Training and Development- Indian Oil

TRAINING AND DEVELOPMENT
INTRODUCTION
Every organization needs to have well trained and experienced people to perform the activities that have to be done. Training is a process of learning a sequence of programmed behaviour. It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behaviour. It attempts to improve their performance on their current job and prepare them for an intended job. Development is a related process. It covers not only those activities, which improve job performance, but also which bring about the growth of the personality; help individuals in the progress towards maturity and actualization of their potential capabilities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotions and hold greater responsibility. Training a person for a bigger and higher job is development. In addition, this may well include not only imparting specific skills and knowledge but also inculcating certain personality and mental attitudes. As the jobs become more complex, the importance of employee development also increases. In a rapidly changing society, employee training and development are not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable work force. Training has played a very important role in helping the corporation to reach the commanding heights of performance. Any training would be considered 1

Training and Development- Indian Oil successful only when the knowledge gained by the participants is transferred to the job performance Training is the main function of HR. To enhance the Corporation's growth and keep the Corporation ready to anticipate all types of competition and face it too, there is a need that Human Resource should play more active role for overall progress of the Corporation. The impact of training programme is to mould the employee’s attitude and help them to synergies individual goals with organizational goals. It also helps in reducing dissatisfaction, complaints, absenteeism, and labour turnover.

DEFINITION
According to Flippo, “Training is the act of increasing knowledge and skills of an employee for doing a particular job" The major outcome of training is learning. A trainee learns new habits, refined skills and useful knowledge during their training programme, which helps them to improve their performance. Training can also be defined as activities designed to change the behaviour. Another way of defining training would be a planned programme designed to improve performance and bring about measurable changes in knowledge, skills, attitudes, and social behaviour of employees. Training imparts the ability to detect and correct error. Further, more it provides skills and abilities that may be called on in the future to satisfy organisation’s human resources needs.

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Training and Development- Indian Oil

MANAGEMENT DEVELOPMENT
Management development is an attempt at improving an individual’s managerial effectiveness through a planned and deliberate process of learning. For an individual this means a change through a process of planned learning. This should be the common and significant aim of development from the point of view of the trainer and the trainee in an organisational setting. “All development is self development. It must be generated within the main himself. Development is highly individual. The development of an individual is due to his day-to-day experience on a job. Hence, emphasis should be on experiences from day to day work. Any activity designed to improve the performance of existing managers and to provide for a well-planned growth of managers to meet future organisational needs is management development. The change in the individual must take place in those crucial areas which can be considered as output variables:•Knowledge Change •Attitude Change •Behaviour Change •Performance Change •End-Operational Results (The Last Two Changes Being The Result Of The First Three Changes)

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Training and Development- Indian Oil

TRAINING PHILOSOPHY:
Training constitutes an important component of overall Human Resource Management (HRM) strategy. It is a part of the Human Resource Management efforts of the organization that enables the employees of the organization to continuously update their functional knowledge and skills in various disciplines. The employees should be familiar with the latest technological developments, organizational procedures and system as well as various Management concepts. An opportunity should, therefore, be provided by the organization to its employees, particularly in management cadre, to attend the management training courses, who in turns can share their knowledge and experience with the juniors in the organization. One of the basic philosophies of the training programmes is to bring together participants of different disciplines from different regions so that they can exchange their work experience and the problems being encountered, with other participants. After employees have been selected for various positions in an organization, training them for specific task to which they have been assigned, assumes great importance. Training is an important activity in an organization.

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5 . and attitudes of our employees so that they can perform more productively and achieve the business goals. Objectives Of Training The overall training objective is to develop required knowledge. in achieving this objective. To Teach The Employees The New Technique And Ways Of Performing The Job Or Operations. Therefore. vocational in nature o Short-term activity designed especially for operatives. It is recognized that the employees learn primarily from on-the-job experience. 2. skills. To Equip Employee To Meet The Changing Requirement Of The Job And Organization. 1. To Impart Basic Knowledge And Skill To New Entrants And Enable Them To Perform The Job Well. 3. the primarily contribution is from on-the-job training and supporting contribution from the formal training effort. o Bridge the gap between job needs and employee skills.Training and Development. o Job oriented process.Indian Oil Features Of Training o Increase knowledge and skill for doing a job.

Growth indicates prosperity. Companies. Employees become efficient after undergoing training. Even dissatisfaction. However.Training and Development.Indian Oil 4. 6 . Training contributes to employee stability in two ways. the fact that training can make an important. and government are beginning to appreciate the value of adequate. organizations. • The individual(s) involved have the aptitude and motivation needed to learn to do the job better. if not crucial. • Supervisors and peers are supportive of the desired behaviours. Flexibility is therefore ensured. complaints can be reduced if employees are trained well. Growth renders stability to the workforce. Efficient employees contribute to the growth of the organization. trained employees tend to stay with the organization. There is greater stability. and long-term investment in this function. Training makes the employee versatile in operations. To Prepare Employees For Higher Level Task And Build Up A Second Line Of Competent Managers. This is particularly true when – • The deficiency is caused by a lack of ability rather than a lack of motivation to perform. and capacity for growth in an organization. scrap and damage to machinery and equipment can be avoided or minimized through training. flexibility. which is reflected in increased profits from year to year. Accidents. Training has always played an important and integral part in furthering many kinds of human learning and development. All rounder can be transferred to any job. contribution to organizational effectiveness is only now being recognized fully. Training and Development programmes help remove performance deficiencies in employees. consistent. Further. They seldom leave the company.

7 . the organization.Indian Oil Training Is An Investment In Human Resource With A Promise Of Better Returns In Futures. enhances its human resource capabilities and strengthens its competitive edge. At the same time. Though no single training programme yields all the benefits.Training and Development. A company is training and development pays dividends to the employee and the organization. generally adding to his abilities and value to the employer. which devotes itself to training and development. the employee’s personal and career goals are furthered.

The vitality of an organization depends upon its capacity to adapt itself to change. which takes place on-the-job. expounding the belief that there are no limits to human potential and growth and such potential should be transformed into reality. Training plays a vital role in this regard.Indian Oil Role And Scope Of Training Training has been performing a very important role in helping the Corporation to reach the commanding heights of performance over the years. And the current changing environment calls for this the most. Any training would be considered successful only when the knowledge gained by the participants of various programmes is transferred to their job performance. 8 .Training and Development. Formal training efforts of the Training Centres are directed towards supplementing the primary training process. All formal training activities conducted by the Training Centres at Head Office and at Regional Offices are in line with the organizational needs. The primary role of training is to assist the employees in their pursuit of knowledge and self-actualization.

” Again. When the need arises. To Improve Quality: Better-informed workers are less likely to make operational mistakes. To Help A Company Fulfill Its Future Personnel Needs: Organizations that have a good internal education programme will have to make less drastic manpower changes and adjustments in the event of sudden personnel alterations. are most evident on the part of new employees who are not yet fully aware of the most efficient and effective ways of performing the jobs. To Increase Productivity: Instruction can help employees increase their level of performance on their present assignment. because of training. or in reference to the intangible organisational employment atmosphere. increased performance and productivity. 4. Production and product quality may improve.Training and Development. 2. Quality increase may be in relationship to a company product or service. internal promotions become stressed. Increased human performance often directly leads to increased operational productivity and increased company profit. organisational vacancies can more easily be staffed from internal sources if a company initiates and maintain an adequate instructional programme for both its non-supervisory and managerial employees.Indian Oil Need For Training The need for the training of employees would be clear from the observations made by the authorities 1. less 9 . financial incentives may then be increased. To Improve Organisational Climate: An endless chain of positive reactions results from a well-planned training program. 3.

but one of the most important of these is the current state of an organisation’s educational endeavor.Indian Oil supervisory pressure ensure. Obsolescence Prevention: Training and development programmes foster the initiative and creativity of employees and help to prevent manpower obsolescence. 10 . 6. an enlarged skill. 5. 7. To Improve Health And Safety: Proper training can help prevent industrial accidents. “Management development programmes seem to give participants a wider awareness. and base pay rate increase result. Managerial mental state would also improve if supervisors know that they can better themselves through company-designed development programmes. A safer work environment leads to more stable mental attitudes on the part of employees. Increased morale may be due to many factors. and make enhanced personal growth possible. or the inability of a person to adapt him to technological changes. and enlightened altruistic philosophy.” Again.Training and Development. temperament or motivation. Personal Growth: Employees on a personal basis gain individually from their exposure to educational experiences. which may be due to age.

There is a present need for training men so that new and changed techniques may be taken advantage of and improvements affected in the old methods. It enables management to resolve sources of friction arising from parochialism. wastage and spoilage are lessened. It moulds the employees’ attitudes and helps them to achieve a better co-operation with the company and a greater loyalty to it. for it makes employees more effective and productive. to bring home to the employees the fact that the management is not divisible. Further. for its helps in reducing dissatisfaction. it enables employees to develop and rise within the organization. reduces the rate of turnover.Training and Development. moreover. and the need for constant supervision is reduced. earning power and job security. 11 . apart from the other advantages. Training. therefore.Indian Oil IMPORTANCE OF TRAINING Training is the corner-stone of sound management. Training is a practical and vital necessity because. with all its many activities functionally interrelated. It is an integral part of the whole management programme. and increase their “market value”. It is actively and intimately connected with all the personnel or managerial activities. complaints. grievances and absenteeism. heightens the morale of the employees. trained employees make a better and economical use of materials and equipment. which are woefully inefficient.

