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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. 2. 3. 4. 5. Employees Trade Unions Employees Association Employers Association 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 underutilization 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.
Although 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.
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.
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.
C employees to achieve the organization goals. As a result productive devices and compensatory benefits have to be provided for the welfare of the workers. long after normal working hours. A worker need to satisfied regards his culture and living environment.N. 5 .G. which cannot be removed or reduced. affecting physical and mental well-being. towards their employees. he is not an isolated individual but a member of society having family members. involved in the manufacturing process. the imperative needs to provide a welfare services to satisfy his personal and family needs is felt.NEED FOR THE STUDY To understand the extent to which the welfare measures provided by O.G. the need for welfare services within the factory or work place is felt. The working environment of any job in factory or mine or a workshop imposes some adverse effect on the workers because of the heat. There are also occupational hazards and environmental problems inherent and inevitable in the manufacturing process itself. To recognize the importance of welfare measures for O.C. Hence. To study how the Welfare facilities provided helps in increasing the productivity and job satisfaction. This can be referred to as the ‘Long arm of the job’ which stretches out its adverse effect on to the worker. noise. To offer useful suggestions for improving the effective ness of welfare measures. To learn how welfare services provided to employees help Organization to build up a stable work force by reducing absenteeism and labour turnover.N. Hence. and order fumes etc. 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’. To know the level of awareness of employee about the various welfare measures provided to them. Regarding the aspect of ‘social invasion of the factory’ when a worker comes to Working place.
4. To study how the Welfare facilities provided helps in increasing the productivity and job satisfaction. 5.OBJECTIVES OF THE STUDY: The study was conducted in order to achieve the following Objectives: 1.G. To understand the extent to which the welfare measures provided by O. 6 . To offer useful suggestions for improving the effectiveness of welfare measures. individual 3.C. 2. To learn how welfare services provided to employees help Organization to build up a stable work force by reducing absenteeism and labour turnover.N. To know the level of awareness of employee about the various welfare measures provided to them. towards their employees.
a) Type of welfare measures provides O.C. Primary source 2. 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.N.C. Secondary Sources: The secondary source of data was collected through obtaining records and files from the Administrative Building of O.G. c) About the course covered through discussion with the employee and through questionnaires.METHODODLOGY: The project and mainly based on two sources of the data viz. The following are the data collected through primary sources. 7 . 1.G.N. b) Refreshment courses conducted in the technical institute. 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.
government. the definition is much more limited. limits cannot be rigidly laid down regarding its scope for all times. but also such aspects of working life as social insurance schemes. and so on. In the light of above observations. is mainly concerned with day-to-day problems of workers and the social relationships at the place of work. In the final analysis. trade unions of voluntary’ organizations and also social security measures which contribute to workers welfare such as industrial health. and paid vacations. gratuity. statutory and nonstatutory welfare facilities undertaken by the employers. As the subject of welfare facilities is a very broad one covering a wide field of amenities and activities. in addition to general physical working conditions. measures for the protection of women and young workers. In other cases. However. 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. maternity benefits. and welfare. the scope may be elaborated to 8 .SCOPE OF THE STUDY: Welfare is very wide one and is more or less synonymous with conditions of work as a whole. More specifically. retirement benefits. provident fund. workmen’s compensation. It may include not only the minimum standard of hygiene and safety laid down in general labour legislation. insurance. workers welfare services should include all extra-mural and intra-mural welfare work. limitation of hours of work.
the scope of Employee Welfare covers all intra-mural and extramural welfare activities as well as the statutory and non-statutory welfare measures undertaken by Government.a) Enable workers to live a richer and more satisfactory life. e) Be so designed to accommodate all changes occurring due to industrialization and technological advancement. d) Improve the productivity of employee. PERIOD OF THE STUDY: The period of the study is from 1st May 2007 to 30th June 2007. f) Be administratively viable and should have easy access. Time was the major constraint as the mentioned period was not enough to collect the data in details. Some were unable to understand the language in the questionnaire so they felt it difficult to answer. LIMITATIONS OF THE STUDY: As the managers of the organization are busy with their work schedule it was difficult to collect detailed data. or Voluntary Organizations for the betterment of the workers. c) Be in line with similar services available in the neighbouring enterprises. Trade Unions. 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. b) Raise the standard of living. and the statistical information was been taken to the period of 2006-2007. 9 . Thus.
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.2 percent of total world production respectively.INTRODUCTION A WORD ABOUT OIL AND NATURAL GAS The first oil discovery in India was made in Digboi in Assam in 1889. India is endowed with 26 sedimentary basins along with deep-water sedimentary areas.5 percent of world reserves where as oil production is 0. On a conservative basis petroleum product consumption in India is expected to grow from present level of 97 million tones P. Those days nobody thought this discovery was to play in the Country’s quest for oil and gas later years.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. The sedimentary basin area of the country is about 4 percent of the total world sedimentary area. The highly prospective basin included Bombay 10 .9 percent and gas production 1. 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.A in 1999-2001 to about 180 million tones P.
KeralaKonkan.G. As private participation is increased for regulatory the up stream of oil and gas sector a regulatory body was set by Government.H) under ministry of Petroleum and NaturalGas. The pricing system assured all players a normative post-tax return of 12% on net worth. This would result in finding several gas fields along the east coast with 3-4 years. Mahanadi and Bengal basins. Vindhya. 11 .C) and oil India ltd. capital expenditure and pricing of petroleum products were determined by the state. the Director General of Hydrocarbons(D. cambay. Assam-Arakan. The production pattern.) A number of new discoveries have been made by in the Gulf of Cambay. Till QI FY99. Krishna Godavari and Rajasthan basins by private/joint venture companies. Krishna-Godavari and Cauvery basins and low prospective basins are Ganga. This area can produce 25-30 percent more gas over the current production.(O I Ltd. the Indian oil & gas industry has been under state control vide the Administered Pricing Mechanism (APM). In deep water areas of the Krishna Godavari basins many large prospects are under drilling.G. upper Assam.N. (O. The great strides have been made in oil and gas exploration by two national oil company’s namely oil and Natural Gas corporation Ltd.offshore.
Decontrol measures were initiated and retention pricing for refineries has been abolished w. the world had proven oil reserves of a little over I bbl and proven gas reserves of little less than 140 trillion cubic meters. 12 . SKO AND LPG) that contribute 70% of the volumes.CRL. HSD. ATF. It is important to note that a six-mtpa refinery (current minimum economic size)will cost Rs36bn.e. The major gainers of deregulation process will be old players with old and depreciated units like – MRL. Amongst players.HPCL.f Apr ’98. which account for nearly 95% of the total refining capacity and 100% of products marketed. while GAIL has a monopoly in marketing and distribution of gas. IOCL etc. followed by Reliance and Essar by 1999-2000. Essar Oil and Reliance Petroleum will be hard hit. New refineries like MRPL. In addition. The refining and marketing sector is again dominated by PSU s. ONGC has a virtual monopoly in upstream crude oil and gas production. However.BPCL. continue to remain. Global oil & gas production is skewed with most of the reserves concentrated in the Middle East. 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. controls on 5 products (MS. MRPL was the first non-PSU in the sector . JOIL is the market leader in both refining and marketing followed by BPCL and HPCL. As at end 1998. which supplies to deficit countries in the Americas and the Asia-Pacific. as their refining margins under the market determined pricing mechanism would be lower than that under the APM. net profit will be affected by high interest and depreciation outgo.
