ONGC CSR Final Nikhil

8/8/2019 ONGC CSR Final Nikhil

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CORPORATE

SOCIAL

RESPONSIBILITY

OIL AND NATURAL GAS

CORPORATION

LIMITED(ONGC)

INDIAN ESSENCE, GLOBAL PRESENCE

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Abstract:

This project aims to offer a preliminary case study exploration of the Corporate

Social Responsibility (CSR) issues being addressed and reported by Nikhil Limaye the

researcher.

Corporate Social Responsibility (CSR) is the commitment of business to

contribute to sustainable economic development, working with employees, their families,

the local community and society at large to improve quality of life, in ways that are both

good for business and good for development.

Although the contemporary CSR agenda is maturing, the term CSR has not yet

taken hold within many public sector agencies, either in industrial or developing

countries. Few government initiatives have been undertaken explicitly as pro-CSR

initiatives but nonetheless many have contributed effectively to the promotion of greater

social responsibility.

There is a significant opportunity for public sector bodies in developing countries

to harness current enthusiasm for CSR alongside key public policy goals and priorities

to encourage delivery of results in both respects.

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Acknowledgement:

No book is entirely created by an individual. Many people have helped to create

this book and each of their contribution has been valuable. The timely completion of this

book is mainly due to the interest and persuasion of Prof. Elizabeth. We take this

opportunity to thank her for his guidance, support and the faith she has shown to us.

We would like to thank Prof. Nilesh Manore, Head and co-coordinator for his

valuable advice given time to time. We would also thank Teaching and Non-Teaching

staff of Computer Department for allowing us to use computers, internet and printers

whenever required.

We thank Mr.Gadade our Director for looking after our work and for givingvaluable comments.

Finally, it is only when one writes a book that one realizes the power of Microsoft

Word, from grammar checks to replace-alls. It is simple without this software, this

book would not be written. Thank you Microsoft Corporation!

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Executive Summary:

Page No.

Abstract 2Acknowledgement 3

Executive Summary 4

Certificate of Approval 5

Chapter-1 Introduction to Oil and Gas Industry 6-9

Chapter-2 Introduction to Oil and Gas CorporationLimited (ONGC)

10-29

Chapter-3 Introduction to CSR 30-34

Chapter-4 Introduction to the project 35-36

Chapter-5 Facts and Findings 37-62Chapter-6 Analysis and Interpretation 63

Chapter-7 Conclusion and Recommendations 64-65

Bibliography 66

Certificate of Approval:

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This is to certify that Mr. Nikhil Limaye, Roll no -29, student of first semester,

under the course of Masters of Management Studies of Changu KanaThakur Institute of

Management Studies and Research, has successfully completed the term project titled

Corporate Social Responsibility, under the guidance of Prof. Elizabeth Matthews, in

fulfillment of requirements of the MMS course.

Prof. Elizabeth Matthews Prof. Gadade

CKTIMSR

Director (CKTIMSR)

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Chapter 1:

Introduction to the Industry

The oil and gas industry has been instrumental in fuelling the rapid growth of the

Indian economy. The petroleum and natural gas sector which includes transportation,

refining and marketing of petroleum products and gas constitutes over 15 per cent of the

country's gross domestic product (GDP).

As per an Investment Commission report, petroleum exports have also emerged as

the single largest foreign exchange earner, accounting for 11.5 per cent and 15 per cent of

the total exports in 2005-06 and 2006-07. The growth continues in the new fiscal with the

export of petroleum products touching US$ 20.03 billion during April-December 2007.

However, India's domestic demand for oil and gas is also on the rise. As per the

Ministry of Petroleum, demand for oil and gas is likely to increase from 176.40 million

tones of oil equivalent (mmtoe) in 2007-08 to 233.58 mmtoe in 2011-12.

As per the BP Statistical Review of World Energy, 2006, India's primary

commercial energy consumption (including coal, oil and gas) was 423 mmtoe in 2006,

making it the fourth largest consumer in the world with a four per cent share of the global

primary commercial energy consumption. The primary commercial energy consumption

in India grew at a compound annual growth rate (CAGR) of 4.5 per cent during 1996-

2006, which is more than double the global CAGR during the same period. Of the total

primary commercial energy consumption in India, oil constitutes 28 per cent and natural

gas 8 per cent. Coal continues to be the dominant fuel accounting for 57 per cent of total

energy consumption.

Domestic production of crude oil has been increasing steadily. While production

grew by 5.6 per cent in 2006-07 to 33.98 million tons (MT) from 32.19 MT in 2005-06, it

has increased to 34.11 MT during 2007-08.

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Global Refining Hub

India is emerging as the global hub for oil refining as it enjoys competitive cost

advantage, with capital costs lower by as much as 25 to 50 per cent over other Asian

countries.

Already, the fifth largest country in the world in terms of refining capacity (up from

19th in 1995), with a share of 3 per cent of the global capacity, India is likely to boost its

refining capacity by 45 per cent or 65.3 mtpa (million tons per annum) over the next five

years, according to a Deutsche Bank report. According to the report, Indian companies

plan to increase their refining capacity to 242 mtpa by 2011-12 from about 149 mtpa in

2007.

Indian Oil Corp (IOC) plans to increase its refining capacity from 60.2 mtpa to 80

mtpa.

The two public sector undertakings, GAIL (India) Ltd and Indian Oil Corporation

Ltd (IOCL), are looking at setting up a US$ 2.09 billion petrochemical plant at

Barauni, which would be of a minimum 3 lakhs tonnes capacity.

ONGC plans to scale up its refining capacity up to 45.5 million tonnes by 2009-

10 from about 13 mtpa in 2006.

Reliance Industries Ltd is constructing a new refinery in the Jamnagar SEZ with a

capacity of 29 mtpa, which will be operational shortly.

Nagarjuna Oil Corp is planning a new refinery at Cuddalore with a capacity of 6

mtpa to be operational by 2011 at an investment of US$ 1.05 billion.

Essar Oil plans to more than triple the capacity at its refinery at Vadinar to 34

mtpa from the current 10.5 mtpa at an investment of US$ 6 billion.

Hindustan Petroleum Corporation plans to invest US$ 2.5 billion in expanding its

Visakhapatnam refinery capacity to 16 million tonnes.

In fact, Reliance's new refinery (which will be the world's only full-export-orientedrefinery) will be the world's sixth-largest. And with the existing refinery of RIL, the

combined capacity (RPL along with RIL) will turn the Jamnagar complex into the world's

largest single-location refinery.

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Retail Sector

The surge in automobile sales has led to significant investments being made to

develop and expand the petroleum retail market. According to US-based consultancy

Keystone, automobile sales which number about a million vehicles is likely to grow to

about 20 million a year by 2030, making India, the third largest automobile market in the

world.

Consequently, many companies have stepped up investments to expand their

retail network. For example, Indian Oil Corporation (IOC), Bharat Petroleum

Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) together are planning

to open over 3,000 retail outlets this financial year as against 2,000 outlets opened last

year. Similarly, Reliance plans to build 6,000 services stations.

Gas

Gas demand in India is dominated by the power and fertilizer sectors which

account for 66 per cent of the current consumption. In 2006, the total gas demand was

estimated to be 152 million standard cubic metres per day (MMSCMD). The gas demand

is projected to grow at a CAGR of 8.6 per cent during 2007-08 to 2016-17 to reach a

level of 320 mmscmd, which is more than double the existing demand, according to a

report by Ernst & Young titled 'Indian Natural Gas Sector'. Significantly, the share of

natural gas in the overall fuel mix is expected to increase from 8 per cent in 2006 to 20

per cent by 2025.

Encouraged by this scenario, a number of players have evinced a keen interest in

laying pipelines in the domestic market to supply gas to the consumers. For example,

Gujarat State Petronet Ltd plans to connect all 25 districts of the state with 2,200-

kilometre high pressure gas pipeline laid down across the state. Reliance Industries plans

to invest between US$ 5.45 billion to US$ 6.54 billion over the next three years to lay a

10,000 km pipeline grid that covers main gas transport trunk lines supplemented by spur

lines crisscrossing the country.

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Government Initiatives

The government has been taking many progressive measures to create conducive

policy and regulatory framework to attract investments into this industry.

The Petroleum and Natural Gas Regulatory Board Bill, 2005 was passed by the

Parliament in 2006. The bill envisages setting up of an independent regulatory

mechanism with the objective of regulating the refining, processing, storage,

transportation, distribution, marketing and sale of petroleum production and

natural gas.

Allowing 100 per cent FDI in private refineries through automatic route and 26

per cent in government-owned refineries.

Implementation of the New Exploration Licensing Policy (NELP) in 1997.

Abolition of the administered pricing policy.

100 per cent FDI is also allowed in petroleum products, exploration, gas pipelines

and marketing/retail through the automatic route.

