SOCIAL SECURITIES AT INDIANOIL & THEIR
BENEFITS
AN INDUSTRIAL TRAINING PROJECT REPORT
Submitted by
Rohan Bahri
BBA (CAM) –...
CERTIFICATE
This is to certify that Industrial Training Report entitled “Social Securities at IndianOil & their
Benefits” ...
TABLE OF CONTENTS
CHAPTER NO. TITLE PAGE NO.
PREFACE i
DECLARATION ii
ACKNOWLEDGEMENT iii
1. INTRODUCTION 1
1.1 OVERVIEW 2...
1.6 RESEARCH METHODOLOGY 32
1.7.1 Meaning of Research 32
1.7.2 Objectives of Research 32
1.7.3 Significance of Research 33...
FUND SCHEME 45
2.3.1 Introduction 45
2.3.2 Applicability 46
2.3.3 Eligibility 46
2.3.4 Contribution 47
2.3.5 Qualifying Se...
2.6.4 Post-Retirement Medical Attendance
Facility 54
2.6.5 Compensation for Injuries by Accidents
While on Duty 54
3. ANAL...
PREFACE
Knowledge has two aspects - theoretical and practical and no theoretical concept is complete without
having knowle...
DECLARATION
This is to certify that the Industrial Training Report entitled “Social Securities at IndianOil &
their Benefi...
ACKNOWLEDGEMENT
This project is an outcome of 6 weeks mandatory industrial training, which I have to undergo for
the parti...
CHAPTER 1
INTRODUCTION
1. INTRODUCTION
1.1. OVERVIEW
Indian Oil Corporation Limited or IndianOil, is an Indian state-owned oil and gas company
he...
was set up in 2003, with a vision to market the technologies developed at IndianOil's Research
and Development Center. It ...
Baitalpur, 120 km Cauvery Basin Refinery to Trichy Pipeline and 400 km Ennore-
Trichy-Pondicherry LPG Pipeline.
 Marketin...
product streams from the existing refineries of IndianOil, thereby achieving better
exploitation of the hydrocarbon value ...
 Guwahati Refinery, the first public sector refinery of the country, was built with
Romanian collaboration and was inaugu...
Group Companies of IndianOil :
 Lanka IOC PLC : Lanka IOC, IndianOil’s subsidiary in Sri Lanka, is the only private
oil c...
 IndianOil owns the earliest refinery - Digboi Refinery commissioned in 1901.
 IndianOil controls 10 of India’s 19 refin...
1.2 COMPANY PROFILE
1.2.1 HISTORY
“Oil everyone knows is of vast importance in the world today and a country that does not...
Digboi Refinery, Assam, India
The momentum of this thought was carried forward by the pioneering Petroleum
Minister, Mr. K...
to be linked with inland refineries. An unique aspect of laying pipelines was the challenge
involved in its construction.
...
1.2.3 VISION, VALUES & MISSION
VISION :
With a dream to explore new vistas and emerge as a global entity, riding on the wa...
VALUES :
IndianOil nurtures the core values of Care, Initiative, Passion & Trust across the organization in
order to deliv...
 Integrity
 Truthfulness
 Transparency
MISSION :
“Rural connectivity, rural prosperity & rural well-being should widen ...
 To help enrich the quality of life of the community and preserve ecological balance and
heritage through a strong enviro...
 To achieve higher growth through mergers, acquisitions, integration and diversification
by harnessing new business oppor...
 To manage and operate all facilities in an efficient manner so as to generate adequate
internal resources to meet revenu...
1.3 EXECUTIVE PROFILE
1.3.1 RANBIR SINGH BUTOLA
Mr. R.S.Butola is Chairman of Indian Oil Corporation Ltd., India’s flagshi...
1.4 OPERATIONS & PRODUCTS
1.4.1 REFINERIES
The year 2010-11 saw IndianOil emerge as the nation's largest refiner. With the...
 Investments of Rs.45,430.3 crore during 2007-12.
1.4.2 PIPELINES
Indian Oil Corporation Ltd. owns and operates the large...
1.4.3 MARKETING
IndianOil continued to maintain its dominance in the market clocking the highest ever level of
sales at 66...
 35,000 sales points.
 167 bulk storage terminals and depots.
 101 aviation fuel stations.
 89 Indane (LPG) bottling p...
 9 patents received approvals.
 132 lubricant formulations commercialized.
 India’s first commercial Hydrogen-CNG dispe...
 ABB Lummus Global, USA : Joint marketing and commercialization of INDMAX
Technology.
 IFP/Axens, France : Catalyst/proc...
1.4.7 PROJECTS
Project implementations without time and cost over-runs have been accorded the highest priority
by your cor...
 Bijwasan-Panipat Naphtha pipeline.
 Branch pipeline from KSPL, Viramgam to Kandla.
NEW PROJECTS :
 High sulphur crude ...
 ATF/Jet Fuels
 SERVO Lubricants & Greases
 Agriculture Spray Oil
 Automotive Greases
 Automotive Lubricating Oils
 ...
 Petrochemicals
 LAB-HMW
 LAB-LMW
 PTA
 Polymers
 Crude Oil
 Special Products
 Benzene
 CBFS
 Food Grade Hexane
...
1.5 GREEN INITIATIVES
 All IndianOil refineries fully comply with the prescribed environmental standards and
incorporate ...
 Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units
are coming up at three more refine...
object in view are termed as exploratory or formulative research studies.
• To portray accurately the characteristics of a...
1.6.5 DATA COLLECTION SOURCE
Information was collected through both primary and secondary sources.
Primary Data : In some ...
CHAPTER – 2
SOCIAL SECURITIES AT INDIANOIL & THEIR
BENEFITS
2. SOCIAL SECURITIES AT INDIANOIL & THEIR BENEFITS
 Gratuity/Family Pension
 IndianOil Employee’s Welfare Co-operative /...
1. In addition to normal gratuity, compassionate gratuity may be paid when D(R) is
satisfied that the death of an employee...
More than 6 months - @ 15/26 of the monthly emoluments
6 months - @ 15/52 of the monthly emoluments
Less than 6 months - N...
An example for calculating the accelerated gratuity for death in respect of service period of 22
years and 10 months on em...
be for the period of service rendered in the Corporation from the date of
absorption/joining, so , however, that the total...
from service but before payment of gratuity is made, indicating the shares payable to each
member. In the case of an emplo...
2.2 INDIANOIL EMPLOYEE’s WELFARE CO-OPERATIVE / GROUP
INSURANCE SCHEMES / BENEVOLENT FUND SCHEME FOR SENIOR
OFFICERS
2.2.1...
regular employee. In case of death due to accident while in service, the insurance cover amount
payable to the nominee/ben...
 Corporation shall create a separate account head known as “Benevolent Fund for Senior
Officers” and the contributions ma...
2.3.2 APPLICABILITY
The scheme applies prospectively to all officers and non-officers of Refineries Division in the
regula...
any revision in the rate of employee’s contribution (or in his maximum entitlement)
under the scheme is warranted.
Followi...
rehabilitation grant to spouse on death of an employee while in service ceased to operate
from the date of implementation ...
2.3.5 QUALIFYING SERVICE
No member is required to contribute for the eligible past service rendered in the Corporation
bef...
2.4.1 SCHEME FOR PROVIDING POST-RETIREMENT MEDICAL ATTENDENCE
FACILITY FOR OFFICERS
Within the overall framework of the ru...
 Those who retire from the service of the Corporation on reaching the age of
superannuation, subject to rendering minimum...
The role and liability of the Corporation would be limited to obtaining insurance coverage/medi-
claim policies for such r...
2.6 USEFULNESS OF PERSONNEL POLICIES
2.6.1 GRATUITY/FAMILY PENSION
When an employee retires or separated from the services...
CHAPTER - 3
ANALYSIS & FINDINGS
3. ANALYSIS & FINDINGS
The objective behind the study of “SOCIAL SECURITIES AT INDIANOIL & THEIR
BENEFITS” is to know abou...
1) IOCL as the largest PSU, the perks & allowances are in comparison with those good private
companies.
Agree Disagree Par...
3) Do you agree that you and other employees are aware of the policies and welfare schemes ?
Agree Disagree Partially Agre...
5) Corporation gives me liberty to practice what I have learnt.
Agree Disagree Partially Agree Fully Disagree
36.36% 9.09%...
7) I am satisfied by the policies regarding allowances and perks offered by IOCL.
Agree Disagree Partially Agree Fully Dis...
9) Difference in compensation package between any two adjacent grades is small.
Agree Disagree Partially Agree Fully Disag...
11) In case of any emergency, corporation gives the medical reference letter immediately.
Agree Disagree Partially Agree F...
13) Services rendered by the corporation nominated hospitals/nursing homes are prompt and
efficient.
Agree Disagree Partia...
15) I am satisfied with the facility of superannuation benefit fund scheme.
Agree Disagree Partially Agree Fully Disagree
...
17) My present skills are enough to carry out the job effectively and efficiently.
Agree Disagree Partially Agree Fully Di...
19) My job makes the best use of my abilities and skills.
Agree Disagree Partially Agree Fully Disagree
56.06% 3.03% 31.82...
21) Compensation for injury by accident while on duty is good in comparison to other
organization.
Agree Disagree Partiall...
23) I am satisfied by the house rent allowances/self-lease policy of the organization.
Agree Disagree Partially Agree Full...
25) I am satisfied by the policies of IOCL, which have taken for the welfare of the employees.
Agree Disagree Partially Ag...
BIBLIOGRAPHY
BOOK :
 Administration and Personnel Manual of IOCL.
WEBSITES :
 www.iocl.com
 www.wikipedia.org
 www.goo...
Dated: 1st
July 2011
Respected Sir/Madam,
QUESTIONNAIRE
I am Rohan Bahri, student of BBA(CAM) from Chanderprabhu Jain Coll...
GUIDELINES FOR FILLING UP THE QUESTIONNAIRE:
All the questions have four options. Kindly tick (√) mark appropriate choice....
6) I do feel that corporation is concerned about my performance.
7) I am satisfied by the policies regarding allowances an...
13) Services rendered by the corporation nominated hospitals/nursing homes are prompt and
efficient.
14) Conveyance loan a...
20) Self appraisal system allows me to identify my weakness, strength and aspiration.
21) Compensation for injury by accid...
