CORPORATE SOCIAL RESPONSIBILITY
OIL AND NATURAL GAS CORPORATION LIMITED (ONGC) INDIAN ESSENCE, GLOBAL PRESENCE
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Abstract: This project aims to offer a preliminary case study exploration of the “Corporate Social Responsibility” (CSR) issues being addressed and reported by Nikhil Limaye the researcher. Corporate Social Responsibility (CSR) is the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve quality of life, in ways that are both good for business and good for development.
Although the contemporary CSR agenda is maturing, the term “CSR” has not yet taken hold within many public sector agencies, either in industrial or developing countries. Few government initiatives have been undertaken explicitly as “pro-CSR initiatives” but nonetheless many have contributed effectively to the promotion of greater social responsibility.
There is a significant opportunity for public sector bodies in developing countries to harness current enthusiasm for “CSR” alongside key public policy goals and priorities to encourage delivery of results in both respects.
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Acknowledgement:
No book is entirely created by an individual. Many people have helped to create this book and each of their contribution has been valuable. The timely completion of this book is mainly due to the interest and persuasion of Prof. Elizabeth. We take this opportunity to thank her for his guidance, support and the faith she has shown to us.
We would like to thank Prof. Nilesh Manore, Head and co-coordinator for his valuable advice given time to time. We would also thank Teaching and Non-Teaching staff of Computer Department for allowing us to use computers, internet and printers whenever required.
We thank Mr.Gadade our Director for looking after our work and for 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!
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Executive Summary:
Abstract Acknowledgement ExecutiveSummary Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6 Chapter-7
Page No. 2 3 4
CertificateofApproval 5 Introduction to Oil and Gas Industry 6-9 Introduction to Oil an d Gas Corporation 10-29 Limited (ONGC) IntroductiontoCSR 30-34 Introductiontotheproject 35-36 FactsandFindings 37-62 AnalysisandInterpretation 63 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.ElizabethMatthews
Prof.Gadade CKTIMSR
Director (CKTIMSR)
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Chapter 1: Introduction to the Industry The oil and gas industry has been instrumental in fuelling the rapid growth of the Indian economy. The petroleum and natural gas sector which includes transportation, refining and marketing of petroleum products and gas constitutes over 15 per cent of the country's gross domestic product (GDP). As per an Investment Commission report, petroleum exports have also emerged as the single largest foreign exchange earner, accounting for 11.5 per cent and 15 per cent of the total exports in 2005-06 and 2006-07. The growth continues in the new fiscal with the export of petroleum products touching US$ 20.03 billion during April-December 2007. However, India's domestic demand for oil and gas is also on the rise. As per the Ministry of Petroleum, demand for oil and gas is likely to increase from 176.40 million tones of oil equivalent (mmtoe) in 2007-08 to 233.58 mmtoe in 2011-12. As per the BP Statistical Review of World Energy, 2006, India's primary commercial energy consumption (including coal, oil and gas) was 423 mmtoe in 2006, making it the fourth largest consumer in the world with a four per cent share of the global primary commercial energy consumption. The primary commercial energy consumption in India grew at a compound annual growth rate (CAGR) of 4.5 per cent during 19962006, which is more than double the global CAGR during the same period. Of the total primary commercial energy consumption in India, oil constitutes 28 per cent and natural gas 8 per cent. Coal continues to be the dominant fuel accounting for 57 per cent of total energy consumption. Domestic production of crude oil has been increasing steadily. While production grew by 5.6 per cent in 2006-07 to 33.98 million tons (MT) from 32.19 MT in 2005-06, it has increased to 34.11 MT during 2007-08.