The first mega oil, chemical and petrochemical investment hub is slated to come up at

Andhra Pradesh, and is expected to attract a whopping investment of US$ 86 billion.

Mittal Energy Investments, Total SA of France and oil refining and marketing major,

Hindustan Petroleum Corp (HPCL), along with Oil and Natural Gas Corporation

(ONGC) are some of the companies making an investment in the proposed petroleum,

chemical and petrochemical investment region (PCPIR). A similar PCPIR is likely to

come up at Bharuch in Gujarat.

Road Ahead

An expanding economy with its concomitant increase in energy demand is likely

to throw open huge investment opportunities in the oil and gas industry. According to a

CII-KPMG report"India Energy Inc. - Emerging Opportunities & Challenges"India's

energy sector would provide investment avenues worth US$ 120 billion-150 billion over

the next five years.

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Chapter 2:

Introduction to Oil and Natural Gas Corporation

Limited (ONGC)

Vision and Mission

ONGCs vision and mission reflect ONGCs commitment to Millennium

Development Goals by focusing on health, safety and environment and to enrich the

quality of community life. Further, ONGC is aligned to imbibe high standards of business

ethics and organisational values, foster a culture of trust, openness and mutual concern to

make working a stimulating and challenging experience for ONGCians and strive for

value addition for all its stakeholders. ONGC believes in action and strives to deliver the

desired results under the following principles of Global Compact.

Business should support and respect the protection of internationally

proclaimed human rights.

Business should ensure that they are not complicit in human rights abuses.

Business should uphold the freedom of association and the effective

recognition of the right to collective bargaining.

Business should support the elimination of all forms of forced and compulsory

labour.

Business should support the effective abolition of child labour.

Business should support the elimination of discrimination in respect of

employment and occupation.

Business should support a precautionary approach to environmental

challenges.

Business should undertake initiatives to promote greater environmental

responsibility.

Business should encourage the development and diffusion of environmentally

friendly technologies.

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Business should work against corruption in all its forms, including extortion

and bribery.

About the company:

Keshava Deva Malaviya- realised the importance of an indigenous petroleum

industry in India and laid the foundation of ONGC in august 1956. the scientists and the

engineers of ONGC, fuelled by his pioneering spirit, have made ONGC the Numero Uno

Exploration and Production Company of Asia today.

The corporate history of ONGC began in 1956, with the mandate for exploration

and production (E&P) of hydrocarbons in India. Over the past 45 years, ONGC has

discovered nearly six billion tonnes of Oil and Gas reserves in India. The Corporation is

now implementing a Strategic Plan to double the reserve-base in the next 20 years.

Simultaneously, major investments are being undertaken to improve recovery from the

producing fields, and to bring additional reservoirs into accelerated production. A major

campaign for deep-water exploration has been initiated.

Awarded Asia's Best Oil and Gas Company, Oil and Natural Gas Corporation

Limited is seen as the flagship for oil and gas companies (public sector) in India. Its

competitive strength lies in Strong intellectual property base, information, knowledge,and skilled and experienced human resource base.

ONGC is the owner of the largest pipeline (11000 kilometers) in India.

ONGC alone contributes over 84 per cent of Indian's oil and gas production.

ONGC has the distinction of having paid the highest-ever dividend in the Indian

corporate history.

ONGC has 5 regional offices across India and two plants.

In terms of its human resource base, ONGC has the following noteworthy features:

ONGC has an experienced and professional human resource base of more than

40,000 employees.

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Apart from the quarterly and other job incentives, ONGC has successfully

incorporated various Reward and Recognition Schemes, Grievance Handling

Scheme and Suggestion Scheme.

ONGC has also set up 9 institutes offering specialized courses in refining, mining,

etc.

ONGC believes in participative culture and open communication.

ONGC is one of the pioneers of offshore and onshore drilling in India and is now

looking forward towards expansion in deepwater exploration and drilling and other allied

areas of service sector.

ONGC-Videsh Ltd. (OVL), a wholly owned subsidiary of ONGC, has been making

significant strides in acquisition of equity Oil & Gas abroad. The gas property in

Vietnam, with 45% participation by OVL, is due to go on stream this year. Development

of facilities in the Sakhalin-I Oil & Gas Field (OVL's participating interest is 20%) is

progressing well; the first delivery of crude is scheduled in 2005, followed by gas in

2007. OVL is currently engaged in several other trans-national negotiations for

exploration assets as well as discovered fields.

The grant of Marketing Rights and the acquisition of MRPL are major steps in

transforming ONGC, the upstream leader, into an integrated Oil and Gas Corporate.

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Background and History

1947 - 1960

During the pre-independence period, the Assam Oil Company in the northeastern

and Attock Oil company in northwestern part of the undivided India were the only oil

companies producing oil in the country, with minimal exploration input. The major part

of Indian sedimentary basins was deemed to be unfit for development of oil and gas

resources.

After independence, the national Government realized the importance oil and gas

for rapid industrial development and its strategic role in defense. Consequently, while

framing the Industrial Policy Statement of 1948, the development of petroleum industry

in the country was considered to be of utmost necessity.

Until 1955, private oil companies mainly carried out exploration of hydrocarbon

resources of India. In Assam, the Assam Oil Company was producing oil at Digboi

(discovered in 1889) and the Oil India Ltd. (a 50% joint venture between Government of

India and Burma Oil Company) was engaged in developing two newly discovered large

fields Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum

project (a joint venture between Government of India and Standard Vacuum Oil

Company of USA) was engaged in exploration work. The vast sedimentary tract in other

parts of India and adjoining offshore remained largely unexplored.

In 1955, Government of India decided to develop the oil and natural gas resources in the

various regions of the country as part of the Public Sector development. With this

objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a

subordinate office under the then Ministry of Natural Resources and Scientific Research.The department was constituted with a nucleus of geoscientists from the Geological

survey of India.

A delegation under the leadership of Mr. K D Malviya, the then Minister of

Natural Resources, visited several European countries to study the status of oil industry in

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those countries and to facilitate the training of Indian professionals for exploring potential

oil and gas reserves. Foreign experts from USA, West Germany, Romania and erstwhile

U.S.S.R visited India and helped the government with their expertise. Finally, the visiting

Soviet experts drew up a detailed plan for geological and geophysical surveys and

drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61).

In April 1956, the Government of India adopted the Industrial Policy Resolution,

which placed mineral oil industry among the schedule 'A' industries, the future

development of which was to be the sole and exclusive responsibility of the state.

Soon, after the formation of the Oil and Natural Gas Directorate, it became

apparent that it would not be possible for the Directorate with its limited financial and

administrative powers as subordinate office of the Government, to function efficiently.

So in August, 1956, the Directorate was raised to the status of a commission with

enhanced powers, although it continued to be under the government. In October 1959, the

Commission was converted into a statutory body by an act of the Indian Parliament,

which enhanced powers of the commission further. The main functions of the Oil and

Natural Gas Commission subject to the provisions of the Act, were "to plan, promote,

organize and implement programmes for development of Petroleum Resources and the

production and sale of petroleum and petroleum products produced by it, and to perform

such other functions as the Central Government may, from time to time, assign to it ".

The act further outlined the activities and steps to be taken by ONGC in fulfilling its

mandate.

1961 - 1990

Since its inception, ONGC has been instrumental in transforming the country's

limited upstream sector into a large viable playing field, with its activities spread

throughout India and significantly in overseas territories. In the inland areas, ONGC not

only found new resources in Assam but also established new oil province in Cambay

basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt and

East coast basins (both inland and offshore).

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ONGC went offshore in early 70's and discovered a giant oil field in the form of

Bombay High, now known as Mumbai High. This discovery, along with subsequent

discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the

country. Subsequently, over 5 billion tonnes of hydrocarbons, which were present in the

country, were discovered. The most important contribution of ONGC, however, is its

self-reliance and development of core competence in E&P activities at a globally

competitive level.

After 1990

The liberalized economic policy, adopted by the Government of India in July

1991, sought to deregulate and de-license the core sectors (including petroleum sector)

with partial disinvestments of government equity in Public Sector Undertakings and other

measures. As a consequence thereof, ONGC was re-organized as a limited Company

under the Company's Act, 1956 in February 1994. After the conversion of business of the

erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corporation

Limited in 1993, the Government disinvested 2 per cent of its shares through competitive

bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering

shares to its employees.

During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant

and Gas Authority of India Limited (GAIL) - the only gas marketing company, agreed to

have cross holding in each other's stock. This paved the way for long-term strategic

alliances both for the domestic and overseas business opportunities in the energy value

chain, amongst themselves. Consequent to this the Government sold off 10 per cent of its

share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government

holding in ONGC came down to 84.11 per cent.

