1

A STUDY ON EMPLOYEE SATISFACTION TOWARDS WELFARE

MEASURES IN BHEL- HEAVY PLATES & VESSELS PLANT,
VISHAKAPATANAM.

A project report submitted to Andhra University visakhapatnam in partial

Fulfillment of the requirement for the award of the degree of

MASTERS OF BUSINESS ADMINISTRATION

SUBMITTED BY

M. GOWTHAMI

(Regd No:113228802098 )

Under the esteemed guidance of Sri M. RAJESH, MBA Faculty

IDEAL COLLEGE OF ART& SCIENCE

KAKINADA
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DECLARATION

I hereby declare that this project report entitled “A STUDY ON EMPLOYEE

SATISFACTION TOWARDS WELFARE MEASURES IN BHARAT HEAVY ELECTRICALS
LIMITED- HEAVY PLATES & VESSELS PLANT, VISAKHAPATNAM” submitted by me
under the esteemed guidance of A.DHANRAJ , Kakinada is my own and has not
been submitted to any other University or Institute or published earlier.

Date: Signature of the Student

(M.GOWTHAMI)
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ACKNOWLEDGEMENT

It is a great privilege to express my gratitude to Shri. M.RAJESH faculty,

Department of Management Studies, IDEAL COLLEGE OF ARTS & SCIENCE
for all their patience and interest with which they have helped me in completion of
my project.
I express my sincere thanks to, Mr T.A. Rama Rao Dy. Manager (HRDC)
of BHEL for guiding me in the completion of my project work.

Place:

Date:
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QUALITY POLICY

“IN ITS QUEST TO BE GLOBAL ENGINEERING ENTERPRISE, BHEL

PURSUES CONTINUAL IMPROVEMENT IN THE QUALITY OF ITS

PRODUCTS, SERVICES AND PERFORMANCE LEADING TO CUSTOMER

DELIGHT THROUGH COMMITMENT, INNOVATION AND TEAM WORK OF

ALL EMPLOYEES”.
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CONTENTS

CHAPTER – I : INTRODUCTION Pgs: 1-6

CHAPTER – II : AN OVERVIEW OF M/s B.H.E.L. – HP&VP Pgs: 7-32

CHAPTER – III : REVIEW OF LITERATURE Pgs: 33-43

CHAPTER – IV : EMPLOYEE SATISFACTION IN M/s B.H.E.L. – HPVP Pgs: 44-59

CHAPTER – V : DATA ANALYSIS AND INTERPRETATION. Pgs: 60-82

CHAPTER –VI : FINDINGS, SUGGESTIONS & CONCLUSION. Pgs: 83-84

ANNEXURE : BIBILIGRAPHY.
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INTRODUCTION

Human Resource Management (HRM) is a process of bringing people

and organizations together so that the goals are met. It can be also said
as an art of procuring, developing and maintaining competent
workforce to achieve the goals of an organization in an effective
manner.
Human Resource Management is a broad concept. Human
Resource Management is concerned with the people dimension in
management since every organization is made up of people acquiring
this services, developing their skills, motivating them to high levels of
performance and ensuring that they continue to maintain their
commitment to the organization, are essential to achieving
organization objectives. This is true regardless of the type or
organization government, business education, health, generation or
social action. Getting and keeping good people is critical to the success
of every organization whether profit or nonprofit, public or private.
Those organizations those are able to achieve their goals because
the organizations either big or small are providing the welfare
measures to the employees.
Welfare refers to a condition of living of an individual or group in
a desirable and happy state of relationships with whom economical and
social, ecological welfare means environment friendly existence,
ecological balance pollution existence and proper sanitation.
The term welfare as it suggest the ideas, meanings and conditions
such as the state of well-being, health, happiness, prosperity, and the
development of human resource. The concept welfare can be
approached from various angles; welfare has been described as a total
in order to establish the manpower their work and achievement of the
organizational objectives.
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Thus manpower is a vital ingredient for the success of an

organization, making the task of good labour welfare system in
organization and resources utilized of personnel management.
The employees who join the organization today have different
values and norms. Their expectations are different and they are more
competent and more informed than the employees were in the past.
Bharat Heavy Electricals Limited-Heavy Plate &Vessels Plant is the
largest fabricator of process equipment in India for the petroleum,
chemical and allied industries. It comes under the purview of the
Department of Heavy Industry, Ministry of Industry, and Government of
India and is managed by an autonomous board of directors. Situated in
the city of destiny of Visakhapatnam on the western see coast of the
Deccan plateau, B.H.P.V. Ltd is accessible by road, rail, sea and is well
connected to all metropolitan cities by air.
Bharat Heavy Plate & Vessels Ltd., started off in 1966 as fully
owned government company for Design, Manufacture & Supply of
capital equipment required for process industries in the core sector
such as Fertilizers, oil refineries & Petrochemicals etc.
Manufacturers of Columns, Pressure, Vessels, High Pressure Heat
Exchangers, Air and Gas Separation Plants, Evaporation Plants, Boilers,
Fried Heaters, Reformers, Feed Heating Systems, Complete Systems,
Digester and Sophisticated Process Equipment with Computer Aided
Designs (CAD).
Due to various factors, there were heavy losses and the company
was declared sick by the Board for Industrial and Financial
Reconstruction (BIFR) in October, 2005. Later, with the Board for
Industrial and Financial Reconstruction's (BIFR) sanction of the
Modified Draft Rehabilitation Scheme envisaging merger of Bharat
Heavy Plate and Vessels Limited (BHEL-HP&VP) with the Maharatna
Company Bharat Heavy Electricals Limited (BHEL), BHEL-HP&VP has
become the 17th manufacturing unit of BHEL. Bharat Heavy Electricals
Limited (BHEL) took over BHEL-HP&VP as its 100 percent subsidiary in
2008. However, the
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Company’s performance was not up to the mark, as it remained a

separate company and it could not derive full benefits of synergy with
BHEL.
The unit thereafter named as Heavy Plates and Vessels Plant
(HPVP), Vishakhapatnam. The Appointed date for the merger is 1st
October 2011. Till now, BHEL-HP&VP was a wholly owned subsidiary of
BHEL. After the Union cabinet's approval in February 2013, the merger
scheme was filed with BIFR in March 2013 and the entire merger
exercise was completed in a record time of 5 months thereafter.

NEED FOR THE STUDY

Employees play an important role in the industrial production of the country.

Hence, organizations have to secure the cooperation of employees in order to
increase the production and to earn higher profits. The cooperation of employees
is possible only when they are fully satisfied with their employer and the working
conditions on the job. In the past, industrialists and the employers believed that
their only duty towards their employees was to pay them satisfactory wages and
salaries. In course of time, they realized that workers require something more
important. In addition to providing monetary benefits, human treatment given to
employees plays a very important role in seeking their cooperation. Further,
human resource managers realized that the provision of welfare facilities
contribute a lot towards the health and efficiency of the workers.

The provisions of social security benefits are a kind of investment that

offers good dividends in long run. The organizations need to provide various
security benefits such as medical care, mortality benefits, pension etc., as
specified by law. The company having realized the importance of welfare and
social security measures introduced several welfare schemes for its workers and
the families. The company provides statutory welfare facilities like drinking water,
conservancy, medical appliances, canteen, rest shelters, crèches etc. it also
provides various non statutory welfare facilities such as medical, education,
recreation, housing/quarters, consumer cooperative stores, consumer co-
operative credit society etc. it provides social security measures like provident
fund, gratuity, pension, dependent employment etc.
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 There is a need to find out whether the organization is in a position to

motivate the employees by providing adequate welfare measures.
 To find out whether the organization is meeting the global standards to
their employee in terms of welfare measures.
 To find out whether the employees in return are giving their best efforts for
increased production.
 To study whether the organization is extending the fringe benefits to their
employees. There is a need to study this.

OBJECTIVES OF THE STUDY

 To study the employees welfare measures in BHEL-HVPV.

 To identify the various welfare measures provided to the employees.
 To obtain their satisfaction towards the welfare measures.
 To study how welfare measures improve the motivation of the employees.
 To study the interpretation of statuary welfare provisions in BHEL-HVPV.
 To study the non standard welfare provisions in BHEL-HVPV.
 To study how the existing provisions and welfare measures are satisfying
the employees and how they feel about them.
 To find out employees preference regarding welfare measures which they
like to have in future.
 To suggest some improvements in the welfare measures.

SCOPE OF THE STUDY

The present study is an attempt to make an enquiry into the various facets
of employee welfare and social security measures in Bharat Heavy Plate &Vessels
Limited, Visakhapatnam, Andhra Pradesh. The scope of the present study is both
wide and narrow. It is wide because it covers almost all the components of
welfare and social security measures.
Organizations should develop sound policies in regard to human side of
enterprise. Such policies are not only a statement of management intentions and
indicate the basic organizational approach towards human factor, but also
provide the much needed frame work to guide actions of functionaries in taking
important decisions on employee welfare and welfare and social security
measures.
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Organizations should develop sound policies in regard to human side of

enterprise. Such policies are not only a statement of management intentions and
indicate the basic organizational approach towards human factor, but also
provide the much needed frame work to guide actions of all functionaries in
taking important decisions on employee welfare and social security measures.

RESEARCH METHODOLOGY:

Collection of the data (samples) is the primary aspects in research

process. The research includes both primary and secondary data. The information
from the respondents is collected through questionnaire. Data which is collected
for the purpose of research helps proper analysis to develop findings which is
helpful to conduct research effectively.

TOOLS FOR DATA COLLECTION:

Keeping the objectives of the study in view and towards the
accomplishment of the objective of the study, a study of Human Resource
Department is undertaken and the research started with surveys, data collection
through the primary and secondary sources.
Primary data:
The primary data (samples) consist of original information that is to be
collected from the employees of the organization (BHEL). It is collected for
through administering the questionnaire by direct contact and also through direct
observation to obtain the insights of the information.
Questions will be framed in such a way that the answers reflect the ideas
and thoughts of the respondents with regard to level of satisfactions. For job
related factors “Likert Scale” (five rating scale) is to be used in which respondents
are required to show their level of satisfaction from 1 to 5 where (A= Excellent,
2=very Good, 3= Good, 4= Average, 5= Poor). Some facts that may be revealed in
the study will be based on personal observations also. For personal observations
simple category is used and respondents are required to tick the appropriate box.

Secondary Source:
The secondary data consist of information that already exists and which has
been collected by some persons, at some other time for the purpose. The
secondary data is mostly collected from books, Journals, reports, internet
Sources.
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Sampling technique:
Stratified random sampling is a technique which attempts to restrict the
possible samples to those which are not extreme by ensuring that all the parts of
the population are represented in the sample in order to increase the efficiency.
To get the information from stratified sampling method primary and secondary
data is been used.

Analysis of data:
The data thus collected through various sources was interpreted and
analyzed. The data collected through questionnaires were tabulated and then
analyzed by using statistical method such as Simple Percentile Method.

Tabulation:
Tabulation is the last stage in the compilation of data and forms the basis
for its statistical treatment from answers to questions with which the investigator
is concerned.
Note:- Research Methodology is discussed in future chapters.

LIMITATIONS OF THE STUDY

The study is carried out through a questionnaire, which is distributed to a

sample of the employees.

1. Due to non-homogenous pattern of the employee population, because of

the multi-disciplinary departments, there is an element of not
understanding the relevance and validity of the questionnaire and so the
data may not be accurate.
2. The employees did not have sufficient time to study and answer the
questionnaire and hence may have errors.
3. The researcher did not have sufficient funds for the study or material
wanted hence could not be able to get enough information.
4. Some of the employers could not reveal much information for the fear of
management and due to confidentiality, some do not cooperate with the
researcher and some cannot understand the questioner and some fear the
job security.
5. The researcher cannot have sufficient time to get the information from the
employees and the time for the project also is limited.
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OVERVIEW OF BHEL-HP&VP

UNIT PROFILE

INDUSTRY PROFILE

HPVP is a manufacturing unit of BHEL (Bharat Heavy Electricals Ltd), Mahaaratna

Central Public Sector Enterprise and Heavy Electrical Equipment Conglomerate.

