MINOR PROJECT ON INDIAN OIL CORPORATION (IOC) INFERNO, JAIPUR

Submitted in the partial fulfilment for the award of the degree of

BACHELOR OF BUSINESS A !INIS"RA"ION

Submitted to: Mrs. Sangeeta Joshi Submitted by: AADITYA BBA III SEM (A)
07819201712

A SESSION: 2013 2014

Linga a!" La#i$a %&'i in"$i$($& )* +anag&+&n$ , S-i&n-& Man%i, D&#.i/110040

DECLARATION
I do hereby declare that the case study titled INDIAN OIL CORPORA ION !IOC" IN#$RNO %AIP&R' sub(itted by (e i) the *artial +ul+il(e)t o+ the re,uire(e)t o+ the de-ree +ro( LLDIMS a++iliated to ../ INDRAPRA/ 0A &NI1$R/I 23 D$L0I is e4clusi5ely *re*ared a)d co)ce*tuali6ed by (e a)d is )ot sub(itted to a)y other i)stitutio) or u)i5ersity or *ublished a)y7here be+ore +or the re7ard o+ a)y De-ree8Di*lo(a certi+icate9 It is ori-i)al 7or: o+ (i)e a)d has )ot bee) obtai)ed +ro( a)y other *art9 All sources o+ i)+or(atio) a)d hel* are authe)tic a)d ha5e bee) ac:)o7led-e i) the re*ort9

Date; Place; Delhi

<rs9 /AN.$$ A %O/0I

!/i-)ature o+ +aculty -uide" /tude)t"

AADI 2A
!/i-)ature o+

AC1NO2LED3EMENT
Nothi)- co)crete ca) be achie5ed 7ithout a) o*tio)al co(bi)atio) o+ i)s*iratio) a)d *ers*iratio)9 No 7or: ca) be acco(*lished 7ithout ta:i)- the -uida)ce o+ e4*erts9 It is o)ly the critics +ro( i)-e)ious i)tellectual that hel*ed tra)s+or( a *roduct i)to a ,uality9 #i)ally3 I -rate+ully ac:)o7led-e a)d e4*ress (y dee* -ratitude to <rs9 /a)-eeta %oshi (y +aculty -uides 7ho al7ays hel*ed a)d *ro5ides -uida)ce duri)- the course o+ (y *ro=ect9 I 7ould li:e to e4te)d (y ear)est tha):s +or her assista)ce i) the course o+ (y *ro=ect9

AADI 2A
&

TA4LE OF CONTENT
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#' I)troductio) $' Co(*a)y 0istory >9 C)+7an 12 &' %oi)t 1e)ture (' Ob=ecti5e a)d Obli-atio) )' Case /tudy *' Assess(e)t +' Causes ,' I(*act 105 S$&7" $a:&n 30 115 30 125 S(gg&"$i)n 1>5 4i;#i)g8a7.

6 7 P8)*i#& 19 22 33 >? >@ >@ 3)'&8n+&n$ Fin%ing" 39 3<

In$8)%(-$i)n
In%ian Oi# C)87)8a$i)n / a .o5er)(e)t o+ I)dia e)ter*rise3 a) I)dia based Oil a)d Natural -as *roduce a)d (ar:eti)- co(*a)y9 IOC !I)dia) Oil Cor*oratio)" 7as +or(ed i) 19@? as the result o+ (er-er o+ I)dia) Oil Co(*a)y Ltd9!$std9 19A9" a)d I)dia) Re+i)eries Ltd9 !$std9 19A8"9 I)dia) Oil Cor*oratio) is the 21st lar-est *etroleu( co(*a)y i) the 7orld a)d the ace *etroleu( tradi)- co(*a)y a(o)- the Natio)al Oil Co(*a)ies i) the AsiaBPaci+ic re-io)9 In%ian Oi# C)87)8a$i)n -rou* o+ co(*a)ies i)cludes Lan:a IOC Li+i$&%, In%ian Oi# (Ma(8i$i(") L$%5, I4P C)5L$%5, CPCL, 4RPL a)d I)dia) Oil ech)olo-ies Ltd9 I)dia) Oil Cor*oratio) has A9 i))o5atio) *ate)ts to its )a(e a)d (a)y corres*o)di)I)ter)atio)al Pate)ts i) (a=or cou)tries9 IOC is a #ortu)e A00 co(*a)yC curre)t ra): 1A> !200@"9 In%ian Oi# C)87)8a$i)n has to its )a(e a )u(ber o+ A7ards a)d Accreditatio)s li:e B