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Social securities at indian oil and their benefits

  1. 1. SOCIAL SECURITIES AT INDIANOIL & THEIR BENEFITS AN INDUSTRIAL TRAINING PROJECT REPORT Submitted by Rohan Bahri BBA (CAM) – 5th Sem Enroll No.: 00421501909 In the partial fulfillment for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION IN COMPUTER AIDED MANAGEMENT CHANDERPRABHU JAIN COLLEGE OF HIGHER STUDIES & SCHOOL OF LAW GURU GOBIND SINGH INDERPRASTHA UNIVERSITY DECEMBER 2011
  2. 2. CERTIFICATE This is to certify that Industrial Training Report entitled “Social Securities at IndianOil & their Benefits” which is submitted by Rohan Bahri in partial fulfillment of the requirement for the award of degree B.B.A. (CAM) to GGSIP University, Dwarka, New Delhi is a record of the candidate own work carried out by him under my supervision. The matter embodied in this thesis is original and has not been submitted for the award of any other degree. Date: Trainee: Supervisor: ROHAN BAHRI Dr. SATISH TANDON BBA(CAM) Chief Manager (Admin & Welfare) CPJ College of Higher Studies (GGSIPU) New Delhi
  3. 3. TABLE OF CONTENTS CHAPTER NO. TITLE PAGE NO. PREFACE i DECLARATION ii ACKNOWLEDGEMENT iii 1. INTRODUCTION 1 1.1 OVERVIEW 2 1.2 COMPANY PROFILE 9 1.2.1 History 9 1.2.2 IndianOil Today & Tomorrow 11 1.2.3 Vision, Values & Mission 12 1.2.4 Objectives & Obligations 15 1.2.5 Financial Objectives 17 1.2.6 Key Dates 17 1.3 EXECUTIVE PROFILE 19 1.3.1 Ranbir Singh Butola 19 1.4 OPERATIONS & PRODUCTS 20 1.4.1 Refineries 20 1.4.2 Pipelines 21 1.4.3 Marketing 22 1.4.4 Research & Development 23 1.4.5 Collaborations 24 1.4.6 Alternative Energy 26 1.4.7 Projects 26 1.4.8 Products 28 1.5 GREEN INITIATIVES 31
  4. 4. 1.6 RESEARCH METHODOLOGY 32 1.7.1 Meaning of Research 32 1.7.2 Objectives of Research 32 1.7.3 Significance of Research 33 1.7.4 Research Methodology 34 1.7.5 Data Collection Source 34 1.8 LIMITATIONS 35 2. SOCIAL SECURITIES AT INDIANOIL & THEIR BENEFITS 36 2.1 GRATUITY/FAMILY PENSION 37 2.1.1 Payment of Gratuity Act,1972 37 2.1.2 IOC Employees Gratuity Rules 37 2.1.3 Eligibility 38 2.1.4 Rates 38 2.1.5 Benefits 39 2.1.6 Nominations 42 2.2 INDIANOIL EMPLOYEE’s WELFARE CO-OPERATIVE / GROUP INSURANCE SCHEMES / BENEVOLENT FUND SCHEME FOR SENIOR OFFICERS 43 2.2.1 IndianOil Employee’s Welfare Co-operative Scheme 43 2.2.2 Group Savings Linked Insurance Scheme 43 2.2.3 Group Personal Accident Insurance 43 2.2.4 Group Insurance Scheme 44 2.2.5 Scheme for Voluntary Benevolent Fund For Officers in Grade ‘G’ & Above 44 2.3 SUPERANNUATION BENEFIT
  5. 5. FUND SCHEME 45 2.3.1 Introduction 45 2.3.2 Applicability 46 2.3.3 Eligibility 46 2.3.4 Contribution 47 2.3.5 Qualifying Service 49 2.3.6 Review of the Scheme 49 2.3.7 Administration of the Scheme 49 2.4 POST RETIREMENT MEDICAL ATTENDENCE FACILITY 50 2.4.1 Scheme for providing Post-Retirement Medical Attendance Facility for Officers 50 2.4.2 Post-Retirement Medical Scheme for Non-Officers 51 2.4.3 Scheme for Medical Coverage through Insurance Policy for Reimbursement of Hospitalization Expenses for Employees Separating under Voluntary Retirement Scheme 52 2.5 COMPENSATION FOR INJURIES BY ACCIDENTS WHILE ON DUTY 52 2.5.1 Payment under Workmen’s Compensation Act, 1923 52 2.5.2 Entitlement Under IOC’s Rule 53 2.6 USEFULNESS OF PERSONNEL POLICIES 53 2.6.1 Gratuity/Family Pension 53 2.6.2 IndianOil Employee’s Welfare Co-operative/ Group Insurance Schemes/Benevolent Fund Scheme for Senior Citizens 53 2.6.3 Superannuation Benefit Fund Scheme 53
  6. 6. 2.6.4 Post-Retirement Medical Attendance Facility 54 2.6.5 Compensation for Injuries by Accidents While on Duty 54 3. ANALYSIS & FINDINGS 55 BIBLIOGRAPHY iv QUESTIONNAIRE v
  7. 7. PREFACE Knowledge has two aspects - theoretical and practical and no theoretical concept is complete without having knowledge of its practical application. A few weeks industrial training programme was introduced as a part of curriculum of B.B.A(CAM). This industrial training programme proves beneficial to the future managers as they are confronted with the problems of actual work environment during their training period. As per the curriculum requirement , I did 6 weeks training in INDIANOIL CORPORATION LTD.. Working in such a big concern, no matter for a very small period was really a matter of pride. My area of work in that concern was confined to Human Resource department and moreover it was not possible for me to cover all the areas of HR department in such a short period of time so I concentrated my working on the project assigned to me i.e. “Social Securities at IndianOil & their Benefits”. So the learning during the training in IndianOil Corporation Ltd., a report of that is being presented in the following pages. Yours Sincerely, (ROHAN BAHRI)
  8. 8. DECLARATION This is to certify that the Industrial Training Report entitled “Social Securities at IndianOil & their Benefits” which is submitted by me in partial fulfillment of the requirement for the award of degree B.B.A.(CAM) to GGSIP University, Dwarka, New Delhi comprises only my original work and due acknowledgement has been made in the text to all other material used. ROHAN BAHRI CPJCHS (GGSIPU)
  9. 9. ACKNOWLEDGEMENT This project is an outcome of 6 weeks mandatory industrial training, which I have to undergo for the partial fulfillment of the BBA(CAM) program. I wish to put on record my sincere gratitude to the following person without whose support the completion of this project would not have been possible. With immense pleasure I am to present this project on “Social Securities at IndianOil & their Benefits”. At the very outset, I would like to express my profound sense of gratitude to the authorities of IndianOil Corporation Limited specially Mr. Ashok Jambur, Chief Training Manager, for giving me an opportunity to work with IndianOil Corporation Limited. I also want to thank Mr.Satish Tandon, Chief Manager (A&W) for helping me and training me efficiently and for providing me opportunities to access the record on the basis of which this project report stands. My heartiest thanks to my parent’s who have been always a source of unfailing support & encouragement in all the conditions of my life. In the end but not the least I would like to thank to all the members of the organization who took time out of their busy schedules and helped me in carrying out this project. Regards, ROHAN BAHRI
  10. 10. CHAPTER 1 INTRODUCTION
  11. 11. 1. INTRODUCTION 1.1. OVERVIEW Indian Oil Corporation Limited or IndianOil, is an Indian state-owned oil and gas company headquartered at Mumbai, India. The headquarters of refineries division of IndianOil is situated at New Delhi, India. It is India’s largest commercial enterprise, ranking 125th on the Fortune Global 500 list in 2010. IndianOil and its subsidiaries account for a 47% share in the petroleum products market, 34.8% share in refining capacity and 67% downstream sector pipelines capacity in India. The IndianOil Group of Companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 65.7 million metric tons per annum (MMTPA, i.e. 1.30 million barrels per day approx.) the largest share among refining companies in India. IndianOil employs more than 34,363 people worldwide as of March 2010. IndianOil Corporate Office, New Delhi, India. IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 47.5 million households through a network of 4,990 Indian distributors. In addition, IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. Subsequently, IndianOil Technologies Limited - a wholly owned subsidiary,
  12. 12. was set up in 2003, with a vision to market the technologies developed at IndianOil's Research and Development Center. It has been modeled on the R&D marketing arms of Royal Dutch Shell and British Petroleum. The year 2010 marked by registering the highest ever turnover of Rs. 3,28,744 crore. IndianOil Corporation Ltd. deals in following businesses :  Refining : 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. The basket of technologies, which are in operation in IndianOil refineries include: Atmospheric/Vacuum Distillation; Distillate FCC/Resid FCC; Hydrocracking; Catalytic Reforming, Hydrogen Generation; Delayed Coking; Lube Processing Units; Visbreaking; Merox Treatment; Hydro-Desulphirisation of Kerosene & Gasoil streams; Sulphur recovery; Dewaxing, Wax Hydro finishing; Coke Calcining, etc. On the environment front, all IndianOil refineries fully comply with the statutory requirements. Several Clean Development Mechanism projects have also been initiated. To address concerns on safety at the work place, a number of steps were taken during the year, resulting in reduction of the frequency of accidents.  Pipelines : Indian Oil Corporation Ltd. operates a network of 10,899 km long crude oil, petroleum product and gas pipelines with a capacity of 75.26 million metric tonnes per annum of oil and 10 million metric standard cubic meter per day of gas. Cross-country pipelines are globally recognised as the safest, cost-effective, energy-efficient and environment-friendly mode for transportation of crude oil and petroleum products. Implementation of Paradip-Sambalpur-Raipur-Ranchi Pipeline, branch pipeline from Koyali-Sanganer Pipeline at Viramgam to Kandla will further strengthen the petroleum product delivery in central and western India in the coming years. New pipeline projects of 2000 km worth approximately Rs. 2000 crore are planned for expanding the infrastructure for transportation of crude oil and petroleum products. These include the 700 km Paradip-Haldia-Budge Budge-Kalyani-Durgapur LPG Pipeline, 295 km Sanganer-Bijwasan Naphtha Pipeline, Augmentation of PHBPL and five additional tanks at Paradip, 270 km branch pipeline from Patna to Motihari and
  13. 13. Baitalpur, 120 km Cauvery Basin Refinery to Trichy Pipeline and 400 km Ennore- Trichy-Pondicherry LPG Pipeline.  Marketing : IndianOil has one of the largest petroleum marketing and distribution networks in Asia, with over 35,000 marketing touch points. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian sub-continent. From the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on India's western tip to Kohima in the verdant North East, IndianOil is truly in every heart, in every part'. IndianOil's vast marketing infrastructure of petrol/diesel stations , Indane (LPG) distributorships, SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations, inland depots, aviation fuel stations, LPG bottling plants and lube blending plants amongst others. The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralised administrative offices.  Research & Development Centre : In today's dynamic business environment, innovation through a sustained process of Research & Development (R&D) is the only cutting edge tool for organisations to thrive. With emphasis on development and speedy commercialisation of globally competitive products, processes and technologies, the focus has now shifted from R&D to RD&D (Research, Development & Deployment). The R&D Centre continues to provide significant support to the IndianOil Group refineries in product quality improvement, evaluation of catalysts and additives, health assessment of catalysts, material failure analysis, troubleshooting and in improving overall efficiency of operations. In-house developed FCC models are not only being used in IndianOil refineries for process optimisation but a similar model has also been sold to a multinational company.  Petrochemicals : India is amongst the fastest growing petrochemicals markets in the world. Taking this into consideration and to enhance its downstream integration, IndianOil is focusing on increasing its presence in the domestic petrochemicals sector besides the overseas markets through systematic expansion of customer base and innovative supply logistics. Petrochemicals have been identified as a prime driver of future growth by IndianOil. The Corporation is envisaging an investment of Rs 30,000 crore in the petrochemicals business in the next few years. These projects will utilise
  14. 14. product streams from the existing refineries of IndianOil, thereby achieving better exploitation of the hydrocarbon value chain.  Natural Gas : Over the years, Natural Gas has emerged as the 'fuel of choice' across the world. It is steadily replacing traditional fossil fuels due to its environment friendly characteristics which help in meeting the stipulated automobile emission norms. When compared with coal and oil, natural gas has a low carbon footprint due to its clean combustion features. Natural Gas has significant cost advantages too over crude oil and fuels such as Naphtha and commercial LPG. The Corporation entered the Natural Gas business in March 2004. Since then, by leveraging its inherent strengths and countrywide reach, IndianOil has significantly enhanced its customer base. In the year 2009-10, it clocked sales of 1.683 MMTPA (million metric tonnes per annum).  E & P : IndianOil’s business strategy focuses primarily on expansion across the hydrocarbon value chain, both within and outside the country, while simultaneously revisiting its strategic plans and undertaking mid-course corrections, wherever necessary. To enhance upstream integration, IndianOil has been pursuing exploration & production activities both within and outside the country in collaboration with consortium partners. The overseas portfolio includes eleven blocks spanning Libya, Iran, Gabon, Nigeria, Timor-Leste, Yemen and Venezuela. IndianOil is associated with two successful iscoveries in oil exploration blocks, one each in India and Iran. Commercial appraisal of these blocks is underway. IndianOil also farmed into an exploration block in Gabon along with Oil India Ltd. (OIL) as the operator. In addition, the IndianOil-OIL combine has acquired participating interest in a block in Nigeria. Refineries :  Digboi Refinery, in Upper Assam, is India's oldest refinery and was commissioned in 1901. Originally a part of Assam Oil Company, it became part of IndianOil in 1981. Its original refining capacity had been 0.5 MMTPA since 1901. Modernisation project of this refinery has been completed and the refinery now has an increased capacity of 0.65 MMTPA.