MARKET PROFILE:-

In addition to HPVP legacy products such as process plants, combustion systems,

boilers,
Cryogenic equipments for refineries, fertilizer plants, steel pants etc, with the
takeover of the company by BHEL, the company diversified into manufacturing
equipments required for power generation plants in and abroad.

CUSTOMER PROFILE:-

HPVP’s clientele includes- Public, Private, Co-operative Sector organizations in

almost all the core sector of economy such as all the fertilizer plants, petroleum
refineries and steel plants in India and abroad. Now, with the diversification all
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major power plants in India. Other major customers are from paper, chemicals,
DEFENCE, space sectors.

COMPETITOR PROFILE (for Legacy products)

In the area of process plant: L&T, GR Engg , Lloyds steel, ISGEC, John

In the area of cryogenics: ICCP, INOX, Shanghai’s oxygen, L&T, Linde,

In the area of combustion system: ISGEC, Babcock Thermax, Ignifluid boilers, ABL

COMPANY PROFILE

HEAD OFFICE: BHEL House, New Delhi

PLANT: Visakhapatnam

Bharat Heavy Electricals is a public limited Company. It is a manufacturing

company catering the need of all types of power plants, namely – Thermal, Hydro,
Nuclear, Solar, and Renewable. It supplies and extends its services “A to Z” to the
above power plants. There is no power plant in India without the contribution
from BHEL. It has its foot prints all over the world. It is among one of the fortune
500 companies at one point or other.
The unit HPVP is now extending its manufacturing base to poer plant customers
while retaining its legacy. It is basically job order/ shop production industry.
According to customer specifications and requirements it produces various
products. Fore seeing the country’s need for fabricating equipment of an
exclusive Factory with the main object of reducing dependence on foreign
suppliers and become self sufficient ourselves. Thus the birth of BHEL-HP&VP in
the year 1966 to meet the demands of process equipment for core industry like
Fertilizers, petrochemicals, petroleum and other chemical industries initially.
BHEL-HP&VP using different types of materials manufactured and supplied
several built equipments such as pressure vessels, heat exchangers, columns,
internal trays etc. After executing some important orders, HPVP gained full
confidence of customers which cleared the way to enter the line of
cryogenic field, pulp cooking plant, evaporation plant and industrial boilers on a
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total turnkey basis which of later years helped in augmenting turnover of the
company and increasing profitability.
Licensed installed capacity is 23210MT. The initial capital outlay is Rs.17.5 crores.
The product mix included heat exchangers, columns, and pressure vessels,
Storage vessels, piping etc.
During the year of it commercial production i.e. 1971-1972 the turnover was just
Rs 5 lakhs. In 1996-97 it has recorded on turnover of Rs 29998 lakhs i.e. all time
high. Last Five year. Performance is produced here under.

Sl Year Licensed Capacity Achieved T/o (Rs-Crs)

1 2008- 23210 MT 5876 MT 84
09
2 2009- 23210 MT 5100 MT 104
10
3 2010- 23210 MT 12289 MT 137
11
4 2011- 23210 MT 8335MT 156
12
5 2012- 23210 MT 11551MT 240
13
6 2013- 23210 MT 10180MT 156
14
7 2014- 23210 MT 3871 MT 70
15
8 2015- 23210 MT 4000 MT 83
16
9 2016- 23210 MT 5200MT 108
17
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General information:
Genesis:

BHEL (FORMERLY B.H.P.V. Ltd.,) incorporated 25th June 1966 as a

Government of India undertaking for the manufacturing of special equipment like
pressure vessels, Heat Exchangers, Columns, Storage Tanks etc., required for the
process industries such as Fertilizer, Petroleum, Petro Chemical and allied
industries. The foundation atone laid by Sri. D.Sanjeevayya, the then minister of
industry on 8th Jan 1967 in Visakhapatnam.

LOCATION:
The factory is located in Visakhapatnam on the Calcutta-Madras Highway
diversion at about from the city. The factory is situated beside the village Tunglam
and about 5kms from Visakhapatnam Airport. It comes under the purview of the
Department of Heavy Industry, Ministry of Industry. With the technical
collaboration of M/s SKODA Export Company of Czechoslovakia in the year 1968,
it got expertise and guidance for establishing the project and for the design and
manufacture of various process equipments. BHEL became a fully owned
subsidiary of Bharat Yantra Nigam Ltd., in the year 1987. Licensed installed
capacity is 23210MT. the initial capital outlay is Rs. 17.5 crores. The product mix
includes heat exchangers, columns, and pressure vessels, storage vessels, piping
etc. During the year of it commercial production i.e. 1971-1972 the turnover was
just Rs. 5lakhs. Now BHEL has crossed the tuenover of 200 crores.

Past ten years turnover are given here: In 1996-97 it has recorded on
turnover of Rs. 29998 lakhs i.e. all time high. But due to lack of orders in 2003-
2004, BHEL has a made turnover is 5956 lakhs only.
Past 10 years turnover are as follows.

YEAR TURNOVER(Rs in lakhs)

1998-1999 21457
1999-2000 12553
2000-2001 25670
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2001-2002 23410
2002-2003 14750
2003-2004 5956
2004-2005 10943
2005-2006 11967
2006-2007 18036
2007-2008 18029
2008-2009 8439
2009-2010 10431
2010-2011 13698
2011-2012 15580
2012-2013 24027
2013-2014 15500
2014-2015 7000
2015-16 8300
2016-17 10800

HISTORY OF BHEL:-
Licensed to start construction of plant at Visakhapatnam in 1966, BHEL
confronted many obstacles such as water problems, frequent power cuts both at
initial stage as well as at the time when construction was going on. In spite of all
those obstacles the civil and structural work was completed to a mojor extent by
the end of 31st March,1967. the licensed and installed capacity is 23210MT. the
initial capital outlay being Rs.17.5 crores. Later after completion of installation
work BHEL had received orders for the 1st time from M/S BOKARO steel plant and
installation of fabricating machinery like bending rolls, welding equipment etc.
During the first year production, the company has incurred a loss of Rs
27.47 lakhs mainly due to incidence of fixed expenditure apportion able to
production like establishment, depreciation etc. The same loss position was
continued till 1978-1979. the continuous losses put BHEL far from profiteering
companies. The existence of excessive accumulated interest on loan taken from
GOI resulted in heavy loss to the company. In 1978-1979 the company had
suffered a loss of Rs 538 lakhs due to incidence of delayed delivery of equipment ,
excessive increase in cost of imported raw material and other administration
costs. In later years the situation was improved through collective and expeditious
efforts of employees of the company.
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PROFITEERING YEARS FOR BHEL:

After a series of continuous loss years, BHEL, for the first time in its history,
in 1979-1980 has witnesses several significant events both on financial as well as
production fronts. BHEL for the first time in its years of commercial production
attained a break-even level with a marginal profit of Rs 33.09 lakhs as against a
net loss of Rs 129 lakhs projected at the beginning of the year. During 1980-81 the
company for the second consecutive year, earned a net profit (after tax) RS 48.21
lakhs from its operations. This year BHEL Ltd operations include manufacturing of
very critical and sophisticated equipment to core industries. Again in 1981-82 the
company operations resulted in a net profit of Rs 60.19 lakhs as against a
budgeted loss of Rs 20 lakhs. Major pending interest on loan from GOI was
cleared in this year. During 1982-83 BHEL reached 100% target production and
resulted in a net profit of Rs 103.71 lakhs as against the budgeted loss of RS 95
lakhs. With prestigious work orders from Visakhapatnam steel plant for supply of
air and gas separation plants BHEL crosses a target production and its operation
resulated in anet profit of Rs 575 lakhs.

The year 1986-87 is treated to be the dark year of BHEL. Since its entance
into threshold of profit arena, it could not achieve its set motto of beyond billion
barriers. Sinking of a ship carrying bulk of raw material and its components
alackening demand for process equipment etc., resulted in a short fall in
production and hence company suffered a loss of Rs 170 lakhs. Again in 1987-88
BHEL’s projects were successfully fabricated and its profits took an uoward trend
and its operations resulted in PAT of Rs 290 lakhs. It was expected to emerge an
increasing trend in the profits of BHEL for the year 1988-89. after 1987-88 profits
are in decreasing trend. It got a loss of Rs 590 lakhs during 1995-96.Amidst tight
liquidity conditions the company has made a net profit of Rs 1.31 crores (before
tax) and Rs 1 crore after tax during 1997-97, Rs 1.23 crores PBT.

Details of turnover, profitability for the period from 1996-97 to 2013-14 are as
follows:
YEAR TURNOVER PROFITABILITY(before int) (` in lakhs)
1996-1997 29998 2408
1997-1998 29160 2808
1998-1999 21465 1949
1999-2000 12558 492
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2000-2001 25670 2295

2001-2002 23409 2658
2002-2003 14750 -10212
2003-2004 5956 -10669
2004-2005 10943 -3267
2005-2006 11967 -784
2006-2007 18036 -2055
2007-2008 18030 -4492
2008-2009 8439 -12212
2009-2010 10431 -1019
2010-2011 13698 243
2011-2012 15580 1168
2012-2013 24027 3186
2013-2014 15500 -18557
2014-15 7000 -9242
2015-16 8400 -

OVERVIEW OF BHEL HPVP (BHEL-HP&VP):

1. Year of incorporation 1966
2. technical collaboration with SKODA EXPORT 1968
3. Factory inauguration 21st August 1971
4. Commencement of production August 1971
5. Licensed Capacity 23210 tones.
6. Total built up area 53.6 Acres.
7. Total covered area 90,000Sq.M.
8. Shop floor area under cranes 52,000Sq.M.
9. Factory Area 197 Acres.
10.Township Area 151 Acres.
11.Number of employees 1105
12.Number of quarters 1,192.
13.Capacity to handle 23210 MT.

FACTORY AND FACILITIES:

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The factory consist of the main fabrication shop with a floor area of 49,000
Sq.Mts divided into 8 bays in which the main fabrication works like marking,
cutting, rolling, pressing, welding and assembly are carried out.
A machine shop covering a floor area of 9,600 Sq.Mts is divided into 4 bays
in which the machining components is done.
Other facilities such as accumulation station, compressor house, laboratory,
x-ray station, shot blasting station, annealing furnace, captive oxygen plant etc.,
are available.
The factory also has training for imparting training to the incoming
technicians and other employees as well as apprentices. A research and
development centre helps acquisition and use of the latest technology.

MANAGEMENT IN BHEL-HP&VP:
The management Director is head of the organization and is empowered to
take all administration and financial decisions of the company. He is assisted by
Heads of various division like Commercial, Engineering, Internal audit and
Corporate Planning, B.H.P.V. is a functional type of organization.

DIVERSIFICATION:

Originally established for fabrication of process equipment. As a step

towards diversification signed collaboration agreement with M/s L’ Air Liquid of
France in 1971 for manufacture of
 Air & Gas separation plants
 Cryogenic storage systems
 Further diversification into the area of industrial boilers in the range of 50-
200 TPH in collaboration with M/s BHEL in 1981 based on the
recommendation of the working group constituted by DHI.
 Entered into the area of oil & Gas Processing systems in 1990 in
collaboration with M/s B.S engg. Co., USA.

