INTRODUCTION:
The purpose of any Incentive Scheme is to motivate the employees to give their best. A successful Incentive Scheme should strike a balance between short range and long range plant requirement and should achieve a good blend of two in such a way as to optimize Generation on sustained long range basis. Any Scheme which encourages maximization of Generation only in the short term may be self defeating as it leads to the irreparable damage to the plant and machinery because of insufficient motivation to employees for proper up-keep and maintenance of plant. Incentive Scheme should take foremost aspect of sustainability of plant into account.

Following objectives have been considered in designing the Incentive Scheme.

1. To keep the Generating Station in a readiness to meet the Peaking Hours requirement of Grid by maintaining the Capacity Index at an appropriate level. This requires untiring efforts of whole team to keep the Power Station properly maintained.
2. To generate more revenue through Un-Scheduled interchange within the tariff parameters as defined under CERC Regulations.
3. Reduction in absenteeism.
4. To provide economic and quality power to beneficiaries.

1.  SHORT TITLE
The Scheme shall be called “SJVNL Power Generation Incentive Scheme".

2.  APPLICABILITY
2.1 The Scheme covers all regular employees including deputationists directly or indirectly engaged in Generation of Electricity. The Scheme will not be applicable to:-

• Any Apprentice including Apprentices under Apprentices Act.
• Casual employees.

2.2 This scheme shall be restricted to the sanctioned manpower for O&M of NJHEP and Corporate Staff.

3.  DEFINITION
Unless the context otherwise requires for the purpose of this scheme:-

1. CAPACITY INDEX: means Capacity Index as defined under CERC Regulations.

2. CUMULATIVE CAPACITY INDEX: means Cumulative Capacity Index as defined under CERC Regulation and as declared by NRLDC/NREB at the end of Financial Quarter.

3. FINANCIAL YEAR: means financial year ending on 31st March.

4. FINANCIAL QUARTER: means financial quarter ending on 30th June, 30th September, 31st December & 31st March.

5. NORMATIVE CAPCITY INDEX: means Normative Capacity Index as declared in CERC Regulations for recovery of full Capacity Charges.

6. UN-SCHEDULED INTER-CHANGE: means as defined in CERC Regulations.

4.  FACTORS FOR INCENTIVE PAYMENT
Generation Incentive will be linked with the Cumulative Capacity Index and Unscheduled Interchanges achieved/earned at the end of each financial quarter.

5.  GENERATION INCENTIVE BASED ON CAPACITY INDEX
5.1 The Generation Incentive based on Capacity Index will have quarterly and annual components of payment linked with the corresponding Capacity Index levels. There will be graded increase in rate of Incentive for increase in Capacity Index over and above Normative Capacity Index. The Performance Payment Matrix is given below:

6.  GENERATION INCENTIVE BASED ON UNSCHEDULED INTERCHANGES.
The Generation Incentive linked with Un-Scheduled Inter-Change will be paid quarterly on the basis of achievement of target set by the Commercial and System Operation Department with the approval of CMD as under:

6.2 Incentive payable under above Para is independent and not linked with Capacity Index and shall be determined separately by considering restriction indicated at Para 8.8.

7.  CLASSIFICATION OF EMPLOYEES.
7.1 For the purpose of payment of incentive, employees will be classified into the following groups:-

Group `A':  Eligible employees directly and exclusively engaged in Operation & Maintenance of the commissioned units as specified in Clause 8.6 (Column-I).

Group `B':  All employees not covered under Group `A'. This group includes employees as specified in Clause 8.6 (Column- II).

Group ‘C’:  All employees posted at Corporate Office Shimla/Parwanoo/Delhi.

8.  QUANTUM OF INCENTIVE
8.1 In no case the Generation Incentive on account of Capacity Index and Un-scheduled Inter-change together shall be more than 25% of basic pay of Group A employees and 18.75% of basic pay for Group-B employees.

8.2 Generation Incentive shall not be paid more than 15% on account of UI Charges and 10% on account of CI Charges to Operation Staff.

8.3 Generation Incentive shall not be paid more than 10% on account of UI Charges and 15% on account of CI Charges to Maintenance Staff.

8.4. Other staff at Project site including Ministerial and Drivers deployed in O&M will be entitled for 75% of Generation Incentive payable under Clause 8.3.

8.5 The payment of incentive on account of Capacity Index as well as Unscheduled Interchange will be paid to employees as under:-

8.6 Deptt/areas under each group will be as under:-

Note:- (i) Department/Areas not covered above will be classified by Corporate HR Division with the approval of CMD/D(P).

(ii) The department/area of posting will be the basis for category/group for the purpose of incentive. The additional area/function assigned, if any, will not change incentive category/group of an individual employee.

8.7 The employees posted at Corporate Centre Shimla/ Parwanoo/ Delhi shall be entitled for 50% of Generation Incentive payable to Group “B” employees and weightage average of construction incentive if applicable for other projects.

8.8 Only 50% of Generation Incentive payable during the quarter shall be paid quarterly. Remaining 50% will be paid at the end of financial year subject to condition that Cumulative Capacity Index at the end of financial year is normative or more.

9.  OTHER GENERAL CONDITIONS
9.1 The employees will be entitled to incentive on pro-rata basis for actual period of attendance. All types of leave except leave without pay, Study Leave and Extra Ordinary Leave will be counted towards actual attendance. The period of training in India for duration of not more than 15 days will be treated as actual attendance. Foreign Training for the period not more than 7 days will be treated as actual attendance.

9.2 The amount of Incentive earnings will neither be termed as pay nor allowance, nor wages. Accordingly, this amount would not count for any service benefits i.e. computation of House Rent Allowance, Compensatory Allowance, encashment of leave, pay fixation, Provident Fund, Pension or Gratuity etc.

9.3 Employees may be transferred from one department/division to another. In such cases their entitlement for incentive will be determined as per the entitlement of the department/division in which they have actually worked.

9.4 Capacity Index and Un-scheduled Inter-change declared by NRLDC/NREB will be taken into account for determining the Generation Incentive to be certified by Commercial & System Operation Deptt.

9.5 The management reserves the right to review/modify the scheme at its own discretion from time to time keeping in view efficiency of the plant being increased/ improved through installation of more or better equipment or by improving the mechanical process/technology/methods/systems/procedures and other extraneous factor.

9.6 .1 CMD/D (P) will be Competent Authority to interpret any doubt under this scheme and their decision shall be final.