CORPORATE

SOCIAL
RESPONSIBILITY

OIL AND NATURAL GAS

CORPORATION
LIMITED
(ONGC)
INDIAN ESSENCE, GLOBAL PRESENCE

1
Abstract:

This project aims to offer a preliminary case study exploration of the “Corporate
Social Responsibility” (CSR) issues being addressed and reported by Nikhil Limaye the
researcher.

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

contribute to sustainable economic development, working with employees, their families,
the local community and society at large to improve quality of life, in ways that are both
good for business and good for development.

Although the contemporary CSR agenda is maturing, the term “CSR” has not yet
taken hold within many public sector agencies, either in industrial or developing
countries. Few government initiatives have been undertaken explicitly as “pro-CSR
initiatives” but nonetheless many have contributed effectively to the promotion of greater
social responsibility.

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

to harness current enthusiasm for “CSR” alongside key public policy goals and priorities
to encourage delivery of results in both respects.

2
Acknowledgement:

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

this book and each of their contribution has been valuable. The timely completion of this
book is mainly due to the interest and persuasion of Prof. Elizabeth. We take this
opportunity to thank her for his guidance, support and the faith she has shown to us.

We would like to thank Prof. Nilesh Manore, Head and co-coordinator for his
valuable advice given time to time. We would also thank Teaching and Non-Teaching
staff of Computer Department for allowing us to use computers, internet and printers
whenever required.

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

Finally, it is only when one writes a book that one realizes the power of Microsoft
Word, from grammar checks to replace-alls. It is simple – without this software, this
book would not be written. Thank you Microsoft Corporation!

3
Executive Summary:

Page No.
Abstract 2
Acknowledgement 3
Executive Summary 4
Certificate of Approval 5
Chapter-1 Introduction to Oil and Gas Industry 6-9
Chapter-2 Introduction to Oil and Gas Corporation 10-29
Limited (ONGC)
Chapter-3 Introduction to CSR 30-34
Chapter-4 Introduction to the project 35-36
Chapter-5 Facts and Findings 37-62
Chapter-6 Analysis and Interpretation 63
Chapter-7 Conclusion and Recommendations 64-65
Bibliography 66

Certificate of Approval:
4
 This is to certify that Mr. Nikhil Limaye, Roll no -29, student of first semester,
under the course of Masters of Management Studies of Changu KanaThakur Institute of
Management Studies and Research, has successfully completed the term project titled
‘Corporate Social Responsibility’, under the guidance of Prof. Elizabeth Matthews, in
fulfillment of requirements of the MMS course.

Prof. Elizabeth Matthews Prof. Gadade

CKTIMSR
Director (CKTIMSR)

5
Chapter 1:
Introduction to the Industry

The oil and gas industry has been instrumental in fuelling the rapid growth of the
Indian economy. The petroleum and natural gas sector which includes transportation,
refining and marketing of petroleum products and gas constitutes over 15 per cent of the
country's gross domestic product (GDP).

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

the single largest foreign exchange earner, accounting for 11.5 per cent and 15 per cent of
the total exports in 2005-06 and 2006-07. The growth continues in the new fiscal with the
export of petroleum products touching US$ 20.03 billion during April-December 2007.

However, India's domestic demand for oil and gas is also on the rise. As per the
Ministry of Petroleum, demand for oil and gas is likely to increase from 176.40 million
tones of oil equivalent (mmtoe) in 2007-08 to 233.58 mmtoe in 2011-12.

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

commercial energy consumption (including coal, oil and gas) was 423 mmtoe in 2006,
making it the fourth largest consumer in the world with a four per cent share of the global
primary commercial energy consumption. The primary commercial energy consumption
in India grew at a compound annual growth rate (CAGR) of 4.5 per cent during 1996-
2006, which is more than double the global CAGR during the same period. Of the total
primary commercial energy consumption in India, oil constitutes 28 per cent and natural
gas 8 per cent. Coal continues to be the dominant fuel accounting for 57 per cent of total
energy consumption.

Domestic production of crude oil has been increasing steadily. While production
grew by 5.6 per cent in 2006-07 to 33.98 million tons (MT) from 32.19 MT in 2005-06, it
has increased to 34.11 MT during 2007-08.

6
Global Refining Hub
India is emerging as the global hub for oil refining as it enjoys competitive cost
advantage, with capital costs lower by as much as 25 to 50 per cent over other Asian
countries.

Already, the fifth largest country in the world in terms of refining capacity (up from
19th in 1995), with a share of 3 per cent of the global capacity, India is likely to boost its
refining capacity by 45 per cent or 65.3 mtpa (million tons per annum) over the next five
years, according to a Deutsche Bank report. According to the report, Indian companies
plan to increase their refining capacity to 242 mtpa by 2011-12 from about 149 mtpa in
2007.

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

 The two public sector undertakings, GAIL (India) Ltd and Indian Oil Corporation
Ltd (IOCL), are looking at setting up a US$ 2.09 billion petrochemical plant at
Barauni, which would be of a minimum 3 lakhs tonnes capacity.

 ONGC plans to scale up its refining capacity up to 45.5 million tonnes by 2009-
10 from about 13 mtpa in 2006.

 Reliance Industries Ltd is constructing a new refinery in the Jamnagar SEZ with a
capacity of 29 mtpa, which will be operational shortly.

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

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

 Essar Oil plans to more than triple the capacity at its refinery at Vadinar to 34
mtpa from the current 10.5 mtpa at an investment of US$ 6 billion.

 Hindustan Petroleum Corporation plans to invest US$ 2.5 billion in expanding its
Visakhapatnam refinery capacity to 16 million tonnes.

In fact, Reliance's new refinery (which will be the world's only full-export-oriented
refinery) will be the world's sixth-largest. And with the existing refinery of RIL, the
combined capacity (RPL along with RIL) will turn the Jamnagar complex into the world's
largest single-location refinery.

7
Retail Sector
The surge in automobile sales has led to significant investments being made to
develop and expand the petroleum retail market. According to US-based consultancy
Keystone, automobile sales which number about a million vehicles is likely to grow to
about 20 million a year by 2030, making India, the third largest automobile market in the
world.

Consequently, many companies have stepped up investments to expand their

retail network. For example, Indian Oil Corporation (IOC), Bharat Petroleum
Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) together are planning
to open over 3,000 retail outlets this financial year as against 2,000 outlets opened last
year. Similarly, Reliance plans to build 6,000 services stations.

Gas
Gas demand in India is dominated by the power and fertilizer sectors which
account for 66 per cent of the current consumption. In 2006, the total gas demand was
estimated to be 152 million standard cubic metres per day (MMSCMD). The gas demand
is projected to grow at a CAGR of 8.6 per cent during 2007-08 to 2016-17 to reach a
level of 320 mmscmd, which is more than double the existing demand, according to a
report by Ernst & Young titled 'Indian Natural Gas Sector'. Significantly, the share of
natural gas in the overall fuel mix is expected to increase from 8 per cent in 2006 to 20
per cent by 2025.

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

laying pipelines in the domestic market to supply gas to the consumers. For example,
Gujarat State Petronet Ltd plans to connect all 25 districts of the state with 2,200-
kilometre high pressure gas pipeline laid down across the state. Reliance Industries plans
to invest between US$ 5.45 billion to US$ 6.54 billion over the next three years to lay a
10,000 km pipeline grid that covers main gas transport trunk lines supplemented by spur
lines crisscrossing the country.

8
Government Initiatives

The government has been taking many progressive measures to create conducive
policy and regulatory framework to attract investments into this industry.

 The Petroleum and Natural Gas Regulatory Board Bill, 2005 was passed by the
Parliament in 2006. The bill envisages setting up of an independent regulatory
mechanism with the objective of regulating the refining, processing, storage,
transportation, distribution, marketing and sale of petroleum production and
natural gas.

 Allowing 100 per cent FDI in private refineries through automatic route and 26
per cent in government-owned refineries.

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

 Abolition of the administered pricing policy.

 100 per cent FDI is also allowed in petroleum products, exploration, gas pipelines
and marketing/retail through the automatic route.

The first mega oil, chemical and petrochemical investment hub is slated to come up at
Andhra Pradesh, and is expected to attract a whopping investment of US$ 86 billion.
Mittal Energy Investments, Total SA of France and oil refining and marketing major,
Hindustan Petroleum Corp (HPCL), along with Oil and Natural Gas Corporation
(ONGC) are some of the companies making an investment in the proposed petroleum,
chemical and petrochemical investment region (PCPIR). A similar PCPIR is likely to
come up at Bharuch in Gujarat.

Road Ahead
An expanding economy with its concomitant increase in energy demand is likely
to throw open huge investment opportunities in the oil and gas industry. According to a
CII-KPMG report—"India Energy Inc. - Emerging Opportunities & Challenges"—India's
energy sector would provide investment avenues worth US$ 120 billion-150 billion over
the next five years.

9
Chapter 2:
Introduction to Oil and Natural Gas Corporation
Limited (ONGC)

Vision and Mission

ONGC’s vision and mission reflect ONGC’s commitment to Millennium

Development Goals by focusing on health, safety and environment and to enrich the
quality of community life. Further, ONGC is aligned to imbibe high standards of business
ethics and organisational values, foster a culture of trust, openness and mutual concern to
make working a stimulating and challenging experience for ONGCians and strive for
value addition for all its stakeholders. ONGC believes in action and strives to deliver the
desired results under the following principles of Global Compact.

 Business should support and respect the protection of internationally

proclaimed human rights.
 Business should ensure that they are not complicit in human rights abuses.
 Business should uphold the freedom of association and the effective
recognition of the right to collective bargaining.
 Business should support the elimination of all forms of forced and compulsory
labour.
 Business should support the effective abolition of child labour.
 Business should support the elimination of discrimination in respect of
employment and occupation.
 Business should support a precautionary approach to environmental
challenges.
 Business should undertake initiatives to promote greater environmental
responsibility.
 Business should encourage the development and diffusion of environmentally
friendly technologies.

10
  Business should work against corruption in all its forms, including extortion
and bribery.

About the company:

Keshava Deva Malaviya- realised the importance of an indigenous petroleum

industry in India and laid the foundation of ONGC in august 1956. the scientists and the
engineers of ONGC, fuelled by his pioneering spirit, have made ONGC the Numero Uno
Exploration and Production Company of Asia today.