12 . to say which of the method or combination of methods is more useful than the other. Care must be used in adapting the technique/ method to the learner and the job.Training and Development.e. It is difficult.Indian Oil Training Methods/ Techniques The forms and types of employee training methods are inter-related. if not impossible. An effective training technique generally fulfills this objective. methods are multifaceted in scope and dimension. provide further trainee’s active participation in the learning process. and permit practice where appropriate. Develop a willingness to change. • Provide a knowledge of results about attempts to improve (i. Infact. The best technique for one situation may not be best for different groups or tasks. and each is suitable for a particular situation. • • Provide motivation to the trainee to improve job performance. feedback).

when he joins a firm. the trainee learns the rules. He can. Employees are coached and instructed by skilled co-workers. by supervisors. 13 . Secondly. it is highly economical since no additional personnel or facilities are required for training. therefore be easily sized up by the management.Indian Oil VARIOUS TRAINING TECHNIQUES On–The-Job. He is learning by doing. The main advantage of on-the-job training is that the trainee learns on the actual equipment in use and in the true environment of his job. and orienting him with his immediate problems. They learn the job by personal observation and practice as well as occasionally handling it.Training and Development. It is primarily concerned with developing in an employee’s skills and habits consistent with the existing practices of an organization. In this way. from the clerk to the president. It is mostly given for unskilled and semi-skilled jobs. by the special training instructors. and it is most useful for jobs that are either difficult to stimulate or can be learned quickly by watching and doing it. a transfer from a training centre or school to the actual production conditions following the training period is allowed. Thirdly. gets a feel of the actual production conditions and requirements.clerical and sales jobs. regulations procedures by observing their day-to-day applications. gets “On-The-Job Training”. therefore. He.Training: Virtually every employee.

This technique enables the trainee to concentrate on learning the new skills rather than on performing on the actual job.Training and Development. The various advantages of vestibule training are: • • As training is given in a separate room. It is a very efficient method of training semi-skilled personnel. Its is a class room training which is often imparted with the help of the equipment and machines which are identical with those in use in the place of work. bank tellers. particularly when many employees have to be trained for the same kind of work at the same time. It is most useful when philosophic concepts. etc. In other words. conferences. and problem solving abilities have to be learned. 14 . it is geared to job duties. theories. • • The correct method can be taught without interrupting production. It permits the trainee to practice without the fear of the supervisors/ co-workers observation and their possible ridicule. It is often used to train clerks. machine operators. case studies.Indian Oil Vestibule Training This method attempts to duplicate on-the-job situations in a company classroom. distractions are minimized. typists. who knows how to teach. testers. Theoretical training is given in the classroom. attitudes. while the practical work in conducted on the production line. inspectors. can be more effectively utilized. role-playing and discussion. Training is generally given in the form of lectures. A trained instructor.

when facts. which are to be trained within a short time. The actual location may be in the company classroom or in the places. attitudes. Group Discussions 4. Lectures are essential when it is a question of imparting technical or special information of a complex nature. case studies. This method consists of: 1. esp. film shows. They are usually enlivened with discussions. Lectures 2. which have no connection with the company. 15 . which are owned by the company. Programmed Instructions 1. or in universities. Lectures: Lectures are regarded as one of the simplest ways of imparting knowledge to the trainees. Case Studies 5. role-playing. Conferences 3. concepts. the formal superior or other individual specific topics. or principles. Lectures are formal organized talks by the training specialists. It can be organized rigorously so that ideas and principles relate properly. or in associations.Indian Oil Of-The-Job Methods: “Of-the-job training” simply means that training is not a part of everyday job activity. The lecture methods can be used for very large groups. thus reducing the cost per training. and demonstrations.Training and Development. theories and problems-solving abilities are to be taught.

Presenting basic material that will provide a common background for subsequent activities. The conference is ideally suited for the purpose of analyzing problems and issues and examining them from different viewpoints. clarifying and summarizing. conducted in accordance with an organized plan. It is a formal meeting. the most important uses of lectures include: • Reducing anxiety about upcoming training programmes or organisational changes by explaining their purposes. in which the leader seeks to develop knowledge and understanding by obtaining an considerable amount of oral participation of the trainees. and on the active participation of the members involved. • Illustrating the application of rules. reviewing. A conference is basic to most participative group-centered methods of development. Learning is facilitated by building up on the ideas contributed by the conferees. the participating individuals ‘confer’ to discuss point of common interest to each other.Training and Development. • The main advantage of lecture system is that it is simple and efficient and though it is more materialistic. It lays emphasis on small group discussions. It is an excellent method for development of conceptual knowledge and for reducing 16 . principles. it can be presented within a given time. Conference Method: In this method. on organized subject matter. • • Introducing a subject and presenting an overview of its scope. 2.Indian Oil In training.

This method offers to the trainees matter 17 . which they often willingly accept.Training and Development. The trainees read their papers. It may be a part of a study or related to theoretical studies or practical problems. and guides the participant to certain conclusions. 4. Group Discussions: This is an established method for training. • It may be based on the statement made by the person incharge of the group discussion or on a document prepared by an expert. written or oral miniature. • The person incharge of the group discussion distributes in advance the material to be analysed in the form of required readings. The group discussion compares the reaction of trainees. When the trainees are given cases to analyse. Case Studies: “The case study is based on the belief that the managerial competence can best be attained through study. defines the general trends. and this is followed by critical discussion. who is invited to participate in the discussion. encourages discussion. and discussion of concrete cases. A group discussion is conducted in many ways: • It may be based on a paper prepared by one or more trainees on a subject selected in consultation with the person incharge of the group discussion.” The ‘case’ is the set of data. description. 3. contemplation. and summary of such data that present issues and problem calling for solutions or action on the part of trainee. they are asked to identify the problem and recommend tentative solution for it.Indian Oil dogmatism and modifying attitudes because the participants develops solutions and reach conclusions.

or desired course of proceedings pertaining to the learning or acquisitions of some specific skills or general knowledge. It incorporates a pre-arranged. The case study is primarily useful as a training technique for supervisors and is especially valuable as the technique of developing decision-making skills and for broadening the perspective of the training.Training and Development. Programmed Instruction: Programmed instruction involves a sequence of steps. which are often set up through the central panel of an electric computer as guides in the performance of a desired operation or series of operations. and practices in the decision-making process. A programmed instruction involves breaking information down into meaningful units and then arranging these in a proper way to form a logical and sequential learning programme or package.Indian Oil for reflection and brings home to them a sense of complexity of life as oppose to theoretical simplifications of. proposed. 18 . 5.

• • Evaluation must be continuous. whether the trainees required any additional on the job training.Indian Oil EVALUATION OF TRAINING PROGRAMME Objectives of training evaluation is to determine the ability of the participant in the training programme to perform jobs for which they were trained. but deadlines that are unreasonably high will result in poor evaluation. and their products.Training and Development. Evaluation must provide the means and focus for trainers to be able to appraise themselves. A sense of urgency must be developed. There are various approaches to training evaluation. • • Evaluation must be based on objective methods and standards. Evaluation of the training programme must be based on the following principles: • Evaluation specialist must be clear about the goals and purpose of evaluation. 19 . the personnel manager should accurately assess trainee’s job performance two or four months after completion of training. To get a valid measure of training effectiveness. and the extent of training not needed for the participants to meet the job requirements. the specific nature of training deficiencies. Realistic target dates must be set for each phase of the evaluation process. their practices.

Indian Oil 20 .Training and Development.

5 103.7 68.9 (33.0) In order to understand the level of Indian demand for petroleum products in a global perspective.5% over 104. The consumption of petroleum products has grown 30 times in the last 50 years from 3 million tonnes during 1948-49 to about 107.Indian Oil THE INDIAN PETROLEUM INDUSTRY The Petroleum industry in India stands out as an example of the strides made by the country in its march towards economic self-reliance. an increase of 3. A vast network of over 29.1 million tonnes registered in 2002-03.25 to 0.Training and Development.9 65. At the time of independence in 1947. Today.9) 2003 33.7 million tonnes in 2003-04. international companies controlled the industry.3 to 103 million metric tonnes per annum. 21 . the following table furnishes a comparison of per capita consumption of petroleum products in the various parts of the world.5 (71.5 2005 32 86 2006 32.0) (39. The testimony of its vigour and success during the past five and half decades is the significant increase in crude oil production from 0.2 (34. after 60 years later. the industry is largely in the public domain with skills and technical expertise comparable to the highest international standards.8) (54.9 62.33 million tonnes per annum and refining capacity from 0. Oil Production & Consumption In India (Million Tons) 2004 Crude Oil Production Crude Oil Consumption Deficit (Met By Imports) 32.000 dealerships and distributorships has been developed backed by over 400 storage points over the years to serve the people even in the remote and once-inaccessible areas.5) 2004 32.

