CHAPTER - 2

NALCO AT A GLANCE
 NALCO TODAY

National Aluminium Company Limited (NALCO) is consid­

ered to .be a turning point in the 50-year-old history
of Indian Aluminium Industry. In a major leap forward,
NALCO has not only addressed itself to the' country's
need for self-sufficiency in Aluminium, but also given
the country the technology edge in producing this stra­
tegic metal on the best of the world standards.

NALCO was incorporated in 1981 in the Public Sector

following a major investment decision of Govt, of India
to exploit a part of the large deposits of bauxite
discovered in the East Coast. Aluminimum Pechinay of
France, a world leader in the. field, provided the tech­
nology and basic engineering for Bauxite Mine, Alumina
Refinery and Smelter.

With its consistent track record in capacity utilisation,

technology absorption, quality assurance, export per­
formance, servicing of loans, internal resource gen­
eration and posting of profits, NALCO is an example of
India's industrial capability.

Today, as an ISO 9002-14001 Company, NALCO has emerged

as the largest integrated Bauxite-Alumina Complex in
Asia, enabling India to witness a quantum jump in Alu­
mina and Aluminium production. The Company for the
first time created exportable surplus in Alumina and
helped India to focus on its massive Bauxite resources
in the East Coast, estimated at 1600 million tones for
setting up export oriented Alumina plants.
The complex has five segments . viz. Bauxite Mine, Alumina
Refinery, Aluminium Smelter, Captive Power Plant and Port
Facilities.

Bauxite Mine :

On Panchpatmali hills of Koraput district in Orissa, a fully

mechanised open-cast mine of 2.4 million tpy capacity is in
operation since November, 1985 serving feedback to Alumina
Refinery at Damanjodi located on the foothills. Presently, the
capacity is being expanded to 4.8 million tpy.
The salient features are :
Area of deposit - 16 sq. km.
*r Resource 370 million tonnes in 3 blocks,
Life of deposit over 100 years.
wr Ore quality Alumina 45%, Silica 2%.
The overburden is ripped by a 700 HP Dozer while the ore is
won in benches by drilling , blasting and using 5.7M(cube)
Front end Loaders , Shovels and 32 tonner Dumpers.
Computer is extensively used for mine planning and quality
control .

Alumina Refinery :

The 8,00,000 tpy Alumina Refinery , having two parallel

streams of 4,00,000 tpy capacity each, is located in the
picturesque valley of Damanjodi in Koraput district.
Presently, the capacity is being expanded to 15,75,000 tpy. In
operation since September, 1986, the Refinery [Link] to
*r Provide 4,25,000 tonnes of Alumina to the company's
Smelter at Angul
m- Export 3,75,000 tonnes of Alumina to overseas markets
through Visakhapatnam Port.

Salient features are :

wr Atmospheric pressure digestion process

a
 Energy efficient fluidised bed calciners of 2 x 1400 tpd
Co-generation of 3 x 18.5 MW power by use of back
pressure turbine in steam generation plant.

Aluminium Smelter :

A 2,30,000 tpy capacity, two pot line Aluminium Smelter is

located at Angul in Orissa. Based on energy efficient state-
of-the-art technology of smelting and pollution control, the
Smelter Plant is in operation since early 1987. It has been
proposed to expand its capacity to 3,45,000 tpy.

The salient features are :

m- Advanced 180 K.A technology

m- Micro processor based pot regulation system
m- Fume treatment plant with dry-scrubbing system for
pollution control
m- Integrated facility for manufacturing anode carbon
m- 4 x 35 tonne furnaces and 2 x 15 tph ingot casting
machines
m- 4 x 45 tonne furnaces and 2 x 9.5 tph wire rod mill
m- 2 x 45 tonne furnaces and 60/42 per drop billet casting
machine
w 2 x 1.5 tonne induction furnace with a 4 tph alloy ingot
casting machine

Captive Power Plant :

Close to the Aluminium Smelter at Angul, a Captive Power Plant

of 720 MW capacity, comprising 6 x 120 MW cluster of sets, has
been established to feed the Smelter. By all counts, a captive
facility of this magnitude is first of its kind in the
country. It has been proposed to expand its capacity to 840

MW.

The salient features are :

ZO
w Micro processor based burner management system for
optimum thermal efficiency.
Computer controlled data acquisition system for on-line
monitoring
•*- Automatic turbine run-up system
•*- Specially designed barrel type high pressure turbine
**• Electrostatic precipitators with advanced intelligent
controllers
Wet- disposal of ash

The raw water for the Plant is drawn from the river Brahmani
through a 7 km long double circuit pipeline, discharging 7200
m3/hour of water. The coal demand is met from a mine of 3.5
million tpy capacity opened up for NALCO at Bharatpur in
Talcher by Mahanadi Coalfields Limited.

The Power Plant is inter-connected with the State Grid.

Port/Ixport Facilities :

On the Northern Arm of the Inner Harbour of Visakhapatnam Port

on the Bay of Bengal. NALCO has established mechanised storage
and ship handling facilities for export of 3,75,000 tonnes
Alumina in bulk. The design caters for loading ships of 35,000
DWT capacity through a mobile ship-loader.
Copy

The salient features are :

pr Mechanised silo storage facility of 2 x 25,000 tonnes

capacity
*W Mechanised mobile ship-loader of 2200 tph capacity
m- Capacity to handle maximum chip size 35,000 DWT
Aluminium is exported through Calcutta and Visakhapatnam
Ports. Other parts in the east coast of India are also being
considered.

Project Inputs :

The task of implementing NALCO projects is an- enormous task

due to the’ enormous volume of work involved and due to the
location of the projects in industrially backward . and tribal
regions. Volume of work can be ascertained from the following
facts :

Earth Work 113 lakh cubic meters.

Concrete 7.5 lakh cubic meters.
Structural Settle Work- 1.01.000 tonnes
Tankages 24.000 tonnes
Piping' 400 inks.
Equipments Erection 1.26.000 tonnes
Roads 148 kms.
Railway Tracks 90 kms
Rolling Stock 326 Alumina wagons, 40 caustic
soda
wagons, 37 bottom discharge
coal wagons, ■■ 9 shurting
locomotives.

Project Finance :

Project Finance can be gauged 3 years from the tables.

 Table No.2.1
CAPITAL COST SEGMENTWISE (1986)

Unit Cost % of Total

(in Crores Cost
rupees)
Bauxite Mines 88 ' 3.65
Alumina. 754 31 .33
Refinery
Port Facility 31 1 .30
Aluminium 723 30.00
Smelter
Captive Power 812 33.72
Plant

X3
 T^au Me. Zj.Z
T"uvr^ove-v [Link]
S a .lt s FINANCIAL PERFORMANCE

(23 SolUs Tuvno'ye^ O Net fro^t

PRODUCTION AND SALES

This can be gauged for 3 years from the

following
tables.
 Products :

(A) Aluminium Metal :

Ingots. Each standard ingot weighs 20 kgs. 49 pcs

are strapped together to form a bundle of
approximately 1 ton. Each sow ingot weighs 750 kgs.
Wire Roads. These are hot rolled roads manufactured
from furnace processed aluminium by prepared
continuous casting and rolling process and areas
available in normal dia size 9.5 mm in coil forms.

(B) Alloy Ingots. Each of them 10 kgs. and 57 pcs. are

strapped together to form a bundle.

(C) Aluminium Billets. These are superior quality Direct

billed Cast billets in soft and hard alloys and serve as
the basic input for the manufacture of high qualitv
extrusions. NALCO has the leading edge, with the advance
ceramic foam fitting system for metal and grain
refinement through on in-line fibre rod feeding system.
Quality assurance is in-built also in every stage of the
process and finishing line.
The new technology ensures multiple benefits such as :
Greater flexibility in diameter length
w Excellent uniform fair structure and surface quality
»*• Cut billet length (customised)
w Equibility for hot shear processing
Higher extrusion performance and anodising
uniformity.

(D) Alumina Hydrate, calcined Alumina and special aluminas

form the products. . .
Product Excellence and Exports :

The quality assurance linked with NALCO metal received

international acclaim with its admission into London Metal.
Exchange in May, 1989. The products have gained acceptability
in domestic and overseas market. NALCO has bridged the demand
supply gap in the country by saving the outflow of foreign
exchange and has given the country a new identity and a
formidable presence in the international market. NALCO enjoys
33% share of the domestic producer of alumina, and aluminium
and is one of the tep line exporteasof alumina in the world
market.
Table No .2.4
Figures
(Rs. In Million)

1995-96 1996-97 1997-98

Sales Turnover 17439.8 17688.6 18535.4
Export Earning 5783.4 6378.6 6794.8
Net Profit 5352.6 4917.6 5469.7
Net Worth 25892.9 29705.3 33771.2
Reserves & Surplus 13006.7 16819.1 20885.0
Return on 20.67 16.55 16.20
November(%)
Earning per share 4.15 3.82 4.24
(in Rs.)
Share Capital 12886.2 12886.2 - 12886.2
Debt Equity 39.58 19.53 17.59
Ratio(%)

Global Presence :

NALCO has its technology- associates in USA, France, UK,

Germany and Hong Kong. It exports aluminium to countries like
Belgium, UK, Switzerland, Bangladesh, Italy, Sri Lanka, Saudi
Arabia,. Pakistan, Thailand, Indonesia, Taiwan, Japan, South
and North Korea, China, Dubai,. Malaysia, Myanmar and Nepal and
exports alumina to countries like USA, Brazil, Norway, France,
UK, Egypt, Bahrain, Switzerland, Indonesia, Hong Kong, Japan,
Australia, North Korea, Russia, Japan, China, Dubai, Thailand,
Philippines and Iran.

Technology Advantage :

Automation and computerization extensively built into the

state-of-art technology -adopted by NALCO are necessary to
achieve energy conservation, quality control, safety and
highly efficient input-output ratio., From geo-statistics to
data acquisition system, from microprocessor controlled pens
to robot like pot tending machines and most advanced lab
equipment, all relate the story of cost effective and energy
efficient product excellence of NALCO.

-To meet the challenges of operating in a hi-tech environment,

inevitably the management systems and sub-systems are steadily
being computerised. The objective is to achieve an integrated
information management system for the organisation as a whole,
based on dependable and dynamic modular data base.