The corporate history of ONGC began in 1956, with the mandate for exploration
and production (E&P) of hydrocarbons in India. Over the past 45 years, ONGC has
discovered nearly six billion tonnes of Oil and Gas reserves in India. The Corporation is
now implementing a Strategic Plan to double the reserve-base in the next 20 years.
Simultaneously, major investments are being undertaken to improve recovery from the
producing fields, and to bring additional reservoirs into accelerated production. A major
campaign for deep-water exploration has been initiated.

Awarded Asia's Best Oil and Gas Company, Oil and Natural Gas Corporation
Limited is seen as the flagship for oil and gas companies (public sector) in India. Its
competitive strength lies in Strong intellectual property base, information, knowledge,
and skilled and experienced human resource base.

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

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

 ONGC has the distinction of having paid the highest-ever dividend in the Indian
corporate history.

 ONGC has 5 regional offices across India and two plants.

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

 ONGC has an experienced and professional human resource base of more than
40,000 employees.

11
  Apart from the quarterly and other job incentives, ONGC has successfully
incorporated various Reward and Recognition Schemes, Grievance Handling
Scheme and Suggestion Scheme.

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

 ONGC believes in participative culture and open communication.

ONGC is one of the pioneers of offshore and onshore drilling in India and is now
looking forward towards expansion in deepwater exploration and drilling and other allied
areas of service sector.

ONGC-Videsh Ltd. (OVL), a wholly owned subsidiary of ONGC, has been making
significant strides in acquisition of equity Oil & Gas abroad. The gas property in
Vietnam, with 45% participation by OVL, is due to go on stream this year. Development
of facilities in the Sakhalin-I Oil & Gas Field (OVL's participating interest is 20%) is
progressing well; the first delivery of crude is scheduled in 2005, followed by gas in
2007. OVL is currently engaged in several other trans-national negotiations for
exploration assets as well as discovered fields.

The grant of Marketing Rights and the acquisition of MRPL are major steps in
transforming ONGC, the upstream leader, into an integrated Oil and Gas Corporate.

12
Background and History

1947 - 1960

During the pre-independence period, the Assam Oil Company in the northeastern
and Attock Oil company in northwestern part of the undivided India were the only oil
companies producing oil in the country, with minimal exploration input. The major part
of Indian sedimentary basins was deemed to be unfit for development of oil and gas
resources.

After independence, the national Government realized the importance oil and gas
for rapid industrial development and its strategic role in defense. Consequently, while
framing the Industrial Policy Statement of 1948, the development of petroleum industry
in the country was considered to be of utmost necessity.

Until 1955, private oil companies mainly carried out exploration of hydrocarbon
resources of India. In Assam, the Assam Oil Company was producing oil at Digboi
(discovered in 1889) and the Oil India Ltd. (a 50% joint venture between Government of
India and Burma Oil Company) was engaged in developing two newly discovered large
fields Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum
project (a joint venture between Government of India and Standard Vacuum Oil
Company of USA) was engaged in exploration work. The vast sedimentary tract in other
parts of India and adjoining offshore remained largely unexplored.

In 1955, Government of India decided to develop the oil and natural gas resources in the
various regions of the country as part of the Public Sector development. With this
objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a
subordinate office under the then Ministry of Natural Resources and Scientific Research.
The department was constituted with a nucleus of geoscientists from the Geological
survey of India.

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

Natural Resources, visited several European countries to study the status of oil industry in
13
those countries and to facilitate the training of Indian professionals for exploring potential
oil and gas reserves. Foreign experts from USA, West Germany, Romania and erstwhile
U.S.S.R visited India and helped the government with their expertise. Finally, the visiting
Soviet experts drew up a detailed plan for geological and geophysical surveys and
drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61).

In April 1956, the Government of India adopted the Industrial Policy Resolution,
which placed mineral oil industry among the schedule 'A' industries, the future
development of which was to be the sole and exclusive responsibility of the state.

Soon, after the formation of the Oil and Natural Gas Directorate, it became
apparent that it would not be possible for the Directorate with its limited financial and
administrative powers as subordinate office of the Government, to function efficiently.
So in August, 1956, the Directorate was raised to the status of a commission with
enhanced powers, although it continued to be under the government. In October 1959, the
Commission was converted into a statutory body by an act of the Indian Parliament,
which enhanced powers of the commission further. The main functions of the Oil and
Natural Gas Commission subject to the provisions of the Act, were "to plan, promote,
organize and implement programmes for development of Petroleum Resources and the
production and sale of petroleum and petroleum products produced by it, and to perform
such other functions as the Central Government may, from time to time, assign to it ".
The act further outlined the activities and steps to be taken by ONGC in fulfilling its

mandate.

1961 - 1990

Since its inception, ONGC has been instrumental in transforming the country's
limited upstream sector into a large viable playing field, with its activities spread
throughout India and significantly in overseas territories. In the inland areas, ONGC not
only found new resources in Assam but also established new oil province in Cambay
basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt and
East coast basins (both inland and offshore).

14
 ONGC went offshore in early 70's and discovered a giant oil field in the form of
Bombay High, now known as Mumbai High. This discovery, along with subsequent
discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the
country. Subsequently, over 5 billion tonnes of hydrocarbons, which were present in the
country, were discovered. The most important contribution of ONGC, however, is its
self-reliance and development of core competence in E&P activities at a globally
competitive level.

After 1990

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

1991, sought to deregulate and de-license the core sectors (including petroleum sector)
with partial disinvestments of government equity in Public Sector Undertakings and other
measures. As a consequence thereof, ONGC was re-organized as a limited Company
under the Company's Act, 1956 in February 1994. After the conversion of business of the
erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corporation
Limited in 1993, the Government disinvested 2 per cent of its shares through competitive
bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering
shares to its employees.

During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant
and Gas Authority of India Limited (GAIL) - the only gas marketing company, agreed to
have cross holding in each other's stock. This paved the way for long-term strategic
alliances both for the domestic and overseas business opportunities in the energy value
chain, amongst themselves. Consequent to this the Government sold off 10 per cent of its
share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government
holding in ONGC came down to 84.11 per cent.

In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC
diversified into the downstream sector. ONGC will soon be entering into the retailing
business. ONGC has also entered the global field through its subsidiary, ONGC Videsh

15
Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and
earned its first hydrocarbon revenue from its investment in Vietnam.

SHAREHOLDING PATTERN

Shareholding Distribution As On Quarter Ending September 30, 2008

October 17, 2008

DETAILS OF PERSONS/ENTITIES HOLDING 1% OR MORE

SHARES AS ON SEPTEMBER 30, 2008

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

President of India 1,585,740,673 74.14 Indian Promoter
Indian Oil Corporation
164,480,857 7.69 Other Govt. Company
Ltd.
Gas Authority of India
51,400,267 2.40 Other Govt. Company
Ltd.
Life Insurance
52,084,647 2.44 Insurance Company
Corporation of India

DISTRIBUTION OF SHAREHOLDING AS ON QUARTER ENDING

SEPTEMBER 30, 2008
Percentage of
Category No. of Shares
Shareholding
A. Promoter’s Holding
1. Promoters
- Indian Promoters 1,585,740,673 74.14
- Foreign Promoters NIL --
- Persons Acting in Concert NIL --
Sub Total 1,585,740,673 74.14
B. Non-Promoters Holding
2. Institutional Investors
a. Mutual Funds and UTI 39,304,432 1.84
b. Banks, Financial Institutions, Insurance 88,955,054 4.16
Companies (Central / State Govt. Instts. /

16
Non-Govt. Institutions)
c. FIIs 136,708,977 6.39

Sub Total 264,968,463 12.39

3. Others
a. Private Corporate Bodies 246,672,985 11.54
b. Indian Public 39,204,321 1.84
c. NRIs/OCBs/Clearing Members 2,286,088 0.10
Sub Total 288,163,394 13.47

Grand Total 2,138,872,530 100.00

17
18
Global Ranking

 ONGC ranks as the Numero Uno Oil & Gas Exploration & Production (E&P)
Company in Asia, as per Platts 250 Global Energy Companies List for the year
2007.

 ONGC ranks 23rd Leading Global Energy Major amongst the “Top 250 Energy
Majors of the World in the Platt’s List” based on outstanding performance in
respect of Assets, Revenues, Profits and Return on Invested Capital (RIOC) for
the year 2007.

 ONGC is the only Company from India in the Fortune Magazine’s list of the
World’s Most Admired Companies 2007.

 ONGC is 9th position in the Industry of Mining, crude oil production. ONGC
ranks 239th position in the prestigious Forbes Global 2000 and Numero Uno
ranking amongst Indian Companies.

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

 ONGC retains “Numero Uno” position from India in terms of Profits with overall
global ranking of 121st.ONGC ranks 21st among the top 50 publicly traded
Companies in Oil & Gas Industry, based on the year-end (2007) market
Capitalization by PFC Energy.

Represents India’s Energy Security

ONGC has single-handedly scripted India’s hydrocarbon saga by:

19
  Establishing 6.42 billion tonnes of In-place hydrocarbon reserves with more than
300 discoveries of oil and gas;

 In fact, 6 out of the 7 producing basins have been discovered by ONGC: out of
these In-place hydrocarbons in domestic acreages, Ultimate Reserves are 2.29
Billion Metric tonnes (BMT) of Oil Plus Oil Equivalent Gas (O+OEG).
Cumulatively producing 762.3 Million Metric Tonnes (MMT) of crude and 440.7
Billion Cubic Meters (BCM) of Natural Gas, from 115 fields.

India’s Most Valuable Company

 “Biggest Wealth Creator Award” for the period 2000-2006 instituted by M/s
Motilal Oswal Securities Ltd., third time in a row.

 Ranked as the most respected Company in PSU Category in the 2006 Business
World Survey, with 13th position in the league of the most respected Indian
Corporate. Tops the Business India Super 100 list (among 284 Indian Companies
having Sales in excess of Rs. 500 Crore), based on Sales, Profit After Tax (PAT),
Net Fixed Assets and Market Capitalization (Dec 2006).

