SUGGESTIONS

1.There Should INTRODUCTION

INDUSTRIAL RELATIONS:
The concept of industrial relations refers a complex and dynamic
relationship between employees and employers, employees and trade unions
exist in the organization is said to be Industrial relation.
DEFINITION:
Industrial relation is concerned with the system and procedures used by
the unions and employees to determine the reward for effort and other
conditions of employment, to protect the invest of employed and employers,
and to regulate the ways in which employers treat their employees.
Parties involved in Industrial Relations
1.
Employees
2.
Trade Unions
3.
Employees Association
4.
Employers Association
5.
Government
EMPLOYER WELFARE
After employees have been hired trained and remunerated they need to
be retained and maintained to serve the organization better. Welfare facilities
are designed to take care of well being of the employees. They do not
generally result in any monetary benefit to the employee.
MEANING
Welfare means fairing or doing well and referred to as betterment work
for employees, relates to taking care of the well being of workers and
employers trade unions and government and non government agencies.
TYPES OF WELFARE ACTIVITIES
The meaning of labour welfare may be made clearer by listing the
activities and facilities, which are referred to as welfare measures.
Welfare measures inside the work place.
Welfare measures outside the work place. Management’s success
lies in motivating its workforce and welfare
measures act as the driving force.
Welfare programmes for workers assume special significance in a
country like India where poverty in quite pervasive and where a worker, by
himself, in generally not in a position to create such welfare facilities that can
make his life more pleasant. Where the welfare measures that were facilitated
is closely associated with the productivity of labour, labour turnover,
absenteeism, morale and other economic non-economic considerations of
labour. Now if these measures are been provided by the employees it also
helps in making the work place more congenial.
It is a well known fact that the problem arise in the field of Industrial
Relations such as Indiscipline, high turnover, excessive absenteeism etc.
Which may be caused by maladjustment of the workers to the work
environment. In these situations the labour welfare measures helps to avoid
such disputes and disorders that effect the industrial environment. These
welfare activities not only make the above but also increases the comforts of
the workers and improves their stand and of living. This makes them to adjust
to the environment, reducing displeasures friction and under- utilization of
resources.
It is axiomatic that a stable, well integrated and better satisfied
workforce will help in speeder development and better utilization of resources.
If the working and living conditions are here of the welfare measures, the
workers will be malcontents and will contribute not only towards efficiency but
towards problems.
2 Management’s success lies in motivating its workforce and welfare
measures act as the driving force.
Welfare programmes for workers assume special significance in a
country like India where poverty in quite pervasive and where a worker, by
himself, in generally not in a position to create such welfare facilities that can
make his life more pleasant. Where the welfare measures that were facilitated
is closely associated with the productivity of labour, labour turnover,
absenteeism, morale and other economic non-economic considerations of
labour. Now if these measures are been provided by the employees it also
helps in making the work place more congenial.
 It is a well known fact that the problem arise in the field of Industrial
Relations such as Indiscipline, high turnover, excessive absenteeism etc.
Which may be caused by maladjustment of the workers to the work
environment. In these situations the labour welfare measures helps to avoid
such disputes and disorders that effect the industrial environment. These
welfare activities not only make the above but also increases the comforts of
the workers and improves their stand and of living. This makes them to adjust
to the environment, reducing displeasures friction and under- utilization of
resources.
It is axiomatic that a stable, well integrated and better satisfied
workforce will help in speeder dAlthough the provision of better working and
living conditions were conceived earlier on humanitarian grounds, later it was
also realized that it increased productivity. Effective commitment towards
work, improved morale and also the industrial Peace. This is the fundamental
thesis that has led to the intervention of the state through legislation on labour
welfare. evelopment and better utilization of resources. If the working and
living conditions are here of the welfare measures, the workers will be
malcontents and will contribute not only towards efficiency but towards
problems.
2

1
be Permanent Display about the Welfare Measures in
the O.N.G.C to make
aware of the Employees.
82
2.Railway Reservation Facility to be made available with in the
Company.
3. Lift facility is not provided in the Office building. If this facility is considered,
it would be useful for the employees like physically handicapped, pregnant
ladies, old aged persons who visit the offices for their work etc.
4.Canteen facilities should be improved. The quality of the food and
the
cleanliness in the canteens should be maintained.
5.It is suggested to provide drinking water through a centralized water purified
system instead of the water coolers, as there may be technical problems in
some of the water purifiers in some blocks or there may be some other
related problems.
6.ONGC has provided generous medical facilities to its employees. However
as most of the employees are residing in the town, the dispensary is
functioning in the town, which is three kilometers away from the based office
and residential colony. If a medical doctor and first aid facility is provided at
the base complex, it would be useful for the employees, school children
during emergencies.
7.There should be provide ATM Facilite with in the premises.
8.There is no guest house facility in Rajahmundry for the employees
or for
the employees who visit Rajahmundry from other work centres.
Whenever
83
FINDINGS
1. The Welfare Measures Provided by the company are Good and
81

Satisfactory.
2. 95% Of the Employees are aware of all the Welfare Measure
Provided by O.N.G.C
3. The Employees are Satisfied With Their Job and also with the
Welfare
Facilities Provided to them.
4. The Employees are treated with greater respect and taking care
of
their Employees.
5. The Employees are Satisfied with the Incentives given by the
company.
6.The Employees are Satisfied with the Medical Facilities Provided
by
the Company.
7.The Cleanliness of work area in the company it is Maintained with
high cleanliness.
8.The Employees are not satisfied with the Canteen facility
providing by the
company.
AGENCIES OF LABOUR WELFARE IN INDIA
There are several agencies through which various labour welfare measures are
undertaken. However, the Central as well as the State Governments are the important
agencies through which labour welfare activities are undertaken.
In accordance with the Article 44 of the Constitution, various labour legislations have
been enacted by the Central and State Governments, which have laid down the minimum
standard of working conditions. Therefore, employers have to function as agencies of
labour welfare. Apart from the state and employers, workers organisations, local bodies
and social organisations are also functioning as agencies of labour welfare.
WELFARE AND SOCIAL SECURITY MEASURES
ONGC draws its strength from 40,000+ strong manpower and always values its people.
As a 'Company that cares', it generously extends several welfare benefits to its employees
in the areas of medical care, education, housing, recreation and social security.
To develop women employees, ONGC has set up a Women Development Forum at every
Asset/Basin of the Company to look after the welfare, improvement in work in
conditions, training and development, and redressal of grievances of women employees.
50

LEAVE FARE ASSISTANCE

Employees and members of this families are eligible for leave fare
Assistance(LFA) after putting one year's service as under:
Employees posted at their home-
towns
Once in a block of four years to antny pl any
place in India.
Employees posted at other than
home-town
Once in each calendar year to home-=town and once in a block of four years, in lieu of
one LFA for home, to any place in India than home-town, However in any calendar year,
LFA may be availed of only once.
The term "family members" for the purpose of LFA includes parents, children residing
with and wholly dependent on the employee. Unmarried sisters and minor brothers are
also included in the "family members' for employees who joined ONGC on or before 1st
June 1987.
EDUCATION FACILITIES
(a) Central school
ONGC take special interest in the overall development of the children of its employees.
In pursuance of this objective, ONGC has funded setting up of Kendriya Vidyalayas
(Central Schools) at its main work Centres like Nazira, Sivasagar, Ankleshwar, Baroda,
Mehsana, Dehradun, Cambay, Agartal , Jorhat, Silchar, Lakwa, Ahmedabad, Panvel,
Harzira and Rajahmundry.
51
(b) Children Education Allowance:
In addition to setting up of schools, ONGC reimburses tution fee and
stationery charges to the employees.
(c) Merit Scholarship
ONGC grants Merit Scholarship to the meritorious students from vth Standard to xth
Standard, Intermediate, Graduate, Post-graduate and Professional Courses.
(d)Journey Fare
Children of ONGC employees studying at a place other than the place of posting of the
employees are paid second class fare during approved vacation twice a year from the
educational Institution to join their parents at the place of posting and back. This fare is
admissible where journey is more than 150 kms.
(e) Special Award scheme
In order to encourage brilliant and meritorious wards of the employees and to include
them to maintain and improve level of their excellence, Special Awards are granted to
those wards of the employees who secure positions amongst first then on the merit list of
the Board/University examinations and all India competitions.
52
Hostel Subsidy
ONGC grants Hostel Subsidy to the Children of ONGC's employees,
who stay in a hostel or residential school for the purpose of their academic
pursuits.
(g) Scholarships for SC & ST Students
As a social welfare measure, ONGC has introduced Scholarship
Scheme to encourage deserving students of SC/ST Community for
undertaking higher education. The Scholarships are granted to SC/ST
Students pursuing full-time studies in Graduate Engineering Courses from a
College or an Institution recognized by Central or State Government.
MEDICAL FACILITIES
ONGC has a generous medicare scheme for its employees, their family
members and dependent parents, which can be availed at specialized centres
of certain work centres and also at reputed medical centres in the country.
Medicare is also extended to all retired employees and their
spouses, at
par with those in service, on a nominal contribution.
SOCIAL SECURITY
In order to provide adequate social security cover to the employees, ONGC
has introduced a Composite Social Security Scheme with effect from june
1998.
53

The Scheme covers all the regular employees of ONGC as on the date
of its introduction. A contribution of Rs.260/- per month from the executives
and Rs.130/- per month from non-executives shall be dedicated and
equivalent amount be contributed from the company's fund.
The benefit to the dependents /employees on death while in service /
permanent total disablement resulting in separation from the Corporation is
Rs.10 Lakhs in the case of executives and Rs.5 Lakhs to non-executives.
COMPENSATION FOR ACCIDENT WHILE ON DUTY
The employees of ONGC who met with accident while on duty, are
eligible for compensation under the Workmen's Compensation Act,
1923.
The employees of ONGC who sustain permanent total disablement or
die due to accident or H2S exposure while on duty, are paid financial
assistance of Rs.1.8 lakhs to Rs.12.00 Lakhs depending on the case. This
amount is in addition to all other benefits / relief available to the employees
under various schemes.
GRATUITY
ONGC grants gratuity under ONGC (Death, Retirement & Terminal Gratuity)
Rules, 1995, to its employees for their good, efficient and faithful services.
This gratuity shall be payable to an employee on termination of his/her
employer on superannuation or on retirement or resignation or on death or
disablement due to accident or disease, after rendering continuous service of
not less than five years. The condition of five years services shall not be
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(b) Children Education Allowance:

In addition to setting up of schools, ONGC reimburses tution fee and
stationery charges to the employees.
(c) Merit Scholarship
ONGC grants Merit Scholarship to the meritorious students from vth
Standard to xth Standard, Intermediate, Graduate, Post-graduate and
Professional Courses.
(d)Journey Fare
Children of ONGC employees studying at a place other than the
place of posting of the employees are paid second class fare during approved
vacation twice a year from the educational Institution to join their parents at
the place of posting and back. This fare is admissible where journey is more
than 150 kms.
(e) Special Award scheme
In order to encourage brilliant and meritorious wards of the
employees and to include them to maintain and improve level of their
excellence, Special Awards are granted to those wards of the employees who
secure positions amongst first then on the merit list of the Board/University
examinations and all India competitions.
52
(f) Hostel Subsidy
ONGC grants Hostel Subsidy to the Children of ONGC's employees,
who stay in a hostel or residential school for the purpose of their academic
pursuits.
(g) Scholarships for SC & ST Students
As a social welfare measure, ONGC has introduced Scholarship
Scheme to encourage deserving students of SC/ST Community for
undertaking higher education. The Scholarships are granted to SC/ST
Students pursuing full-time studies in Graduate Engineering Courses from a
College or an Institution recognized by Central or State Government.
MEDICAL FACILITIES
ONGC has a generous medicare scheme for its employees, their family
members and dependent parents, which can be availed at specialized centres
of certain work centres and also at reputed medical centres in the country.
Medicare is also extended to all retired employees and their
spouses, at
par with those in service, on a nominal contribution.
SOCIAL SECURITY
In order to provide adequate social security cover to the employees, ONGC
has introduced a Composite Social Security Scheme with effect from june
1998.
53