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Global Refining Hub India is emerging as the global hub for oil refining as it enjoys competitive cost advantage, with capital costs lower by as much as 25 to 50 per cent over other Asian countries. Already, the fifth largest country in the world in terms of refining capacity (up from 19th in 1995), with a share of 3 per cent of the global capacity, India is likely to boost its refining capacity by 45 per cent or 65.3 mtpa (million tons per annum) over the next five years, according to a Deutsche Bank report. According to the report, Indian companies plan to increase their refining capacity to 242 mtpa by 2011-12 from about 149 mtpa in 2007.
Indian Oil Corp (IOC) plans to increase its refining capacity from 60.2 mtpa to 80 mtpa.
The two public sector undertakings, GAIL (India) Ltd and Indian Oil Corporation Ltd (IOCL), are looking at setting up a US$ 2.09 billion petrochemical plant at Barauni, which would be of a minimum 3 lakhs tonnes capacity.
ONGC plans to scale up its refining capacity up to 45.5 million tonnes by 200910 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.
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Retail Sector The surge in automobile sales has led to significant investments being made to develop and expand the petroleum retail market. According to US-based consultancy Keystone, automobile sales which number about a million vehicles is likely to grow to about 20 million a year by 2030, making India, the third largest automobile market in the world. Consequently, many companies have stepped up investments to expand their retail network. For example, Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) together are planning to open over 3,000 retail outlets this financial year as against 2,000 outlets opened last year. Similarly, Reliance plans to build 6,000 services stations.
Gas Gas demand in India is dominated by the power and fertilizer sectors which account for 66 per cent of the current consumption. In 2006, the total gas demand was estimated to be 152 million standard cubic metres per day (MMSCMD). The gas demand is projected to grow at a CAGR of 8.6 per cent during 2007-08 to 2016-17 to reach a level of 320 mmscmd, which is more than double the existing demand, according to a report by Ernst & Young titled 'Indian Natural Gas Sector'. Significantly, the share of natural gas in the overall fuel mix is expected to increase from 8 per cent in 2006 to 20 per cent by 2025. Encouraged by this scenario, a number of players have evinced a keen interest in laying pipelines in the domestic market to supply gas to the consumers. For example, Gujarat State Petronet Ltd plans to connect all 25 districts of the state with 2,200kilometre high pressure gas pipeline laid down across the state. Reliance Industries plans to invest between US$ 5.45 billion to US$ 6.54 billion over the next three years to lay a 10,000 km pipeline grid that covers main gas transport trunk lines supplemented by spur lines crisscrossing the country.
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Government Initiatives
The government has been taking many progressive measures to create conducive policy and regulatory framework to attract investments into this industry.
The Petroleum and Natural Gas Regulatory Board Bill, 2005 was passed by the Parliament in 2006. The bill envisages setting up of an independent regulatory mechanism with the objective of regulating the refining, processing, storage, transportation, distribution, marketing and sale of petroleum production and natural gas.
Allowing 100 per cent FDI in private refineries through automatic route and 26 per cent in government-owned refineries.
Implementation
of the New Exploration Licensing Policy (NELP) in 1997.
Abolition of the administered pricing policy.
100 per cent FDI is also allowed in petroleum products, exploration, gas pipelines and marketing/retail through the automatic route.
The first mega oil, chemical and petrochemical investment hub is slated to come up at Andhra Pradesh, and is expected to attract a whopping investment of US$ 86 billion. Mittal Energy Investments, Total SA of France and oil refining and marketing major, Hindustan Petroleum Corp (HPCL), along with Oil and Natural Gas Corporation (ONGC) are some of the companies making an investment in the proposed petroleum, chemical and petrochemical investment region (PCPIR). A similar PCPIR is likely to come up at Bharuch in Gujarat.
Road Ahead An expanding economy with its concomitant increase in energy demand is likely to throw open huge investment opportunities in the oil and gas industry. According to a CII-KPMG report—"India Energy Inc. - Emerging Opportunities & Challenges"—India's energy sector would provide investment avenues worth US$ 120 billion-150 billion over the next five years.