 Topped the visibility metrics in Indian Oil and Gas Sector and the only PSU in the
top 10 list of Indian Corporate newsmakers. Moody’s Investor Services awarded
the highest-ever Credit Rating for an Indian Corporate – Baa1 (indicative Foreign
Currency debt rating). CRISIL and ICRA also reaffirmed ONGC the highest
credit rating of AAA and LAAA respectively.

Pioneering Efforts

ONGC is the only fully–integrated petroleum company in India, operating along

the entire hydrocarbon value chain:

20
  Holds largest share of hydrocarbon acreages in India. Contributes over 78
percent of Indian’s oil and gas production.

 About one tenth of Indian refining capacity.

 Created a record of sorts by turning Mangalore Refinery and Petrochemicals

Limited around from being a stretcher case for referral to BIFR to the BSE
Top 30, within a year. Interests in LNG and product transportation business.

Competitive Strength

 All crudes are sweet and most (76%) are light, with sulphur percentage ranging
from 0.02-0.10, API gravity range 26°-46° and hence attract a premium in the market.
Strong intellectual property base, information, knowledge, skills and experience.

 Maximum number of Exploration Licenses, including competitive NELP rounds.

 ONGC owns and operates more than 15000 kilometers of pipelines in India,
including nearly 3800 kilometers of sub-sea pipelines.

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

Strategic Vision: 2001-2020

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

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

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

 Tie-up 20 MMTPA of equity Hydrocarbon from abroad.

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

21
Sourcing Equity Oil Abroad
ONGC’s overseas arm ONGC Videsh Limited (OVL), has laid strong foothold in
a number of lucrative acreages, some of them against stiff competition from international
oil majors.

OVL’s projects are spread out in Vietnam, Russia, Sudan, Iraq, Iran, Libya,
Myanmar, Syria, Qatar, Egypt, Cuba, Nigeria Sao Tome Principe, Brazil, Nigeria and
Columbia. It is further pursuing Oil and gas exploration blocks in various oil and gas rich
countries.

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

which 6 Projects were acquired through participation in bidding rounds and 3
from the existing concession holders.

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

2006 and peak production of 250,000 bopd was achieved in March 2007.Crude
Oil production from Block 5A in Sudan commenced in May 2006.

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

Consortium of North Ramadan Block in Egypt made Oil discovery.

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

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

Operator in 2 Projects in 9 Countries.

 OVL’s share in production of oil and oil-equivalent gas (O+OEG), together with
its wholly owned subsidiaries ONGC Nile Ganga BV and ONGC Amazon
Alaknanda Ltd, is 7.952 MMT.ONGC’s strategic objective of sourcing 20 million
tonnes of equity oil abroad per year is likely to be fulfilled well before 2020.

22
 Frontiers of Technology

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

 Uses one of the Top Ten Virtual Reality Interpretation facilities in the world.
Alliances with Transocean, Schlumberger, Halliburton and Baker Hughes, IPR,
Petro bras, Norsk, ENI, Shell.
 One of the biggest ERP implementations in the Asia

Best in Class Infrastructure and Facilities

 ONGC’s success rate is at par with the global norm and is elevating its
operations to the best in class level, with the modernization of its fleet of
drilling rigs and related equipment.

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

expansion and integration of all Info-com systems.

Onshore
 Production Installations: - 240

 Pipeline Network (km) :- 15,800

 Drilling Rigs :- 70

 Work Over rigs :- 74

 Seismic Units :- 29

 Logging Units :- 32

 Engineering Workshops :- 2

23
  Virtual Reality Centre :- 5

 Regional Computer Centre :- 5

Offshore

 Well Platforms: - 147

 Well-cum-Process Platforms :- 32

 Process Platforms :- 13

 Drilling Rigs :- 29

 Pipeline Networks (km) :- 4,500

 Offshore Supply Vessels :- 55

 Special Application Vessels :- 4 (including 2 MSV)

 Seismic Vessels :- 1

The Road Ahead

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

 New Discoveries and fast track development

 Equity Oil from Abroad

 Downstream Value Additions & Forward Integration

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

 New Sources of Energy

 Production from small and marginal fields.

ONGC GROUP COMPANIES

24
 The ONGC Group of Companies comprises of –
1. ONGC Videsh Limited (OVL): OVL is the wholly own subsidiary of
ONGC which has been mandated to carry out international E&P
business operations of the parent company.

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

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

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

subsidiary
of ONGC Videsh Limited which, in turn, is 100% owned by ONGC.
The
company was incorporated in Netherlands and has 25% participating
interest in the Greater Nile Oil Project in Sudan producing crude oil from
on-shore blocks earmarked for the purpose.

4. ONGC Mittal Energy Limted (OMEL): This is the joint venture

between ONGC Videsh Limited and Mittal Investments Sarl in the ratio
of 49.98% : 48.02% with SBI Capital holding the remaining 2%. This
joint venture aims to source equity oil and gas from abroad for securing
India’s energy independence.

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

venture between ONGC Videsh Limited and Mittal Investments Sarl
with the same ownership structure as that of OMEL. This joint venture
will be involved in trading and shipping of oil and gas (including LNG)
sourced by OMEL from abroad.

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

embarked upon a project for generation of power with 750 MW gas
based closed-cycle power plant. The project is being developed by a
SPV between IL&FS, Government of Tripura and ONGC with an equity
share of 50%, 24% and 26% respectively. The project is estimated to
cost around Rs 3800 Crores and is expected to be commissioned during
the first quarter of 2008.

7. Kakinada Refinery & Petrochemicals Limited (KRPL): This is a

public private joint venture company formed pursuant to an MOU
between MRPL, Kakinada Seaport Limited(KSPL), IL&FS and AP
Government, to set up an export-oriented refinery of 7.5 MMTPA
capacity at Kakinada in coastal Andhra Pradesh which is envisaged to be
integrated with bio-diesel facility.

25
8. Kakinada SEZ Limited: In tune with the recent initiatives of Ministry
of Commerce and Industry, Govt.of India, for declaring Special
Economic Zones (SEZs) to boos industrial growth in the country,
ONGC/MRPL has become co-promotor under public-private partnership
to form this joint venture company and it is envistaged that KRPL and
other gas infrastructure units will be located within the Kakinada SEZ to
liverage financial initiatives and to bolster economic growth.

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

MRPL, large petroleum and petrochemicals based projects are envisaged
to be developed at Mangalore. With view to optimizing the capital cost
during the construction of the project and subsequently promoting sale
of
petrochemical intermediates, a decision was taken to associate with a
special economic zone (SEZ) Contemplated for development at
Mangalore. The SEZ will be an SPV with Karnataka Industrial Areas
Development Board (KIEDB), Karnataka Chambers of Commerce and
Industry (KCCL) and ONGC between them bringing in 49% equity with
ONGC contributing 26%. IL & FS has offered to take the remaining
51% equity. This SPV is in the process of being incorporated.

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

. Gujarat has formed a joint venture company under public private
partnership to establish and develop necessary infrastructure facilities
within a land of 1740 hectares in cooperation with Gujarat Industrial
Development Corporation. ONGC is currently engaged in implementing
its C2-C3 extraction project, which will be located within this SEZ.

11 Rajasthan Refinery Limited (RRL): With the recent discovery of waxy

. oil in Mangla and other adjoining structure by Cairn Energy India, its
PSC partner in Rajashtan Block, MRPL has been nominated by Govt. of
India as its nominee for buying the crude oil to be produced from this
block. MRPL, in coordination with Cairn Energy, and as per due
facilitation by Rajasthan Govt., has proposed to form a joint venture
company named Rajasthan Refinery Limited (RRL), which will examine
the techno-economic viability of establishing a well-head refinery of 7.5
MMPPA Capacity and if found feasible will implement the same at a
suitable location in Rajasthan.

26
 Financial Statements:

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

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

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 1,425.93 1,425.93 1,425.93 2,138.89 2,138.89
Equity Share Capital 1,425.93 1,425.93 1,425.93 2,138.89 2,138.89
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 39,117.17 45,419.49 52,533.74 59,785.04 68,478.51
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net worth 40,543.10 46,845.42 53,959.67 61,923.93 70,617.40
Secured Loans 0.00 0.00 0.00 0.00 0.00
Unsecured Loans 11,407.79 9,916.22 12,722.61 15,109.07 12,482.71
Total Debt 11,407.79 9,916.22 12,722.61 15,109.07 12,482.71
Total Liabilities 51,950.89 56,761.64 66,682.28 77,033.00 83,100.11
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 41,007.62 42,983.85 47,882.35 52,038.07 57,463.78
Less: Accum. Depreciation 35,339.16 37,147.32 40,040.15 43,198.95 46,945.77
Net Block 5,668.46 5,836.53 7,842.20 8,839.12 10,518.01
Capital Work in Progress 25,184.99 28,838.35 33,373.92 37,794.16 41,154.63
Investments 4,421.67 4,036.67 4,888.57 5,702.05 5,899.50
Inventories 2,405.69 2,569.19 3,038.49 3,033.76 3,480.64
Sundry Debtors 2,317.80 3,729.31 3,704.28 2,759.44 4,360.37
Cash and Bank Balance 15.34 20.88 699.80 27.42 22,417.66
Total Current Assets 4,738.83 6,319.38 7,442.57 5,820.62 30,258.67
Loans and Advances 17,187.69 39,574.73 52,293.83 58,710.79 19,574.48
Fixed Deposits 8,726.30 9,445.98 8,113.02 19,253.37 0.00
Total CA, Loans & Advances 30,652.82 55,340.09 67,849.42 83,784.78 49,833.15
Deferred Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 12,007.45 13,249.06 16,515.78 19,835.99 18,285.94
Provisions 2,510.28 24,572.10 31,122.39 39,765.20 6,693.13
Total CL & Provisions 14,517.73 37,821.16 47,638.17 59,601.19 24,979.07

27
Net Current Assets 16,135.09 17,518.93 20,211.25 24,183.59 24,854.08
Miscellaneous Expenses 540.68 531.16 366.34 514.06 673.90
51,950.8
Total Assets 56,761.64 66,682.28 77,032.98 83,100.12
9

