INDIAN OIL CORPORATION (IOC)
Submitted in the partial fulfilment for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
Mrs. Sangeeta Joshi
BBA III SEM
A SESSION: 2013 – 2014
Lingaya’s Lalita devi institute of management & Science
I do hereby declare that the case study titled “INDIAN
OIL CORPORATION (IOC) INFERNO JAIPUR”
submitted by me in the partial fulfilment of the
requirement of the degree from LLDIMS affiliated to GGS
INDRAPRASTHA UNIVERSITY, DELHI is exclusively
prepared and conceptualized by me and is not submitted to
any other institution or university or published anywhere
before for the reward of any Degree/Diploma certificate. It
is original work of mine and has not been obtained from
any other part.
All sources of information and help are authentic and have
been acknowledge in the report.
Mrs. SANGEETA JOSHI
(Signature of faculty guide)
Nothing concrete can be achieved without an optional
combination of inspiration and perspiration. No work can
be accomplished without taking the guidance of experts. It
is only the critics from ingenious intellectual that helped
transform a product into a quality.
Finally, I gratefully acknowledge and express my deep
gratitude to Mrs. Sangeeta Joshi my faculty guides who
always helped and provides guidance during the course of
my project. I would like to extend my earnest thanks for
her assistance in the course of my project.
TABLE OF CONTENT
2. Company History
4. Joint Venture
5. Objective and Obligation
6. Case Study
Indian Oil Corporation - a Government of India enterprise, an India based Oil and
Natural gas produce and marketing company.
IOC (Indian Oil Corporation) was formed in 1964 as the result of merger of Indian Oil
Company Ltd.(Estd. 1959) and Indian Refineries Ltd. (Estd. 1958). Indian Oil
Corporation is the 21st largest petroleum company in the world and the ace petroleum
trading company among the National Oil Companies in the Asia-Pacific region. Indian
Oil Corporation group of companies includes Lanka IOC Limited, Indian Oil
(Mauritius) Ltd., IBP Co.Ltd., CPCL, BRPL and Indian Oil Technologies Ltd. Indian
Oil Corporation has 59 innovation patents to its name and many corresponding
International Patents in major countries.
IOC is a Fortune 500 company; current rank 153 (2006).
Indian Oil Corporation has to its name a number of Awards and Accreditations like •
Golden Peacock Eco Innovation Award-2006.
National Rural Development Corporation Award for IndeTreat IndeSweet, High
Performance additives, Nutan Wick Stove - 2005, 2002, 1981.
SESI-Biodiesel initiatives - 2005.
Rajiv Gandhi National Quality Award - 2005 and 1997.
DSIR Awards for I Max FCC Catalyst Additive & INDMAX, Rail road oils,
Energy Conserving Lubricants -2003-04, 2002, 1993.
Institute of Petroleum, UK for Oilivorous-S - 2003.
DST for INDMAX - 2003.
Membership of Russian Academy of Natural Sciences - 1999 Indian Chemical
Manufacturers Association Citation - 1996.
United Nations WIPO Silver Medal -1996.
United Nations World Intellectual Property Organizations Gold Medal - 1983.
IOC offers Services in areas like –
Indian Oil Corporation has registered a turnover of Rs 1,84,460.70 crore for the year
ended 31st March 2007.
The Indian Oil Corporation Ltd. operates as the largest company in India in terms of
turnover and is the only Indian company to rank in the Fortune "Global 500" listing. The
oil concern is administratively controlled by India's Ministry of Petroleum and Natural
Gas, a government entity that owns just over 90 percent of the firm. Since 1959, this
refining, marketing, and international trading company served the Indian state with the
important task of reducing India's dependence on foreign oil and thus conserving
valuable foreign exchange. That changed in April 2002, however, when the Indian
government deregulated its petroleum industry and ended Indian Oil's monopoly on
crude oil imports. The firm owns and operates seven of the 17 refineries in India,
controlling nearly 40 percent of the country's refining capacity.
Indian Oil owes its origins to the Indian government's conflicts with foreign-owned oil
companies in the period immediately following India's independence in 1947. The
leaders of the newly independent state found that much of the country's oil industry was
effectively in the hands of a private monopoly led by a combination of British-owned oil
companies Burmah and Shell and U.S. companies Standard-Vacuum and Caltex.
An indigenous Indian industry barely existed. During the 1930s, a small number of
Indian oil traders had managed to trade outside the international cartel. They imported
motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less than world
market prices. Supplies were irregular, and they lacked marketing networks that could
effectively compete with the multinationals.
Burmah-Shell entered into price wars against these independents, causing protests in the
national press, which demanded government-set minimum and maximum prices for
kerosene--a basic cooking and lighting requirement for India's people--and motor spirit.
No action was taken, but some of the independents managed to survive until World War
II, when they were taken over by the colonial government for wartime purposes.
During the war, the supply of petroleum products in India was regulated by a committee
in London. Within India, a committee under the chairmanship of the general manager of
Burmah-Shell and composed of oil company representatives pooled the supply and
worked out a set price. Prices were regulated by the government, and the government
coordinated the supply of oil in accordance with defence policy.
The Indian Oil Industry Evolves: Late 1940s-60s
Wartime rationing lasted until 1950, and a shortage of oil products continued until well
after independence. The government's 1948 Industrial Policy Resolution declared the oil
industry to be an area of the economy that should be reserved for state ownership and
control, stipulating that all new units should be government-owned unless specifically
authorized. India remained effectively tied to a colonial supply system, however. Oil
could only be afforded if imported from a country in the sterling area rather than from
countries where it had to be paid for in dollars. In 1949, India asked the oil companies of
Britain and the United States to offer advice on a refinery project to make the country
more self-sufficient in oil. The joint technical committee advised against the project and
said it could only be run at a considerable loss.
The oil companies were prepared to consider building two refineries, but only if these
refineries were allowed to sell products at a price ten percent above world parity price.
The government refused, but within two years an event in the Persian Gulf caused the
companies to change their minds and build the refineries. The companies had lost their
huge refinery at Abadan in Iran to Prime Minister Mussadegh's nationalization decree
and were unable to supply India's petroleum needs from a sterling-area country. With
the severe foreign exchange problems created, the foreign companies feared new Iranian
competition within India. Even more important, the government began to discuss setting
up a refinery by itself.
Between 1954 and 1957, two refineries were built by Burmah-Shell and StandardVacuum at Bombay, and another was built at Visakhapatnam by Caltex. During the
same period the companies found themselves in increasing conflict with the
The government came into disagreement with Burmah Oil over the Nahorkatiya oil field
shortly after its discovery in 1953. It refused Burmah the right to refine or market this
oil and insisted on joint ownership in crude production. Burmah then temporarily
suspended all exploration activities in India.
Shortly afterward, the government accused the companies of charging excessive prices
for importing oil. The companies also refused to refine Soviet oil that the government
had secured on very favorable terms. The government was impatient with the
companies' reluctance to expand refining capacity or train sufficient Indian personnel. In
1958, the government formed its own refinery company, Indian Refineries Ltd. With
Soviet and Romanian assistance, the company was able to build its own refineries at
Noonmati, Barauni, and Koyali. Foreign companies were told that they would not be
allowed to build any new refineries unless they agreed to a majority shareholding by the
In 1959, the Indian Oil Company was founded as a statutory body. At first, its objective
was to supply oil products to Indian state enterprise. Then it was made responsible for
the sale of the products of state refineries. After a 1961 price war with the foreign
companies, it emerged as the nation's major marketing body for the export and import of
oil and gas.