  15. 15.  Guwahati Refinery, the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by Late Pt.Jawaharlal Nehru, the first Prime Minister of India, on 1 January 1962.  Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA.  Gujarat Refinery, at Koyali in Gujarat in Western India, is IndianOil’s largest refinery. The refinery was commissioned in 1965. It also houses the first hydrocracking unit of the country. Its present capacity is 13.70 MMTPA.  Haldia Refinery, is the only coastal refinery of the Corporation, situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been increased to 5.8 MMTPA  Mathura Refinery, was commissioned in 1982 as the sixth refinery in the fold of IndianOil and with an original capacity of 6.0 MMTPA. Located strategically between the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to 7.5 MMTPA.  Panipat Refinery, is the seventh refinery of IndianOil. The original refinery with 6 MMTPA capacity was built and commissioned in 1998. Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project.  Bongaigaon Refinery, is the eight refinery of IndianOil. It became the eighth refinery of Indian Oil Corporation Limited after merger of Bongaigaon Refinery & Petrochemicals Limited with IOCL w.e.f. 25th March 2009. It is located at Dhaligaon in Chirang district of Assam, 200 Kms west of Guwahati.The present crude processing capacity of the refinery is 2.35 MMTPA. The refinery has two Crude Distillation Units of 1.35 MMTPA and 1.00 MMTPA capacities, two Delayed Coker Units each of 0.5 MMTPA capacity, one Coke Calcination Unit of 0.075 MMTPA and a Catalytic Reformer of 160,000 MTPA naphtha feed capacity and an LPG Bottling Plant.  Subsidiary refineries — Chennai Petroleum (9.5 MMTPA) It is believed that the future IOCL refinery will be Paradeep Refinery. It is expected to be handover at 2012.
  16. 16. Group Companies of IndianOil :  Lanka IOC PLC : Lanka IOC, IndianOil’s subsidiary in Sri Lanka, is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates retail petrol / diesel stations in Sri Lanka. Lanka IOC is ranked no. 1 among the island nation’s leading listed companies.  IndianOil (Mauritius) Ltd. : IndianOil (Mauritius) Ltd (IOML), a wholly owned subsidiary company of Indian Oil Corporation Ltd, is the third largest petroleum company in Mauritius. Registered on 24th Oct 2001 and commencing marketing operations in January 2004, IOML holds an overall market share of 24% and competes with other multinational companies present in Mauritius for over five decades.  IOC Middle East FZE : IOC Middle East FZE is IndianOil's subsidiary overseeing business expansion in the Middle East. Mainly into blending and marketing of SERVO lubricants and marketing of petroleum products in the Middle East, Africa and CIS countries, the company also markets Group 1 and Group 2 base oils in Bulk and Flexis. IOME exports finished lubes to Oman, Yemen , Bahrain, UAE and Nepal.  Chennai Petroleum Corporation Limited (CPCL) : Chennai Petroleum Corporation Limited (CPCL) is a world class Refining Company with dominant presence in South India. CPCL, formerly known as Madras Refineries Limited (MRL), was formed in 1965 as a joint venture between the Government of India (GOI), AMOCO and National Iranian Oil Company (NIOC). Subsequent to AMOCO’s and GOI’s disinvestment in 1985 and 2001 respectively, CPCL became a group company of Indian Oil Corporation Limited (IOCL).  IndianOil’s Green Initiative – CREDA : ‘Green Energy from Rural India’ a dream for clean fuel took shape on 6th February, 2009 when the JV, IndianOil-CREDA Biofuels Ltd. (ICBL) was incorporated for entering the biofuels value chain in the state of Chhattisgarh. Some quick facts about IndianOil :
  17. 17.  IndianOil owns the earliest refinery - Digboi Refinery commissioned in 1901.  IndianOil controls 10 of India’s 19 refineries.  The group refining capacity is 65.7 million metric tonnes per annum (MMTPA) or 65.7 million barrels per day -the largest share among refining companies in India.  It accounts for 34.8% share of national refining capacity. IndianOil refineries have an ambitious growth plan with an outlay of about Rs. 55,000 crore for capacity augmentation, de-bottlenecking, bottom upgradation and quality upgradation. Major projects under implementation include  15 MMTPA grassroots refinery at Paradip, Orissa,  Naphtha Cracker and Polymer Complex at Panipat,  Panipat Refinery expansion from 12 MMTPA to 15 MMTPA, among others.  Petrol quality upgradation projects at Panipat, Mathura, Barauni, Guwahati and Digboi refineries
  18. 18. 1.2 COMPANY PROFILE 1.2.1 HISTORY “Oil everyone knows is of vast importance in the world today and a country that does not produce its own oil is in a weak position…from the point of view of defence, the absence of oil is a fatal weakness.” Statement of Prime Minister Jawaharlal Nehru in Parliament, 26 May,1956 The story of the petroleum industry in India can be traced to the world’s oldest running refinery, at Digboi, in Assam. Set up in 1901, Digboi had a modest refinery capacity of 25,000 tonnes per annum. Prior to this, kerosene was imported into the country since the 1860’s, mainly for the purpose of illumination. In the pre-independence Indian economy, the public sector had a minimal presence. Thus as the growing demand for petroleum products outmatched the capacity of Digboi, the shortfall was met through imports by foreign companies operating in India. These included Burmah Oil Company, Stanvac, Burmah Shell, Caltex and Indi-Burma Petroleum Company. On the eve of independence, the oil industry was entirely in the hands of these multinationals. Following independence, the Indian leadership firmly believed that political sovereignty without economic self-reliance was unfeasible. The public sector was assigned the dominant role to power the rapid industrialization and growth of the New Industrial Policy Resolution of 1956 and the Second Five Year Plan (1956-61). Pandit Jawaharlal Nehru, the first prime minister of India, envisioned self-sufficiency in the strategic petroleum sector as integral to the building of a new, assertive and confident India.
  19. 19. Digboi Refinery, Assam, India The momentum of this thought was carried forward by the pioneering Petroleum Minister, Mr. Keshav Dev Malaviya, who had with him a formidable band of leaders and technocrats to help crystallize his vision of an indigenous IndianOil Industry. The breathtaking speed of the growth of the company can be best judged by the fact that by March 1964, the company had 7 main port installations, 3 major inland installations and 91 upcountry depots. Four branch offices, one each at Bombay, Delhi, Madras & Patna were established in 1960 to decentralize operations. But the year 1960-61 ended with a net loss of Rs.2,60,713. It was much later, in 1962-63, that IOC recorded its first profit of Rs. 59.60 Lakh and there was no looking back since then. Then came the force multiplier in the form of Guwahati Refinery, which was inaugurated by Pandit Jawaharlal Nehru on the 1st Jan 1962. The hectic pace at which the company ramped up refining and pipeline infrastructure is bore by the fact that by 1966, IndianOil had already commissioned three refineries – Guwahati, Barauni and Koyali, all located in strategic spots within striking distance of potential markets and close to known oil assets. Perhaps the biggest challenge for the company was also the building of a network of pipelines connecting refining hubs to consuming markets. Ports locations discharging crude had
  20. 20. to be linked with inland refineries. An unique aspect of laying pipelines was the challenge involved in its construction. A definitive moment was the strengthening of the company to take the next big leap. On 1st Sept, 1964, Indian Refineries Ltd. was dissolved and merged with Indian Oil Company Ltd. and the new company was renamed the Indian Oil Corporation Ltd. Thus began a new saga where both refineries and marketing were brought under one fold, marking the beginning of an integrated downstream consolidation. 1.2.2 INDIAN OIL TODAY & TOMORROW IndianOil, together with its subsidiaries, accounts for approximately 47% share of India’s petroleum market, 34.8% of national refining capacity, and 67% of downstream sector pipelines throughput capacity. The IndianOil group owns and operates 10 of India’s 19 refineries, with a combined capacity of 65.7 million barrels per day. Its 10,899 km network of cross-country crude oil and product pipelines is the most extensive in the country. In 2010-11, the company sold over 66.8 million tonnes of petroleum products in the domestic market and exported 4 million tonnes. IndianOil in investing Rs. 45,430.3 crore through 2007-12 towards refining and pipelines capacity augmentation, marketing infrastructure expansion, product quality upgradation, as well as in integration and diversification initiatives. IndianOil employs more than 34,363 people worldwide as of March 2010 and the year 2010 marked by registering the highest ever turnover of Rs. 3,28,744 crore.