Contingent Liabilities 22,456.31 26,593.45 32,907.71 34,157.17 26,006.73

Book Value (Rs) 284.33 328.52 378.42 289.52 330.16

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

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

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

Other Income 1,547.08 1,729.79 2,354.99 4,243.10 5,010.66
Total Income 33,611.01 48,092.73 50,277.86 60,875.91 64,859.18
Total Expenses 14,383.36 22,187.86 20,577.02 28,159.82 29,767.69
Operating Profit 17,680.57 24,175.08 27,345.85 28,472.99 30,080.83
Profit On Sale Of Assets -- -- -- -- --
Profit On Sale Of Investments -- -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- -- --
VRS Adjustment -- -- -- --
Other Extraordinary
-- -- -- -- --
Income/Expenses
Total Extraordinary
-- -- 640.54 475.06 --
Income/Expenses
Tax On Extraordinary Items -- -- -- -- --
Net Extra Ordinary
-- -- -- -- --
Income/Expenses
Gross Profit 19,227.65 25,904.87 29,700.84 32,716.09 35,091.49
Interest 46.75 37.71 46.97 21.50 58.98
PBDT 19,180.90 25,867.16 30,294.41 33,169.65 35,032.51
Depreciation 5,571.86 6,201.61 8,457.28 9,499.44 9,797.92
Depreciation On Revaluation Of
-- -- -- -- --
Assets
PBT 13,609.04 19,665.55 21,837.13 23,670.21 25,234.59
Tax 4,958.77 6,685.12 7,313.74 8,027.29 8,920.05
Net Profit 8,650.27 12,980.43 14,523.39 15,642.92 16,314.54
Prior Years Income/Expenses 14.16 -2.62 -92.61 -- 387.11
Depreciation for Previous Years
-- -- -- -- --
Written Back/ Provided
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per Share 60.66 91.03 101.85 73.14 76.28

28
Book Value -- -- -- -- --
Equity 1,425.93 1,425.93 1,425.93 2,138.87 2,138.87
Reserves 38,326.49 44,638.32 51,917.40 59,020.98 67,554.61
Face Value 10.00 10.00 10.00 10.00 10.00

Competition

Last Price Market Cap. Sales Net Profit Total

(Rs. cr.) Turnover Assets
ONGC 661.85 141,561.28 59,848.52 16,314.54 83,100.12
Cairn India 134.80 25,536.91 1.27 -78.82 29,373.49
GAIL 197.20 25,014.37 18,008.20 2,601.46 14,270.75
Reliance Natural 40.70 6,646.84 202.79 68.60 2,933.91
Aban Offshore 640.35 2,420.67 658.42 157.90 2,469.22
Hind Oil Explore 57.85 754.90 83.35 24.10 1,155.38
Jindal Drilling 240.00 550.35 413.23 18.99 276.53
Shiv Vani Oil 125.00 548.85 272.26 38.39 1,387.02
Selan Explore 126.60 182.51 34.46 13.10 71.33
Dolphin Offshore 125.20 119.75 227.71 16.26 232.91

29
Chapter 3

Introduction to Corporate Social Responsibility

Definitions of social responsibility

Corporate social responsibility (CSR) is:

 An obligation, beyond that required by the law and economics, for a firm
to pursue long term goals that are good for society

 The continuing commitment by business to behave ethically and

contribute to economic development while improving the quality of life of
the workforce and their families as well as that of the local community and
society at large

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

positive impact on society

Corporate social responsibility means:

 Conducting business in an ethical way and in the interests of the wider
community.

 Responding positively to emerging societal priorities and expectations

 A willingness to act ahead of regulatory confrontation

 Balancing shareholder interests against the interests of the wider community

 Being a good citizen in the community

30
Is CSR the same as business ethics?
 There is clearly an overlap between CSR and business ethics

 Both concepts concern values, objectives and decision based on something than
the pursuit of profits

 And socially responsible firms must act ethically

The difference is that ethics concern individual actions which can be assessed as right
or wrong by reference to moral principles. CSR is about the organisation’s obligations to
all stakeholders – and not just shareholders.

There are four dimensions of corporate responsibility

 Economic - responsibility to earn profit for owners

 Legal - responsibility to comply with the law (society’s codification of right and
wrong)

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

 Voluntary and philanthropic - promoting human welfare and goodwill

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

The debate on social responsibility:

Not all business organisations behave in a socially responsible manner
And there are people who would argue that it is not the job of business organisations to
be concerned about social issues and problems

There are two schools of thought on this issue:

 In the free market view, the job of business is to create wealth with the interests of
the shareholders as the guiding principle

 The corporate social responsibility view is that business organisation should be

concerned with social issues

31
Free market view - a summary
 The role of business is to create wealth by providing goods and services

 “There is one and only one social responsibility of business- to use its resources
and engage in activities designed to increase its profit so long as it stays will the
rules of the game, which is to say, engages in open and free competition, without
deception or fraud.” [Milton Friedman, American economist]

 Giving money away is like a self imposed tax

 Managers who have been put in charge of a business have no right to give away
the money of the owners

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

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

 Improvements in health and longevity have been made possible by economies

driven by the free market

 To attract quality workers it is necessary to offer better pay and conditions and
this leads to a rise in standards of living and wealth creation

 Free markets contribute to the effective management of scarce resources

 It is true that at times the market fails and therefore some regulation is necessary
to redress the balance

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

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

creates barrier to market entry

The free market case against corporate social responsibility

 The only social responsibility of business is to create shareholder wealth

 The efficient use of resources will be reduced if businesses are restricted in how
they can produce

 The pursuit of social goals dilutes businesses’ primary purpose

 Corporate management cannot decide what is in the social interest

32
  Costs will be passed on to consumers

 It reduces economic efficiency and profit

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

shareholders – and not for other stakeholders

 CSR behaviour imposes additional costs which reduce competitiveness

 CSR places unwelcome responsibilities on businesses rather than on government

or individuals

The corporate responsibility view

 Businesses do not have an unquestioned right to operate in society

 Those managing business should recognise that they depend on society

 Business relies on inputs from society and on socially created institutions

 There is a social contract between business and society involving mutual

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

Stakeholder theory
The basic premise is that business organisations have responsibility to various groups in
society (the internal and external stakeholders) and not just the owners/ shareholders

The responsibility includes a responsibility for the natural environment

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

Arguments for socially-responsible behaviour

 It is the ethical thing to do

 It improves the firm’ public image

 It is necessary in order to avoid excessive regulation

 Socially responsible actions can be profitable

 Improved social environment will be beneficial to the firm

 It will be attractive to some investors

33
  It can increase employee motivation

 It helps to corrects social problems caused by business

Enlightened self interest

This is the practice of acting in a way that is costly and/or inconvenient at present
but which is believed to be in one’s best long term interests.

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

Robert Owens’s New Lanark Mills, Titus Salt’s Saltaire as well the work of the Quaker
chocolate makers such as Cadbury at Bournville and Rowntree in York.

Enlightened self interest is summed up in this quotation from Anita Roddick (founder of
the Body Shop):“Being good is good for business”

CSR behaviour can benefit the firm in several ways

 It aids the attraction and retention of staff

 It attracts green and ethical investment

 It attracts ethically conscious customers

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

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

 It can lead to increased profitability in the long run

34
Chapter 4:

INTRODUCTION TO THE PROJECT

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

inherent to current models of corporate social responsibility, the program will push the
frontiers of the field and bring into focus the next generation of issues facing
practitioners.

Role of Public sector

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

 CSR activities are generally carried more by the Public Sector Enterprises in
comparison with the private sector.

 Public Sector Enterprises are more inclined towards social benefits rather than
making profits.

 Understand the effects of strategic corporate social responsibility—its benefits

and its costs

 Drive corporate social responsibility throughout the organization, integrating it

with corporate strategy, decision making, and risk assessment.

35
 Realign corporate culture with corporate social responsibility strategies.

 Understand the political context of operations, and successfully interact and

communicate with governments, NGOs, and key stakeholders.

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

 Identify and explore the most critical emerging issues facing the field of corporate
social responsibility in the next decade.

36
CHAPTER 5:

FACTS AND FINDINGS

 Reviving Heritage Craft Industries

 Project “Laadli”
 Village Level Enterprises
 Enlistment of Tribal Areas
 ONGC Cauvery Asset Programme
 Rotary Club Initiatives
 Health Care
 Supporting Entrepreneurship Projects
 Education
 Relief Fund Packages
 Environment Protection Programmes
 Safety Programmes
 Sports
 Others

37
Reviving Heritage Craft Industries

ONGC, Chennai invited a proposal for supporting an Entrepreneurship

project from District Collector, Tiruvarur. He proposed that ONGC can provide
support to the Kurinji Women Self Help Group, Panayur Panchayat, Kottur Block,
Tiruvarur District, and Tamil Nadu. This SHG produces Coir from the locally
available coconut Fibres and marketing. Need Assessment for this initiative was
done. The area in which the project was to be undertaken was a remote backward
rural area. Most of the people were living below the poverty line. ONGC analysed
the feasibility of the project. It was observed that the raw materials required for the
coir industry were available from coconut trees in and around this area, and also,
60% of the products manufactured through this industry could be consumed locally
since there are good number of huts and cattle in this area. The women of this area
were unstintingly industrious to improve their standard of living; this was evident
from their objective of forming Self Help Group (SHG).
ONGC.s Support

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

In the year 2004, ONGC came across a proposal from Commissioner, Handloom,
Madhya Pradesh seeking financial support for preserving the dying art of Chanderi
handloom, at Chanderi. Chanderi is a small town bordering Madhya Pradesh and Uttar
Pradesh on the banks of Betwa River. Chanderi has a population of around 30,000. With
about 3,500 looms actively working, almost 60% of this population is directly or