NALCO Works and Offices :

m- The registered and Corporate Office is at Nalco Bhawan,

Bhubaneswar.
w The mines and Refinery Complex is at Damanjodi, Dist -
Koraput, Orissa.
m- The Smelter Plant is at Nalco Nagar, Angul, Orissa. The
Captive Power Plant is’ at Angul, Orissa.
m- The regional offices are at Delhi, Calcutta, Mumbai,
Chennai, Bangalore, Vizag and Pondicherry.

Projects Completed :

i) 6th Unit of CPP :

Capacity expansion of the 5 units of CPP by addition of a
 120 MW unit to the existing 5cl120 MW plant at a cost of
RS..220 crores was completed in 1994.

ii) Billet Casting :

NALCO has augmented the Smelter Cast House Capability by

installing a 30.000 tpa Billet Casting facility in a cost
of Rs.33.62 crores in Sept'94.

iii) Alloy Ingot Casting :

The 5000 tpa Alloy Ingot Casting facility has. been

commissioned in Feb'94 at a cost of Rs.1.10 crores.

New Projects :

(A) Strip Caste :

ItAsetting up a 26.00 tpa strip casting facility at a

cost of Rs.48 crores in the Smelter Plant, Angul.

(B) Aluminium - Lithium Alloy :

A 360 tpa Al-Li Alloy Melting-cum-D.C. casting facility

AJt NFTDC/DMRL,Hyderabad at a cost of Rs.11 crores is
under implementation.

(C) Special Grade Alumina :

DFR has been prepared for setting up a 20.000 tpa plant

at Damanjodi at a cost of Rs.45.72 crores.

(D) Zeolite :

DFR has been prepared for setting up a 10.000 tpa

Detergent Grade Zeolite (Zeolite-A) plant at Damanjodi at
cost of Rs.24.10 crores.
(E) Gallium :

DPR has been prepared for setting up a 1000 kg/annum 5N

purity Gallium plant at Damanjodi at a-cost of Rs.8.05
crores based on indigenous technology.

Research & Development Activities :

The Company's in-house R&D facilities are recognised by DSIR,

Ministry of Science and Technology, Govt., of India. Following
are some of the important R&D achievements:

a) Mines & Alumina Refinery Complex :

i) Use of synthetic flocculent to control caustic soda less
and better compaction of mud.
ii) Oxalate removal parameters have been established.
iii) Crystal Growth Modifier (CQ4) addition for better central
on nucleation and higher productivity.

b) Smelter & Power Complex :

i) Measurement of pot's thermal, balance in collaboration
with JNARDDC, Nagpur.
ii) After successful trial production of alloys like LD-6,
LM-24, ADC-12, AL-SI-132, regular production has been
taken up.

c) Patents Field :
i) Process for the preparation of aluminium hydrate of
superior purity and fineness.
ii) Preparation of low soda, high alpha and pure alumina by
bleaching gamma alumina followed by calcination with
additives.

d) Waste Utilization :
i) Beta Alumina has been successfully extracted, from Fly Ash
in the Lab-Scale.

30
ii) Red Mud Cement (Ferrite Cement) has been successfully
developed in the Lab-Scale in collaboration with RRL,
Bhubaneswar.
iii) Wear resistant ceramic products from Fly Ash have been
successfully developed in the Lab-Scale in collaboration
with NML, Jamshedpur.

Quality Policy :

Quality forms the core of NALCO's business philosophy. Meeting

the needs and expectations of the customer and consistently
improving their systems and work ethos is their chosen path in
achieving excellence.

Objectives :

»•* To ensure a healthy return on investment by maximising

operational efficiency, capacity • utilization and
productivity.
To continually improve and redesign systems, processes and
practices.
w To adopt internal customer focus as a means to external
customer satisfaction.
To treat human resources as the key to quality,
excellence and ensure development.
To ensure high quality of inputs through proactive
interaction with suppliers.
w To -meet obligations towards the society as a responsible
corporate citizen.
To provide value for money to stock holders.
**- To follow ethical business philosophy at all times.

NALCO has ISO:900.2 accreditions achieved for the - captive

power plant, Bauxite Mines, Smelter and Aluminium' Refinery.
Thus it has now earned the unique distinction of having the
quality management systems of all the production units
certified.
Commitment :

NALCO has dedicated itself to the Quality Policy and

objectives of the Company in utter and sprit and commits to
continuously strive for their fulfillment.

Landmark Events :

1. Discovery of East Coast bauxite - 1975

2. Preparation of NALCO Feasibility Report - July, 1979
3. Investment decision by the Government - Jan, 1980
4. Indo-French Collaboration Agreement - Jan, 1981
5. Formation of the Company - Jan, 1981
6. Foundation Stone laid by Late Smt. Indira Gandhi - March,
1 981
7. Signing of major Euro-Dollar. Loan Agreement - Feb., 1982
8. Civil Works Starts - Feb., 1982
9. Commissioning dates
Port Facilities - Sept., 1985
Bauxite Mines - Nov., 1985
Alumina Refinery - Sept., 1986
Captive Power Plant - Sept., 1986
Smelter Plant - Mar., 1987.
10. Commencement of sale of Metal - May, 1987
11. Commencement of Alumina export - Jan., 1988
12. Commencement of Metal export - Sept., 1988
13. First Mines Safety award - 1988
14. First Mines Safety award - 1988
15. London Metal Exchange Recognition - May, 1989
16. Dedicated to the Nation by Late Shri Rajiv Gandhi - June,
1989
17. Star Trading House Status - Jan., 1992 ..
18. Indira Gandhi Rajbhasa Award - 1993, 1995
19. ISO 9002 Certification
a) Alumina Refinery - Nov., 1994
b) Smelter Plant - Feb., 1994
 c) Bauxite Mines - Jan., 1996
d) Captive Power Plant - Feb., 1996
20. BS 7750 & ISO/DIS-14001 Certification of Environment
Management System of Bauxite Mines - 1996.
21. Indira P'riyadarshini Vrikshamitra Award - 1996

Environment Scene :

In recognition of the interests- of the society in securing

sustainable industrial growth, compatibility with a wholesome
environment, NALCO affirms that it assigns high importance to
promotion and maintenance of a pollution-free environment in
all its activities.

Keeping the above in view, Nalco has -set the following

objectives:
1 . To use non-pollution and environment-friendly technology
in all industrial activities.
2. Tomonitor air, water, land, noise and other environment
conditions and pollutant fall-outs regularly.
3. To constantly improve upon the standards of pollution
control and provide a leadership in environment
management.
4. To develop among the employees an awareness of
environmental responsibilities and their adhereness to
sound environmental practices.
5. To work closely with government and local authorities to
help prevent and minimise adverse consequences of the
industrial activities on the environment.
6. To comply with all applicable laws governing
environmental protection.

The environment management systems of NALCO at its Mines and

Alumina Refinery have received the ISO 14001 certification.

33
Community Care :

The company has adopted a policy of playing a catalytic role

in general improvement of quality of life of the people living
in the peripheral village. In this regard, various steps have
been taken in collaboration with local government authorities.

Some of these activities are :

w Development, construction and repair of roads, culverts,
bathing ghats, school buildings etc. in the peripheral

villages.
w Support for technical training of youths from affected

families (as one time measure)

m- Development of a rehabilitation colony at Damanjodi with
498 pucca house, tube wells, roads, electricity,
permanent water supply and drainage systems.
„ Free medical facility by the NALCO hospitals to the
displaced families and extension of medical services
through health camps in nearby villages.
Adult Education Centers for local tribal population of
Damanjodi and active participation in the national

literacy mission at the district level.

^ Encouragement and financial support to local sports,

cultural and community welfare events.

Human Resources :
For optimum utilisation of plants, equipments and facilities,

the prime asset of NALCO is its human resource.

The basic philosophy of the company in the field of human

resource management is to attract competent persons with
growth potential and develop their skills and capabilities in
a congenial work and social environment through adequate

opportunities for advancement.

The multi-locational organisation can be followed to some

extent from the following structure.

 EXISTING ORGANISATION STRUCTURE AT THE TOPMOST LEVEL

WO SO
DGM DGM DGM CM DGM (A&CC) CM DGM
C6ia)
(Exports) (Domestic) (Port - (Mktg./ (I.E) (CP)
facilities) Fin.)

M&R Mines & Rifinery

F&IA Finance & Infernal Audit
❖*
❖ CPP Captive Power Plant
<♦ S&P Smelter & Power Plant
SH&E Safety, Health & Environment
CP Corporate Planning
❖❖
❖ P&T Projects & Technical
 C H A R T No.

HRD SETUP

D
v£>
The composition of manpower is represented below

chart . 5

Personnel Functions :

Manpower Planning :
This was introduced in NALCO in 1983 when the Company was in
the project stage. The planning and forecasting of manpower
requirements is based on the following :

i) Finding of job evaluation studies.

ii) Creation of new facilities and addition equipments.
iii) Change in design or upgradation of existing system.
iv) Change in structural requirement of business
v) Expansion and diversification programmes.
vi) Employees' turnover or account of resignation and

retirement.
vii) Identification of jobs for off leading on contracts.
viii) Lead time required for training employees in different

categories.
Manpower Position :

The manpower in NALCO can be broadly divided into Executives

and Non-Executives.

Non-Executives
Scale Code :
W1 Mazdoor
W2 Semi-Skilled worker
W3 Operator Gr. Ill, Driver Gr. .Ill, Draftsman [Link]
W4 Operator Gr. Ill, Technician [Link]
W5 Operator Gr. I, Technician Gr. I, Driver Gr. I,
Draftsman Gr. I.
W6 Sr. Operator, Sr. Technician, Sr. Draftsman
52 Supervisor
53 Sr. Supervisor

Executives
Scale Code :

EO Asst. Eng/Asst. Officer

El Jr. Manager/Medical Officer
E2 Asst. Manager/Sr. Medical Officer
E3 Dy. Manager/Asst. Medical Suptd. '
E4 Managers/Dy. Medical Suptd.
E5 Sr. Manager/Medical Suptd.
E6 Chief Manager/Chief Medical Suptd.
E7 Dy. General Manager
E8 General Manager
E9 Executive Director

Recruitment :

Recruitment begins by specifying the human, resource

requirements, initiating activities and actions to identify
the possible sources from where they can be met communicating
the information about the jobs, terms and conditions and
prospects they offer and enthuse people who meet the
requirements to respond .to the invitation by applying for
job(s).