The Scheme covers all the regular employees of ONGC as on the

date of its introduction. A contribution of Rs.260/- per month from the
executives and Rs.130/- per month from non-executives shall be dedicated
and equivalent amount be contributed from the company's fund.
 The benefit to the dependents /employees on death while in service /
permanent total disablement resulting in separation from the Corporation is
Rs.10 Lakhs in the case of executives and Rs.5 Lakhs to non-executives.
COMPENSATION FOR ACCIDENT WHILE ON DUTY
The employees of ONGC who met with accident while on duty, are
eligible for compensation under the Workmen's Compensation Act,
1923.
The employees of ONGC who sustain permanent total disablement or
die due to accident or H2S exposure while on duty, are paid financial
assistance of Rs.1.8 lakhs to Rs.12.00 Lakhs depending on the case. This
amount is in addition to all other benefits / relief available to the employees
under various schemes.
GRATUITY
ONGC grants gratuity under ONGC (Death, Retirement & Terminal
Gratuity) Rules, 1995, to its employees for their good, efficient and faithful
services. This gratuity shall be payable to an employee on termination of
his/her employer on superannuation or on retirement or resignation or on
death or disablement due to accident or disease, after rendering continuous
service of not less than five years. The condition of five years services shall
not be necessary where termination of employment of any employee is due to
death or disablement.
54

The extent of gratuity shall be equal to 15 days wage (all

emoluments including DA ) for each completed year of service or part thereof
in excess of six months.
CONTRIBUTORY PROVIDENT FUND
With the objective of making some provisions for the future of the
employee after his/her retirement and for the dependants in case his/her early
death and to cultivate a spirit among the employees, ONGC has introduced
contributory provident fund system. All the employees of ONGC are regulated
by ONGC Employees Contributory Provident Fund Regulations. Every
employee except a trainee or an apprentice has to be a member of the Fund
from the date of his/her joining ONGC.
Every employee has to subscribe equivalent of 12% of salary and
Corporation contributes an amount equivalent to the employees' compulsory
contribution.
Employees are granted advances out of their own share of contribution
for meeting the expenses of the marriage of dependants, higher education of
children, religious ceremonies etc.
POST RETIREMENT BENEFIT SCHEME
The ONGC Self-Contributory post Retirement and Death in Service
Superannuation Benefit Scheme' (PRBS) has been in operation since
01.04.1990 for executives and from 16.11.1995 for non-executives of ONGC,
in order to meet Post-retirement needs of employees and to provide safety
net during the service. This is in lieu of Employees Pension Scheme, 1995
and has been implemented with due approval of the Ministry of
55

54
Petroleum and Natural Gas, Government of India, and the Trust
thereof has
also been duty recognised by the Income Tax Authorities.
The Scheme is compulsory for all employees of ONGC and self-
contributory. ONGC also contributes Rs.100/- per annum. The employees are
admissible for pensionary benefits upto a maximum upto a maximum of 50%
of salary depending upon reckonable service as computed in terms of the
Scheme. Eligibility for pensionary benefit requires minimum 10 years of
continuous and contributory service with ONGC. Refund of contribution is also
admissible to the employees in the event of cessation of employment with out
rendering minimum service of ten years.
PRINCIPLES OF LABOUR WELFARE:
 The labour welfare activities should pervade the entire hierarchy
of
an organization.
 The employees should not bargain labour welfare as a substitute
for wages or monetary incentives.
 Labour welfare must aim at helping employees to help
themselves
in the long sum.
 There should be proper coordination has many and integration of
all labour welfare services in an undertaking.
 The labour welfare work of and organization must be
administratively viable and essentially development oriented.
 The management should ensure co-operation and active
participation of unions and workers in formulating and
implementing labour welfare programmes.
 There must be periodical evaluation of welfare measures and
necessary timely improvements on the basis of feedback.
4
NEED FOR THE STUDY
To understand the extent to which the welfare measures provided by
O.N.G.C, towards their employees. To know the level of awareness of
employee about the various welfare measures provided to them. To study
how the Welfare facilities provided helps in increasing the productivity and job
satisfaction. To learn how welfare services provided to employees help
Organization to build up a stable work force by reducing absenteeism and
labour turnover. To offer useful suggestions for improving the effective ness of
welfare measures. To recognize the importance of welfare measures for
O.N.G.C employees to achieve the organization goals.
The real need for welfare arises from the two basis condition generally
known as the ‘long aim of the job’ and the ‘social invasion of the factory’. The
working environment of any job in factory or mine or a workshop imposes
some adverse effect on the workers because of the heat, noise, and order
fumes etc. involved in the manufacturing process. There are also
occupational hazards and environmental problems inherent and inevitable in
the manufacturing process itself, which cannot be removed or reduced. As a
result productive devices and compensatory benefits have to be provided for
the welfare of the workers. This can be referred to as the ‘Long arm of the job’
 which stretches out its adverse effect on to the worker, long after normal
working hours, affecting physical and mental well-being. Hence, the need for
welfare services within the factory or work place is felt.
Regarding the aspect of ‘social invasion of the factory’ when a worker
comes to Working place, he is not an isolated individual but a member of
society having family members. A worker need to satisfied regards his culture
and living environment. Hence, the imperative needs to provide a welfare
services to satisfy his personal and family needs is felt.
5
OBJECTIVES OF THE STUDY:
The study was conducted in order to achieve the following individual
Objectives:
1. To understand the extent to which the welfare measures
provided by O.N.G.C, towards their employees.
2. To know the level of awareness of employee about the various
welfare measures provided to them.
3. To study how the Welfare facilities provided helps in increasing
the productivity and job satisfaction.
4. To learn how welfare services provided to employees help Organization to
build up a stable work force by reducing absenteeism and labour turnover.
5. To offer useful suggestions for improving the effectiveness of
welfare measures.
6
METHODODLOGY:
The project and mainly based on two sources of the data viz,
1. Primary source
2. Secondary source
Primary source:
The primary source of data is applied for getting the required and
relevant information directly from the Department heads and in the course of
discussion with Executives. The following are the data collected through
primary sources.
a) Type of welfare measures provides O.N.G.C.

b) Refreshment courses conducted in the technical institute.

c) About the course covered through discussion with the employee

and through questionnaires.
Secondary Sources:
The secondary source of data was collected through obtaining records
and files from the Administrative Building of O.N.G.C. and the institutional
guide gave us the remaining necessary information and the staffs relating to
Administration gave me all the necessary information to complete the study.
7
SCOPE OF THE STUDY:
Welfare is very wide one and is more or less synonymous with
conditions of work as a whole. It may include not only the minimum standard
of hygiene and safety laid down in general labour legislation, but also such
aspects of working life as social insurance schemes, measures for the
protection of women and young workers, limitation of hours of work, and paid
vacations. In other cases, the definition is much more limited, and welfare, in
addition to general physical working conditions, is mainly concerned with day-
to-day problems of workers and the social relationships at the place of work.
As the subject of welfare facilities is a very broad one covering a wide
field of amenities and activities, limits cannot be rigidly laid down regarding its
scope for all times. In the final analysis, workers welfare services should
include all extra-mural and intra-mural welfare work, statutory and non-
statutory welfare facilities undertaken by the employers, government, trade
unions of voluntary’ organizations and also social security measures which
contribute to workers welfare such as industrial health, insurance, provident
fund, gratuity, maternity benefits, workmen’s compensation, retirement
benefits, and so on. More specifically,
In the light of above observations, we may define that the term
Employee Welfare is a dynamic concept and no rigid limit for the scope can
be laid down for all industries for all times. However, the scope may be
elaborated to
8
) Enable workers to live a richer and more satisfactory life.
b) Raise the standard of living.
c) Be in line with similar services available in the neighbouring
enterprises.
d) Improve the productivity of employee.
e) Be so designed to accommodate all changes occurring due to
industrialization and technological advancement.
f)Be administratively viable and should have easy access.

Thus, the scope of Employee Welfare covers all intra-mural and extra-
mural welfare activities as well as the statutory and non-statutory welfare
measures undertaken by Government, Trade Unions, or Voluntary
Organizations for the betterment of the workers.
PERIOD OF THE STUDY:
The period of the study is from 1st May 2007 to 30th June 2007. and
the statistical information was been taken to the period of 2006-
2007.
LIMITATIONS OF THE STUDY:
 As the managers of the organization are busy with their work
schedule it was difficult to collect detailed data.
 Time was the major constraint as the mentioned period was not
enough to collect the data in details.
 Survey was done with the sample size of as the employees of
the company work in shifts and as they are busy with their
schedule.
 Some were unable to understand the language in the
questionnaire so they felt it difficult to answer.
9
INTRODUCTION
A WORD ABOUT OIL AND NATURAL GAS
The first oil discovery in India was made in Digboi in Assam in 1889.
Those days nobody thought this discovery was to play in the Country’s quest
for oil and gas later years. Over years grown oil and gas sector played a key
role in the country’s energy sector and account for 54 percent of India’s
commercial energy consumption, as India is eight largest consumer of oil in
the world.
On a conservative basis petroleum product consumption in India is
expected to grow from present level of 97 million tones P.A in 1999-2001 to
about 180 million tones P.A in 2006-07 and further about 370 million tones
P.A by 2024-25 and demand for natural gas which was 110 ton million
standard cubic meters per day in 1999-2001 is expected reach 231 million
cubic meters per day by 2006-07 and further to 391 million cubic meters per
day by 2024-25
India proved the oil and gas reserves are 0.5 percent of world reserves
where as oil production is 0.9 percent and gas production 1.2 percent of total
world production respectively. The sedimentary basin area of the country is
about 4 percent of the total world sedimentary area.
India is endowed with 26 sedimentary basins along with deep-water
sedimentary areas. All 26 sedimentary basins of the country are not alike from
the oil and gas prospectively point of view based on degree of exploration and
prospectively as presently known these basins have been divided into four
categories. The highly prospective basin included Bombay
10