BHEL PRODUCT PROFILE:

1. Pressure Vessels: With the different kinds of steels like Carbon Steel, alloy
steel, Stainless steel and combination thereof.
 20

2. Columns: Both shop and site fabricated columns with or without internals.
3. Heat Exchangers: From low pressure atmospheric fin coolers to high
pressure heat exchangers employing forged head/Channel with test
pressures as high as 500 Kg/sq cm. and all design like U tube, Kettle Type
etc.,
4. Storage Spheres: Storage Spheres of any size and thickness including low
temperature service to handle fluids or gases as such as ammoniac,
ethylene, propylene, LPG etc., to complete erection and stress relieving at
site is also undertaken.
5. Multi Layer Vessels: Ammonia and Urea reactors built with pilwal design to
suit high pressure requirements.
6. Cryogenic Vessel: Cryogenic vessels of double wall construction with
stainless steel inner shell and carbon steel outer casing with evacuation of
inner space to vacuum of 0.001 ton and filled with prelate insulating
material for guaranteed low evaporating rates.
7. Oxygen & Nitrogen Plant: Small Plant which are needed for industries are
handled. BHEL’s Stand and Plants include two ranges like 58 NCUM per
hour and 140 NCUM per hour of oxygen.
8. Boilers: Industrial Boilers up to 200 TPH can be manufactured, supplied,
erected and commissioned by BHEL. The boilers are oil or gas fired, stocker
fired and pulverized coal fired and designed to function using any fuel
single or in combination.
9. Air and Gas Separation Plant: These plants are built mainly for production
of oxygen, nitrogen, organ of for separation of coke over gas, convert gas
for ammonia production. The design includes simple cycle with purification
by absorption are with reversing exchangers and capacities ranging up to
1000 ton per a day.
10.Quality Control: To ensure high quality products and continued customer
satisfaction BHEL has wide range of quality control equipment. It has full
pledged lab with x-ray machines, Gamma ray, Ultrasonic flaw detection,
magnetic crack detection, de-penetrate, surface defects detection etc.,
Under physical testing it has facilities for hard tensile impact test, Hardness
survey, ferrite control check, corrosion test, macro and micro examination.
11.Exports: After commencing Commercial Production in1971-72 and catering
to the national market BHEL undertook the supply of specialized products
to the international market. In this regard it has been fairly successful in the
phase of stiff competition.
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12.Apart from the above, BHEL has also been acquiring technologies on case-
to-case basis from reputed companies whenever necessary. Further in
recognition of its capabilities the following have approved BHEL as
fabrication of conventional process equipment in their patent process.

M/s HALDAR TOPOSE-For Ammonia Synthesis Equipment

M/s STAMI CARBON- For Urea Services.
M/s LUMMUS- For high pressure heat exchangers.
M/s ARAMCO – For refinery equipment.

COLLABORATIONS: entered by BHEL are:

1. Know how the process equipments, storage vessels, pressure vessels, heat
exchangers from SKODA EXPORT (CZECHOSLOVAKIA)
2. Co-operation for setting from SKODA EXPORT.
3. Technical tie up for the design and manufacture of air gas separation plants
up to 1000 tons per day from L’AIR LIQUIDE (Paris) FRANCE
4. Multi layer vessels technology from NOOTER CORPORATION.
5. Cryogenic storage tanks from L’AIR LIQUIDE (Paris) FRANCE.
6. Cryo contains from INDO – BURMA (Petroleum company, Calcutta)
7. Evaporators from ECODYNE (USA) (UNITECH DIV)
8. Sulphate cooking plants paper pulp from KAMYR – AB- SWEDEN.
9. Steam generator up to 200 TPH from BHEL – NEW DELHI.
10.De – aerators from DELAS – WEIR – FRANCE .
11.Air & Gas separation plants, nitrogen wash units & Purge recovery units
from L’AIR LIQUIDE.

Today, BHEL is an ISO 9001 company, which can undertake design, detailed
engineering, fabrication, erection and commissioning and after-sales-service of
equipment for all process plants, turnkey cryogenic plants and storage systems
Industrial Boilers systems and sub-systems in the field of Oil & Gas processing.

OBJECTIVES OF BHEL-HVPV (BHEL-HP&VP):

1. To achieve a leading position in designing, engineering and manufacturing

of high quality process, storage and distribution equipment required for
 22

chemical, fertilizer, petroleum, petrochemical, steel and mines and metals,

atomic energy, power plants, paper and pulp, pharmaceuticals, dairy and
similar sections of economy.
2. To achieve a leading position in designing engineering and manufacturing
of Cryogenic Plant storage and distribution equipment and in creating a
network for distribution of cryogenic liquids.
3. To achieve a leading position in research and development in the different
fields of engineering and technology in the areas of work relating to the
business so as to provide adequate technological backup for business.
4. To give a fair return on the capital employed and to generate internal
resources to finance growth to fulfill internal objectives.
5. Security to set up vigilance from the security point of view near the factory
entrance and should perimeter walls to prevent possible thefts & keep a
watch on movement of employees and records in all departments with
special reference to finance, personnel, materials managements and design
departments to counter hand may attempt to seal way or tamper with vital
records.
6. To prepare a contingency plan to meet the provide strike or go slow
situations keeping in view of the following 2 tests:
 To keep a contingency plan of the workers with a view to
ensure that genuine grievances are redressed at the earliest
possible without waiting for an agitation to grow & then
accept the demands under duress.
 To be in readiness to maintain & security measures to protest
the plan & machinery & the loyal workers to maintain
reasonable level of production even if the union
notwithstanding the possible efforts of the management as
outlines in above resorts to strike or threat strike.
7. Training: To design training programs to develop & training workers, staff &
executives in various skills technique of management & administrative
strategy & to provide necessary skills in the practices of such techniques to
develop employees effectiveness at various levels reorient their capability
& objectives at micro level to be in harmony with organization needs &
objectives at macro level.

PRESENT STRENGTHS:
Excellent Design & Engineering capabilities.
 23

 State – of – the –Art Manufacturing capabilities.

 Accomplished image as a supplier of Quality Products in the domestic and
international markets.
 High degree of customer confidence.
 Technological tie-up arrangements.
 Well trained and qualified work force and Engineers.

HUMAN RESOURCES DEPARTMENT:

The main functions of Human Resource Department are to maintain

Industrial relations among the employees of B.H.P.V. Ltd and to provide training
and development facilities and medical facilities etc.
MISSION: “To cater to the needs of infrastructure by providing total business
solutions to the process industries, DEFENCE, space and other potential areas”.

1.1INTRODUCTION OF BHEL-HPVP PLANT

HPVP- BHEL’s beginning was humble; it had a turnover of just Rs 1.95 cr in 1971-72
when commercial production first commenced. Since then, BHEL has come a long
way and exceeded a turnover of Rs 300 crores expanding its product line to include
high technology equipment and systems like Multi-layer Vessels, Turn Key
Cryogenics Plants, Storage and Distribution Systems, Industrial Boilers, Waste Heat
Recovery Systems, Oil and Gas Processing Systems etc.

This is one company which houses excellent engineering skills, uncompromising

quality control, dedicated erection & commissioning team under one roof, a
combination resulting in India’s self-reliance. BHEL acquired various National and
International quality accreditations such as ASME, National Board etc.

Today, after merging with BHEL, BHEL-HPVP stands with vast manufacturing
capability and can manufacture process equipment of almost any size.
 24

1.2BHEL-HPVP PICTORIAL VIEW

HPVP is easily pictured by dividing the organization into the following divisions to
carry out its functions.

Engineering
Marketing & Commercial
Research and development
Production and Services
Erection Services
Material Management
Quality
Finance
Personnel and Administration

Production and Services include planning, production technology, welding

technology and production. Production shops are classified as feeder shops and
assembly shops. M.P shop, LMS, HMS, Press shop, Shells shop, and Nozzle shops
will under feeder shops while Valve trays, PV, HE, and CP will come under assemble
shops. HPVP is having a shop floor area of over 56000 sq. m.

1.3WORKSHOPS

Parts that are used for assembling in Production shop are made in feeder shops.
The feeder shops are subdivided into six types, namely

MP Material Preparation
LMS Light Machine Shop
HMS Heavy Machine Shop
Press Bending & Pressing of Plates
Nozzles Pipe preparation & Welding
Shells Rolling & Welding Operation

1.3.2 PRODUCTION SHOPS

 25

The parts made in the feeder shop assembled in production shop. The following
five shops come under production shop.

PV Pressure Vessels
HE Heat Exchangers
CP Cryogenic production
CSPI Combustion system products
CSPII Combustion system products

1.4SALIENT FEA TURES OF DIFFENRENT SHOPS

1.4.1 MATERIAL PREPARATION SHOP:

Plate material drawn from stores is cut to size and delivered to concerned
production shops. Gas cutting for carbon & low alloy steels can be done up at 50
mm thick, square cut, single bevel cut, with or without nose, double bevel cut with
nose can be directly cut plasma cutting stainless steel plates up to 80 mm thick.

1.4.2 LIGHT MACHINE SHOP:

n this shop, all small components machining such as marking holes in tube sheet,
and drilling planning of small items will taken up here. Nozzle to flange welding is
done in this shop.

1.4.2.1 MACHINERY USED IN LIGHT MACHINE SHOP:-

Small and medium lathes
Auto lathe
Radial drilling machines
Small horizontal boring
Medium horizontal boring
Heavy lathe
Plane drilling machine
CNC drilling machine
CNC deep hole drilling machine (HMT)
Cylinder grinding machine
Horizontal surface grinder
CNC lathe machine
 26

1.4.3 HEAVY MACHINE SHOP

Machining, drilling, and surfacing of components which are more largely than the
capacity of L.M.S will be carried out here. The shop is equipped with one 5000mm,
one 4000mm, one 2500mm diameter heavy double column vertical turning and
boring machines besides a number of smaller machines. Horizontal boring machine
is capable of bore max. Depth 2000mm.

1.4.3.1MACHINERY USED IN HEAVY MACHINE SHOP

Radial drilling 2no
Universal drilling 1no
Single column planning 1no
Double column planning 1no
Large horizontal boring 2no

1.4.4PRESS SHOP
The dished ends required for vessels are prepared with single plate and with petal
construction in this shop. Hydraulics presses upped max capacity of 1600T used for
pressing dished ends, petals of storage spheres and various other parts. Max
diameter of dished ends that can be prepared in the shop is 5000mm and max
thickness that can be handled be ion single stroke is 80mm, while upped 120mm
thick plates are also parade in stages.

1.4.4.1MACHINERY USED IN PRESS SHOP

Section bending roll ----------- 1no
Pneumatic hammer ----------- 1no
Pipe bending ----------- 2no
Hydraulic press 250 T ----------- 1no
Hydraulic press 400 T ----------- 1no
Hydraulic press 1600 T ----------- 1no
Bending roll ----------- 1no

1.4.5 SHELLS SECTION:

In this shop, plates are rolled to required size and long seam and circumferential
seam welding will be done. Major welding is done by submerged arc welding
 27

process. Max thickness welding done in this shop is 220mm. special narrow gap
welding machines available in this shop. This can weld upped 350mm thick with
groove width about 20-24mm.

1.4.5.1 MACHINERY USED IN SHELL SHOP

1. Plate edge planning 1200x80mm thick -------- 2 no.

2. Plate bending rolls 235x3025mm thick -------- 1 no.
3. Plate bending rolls 4000x22mm thick -------- 1 no.
4. Plate bending rolls 3000x75mm thick -------- 1 no.
5. Submerged arc welding -------- 3 no.

1.4.6 PRODUCTION SHOPS:

1.4.6.1 PRESSURE VESSEL ASSEMBLY:

This shop had all the attachments that are to be made on the shell as per drawing
such as nozzle, internal, external supports are welded. In this shop mainly vessels
which are used in high pressure application are available in this shop. To obtain the
required thickness, 6mm sheets are wrapped and welded layer by layer.

TYPES OF DISHED ENDS: Generally three types of dished ends are used, they are:

a) Hemispherical
b) Tory spherical
c) Ellipsoidal

1.4.6.2 HEAT EXCHANGERS ASSEMBLY

In this shop heat exchangers are fabricated. Tube bundles and shell assembly I s
fabricated. Tube to tube sheet welding is mostly done with GTAW process. From
medium to high pressure heat exchangers with test pressures as high as
450kg/sq.cm and temperatures ranging from -65 to 900C are handled in this shop.
Titanium lined vessels fabricating was done in this shop.

1.4.6.3 CRYOGENIC PRODUCTION

 28

Tanks and vessels for sub-zero temperature supplications are fabricated here. Not
only cryogenic tanks are produced in this section but also vast variety of equipment,
which include: Air separation units of capacity ranging from 50Nm/hr. and up to
2200TPD produce oxygen, nitrogen & argon are available. Storage tanks of
horizontal & vertical designs starting form 500 liters and above up to 2, 00,000 liters
capacity to hold liquid oxygen, nitrogen, argon and other vacuum insulate.