In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC

diversified into the downstream sector. ONGC will soon be entering into the retailing

business. ONGC has also entered the global field through its subsidiary, ONGC Videsh

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Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and

earned its first hydrocarbon revenue from its investment in Vietnam.

SHAREHOLDING PATTERN

Shareholding Distribution As On Quarter Ending September 30, 2008October 17, 2008

DETAILS OF PERSONS/ENTITIES HOLDING 1% OR MORE

SHARES AS ON SEPTEMBER 30, 2008

Name of the holder(s) No. of Shares Percentage Category

President of India 1,585,740,673 74.14 Indian Promoter

Indian Oil CorporationLtd. 164,480,857 7.69 Other Govt. Company

Gas Authority of IndiaLtd.

51,400,267 2.40 Other Govt. Company

Life InsuranceCorporation of India

52,084,647 2.44 Insurance Company

DISTRIBUTION OF SHAREHOLDING AS ON QUARTER ENDING

SEPTEMBER 30, 2008

Category No. of SharesPercentage of

Shareholding

A. Promoters Holding

1. Promoters

- Indian Promoters 1,585,740,673 74.14

- Foreign Promoters NIL --

- Persons Acting in Concert NIL --

Sub Total 1,585,740,673 74.14

B. Non-Promoters Holding

2. Institutional Investors

a. Mutual Funds and UTI 39,304,432 1.84

b. Banks, Financial Institutions, InsuranceCompanies (Central / State Govt. Instts. /

88,955,054 4.16

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Non-Govt. Institutions)

c. FIIs 136,708,977 6.39

Sub Total 264,968,463 12.39

3. Others

a. Private Corporate Bodies 246,672,985 11.54

b. Indian Public 39,204,321

c. NRIs/OCBs/Clearing Members 2,286,088 0.10

Sub Total 288,163,394 13.47

Grand Total 2,138,872,530 100.00

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Global Ranking

ONGC ranks as the Numero Uno Oil & Gas Exploration & Production (E&P)

Company in Asia, as per Platts 250 Global Energy Companies List for the year

2007.

ONGC ranks 23rd Leading Global Energy Major amongst the Top 250 Energy

Majors of the World in the Platts List based on outstanding performance in

respect of Assets, Revenues, Profits and Return on Invested Capital (RIOC) forthe year 2007.

ONGC is the only Company from India in the Fortune Magazines list of the

Worlds Most Admired Companies 2007.

ONGC is 9th position in the Industry of Mining, crude oil production. ONGC

ranks 239th position in the prestigious Forbes Global 2000 and Numero Uno

ranking amongst Indian Companies.

ONGC ranks 369th position in Fortune Global 500 list for the year 2006 based on

Revenues.

ONGC retains Numero Uno position from India in terms of Profits with overall

global ranking of 121st.ONGC ranks 21st among the top 50 publicly traded

Companies in Oil & Gas Industry, based on the year-end (2007) market

Capitalization by PFC Energy.

Represents Indias Energy Security

ONGC has single-handedly scripted Indias hydrocarbon saga by:

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Establishing 6.42 billion tonnes of In-place hydrocarbon reserves with more than

300 discoveries of oil and gas;

In fact, 6 out of the 7 producing basins have been discovered by ONGC: out of

these In-place hydrocarbons in domestic acreages, Ultimate Reserves are 2.29

Billion Metric tonnes (BMT) of Oil Plus Oil Equivalent Gas (O+OEG).

Cumulatively producing 762.3 Million Metric Tonnes (MMT) of crude and 440.7

Billion Cubic Meters (BCM) of Natural Gas, from 115 fields.

Indias Most Valuable Company

Biggest Wealth Creator Award for the period 2000-2006 instituted by M/s

Motilal Oswal Securities Ltd., third time in a row.

Ranked as the most respected Company in PSU Category in the 2006 Business

World Survey, with 13th position in the league of the most respected Indian

Corporate. Tops the Business India Super 100 list (among 284 Indian Companies

having Sales in excess of Rs. 500 Crore), based on Sales, Profit After Tax (PAT),

Net Fixed Assets and Market Capitalization (Dec 2006).

Topped the visibility metrics in Indian Oil and Gas Sectorand theonly PSU in the

top 10list of Indian Corporate newsmakers. Moodys Investor Servicesawarded

thehighest-ever Credit Ratingfor an Indian Corporate Baa1 (indicative Foreign

Currency debt rating). CRISIL and ICRA also reaffirmed ONGC the highest

credit rating of AAA and LAAArespectively.

Pioneering Efforts

ONGC is the only fullyintegrated petroleum company in India, operating along

the entire hydrocarbon value chain:

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Holds largest share of hydrocarbon acreages in India. Contributes over 78

percent of Indians oil and gas production.

About one tenth of Indian refining capacity.

Created a record of sorts by turning Mangalore Refinery and Petrochemicals

Limited around from being a stretcher case for referral to BIFR to the BSE

Top 30, within a year. Interests in LNG and product transportation business.

Competitive Strength

All crudes are sweet and most (76%) are light, with sulphur percentage ranging

from 0.02-0.10, API gravity range 26-46 and hence attract a premium in the market.

Strong intellectual property base, information, knowledge, skills and experience.

Maximum number of Exploration Licenses, including competitive NELP rounds.

ONGC owns and operates more than 15000 kilometers of pipelines in India,

including nearly 3800 kilometers of sub-sea pipelines.

No other company in India operates even 50 per cent of this route length.

Strategic Vision: 2001-2020

To focus on core business of E&P, ONGC has set strategic objectives of:

Doubling reserves (i.e. accreting 6 billion tones of O+OEG).

Improving average recovery from 28 per cent to 40 per cent.

Tie-up 20 MMTPA of equity Hydrocarbon from abroad.

The focus of management will be to monetise the assets as well as to assets the money.

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Sourcing Equity Oil Abroad

ONGCs overseas arm ONGC Videsh Limited (OVL), has laid strong foothold in

a number of lucrative acreages, some of them against stiff competition from international

oil majors.

OVLs projects are spread out in Vietnam, Russia, Sudan, Iraq, Iran, Libya,

Myanmar, Syria, Qatar, Egypt, Cuba, Nigeria Sao Tome Principe, Brazil, Nigeria and

Columbia. It is further pursuing Oil and gas exploration blocks in various oil and gas rich

countries.

During 2006-07, OVL has acquired stakes in 9 Projects in 6 Countries, out of

which 6 Projects were acquired through participation in bidding rounds and 3

from the existing concession holders.

Sakhlalin-1 project in Russia commenced export of crude oil from September

2006 and peak production of 250,000 bopd was achieved in March 2007.Crude

Oil production from Block 5A in Sudan commenced in May 2006.

Consortium of Blocks A-1 and A-3 in Myanmar made gas discoveries.

Consortium of North Ramadan Block in Egypt made Oil discovery.

OVL Currently has participation in 29 E&P Projects in 15 Countries.

Out of the existing 29 Projects, OVL is Operator in 14 Projects and Joint

Operator in 2 Projects in 9 Countries.

OVLs share in production of oil and oil-equivalent gas (O+OEG), together with

its wholly owned subsidiaries ONGC Nile Ganga BV and ONGC Amazon

Alaknanda Ltd, is 7.952 MMT.ONGCs strategic objective of sourcing 20 million

tonnes of equity oil abroad per year is likely to be fulfilled well before 2020.

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Frontiers of Technology

State-of-the-art seismic data acquisition, processing and interpretation facilities.

Uses one of the Top Ten Virtual Reality Interpretation facilities in the world.

Alliances with Transocean, Schlumberger, Halliburton and Baker Hughes, IPR,

Petro bras, Norsk, ENI, Shell.

One of the biggest ERP implementations in the Asia

Best in Class Infrastructure and Facilities

ONGCs success rate is at par with the global norm and is elevating its

operations to the best in class level, with the modernization of its fleet of

drilling rigs and related equipment.

ONGC has adopted Best-in-class business practices for modernization,

expansion and integration of all Info-com systems.

Onshore

Production Installations: - 240

Pipeline Network (km) :- 15,800

Drilling Rigs :- 70

Work Over rigs :- 74

Seismic Units :- 29

Logging Units :- 32

Engineering Workshops :- 2

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Virtual Reality Centre :- 5

Regional Computer Centre :- 5

Offshore

Well Platforms: - 147

Well-cum-Process Platforms :- 32

Process Platforms :- 13

Drilling Rigs :- 29

Pipeline Networks (km) :- 4,500

Offshore Supply Vessels :- 55

Special Application Vessels :- 4 (including 2 MSV)

Seismic Vessels :- 1

The Road Ahead

ONGC looks forward to become an integrated energy provider, with:

New Discoveries and fast track development

Equity Oil from Abroad

Downstream Value Additions & Forward Integration

Leveraging state-of-the art technology and global best practices

New Sources of Energy

Production from small and marginal fields.