Growing Soviet imports led the foreign companies to respond with a price war in
August 1961. At this time, Indian Oil had no retail outlets and could sell only to bulk
consumers. The oil companies undercut Indian Oil's prices and left it with storage
problems. Indian Oil then offered even lower prices. The foreign companies were the
ultimate losers because the government was persuaded that a policy of allowing Indian
Oil dominance in the market was correct. This policy allowed Indian Oil the market
share of the output of all refineries that were partly or wholly owned by the government.
Foreign oil companies would only be allowed such market share as equaled their share
of refinery capacity.
Indian Oil Corporation: 1964 to the 1990s
In September 1964, Indian Refineries Ltd. and the Indian Oil Company were merged to
form the Indian Oil Corporation. The government announced that all future refinery
partnerships would be required to sell their products through Indian Oil.
It was widely expected that Indian Oil and India's Oil and Natural Gas Commission
(ONGC) would eventually be merged into a single state monopoly company. Both
companies grew vastly in size and sales volume but, despite close links, they remained
separate. ONGC retained control of most of the country's exploration and production
capacity. Indian Oil remained responsible for refining and marketing.
During this same decade, India found that rapid industrialization meant a large fuel bill,
which was a steady drain on foreign exchange. To meet the crisis, the government
prohibited imported petroleum and petroleum product imports by private companies. In
effect, Indian Oil was given a monopoly on oil imports.
A policy of state control was reinforced by India's closer economic and political links
with the Soviet Union and its isolation from the mainstream of western multinational
capitalism. Although India identified its international political stance as non-aligned, the
government became increasingly friendly with the Soviet Bloc, because the United
States and China were seen as too closely linked to India's major rival, Pakistan. India
and the USSR entered into a number of trade deals. One of the most important of these
trade pacts allowed Indian Oil to import oil from the USSR and Romania at prices lower
than those prevailing in world markets and to pay in local currency, rather than dollars
or other convertible currencies.
For a time, no more foreign refineries were allowed. By the mid-1960s, government
policy was modified to allow expansions of foreign-owned refinery capacity. The Indian
Oil Corporation worked out barter agreements with major oil companies in order to
facilitate distribution of refinery products.
In the 1970s, the Oil and Natural Gas Commission of India, with the help of Soviet and
other foreign companies, made several important new finds off the west coast of India,
but this increased domestic supply was unable to keep up with demand. When
international prices rose steeply after the 1973 Arab oil boycott, India's foreign
exchange problems mounted. Indian Oil's role as the country's monopoly buyer gave the
company an increasingly important role in the economy. While the Soviet Union
continued to be an important supplier, Indian Oil also bought Saudi, Iraqi, Kuwaiti, and
United Arab Emirate oil. India became the largest single purchaser of crude on the
Dubai spot market.
The government decided to nationalize the country's remaining refineries. The BurmahShell refinery at Bombay and the Caltex refinery at Visakhapatnam were taken over in
1976. The Burmah-Shell refinery became the main asset of a new state company, Bharat
Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state
company, Hindustan Petroleum Corporation Ltd., in March 1978. Hindustan had
become fully Indian-owned on October 1, 1976, when Esso's 26 percent share was
bought out. On October 14, 1981, Burmah Oil's remaining interests in the Assam Oil
Company were nationalized, and Indian Oil took over its refining and marketing
activities. Half of India's 12 refineries belonged to Indian Oil. The other half belonged to
other state-owned companies.
By the end of the 1980s, India's oil consumption continued to grow at eight percent per
year, and Indian Oil expanded its capacity to about 150 million barrels of crude per
annum. In 1989, Indian Oil announced plans to build a new refinery at Pradip and
modernize the Digboi refinery, India's oldest. However, the government's Public
Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in
Orissa because it feared future over-capacity.
By the early 1990s, Indian Oil refined, produced, and transported petroleum products
throughout India. Indian Oil produced crude oil, base oil, formula products, lubricants,
greases, and other petroleum products. It was organized into three divisions. The
refineries and pipelines division had six refineries, located at Gwahati, Barauni, Gujarat,
Haldia, Mathura, and Digboi. Together, the six represented 45 percent of the country's
refining capacity. The division also laid and managed oil pipelines. The marketing
division was responsible for storage and distribution and controlled about 60 percent of
the total oil industry sales. The Assam Oil division controlled the marketing and
distribution activities of the formerly British-owned company.
Indian Oil also established its own research center at Faridabad near New Delhi for
testing lubricants and other petroleum products. It developed lubricants under the brand
names Servo and Servoprime. The center also designed fuel-efficient equipment.
Changes in the Oil Industry: Late 1990s and Beyond
The oil industry in India changed dramatically throughout the 1990s and into the new
millennium. Reform in the downstream hydrocarbon sector--the sector in which Indian
Oil was the market leader--began as early in 1991 and continued throughout the decade.
In 1997, the government announced that the Administered Pricing Mechanism (APM)
would be dismantled by 2002.
To prepare for the increased competition that deregulation would bring, Indian Oil
added a seventh refinery to its holdings in 1998 when the Panipat facility was
commissioned. The company also looked to strengthen its industry position by forming
joint ventures. In 1993, the firm teamed up with Balmer Lawrie & Co. and NYCO SA of
France to create Avi-Oil India Ltd., a manufacturer of oil products used by defense and
civil aviation firms. One year later, Indo Mobil Ltd. was formed in a 50-50 joint venture
with Exxon Mobil. The new company imported and blended Mobil brand lubricants for
marketing in India, Nepal, and Bhutan. In addition, Indian Oil was involved in the
formation of ten major ventures from 1996 through 2000.
Indian Oil also entered the public arena as the government divested nearly 10 percent of
the company. In 2000, Indian Oil and ONGC traded a 10 percent equity stake in each
other in a strategic alliance that would better position the two after the APM
dismantling, which was scheduled for 2002. According to a 1999 Hindu article, Indian
Oil Corporation's strategy at this time was "to become a diversified, integrated global
energy corporation." The article went on to claim that "while maintaining its leadership
in oil refining, marketing and pipeline transportation, it aims for higher growth through
integration and diversification. For this, it is harnessing new business opportunities in
petrochemicals, power, lube marketing, exploration and production ... and fuel
management in this country and abroad."
In early 2002, Indian Oil acquired IBP, a state-owned petroleum marketing company.
The firm also purchased a 26 percent stake in financially troubled Haldia Petrochemicals
Ltd. In April of that year, Indian Oil's monopoly over crude imports ended as
deregulation of the petroleum industry went into effect. As a result, the company faced
increased competition from large international firms as well as new domestic entrants to
the market. During the first 45 days of deregulation, Indian Oil lost Rs7.25 billion, a
signal that the India's largest oil refiner would indeed face challenges as a result of the
Nevertheless, Indian Oil management believed that the deregulation would bring
lucrative opportunities to the company and would eventually allow it to become one of
the top 100 companies on the Fortune 500--in 2001 the company was ranked 209. With
demand for petroleum products in India projected to grow from 148 million metric tons
in 2006 to 368 million metric tons by 2025, Indian Oil believed it was well positioned
for future growth and prosperity.
Principal Subsidiaries: Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oiltanking
Ltd. (25%); Petronet India Ltd. (16%); Petronet VK Ltd. (26%); Petronet CTM Ltd.
(26%); Petronet CIPL Ltd. (12.5%); Indian Oil Petronas Ltd. (50%); Indian Oil Panipat
Power Consortium Ltd. (26%); Indian Oil TCG Petrochem Ltd. (50%); Librizol India
Pvt. Ltd. (50%).
India’s flagship national oil company and downstream petroleum major, Indian Oil
Corporation Ltd. (Indian Oil) is celebrating its Golden Jubilee in 2009. It is India's
largest commercial enterprise, with a sales turnover of Rs. 2, 85,337 crore – the highestever for an Indian company – and a net profit of Rs. 2, 950 crore for the year 2008-09.
Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global
500' listing, having moved up 11 places to the 105th position in 2009.
Mr. Sarthak Behuria
Chairman, Indian Oil Corporation Limited
Mr. Sarthak Behuria is Chairman, Indian Oil Corporation Limited, India’s largest
commercial enterprise with US$62.03 billion turnover for the year 2008-2009, since
2005. He is also Chairman (part-time) of group company Chennai Petroleum
Corporation Ltd., besides heading IOT Infrastructure & Energy Services Ltd., a joint
venture for building and operating terminalling services for petroleum products.
Under Mr. Behuria’s stewardship, Indian Oil is transforming into a major, diversified,
transnational integrated energy company. Besides consolidation in the core areas of
refining and marketing, the Corporation is vigorously pursuing a string of strategic
initiatives across the hydrocarbon value chain for upstream integration into exploration
& production of oil, downstream integration into petro- chemicals and diversification
into natural gas marketing and alternative fuels, besides globalization of downstream
An alumnus of St. Stephen’s College, Delhi, and the Indian Institute of Management
(IIM), Ahmedabad, Mr. Behuria joined Burmah Shell in 1973 before being absorbed in
Bharat Petroleum Corporation Ltd., where he rose to the top position of Chairman &
Managing Director. He also served the erstwhile Oil Coordination Committee of the
Ministry of Petroleum & Natural Gas, Govt. of India.
MMr. Behuria is President of the World LPGas Association (WLPGA) since September
2008, being the first Indian to head the global body. He presided over the 22nd General
Assembly of World LP Gas As- sociation (WLPGA) held at Rio-de-Janeiro, Brazil, in
October 2009. Earlier, during 2006-08, he was First Vice-President of WLPGA
representing the LPG industry of Asia.
Mr. Behuria has been conferred the Honorary Fellowship of the Energy Institute, UK,
which is the highest-level of professional recognition reserved for those who have made
a notable and distinguished contribution to the energy industry. His expertise in India’s
oil & gas sector has been sought at many national and international forums, where he
chaired sessions and presented papers.
Known to be a strong “people’s man”, Mr. Behuria practices a management style that is
both open and transparent. He is also a keen golf and bridge player.
Chairman of Petroleum Federation of India (Petro Fed), representing Indian and
companies and organizations associated with the Indian hydrocarbon sector (August
2003 till date). Chairman of Council of Indian Employers (CIE), an apex body of
employers in India.
Named among the top 10 most influential oilmen in India by Upstream, the
internationally acclaimed oil & gas journal.
Conferred the prestigious ‘SCOPE Award for Excellence and Outstanding Contribution
to Public Sector Management – Individual Category’ for the year 2006-07.
Conferred the ‘Udyog Ratna’ award by the PHDCCI in 2006.
Participation in International Forums Delivered a special address at the Asia-Pacific
Business Forum at UNESCAP held at Bangkok in April ‘08.
Chaired the session on ‘Natural Gas as Transportation Fuel’ at the 19th World
Congress at Madrid in June ‘08.
Represented India at the 4th OPEC International Seminar at Vienna in March ’09.
Attended the 95th session of International Labour Conference at Geneva in June ‘09,
spoke on behalf of India on matters of policy related to the oil & gas sector.
Incorporated as Indian Oil Company Ltd. on 30th June, 1959, it was renamed as
Indian Oil Corporation Ltd. on 1st September, 1964 following the merger of Indian
Refineries Ltd. (established 1958) with it. Indian Oil and its subsidiaries account for
approximately 48% petroleum products market share, 34% national refining capacity
and 71% downstream sector pipelines capacity in India.
For the year 2008-09, the Indian Oil group sold 62.6 million tonnes of petroleum
products, including 1.7 million tonnes of natural gas, and exported 3.64 million tonnes
of petroleum products.
The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a
combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2
million barrels per day). These include two refineries of subsidiary Chennai Petroleum
The Corporation's cross-country network of crude oil and product pipelines, spanning
over 10,000 km and the largest in the country, meets the vital energy needs of the
consumers in an efficient, economical and environment-friendly manner.
Indian Oil is investing Rs. 43,400 crore (US $10.8 billion) during the period 2007-12 in
augmentation of refining and pipeline capacities, expansion of marketing infrastructure
and product quality upgradation as well as in integration and diversification projects.
Technology Solutions Provider
Indian Oil's world-class R&D Centre is perhaps Asia's finest. Besides pioneering work in
lubricants formulation, refinery processes, pipeline transportation and alternative fuels, the
Centre is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen
fuel economy in the country. It has set up a commercial Hydrogen-CNG station at an Indian
Oil retail outlet in New Delhi this year. The Centre holds 214 active patents, including 113
At Indian Oil, customers always get the first priority. New initiatives are launched roundthe-year for the convenience of the various customer segments.
Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban
markets offer a range of value-added services to enhance customer delight and loyalty.
Large format Swagat brand outlets cater to highway motorists, with multiple facilities such
as food courts, first aid, rest rooms and dormitories, spare parts shops, etc. Specially
formatted Kisan Seva Kendra outlets meet the diverse needs of the rural populace, offering
a variety of products and services such as seeds, fertilisers, pesticides, farm equipment,
medicines, spare parts for trucks and tractors, tractor engine oils and pump set oils, besides
auto fuels and kerosene. SERVOXpress has been launched recently as a one-stop shop for
auto care services.
To safeguard the interest of the valuable customers, interventions like retail automation,
vehicle tracking and marker systems have been introduced to ensure quality and quantity of
Indian Oil has joined the league of global technology providers last year with the selection
of its in-house developed INDMAX technology (for maximising LPGas yield) for the 4
MMTPA Fluidised Catalytic Cracking (FCC) unit at the Corporation's upcoming 15
MMTPA grass roots refinery at Paradip in Orissa, as well as for the FCC unit coming up at
A wholly-owned subsidiary, Indian Oil Technologies Ltd., is engaged in commercialising
the innovations and technologies developed by Indian Oil's R&D Centre.
At IndianOil, corporate social responsibility (CSR) has been the cornerstone of success
right from inception in the year 1964. The Corporation’s objectives in this key performance
area are enshrined in its Mission statement: "…to help enrich the quality of life of the
community and preserve ecological balance and heritage through a strong environment
As a constructive partner in the communities in which it operates, IndianOil has been taking
concrete action to realise its social responsibility objectives, thereby building value for its
shareholders and customers. The Corporation respects human rights, values its employees,
and invests in innovative technologies and solutions for sustainable energy flow and
In the past four decades, IndianOil has supported innumerable social and community
initiatives in India. Touching the lives of millions of people positively by supporting
environmental and health-care projects and social, cultural and educational programmes. As
part of IndianOil's social responsibility programme, there is an IndianOil Scholarship
scheme, which provides for attractive scholarships to bright students selected on 'meritcum-means' basis. As part of the scheme, special encouragement is being given to girl
students, physically challenged students, and students from J & K as well as the Northeast
Besides focussing primarily on the welfare of economically and socially deprived sections
of society, IndianOil also aims at developing techno-economically viable and environmentfriendly products & services for the benefit of millions of its consumers, while at the same
time ensuring the highest standards of safety and environment protection in its operations.
IndianOil has always been in the forefront in times of national emergencies.
IndianOilPeople have time and again rallied to help victims of natural calamities,
maintaining uninterrupted supply of petroleum products and contributing to relief and
rehabilitation measures in cash and kind.
IndianOil has also set up the IndianOil Foundation (IOF) as a non-profit trust to protect,
preserve and promote national heritage monuments.
As part of its environment-protection initiatives, IndianOil has invested close to Rs. 7,000
crore in state-of-the-art technologies at its refineries for production of green fuels meeting
With safety, health and environment protection high on its corporate agenda, IndianOil is
committed to conducting business with a strong environment conscience, so as to ensure
sustainable development, safe work places and enrichment of the quality of life of its
employees, customers and the community.