1.5 BHEL-HPVP PRODUCTS

Products manufactured at BHEL – HPVP plant include:-

a) PRESURE VESSELS:-
With different kinds of steels like carbon steel, stainless steel, clad steel, Monel etc.
and any combination of there off.

b) COLUMNS:-
Both shop and site fabricated columns with or without internals.

c) HEAT EXCHANGERS:-
From low pressure atmospheric fin coolers to high pressure heat exchangers
employing forged heads channels with test pressure as high as 500kg/sq.cm and
designs like U-tube, kettle type, etc.

d) STORAGE SPHERES:-
Of any size (up to 60m), any thickness (up to 60mm) to handle any fluid or gases
like ammonia, ethylene, propylene, LPG etc.

e) HIGH PRESSURE MULTILAYER VESSLES:-

Ammonia and urea reactors built ply wall design to suit high pressure of the order
of 300kg/sq.cm hydraulic test pressure.

f) CRYOGENIC VESSELS:-
There are double wall construction with stainless inner shell and carbon steel outer
casing with evacuated inter space filled with pearlier (insulating material) for
guaranteed low evaporation rates.

g) AIR & GAS SEPERATION PLANTS:-

 29

These plants are custom built mainly for production of oxygen, nitrogen, argon and
for separation of coke oven gas, converter gas for ammonia production. The design
include simple cycle with purification by absorption or with reversing exchangers
and capacities handling different feed stocks like bamboo, hard woods etc.

h) EVAPORATION PLANTS:-
Plants designed for the concentration of solids in different types of spent liquors in
multiple effect evaporation bodies using steam heating. The application includes
paper & pulp and alumina industries.

All the above equipment’s are fabricated according to standard code to ensure the
safety during testing and service. The most commonly used codes are ASME,
BS5500, AD Mark Blotter, IS 2825, TEMA, ANSI, API etc. For fabricating all the above
equipment, welding is the best suited operation in terms of strength and safety
with standing at high pressure.

In B.H.E.L-HP&VP, production is also mostly carried out by welding. It involves lot

of work including preparation of technologies, procedure, conducting tests and
selecting suitable processes and suitable consumables. These works are carried out
by the WT department.

1.6 WELDING TECHNOLOGY

As BHEL-HPVP plant is a fabrication industry, it is mainly based on welding
technology. All welding operations done in the company are governed by welding
technology department. For its manufacturing techniques welding technology has
been playing a vital role. Welding technology department prepares the procedures
to be followed. Welding technology department will take care of all requirements
of welding in production shops.

Its main function is to release the required technology to shops to follow and
perform their job. The other functions are estimating welding cost, replying to
commercial enquiries and replying constructional problems. The equipment and
consumables required to the shop will also be selected by the same department.
The welding technology plays a vital role in any fabrication industry.
 30

Keeping this fact in mind, BHEL-HPVP plant has already setup a welding technology
department managed by a team of highly qualified and efficient personnel. This
department handles all the welding activities in the industry.

BHEL-HPVP has mastered almost all welding processes including TIG and MIG. The
types of jobs tackled includes high pressure piping, tube to tube sheet joint, high
thickness multilayer welding, fabrication of clad vessels etc.

Welding technology department prepares the procedures to be followed to plan

and carry out the following functions of the welding technology department.

Preparation, revision and Approval of welding procedures specifications and

welding datasheets.

Procurement and Qualification of the Welding consumables.

Qualification, documentation of welding procedure qualification records.

Qualification documentation and maintenance of welder or welding operator

records.

Studying and solving quality problems related to welding and training of welders.

Release of welding technology documents.

In order to perform planning and execution of the various functions welding

technology is basically divided into five groups so that it may effectively dispense
its duties:

Enquiry group
Technology group
Qualification group
Consumables group
Trouble shooting group

a) ENQUIRY GROUP:
 31

Enquires or tender invitations received by the commercial departments are sent to

the enquiry group in the welding technology department for feasibility study. These
groups comprises of persons with a considerable experience in the departments so
that they may access whether or not a job can be carried out successfully. Further,
they also estimate the cost of welding consumables so that the cost of welding can
be included in the price to be quoted to the customer, prior to receiving the sale
order.

b) TECHNOLOGY GROUP
This group has got the task of deciding the welding parameters to be used. A
suitable welding procedure specification (WPS) is selected depending upon the two
parts to be joined. Evert WPS is based on a supporting procedure qualification
record (PQR) whose number is mentioned on the WPS. Besides, designing the
welded joint, the consumables group also raises the material indents for the
welding consumables (electrodes) required. These MI’s are forwarded to the
material procurement.

c) QUALIFICATION GROUP:
This group acts in response to the request forwarded to them by the technology
group concerning the qualification of any new welding procedure. They conduct
tests, invite the concerned inspectors and record the various readings from various
tests performed on the welded joint, in the quest fo4r qualifying the new
procedure. Secondly, they also perform the task of qualifying the welder in hand.
They ensure that all the welders are given practice in performing their duties.

d) CONSUMABLE GROUP:
This group keeps the track of all the consumables required. It clubs together
requirements received from the technology group.

e) TROUBLE SHOOTING GROUP:

The group shooting group shall take care of smooth execution of welding
operations on various products in production shops and erection sites in
association with production, quality control and production engineering personnel.

This group shall arrange for issue of welding technology Documents to the
concerned. Also the group shall participate in the investigation of the causes of
failure in welds and recommended corrective measures to avoid recurrence.
 32

ABOUT HPVP

After coming as a manufacturing plant in 1966 at Visakhapatnam, Andhra Pradesh

as a Public Sector Undertaking under the Department of Heavy industry (DHI) to
manufacture and supply custom built process plant equipments for Core Sector
Industries like Fertilizers, Oil Refineries, Petrochemicals, Steel Plants, Nuclear,
Space, Defence and Power Sectors with the technical collaboration of SKODA
Export, Czechoslovakia. The Company is located on NH-5 near to Airport, Railway
Station and Sea Port in Visakhapatnam, Andhra Pradesh. The Company is spread
over a total area of 386 Acres.

HPVP is a premier manufacturing unit specializing in design, fabrication, supply and

erection of Heat Exchangers, Columns, Storage Spheres, Reactors and Strippers,
Multilayer Vessels Reactor Regenerator Package, Air Separation Plants, Purge Gas
Recovery Units, Oxygen Plants, Nitrogen Plants, Hydrogen Plants, Sulphur Recovery
Units, Crude Stabilization Units, Mounded Storage Systems, Compact Heat
Exchangers, On Board Oxygen generating system etc., to Oil Refineries, Fertilizer
Plants, Steel Plants, Defence sector etc., and has been contributing to the Nation
building during the past four decades. The Company has good potential to cater to
the growing needs envisaged in Power, Oil and Gas, Nuclear, Defence and other
strategic sectors in future. Also, HPVP is highly reputed for the Quality and
reliability of its products and possesses several National & International Quality
accreditations besides ISO 9001:2000 certification.

Erstwhile BHEL-HP&VP started production in the year 1971-72 with a turnover of

just Rs.1.95 Cr and crossed Rs.300 Crs in the year 1996-97. The Company
contributed around Rs. 1000 Crs to the national exchequer during the past 20 years.

HPVP (erstwhile BHEL-HP&VP) is the largest fabricator of process equipment in

India for the petroleum, fertilizer, chemical and allied industries. It is a unit of
maharatna Central Public Sector Enterprise – Bharat Heavy Electrical Limited.
 33

Situated in the city of destiny, Visakhapatnam on the eastern sea coast of the
Deccan plateau, HPVP is accessible by road, rail, sea and is well connected to all
metropolitan cities by air.

BHEL-HPVP has been selected for the study. The topic selected is “A study on
financial statements analysis” with reference to BHEL-HP&VP.

MARKET PROFILE:
This covers the product range of customers profile and competitors profile.

CUSTOMER PROFILE:
BHEL’S clients includes-
 Public
 Private
 Co-operative

Sector organizations in almost all the core sectors of economy such as all the

1. 32 fertilizer plants
2. 22 petroleum refineries
3. 12 petrochemical complexes.
4. All major integrated steel plants in India
5. Oil and Gas
6. Nuclear and DEFENCE etc.

Other major customers are from paper, power, non ferrous, chemicals,
pharmaceuticals, synthetic fiber, coal, dairy, space sectors.
1. IOCL(PANIPAT)
2. FACT(UDYOGAMANDAL)
3. GAIL(AURAIYA)
4. IOCL(KANDZA)
5. ASSE(SINGAPORE)
6. IEEEO(PHULPHUR)

COMPETITOR PROFILE:
In the area of process plant:
 34

1. L&T -Walchand Nager Industies

2. Grengg -Bhilai engineering, Ahmedabad
3. Lloyds steel -Tessmaco,Kolkata
4. BHEL -ISGEC Jhon Thomsan, Yamuna nagar
5. Godrej -Reliance Heat Transforms, Mumbai.

In the area of cryogenics:

INDIAN:
IOCL - Calcutta
ICCP - Kanpur
INOX - Baroda
Shangai’s oxygen - Mumbai
L&T - Mumbai
Lindi process systems - Baroda
VJU - Mumbai
Essar - Gujrat

FOREIGN:
LINDE - Germany
BOC - UK
Air products - US&UK
Kobe - Japan
Hitachi - Japan
HOPM - China
Pracair - US

In the area of combustion system:

1. ISGEC - John Thompson, Yamuna nagar

2. Babcock - Pune
3. Ignifluid boilers - Chennai
4. BHEL - Trichy
5. ABL - Durgapur
6. L&T - Mumbai

VINASSE FIRED BOILERS:

 35

1. KTI - New Delhi

2. Thermax - Pune

FRIED HEATERS:
1. Eil - New Delhi
2. KTL - New Delhi
3. Thermax - Pune
4. Kaveri L&T - Mumbai
WASTE HEAT SYSTEM GENERATORS:
1. BIIKI
2. L&T
3. Babcock Thermax

IN THE AREA OF SYSTEMS:

INDIAN:
1. L&T
2. Babcock Tliarmax - Kanari
3. GIMMCO - SPIC
4. ICD - Gajraj
5. BHEL - Triveni

FOREIGN:
1. HHI - Korea
2. RTZ - Netherlands
3. Technical - Italy

MANPOWER: as on 01/05/2017
1. EXECUTIVES - 220
2. SUPERVISORS - 79
3. WORKMEN& STAFF - 702
TOTAL --------------------------- 1001
4. Trainees - 30
5. Contract Labour – 295
Total - 1326

subject To be process from Date of progress

 36

Suggestion scheme 1st Jan 26th

Annual Reports to submit to 1st Jan Before 31st Jan
inspect of factor’s
Observation of Anti treasure dug 27th Jan 30th Jan

Return Back up imprest (DBF) of 25th March 31st March

4,000/- cash wages
Advance of Imprest in out(DBF) of 1st April 1st April
4,000/-
Martyrs day observation 1st May 21st May
Medical Checkup to workers 1st July 31st July
Suggest Shewee 1st August 15th August
Ayudapooja 1st October During October
Observation Community Harmon 10th November 19th to 25th Nov
weal flag day
Cloth loan for APCO co-optex etc 1st December 12th Jan
Factory license renewal 1st December 31st Dec
Labour welfare board fund 1st December 31st Jan
Notification of Occupier Time to Time
Notification of factory manager Time to Time
Notification of CWO/WO Time to Time
Notification of Safety Officer Time to Time
Renewal of EDLI (Group Insurance Time to Time
scheme)
Renewal of Oriental Insurance Time to Time
Scheme
 37

REVIEW OF LITERATURE

WELFARE MEASURES IN INDIAN COMPANIES

Government of India did very little in the field of employee’s welfare till
Second World War. It was during the Second World War that the Government of
India, for the first time launched schemes for employees’ welfare in their
ordinance, ammunition and to war industries to increase productivity of the
workers and keep up their morale. With the achievement of independence and
emergence of republic of India, combined with the idea of welfare state and a
socialistic pattern of society, efforts in this direction were intensified. Since then,
various legislations were passed bringing the matter connected with workers
more and more welfare oriented within the preview of the legislations.