offshore; cambay, upper Assam, Assam-Arakan, Krishna-Godavari and

Cauvery basins and low prospective basins are Ganga, Vindhya, Kerala-
Konkan, Mahanadi and Bengal basins.
The great strides have been made in oil and gas exploration by two
national oil company’s namely oil and Natural Gas corporation Ltd; (O.N.G.C)
and oil India ltd;(O I Ltd;)
A number of new discoveries have been made by in the Gulf of
Cambay, Krishna Godavari and Rajasthan basins by private/joint venture
companies. In deep water areas of the Krishna Godavari basins many large
prospects are under drilling. This would result in finding several gas fields
along the east coast with 3-4 years. This area can produce 25-30 percent
more gas over the current production.
As private participation is increased for regulatory the up stream of oil
and gas sector a regulatory body was set by Government, the Director
General of Hydrocarbons(D.G.H) under ministry of Petroleum and
NaturalGas.
Till QI FY99, the Indian oil & gas industry has been under state control
vide the Administered Pricing Mechanism (APM). The production pattern,
capital expenditure and pricing of petroleum products were determined by the
state. The pricing system assured all players a normative post-tax return of
12% on net worth.
11
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INTRODUCTION
A WORD ABOUT OIL AND NATURAL GAS
 The first oil discovery in India was made in Digboi in Assam in 1889.
Those days nobody thought this discovery was to play in the Country’s quest
for oil and gas later years. Over years grown oil and gas sector played a key
role in the country’s energy sector and account for 54 percent of India’s
commercial energy consumption, as India is eight largest consumer of oil in
the world.
On a conservative basis petroleum product consumption in India is
expected to grow from present level of 97 million tones P.A in 1999-2001 to
about 180 million tones P.A in 2006-07 and further about 370 million tones
P.A by 2024-25 and demand for natural gas which was 110 ton million
standard cubic meters per day in 1999-2001 is expected reach 231 million
cubic meters per day by 2006-07 and further to 391 million cubic meters per
day by 2024-25
India proved the oil and gas reserves are 0.5 percent of world reserves
where as oil production is 0.9 percent and gas production 1.2 percent of total
world production respectively. The sedimentary basin area of the country is
about 4 percent of the total world sedimentary area.
India is endowed with 26 sedimentary basins along with deep-water
sedimentary areas. All 26 sedimentary basins of the country are not alike from
the oil and gas prospectively point of view based on degree of exploration and
prospectively as presently known these basins have been divided into four
categories. The highly prospective basin included Bombay
10

offshore; cambay, upper Assam, Assam-Arakan, Krishna-Godavari and

Cauvery basins and low prospective basins are Ganga, Vindhya, Kerala-
Konkan, Mahanadi and Bengal basins.
The great strides have been made in oil and gas exploration by two
national oil company’s namely oil and Natural Gas corporation Ltd; (O.N.G.C)
and oil India ltd;(O I Ltd;)
 A number of new discoveries have been made by in the Gulf of
Cambay, Krishna Godavari and Rajasthan basins by private/joint venture
companies. In deep water areas of the Krishna Godavari basins many large
prospects are under drilling. This would result in finding several gas fields
along the east coast with 3-4 years. This area can produce 25-30 percent
more gas over the current production.
As private participation is increased for regulatory the up stream of oil
and gas sector a regulatory body was set by Government, the Director
General of Hydrocarbons(D.G.H) under ministry of Petroleum and
NaturalGas.
Till QI FY99, the Indian oil & gas industry has been under state control
vide the Administered Pricing Mechanism (APM). The production pattern,
capital expenditure and pricing of petroleum products were determined by the
state. The pricing system assured all players a normative post-tax return of
12% on net worth.
11

Decontrol measures were initiated and retention pricing for refineries

has been abolished w.e.f Apr ’98. However, controls on 5 products (MS, HSD,
ATF, SKO AND LPG) that contribute 70% of the volumes, continue to remain.
Subsidies on LPG and SKO will be limited to 15% and 33% of import parity
prices and tariff of crude and petroleum products will be reduced to 0-5% and
15% respectively.
The major gainers of deregulation process will be old players with old
and depreciated units like – MRL,CRL,BPCL,HPCL, IOCL etc. New refineries
like MRPL, Essar Oil and Reliance Petroleum will be hard hit, as their refining
margins under the market determined pricing mechanism would be lower than
that under the APM. In addition, net profit will be affected by high interest and
depreciation outgo. It is important to note that a six-mtpa refinery (current
minimum economic size)will cost Rs36bn.
 Global oil & gas production is skewed with most of the reserves
concentrated in the Middle East, which supplies to deficit countries in the
Americas and the Asia-Pacific. As at end 1998, the world had proven oil
reserves of a little over I bbl and proven gas reserves of little less than 140
trillion cubic meters.
Amongst players, ONGC has a virtual monopoly in upstream crude oil
and gas production, while GAIL has a monopoly in marketing and distribution
of gas. The refining and marketing sector is again dominated by PSU s, which
account for nearly 95% of the total refining capacity and 100% of products
marketed. JOIL is the market leader in both refining and marketing followed
by BPCL and HPCL. MRPL was the first non-PSU in the sector , followed by
Reliance and Essar by 1999-2000.
12

Stock valuations continue to remain depressed. The two negative

factors for the sector are dim outlook on global refining margins and supply of
stock in the form of government disinvestment. Investors should use all
disinvestment programs as a buying opportunity because the long-term
fundamental story is still intact.
GLOBAL SCENARIO
Primary energy consumption
Primary energy is a critical input and in line with economic growth, as
observed since the late seventies. The world consumption of energy
increased from about 4,800 million metric ton of oil equivalent (mmtoe)in 1970
to about 8,877 mmtoe in 1999, representing a CAGR of about 1.98%. The
growth in consumption would have been much higher but for the
disintegration of the former Soviet Union, whose energy consumption levels
dropped by more than 35% in the last five years.
The average per capita consumption of energy vis-à-vis
hydrocarbons
(kgOE)
Country/Region
Primary Energy
Hydro-Carbons
World
1454
927
India
285
113
China
688
169
Pakistan
264
231
Bangladesh
81
80
Japan
3962
2520
U.K.
3856
2719
Germany
4120
2539
Source: British Petroleum Statistics – 1998
Importance of oil & gas in primary energy
13

Oil & Gas constitute a significant 63% of the primary energy

consumption. The situation in Asia! Australia is different with coal still
remaining the primary source of energy. However, the scenario is rapidly
changing, for instance in the last decade, oil & gas consumption has grown at
more than 70% in the Asia Pacific region vis-a-vis 15% in the rest of the world
(excluding the former Soviet Union, where the growth rate has been
negative). The Asia Pacific region is thus gaining importance in the oil & gas
map, with India and China together accounting for 47.50% of the total
demand in this region.
 In the last decade, natural gas has taken the lead in growth and in the
emerging energy scenario, it is seen as an environment-friendly substitute for
relatively scarcer – oil. Consumption of natural gas has grown by more than
26% vis-à-vis 15% in consumption of oil.
Oil and gas reserves
As at end 1999, the world had proven oil reserves of a little over 1,055
million barrels (about 140,900 mmt) while that of gas, a little less than 140
trillion cubic meters. At the current rate of production, oil reserves are likely to
last for about 40 years and natural gas reserves for about 65 years. The
reserves are however unevenly distributed with the Middle East countries
together holding 65% of oil and 34% of gas reserves.
Oil-Widely traded energy source
14

Considering the fact that oil & gas would be available in the foreseeable
future without any constraint, oil & gas would continue to be the most widely
traded energy source. World oil trade is estimated to be 38 million barrels a
day. The inherent advantages of oil &gas in terms of versatility ease in
handling & transport and adaptability to new environmental standards would
make it the most preferred fuel. Though reserves by themselves are not a
cause for worry, experts feel that as the reserves/ production ratio falls, the
cost of exploration could rise with increased investment in development of
resources leading to a surge 3 prices.
World refining capacity- Reaching record levels(Introduction)
As of 1999,the world’s total refining capacity was close to 82,861
thousand barrels a day. The refinery throughput in the year 1999 stood at
71,126 thousand barrels a day , representing an average capacity utilization
of about 85%.
Oil &gas prices
Oil and gas prices are closely linked to the policies and capacity
utilization of OPEC. Thanks to the two oil price shocks, oil prices which were
reasonably flat at about US$3/ bbl till early seventies spiked to more than
US$3/bbl in 1973-74 and again to more than US$25/ bbl in 1979-80. The
prices have thereafter hovered between US$15-25/ bbl but for a short blip in
1990 due to Iraqi invasion Kuwait. In1998, oil prices crashed once again to a
decade low of US$11/ bbl due to excess capacity, poor off-take and an overall
slowdown in world economies. Subsequently OPEC reduced crude output,
which escalated prices from $11/ bbl in 1998 to $32/ bbl in
15

June 2000. Later though POEC increased production twice (by 1.45mbpd in
September ’99 and 0.7mbpd in June’00), the quantum was insufficient to
tame prices. The world market now banks on increased supply from non-
OPEC countries namely Mexico, Oman and Norway.
The product prices do not necessarily move in tandem with the crude oil
prices but as a direct function of regional refining capacities vis –a-vis
demand & supply.
Natural gas prices on the other hand have also increased from US$1.5-
2.5 per mbtu in 1998 to $4.36 per mbtu in June 2000. Unlike crude oil , there
are no benchmarks for natural gas and the price is based on calorific value of
gas, local demand & supply and cost of alternate liquid fuels. Huge disparities
exist in the price of natural gas not only between countries but also within a
country.
Energy scenario in India
Primary energy consumption in India Excluding the non-commercial
energy sources like wood and animal waste, the primary energy consumption
in India was 285kgOE in 1998 as against 5800kgOE in North America. Coal
continues to be most important source of energy, constituting more than 56%
of the total energy consumption though there is a conscious shift towards oil
as alternate fuel. The over all demand for oil products increased from
74mtpain 1996 to 90mtpa in 2000, representing CARG of 5%. At current
levels the estimated demand by 2005 is expected to be around 114mpta while
the refining capacity would be around 155mtpa.
Oil & Gas – Reserves & Production16
There are 26 sedimentary basins in India covering an area of 1.78 mn sq kID,of which
1.46 mn sq km are onshore and 0.32 mn sq km are offshore in water with up to 200
meters in depth. The total prognosticated reserves are estimated at 20 bbl of oil, but till
date only 27% of this has been discovered. A total of 5.4 bbl of oil (about 732 mmt ) has
thus been discovered with the annual production in the region accounting to 35-40
nmmtpa. These reserves are likely to last for the next 20 years. However, the current
production level of 35 mmtpa would be highly inadequate, especially once the planned
refining capacities come on stream a large portion of the crude would need to be
imported.
As of 1995, the proved gas reserves were about 660 billion cubic meters (bcm) while
production as of 1999 was 27bcm. At current production levels these reserves are likely
to last for about 30- years.
Natural Gas Demand (MMSCMD)
Refining Capacities
The refining capacity increased from 69.14mtpa in FY99 to 109mtpa
as of January 2000 i.e. about 2.7% of the world refining capacity. Currently
Year
Demand
1999-2000
110
2001-2002
151
2006-2007
231
2011-2012
313
2024-2025
391
17
there are about 17 refineries of which 7 are owned by Indian Oil Corporation
(IaC),2by Hindustan Petroleum Corporation Ltd(HPCL) and Madras
Refineries Ltd (MRL), 1 BY Bharat Petroleum Corporation Ltd (bpcl),
Cochin Refineries Ltd (CRL), Bongaigoan Refinery &
Petrochemicals Ltd (BRPL), Numaligarh Refineries Ltd (NRL), Mangalore
Refinery & Petrochemicals Ltd (MRPL) and Reliance Petroleum Ltd (RPL) .
Sector controls
Given the criticality of oil & gas in the national economy, the sector was
completely regulated till 1991. With the ushering of liberalization, the sector
was partially opened with decontrol of lubricants, decanalization of several
products and permission to parallel marketers to sell LPG and SKO.
Currently, administered pricing mechanism is present only in the marketing
sector with the government ruling the prices of most petroleum products. With
the ballooning demand for petroleum products and no fresh discoveries of oil
wells, imports have been continuously swelling. During FYOO, India imported
44mton of crude and 12mnton of products.
The import bill for FYOO was Rs528bn and if the situation continues, it
could have serious repercussions of the balance of payments situation as well
as smooth & continuous availability of energy. The only solution to this
problem is to attract large investments, both in terms of capital and
technology so as to boost production levels and cater to the growing demand.
To do this, all the controls in the sector would have to be removed. The
government is also reacting in this direction.
Business risk The uncertainties involved in finding commercial
quantities of oil & gas and the intensive capital required for venturing into the
business make E&O prone to great business risk. Tens of millions of dollars
may well have been spent without discovering a viable oil & gas field. Given
this inherent risk in business where inputs can be determined and outputs are
probable, the successful ventures have to generate sufficient profits for the
unsuccessful ones to keep the business going. An estimated US$50mn may
have to be spent over a period of 3 to 6 years, before one realistically
conclude whether the field is fit to be fully developed for commercial
exploitation.
In order to counter this business risk, E7P companies are spreading
both horizontally and vertically. Horizontal risk spreading envisages
acquisition of large acreage in varied geological environments consisting,
various categories of sedimentary basins. Vertical risk spreading envisages
farming-out participating interest to other oil companies in the oil fields owned
by the other companies. Risk is thus spread widely.
EXPLORATION & PRODUCTION SECTOR IN INDIA
Historical perspective
Exploration activity started in India way back in 1866 in the north
eastern state of Assam, just seven years after drilling of the first oil well in
Pennsylvania, USA. For about a century the E&P activity was restricted to the
northeastern part of the country and till early 1960’s the total crude production
in India was only about 10,000 bpd. Burma oil was the only company
engaged in E&P. with the demand growing , the government recognized the
need to explore hydrocarbon resources and accordingly set
19