98%. as observed since the late seventies.Stock valuations continue to remain depressed.K.800 million metric ton of oil equivalent (mmtoe)in 1970 to about 8. Investors should use all disinvestment programs as a buying opportunity because the long-term fundamental story is still intact. The average per capita consumption of energy vis-à-vis hydrocarbons (kgOE) Country/Region World India China Pakistan Bangladesh Japan U.877 mmtoe in 1999. Germany Primary Energy 1454 285 688 264 81 3962 3856 4120 Hydro-Carbons 927 113 169 231 80 2520 2719 2539 Source: British Petroleum Statistics – 1998 Importance of oil & gas in primary energy 13 . GLOBAL SCENARIO Primary energy consumption Primary energy is a critical input and in line with economic growth. whose energy consumption levels dropped by more than 35% in the last five years. The world consumption of energy increased from about 4. The two negative factors for the sector are dim outlook on global refining margins and supply of stock in the form of government disinvestment. The growth in consumption would have been much higher but for the disintegration of the former Soviet Union. representing a CAGR of about 1.
Consumption of natural gas has grown by more than 26% vis-à-vis 15% in consumption of oil. The reserves are however unevenly distributed with the Middle East countries together holding 65% of oil and 34% of gas reserves.900 mmt) while that of gas. for instance in the last decade. Oil-Widely traded energy source 14 . The Asia Pacific region is thus gaining importance in the oil & gas map. the scenario is rapidly changing. oil reserves are likely to last for about 40 years and natural gas reserves for about 65 years. it is seen as an environment-friendly substitute for relatively scarcer – oil. The situation in Asia! Australia is different with coal still remaining the primary source of energy. with India and China together accounting for 47. natural gas has taken the lead in growth and in the emerging energy scenario. Oil and gas reserves As at end 1999. In the last decade.055 million barrels (about 140. At the current rate of production. the world had proven oil reserves of a little over 1. However.50% of the total demand in this region. a little less than 140 trillion cubic meters. 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.Oil & Gas constitute a significant 63% of the primary energy consumption. where the growth rate has been negative).
World refining capacity. 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. In1998. The prices have thereafter hovered between US$15-25/ bbl but for a short blip in 1990 due to Iraqi invasion Kuwait. 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. Thanks to the two oil price shocks. Subsequently OPEC reduced crude output.the world’s total refining capacity was close to 82. oil prices crashed once again to a decade low of US$11/ bbl due to excess capacity. Oil &gas prices Oil and gas prices are closely linked to the policies and capacity utilization of OPEC. which escalated prices from $11/ bbl in 1998 to $32/ bbl in 15 . representing an average capacity utilization of about 85%. Though reserves by themselves are not a cause for worry. World oil trade is estimated to be 38 million barrels a day. the cost of exploration could rise with increased investment in development of resources leading to a surge 3 prices.861 thousand barrels a day.126 thousand barrels a day . experts feel that as the reserves/ production ratio falls.Reaching record levels(Introduction) As of 1999. poor off-take and an overall slowdown in world economies. The refinery throughput in the year 1999 stood at 71.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.
Natural gas prices on the other hand have also increased from US$1. local demand & supply and cost of alternate liquid fuels. 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. Later though POEC increased production twice (by 1. The world market now banks on increased supply from nonOPEC countries namely Mexico.52.36 per mbtu in June 2000. constituting more than 56% of the total energy consumption though there is a conscious shift towards oil as alternate fuel.45mbpd in September ’99 and 0. the quantum was insufficient to tame prices. The over all demand for oil products increased from 74mtpain 1996 to 90mtpa in 2000. there are no benchmarks for natural gas and the price is based on calorific value of gas.June 2000. Unlike crude oil . Oil & Gas – Reserves & Production 16 .5 per mbtu in 1998 to $4.7mbpd in June’00). Coal continues to be most important source of energy. Oman and Norway. the primary energy consumption in India was 285kgOE in 1998 as against 5800kgOE in North America. Energy scenario in India Primary energy consumption in India Excluding the non-commercial energy sources like wood and animal waste. Huge disparities exist in the price of natural gas not only between countries but also within a country. 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.
The total prognosticated reserves are estimated at 20 bbl of oil. the current production level of 35 mmtpa would be highly inadequate. However. Natural Gas Demand (MMSCMD) Year 1999-2000 2001-2002 2006-2007 2011-2012 2024-2025 110 151 231 313 391 Demand Refining Capacities The refining capacity increased from 69. especially once the planned refining capacities come on stream a large portion of the crude would need to be imported. about 2.of which 1. As of 1995.4 bbl of oil (about 732 mmt ) has thus been discovered with the annual production in the region accounting to 35-40 nmmtpa.There are 26 sedimentary basins in India covering an area of 1.14mtpa in FY99 to 109mtpa as of January 2000 i. At current production levels these reserves are likely to last for about 30. Currently 17 .32 mn sq km are offshore in water with up to 200 meters in depth.years.7% of the world refining capacity. the proved gas reserves were about 660 billion cubic meters (bcm) while production as of 1999 was 27bcm. but till date only 27% of this has been discovered.46 mn sq km are onshore and 0.78 mn sq kID. A total of 5. These reserves are likely to last for the next 20 years.e.
the sector was partially opened with decontrol of lubricants. Bongaigoan Refinery & Petrochemicals Ltd (BRPL). imports have been continuously swelling. During FYOO.there are about 17 refineries of which Madras Refineries Ltd (MRL). The only solution to this problem is to attract large investments.2by Hindustan Petroleum Corporation Ltd(HPCL) and 1 BY Bharat Petroleum Corporation Ltd Cochin Refineries Ltd (CRL). decanalization of several products and permission to parallel marketers to sell LPG and SKO. Mangalore Refinery & Petrochemicals Ltd (MRPL) and Reliance Petroleum Ltd (RPL) . all the controls in the sector would have to be removed. (bpcl). it could have serious repercussions of the balance of payments situation as well as smooth & continuous availability of energy. India imported 44mton of crude and 12mnton of products. Currently. both in terms of capital and technology so as to boost production levels and cater to the growing demand. the sector was completely regulated till 1991. Business risk 18 . Sector controls Given the criticality of oil & gas in the national economy. The import bill for FYOO was Rs528bn and if the situation continues. Numaligarh Refineries Ltd (NRL). To do this. 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. 7 are owned by Indian Oil Corporation (IaC). The government is also reacting in this direction. With the ushering of liberalization.