ONGC GROUP COMPANIES

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The ONGC Group of Companies comprises of

1. ONGC Videsh Limited (OVL): OVL is the wholly own subsidiary of

ONGC which has been mandated to carry out international E&P

business operations of the parent company.

2. Mangalore Refinery and Petrochemicals Limited (MRPL): This is a

71.60% subsidiary of ONGC. It is the only other listed company besides

parent ONGC within the ONGC group.

3. ONGC Nile Ganga BV (ONG BV): This is the wholly ownedsubsidiary

of ONGC Videsh Limited which, in turn, is 100% owned by ONGC.The

company was incorporated in Netherlands and has 25% participatinginterest in the Greater Nile Oil Project in Sudan producing crude oil fromon-shore blocks earmarked for the purpose.

4. ONGC Mittal Energy Limted (OMEL): This is the joint venturebetween ONGC Videsh Limited and Mittal Investments Sarl in the ratio

of 49.98% : 48.02% with SBI Capital holding the remaining 2%. This

joint venture aims to source equity oil and gas from abroad for securing

Indias energy independence.

5. ONGC Mittal Energy Services Limited (OMESL): This is the joint

venture between ONGC Videsh Limited and Mittal Investments Sarl

with the same ownership structure as that of OMEL. This joint venture

will be involved in trading and shipping of oil and gas (including LNG)

sourced by OMEL from abroad.

6. ONGC Tripura Power Company Pvt.Ltd. (OTPCL): ONGC has

embarked upon a project for generation of power with 750 MW gas

based closed-cycle power plant. The project is being developed by a

SPV between IL&FS, Government of Tripura and ONGC with an equity

share of 50%, 24% and 26% respectively. The project is estimated to

cost around Rs 3800 Crores and is expected to be commissioned during

the first quarter of 2008.

7. Kakinada Refinery & Petrochemicals Limited (KRPL): This is a public private joint venture company formed pursuant to an MOU between MRPL, Kakinada Seaport Limited(KSPL), IL&FS and APGovernment, to set up an export-oriented refinery of 7.5 MMTPAcapacity at Kakinada in coastal Andhra Pradesh which is envisaged to beintegrated with bio-diesel facility.

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8. Kakinada SEZ Limited: In tune with the recent initiatives of Ministry

of Commerce and Industry, Govt.of India, for declaring Special

Economic Zones (SEZs) to boos industrial growth in the country,

ONGC/MRPL has become co-promotor under public-private partnership

to form this joint venture company and it is envistaged that KRPL and

other gas infrastructure units will be located within the Kakinada SEZ to

liverage financial initiatives and to bolster economic growth.

9. Mangalore SEZ Limited: With a view to providing synergy with

MRPL, large petroleum and petrochemicals based projects are envisaged

to be developed at Mangalore. With view to optimizing the capital cost

during the construction of the project and subsequently promoting saleof

petrochemical intermediates, a decision was taken to associate with a

special economic zone (SEZ) Contemplated for development at

Mangalore. The SEZ will be an SPV with Karnataka Industrial Areas

Development Board (KIEDB), Karnataka Chambers of Commerce and

Industry (KCCL) and ONGC between them bringing in 49% equity with

ONGC contributing 26%. IL & FS has offered to take the remaining

51% equity. This SPV is in the process of being incorporated.

10.

Dahej SEZ Limited: ONGC participating in the initiative of Govt. of

Gujarat has formed a joint venture company under public private

partnership to establish and develop necessary infrastructure facilities

within a land of 1740 hectares in cooperation with Gujarat Industrial

Development Corporation. ONGC is currently engaged in implementing

its C2-C3 extraction project, which will be located within this SEZ.

11.

Rajasthan Refinery Limited (RRL): With the recent discovery of waxyoil in Mangla and other adjoining structure by Cairn Energy India, itsPSC partner in Rajashtan Block, MRPL has been nominated by Govt. ofIndia as its nominee for buying the crude oil to be produced from this block. MRPL, in coordination with Cairn Energy, and as per duefacilitation by Rajasthan Govt., has proposed to form a joint venturecompany named Rajasthan Refinery Limited (RRL), which will examinethe techno-economic viability of establishing a well-head refinery of 7.5MMPPA Capacity and if found feasible will implement the same at a

suitable location in Rajasthan.

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Financial Statements:

Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '04 Mar '05 Mar '06 Mar '07 Mar '0

12 mths 12 mths 12 mths 12 mths 12 mt

Sources Of Funds

Total Share Capital 1,425.93 1,425.93 1,425.93 2,138.89 2,138.

Equity Share Capital 1,425.93 1,425.93 1,425.93 2,138.89 2,138.

Share Application Money 0.00 0.00 0.00 0.00 0.

Preference Share Capital 0.00 0.00 0.00 0.00 0.

Reserves 39,117.17 45,419.49 52,533.74 59,785.04 68,478.

Revaluation Reserves 0.00 0.00 0.00 0.00 0.

Net worth 40,543.10 46,845.42 53,959.67 61,923.93 70,617.

Secured Loans 0.00 0.00 0.00 0.00 0.

Unsecured Loans 11,407.79 9,916.22 12,722.61 15,109.07 12,482.

Total Debt 11,407.79 9,916.22 12,722.61 15,109.07 12,482.

Total Liabilities 51,950.89 56,761.64 66,682.28 77,033.00 83,100.

Mar '04 Mar '05 Mar '06 Mar '07 Mar '

12 mths 12 mths 12 mths 12 mths 12 mt

Application Of Funds

Gross Block 41,007.62 42,983.85 47,882.35 52,038.07 57,463.

Less: Accum. Depreciation 35,339.16 37,147.32 40,040.15 43,198.95 46,945.

Net Block 5,668.46 5,836.53 7,842.20 8,839.12 10,518.

Capital Work in Progress 25,184.99 28,838.35 33,373.92 37,794.16 41,154.

Investments 4,421.67 4,036.67 4,888.57 5,702.05 5,899.

Inventories 2,405.69 2,569.19 3,038.49 3,033.76 3,480.

Sundry Debtors 2,317.80 3,729.31 3,704.28 2,759.44 4,360.

Cash and Bank Balance 15.34 20.88 699.80 27.42 22,417.

Total Current Assets 4,738.83 6,319.38 7,442.57 5,820.62 30,258.

Loans and Advances 17,187.69 39,574.73 52,293.83 58,710.79 19,574.4Fixed Deposits 8,726.30 9,445.98 8,113.02 19,253.37 0.

Total CA, Loans & Advances 30,652.82 55,340.09 67,849.42 83,784.78 49,833.

Deferred Credit 0.00 0.00 0.00 0.00 0.

Current Liabilities 12,007.45 13,249.06 16,515.78 19,835.99 18,285.

Provisions 2,510.28 24,572.10 31,122.39 39,765.20 6,693.

Total CL & Provisions 14,517.73 37,821.16 47,638.17 59,601.19 24,979.

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Net Current Assets 16,135.09 17,518.93 20,211.25 24,183.59 24,854.

Miscellaneous Expenses 540.68 531.16 366.34 514.06 673.

Total Assets51,950.8

956,761.64 66,682.28 77,032.98 83,100.

Contingent Liabilities 22,456.31 26,593.45 32,907.71 34,157.17 26,006.

Book Value (Rs) 284.33 328.52 378.42 289.52 330.

Yearly Results ------------------- in Rs. Cr. -------------------

Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

Sales Turnover 32,063.93 46,362.94 47,922.87 56,632.81 59,848.52

Other Income 1,547.08 1,729.79 2,354.99 4,243.10 5,010.66

Total Income 33,611.01 48,092.73 50,277.86 60,875.91 64,859.18

Total Expenses 14,383.36 22,187.86 20,577.02 28,159.82 29,767.69

Operating Profit 17,680.57 24,175.08 27,345.85 28,472.99 30,080.83

Profit On Sale Of Assets -- -- -- -- --

Profit On Sale Of Investments -- -- -- -- --

Gain/Loss On Foreign Exchange -- -- -- -- --

VRS Adjustment -- -- -- --

Other Extraordinary

Income/Expenses-- -- -- -- --

Total Extraordinary

Income/Expenses-- -- 640.54 475.06 --

Tax On Extraordinary Items -- -- -- -- --

Net Extra Ordinary

Income/Expenses-- -- -- -- --

Gross Profit 19,227.65 25,904.87 29,700.84 32,716.09 35,091.49

Interest 46.75 37.71 46.97 21.50 58.98

PBDT 19,180.90 25,867.16 30,294.41 33,169.65 35,032.51

Depreciation 5,571.86 6,201.61 8,457.28 9,499.44 9,797.92

Depreciation On Revaluation Of

Assets-- -- -- -- --

PBT 13,609.04 19,665.55 21,837.13 23,670.21 25,234.59

Tax 4,958.77 6,685.12 7,313.74 8,027.29 8,920.05

Net Profit 8,650.27 12,980.43 14,523.39 15,642.92 16,314.54

Prior Years Income/Expenses 14.16 -2.62 -92.61 -- 387.11

Depreciation for Previous Years

Written Back/ Provided-- -- -- -- --

Dividend -- -- -- -- --

Dividend Tax -- -- -- -- --

Dividend (%) -- -- -- -- --

Earnings Per Share 60.66 91.03 101.85 73.14 76.28

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Book Value -- -- -- -- --

Equity 1,425.93 1,425.93 1,425.93 2,138.87 2,138.87

Reserves 38,326.49 44,638.32 51,917.40 59,020.98 67,554.61

Face Value 10.00 10.00 10.00 10.00 10.00

Competition

Last Price Market Cap.(Rs. cr.)