up Oil & Natural Gas Commission (ONGC) in 1956. Burma oil was also
merged with Oil India Ltd (OIL), this was however taken over by GOI in
1981.ONGC was converted into a public ltd company in 1993. ONGC and OIL
enjoy the status of National Oil Companies (NOC) and have a duopoly with
about 90% and 10% share respectively. The NOC market their produce
directly except natural gas, which is distributed through Gas Authority of India
Ltd(GAIL).
Quality of crude produced in India
The crude produced by ONGC in the Bombay offshore basin, typically
about 38° API with about 0.03% sulphur, is considered to be very light and
sweet and comparable with Nigerian Light Crude. The crude produced in the
Onshore fields typically is about 32° API with about 0.20% sulphur and
comparable with Minas crude from Indonesia. In our opinion, the crude
produced in the Bombay High would trade at a premium to Saudi Light/ Brent
and other crude would approximately equate with Brent prices, strictly from
purity and specific gravity of point of view.
Private sector participation and Production-Sharing Contracts(PSCs)
Private sector participation in the E&P sector started in 1974, by
awarding exploration license. Although three licensing rounds were completed
by 1986, no progress was achieved and the contracts had to be relinquished.
The fourth licensing round was completed in 1991 when two blocks of the
Bombay Offshore basin were awarded licenses. In 1993, the Government
introduced a policy of round-the –year bidding and till 1995, eight licensing
rounds were completed. Till the 8th round, the exploration cost was borne by
the private parties and NOCs had to bear minimal license
20

fees and enjoyed a carried interest of 30%. On discovery , the carried

interest got converted to a participation interest and all revenues were first
applied for recovery of exploration costs and the surplus was shared in the
ratio of participating interest.
A major departure was made in the 9th round and bidding terms
demanded that the contractor indicate the participating interest he is willing to
concede to NOC, which can be a minimum of 25% and a maximum of 40%.
Thus it proved to be a joint venture with exploration & production costs being
shared in the ratio of participating interest.
Till date, four oil fields have been given for commercial exploitation to
private sector players, of which the Videocon / Marubeni has bagged the
Ravva oil field combine and the Tapti, Panna & Mukti oil fields have been
bagged by the Reliance/ Enron combine.
The Government has also floated two rounds of licenses for conducting
speculative seismic surveys. The licensees are required to conduct geological
surveys and make available data to upgrade the information on the country’s
hydracarbon potential on a profit sharing basis. These speculative rounds
have however elicited poor response .
The reasons for poor response both for exploration and seismic
surveys can be summarized as under.
Inadequate availability of geophysical data with the perception that the
blocks being offered do not have the geo-potential for being developed in
commercial fields.
21

• The size of blocks offered is too small.

• Time taken to award a contract runs into several years.

• Several post-contract clearances are required to start the

operations.
Marketing scenario
Currently, IaC, HPCL, BPCL and IBP market all the petroleum products.
With the introduction of parallel marketing scheme, SKO and LPG is being
marketed by a few new entrants into the sector. However, their share of
marketing is miniscule, given the price distortion between the products
marketed by PSU oil majors. Thus, their market shares are not expected to
grow unless prices of these products marketed by PSU oil companies are
determined. In the year 1995-96, of the estimated total consumption of 74,688
tmt about 690 tmt was sold by parallel marketers, 72,542tmt was sold by PSU
majors and the balance being, direct imports by industrial consumers.
The market share of these companies during the last three years is
given
below.
22
YEAR
IOCL
BPCL
HPCL
IBP
Tmt
%
Tmt
%
Tmt
%
Tmt
%
2001/
02
3630
0
55.4
3
1322
8
20.2
0
1258
8
19.2
2
2991 4.57
2002/
03
3984
6
54.9
4
1478
0
20.3
8
1415
0
19.5
1
2127
3
43.51
2003/
04
4218
0
54.5
2
1580
0
20.4
3
1540
0
19.9
3
3475 4.49
While the market share of IOC and IBP has been continuously falling,
the market shares of BPCL and HPCL have been on the rise.
Of the products marketed by oil companies, MS & HSD can be
categorized as retail products where the oil companies fight for the market
share and sale growth. A portion of MS/HSD is also sold to direct industrial
consumers. The importance of these two products lies in the fact that they
together not only constitute more than 50% of the total sales volumes but also
form the constituents of aggressive growth.
The break-up of MS/HSD sales into retail and direct, over the last
two
years is below.
MS/HSD – Retail and Direct Sales (tmt)
The share of each of the oil companies in MS & HSD segment – wise for
the last 3 years is given in the table.
Year
MS
HSD
Total Total
23
Transportation and distribution of products
Considering the geographical spread of the country, the infrastructure
for movement of petroleum products is woefully inadequate ofor handling the
growing volume of POL products. Not much thought has been given for
development of pipelines. Due to non-availability of tank-wagons, oil
movement is undertaken by road which is not only hazardous and polluting
but also 15 to 20 times costlier (in terms of energy consumption as per SRC
report ) compared to pipelines and 5 times costlier than railways. In a country
where oil is being imported, expenditure on movement of POL products by
road results in serious drain of foreign exchange. The losses due to road/rail
transportation are also 3 to 5 times higher compared to transportation through
pipelines.
The current mode of transporting POL products is discussed in the
following paragraphs.
25 exploratoin& production
• Increasing the competency of ONGC & OIL by empowering the
Board of Directors to diversify into downstream, allowing them to market their
own produce, providing level playing field to all companies in bidding for
blocks, relinquishment etc and providing international price for domestic crude
produced by them.
• Enhancement of domestic production through reserve accretion
in
India and abroad.
• Acquisition and absorption of new technology for reserve
accretion. Mobilization of venture capital required for building
national oil industry.
26
• Simplifying procedures in awarding production-sharing
contracts,
provision of fiscal incentives and rationalization of tariff structure.
• Assignment of regulatory and monitory functions to Directorate
General of Hydrocarbons (DGH ) which shall be an autonomous
body.
SALIENT FEATURES OF NEW EXPLORATION LICENSING
POLICY (NELP),1997
• International price to be paid for crude oil extracted from new
wells to all companies including ONGC & OIL.
• On all new findings, cess abolished and royalty made advalorem
at12.50% for inland and 10% for offshore areas. For deep-water areas
beyond 400 meters depth, royalty will be 5% for the first 7 years.
• Tax holiday for 7 years after commencement of commercial
production from blocks in northeastern region.
• Total freedom to market crude in the domestic market.
• Any company can bid directly without participation of ONGC or
OIL as against the earlier stipulation of mandatory participation of
ONGC/OIL up to 40%.
27
• ONGC/OIL to compete with other companies for winning
licensees.
Natural gas
• Market deregulation to be done in phases as the domestic
industry
is in a nascent stage.
• In the initial phase the sector may be opened up for private
participation.
• A regulatory body that shall lay down transparent rules required
to
ensure a level playing field, to lay down safety practices, to ensure
environment protection, fair return to investors and to prevent abrupt price
movement protection, fair return to investors and to prevent abrupt price
movements.
• Freedom to foreign companies/ private sector parties to set-up
terminals and pipelines and freedom to import store and distribute
LNG.
• Freedom to PSC awardees to transmit, distribute and market the
gas produced by them.
• Freedom for setting up spur-lines and city distribution lines.
• Introduction of Common Carrier Principle for pipelines. In the
next phase when optimal infrastructure has been created, all further
28

steps to be taken for complete deregulation subject to compliance

of rules laid down by regulatory body.
• Pricing of natural gas to be in-line with international prices.
REFINING &MARKETING
Refineries to be decontrolled first followed by upstream and last by
marketing sector.
Total freedom to refineries to decide their product mix to optimize
their profitability through better yields and value added products.
Decanalisation of petroleum products
Continuation of administered pricing for mass consumption products
till the national economy is ready to accept market-determined
prices.
Cross subsidization of products to be done away and all subsidies to
be given through budgetary allocations in a transparent manner.
Marketing deregulation to be done in phases, by giving freedom to oil
companies to appoint dealers/ distributors, by withdrawal of SPE mechanism
and thereafter-full decontrol.
Tariff & pricing reforms
The pricing and tariff reforms to be done in phases as per timetable
given in next paragraph.
29

Rationalization of tariff structure by bringing down customs duties to 0-

5% and providing a maximum tariff protection 25% on famished products.
Tariff rates to be bound as per WTO.
Future scenario
With the widening gap between demand and supply, both for oil & gas,
the outlook for the upstream sector is extremely positive. The decontrol of the
sector would give more strength to these companies to pursue their goals with
greater vigor. In our opinion, natural gas could turn out to be a dark horse for
the E&P and Distribution companies. The New Exploration Licensing Policy
has already given a thrust and direction to the reforms in the upstream sector,
with virtual decontrol of the sector for oil & gas explored and produced in new
oil fields.
A PROFILE OF “RAJAHMUNDRY ASSET O.N.G.C Ltd;
30