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Chapter 2: Introduction to Oil and Natural Gas Corporation Limited (ONGC)
Vision and Mission 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 corrupti on 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 Compan y, 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.
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Background and History
1947 - 1960 During the pre-independence period, the Assam Oil Company in the northeastern and Attock Oil company in northwestern part of the undivided India were the only oil companies producing oil in the country, with minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for development of oil and gas resources.
After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity.
Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889) and the Oil India Ltd. (a 50% joint venture between Government of India and Burma Oil Company) was engaged in developing two newly discovered large fields Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture between Government of India and Standard Vacuum Oil Company of USA) was engaged in exploration work. The vast sedimentary tract in other parts of India and adjoining offshore remained largely unexplored.
In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the countr y as part of the Public Sector develo pment. 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 forma tion of the Oil and Natural Gas Direc torate, 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 activ ities 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 Nameoftheholder(s)
PresidentofIndia
No.ofShares
1,585,740,673
Indian Oil Corporation Ltd. Gas Authority of India Ltd. Life Insurance Corporation of India
Percentage
Category
74.14
IndianPromoter
164,480,857
7.69 Other Govt. Company
51,400,267
2.40 Other Govt. Company
52,084,647
2.44
Insurance Company
DISTRIBUTION OF SHAREHOLDING AS ON QUARTER ENDING SEPTEMBER 30, 2008 Category
Noo . fShares
Percentage of Shareholding
A. Promoter’s Holding 1. Promoters
-IndianPromoters -ForeignPromoters -PersonsActinginConcert
1,585,740,673
74.14
NIL
--
NIL Sub Total
--
1,585,740,673
74.14
39,304,432 88,955,054
1.84 4.16
B. Non-Promoters Holding 2. Institutional Investors
a.MutualFundsandUTI b. Banks, Financial Institutions, Insurance Companies (Central / State Govt. Instts. /
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Non-Govt. Institutions) c.FIIs
136,708,977 Sub Total
264,968,463
6.39 12.39
3. Others
a. Private Corporate Bodies b.IndianPublic c.NRIs/OCBs/ClearingMembers
246,672,985
11.54
39,204,321
1.84
2,286,088
0.10
Sub Total
288,163,394
13.47
Grand Total
2,138,872,530
100.00
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Global Ranking
ONGC ranks as the Numero Uno Oil & Gas Exploration & Production (E&P) Company in Asia, as per Platts 250 Global Energy Companies List for the year 2007.
ONGC ranks 23rd Leading Global Energy Major amongst the “Top 250 Energy Majors of the World in the 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:
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Establishing 6.42 billion tonnes of In-place hydrocarbon reserves with more than 300 discoveries of oil and gas;
In fact, 6 out of the 7 producing basins have been discovered by ONGC: out of these In-place hydrocarbons in domestic acreages, Ultimate Reserves are 2.29 Billion Metric tonnes (BMT) of Oil Plus Oil Equivalent Gas (O+OEG). Cumulatively producing 762.3 Million Metric Tonnes (MMT) of crude and 440.7 Billion Cubic Meters (BCM) of Natural Gas, from 115 fields.
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:
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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.
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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.
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Frontiers of Technology
State-of-the-art seismic data acquisition, processing and interpretation facilities.
Uses one of the Top Ten Virtual Reality Interpretation facilities in the world. Alliances with Transocean, Schlumberger, Halliburton and Baker Hughes, IPR, Petro bras, Norsk, ENI, Shell.
One of the biggest ERP implementations in the Asia
Best in Class Infrastructure and Facilities
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
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Virtual Reality Centre :- 5
Regional Computer Centre :- 5
Offshore
Well Platforms: - 147
Well-cum-Process Platforms :- 32
Process Platforms :- 13
Drilling Rigs :- 29
Pipeline Networks (km) :- 4,500
Offshore Supply Vessels :- 55
Special Application Vessels :- 4 (including 2 MSV)
Seismic Vessels :- 1
The Road Ahead ONGC looks forward to become an integrated energy provider, with:
New Discoveries and fast track development
Equity Oil from Abroad
Downstream Value Additions & Forward Integration
Leveraging state-of-the art technology and global best practices
New Sources of Energy
Production from small and marginal fields.