India has witnesses a significant growth in the refining facilities and increase in the number of refineries from one to eighteen now. became a Commission in 1956. viz. 22 . the Indian Oil Company (INDIAN OIL). Growth In the 60 years since independence. The second decade (1957-67) witnessed the setting up of the Indian Refineries Ltd. on 1 September 1964. A major boost to the oil industry came in pursuance of the Industrial Policy Resolution.Indian Oil (Kilograms per annum) India China North America World Average 98 165 2. In 1959. to form Indian Oil Corporation Ltd. three refineries were set up at Guwahati (Assam). again a wholly owned Government company. The first decade of Independence (1947-57) saw the establishment of three costal refineries by multinational oil companies operating in India at that time. the first two at Mumbai and the third at Vishakhapatnam. Indian Refineries Ltd.610 585 With the per capita consumption level in India being only about 60% of that in China. and Koyali (Gujarat) essentially to process the indigenous crude discovered in Assam and Gujarat.Training and Development. 1956 that intended to promote growth of the vital sectors such as petroleum under the State control. a wholly owned public sector Government Company. Under its banner. Barauni (Bihar). was merged with Indian Oil Company Ltd. given particularly a large population base of over a billion. was formed for marketing of petroleum products. a strong growth potential exists in India. in 1985. which was formed a Directorate in 1955. Esso Stanvac. ONGC. Burmah Shell. and Caltex.

However. Cochin. Major expansions of the coastal refineries at Mumbai. and installation of Secondary Processing Facilities to increase the production of much required kerosene. Engineers India Ltd. This represents only less than 50% of country’s requirement of petroleum. and the dwindling reliance on indigenous production of oil and natural gas. Chennai. a small refinery of 0. The refinery at Bongaigaon was the first experiment in having an integrated petroleum refinery-cum-petrochemicals unit. and Vishakhapatnam were also completed during this period. the production of crude oil increased to over 35 million tonnes per annum in the year 1997-98. The balance had to be made good by imports putting our foreign exchange to a great strain. It is based on crude from adjoining fields. The notable feature of the capacity additions during this decade have been the extensive utilization of the process design capabilities of M/s. In 1996. The Period 1977-87 saw the commissioning of two more refineries in the public sector. in 1991 decided to open up the exploration and production of oil and natural gas to the private sector. an MMTpa refinery was built in the joint sector at Mangalore between HPCL and Indian Rayon. Considering the ever-growing demand of petroleum at the rate of about 7% per annum.Indian Oil The next ten years period (1967-77) witnessed the establishment of two refineries. one with equity participation from America and Iranian companies at Chennai. This decade also saw significant expansion to the capacities of the existing refineries.Training and Development. thereby raising the refining capacity to about 62 MMTpa. During the fifth decade (1987-97). The other refinery was set up at Mathura in 1982. 23 . the Government of India. diesel and LPG. and another in the public sector at Haldia by Indian Oil.5 MMTpa (Million metric tonnes per annum) at Nagapatinnam was built in Tamil Nadu.

The Government also sold its residual equity of 26% in IBP Co. For enhancing the country’s oil security. with an installed capacity of 102 million metric tonnes per annum. Consequently. On the disinvestments front.(ONGC) and GAIL (India) Ltd. and thereafter acquired another 20% through open offer to the public. The government also decided to open up oil exploration in the deeper continental shelf by private parties.Indian Oil The ministry of petroleum invited bids from the private parties / consortiums.58% of Government of India’s equity in IBP through competitive bidding process.Training and Development. during the year. 15 in the public sector. Ltd. 24 . the Government of India signed 20 contracts for oil & gas exploration under the fourth round of New Exploration Licensing Policy (NELP) and eight contracts under the second round of the Coal Bed Methane (CBM) Policy. Significant hydrocarbon discoveries in the blocks awarded earlier enhanced the prospects of finding more oil & gas reserves in the country. for exploration and production work. to meet the ever-growing requirement of natural gas in the country. Earlier in 2002. as many as 21 small oil-gas fields and more than a dozen exploration blocks were awarded to private parties. the Government decided to set up 5 million tonnes of strategic crude oil storage in the country at Mangalore and Vishakhapatnam. there are 18 refineries operating in the country. Indian Oil had acquired 33. which will be built and operated by Indian Oil. The year 2003-04 saw important developments in Government policy as well a concerted efforts by individual companies to align their plans and progress with the free market scenario. the Government of India successfully sold 10% of its equity in Oil & Natural Gas Corporation Ltd. It was also decided by government to import Liquefied Natural Gas. In the upstream sector. one in the joint sector and one in the private sector. in a number of bidding rounds. With the setting up of Panipat Refinery in 1999-2000. through public offer.

Indian Oil DEMAND FOR PETROLEUM PRODUCTS Demand Growth From 1991 .2001 25 .Training and Development.

While the uprising in gross refining margins helped improve the bottom line.Training and Development.2001 103 Million Tons 94 Million Tons Compound Avg. Since our country is still dependent on imports to the extent of 70% of its requirement. Correspondingly the demand for petroleum products has been growing steadily as shown below: Growth Rates: Crude processing & demand for petroleum products (1990-91 to 2000-01) Consumption In Year Ended 31. we shall continue to be subject to volatility in the international prices of oil. Indian refiners were severely impacted by the everrising and fluctuation price of crude oil and products in the international market. Growth Rate 5. The strengthening of the Indian Rupee against the US Dollar helped limit the impact partially.03. the major concern of the petroleum industry was the rising cost of crude oil.Indian Oil The Indian GDP and energy consumption have each grown at the rate of about 6% per annum from 1991 to 2001. Concerted steps taken by the Government to augment indigenous production through the NELP rounds.1 % 5. and encouragement to Indian companies in acquiring equity oil and gas abroad.5 % Threats: Towards end of the year.1991 Crude Oil Processing Demand For Total Petroleum Products 52 Million Tons 55 Million Tons Consumption In Year Ended 31.03. are therefore steps in the right direction 26 .

Aviation Turbine Fuel etc and also trying to decontrol High Speed Diesel. From an annual consumption of less than 3 Million Tonnes in 1948-1949 India’s Petroleum products consumption has grown to 107. Liquefied Petroleum Gas. The Indian oil sector is in the threshold of major changes. The flexibility of grabbing more market share will intensify after decontrol of these products from the Government. The Government of India had already decanalised some products like Furnace Oil. Consumption of Petroleum products is an index of a country’s development. It shows the growth rate of Petroleum Industry in the country in the post independence period.Indian Oil INTRODUCTION: Petroleum is one of the most valuable natural resource in the world.Training and Development. industrialisation and economic well-being. Some people call it as “Black Gold”.7 Million Tonnes in 2003-2004. 27 . In spite of Government regulations there exists an intense competition among the existing oil companies. Motor Spirit. but it may be better described as the Life Blood of Industrialised Countries. Superior Kerosene Oil etc in the near future.

61MMT in 2003-04. Indian Oil started with a sales turnover of Rs. Indian Oil Corporation as an idea was born out of the Industrial Policy Resolution of 1956 and since then has emerged as one of the largest and leading corporations in the world. (As per the Fortune Listing).691 crore (Rs.686 crore tax) during 2003-04 as against Rs.Training and Development. 4. In another major feat. The Profit before tax for the year ending 2005-06 was 6. It is the only Public Sector Undertaking among ‘India’s Top 10 Companies’ listed by the Far Eastern Economic Review in 2004. The Corporation recorded the highest ever Profit Before Tax of Rs.414 crore (Rs. The total sales volume (inclusive of export sales) increased from 47. Indian Oil earned ‘Excellent’ rating for its performance in its M.56MMT in 2002-03 to 48.83.9.915 crores for 2005-06). For 15th consecutive year. the Government of India decided to establish a nationally owned and controlled Oil Industry in the India under the Ministry of Petroleum and Natural Gas.2 %.2.2 %. In the year 2005-06 INDIAN OIL has achieved a sales turnover of Rs. 109 crores and a profit of 1 crore in 1964-65.1.299 crore Tax) in 2002-03.8. 28 . registering a growth of 15.O. 2. Indian Oil Corporation Limited (INDIAN OIL) is the 18th largest Petroleum Company in the World. INDIAN OIL is ranked 153 rd among the 500 largest companies in the world. 1 in petroleum trading among the national oil companies in the Asia-Pacific region.Indian Oil In order to protect national interest. registering a growth of 2.U with the Government of India for the year 2003-04.706/crores. Indian Oil was ranked among the top 10 ‘Best Employers in India–2004’ in a joint survey conducted by Business Today and Hewitt Associates across 220 organizations. Indian Oil has also been adjudged No.204/-crores (profits of Rs.