38
indirectly dependent on the handloom business. Others make beedis (local cigarettes
using tobacco leaf) and earn dismally low wages. Chanderi textiles were patronized
initially by the Mughals in the 7th century AD. The elegance of the soft Chanderi colours
lies in their constant reference to nature. The magic is in warp and weft - taana and baana.
The silk yarn is largely imported Chinese or Korean; the cottons procured from
Coimbatore and Jaipur. Weaving is performed by one or two skilled workers of the same
family. The looms are traditional pit looms with throw shuttle. Chanderi brocades have
been the pride of Indian craft and are much appreciated within India and the world over.
The delicate fabric with intricate ethnic motifs, hand woven into the material are
available in a variety of items like saris, dress material, ladies stoles, table cloths, cushion
covers and table napkins. Objective of the project: Invasion of the business by
exploitative traders created a huge economic gap between the weavers and traders. The
weavers lacked the resources to buy and store raw material, create and circulate samples
of products besides lacking know-how about designing and market opportunities. Few
contemporary designers worked on the fabric and Chanderi lost out as a fabric for the
fashion conscious buyer. The weaving community also began to suffer as the traders and
moneylenders cornered all profits and paid very little wages. At their mercy, the weavers
were resigned to bondage. Details of selection of target population: Weavers faced
following constraints:
 Diminishing demand of the handloom products- Due to lack of designs which
were not very appealing and were very
 Stereotyped.
 Lack of marketing support
 Lack of guidance
 Lack of infrastructure
 Illiterate, innocent beneficiaries.
 Lack of institutional buyers
 Lack of new designs for the product
 Lack of product innovations
 Lack of modern manufacturing processes
 Quality of the product going down
 Lack of credit facilities(productive and consumptive)

39
  Seasonal nature of work
In this vulnerable time, 30 odd weavers came together to form Bunkar Vikas Sanstha
(BVS), a SHG under the aegis of United Nations Industrial Development Organisation.
Weavers now had their own organisation to address their problems on long term basis in
self sustainable manner. BVS was established in 2004 as an apex body of 13 Self Help
Groups of 119 weavers of Chanderi handloom with an objective of economic and social
empowerment of the weaver community. Implementation of the project: Considering the
request from BVS appeared doubtful for acceptance by ONGC, as the village Chanderi
does not come under ONGC.s operational area. However, on careful scrutiny, it was
observed that assisting a project focused on preserving Indian heritage and
mainstreaming the poor weavers (comprising of mainly poor women from minority
community) towards sustainable development would be an ideal CSR Initiative. This was
followed by market survey and other correspondences to ascertain the sustainability of
the project. It was learnt that the hand woven fabric was gradually a dying art as mill
woven textiles had swamped the market and needed support to become self-sustainable.
ONGC joined this fledgling movement with a corpus fund. The weavers used this much
needed money to buy raw material. The weavers were exposed to exhibitions and
traditional fairs. They were the new entrepreneurs. Armed with expertise, they created
modern elegant designs and marketed the heritage art innovatively. Pranpur, another
village in neighbourhood, with about 250 functional looms approached BVS to recreate
the success story of Chanderi. To take this initiative further, ONGC supported BVS once
again with seed money for the micro-finance activities. Today 60 Self Help Groups are
engaged in microfinance activities by practicing regular savings and inter-lending to
members. This was followed up with an support to BVS for purchasing a land to establish
an Dying and R&D Centre. Extent and role of the communities: Presently there are 3000
active looms in Chanderi and women play a substantial role in the production process.
This heritage craft provides employment to 18,000 inhabitants. The traditional
woodworker still makes the looms and repairs them. Preparatory work is carried out in
the narrowest lanes with the family members pitching in. Various Government agencies
both at State and Central Level are actively involved in protection of the trade at
Chanderi.

40
 With ONGC as their guide, BVS has begun its journey towards total empowerment.
ONGC has endeavoured to strengthen BVS as an institution and was also initiated a
brilliant concept of bulk purchasing of their produce as souvenir, gifts etc. for internal use
in ONGC.

Project “Laadli”

 ONGC launched project ‘Laadli’ along with Population First to create awareness
on ‘Save the Girl Child’ campaign. A panel discussion was held with eminent
cine artistes, doctors, social workers, lawyers and journalists. This generated
immense interest and volunteers came forward to take the campaign ahead.

 Weekly radio programs are now being broadcast on Asmita channel of All India
Radio, Mumbai conceptualized and developed by ONGC volunteers, A special
workshop ‘Prayas’ was held to launch the radio programme for ‘Laadli’.

Village Level Enterprises

 Construction of work sheds for Village Level Enterprises was another important
CSR activity by ONGC Western Offshore Unit, Mumbai. Project support was
provided to Trust for Village elf Governance at Kuthambakkam to convert locally
produced units into finished goods, The funds provided were utilized for sheds
for oil extraction, building materials such as Micro concrete roofing tiles, paving
blocks, energy efficient handlooms, stoves, lamps and dairy processing.

41
Enlistment of Tribal Areas

 In the tribal areas at Bastar, the thrust area of ONGC Western Offshore Unit,
Mumbai’s special CSR initiative was the eradication of sickle cell anemia and
nutrition of children. For this, it aligned with Bhartiya Kushtha Nivarak Sanstha
(BKNS), THE NGO formed by former ONGCians.

ONGC Cauvery Asset Programme

 The ONGC Cauvery Asset, Karaikal in Southern part of India organized Artificial
Limb Camp in the year 2006 in association with Rotary Club, Karaikal. The Base
Office of Cauvery Asset is situated in Karaikal, which falls in the Union Territory
of Puducherry. The nearest well-equipped Hospital is 300 Km away from
Karaikal. Due to poverty, the polio affected persons and accident victims are not
able to get artificial limbs.

Rotary Club Initiatives

 During last two years, the Rotary Club has carried out project named Roataplast
for corrective surgery for cleft lip palates. More than 100 patients per year are
getting benefits. Medical professionals and paramedical staff from United States
and other countries attended project. ONGC has supported this initiative during
last year, ONGC Mahila Samiti; the wives’ association of ONGC employees, in
association with Rotary Club of Karaikal conducted free Hearing Aid Camp in the
premises of ONGC. Hundreds of patients benefited out of this camp.

Health Care

42
 The Thalassemia Society of India. Kolkata, approached ONGC with a project for
providing equipment called Alisa Washer, which is used for carrying out various
pathological tests which are crucial for treatment of Thalassemia patients. The
project was taken up because Thalassemia, as we all know, is a dreaded genetic
blood disorder and is truly a social concern. Thalassemia affected patients,
particularly children, were beneficiaries. On an average about 1800 Thalassemia
affected patients will be benefited every year out of this one Alisa Washer.
Equipment provided by ONGC. Thalassemia affected patients, particularly
children, were the beneficiaries. The Thalassemia Society of India purchased and
installed the Alisa Washer instrument in the last week of January, 2008 and up to
20.03.2008, as per report received from them, about 300 blood samples of
Thalassemia affected patients mainly children have been tested. So on an average
about 1800 Thalassemia affected patients will be benefited every year out of this
one Alisa Washer equipment provided by ONGC. The Thalassemia Society of
India is located at Kolkata where all ONGC installations are presently located
including the Headquarters of CBMDP & MBA Basin. Doctors and experts from
the Society have made number of presentations and awareness campaign for the
employees of ONGC and their wards which is considered to be very helpful and
appreciated by one and all. CSR team also visited the Institute number of times
and found that the beneficiaries are mainly from the families of have-nots who
cannot afford expensive treatment of Thalassemia from private health institutions.
For poor people and slum dwellers of Kolkata, this Society is doing yeoman’s
service in the field of eradication of a disease, which is affecting large number of
people of the society. Working of this particular organization and also that of
some other similar organizations are being closely monitored by ONGC so that
the maximum benefit reaches the marginalised.

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

Dehradun to render service to the poorest of poor and needy. The retired
employees formed the Life Care Society an NGO meant for serving the under-
privileged by reaching out to the people in the hinterland of Uttarakhand. The
Society owes its birth to ONGC and weekly medical camps organized for the

43
 needy. Every village has been given a doctor, who is plying a very significant
role by treating patients with different kinds of ailments pertaining to eye, dental
and other chronic ailments. Pondha, Bansiwala, Karbari and Sherpur are some of
the villages where the Society is working pro-actively. ONGC has been very
supportive to Life Care Society since its inception. Not only does ONGC provide
financial aids but also the entire infrastructure of ONGC is made available to Life
Care Society.

Roorkee School for the Deaf

It is the first school for the deaf in India located on the campus of a hi-tech
institute. IIT Roorkee and managed by its faculty and experts. The school has an
excellent tam of highly qualified, trained and dedicated teachers. Some of whom
have been trained in the best of the training institutes in India and abroad. The school
for the Deaf is run and managed by IIT Roorkee. Mostly the faculty members of IIT
Roorkee are the members of the management committee and at the same time are
rendering their services voluntarily to run the school as a community supported
model wherein donations from individuals and organizations in both cash and kind
mainly to meet the expanses of the school. ONGC impressed and inspired by the
voluntary services of the faculty members decided to support this noble initiative of
IIT Roorkee by extending a grant. The school is trying to educate and trained the
deaf children of Roorkee and several other villages / town around Roorkee. They are
trying to train them in all the independent living skills which they require to lead a
normal health life. The school undertakes the following activities for the deaf:

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

Internet, TV/VCR, camera and associated software.

 Speech therapy in addition to the normal speech and auditory training equipment,
the school also has the latest computer aided speech development system.

 Research based model. Students and faculty of IIT actively undertake R&D
activities for the benefit of the deaf children such as development of assistive

44
 devices educational technology, teaching aids and software etc. ONGC extended
the support to create the infrastructure for a more useful learning environment on
scientific lines like installation of modern computers and accessories with the
requisite software.

Mobile Blood Donation Van

Support from ONGC has been sought for a fully equipped mobile blood donation
van with the purpose of the blood bank reaching the donors rather than donors going
towards them. Rotary Club in Delhi has set up a state-of-the-art voluntary blood bank
at a cost of Rs. 6.0 crores to provide safe blood to the needy people at a meagre
processing charge. The blood bank is housed in a five story centrally air conditioned
building providing nearly 55000 units of blood every year. The Rotary Club earlier
had a mobile van for blood donation and has been utilizing the existing van
extensively by organizing a number of blood donation camps. Till date more than
320 blood donation camps in and around Delhi have been organised. The present
vehicle, which was acquired six years ago has been rendered unserviceable, hence,
the request for a new vehicle has been received by ONGC. As ONGC focuses on
healthcare under its CSR, it has been supporting a number of hospitals, mobile vans,
primary health centres and medical camps. ONGC decided to collaborate with
Rotary, which is a reputed organization and they are rendering yeomen services to
the marginalized by providing the blood to the poor and needy at a meagre
processing charge. Hence, ONGC felt it appropriate to provide this equipped vehicle
for helping them to collect blood from various donor’s by reaching them directly at
their place of their stay.