  21. 21. 1.2.3 VISION, VALUES & MISSION VISION : With a dream to explore new vistas and emerge as a global entity, riding on the wave of deregulation, IndianOil coined its first vision statement in the year 1999. Since then, the business landscape in the country has changed. During the year, a need was perceived to re-visit the vision captured the collective aspiration of the IndianOil people as well as other stakeholders so as to create a ‘shared vision’ rather than ‘vision shared’. The resultant new vision is a matrix of six cornerstone elements and is designed to serve as the bedrock of IndianOil’s future growth and transformation into a globally admired company.
  22. 22. VALUES : IndianOil nurtures the core values of Care, Initiative, Passion & Trust across the organization in order to deliver value to its stakeholders. Care stands for  Concern  Empathy  Understanding  Co-operation  Empowerment Innovation stands for  Creativity  Ability to learn  Flexibility  Change Passion stands for  Commitment  Dedication  Pride  Inspiration  Ownership  Zeal & Zest Trust stands for  Delivered promises  Reliability  Dependability
  23. 23.  Integrity  Truthfulness  Transparency MISSION : “Rural connectivity, rural prosperity & rural well-being should widen the social & economic base of growth and development in our country”. -Prime Minister Dr. Manmohan Singh  To achieve international standards for excellence in all aspects of energy & diversified business with focus on customer delight through value of products & services, cost reduction.  To maximize creation of wealth, value and satisfaction for the stakeholders.  To attain leadership in developing, adopting and assimilating state-of-art technology for competitive advantage.  To provide technology and services through sustained Research & Development.  To foster a culture of participation and innovation for employee growth and contribution.  To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity.
  24. 24.  To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. 1.2.4 OBJECTIVES & OBLIGATIONS OBJECTIVES :  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 efficiently.  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 refining margin.  To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.  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.
  25. 25.  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 large. OBLIGATIONS :  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 environment- friendly 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. 1.2.5 FINANCIAL OBJECTIVES  To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital.  To ensure maximum economy in expenditure.
  26. 26.  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 Corporation’s business.  To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost competitiveness.  To complete all planned projects within the scheduled time and approved cost. 1.2.6 KEY DATES  1948 - India’s government passes the Industrial Policy Resolution, which states that its oil industry should be state-owned and operated.  1958 - The government forms its own refinery company, Indian Refineries Ltd.  1959 – Indian Oil Company is founded as a statutory body to supply oil products to Indian state enterprise.  1964 - Indian Refineries and Indian Oil Company merge to form the Indian Oil Corporation.  1976 - The Burmah-Shell and the Caltex refineries are nationalized  1981 - Half of India’s 12 refineries are operated by IndianOil.  1998 - The company’s seventh refinery is commissioned at Panipat.  2002 - The Indian petroleum industry is deregulated. Nevertheless, IndianOil 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, IndianOil believed it was well positioned for future growth and prosperity.
  27. 27. 1.3 EXECUTIVE PROFILE 1.3.1 RANBIR SINGH BUTOLA Mr. R.S.Butola is Chairman of Indian Oil Corporation Ltd., India’s flagship oil & gas major. Before joining IndianOil, Mr. Butola was the MD of ONGC Videsh Ltd. (OVL). Under his stewardship, OVL built a formidable E&P portfolio comprising both discovered and producing assets in over 15 countries. Mr. Butola is also the Chairman of Petroleum Federation of India (PetroFed). In a career spanning about three decades out of which two decades is in the hydrocarbon industry, Mr. Butola has shouldered various responsibilities prominent among which are the appraisal and evaluation of the Mumbai High Redevelopment Scheme as well as the implementation of ONGC’s first ERP. As the first Chief-Commercial of ONGC, Mr. Butola was instrumental in negotiating and executing the first Crude Oil Sales Agreement with the Refineries upon dismantling of the erstwhile Administered Pricing Regime. Mr. Butola holds a MBA from the Faculty of Management Studies, Delhi and is a Certified Associate of the Indian Institute of Bankers (CAIIB).
  28. 28. 1.4 OPERATIONS & PRODUCTS 1.4.1 REFINERIES The year 2010-11 saw IndianOil emerge as the nation's largest refiner. With the capacity expansion of Panipat and Haldia refineries, IndianOil's group refining capacity surged to 65.7 million tonnes per annum. During the year, IndianOil's refineries achieved 102% capacity utilization and recorded the highest-ever cumulative crude throughput of 53 million tonnes. A combined distillate yield of 75.4 %wt was achieved despite planned shutdowns and implementation of quality upgradation projects. Sustained efforts to save energy consumption saw overall specific energy consumption come down to the lowest ever level of 59 MBTU/BBL/NRGF (MBN) during the year against 62 MBN in 2009-10. Major projects commissioned during the year include Once-through Hydrocracker at Haldia, capacity augmentation of Haldia and Panipat Refineries, balance units of Naphtha Cracker Project at Panipat, Residue Upgradation and MS/HSD Quality improvement project at Gujarat, Quality improvement projects at Guwahati, Barauni and Digboi, and Sulphur Recovery Units at Haldia and Panipat refineries, etc  Owns and operates 10 of India’s 20 refineries.  Combined refining capacity of 65.7 MMTPA.  Accounts for 34.8% national refining capacity.  Sales of 66.8 million tonnes of petroleum products.  Exports of 4 million tones of petroleum products.
  29. 29.  Investments of Rs.45,430.3 crore during 2007-12. 1.4.2 PIPELINES Indian Oil Corporation Ltd. owns and operates the largest network of crude oil and petroleum pipelines in India. During the year, IndianOil's network of underground highways expanded to 10,899 km with a capacity of 75.26 MMTPA. The Corporation registered the highest ever operational throughput of 68.5 million tonnes of crude oil and petroleum products. The year was marked by IndianOil's entry into a new era of gas transportation by commissioning Dadri- Panipat Pipeline to supply Re-gassified LNG to Panipat Petrochemical Complex. During the year, the Bijwasan-Panipat Naphtha Pipeline was commissioned and Rajasthan crude was introduced into the Salaya-Mathura and Mundra-Panipat Pipelines.  67% downstream sector pipelines capacity in India.  Pipelines network crossed 10,000 km mark.  Commissioned a record no. of pipeline projects.  Paradip-Haldia crude oil pipeline commissioned.  Commissioned Panipat-Jalandhar LPG Pipeline.  First LPG Pipeline in North India from Panipat to Jalandhar.  Koyali-Ratlam product pipeline commissioned.  ATF Pipeline from CPCL (Manali) to Chennai AFS.  Highest ever operational throughput of 68.5 million metric tonnes per annum.
  30. 30. 1.4.3 MARKETING IndianOil continued to maintain its dominance in the market clocking the highest ever level of sales at 66.8 million tonnes in the domestic market during the year 2010-11 while the overall POL sales including exports touched 70.8 million tonnes. The year was marked by IndianOil leveraging its formidable supply chain network to make available Bharat Stage-III and IV compliant fuels at pump nozzles across the country. Ethanol-blending of petrol commenced in December 2010. In the high-volume, high-competition direct consumer business, IndianOil continued to be the leader while continuing to focus on penetration into rural areas through Kisan Seva Kendra (KSK) in retail sales. The Corporation commissioned 570 KSKs out of 820 new Retail Outlets commissioned during the year. Large format highway outlets were expanded and strengthened, together with automation of outlets and provision of state-of-the-art dispensing units to enhance customer satisfaction. 145 low-cost Indane distributorships were unveiled in rural areas across 13 states under the Rajiv Gandhi Gramin LPG Vitarak scheme. In LPG, 44 lakh new customers were added during the year and the total customer strength crossed 618 lakh. The bottling capacity was enhanced during the year and the total capacity has touched 5,518 TMTPA. Boosted by KSK outlets, MS and HSD (Retail) registered a robust volume growth. IndianOil's Aviation Service maintained its leadership in all segments of the business, viz., national carriers, defence services, scheduled private airlines and international airlines. Fuel supplies to the new terminal T-3 at Delhi Airport commenced through JVs. New businesses were gained and long-standing business ties with core sector customers were further strengthened.
  31. 31.  35,000 sales points.  167 bulk storage terminals and depots.  101 aviation fuel stations.  89 Indane (LPG) bottling plants.  7,335 bulk consumer pumps.  Widest network of petrol and diesel stations – 18,278  5,000 Indane distributors.  ISO-9002 certified Aviation Service commands over 63% market share.  XTRAPREMIUM available at 6446 retail outlets.  XTRAMILE available at 9256 retail outlets.  2545 Kisan Seva Kendras.  5,849 retail outlets have XTRAPOWER fleet card transactions. 1.4.4 RESEARCH & DEVELOPMENT IndianOil's R&D continued to add value to different facets of the Company's activities. During the year, 132 formulations were developed and over 80% were commercialised. The Centre holds 212 active patents which includes over 100 foreign patents. Some of the new in-house technologies and catalysts developed include a cost effective process for selective mercaptan removal in ATF production, a new chemical marker to check kerosene adulteration, SERVO Agrospray Oil, and bio-degradable Rubber Spray Oil.  Forays into new areas of research – Petrochemicals, Polymers and Nanotechnology.
  32. 32.  9 patents received approvals.  132 lubricant formulations commercialized.  India’s first commercial Hydrogen-CNG dispensing station at New Delhi.  Among the 6 worldwide technology holders for marine oils. 1.4.5 COLLABORATIONS  MOU signed with NPCIL for Nuclear Power Foray.  Research in Petrochemicals, Polymers and Nanotechnology.  9 patents received approvals.  Emphasis on developing & deploying cost-effective green technologies.  Development of Co-solvent technology to improve yield while processing LOB feedstock.  Annual savings of Rs.2 crore with reduction in catalyst loss in Indmax Unit, Guwahati Refinery.  FCCMOD simulator licensed to M/s. Intercat, yielding revenue of US $14590.  Ultra Imax generates royalty of Rs. 20 lakh.  Nation’s first commercialized Hydrogen-CNG dispensing station at New Delhi.  Explorations of sources of production of bio-fuels.  Research on bio-Hydrogen, algal fuels and lignocelluloses ethanol.  Indian Oil Technologies Ltd. (ITL) signed MoU with the Kuwait Institute of Scientific Research for collaborative R&D.