Objectives of Recruitment :

1 . To provide for a system for manning executives posts in

the company with persons having appropriate levels of
academic/professional qualifications and skills whether
from outside sources or by promotion from within.
2. To provide executives with reasonable opportunities for
advancement consistent with their performance.
3. To provide for a system of equity, fairness and
objectivity in matters concerning recruitment.
4. To ensure compliance with Govt, policies and directives
on recruitment as a PSU.

Recruitment of Executives :

The major features are :

1 . Advertisement in press on all-India basis for recruitment.
2. Circulation among Govt, departments and other PSUS.
3. Trainees for posts at EO level in terms' of approved schemes.
4. Deputation from Govt, departments and PSUS.
5. Personal contacts for recruitment to posts requiring
specialized knowledge or/and exceptional merits.
6. Filling of vacancies through transfer and promotions from
within.
Recruitment of Non-Executives :
Rules are
1 . Weight age to years of experience and additional
qualifications.
2. Selection Committee created on case to case basis.
3. Employment Exchange and /or press advertisements used.
4. Fixed Induction points.
5. Rationalization of designation with job.
6. A scheme for recruitment of outstanding sports persons
introduction in 1986.

Selection :

The purpose of selection is to pick up the most suitable

persons who would match the requirements of the job and the
organisation best.

Constitution of Selection Committee :

In NALCO it is constituted of 3 officers of appropriate status
and functions in relation to the post in question, including a
representative of the Personnel Dept. In case of specialized
posts, specialists from outside the company may be nominated
by the committee.
Selection Process :
1. The Selection Committee may hold interviews and/or tests as
/

may be considered necessary.

2. Personnel Dept. will make available to the Selection
Committee necessary and relevant documents and information
regarding the candidates at the time of the interview.
3. The Personnel Deptt. will also inform, the Selection
Committee regarding the posts to be reserved for SC/ST. etc.
4'. The Personnel Deptt. Will ensure consistency of Selection
standards and starting salaries.

Thus, the selection process in NALCO covers the period from

the job specification and initial contact with the applicant
to his final acceptance or rejection.

Placement :
Placement refers to assigning rank and responsibility to an
individual, identifying him with a particular job. If a person
adjusts himself to the job and continuous to perform as per
expectations, he is properly placed. This continuous to be the
goal of NALCO. Here they constantly review cases of employees
performing below expectations and employee related problems
such as turnover, absenteeism, accidents and assess- ■ how far
they are related to inappropriate placement decision and
remedy situations without delay.

INDUCTIONS :
NALCO' s purpose is to make the employees feel at home and
develop a sense of pride in their organisation and commitment
to their job. The induction process is also envisaged to
indoctrinate, orient, acclimatize and acculturate the person
to' the job and the organisation.

In NALCO the basig of induction training during the first one

or few weeks after a person joins service is to introduce him
to the people with whom he works; make him aware of the
general company policies that apply to him as also the
specific work situations and requirements. Answer any
questions and clarify any doubts that the person may have
about the job and the company, and provide on-the-job
instructions, check-back periodically how the person is doing
and offer help if required. Both general and specific
orientation programmes are arranged.

Promotion :
NALCO offers excellent growth opportunities to its employees
consistent with their seniority, qualification performance and
growth potential subject to availability of vacancies. There
is fast trade promotion where it can be effected by reducing
the qualifying period by the competent authority, mainly to
motivate and reward high performance. There is a promotion
policy for both technical and non-technical worker and
separate policies for executives and non-executives.

Seniority :
It is determined by the comparative merit position in the
panel both in case of initial appointment and promotion.
Seniority is maintained as per the cadre scheme of -the
unit/office of the employee with reference. to the dots of his
joining the post on recruitment/promotion.

a) With reference to the interse-seniority in the grade from

which the employees are promoted in cases of promotion.
b) On the basis of panel seniority in case of recruitment.

In case of trainees joining in a batch, interse-seniority of

the trainees is determined by their merit position in the
merit list drawn for their final placement. If the cadre is
changed on their request tothe same grade, seniority in the new
cadre will be counted from the date of joining, otherwise it
will not be adversely affected.

Transfer :
Transfer may be made for reasons such as :
m- • Correcting misplacement
w Filling vacancies internally
m- Meeting skill shortages/job redundancies
w De-equaling with problem employees
»•- Facilitating superior-peer adjustment
m- Providing a chance for wider experience
w Job rotation as part of career development ■
m- Accommodating Personal needs
■m- Reward or Punishment.

In case of transfer in NALCO, its employees are entitled to TA

and transportation of household goods, settling allowance and
joining time as per prescribed rules. They are allowed to
retain accommodation for a period of 2 months fj&amthe date of
release with due permission.

Performance Appraisal :
The objectives of performance appraisal are Evaluation
(judgemental) and Development (helping). NALCO's performance
Appraisal of executives has the following components:
(1) Pre-appraisal Target Setting :
The reporting officer is required to set targets and
tasks against a time schedule and as far as possible in
quantitative terms in consultation with the executive
whose performance is to be evaluated. This exercise is
undertaken at the beginning of the year.
(2) Self-Appraisal :
The employees are required to furnish data on his
achievement of targets/objectives,■ perceived short falls
with reasons and their own training and development
needs.
(3) Review Discussion :
The reporting officer holds a session of discussion every
quarter with the appraises, to discuss the performance
against targets, shortfalls and short comings.
(4) Weightage Factors :
In 'evaluating technical, conceptual and human relations
shills of an executive, different weightage factors are
assigned depending on the level of the executive.

(5) Time Bound :

The period of appraisal coincides with the financial
year. The reporting officer must complete appraisal
writing by 20th April each year, then through time bound
stages the completed report must reach corporate
Personnel Department on or before 15th May.
(6} Wider Participation in Appraisal Exercise :
Apart from reporting reviewing and
officer each
* 2£
executive's appraisal report isAsuch commented upon and
countersigned by Head of the [Link] Department.
(7) Training and Development :
The last page of the report containing recommendations on
functional and developmental training from the report and
sent to the corporate HRD Department for suitable action.
The non-executive employees, including supervisory personnel,
are assessed by the concerned executive . of the
department/section through a stipulated -annual assessment
proforma. A five-point scale is used to rate the employee with
reference to factors like job knowledge dependability,
initiative, safety consciousness, attendance and punctuality,

amenability to discipline, quality of work concern for

company's property etc. Supervisory personnel are further
assessed with reference to their knowledge of rules,
regulations ability to communicate, record management and
quality of supervision. Comments on integrity, suitability for
promotion and recommendations for training and developments
also form an integral part of non-executive assessment report
of •: non-executive employees working with him, in turn
becomes^ lEhe reviewing officer for the non-executive

employees.

Career Development :

NALCO emphasizes on Career Development programmes consisting

of the following activities.

1 . Career Need Assessment :

It provides assistance to employees in assessing their own
internal career needs. It provides for a member of
evaluation instruments to test aptitude, abilities, attitude
etc. of the people.

2. Career Opportunities :
It develops and publicizes the available career
opportunities to the employees. Job description, job
specification and job analysis are helpful in this regard.

3. Need-Opportunity Alignment :
It then aligns employees* needs and abilities with available

career opportunities.

Following are a few of the developmental programme used by

* NALCO.
 Individualised Development Techniques like special
Assignment, Under-Study Programmes, Planned Job-Rotation
and Job-Enrichment.
m- Performance Appraisal provides an insight into their
potentials.
m- Management by objectives emphasizing on goal setting,
action planning and self monitoring of employees,
w Career counseling is provided by both superiors and by
professionals specialized in career guidance.

Training & Development :

High premium is placed on training and development activities
in the organisation to :
m- Achieve systematic integration of training with the
organisation's mission
Upgrade the skills, abilities and capabilities of the
employees
w Stimulate constructive interaction among all levels of
employees
w Establish a distinctive work culture in the organisation
w Meet the organisation's needs for succession, promotion,
better performance and growth.

Wage and Salary Administration :

Pay Scale :
For Non-Executives :
They are reviewed and revised once every 4 years after
negotiations with the Trade Unions and with reference to the.
Govt.'s guidelines on the subject.
For Executives :
They are reviewed for revision once every 5 years. The Company
is operating two types of pay scales - the CDA pattern which
follows the pay scales and DA rates of Central Govt. Officers
in accordance with the pay commission recommendations. The CDA
scales are in force with effect from 01.01.1986. The IDA scale
is offered to all executives joining on or before 31st May'85
under the guidelines. issued by the Department of Public
Enterprises, Govt, of India. The existing IDA ■ scales are in
operation since 01.01.92.

Compensatory Off :
When a non-executive employee is required to work on a weekly
off day/holiday, he is given a compensatory off in lieu of
work on such holiday within a period of one month.

Holiday Wages :
A compensatory off and one day's extra is given to employees
called to work on a paid holiday which coincides with his
weekly off.

A compensatory off or one day's extra wages is paid to

employees called to work on a paid holiday which does not
coincide with his weekly off.

Travelling Allowance :
Employees are eligible for this if their journey is undertaken
for the following purposes :
a) Tour on duty
b) Transfer at the instance of the Company
c) For medical examination or treatment referred to by the
Company
d) To appear in the Departmental Examination/Interview or
Selection test.
e) To participate in sports events representing the Company
f) To attend Training, Seminar or Conference sponsored -by
the Company
g) To receive National Awards/State Awards.
h) To appear in the court on Company's work.
i) On superannuation or voluntary retirement.
j) On joining the first appointment in the Company in case
of executives coming from Govt./Public Sector
Undertakings.

46
The company also pays towards the journey expenses of the
family in the event of death of an employee.

Class of Entitlement :
Table NoJL.5
Range Entitled
1. E5 & above Air, AC 1st class by rail,
highest class by steamer Rs.2.90
per km. By car
2. E4 only Air, AC ■ 1st class by rail,
highest class by steamer Rs.2.90
per km. By car
3. E3 & E2 Air, 1st class/AC Sleeper by
rail,) highest class by steamer,
Rs.2.90 per km. By car.
4. E1 & EO (MTs & GETs) 1st class/AC sleeper by rail,
highest class by steamer, Rs.1.10
per km. By two-wheeler.
5. Others with basic pay 1st class/AC sleeper by rail,
of Rs.2805 & above & higher class by steamer, Rs.1.10
SOTs per km. By two wheeler.

6. W4 & below with basic Iind. Class by rail, lower class

pay less than Rs.2805 & by steamer, Rs.0.85 per km. By
JOTs & Trainee Asst. two wheeler.

For air journey, flight incidentals @Rs.10/- per journey is

also paid.

