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

2. IREDA Highlights 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 crores since inception (as on )
Cumulative disbursement Rs.9723 crores since inception (as on )
IREDA MoU achievement for the last 2 financial years i.e & ‘Excellent’
Total Number of employees as on (Executives – 91 Non executives - 39)

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

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

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

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

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

8. PRP DETAILS FOR 2009-10 AND 2010-11 Corpus for PRP
IREDA MOU Rating for both FYs
Excellent
 Corpus for PRP
Sl.
No.
Particulars
Financial Years
(Rs./crores) 1
PBT for the year
166.69
141.04
85.90 a
Incremental Profit during the year
25.65
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’) g
Total PRP paid for the year
1.12
1.11 2
Amount required for PRP 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

9. BELL CURVE GRAPH ( )

10. BELL CURVE GRAPH ( )

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