  33. 33.  ABB Lummus Global, USA : Joint marketing and commercialization of INDMAX Technology.  IFP/Axens, France : Catalyst/process development for high asphalting hydrocracking of Vaccum Gas Oil.  Intercat, USA : Joint venture for manufacturing and marketing of FCC catalysts/additives.  Korea Gas Corporation, South Korea : CNG-Hydrogen related projects.  TOTAL, France : Collaborative projects related to refining and fuel additives.  Zeolyst International, The Netherlands : Development of hydrocracking catalysts.  Bhabha Atomic Research Centre, Mumbai : Instrumented ‘pig’ for gauging the health of pipelines.  The Energy & Resources Institute, New Delhi : Bioremediation technology.  Sud-Chemie, India : Commercial production of FCC additive.  Mahindra & Mahindra Ltd., India : Development of alternative fuel technologies.  Balmer Lawrie & Co. Ltd., India : Tank cleaning, oil recovery & bioremediation. 1.4.6 ALTERNATIVE ENERGY  Developing & deploying cost effective green technologies.  JV with the Chattisgarh Renewable Development Authority (CREDA) – Indian Oil CREDA Biofuels Ltd.  Commissioned a Rs. 130 crore, 21 MW wind power project at Gujarat.  Commissioned pilot solar lantern charging station at Meerut.  Commissioned pilot solar lantern charging station at Bareilly.  Pilot project of jatropha plantation on 600 hectares of wasteland in Jhabua, MP.  MoU with M/s Ruchi Soya Industries Ltd. for contract farming on one lakh hectare wasteland in UP.  IBP division, which comprises the explosive and cryogenics business groups, sold 51,201 MTs of explosives. The cryogenics business group achieved an all time high production of 19,251 Cryo containers during the year.
  34. 34. 1.4.7 PROJECTS Project implementations without time and cost over-runs have been accorded the highest priority by your corporation. The status of the projects, as on date, is as under : COMPLETED PROJECTS :  Paradip-Haldia crude oil pipeline system.  Koyali-Ratlam product pipeline.  Augmentation of Mundra-Panipat pipeline.  New aviation turbine fuel pipeline between CPCL refinery & Chennai Airport.  New terminal at Cherlapalli (A.P.).  Crumb rubber modified bitumen plant at Mathura.  Flare gas recovery facilities at Guwahati & Haldia refineries.  21 MW wind power project at Gujarat.  Marketing terminal at Ratlam. MAJOR ON-GOING PROJECTS :  Capacity expansion of Panipat Refinery from 12 to 15 MMTPA.  Naphtha Cracker & downstream polymer project at Panipat.  Installation of facilities for improvement in diesel quality & distillates yield at Haldia Refinery.  Residue upgradation & MS/HSD quality improvement project at Gujarat Refinery.  15 MMTPA grass root refinery at Paradip, Orissa.  MS quality upgradation projects at Panipat, Mathura, Barauni, Guwahati, Digboi & Bongaigaon Refinery.  Diesel Hydro Treatment (DHDT) project at Bongaigaon Refinery.  Dadri-Panipat R-LNG spur pipeline.  Chennai-Bangalore product pipeline.  Branch pipeline from Koyali-Dahej pipeline to Hazira.
  35. 35.  Bijwasan-Panipat Naphtha pipeline.  Branch pipeline from KSPL, Viramgam to Kandla. NEW PROJECTS :  High sulphur crude maximization project at Barauni Refinery.  Paraxylene project at Gujarat Refinery.  Indmax project at Bongaigaon Refinery.  Delayed coking unit at Haldia Refinery. 1.4.8 PRODUCTS  Indane Gas  Auto Gas  Natural Gas  Petrol/Gasoline  Diesel/Gas Oil
  36. 36.  ATF/Jet Fuels  SERVO Lubricants & Greases  Agriculture Spray Oil  Automotive Greases  Automotive Lubricating Oils  Automotive Specialty Oils  Industrial Greases  Industrial Lubricating oils  Industrial Specialty Oils  Metal Working Oils  Railroad Greases  Railroad Oils  Marine Fuels & Lubricants  Kerosene  Bulk/Industrial Fuels  Furnace Oil  Light Diesel Oil  LSHS  Bitumen
  37. 37.  Petrochemicals  LAB-HMW  LAB-LMW  PTA  Polymers  Crude Oil  Special Products  Benzene  CBFS  Food Grade Hexane  Jute Batching Oil  Micro Crystalline Wax  Mineral Turpentine Oil  Paraffin Wax  Raw Petroleum Coke  Sulphur  Toluene
  38. 38. 1.5 GREEN INITIATIVES  All IndianOil refineries fully comply with the prescribed environmental standards and incorporate state-of-the-art effluent treatment technologies. Sustained efforts are being made to further improve the standards by introducing new state-of-the-art technologies further improve the existing standards and facilities.  Low Sulphur (0.5%) Diesel was introduced in metros from April 1996.  Extra-low Sulphur (0.25%) Diesel was introduced in the eco-sensitive Taj Trapezium area from September 1996, in Delhi from October 1997, and across the country from 1st January 2000.  Diesel with 0.05% sulphur content was introduced in the metros in 2001.  Unleaded Motor Sprit (petrol or Gasoline) was made available all over the country since February 1, 2000.  Green fuels (petrol and diesel) conforming to Euro-III emission norms have already been introduced in 13 cities/states; the rest of the country is getting BS-II fuels.  IndianOil is fully geared to meet the target of reaching EURO-III compliant fuels to all parts of the country by the year 2010; major cities will upgrade to Euro-IV compliant fuels by that time.  IndianOil has invested about Rs. 7,000 crore so far in green fuel projects at its refineries; ongoing projects account for a further Rs. 5,000 crore.
  39. 39.  Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units are coming up at three more refineries.  Diesel quality improvement facilities in place at all seven IndianOil refineries, several more green fuel projects are under implementation or on the anvil.  The R&D Centre of IndianOil is engaged in the formulations of eco-friendly biodegradable lube formulations.  The Centre has been certified under ISO-14000:1996 for environment management systems.  Highest standards of safety & environment protection in all its operations. 1.6 RESEARCH METHODOLOGY 1.6.1 MEANING OF RESEARCH Redman and Mory define research as a “systemized effort to gain new knowledge.” Some people consider research as a movement, a movement from the known to the unknown. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. 1.6.2 OBJECTIVES OF RESEARCH The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has it’s own specific purpose but the research objectives can be listed into a number of broad categories, as following:- • To gain familiarity with a phenomenon or to achieve new insights into it. Studies with this
  40. 40. object in view are termed as exploratory or formulative research studies. • To portray accurately the characteristics of a particular individual, situation or a group. Studies with this object in view are known as descriptive research studies. • To determine the frequency with which something occurs or with which it is associated with something else. Studies with this object in view are known as diagnostic research studies. • To test a hypothesis of a casual relationship between variables. Such studies are known as hypothesis-testing research studies. 1.6.3 SIGNIFICANCE OF RESEARCH “All process is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and inquiry leads to invention.” Is a famous Hudson Maxim in context of which the significance of research can well be understood. Increased amounts of research make progress possible. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Research, as an aid to economic policy, has gained added importance, both for government and business. 1.6.4 RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology.
  41. 41. 1.6.5 DATA COLLECTION SOURCE Information was collected through both primary and secondary sources. Primary Data : In some cases the researchers may realize the need for collecting the first hand information. As in the case of everyday life, if we want to have first hand information or any happening or event, we either ask someone who knows about it or we observe it ourselves, we do the both. Thus, the two method by which primary data can be collected is observation and questionnaire. Secondary Data : Any data, which have been gathered earlier for some other purpose, are secondary data in the hands of researcher. Those data collected first hand, either by the researcher or by someone else, especially for the purpose of the study is known as primary data. The data collected for this project has been taken from the secondary source. Sources of secondary data are :- • Internet • Magazines • Publications • Newspapers • Brochures 1.7 LIMITATIONS • The data is collected from secondary source due to lack of time for preparing the project. • The data is not 100% accurate.
