the township and other areas.

CONCLUTION First of all it was great and fulfilling experience working at BHEL Jagdishpur insulator plant. The whole tenure of two months of our summer training helped us a lot to know what it is working with a large organization like BHEL which is one of the top most 49

companies in India. We were able to learn and know the difference between theoretical knowledge and practical experience. We learned that along with the theory we have to apply our skills and expertise to solve the problems and situations that arise from time to time. The work here is divided in sections such as Marketing, Finance, Production, IT, Assembly, R&D, Store, Slip etc. and each department is further divided in subsections with the head of each section presiding over them. The marketing department works through a few set guidelines those are there for the smooth functioning of the work flow. No work in the department is carried out without a written letter signed by the concerned authority and they put forward is that it proves to be a stronger evidence and record than verbal communication. Although, they also accept the point that this makes the work flow quite slow and sometimes creates hurdles in the flow. The finance department has a different procedure of working and their dealing changes, when dealing with different parties. They have different times and condition which are their regular customers whereas they are different for the customers dealing with them for the first or the second times. They also have different payment terms which changes with the type of work such as transporter bill, supplier bill etc. but no payment is made or received in cash from or to any party. The works in other departments also have more or less the same procedure. Most of the machines and equipments that are used are from Japan. The safety measures and proper working conditions are well taken care of in the plant for the employees working in those conditions. All the workers working in the plant are provided with necessary covers such as hand gloves, eye glasses etc wherever necessary. The R and D department keeps a cheque of the quality of material that is produced and the standards that are to be maintained. No material can be dispatched without their approval of the quality of the product. In all BHEL is a well organized company with high standards and earning huge profits due to its highly professional functioning in its affairs. It was a pleasure working at BHEL which gave us a bright opportunity to know the real industrial world and the tactics of the trade to a great extent. Although a great amount of work needs to be done on our part as this was only a small stint of the whole new world which we will face in coming months.

SUGGESTIONS The work flow at BHEL is quite smooth and organized. Each and every department is further sub-divided in small sections and the work is divided among those sections with the head of the department presiding over them. These heads then come together and 50

form the upper core of the organization, where the decision making and target setting takes place. These heads prepare their own budgets and targets which are then combined together to prepare the target of the whole organization. Along these there are some points that need to be taken of:  In BHEL the dress code of all the employees is same no matter whether he is a GM or an AGM. This is good on one point that it gives message of oneness but the top level employees need to be given something that differentiate them from the rest or indicates that they are the top level employees. For this purpose they can ask their top executives to wear a tie which will take care of both the points i.e. the oneness along with some extra respect to those employees.  The wooden boxes that they use for the storage and dispatch purpose of their finished product is a matter of concern. The BHEL board should set a committee or some personnel to find out an alternative to this problem as wood is not a long term solution and can backfire at any time. They seriously need to look for a long term replacement for this purpose as soon as possible.  The wastage that occurs once the insulators are tested defective is really a matter of concern as they are just thrown at a place which can be well used for some other purpose. The board needs to take some decision to solve this problem and come out with a solution soon.  BHEL should at least have proper place for the employees where they can relax during the lunch time as there is no such place in the company where they can sit and rest during this time. The lunch break is of 40 minutes and it hardly takes 1520 minutes to finish the lunch and rest of the time they spent sitting here and there, but if a proper place is provided to them they can sit and relax there which can improve their efficiency to a great extent.  The facilities in their township can be improved a little although the facilities provided are good, but one or two recreation parks and recreation clubs can be set up which will help the young children in the township in their all round development. The school that is in the township is already serving a great purpose in this respect.

BIBLIOGRAPHY  BHEL Manual

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 www.google.com  wickipedia.com  BHEL Diary 2006  www.bhel.com

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