USA. with the demand growing . 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. Risk is thus spread widely. Horizontal risk spreading envisages acquisition of large acreage in varied geological environments consisting. An estimated US$50mn may have to be spent over a period of 3 to 6 years. In order to counter this business risk. the successful ventures have to generate sufficient profits for the unsuccessful ones to keep the business going. before one realistically conclude whether the field is fit to be fully developed for commercial exploitation. Vertical risk spreading envisages farming-out participating interest to other oil companies in the oil fields owned by the other companies. Burma oil was the only company engaged in E&P. Tens of millions of dollars may well have been spent without discovering a viable oil & gas field.000 bpd. just seven years after drilling of the first oil well in Pennsylvania. the government recognized the need to explore hydrocarbon resources and accordingly set 19 . EXPLORATION & PRODUCTION SECTOR IN INDIA Historical perspective Exploration activity started in India way back in 1866 in the north eastern state of Assam. Given this inherent risk in business where inputs can be determined and outputs are probable.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. E7P companies are spreading both horizontally and vertically. various categories of sedimentary basins.
no progress was achieved and the contracts had to be relinquished. the exploration cost was borne by the private parties and NOCs had to bear minimal license 20 . In 1993.ONGC was converted into a public ltd company in 1993. Burma oil was also merged with Oil India Ltd (OIL). strictly from purity and specific gravity of point of view. Although three licensing rounds were completed by 1986. The crude produced in the Onshore fields typically is about 32° API with about 0. The NOC market their produce directly except natural gas. is considered to be very light and sweet and comparable with Nigerian Light Crude. Private sector participation and Production-Sharing Contracts(PSCs) Private sector participation in the E&P sector started in 1974.03% sulphur. this was however taken over by GOI in 1981. Till the 8th round. the Government introduced a policy of round-the –year bidding and till 1995. eight licensing rounds were completed. In our opinion.up Oil & Natural Gas Commission (ONGC) in 1956. Quality of crude produced in India The crude produced by ONGC in the Bombay offshore basin. 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. ONGC and OIL enjoy the status of National Oil Companies (NOC) and have a duopoly with about 90% and 10% share respectively. The fourth licensing round was completed in 1991 when two blocks of the Bombay Offshore basin were awarded licenses. by awarding exploration license. which is distributed through Gas Authority of India Ltd(GAIL). typically about 38° API with about 0.20% sulphur and comparable with Minas crude from Indonesia.
21 . The reasons for poor response both for exploration and seismic surveys can be summarized as under. which can be a minimum of 25% and a maximum of 40%. Till date. Thus it proved to be a joint venture with exploration & production costs being shared in the ratio of participating interest. 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. four oil fields have been given for commercial exploitation to private sector players. On discovery . The Government has also floated two rounds of licenses for conducting speculative seismic surveys. Panna & Mukti oil fields have been bagged by the Reliance/ Enron combine. 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.fees and enjoyed a carried interest of 30%. 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. These speculative rounds have however elicited poor response . of which the Videocon / Marubeni has bagged the Ravva oil field combine and the Tapti. 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.
22 . The market share of these companies during the last three years is given below.542tmt was sold by PSU majors and the balance being. of the estimated total consumption of 74.• The size of blocks offered is too small. With the introduction of parallel marketing scheme. direct imports by industrial consumers. given the price distortion between the products marketed by PSU oil majors. Thus. Marketing scenario Currently. However. • Time taken to award a contract runs into several years. their share of marketing is miniscule. their market shares are not expected to grow unless prices of these products marketed by PSU oil companies are determined. SKO and LPG is being marketed by a few new entrants into the sector. IaC. 72. In the year 1995-96. HPCL. BPCL and IBP market all the petroleum products. • Several post-contract clearances are required to start the operations.688 tmt about 690 tmt was sold by parallel marketers.
4 3 HPCL Tmt % 1258 19.YEAR 2001/ 02 2002/ 03 2003/ 04 IOCL Tmt % 3630 55. A portion of MS/HSD is also sold to direct industrial consumers.5 2 BPCL Tmt % 1322 20.3 8 20.2 8 1415 0 1540 0 2 19.49 While the market share of IOC and IBP has been continuously falling. The break-up of MS/HSD sales into retail and direct. 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.51 4.2 8 1478 0 1580 0 0 20. Year MS HSD Total Total 23 .4 0 3984 6 4218 0 3 54.9 4 54. the market shares of BPCL and HPCL have been on the rise. Of the products marketed by oil companies.5 1 19. 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.57 2127 3 3475 43.9 3 IBP Tmt % 2991 4. over the last two years is below. MS & HSD can be categorized as retail products where the oil companies fight for the market share and sale growth.
14 % 75.86 % 24.Retail 2000-01 2001-02 2002-03 2003-04 4511 4820 96.33 Tota l 4688 4986 - Retail 24240 26660 75.63 Direct 8019 8590 24.22 % 96.37 Total 3005 9 2525 0 - Retail Direct 2875 1 3148 0 8196 8576 - % % % MS/HSD Segment-wise sales of oil companies Year 2001-02 002-03 2003-04 Year 2001-02 2002-03 2003-04 MS Retail MS Direct Total IOC BPCL HPCL IBP IOC BPCL HPCL IBP MS 1359 1240 1068 306 172 5 5 1 4146 1554 1392 1218 347 159 9 8 1 4688 1672 1492 1287 371 150 8 7 1 4988 HSD Retail HSD Direct Total 8575 5507 4913 202 563 712 803 102 28279 9885 1088 8 6346 7014 5737 6264 8 227 1 249 1 9 603 6 652 5 953 1031 937 978 94 55 32259 35246 24 .78 % 3.67 % Direct 177 166 3.
Due to non-availability of tank-wagons. The current mode of transporting POL products is discussed in the following paragraphs. IOC is a very large player in the direct market with 90. expenditure on movement of POL products by road results in serious drain of foreign exchange. the infrastructure for movement of petroleum products is woefully inadequate ofor handling the growing volume of POL products.Thus. 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. The losses due to road/rail transportation are also 3 to 5 times higher compared to transportation through pipelines. 25 .0% share in HSD-Direct.4% share in MS Direct and 76. Not much thought has been given for development of pipelines. Transportation and distribution of products Considering the geographical spread of the country. In a country where oil is being imported.
Mobilization of venture capital required for building national oil industry. • Acquisition and absorption of new technology for reserve accretion.0 20.00 -412. providing level playing field to all companies in bidding for blocks.0 90.0 98.0 7.0 -102.Standard LPG filling and Bitumen filling at refineries Refinery BPS-M HPC-M HPC-V MRL CRL IOC-B IOC-H IOC-M IOC-K IOC-G IOC-D Total LPG Filling Bulk 203. • Enhancement of domestic production through reserve accretion in India and abroad. 26 .0 1564.8 15.0 -180.0 --85.0 182.0 98.0 --753.0 200. relinquishment etc and providing international price for domestic crude produced by them.0 6.0 -16.0 84.0 Cylinder 156. allowing them to market their own produce.0 20.0 32.0 200.0 330.0 300.8 Exploration & production • Increasing the competency of ONGC & OIL by empowering the Board of Directors to diversify into downstream.0 28.2 37.2 Bitumen Drums 480.0 60.