  42. 42. CHAPTER – 2 SOCIAL SECURITIES AT INDIANOIL & THEIR BENEFITS
  43. 43. 2. SOCIAL SECURITIES AT INDIANOIL & THEIR BENEFITS  Gratuity/Family Pension  IndianOil Employee’s Welfare Co-operative / Group Insurance Schemes / Benevolent Fund Scheme for Sr. Officers  Superannuation Benefit Fund Scheme  Post-Retirement Medical Attendance Facility  Compensation for injuries by Accidents while on Duty 2.1 GRATUITY/FAMILY PENSION 2.1.1 PAYMENT OF GRATUITY ACT, 1972 The payment of Gratuity Act, 1972 is applicable to all the employees of the Corporation w.e.f. 24.5.94. However the employees may opt for benefits under the said Act or the IOC Employee’s Gratuity Rules, whichever is more beneficial. 2.1.2 IOC EMPLOYEES’S GRATUITY RULES  Short title and application:- These rules may be called the “Indian Oil Corporation Limited (Refineries Division) Employee’s Gratuity Rules” and shall be deemed to have come into force from the dates indicated here under: Non-Officers 30th May, 1967 Officers 18th July, 1973  Compassionate Gratuity Rules:-
  44. 44. 1. In addition to normal gratuity, compassionate gratuity may be paid when D(R) is satisfied that the death of an employee has left his family in straightened circumstances. 2. The amount of compassionate gratuity will be half month’s pay for each year of service subject to a maximum of 12 month’s pay and minimum of 10 month’s pay. (Compassionate gratuity will be paid on the basis of actual monthly emoluments and the formula of 15/26 of monthly emoluments will not apply).  IOCL Family Pension Rules for Central Government Servants absorbed permanently in IOC:-These rules may be called as the “IOC Family Pension Rules for Central Government Servants Absorbed Permanently in the Indian Oil Corporation Ltd.”, and shall apply uniformly to all the Divisions of IOC with effect from 5th November, 1986. 2.1.3 ELIGIBILITY An employee who was in service of the Corporation on the date of applicability of these rules or thereafter will be eligible for the benefits under the scheme and these rules. 2.1.4 RATES Subject to the other provisions of the scheme and these rules, gratuity will be paid to employees @ 15/26 of the monthly emoluments for every completed year of service or part thereof in excess of six months subject to a maximum of Rs. 3.5 lakhs. Note : If the residual portion of service is exactly 6 months, gratuity amount equal to 15/52 of the monthly wages may be paid over and above the gratuity calculated @ 15/26 of the monthly wages for every completed year of service. In other words, gratuity for the residual portion of service less than a year will be payable as under : Service of period Entitlement
  45. 45. More than 6 months - @ 15/26 of the monthly emoluments 6 months - @ 15/52 of the monthly emoluments Less than 6 months - Nil 2.1.5 BENEFITS Gratuity will be payable in various contingencies to the extent and subject to the conditions indicated below : a) In case of death of employee in service, the amount of gratuity will be as per the normal provision as outlined in sub-clause 2.1.1.4 or as worked out below, whichever is more : During first year of service – 2 month’s emoluments (actual) After 1 year but before 5 year’s service – 6 month’s emoluments (actual) After completion of 5 years service – 12 month’s emoluments (actual) but before 20 year’s service Service of 20 years or more – Half a month’s emoluments for completed half year of qualifying service provided the amount of death gratuity shall in no case exceed Rs. 3.5 lakhs (Half a month’s emoluments would mean 15/26 of a month’s emoluments). Illustration :
  46. 46. An example for calculating the accelerated gratuity for death in respect of service period of 22 years and 10 months on emoluments of Rs. 12,000 is given below : Normal Gratuity : To calculate 15/26 days for each completed year of service or part thereof in excess of 6 months (i.e. Rs. 12,000 x 15/26 x 23 = Rs. 1,59,230.77). Accelerated Gratuity : Half a month’s emoluments for completed half year of qualifying service (i.e. Rs.12,000 x 15/26 x 45 = Rs. 3,11,538.46). The least under normal gratuity (i.e. Rs. 1,59,230.77) is to be compared to the least under accelerated gratuity (i.e. Rs. 3,11,538.46) and whichever is more (i.e. Rs. 3,11,538.46) would be the entitlement in this case. b) In case of permanent mental or physical disability, gratuity will be paid as follows : i) If the service is less than 1 year, gratuity will be equivalent to 4 month’s emoluments. ii) If the service is 1 year or more but less than 5 years, gratuity will be equivalent to 6 month’s emoluments. iii) If the service is 5 years or more, gratuity will be equivalent to 10 month’s emoluments or at the normal rate of 15/26 of monthly emoluments for each completed year of service or part thereof in excess of 6 months, whichever is higher. c) Gratuity will be paid at the rate and subject to the conditions mentioned in sub-clause 2.1.1.4 in the following cases : i) Resignation or voluntary retirement or retirement as a result of superannuation or retrenchment on abolition of post or termination from service, under the contract of employment provided the service of the employee is 5 years or more. ii) In the case of Government servants who are on deputation and are absorbed in the Corporation’s service, and in the case of employees of other PSUs joining the Corporation, previous service with the Government/other PSU will be counted for computing the minimum qualifying service for determining eligibility-to gratuity under the Corporation’s Gratuity Rules. Payment of gratuity by the Corporation will
  47. 47. be for the period of service rendered in the Corporation from the date of absorption/joining, so , however, that the total of gratuity received by the employee from Government/other PSU and that payable by the Corporation does not exceed the amount of maximum gratuity admissible under the Corporation’s Gratuity Rules. d) In case of termination, discharge or dismissal as a measure of disciplinary action, payment of gratuity will be regulated as follows : i) If the service is less than 10 years, no gratuity is payable. ii) If the service is 10 years or more but less than 15 years, gratuity will be paid @ 3/4th of the amount payable under sub-clause 2.1.1.4. iii) If the service is 15 years or more, gratuity will be paid at the rate mentioned in sub- clause 2.1.1.4. e) Effective from 1.10.1982, an employee who resigns from his service with the Corporation and joins another Govt. Department/PSU, transfer of gratuity amount can be effected even if the employee has not completed the minimum eligibility period of 5 years for payment of gratuity under the Gratuity Rules. However, such transfer will be effected to the Govt. Department/PSU in which the employee has joined after resigning from the service of the Corporation subject to the condition that : i) Such Govt. Department/PSU agrees to accept the gratuity transfer and make payment to the employee when he leaves it; and ii) In case the gratuity amount is not ultimately paid to the employee concerned for any reason whatsoever, the transferred amount shall be paid back to the Corporation. The amount of gratuity to be transferred will be calculated as per normal provision under 2.1.1.4. The above provisions will equally apply in the case of employees leaving Govt. Department/other PSU and joining IOC. 2.1.6 NOMINATIONS a) Every employee shall make a nomination conferring on one or more persons of his family, the right to receive gratuity in the event of his/her death while in service or after separation
  48. 48. from service but before payment of gratuity is made, indicating the shares payable to each member. In the case of an employee having no family, the nomination may be made in the favour of a person or persons, corporate or incorporate. If, after having made a nomination in favour of a person who is not a member of his/her family, the employee acquires a family, the nomination so made will automatically lapse and unless a fresh nomination is made, gratuity will be paid in accordance with the provisions of para (c) below. b) An employee may, at any time, revoke or change the nomination made vide para (a) above and make a new one which shall be effective from the date it is received by the Corporation. c) In the event of there being no nomination, the gratuity on death may be paid in the manner indicated below : i) If there are one or more surviving members of the family, the gratuity may be paid to all such members, other than any member who is a widowed daughter, in equal shares. ii) If there are no such surviving members of the family but there are one or more surviving widowed daughters and/or one or more surviving members of the family, the gratuity may be paid to all such members in equal shares.
  49. 49. 2.2 INDIANOIL EMPLOYEE’s WELFARE CO-OPERATIVE / GROUP INSURANCE SCHEMES / BENEVOLENT FUND SCHEME FOR SENIOR OFFICERS 2.2.1 INDIAN OIL EMPLOYEE’s WELFARE CO-OPERATIVE SCHEME A benevolent fund scheme called Indian Oil Employee’s Welfare Co-operative Society Ltd. (hereinafter known as Welfare Co-operative Society) for the benefit of Corporation’s employees on their death/permanent disability is in operation in the Corporation. The Welfare Co-operative Society has been formed by the employees of the Corporation themselves. It has its registered office at Mumbai. 2.2.2 GROUP SAVINGS-LINKED INSURANCE SCHEME LIC have formulated a Group Savings – Linked Insurance Scheme for employees of public sector undertakings. The scheme has also been introduced in IOC. Under the Scheme, a part of the monthly premium payable is charged for risk coverage of life and the remaining amount is kept in a savings account earning interest at pre-determined rates compounded on yearly basis. The premium are payable by the member employees through the employer by deduction from monthly salaries. The scheme is intended to provide the member employees the twin benefits of an insurance cover to help their families in the event of death in service and a lump sum payment to augment their resources after attaining the age of superannuation. About 1/3rd of the monthly premium is contributed towards risk cover and the balance 2/3rd is put by LIC in a savings account earning interest. 2.2.3 GROUP PERSONAL ACCIDENT INSURANCE In lieu of GSLI Double Accident Benefit Scheme, the Group Personal Accident Insurance Scheme has been introduced w.e.f. 1st July ,1993. The Insurance cover is available to each
  50. 50. regular employee. In case of death due to accident while in service, the insurance cover amount payable to the nominee/beneficiaries is as under :- Officers Insurance Cover A) Group I (Gr. ‘C’ & above) Rs. 1,00,000/- Group II (Gr. ‘A’ & ‘B’) Rs. 75,000/- B) For Non-Officers Group III (Gr. IV to VIII) Rs. 50,000/- Group IV (Gr. I to III) Rs. 30,000/- 2.2.4 GROUP INSURANCE SCHEME The LIC Group Insurance Scheme for employees of Indian Oil Corporation is designed to provide insurance protection in the event of premature death while in active service. The Scheme is in lieu of the benefits envisaged under the Employee’s Deposit Linked Insurance Scheme, 1976 (subsequently amended in May, 1990). 2.2.5 SCHEME FOR VOLUNTARY BENEVOLENT FUND FOR OFFICERS IN GRADE ‘G’ AND ABOVE  This Scheme shall be deemed to have come into force with effect from 1st January, 2007.  Officers of Indian Oil Corporation Ltd. in salary grades G and above shall be eligible to become members of the scheme upon submission of a Declaration cum Nomination in the prescribed format.  Membership request from such officers shall be accepted from the date of commencement of the scheme i.e. 1st January, 2007 or the date of joining in grade G, whichever is later.  A member of the scheme will be required to make a monthly contribution of Rs. 100/- from the date of membership. The monthly contribution shall be recovered from the monthly salary payable.
  51. 51.  Corporation shall create a separate account head known as “Benevolent Fund for Senior Officers” and the contributions made by the officers as at (5) above shall be credited to this account.  The Corporation may retain the accumulation and use the money so available in any manner for its business, as it may deem fit.  The Corporation may arrange to pay from and out of the said accumulation, a benevolent lump sum amount of Rs. 15 lakhs to the dependents/legal heirs of an officer of the Corporation in salary grade in G and above, who was a member of the scheme, in the event of his/her death for any reason whatsoever.  The benevolent lump sum so payable, out of the fund created by contributions from member officers, shall be exclusive of any other payments/compensation that the dependents/legal heirs of the deceased officers are otherwise entitled to receive under any scheme of the Corporation or any statute in force. 2.3 SUPERANNUATION BENEFIT FUND SCHEME 2.3.1 INTRODUCTION A voluntary and contributory Superannuation Benefit Fund Scheme has been instituted in the Corporation, as a welfare measure, for providing social security. Specified benefits under the Scheme accrued to members on fulfillment of laid-down conditions upon :  Retirement on attaining the age of superannuation; or  Death/permanent total disablement; or  After rendering the prescribed minimum service prior to separation from the corporation (The benefit of in such a case is payable after the employee has attained the age of superannuation). The scheme is being operated through a Trust. The Trustees manage the funds and, upon a member’s qualifying under the scheme, purchase annuity from LIC to secure entitled recurring benefit.