Local journey at the place of Tour :

1 . Actual fare by Autorickshaw, Rickshaw, Tanga etc. in case
of non-executive employees and by taxi in case of
executives.
2. When journey is performed by rail, the employee will be
entitled to actual train fare.
3. If any employee uses his own conveyance . for officials
journey, he will be reimbursed charges for using his own
vehicle at the prescribed rates.
Journey for Medical Treatment :
When an employee or any member of his family eligible for
medical treatment under the Company's rules is referred by the
Controlling Medical Officer to an outstation hospital. TA will
be admissible as below :

a) For Employee : Journey fare of entitled class

including reservation charges and conveyance charges to
and from railway station, plus daily allowance for the
journey period only.

b) For Family Members : Journey fare of entitled class of

the employee including reservation charges and conveyance
charges to and from railway station.

c) For Attendant/Escort : When an attendant/escort is

recommended by the controlling Medical Officer to travel
with the patient, journey fare of entitled class of the
employee including reservation charges and conveyance
charges will be admissible.

Daily Allowance :
In addition to Travelling Allowance, employees are entitled to
Daily Allowance for absence from headquarters on official
duty:
Table No. -A.6

Periods of absence (hours) ■ Amount of daily

allowance

1 More than 2 hrs. & less than 6 hrs. i~DA

2 6 hrs. or more but less than 12 hrs. i DA
3 12 hrs. & above Full DA

Hotel & DA Entitlement is also paid differently to different

grades.
 Table No. -Z.7

Type of vehicle Amount of 1Bl Amount of 2““ Repayment of

and entitlement advance advance advance (Max

Period)
Motor Car Rs.2,00,000/- Rs.1,50,000/- 144 monthly
Advance (E 2 & or the actual or the actual instalments
above) price whichever price whichever
is less is less

Scooter/Motor Rs.30,000/- or Rs.16,000/- or 80 monthly

Cycle with the actual the actual instalments.
engine capacity price whichever price whichever
of 100 cc or is less is less
more (W3 &
above including
executives)

Power driven Rs.15,000/- or Rs.10,000/- or 50 monthly

two wheeler the actual the actual instalments,
with engine pricewhichever pricewhichever
capacity below is less is less
100 cc
(employee with
Rs.1195 basic
pay & above)

Bicycle (All Rs.1 2 5 0/- or Rs.1250/- or 23 monthly

non executive actual price the actual instalments,
employees) whichever is price whichever
less is less

Employees may be eligible for second advance only after a

period of 5 years the date of drawal of the 1st advance for
car/two-wheeler and 3 years in case of bicycle.
They may make an application in the prescribed proforma to the
appropriate authority for grant of advance. Advance is made
available subject to the budget allocation in this regard in a
financial ear. It is necessary to purchase the vehicle within
one month from the date of drawal of advance failing which the
advance must be refunded tot he company together with
interest. Vehicle purchase with the advance amount has to be
duly hypothecated tot he company within thirty days from the
purchase. The vehicle hypothecated tot he Company must be
comprehensively insured on yearly basis by the employees at
his cost till the advance is repaid with interest. The amount
of advance for purchase of conveyance . carries a simple
interest of 5% in respect of two-wheeler/bicycle and 7.5% for
car at present rates. The interest is calculated on the
balance outstanding on the last day of each month.

House Building Advance :

To help employees to build or acquire a house of your own, the
Company gives them financial support in the form of loans,
employees of the Company who have completed 3 years of
continuous service are eligible for House Building Advance for

the following purposes.

a) Purchase of land and construction of a house thereon.
b) Construction of a house on a land already owned by the

employee.
c) Purchase of a ready built house or ownership flat.
d) Enlarging living accommodation in an existing house owned

by the employees.
For the purpose of (a) , (b) , or (c) the amount' of advance is
limited to TOO months pay of an employee as on date of
application or the total estimated cost of the house including
price of the land (if purchase of land is involved) or

Rs.5,00,000/- whichever is less.

In case of (d) the advance amount will not exceed 50 months
pay of an employee as on the date of application or the total
estimated cost of enlargement of Rs.2,50,000/- whichever is

less.

6-0
Repayment :
Principal amount should, he repaid within a period not
exceeding 20 years and the number of monthly instalments
should not exceed 240. Interest should be repaid after payment
of the principal and in suitable instalments in such a way
that the principal interest is repaid fully before the date of
retirement.

The Company charges at present a simple interest at the rate

of 6% for advance upto Rs.2.5 lakhs and 9% for higher amounts.

WELFARE ADMINISTRATION

There is a feeling of satisfaction and contentment among the

NALCO employees. Every attempt is made by the Company to' cater
to the employees' needs. The welfare facilities include both
statutory and non-statutory provisions in keeping with 3 aims
compensation, restrotive and prevention. The statutory
measures are guided by :

> Minimum Wages Act, 1948

y Payment of Bonus Act, 1965.
> Employment Exchange and Compulsory Notification of
Vacancies Act, 1959.
> Payment of Gratuity Act, 1972
> Workmen's Compensation Act, 1936
> Mines Act, 1952 and Rules 1955
> Employee Provident Fund Schemes, 1952
Employee Family Pension Scheme, 1952
> Equal Remuneration Act, 1976
Maternity Benefit Act, 1961.
> E.S.I. Act, 1948.

The Non-Statutory Provisions are :

> All the Welfare Facilities
> Family benefit awards

SI
 > Long service awards
> Farewell gifts
> Retiring gratuity
> Employment Procedure
> Transport subsidy.

The Retirement Benefits include :

> Provident Fund

> Retiring Gratuity
> Unpaid Wages
> Annual bonus
> Family pension benefits

The above benefits are discussed’below.

Provident Fund :
Provident Fund provides employees with a lumpsum financial
support when they retire, apart from various ' loans and
withdrawal during the period of employees service. All regular,
employees of the Company including persons employed by or
through a contractor or in connection with the work of the
establishment but excluding a retired/superannuated persons
apprentice, trainee, causal labour are required to become
meirber of the Fund for the date of joining the Company.

Their compulsory contribution shall be 10% of their

emoluments, i.e. plus D.A. Here, pay includes special pay,
.personal, pay, deputation and non-practicing pay.- They may
contribute more if they so choose. When their .voluntary
contribution and compulsory contribution taken together does
not exceed 20% of the emoluments, employees are entitled to
income Tax relief subject to existing provisions. However,
Company's contribution to their fund in any case shall be
limited to 10% of their emoluments. The company does not
contribute during the period when they are, in a position to
contribute, such as when they^on leave without pay.'
On their contribution both voluntary and. compulsory and on
Company's contributions you are . entitled to 12% of interest
per annum at present. Employees can withdraw from the fund and
also transfer their fund in case they are transferred.

Group Gratuity Scheme :

Gratuity, as the name suggests, is paid to employees by the
Company for their efficient, faithful and long service. NALCO
has linked the payment of gratuity with a group life assurance
scheme to provide social security and better benefits.

All employees in the permanent roll of the Company are covered

under the scheme. For this purpose they are required to fill
in a nomination form at the time of joining the service.
Gratuity benefits are paid or retirement, resignation or
termination of service as per the Company's rules.

Group Insurance Scheme :

All schemes provided life assurance benefits to* the employees
of the Company. The insurance premium in respect of the
employees are paid by the Company.

All the employees who on the entry date aged not less than 18
years and not more than 60 years are eligible to become the
members of this scheme. The sum assured in respect of the
members rs as under :
1 . Executive E5 and above Rs.70f 000/-
2. Executive E1 to E4 Rs.56,000/-
3. Non-Executive W6/S1 to S3 Rs .46,000/-
4. Non-Executive W1 to "W5 Rs.37,000/-

Benevolent Fund Scheme :

This is a voluntary scheme for all employees on permanent
rolls of the Company including trainees who may enroll
themselves as members. Membership is irrevocable as long as
the employee continues in the services of the Company. The
fund provides financial assistance to the families of the

53
members who die while an employment in the Company, a sum
calculated @ Rs.20/- each per death and a matching
contribution of the Company. The benevolent grant will be
disbursed to a family member in order of preference indicated
below :
a) Spouse of deceased member; or
b) Dependent children of the deceased member ; or
c) Parents of the deceased member ; or
d) Minor brother & sister of deceased member in equal
share.

Incentive Administration :
Incentives constitute a very -important motivational factor to
guide a worker towards increasing his ■ efficiency NALCO
believes in this philosophy and provides excellent incentive
schemes for its workers. NALCO has a productivity based
incentive scheme to encourage employees to achieve higher

standards of productivity.

The scheme covers all the regular employees upto Board level
including trainees. All the eligible employees of the plant
units have been classified into three groups depending upon
their direct or indirect contribution to productions and

productivity of the Company.

a) Director production & Maintenance group
b) Technical Services group
c) • Common services group.
The group A is eligible for 10% achievement of productivity
i

points of the respective units, while the group B & C are

eligible for 85% & 70% of the common A group respectively.

While the employees of the plant units are paid incentive in

relation to their respective performance, the employees at
Corporate and Regional Offices are eligible for incentive on
the basis of average of A,B & C groups of the units taken

together.
Incentive for making valuable suggestions for NALCO :
There scheme intends encourage involvement and creative
thinking amongst employees and recognize and reward them
for their ideas which result in improving productivity,
quality of products or services and reduction in costs.

Zonal committees at unit level will reward such creative

ideas which are accepted as implementable with . token
gifts of Rs.100/-. After implementation of the
suggestion, the zonal committee can recommend a cash
award subject to minimum of Rs.500/- per individual or
Rs.200/- per group and a maximum of Rs.200/- per
individual and Rs.10,000/- per group. If the zonal
committee feels that the reward amount should be more,
then the suggestion may be sent to the central award
committee at Corporate Office. The Central committee can
recommend an award upto Rs.10,000/- per individual and
Rs.25,000/- in case of group. A motivator is also
eligible for 20% of the reward amount in case of
individual suggestion and 5% in case of group suggestion.
Innovative suggestion brought by a Quality Circle can
also be awarded under the scheme.