IndianOil is also committed to the Global Compact Programme of the United Nations and
endeavours to abide by the 10 principles of the programme, some of which are already part
of the Corporation’s Vision and Mission statements.
It is the firm resolves of IndianOilpeople to move beyond business, touch every heart and
fuel a billion dreams.
Global Compact Initiative
Indian Oil’s present business practices and vision for the future are synergized with
sustainability. We take pride that our corporate strategy is aligned to national priorities and
envision a greater societal role in future to accomplish the cherished goal of a truly
developed India, where all sections of citizens live with dignity.
The past year was definitely another year of sustained growth in the face of stupendous
odds for us at Indian Oil. In the backdrop of unprecedented high crude oil prices and
liquidity constraints, we managed our operations and financials efficiently. As India's
largest petroleum refining and marketing company, we bear the brunt of the burden of oil
subsidy on sale of petrol, Diesel, Kerosene for public distribution system and LPG for
domestic use, which constitute a major portion of our product offerings. The Government,
in turn, has put in place a mechanism to compensate the oil marketing companies for the
losses suffered by them.
Indian Oil Corporation Limited is committed to the Global Compact Programme of the
United Nations and will endeavour to abide by all the ten principles of the programme,
some of which are also a part of our Vision and Mission Statements. Therefore, the
company continues to pledge support to the programme through its policies, processes,
products, services and people.
In order to measure and communicate our progress in our journey towards sustainable
development, we have decided to publish the third edition of our Sustainability Report for
2007-08 in accordance with the GRI-G3 guidelines for the first time and have aimed at
application level A. We propose to build on this first report in future through a more formal
materiality assessment process where decisions on corporate responsibilities and priorities
will include inputs from other stakeholders, such as shareholders, employees etc.
IndianOil adopts Integrity Pact
Indian Oil has entered into a Memorandum of Understanding (MoU) with Transparency
International India (TII) in January 2008, for implementing an Integrity Pact Programme
focussed on enhancing transparency in its business transactions, contracts and procurement
processes. Indian Oil believes in total transparency, integrity and accountability in its
functioning. It values its business relationships with its numerous domestic and
international contractors and vendors of goods and services and is committed to dealing
with them in a fair and transparent manner by maintaining the highest ethical standards in
its transactions with them.
The MoU was signed by Mr. Sarthak Behuria, Chairman, Indian Oil, and Admiral (Retd.) R
H Tahiliani, former Chief of Naval Staff and Chairman of TII. Under the MoU, Indian Oil
is committed to implementing the Integrity Pact in all its major procurement and work
contract activities. Four Independent External Monitors nominated by TII in consultation
with the Central Vigilance Commission (CVC) shall monitor the activities. The Integrity
Pact would strengthen established systems and procedures by creating trust and would have
the full support of the Central Vigilance Commission.
Transparency International India, launched in 1997, is the Indian Chapter of Berlin-based
Transparency International, which has presence in 93 countries. The Integrity Pact
Programme was launched in the mid-90s by TI to create 'islands of Integrity' through a
voluntary contract between the buyer and the seller to eliminate unfair practices. It
establishes mutual contractual rights and obligations and brings transparency and enhances
the credibility of the organizations.
IndianOil No.1 in BW 500 Ranking
IndianOil leads India Inc. in Fortune's
'Global 500' listing for 2009
IndianOil — the only PSU among India’s 25 16.04.2009
IndianOil frontrunner in Oil & Gas category 31.03.2009
in FE-500 listing of India's top corporates
IndianOil tops Business Standard’s 'BS
IndianOil among India's 'Top 10' in Business 19.12.2008
India's Super 100 Listing
Lanka IOC ranked No. 1 Company in Sri
IndianOil tops 'ET 500' rankings once again 21.10.2008
IndianOil tops Businessworld's ‘BW Real
500’ rankings again
IndianOil third most valuable (company)
brand in India: ET-brand finance survey
IndianOil leads India Inc. in Fortune's
'Global 500' listing for 2008
'The Most Trusted Brand' in ET's Brand
Equity annual survey-2008
IndianOil the 'Top Oil & Gas Company' in
Financial Express's 'FE 500' listing
IndianOil Tops Business Standard's 'BS
'Top Ten' in Business India's Super 100
IndianOil among India's 'Top Valuable
Companies in BT 500 Listing'
IndianOil ranked 2nd amongst India’s Top
50 Most Valuable Brands
IndianOil gets a top slot in ET500 listing
IndianOil tops 'BS 1000' companies in Sales 03.01.2007
Name of JV
Promoters & Equity
Area(s) of Operation
Avi-Oil India Limited
IndianOil & Balmer Lawrie: 25% To blend, manufacture and
sell synthetic, semi
Neden BV, Netherlands: 50%
synthetic and mineral
based lubricating oils,
greases and hydraulic
fluids, related products and
specialities for Defence
and Civil Aviation uses.
& Energy Services
(Formerly known as
IndianOil & Oiltanking
GmbH, Germany: 50% each
To build and operate
terminalling services for
IndianOil & Petronas,
Malaysia: 50% each
To construct and import
facilities for LPG import at
Haldia and to engage in
parallel marketing of LPG.
Lubrizol India Private
IndianOil & Lubrizol, USA: 50%
To manufacture and
market chemicals for use
as additives in fuels,
lubricants and greases.
Petronet LNG Limited 02.04.1998
IndianOil, BPCL, GAIL &
ONGC: 12.50% each
Gaz de France International:
Asian Development Bank: 05%
Development of facilities
for import and
regasification of LNG at
Dahej and Kochi.
Petronet India Limited 26.05.1997
IndianOil:18 % BPCL &
RPL, IL&FS, ICICI, SBI &
To implement petroleum
products, pipeline projects
through Special Purpose
Petronet VK Limited
IndianOil & Petronet India: 26%
each RPL &EOL:13% each
SBI, GIIC, KPT & IL&FS: 05%
each Canara Bank: 02% each
To construct and operate a
pipeline for transportation
of petroleum products from
Vadinar to Kandla.
Petronet CI Limited
IndianOil, Petronet India &
EOL & BPCL: 11% each
To construct and operate a
pipeline for evacuation of
petroleum products from
RPL and EOL refineries at
Jamnagar as well as from
Gujarat Refinery at Koyali
to feed the consumption
zones at Central India.
Green Gas Ltd.
IndianOil & GAIL: 25%
IDFC& IL&FS: 20% each
City Gas Distribution in
Lucknow and Agra.
Indo Cat Pvt. Limited
IndianOil & Intercat, USA: 50%
Manufacturing & marketing
of FCC catalysts and
IndianOil Sky Tanking 21.08.2006
IndianOil, IOTL & Skytanking
Design, finance, construct,
GmbH, Germany: 33.33% each operate & maintain aviation
fuel facility projects.
IndianOil & Marubeni
Corporation, Japan:50% each
To build and operate its
own power generation
plant at Panipat utilising
petcoke from Panipat
Suntera Nigeria 205
IndianOil & Oil India: 25% each
Suntera Resources Ltd.,
Investments in oil and gas
industry especially in the
IndianOil: 74% CREDA: 26%
and selling biomass, biofuels and allied products &
Dist. Chirang, Assam - 783 385
Bandra (East), Mumbai -400 051
New Delhi -110016
2, Gariahat Road,
Kolkata -700 068
Worli Colony, Mumbai -400 025
139, Nungambakkam High Road
Panipat -132 140 (Haryana)
Chennai - 600034
Assam Oil Division
Assam Oil Division
Business Group(Cryogenics) Sewri Terminal
Nashik - 422 010
Chennai Petroleum Corporation Ltd.