• On all new findings. 27 . royalty will be 5% for the first 7 years.• Simplifying procedures in awarding production-sharing contracts. For deep-water areas beyond 400 meters depth. provision of fiscal incentives and rationalization of tariff structure. SALIENT FEATURES OF NEW EXPLORATION LICENSING POLICY (NELP). • Assignment of regulatory and monitory functions to Directorate General of Hydrocarbons (DGH ) which shall be an autonomous body.50% for inland and 10% for offshore areas. • Total freedom to market crude in the domestic market. • Tax holiday for 7 years after commencement of commercial production from blocks in northeastern region. • 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%. cess abolished and royalty made advalorem at12.1997 • International price to be paid for crude oil extracted from new wells to all companies including ONGC & OIL.
fair return to investors and to prevent abrupt price movements. • Freedom to PSC awardees to transmit.• ONGC/OIL to compete with other companies for winning licensees. • Freedom for setting up spur-lines and city distribution lines. • In the initial phase the sector may be opened up for private participation. • Introduction of Common Carrier Principle for pipelines. • A regulatory body that shall lay down transparent rules required to ensure a level playing field. distribute and market the gas produced by them. In the next phase when optimal infrastructure has been created. to ensure environment protection. to lay down safety practices. fair return to investors and to prevent abrupt price movement protection. all further 28 . • Freedom to foreign companies/ private sector parties to set-up terminals and pipelines and freedom to import store and distribute LNG. Natural gas • Market deregulation to be done in phases as the domestic industry is in a nascent stage.
by withdrawal of SPE mechanism and thereafter-full decontrol. by giving freedom to oil companies to appoint dealers/ distributors. • 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.steps to be taken for complete deregulation subject to compliance of rules laid down by regulatory body. 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. Tariff & pricing reforms The pricing and tariff reforms to be done in phases as per timetable given in next paragraph. 29 . Decanalisation of petroleum products Continuation of administered pricing for mass consumption products till the national economy is ready to accept market-determined prices.
Rationalization of tariff structure by bringing down customs duties to 0-5% and providing a maximum tariff protection 25% on famished products. 30 . The decontrol of the sector would give more strength to these companies to pursue their goals with greater vigor. both for oil & gas. In our opinion. A PROFILE OF “RAJAHMUNDRY ASSET O.G. The New Exploration Licensing Policy has already given a thrust and direction to the reforms in the upstream sector.N. the outlook for the upstream sector is extremely positive.C Ltd. Tariff rates to be bound as per WTO. natural gas could turn out to be a dark horse for the E&P and Distribution companies. with virtual decontrol of the sector for oil & gas explored and produced in new oil fields. Future scenario With the widening gap between demand and supply.
000 sq.The Oil and Natural Gas Corporation Ltd.C in the southern part of India started was way back in 1958. 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. profits and overall performance. 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.G. O.N. on land in Andhra Pradesh and about 25.N. 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. 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. more than 350 wells have been drilled in the Krishna Godavari Project leading to the discovery of around 125 oil and gas bearing 31 . The O. After the start of commercial gas supply to its first consumer M/s Delta Paper Mills in February 1988. km Offshore (up to 200 m water depth ).000 sq.C IN KRISHNA GODAVARI PROJECT The planned exploration work of oil and gas by O.G. km. (ONGC ) the largest oil exploration and production (E&P) company in our country producing crude oil. As on date.N. The progressive presence of this oil giant has been felt in the state of Andhra Pradesh since 1978.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.G.
is above 200 tons per day and the average gas production on daily basis is approximately four million standard cubic meters (MMSCM)i.N. Ponnmanda. Lingala and Mori and gas producing fields are Mandapeta. The average oil production. Kesavadasapalem. Pasarlapudi. etc. the major oil producing fields are Kesanpali (West). which includes the condensate from the gas.G.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.C are committed in this relentless search for which the oil company has already incurred a cumulative expenditure of around Rs. Six EPS (Early Production System) and three CGS (Gas collection Station) are being operated by O. Advipalem. 32 . Elamanchilli. Lankapalem.N.C in Krishna Godavari Project. O. Kaiikalur. 40lakh cubic meter (LCM) per day. is also in progress. Installation offshore well platform at GS-15 and GS-23 a Mini refmery at Tatipaka.N. Razole. A workforce of around 1500 professionals of O. Penumadam.e.G. it has also taken up various projects for expansion of oil and gas installations at Kesanpalli and Advipalem.N. The success ratio of drilling in Krishna Godavari Basin 1:3 which are far above the world average 1:9. Narasapur Endamuru and Tatipaka. 3000 crores. for exploration and production activities. Additionally. During the current planed period for more and more oil & gas in the Krishna Godavari project O.C has emphasized high thrust for exploration activities by adopting highly sophisticated and state of the are technology for extensive drilling operations. At present seven on-land Rigs.G. gas supply form isolated gas wells.wells. Kulkipalli.
thereby stimulating industrial growth in Krishna Godavari Basin and the adjoining areas. O.N.C had is one of the prominent and viable projects which shares around 10% of the O. Aesthetic. O.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.N. So far O.C total investment made in the country for exploration and production of Oil & Gas. O. cultural and social patterns and historical characteristic of the areas covered by or adjacent ot the O.N.G.C is optimistic of finding a large petroliferous field in Andhra Pradesh for sustaining the efforts of Exploration and Production activities. APSEB. O.G.G. GVK.m in onland and 25.N.000 sq.G.C K.N.N. viable clean fuel. improved about 600 km.N.C K.C drilling activities in the Krishna Godavari Project indirectly help in creating roads and bridges in the remotest areas.G project us supplying up to 40 lakh cubic meter of gas per day to various industries like NFCL.m in offshore of Andhra Pradesh.The Krishna Godavari project comes under Southern Region Business Centre of O. SPEC etc.N.G. SPGL. of new roads.000 sq k.G.G. O.N.G.C has constructed about 130 km.N. of existing roads and developed four bridges.C prefects should not be 33 .G.G.C activities in Krishna Godavari Basin committed in the relentless search of oil & gas spread over 20. O.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. k.
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.C. productive. Promoting a healthy.unduly disturbed by the project activities. 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. Work environment in the operational areas should be conductive to safe and healthy working conditions.G. As far as possible. KRISHNA GODAVARI PROJECTG IN FUELLING DEVEPMENT A Social responsible organization: 34 . Scenic landscapes. safe. every effort should be made to promote positive environmental education and create environmental awareness at all levels. Good housekeeping is an integral part of sound environment management. and aesthetically satisfying environment is the responsibility of O. historical heritage and cultural monuments should be preserved and the environment around them should be kept clean and hygienic.N.
Special measures are also taken on regular basis to split major works into several smaller parts thus enabling more and more people to benefit. It has not only met the expected standards but also has traveled far in carrying out the self. Two Vocational Educational Centers for Women (VEC) were also established in Coastal Andhra Pradesh by O.C.G.assumed social responsibilities. O.C in Andhra Pradesh.N. A few of the contributions are : Employment Generation: Through a variety of big and small contracts like public transport maintenance of civil works. 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.C legend has done much more than exploring and producing oil and natural gas.G.N. even at the cost of increasing internal administrative work. These efforts have helped thousands of unemployed youth during the pas four decades of the dedicated services of O. trading. ancillary industries providing goods and services etc.C has been working tirelessly and sincerely to help people in bettering their quality of life. employment generation efforts are being made.G.G.N. Developing local entrepreneurship: 35 .N.