Sales

Turnover

Net Profit Total

Assets

ONGC 661.85 141,561.28 59,848.52 16,314.54 83,100.12

Cairn India 134.80 25,536.91 1.27 -78.82 29,373.49

GAIL 197.20 25,014.37 18,008.20 2,601.46 14,270.75

Reliance Natural 40.70 6,646.84 202.79 68.60 2,933.91

Aban Offshore 640.35 2,420.67 658.42 157.90 2,469.22

Hind Oil Explore 57.85 754.90 83.35 24.10 1,155.38

Jindal Drilling 240.00 550.35 413.23 18.99 276.53

Shiv Vani Oil 125.00 548.85 272.26 38.39 1,387.02

Selan Explore 126.60 182.51 34.46 13.10 71.33

Dolphin Offshore 125.20 119.75 227.71 16.26 232.91

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Chapter 3

Introduction to Corporate Social Responsibility

Definitions of social responsibility

Corporate social responsibility (CSR) is:

An obligation, beyond that required by the law and economics, for a firm

to pursue long term goals that are good for society

The continuing commitment by business to behave ethically and

contribute to economic development while improving the quality of life of

the workforce and their families as well as that of the local community and

society at large

About how a company manages its business process to produce an overall

positive impact on society

Corporate social responsibility means:

Conducting business in an ethical way and in the interests of the wider

community.

Responding positively to emerging societal priorities and expectations

A willingness to act ahead of regulatory confrontation

Balancing shareholder interests against the interests of the wider community

Being a good citizen in the community

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Is CSR the same as business ethics?

There is clearly an overlap between CSR and business ethics

Both concepts concern values, objectives and decision based on something than

the pursuit of profits

And socially responsible firms must act ethically

The difference is that ethics concern individual actions which can be assessed as right

or wrong by reference to moral principles. CSR is about the organisations obligations to

all stakeholders and not just shareholders.

There are four dimensions of corporate responsibility Economic - responsibility to earn profit for owners

Legal - responsibility to comply with the law (societys codification of right and

wrong)

Ethical - not acting just for profit but doing what is right, just and fair

Voluntary and philanthropic - promoting human welfare and goodwill

Being a good corporate citizen contributing to the community and the quality of

life

The debate on social responsibility:

Not all business organisations behave in a socially responsible manner

And there are people who would argue that it is not the job of business organisations to

be concerned about social issues and problems

There are two schools of thought on this issue:

In the free market view, the job of business is to create wealth with the interests of

the shareholders as the guiding principle

The corporate social responsibility view is that business organisation should be

concerned with social issues

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Free market view - a summary

The role of business is to create wealth by providing goods and services

There is one and only one social responsibility of business- to use its resources

and engage in activities designed to increase its profit so long as it stays will the

rules of the game, which is to say, engages in open and free competition, without

deception or fraud. [Milton Friedman, American economist]

Giving money away is like a self imposed tax

Managers who have been put in charge of a business have no right to give away

the money of the owners

Managers are employed to generate wealth for the shareholders - not give it away

Free markets and capitalism have been at the centre of economic and social

development

Improvements in health and longevity have been made possible by economies

driven by the free market

To attract quality workers it is necessary to offer better pay and conditions and

this leads to a rise in standards of living and wealth creation

Free markets contribute to the effective management of scarce resources

It is true that at times the market fails and therefore some regulation is necessary

to redress the balance

But the correcting of market failures is a matter for government - not business

Regulation should be kept to a minimum since regulation stifles initiative and

creates barrier to market entry

The free market case against corporate social responsibility

The only social responsibility of business is to create shareholder wealth

The efficient use of resources will be reduced if businesses are restricted in how

they can produce

The pursuit of social goals dilutes businesses primary purpose

Corporate management cannot decide what is in the social interest

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Costs will be passed on to consumers

It reduces economic efficiency and profit

Directors have a legal obligation to manage the company in the interest of

shareholders and not for other stakeholders

CSR behaviour imposes additional costs which reduce competitiveness

CSR places unwelcome responsibilities on businesses rather than on government

or individuals

The corporate responsibility view

Businesses do not have an unquestioned right to operate in society

Those managing business should recognise that they depend on society

Business relies on inputs from society and on socially created institutions

There is a social contract between business and society involving mutual

obligations that society and business recognise that they have to each other

Stakeholder theory

The basic premise is that business organisations have responsibility to various groups in

society (the internal and external stakeholders) and not just the owners/ shareholders

The responsibility includes a responsibility for the natural environment

Decisions should be taken in the wider interest and not just the narrow shareholder

interest

Arguments for socially-responsible behaviour

It is the ethical thing to do

It improves the firm public image

It is necessary in order to avoid excessive regulation

Socially responsible actions can be profitable

Improved social environment will be beneficial to the firm

It will be attractive to some investors

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It can increase employee motivation

It helps to corrects social problems caused by business

Enlightened self interest

This is the practice of acting in a way that is costly and/or inconvenient at present

but which is believed to be in ones best long term interests.

There is a long history of philanthropy based on enlightened self interests e.g.

Robert Owenss New Lanark Mills, Titus Salts Saltaire as well the work of the Quaker

chocolate makers such as Cadbury at Bournville and Rowntree in York.

Enlightened self interest is summed up in this quotation from Anita Roddick (founder of

the Body Shop):Being good is good for business

CSR behaviour can benefit the firm in several ways

It aids the attraction and retention of staff

It attracts green and ethical investment

It attracts ethically conscious customers

It can lead to a reduction in costs through re-cycling

It differentiates the firm from its competitor and can be a source of competitive

advantage

It can lead to increased profitability in the long run

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Chapter 4:

INTRODUCTION TO THE PROJECT

Through an in-depth exploration of the dilemmas, challenges, and complexities

inherent to current models of corporate social responsibility, the program will push the

frontiers of the field and bring into focus the next generation of issues facing

practitioners.

Role of Public sector

Inclusive and substantive growth is two main priorities of the Public Sector

Enterprises.

CSR activities are generally carried more by the Public Sector Enterprises in

comparison with the private sector.

Public Sector Enterprises are more inclined towards social benefits rather than

making profits.

Understand the effects of strategic corporate social responsibilityits benefitsand its costs

Drive corporate social responsibility throughout the organization, integrating itwith corporate strategy, decision making, and risk assessment.

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Realign corporate culture with corporate social responsibility strategies.

Understand the political context of operations, and successfully interact andcommunicate with governments, NGOs, and key stakeholders.

Ensure that systems are in place for both avoiding potential damaging events andmitigating the effects of a crisis after it has occurred.

Identify and explore the most critical emerging issues facing the field of corporate

social responsibility in the next decade.

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CHAPTER 5:

FACTS AND FINDINGS

Reviving Heritage Craft Industries

Project Laadli

Village Level Enterprises

Enlistment of Tribal Areas

ONGC Cauvery Asset Programme

Rotary Club Initiatives

Health Care

Supporting Entrepreneurship Projects

Education

Relief Fund Packages

Environment Protection Programmes

Safety Programmes

Sports

Others

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Reviving Heritage Craft Industries

ONGC, Chennai invited a proposal for supporting an Entrepreneurship

project from District Collector, Tiruvarur. He proposed that ONGC can provide

support to the Kurinji Women Self Help Group, Panayur Panchayat, Kottur Block,

Tiruvarur District, and Tamil Nadu. This SHG produces Coir from the locally

available coconut Fibres and marketing. Need Assessment for this initiative was

done. The area in which the project was to be undertaken was a remote backward

rural area. Most of the people were living below the poverty line. ONGC analysed

the feasibility of the project. It was observed that the raw materials required for the

coir industry were available from coconut trees in and around this area, and also,

60% of the products manufactured through this industry could be consumed locally

since there are good number of huts and cattle in this area. The women of this area

were unstintingly industrious to improve their standard of living; this was evident

from their objective of forming Self Help Group (SHG).

