IREDA Workshop on PMS PRP at Visakhapatnam 31 st

IREDA Workshop on PMS/PRP at Visakhapatnam 31 st August, 2012 1

IREDA Highlights n n n n n NBFC as per RBI Classification Dedicated institution for Renewable Energy &Energy Efficiency Financing Recognized internationally –Multilaterals/ Bilaterals prefer working with IREDA Pioneer in RE&EE sector Profit earning & dividend paying ISO 9001: 2008 Certified Company Cumulative sanction Rs. 18712 crores sinception (as on 31. 3. 2012) Cumulative disbursement Rs. 9723 crores sinception (as on 31. 3. 2012) IREDA Mo. U achievement for the last 2 financial years i. e. 2009 -10 & 2010 -11 - ‘Excellent’ Total Number of employees as on 31. 3. 2012 - 130 (Executives – 91 Non executives - 39) 2

Performance Management System in IREDA n A Robust Performance Management System containing all the major requirements already in place and notified. n Fair and objective system of evaluation of PARs. n Evaluate the potential of the employee to assume higher responsibilities in the organization. n Determine the gaps in knowledge and skills and/or shortcomings/ failure during evaluation and how these can be filled through training and/or counseling. n Identify employees having skills development potential so as to suggest further training/ encouragement. 3

Performance Management System in IREDA n PMS plays an important role for determine the Performance Related Pay. n Different Appraisal proforma for Non-Executives, Non-unionised Supervisors, Executives and functional Directors. n The appraisal proforma for E-8 level executives and functional directors, as per DPE norms n Appraisal evaluation on 5 scale parameters. 4

PERFORMANCE RELATED PAY LINKED WITH PMS IN IREDA FACTORS Mo. U Rating Profitability of the Company during the corresponding year Incremental profit Performance of the individuals PRP percentage as per grade define by DPE Excellent/ Outstanding %age of PRP Payment as per Mo. U rating 100% Very Good Fair/Average Poor 80 60 40 Nil 80% 60% 40% No PRP Rating Linkage with Individual Rating 5

PERFORMANCE RELATED PAY LINKED WITH PMS IN IREDA q Notified a robust and transparent Performance Management System and Performance Related Pay system in line with DPE requirement. q The employees are rated on 5 scales parameter viz. OUTSTANDING, VERY GOOD, AVERAGE AND POOR. q Constitution of ‘Moderation Committee’ to ensure compliance of Bell Curve Approach by defining Above Par, Par and Below Par employees. q PRP system introduced in IREDA from FY 2009 -10. q 60% of PRP within the ceiling of 3% of PBT of current financial year. q 40% of PRP out of 10% of incremental profit. (increase in profit as compare to previous year’s profit). q Total PRP limited to 5% of the current year PBT. 6

REMUNERATION COMMITTEE q Remuneration Committee constituted as per DPE norms for PRP distribution 1. Independent / Government Director (Two Members) Chairman / Member 2. Functional Director Member 7

PRP DETAILS FOR 2009 -10 AND 2010 -11 IREDA MOU Rating for both FYs Excellent Corpus for PRP Sl. No. 1 Particulars PBT for the year a Incremental Profit during the year Financial Years (Rs. /crores) 2010 -11 2009 -10 2008 -09 166. 69 141. 04 85. 90 55. 14 - b 5% of PBT (Maximum eligible corpus for PRP) 8. 33 7. 05 - c 3% of PBT (60% of PRP) 5. 00 4. 23 - d 10% of Incremental Profit (40% of PRP) 2. 56 5. 51 - e Total (‘c’+’d’) 7. 56 9. 74 - f Total Corpus for PRP (lower of ‘b’ or ‘e’) 7. 56 7. 05 - g Total PRP paid for the year 2 25. 65 1. 12 1. 11 - - i 60% of PRP (to be paid from amount ‘c’) 0. 67 0. 66 - ii 40% of PRP (to be paid from amount ‘d’) 0. 44 - Amount required for PRP 8

BELL CURVE GRAPH (2009 -10) 9

BELL CURVE GRAPH (2010 -11) 10

Thanks Indian Renewable Energy Development Agency Limited www. ireda. in 11