Superior Kerosene Oil / Kero 7. followed by a marketing organization called Indian Oil Company Limited In 1959.Training and Development.Indian Oil Indian Oil deals with various petroleum products. By September 1964 both these companies were merged and Indian Oil Corporation was formed. Shell. Petrochemicals And Specialties 4. The Companies main products are: 1. Liquefied Petroleum Gas / LPG 5. Motor Spirit / Gasoline 6. The country was dependant on refined petroleum products imported into the country by these companies. Parliament passed an Industrial Policy Resolution bringing Oil under the purview of the State sector as a step to bring all the industries of basic and strategic importance into the Public Sector. Esso and Caltex. Aviation Turbine Fuel / Jet Kero 9. In the year 1956. Fuel And Feedstock 2. the Multinational Oil Companies were nationalized and this led to the emergence of Bharat Petroleum Corporation Limited (BPCL) (from Shell) and 29 . In 1970. High Speed Diesel / Gas Oil 8. Lubes And Greases 3. viz. Lubricants HISTORY In the late 1950s Indian oil industry was dominated by three Multi national Companies. a Public Sector Company called Indian Refineries Limited was set up.. In 1958.

and a separate division known as Assam Oil Division (of INDIAN OIL) was formed. (in 2002) these oil companies were allowed to sell these decontrolled products through the Retail Outlets or by bulk to direct customers.Indian Oil Hindustan Petroleum Corporation Limited (HPCL) (from Esso and Caltex). Indian Oil holds over 33% of the country's refining share (42%.Training and Development. Essar Oil Limited also entered the market at later stages. Apart from this Government also formed Indo-Burma Petroleum (IBP) Limited. after the withdrawal of Administered Pricing Mechanism (APM). IBP relied only on marketing. Initially they were not given any marketing rights for the controlled oil products but could refine crude oil and sell through the nationalized oil companies. IPCL. The refinery network is presented with its installed refining capacity: 30 . But. All refinery units are accredited with ISO 9002 and ISO 14001 certifications. Apart from this other public and private sector companies like Madras Refineries Limited. It’s Mathura refinery is the first refinery in Asia and the third in the world to earn the British Standard (BS: 7750) and ISO-14001 certifications in environmental management. Cochin Refineries Limited. Bongaigaon Refineries and Petrochemicals Limited. Reliance Petroleum. While the three oil majors have their own refineries. Later Assam Oil Company was merged with INDIAN OIL. if the capacity of recently acquired subsidiaries is also added).

5 0.0 41.0 38.35 9.6 8.4.40 1.0 0.65 6.95 6.85 54.0 6.Training and Development.35 9.35 45.0 0.65 6.Barauni IOC .Haldia IOC. All refinery units are accredited 31 .0 13.35 9.Chennai CpclNarimanam BrplBongaigaon Sub-Total IOC Subisdiaries IOC-Total(WithSubsidiaries) 1.0 36.6 7.15 6.35 12.4.0 2.05 6.2 13.0 13.0 8.0 38.35 9.4.50 2.Guwahati IOC.35 47.85 49.50 1.Indian Oil Refinery As On As On As On As On As On 1.65 6.0 41.0 6.85 54.0 39.50 1.4.35 9.35 9.0 2.7 4.7 6.0 0.35 47.5 0.7 6. if the capacity of recently acquired subsidiaries is also added).Digboi IOC.50 2.00 0.65 6.2004 1.35 12.5 0.5 1.0 8.Koyali IOC .0 2.0 6.50 2.15 6.0 4.2001 1.0 4.3 13.0 3.65 6. 2005 1.2003 IOC IOC.5 0.4.6 8.2000 1.80 IOC Subsidiaries Indian Oil holds over 33% of the country's refining share (42%.5 1.6 8.Panipat Sub-Total IOC Cpcl.7 4.0 4.0 13.20 As On 1.0 0.65 6.4.2 13.5 1.Mathura IOC.20 1.7 4.2002 1.

Mathura (Uttar Pradesh) and Panipat (Haryana). These include two refineries of subsidiary Chennai Petroleum Corporation Limited and Bongaigaon Refinery & Petrochemicals limited to increase its refining capacity .80 million metric tonnes per annum (MMTPA) or one million barrels per day (bpd). 2006 was 30.801. It is the sole canalizing agency for the import and export of Crude Oil and Finished Petroleum products. (With the acquisition of IBP. Haldia (West Bengal). There are 2. Indian Oil has five divisions: 1) 2) 3) 4) Refineries Division Pipelines Division Marketing Division Research and Development Division and 32 . it holds around 60 % of the market in India) The Corporation’s employee strength as on March 31. Indian Oil holds over 51. With sales of 49.8% of the total manpower. These employees are engaged in Crude Oil Refining.Indian Oil with ISO 9002 and ISO 14001 certifications.2 % of Market share. including 10. and Marketing of Petroleum Products.406 women employees including 775 officers.Gujarat). constituting 7. The Indian Oil group of companies owns and operates 10 out of 18 Oil refineries in the country with a current combined rated capacity of 57. Barauni (Bihar). Continuous innovation and up gradation of technology have resulted in high efficiency and optimum capacity utilization.Training and Development. Pipeline Transportation.437 officers. Koyali (Baroda. It’s Mathura refinery is the first refinery in Asia and the third in the world to earn the British Standard (BS: 7750) and ISO-14001 certifications in environmental management. These are located at Guwahati and Digboi (Assam).61 Million Tonnes in 2005-06. The refinery network is presented below with its installed refining capacity.

Reliance Petroleum Limited (RPL). INDIAN OIL also markets the products refined by the following refineries : 33 It keeps abreast of the latest technology when laying new systems and inducts the same into existing systems . As the name suggests Refineries division is into refining of imported and local crude which is available in India. Marubeni (Japan).Training and Development. From its inception it has formulated more than 2000 lube formulations. In maximum cases it crosses the installed capacity utilization. Oil and Natural Gas Corporation Limited (ONGC). Gas Authority of India Limited (GAIL) etc of India. Petronas (Malaysia). Bharat Petroleum Corporation Limited (BPCL). Oil tanking GmbH (Germany). Assam Oil division is into refining and also marketing of oil products in the northeast part of India. IBP. too. Essar Oil Limited (EOL). SERVO shops etc. SKO/LDO dealers.Indian Oil 5) Assam Oil division. These include Retail Outlets of MS/HSD. Twelve Joint ventures are now operational in partnership with leading companies like Mobil and Lubrizol Corporation (USA). INDIAN OIL constantly strives to develop its nationwide pipeline network. It controls a network of over 22.000 sales points spread over India (the largest in the country). It transports Crude Oil and Finished Products through over 7. In addition to products refined at its own plants. LPG distributors. The marketing division has its Head Office at Mumbai. Research and development division is into developing new lubes and lube formulations required for the current market.575 kms of Crosscountry pipelines (country’s largest network).

Indian Oil i.XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively). in fact. The launch of premium fuels . iv. 24. The maiden launch of these branded fuels took place in Delhi on Sept. iii. ii. the only petrol in India with 91 Octane and doped with Multifunctional Additives. THE FAMOUS BRANDS UNDER INDIAN OIL Indian Oil's branded fuels XtraMile and XtraPremium have made a significant impact in the petroleum retail market. XtraPremiuem sales have been extended to 200 cities and 750 petrol & diesel stations. Subsequently. XtraPremium is. marks a new beginning for Indian Oil and its customers. Indian Oil's new generation High Speed Diesel with world-class additives has taken a leadership position in the market. XtraMile. Madras Refineries Limited Reliance Petroleum Limited Cochin Refineries Limited Bongaigaon Refineries & Petrochemicals Limited. and XtraMile to 850 cities and 1750 petrol and diesel stations by the end of 34 . 2002.Training and Development.

Developed exclusively at Indian Oil's world-class R&D Centre at Faridabad. Servo has genuine oil tie ups with a wide range of companies like Hyundai.300 Servo Shops and a countrywide network of bazaar traders.100 Indian Oil petrol/diesel stations. The Servo range of lubricants is used in almost every application covering automotive. Lancer. the country's leading Servo brand lubricants from Indian Oil are sold through over 8.Training and Development. SERVO ranges of lubricants enjoy approvals from major Original Equipment Manufacturers (OEMs) including new generation cars. Maruti. 35 . Servo range of lubricants is fast emerging as a Global Brand.Indian Oil SERVO is India's largest selling lubricant brand. With over 42% market share and 450 grades. over 1. Bajaj. Servo has been designated as a superbrand. Anil Kumble. there is a Servo lubricant for virtually every single application. 9. the ever dependable sporting icon is servo Brand Ambassador. industrial and marine sectors.000 Retail Outlets and a countrywide network of SERVO SSls and SSAs Bazaar traders offer servo range of lubricants to customers.

medical labs.Indian Oil Indian Oil Indane LPGas is used in 40 Million homes as cooking fuel and commands over 48% market share in India. etc. Marketed through a network 48 stations out of an industry total of 103 Auto LPG Dispensing Stations.Training and Development.77 MMTPA. hotels & restaurants. New and convenient 5 kg Indane LPGas cylinders introduced in rural and hilly regions for wider use by economically weaker sections. 36 . Indian Oil's auto LPG brand Autogas is the leader in the segment. Widely used in commercial sectors like industries. 87 Indane Bottling Plants are spread across the country with a combined bottling capacity of 3. Indane LPGas is marketed through a network of 4350 Indane distributors.

This alternative fuel is a good business proposition in the long term. and Indian Oil intends to further expand its marketing in a big way 37 . Bangalore and Mumbai markets.Indian Oil Autogas (LPG) has been introduced in Hyderabad.Training and Development.