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

mentally ill Road side destitute. Shraddha is a humane experiment, perhaps the
only one of its kind in India, providing treatment, custodial care and rehabilitation
to a neglected group of mentally-ill roadside destitute and reuniting them with
45
 their lost families. It is a combination approach that marries medication,
innovative psychosocial intervention and occupational engagement. ONGC has
supported this project by providing 100 beds to the mentally ill road-side destitute
so as to provide some comfort to these destitute along with a Diesel Generator for
use during power cuts. At present there are about 60-65 destitute in the
rehabilitation centre, it is understood that in the city of Mumbai there are around
500 such road-side destitute aimlessly roaming in the metropolis of Mumbai.
Such a project can help the society and the nation at large. Shraddha
Rehabilitation Foundation is an NGO dealing with the problem of the mentally ill
roadside destitute. ONGC has supported this project by providing 100 beds to the
mentally ill road-side destitute so as to provide some comforts to these destitute
along with Diesel Generator for use during power cuts.

 Health care being one of ONGC’s areas of concern, it has supported a major
initiative taken to fight cancer. Silchar, located in Southern part of Assam state
and surrounded by Mizoram, Tripura, parts of Manipur and Meghalaya in the
North Eastern Region of India has been also on the World map for its inhabitants
being susceptible to the dreaded disease cancer. The unfortunate people of this
region who get afflicted by cancer can hardly afford to avail the treatment at
Delhi, Mumbai, Vellore and other metro cities of the country. In the light of
above problems, a group of social activists drawn from diverse professions
formed the Cachar Cancer Hospital Society in 1992, and approached ONGC for
financial assistance for procurement and installations of CT Scan Machine in the
hospital.

 Dedicated to the mission of the restoring eye sight for the poor and the
marginalized, Anugraha Drishtidaan ha been offering its services regularly for the
last many years. The NGO is being generously supported by ONGC at all its
work Centres and nationally. In the year 2007-2008 eight number of camps have
been organized with a cumulative reach of 37565 OPD patients , distribution of
medicines to 23032 patients; distribution of spectacles, dark glasses to 12083
patients; identification of 5072 patients with cataract and cataract operations
(IOL) performed on 4152 patients.

46
 Work centers OPD Medicine Spectacles/glass Cataract cases Cataract
Attendance beneficiaries distribution indentified
Operations done
Assam 1096 891 89 108 89
Gujarat 929 369 691 122 94
Rajahmundry 1696 581 972 186 153
Karaikal 500 288 160 60 51

 During the year 2007-08, the ONGC Western Offshore Unit, Mumbai organized a
Mega Multidisciplinary Medical camp at Palghar. 2300 patients of fishermen
community availed benefit of the Camp. 102 cases of Cataract were detected and
operated, 300 persons were provided spectacles and 40 cases of anemia were
detected and supplements provided.

 A mega multi-disciplinary Medical Camp was held at Uran. In the free Medical Camp
organized at village Chanje Uran, 670 patients were examined and 69 cases treated for
cataract by 17 specialist doctors, 9 ONGC doctors and 15 paramedics who volunteered
services.

 A multidisciplinary medical camp was held at Bhatha village where Shri Satya Sai
Seva Samiti and ONGC volunteers rendered service to 360 patients, Eye checkups and
audiometer tests were conducted and medicines provided.

Swalvavlamban: Reach where needed

The ONGC Cauvery Asset, Karaikal in Southern part of India organized Artificial
Limb. The Base Office of Cauvery Asset is situated in Karaikal, which falls in the
Union Territory of Pondicherry. The nearest well-equipped Hospital is 300 km away
from Karaikal. Due to poverty, the polio affected persons and accident victims are
not able to get artificial limbs. Many NGOs/Voluntary Organisations conduct regular
Health Camps and Eye Camps. However, it was noticed by the Asset that no NGOs/
Voluntary Organisations came forward to conduct the Artificial Limb camp, as it
requires professional expertise from places like Jaipur and the project involves huge
expenditure. Hence, ONGC took up the challenges of organising a specific camp to

47
 distributed artificial limbs. Beneficiaries of the Camp were mostly from the
operational districts of Cauvery Asset, Karaikal. The list of beneficiaries was
screened and finalized by Rotary Club in association with ONGC. The Camp
provided 175 callipers/ Jaipur foot to 115 nos. of needy and downtrodden people in
and around Karaikal, who could not afford to spend money for the same. The Asset
organized another Camp with the association of Rotary Club wherein 167 callipers/
Jaipur foot and crutches were provided to 97 nos. of persons from 12 to 17th February
2008. During last two years, the Rotary Club has carried out project named
Roataplast for corrective surgery for cleft lip palates. More than 100 patients per year
are getting benefits. Medical professionals and paramedical staff from United States
and other countries attend the project. ONGC has supported this initiative during last
year, ONGC Mahila Samiti, the Wives Association of ONGC employees, in
association with Rotary Club of Karaikal conducted free Hearing Aid Camp in the
premises of ONGC. Hundreds of patients benefitted out of this camp.

Supporting Entrepreneurship Projects

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

District Collector, Tiruvarur. He proposed that ONGC can provide support to the Kurinji
Women Self Help Group, Panayur Panchayat, Kottur Block, Tiruvarur District, and
Tamil Nadu. This SHG produces Coir from the locally available coconut Fibres and
marketing. ONGC supported 15 Women Self Help Group Members and 55 rural family
members through this initiative. ONGC provided job opportunities to rural local people
in Panayur Panchayat and other adjoining villages. By improving the institution through
modernization, ONGC indirectly provided employment to the rural youths in producing
and marketing the coir materials.

The objective of the project was

 to provide regular employment to the rural woman folk
 to improve the socio economic status of rural men and women
 to mobilize the industry in rural area
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  to provide financial rotation in the remote village
This project has enabled them to purchase the above machineries to modernise and
increase their daily production, generate more income and provided employment to the
rural poor.

Education

 Nanhi Kali

Teaching an individual to make bread and not giving him bread, is part of our
CSR policy. In line with this, ONGC very pro-actively is associated with Nanhi Kali
which was incepted in 1996 by the KC Mahindra Education Trust and has been
successful in reaching out to 28000 beneficiaries so far. Recently, KC Mahindra
Education Trust has partner with Nanhi Foundation to jointly manage Nanhi Kali. Nanhi
Kali was incepted to empower women by educating them. The realization that girls
constitute more than 3/5th of total out of school, primary school age population in the
world has got the issue of girls. Education to the fore at national and international front.
Female children are generally neglected and exploited at an early age. It is only through
education that the girl child can arm herself to the independent and self-reliant. Scope of
the project: Nanhi is working with communities in the following states in India: Andhra
Pradesh, Karnataka, Andaman & Nicobar, Madhya Pradesh, Chhattisgarh, Rajasthan and
Maharashtra.

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

girls in the educational process. Since education of girls has not been emphasized due to
cultural and social stereotypes girls which restrict girls from attending the school and
initiative has been taken up through Nanhi Kali to provide education to female children.
Details of selection of target population: Following criteria is adopted to identify the
beneficiary:

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  Girl children who are enrolled in any Government school. Out of school
children are also encouraged to enrol in school through bridge courses.
 Girl children belonging to the poorest section of the society (family income
being below Rs.18, 000/- per annum).
 Girl child who is a first generation learner
 Girl children belonging to dalit, tribal and migrant communities.
 Eldest girl child and girl children with many siblings
 Girl children from communities where stereotypes high-ups
 Girl children from female house-holds

Disabled girl children

In stage I, beneficiaries are identified. In stage II, the value of education to the
child, parents and the community is affirmed. Regular contact with the school is
maintained to track the child’s attendance, academic progress, health status and
social skills. Direct support in the form of note books, stationery, uniforms,
examination fees and learning material is provided. Capacity building of children is
done. Extent and role of the communities: Teaches are sensitized to address the
community on general disparities and assert the dire necessity of educating the girl
child. 18 Long-term sustainability of the project: ONGC has partnered with Nanhi
Kali to sponsor 50 students from Class I to VII and another 50 students Class VIII to
X. Methodology used for monitoring progress on the project and feedback: Progress
is monitored monthly, quarterly and yearly by Nanhi Kali. ONGC has monitored the
progress of the girl child by retaining the profile of the students and their living
environment of the beneficiaries which are sponsored by ONGC. Learning’s from
the project: Empowerment of women can come only by making an effort towards
making them and supporting all the initiatives to promote education among girl
child. The only can ensure development of an economy. However, the entire
community needs to be sensitized towards this issue.

 Promotion of literacy and higher education

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

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  Facilities for constructing schools, renovation of school buildings, other
infrastructure
 Support to vocational training institutions for upgrading the skills of the local people
 Development of the socially and economically weaker sections of the society
 Sponsoring/ co-sponsoring professional meets, conventions, seminars etc.
 At Goa, under the CSR Programme and SC/ST Component plan, IPSHEM has
upgraded facilities at 5 schools. 53 economically back-word students were provided
school uniforms.

Relief Fund Packages

 A Summer Camp for underprivileged children was held at Mumbai. ONGC provided
financial support to Navnirmiti. 200 underprivileged children of municipal schools
attended the camp where innovative education techniques were used for popularizing
mathematics and science. Art, theatre and cultural activities were conducted for
personality development by students from Somaiya and Tata Institute of Social
Sciences.

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

BAIF joined hands to develop 15 self help groups (SHGs) in three villages of Uran. 70
women members of the SHGs have been provided vocational training and various
items produced by the SHGs are being marketed locally. ONGC provided seed money
to each group.