Teynampet, Chennai - 600 018
IndianOil Technologies Ltd
IndianOil (Mauritius) Ltd.
IOC Middle East FZE
LOB 14209, Jebel
Lanka IOC PLC
To serve the national interests in oil and related sectors in accordance and consistent
with Government policies.
To ensure maintenance of continuous and smooth supplies of petroleum products by
way of crude oil refining, transportation and marketing activities and to provide
appropriate assistance to consumers to conserve and use petroleum products
To enhance the country's self-sufficiency in crude oil refining and build expertise in
laying of crude oil and petroleum product pipelines.
To further enhance marketing infrastructure and reseller network for providing
assured service to customers throughout the country.
To create a strong research & development base in refinery processes, product
formulations, pipeline transportation and alternative fuels with a view to
minimizing/eliminating imports and to have next generation products.
To optimise utilisation of refining capacity and maximize distillate yield and gross
To maximise utilisation of the existing facilities for improving efficiency and
To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in
marketing operations to effect energy conservation.
To earn a reasonable rate of return on investment.
To avail of all viable opportunities, both national and global, arising out of the
Government of India’s policy of liberalisation and reforms.
To achieve higher growth through mergers, acquisitions, integration and
diversification by harnessing new business opportunities in oil exploration &
production, petrochemicals, natural gas and downstream opportunities overseas.
To inculcate strong ‘core values’ among the employees and continuously update
skill sets for full exploitation of the new business opportunities.
To develop operational synergies with subsidiaries and joint ventures and
continuously engage across the hydrocarbon value chain for the benefit of society at
To ensure adequate return on the capital employed and maintain a reasonable annual
dividend on equity capital.
To ensure maximum economy in expenditure.
To manage and operate all facilities in an efficient manner so as to generate
adequate internal resources to meet revenue cost and requirements for project
investment, without budgetary support.
To develop long-term corporate plans to provide for adequate growth of the
To reduce the cost of production of petroleum products by means of systematic cost
control measures and thereby sustain market leadership through cost
To complete all planned projects within the scheduled time and approved cost.
Towards customers and dealers:- To provide prompt, courteous and efficient service
and quality products at competitive prices.
Towards suppliers:- To ensure prompt dealings with integrity, impartiality and
courtesy and help promote ancillary industries.
Towards employees:- To develop their capabilities and facilitate their advancement
through appropriate training and career planning. To have fair dealings with
recognised representatives of employees in pursuance of healthy industrial relations
practices and sound personnel policies.
Towards community: - To develop techno-economically viable and environmentfriendly products. To maintain the highest standards in respect of safety,
environment protection and occupational health at all production units.
Towards Defence Services:- To maintain adequate supplies to Defence and other
para-military services during normal as well as emergency situations.
Burgeoning IOC (Indian Oil Corporation)
As a leading public sector enterprise of India, Indian Oil has successfully combined its
corporate social responsibility agenda with its business offerings, meeting the energy
needs of millions of people everyday across the length and breadth of the country,
traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The
Corporation takes pride in its continuous investments in innovative technologies and
solutions for sustainable energy flow and economic growth and in developing technoeconomically viable and environment-friendly products & services for the benefit of its
To achieve the next level of growth, Indian Oil is currently forging ahead on a well laidout road map through vertical integration— upstream into oil exploration & production
(E&P) and downstream into petrochemicals – and diversification into natural gas
marketing, bio fuels, wind power projects, besides globalisation of its downstream
IndianOil is currently metamorphosing from a pure sectoral company with dominance in
downstream in India to a vertically integrated, transnational energy behemoth. The
Corporation is already on the way to becoming a major player in petrochemicals by
integrating its core refining business with petrochemical activities, besides making large
investments in E&P and import/marketing ventures for oil&gas in India and abroad.
With a vision to evolve into a major technology provider through excellence in management
of knowledge and innovation, IndianOil has launched IndianOil Technology Ltd. to market
the intellectual properties developed by IndianOil's R&D Centre.
In petrochemicals, Indian Oil is envisaging an investment of Rs. 20,000 crore (US$ 4
billion) by the year 2011-12. Through the world’s largest single-train Linear Alkyl
Benzene (LAB) plant with an annual capacity of 1,20, 000 tonnes set up at its Gujarat
Refinery, the Corporation has already captured a significant market share of LAB in
India, besides exporting the product to Indonesia, Turkey, Thailand, Vietnam, Norway
Oil Exploration & Production
In E&P, Indian Oil has non-operator participating interest in seven oil & gas blocks
awarded under various NELP (New Exploration Licensing Policy) rounds and two Coal
Bed Methane blocks in India, in consortium with other companies. In addition,
IndianOil has two onshore type ‘S’ NELP blocks, with 100% participating interest (PI)
and sole operatorship. It also has participating interest in an onshore block in Assam and
Arunachal Pradesh through a farm-in.
In natural gas business, Indian Oil sold 1.849 million tonnes of the product in 2008-09.
A technology innovation has been initiated to reach LNG (Liquefied Natural Gas)
directly to the doorstep of bulk consumers in cryogenic containers for industrial as well
as captive power applications.
To consolidate its city gas distribution (CGD) business, Indian Oil has tied up with
several players such as Adani Energy, Reliance Gas Corporation, OIL and ONGC, etc.,
to set up joint ventures in various cities of India. The Corporation has also entered into
franchise agreements with CGD players such as Indraprastha Gas Ltd., Mahanagar Gas
Ltd., Adani Energy Limited, GEECL, SITI Energy and GSPC Gas Ltd. to market CNG
through its retail outlets
To straddle the complete bio-fuel value chain, Indian Oil formed a joint venture with the
Chhattisgarh Renewable Development Authority (CREDA) with an equity holding of
74% and 26% respectively. Indian Oil CREDA Biofuels Ltd. has been formed for
carrying out farming, cultivating, manufacturing, production and sale of biomass, biofuels and allied products and services.
Indian Oil has signed an MoU with M/s Ruchi Soya Industries Ltd. to take up contract
farming on one lakh hectare of private and panchayat wasteland in the state of Uttar
Other than the regular petroleum products like light distillates, middle distillates, heavier
products like Furnace Oil, Bitumen, etc., IndianOil refineries also manufacture
petroleum products for specific applications. These specific applications could be feed
stock for chemical industry, raw material for specific industries and solid fuels. The
petroleum products, produced for specific applications are called, 'Petrochemicals and
Specialties (P&S) Products'.
Every petroleum refinery is not designed to produce P&S products but IndianOil's
refineries have been planned to make a large portfolio of P&S products. The indicative
list of products from IndianOil's various refineries is as follows:
Carbon Black Feedstock (CBFS), Raw Petroleum Coke (RPC), Sulphur
Raw Petroleum Coke (RPC)
CBFS, Jute Batching Oil (JBO), Micro Crystalline Wax (MCW), Mineral
Turpentine Oil (MTO), Sulphur
LABFS, Mineral Turpentine Oil (MTO), Sulphur, Toluene
Mathura Propylene, Sulphur
Panipat Benzene, Mineral Turpentine Oil (MTO), Petcoke, Sulphur
Basic end uses:
Benzene: Chemical industry
CBFS: Carbon black manufacturers
JBO: Jute industry
LABFS: LAB manufacturers
Micro Crystalline Wax (MCW): Pharmaceutical industry
MTO: Paint industry
Paraffin wax: Candle manufactures
Petcoke: Cement industry
Propylene: Chemical industry
RPC: CPC manufacturers
Sulphur: Sulphuric Acid manufacturers and sugar industry
Toluene: Explosives manufacturers
Born from the vision of achieving self-reliance in oil refining and marketing for the
nation, IndianOil has gathered a luminous legacy of more than 100 years of
accumulated experiences in all areas of petroleum refining by taking into its fold, the
Digboi Refinery commissioned in 1901.