138 Retail Outlets including 82 Jubilee Retail Outlets serve the retail market. agriculture.350 distributors.Indian Oil INDIAN OIL SERVES CUSTOMERS FROM KARGIL TO KANYAKUMARI: Indian Oil’s remarkable marketing and distribution network extends from Kargil to Kanyakumari. A total of 3. 74. The Marketing Division of the Corporation has its headquarters located in Mumbai.000 tonnes per annum. 38 . catering to a vast spectrum of customers including households. INDIAN OIL has 35 Area Offices to deal with the marketing of LPG. with total sales crossing 49. It has FOUR Regional Offices located at Mumbai. They are fed by 162 Bulk storage depots/terminals all over the country. transport.521 Kerosene/ Light Diesel Oil (LDO) dealers reach the products to the customers throughout the country.61 Million Metric Tonnes in 2005-06.177 towns through 4. industries. Delhi. The Corporation has 87 LPG Bottling plants with a total capacity of 36.Training and Development. Chennai and Kolkata. There are 15 State Offices and 44 Divisional Offices including 2 of Assam Oil Division. A large network of 9. Indane Cooking Gas is distributed to over 375 lakh customers in 2. and defence forces.

modern Research and Development Centre at Faridabad with facilities matching international standards. So it continuously strives to bring energy to life. INDIAN OIL. besides a countrywide network of bazaar traders. INDIAN OIL meets around 89 % requirements of Air Force whereas total needs of Army and Navy.Indian Oil INDIAN OIL has 94 Aviation Fuel Stations catering to Civil and Defence Aircrafts with a market share of 68 %. INDIAN OIL has always been keen supporter of worthy causes such as family planning and welfare and rehabilitation of handicapped and under privileged.100 Company retail outlets.Training and Development. A wholly owned subsidiary. medical.IMPROVING THE QUALITY OF LIFE: INDIAN OIL provides welfare schemes including housing. INDIAN OIL views energy as a means of achieving self-reliance and healthy economy. drought or floods. sports and recreation facilities to its employees and their families. INDIAN OIL has launched genuine lubricating oils for almost all brands and makes of vehicles. and are sold through more than 9. The company has a ISO-9001 certified. Indian Oil Blending Ltd. Be it peace time or war. INDIAN OIL has carried oil requirements to remote hamlets. provided fuel for transport and fulfilled energy needs of the Defence forces. The centre has developed over 2000 Lubricant/Grease formulations and introduced multigrade fuel-efficient lubricants for modern vehicles and is constantly trying new ways of improving fuel efficiency and quality. manufactures over 450 grades of the country’s leading SERVO brand of lubricants and greases with 42 % market share. INDIAN OIL has also given top priority to its customers’ interests. 39 .

40 . Koyali-Viramgam-Sidhpur product pipeline (102 km).5 TMT.Training and Development. Kurukshetra-Roorkee-Najibabad product pipeline (167 km). The details of various major projects are as follows: Completed Projects: • • • • • • Diesel Hydrotreating and Solvent De-waxing units at Digboi Refinery. Viramgam – Koyali crude oil pipeline (148 km). LPG bottling plants at eight locations.Indian Oil PROJECTS: Indian Oil accords high priority to timely project implementation. Port terminal at Mauritius with a tankage of 15.

41 . Koyali and Haldia refineries. Diesel Hydrotreating unit at Mathura Refinery MS quality improvement projects at Mathura.Indian Oil Ongoing Project: • • • Linear Alkyl Benzene unit at Koyali Refinery.Training and Development. Panipat Refinery expansion from 6 MMT per annum to 12 MMT per annum. • • Grassroots refinery at Paradip Mundra-Kandla crude oil pipeline (73 km) and conversion of the Kandla – Panipat section of KBPL to crude oil service. • • Paraxylene/Purified Terephthallic Acid unit at Panipat Refinery.

• Koyali . Capacity augmentation of LPG bottling plants at Chengalpet and Tikrikalan. 42 . Sidhpur – Sanganer product pipeline (506 km). • • Naphtha transfer pipeline from Asaoti to NTPC. Branch pipelines to Raxaul and Baitalpur from Barauni – Kanpur product pipeline. 7 depots at various locations. Faridabad. • • • • Dadri – Panipat gas pipeline. Dockline at Narimanam (8 km). Hydrocracker Laboratory – Phase-II – at R&D Centre. Chennai – Trichy – Madurai product pipeline (683 km).Ratlam (274 km) and Koyali – Dahej (112 km) product pipeline. Construction of grassroots LPG bottling plants at Raipur and Virudhachalam.Indian Oil • • • • Paradip – Haldia crude oil pipeline (353 km).Training and Development. New Project: • • Naphtha Cracker project and downstream polymer units at Panipat.

ranked 153 and is the 18th largest petroleum company in the world. Indian Oil is the country’s largest commercial enterprise – also the first and only company to cross Rs.204/. Indian Oil sold 46. Indian Oil is the sole Indian presence in Fortune’s prestigious listing of the world’s 500 largest corporations.Training and Development. while its seven own refineries achieves a throughput of 37. 42% national refining capacity and 67% downstream pipeline transportation network.059 million). 1. It has been adjudged 43 .crore (approx US$ 41.66 MMT.50 MMT of crude oil and petroleum products.83. accounting for 51.22 million metric tonnes (MMT) of petroleum products.1 lakh crore turnover – with a Gross Turnover of Rs.4915 crore (approx US$ 1. and pipeline network transported 44.2% petroleum products market share.Indian Oil DIVISIONS OF INDIAN OIL Corporate: Indian Oil is India’s Flagship national oil company. and a net profit of Rs.603 million) for 2003-04. In 2005-06 .

1 To maximize creation of wealth. 2 To attain leadership in developing. MISSION STATEMENT: To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services. transnational. and cost reduction. with national leadership and a strong environment conscience. 4 To foster a culture of participation and innovation for employee growth and contribution. Indian Oil operates under the aegis of the Ministry of Petroleum & Natural Gas (MOP&NG). integrated energy company. with the VISION to be a major. diversified.1 in petroleum trading among the national oil companies in the Asia-Pacific region. and is ranked 325th in the current Forbes’ “Global 500” listing of the largest public companies. value and satisfaction for the stakeholders.Training and Development. 3 To provide technology and services through sustained Research and Development.Indian Oil No. adopting and assimilating state-of-theart technology for competitive advantage. Government of India. playing a national role in oil security & public distribution. 44 .

• • To earn a reasonable rate of interest on investment.Training and Development. Objectives And Obligations Of The Company Objectives Of The Company • To serve the national interests in the oil and related sectors in accordance and consistent with Government policies. 6 To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. • To ensure and maintain continuous and smooth supplies of petroleum products by way of crude refining. 45 . transportation and marketing activities and to provide appropriate assistance to the consumer to conserve and use petroleum products efficiently. To work towards the achievement of self-sufficiency in the field of oil refining by setting up adequate capacity and to build up expertise in laying of crude and petroleum product pipelines.Indian Oil 5 To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity.

mergers. lube business.Indian Oil • To create a strong research and development base in the field of oil refining and stimulate the development of new product formulations with a view to minimize/eliminate their imports and to have next generation products. 46 . To minimize fuel consumption in refineries and stock losses in marketing operations to effect energy conservation. To achieve higher growth through integration. power. acquisitions and diversification by harnessing new business opportunities like petrochemicals. • To further enhance distribution network for providing assured service to customers throughout the country through expansion of reseller network as per Marketing Plan/Government approval. arising out of the liberalization policies being pursued by the Government of India. • To maximize utilization of the existing facilities in order to improve efficiency and increase productivity. • • To optimize utilization of its refining capacity and maximize distillate yield from refining of crude to minimize foreign exchange outgo. consultancy abroad and exploration & production. • To avail of all viable opportunities. both national and global.Training and Development.

47 . • To develop long-term corporate plans to provide for adequate growth of the activities of the Corporations.Indian Oil Financial Objectives • To ensure adequate return on the capital employed and maintain a reasonable annual Dividend on its equity capital. To manage and operate the facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment.Training and Development. without budgetary support. • • To ensure maximum economy in expenditure.

Performance Graphs 2005-06 48 .Indian Oil • To endeavour to reduce the cost of production of petroleum products by means of systematic cost control measures.Training and Development. • To endeavour to complete all planned projects within the stipulated time and cost estimates.

Indian Oil 49 .Training and Development.

• • Expeditious redressal of grievances: Fair dealings with recognized representatives of employees in pursuance of healthy trade union practice and sound personnel policies. courteous and efficient service and quality products at fair and reasonable prices. impartiality and courtesy and promote ancillary industries. Towards Community: • To develop techno-economically viable and environment-friendly products for the benefit of the people. • To encourage progressive indigenous manufacture of products and materials so as to substitute imports. 50 .Indian Oil Obligations: Towards Customers And Dealers : • To provide prompt. Towards Employees: • Develop their capability and advancement through appropriate training and career planning. Towards Suppliers: • To ensure prompt dealings with integrity.Training and Development.

Areas Of Focus : 1 Strategic resitement of Retail Outlet.  Project Management for faster completion of on-going project. specially for Diesel Oil.Indian Oil • To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures.  Import Parity Pricing. Promote / inculcate dealers as Indian Oil family member and ensure that they are “working dealers” and not “absentee dealers”. 5 Quickly create infrastructural facilities at supply locations / Divisional Offices to improve customer service through:  Faster loading of Railway Tank Wagons / Tank Trucks. 2 3 Bigger site for Retail Outlets on highways.  Faster commissioning of Retail Outlets. to sites outside town area to facilitate better/improved Gasoline facilities in metros/major towns.Training and Development. 51 . 4 Profit maximization through  Sale of “Free Trade Product”. Towards Defense Services: To maintain adequate supplies to Defence Services during normal and emergency situations as per their requirement at different locations.

• • Strength on international trade. It has also set up subsidiaries in 52 .  Supply Point. 6 Areas of improvement as per “Customer Satisfaction Measurement and Management” study :  Finance.  Improved communication facilities. Dubai. Up-country storages nearer to the market.Training and Development.Indian Oil  Quick and accurate billing. Dealership network to assist in our direct efforts.  Maintenance. Strengths • • • • Wide field network. Lower cost of production from old Refineries. Kuala Lumpur and Mauritius to co-ordinate business activities. Eight existing Refineries.  Computerized and modernized accounting system. Spreading Wings : Indian Oil has overseas offices in Sri Lanka.