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

 In its CSR projects at Hazira, ONGC and the NGO Lok Vikas Sanstha joined hands to
empower economically backward persons of Bhatpore, 100 windows were provided

51
 income generating and self development opportunities. Mutual help groups were set
up and skill training for the beneficiaries provided. Regular water supply, road
connectivity and aid during floods were provided by ONGC.

Environment Protection Programmes

 Company’s Environment Management System is based on the precautionary

principle. Various significant environmental issues have been identified and
actions have been initiated based on the management hierarchy of preventing
pollution at source, recycling & reuse of waste, treatment and disposal of the
waste. Various notable efforts done in this direction are as follows:

 ONGC recognizes and shares the concerns of government and the public about
climate change. We understand that fossil fuels, which we also produce, has
contributed to an increase in Green House Gases (GHGs). Hence, ONGC has
embarked upon ambitious initiatives to manage and reduce GHG emissions,
which may be broadly classified into the following categories:

 Reporting of GHG emissions

 Energy efficiency / conservation plans
 Gas Flaring reduction
 Renewable energy
For these ONGC has specially formed the following groups for the dedicated
efforts, close monitoring and deliverance of results
 Carbon Management Group
 Energy Centre for search in non-conventional energy sources
 Health Safety and Environment Group

GHG emissions reporting

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  ONGC is committed to consistent reporting of GHG emissions. We have
calculated direct GHG emissions related to our operations starting from
the year 2003 till date.

 We are following the Compendium of Greenhouse Gas Emissions

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

 In our oil and gas operations, business growth increases our GHG
emission and we are continuing to work for emissions reduction in total to
offset the impact of these emissions.

 Carbon dioxide makes up most of our GHG emissions (to the extent of 55-
57%) and it comes predominantly from our processing operations,
including exhaust from combustion units and flares. Our GHG reporting
includes direct emissions associated with the drilling, production and
processing of oil & gas and indirect emission from purchased grid
electricity for use in our operations.

Expanding green cover

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

maintaining biodiversity and providing aesthetic environment. Tree plantation in
ONGC is carried out by selecting trees as per bio-geo- climatic conditions of the area
to ensure desirable rate of survival. Every year ONGC sets a target of planting trees
and monitors the progress. In the year 2006, ONGC has planted 33030 trees in and
around our working area. Apart from yearly target of tree plantation around our
working area, we take up specific big projects. A recent example is the Dronagiri.
Projects which were aimed at greening of the barren Dronagiri hills and arid beach
near Uran Plant of ONGC. It posed a challenge to the organisation because of a harsh
terrain devoid of vegetation and showed resilience when we commenced our

53
operations. While improving capacities of our plant we have demonstrated our
commitment to the environment in intent and execution. Seeds of fast growing
species were served along with fertilizer across the Dronagiri Mountains from the
helicopters in collaboration with Department of Forests, Government of India. Over
2.5 lakhs fully grown trees and 20 varieties of plant species make Dronagiri hills
completely green. More than a quarter million trees support the industrial ecosystem.
The once barren Dronagiri today is a nature trail to an environmental friendly
mindset. Years of concerted efforts in forestation have resulted in a verdant green
cover that adorns the landscapes surrounding the plant and nearby villages. A
steadily growing green belt along the beach has erected a protection against erosion
and is a virtual oasis for the stunning backdrop.

Renewable energy

In order to meet the world’s growing need for energy, we believe all potential
sources must be considered. New technologies and renewable energy sources,
including conservation related technology. ONGC has made headway in using solar
power at various platforms for powering its entire ITC infrastructure. During the year
2003-04 we have generated 112 MWh of power using solar photovoltaic, avoiding
use of fossil fuels. ONGC has also taken initiatives for setting up two wind power
projects of 50 MW each in Gujarat with help from Suzlon Energy Ltd. and
Karnataka. Power in Gujarat will be used in house and in Karnataka it will be sold.
On 31st March, 2008, first unit of clean and green energy as generated by ONGC by
fully commissioning three wind turbines of 1.5 MW capacities each. The power
generated by this wind farm in 1st phase will have captive usage at installations of
Ankleshwar and Ahmedabad. Apart from above, ONGC.s other initiatives in this
direction are:
 Water Management
 Biodiversity
 CDM Project Activity
 Methane to Market
 Carbon Dioxide Capture and Sequestration

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  Carbon Disclosure Project
 GHG Accounting
 QHSE Accreditation
 Corporate Policy on Climate Change and Sustainability
 Underground Coal Gasification (UCG)
 Coal Bed Methane (CBM)

Safety Programmes

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

management (IPSHEM) in 1989 with the objective of improving the safety, health,
and environment standards in the Indian petroleum industry.

 The institute offered training courses in safety and environment management and
a special training program for off-shore personnel

Sports

 ONGC also participated in promoting sports and games like cricket, football,
hockey, athletics, basketball, chess, golf, billiards, and volleyball in India.

 Around 150 sport persons including 95 international level performers are on the
rolls of ONGC representing the company in 15 different games. Prominent among
them is Pankaj Advani, Virender Sehwag, and Koneru Humpy to name a few.

 Company’s Basketball team won the National Federation Cup.

 Company hosted the ONGC Nehru Cup International Football Tournament the
year.

55
  Company won the Petroleum Minister’s PSPB Trophy for Overall Best
Performance in 2007-08 for the fifth year in succession.

 Currently the company is the Title sponsor for the National Football League
called the “ONGC I-League” in association with the All India Football
Federation.

Other Programmes

Life Care Society: Reach Poorest of Poor

Background for undertaking the project- ONGC as an organization has partnered

this initiative with its retired employees at Dehradun to render service 6 to the poorest
of poor and needy. The retired employees formed the Life Care Society an NGO
meant for serving the under-privileged by reaching out to the people in the hinterland
of Uttarakhand. The Society owes its birth to ONGC and weekly medical camps
organized for the needy. Every village has been given a Doctor, who is playing a very
significant role by treating patients with different kinds of ailments pertaining to eye,
dental and other chronic ailments. Scope of the project: Pondha, Bansiwala, Karbari
and Sherpur are some of the villages where the Society is working pro-actively.
Objective of the project: To provide weekly medical camps to the needy in the
interiors of Dehradun. The Society does not get any financial aid, help from the
Central Government and State Government and is fully dependent upon donations
from friends, relatives and well wishers. It is here that it has been making a difference
by treating patients and giving them medical treatment free of cost. Details of
selection of target population: In all 11247 patients were treated in 2006 and 5663
patients were treated in the year 2004. Implementation of the project: All the medical
centres operate from respective Village Panchayat Bhawans / Milan Kendras which
have been made available for this purpose by the Gram Pardhans. First of these
medical centres was established on 20.10.2003 and other centres came up
subsequently from November 2003 onwards. The programme in 2006 included 2
more medical centres, one being in the tribal area of Jaunsar Babar. Society had also

56
 organized mega medical camps earlier. The first such camp was at village Bansiwala
during the year 2003-04, in which the Society along with the Panchayat Ghar and
ONGC examined 286 patients with eye, dental and other chronic ailments. About 60
of the eye patients were further operated upon for cataract at ONGC Hospital,
Dehradun. Another medical camp was organized in January 2004 in Nayagaon. In all
15 well-qualified doctors and specialists attended to 1705 patients and general
medical check-up of 1200 school children was also undertaken. Long-term
sustainability of the project: Medical check-up of as many school children as possible
will be undertaken. Arrangements will also be made for indoor patients at City
Hospitals. Scholarships will be provided to brilliant students who would be able to
seek admission into the IITs, Polytechnic and Vocational Courses. Assistance will be
provided to Physically Challenged individuals for eye and artificial limbs related
matters. Counselling service with regard to higher education, placement and social
behaviour are other initiatives which are planned. Support from ONGC: ONGC has
been very supportive to Life Care Society since its inception. Not only does ONGC
provide financial aids but also the entire infrastructure of ONGC is made available to
Life Care Society to facilitate its effective functioning. In the year 2006, ONGC
provided financial support for organizing medical camps and for Ambulance. This
Ambulance in times of bereavement in the family would be available to the family
free of cost within municipal limits of Dehradun and on special occasions for
outstation use. Learning’s from the project: Only after conducting mega camps, in the
year 2003-04, it was felt that such medical camps are of limited use to the general
public as patients don’t get sustained medical care. It was, therefore, decided to
organize weekly medical camps for more focused attention and sustained results.
Improvements are being added to the existing line of treatment by including the
facility of checking blood sugar level with the help of Gluco meter and strip test at the
camp itself. Through this facility, further line of treatment and disease management is
indicated to the patient immediately. This facilitates progress and further monitoring
of the patients.

Swajaldhara: Water Management in Andhra Pradesh

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 Water is the life line and is also the main source of disease and destruction in the
Society. The Coastal India is always infested with contaminated water with water
borne diseases because of water logging in these areas. It is no different situation in
Andhra Coastal area particularly Konaseema, where we operate. A source of clean
water is quite a need for these villages. There is a village called Turpupalem
(Konaseema), Malkipuram Mandal, East Godavari District, Andhra Pradesh nearer to
sea-coast. This village has a population of 3,000 people belonging to lower castes.
Ninety percent (90%) of the people are below poverty line. They are drinking the
water from dug water wells. The people of the village collect water from these wells
for the drinking purpose and also feed to milk animals, wash clothes etc. near these
wells; thereby the hygiene near these wells has been at stake. The water taken out
from the wells goes inside and continuously contaminates the water. This leads to
diseases and illness to the villagers.
Village Sarpanch, who is aware of the CSR activities undertaken by ONGC,
approached the Head-HR/ER for providing Hand Pumps. So that the villagers will
not only get protected water but also to get the water for cluster of houses nearer
their hamlets which saves time in fetching the water.
ONGC’s Support
ONGC provided support to the village by extending support to 20 Hand Pumps in
the village. The hand bore wells have already been inaugurated on 10th February, 2008.
Now the water is protected to a large extent since the hand operated pumps hardly allow
the water to go back unlike open wells. The villagers are so much grateful to the ONGC
for the health conscious Projects undertaken by ONGC, Rajahmundry. Providing
protected water is always a priority under CSR of ONGC.