These legislations are given below:

FACTORIES ACT 1948: Prior to Factories Act 1948, various minimum

standards as regards lighting, ventilation, fencing of machines, control of
temperature, safety provisions etc., were laid down in Factories Act. In the latest
Factories Act 1948 various welfare to be undertaken by the employers have been
laid down such as washing facilities, first-aid appliances, canteens, restrooms,
crèche etc., . The Act provides for the proper seating arrangement for the workers
in any factory to be associated with the management in regard to welfare
arrangement for the workers.

The Act also requires the owner of the factory employing 500 or more
workers to appoint employee welfare officers and state Government have given
powers to prescribe the duties, responsibilities, qualifications and conditions of
service etc., of these officers. Provisions for Welfare of workers also exist in Indian
Dock Labor’s Act 1934. The Mines Act of 1952, Plantation Labour Act of 1951,
Merchant Shipping Act 1958. Motor Transport Workers Act 1961, the Contract
Labour (Regulation and Abolition) Act of 1960.

Government of India also established Employee Welfare funds in

Government undertaking. At present 269 industries establishments are in
operation on voluntary basis. Employee Welfare Fund in Mines was established.
 38

The Welfare activities covered under these funds are housing public health,
sanitation, medical, education and recreational facilities for workers and their
dependent. It also covers provision of accident and other benefits.

Welfare activities in Railways and Ports, Central board for Workers

Education was also set up. Under this central board for workers education 37
regional centers were established to cover important industrial centers, which
provide grants in aid to trade unions and institutions of employees and workers
and educationists.
Classification of labour welfare:
1. Statutory Welfare Measures
2. Non Statutory
3. Intra Mural
4. Extra Mural

Statutory Welfare Amenities:

Those which have to be provided irrespective of size of
establishment,
e.g.: Drinking Water.
Those to be provided subject to employment of a specified number
of persons,
e.g.: Crèche
again in the case of certain amenities, there are no minimum
standards laid down as in the sphere of housing, medical treatment, recreation,
transportation and educational facilities. This is left to the discretion of the
employer.

Statutory Welfare Measures:

1. Washing Facilities
2. Facilities for storing and drying clothing.
3. Facilities for sitting
4. First-Aid appliances
5. Canteen
6. Shelters, rest rooms and lunch rooms
7. Crèches
8. Welfare officers
 39

1. Washing Facilities:
a) In every factory:
 Adequate and suitable facilities for washing shall be provided and
maintained for use of the workers therein.
 Separate and screened facilities shall be provided for the use of
male and female workers.
 Such facilities shall be conveniently accessible and shall be kept
clean.

b) The State Government may, in respect of any factory or class or

description of factories or of any manufacturing process, prescribe
standards of adequate and suitable facilities for washing.

2. Facilities for Storing and Drying Clothing:

The State Government may, in respect of any factory or class or
description of factories make rules requiring the provision therein of
suitable places for keeping clothing not worn during working hours
and for the drying of wet clothing.
3. Facilities for sitting:
a) In every factory suitable arrangements for sitting shall be provided and
maintained for all workers obliged to work in a standing position, in
order that may take advantage of any opportunities for rest which may
occur in the course of their work.
b) If, in the opinion of the chief inspector, the workers in any factory
engaged In a particular manufacturing process or working in a particular
room are able to do their work efficiency in a sitting position, he may, by
order in writing, require the occupier of factory to provide before a
specified date such seating arrangements as may be practicable for all
the workers so engaged or working.
c) The Government may be notification In the official gazette declare that
the provisions of sub section shall not apply to any specified factory or
class or description of factories or to any specified manufacturing
process.

4. First-Aid appliances:
There shall in every factory be provided and maintained, so as to be
readily accessible during all working hours’ first aid boxes or cupboards
 40

equipped with the prescribed contents and the number of such boxes or
cupboards to be provided and maintained shall not be less than one for
every 150 workers ordinarily employed in the factory.
a) Nothing except in the prescribed content shall be in the first-aid or
cupboard.
b) Each first-aid box or cupboard shall be kept in the charge of separate
responsible person.
c) In every factory wherein more than 500 workers are ordinarily
employed shall be provided and maintained an ambulance room of the
prescribed size, containing the prescribed equipment and in the charge
of such medical and nursing staff as may be prescribed and those
facilities shall always be made readily available during the working hours
of the factory.

5. Canteens
a) The State Government may make rules requiring that in any specified
factory wherein more than 250 workers are ordinarily employed, a
canteen or canteens shall be provided and maintained by the occupier
for the use of the workers.
b) Without prejudice in the generality of the foregoing power, such rules
may provide for
 The date by which such canteen shall be provided.
 The standard in respect of construction, accommodation and other
equipment of the canteen.
 The food stuffs to be served therein and the charges which may be
made therefore.
 The delegation to the chief inspector to such conditions as may be
prescribed, of the power to make rules under clause(c).

6. Shelters, Rest rooms and Lunch rooms:

In every factory wherein more than 150 workers are ordinarily
employed, adequate and suitable shelters or rest rooms and suitable lunch
rooms, with provision for drinking water where workers can eat meals brought
by them, shall be provided and maintained for the use of the workers.
 41

Provided that any canteen maintained in accordance with the

provisions of section 46 shall be regarded as part of the requirement of
subsection:
a) Provided further that where a lunch room exists no worker shall eat any
food in the work room.
b) The shelter or rest rooms or lunch rooms to be provided under sub
section-(1) shall be sufficiently lighted and ventilated and shall be
maintained in cool and clean conditions.
c) The State Government may:
 Prescribe the standards in respect of constructions,
accommodation, furniture and other equipment of shelters,
restrooms and lunch rooms to be provided under this section.
 By notification in the official gazette, exempt any factory or
class or description of factories from the requirements of this
section.
7. Crèches:

a) In every factory wherein more than 30 women workers are ordinarily

employed there shall be provided and maintained a suitable room for
the use of children under the age of six years of such women.
b) Such rooms shall be provided adequate accommodation, shall be
adequately lighted and ventilated, shall be maintained in a clean and
sanitary condition and shall be under the charge of women trained in
the care of children and infants.
c) The State Government may make rules.
 Presenting the location and the standards in respect of
construction, accommodation, furniture and other equipment
of rooms to be provided under this section.
 Requiring the provision in factories to which the section
applies of additional facilities for the care of children belonging
to women workers including suitable provision of facilities for
additional facilities for washing and changing their clothing.
 Requiring the provision in any factory of free milk or
refreshment or both for such children.
 Requiring that facilities shall be given in any factory for the
mothers of such children to feed them at the necessary
intervals.
 42

8. Welfare Officers:
a) In every factory where in 500 or more workers are ordinarily employed
the occupier shall employ in the factory such number of welfare officers
as may be prescribed.
b) The State Government may prescribe the duties, qualifications and
conditions of service of officers employed under sub-section(1).

Non Statutory Welfare Measures:

The Non Statutory Welfare Measures are those given by the
employers voluntarily to motivate the employees for better performance and
increased productivity. The Non Statutory Welfare Measures and provided by
most of the Indian companies are listed below:

1. Retirement benefits
2. Medical care
3. Compensation for injuries and disablement
4. Subsidized food and housing
5. Educational facilities
6. Payment of Life Insurance Premium
7. Maintenance of canteen
8. Assistance to co operative societies etc.

There is no end to the number of voluntary benefits offered by the

companies which vary from company to company.

Intra Mural:
Consists of such welfare schemes provided within the factories as
medical facilities, compensation for accidents provision of crèche and canteens,
supply of drinking water, washing and bathing facilities, provision of safety
measures such as fencing and covering of machines, good layout of the machinery
and plant, sufficient lighting, first aid appliances, fire extinguishers, activities
relating to improving conditions of employment, recruitment and discipline and
provision of provident fund, pension and gratuity, maternity benefits etc.
 43

Extra Mural:
Cover this services and facilities provided outside the factory such as
housing accommodation, indoor and outdoor recreation facilities amusement and
sports, educational facilities for adults and children, provision of libraries and
reading rooms.

Employee Welfare: Legal Side

The Government of India, with a view to enhancing welfare and well being
of workers, has laid down elaborate provisions for labour welfare under different
labour laws. The important laws in this regard are:

1. The Factories Act,1948: It provides for:

a) Washing facilities.
b) Facilities for storing and drying clothing.
c) Facilities for occasional rest for workers who are obliged to work
standing.
d) First-aid boxes or cupboard one for every 150 workers and the
ambulance facility, if there are more than 500 workers.
e) Canteen, if there are more than 250 workers
f) Shelters, rest rooms and lunch rooms, if over 150 workers are
employed.
g) Crèche, if 30 or more workmen are employed.
h) Welfare officer, if 500 or more workers are employed.
i) The scale of standards pertaining to various welfare activities are
laid down the State Government.

2. The Plantation Act, 1951: It makes provisions for:

a) A canteen, if employing 150 or more workers.

b) Crèche, if employing 50 or more women workers.
c) Recreational facilities for workers and their children.
d) Housing facilities for every worker and his family residing on the
plantation in accordance with the prescribed standards lay down
by the State Government.
e) Medical aid to workers and their families, sickness and maternity
allowance.
 44

f) Making available to workers such number and type of umbrellas,

blankets, raincoats or other like amenities for their protection
against rain or cold, as prescribed by the state government.

The respective state government lay down the scale of standards

for aforecited facilities where plantation is located.

3. The Mines Act, 1951: It provides for the following:

a) Shelters for taking food and rest if 50 or more workers are

employed.
b) First-aid boxes and rooms if more than 150 workers are
employed.
c) A canteen, if 250 or more workers are employed.
d) A crèche, if 50 or more women workers are employed.
e) Pit- head baths equipped with showers, sanitary latrines.
f) Welfare officer if 500 or more workers are employed.

4. The Motor Transport Workers Act, 1961: The Motor transport

undertaking are required to provide for their workers.

a) First aid Facilities equipped with the prescribed contents to be

kept in every transport vehicle.
b) Medical facilities and operating and halting centers.
c) Canteen, if employing 100 or more workers.
d) Where motor transport workers are required to halt at night.
e) Uniforms, raincoats to drivers, conductors and line checking staff
for protection against rain and cold.
f) Prescribed amount if working allowance to the staff mentioned
above.

5. The Merchant Shipping Act, 1958:

a) Crew accommodation.
b) Supply of hygienic drinking water.
c) Supply of necessary items like bedding, towel etc.
d) Maintenance of first-aid facilities, availability of doctors and
provision of medical stores.
 45

e) Appointment if a seamen’s welfare officer.

f) Provision of hotels, clubs, canteen, library, educational facilities,
etc.

6. Dock Worker’s (safety, health and welfare) Scheme, 1961:

a) Urinals and latrines.

b) Washing and bathing facilities.
c) Rest shelters and call stands.
d) Drinking water and canteen facilities.
e) First-aid facilities.

7. The Contract Labour (Regulation and Abolition) Act,1970:

a) Canteen, if employing 100 or more workers.

b) Rest rooms.
c) Washing facilities.
d) First-aid facilities.

8. Inter State Migrant Workmen (Regulation and abolition) Act, 1970:

a) Suitable conditions of work.

b) Suitable residential accommodation to workers during the period
of their employment.
c) Such protective clothing as may be prescribed.

Evolution of Social Security Measure

Social security forms an important part of Labour Welfare providing the

‘security’ which is of great importance to worker’s and his family’s well being.

The ILO definition is basically that “It can be taken to mean protection
which society provides for its members, through a series of public measures,
against the economic and social distress that otherwise would be caused by the
stoppage or substantial reduction of earnings resulting from sickness, maternity,
employment injury, unemployment invalidity, old age and death; the provision of
medical care; and the provision of subsidies for families with children.”
 46

The Government usually takes steps to protect its citizens against these
risks but it has found it necessary, in some cases, to take the help of employers, to
ease the financial and administrative burden.

In Beveridge’s opinion the term social security is used “to denote the
security of an income to take the place of earnings when they are interrupted by
unemployment, sickness or accident, to provide for retirement through age, to
provide for loss of support by the death of another person and to meet an
exceptional expenditure such as those connected with birth, death and marriage.”
Social Security is provided either by way of insurance or assistance from the state,
from its own resources.