Their market shares as on 31st March 2001 were as follows: Indian Oil Corporation Bharat Petroleum Corporation Hindustan Petroleum Corporation IBP Company 55 % approx. Bangladesh etc.* 21 % approx.* 19.5% 53 . Indonesia. Bhutan.Indian Oil Mauritius and Sri Lanka for implementing business expansion project.5 % approx.Training and Development. Sri Lanka. Kuwait. Malaysia. Mauritius.* Indian Oil has the maximum market share with 55% followed by Bharat Petroleum Corporation with 21% and Hindustan Petroleum Corporation with 19.5 % approx. Marketing The marketing of petroleum products in India today is dominated by the four state-owned oil companies. Nepal.* 4. Bahrain. SERVO lubricants are being exported to Dubai.

In addition. That is the reason why INDIAN OIL has given the highest importance to training right from its inception. which has enabled it to maintain and perpetuate its profitable and efficient existence. 54 . Assam Oil Division. The Corporation has not only established its leadership in this field. PCRA. Oil Co-ordination Committee (OCC). Indian Oil Blending Limited (IOBL). but has also gained unquestionable credibility at the international level. PII and defence personnel. it is ranked 153 rd largest Industrial Corporation in the world.Training and Development. it also receives nominations from Refinery and Pipelines Divisions. R & D Center. It also offers an opportunity for participation in training programme to managers of organization from developing countries with which it has co-operation agreements. The training department of Head Office and the Regional Office look after the formal training requirements of about 17000 employees in the Marketing Division of the corporation. which requires top-notch managerial training and development of their human resource. Indian Oils aims at excellent excellence. As per the ranking by the Fortune500 magazine. The Head Office training center looks after the management training activity of over 2000 managers in Marketing Division.Indian Oil TRAINING AT INDIAN OIL INDIAN OIL is the largest industrial corporation in India in terms of sales turnover. The credit for this achievement goes to its most potent and vital force that is the dedicated efforts of the Indian Oil employees.

training was taken up at the regional levels with four regional training centers. Gujarat.Indian Oil Evolution Of Training In INDIAN OIL: Prior to 1964. Even as early as 1963-64 technical programmes on fuel engineering were conducted for the sales force with the help of MOBIL. Training activities in the R&D Division started in early 1960s in the Guwahati Refinery. In 1965. the Administrative Staff College (ASC) was set up in Bombay to conduct functional programmes in areas such as Personnel Management and Productivity for INDIAN OIL personnel in addition to the POL programmes for the Defence Personnel. USA. Digboi – Assam Oil Division (AOD) and Mathura with major emphasis on technical and skilldevelopment programmes in the initial years of their existence 55 . the training activities were also carried out almost independently divisionwise. In the initial years the United Nations experts helped in organizing supervisory development programmes. The first few programmes were adapted from those being conducted by the Burma Shell with guest faculty and later on with the help of internal faculty. Full-fledged training centers were set up in all the refineries – Guwahati. Emphasis in the organization on training programmes was largely in the areas of handling of Petroleum products. the individual companies had their own training schemes patterned on the erstwhile oil companies approach. Since the organization was designed along divisional lines. Barauni. Haldia. The early focus was on supervisory development.Training and Development. Liquid Petroleum Gas (LPG) and a few bahavioural programmes. and each set up headed by a Branch Training Officer. A few years later. The training in Marketing Division started with programmes organized by them for the Defense Personnel for handling of petroleum products called the Petrol Oil and Lubricants (POL) courses. in 1967-68 as more programmes were added.

the performance appraisal forms were amended in INDIAN OIL to introduce a component of training to help in the identification of training needs. the INDIAN OIL reviewed its corporate plans because of which the need was felt to give a different orientation to the training activity keeping in view the organisation’s development. Based on the suggestions made by the consultant. reorganized into three subsystems – Personnel and Administration. Athreya was invited as an OD interventionist.Indian Oil In the 1970s. The IMA was to conduct specific functional and developmental programmes for officers of the R&P Division. In early 1980s. Training and HRD. Consequently. Accordingly. The Personnel function was regrouped and. For increased understanding and coordination between the two divisions a series of interface. The Indian Oil Management Academy (IMA) started functioning in August 1979 to meet the emerging training needs at selected managerial levels. Professor M. there were certain organizational changes in the Personnel function. programmes were organized since 1975-76.Training and Development. The AOD had a strong and systematic approach to training with major emphasis on planned on-the-job training. The refinery at Digboi being peculiar to itself in terms of the technology and operations. with the help of the Marketing Division. emphasis was given to Human Resources Development and it became a subsystem of the Personnel function. The AOD by itself has a long history of emphasis on training even prior to its nationalization and integration with INDIAN OIL. In the mid-1970s. General Management Programmes and behavioural programmes were organized in the Refinery training centers. The HRD group was specifically assigned the task of integrating the identified 56 . Various technical and skill development programmes were conducted by AOD for officers and staff at all levels. It was also decided to have an organization development (OD) intervention by an outside consultant with a view to develop a proper linkage between the corporate plans and human resources development. specific training programmes in operations and maintenance were organized.

and appropriate career path models drawn. Thus. which necessitated greater emphasis on technical training. courses and interface programmes. The APA form was redesigned and training need identification was given more importance. Consequently. which included appropriate career planning and role analysis. At the same time. eight disciplines were identified in the Marketing Division namely. further changes were introduced in the Annual Performance Appraisal (APA) System. Head Office (Division) level. In 1990. Technical Services. In Indian Oil Corporation today. The interdisciplinary programmes were introduced to expose the officers to function other than their parent discipline. In 1987.Indian Oil corporate mission with the department and individual goals. in keeping with the corporate objective closer / greater interface was envisaged between the divisions. Aviation. Because of the HRD outlook in the organization. and Regional/unit level play an active role in formulating training plans. etc. -The concept of the staple programmes – all officers to be exposed to them was simultaneously introduced. the Tata Management Training Centre (TMTC) was invited to study the training activities in INDIAN OIL. the training also got a fillip with introduction of general management and leadership 57 . The TMTC offered suggestions to improve the training infrastructural facilities and better utilization of manpower for training within the organization. the personnel department was redesigned as Human Resource Management to reflect the greater emphasis on HRD though the basic set up continued as earlier. Personnel. Sales. there was considerable technical upgradation. LPG. Coinciding with this. Finance.Training and Development. Operations. training committees at the corporate office level. review of ongoing course. Marketing.

apart from the training programmes for direct recruits and promotee officers and the middle and senior level officers at the HO. middle and junior level officer training programmes and external and middle and senior level officers training respectively. other departments like Fire & Safety Department and Inspection etc conduct certain training programmes. The internal training programmes at the head office level for mid/senior level officers are taken up by the IMA. at each regional headquarter level and at the head office. officer training for junior and mid level officers and management training programmes for direct recruits while the Indian Management Academy (IMA) organizes programmes for middle and senior level officers in addition to the Junior Executive Development programmes for Promoter officers. In addition to the efforts of the training department in INDIAN OIL. Over the past few years there has been a substantial increase in the number of employees exposed to training in the various divisions of INDIAN OIL. the INDIAN OIL has invested substantial amount of financial resources into training. the training activity is organized with set ups at selected locations. regional office and head office handling workmen training. each refinery has a comprehensive training set up taking care of both workmen training. The Pipeline training activities are also organized on a three-tier basis with unit/location. 58 . In the Refineries and Pipelines Divisions. The workers training is organized at the selected locations while officers’ train and some workmen training are organized at regional headquarters. Over the years.Training and Development.Indian Oil In the Marketing Division.

expounding the belief that there are no limits to human potential and growth. 4 Facilitate the induction of new employees into Indian Oil Corporation through suitable orientation programmes. distribution.Training and Development. Equip work force with skills to make Indian Oil Corporation a global player. 3 Assist / guide the employees in their pursuit of knowledge and selfactualization. 59 . review training programmes and design need-based inputs to ensure achievement of high level of excellence in customer satisfaction.Indian Oil Training Mission: 1 To facilitate the process of integration of personal ambitions and aspirations of employees with the corporate objectives through training interventions. Defense Services to efficiently handle storage. which shall also play a vital role in building customer relations over a long term. and consumption of petroleum products. 2 To continuously scan the environment. 5 Enable through training.

Based on the need identified. HO TRAINING COMMITTEE Chairman Members .Training In-charge of the Region (Senior / Manager (T&D)) 60 . and General Managers I/C.Executive Director.DGM (T&D) REGIONAL TRAINING COMMITTEE Chairman Members Convenor .ED of the Regional.General Managers / Dy.Indian Oil TRAINING PROCESS Training Committees ROLE OF TRAINING COMMITTEES: The main role of the Training Committees is to oversee the training functions and the training needs of the organization keeping in view the environmental changes. training programmes focused towards specific area of interest are approved by the committee for implementation. .Training and Development. Committee.Director (M) . In addition one Regional ED is invited to the HO training Convenor . . General Managers (HOD) of the Region. The training committee also reviews the training activities on a half-yearly basis.

b.Training and Development.Indian Oil In Indian Oil Corporation: • Training Department has a training calendar. • Each employee’s training needs are identified through system of Annual Performance Appraisal (APA). • Nomination for Regional course is as per the eligibility criterion laid down for each programme. • Basically two types of training programmes are conducted by the training department : a. 61 . which is sent to all the departments. • Once the nominations are identified and course announcement made. withdrawal of nomination is normally not permitted. • Functional Programme Developmental Programme Training department makes use of in-house personnel for functional programmes and employs people from outside for development programmes • The current system provides consultation with concerned officers by his superior to ascertain the training needs. • Similarly. the superior in consultation with the Unit level cocoordinators identifies training needs of the workmen and Regional Training Heads and new need based programmes are mounted.