CRC Old Aged Home

ONGC extended support to CRC Old Age Home at Ravulapalem, which is a

small town situated 35 kilometres from Rajahmundry on the Kolkata-Chennai
National highway. The Home started functioning in February 2005. Initially, the Old
Age Home can cater to about 100 old people for their needs of shelter, food, medical
facilities and other requirements. The Home boasts of unique facilities like purified

58
 drinking water, nutritious food, devotional activities, library facilities, gym,
recreation room and 24 hour medical facilities with ambulance. With a very good
response by the old people, it was planned that the home may be expanded so that it
can provide shelter to another 100 people and also to construct hospital for the
inmates. The Old Age Home is located in East Godavari District of Andhra Pradesh,
the major activity area of ONGC under Rajahmundry Asset and KG Basin. Hence,
ONGC thought that it will be a good gesture by ONGC to help CRC Old Age Home
for its expansion to accommodate 200 people. The home is shaping up well and will
be shortly completed.

Community Halls after Tsunami in Southern India

After Tsunami in December 2002 Govt. of India initiated an ambitious plan of

constructing 100 number of community halls in the coastal villages and towns
vulnerable to this disaster. ONGC has a work centre close to the coastal area and
decided to extend support for 58 of these community halls, which would not only
serve as a shelter in case of a disaster but will also act as the common point for
exchanging ideas, networking, community functions, school functions, vocational
training and for Panchayat use. The community halls were to be made of different
sizes depending upon the population of the town / village and need assessment. Right
from the beginning the Panchayat (Local Self Government) were involved and made
the most important stakeholder requesting them to approve the site, provide the land
and undertake the construction activities. Most of the Panchayat have responded very
well and on their request a number of community halls are coming up, which we
hope will serve for the needs mentioned above.

Nature Study cum Adventure Camp for Special Children and Youth

Background for undertaking the project- Mainstreaming the physically or

mentally challenged has been our endeavour. With this in view, Nature Study cum
Adventure camp for the Physically Challenged Children and Youth-2008 is being
supported by ONGC since 2003. The main objective of this camp is to bring these
59
challenged children and youth close to nature and thereby help them to rediscover
their hidden talents and capabilities so as to make them self-confident at the end of
the course. The participants despite their disabilities get motivated to surpass their
limitations. Himalayan Nature & Adventure Foundation has been carrying on this
event since the beginning of the Foundation. The joint movement between ONGC &
HNAF has given this event a major success. The mission of HNAF has achieved a
great deal of help having been supported by ONGC. Scope of the project: In the year
2006, this camp was organized at Upeer Kopish Forest village Darjling and this was
organized by Himalayan Nature & Adventure Foundation, Siliguri. The camp and
physical training, trekking, providing knowledge of trees watching birds, getting
accustomed to the surrounding hills and rivers, knowing about equipments of
adventurous sports and camp manners. The wheel chair bound participants were
taken for a day out. Nature gains were emphasized. Participants also performed
songs, dance, drama, etc. Objective of the project: The main object of the Camp was
to bring these challenged children and youth close to the nature. Details of selection
of target population:
Total 95 participants along with 26 escorts participating in the camp. 5 days camp
with activities varying from nature gains, rock climbing, fire making, knots, drawing,
quiz, camp fire and other cultural activities. Campers from various parts of the
country participated at this camp. Long-term sustainability of the project: ONGC has
been associated with this initiative since the year 2003 and considers it an
opportunity to enable the disabled to enjoy the resources of nature. Methodology
used for monitoring progress on the project and feedback: the photographs and the
CDs of the programme are sent to ONGC to observe the desired results of
associating with this initiative. Learnings from the project: ONGC.s association with
such initiatives provides opportunity to serve humanity in its real sense. Effort was
made to make such persons overcome their disabilities and enjoy the resources of
nature i.e. flora, fauna and other wealth of nature. With the help of their so called
sixth sense, which is a gift of God, they were able to perform the activities very well.
The visually impaired, with their feelings, knew about the trees and leaves, with the
sound of birds whistle, they knew the kind of birds, with the sound, they had an idea
of natural objects like mountain, fountain, rivers etc. The orthopedically /
wheelchair- bound campers were taken high in the hill, which is an absurd activity in

60
 their thinking. They enjoyed nature sitting in the laps of mountains. The mentally
retarded and hearing handicapped, with the help of specialized persons were given
the best of the natural and adventure activities. All these campers were all out
disciplined and they overwhelmingly enjoyed the nature. The escorts and the guides
from the concerned institutions were remarkably happy seeing the changes of these
campers at the end of these five days Camp. At the closing day the campers, their
guides and escorts performed cultural programmes at the Campfire Ceremony.

Burns cum Emergency Ward at Kumbakonam

Background for undertaking the project- Disaster management is one of the focus
areas of CSR in ONGC. In line with this, ONGC provided its supports in establishing
in Burns-cum-Emergency Ward at Kumbakonam. A tragic fire accident took place in
one of the school. In one of the schools at Kumbakonam in Thanjavur District. On
15.07.2004 which left 94 children charred to death and several children injured.
After visiting the victims, the Hon.ble Minister for Petroleum & Natural Gas and
Panchayat Raj desired that a burns ward is to be set up in the Kumbakonam,
Mayiladuthurai and Sirkajha Govt. General Hospitals by Oil PSUs. After
deliberations with the respective District Collectors of Thanjavur and Nagapatinam
along with representatives of PSUs on 07.08.2004 and 18.12.2004, it was decided
that a burns ward is to be established in Kumbakonam Government General Hospital
by ONGC. Accordingly, ONGC sanctioned an amount of Rs.15 lakhs for
establishment of the burns ward. Scope of the project: All the communities in and
around the Kumbakonam District. Objective of the project: To establish a burns ward
in Kumbakonam District Headquarters Hospital. Implementation of the project: The
estimate for construction of 30 bedded emergency wards in the hospital included cost
of the building, cots, mattresses, cop-boards, etc. In the year 2007, construction of
the building was completed and the beds, cots and other material for the ward were
provided by the District Administration. In phase I, it was decided to establish a
burns ward at the cost of Rs.15 lakhs and the same was provided by ONGC.
However, it was informed by the Hospital authorities that fire accident cases are not

61
on regular nature, apart of the word may be used for emergency patients.
Accordingly, Air Conditioners for an amount of Rs.6, 40,235/- was provided by
ONGC. Long-term sustainability of the project: The completion of the construction
of the burns ward was received and further construction of the emergency ward has
been initiated. The construction, up-keep and maintenance is carried out by PWD,
Tamil Nadu. Methodology used for monitoring progress on the project and feedback:
ONGC office in Chennai has been monitoring the construction and completion of
this project. Expenditure incurred on the project: Total expenditure incurred in two
phases is Rs.21, 40,235/-. Although infrastructure development is not cover under
Corporate Citizenship Policy, however, proposal for construction of burns-cum-
emergency ward would provide treatment to accident victims was considered as a
gesture by ONGC to return back to the community.

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Chapter 6:

Analysis and Interpretation

The local population gains the most as a result of the ONGC operations. Apart
from benefits accruing from the primary function of the corporation, ONGC has been
extending full support in the overall development of the areas around its operations all
over the country. Since 1996-97, the execution of these programmes has been further
streamlined. Work-centre-wise allocations are made each year and programmes are
being executed under the comprehensive guidelines issued on the subject. Major
emphasis has been given for promotion of education, health and community development
and in times of natural calamities such as floods, cyclones, earthquakes, landslides, etc.
The impact of these concerted efforts is felt by the community. ONGC programs about
health care, eye camps, helping the educational institutions are widely appreciated.
A proactive approach towards socio-economic development is adopted i.e.
projects are identified by ONGC at the plant level by involving the district
administration, local representatives and recognized voluntary organisations.

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Conclusion and Suggestions

The findings reveal that each of the leading operators has its own approach to
CSR and that there are substantial variations in the nature and the extent of reporting.
More specifically the paper focuses upon four sets of CSR issues namely those relating to
the marketplace; the workplace; the environment; and the community and then provides
some reflections on the commitment to these issues at both corporate and individual
public levels. Research implications/limitations – CSR in the pub sector of the hospitality
industry has received relatively little attention from academics but the case study suggests
a number of fertile grounds for future enquiry and research. That said the current case is a
preliminary exploration of CSR issues as reported on the worldwide web and more in
depth work will be needed before more definitive conclusions can be drawn.

For ONGC, Corporate Social Responsibility is a culture and an unwritten contract

with the community. Every citizen is an asset in economic activity and ONGC only tries
to provide the opportunity.

It has been argued that there are considerable evidence and significant
opportunities for ONGC to contribute in a sustainable manner to social value creation
through CSR related training initiatives in developing countries.

Through the present Project, and taking into account, we consider that we have
identified some working avenues that international organizations, state governments, or
both working together, could undertake with the goal of inspiring and orienting the
challenge of localizing CSR training initiatives.

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 Localizing CSR training initiatives requires relevant national needs with the
business strategies and competences. Only then, can we consider the possibility of
arriving at a shared understanding and agreement on the way in which we can contribute
to social value creation through business development.

In this context, one option would be setting a CSR agency, which can support
and encourage the development of a CSR leading entity at national level: “localizing
CSR”, integrating government, private sector and civil society organizations. There is a
need to fill the gap for addressing initiatives to further and optimize the CSR advantages.
Among them:

 Raising awareness of the role of CSR in human capital development. Work to

advance the concept of CSR as a “social value creation” strategy. For instance,
promoting commitment and long term vision for meeting education needs.

 ONGC has to concentrate on their core competencies to be better able to innovate

on their initiatives. This helps to ensure consistency between the company’s
portfolio of activities and the engagement on CSR.

 Regional integration, define an agenda for regional educational priority issues and
develop a network of governments, business and civil society organizations with
the goal of promoting CSR training initiatives at the regional level.

To enlarge ONGC’s commitment towards human capital development through

CSR training related initiatives would require a more coherent approach to emphasize the
quantitative and qualitative benefits for both, company and society at large. It is crucial to
build on existing successful initiatives, capacities and skills to serve as a model for
promoting the legitimacy of this endeavor.

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 Bibliography

List of websites researched

 www.ongcindia.com
 www.google.com

List of Newspapers referred:

 Daily News and Analysis (DNA)

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