ONGC GROUP COMPANIES
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The ONGC Group of Companies comprises of – 1.
ONGC Videsh Limited (OVL):OVL is the wholly own subsidiary of ONGC which has been mandated to carry out international E&P business operations of the parent company.
2.
Mangalore Refinery and Petrochemicals Limited (MRPL):This is a 71.60% subsidiary of ONGC. It is the only other listed company besides parent ONGC within the ONGC group.
3.
ONGC Nile Ganga BV (ONG BV): This is the wholly 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.
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8.
Kakinada SEZ Limited: In tune with the recent initiatives of Ministry of Commerce and Industry, Govt.of India, for declaring Special Economic Zones (SEZs) to boos industrial growth in the country, ONGC/MRPL has become co-promotor under public-private partnership to form this joint venture company and it is envistaged that KRPL and other gas infrastructure units will be located within the Kakinada SEZ to liverage financial initiatives and to bolster economic growth.
9. Mangalore SEZ Limited:With a view to providing synergy with MRPL, large petroleum and petrochemicals based projects are envisaged to be developed at Mangalore. With view to optimizing the capital cost during the construction of the project and subsequently promoting 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.
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Financial Statements: Balance Sheet
------------------- in Rs. Cr. ------------------Mar '04 12 mths
Mar '05
Mar '06
Mar '07
Mar '08
12 mths
12 mths
12 mths
12 mths
Sources Of Funds TotalShareCapital
1,425.93
1,425.93
1,425.93
2,138.89
2,138.89
EquityShareCapital
1,425.93
1,425.93
1,425.93
2,138.89
2,138.89
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ShareApplicationMoney PreferenceShareCapital Reserves RevaluationReserves Networth SecureL doans
0.00
0.00
39,117.17
45,419.49
0.00 40,543.10 0.00
0.00 46,845.42 0.00
52,533.74 59,785.04 68,478.51 0.00
0.00
0.00
53,959.67 61,923.93 70,617.40 0.00
0.00
0.00
UnsecuredLoans
11,407.79
9,916.22
12,722.61 15,109.07 12,482.71
TotalDebt
11,407.79
9,916.22
12,722.61 15,109.07 12,482.71
TotalLiabilities
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 GrossBlock
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
NetBlock Capital Work in Progress
5,668.46
5,836.53
25,184.99
28,838.35
7,842.20
8,839.121 0,518.01
33,373.92 37,794.16 41,154.63
Investments
4,421.67
4,036.67
4,888.57
5,702.05
Inventories
2,405.69
2,569.19
3,038.49
3,033.76
SundryDebtors CashandBankBalance
2,317.80
3,729.31
15.34
20.88
TotalCurrentAssets
4,738.83
6,319.38
LoansandAdvances
17,187.69
39,574.73
8,726.30
9,445.98
30,652.82
55,340.09
FixedDeposits Total CA, Loans & Advances DeferreC d redit CurrentLiabilities Provisions TotalCL&Provisions
0.00 12,007.45 2,510.28 14,517.73
0.00 13,249.06 24,572.10 37,821.16
3,704.28 699.80 7,442.57
2,759.44
5,899.50 3,480.64 4,360.37
27.42 22,417.66 5,820.62 30,258.67
52,293.83 58,710.79 19,574.48 8,113.02 19,253.37
0.00
67,849.42 83,784.78 49,833.15 0.00
0.00
0.00
16,515.78 19,835.99 18,285.94 31,122.39 39,765.20
6,693.13
47,638.17 59,601.19 24,979.07
27
NetCurrentAssets
16,135.09
MiscellaneousExpenses Total Assets ContingentL iabilities BookValue(Rs)