Workmen’s Compensation Act, 1923:

This was India’s first social security legislation passed in 1923 to provide
employment injury compensation to industrial workers. The Act was amended in
1962 raising the wage limit to Rs. 400 per month, and at present by the
amendment of 1976 the wage limit is fixed at Rs. 1000 per month. The
compensation limits in case of death were raised from 10,000 to 30,000 and for
permanent and total disablement from 14,000 to 40,000 by the same
amendment. The term ‘workers’ in the Act refers to those employed in factories,
mines, plantations, construction work and other hazardous occupation, except
those covered by employee’s State Insurance Act, 1948 and clerical employees.
The compensation is related to the extent of his injury or death, but the employer
is no responsible if a work man sustains his injuries under the influence of drugs,
drinks, etc. Length of service is not a consideration for quality of compensation or
eligibility except for occupational diseases, where it is six months, and within two
years of termination in the case of an employee whose services have been
terminated. The Act also provides for half monthly payment for temporary
disablement, but the compensation cannot exceed half monthly wages. A
workman cannot claim damages in civil court and still except to benefit from the
Act it is administered by a commission, appointed by the government.

The National Commission on labour (1969) recommended that workers

covered under the Act including supervisors should be eligible for compensation,
without any wage limit. It also suggested the formation of a central fund for
 47

worker’s Compensation to be controlled by the Employee’s State Insurance

Corporation. The first recommendation is being gradually implemented while the
second is under consideration.
Employers and Trade unions have role to play in bringing down
number or industrial injuries and compensation Act, 1923.

Maternity Benefit Act, 1941-1961:

The initiative to provide legislation for maternity was first taken by a few
states, followed by the Mines Maternity Benefits Act, 1941 which applies to
women in factories, the Welfare Commissioner in coal mines and director General
(safety) in other mines. It allows for 6 weeks leave before and after delivery
during wage. She also gets a medical bonus of Rs 25 if the employer does not
provide for pre-natal, confinement and post-natal medical care. To avail these
benefits she should have completed at least 160 days of service during the
preceding 12 months. Both these schemes are based on the principles of
employer’s liability.

The Seaman’s Provident Fund Act, 1966:

The Scheme framed under the Act is administrated by a tripartism board of

representatives of seamen, employers and the central government. It applies to
seamen employed as crew of a ship under the Merchant Shipping Act, 1958,
excluding certain categories. They contribute 8% with an equal contribution from
the employer and also entitled to a fall refund on retirement or after 15 years of
membership. In the case of shorter periods, as in the case of coal miner’s
provident fund the employer’s contribution varies. Advances are allowed for
specific purposes.
 48

EMPLOYEE SATISFACTION IN M/s BHEL-HP&VP:

Labour Welfare is a desirable state of existence, involving the psychological,

mental, moral and emotional well being of workers. It implies the welfare workers
in family and his community. It is relative in time and place and is dynamic and
elastic, depending on the value systems, degree of industrialization and general
standard of the socio-economic development of people.

Welfare is a state of living of individual group in a desirable relationship

with the total environment, technological, economical and social. The Indian
Constitution declares our country as a welfare state where the government takes
a number of measures to use the general standard of living of the people. Welfare
measures pay a good dividend in the long run for they contribute in a large
degree towards efficiency will definitely improve. If the management looks far
beyond these basic needs & conceive the real & most vital motivational factors
like economic, better working conditions, health, safety which contribute to the
growth in the workers performance level & increase the productivity.

BHEL is a public sector company is under the Ministry of Heavy industry

providing employment to a large number of Technological & Non Technical
persons. It is good company for studying as it as a rigid hierarchy where the scope
for growth is through a combination of experience & merit.

TRAINING:

The training and development institution of the company conducted 118 in

house programs and employees for participating in 61 programs conducted by the
external agencies.
These include some special job related programs like presentation programs on
Gas Analyzers control values, customer programs on design fabrication and
quality control of pressure vessels for HPCL and IOCL.

WELFARE:

Program like de-addiction help for emotionally distributed employees,

mentally retired etc., were continued. In addition, welfare programs like family
 49

planning, blood donation, campus wax conducted in association with the

associated medical agencies.

The company is providing the following statutory facilities to the employees

in the interest of the well being of the concerned employees and in order ensure
that they contribute their best to the organization.

EMPLOYEE WELFARE AMENITIES:

1. Township area: 151 acres.
2. Number of Quarters: 1192.
3. 20 bed hospital.
4. English Medium School with Central Syllabus.
5. Telugu Medium School with Andhra Pradesh State Syllabus.
6. Vocational Training center for mentally handicapped.
7. Community center for cultural activities and sports.
8. Kalyana Mandapam.

POLLUTION CONTROL:

The company does not contribute either directly or indirectly to the

pollution hazards it does take proper and planned preventive measures like
treatment of the sewage water as per the standards prescribed by the pollution
boards maintaining and supporting extensive vegetation around the work
premises and encourage regular plantation and supporting keep of trees and
other plants in township. During the year, 1200 number of saplings was planted
under a forestation program.

STATUTORY WELFARE AMENITIES IN BHEL (B.H.P.V. LTD)

The B.H.P.V LTD., provides the following statutory welfare activities to the
employees in the interest of the well being if its employees in order to ensure that
they contribute the best to the organization.

There are only for general information and keeping in view of the changes
in the internal condition, external environment and if it is necessary in overall
 50

interest of the company and the employees, Management has every right to
make any change in the amenities that are being provided as stated here in.

CANTEEN:

BHEL (B.H.V.P LTD.,) provided full pledged canteen with all modern facilities
for the benefit of all employees where served at subsidized charges. Lunch, dinner
are served at the canteen for “A”, “G” and “B” shift employees. Breakfast is
supplied to ‘A’ and ‘G’ shift employees. Tea is served twice during the shift time at
the respective working spots. For ‘B’ shift employees along tea, snacks are
supplied at subsidized rate.

REST ROOMS:

The management provided suitable rest rooms and lunch room with
provision for drinking water for their employees in their departments.

The management also provided a lunch room for workers and executives
separately.

VENTILATION &ACCOMMODATION:

There is effective and suitable provision for securing and maintaining every
workshop to sufficient ventilating and the circulation of fresh air to its floor.

DRINKING WATER:

The management providing and maintaining suitable points conveniently

situated for all employees and sufficient supply of drinking water at every
workshop.

WELFARE PROVISIONS:

1. Washing facilities.
2. First Aid appliances.
 51

3. Crèche

Washing Facilities:

The management provided washing facilities at various departments and

maintained for use of employees. They are maintained separately for male and
female employees.

First Aid Appliances:

As per 1948 Factories Act, management of the BHEL (Formerly B.H.P.V.) Ltd
is providing and maintaining the first aid boxes and cupboards equipped with the
prescribed contents, as to be readily accessible all working hours. The management
is providing first aid facilities in every workshop. And there is a well equipped
hospital.

For emergency, the ambulance facility is also provided by the company.

Crèche:

The management maintaining a crèche in the adjustment to the hospital for

the women employees and a trained Aya is appointed to look after the children of
the employees. And the management also provides other benefits as per the
provisions of Factories Act, 1948.

Medical:

BHEL ( Formerly B.H.P.V. Ltd) takes care of the medical needs of the
employees and their dependants. BHEL-HP&VP maintains a full-fledged 20 bedded
hospital with 12 doctors in the township with adequate medical and paramedical
staff for benefit of employees residing in township and surrounding areas. Round
 52

the clock medical attendance is provided in the BHEL-HP&VP hospital equipped

with laboratory, x-ray, operation theatre, eye clinic, ambulances are kept available
round the clock etc., part time specialists numbering 3 in various disciplines of
medicine have been appointed as consultants and they visit the hospital
periodically attend to the patients refer to them by the company doctors for the
specialist treatment. An amount of Rs.70lakhs per annum is the expenditure on the
provision of treatment of medical facilities to the employees.

MATERNITY BENEFITS:

For all the women employees who are eligible for Maternity Benefit with
full pay for 4 months which includes out of pregnancy. Besides maternity benefit,
they are also extending prenatal, medical care to the women employee.

WORKMEN COMPENSATION BENEFIT FOR THE EMPLOYEE WHO MET WITH THE
EMPLOYEE INJURY:

If any employee met an employee with an employment injury, in the course

of employment injury, he will be attended by CMO immediately and if necessary
he will be shifted to KGH. He will be granted disablement leave till he resumes duly,
@ 100% his if hospitalized, and 75% of his salary if he taken treatment as
outpatient.

After completion of treatment, his loss of earning capacity will be assessed

by a medical Board constituted for that purpose and he will be paid compensation
amount worked out according to his loss of earning capacity.
 53

DEPENDENTS BENEFITS:

If any employee dies in service, management grants non recoverable grants

of Rs. 300/- for the benefit of financial expenses and the employment
compensation paid to the dependents of that particular employee as per the
statutory provisions of ESI Act irrespective of whether the crossed wage limits ESI
provision. In case of supervisors and executives who met with employment injury
the compensation is being paid as per the provisions of the Workmen
Compensation Act.

FUNERAL BENEFITS:

When any employee dies while in service, management grants a non-

recoverable grant of Rs.10,000/- towards the funeral expenses.

DEATH BENEFIT FUND:

Whenever an employee dies while in service Rs.10/- will be collected from

all the employees and the entire amount thus collected will be paid to the
dependents of the deceased employee.

GROUP TERM INSURANCE SCHEME:

The Management providing a group term with Life Insurance Corporation of

India. When any employee deceased, he is eligible to get Rs. 37,100/- from the LIC.
Premium is paid by the management. (Approve Rs.16000/- per annum)

ORIENTAL INSURANCE SCHEME:

For the benefit of executives and supervisors, management has taken a

policy under personnel Accident Insurance scheme with Oriental Insurance
 54

Company with 24 hours coverage. The Insurance amount ranges between

Rs.50000/- to Rs.100000/-. Personnel Accident Insurance scheme covers death,
total or partial disablement due to an accident even outside the duty hours.

SAFETY PROVISIONS:

The Company‘s safety policy is aimed at doing everything possible within

their capacity as executives and supervisors to maintain their health, well being and
safety. It is integrated safety policy which includes their employees welfare,
security, fire and accident prevention environment and occupational health,
similarity, the employees in his past has a duty to safeguard himself and his
colleagues and retain from all unsafe acts, including addition to alcohol.

SAFETY ORGANIZATION AND ITS ACTIVITIES:

1. To advice and assist the factory management in the fulfillment of its

obligation statutory, considering the prevention personal injuries and
maintaining a safe working environment.
2. To check and evaluate the effectiveness if the action taken or proposed to
be taken to personnel injuries.
3. To advice the concern departments in planning and organization measures.
4. To advice on safety aspect in all hob studies.
5. To provide advice on matters relate into coming out plant safety inspection.
6. To advice the purchasing and stores department in assuring high quality.
7. To co-ordinate with factory inspectors in implementation of Factories Act,
1948.
 55

SAFETY MEASURES ADOPTED IN B.H.E.L:

1. A “Central Safety Committee” is formed with senior executives as members

and a meeting is convenience quarterly to take policy decision on various
safety measures with the approval of Executive Director.
2. Fire Fighting Programme is being conducted for workers.
3. Safety appliances are being issued as per scales approved by management.
4. X-ray on equipments is taken in separate enclosures with 20” RCC walls to
eliminate the possibility of Radiant Hazards.
5. Inspection of lifting tools and tackles and granesis conducted periodically to
avoid usage of unsafe equipment.
6. Periodically medical tests are conducted for all categories of workmen who
are exposed to hazardous areas of work and prompt remedial actions are
taken to safeguard the health of workers by welfare department.
7. Permit to work system to be in operation for following works.
a) Work at heights for changing roof sheets.
b) For painting structures, cranes.
c) For handling over dimensional jobs were parallel operation of cranes is
adopted.
d) For maintenance of LPG lines.
e) For maintenance of EOT cranes etc.,
f) For exaction work.
8. Two pairs each of tight fitting clothing are issued to all categories of workers,
to ensure safety to workmen in the factory by the administrative
department.
 56

9. Members of safety committees are specially trained so that they can identify
the hazards and take remedial action within their capacity or bring the
matter to the notice of concerned section head.
10.Safety audit is done by internal experts and by external government agency,
periodically to examine the adequacy of safety system and implement
suggestions to the extent possible.
11.As safety begins at home, for the benefit of house wives and children of the
employees, training programs on use of LPG at house, road safety are
conducted. For school children, elocution, and pasterar essay writing
competition are conducted on safety related subject. Housekeeping
completion is conducted for township residents.
12.Development if machine guards, lifting tackle etc., is also being done by
safety.

