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Emerging Opportunities in Power Sector-
                   Challenges of Talent
V.M.Kaul, Director(Personnel),
POWERGRID
Power Sector – a snapshot
• Comprises of Generation, Transmission & Distribution
• Present installed capacity is 1,55,000MW
• Persistent energy shortage and peak hour power
  shortage
• Central sector is playing a dominant role in Generation
  and Transmission
• Electricity Act-2003 envisages competition in the sector,
  Open access, Power Trading and private investments
• Heavy investment requirement in all the three sectors
• Shortage of skilled manpower due to surging growth
Per capita annual consumption of Electricity(2007 data)
   –   India: 470 units
   –   Brazil: 2110 units
   –   China: 2200 units
   –   USA: 13000 units
Power Sector Growth- Demand of Power (GW)
                                                                     Growth:
                                                                     8% per
                                                                               522
                                                                     annum

                                                   Growth:
                                                   9.8% per
                                                   annum      372
                                 Growth:
                                            250
GW




                                 9.8% per
                                 annum

              Growth:
              10.8% per
                          168
       109    annum




       2007               2012              2017              2022             2027
                                            Year
     Assuming GDP Growth Rate 9%
Installed Capacity Requirement (GW)
                                                                 Growth:
                                                                 8% per
                                                                 annum
                                                                           685
                                                Growth:
                                                9% per
                                                annum
                                                          488
                               Growth:
                               9% per
                               annum     337
GW




              Growth:   233
       155
              10% per
              annum




       2007             2012             2017             2022             2027
                                         Year

     Assuming GDP Growth Rate 9%
Growth of inter-regional power transfer capacity
          inter-
     165000
                                                                     150000
                                             By 2025
     145000           Inter-regional Capacity- 150,000 MW



     125000
                                                            100000
     105000

      85000
MW




                                             65000
      65000
                          40000
      45000
              18000
      25000

       5000
               2007          2012               2017          2022     2027
                      Year
NATIONAL GRID BY 2012
                                              INTER-REGIONAL CAP. >37000 MW




                 NR
                      FATEHPUR    GORAKHPUR

                     AURAIYA             BALIA
 KANKROLI                                                     MUZAFFARPUR
    RAPP
              AGRA                                             PATNA   BIRPARA
                                                                                       NER
                                                                 BARH    SILIGURI   SALAKATI
        KOTA                                                                         BONGAIGAON
                                                                B'SHARIFF
                                          SAHU                  NABI NAGAR
                                          PURI                 GAYA
                                          500                           MALDA
                            MALANPUR      MW                  SASARAM

ZERDA
    NAGDA
                                 VINDHYACHAL
                                      KORBA
                                                             DEHRI
                                                                     ER
                  GWALIOR    WR POOLING                       BUDHIPADAR
            UJJAIN
                                    SIPAT                   RANCHI
                                   RAIPUR                 ROURKELA
                WR                            BALIMELA
                                                         TALCHER

                               CHANDRAPUR



             KOLHAPUR                                         1000
                                                              MW
                                       1000
                     1000              MW
    PONDA            MW
                                                         GAZUWAKA

                              U.SILERU
                      NARENDRA
                  BELGAUM
               NAGJHARI


                      SR
Fund Requirement for 12th Plan


     Area        Fund Requirement
                     (Rs. Crs.)
  Generation         5,00,000
 Transmission        2,50,000
  Distribution       4,00,000
     Total          11,50,000
Additional Manpower Requirement
 During 11th & 12th Plan (By 31.3.2017)
SN Category                   Total
 1 Engineers                   92,000
 2 Supervisors                1,72,000
 3 Skilled workers            1,38,000
 4 Semi-skilled workers       1,49,000
 5 Unskilled workers          1,72,000
 6 Non-Tech                   2,77,000
           Total              10,00,000
Norms : 7.4 employees per MW for O&M & const.
in Generation, Transmission & Distribution


Manpower available on 31.03.2007 : 9.5 Lakhs
Source : CBIP
Factors Attributing Human Resource Crunch
             In the Power Sector
• Continuous surge in demand of power, ambitious growth
  targets for capacity addition & network expansion

• Ultra Mega Power Projects along with associated
  transmission network coming up - skilled manpower
  demand surging up

• Expansion of power market
      - With entry of private players
      - Challenges created by fast changing technologies
      - Diversification of companies in other areas of power sector

• Higher skill set required due to advance technical processes
  and automation
Factors Attributing Human Resource Crunch
             In the Power Sector
• Quality of education & curriculum at most of Industrial
  Training Institutes and polytechnics are not upto the mark
  for bridging the skill shortage