At present, IndianOil controls 10 of India’s 20 refineries.
The strength of IndianOil springs from its experience of operating the largest number of
refineries in India and adapting to a variety of refining processes along the way.
Having absorbed state-of-the-art technologies of leading process licensors like UOP,
Chevron, IFP, Stone & Webster, Mobil, Haldor Topsoe, KTI/Technip, Linde, CD-Tech,
Stork Comprimo, etc., IndianOil in an excellent position to offer O&M services for
latest technologies such as distillate FCCUs, Resid FCCUs, hydrocrackers, reformers
(both semi-regenerative and continuous catalytic regeneration types), lube processing
units, catalytic de-waxing units, cokers, coke calciners, visbreakers, merox, hydrotreaters for kero and gasoil streams, etc. IndianOil refineries also have units for
producing specialty products such as bitumen, LPG, MTBE, Butene-1, Propylene,
Xylenes, Di-Methyl Terephthalate (DMT), polyester staple fibre (PSF) and other
petrochemicals like Linear Alkyl Benzene, Paraxylene (PX), Purified Terepthalic Acid
The Corporation has commissioned several grassroot refineries and modern process
units. Procedures for commissioning and start-up of individual units and the refinery
have been well laid-out and enshrined in various customised operating manuals, which
are continually updated. IndianOil also offers the specialised services of its experts for
commissioning/start-up assistance depending on the client’s need. Its team is also wellequipped to prepare operation manuals with clear instructions for plant start-up,
operation, shutdown, emergency handling, etc.
On the environment front, all IndianOil refineries fully comply with the statutory
requirements. Several Clean Development Mechanism projects have also been initiated.
With its vast experience in successfully implementing SH&E policy and practices at
various units, IndianOil offers its services in ensuring that the clients’ work
environment is safe, healthy and clean.
IndianOil also offers faculty assistance for ‘tailor-made’ training programmes that suit
the requirement of refinery or pipelines personnel or a selection of programmes from
the clients’ training calendar.
Innovative strategies and knowledge-sharing are the tools available for converting
challenges into opportunities for sustained organisational growth.
IndianOil’s Refineries team have a deep understanding of the complexities of all the
process units of modern refineries and can offer comprehensive services of a highly
professional nature on different facets given in details in this segment.
With strategies and plans for several value-added projects in place, IndianOil refineries
will continue to play a leading role in the downstream hydrocarbon sector for meeting
the rising energy needs of our country.
Research & Development
IndianOil's worldclass R&D Centre, established in 1972, has state-of –the art facilities and has
delivered pioneering results in lubricants technology, refining process, pipeline transportation,
bio-fuels and fuel-efficient appliances.
Over the past three decades, IndianOil R&D Centre has developed over thousands of
formulations of lubricating oils and greases responding to the needs of Indian industry and
consuming sectors like Defence, Railways, Public Utilities and Transportation. The Centre has
also developed and introduced many new lubricant products to the Indian market like
multigrade railroad oils.
Focussed research in the areas of lubricants and grease formulations, fuels, refining processes,
biotechnology, additives, pipeline transportations, engine evaluation, tribiological and emission
studies, and applied metallurgy has won several awards. The R&D Centre's activities in
refining technology are targeted in the areas of fluid catalytic cracking (FCC), hydroprocessing,
catalysis, resid upgradation, distillation simulation and modeling, lube processing, crude
evaluation, process optimization, material failure analysis and remaining life assessment and
technical services to operating units.
In FCC, apart from process optimization and catalyst evaluation the accent is on the
development of novel technologies aimed at value addition to various refinery streams.
IndianOil's R&D Centre is fully equipped to provide technical support to commercial
hydrocracker units in the evaluation of feedstocks and catalysts, optimization of operating
parameters, evaluation of licensors' process technologies, development of novel processes and
Material failure analysis and remaining life assessment of refinery equipment and installations
is a highly specialized service being provided by the R&D Centre to the refineries of IndianOil
as well as other companies.
With a vision of evolving into a leader as technology provider through excellence in
management of knowledge, technology and innovation, IndianOil has launched IndianOil
Technology Ltd. The new subsidiary markets the intellectual properties developed by IndianOil
In a befitting acknowledgement of its ever-improving performance, and a crowning
glory in its Golden Jubilee Year (1959-2009), IndianOil has moved up 11 places, in the
just-released Fortune 'Global 500' list of world's largest companies by sales for the year
2009. Placed at 105, IndianOil leads the pack of seven Indian companies appearing in
the list that is based on the performance in of the year 2008.
IndianOil has been consistently improving its position in the elite list published annually
by the CNN-Time Warner group magazine, Fortune. In the ‘Global 500' club, IndianOil
has steadfastly climbed from 226 in the year 2002 to 191 in 2003, 189 in 2004 to 170 in
2005, 153 in 2006, 135 in 2007, 116 in 2008 and now 105 in 2009.
IndianOil has also maintained its leadership status as India's numero uno corporate in
the prestigious listing, followed by Tata Steel (258), Reliance Industries (264), Bharat
Petroleum (289), Hindustan Petroleum (311), State Bank of India (363) and Oil &
Natural Gas Corporation (402).
Battling odds in a challenging business environment, India's No.1 commercial enterprise
and flagship oil major, IndianOil notched up another year of sterling performance for
fiscal 2008-2009. IndianOil’s gross turnover (inclusive of excise duty) for the year
2008-09 reached a new high of Rs. 2,85,337 crore up by 15.3% as compared to Rs.
2,47,457 crore in the previous year. The Profit after Tax was Rs. 2,950 crore. The
Corporation's refineries surpassed 100% capacity utilisation and clocked the highest
ever throughput of 51.4 million tonnes. The Corporation also achieved a record sales of
62.6 million tonnes (including 1.7 million tonnes of Gas). Breaching the 10,000 km
mark in length, the pipelines network registered the highest-ever operational throughput
of 59.5 million tonnes of crude oil and petroleum products.
Code of conduct
• This Code of Conduct (hereinafter referred to as the “Code”) shall be called “The
Code of Conduct for Board Members and Senior Management Personnel” of Indian
Oil Corporation Limited (hereinafter referred to as the “Company”).
• This Code envisages that the Board of Directors of the Company (“Board”) and
Senior Management Personnel (as hereinafter defined) (collectively referred to as
“Officers”) must act within the bounds of the authority conferred upon them and with
a duty to comply with the requirements of applicable law.
The purpose of this Code is to enhance ethical and transparent process in managing
the affairs of the Company, and thus to sustain the trust and confidence reposed in the
Officers by the shareholders of the Company. Officers are expected to understand,
adhere to, comply with and uphold the provisions of this Code and the standards laid
down hereunder in their day-to-day functioning.
The principles prescribed in this Code are general in nature and lay down broad
standards of compliance and ethics, as required by Clause 49 of the Listing
Agreement with The Stock Exchange of Mumbai and the National Stock Exchange
(collectively referred to as “Stock Exchanges”). The Officers should also review other
applicable policies and procedures of the Company for specific instructions and
guidelines, which are to be read in conjunction with this Code.
The Company currently has in place Conduct, Discipline & Appeal Rules, (the “CDA
Rules”), which govern the conduct of all employees of the Company including
Whole-time Directors but excluding Non Whole-time Directors. This Code has now
been framed specifically in compliance with the provisions of Clause 49 of the Listing
Agreement with the Stock Exchanges. In respect of the Company’s Whole-time
Directors and Senior Management Personnel this Code is to be read in conjunction
with the CDA Rules.
This Code shall come into force with effect from the 1st day of January 2006.