ONGC.s Support

Re-creating a lost heritage: Chanderi (Handloom Industry)

In the year 2004, ONGC came across a proposal from Commissioner, Handloom,

Madhya Pradesh seeking financial support for preserving the dying art of Chanderi

handloom, at Chanderi. Chanderi is a small town bordering Madhya Pradesh and Uttar

Pradesh on the banks of Betwa River. Chanderi has a population of around 30,000. With

about 3,500 looms actively working, almost 60% of this population is directly or

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indirectly dependent on the handloom business. Others make beedis (local cigarettes

using tobacco leaf) and earn dismally low wages. Chanderi textiles were patronized

initially by the Mughals in the 7th century AD. The elegance of the soft Chanderi colours

lies in their constant reference to nature. The magic is in warp and weft - taana and baana.

The silk yarn is largely imported Chinese or Korean; the cottons procured from

Coimbatore and Jaipur. Weaving is performed by one or two skilled workers of the same

family. The looms are traditional pit looms with throw shuttle. Chanderi brocades have

been the pride of Indian craft and are much appreciated within India and the world over.

The delicate fabric with intricate ethnic motifs, hand woven into the material are

available in a variety of items like saris, dress material, ladies stoles, table cloths, cushion

covers and table napkins. Objective of the project: Invasion of the business by

exploitative traders created a huge economic gap between the weavers and traders. The

weavers lacked the resources to buy and store raw material, create and circulate samples

of products besides lacking know-how about designing and market opportunities. Few

contemporary designers worked on the fabric and Chanderi lost out as a fabric for the

fashion conscious buyer. The weaving community also began to suffer as the traders and

moneylenders cornered all profits and paid very little wages. At their mercy, the weavers

were resigned to bondage. Details of selection of target population: Weavers faced

following constraints:

Diminishing demand of the handloom products- Due to lack of designs which

were not very appealing and were very

Stereotyped.

Lack of marketing support

Lack of guidance

Lack of infrastructure

Illiterate, innocent beneficiaries.

Lack of institutional buyers

Lack of new designs for the product

Lack of product innovations

Lack of modern manufacturing processes

Quality of the product going down

Lack of credit facilities(productive and consumptive)

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Seasonal nature of work

In this vulnerable time, 30 odd weavers came together to form Bunkar Vikas Sanstha

(BVS), a SHG under the aegis of United Nations Industrial Development Organisation.

Weavers now had their own organisation to address their problems on long term basis in

self sustainable manner. BVS was established in 2004 as an apex body of 13 Self Help

Groups of 119 weavers of Chanderi handloom with an objective of economic and social

empowerment of the weaver community. Implementation of the project: Considering the

request from BVS appeared doubtful for acceptance by ONGC, as the village Chanderi

does not come under ONGC.s operational area. However, on careful scrutiny, it was

observed that assisting a project focused on preserving Indian heritage and

mainstreaming the poor weavers (comprising of mainly poor women from minority

community) towards sustainable development would be an ideal CSR Initiative. This was

followed by market survey and other correspondences to ascertain the sustainability of

the project. It was learnt that the hand woven fabric was gradually a dying art as mill

woven textiles had swamped the market and needed support to become self-sustainable.

ONGC joined this fledgling movement with a corpus fund. The weavers used this much

needed money to buy raw material. The weavers were exposed to exhibitions and

traditional fairs. They were the new entrepreneurs. Armed with expertise, they created

modern elegant designs and marketed the heritage art innovatively. Pranpur, another

village in neighbourhood, with about 250 functional looms approached BVS to recreate

the success story of Chanderi. To take this initiative further, ONGC supported BVS once

again with seed money for the micro-finance activities. Today 60 Self Help Groups are

engaged in microfinance activities by practicing regular savings and inter-lending to

members. This was followed up with an support to BVS for purchasing a land to establish

an Dying and R&D Centre. Extent and role of the communities: Presently there are 3000

active looms in Chanderi and women play a substantial role in the production process.

This heritage craft provides employment to 18,000 inhabitants. The traditional

woodworker still makes the looms and repairs them. Preparatory work is carried out in

the narrowest lanes with the family members pitching in. Various Government agencies

both at State and Central Level are actively involved in protection of the trade at

Chanderi.

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With ONGC as their guide, BVS has begun its journey towards total empowerment.

ONGC has endeavoured to strengthen BVS as an institution and was also initiated a

brilliant concept of bulk purchasing of their produce as souvenir, gifts etc. for internal use

in ONGC.

Project Laadli

ONGC launched project Laadli along with Population First to create awareness

on Save the Girl Child campaign. A panel discussion was held with eminent

cine artistes, doctors, social workers, lawyers and journalists. This generated

immense interest and volunteers came forward to take the campaign ahead.

Weekly radio programs are now being broadcast on Asmita channel of All India

Radio, Mumbai conceptualized and developed by ONGC volunteers, A special

workshop Prayas was held to launch the radio programme for Laadli.

Village Level Enterprises

Construction of work sheds for Village Level Enterprises was another important

CSR activity by ONGC Western Offshore Unit, Mumbai. Project support was

provided to Trust for Village elf Governance at Kuthambakkam to convert locally

produced units into finished goods, The funds provided were utilized for sheds

for oil extraction, building materials such as Micro concrete roofing tiles, pavingblocks, energy efficient handlooms, stoves, lamps and dairy processing.

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Enlistment of Tribal Areas

In the tribal areas at Bastar, the thrust area of ONGC Western Offshore Unit,

Mumbais special CSR initiative was the eradication of sickle cell anemia and

nutrition of children. For this, it aligned with Bhartiya Kushtha Nivarak Sanstha

(BKNS), THE NGO formed by former ONGCians.

ONGC Cauvery Asset Programme

The ONGC Cauvery Asset, Karaikal in Southern part of India organized Artificial

Limb Camp in the year 2006 in association with Rotary Club, Karaikal. The Base

Office of Cauvery Asset is situated in Karaikal, which falls in the Union Territory

of Puducherry. The nearest well-equipped Hospital is 300 Km away from

Karaikal. Due to poverty, the polio affected persons and accident victims are not

able to get artificial limbs.

Rotary Club Initiatives

During last two years, the Rotary Club has carried out project named Roataplast

for corrective surgery for cleft lip palates. More than 100 patients per year are

getting benefits. Medical professionals and paramedical staff from United States

and other countries attended project. ONGC has supported this initiative during

last year, ONGC Mahila Samiti; the wives association of ONGC employees, in

association with Rotary Club of Karaikal conducted free Hearing Aid Camp in the

premises of ONGC. Hundreds of patients benefited out of this camp.

Health Care

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The Thalassemia Society of India. Kolkata, approached ONGC with a project for

providing equipment called Alisa Washer, which is used for carrying out various

pathological tests which are crucial for treatment of Thalassemia patients. The

project was taken up because Thalassemia, as we all know, is a dreaded genetic

blood disorder and is truly a social concern. Thalassemia affected patients,

particularly children, were beneficiaries. On an average about 1800 Thalassemia

affected patients will be benefited every year out of this one Alisa Washer.

Equipment provided by ONGC. Thalassemia affected patients, particularly

children, were the beneficiaries. The Thalassemia Society of India purchased and

installed the Alisa Washer instrument in the last week of January, 2008 and up to

20.03.2008, as per report received from them, about 300 blood samples of

Thalassemia affected patients mainly children have been tested. So on an average

about 1800 Thalassemia affected patients will be benefited every year out of this

one Alisa Washer equipment provided by ONGC. The Thalassemia Society of

India is located at Kolkata where all ONGC installations are presently located

including the Headquarters of CBMDP & MBA Basin. Doctors and experts from

the Society have made number of presentations and awareness campaign for the

employees of ONGC and their wards which is considered to be very helpful and

appreciated by one and all. CSR team also visited the Institute number of times

and found that the beneficiaries are mainly from the families of have-nots who

cannot afford expensive treatment of Thalassemia from private health institutions.

For poor people and slum dwellers of Kolkata, this Society is doing yeomans

service in the field of eradication of a disease, which is affecting large number of

people of the society. Working of this particular organization and also that of

some other similar organizations are being closely monitored by ONGC so that

the maximum benefit reaches the marginalised.

ONGC as an organization has partnered an initiative with its retired employees at

Dehradun to render service to the poorest of poor and needy. The retired

employees formed the Life Care Society an NGO meant for serving the under-

privileged by reaching out to the people in the hinterland of Uttarakhand. The

Society owes its birth to ONGC and weekly medical camps organized for the

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needy. Every village has been given a doctor, who is plying a very significant

role by treating patients with different kinds of ailments pertaining to eye, dental

and other chronic ailments. Pondha, Bansiwala, Karbari and Sherpur are some of

the villages where the Society is working pro-actively. ONGC has been very

supportive to Life Care Society since its inception. Not only does ONGC provide

financial aids but also the entire infrastructure of ONGC is made available to Life

Care Society.