10 crores for the proposed inter-state bridge between Yanam 36 . West and Krishna Districts. O. sports and culture etc.C has come forward to jointly take up repaid works of around 140 km of roads.G.C has contributed Rs. cultural expenditures on construction of infrastructure development.C.C has spent around Rs. O. Krishna Godavari Project has been earmarking and distributing substantial grants under different heads. 50 crores for socioeconomic development including construction of roads and bridges in the state of Andhra Pradesh. all of which help in bringing smiles to the faces of prople belonging to the weaker sections of society. A number of schemes were included in the community development programmes under the heads Medicare.N. Recently O. activities like improvement of community life.G. This is apart form the roads it constructs while establishing operations these areas.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.N. health education.G. Apart from grants in aid that are routinely donated to social.N.C has also donated for the construction of Bridge over.G.N.N. Vishista Godavari linking the island area. SC/ST annual component plans and social service by the “Mahila Samithi” are also taken up. So far O. In areas indicated by government of Andhra Pradesh in the East.G. Community Development Programmes: Towards ameliorating the socio-economic condition of the people O. special purpose grants for specific projects.
N. Its share in various fronts like education.C Krishna Godavari Project in Andhra Pradesh.N.G.C’s HR Vision and Mission and Policies HR Vision: 37 .N. environment protection and safety.G.G. cleanliness.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.C.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. health care and sports us and impression about the human face of O.G. literacy drive.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.N.G. with a focused division on the all round development of the community in the places of its operations as well as beyond.C has been working relentlessly and sincerely.N. The following are the O. O.G.N. O. O.C has paid around Rs.60 crores to Andhra Pradesh state Government towards royalty and sales tax during the year 2000-01.
responsive and competent human capital”. • To develop business leaders for tomorrow.through empowerment. opportunities for growth and providing challenges in the job. • To provide job contentment . • To build and upgrade competencies through virtual learning. HR STRATEGY 38 . well being and enrichment”.To attain organizational excellence by developing and inspiring the true potential of company’s human capital and providing opportunities for growth. 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. • To foster a climate of creativity. • Inculcate high understanding of ‘Service” to a greater cause. HR Objectives • To develop and sustain core values. accountability and responsibility. innovation and enthusiasm. • To enhance the quality of life of employees and their family.
focus of the HR Strategy is on change of the employees’ ‘mindset’. trust and respect. inculcating involvement and exposure to benchmarking in performance.• To meet challenging demands of the business environment. • Developing Human Resource through virtual learning. ROLE OF HR 39 . • Inculcating a sprit of learning & enjoying challenges. opportunities for growth and providing challenges in the job. • Re-strengthening mutual faith. • To build and upgrade competencies through virtual learning. • Re-engineering and redeployment for maximizing utilization of HR potential. • Building quality culture and resources. providing opportunities for growth.
• Enhance productivity and performance by developing employee Competency and potential. • Developing Professional attitude and Approach. Measuring HR Performance • HR Parameters have been incorporated in the MOU by ONGC since 1994-95. • HR as a change agent. • Developing ‘Global Managers’ for tomorrow to ensure the role of global players. • HR Parameters of MOU for 2000-2001. • ERP for HR-Project SHRAMIK. HR AUDIT • IR for enhancing efficiency and productivity. which enables and facilitates time bound initiatives. • Shift from support group to strategic partner in business operations. • Action Plan and Implementation for achieving HR mission and objectives. 40 .• Alignment of HR vision with corporate vision. • Training and development. • Roll out of Succession Planning Model for identified key positions. • Transformation of ONGC-HR as facilitator and Change Agent for Pilot Implementation at WRBC. to systematically and scientifically evaluate effectiveness of HR Systems.
• Quarterly Incentive. INCENTIVE SCHEMES TO ENHANCE PRODUCTIVITY • Productivity Honorarium Scheme. Grievance Handling Scheme and Suggestion Scheme. • Jon Incentive. INDUSTRIAL RELATIONS AND LABOUR WELFARE AT A GLANCE 41 . The Company cares for each & every employee and has in-built systems to recognize & reward them periodically. • Group Incentives for cohesive team working. vibrant& self-driven team. Motivation plays an important role in HR Development. • Reserve Establishment Honorarium. A Motivated Team HR policies at ONGC revolve around the basic tenet of creating a highly motivated. In order to keep its employees motivated the company has incorporated schemes such as Reward and Recognition Scheme.• Introducing the concepts of mentoring and knowledge management. with a view to enhance Productivity. • Roll out of Succession Planning Model for identified key positions. • Conducting a Climate Survey to identify areas for OD interventions.
whereas in the developed countries. Hence a new industrial culture has to be taken into account. combined with the Indian governments beings of workers. certainly much higher than what the workers in the unorganized industrial or agricultural sector were earning. However. All this was initiated immediately after Independence. This is a short approach at the group level-Management and unions. If a problem crops up. Grievance machinery and discipline are characterized by many observers of industrial relations as the twin pillars of industrial relations. as a leading actor in Indian industrial relations (IIR). Obviously service sector industries will have a larger percentage. in India efforts were made to remove some of the appalling conditions as they were completely out of tune with the changed times. The cost of human resources as a percentage of operating expense in the organized sector has been showing a steady increase. It has played a dual role-one as the i8nitiator of policy and the other as an employer. both in terms of manpower as well as in terms of continuity of action or though.INDUSTRIAL RELATIONS: Over the years. or owner. labour legislation and government controls were slower to evolve. by setting up an extremely large public sector. Both are needed not merely as communication channels but to further 42 . The Government has had a major role to play. with the paid industrialization of India. The industrial relations function was not given the importance it deserved. a massive organized sector employing a large work force has come to occupy an important and visible part of the country’s economic life. but even in manufacturing it has increased steadily. The top management usually dealt only with major crisis situations. defuse it and come to an immediate solution so that the wheels of production do not grind to a halt. 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 achieved at a cost. The base of worker pay and other benefits was established at a certain level.
e. collection comments from the section concerned. Handing of Industrial Disputes at conciliation stage i. 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. Interacting with collectives. Arranging Bilateral Meetings. Handing of Strikes – Drafting of Appeals.organization goals and viability. Advising and Guiding Functional Heads with regard to implementation of the provisions of Labour Laws. Drafting replies to be filed before the conciliation officer. circulating the same and follow up action thereof. maintaining rapport with them and sensitizing employees. Providing necessary clarification in matters relating to Labour Laws such as payment of Bonus Act. FUNCTIONS OF IR: IR Section acts as a Nodal Agency/Buffer between management and collectives. Gratuity Act 1972. and sending daily situation report to Hqrs. 1962. Representing Management in the conciliation/ joint meetings. disruption of activities if any. Payments of 43 . Effective management of industrial relations needs both and not just one of the two pillars. Assisting. Contract Labour (R&A) Act 1970. Coordinating with various Department during the strike period. Submission of Periodical Reports & Returns to Head Quarters. drawing minutes. collection information relating to absenteeism. Circulars. Payment of wages Act 1936. Letters on receipt of Strike notices from the Collectives.