All Officers should sign the acknowledgment form annexed as Appendix IV hereto
and return the form to the Company Secretary indicating that they have received,
read, understood and agree to comply with the Code. All Officers shall be required
affirm compliance with this Code on an annual basis, within 30 days of close of every
financial year to the Company Secretary, in the form annexed hereto as Appendix III.
2. Definitions & Interpretation
In these Code, unless repugnant to the meaning or context thereof, the following expressions,
wherever used in this Code, shall have the meaning assigned to them below:
• "Board" shall mean the board of Directors of the Company.
• "Board Members" shall mean the Directors on the board of Directors of the Company.
"Company" shall mean the Indian Oil Corporation Limited.
"Government" shall mean Govt. of India.
"Officers" shall collectively refer to the Board Members and the Senior Management
"Relative" shall have the same meaning assigned to the term in Sections 2(41) and 6
of the Companies Act, 1956, read with Schedule IA of the Companies Act, 1956, and
as more specifically detailed in Appendix I.
"Senior Management Personnel" shall mean personnel of the Company who are
members of its core management team excluding the Board of Directors and would
comprise of all members of management one level below the Whole Time Directors,
including head of departments directly reporting to Whole Time Directors.
"Whole Time Directors" shall mean the Board Members who are in the whole-time
employment of the Company.
"Non Whole Time Directors" shall mean the Board Members who are part-time
Directors and not in the whole time employment of the Company.
In this Code words importing masculine shall include feminine and words importing singular
shall include plural or vice versa.
This Code shall be applicable to the following persons:
• Board Members
• Senior Management Personnel.
4. Ethical Conduct
Every Officer shall act within the authority conferred upon him by the Company and under
applicable law, keeping the best interests of the Company in view and shall:
• Act with professionalism, utmost care, skill, diligence, honesty, good faith and
integrity as well as high moral and ethical standards;
• Fulfil their fiduciary obligations without allowing their independence of judgment to
Act fairly and transparently and not participate in any decision-making process on a
subject matter in which a conflict of interest exists or is likely to exist such that an
independent judgment of the Company’s best interest cannot be exercised;
Avoid conducting business with (a) a relative or (b) a private limited company in
which he or his relative is a member or a director (c) a public limited company in
which he or his relative holds 2% or more shares or voting right and (d) with a firm in
which the relative is a partner, except with the prior approval of the Board;
Avoid having any personal and/or financial interest in any business dealings
concerning the Company;
Not engage in any business, relationship or activity with anyone who is a party to a
transaction with the Company;
Avoid any dealings with a contractor or supplier that compromises the ability to
transact business on a professional, impartial and competitive basis or influences
decisions to be made by the Company;
Not hold any positions or jobs or engage in other businesses or interests that are
prejudicial to the interests of the Company;
Not exploit for his own personal gain, opportunities that are discovered through use of
corporate property, information or position, unless the opportunity is disclosed fully
in writing to the Board and the Board declines to pursue such opportunity;
Not seek, accept, or offer or make, directly or indirectly, any gifts, illegal payments,
remuneration, donations or comparable benefits which are intended to or perceived to
obtain business or uncompetitive favours for the conduct of business save as
otherwise provided under the CDA Rules;
Not commit any offence involving moral turpitude or any act contrary to law or
opposed to public policy.
• Notwithstanding that any instances of conflict of interest exist due to any historical
reasons, adequate and full disclosure by the interested Officer should be made to the
Company. It is also incumbent upon every Officer to make a full disclosure of any
interest which the Officer or the Officer’s immediate family, which would include
parents, spouse and children, may have in a company or firm which is a supplier,
customer, distributor of or has other business dealings with the Company.
• With respect to related party disclosures, Board Members shall make disclosure to the
Board and Senior Management Personnel shall make disclosure to the Chairman
under the provisions of Accounting Standard 18 annexed hereto as Appendix II.
If an Officer fails to make a disclosure as required herein, and the Company of its
own accord becomes aware of an instance of conflict of interest that ought to have
been disclosed by the Officer, the Company would take a serious view of the matter
and consider suitable disciplinary action against the Officer.
6. Other Directorships
• Unless specifically permitted by the Chairman of the Board, Officers shall not serve
as director of any other company or as partner of a firm that is engaged in a
competing business with the Company. This clause is not applicable to Non-Whole
• Whole Time Directors shall not accept any appointment or post, whether advisory or
administrative, in any firm or company, whether Indian or foreign, having competing
interests with the Company within two years from the date of cessation of
Directorship of the Company unless approved by the Government.
7. Insider Trading
Every Officer shall comply with the Code of Internal Procedures and Conduct in dealing with
the securities of the Company.
8. Public Representation and Confidentiality of Information
• The Company honours the information requirements of the public and its
stakeholders. In all its public appearance with respect to disclosing information in
relation to the Company’s activities to public constituencies such as the media, the
financial community, employees and shareholders, the Company shall be represented
only by specifically authorised Officers.
• Any information concerning the Company’s business, its customers, suppliers, etc. to
which the Officers have access or which is possessed by the Officers, must be
considered privileged and confidential and should be held in confidence at all times,
and should not be disclosed to any person, unless (i) authorised by the Board; or (ii)
the same is part of the public domain at the time of disclosure; or (iii) is required to be
disclosed in accordance with applicable laws.
9. Regulatory Compliance
Every Officer shall, in his business conduct, comply with all applicable laws, rules and
regulations, both in letter and in spirit, in all the territories in which he operates. If the ethical
and professional standards set out in the applicable laws and regulations are below that of the
Code, then the standards of the Code shall prevail.
10. Health, Safety And Environment
The Company and the Officers shall strive to provide a safe and healthy working
environment and comply, in the conduct of its business affairs, with all regulations regarding
the preservation of the environment of the territory it operates in. The Officers shall be
committed to prevent the wasteful use of natural resources and minimize any hazardous
impact of the development, production, use and disposal of any of its products and services
on the ecological environment.
11. Protection Of Assets
The Officers shall not misuse, for personal gain or otherwise, the assets of the Company,
including tangible assets such as equipment and machinery, systems, facilities, materials,
resources as well as intangible assets such as proprietary information, relationships with
customers and suppliers, etc., and shall employ them for the purpose of conducting the
business for which they are duly authorised.
12. Amendments To The Code
The provisions of this Code can be amended and modified by the Board of Directors of the
Company from time to time and all such amendments and modifications shall take effect
from the date stated therein. All Officers shall be duly informed of such amendments and
13. Placement Of The Code On Website
Pursuant to Clause 49 of the Listing Agreement, this Code and any amendments thereto shall
be posted on the website of the Company.
14. Enforcement Of Code Of Conduct
Each Officer shall be accountable for fully complying with this Code.
15. Consequences Of Non-Compliance Of This Code
• In case of breach of this Code by the Non Whole Time Directors, the same shall be
considered by the Board for initiating appropriate action, as deemed necessary.
In case of breach of this Code by the Whole Time Directors and Senior Management
Personnel, the same shall be dealt with in accordance with the CDA Rules.
IOC (Jaipur) inferno
For all our love of the environment we in Delhi and elsewhere decided that this Diwali
should be calm and pollution free. So there were less crackers, less noise and lesser
pollution. But now Jaipur has undone all the good efforts. Black smoke coming out and
fire spreading to other nearby units and having claimed lives and injuring so many, all
efforts have gone in vain. The IOC oil depot is a Govt of India establishment.
Jaipur, Nov 3 (PTI) The Rajasthan High Court asked the state government to explain
the rescue operation and other measures, it had undertaken during the IOC depot fire
tragedy, which claimed 12 lives.
On a PIL, a division bench of Chief Justice Jagdish Bhalla and Justice Manish Bhandari
directed the state also to come up with steps it would take to avert such mishaps, which
led to loss of life and public property.