Problem Solving Reward Scheme :

This scheme seeks to recognize and reward employees for
their contribution towards identified problems. A
solution accepted by concerned department 'head is to be
reviewed by a committee headed by the
Director(P&A)/Functional Director, along with the
concerned unit head, at Corporate Office. The committee
can recommend cash award upto Rs.1 0,000/- in case of
individual and Rs.25,000/- in case of group subject to
maximum Rs.5,000/- per person in the group. .While cash
awards are to be distributed by the unit head once in a
month, the certificate' of merit signed by CMD will be
awarded to the concerned employee on Foundation Day of
the Company.
3. House-Keeping Reward Scheme :
House-Keeping committee with unit head as Chairman will
make periodic visits to different areas of the plants and
the offices to assess the standards of cleanliness and
orderliness of such areas. The committee meets at the end
of each calendar year and decides annual cash wards
comprising Rs.5,000/- (1st prize), Rs.3,000/- (2nd prize)
and Rs.2,000/-(3rd prize).

4. Merit Award :
Incentive for outstanding performance of an individual
employee as group of employees, display of high lever of
skill, devotion to duty as undertaking responsibilities
not falling within one's purview.

a) Non-Monetarv Award :
i) Appreciation letter by GMs/CMD,
ii) Certificates of merit.
b) Monetary Award :
• i) A cash gift of Rs. 1,000 (in case of non­
executives)
ii) A cash gift of Rs.2,500/- along witn a
certificate (in case of executives).

5. Foundation Day Award :

Every year one executive and one non-executive are
awarded the best employee of the year award which consist
of a cash price of Rs.5,000/- given on Foundation Day of
NALCO. This scheme takes into consideration outstanding
achievement on work, contributions towards community and

professional activities.

6. Sarjana Awards :
These are awarded to employees to encourage their

participation in fastening production, productivity and

 savings of cost. Recently, 53 employeesvfere awarded under
this scheme.

Holidays :
The national holidays also serve to be holidays for the NALCO
employees.

Restricted/Optional Holidays :
Employees working in the Corporate and Regional Offices of the
Company observe 13 closed holidays. Other employees are
entitled-to 7 closed holidays in a calendar year. Holiday list
is declared at the start of the year.

Leave Facilities :
Leave in NALCO is not claimed as a matter of right-. Leave
applications should be made in the standardized proforma
available in respective department. The application for leave
is given sufficiently in advance. It has to be sanctioned by
the superiors in question. If employees are ■ suddenly absenting
on medical grounds, they are required to enclose medical
certificates, both for unfitness to work initially and fitness
to work when they report back on duty.

These leaves may be granted in combination or continuous of

each other, except that causal leave cannot be combined with
other kinds of leave. No leave is granted beyond the date on
which employees retire on superannuation. Holidays intervening
the earned leave and casual leave are not included in the
leave period.

(1 ) Earned Leave :
The earned leave is admissible at the rate of one day for
every 14 days of work for the non executive employees.
This amounts to 26 days in a calendar year. In case of
executive employees, leave is earned at the rate of 2.5
days for every calendar month of work, which amounts to
30 days in a calendar year. Earned Leave can be

S7-
accumulated maximum upto 240 days in case of executives
and'-120 days in case of non-executive employees.

Casual Leave :
It is admissible upto 10 days in a calendar year.
Normallv this leave is not sanctioned for more than 3
days at a stretch. Employees joining NALCO between 1st
January to 30ch June are entitled to 10 days of casual
leave, whereas employees joining after 1 July are
entitled to 5 days casual leave during that calendar

year.

Half-Pay Leave :
Executives are entitled to half-pay leave. Approximai-ely
20 days for each completed year of service. This leave
can be commuted to full pay leave on medical ground. The
total duration of leave even if taken in conjuctxon with
other leave shall not exceed 240 days at a time.

Sick Leave :
Non-executive employees are entitled to 12 days of sick
leave in a calendar year. This leave is ground on medical

ground.

Special Disability Leave :

This leave can be granted upto 120 days on full pay and

the remaining period with half pay.

Extra-Ordinary Leave :
This leave can be sanctioned without pay in appropriate
cases at the discretion of the Management when no other
leave is due to an employee.

Maternity Leave :
It is regulated as per the Maternity .Benefit Act, 1961.
This is limited to a maximum period of 12 weeks, out of
 which not more than 6 weeks shall precede the expected
date of delivery.

(8) Quarantine Leave :

It is granted when medical authorities of the company
certify the presence of an infectious disease in your
family or household approx limited to 21 days. This leave
is not debited to the leave account admissible when an
employee suffers himself.

(9) Special Causal Leave :

Special Causal leave can be granted maximum upto 30 days
in a calendar years in the circumstances unrelated to the
personal reason of the employees such as Civil
disturbances, curfew, participating in sports events of
National or International importance, inter unit or inter
department tournaments, joining territorial army etc.
Special casual leave can also be granted for undergoing
family planning operation.

(10) Transit Leave :

This is otherwise known as joining time available to an
employer on' transfer depending upon the distance between
old and new place of posting. 100 km. Or less 10 days or
12 days if one travels by road for more than 200 km. More
than 10000 km. 12 days or 15 days if one travels by road
for more than 200 km. More than 2000 km. 15 days or 12
days if one travels by Air, unavailed joining
time/transit leave is credited to the earned leave
account.

Leave Provision of Trainees :

Trainees, including Graduate Engineer Trainees are entitled to
20 days of paid leave in a year. The unutilised part of this
leave can be carried forward as earned leave on
confirmation/regulation.
Leave Encashment :
The Company offers the facility of encashing every year the
leave employees the course of their service.

Encashment of leave will not be admissible to executives on

dismissal or removal from service. On
retirement/superannuation, an employee may encash EL due in
his credit. An executive on superannuation/retirement may also
encash HPL upto 480 days. Encashment of leave is not allowed
to the executives in case of resignation. In such cases, leave
salary for EL upto 30 days is payable. Encashment of leave xn
case of non-executive on resignation is regulated as per
statutory provisions. In the event of death o±. an employee,
leave encashment is done and paid to legal heir(s) of the

employee.

Leave Travel Concession (LTC)

NALCO pays LTC for travelling to any place within a radius of
750 kms, ©n furnishing the proof of journey, mode and class of
travel once in a period of 4 years. This is limited upto 1700

kms. gach rtay on certification.

All regular employees who have completed one year of service

are eligible. The LTC not availed in a particular block of
years can be availed before the end of succeeding calendar
year. In case the employee's family is living away in his home
town, more or less permanently, the employee may avail LTC for
himself alone every year, instead of once in a block of two or
four years. The rest of the rules are similar to other
organisation. Home town shall be the declared permanent home
address as entered in the official record of the Company. The
change of home town is possible .only once in the entire

service period.

Where a journey or a part of journey is performed,by bus’ or by

own car, reimbursement will be limited to railway fare 'by
entitled class by the shortest route or the actual expenditure
whichever is less. Where, journey between places' not connected
by rail is performed by road, reimbursement will be at the
rate of one road kilo-metrage (as per TA rules) for one member
and half kilo-metrage for each additional member subject to
maximum limit of two kilo-metrage for the group. In case of
using public transport bus the actual expenses shall be
reimbursable. Reservation charges including surcharge if any
levied by railways or road transport agencies or shipping
companies are reimbursable. Ticket cancellation charges can be
claimed from the Company provided such cancellation are solely
due to official reasons and is in the interest of the

company's work.

R.L.T.E.
Considering the demand of the unions and also the existing
policy of the Government for introducing more and more fuel
efficient vehicles, it was agreed that employees required to
own and 'maintain Mopeds may be sanctioned R.L.T.E. @Rs.50/-
per month, provided the employee concerned is in receipt of a
basic pay of Rs.600/- (revised) or more. Such employees, if
they own a scooter or motor cycle, who are in receipt of a
basic pay of Rs.600/- or more, but less than Rs.650/-' will be
allowed this at the same rate. In such cases, transport

subsidy will not be admissible.

Conveyance Advance :
It was agreed that the present limit of Rs.7,500/- of advance
for purchase of Motor Cycle/Scooter will be raised to
Rs .9,000/- or the actual price of the Scooter/Motor Cycle
whichever is less. Employees with a basic pay of Rs.650/-
(revised) and above will be eligible for grant of this
advance.. For the purpose of purchase of Mopeds an amount of
Rs .4,000/- or the actual cost of Moped whichever is less, will
be allowed. Employees in receipt of basic pay of Rs.600/-
(revised) and above will be eligible to apply for this

advance.
The existing rates for grant of advance for purchase of bi­
cycle were reviewed and it was decided that this advance will
be limited to Rs.600/- or the actual cost of bi-cycle
whichever is less. All other conditions pertaining to the
corresponding rule will remain unaltered.

City Compensatory Allowance :

The employees' representatives had expressed a keen desire for
extension of the facility of payment of City Compensatory
Allowance in respect of employees posted at Bhubaneswar. After
discussions it was explained that Bhubaneswar is not coming
within the purview of the existing instructions of the Govt,
of India for payment of CCA. It was agreed, however, that if
Govt, of India instructions cover Bhubaneswar as a City. will
also be paid to the employees stationed at Bhubaneswar at
rates prescribed by the Govt, of India.

House Rent Allowance :

It was agreed that House Rent Allowance will be payable to the
employees posred project sites @7 of pay. For the purpose
of computation of HRA, pay would mean the maximum of the
revised pay scale in which an employee is placed at all
locations.

Water & Electricity Charges at Project Sites :

It was agreed that domestic water supply at the Company's
township at project sites will be free of charges. However,
existing rates of recovery of electricity charges will remain
unaltered.

Reimbursement of Educational Expenses :

The employees' representatives had demanded reimbursement of
tuition fee paid by employees in respect of their children for
education at different places and also for supply of Uniform
and provision for subsidised transport by the management. The
difficulties arising out of such provisions were explained.
However, it was agreed that educational expenses in respect of
employees' own children numbering not more than two, shall be
reimbursed at the rate of Rs.25/- (twenty five) per month per
child to cover tuition fee, uniform, Transport expenses and
other educational expenses.

Conveyance Allowance for physically Handicapped Employees :

It was agree that Conveyance Allowance will be paid to the
physically handicapped persons in terms of the existing
instructions of the Government of India, with effect from the
applicable date in each case.

Advance :
Employees can. draw .80% of the estimated fare as advance for
both outward and return journey provided the latter is
completed within 90 days. If they are availing LTC under 750
km./1700 km. Schemes, employees may be sanctioned advance for
the full fare. LTC claim must be submitted within one month of
completion of return journey supported with proofs- of journey
tot he satisfaction of competent authority. In case of
availing LTC under 750 km/17 00 km schemes. They are only
required to declare the places of visit and date of visit in
the prescribed forms.