Canteen Management at Base Complex. WDF and other welfare bodies. Matters relation to EWC. Grievance Management System – Coordination. Organisation farewall functions for Employees Retiring. Other duties / functions incidental to the above which arise from time to time. Mines Act 1952 etc to the functionaries as and when clarification is sought. processing their claims. Maintenance of files of Casual Workers. Processing the cases under workmen compensation Act. Preparation of their monthly wage bills. Minimum wages Act. 1936. Welfare functions both statutory & non statutory. 44 . Mahila Samithi. Matters relating to workers education. Attending cases of emergency in case of accident/ death of an employee.wages Mines Rules.
social values and customs degree of industrialization the general socio-economic development of the people and the political ideologies prevailing at particular moments. Thus the term welfare is a comprehensive term. Such activities may differ from country to country and from region to region and firm to firm. A few of these definitions are given below. It is also molded according to the age. Economic betterment of workers provided by any agency." Chamber's dictionary: "welfare as a state of faring or doing well freedom from calamity enjoyment of health prosperity" 45 . However efforts have been made by expert bodies their concept in their own way. Different authors say the meaning of welfare: The oxford dictionary defines "Labour welfare as efforts to make life worth living for workmen. provident fund benefits and pension etc.CONCEPTS OF WELFARE The concept of labour is flexible and elastic widely with times. region. Moral. Group sex. socio-cultural level of workers in various industries. which connects with social. industry. including sickness and maternity benefit schemes. country . which includes any activity. The labour welfare investigation committee preferred to include under labour welfate.
"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.The encyclopedia of social sciences defines.R. welfare measures of personnel in an industry were given very less importance. which has to be kept in a good working order with proper lubrication to enhanced production. which was the begining of the 46 . at is required by law the customs of the industry and the conditions of market". Importance of welfare measures Welfare in the border sense means well-being of the personnel working in the organization. Thus came the concept of labour as the machine. In the initial stage of industrialization. R. 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. There was also the goodwill concept of labour. welfare measures directly relates to human and in particular workers of an organization. The primitive concept of workers linked it is to a commodity or an intimate object without any human characteristics.Hopkins: welfare is fundamentally an attitude of mind on his part of management activities is undertaken. but still regards as lifeless.
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.
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.
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.
Agartal . any Employees posted at other than Once in each calendar year to home-=town and home-town once in a block of four years.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. The term "family members" for the purpose of LFA includes parents. LFA may be availed of only once. Dehradun. 51 .Once in a block of four years to antny pl towns place in India. Cambay. in lieu of one LFA for home. EDUCATION FACILITIES (a) Central school ONGC take special interest in the overall development of the children of its employees. Lakwa. Panvel. Mehsana. Harzira and Rajahmundry. Unmarried sisters and minor brothers are also included in the "family members' for employees who joined ONGC on or before 1st June 1987. to any place in India than home-town. Baroda. Sivasagar. In pursuance of this objective. Ahmedabad. However in any calendar year. Ankleshwar. Jorhat. ONGC has funded setting up of Kendriya Vidyalayas (Central Schools) at its main work Centres like Nazira. Silchar. children residing with and wholly dependent on the employee.
(c) Merit Scholarship ONGC grants Merit Scholarship to the meritorious students from vth Standard to xth Standard. (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. (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. ONGC reimburses tution fee and stationery charges to the employees. Post-graduate and Professional Courses. Graduate. 52 . Intermediate.(b) Children Education Allowance: In addition to setting up of schools. This fare is admissible where journey is more than 150 kms. 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.
their family members and dependent parents. who stay in a hostel or residential school for the purpose of their academic pursuits. SOCIAL SECURITY In order to provide adequate social security cover to the employees. which can be availed at specialized centres of certain work centres and also at reputed medical centres in the country. on a nominal contribution. (g) Scholarships for SC & ST Students As a social welfare measure. Medicare is also extended to all retired employees and their spouses. ONGC has introduced Scholarship Scheme to encourage deserving students of SC/ST Community for undertaking higher education. ONGC has introduced a Composite Social Security Scheme with effect from june 1998. MEDICAL FACILITIES ONGC has a generous medicare scheme for its employees.(f) Hostel Subsidy ONGC grants Hostel Subsidy to the Children of ONGC's employees. 53 . at par with those in service. 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.
1923.8 lakhs to Rs. This amount is in addition to all other benefits / relief available to the employees under various schemes.10 Lakhs in the case of executives and Rs. 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. 1995.per month from non-executives shall be dedicated and equivalent amount be contributed from the company's fund.12. A contribution of Rs.00 Lakhs depending on the case.260/.130/. The employees of ONGC who sustain permanent total disablement or die due to accident or H2S exposure while on duty. Retirement & Terminal Gratuity) Rules. The benefit to the dependents /employees on death while in service / permanent total disablement resulting in separation from the Corporation is Rs.5 Lakhs to non-executives. COMPENSATION FOR ACCIDENT WHILE ON DUTY The employees of ONGC who met with accident while on duty.The Scheme covers all the regular employees of ONGC as on the date of its introduction. 54 . are paid financial assistance of Rs. to its employees for their good. are eligible for compensation under the Workmen's Compensation Act. GRATUITY ONGC grants gratuity under ONGC (Death. efficient and faithful services.per month from the executives and Rs.1. 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.
1995 for non-executives of ONGC. in order to meet Post-retirement needs of employees and to provide safety net during the service. Every employee has to subscribe equivalent of 12% of salary and Corporation contributes an amount equivalent to the employees' compulsory contribution.04. 1995 and has been implemented with due approval of the Ministry of 55 . All the employees of ONGC are regulated by ONGC Employees Contributory Provident Fund Regulations. 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. POST RETIREMENT BENEFIT SCHEME The ONGC Self-Contributory post Retirement and Death in Service Superannuation Benefit Scheme' (PRBS) has been in operation since 01. Every employee except a trainee or an apprentice has to be a member of the Fund from the date of his/her joining ONGC. This is in lieu of Employees Pension Scheme. religious ceremonies etc.1990 for executives and from 16.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. Employees are granted advances out of their own share of contribution for meeting the expenses of the marriage of dependants. higher education of children.11.
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. The Scheme is compulsory for all employees of ONGC and selfcontributory.000/. 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. Under this Scheme the beneficiaries will be admissible for ex-gratia ranging from Rs.Petroleum and Natural Gas.100/.1959.1959 and post 14.per annum.750/.per month depending upon their pay scales at the time of their separation from the Corporation. who have superannuated / voluntarily retired / died while in service after rendering a minimum ten years of service. 56 .10. and the Trust thereof has also been duty recognised by the Income Tax Authorities. After death of the ex-employee.6. 'AGRANI SAMMAMN'M EX-GRATIA BENEFIT SCHEME ONGC has recently introduced 'Agrani Samman Ex-gratia Benefit Scheme for its employees of pre-15.to Rs. the spouse is eligible to 50% of the ex-gratia amount that was / would have been admissible to the deceased employee. ONGC also contributes Rs.10. Government of India.
ONGC pays house rent allowance to those employees who reside in their own houses or leased houses. at a nominal rate of rent. 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. The employees can also purchase a two-wheeler or a car by way of an advance. 57 . ONGC has Constructed about 144 residential blocks for its employees at its base complex at Rajahmundry.HOUSING ONGC strives to provide comfortable housing as far as possible to its employees. who could not bring their families to their place of posting for various reasons like children education. In addition. ONGC has also provided accommodation to those employees. 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.