• Private players attract talent from central & state sector

• Non-availability of professionally trained manpower at
  Contractors end

• Talent in HV/EHV/UHV transmission is mainly available in
  POWERGRID
Factors Attributing Human Resource Crunch
             In the Power Sector
• Stagnant supply pool for hiring senior & middle level
  positions

• Difficult to pick people from other industries, given the
  unique characteristic of the sector

• Work locations in remote terrains/locations not attracting
  good professionals
Talent War
• The treasure hunt in Talent war fare
   – Top business priority
   – Shortage of technical and managerial talent
   – Organizations with more talented people on their payroll
     averaged a 22% annual return to the shareholders versus 13 %
     for those without(Birchfield,2003).
   – Talent has become the key differentiator
   – According to recent study by Deloitte, in India, paradigm shift is
     taking place from ‘scarcity of jobs’ to ‘scarcity of talent’


• In power sector “Talent Raiding” / “Talent poaching”
  taking place because of short supply of power specific
  talent in the talent market.
Attracting, Developing and Retaining
             Talent- POWERGRID way
• To recruit quality talent from the available pool
  _ All India open exam
   – Campus recruitment
   – established an industry-institute collaboration, “Campus Connect”
   – Region/Territory-wise talent hunt through employment
     exchanges, educational institutes and walk-in interviews

• Competency enhancement of employees and creation of
  employees value through
   – Induction training programmes
   – Functional role based development (Basic refresher and advance
     level training)
   – Behavioural development for all employees
   – Management training programmes
   – Leadership development
   – Strategic management Training
Attracting, Developing and Retaining
             Talent- POWERGRID way
• Collaboration with reputed academic institutions and
  professional bodies like IIT, IIM, MDI, AIMA, ASCI, ESCI
  etc.for continuous upgradation of our knowledge pool

• Training Strategy aligned to business strategy in order to
  boost our endeavours in creating & nurturing world class
  learning organisation

• Stakeholders development- Training of employees of
  contractors,   vendors,    State  Electricity Boards;
  Recruitment of stakeholders employees

• Training Budget can go upto 5 % of salary budget- as per
  National Training Policy for Power Sector
Human Resource Development in POWERGRID
       No. of Personnel Trained(2008-09)

 Sl                 Category                 No. of personnel
                                                 trained
 A    POWERGRID employees
      Executives                                  2757
      Supervisors                                 1155
      Workmen                                     1306
                                 Sub-Total        5218
 B    Transmission Sector utilities/               704
      Contractor’s/ Vendor’s personnel
                                     Total        5922
 C    Executive Trainees                           137
                               Grand Total        6059
Human Resource Development in POWERGRID
                                     Leaping ahead…..
                                 Year-wise Growth of Personnel Trained

                          6000                                         5922

                          5000
      Personnal Trained



                                                               3786
                          4000

                          3000             2282    2234
                          2000     1610

                          1000

                            0
                                 2004-05 2005-06 2006-07 2007-08 2008-09
                                              Financial Year
Strategies to meet challenges of Talent

• Public Private Partnership for upgradation of existing
  educational institutions churning out skilled manpower for
  Power sector, establishment of new institutions

• Revamp skill/vocational training Institutions (ITIs, polytechnics
  and vocational training in school) and grant them functional
  and governance autonomy

• Introduction of specialised courses on Transmission/Sub-
  transmission in various power training institutes with industry
  partnership

• Greater need to allocate funds for training & emphasis on
  business aligned training practices

• Creation of strategic fit between employee value,
  compensation (competitive compensation and external
  alignment) and career growth
Strategies and Action Plan

• Long term education as a strategy for developing talent

• Leveraging Technology/advanced systems to optimise manpower
  e.g. Remote operated sub stations, maintenance hubs

• Assess skill deficits sub-sector wise and region wise and meet the
  gaps by planned action in a finite time frame

• Establish a ‘Credible accreditation system’ and a ‘guidance
  framework’ for all accrediting agencies

• Enable employment exchanges to function as career counseling
  centres.