Educational Facilities :
Both executive and non-executive employees are entitled to
reimburse the education expenses incurred by them in respect
of their own dependant school going children upto 2 children.
The tuition fee is reimbursable upto two children and upto +2
level @Rs.25/- per month per child to the employees not
availing Company's bus facility for their children for
attending, school. Reimbursement of educational
expenses/tuition fee will not be admissible in case of
children who are availing scholarship from the Company.

In order to encourage and facilitate higher education for

meritorious children of the employees, the company awards upto

63
100 scholarships during each academic year for admission into
recognised courses. The amount of scholarships are as under :

TABLE No X,8

Course Amount in No. of

Rs. Scholarships
Degree or equivalent course in 300/- 10
Engineering, Architecture,
Medical Science including
Dentistry,
Agricultural/Veterinary Sciences,
B. Pharma of 4 years duration and
other equivalent courses after
passing +2 examination.
Post Graduate Degree/Diploma 300/- 05
courses of two years duration in
Institutes of repute ’ like IIMS,
XLRI, XIM.
Post Graduate Degree/Diploma in 200/- 15
Arts Science, Commerce, Law,
Management, Public Relations,
Journalism, Industrial Relations
etc.
Degree courses in pure science, 200/- 20
commerce, humanities, law
Pre-University, -Intermediate or 100/- 40
equivalent and 11th or 12th class I

under 10+2+3 years system

including vocational study.
Diploma in Engineering/Hotel 1 00/- . 10
Management/Catering/Other
professional Diploma courses
after school final.
Medical Facilities :
NALCO offers very comprehensive, integrated and well equipped
health service to its employees and their family members
through its hospitals at Damanjodi & Angul. The employees may
be referred to other advanced hospitals in appropriates cases
for specialised treatment. Where treatment is taken at outside
hospitals actual reimbursement is schedule. The definition of
family for the purpose of medical treatment includes employee,
spouse, children, parents, unmarried/widowed sister and minor
brothers- (below the age of 18 years) residing with and'wholly
dependent on the employee. To be dependent, dependent's income
should not exceed Rs.1000/- per month from all sources.

Employees are issued with medical card based' on their

declaration. In case of loss of it, duplicate cards can be
issued on payment. Employees must keep their medical cards in
safe custody. Misuse of medical card is viewed seriously. The
employees and his family are provided with excellent medical
facilities by the company.

Night Shift Allowance :

Both executive and non-executive employees working in night'
shift i.e. during 10 P.M. to 6 A:M. shall be paid an allowance
@Rs.15/- per night shift work.

Split Shift Allowance :

Where a non-executive employees is required to perform duties
in split shift allowance @Rs.8/~ per day of split duty
attended.

Tiffin Allowance :
Where the company has not provided subsidized canteen, the
employees are entitled to tiffin allowance @Rs.10/- per day of'
actual attendance, subject to maximum of Rs.260/- per month.

L5
Special Advance :
Non-executive employees are granted interest-free advance to
one month's basic pay upto Rs.1700/- in a calendar year for
meeting expenditure on special occasions,. The advance is
recoverable in 10 equal monthly instalments.

House Rent Allowance :

When accommodation is not provided by the company one is
entitled to House Rent allowance.

Place of Posting Rate of HRA

New Delhi, Bombay 30% of basic pay
Other VA' Class cities 25% of basic pay
B-1., B-2 class cities 15% of basic pay
C Class and other 10% of basic pay
un-classified areas

• 10% of pay in case of executives at Bhubaneswar.

House Rent Recovery & Electricity Charges :

House rent for accommodation provided by the Company is
charged on the following basis :

TABLE -2.9
Cateaorv Rate
In case of leased accommodation 10% of basic
provided to the executives
In case of accommodation owned by the Standard license fees
t

Company provided to the executives

In case of accommodation owned by the Standard license
company provided to the non-executives.

The existing standard rent for different type of houses are as

under :
 Table No. —z:10
Type of Approx. Area Rate (PM) Electricity ■ • Water
house (Sq. ft) Charges Charges
(PM)
A 388 Rs.80/- Rs. 30/-
B 606 Rs.115/- Rs.45/-
C 898 Rs.155/- Rs . 60/- Rs.10/-
D 1495 Rs.345/- Rs.100/- Rs.20/-

In addition, rent for garage and servant quarters is recovered

@Rs.10/- PM and Rs.20/- PM respectively.

City Compensatory Allowance :

Table No.1.11
Class' of Cities Rates
A 6% of pay subject to a maximum of Rs.10 0/-
PM
B1 4.5% of pay subject to a maximum of Rs.75/-
PM
B2 3.5% of pay subject to maximum of Rs .20/- PM

For non-executives the limit is Rs.75/- PM at Bhubaneswar.

Liveries :
All employees are entitled for the following items like
shirts, saris, shoes, socks as applicable to either male or
female employees.

Flood Advance :
In case df natural calamities like floods, all non-executive
employees are granted interest free advance of Rs.1,500/-. The
advance is recoverable in 15 equal monthly installments.
Cash Handling Allowance :
Employees handling cash in finance department are eligible to
get Rs.125/- per month.

Transport Subsidy :
Non-Executive employees who are not in receipt' of Conveyance
Allowance will be eligible in case of executives in IDA
pattern._

Conveyance Subsidy for physical Handicapped :

Physically handicapped employees who are not in receipt of
Conveyance Allowance are eligible for Conveyance subsidy
@Rs.10G/- per month.

There are conditions under which the employees can seek

outside employment.

Resignation :
NALCO feels that its human resources are too valuable to be
lost through resignation. However, any employee who resigns
has to comply with certain conditions. The employee has to
apply stating his/her intention to resign to the competent
authority through proper channel. The employee has to give
notice of 3 months before the proposed date of release. This
notice period can be curtailed if the employee is given pay in
lieu of the balance notice period, subject to the acceptance
by the Competent Authority. The employee shall not be granted
any leave except casual leave - during notice period. On
acceptance of resignation, the employee will be required to
collect the no dues certificates from all concerned
departments prior to release in prescribed, proforma.

The employee has to fill up the gratuity and provided fund

forms before his release for expeditious settlement of dues.
The personnel/HRD Department may arrange an exit interview
with you after acceptance of your resignation with a view to
testing their frank opinion and authencity certificate on the
date of your release. The company takes great pride on their
future achievements and growth in their career wherever they
may be.

Retirement Benefits :
Retirement is a relative term, which here should mean leaving
the services of the Company on attaining the age of
superannuation and entering into wider fields of life & human
interests. It has been seen that people after retirement
mostly take to business, consultancy or advisory services or
simply settle down to a carefree life of leisure spent in
reading, writing or cultivating hobbies. Their long
association with the NALCO is always cherished.

Under the existing service conditions of the company one will

superannuate on reaching the age of 58 years. After being
formally intimated of the date of retirement (normally about a
year in advance) employees may avail leave accumulated to
their credit and start filling in prescribed forms for 'timely
settlement of dues.

Retirement Benefits of Superannuation :

1. Encashment of the earned leave in credit,, plus HPL upto
40 days in case of executives.
2. Full provident fund contribution of the company along
with employees contributions and interests accrued on the
whole.
3. Gratuity upto a maximum limit of 20 months salary or
Rs.1,00,000/- whichever is less calculated §15 days
salary for each completed year of service.
4. Permission to retain the Company's quarters for a period
of 2 months from the date of retirement on normal rent.
5. Travelling allowance for self and family for proceeding
to home town or to any other place of settlement limited
to the distance to ■ home town by 1st. Class rail.
Reimbursement of actual expenses incurred on
 transportation of personal assets is also admissible as
on transfer.
6. Employees and their spouse can avail guest house
facilities in different locations of the Company at par
with the existing employees.
7. After retirement, they their spouse continue to receive
medical benefits from the Company under contributory
Medical Benefits Scheme of the Company.

Voluntary Retirement :
The scheme of NALCO applies to regular employees who have
completed 10 years of service in the Company or have completed
40 years of age.

An employee, who has been declared medically unfit for work or

has been disabled due to an accident or unfit to discharge his
duties for any other reason may also seek voluntary retirement
even though he does not satisfy the service and/or age
criteria.

Benefits :
i) Full Provident Fund accumulated along with Company's
contribution.
ii) Cash equivalent of accumulated earned leaves as per leave
encashment rules.
iii) Gratuity as per rules for the Company.
iv) Three months emoluments in lieu of - notice period as per
the conditions of service.
t

v) Ex-gratia payment equivalent to one and half months

emo-luments for each completed year of service or a part
thereof in excess of 6 months or monthly emoluments at
the time of voluntary retirement multiplied by the
balance months of service left upto the date of
superannuation, whichever is less.
vi) Transfer expenses of the employee & his family from the
headquarters to any place in India, where he intends to
 settle down by the entitled class as applicable in case
of transfer while in service.

Pension :
NALCO has developed a pension scheme for its employees with
effect from 01.04.95. The scheme is self-sustaining with
contributions of the employees and the Company diverting a
part of the funds used towards certain allowances, incentives,
uniforms and a part of Company's contributions to PF. The
scheme envisages to pay pension as percentages of salary with
reference to the following slabs :

Table No.Z.12
Contributed Service Pension as percentage of last
salary drawn
10 years 25%
More than 10 years but less 25% + 1.25% for each additional
than 30 years year of service after 10 years.

30 years and more 50%

Post-Retirement Medical Facilities :

The Company in its efforts to extend certain social•security
measures beyond the age of retirement of an employee has
established a . scheme of post-retirement medical benefits.
Employees are entitled ' to these benefits when : They
superannuate or are separated from the company on medical
grounds after putting in at least 10 years of continuous
service and employees their spouse are not availing any
medical facilities of similar nature from any other
organisation. Full time Directors of the Company are also
eligible for benefits under the scheme on completion of the
tenure. In addition, the benefit is extended to the spouse of
the employee who dies in harness during the course of service
in an accident arising out of employment.
Benefits :
In case employees stay at the place where the company has its
own hospital/dispensary. They and their spouse may receive
medical treatment facilities including medicine as available
in the hospital. In case they stay at a place where the
company does not have its own hospital/dispensary,
reimbursement of medical expenses for indoor treatment may be
allowed, if it is received in a Govt, hospital or other
hospitals notified by the Company. For outdoor treatment,
reimbursement of medical expenses shall be • permitted as
applicable to the regular employees subject to the following
ceilings.
Table No .£,13
Years of service in Nalco Annual Ceiling
20 years or more or Board level Full month's pay
appointee
15 years to 20 years 75% of full month's pay
Upto 15 years 50% of full month's pay
"Full month's pay" means maximum of the pay scale of serving
employee of equivalent status.
Contribution :
For availing the medical benefits, employees make annual
contribution calculated at the monthly rates as follows :
Table No .£.14
Category of retired Rates of monthly contribution for
employees those residing at places where
Hospitals/Dispen Hospitals/Dispensa
sary ry
' Facilites Facilites not
available available
Employees with pre-revised Rs.15/- " Rs.20/-
basic pay beyond Rs.2,700/-
p.m. on the date of
retirement
Employees with pre-revised Rs.10/- Rs.15/-
basic upto Rs.2,700/-p.m.
on the date of retirement
Monthly contribution may be revised from time to time. The
contribution is required to be paid in advance on annual basis
for each financial year. Contribution once paid is not
refundable.