2 Training has played a pivotal role in helping the organization adapt itself to change. which is the most important thing called for in the current changing environment. 3 To assist the employees in their pursuit of knowledge and selfactualization.Training and Development. 62 .Indian Oil • Participants at the end of each programme do the overall course evaluation and the courses are modified depending upon the feedback received. Role Of Training : 1 Training has been performing a very important role in helping the Corporation to reach the commanding heights of performance over the years. This ensures transfer of knowledge for on job performance. • Participants attending external training are required to make a formal presentation regarding the training received along with action plan for implementation.

to ensure that training resources are allocated to priority and statutory requirements. and/or payment of fees for External courses).Training and Development. 2 To provide operational guidelines for management. to indicate the organization’s commitment to training and development and to inform employees of the opportunities of training development (including willingness to grant time off.Indian Oil Training Linkage to Corporate / Divisional Objectives The training policies have been developed for 4 main reasons: 1 To define the relationship between the organization objectives and its commitment to the training function. for example to state management’s responsibilities for planning and implementing training and in particular. For example. 3 To provide information for employees. 63 . 4 To enhance public relations for example. to reassure clients and public at large about the quality of products or services or to project an image as a caring and progressive employer by taking part in government sponsored “Social” training programmes. to help recruit high caliber recruits. to stress the performance standards expected.

Indian Oil Need For Training : Indian Oil Corporation is involved in refining and marketing of POL. It reduces wastage and accidents. 5 It is needed to improve the quality and quantity of output by an employee and raising their morale. 64 . 2 Junior employees need training before they take the position of their seniors. training becomes a core function for the following reasons: 1 Training is necessary for new employees to get an idea about the job and to do it effectively. Job Rotation practice in Indian Oil demands training. 6 7 8 9 Training is required to revise the specialized skills learnt in the past.Training and Development. techniques. 4 It is necessary for old employees to enable them to keep abreast of changing methods. and technology. Here. 3 It is necessary for the company to fulfill its future personnel needs and to train the employee in the company culture pattern. For self – development.

complaints.Training and Development.  For professional growth in organization. skills. absenteeism. A successful training programme can be made by creating a good environment for it. Participants’ Expectations From A Training Programme :  Improving and solving specific problems confronted in job functions.  As a means to improve promotional aspects.  To be acquainted with new technology.  For personal growth  To gain new and pertinent knowledge  Acquire specific approaches. or techniques that can be applied on the job.Indian Oil Importance Of Training The main importance is to mould the employee’s attitude and help them to achieve better co-operation with company. in the training 65 .  Help and confirm some earlier ideas. and labour turnover.  To develop understanding of specific subjects covered programme  As a change for routine job schedule. It also helps in reducing dissatisfaction.

Training and Development. Devising the training programme 5. ideas and solutions from other departments  Look at oneself and one’s job objectively. Establishing training goals 4. Training Process Of Indian Oil Involves Several Steps : 1. Evaluation of the results 66 . Assessment of the training needs 3.Indian Oil  Acquaint with problems. Defining organizational objectives and strategies 2. Implementation of the programme 6.

Preparation of the Trainee 7.Training and Development. Under this system. It attempts to take a specialized individualized view of training needs of different categories of managers performing more or less similar job in similar organizations. Training Techniques 5. Like the prevalent management development and training programmes. Training Facilities 4. 8. appropriate management training system does not take a generalized view of training needs. assessing training needs is treated as 67 . 1) Identification Of Training Needs: Identification of training needs is the stepping-stone in the appropriate management training system on which the entire edifice of training programme is built. 2.Indian Oil TRAINING PROCEDURE IN INDIAN OIL 1. Follow – up. Training Nominations 3. Evaluation Effectiveness of training in Indian Oil. Identification of training needs. Training Faculty 6.

These two processes are of critical importance and should be carried out as accurately as possible because the outcome of the comparison between the two provides the information from which an appropriate training programme is developed. 2.Indian Oil an important and crucial training function before designing and conducting a programme. Effective performance of a job requires a standard of competence in the job holder consisting of vital areas such as job related knowledge. But due to one or other reasons the existing competence of the jobholder may fall short of the standard competence required in the job. The most important step in the first place is to make a thorough analysis of the entire organization. attitude of the job holder. skill and attitude required in a job. its 68 . An organization normally employs sufficient number of managerial and nonmanagerial personnel with required competence to perform given jobs leading to the accomplishment of organizational objectives. skill and attitude. Identification and definition of standards of knowledge. A training programme should be established only when it is felt that it would assist in the solution of specified operational problems. This logic highlights two processes : 1.Training and Development. Assessing existing level of knowledge. The processing of assessing and finding the gap between the standard competence required in a job and the existing competences in turns of vital knowledge and skill and attitude in the job holder may be called as the identification of the areas of deficiencies and the resultant inventory of gaps in the job holder in terms of knowledge and skill and attitude may be said as his training needs. skill.

their current system provides consultation with concerned officers by his superior to ascertain the training needs. Employees do write in their Annual Performance Appraisal (APA) forms about the training they would like to undergo. and there is a self/organizational need.Indian Oil operations and manpower resources available in order to find out the ‘trouble spots’ where training may be needed. Prior to identifying needs of each officer. Based on this new training also gets identified year after year.Training and Development. effective utilized. Each officers training are identified in the “Training needs Exercise” which is covered every two years. The training need for officers are identified in the “Training need” form that constitutes the basis on which the nominations are accepted by the training centers for the various in-house training progrmmes. Traditional programmes are redesigned so as to be 69 . In Indian Oil. The training needs of workmen in employees category are identified by the superiors in consultation with the unit level coordinators and the Regional Training Heads and new based in-house programmes are mounted. The nominations to external training programmes are encouraged only for such progrmmes where inhouse training programmes are not available. training needs are identified by the Training committees at HO/Regional level keeping in view the changing environment and the objectives and the mission of the organization.

Videorama. The training center at HO has well equipped reference library. The main thrust of training activities at regional level is improving functional competency. The training halls have been carefully designed keeping acoustic requirement in view. withdrawal of nomination is normally not permitted.Indian Oil 2) Training Nominations As far as possible opportunity is given to the officers to attend HO training programmes of their choice once every two years. this is permitted subject to prior approval of the competent authority. However. Electronic Board (Panaboard). The training halls are equipped with the latest and most sophisticated audio-visual equipments to ensure training effectiveness.Training and Development. 3) Training Facilities The non residential training programmes are conducted in the training halls located in the HO/Regional head quarters. Nominations for regional courses are as per the eligibility criteria laid down for each programme. Management training courses / supervisory development courses are conducted in some of the reputed nominated hotels. The nominations for workmen category are finalized at the regional training centers keeping in view the specific needs of each employee segment. Withdrawal of nomination – once the training department identifies the nominations and course announcement is made. for improving training efficiency. It has an excellent collection of books and CDs on various aspects of Management. 70 . They have also acquired latest electronic gadget like liquid Crystal Display. direct projector. in extreme unavoidable circumstances.

live video recording. case study method etc. computer aided Management Games. Each faculty member is required to have thorough knowledge of his subject. This aids in the process of learning for workmen training. In-house faculty imparts a lot of credibility to the training efforts. 5) Training Faculty The trainer has to be prepared for the job for he is the key figure in the entire programme. In the training courses. training methodology mix is carefully designed. The training faculty members are selected based on their positive attitude towards training assignment and their ability to communicate effectively with others. which are then duly considered by the management for implementation. In the management training courses emphasis is placed on the use of state-of-the art training technologies like simulation exercises. structured experiential instruments. 71 . 4) Training Techniques Depending on the course objectives. Adequate emphasis is given to hands-on-training. the management provides ample opportunity to the employees to take active part in the learning process. Petroleum Industry and Energy Management besides general disciplines. The training faculty is responsible for ensuring that the formal training activities are in line with the organisational requirements.Training and Development. The participants of various training programmes are also required to prepare reports and make formal presentations. The strength of the Training in INDIAN OIL lies in the faculty being generated from within.Indian Oil Information Technology. Syndicate project studies are also given in most of the courses to study the live organizational problems and give recommendations.

Training and Development- Indian Oil The functional managers from various departments are invited as part-time faculty members to share their knowledge pertaining to their disciplines. It also helps the functional managers to remain up-to-date in their specialized functions. On a very selective basis, they invite guest speakers in the training programmes in such areas where they do not have sufficient expertise within the organization. This is done with the selection of names from CEOs of top corporate houses and professional institutes like IIM’s and IIT’s. The training center is also well equipped with professionally qualified trainer who are competent to conduct the management development programmes, both at HO/Regional level.