• Establish a ‘National Skill Inventory’’ on a national Web portal—for
  exchange of information between employers and employment
  seekers.
Strategic Human Resource Development in POWERGRID
                                                              Effective operation and
                              Exponential growth in               maintenance of              Business development and
                              Capital expenditure for         burgeoning fixed asset                consultancy
                              Construction projects                     base


                                          POWERGRID’s Growth Plan
                 Environment                                                                                 Integrated
                   & Social                                                                                 Technology
                 Management                                                                               Management, R&D

         Corporate
                                                            Organizational                                        Business Process
        Governance
                                                           Culture & Values                                        Reengineering


                                                                                                                Project
             Strategic HRM                                                                                    Management


                                                          Integrated Human
                                                              Resource
                                                             Development
                                                                                       Restructuring and augmentation of Employee
Critical Skills Gap Analysis and Skill enhancement
                                                                                       Development Centers (EDCs) in regions
 Strengthening of HRD Team with resource persons
                                                                                    Establishment of state-of-art Learning Centre at the
                         from technical discipline
                                                                                    Corporate level

      Restructuring/Strengthening Induction Training of
                                    Executive Trainees                           Managing Organizational Knowledge

                      Aligning Employee Attitude and Values                   Hands-on & Simulator training


            Knowledge Dissemination through e-learning                  Stakeholders Training & Development

                       Global Outreach (Exposure to International     Nurturing future leaders, thinking visionaries,
                                                       practices)     transformational leaders and experts
Emerging Talent Challenges in India's Growing Power Sector

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Emerging Talent Challenges in India's Growing Power Sector