Roorkee School for the Deaf

It is the first school for the deaf in India located on the campus of a hi-tech

institute. IIT Roorkee and managed by its faculty and experts. The school has an

excellent tam of highly qualified, trained and dedicated teachers. Some of whom

have been trained in the best of the training institutes in India and abroad. The school

for the Deaf is run and managed by IIT Roorkee. Mostly the faculty members of IIT

Roorkee are the members of the management committee and at the same time are

rendering their services voluntarily to run the school as a community supported

model wherein donations from individuals and organizations in both cash and kind

mainly to meet the expanses of the school. ONGC impressed and inspired by the

voluntary services of the faculty members decided to support this noble initiative of

IIT Roorkee by extending a grant. The school is trying to educate and trained the

deaf children of Roorkee and several other villages / town around Roorkee. They are

trying to train them in all the independent living skills which they require to lead a

normal health life. The school undertakes the following activities for the deaf:

20 modern equipment scientific approaches. OHP, LCD projector, computers,

Internet, TV/VCR, camera and associated software.

Speech therapy in addition to the normal speech and auditory training equipment,

the school also has the latest computer aided speech development system.

Research based model. Students and faculty of IIT actively undertake R&D

activities for the benefit of the deaf children such as development of assistive

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devices educational technology, teaching aids and software etc. ONGC extended

the support to create the infrastructure for a more useful learning environment on

scientific lines like installation of modern computers and accessories with the

requisite software.

Mobile Blood Donation Van

Support from ONGC has been sought for a fully equipped mobile blood donation

van with the purpose of the blood bank reaching the donors rather than donors going

towards them. Rotary Club in Delhi has set up a state-of-the-art voluntary blood bank

at a cost of Rs. 6.0 crores to provide safe blood to the needy people at a meagre

processing charge. The blood bank is housed in a five story centrally air conditioned

building providing nearly 55000 units of blood every year. The Rotary Club earlier

had a mobile van for blood donation and has been utilizing the existing van

extensively by organizing a number of blood donation camps. Till date more than

320 blood donation camps in and around Delhi have been organised. The present

vehicle, which was acquired six years ago has been rendered unserviceable, hence,

the request for a new vehicle has been received by ONGC. As ONGC focuses on

healthcare under its CSR, it has been supporting a number of hospitals, mobile vans,

primary health centres and medical camps. ONGC decided to collaborate with

Rotary, which is a reputed organization and they are rendering yeomen services to

the marginalized by providing the blood to the poor and needy at a meagre

processing charge. Hence, ONGC felt it appropriate to provide this equipped vehicle

for helping them to collect blood from various donors by reaching them directly at

their place of their stay.

Shraddha Rehabilitation Foundation is an NGO dealing with the problem of the

mentally ill Road side destitute. Shraddha is a humane experiment, perhaps the

only one of its kind in India, providing treatment, custodial care and rehabilitation

to a neglected group of mentally-ill roadside destitute and reuniting them with

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their lost families. It is a combination approach that marries medication,

innovative psychosocial intervention and occupational engagement. ONGC has

supported this project by providing 100 beds to the mentally ill road-side destitute

so as to provide some comfort to these destitute along with a Diesel Generator for

use during power cuts. At present there are about 60-65 destitute in the

rehabilitation centre, it is understood that in the city of Mumbai there are around

500 such road-side destitute aimlessly roaming in the metropolis of Mumbai.

Such a project can help the society and the nation at large. Shraddha

Rehabilitation Foundation is an NGO dealing with the problem of the mentally ill

roadside destitute. ONGC has supported this project by providing 100 beds to the

mentally ill road-side destitute so as to provide some comforts to these destitute

along with Diesel Generator for use during power cuts.

Health care being one of ONGCs areas of concern, it has supported a major

initiative taken to fight cancer. Silchar, located in Southern part of Assam state

and surrounded by Mizoram, Tripura, parts of Manipur and Meghalaya in the

North Eastern Region of India has been also on the World map for its inhabitants

being susceptible to the dreaded disease cancer. The unfortunate people of this

region who get afflicted by cancer can hardly afford to avail the treatment at

Delhi, Mumbai, Vellore and other metro cities of the country. In the light of

above problems, a group of social activists drawn from diverse professions

formed the Cachar Cancer Hospital Society in 1992, and approached ONGC for

financial assistance for procurement and installations of CT Scan Machine in the

hospital.

Dedicated to the mission of the restoring eye sight for the poor and the

marginalized, Anugraha Drishtidaan ha been offering its services regularly for the

last many years. The NGO is being generously supported by ONGC at all its

work Centres and nationally. In the year 2007-2008 eight number of camps have

been organized with a cumulative reach of 37565 OPD patients , distribution of

medicines to 23032 patients; distribution of spectacles, dark glasses to 12083

patients; identification of 5072 patients with cataract and cataract operations

(IOL) performed on 4152 patients.

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Work centers OPDAttendance

Medicinebeneficiaries

Spectacles/glassdistribution

Cataract casesindentified

CataractOperations done

Assam 1096 891 89 108 89

Gujarat 929 369 691 122 94

Rajahmundry 1696 581 972 186 153

Karaikal 500 288 160 60 51

During the year 2007-08, the ONGC Western Offshore Unit, Mumbai organized a

Mega Multidisciplinary Medical camp at Palghar. 2300 patients of fishermen

community availed benefit of the Camp. 102 cases of Cataract were detected and

operated, 300 persons were provided spectacles and 40 cases of anemia were

detected and supplements provided.

A mega multi-disciplinary Medical Camp was held at Uran. In the free Medical Camp

organized at village Chanje Uran, 670 patients were examined and 69 cases treated for

cataract by 17 specialist doctors, 9 ONGC doctors and 15 paramedics who volunteered

services.

A multidisciplinary medical camp was held at Bhatha village where Shri Satya Sai

Seva Samiti and ONGC volunteers rendered service to 360 patients, Eye checkups and

audiometer tests were conducted and medicines provided.

Swalvavlamban: Reach where needed

The ONGC Cauvery Asset, Karaikal in Southern part of India organized Artificial

Limb. The Base Office of Cauvery Asset is situated in Karaikal, which falls in the

Union Territory of Pondicherry. The nearest well-equipped Hospital is 300 km away

from Karaikal. Due to poverty, the polio affected persons and accident victims arenot able to get artificial limbs. Many NGOs/Voluntary Organisations conduct regular

Health Camps and Eye Camps. However, it was noticed by the Asset that no NGOs/

Voluntary Organisations came forward to conduct the Artificial Limb camp, as it

requires professional expertise from places like Jaipur and the project involves huge

expenditure. Hence, ONGC took up the challenges of organising a specific camp to

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distributed artificial limbs. Beneficiaries of the Camp were mostly from the

operational districts of Cauvery Asset, Karaikal. The list of beneficiaries was

screened and finalized by Rotary Club in association with ONGC. The Camp

provided 175 callipers/ Jaipur foot to 115 nos. of needy and downtroddenpeople in

and around Karaikal, who could not afford to spend money for the same. The Asset

organized another Camp with the association of Rotary Club wherein 167 callipers/

Jaipur foot and crutches were provided to 97 nos. of persons from 12 to 17 th February

2008. During last two years, the Rotary Club has carried out project named

Roataplast for corrective surgery for cleft lip palates. More than 100 patients per year

are getting benefits. Medical professionals and paramedical staff from United States

and other countries attend the project. ONGC has supported this initiative during last

year, ONGC Mahila Samiti, the Wives Association of ONGC employees, in

association with Rotary Club of Karaikal conducted free Hearing Aid Camp in the

premises of ONGC. Hundreds of patients benefitted out of this camp.

Supporting Entrepreneurship Projects

ONGC, Chennai invited a proposal for supporting an Entrepreneurship project from

District Collector, Tiruvarur. He proposed that ONGC can provide support to the Kurinji

Women Self Help Group, Panayur Panchayat, Kottur Block, Tiruvarur District, and

Tamil Nadu. This SHG produces Coir from the locally available coconut Fibres and

marketing. ONGC supported 15 Women Self Help Group Members and 55 rural family

members through this initiative. ONGC provided job opportunities to rural local people

in Panayur Panchayat and other adjoining villages. By improving the institution through

modernization, ONGC indirectly provided employment to the rural youths in producing

and marketing the coir materials.

The objective of the project was

to provide regular employment to the rural woman folk

to improve the socio economic status of rural men and women

to mobilize the industry in rural area

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to provide financial rotation in the remote village

This project has enabled them to purchase the above machineries to modernise and

increase their daily production, generate more income and provided employment to the

rural poor.