  52. 52. 2.3.2 APPLICABILITY The scheme applies prospectively to all officers and non-officers of Refineries Division in the regular scales of pay in the Corporation, including the new entrants, as on the date of the introduction of the scheme or from the date of joining, whichever is later. However, the scheme is not applicable to the following :- 1. Contract Appointees. 2. Employees on deputation from other organizations to IOC. 3. Trainees and Apprentices. 2.3.3 ELIGIBILTY Minimum qualifying service for a member to become entitled for the benefit under the scheme in following contingencies is as respectively mentioned against each :  Retirement on attaining the age of superannuation.  Death/permanent total disablement.  Benefit is admissible irrespective of the length of service.  Resignation.  15 years of service which shall include minimum of 5 years actual service and contribution after the implementation of the scheme. 2.3.4 CONTRIBUTION Employer’s contribution to the Contributory Superannuation Benefit Fund is a token amount of Rs.100 per annum.  Contribution by the employees:- Contribution of the employee is to be calculated on his salary and the rate depends upon the age at the time of an individual’s entry into the scheme. Rate fixed at the time of entry will remain constant unless re-fixed by the Trustees who may from time to time review the availability of funds and decide whether
  53. 53. any revision in the rate of employee’s contribution (or in his maximum entitlement) under the scheme is warranted. Following rates of contribution calculated on BP + DA + Protected Pay + NPA (wherever applicable) are payable by employees depending upon their age group :- Age Groups Rate of Contribution 38 years or less - 2% Above 38 years but less than 48 years - 3% 48 years but less than 53 years - 4% 53 years and above - 5%  Other Contributions:- Apart from the direct contribution depending upon the age at the time of entry into the scheme as a percentage of the employee’s salary, additional contribution is to be made by the member employees to make up the requirement relating to funding the scheme, as determined by actuaries from time to time. Such contribution shall be effected by the Corporation as deduction from the salary of the employee every month or by such other mode as the Trustees may decide upon in consultation with the Corporation.  Deputed employees retaining lien:- Employees of the Corporation appointed in, or deputed to sister organizations in the industry and retaining their lien to posts of the IOC for specified period may also be permitted to continue as members of the Superannuation Benefit Fund provided the employee contributes the laid down percentage of his salary to the fund and the employer also makes a lump sum contribution equivalent to a stipulated amount to the fund (which amount is alternatively payable by the employee himself).  Contributions during period of leave/suspension:- Employees are required to make full contributions towards the fund for periods of leave without pay. Full contribution is also recovered from subsistence allowance payable to a suspended employee. No contribution is to be made for the period of study leave without pay or special leave without pay granted to a female employee for joining her husband or child care leave, but such periods shall also not be taken into account for calculating reckonable service.  Transfer of Rehabilitation Grant:- With the introduction of SBF scheme, the previous scheme of offering employment to dependent of deceased employee or of paying
  54. 54. rehabilitation grant to spouse on death of an employee while in service ceased to operate from the date of implementation of the scheme. Depending upon the age of the spouse, the following amount of rehabilitation grant as previously admissible is surrendered by the Corporation to the Trust in case the female spouse or dependent male spouse, as the case may be, exercises Option R-1 or Option R-2 of the Rehabilitation Scheme : For female spouse of 35 years of age or less – 3 months BP or less drawn For female spouse of more than 35 years of age – 25 months BP last drawn The above amount of rehabilitation grant will be transferred forthwith under Option R-1 and Option R-2 of the Rehabilitation Scheme.  Refund of Contribution:- An employee resigning from the service of the Corporation without completing 15 years of qualifying service shall be refunded his direct contribution by way of percentage of salary with interest thereon at the rate as decide by the Management from time to time.  Benefits:- 1. The maximum benefit payable under the scheme to the superannuating employee is @ 40% of the salary* (as respectively defined for individual’s contribution as percentage of salary) for period of guaranteed 15 years or death of the employee, whichever is later. 2. 32(full) years reckonable service should be completed by an employee for drawing full benefit. For reckonable service of less than 32 years, the benefit would be proportionately less. 3. In case of death or permanent disablement of an employee while in service, it will be construed that the employee had rendered full 32 years service for drawing full benefit as in the maximum benefit. 4. Option to elect annuity offered by LIC: The superannuating/disabled employee or eligible dependent of deceased employee, as the case may be, has the option to elect within two months prior to due date for purchase of annuity, any one of the following recurring benefits offered by LIC within the purchase price of standard annuity option (i.e. lifetime of the member with guarantee for 15 years).
  55. 55. 2.3.5 QUALIFYING SERVICE No member is required to contribute for the eligible past service rendered in the Corporation before introduction of the scheme. For this purpose, the following formula will be used:- (1-d/100) x d ; ‘d’ denotes past service 2.3.6 REVIEW OF THE SCHEME Trustees may review the availability of funds annually or at such other intervals as may be fixed by the Trustees to decide whether any revision in the maximum entitlement and/or rate of the member’s contribution under the scheme is warranted. 2.3.7 ADMINISTRATION OF THE SCHEME Finance Department, Refineries HQ administers the Scheme, with regard to purchase of annuities, investment of funds and maintenance of accounts etc. Policy changes/interpretations are issued by Corporate Office. 2.4 POST RETIREMENT MEDICAL ATTENDENCE FACILITY The scheme of medical attendance facility during post-retirement period has been introduced with effect from 1.1.1985 for officers and 1.11.1988 for non-officers as amended from time to time. As a purely welfare measure, the scheme is aimed at providing medical attendance in their old age, to eligible separated employees of the Corporation (and/or their dependent spouse, dependent parents & dependent children who are mentally retarded/spastic/suffering from incurable congenital diseases) who superannuate/voluntarily retire or are retrenched subject to fulfillment of eligibility criteria prescribed under this scheme. The scheme is contributory but voluntary. The details of the respective schemes are given below.
  56. 56. 2.4.1 SCHEME FOR PROVIDING POST-RETIREMENT MEDICAL ATTENDENCE FACILITY FOR OFFICERS Within the overall framework of the rules and regulations of the Medical Rules of the Corporation, the facility of post-retirement medical attendance will be admissible to the following categories of officers on a contributory and voluntary basis :  Those who retire from the service of the Corporation on reaching the age of superannuation, subject to rendering minimum service for 10 years in IOC and/or with Government and/or organizations in the Public Sector.  Those who prematurely/voluntarily retire from the service of the Corporation after attaining the age of 45 years, subject to rendering minimum service for 10 years in IOC and/or with Government and/or in organizations in the Public Sector.  Those who resigned from the service prior to 23.07.03, with specific consent of the Corporation, after attaining the age of 50 years subject to rendering minimum service for 20 years. In case of subsequent separation by way of resignation, the post-retirement facility will not be admissible to the employee and his permissible dependent family members irrespective of his age at the time of resignation and/or the years of service put in by him.  Those who relinquish charge as whole-time Director of the Corporation at Board level after rendering minimum service for a term of the tenure appointment provided one of the conditions at (i), (ii) and (iii) above is met. 2.4.2 POST-RETIREMENT MEDICAL SCHEME FOR NON-OFFICERS Employees fulfilling one of the following conditions would be eligible to seek membership of the scheme:
  57. 57.  Those who retire from the service of the Corporation on reaching the age of superannuation, subject to rendering minimum service for 10 years in the Corporation/Govt./Public Sector.  Those who prematurely/voluntarily retire from the service of the Corporation, after attaining the age of 45 years, subject to rendering minimum service of 10 years in the Corporation.  Those who resigned from the service prior to 23.07.03, with specific consent of the Corporation, after attaining the age of 50 years subject to rendering minimum service of 20 years.  Those whose services are terminated for reasons other than on grounds of disciplinary action, subject to their attaining age of 50 years and rendering continuous service for a minimum period of 20 years in the Corporation/Govt./Public Sector.  The surviving spouse, dependent parent(s) and dependent eligible children of an employee dying in service shall be eligible for benefits under the scheme, (irrespective of the period of service rendered by the deceased employee. 2.4.3 SCHEME FOR MEDICAL COVERAGE THROUGH INSURANCE POLICY FOR REIMBURSEMENT OF HOSPITALISATION EXPENSES FOR EMPLOYEES SEPERATING UNDER VOLUNTARY RETIREMENT SCHEME Medical coverage to employees separating under Voluntary Retirement Scheme before attaining the age of 50 years will be provided (from the date of separation till attaining the age of 50 years) through suitable Insurance Policy for employee and his/her surviving spouse as per limit below. Category/Coverage Extent of Medical Coverage per year GMS & Above Rs.1,00,000/- Gr. D to Gr. G Rs.75,000/- Officer in Gr. A, B & C Rs.50,000/- Non-Officers Rs.50,000/-
  58. 58. The role and liability of the Corporation would be limited to obtaining insurance coverage/medi- claim policies for such retiring employees (as per rate of premium payable per person per annum for the prescribed extent of medical coverage). 2.5 COMPENSATION FOR INJURIES BY ACCIDENTS WHILE ON DUTY 2.5.1 PAYMENT UNDER WORKMEN’S COMPENSATION ACT, 1923 The Workmen’s Compensation Act, 1923 is designed to mitigate the effects of accidents and thus make industrial life more secure and attractive. The underlying principle of the statute is to secure compensation to workmen for injuries by accidents arising out of and in the course of their employment. 2.5.2 ENTITLEMENT UNDER IOC’S RULES  The leave salary is not deductible from the amount of compensation payable under the Workmen’s Compensation Act.  For discharging legal obligations and to avoid any complications, compensation payable under the Act should be channelized through the prescribed competent authority. Additional amount due under the Corporation’s Rule (i.e. full leave salary minus half monthly payments) may be paid directly to the employee.
  59. 59. 2.6 USEFULNESS OF PERSONNEL POLICIES 2.6.1 GRATUITY/FAMILY PENSION When an employee retires or separated from the services of corporation he becomes eligible for a maximum tax free gratuity of Rs. 10 lakh as per services of years. 2.6.2 INDIANOIL EMPLOYEE’s WELFARE CO-OPERATIVE / GROUP INSURANCE SCHEMES / BENEVOLENT FUND SCHEME FOR SENIOR OFFICERS This policy also provides financial assistance to the officers after their superannuation. 2.6.3 SUPERANNUATION BENEFIT FUND SCHEME In order to keep the retired employees happy and financially sound, a superannuation benefit fund scheme has been started. In this scheme a fix percentage of amount is deposited by the company and a fix percentage of amount is deducted from the monthly salary of an employee and after retirement a certain amount or pension is provided to the employee as per option availed by him or herself. 2.6.4 POST RETIREMENT MEDICAL ATTENDENCE FACILITY After the retirement of an employee, a liberal medical scheme has been chalked out so that the employee could lead a healthy life. This scheme is very useful for the employees. 2.6.5 COMPENSATION FOR INJURIES BY ACCIDENTS WHILE ON DUTY The company has made a very good policy for the employees, who get injured while on duty. The injured employee is liberally compensated so that he could lead a contended life.