INDUSTRIAL RELATIONS
Industrial Relations implies the relationships that emerge out
of day-to-day working and association of labour and
management. Personnel policies have industrial relations
implications. Today the relationship between employer and
employee is contractual, reciprocal and mutual. The employee
has certain rights and obligations and so does the. employer.
The aim of both parties should be to maintain congenial
industrial relations scenario in the organisation.

Trade Unionism :
Trade Unions are a major component of the modern industrial
relations system. A trade union may be defined as a continuous
association of wage-earners or salaried employee for
maintaining the conditions of their working lives and securing
them a better healthier status in industry as well as in the
society.

NALCO has always encouraged the growth of unions. Presently

there are unions in the different units. Table shows the list
of unions, their affiliations and date of operation.

Recognition of Unions :
It resolves around two issues. First is the issue of
recognition of a union per se, especially in a non-unionized
situation. The first question that arises is which union is
one to recognize, or should more than one union be recognized?
The second issue is related to the problem of verification,
the process by which the contending unions claim to membership
is cross-checked, to enable one to seek representative status.

*3
The problem arises because at the moment there is no uniform
legislation available with regard to the recognition issue.
In NALCO, the management is keen to recognize unions which
come forward for recognition claiming their majority. However,
legal constraints have always come up in the way and the
unions have gone to the court of law. The State Labour
Commissioner has conducted verification on the representative
character of unions recently and their final report is
awaited.
Table No .2.15
SI I Name of the Regn. Affil^t Membership coverage Actual

No. Union No. & ion (if as provided in the area/func

date any) bye-laws tioning
unions
1 2 3 4 5 6
TT Nalco 1500/83 INTUC Employees of NALCO, Alumina
Employees' Damanjodi & Vizag. Kef.
Union (Non-executive Unit,
employees of NALCO at
Alumina Plant & Mines
including all
trainees on the job,
LDP enlisted for
employment, all
people residing in
township & their
services and required
for Nalco employees).
As per the amended
by-law of the union
circulated during
1987.'
2. Mines & 1781/87 Nil Every non- execut i ve Alumina
Refinery 14/07/8 employee' of NALCO, Ref. &
Employees' 7 Damanjodi, Koraput Mines.
Union.
1 2 3 4 5 6
4. Nalco Mines 28-JYP INTUC Any & every non- Mines
Employees 06-06- executive employee of
Union 90 the NALCO Bauxite
Mines.
b. Nalco 1490/83 INTUC All non-executive Corporate
employees 1983 employees of NALCO, Office,
Central Union Bhubaneswar. Bhubanesw
ar.
6. Nalco 444-CTC Nil All non-executive Corporate
Employees 17/01/9 employees of NALCO, Office,
Association, 4 Bhubaneswar. Bhubanesw
BBSR. ar.
7. Nalco 1515 INTUC All non-executive Smelter
Karmachari 12/10/8 employees of NALCO, Unit.
Sangh 3 Angul.
(Any and every person
directly or
indirectly related to
NALCO, Angul). As per
amendment by the
Union.

8. Nalco 1497/83 HMS Any & every person Smelter

progressive 1983 employed ■ directly or Unit
Employees indirectly as
Union. employees of NALCO
9. Aluminium 1794 BMS Any and every person Smelter
Mazdoor Sangh 15-09- employed as non- Unit
87 executive employees
of NALCO, Angul or
any of its ancillary
wings.

10. Nalco Shramik 1443 INTUC Any & every person CPP Unit

Congress Union 19-12- employed .as - an

1982 employee of the NALCO
 (except officers) and
employees of
contractors working
. in NALCO
1.1 . Nalco non- 1687 HMS All non-executive CPP unit.
executives employees of CPP.
Employees Bye-laws not
Union available on' record.
12. Nalco Vidyut 26-SBP BMS All & every person CPP Wing
Mazdoor Sangh 10-08- emploued ■ as non-
90 executive of the
NALCO, Angul or any
of its ancillary
wings.
13. NALCO 29-SBP CITUC Any person working CPP unit.
Industrial 28-08- and employed in NALCO
Workers" Union 90 Ltd. (Both Captive
Power Plant & Smelter
Divn.) and the
workers employed by -

its contractors and

coming under non-
executive category.
14. Nalco 3015 Nil Non-Executive Delhi
Employees 09-05- employees of NALCO, Office.
Association, 83 Delhi. Bye-Laws not
Delhi. available on record.
15. Nalco 16891 Nil Non-executive Calcutta
Employees (Yr.198 employees of NALCO, Office.
Association, 4) Calcutta. Bye-Laws
Calcutta not available on
record.
16. . Nalco Employee 146-JYP Nil
Association, 18-03- -

Damanj odi. 96
COLLECTIVE BARGAINING :
Collective Bargaining an essential element of economical
democracy is two-party procedure for arriving at a commonly
agreed solution. NALCO has always encouraged collective -
bargaining between the employees and the management. The
subject matter of bi',-partite discussions has been- classified
into three forums so that there is clarity of issues while
proposing the items for discussion in each forum/level.

WORKERS' PARTICIPATION IN MANAGEMENT (WPM):

Participation as a conscious anddeliberate choice in
designing human systems has come to be recognized as a
predominant value in most organizations, not only because
participative designs of employees create conditions conducive
to the release of human potential and constructive use of
human resources, but also because it enhances through
collective action, the quality of work life in the community.

NALCO gives premium importance to WPM. The participative

scheme operates on a three-tier basis with representation from
the non-executive employees and the Management at the :

1 . Shop-floor level;
2. Unit level and
3. Apex level.

DISPUTES MANAGEMENT :
Conflict, one of the features of Industrial Relation is a
general concept, when it takes a specific nature, it becomes
an industrial dispute.

The ultimate manifestation of Industrial Dispute is a strike

on the part of workers and a lockout on the part of managers.
The following chart clearly shows that conflict is not
confined to overt strikes or lockouts alone. There are also
other expression of conflict/dispute which have significant
effects on the working of an enterprise.
 Manifestations of organized-group conflict.
(Union-Management Conflict)

Manifestations of Unions Manifestation of Management

Non-Cooperation Unwillingness to negotiate
Agreements Termination
Hostility- Demotion
Stresses' Unwillingness to negotiate
& tension Lay-offs
Resentment Lockouts
Absenteeism
Work to rule
Demonstration, Morcha, G
Loss of production
Strike

Over the years. NALCO has generally had a good Industrial

Relations Scenario without any such major dispute. There has
been no case of lockout. Since the operation of the
organization two major strikes have occurred.

(i) 1987 - Angul Sector

(ii) 1991 - Damanjodi Sector

However, there have been other manifestations on the side of

the workers and unions leading to loss of. man days in the
organisation. ‘

GRIEVANCE MANAGEMENT :
In a broader perspective, grievance would include any
discontent or dissatisfaction experienced by an employee which
affects the performance of the organization. An employee can
be aggrieved at the treatment meted out to him by his
superiors or the management on his conditions of service. To a
large extent, the approach will be governed by several

43
variable such as style of management, size of the enterprise,
level of education of work force, technology of the plant and
the extent of unionization of work force.

GRIEVANCE PROCEDURE :
For Non-executive employee :
An aggrieved employee in the first place should present his
grievance verbally to his immediate superior, who in turn
would try to resolve the matter within three days. If not
satisfied the employee may submit his grievance' in writing in
the prescribed form to the head of department (HOD) within 60
days from the ' occurrence of the cause of the grievance. The
HOD will give a formal reply within 60 days from the
occurrence' of the cause of the grievance, if required the HOD
may also give a personal hearing to the aggrieved employee. If
the employee is not satisfied with the reply or does not
receive a reply within the stipulated period he may take up
the matter to the grievance committee through its Secretary.
The committee must give their decision on the grievance within
30 days of the receipt of the grievance. If necessary the
concerned employee may appear before the ■ committee in person.
He may also be allowed to be assisted by a co-employee in
presenting his case to the committee.

If the employee is still not satisfied will the reply of the

Grievance Committee he may prefer an appeal to the head of the
unit within 1 days from the receipt of the reply from the
Grievance Committee. The decision of the Head of Unit will be
final and shall be communicated within 30 days from the
receipt of the appeal.

For Executive Employees

Executives upto and including E4 level can invoke the formal
grievance procedure for redressal of individual grievance.
Executives in E5 and above levels should approach the Head of
the Unit for =re-solving the grievance. The procedure requires
the aggrieved executive to take up the matter first of all
with the concerned Head of the Department. If. not satisfied
with the reply of the HOD he [Link] his grievance formally
in writing to the GM/Head of the Unit within 30 days from the
occurrence of the cause of ' the grievance. The GM/Head of the
Unit will communicate the decision to the aggrieved executive
within 15 days, if required he may give a personal hearing to
the executive before disposing of the grievance. IF the
executive is still not satisfied, he may appeal to the CMD in
writing. The decision of the above will be communicated tot he
aggrieved executive within 30 days. Following is the list of
items that are the cause of grievances in NALCO.

Compensation : Increments, Payment, Recovery of dues.

Amenities : Inequitable, distribution, entitlement,
medical benefits.
Service Matters : Transfers, Continuity of Service
Superannuation.
Natures of Job : Job allocation.
Conditions of Work Safety, Hazards.

Leave :
General issues involving pay-scales, allowances,- benefits,
promotion policy and matters relating to disciplinary action,
vigilance and security are beyond the scope of Grievance
procedure for executives. These relating to collective
bagimning and disputes on pay-scales, bonus, hours of' work,
cases relating to disciplinary actions, vigilance and security
are kept beyond the purview of Grievance procedure for Non-
Executives . *

Conduct & Discipline :

Conduct constitutes the image of NALCO. The general acts of
conduct and misconduct are also applicable here as mentioned
in the Standing Orders of NALCO.

