THDCIL signs Memorandum of Understanding (MoU) with the Ministry of Power for Performance Parameters every year wherein the performance is based on the ‘Balanced Score Card’ approach and includes financial and non-financial targets.
As per the DPE (Department of Public Enterprises, Govt. of India), financial parameters include targets for various parameters to reflect the size and productivity performance. Non-financial parameters include targets for parameters related to Human Resource Management, Corporate Social Responsibility & Sustainability, Project implementation, Sector Specific, and Enterprise Specific parameters.
The evaluation of Company’s performance against the predefined targets is done every year and performance rating is assigned by the Department of Public Enterprises (DPE)  on a five-point scale; Excellent, Very Good, Good, Fair and Poor.