  60. 60. CHAPTER - 3 ANALYSIS & FINDINGS
  61. 61. 3. ANALYSIS & FINDINGS The objective behind the study of “SOCIAL SECURITIES AT INDIANOIL & THEIR BENEFITS” is to know about the structure of overall policies and welfare schemes set-up and it’s usefulness in the corporation.  The objective of the study is to mapping the different policies & schemes for the welfare of employees.  How these policies and welfare schemes are useful for the employees ?  How these policies and welfare schemes encouraging employees to perform their best for the accomplishment of the objective of the corporation ?  Are these policies fruitful or beneficial for the organization ?  How far these schemes are practical ?  To obtain creative solutions/suggestions in the Policies and Welfare schemes.  What kind of other welfare schemes should be implemented by the organization ?  To get the right feedback from the employees. This analysis gives a broader view of the employees’ perception of the Social Securities Policies at IndianOil & their benefits. This data may also be used in future for enhancing Social Securities Policies leading to employees’ satisfaction and improved work environment.
  62. 62. 1) IOCL as the largest PSU, the perks & allowances are in comparison with those good private companies. Agree Disagree Partially Agree Fully Disagree 56.06% 3.03% 31.82% 9.09% 2) The company communicates its policies and welfare schemes clearly ? Agree Disagree Partially Agree Fully Disagree 56.06% 4.55% 37.88% 1.52% 0 10 20 30 40 50 60 Agree-56.06% Disagree-3.03% PartiallyAgree - 31.82% Fully Disagree - 9.09% Agree-56.06% Disagree-4.55% PartiallyAgree- 37.88% Fully Disagree
  63. 63. 3) Do you agree that you and other employees are aware of the policies and welfare schemes ? Agree Disagree Partially Agree Fully Disagree 51.52% 9.09% 37.88% 1.52% 4) Do you agree that there is any effect of the HR Policies and Social Security policies on the corporation ? Agree Disagree Partially Agree Fully Disagree 62.12% 10.61% 22.73% 4.55% Agree-51.52% Disagree-9.09% PartiallyAgree- 37.88% Fully Dis agree- 1.52% 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Agree-62.12% Disagree-10.61% PartiallyAgree - 22.73% Fully Disagree - 4.55%
  64. 64. 5) Corporation gives me liberty to practice what I have learnt. Agree Disagree Partially Agree Fully Disagree 36.36% 9.09% 50.00% 4.55% 6) I do feel that corporation is concerned about my performance. Agree Disagree Partially Agree Fully Disagree 34.85% 7.58% 51.52% 6.06% Agree-36.36% Disagree-9.09% PartiallyAgree-50.00% Fully Disagree-4.55% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Agree-34.85% Disagree-7.58% PartiallyAgree - 51.52% Fully Disagree - 6.06%
  65. 65. 7) I am satisfied by the policies regarding allowances and perks offered by IOCL. Agree Disagree Partially Agree Fully Disagree 45.45% 455% 42.42% 7.58% 8) IOCL is taking care of my family. Agree Disagree Partially Agree Fully Disagree 63.64% 3.02% 28.79% 4.55% Agree-45.45% Disagree-4.55% PartiallyAgree-42.42% Fully Disagree-7.58% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% Agree-63.64% Disagree-3.02% PartiallyAgree - 28.79% Fully Disagree - 4.55%
  66. 66. 9) Difference in compensation package between any two adjacent grades is small. Agree Disagree Partially Agree Fully Disagree 54.55% 18.18% 22.73% 4.54% 10) The present compensation confirms to my need. Agree Disagree Partially Agree Fully Disagree 10.61% 30.30% 15.15% 43.94% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Agree-54.55% Disagree-18.18% PartiallyAgree - 22.73% Fully Disagree - 4.54% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% Agree-10.61% Disagree-30.30% PartiallyAgree - 15.15% Fully Disagree - 43.94%
  67. 67. 11) In case of any emergency, corporation gives the medical reference letter immediately. Agree Disagree Partially Agree Fully Disagree 86.36% 0.00% 10.61% 3.03% 12) The medical benefits provided to me are excellent & comparable with any reputed PSU. Agree Disagree Partially Agree Fully Disagree 83.33% 1.52% 12.12% 3.03% Agree-86.36% Disagree-0.00% PartiallyAgree-10.61% Fully Disagree-3.03% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Agree-83.33% Disagree-1.52% PartiallyAgree - 12.12% Fully Disagree - 3.03%
  68. 68. 13) Services rendered by the corporation nominated hospitals/nursing homes are prompt and efficient. Agree Disagree Partially Agree Fully Disagree 72.73% 4.55% 19.70% 3.02% 14) Conveyance loan and reimbursement policies are comparable with other oil companies. Agree Disagree Partially Agree Fully Disagree 6.06% 27.27% 6.06% 60.61% Agree-72.73% Disagree-4.55% PartiallyAgree - 19.70% Fully Disagree - 3.02% Agree-6.06% Disagree-27.27% PartiallyAgree - 6.06% Fully Disagree - 60.61%
  69. 69. 15) I am satisfied with the facility of superannuation benefit fund scheme. Agree Disagree Partially Agree Fully Disagree 46.97% 4.55% 40.91% 7.58% 16) Facilities in company’s quarters are good. Agree Disagree Partially Agree Fully Disagree 30.30% 7.58% 54.54% 7.58% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% Agree-46.97% Disagree-4.55% PartiallyAgree - 40.91% Fully Disagree - 7.58% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Agree-30.30% Disagree-7.58% PartiallyAgree-54.54% Fully Disagree - 7.58%
  70. 70. 17) My present skills are enough to carry out the job effectively and efficiently. Agree Disagree Partially Agree Fully Disagree 65.14% 4.55% 25.76% 4.55% 18) Communication between inter & intra department is good. Agree Disagree Partially Agree Fully Disagree 37.88% 7.58% 50.00% 4.55% Agree-65.14% Disagree-4.55% PartiallyAgree - 25.76% Fully Disagree - 4.55% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% Agree-37.88% Disgree-7.58% PartiallyAgree - 50% Fully Disagree - 4.55%
  71. 71. 19) My job makes the best use of my abilities and skills. Agree Disagree Partially Agree Fully Disagree 56.06% 3.03% 31.82% 9.09% 20) Self appraisal system allows me to identify my weakness, strength and aspiration. Agree Disagree Partially Agree Fully Disagree 40.91% 9.09% 42.42% 7.58% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Agree-56.06% Disagree-3.03% PartiallyAgree - 31.82% Fully Disagree - 9.09% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% Agree-40.91% Disagree-9.09% PartiallyAgree - 42.42% Fully Disagree - 7.58%
  72. 72. 21) Compensation for injury by accident while on duty is good in comparison to other organization. Agree Disagree Partially Agree Fully Disagree 56.06% 3.03% 31.82% 9.09% 22) I am satisfied by the policy of promotion. Agree Disagree Partially Agree Fully Disagree 24.24% 10.61% 50.00% 15.15% Agree-56.06% Disagree-3.03% PartiallyAgree - 31.82% Fully Disagree - 9.09% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% Agree-24.24% Disagree-10.61% PartiallyAgree - 50% Fully Disagree - 15.15%
  73. 73. 23) I am satisfied by the house rent allowances/self-lease policy of the organization. Agree Disagree Partially Agree Fully Disagree 51.52% 13.64% 24.24% 10.60% 24) Training programmes help me in achieving the goals, I have set for myself. Agree Disagree Partially Agree Fully Disagree 46.97% 7.58% 36.36% 9.09% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Agree-51.52% Disagree-13.64% PartiallyAgree - 24.24% Fully Disagree - 10.61% Agree-46.97% Disagree-7.58% PartiallyAgree - 36.36% Fully Disagree - 9.09%
  74. 74. 25) I am satisfied by the policies of IOCL, which have taken for the welfare of the employees. Agree Disagree Partially Agree Fully Disagree 53.03% 6.06% 34.85% 6.06% Agree-53.03% Disagree-6.06% PartiallyAgree - 34.85% Fully Disagree - 6.06%
  75. 75. BIBLIOGRAPHY BOOK :  Administration and Personnel Manual of IOCL. WEBSITES :  www.iocl.com  www.wikipedia.org  www.google.com/images
  76. 76. Dated: 1st July 2011 Respected Sir/Madam, QUESTIONNAIRE I am Rohan Bahri, student of BBA(CAM) from Chanderprabhu Jain College of Higher Studies, Guru Gobind Singh Indraprastha University, New Delhi. As a part of my Industrial Training, I have chosen a topic entitled “Social Securities at IndianOil & their Benefits”. You are requested to kindly indicate your response for the questions mentioned hereunder. As I am doing this project only for academic purpose, therefore, I assure you that your valuable responses shall be kept confidential. Please feel free to put your exact response. Thanking you in advance for your valuable responses/comments. Yours sincerely, ROHAN BAHRI CPJCHS (GGSIPU)
  77. 77. GUIDELINES FOR FILLING UP THE QUESTIONNAIRE: All the questions have four options. Kindly tick (√) mark appropriate choice. All the questions have a rating as following : 1. Agree 2. Disagree 3. Partially Agree 4. Fully Disagree Questionnaire: 1) IOCL as the largest PSU, the perks & allowances are in comparison with those good private companies. 2) The company communicates its policies and welfare schemes clearly ? 3) Do you agree that you and other employees are aware of the policies and welfare schemes ? 4) Do you agree that there is any effect of the HR Policies and Social Security policies on the corporation ? 5) Corporation gives me liberty to practice what I have learnt.
  78. 78. 6) I do feel that corporation is concerned about my performance. 7) I am satisfied by the policies regarding allowances and perks offered by IOCL. 8) IOCL is taking care of my family. 9) Difference in compensation package between any two adjacent grades is small. 10) The present compensation confirms to my need. 11) In case of any emergency, corporation gives the medical reference letter immediately. 12) The medical benefits provided to me are excellent & comparable with any reputed PSU.
  79. 79. 13) Services rendered by the corporation nominated hospitals/nursing homes are prompt and efficient. 14) Conveyance loan and reimbursement policies are comparable with other oil companies. 15) I am satisfied with the facility of superannuation benefit fund scheme. 16) Facilities in company’s quarters are good. 17) My present skills are enough to carry out the job effectively and efficiently. 18) Communication between inter & intra department is good. 19) My job makes the best use of my abilities and skills.
  80. 80. 20) Self appraisal system allows me to identify my weakness, strength and aspiration. 21) Compensation for injury by accident while on duty is good in comparison to other organization. 22) I am satisfied by the policy of promotion. 23) I am satisfied by the house rent allowances/self-lease policy of the organization. 24) Training programmes help me in achieving the goals, I have set for myself. 25) I am satisfied by the policies of IOCL, which have taken for the welfare of the employees. Any other suggestion/s or comment

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