In the interest of justice and equity, there are established

procedures to check the growth of indiscipline, misconduct and
 of the,
subversive actions of employeesAcompany. Conduct, Discipline &
Appeals Rules of the Company deal with the disciplinary
procedure in respect of the executives. Non-executive
employees are guided in the matters by the Standing Order. The
penalties that can be imposed on the employee for an act of
misconduct may be minor or major.

QUALITY MAINTENANCE IN NALCO

Ever since India embarked on the Liberalization process
and went all out for a Free-Market Economy - The Indian
corporate which have taken upon themselves the ones of
introducing TQM in their organisation have managed to stay
afloat and withstand ' .1 the competition. And NALCO is no
exception. Quality forms the core of NALCO's business
philosophy meeting needs and expectations of the customers and
consistently improving their systems and work ethos to- their
chosen .path in achieving excellence in business and fulfilling
social obligations.

Objectives :
> To produce and market in the country and abroad consistently
good product.
> To maximize operational and capacity utilization and
productivity.
> To promote a result oriented organization, work-culture and
team work.
> To provide value for money to all stake holders.
> To consistently improve and redesign systems processes and
practices in order to ensure error prevention and improve
response time.
y To adopt internal customer focus as a means to external
customer satisfaction.
> To treat HR as the key to quality excellence and ensure
involvement of employees.
> To ensure high quality of inputs through proactive
interaction with suppliers.

Si
> To meet obligation towards the society as a responsible
corporate citizen ..
> To follow ethical business philosophy at all times.

Quality :
The totality of features and characteristics of a product or
service that bear on its ability to satisfy stated or implied
needs.

Quality Policy :
The overall quality intentions and direction of an
organization as regards quality, ■ as formally expressed by top
management.

Quality Management :
That aspects of the overall ‘management functions that
determines and implements the quality policy.

Quality Control :
The operational techniques and activities that are used to
fulfill requirements for quality.

KAIZEN :
Continuous Improvement Movement/Improvement.

KAIDYO :
Innovation or Break - through Quality Profession is not
staying -still. It is undergoing rapid transformation, and
external forces are primarily responsible for this.

> Technological Advances.

> Shifts in products, services & markets.
> Increasing economic competitiveness.
Dimensions of TQM in NALCO include :

1. Defining customer expectations and translating them into

realistic organisational goals and objectives.
2. Managing Projects and processes.
3. Obtaining appropriate quantitative and qualitative
measurements and feedback, including real time status
reports and trend analysis.
4. Conducting effective performance - based assessment and
balanced overview activities.
5. Carrying out realistic, corrective, adaptive and
preventive actions.
6. Conducting root-cause analyses to identify the real
causes of organizaional problems and the most obvious
opportunities for improvement.
7. Planning and- realizing continuous improvement.
8. Using, developing and empowering Human Resources ■ and
treating them as capital.

ISO 9000 : Standard Quality Systems - Guidelines for selection

and use of Standards on Quality System.
ISO 9001 : Standard Quality Systems - Model for Quality
Assurance in design/development production
installation and servicing.
ISO 9002 : Standard Quality System - Model for quality
assurance in final inspection and test.
ISO 9004 : Standard Quality Management and Quality Systems
elements - guidelines.
ISO 9004 : 1994 (ELEMENTS) NALCO has achieved ISO 9002
accreditions in all its 4 units.
1 . Bauxite Mines
2. Alumina Refinery
3. ■ Smelter Plant
4. Captive Power Plant.

<33
ISO 9002 : 1994 (ELEMENTS) :

1. Management Responsibility
2. Quality System
3. Contract Review
4. Document and Data control
5. Purchasing
6. Control of Customer - supplied product
?. Product identification and traceability
8. Process control
9. Inspection and Testing
10. Control of Inspection, Measuring & Test Equipment.
11 . Inspection and Test Status.
12. Control of non-conforming product.
13. Corrective and Preventive Action
14. Handling, Storage, Packing, Preservation & Delivery
15. Control of Quality Records
16. Internal of Quality Audits
17. Training
18. Serving
19. Statistical Techniques.

Note : Element (4) - Design Control is applicable ■

9001 : 94 only.

QUALITY CIRCLES (QCs) :

Philips Crosby wrote that "all that is necessary for quality
management is people". The concept of quality circles is a
departure - from the Western Management approach which separated
$

workmen and management into two different blocks. In this

approach the task performance at the grass-root level are
given the freedom to have a say in the work they do. The
knowledge to analyses and solve problems as teams, is provided
to the workmen. This, in essence is the conceptual frame of
Quality Circles.
NALCO has witnessed the increase in number of QCs over the
years.

Years No. of PCs

1993-94 14
1994-95 30
1995-96 47
1996-97 67

Damanjodi Sector records the highest number of existing QCs

with 31 of thern^ functioning with all earnest, vigour and
fruits.
Philosophy of QCs at NALCO :
> QCs should continue to progress.
> To facilitate everyone to fully develop their potential
> To create a pleasant work environment
> Help the organization to further develop.
> To promote the material and spiritual level of people.
> Problems can be best identified and solved by those who
actually do the job.

BENEFITS mP QCs :
To the Employees :
> Encourages job interest by increasing level of motivation
> Provides a sense of participation
> Inculcates team approach to problem solving
> Helps to improve work environment.

To the Organisation ;
> Increase in productivity
> Better motivated and committed workforce
> Leads to better employer-employee relationship. QCs -are an
asset- to NALCO and its people.
 OTHER INFORMATION

Working Hours :
The Corporate Office at Bhubaneswar, Marketing and Liaison
Offices at Mumbai, Bangalore, Calcutta, Delhi, Chennai and
Pondicherry remain open from 9.30 A.M. to 5.30 P.M. with 30
minutes lunch break. The second Saturday of every month is a
closed holiday for these offices. The offices at Angui and
Damanjodi are open from 8 AM to 5 PM coinciding with the'
general §hift of plants with one hour midday break. The office
at Vizag is open from 8.30 AM to 5 PM with a 30 minutes break.

Production, maintenance and essential services of the plants

are operated round the clock in 3 shifts, Mines at Damanjodi
operate in A and B shifts only.

'A' shift is from 6 AM to 2PM, 'B' shift is from 2 PM zo' 10

PM; and VC' shift is from 10 PM to 6 AM.

Attendance :
This is recorded through a time punch card. Employees are
required to punch their card while entering and leaving the
work place. This helps the time office to compute wages. Where
cared punching system is not provided, employees are required
to sign the attendance registers kept for the purpose. During
duty hours, if one has to leave the work premises, he/she will
be required to obtain permission and an outpost has to be duly
signed by the concerned shift in-charge.
*

Overtime (OT) :

These provisions exist for non-executive employees only.

When an employee is required to work for more than 9 hours in.

a day or 48 hrs. in a week, he is entitled to overtime wages
at twice the ordinary rate of his hourly wages. In other
cases, OT is paid at the ordinary rate of hourly wages.

C
The ordinary hourly rate of wages is calculated as :

Monthly Wages
26 x 8

The total hours of overtime mark cannot exceed the statutory

limits.

SOCIAL RESPONSIBILITY OF NALCO

Community Development :
The commitment to create and sustain a congenial cosmopolitan
social environment within the organisation is discernible as
one visits the NALCO townships at Damanjodi, Angul and
Bhubaneswar. Built with an investment of Rs.65 crores. These
modern townships comprising 4099 dwelling units, 385 capacity
hostel complexes, community centres and clubs, not only
provide back home comforts to the employees after a hard day's
work, but are also egs of vibrant community living. Sport
tournaments, Clubs nights, dance and drama festivals, flower
shows, cultural meets enrich the community life. The
multipurpose co-operation successfully running' in all NALCO
townships are based on the unique spirit of collaboration
among the Nalconians. Well equipped ultra modern hospitals
with indoor and outdoor facilities and professionally managed
English and Oriya medium schools at Damanjodi and Angul
township illustrate the social care philosophy of NALCO in
action.

Periphery Development :
NALCO has adopted a policy of playing a catalytic role in
general improvement of quality of life of the people living in
the peripheral villages. In this regard, various steps have
been taken in collaboration with local Government authorities.

9f
Some of these activities are :

Development, Construction and repair of roads, culverts,

bathing ghats etc. in the peripheral villages.

Support for technical training of youths, from affected

families.

Development of a rehabilitation colony at Damanjodi.

Free medical facility by the Nalco hospitals.
Adult Education Centers for local tribal population of
Damanjodi.

Environment? and financial support to local sports,

cultural and community welfare events.

ANCILLARY DEVELOPMENT :

NALCO has adopted the Govt. of India guidelines and developed

its policy for environment to the SSI units, and registration
of ancillary industries. The company has so far awarded
ancillary status to 25 SSI units.

NALCO's involvement with SSI units, local manufacturers, local

contractors and State agencies has been encouraging. Purchases
from Orissa based SSI Units during past 6 years have gone up
almost four times.

Table No.Z.16

1990 - 91 Rs .267 lakhs.

1991 - 92 Rs.311
i
lakhs
1992 - 93 Rs.483 lakhs
1 993 - 94 Rs.648 lakhs
1994 - 95 Rs.687 lakhs
1995 - 96 Rs.1007 lakhs

The Industrial opportunities arising out of the establishment

of NALCO' have been identified jointly with IPICOL & Director
of Industries, Orissa and given due publicity. This has
resulted in several small/medium scale units coming up in and
around NALCO Plants and elsewhere' in Orissa.

Expansion of Capacities :
Table No .Z.17
Segment Present Proposed Increase Outlay Status
Capacity Capacity (%) (Rs. In
(tpa) (tpa) Crore)

Phase - I 1665
Bauxite 24,00,000 48,00,000 100 PTB
Cleared
Alumina 8,00,000 15,75,000 97
Phase - 2318
II
Aluminium 2,30,000 3,45,000 50 Pre-PIB
Cleared
Power 6 x 120 8 x 120 33
(MW)
 REFERENCES

NALCO at a glance.
/

This is NALCO

NALCO - What Leadership is all about.

NALCO - Parichaya, 1996-97

NALCO PRODUCTS

NALCO - UPDATE, 1995-96.

Johri, S.N. ; Aluminium Association of India.

NALCO, World Environment Day, 1995.

NALCO, World Environment Day, 1996

Secondary Information obtained from existing

records & documents.

QO