The Oil and Natural Gas Corporation Ltd, (ONGC ) the largest oil
exploration and production (E&P) company in our country producing crude oil,
natural as and LPG stands among the top 25 oil companies in the world with
an annual turnover of US$ 4 Billion and is the number one in the Indian
Corporate sector in terms of assets, profits and overall performance. The
progressive presence of this oil giant has been felt in the state of Andhra
Pradesh since 1978.
The O.N.G.C’s exploration for oil and natural gas in the Krishna
Godavari project has provided sufficient inputs and momentum to the
development of the state too.
O.N.G.C IN KRISHNA GODAVARI PROJECT
The planned exploration work of oil and gas by O.N.G.C in the southern
part of India started was way back in 1958. the geo-scientific surveys led to
the discovery of a major petroliferous sedimentary basin, which is now
famous as “Krishna Godavari project” covering an area of 20,000 sq. km. on
land in Andhra Pradesh and about 25,000 sq. km Offshore (up to 200 m water
depth ). The gas was discovered in the first well drilled in the Narasapur field
1978 and in 1980 oil and gas were discovered in the first well on G-1 structure
in the Godavari offshore. After the start of commercial gas supply to its first
consumer M/s Delta Paper Mills in February 1988, the Krishna Godavari
Project (KG Basin ) has come up on the oil map of mIndia with its
headquarters at Rajahmundry in the East Godavari district of Andhra
Pradesh.
As on date, more than 350 wells have been drilled in the Krishna
Godavari Project leading to the discovery of around 125 oil and gas
bearing
31

wells. The success ratio of drilling in Krishna Godavari Basin 1:3 which are far
above the world average 1:9. the major oil producing fields are Kesanpali
(West), Kaiikalur, Lingala and Mori and gas producing fields are Mandapeta,
Pasarlapudi, Ponnmanda, Penumadam, Razole, Elamanchilli, Lankapalem,
Advipalem, Kesavadasapalem, Kulkipalli, Narasapur Endamuru and Tatipaka.
The average oil production, which includes the condensate from the gas, is
above 200 tons per day and the average gas production on daily basis is
approximately four million standard cubic meters (MMSCM)i.e. 40lakh cubic
meter (LCM) per day.
At present seven on-land Rigs, Six EPS (Early Production System)
and three CGS (Gas collection Station) are being operated by O.N.G.C in
Krishna Godavari Project, for exploration and production activities.
Additionally, it has also taken up various projects for expansion of oil and
gas installations at Kesanpalli and Advipalem. Installation offshore well
platform at GS-15 and GS-23 a Mini refmery at Tatipaka, gas supply form
isolated gas wells, etc. is also in progress, O.N.G.C has emphasized high
thrust for exploration activities by adopting highly sophisticated and state of
the are technology for extensive drilling operations.
During the current planed period for more and more oil & gas in the
Krishna Godavari project O.N.G.C is optimistic of finding a large petroliferous
field in Andhra Pradesh for sustaining the efforts of Exploration & production
activities thereby stimulating industrial growth in the Krishna Godavari project
and the adjoining areas. A workforce of around 1500 professionals of
O.N.G.C are committed in this relentless search for which the oil company
has already incurred a cumulative expenditure of around Rs. 3000 crores.
32

The Krishna Godavari project comes under Southern Region

Business Centre of O.N.G.C had is one of the prominent and viable projects
which shares around 10% of the O.N.G.C total investment made in the
country for exploration and production of Oil & Gas.
O.N.G.C activities in Krishna Godavari Basin committed in the
relentless search of oil & gas spread over 20,000 sq. k.m in onland and
25,000 sq k.m in offshore of Andhra Pradesh. O.N.G.C K.G project us
supplying up to 40 lakh cubic meter of gas per day to various industries like
NFCL, SPGL, GVK, APSEB, SPEC etc; O.N.G.C K.G Project is expected to
double the gas production in a couple of years and wisher to stimulate
industrial growth in the state of Andhra Pradesh encouraging the use of gas
as a cost effective, viable clean fuel. O.N.G.C has emphasized high trust for
exploration activities by adopting extensive drilling operations during the
current planned period so as to discover more and more oil and gas field in
Krishna Godavari Basin.
O.N.G.C is optimistic of finding a large petroliferous field in Andhra
Pradesh for sustaining the efforts of Exploration and Production activities,
thereby stimulating industrial growth in Krishna Godavari Basin and the
adjoining areas.
 O.N.G.C drilling activities in the Krishna Godavari Project indirectly help
in creating roads and bridges in the remotest areas. So far O.N.G.C has
constructed about 130 km. of new roads, improved about 600 km. of existing
roads and developed four bridges.
Aesthetic, cultural and social patterns and historical characteristic of
the areas covered by or adjacent ot the O.N.G.C prefects
shouldunduly disturbed by the project activities. Scenic landscapes, historical
heritage and cultural monuments should be preserved and the environment
around them should be kept clean and hygienic.
As far as possible, a minimum area of 500 meters from the high tide
mark in respect of coastal projects located near river banks should be kept
clear of all structures so that beach activities or river front development are
not adversely affected.
Effective mechanisms for monitoring the environment and for collection
of the required data of various parameters of the environment for the
purposes of surveillance should be set up within each project.
Work environment in the operational areas should be conductive to safe
and healthy working conditions. Good housekeeping is an integral part of
sound environment management.
Promoting a healthy, safe, productive, and aesthetically satisfying
environment is the responsibility of O.N.G.C. every effort should be made to
promote positive environmental education and create environmental
awareness at all levels.
KRISHNA GODAVARI PROJECTG IN FUELLING DEVEPMENT
A Social responsible organization:
34

O.N.G.C legend has done much more than exploring and producing oil
and natural gas. underlying in its corporate culture is the good practice of
contributing
 towards community development and social welfare
programmes especially in and around its operational areas. O.N.G.C has
been working tirelessly and sincerely to help people in bettering their quality
of life. It has not only met the expected standards but also has traveled far in
carrying out the self- assumed social responsibilities. A few of the
contributions are :
Employment Generation:
Through a variety of big and small contracts like public transport
maintenance of civil works, trading, ancillary industries providing goods and
services etc. employment generation efforts are being made. These efforts
have helped thousands of unemployed youth during the pas four decades of
the dedicated services of O.N.G.C in Andhra Pradesh. Special measures are
also taken on regular basis to split major works into several smaller parts thus
enabling more and more people to benefit, even at the cost of increasing
internal administrative work. Two Vocational Educational Centers for Women
(VEC) were also established in Coastal Andhra Pradesh by O.N.G.C.
Developing local entrepreneurship:35
not be Orders for purchase of materials were placed as per availability
in the local market thus generating employment and trading opportunities of
the small-scale local entrepreneurs.
Community Development Programmes:
Towards ameliorating the socio-economic condition of the people
O.N.G.C, Krishna Godavari Project has been earmarking and distributing
substantial grants under different heads. A number of schemes were included
in the community development programmes under the heads Medicare,
health education, sports and culture etc; all of which help in bringing smiles to
the faces of prople belonging to the weaker sections of society. Apart from
grants in aid that are routinely donated to social, cultural expenditures on
construction of infrastructure development, activities like improvement of
community life, special purpose grants for specific projects, SC/ST annual
component plans and social service by the “Mahila Samithi” are also taken
up. So far O.N.G.C has spent around Rs. 50 crores for socio- economic
development including construction of roads and bridges in the state of
Andhra Pradesh.
In areas indicated by government of Andhra Pradesh in the East, West
and Krishna Districts, O.N.G.C has come forward to jointly take up repaid
works of around 140 km of roads. This is apart form the roads it constructs
while establishing operations these areas. O.N.G.C has also donated for the
construction of Bridge over.
Vishista Godavari linking the island area. Recently O.N.G.C has
contributed Rs. 10 crores for the proposed inter-state bridge
between Yanam
36

in Pondichery and Yedurlanka in Andhra Pradesh across to river Gowtami /

branch of Godavari At times of natural calamities which are becoming
increasingly common in the coastal districts of Andhra Pradesh, O.N.G.C
monetary contribution to the Chief Minister’s fund and mobilization of
necessary machinery and equipment to the calamity hit place for rescue are
some of the social responsibilities of O.N.G.C.
O.N.G.C has paid around Rs.60 crores to Andhra Pradesh state
Government towards royalty and sales tax during the year 2000-01. with a
focused division on the all round development of the community in the places
of its operations as well as beyond, O.N.G.C has been working relentlessly
and sincerely. Its share in various fronts like education, literacy drive,
cleanliness, environment protection and safety, health care and sports us and
impression about the human face of O.N.G.C Krishna Godavari Project in
Andhra Pradesh.
O.N.G.C is looking forward a special social and political environment
conducive for increasing the efficiency and productivity in the field of oil and
gas exploration and production in the state of Andhra Pradesh This will
directly result in greater prosperity of the state through enhancing the
availability of vital energy supplies for various Industrial operations.
The following are the O.N.G.C’s HR Vision and Mission and Policies
HR Vision:
37

To attain organizational excellence by developing and inspiring the true

potential of company’s human capital and providing opportunities for growth,
well being and enrichment”,
HR Mission:
To create a value and knowledge based organization by inculcating a
culture of learning, innovation & team working and aligning business priorities
with aspiration of employees leading to development of an empowered,
responsive and competent human capital”.
HR Objectives

• To develop and sustain core values.

• To develop business leaders for tomorrow.

• To provide job contentment ;through empowerment,

accountability
and responsibility.
• To build and upgrade competencies through virtual learning,
opportunities for growth and providing challenges in the job.

• To foster a climate of creativity, innovation and enthusiasm.

• To enhance the quality of life of employees and their family.

• Inculcate high understanding of ‘Service” to a greater cause.

HR STRATEGY
38

• To meet challenging demands of the business environment,

focus of
the HR Strategy is on change of the employees’ ‘mindset’.
• Building quality culture and resources.
• Re-engineering and redeployment for maximizing utilization of
HR
potential.
• To build and upgrade competencies through virtual learning,
opportunities for growth and providing challenges in the job.

• Re-strengthening mutual faith, trust and respect.

• Inculcating a sprit of learning & enjoying challenges.

• Developing Human Resource through virtual learning, providing

opportunities for growth, inculcating involvement and exposure to
benchmarking in performance.
ROLE OF HR
39
• Alignment of HR vision with corporate vision.
• Shift from support group to strategic partner in business
operations.
• HR as a change agent.
• Enhance productivity and performance by developing employee
Competency and potential.
• Developing Professional attitude and Approach.
• Developing ‘Global Managers’ for tomorrow to ensure the role of
global players.
Measuring HR Performance
• HR Parameters have been incorporated in the MOU by ONGC
since
1994-95, to systematically and scientifically evaluate effectiveness
of
HR Systems, which enables and facilitates time bound initiatives.
• HR Parameters of MOU for 2000-2001.
• Transformation of ONGC-HR as facilitator and Change Agent for
Pilot Implementation at WRBC.

• ERP for HR-Project SHRAMIK.

• Training and development.

• Action Plan and Implementation for achieving HR mission and

objectives.
• Roll out of Succession Planning Model for identified key
positions.
HR AUDIT
• IR for enhancing efficiency and productivity.
40

• Introducing the concepts of mentoring and knowledge

management.
• Conducting a Climate Survey to identify areas for OD
interventions.
A Motivated Team
HR policies at ONGC revolve around the basic tenet of creating a highly
motivated, vibrant& self-driven team. The Company cares for each & every
employee and has in-built systems to recognize & reward them periodically.
Motivation plays an important role in HR Development. In order to keep its
employees motivated the company has incorporated schemes such as
Reward and Recognition Scheme, Grievance Handling Scheme and
Suggestion Scheme.
INCENTIVE SCHEMES TO ENHANCE PRODUCTIVITY
• Productivity Honorarium Scheme.

• Jon Incentive.

• Quarterly Incentive.