The court asked the advocate general to furnish it with details on various steps the
government had taken up after the inferno by November 9.
The report should include measures taken for the rescue of injured during the October
29 fire, disbursement of compensation, rehabilitation of the homeless persons and
prevention of the air pollution.
What had happened?
The casualty count in the Jaipur inferno has reached 10, since it started off on Thursday.
Over 60 hours after the fire started at the Indian oil depot, it still rages on.
Two more bodies were recovered on Sunday.
The fire is now 10-20 feet - subsiding from its earlier height of 40 metres - but its heat is
The fire had also spread to an adjacent factory, but army and civilian authorities
managed to douse it in time.
People within a radius of 3 kms of the site have been evacuated.
How it happened?
ON 29TH OCT
6:45 pm, Thursday: A leakage was detected in IOC depot in Jaipur. For next 40 minutes
engineers tried to repair it.
7:30 pm, Thursday: The first containers exploded, causing a mild quake measuring 2.3
on the Richter scale
8:00 pm, Thursday: The fire became uncontrollable; 40-feet high flames in the night
sky; buildings 1km away damaged
9:00 pm, Thursday: Entire area evacuated; huge traffic jams on Jaipur-Kota highway,
which passes through Sitapura
10:30pm, Thursday: All 11 containers exploded, each turning into an inferno.
11:30 pm, Thursday: Intensity of fire began to drop. Flames were as high as 20 feet
ON 30TH OCT
12:00 am, Friday: Fire raged all night, the strategy now was to let the fuel burn out.
7:30 am, Friday: Fire experts from Mumbai, Mathura arrive
8:00 am, Friday: Fire in smaller containers down by 30-40% of what it was last night.
My assessment about this case is this that the magnitude of the Jaipur Indian Oil
depot Inferno and the accidents clearly show lack of fire fighting arrangements and
provisions even in such vantage places like a major oil depot. Govt. has shamelessly
expressed its helplessness.
The government has still not learnt a lesson even after the great Bhopal tragedy decades
ago. At such vantage points was it not the responsibility of the IOCL / govt. to have high
class fire fighting equipments and infrastructure to control the fire in hours and
minimise casualties? This again calls for an investigation and as usual the culprits will
go scot free. Of course now sacked the depot chief, even as the huge fire still blazes on
for 5th day. And the Oil Minister will now have a reason to jack up the petrol prices.
1000 crore of public property is not a joke. The responsibility should be fixed and heads
should roll. The whole management should change.
It must have the built-in safety precautions for handling inflammable items and above
all an emergency preparedness plan in case a fire erupts. The emergency plan must have
measures to control the fire with water and foam and above all ensure that it does not
spread to nearby units.
The Minister came but his helplessness in saying that he does not know the reason of
fire and he has not seen a fire like this and he would allow the fuel to burn till tanks are
empty and neighbourhood burnt to ashes, is a matter of shame.
If helplessness is what we expect from the Minister it is better he resigns. This fire is
clearly due to lack of fire safety measures at the depot and their periodic checking.
Those responsible for the fire safety at site must be removed and charged with
With the amount of money that IOC has been charging its customers there cannot be
lack of money for fire safety measures. This is the result of utter negligence of the fire
safety authorities. The Government on its part has been quick to cover up its failure by
announcing the compensation of Rs 10 lakhs for the dead.
This may give some relief to the family of victims but unless root cause is addressed
such fires will take place again and elsewhere in the country. We have to get over this
habit of doing the fire fighting operations and compensation when the fire is on.
A detailed fire fighting plan has to be in position at places which handle inflammable
substances. The fact that this plan has miserably failed calls for its thorough review. In
addition to the loss of lives and the fuel, the environmental pollution caused by this fire
has been unprecedented.
This fire will pass but immediate root cause of this fire and review of fire fighting
preparedness at other sites in the nation is called for including the safety from sabotage
point of view.
The fire was caused due to the LEAKAGE of petrol.
Due to the carelessness of the operators
Due to the ineffectiveness of the Operators in stopping the leakage
Operators did not convey the problem to their boss
Lack of supervisory
No rescue team on the spot
Also shows the lack of inspection by the top management
Due to lack of fire fighting arrangements and provisions even in such vantage
places like a major oil depot
9. Lack of responsibility and accountability
10. Due to Lack of fire safety measures at the depot and their periodic checking
11. Lack of proper management and its working
Increased incidence of dry skin, asthma, suffocation, irritation in the eye
Problem of lungs which causes respiratory problems.
Can cause a cancer problem
Can also damage the eyes of people
It mainly has a negative effect on children and old people
Can also be dangerous for pregnant women
Causes a loss to property of Rs. 1000 crores (approx)
Loss of petrol and diesel
Loss of natural resources which is already in shortage
Wastage of money spent on the security and safety of these oil depots
Vast stretches of agricultural fields 10 to 15 km around the IOC depot site have
reported the presence of black flakes which can threaten or even destroy soil
Produces a blanket of smoke of 250 kms in length and 4kms in width in the
Blanket of smoke contains a harmful gas like carbon, carbon dioxide, sulphur,
Also causes harm to plants and pollute the atmosphere
Increase the level of pollution in the environment
Can give rise to acid rain
Gaseous emissions of pollutants such as sulphur and nitric oxide are a cause for
concern as they can directly affect people’s health and the atmosphere
Reduction in oxygen levels in the environment
As fire dies down, environmental crisis looks large
STEPS TAKEN BY GOVERNMENT
1. Mobile team of doctors have been formed to provide door to door medical
2. Area under 10 kms around IOC Depot was cleared by army
3. If any cough or any type of allergy immediately contact to doctor
4. The Union Minister announced a compensation of Rs 5 to 10 lakhs to the victims
and their families.
5. Rs. 2 lakh to seriously injured and Rs. 1 lakh to those with minor injuries
6. High court of Rajasthan has asked to inquire into the fire accident and suggest
remedial measures to prevent reoccurrence.
1. 1000 crore of public property, which is not a joke, has been lost.
2. 13 people lost their lives and injured more than 150 people
3. A chief of Jaipur IOC depot has been suspended.
4. Can give rise to acid rain.
5. Nearby industries has been effected and damaged
6. Spread a number of diseases like skin problem, lungs problem etc
7. Can be very dangerous for pregnant women and children
Shows a lack of fire safety measures at the depot and their periodic checking
9. Carbon hails has fallen
10. This is one of the worst fire related incident in the history of Indian Oil
11. IOC to pay Rs 50 crore to units affected by Jaipur fire accident
12. Hundreds of people are visiting hospitals with the complaints of breathing
problem, sore throat, irritation in the eye, allergy and itching
13. The release of greenhouse gases such as carbon monoxide and carbon dioxide in
the atmosphere will have long-term consequences on climate change
1. Operators should be given proper training and should have enough knowledge to
operate on machines.
2. There should be a team of skilled operater and should have a proper leader
3. Rescue team should be always present
4. Superior should closely look into the matter and absorb the things personally
5. Close- circuit cameras should be installed
6. A alarm should be ranged whenever there is a problem
7. Operators should immediately contact their boss in such situation
8. The tanks in which petrol and diesel are stored in depot should be far away from
9. The tanks should be made up of some better material which do not catch fire
10. There should be emergency exits points for people to get away from during such
11. Get over the habit of having a planned fire fighting operations
12. A detailed fire fighting plan and arrangements has to be in position at places
which handle inflammable substances
13. Immediate root cause of this fire and review of fire fighting should be done
14. Fire fighting preparedness at other sites in the nation should be made alert
15. Agricultural scientists should be immediately sent to the area to study the
dangerous phenomenon and suggest methods for soil treatment to save this
year’s rabi crops
DON’T REMAIN HAPPY IN IGNORANCE