ACCIDENTS:

In industries, accidents are common irrespective of the size, nature of

product and other elements. Accidents can be generalizing any damage to man and
machinery within the factory premises of outside of the factory during the working
hours in the routine process. It cannot rigid any management, but it can be
controlled to some extent. The major industrial accident influences an
organization, its products or rescue, repetition financial position and empower. As
a part of the management, there are maintaining the safety organization to control
the accidents in factory of outside of the factory.
 57

REPOTING ACCIDENTS:

As per Act, when accident occurs from 18 will be filled within 48 hours (in 2
days) in three copies. One copy will be kept with safety & development department
and remaining two copies will be sent to the welfare department. After that welfare
department takes necessary actions and it will be paid compensation as per ESI Act,
1948.

SAFETY WEEK:

Each year from February 27th to March 4th is known as safety week and March
4th is a National Safety day. On this day, they will conduct essay writing, debate,
and cultural activities etc., regarding to this, they put banners and slogans in very
workshop and township.

Every year, they are conducting safety training programmes. In this period,
they will be training how to avoid for injuries, and of personal protective
equipments and rules and regulations.

TRANSPORT FACILITY:

For the benefit of employees who are residing in town, Management is

providing transport facility at subsidized rates for their coming to the work spot and
return to their housed after the work. Nearly 600 employees are availing this
facility. An amount of Rs.16.7lakhs per annum was spent towards transport
expenditure.
 58

TOWNSHIP:

A beautiful township is developed adjacent to the factory where 1192

number of different quarters are provided with all amenities to each employee.

The details of Estate administration are as follows:

Land - 350 acres (Approximately)

Factory - 200 acres (Approximately)

Township - 150 acres (Approximately)

Quarters - 1192 acres (Approximately)

Construction - Rs.201.39lakhs

SCHOOL:

They are running an English medium school and Telugu medium school in
their township. English medium school is recognized by the Central Board of
Secondary education, New Delhi and the Telugu medium school is recognized by
Government of A.P. State Education Department.

The school is managed by a management committee consisting of BHEL-

HP&VP management and other members, no fees collected for Telugu medium
education, whereas nominal fees is collected for English medium. The employees
children who pass out through these schools have scored with very high marks and
many bright students achieved remarkable performance in their final year
examinations, an amount of 30lakhs is the expenditure of running of these schools.

SCHOOL FOR HANDICAPPED:

 59

A special school for the benefit of handicapped children of employees is

being run on a modest scale so that they are educated to a level for enabling them
to equip themselves so that would be in a position to interact with normal persons
of the society in course of time. The expenditure on this account was approximately
Rs.60000/-

LEAVE ENCASHMENT:

All workmen are eligible for 20-26 days earned leave depending upon the
length of their services. All executives and supervisors are eligible for 30 days
privilege leave. Accumulation of the total shall under no circumstances exceed 180
days.

LEAVE TRAVEL CONCESSION:

Employees are eligible for availing LTC as per the details given below:

The LTC encasement is available once in block of 4 years. The employee will be
entitled to utilize the LTC in that block as follows:

1. One LTC to home town in the next sub block of 2 years. (or)
2. Any place in India in the next sub block of 2 years subject to maximum of
1500kms each way.

MILK AND PLANTAINS:

All employees who are working on hazardous and at excessive heat are
eligible for ½ Liter of milk and two plantains free of cost every day. The work which
is hazardous and excessive heat will be decided by a specially constituted
committee.
 60

SMALL FAMILY NORMS:

Consist with the National Policy under family welfare scheme prior to 01
-01-1992 for propagation of small family norms, company has introduced
incentives under which the employees who or whose spouse underwent
sterilization operation is grated one increment with effect from the date equivalent
to the minimum increment in the form of personnel pay beside special casual leave
to cover the absence of convenience following the operation.

FRINGE BENEFITS (ALLOWANCES):

 Washing Allowance:

3% of the basic pay per month will be paid as washing allowance.

 Night Shift Allowance:

The shift allowance is paid as follows:

a) B shift - Rs 100/- per day.

b) C shift – Rs 100/- per day.
 Conveying Allowance:

The employees who are not availing company transport and are who are not
residing in the township will be paid 10% of the basic per month as
conveyance allowance.

 Reimbursement of Conveyance Expenditure:

Conveyance expenditure will be reimbursed on functional basis at the

following rates:
 61

Scooter WG V & VI Rs.5% of the Basic pay per month.

Moped WG I & VI Rs. 5% of the Basic pay per month.

 Lunch Allowance:

Rs.45/- per day will be paid as lunch allowance subject to a minimum of

Rs.1500/- Per Month.

 Educational Reimbursement:

Educational reimbursement for studies in any registered or recognized

institutions is paid i.e. 3% of the basic pay per child subject to a maximum
number of two children.

 Uniform Stitching Charges:

Will be paid as follows:
1) Male employees Rs.300/- per set (3 Pairs – Rs.900/-).
2) Female employees Rs.140/- per set.
 Incentive Scheme:

Maximum ceiling of incentive payment Rs.500/- per month will be paid

subject to other conditions in the scheme.

 Welding Allowance:

WG III Rs.60/- per month

WG IV Rs.90/- per month

WG V Rs.120/- per month

 62

WG VI Rs.160/- per month

LOANS AND ADVANCES:

The management pays the following advances to the employees to relieve

them from unexpected financial crises.

a) Marriage Advance: Where an employee performs the marriage of his

son/daughter/brother/sister he is eligible for drawing an advance of
Rs.2000/- from the management which will be recovered in 10 months
installments without interest.
b) Death Advance: Whenever any of the family members of the employee dies,
management grants 1000/- as death advance which will be recovered in 10
months installments without interest.
c) Conveyance Advance: Employee will be sanctioned advance Rs.8000/- of
moped or scooter provided it is possible to recover installment of loan
without exceeding in all 75% of gross salary.
d) Fire Accident to Houses of the Employees: In the event of any fire accident
and the house of any of the employee being reduced to ashes, such
employee will be granted Rs.1000/- as advance for reconstruction of his
destroyed house.
e) Annual Advance: All employees up to S3 cadre can draw Festival Advance of
Rs.2000/- once in a calendar year for either PONGAL, RAMZAN, CHRISTMAS
which will be recovered in equal installments without interest.
 63

MEDICAL CHECKUP:

Management conducts Medical Checkup to all employees once in a year free

of cost. In case of detection of any serious disease during the checkup such
employees will be given proper medical care and specialist’s attention at
company’s expenditure.

DATA ANALYSIS AND INTERPRETATION

1. OBJECTIVES:
 Primary Objectives:

The study has been taken up with the following objectives:

a) To analyze the employees level of satisfaction with the existing labour

welfare measures.
b) To examine about the awareness level of employees with the existing
labour welfare programmes and schemes.
 Secondary objectives:
 64

a) To identify the deficiencies of the programmes both from the employees

point of view as well as legal point of view.
b) To make suggestions for possible improvement of welfare programmes and
schemes.
2. NAME OF THE ORGANIZATION:

The organization in which present study is conducted is Bharat Heavy

Electricals Limited-Heavy Plate & Vessels Plant (BHEL-HP&VP) located near
Gajuwaka, Visakhapatnam, a profit making wing of Bharat Yanthra Nigam is known
for a congenial atmosphere among the Labour force. BHEL-HP&VP is a public sector
company under the ministry of Heavy Industry providing employment to a large
number of technical & none technical persons. It is a good through a combination
of experience and merit.

3. TOPIC UNDER STUDY:

The subject of the present study is an HR related area. The topic under study
is welfare amenities in BHEL-HP&VP. In this study efforts have been made to
evaluate the various statutory welfare measures implemented at B.H.P.V. Ltd.,

4. SAMPLE SIZE AND SAMPLE METHOD:

A research was made among the employees of BHEL-HP&VP. The sample size
of 150, it is determined on the basis of random sampling method.

5. PRETESTING:
 65

The study was conducted for approving the place and to know the employees
view about the welfare measures and level of satisfaction of the measures provided
by the organization. This was measures provided by the organization.

This was conducted for sample of 5 employees in the organization from the
different department and feedback received from them.

6. PERIOD OF STUDY:

The study was conducted for two months from January 1st 2015 to march 3rd
2015.

7. QUESTIONNAIRE DESIGN:

The questionnaire was designed as open ended questions, multiple choice

questions.

8. METHODS OF DATA COLLECTION:

To fulfill above objectives the data was collected through primary and
secondary data.

Primary Data:

The information was collected from books and records of the B.H.P.V. Ltd.,
and also drawn from the discussions had with the officers and workers in the
organization to get first hand information regarding the statutory welfare
amenities.

Secondary Data:
 66

For the Secondary data, data was taken from last 5 years. Through record
books, annual reports and other material supplied by the management.

9. DATA TABULATION:

Tabulation has been done on different headings like improvements, facilities

available, development, general performance, etc.

LIMITATIONS:

They were no significant limitations while conducting the survey, but

1. The reports presented by the firm which form a basis for analysis may be
core limitation to the study.
2. Duration for the project study is very limited which is not sufficient for
detailed study. Hence, time is the limiting factor.
3. There are many constraints in studying the government enterprises.
Although the personnel of B.H.E.L-HP&VP are very co-operative and helpful,
but they are bound by their own rules and regulations.
4. Although B.H.E.L-HP&VP is very big organization with different departments.
It was confined to welfare department. This made the scope of study limited.

QUESTIONER AND INTERPRETATION

1. How do you come to know about any new welfare measures being introduced

in the Organization?

S. No Responses No. Of Responses % of responses

 67

1 Through your superiors 12 8%

2 Co- workers 40 26%
3 Circulars 78 52%
4 Unions 20 13%
Total No. Of Responses 150 100%

13% 8%

26% Through your supiriors

Co-Workers

52% Circulars
Unions

Analysis:

From the above table we can depict that 52% of the employees come to know

about the new welfare measures being introduced in BHEL-HP&VP through

circulars and next comes to the 26% of the employees come to know by coworkers

shown in the table. Rest of the responders comes to know 13% through unions, and

8% from their superiors.

Interpretation:
 68

From the above table we come to know that most of the employees come to know

about the new welfare measures through circulars. The passing of circulars are well

maintaining in the organization. It is easily accessible to majority of employees that

helps them aware of the new measures when being come into existence. And it is

also very economic means of sending messages throughout the organization. Very

few get through their superior, co- workers, and unions.

2. STATUTORY WELFARE MEASURES:

1. Canteen Facilities:

Responses No. Of Responses % of responses

Very Good 8 5%
Good 27 18%
Satisfied 53 35%
Poor 62 42%
Total No. Of responses 150 100%
 69

5%
18%
42%
very good
good
satisfactory
35%
poor

Analysis:

From the above table we can depict that 60% of the employees are above the

satisfaction level regarding the canteen facilities providing in the organization. And

some of the 42% of the responders are not satisfied with the canteen facilities

providing in the BHEL-HP&VP.

By analyzing the information given above we can say that the majority of the

employees responded that the facilities providing in the canteen are above the

satisfactory level because of the food providing for them are good quality, the
 70

environment and hygiene are maintaining with cleanliness lastly the timings of the

canteen are comfortable with the timings of the working hours of the employees.

But some of the respondents are not satisfied with the canteen facilities

because mostly about the tastiness of the food, cleanliness was not maintaining in

the canteen. The taste of the food was not up to their expectations and facilities

providing are not properly maintained. Some of the employees depend upon the

food in the canteens. So the food providing should give necessary calories of energy

for them to do their work properly.

