OPGC to face manpower crunch due to poor pay package of engineers

The Orissa Power Generation Corporation (OPGC), a joint venture between the Orissa government and AES, is likely to face manpower crunch particularly the engineering staff, if the company doesn’t move to a market based compensation system.

Though pay package offered by OPGC to the engineers is better compared to the state government employees, it falls far short of the package and perks provided by the Independent Power Producers (IPPs) and public sector power companies.

The manpower assumes importance as the company is poised to go for an expansion envisaging setting up of unit-3 and unit-4 of its Ib Thermal Power Station with installed capacities of 660 Mw each.

Sources said, more than 60 engineers left the company during last three years. Considered against the total number of 110 engineers among 550 odd employees in OPGC, the attrition rate is significant. While marketing and finance executives number about 30, the remaining are non-executive employees.

“We have had a series of meetings with the state government and we are finding various ways to address the issues”, said an official of the company. He said, OPGC is mulling to introduce a market based salary structure which will be linked with performance.

“The new system will help attract and retain talents”, said Vivekananda Biswal, managing director, OPGC. According to the proposal, all new recruitment will be based on market salary and the existing employees will be given the option to migrate to the new system.

While there is shortage of engineers in OPGC, non-engineering staff are in excess. The additional manpower can be accommodated in the proposed expansion of unit-3 and unit-4. The company aims to reduce per mega watt manpower to the level of National Thermal Power Corporation (NTPC). While there are 1.2 employees per Mw of power generated at OPGC at present, the target is to bring it down to 0.91 employees per mega watt.

On the issue of OPGC showing undue favour in the payment of Rs 9.35crore dividend to AES for 1998-99 as pointed out in the Comptroller and Auditor General (CAG) report (commercial) for 1999-2000, Biswal said, the CAG had examined the matter and it was found to be in order as per the provisions of the companies act.

It may be noted, the CAG report for 1999-2000 pointed out that OPGC paid dividend of Rs 9.35 crore for 1998-99 to AES Corporation of USA in violation of the provisions of the companies act. Besides, lack of clarity in tripartite agreement led the state government being deprived of dividend of Rs 45.1 crore for the year 1997-98, it pointed out.