Billiards. 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. 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. Tennis. Table Tennis. ONGC encourages participation of its employees in adventure sports like mountaineering.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. once in a block of two calendar years. ONGC is a member of Petroleum Sports Council Board (PSCB). 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. Cricket etc. ONGC Himalayan Association (ONGCHA) Through the ONGC Himalayan Association. river rafting. Badminton. Excellent infrastructural facilities exist for various sports like Squash. Football. desert safaris etc. Hockey. 58 .
ONGC has adopted 59 . Associations ONGC encourages dialogue with various association which look after the interest of diverse groups of the ONGC family. ONGC pays social attention to the social development and economic upliftment of the local populace and environment in which it operates. Employees Union. All India SC/ST Employees Welfare Association. maintain and improve various welfare amenities. Social Development Apart from its objectives and mission to achieve self-reliance. WIPS (Forum of Women in public Sector ) etc. For instance there are Association of Scientific & Technical Officers (ASTO). These Committees are responsible for promoting local sports and cultural activites at respective work centres. Employees Welfare Committees To organise. ONGC has setup Employee Welfare Committees in all its work centres. ONGC also provides equal opportunities and en empowering environment to its women employees.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.
villages. coffee. WASH BASINS The new office building consists of three floors. urinals. 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. URINALS. The Building is maintained cleanly in good hygienic conditions by engaging about 60 labourers. Each wing has been provided with adequate number of latrines. divided into three wings. The entire office premises are being Centrally air-conditioned shortly. Snacks. 60 . meals etc. wash basins at appropriate places and are maintained regularly. LATRINES. assisted local bodies in building roads. CANTEEN A full-fledged canteen with all infrastructure facilities is provided at base office for the employees of the Asset. are provided to the employees on payment basis. school buildings and provided assistances to various minority groups through community development programmes. The canteen is being run by a contractor and tea. bridges. CLEANLINESS The Rajahmundry Asset of ONGC has shifted its administrative office to its won premises constructed as its Base Complex.
socks. dungarees. working at drill sites. air-conditioned accommodation is provided to the employees working there. gloves etc for the safety of its employees. DRINKING WATER Drinking water facilities are provided adequately at base office as well as drill sites and other installations. helmets. ONGC is spending more than sixty lakh rupees a year on account of kits & Liveries. REMOVAL OF WASTES AND ENVIRONMENT PROTECTION Wastes and effluents are removed from time to time both at drill sites and at offices. catering facilities are provided to the employees. uniform.At the drill sites and other installations. The Corporation is providing its employees. KITS & LIVERIES ONGC is always in forefront to provide safety to its employees. shoes. For this purpose of number of house-keeping personnel are appointed to maintain good hygienic conditions. 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. 61 . round-the-clock at free of cost.
Since then. tree plantation has been taken up a regular activity in ONGC. a take plantation. WOMEN DEVELOPMENT FORUM The Women Development forum in the Asset was established in 1998. Realising the importance. Non-executives were sent for trainings conducted by Central Board of Workers Education at Visakhapatnam under Ministry of Labour. skills and abilities. the Forum has played a constructive role in the activities of the Asset 62 .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.A sure step towards environment protection. TREE PLANTATION Tree 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. Government of India. Every year.
library-cum-reading room etc. sports. The association is closely working with the Rajahmundry Asset in the implementation of its socio-economic development programmes. maintain and improve various welfare amenities. Rajahmundry Asset has setup an 'Employees Welfare Committee' to organise. This committee is responsible for provision of indoor and outdoor games. VOCATIONAL EDUCATION CENTRE FOR WOMEN ONGC Rajahmundry Asset started Vocational Education Centre for Women at Rajahmundry and Amalapuram in 1998. general books and periodicals has been established Rajahmundry Asset for knowledge and reference of the employees. cultural activity.ONGC MAHILA SAMITI The Mahila Samiti is an association of the wives of ONGC employees. athletic activity. old age homes and physically challenged women. Employees Welfare Committee As part of the ONGC policy on welfare measures to its employees. Spoken & Written English and Computer Awareness Courses and Distributing Certificates and scholarships to the trained women. Presently the vocational Education Centre is conducting Tailoring. The Mahila Samiti is making pioneering efforts in helping women from poor families. 63 . Beauty Culture. LIBRARY A full-fledged library with all relevant technical. Embroidery and Fabric Painting. scientific.
indoor badminton. table tennis. skating. football. At Rajahmundry there are numerous sporting facilities like lawn tennis. golf. At ONGC Base Complex there is a fully equipped gymnasium and a children park. basket ball.SPORTS Rajahmundry Asset of ONGC is marching ahead in development the infrastructure facilities for sports and excelling in the sports arena of ONGC. 64 . squash.
G. of Responses 190 0 10 200 % of responses 95% 0% 5% 100% Source: Questionnaire The above table depicts respondent’s viewpoint to the extent of awareness of welfare measures.C but. measures. 65 . From the above analysis we can know that all of them are totally aware of the welfare measures providing for employees in the O. very few are not aware due to the communication gap and also few of them are not clear but what comes under welfare measures. OF RESPONSES Responses YES NO PARTIALLY No.1.N. 5% 95% % of them are totally aware of the welfare Of them partially aware of the welfare measure and 0% are not aware of the welfare.Are you aware of the welfare measures provided by ongc? Serial Number 1 2 3 TOTAL NO.
and 0% from their superiors. of Responses % of Responses your 0 0% 10 180 10 5% 90% 5% superiors 2 Co-Workers 3 Circulars 4 Unions 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 .5% 0% YES N O PAR IALLY T 95% 2. 66 . Rest of the responders comes to know 5% through unions.How do you come to know about the new welfare measures being introduced in the organization? Serial Number 1 Responses Through No.
Environment&Hygiene % of Responses Very Good 10 5% 10 5% Good 50 25% 80 40% Satisfied 80 40% 70 35% Poor 60 30% 40 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 .Canteen Facilities Responses a.5% 0% 5% THROUGH YOUR SUPERIORS CO-WORKERS CIRCULARS 90% UNIONS  Statutory Welfare measures 1.Food % of Responses b.
N.C 5% 30% 25% VERY GOOD GOOD SATISFIED POOR 40% 68 . And 30% of the responders are not satisfied with the facilities providing in the O.organization.G.
of Responses 10 50 60 80 200 % of Responses 5% 25% 30% 40% 100% Source:: Questionnaire 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.20% 5% VERY GOOD GOOD 40% SATISFIED POOR 35% [b]Drinking Water Serial Number 1 2 3 4 Total No. of Responses Responses Very Good Good Satisfied Poor No.And 40% of the employees are not satisfied with the drinking water facilities providing for them. 69 .
And lastly 5 % of the respondents are poor with facilities. of Responses 30 100 60 10 200 % of Responses 15% 50% 30% 5% 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 .5% 40% 25% VERY GOOD GOOD SATISFIED POOR 30% 4. of Responses Responses Very Good Good Satisfied Poor No.First Aid Facilities Serial Number 1 2 3 4 Total No. 70 . 30% of the employees are satisfied with the facilities.
5% 30% 15% VERY GOOD GOOD SATISFIED POOR 50% 5. of Responses Responses Very Good Good Satisfied Poor No.Toilets Serial Number 1 2 3 4 Total No. of Responses 30 100 60 10 200 % of Responses 15% 50% 30% 5% 100% Source: Questionnaire 71 .