2. First aid facilities:

Responses No. Of Responses % of responses

Very Good 12 8%
Good 68 45%
Satisfied 52 35%
Poor 18 12%
Total No. Of 150 100%
responses
 71

12% 8%

very good

35% good
45%
satisfactory
poor

Analysis:

From the above table we can depict that 8% of them are saying that the first aid

facilities providing at work area is good and 45% are saying are very good with the

facilities. 35% of the employees are satisfied with the facilities, and lastly 12% of

the respondents are poor with the facilities.

Interpretation:

From the above analysis we can say that 80% of them are above the satisfaction

level regarding the first – aid facilities providing in the BHEL-HP&VP for employees.

Because the accessibility of the first aid kit including the plaster, small basin,

scissors, cotton roll, tincture iodine, eye & ear drops, paracetamol tablets,

antiseptic cream and medicines are maintained in each shop floor. But 11% of them
 72

are not satisfied because of unavailability of first aid kit in adequate number when

ever comes necessary. The management should have an everyday checkup and

should see there must be availability of the necessary items in the first aid medical

kit.

3. Safety Provisions.

Responses No. Of Responses % of responses

Very Good 24 16%
Good 78 52%
Satisfied 40 27%
Poor 8 5%
Total No. Of responses 150 100%

5% 16%
27%
very good
good
satisfactory
52%
poor

Analysis:
 73

From the above table we can depict that the responses about the safety

provisions are mostly 95% of them are above the satisfaction, and 5% of them

have responded that the facilities are poor with that of safety provisions providing

in the BHEL-HP&VP.

Interpretation:

From the above analysis we can know that all most of them are totally satisfied

with the safety provisions providing for employees in the BHEL-HP&VP but, very

few are responding poor to the safety provisions.

4. Leave facilities:

Responses No .of responses % of Responses

Very Good 22 14%
Good 66 44%
Satisfied 52 35%
Poor 10 7%
Total No. Of 150 100%
Responses
 74

7% 14%

35% very good

good
44% satisfactory
poor

Analysis:

The above table depicts that the respondent are very much satisfied with the

number of leaves they are having. And we cannot take those numbers into count

who are not satisfied because as it was very low percentage 7% we can say that the

leaves for BHEL-HP&VP employees are more than they required.

Interpretation:

From the above analysis we can say that the over all respondents are above the

satisfaction level regarding the leaves because of leave rules provide 10 days bonus

over and above the maximum ceiling prescribed under the factories Act subject to

the employee qualifying to earn the leave. Apart from earned leave, the company

provides casual leave; half pay leave / computed leave, special class leave and
 75

quarantine leave. As the employees are having adequate number of leaves they are

totally satisfied in the welfare measures.

5. Contributory provident fund:

Responses No .of responses % of Responses

Very Good 30 18%
Good 78 52%
Satisfied 40 27%
Poor 5 3%
Total No. Of Responses 150 100%

3%

18%
27%
very good
good
satisfactory
52% poor

Analysis:

From the above table we can depict that the responses about the contributory

provident fund from the respondents are mostly 52% of them are above the good,
 76

and 27% of them are above the satisfaction and 18% of them have responded that

the facilities are excellent, and only very few of 3% are not satisfied with the

contributory provident fund for the employees.

Interpretation:

By analyzing the above data we can surely say that majority of the respondents are

satisfied with the scheme about the contributory provident fund. But very few of

the employees are not satisfied because of the reasons contributory provident fund

should be low.

6. Pension scheme:

Responses No. of Responses % of Responses

Very Good 24 16%
Good 60 40%
Satisfied 60 40%
Poor 6 4%
TotalNo.of Responses 150 100%
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4% 16%

40% very good

good
40% satisfactory
poor

Analysis:

From the above table we can depict that the 96% of the employees are above the

satisfaction level about the scheme in providing pension. Majority of them told

responded that the pension schemes are good and satisfaction. But only few of 4%

of them are not satisfied.

Interpretation:

From the above analysis we can say that the most of the employees are satisfied.

But only some percentages of them are not satisfied. Because of the reasons the

Govt. fallows the old rules and regulations or other things.

7. Workmen’s compensation:
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Responses No. of Responses % of Responses

Very Good 20 13%
Good 50 34%
Satisfied 68 45%
Poor 12 8%
TotalNo.of Responses 150 100%

8% 13%

very good

34% good
45%
satisfactory
poor

ANALYSIS:

From the above table we can depict that the responses about the compensation

from the respondents are mostly 45% of them are above the satisfied, and 13% of

them have response that the facilities are Excellent, and other 8% of them are not

satisfied with the compensation providing in the BHEL-HP&VP.

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Interpretation:

Once if we see the analysis the most of the employees responded above

satisfaction level. But only some percentages of them are not satisfied.

8. Payment of Bonus:

Responses No. of Responses % of Responses

Very Good 14 9%
Good 78 52%
Satisfied 48 32%
Poor 10 7%
Total No. of Responses 150 100%

7% 9%

32% very good

good
52% satisfactory
poor

ANALYSIS:
 80

From the above table 93% of the employees are above satisfied with the bonus.

Majority of them responded that the bonus is good. A negligible 7% are unsatisfied.

Interpretation:

From the above analysis we can say that the most of the employees are satisfied.

But only few percentages of them are not satisfied. Because of the bonus percent

is not increase or anything.

9. Medical facilities:

Responses No. of Responses % of Responses

Very Good 37 24%
Good 52 35%
Satisfied 48 32%
Poor 13 9%
TotalNo. of Responses 150 100%
 81

9%
24%

32% very good

good
satisfactory
35%
poor

ANALYSIS:

Almost 67% of employees are satisfied with the medical facilities. 24% are highly

satisfied with facilities provided by BHEL-HP&VP. The rest 9% are unsatisfied

employees.

Interpretation:

As a major portion of the employees are satisfied with the medical facilities due to

free treatment, good doctors and excellent facilities for common ailments and
 82

lacking specialized technology so this may be the reason for dissatisfaction among

other employees.

10. Educational facilities:

Responses No. of Responses % of Responses

Very Good 22 15%
Good 48 32%
Satisfied 74 49%
Poor 6 4%
TotalNo. of Responses 150 100%

4% 15%

very good
49% good
32%
satisfactory
poor

ANALYSIS:
 83

The above table depicts that 82% of the employees are satisfied with the

educational facility provided to them. 14% of gave an excellent opinion over the

educational facilities. Just a minor 4% of employees are not satisfied with education

facility because of poor management.

Interpretation:

Majority of the employees are satisfied with the educational facility this shows that

organization is doing a good work for education and providing standard education

at all levels. There 11 schools in BHEL-HP&VP providing CBSE, and state level

syllabus.

11. Housing facilities:

Responses No. of Responses % of Responses

Very Good 9 6%
Good 64 42%
Satisfied 70 47%
Poor 7 5%
TotalNo.of Responses 150 100%
 84

5% 6%

very good
42%
47% good
satisfactory
poor

ANALYSIS:

From the above table we can depict that 6% of the employees have responded that

the housing facilities are very good and 42% have responded they are good and

47% are satisfied and only very few of 5% are not satisfied with the facilities

providing for the employees at quarters.

Interpretation:

From the above analysis we can conclude that most of them are above the

satisfaction level regarding the facilities at quarters. The condition of the quarters,

water supply, electricity supply and maintenance are good. There will be 24 hours

interrupted power supply for the houses and water supply at any time.
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12. Co- Operative societies:

Responses No. of Responses % of Responses

Very Good 16 10%
Good 60 41%
Satisfied 64 42%
Poor 10 7%
Total No. of Responses 150 100%

7% 10%

very good
42% good
41%
satisfactory
poor

ANALYSIS:

From the above table we can depict that 10% of the employees have responded

that the co-operative society are very good and 41% have responded they are good
 86

and 42% are satisfied and only very few of 7% are not satisfied with the facilities

providing for the employees.

Interpretation:

From the above analysis we can conclude that most of them are above the

satisfaction level regarding the co operative society.

FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS:

1. Majority of the employees are satisfied awareness of various employees’ schemes.

2. I was found that the employees satisfied with the canteen facilities provided by the company.

3. Majority of the employees satisfied with the facilities provided by the company is good.

4. The employees felt that drinking water facilities provided by the company is good.

5. The lighting and ventilation facilities provided by the company are satisfactory.

6. I was found that first aid box not kept in all departments.

7. Maximum number of employees satisfied with working conditions in BHEL-HP&VP.

8. I was found that majority employees available having separate dispensary.

9. The employees felt good about sanitary arrangements in B.H.P.V.

10. I was found that company maintained suitable safety standards.

11. Majority employees felt good response about medical team in case of accidents.
 87

12. I was found that majority if the employees using transport facilities.

13. Majority of employees have housing facility provided by the company is good.

14. Majority of employees felt good about educational facilities for children provide by the company.

15. Maximum number of employees satisfied with annual leave day’s programs.

16. Majority of employees satisfied about medical checkup facilities.

17. It is found that half of employees accepted VRS remaining not accepted VRS.

18. Majority of employees satisfied about Labour Welfare activities followed in B.H.P.V.

SUGGESTIONS:

1. The BHEL-HP&VP has got good canteen facilities, but the quality needs some improvements.

2. Company will keep first aid box in all departments.

3. Lunch rooms are to be maintained nearly and should be last clean.

4. Safety provisions are maintained neatly and the company should keep it up.

5. Company shall try to provide housing facilities to all employees.

6. Company may take necessary measures to development the working nature of co-operative
consumer stores.

It will be highly appreciable if the management of BHEL-HP&VP Ltd. considers the above
suggestions within its financial administrative and statutory limits.

FUTURE DIRECTIONS:

Concluding the project work, we may say, Since BHEL-HP&VP is more than 35 years old and Heavy
Industry it has got its own credits in its account. So they are planning for a better future. They are always
in search of entering into new areas and our India as self-reliance.

CONCLUSION:
 88

The project work “A study on Employee Welfare activities in BHEL-HP&VP LTD., Visakhapatnam
has helped me to learn the organization culture and techniques followed in BHEL-HP&VP.

From the project work I could understand that the employees of the BHARATH HEAVY PLATE &
VESSELS LTD has positive view towards welfare activities and management of BHEL-HP&VP and have
negative aspects towards the welfare activities due to mismanagement rivalries between trade union and
management and financial crises. The management of BHEL-HP&VP does not want to implement any new
effective welfare activities. But the employees of BHEL-HP&VP are in adding positive measures in the
development of the organization and also for the better meet of Employee Welfare activities.

QUESTIONER:
1. How do you come to know about any new welfare measures being

introduced in the Organization?

a) Through your superiors

b) Co- workers
c) Circulars
d) Unions.

Statutory welfare measures

1. Canteen facilities?
a) Very good
b) Good
c) Satisfied
d) Poor
2. First Aid facilities?
a) Very good
b) Good
 89

c) Satisfied
d) Poor
3. Safety provisions?
a) Very good
b) Good
c) Satisfied
d) Poor

4. Leave facilities?
a) Very good
b) Good
c) Satisfied
d) Poor
5. Contributory provident fund?
a) Very good
b) Good
c) Satisfied
d) Poor
6. Pension Scheme?
a) Very good
b) Good
c) Satisfied
d) Poor
7. Workmen’s compensation?
a) Very good
b) Good
c) Satisfied
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d) Poor
8. Payment of bonus?
a) Very good
b) Good
c) Satisfied
d) Poor
9. Medical facilities?
a) Very good
b) Good
c) Satisfied
d) Poor
10.Education facilities?
a) Very good
b) Good
c) Satisfied
d) Poor
11.Housing facilities?
a) Very good
b) Good
c) Satisfied
d) Poor
12.Co-operative society ?
a) Very good
b) Good
c) Satisfied
d) Poor
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ANNEXURE

BIBILOGRAPHY

1. Labour Welfare & Social Security - A.M.Sharma

2. Principles of Labour Welfare - M.V.Murthy

3. “Welfare Work of Industrial” - H.S.Pearson

4. Factories Act, 1948

5. Annual reports of Bharath Heavy Plate & Vessels Limited