366.34
514.06
673.90
66,682.28 77,032.98 83,100.12
22,456.31
26,593.45
32,907.71 34,157.17 26,006.73
284.33
328.52
378.42
289.52
330.16
------------------- in Rs. Cr. -------------------
Mar '04 OtherIncome
20,211.25 24,183.59 24,854.08
531.16 56,761.64
Yearly Results
Sales Turnover
17,518.93
540.68 51,950.8 9
Mar '05
Mar '06
32,063.93 46,362.94 1,547.08
1,729.79
Mar '07
Mar '08
47,922.87 56,632.81 2,354.99
59,848.52
4,243.10
5,010.66
TotalIncome
33,611.01 48,092.73
50,277.86 60,875.91
64,859.18
TotalExpenses
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
ProfO it S nalO eAf ssets
--
--
--
ProfiO t nSaleOIfnvestments Gain/LossOnForeignExchange
---
---
VRASdjustment Other Extraordinary Income/Expenses Total Extraordinary Income/Expenses Tax On Extraordinary Items Net Extra Ordinary Income/Expenses GrossProfit Interest PBDT Depreciation Depreciation On Revaluation Of Assets PBT Tax NetProfit PriorYearsIncome/Expenses Depreciation for Previous Years Written Back/ Provided Dividend DivideT na dx Divide(n% d) EarningsPerShare
---
---
---
--
---
--
--
--
--
--
--
--
--
--
640.54
475.06
--
--
--
---
--
19,227.65 25,904.87 46.75
37.71
19,180.90 25,867.16
----
--
--
--
29,700.84 32,716.09
35,091.49
21.50
58.98
30,294.41 33,169.65
46.97
35,032.51
5,571.86
6,201.61
8,457.28
9,499.44
9,797.92
--
--
--
--
--
21,837.13 23,670.21
25,234.59
13,609.041 9,665.55 4,958.77
6,685.12
8,650.27 12,980.43 14.16 -2.62 --
--
---
--
--
60.66
91.03
8,027.29
14,523.39 15,642.92 -92.61 --
--
---
7,313.74
-101.85
16,314.54 387.11
--
---
8,920.05
--
--
--
--
--
--
--
73.14
76.28
28
BoVoaklue
--
Equity
1,425.93
Reserves
-1,425.93
38,326.49 44,638.32
FacV e alue
10.00
10.00
-1,425.93
--
--
2,138.87
2,138.87
51,917.40 59,020.98
67,554.61
10.00
10.00
10.00
Competition Last Price Market Cap. (Rs. cr.)
ONGC CairnIndia GAIL Reliance Natural AbanOffshore HindOilExplore JindalDrilling ShivVaniOil SelanExplore DolphinOffshore
661.85 134.80 197.20 40.70 640.35 57.85 240.00 125.00 126.60 125.20
141,561.28 25,536.91 25,014.37 6,646.84 2,420.67 754.90 550.35 548.85 182.51 119.75
Sales Net Pr ofit Turnover 59,848.52 16,314.54 1.27 -78.82 18,008.20 2,601.46 202.79 68.60 658.42 157.90 83.35 24.10 413.23 18.99 272.26 38.39 34.46 13.10 227.71 16.26
Total Assets 83,100.12 29,373.49 14,270.75 2,933.91 2,469.22 1,155.38 276.53 1,387.02 71.33 232.91
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 compan y 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 manufact ured 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 motif s, 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 Centr al Level are activ ely invol ved in protection of the trade at Chanderi.
40
With ONGC as their guide, BVS has begun its journey toward s 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 journal ists. 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 volunt eers, 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 Wester n Offshore Unit, Mumbai. Project support was provided to Trust for Village elf Governance at Kuthambakkam to convert locally produced units into finis hed 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 repor t 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 serv ice to the poorest of poor and needy.