6) Preparation Of The Trainee (Participants): This step consists of 1 Putting the learner (trainee) at ease. 2 Stating the importance and the ingredients of the job and its relationship to work flow. 3 Explaining why he is being taught. 4 Creating interest and encouraging questions, finding out what the learner already knows about his job. 5 Explaining “why” of the whole job and relating it to some other job the worker already knows. 6 Placing the learner as close to his normal working position as possible.

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Training and Development- Indian Oil 7 Familiarizing him with equipment, materials, tools, and trade terms.

7) Evaluation Effectiveness Of Training In Indian Oil

Different approaches could be adopted to evaluate the effects, impact, and effectiveness of training. The methods may vary from an evaluation of the perceptions on training of the trainees, supervisors, subordinates and trainers to studying the entire training function itself. The study could encompass the cost benefit analysis of the training or the impact it has had on productivity and efficiency of the organization. To understand the knowledge gained from the training and thereafter, the transferability of this learning on the job situation and its effect on rise or fall of productivity necessitates the availability of certain information. It is essential to understand the level of knowledge of participants before the initiation of training process to calculate the possible gains from training. On the other hand, a study, which comes in after the event of training, is necessarily constrained to study the perceptions of the trainees, trainers and the organization with regard to effectiveness of the training effort. The perception study is principally an after the event evaluation. The approach here is to elicit the perception of participants after attending training programmes, on various aspects of the programme, the learning he/she has derived from the programme and any change in attitude, knowledge or skill level and its transferability to onthe-job situation. The perceptions expressed by the participants are further checked out with their superiors, subordinates, and peers. For management training courses, session-wise evaluation is done for each session. The overall course evaluation is done by the participants at the end of 73

Training and Development- Indian Oil each programme and the courses are modified depending upon the feedback received. At periodic intervals, evaluation of training effectiveness is conducted by reputed outside professional agencies like Tata Management Training Centre, Administrative staff college of India etc. The participants attending the external training and are required to make a formal presentation regarding the training received along with an action plan for implementation. This ensures transfer of knowledge for on-the-job performance. Training function also enjoys adequate support from top management to monitor various programmes and upgrade the same from time to time. The post course evaluation and monitoring of functional courses is done with the support of the respective functional groups. A high degree of innovation in training efforts is ensured due to the above interventions.

8) Follow-up
This step is undertaken with a view to trusting the effectiveness of training efforts. This consist of Putting trainee ‘on his own’.  Checking frequently to be sure that he/she has followed instructions.  Tapering off extra supervision and close follow-up until he is qualified to work with normal supervision. Basically two types of training programmes are conducted by the training department : a. b. Functional Programme Developmental Programme 74

Training and Development- Indian Oil

Nature / Methods Of Training :
After the employee has been recruited, selected, and inducted, he must next be developed to better job and the organization. No one is perfect fit at the time of hiring and some training and education is essential. No organization has a choice of whether to develop employees or not, the only choice it has is that of method of development. If no organized programmes exist then development will largely be self-development, while learning on the job. Development would include both training to increase skill in performing a specific job and education to increase general knowledge and understanding of the total environment. Planned development programmes will return values to the organization in terms of increased productivity, heightened morale, reduced costs and greater organizational stability and flexibility to adapt to changing external requirements. Such programmes will also help meet the needs of individuals in their search for work assignments that can add up to life-long careers. There are mainly two reasons for functioning training: 1. Training programmes for non managers to develop skills to perform a job. 2. Training and educational programmes designed to develop organizational units as entities.

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which have no connection with the company. from the assistant to company’s chairman gets some on-the-job training when he joins a firm. means that the personnel unit has a major responsibility for making a good effective teacher out of every supervisor. a management trainee is made to move from job at certain intervals. crafts. the trainer. The fact that the success of the system depends almost entirely upon the immediate supervisor.Training and Development. 2. every employee. Special assignments or committees are other methods used to provide lower level executives with first hand experience in working on actual problems. ON-THE-JOB TRAINING : Virtually. These methods consist of 76 . Since most jobs in an industry can be learnt is a relatively shorter period of time this method is widely used. The actual location may be in the company classrooms or in places. It has the advantage of strongly motivating the trainee to learn since it is not located in the artificial situation of a classroom. the employee is trained on the job by his immediate supervisor. job rotation and special assignment under coaching or under study method (which is also known as internship and apprenticeship method). Apprenticeship is generally used to impart skills requiring long periods of practice as found in trade. which are owned by the company or in universities or associations. and other technical fields. The jobs vary in content. Internship is usually applied to managerial personnel and provides a wide variety of job experience.Indian Oil CLASSIFICATION OF TRAINING METHODS: 1. OFF-THE-JOB METHODS OR CLASS ROOM : Off-the-job training simply means that training is not a part of every day activity. There are a variety of on the job methods such as coaching or under study. In job rotation.

Training and Development. Lectures Conferences Group Discussions Case studies Role playing Programmed instructions T-group training i. A conference is basic to most participative group centered methods of development. It may be based on paper prepared by one or more trainees or on a 77 . the formal superior or other individual specific topics. which are to be trained within a short time thus reducing the cost per trainee. v. concepts or principles. ii. Lectures Lectures are regarded as one of the simplest ways of imparting knowledge to the trainees especially when facts. the participating individuals confer to discuss points of common interests to each other. It lays emphasis on small group discussions. Seminar / Team Discussion This is an established method for training. Lectures are formal organized talks by the training specialist. iv. conducted in accordance with an organized plan in which the leader seems to develop knowledge and understanding by obtaining a considerable amount of oral participation of the trainees. theories and problems solving abilities are to be taught. Conference Method In this method. iii. vii. It can be organized rigorously so that ideas and principles relate properly.Indian Oil i. The lecture method can be used for very large groups. iii. a seminar is conducted in many ways. It is a formal meeting. on organized subject matter and on the active participation of the members involved. ii. attitudes. vi.

become acquainted with the content of the case. The person in charge of the seminar distributes in advance the material to be analysed in the form of required readings. and discussion of concrete cases.  Identify the problems in the case and uncover their probable causes.Indian Oil subject selected in consultation with a person in charge of the seminar.  Develop alternative courses of action. written or oral miniature description. When the trainees are given case to analyse. 78 . Case study is based on the belief that managerial competence can best be attained through the study. In Case study method.  Screen the alternatives using the objectives as criteria. and summary of such data that present issue and problems calling for solutions or actions on the part of the trainee. encourages discussions. A case is a set of data. The seminar compares the reactions of trainees.  Define the objectives sought in dealing with the issues in the case.Training and Development. It may be based on the statement made by the person in charge of the seminar or on a document prepared by an expert who is invited to participate in the discussion. the trainee is expected to  Master the facts. defines the general trends and guides the participants to certain conclusions. they are asked to identify the problems and to recommend tentative solutions for it. Iv. contemplation. Case Studies This method was first developed by Christopher Lanzdell in the 1880s at the Harward Law School to help students to learn for themselves by independent thinking. It may be part of the study or related to the critical studies or practical problems. real or fictional.

firing. members are kept informed of the latest development in their particular fields. proposed or desired course of proceedings pertaining to the learning or the acquisition of some specific skills or general knowledge. audio-visual aids and planned reading programmes. they have to play. T-Group Training This usually comprises association. vii. Two or more trainees are assigned parts to play before the rest of the class. Programmed Instruction (Teaching By The Machine Method) Programmed Instruction involves a sequence of steps. a programmed instruction involves breaking information down into meaningful units and arranging these in a proper way to form a logical and sequential learning programme or package. discussing a grievance procedure. It incorporates a prearranged. Planned and supervised reading programmes 79 . conducting a post appraisal interview or disciplining a subordinate or a salesman making a representation to a customer. tapes and films are generally used in conjunction with other conventional teaching methods. v.Indian Oil  Select the alternative that is most in keeping with the stated objectives. The role players are simply informed of the situation and of the respective roles. These parts do not involve any memorization of lines or any rehearsals.Training and Development. Vi. hiring. Role – Playing In role-playing trainees act out a given role as they would in a stage play. which are often set up through the central panel of an electronic computer as guides in the performance of desired operation or series of operations. Sometimes after the preliminarily involves employee-employer relations. Members of a professional association receive training by it in new techniques and ideas pertaining to their own vocations through a regular supply of professional journals and informal social contacts or gatherings. Audio-visual aids-records.

80 . which is often imparted with the help of the equipment. It is a very essential method of training semi-skilled personnel. technical publications and the latest journals are kept in the library for the use of the trainees. It is a classroom training.Training and Development. 3. particularly when many employees have to be trained for the same kind of work at the same time. This technique enables the trainee to concentrate on learning the new skill rather than on performing an actual job. which are identical with those in use in the work place. and machines. VESTIBULE TRAINING : This method attempts to duplicate on the job situations in a company classroom.Indian Oil are conducted.

In addition. The training and development programmes held in Indian Oil helped their employees to know theirs strength and weaknesses and helped them to work on their weaknesses. 81 . The training programmes have helped their employees to improve their skill and efficiency because of which they are able to undertake new challenges in their work. Indian Oil is been very successful in doing that. Any training would be considered successful only when the knowledge gained by the participants is transferred to the job performance. and this had played a role in more systematic organization development.Training and Development. it has percolated right form the top to the bottom levels.Indian Oil Conclusion: Training has played a very important role in helping Indian Oil to reach the commanding heights of performance. Indian Oil has a very strong base of human resource development and training.

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