• Reserve Establishment Honorarium.

• Roll out of Succession Planning Model for identified key

positions.
•

Group Incentives for cohesive team working, with a view to enhance

Productivity.
INDUSTRIAL RELATIONS AND LABOUR WELFARE
AT A GLANCE
41
INDUSTRIAL RELATIONS:
Over the years, with the paid industrialization of India, a massive
organized sector employing a large work force has come to occupy an
important and visible part of the country’s economic life.
 Hence a new industrial culture has to be taken into account. The top
management usually dealt only with major crisis situations. The industrial
relations function was not given the importance it deserved, both in terms of
manpower as well as in terms of continuity of action or though.
The cost of human resources as a percentage of operating expense in
the organized sector has been showing a steady increase. Obviously service
sector industries will have a larger percentage, but even in manufacturing it
has increased steadily.
The Government has had a major role to play, as a leading actor in
Indian industrial relations (IIR). It has played a dual role-one as the i8nitiator
of policy and the other as an employer, or owner, by setting up an extremely
large public sector.
The government has also tried to build bridges of partnership through
the various schemes of participation between the management and the
employees. All this was initiated immediately after Independence, whereas in
the developed countries, labour legislation and government controls were
slower to evolve.
However, in India efforts were made to remove some of the appalling
conditions as they were completely out of tune with the changed times,
combined with the Indian governments beings of workers.
All this was achieved at a cost. The base of worker pay and other
benefits was established at a certain level, certainly much higher than what
the workers in the unorganized industrial or agricultural sector were earning.
If a problem crops up, defuse it and come to an immediate solution so
that the wheels of production do not grind to a halt. This is a short approach at
the group level-Management and unions.
Grievance machinery and discipline are characterized by many
observers of industrial relations as the twin pillars of industrial relations. Both
are needed not merely as communication channels but to further
42

organization goals and viability. Effective management of industrial

relations needs both and not just one of the two pillars.
FUNCTIONS OF IR:
 IR Section acts as a Nodal Agency/Buffer between management
and
collectives. The various functions handled by the section broadly are
as under:-
 Collecting and preparing Status/Comments in respect of the
Agenda
points submitted by the collectives for discussions with
management.
 Arranging Bilateral Meetings, drawing minutes, circulating the
same
and follow up action thereof.
 Interacting with collectives, maintaining rapport with them and
sensitizing employees.
 Assisting, Advising and Guiding Functional Heads with regard to
implementation of the provisions of Labour Laws.
 Handing of Industrial Disputes at conciliation stage i.e. collection

comments from the section concerned, Drafting replies to be filed

before the conciliation officer, Representing Management in the
conciliation/ joint meetings.
 Handing of Strikes – Drafting of Appeals, Circulars, Letters on
receipt
of Strike notices from the Collectives; collection information relating
to absenteeism, disruption of activities if any, and sending daily
situation report to Hqrs, Coordinating with various Department during
the strike period.
 Submission of Periodical Reports & Returns to Head Quarters.
 Providing necessary clarification in matters relating to Labour
Laws
such as payment of Bonus Act, 1962, Gratuity Act 1972, Contract
Labour (R&A) Act 1970, Payment of wages Act 1936, Payments of
43
wages Mines Rules, Minimum wages Act, Mines Act 1952 etc to the
functionaries as and when clarification is sought.
 Maintenance of files of Casual Workers, Preparation of their
monthly
wage bills, processing their claims.
 Processing the cases under workmen compensation Act, 1936.
 Matters relation to EWC, Mahila Samithi, WDF and other welfare
bodies.

 Grievance Management System – Coordination.

 Organisation farewall functions for Employees Retiring.

 Matters relating to workers education.

 Attending cases of emergency in case of accident/ death of an

employee.
 Welfare functions both statutory & non statutory.

 Canteen Management at Base Complex.

 Other duties / functions incidental to the above which arise from

time
to time.
44

CONCEPTS OF WELFARE
The concept of labour is flexible and elastic widely with
times, region, industry, country , social values and customs degree of
industrialization the general socio-economic development of the people and
the political ideologies prevailing at particular moments. It is also molded
according to the age. Group sex, socio-cultural level of workers in various
industries. However efforts have been made by expert bodies their concept in
their own way. A few of these definitions are given below.
The labour welfare investigation committee preferred to include
under labour welfate, including sickness and maternity benefit schemes,
provident fund benefits and pension etc.
Thus the term welfare is a comprehensive term, which includes
any activity, which connects with social, Moral, Economic betterment of
workers provided by any agency. Such activities may differ from country to
country and from region to region and firm to firm.
Different authors say the meaning of welfare:
The oxford dictionary defines "Labour welfare as efforts to
make life worth living for workmen."
Chamber's dictionary:
"welfare as a state of faring or doing well freedom from
calamity enjoyment of health prosperity"
45 The encyclopedia of social sciences defines.

"The voluntary efforts of the employers to establish with in the

existing industrial item working and something as living and cultural conditions
of employees beyond; at is required by law the customs of the industry and
the conditions of market".
R.R.Hopkins:
welfare is fundamentally an attitude of mind on his part of
management activities is undertaken.
Importance of welfare measures
Welfare in the border sense means well-being of the personnel
working in the organization. Welfare measures are the steps taken by the
management to create a good environment in which the workers feel satisfied
both physically and mentally and in the end produce best result by putting
their maximum efforts.
welfare measures directly relates to human and in particular
workers of an organization. In the initial stage of industrialization, welfare
measures of personnel in an industry were given very less importance. The
primitive concept of workers linked it is to a commodity or an intimate object
without any human characteristics. Thus came the concept of labour as the
machine, which has to be kept in a good working order with proper lubrication
to enhanced production, but still regards as lifeless. There was also the
goodwill concept of labour, which was the begining of the
46

humanization of labour from the state of commodity or a machine. But it

was only the 'citizen concept of labour that gave the workers human dignity
with the right to discuss, decide and vote as a citizen of a welfare state. This
concept gave rise to the philosophy of industrial democracy. And now, we are
in the final stage of the partnership concern where labour is regarded as an
equal and responsible partner in industry.
some of the prominent act are
1. Factories Act, 1948
2.Mines ACT,1952
3.Workermen's Compensation Act 1923.
4.Maternity benefits Act,1961.
5.Employee's State Insurance Act, 1948
6.Emplyee's provident Fund and Miscellaneous provisions Act,1952.
7.Payment of Gratuity Act 1972. Factories Act.1948
The Main focus of the Act is on employees Health, welfate and Safety.
In so far is Welfare is concerned, the Act provides for provison of on facilities
for washing, storing and drying clothing, first aid, canteens, shelters, rest
rooms and lunch rooms, creche etc. It is the responsiblitiy of the employer to
provide the above statutory welfare facilities under this Act.
Mine's Act.1952
The aim of this Act is to provide a consolidated law relating to the
regulation and safety of labour in mines. The Act provides for safety, health,
and welfate amenities of persons working in minds.
The workmen's compensation Act 1923
This provides for the payment to the workmen compensation for injury
by accident, arising out of and in the course of employment. In case of
death/disablement, compensation is payable
Maternity benefit Act 1961
The object of the Act is to provide for Maternity Benefit and certain other
benefits 3 women employees working in factories and other establishments.
Leave with pay of 12 Weeks for the purpose of maternity related confinement
and six weeks for miscarriage/abortion is required to be given by the
employer to women employees, under this Act.
48
Employee's State Insurance Act 1948
The main objective of ESI Act is to provide the certain benefits to the
employee's case of sickness, maternity and employment injury. The Act
provides for sickness benefit, disablement benefit, and depended benefit
subject to periodicl payment by the injured employee. The ESI Act is
applicable to the employees working in the covered establishments of the
notified area.
Employee's provident Fund and Miscellaneous provisions Act 1952
The main object of this Act is to provide for provident Fund, Employee
pension id Deposit linked Insurance for employees working in Factories and
other establishment. The Act contemplates a contribution by the employer
towards PF. It also provides for an employee pension, out of the contributions
made by employer as prescribed in the Act and scheme. Employees are
allowed withdraws for certain specific purpose like, House Building: Children's
marriage/education etc.
Payment of Gratuity Act 1972
The Act provides for payment of gratuity to employees working in
factories, mines etc. The Act enjoins upon the employees to pay gratuity at
the rate of 15 days wages for every completed years of services with a ceiling
of 20 months wages (overall; ceiling Rs.3.5 Lakhs ) to employees who have
put in minimum period years of service. In case of death of an employee the
minimum period condition is relaxed.
49

47
AGENCIES OF LABOUR WELFARE IN INDIA
There are several agencies through which various labour
welfare measures are undertaken. However, the Central as well as the State
Governments are the important agencies through which labour welfare
activities are undertaken.
In accordance with the Article 44 of the Constitution,
various labour legislations have been enacted by the Central and State
Governments, which have laid down the minimum standard of working
conditions. Therefore, employers have to function as agencies of labour
welfare. Apart from the state and employers, workers organisations, local
bodies and social organisations are also functioning as agencies of labour
welfare.
WELFARE AND SOCIAL SECURITY MEASURES
ONGC draws its strength from 40,000+ strong manpower and
always values its people. As a 'Company that cares', it generously extends
several welfare benefits to its employees in the areas of medical care,
education, housing, recreation and social security.
To develop women employees, ONGC has set up a Women
Development Forum at every Asset/Basin of the Company to look after the
welfare, improvement in work in conditions, training and development, and
redressal of grievances of women employees.
50

LEAVE FARE ASSISTANCE

Employees and members of this families are eligible for leave fare
Assistance(LFA) after putting one year's service as under:
Employees posted at their home-
towns
Once in a block of four years to antny pl any
place in India.
Employees posted at other than
home-town
Once in each calendar year to home-=town and once in a block of four years,
in lieu of one LFA for home, to any place in India than home-town, However in
any calendar year, LFA may be availed of only once.
The term "family members" for the purpose of LFA includes parents,
children residing with and wholly dependent on the employee. Unmarried
sisters and minor brothers are also included in the "family members' for
employees who joined ONGC on or before 1st June 1987.
EDUCATION FACILITIES
(a) Central school
ONGC take special interest in the overall development of the
children of its employees. In pursuance of this objective, ONGC has funded
setting up of Kendriya Vidyalayas (Central Schools) at its main work Centres
like Nazira, Sivasagar, Ankleshwar, Baroda, Mehsana, Dehradun, Cambay,
Agartal , Jorhat, Silchar, Lakwa, Ahmedabad, Panvel, Harzira and
Rajahmundry.
51

b) Children Education Allowance:

In addition to setting up of schools, ONGC reimburses tution fee and
stationery charges to the employees.
(c) Merit Scholarship
ONGC grants Merit Scholarship to the meritorious students from vth
Standard to xth Standard, Intermediate, Graduate, Post-graduate and
Professional Courses.
(d)Journey Fare
Children of ONGC employees studying at a place other than the
place of posting of the employees are paid second class fare during approved
vacation twice a year from the educational Institution to join their parents at
the place of posting and back. This fare is admissible where journey is more
than 150 kms.
(e) Special Award scheme
In order to encourage brilliant and meritorious wards of the
employees and to include them to maintain and improve level of their
excellence, Special Awards are granted to those wards of the employees who
secure positions amongst first then on the merit list of the Board/University
examinations and all India competitions.
52
(f) Hostel Subsidy
 ONGC grants Hostel Subsidy to the Children of ONGC's employees,
who stay in a hostel or residential school for the purpose of their academic
pursuits.
(g) Scholarships for SC & ST Students
As a social welfare measure, ONGC has introduced Scholarship
Scheme to encourage deserving students of SC/ST Community for
undertaking higher education. The Scholarships are granted to SC/ST
Students pursuing full-time studies in Graduate Engineering Courses from a
College or an Institution recognized by Central or State Government.
MEDICAL FACILITIES
ONGC has a generous medicare scheme for its employees, their family
members and dependent parents, which can be availed at specialized centres
of certain work centres and also at reputed medical centres in the country.
Medicare is also extended to all retired employees and their
spouses, at
par with those in service, on a nominal contribution.
SOCIAL SECURITY
In order to provide adequate social security cover to the employees, ONGC
has introduced a Composite Social Security Scheme with effect from june
1998.
53

The Scheme covers all the regular employees of ONGC as on the date
of its introduction. A contribution of Rs.260/- per month from the executives
and Rs.130/- per month from non-executives shall be dedicated and
equivalent amount be contributed from the company's fund.
The benefit to the dependents /employees on death while in service /
permanent total disablement resulting in separation from the Corporation is
Rs.10 Lakhs in the case of executives and Rs.5 Lakhs to non-executives.
COMPENSATION FOR ACCIDENT WHILE ON DUTY
The employees of ONGC who met with accident while on duty, are
eligible for compensation under the Workmen's Compensation Act,
1923.
 The employees of ONGC who sustain permanent total disablement or
die due to accident or H2S exposure while on duty, are paid financial
assistance of Rs.1.8 lakhs to Rs.12.00 Lakhs depending on the case. This
amount is in addition to all other benefits / relief available to the employees
under various schemes.
GRATUITY
ONGC grants gratuity under ONGC (Death, Retirement & Terminal
Gratuity) Rules, 1995, to its employees for their good, efficient and faithful
services. This gratuity shall be payable to an employee on termination of
his/her employer on superannuation or on retirement or resignation or on
death or disablement due to accident or disease, after rendering continuous
service of not less than five years. The condition of five years services shall
not be necessary where termination of employment of any employee is due to
death or disablement.
54

The extent of gratuity shall be equal to 15 days wage (all

emoluments including DA ) for each completed year of service or part thereof
in excess of six months.
CONTRIBUTORY PROVIDENT FUND
With the objective of making some provisions for the future of the
employee after his/her retirement and for the dependants in case his/her early
death and to cultivate a spirit among the employees, ONGC has introduced
contributory provident fund system. All the employees of ONGC are regulated
by ONGC Employees Contributory Provident Fund Regulations. Every
employee except a trainee or an apprentice has to be a member of the Fund
from the date of his/her joining ONGC.
Every employee has to subscribe equivalent of 12% of salary and
Corporation contributes an amount equivalent to the employees' compulsory
contribution.
 Employees are granted advances out of their own share of contribution
for meeting the expenses of the marriage of dependants, higher education of
children, religious ceremonies etc.
POST RETIREMENT BENEFIT SCHEME
The ONGC Self-Contributory post Retirement and Death in Service
Superannuation Benefit Scheme' (PRBS) has been in operation since
01.04.1990 for executives and from 16.11.1995 for non-executives of ONGC,
in order to meet Post-retirement needs of employees and to provide safety
net during the service. This is in lieu of Employees Pension Scheme, 1995
and has been implemented with due approval of the Petroleum and
Natural Gas, Government of India, and the Trust thereof has
also been duty recognised by the Income Tax Authorities.
The Scheme is compulsory for all employees of ONGC and self-
contributory. ONGC also contributes Rs.100/- per annum. The employees are
admissible for pensionary benefits upto a maximum upto a maximum of 50%
of salary depending upon reckonable service as computed in terms of the
Scheme. Eligibility for pensionary benefit requires minimum 10 years of
continuous and contributory service with ONGC. Refund of contribution is also
admissible to the employees in the event of cessation of employment with out
rendering minimum service of ten years.
'AGRANI SAMMAMN'M EX-GRATIA BENEFIT SCHEME
ONGC has recently introduced 'Agrani Samman Ex-gratia Benefit
Scheme for its employees of pre-15.10.1959 and post 14.10.1959, who have
superannuated / voluntarily retired / died while in service after rendering a
minimum ten years of service.
Under this Scheme the beneficiaries will be admissible for ex-gratia
ranging from Rs.750/- to Rs.6,000/- per month depending upon their pay
scales at the time of their separation from the Corporation.
After death of the ex-employee, the spouse is eligible to 50% of the ex-
gratia amount that was / would have been admissible to the deceased
employee.
56
HOUSING
 ONGC strives to provide comfortable housing as far as possible to its
employees. ONGC has Constructed about 144 residential blocks for its
employees at its base complex at Rajahmundry. In addition, ONGC has also
provided accommodation to those employees, who could not bring their
families to their place of posting for various reasons like children education, at
a nominal rate of rent.
ONGC pays house rent allowance to those employees who reside in
their own houses or leased houses.
ADVANCES
ONGC encourages its employees to build / acquire residential
accommodation through a liberal House Building Advance at a nominal rate of
interest after they complete seven years of service.
The employees can also purchase a two-wheeler or a car by way of an
advance, for which they can claim the appropriate vehicle maintenance and
fuel cost reimbursement.
The employees of ONGC can also purchase a computer by way of an
advance.
57

Ministry of
REST & RECREATION
Holiday Home
ONGC promotes the culture of taking time off to relax any where in the
country for a period of ten days. Employees can visit any station in India
either alone or with their family members or can visit such place
independently but not more than in two batches/groups in all, once in a block
of two calendar years.
Clubs
ONGC has established Officers Clubs and Staff Recreation Clubs at a
nominal membership fee ) in almost all its work centres for informal get
together of its employees and their family members.
Sports Councils
 ONGC places special emphasis on physical fitness and promotes a spirit of
competitiveness through employee's participation in various tournaments /
meets organised by the Sports Councils / Sports Control Board. ONGC is a
member of Petroleum Sports Council Board (PSCB). Excellent infrastructural
facilities exist for various sports like Squash, Tennis, Hockey, Football,
Badminton, Table Tennis, Billiards, Cricket etc.
ONGC Himalayan Association (ONGCHA)
Through the ONGC Himalayan Association, ONGC encourages
participation of its employees in adventure sports like mountaineering, river
rafting, desert safaris etc.
58
SPICMACAY-The Society for the promotion of Indian Classical
Music
among youth
ONGC Chapter of SPICMACAY integrates our cultural diversities by
exposing ONGC families to performances by eminent artists / vocalists /
dancers / musicians.
Employees Welfare Committees
To organise, maintain and improve various welfare amenities, ONGC has
setup Employee Welfare Committees in all its work centres. These
Committees are responsible for promoting local sports and cultural activites at
respective work centres.
Associations
ONGC encourages dialogue with various association which look after the
interest of diverse groups of the ONGC family. For instance there are
Association of Scientific & Technical Officers (ASTO), All India SC/ST
Employees Welfare Association, Employees Union, WIPS (Forum of Women
in public Sector ) etc. ONGC also provides equal opportunities and en
empowering environment to its women employees.
Social Development
 Apart from its objectives and mission to achieve self-reliance, ONGC pays
social attention to the social development and economic upliftment of the local
populace and environment in which it operates. ONGC has adopted
59

villages, assisted local bodies in building roads, bridges, school buildings and
provided assistances to various minority groups through community
development programmes.
CLEANLINESS
The Rajahmundry Asset of ONGC has shifted its administrative office to its
won premises constructed as its Base Complex. The Building is maintained
cleanly in good hygienic conditions by engaging about 60 labourers.
LATRINES, URINALS, WASH BASINS
The new office building consists of three floors, divided into three wings.
Each wing has been provided with adequate number of latrines, urinals, wash
basins at appropriate places and are maintained regularly.
VENTILATION AND LIGHTING
The new office premises is built in the midst of a beautiful mango garden
and all the rooms are spacious and sufficient ventilation and lighting is
provided in each and every room. The entire office premises are being
Centrally air-conditioned shortly.
CANTEEN
A full-fledged canteen with all infrastructure facilities is provided at base
office for the employees of the Asset. The canteen is being run by a
contractor and tea, coffee, Snacks, meals etc. are provided to the employees
on payment basis.
60
At the drill sites and other installations, catering facilities are
provided to
the employees, round-the-clock at free of cost.
DRINKING WATER
 Drinking water facilities are provided adequately at base office as well as
drill sites and other installations. Drinking water is supplied through electric
water purifiers.
REST ROOMS
There is a rest room for lady employees in the base office with all required
facilities and at drill sites, air-conditioned accommodation is provided to the
employees working there.
REMOVAL OF WASTES AND ENVIRONMENT PROTECTION
Wastes and effluents are removed from time to time both at drill sites and at
offices. For this purpose of number of house-keeping personnel are appointed
to maintain good hygienic conditions.
KITS & LIVERIES
ONGC is always in forefront to provide safety to its employees. The
Corporation is providing its employees, working at drill sites, uniform, shoes,
helmets, dungarees. socks, gloves etc for the safety of its employees. ONGC
is spending more than sixty lakh rupees a year on account of kits & Liveries.
61
Safety and Environment Management (SEM)
Safety and Environmement Management set up in Rajahmundry Asset
of ONGC with a multidisciplinary approach ensures that safety and
environment protection are integrated at all work places.
TREE PLANTATION
Tree plantation - A sure step towards environment protection.
Realising the importance, tree plantation has been taken up a regular activity
in ONGC. Every year, a take plantation, but also to spread awareness among
public to give due regard and respect to trees and concern for overall
environment protection.
Training
There is a Staff Training Institute in the ONGC Rajahmundry Asset is
imparting training to employees to sharpen their knowledge, skills and
abilities. Non-executives were sent for trainings conducted by Central Board
of Workers Education at Visakhapatnam under Ministry of Labour,
Government of India.
WOMEN DEVELOPMENT FORUM
The Women Development forum in the Asset was established in 1998.
Since then, the Forum has played a constructive role in the activities of the
Asset
62 ONGC MAHILA SAMITI

The Mahila Samiti is an association of the wives of ONGC employees.

The Mahila Samiti is making pioneering efforts in helping women from poor
families, old age homes and physically challenged women. The association is
closely working with the Rajahmundry Asset in the implementation of its
socio-economic development programmes.
VOCATIONAL EDUCATION CENTRE FOR WOMEN
ONGC Rajahmundry Asset started Vocational Education Centre for
Women at Rajahmundry and Amalapuram in 1998. Presently the vocational
Education Centre is conducting Tailoring, Beauty Culture, Embroidery and
Fabric Painting, Spoken & Written English and Computer Awareness Courses
and Distributing Certificates and scholarships to the trained women.
Employees Welfare Committee
As part of the ONGC policy on welfare measures to its employees,
Rajahmundry Asset has setup an 'Employees Welfare Committee' to
organise, maintain and improve various welfare amenities. This committee is
responsible for provision of indoor and outdoor games, sports, athletic activity,
cultural activity, library-cum-reading room etc.
LIBRARY
A full-fledged library with all relevant technical, scientific, general books and
periodicals has been established Rajahmundry Asset for knowledge and
reference of the employees. SPORTS
Rajahmundry Asset of ONGC is marching ahead in development the
infrastructure facilities for sports and excelling in the sports arena of ONGC.
At Rajahmundry there are numerous sporting facilities like lawn tennis, table
tennis, squash, indoor badminton, golf, skating, football, basket ball. At ONGC
Base Complex there is a fully equipped gymnasium and a children park.
64

1.Are you aware of the welfare measures provided by ongc?