The retired
employees formed the Life Care Society an NGO meant for serving the underprivileged by reaching out to the people in the hinterl and 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 plyi ng a very signific ant 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 Socie ty 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 scienti fic 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 canc er. The unfortunate people of this region who get afflicted by cancer can hardly afford to avail the treatment at Delhi, Mumbai, Vellore and other met ro 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 gener ously 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
Workcenters Assam Gujarat Rajahmundry Karaikal
OPD Attendance 1096 929 1696 500
Medicine beneficiaries 891 369 581 288
Spectacles/glass Cataract cases Cataract distribution indentified Operations done 89 108 89 691 122 94 972 186 153 160 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 17 th February 2008. During last two years, the Rotary Club has carried out project named Roataplast for corrective surgery for cleft lip palates. More than 100 patients per year are getting benefits. Medical professionals and paramedical staff from United States and other countries attend the project. ONGC has supported this initiative during last year, ONGC Mahila Samiti, the Wives Association of ONGC employees, in association with Rotary Club of Karaikal conducted free Hearing Aid Camp in the premises of ONGC. Hundreds of patients benefitted out of this camp.
Supporting Entrepreneurship Projects ONGC, Chennai invited a proposal for supporting an Entrepreneurship project from District Collector, Tiruvarur. He proposed that ONGC can provide support to the Kurinji Women Self Help Group, Panayur Panchayat, Kottur Block, Tiruvarur District, and Tamil Nadu. This SHG produces Coir from the locally available coconut Fibres and marketing. ONGC supported 15 Women Self Help Group Members and 55 rural family members through this initiative. ONGC provided job opportunities to rural local people in Panayur Panchayat and other adjoining villages. By improving the institution through modernization, ONGC indirectly provided employment to the rural youths in producing and marketing the coir materials. The objective of the project was
to provide regular employment to the rural woman folk
to improve the socio economic status of rural men and women
to mobilize the industry in rural area 48
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 50
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 acti vities 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 benefi ciaries provided.
Regular water suppl y, 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 5557%) 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 biodivers ity and providing aesthetic environment. Tree plantation in ONGC is carried out by selecting trees as per bio-geo- climatic conditions of the area to ensure desirable rate of survival. Every year ONGC sets a target of planting trees and monitors the progress. In the year 2006, ONGC has planted 33030 trees in and around our working area. Apart from yearly target of tree plantation around our working area, we take up specific big projects. A recent example is the Dronagiri. Projects which were aimed at greening of the barren Dronagiri hills and arid beach near Uran Plant of ONGC. It posed a challenge to the organisation because of a harsh terrain devoid of vegetation and showed resilience when we commenced our
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operations. While improving capacities of our plant we have demonstrated our commitment to the environment in intent and execution. Seeds of fast growing species were served along with fertilizer across the Dronagiri Mountains from the helicopters in collaboration with Department of Forests, Government of India. Over 2.5 lakhs fully grown trees and 20 varieties of plant species make Dronagiri hills completely green. More than a quarter million trees support the industrial ecosystem. The once barren Dronagiri today is a nature trail to an environmental friendly mindset. Years of concerted efforts in forestation have resulted in a verdant green cover that adorns the landscapes surrounding the plant and nearby villa ges. 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 54
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 includ ing 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.
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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 ailmen ts. 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 patie nts were further operated upon for catar act 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 inaugurat ed 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 opportuni ty 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. Expendit ure incurred on the project: Total expenditure incurre d in two phases is Rs.21, 40,235/-. Although infrastructure development is not cover under Corporate Citizenship Policy, however, proposal for construction of burns-cumemergency 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 oper ations. 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 programm es has been further streamlined.
Work-centre-wise allocations are made each year and programm es are
being execut ed under the compr ehensive guidelines issued on the subject.
Major
emphasis has been given for promotion of education, health and community development and in times of natural calamiti es such as floods, cyclones, earthquak es, 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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