Education

Nanhi Kali

Teaching an individual to make bread and not giving him bread, is part of our

CSR policy. In line with this, ONGC very pro-actively is associated with Nanhi Kali

which was incepted in 1996 by the KC Mahindra Education Trust and has been

successful in reaching out to 28000 beneficiaries so far. Recently, KC Mahindra

Education Trust has partner with Nanhi Foundation to jointly manage Nanhi Kali. Nanhi

Kali was incepted to empower women by educating them. The realization that girls

constitute more than 3/5th of total out of school, primary school age population in the

world has got the issue of girls. Education to the fore at national and international front.

Female children are generally neglected and exploited at an early age. It is only through

education that the girl child can arm herself to the independent and self-reliant. Scope of

the project: Nanhi is working with communities in the following states in India: Andhra

Pradesh, Karnataka, Andaman & Nicobar, Madhya Pradesh, Chhattisgarh, Rajasthan and

Maharashtra.

Empowerment of women is possible only by focusing on participation of boys and

girls in the educational process. Since education of girls has not been emphasized due to

cultural and social stereotypes girls which restrict girls from attending the school and

initiative has been taken up through Nanhi Kali to provide education to female children.

Details of selection of target population: Following criteria is adopted to identify the

beneficiary:

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Girl children who are enrolled in any Government school. Out of school

children are also encouraged to enrol in school through bridge courses.

Girl children belonging to the poorest section of the society (family income

being below Rs.18, 000/- per annum).

Girl child who is a first generation learner

Girl children belonging to dalit, tribal and migrant communities.

Eldest girl child and girl children with many siblings

Girl children from communities where stereotypes high-ups

Girl children from female house-holds

Disabled girl children

In stage I, beneficiaries are identified. In stage II, the value of education to the

child, parents and the community is affirmed. Regular contact with the school is

maintained to track the childs attendance, academic progress, health status and

social skills. Direct support in the form of note books, stationery, uniforms,

examination fees and learning material is provided. Capacity building of children is

done. Extent and role of the communities: Teaches are sensitized to address the

community on general disparities and assert the dire necessity of educating the girl

child. 18 Long-term sustainability of the project: ONGC has partnered with Nanhi

Kali to sponsor 50 students from Class I to VII and another 50 students Class VIII to

X. Methodology used for monitoring progress on the project and feedback: Progress

is monitored monthly, quarterly and yearly by Nanhi Kali. ONGC has monitored the

progress of the girl child by retaining the profile of the students and their living

environment of the beneficiaries which are sponsored by ONGC. Learnings from

the project: Empowerment of women can come only by making an effort towards

making them and supporting all the initiatives to promote education among girl

child. The only can ensure development of an economy. However, the entirecommunity needs to be sensitized towards this issue.

Promotion of literacy and higher education

Grant of scholarship and assistance to deserving young pupils of weaker sections of

society

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Facilities for constructing schools, renovation of school buildings, other

infrastructure

Support to vocational training institutions for upgrading the skills of the local people

Development of the socially and economically weaker sections of the society

Sponsoring/ co-sponsoring professional meets, conventions, seminars etc.

At Goa, under the CSR Programme and SC/ST Component plan, IPSHEM hasupgraded facilities at 5 schools. 53 economically back-word students were provided

school uniforms.

Relief Fund Packages

A Summer Camp for underprivileged children was held at Mumbai. ONGC provided

financial support to Navnirmiti. 200 underprivileged children of municipal schools

attended the camp where innovative education techniques were used for popularizing

mathematics and science. Art, theatre and cultural activities were conducted for

personality development by students from Somaiya and Tata Institute of Social

Sciences.

A Sustained Community Development project was implemented at Uran. ONGC and

BAIF joined hands to develop 15 self help groups (SHGs) in three villages of Uran. 70

women members of the SHGs have been provided vocational training and various

items produced by the SHGs are being marketed locally. ONGC provided seed money

to each group.

In its Endeavour towards caring for the caring for the underprivileged at Uran, 108sets of old clothes were distributed to students of tribal schools and aid was given for

learning materials.

In its CSR projects at Hazira, ONGC and the NGO Lok Vikas Sanstha joined hands to

empower economically backward persons of Bhatpore, 100 windows were provided

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income generating and self development opportunities. Mutual help groups were set

up and skill training for the beneficiaries provided. Regular water supply, road

connectivity and aid during floods were provided by ONGC.

Environment Protection Programmes

Companys Environment Management System is based on the precautionary

principle. Various significant environmental issues have been identified and

actions have been initiated based on the management hierarchy of preventing

pollution at source, recycling & reuse of waste, treatment and disposal of the

waste. Various notable efforts done in this direction are as follows:

ONGC recognizes and shares the concerns of government and the public about

climate change. We understand that fossil fuels, which we also produce, has

contributed to an increase in Green House Gases (GHGs). Hence, ONGC has

embarked upon ambitious initiatives to manage and reduce GHG emissions,

which may be broadly classified into the following categories:

Reporting of GHG emissions Energy efficiency / conservation plans

Gas Flaring reduction

Renewable energy

For these ONGC has specially formed the following groups for the dedicated

efforts, close monitoring and deliverance of results

Carbon Management Group

Energy Centre for search in non-conventional energy sources

Health Safety and Environment Group

GHG emissions reporting

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ONGC is committed to consistent reporting of GHG emissions. We have

calculated direct GHG emissions related to our operations starting from

the year 2003 till date.

We are following the Compendium of Greenhouse Gas Emissions

Estimations Methodologies for Oil and Gas Industry developed byAmerican Petroleum Institute (API).

In our oil and gas operations, business growth increases our GHG

emission and we are continuing to work for emissions reduction in total to

offset the impact of these emissions.

Carbon dioxide makes up most of our GHG emissions (to the extent of 55-

57%) and it comes predominantly from our processing operations,

including exhaust from combustion units and flares. Our GHG reporting

includes direct emissions associated with the drilling, production and

processing of oil & gas and indirect emission from purchased grid

electricity for use in our operations.

Expanding green cover

Plantation of varieties of species of plants provides cleaner air apart from

maintaining biodiversity and providing aesthetic environment. Tree plantation in

ONGC is carried out by selecting trees as per bio-geo- climatic conditions of the area

to ensure desirable rate of survival. Every year ONGC sets a target of planting trees

and monitors the progress. In the year 2006, ONGC has planted 33030 trees in and

around our working area. Apart from yearly target of tree plantation around our

working area, we take up specific big projects. A recent example is the Dronagiri.

Projects which were aimed at greening of the barren Dronagiri hills and arid beach

near Uran Plant of ONGC. It posed a challenge to the organisation because of a harsh

terrain devoid of vegetation and showed resilience when we commenced our

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operations. While improving capacities of our plant we have demonstrated our

commitment to the environment in intent and execution. Seeds of fast growing

species were served along with fertilizer across the Dronagiri Mountains from the

helicopters in collaboration with Department of Forests, Government of India. Over

2.5 lakhs fully grown trees and 20 varieties of plant species make Dronagiri hills

completely green. More than a quarter million trees support the industrial ecosystem.

The once barren Dronagiri today is a nature trail to an environmental friendly

mindset. Years of concerted efforts in forestation have resulted in a verdant green

cover that adorns the landscapes surrounding the plant and nearby villages. A

steadily growing green belt along the beach has erected a protection against erosion

and is a virtual oasis for the stunning backdrop.

Renewable energy

In order to meet the worlds growing need for energy, we believe all potential

sources must be considered. New technologies and renewable energy sources,

including conservation related technology. ONGC has made headway in using solar

power at various platforms for powering its entire ITC infrastructure. During the year

2003-04 we have generated 112 MWh of power using solar photovoltaic, avoiding

use of fossil fuels. ONGC has also taken initiatives for setting up two wind power

projects of 50 MW each in Gujarat with help from Suzlon Energy Ltd. and

Karnataka. Power in Gujarat will be used in house and in Karnataka it will be sold.

On 31st March, 2008, first unit of clean and green energy as generated by ONGC by

fully commissioning three wind turbines of 1.5 MW capacities each. The power

generated by this wind farm in 1st phase will have captive usage at installations of

Ankleshwar and Ahmedabad. Apart from above, ONGC.s other initiatives in this

direction are:

Water Management

Biodiversity

CDM Project Activity

Methane to Market

Carbon Dioxide Capture and Sequestration

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Carbon Disclosure Project

GHG Accounting

QHSE Accreditation

Corporate Policy on Climate Change and Sustainability

Underground Coal Gasification (UCG)

Coal Bed Methane (CBM)

Safety Programmes

ONGC set up the Institute of Petroleum Safety, Health and Environment

management (IPSHEM) in 1989 with the objective of

ONGC CSR Final Nikhil

Documents

Transcript of ONGC CSR Final Nikhil