Leave Facilities Serial Number 1 2 3 4 Total No. of Responses Source:Questionnaire Responses Very Good Good Satisfied Poor No. of Responses 120 50 30 00 200 % of Responses 60% 25% 15% 0% 100% 72 . 5% 30% 15% VERY GOOD GOOD SATISFIED POOR 50% 6. 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. once if we see the analysis that most of the employees responded above satisfaction level regarding the maintenance of the toilets in ongc.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 .
and 5% of 73 . As the employees are having adequate number of leaves they are totally satisfied in this welfare measures. We can say that the leaves for ONGC employees are more than they required. of Responses Very Good Good Satisfied Poor No.The above table depicts that the respondents are very much satisfied with the number of leaves they are having.Safety Provisions Serial Number 1 2 3 4 Total No. 15% 0% VERY GO OD GOO D SAT ISFIED POO R 25% 60% 7. And we cannot take those number into count who are not satisfied because as it was very minute percentage below 1%. of Responses 50 90 50 10 200 % of Responses 25% 45% 25% 5% 100% Responses Source:: Questionnaire From the above table we can depict that the respondents about safety provisions are mostly 95 % of them are above the satisfaction.
them have responded that the t of safety facilities are poor with that of safety providing in the O. Responses Very Good Good Satisfied Poor No. of Responses Source:: Questionnaire The above table depicts that 45% of the employees are satisfied with the educational facilities provided to them. of Responses 110 80 10 00 200 % of Responses 55% 40% 5% 0% 100% 74 .Educational Facilities For Employee Children Serial Number 1 2 3 4 Total No.G.C 5% 25% 25% VERY GOOD GOOD SATISFIED POOR 45% Non-Statutory welfare measures 1.. 55 % of gave an excellent opinion over the educational facilities.N.
There is no unsatisfied employees. As a major portion of the employees are satisfied 75 . of Responses 150 50 00 00 200 % of Responses 75% 25% 0% 0% 100% Source: Questionnaire Almost all of the employees are satisfied with the medical facilities.Medical Facilities Serial Number 1 2 3 4 Total No.G.N. of Responses Responses Very Good Good Satisfied Poor No.C.5% 40% 0% VERY GOOD GOOD 55% SAT ISFIED POOR 2. 75 % are highly satisfied with facilities provided by O.
Housing Facilities Serial Number 1 2 3 4 Total No.with the medical facilities due to free treatment. of Responses Responses Very Good Good Satisfied Poor No. 0% 25% 0% Very Good Good Satisfactory 75% poor 3. of Responses 100 90 10 00 200 % of Responses 50% 45% 5% 0% 100% Source:Questionnaire 76 .
of Responses Responses Very Good Good Satisfied Poor No.From the above table we can depict that 50 % of the employees have responded that the housing facilities are very good and responded they are good 5 % are satisfied and only few of 45 % % have are not satisfied with the facilities providing for the employees at quarters. 5% 0% 50% Very G ood Good Satisfactory poor 45% 4.Co-operative Society Serial Number 1 2 3 4 Total No. From the above analysis we can conclude that most of hem are above the satisfaction level regarding the facilities at quarters. of Responses 30 90 70 10 200 % of Responses 15% 45% 35% 5% 100% Source:: Questionnaire 77 .
The above table depicts that 95 % of the employees are above satisfied with the co-operative societies due to the nearness from resident. 5 % 3 5% 1% 5 V ry G d e oo Go od S tisfacto a ry p or o 4% 5 5. This figure suggests that 95% of total employees are satisfied with the cooperative societies due to large number of items available at a has a cooperative store . of Responses 40 60 50 50 200 % of Responses 20% 30% 25% 25% 100% Source:: Questionnaire 78 .so it very near to all residents. discounted price. A negligible 5 % are unsatisfied.Recreation Facilities Serial Number 1 2 3 4 Total No.35 % of the employees are satisfied. of Responses Responses Very Good Good Satisfied Poor No.
of Responses 140 00 60 200 % of responses 70% 0% 30% 100% Source:: Questionnaire 79 . OF RESPONSES Responses YES NO PARTIALLY No. 25% 20% Very Good Good Satisfactory 25% 30% poor 6.C are above the satisfaction level.N.From the table we can depict that an overall 75% of the employees are respondendthat the recreation facilities providing in the O. But 25% of the employees are not satisfied.G.Are The Welfare Officers Helpful To You? Serial Number 1 2 3 TOTAL NO.
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. 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. of Responses 160 0 40 200 % of responses 80% 0% 20% 100% . The welfare officers by name it self say that they are here to look after the welfare of the employees working in the organization.Are You Satisfied With All The Welfare Measures Providing In The ONGC Serial Number 1 2 3 TOTAL NO.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. 3% 0 Y S E N O P R IA L A T LY 0 % 7% 0 7. OF RESPONSES Source:: Questionnaire The above table depicts that most of the employees responded that80 % have agreed that welfare measures providing to the employees in the ongc 80 Responses YES NO PARTIALLY No. But30 % of them are not satisfied because the reasons may be personal.
But20 % of them are not satisfied with the welfare measures providing to them 20% 0% YES NO PARTIALLY 80% FINDINGS 1.are good and they are satisfied. The Welfare Measures Provided by the company are Good and 81 .
2. 8.There Should be Permanent Display about the Welfare Measures in the O.The Employees are Satisfied with the Medical Facilities Provided by the Company.Satisfactory.G.C to make aware of the Employees. The Employees are treated with greater respect and taking care of their Employees.N. 7. 82 . The Employees are Satisfied With Their Job and also with the Welfare Facilities Provided to them.G.The Cleanliness of work area in the company it is Maintained with high cleanliness.C 3. The Employees are Satisfied with the Incentives given by the company.The Employees are not satisfied with the Canteen facility providing by the company. SUGGESTIONS 1. 5. 4.N. 95% Of the Employees are aware of all the Welfare Measure Provided by O. 6.
old aged persons who visit the offices for their work etc.There should be provide ATM Facilite with in the premises. If a medical doctor and first aid facility is provided at the base complex. If this facility is considered. 5. 8.It is suggested to provide drinking water through a centralized water purified system instead of the water coolers. the dispensary is functioning in the town.Canteen facilities should be improved.2. 7. pregnant ladies. it would be useful for the employees like physically handicapped. 4. However as most of the employees are residing in the town. Whenever 83 . as there may be technical problems in some of the water purifiers in some blocks or there may be some other related problems. school children during emergencies. which is three kilometers away from the based office and residential colony. it would be useful for the employees. Lift facility is not provided in the Office building.Railway Reservation Facility to be made available with in the Company.There is no guest house facility in Rajahmundry for the employees or for the employees who visit Rajahmundry from other work centres.ONGC has provided generous medical facilities to its employees. 3. The quality of the food and the cleanliness in the canteens should be maintained. 6.
and vegetables. provisions. thery are provided accommodation in the hotels. If a shopping complex is provided. even for essential commoties like milk. the residents of the colony are to go about 2-3 kilometers. For all these things. 9.they visit the office. it would help the residents at a greater extent and the residential blocks which are still vacant can be occupied by the employees. it would be convenient for the employees and also reduce the expenditure on accoujnt of arranging accommodation in hotels. If a guest house is provided. 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. 84 .
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