  • 1. Emerging Opportunities in Power Sector- Challenges of Talent V.M.Kaul, Director(Personnel), POWERGRID
  • 2. Power Sector – a snapshot • Comprises of Generation, Transmission & Distribution • Present installed capacity is 1,55,000MW • Persistent energy shortage and peak hour power shortage • Central sector is playing a dominant role in Generation and Transmission • Electricity Act-2003 envisages competition in the sector, Open access, Power Trading and private investments • Heavy investment requirement in all the three sectors • Shortage of skilled manpower due to surging growth Per capita annual consumption of Electricity(2007 data) – India: 470 units – Brazil: 2110 units – China: 2200 units – USA: 13000 units
  • 3. Power Sector Growth- Demand of Power (GW) Growth: 8% per 522 annum Growth: 9.8% per annum 372 Growth: 250 GW 9.8% per annum Growth: 10.8% per 168 109 annum 2007 2012 2017 2022 2027 Year Assuming GDP Growth Rate 9%
  • 4. Installed Capacity Requirement (GW) Growth: 8% per annum 685 Growth: 9% per annum 488 Growth: 9% per annum 337 GW Growth: 233 155 10% per annum 2007 2012 2017 2022 2027 Year Assuming GDP Growth Rate 9%
  • 5. Growth of inter-regional power transfer capacity inter- 165000 150000 By 2025 145000 Inter-regional Capacity- 150,000 MW 125000 100000 105000 85000 MW 65000 65000 40000 45000 18000 25000 5000 2007 2012 2017 2022 2027 Year
  • 6. NATIONAL GRID BY 2012 INTER-REGIONAL CAP. >37000 MW NR FATEHPUR GORAKHPUR AURAIYA BALIA KANKROLI MUZAFFARPUR RAPP AGRA PATNA BIRPARA NER BARH SILIGURI SALAKATI KOTA BONGAIGAON B'SHARIFF SAHU NABI NAGAR PURI GAYA 500 MALDA MALANPUR MW SASARAM ZERDA NAGDA VINDHYACHAL KORBA DEHRI ER GWALIOR WR POOLING BUDHIPADAR UJJAIN SIPAT RANCHI RAIPUR ROURKELA WR BALIMELA TALCHER CHANDRAPUR KOLHAPUR 1000 MW 1000 1000 MW PONDA MW GAZUWAKA U.SILERU NARENDRA BELGAUM NAGJHARI SR
  • 7. Fund Requirement for 12th Plan Area Fund Requirement (Rs. Crs.) Generation 5,00,000 Transmission 2,50,000 Distribution 4,00,000 Total 11,50,000
  • 8. Additional Manpower Requirement During 11th & 12th Plan (By 31.3.2017) SN Category Total 1 Engineers 92,000 2 Supervisors 1,72,000 3 Skilled workers 1,38,000 4 Semi-skilled workers 1,49,000 5 Unskilled workers 1,72,000 6 Non-Tech 2,77,000 Total 10,00,000 Norms : 7.4 employees per MW for O&M & const. in Generation, Transmission & Distribution Manpower available on 31.03.2007 : 9.5 Lakhs Source : CBIP
  • 9. Factors Attributing Human Resource Crunch In the Power Sector • Continuous surge in demand of power, ambitious growth targets for capacity addition & network expansion • Ultra Mega Power Projects along with associated transmission network coming up - skilled manpower demand surging up • Expansion of power market - With entry of private players - Challenges created by fast changing technologies - Diversification of companies in other areas of power sector • Higher skill set required due to advance technical processes and automation
  • 10. Factors Attributing Human Resource Crunch In the Power Sector • Quality of education & curriculum at most of Industrial Training Institutes and polytechnics are not upto the mark for bridging the skill shortage • Private players attract talent from central & state sector • Non-availability of professionally trained manpower at Contractors end • Talent in HV/EHV/UHV transmission is mainly available in POWERGRID
  • 11. Factors Attributing Human Resource Crunch In the Power Sector • Stagnant supply pool for hiring senior & middle level positions • Difficult to pick people from other industries, given the unique characteristic of the sector • Work locations in remote terrains/locations not attracting good professionals
  • 12. Talent War • The treasure hunt in Talent war fare – Top business priority – Shortage of technical and managerial talent – Organizations with more talented people on their payroll averaged a 22% annual return to the shareholders versus 13 % for those without(Birchfield,2003). – Talent has become the key differentiator – According to recent study by Deloitte, in India, paradigm shift is taking place from ‘scarcity of jobs’ to ‘scarcity of talent’ • In power sector “Talent Raiding” / “Talent poaching” taking place because of short supply of power specific talent in the talent market.
  • 13. Attracting, Developing and Retaining Talent- POWERGRID way • To recruit quality talent from the available pool _ All India open exam – Campus recruitment – established an industry-institute collaboration, “Campus Connect” – Region/Territory-wise talent hunt through employment exchanges, educational institutes and walk-in interviews • Competency enhancement of employees and creation of employees value through – Induction training programmes – Functional role based development (Basic refresher and advance level training) – Behavioural development for all employees – Management training programmes – Leadership development – Strategic management Training
  • 14. Attracting, Developing and Retaining Talent- POWERGRID way • Collaboration with reputed academic institutions and professional bodies like IIT, IIM, MDI, AIMA, ASCI, ESCI etc.for continuous upgradation of our knowledge pool • Training Strategy aligned to business strategy in order to boost our endeavours in creating & nurturing world class learning organisation • Stakeholders development- Training of employees of contractors, vendors, State Electricity Boards; Recruitment of stakeholders employees • Training Budget can go upto 5 % of salary budget- as per National Training Policy for Power Sector
  • 15. Human Resource Development in POWERGRID No. of Personnel Trained(2008-09) Sl Category No. of personnel trained A POWERGRID employees Executives 2757 Supervisors 1155 Workmen 1306 Sub-Total 5218 B Transmission Sector utilities/ 704 Contractor’s/ Vendor’s personnel Total 5922 C Executive Trainees 137 Grand Total 6059
  • 16. Human Resource Development in POWERGRID Leaping ahead….. Year-wise Growth of Personnel Trained 6000 5922 5000 Personnal Trained 3786 4000 3000 2282 2234 2000 1610 1000 0 2004-05 2005-06 2006-07 2007-08 2008-09 Financial Year
  • 17. Strategies to meet challenges of Talent • Public Private Partnership for upgradation of existing educational institutions churning out skilled manpower for Power sector, establishment of new institutions • Revamp skill/vocational training Institutions (ITIs, polytechnics and vocational training in school) and grant them functional and governance autonomy • Introduction of specialised courses on Transmission/Sub- transmission in various power training institutes with industry partnership • Greater need to allocate funds for training & emphasis on business aligned training practices • Creation of strategic fit between employee value, compensation (competitive compensation and external alignment) and career growth
  • 18. Strategies and Action Plan • Long term education as a strategy for developing talent • Leveraging Technology/advanced systems to optimise manpower e.g. Remote operated sub stations, maintenance hubs • Assess skill deficits sub-sector wise and region wise and meet the gaps by planned action in a finite time frame • Establish a ‘Credible accreditation system’ and a ‘guidance framework’ for all accrediting agencies • Enable employment exchanges to function as career counseling centres. • Establish a ‘National Skill Inventory’’ on a national Web portal—for exchange of information between employers and employment seekers.
  • 19.
  • 20. Strategic Human Resource Development in POWERGRID Effective operation and Exponential growth in maintenance of Business development and Capital expenditure for burgeoning fixed asset consultancy Construction projects base POWERGRID’s Growth Plan Environment Integrated & Social Technology Management Management, R&D Corporate Organizational Business Process Governance Culture & Values Reengineering Project Strategic HRM Management Integrated Human Resource Development Restructuring and augmentation of Employee Critical Skills Gap Analysis and Skill enhancement Development Centers (EDCs) in regions Strengthening of HRD Team with resource persons Establishment of state-of-art Learning Centre at the from technical discipline Corporate level Restructuring/Strengthening Induction Training of Executive Trainees Managing Organizational Knowledge Aligning Employee Attitude and Values Hands-on & Simulator training Knowledge Dissemination through e-learning Stakeholders Training & Development Global Outreach (Exposure to International Nurturing future leaders, thinking visionaries, practices) transformational leaders and experts