Serial Number
Responses
No. of Responses % of responses
1
YES
190
95%
2
NO
0
0%
3
PARTIALLY
10
5%
TOTAL
NO.
OF
RESPONSES
200
100%
Source:Questionnair e
The above table depicts respondent’s viewpoint to the extent of awareness of
welfare measures. 95% % of them are totally aware of the welfare measures.
5%
Of them partially aware of the welfare measure and 0%
are not aware of the welfare.
From the above analysis we can know that all of them are totally aware of the
welfare measures providing for employees in the O.N.G.C but, very few are
not aware due to the communication gap and also few of them are not clear
but what comes under welfare measures.
65

63

5%
YES
NO
PARTIALLY
2.How do you come to know about the new welfare measures being
introduced in the organization?
Serial Number
Responses
No. of Responses % of Responses
1
Through
your
superiors
0
0%
2
Co-Workers
10
5%
3
Circulars
180
90%
4
Unions
10
5%
Source:Questionnaire
From the above table we can depict that 90% of the employees come to know
about the new welfare measures being introduced in ONGC through circulars
and next comes to the 5 % of the employees come to know by workers shown
in the table . Rest of the responders comes to know 5% through unions, and
0% from their superiors.
66
0%5%
90%
5%
THROUGH YOUR
SUPERIORS
CO-WORKERS
CIRCULARS
UNIONS
[1] Statutory Welfare measures
1.Canteen Facilities
Responses
Very Good Good
Satisfied
Poor
a.Food
10
50
80
60
% of Responses
5%
25%
40%
30%
b.Environment&Hygiene 10
80
70
40
% of Responses
5%
40%
35%
20%
Source:Questionnaire
[a] Food
From the above table we can depict that above 70 % of the
employees are
above the satisfaction level regarding the canteen facilities
providing in the
67
organization. And 30% of the responders are not satisfied with the
facilities
providing in the O.N.G.C5%
25%
40%
30%
VERY GOOD
GOOD
SATISFIED
POOR
68
5%
40%
35%
20%
VERYGOOD
GOOD
SATISFIED
POOR
[b]Drinking Water
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
10
5%
2
Good
50
25%
3
Satisfied
60
30%
4
Poor
80
40%
Total No. of
Responses
200
100%
Source::Questionnai re
From the above table we can depict that that 60% of the respondents are
above the satisfaction level regarding the water facilities providing for the
employees at their shop floors.And 40% of the employees are not satisfied
with the drinking water facilities providing for them.
69
40%
VERYGOOD
GOOD
SATISFIED
POOR
4.First Aid Facilities
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
30
15%
2
Good
100
50%
3
Satisfied
60
30%
4
Poor
10
5%
Total No. of
Responses
200
100%
Source:: Questionnaire
From the above table we can depict that 15 % of them are saying that the first
aid facilities providing at work area are very good and 50 % saying good with
the facilities . 30% of the employees are satisfied with the facilities.And lastly
5 % of the respondents are poor with facilities.
70
15%
50%
30%
5%
VERY GOOD
GOOD
SATISFIED
POOR
5.Toilets
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
30
15%
2
Good
100
50%
3
Satisfied
60
30%
4
Poor
10
5%
Total No. of
Responses
200
100%
Source:Questionnai re
71

From the above table we can depict the regarding the toilets in the ONGC
Organization are about 95 % of them responded above the satisfaction level
and 5 % of them are not satisfied . once if we see the analysis that most of
the employees responded above satisfaction level regarding the maintenance
of the toilets in ongc. But 5 % of them are not satisfied with the toilets
because of poor maintenance and they should be clean for every short period
of time.
15%
50%
30%
5%
VERYGOOD
GOOD
SATISFIED
POOR
6.Leave Facilities
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
120
60%
2
Good
50
25%
3
Satisfied
30
15%
4
Poor
00
0%
Total No. of
Responses
200
100%
Source:Questionnaire
72
The above table depicts that the respondents are very much satisfied with the
number of leaves they are having. And we cannot take those number into
count who are not satisfied because as it was very minute percentage below
1%. We can say that the leaves for ONGC employees are more than they
required. As the employees are having adequate number of leaves they are
totally satisfied in this welfare measures.
60%
25%
15%
0%
VERYGOOD
GOOD
SATISFIED
POOR
7.Safety Provisions
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
50
25%
2
Good
90
45%
3
Satisfied
50
25%
4
Poor
10
5%
Total No. of
Responses
200
100%
Source::Questionnair e
From the above table we can depict that the respondents about
safety
provisions are mostly 95 % of them are above the satisfaction, and
5% of
73
them have responded that the t of safety facilities are poor with that
of
safety providing in the O.N.G.C
25%
45%
25%
5%
VERY GOOD
GOOD
SATISFIED
POOR
[2]Non-Statutory welfare measures
1.Educational Facilities For Employee Children
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
110
55%
2
Good
80
40%
3
Satisfied
10
5%
4
Poor
00
0%
Total No. of
Responses
200
100%
Source:: Questionnaire
The above table depicts that 45% of the employees are satisfied with the
educational facilities provided to them. 55 % of gave an excellent opinion over
the educational facilities..
74
55%
40%
5%
0%
VERYGOOD
GOOD
SATISFIED
POOR
2.Medical Facilities
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
150
75%
2
Good
50
25%
3
Satisfied
00
0%
4
Poor
00
0%
Total No. of
Responses
200
100%
Source:Questionnair e
Almost all of the employees are satisfied with the medical facilities. 75
% are highly satisfied with facilities provided by O.N.G.C. There is no
unsatisfied employees. As a major portion of the employees are satisfied
75
with
the
medical
facilities
due
to
free
treatment.
75%
25%
0%
0%
VeryGood
Good
Satisfactory
poor
3.Housing Facilities
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
100
50%
2
Good
90
45%
3
Satisfied
10
5%
4
Poor
00
0%
Total No. of
Responses
200
100%
Source:Questionnaire
76
From the above table we can depict that 50 % of the employees have
responded that the housing facilities are very good and 45 % have responded
they are good 5 % are satisfied and only few of % are not satisfied with the
facilities providing for the employees at quarters.
From the above analysis we can conclude that most of hem are
above the
satisfaction level regarding the facilities at quarters.
50%
45%
5%
0%
VeryGood
Good
Satisfactory
poor
4.Co-operative Society
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
30
15%
2
Good
90
45%
3
Satisfied
70
35%
4
Poor
10
5%
Total No. of
Responses
200
100%
Source::Questionnair e
77

The above table depicts that 95 % of the employees are above satisfied with
the co-operative societies due to the nearness from resident, discounted
price.35 % of the employees are satisfied. A negligible 5 % are unsatisfied.
This figure suggests that 95% of total employees are satisfied with the co-
operative societies due to large number of items available at a has a co-
operative store .so it very near to all residents.
15%45%
35%
5%
VeryGood
Good
Satisfactory
poor
5.Recreation Facilities
Serial Number
Responses
No. of Responses % of Responses
1
Very Good
40
20%
2
Good
60
30%
3
Satisfied
50
25%
4
Poor
50
25%
Total No. of
Responses
200
100%
Source::Questionnair e
78
From the table we can depict that an overall 75% of the employees are
respondendthat the recreation facilities providing in the O.N.G.C are above
the satisfaction level. But 25% of the employees are not satisfied.
20%30%
25%
25%
Very Good
Good
Satisfactory
poor
6.Are The Welfare Officers Helpful To You?
Serial Number
Responses
No. of Responses % of responses
1
YES
140
70%
2
NO
00
0%
3
PARTIALLY
60
30%
TOTAL
NO.
OF
RESPONSES
200
100%
Source::Questionnair e
79

The above table depicts that the 70 % of the employees responded in a way
that the welfare officer are helpful for them but 30% of them are not satisfied
with the welfare officer. From the above analysis we can say that from the
respondents about 70 % of them are agreed with the point that the welfare
officer are helping the employees. The welfare officers by name it self say that
they are here to look after the welfare of the employees working in the
organization. But30 % of them are not satisfied because the reasons may be
personal. When ever they didn’t get their work done or things may not happen
in their favour the responses will be negative regarding the welfare officers.
70%
0%
30%
YES
NO
PARTIALLY
7.Are You Satisfied With All The Welfare Measures Providing In The
ONGC
Serial Number
Responses
No. of Responses % of responses
1
YES
160
80%
2
NO
0
0%
3
PARTIALLY
40
20%
TOTAL
NO.
OF
RESPONSES
200
100%
Source::Questionnair e
The above table depicts that most of the employees responded
that80 %
have agreed that welfare measures providing to the employees in
the ongc
80
are good and they are satisfied. But20 % of them are not satisfied
with the
welfare measures providing to them
80%
0%
20%
YES
NO
PARTIALLY
FINDINGS
1. The Welfare Measures Provided by the company are Good and
81
Satisfactory.
2. 95% Of the Employees are aware of all the Welfare Measure
Provided by O.N.G.C
3. The Employees are Satisfied With Their Job and also with the
Welfare
Facilities Provided to them.
4. The Employees are treated with greater respect and taking care
of
their Employees.
5. The Employees are Satisfied with the Incentives given by the
company.
6.The Employees are Satisfied with the Medical Facilities Provided
by
the Company.
7.The Cleanliness of work area in the company it is Maintained with
high cleanliness.
8.The Employees are not satisfied with the Canteen facility
providing by the
company.
SUGGESTIONS
1.There Should be Permanent Display about the Welfare Measures
in
the O.N.G.C to make
aware of the Employees.
82
2.Railway Reservation Facility to be made available with in the
Company.
3. Lift facility is not provided in the Office building. If this facility is considered,
it would be useful for the employees like physically handicapped, pregnant
ladies, old aged persons who visit the offices for their work etc.
4.Canteen facilities should be improved. The quality of the food and
the
cleanliness in the canteens should be maintained.
5.It is suggested to provide drinking water through a centralized water purified
system instead of the water coolers, as there may be technical problems in
some of the water purifiers in some blocks or there may be some other
related problems.
6.ONGC has provided generous medical facilities to its employees. However
as most of the employees are residing in the town, the dispensary is
functioning in the town, which is three kilometers away from the based office
and residential colony. If a medical doctor and first aid facility is provided at
the base complex, it would be useful for the employees, school children
during emergencies.
7.There should be provide ATM Facilite with in the premises.
8.There is no guest house facility in Rajahmundry for the employees
or for
the employees who visit Rajahmundry from other work centres.
Whenever
83

they visit the office, thery are provided accommodation in the hotels. If a guest
house is provided, it would be convenient for the employees and also reduce
the expenditure on accoujnt of arranging accommodation in hotels.
9. Even though there is a residential complex for the teachers of Kendriya
Vidyalaya and the employees of ONGC at base complex, there is no
shopping complex, even for essential commoties like milk, provisions, and
vegetables. For all these things, the residents of the colony are to go about 2-
3 kilometers. If a shopping complex is provided, it would help the residents at
a greater extent and the residential blocks which are still vacant can be
occupied by the employees.