.olde) Peacoc: $co I))o5atio) A7ardB200@9 Natio)al Rural De5elo*(e)t Cor*oratio) A7ard +or I)de reat I)de/7eet3 0i-h Per+or(a)ce additi5es3 Nuta) Dic: /to5e B 200A3 20023 19819 /$/IBEiodiesel i)itiati5es B 200A9 Ra=i5 .a)dhi Natio)al Fuality A7ard B 200A a)d 19979 D/IR A7ards +or I <a4 #CC Catalyst Additi5e G IND<AH3 Rail road oils3 $)er-y Co)ser5i)- Lubrica)ts B200>B0?3 20023 199>9 I)stitute o+ Petroleu(3 &I +or Oili5orousB/ B 200>9 D/ +or IND<AH B 200>9 <e(bershi* o+ Russia) Acade(y o+ Natural /cie)ces B 1999 I)dia) Che(ical <a)u+acturers Associatio) Citatio) B 199@9 &)ited Natio)s DIPO /il5er <edal B199@9
)

&)ited Natio)s Dorld I)tellectual Pro*erty Or-a)i6atio)s .old <edal B 198>9

A-$i'i$i&"
IOC o++ers /er5ices i) areas li:e J Re+i)eries9 Pi*eli)es9

<ar:eti)-9 RGD9 Petroche(icals9 .as9 $GP9

P&8*)8+an-&
In%ian Oi# C)87)8a$i)n has re-istered a tur)o5er o+ Rs 138?3?@0970 crore +or the year e)ded >1st <arch 20079

C)+7an =i"$)8
he I)dia) Oil Cor*oratio) Ltd9 o*erates as the lar-est co(*a)y i) I)dia i) ter(s o+ tur)o5er a)d is the o)ly I)dia) co(*a)y to ra): i) the #ortu)e K.lobal A00K listi)-9 he oil co)cer) is ad(i)istrati5ely co)trolled by I)diaLs <i)istry o+ Petroleu( a)d Natural .as3 a -o5er)(e)t e)tity that o7)s =ust o5er 90 *erce)t o+ the +ir(9 /i)ce 19A93 this re+i)i)-3 (ar:eti)-3 a)d i)ter)atio)al tradi)- co(*a)y ser5ed the I)dia) state 7ith the i(*orta)t tas: o+ reduci)- I)diaLs de*e)de)ce o) +orei-) oil a)d thus co)ser5i)5aluable +orei-) e4cha)-e9 hat cha)-ed i) A*ril 20023 ho7e5er3 7he) the I)dia) -o5er)(e)t dere-ulated its *etroleu( i)dustry a)d e)ded I)dia) OilLs (o)o*oly o) crude oil i(*orts9 he +ir( o7)s a)d o*erates se5e) o+ the 17 re+i)eries i) I)dia3 co)trolli)- )early ?0 *erce)t o+ the cou)tryLs re+i)i)- ca*acity9

O8igin"
I)dia) Oil o7es its ori-i)s to the I)dia) -o5er)(e)tLs co)+licts 7ith +orei-)Bo7)ed oil co(*a)ies i) the *eriod i((ediately +ollo7i)- I)diaLs i)de*e)de)ce i) 19?79 he leaders o+ the )e7ly i)de*e)de)t state +ou)d that (uch o+ the cou)tryLs oil i)dustry 7as e++ecti5ely i) the ha)ds o+ a *ri5ate (o)o*oly led by a co(bi)atio) o+ EritishBo7)ed oil co(*a)ies Eur(ah a)d /hell a)d &9/9 co(*a)ies /ta)dardB1acuu( a)d Calte49 A) i)di-e)ous I)dia) i)dustry barely e4isted9 Duri)- the 19>0s3 a s(all )u(ber o+ I)dia) oil traders had (a)a-ed to trade outside the i)ter)atio)al cartel9 hey i(*orted (otor s*irit3 diesel3 a)d :erose)e3 (ai)ly +ro( the /o5iet &)io)3 at less tha) 7orld
*

(ar:et *rices9 /u**lies 7ere irre-ular3 a)d they lac:ed (ar:eti)- )et7or:s that could e++ecti5ely co(*ete 7ith the (ulti)atio)als9 Eur(ahB/hell e)tered i)to *rice 7ars a-ai)st these i)de*e)de)ts3 causi)- *rotests i) the )atio)al *ress3 7hich de(a)ded -o5er)(e)tBset (i)i(u( a)d (a4i(u( *rices +or :erose)eBBa basic coo:i)- a)d li-hti)- re,uire(e)t +or I)diaLs *eo*leBBa)d (otor s*irit9 No actio) 7as ta:e)3 but so(e o+ the i)de*e)de)ts (a)a-ed to sur5i5e u)til Dorld Dar II3 7he) they 7ere ta:e) o5er by the colo)ial -o5er)(e)t +or 7arti(e *ur*oses9 Duri)- the 7ar3 the su**ly o+ *etroleu( *roducts i) I)dia 7as re-ulated by a co((ittee i) Lo)do)9 Dithi) I)dia3 a co((ittee u)der the chair(a)shi* o+ the -e)eral (a)a-er o+ Eur(ahB/hell a)d co(*osed o+ oil co(*a)y re*rese)tati5es *ooled the su**ly a)d 7or:ed out a set *rice9 Prices 7ere re-ulated by the -o5er)(e)t3 a)d the -o5er)(e)t coordi)ated the su**ly o+ oil i) accorda)ce 7ith de+e)ce *olicy9

T.& In%ian Oi# In%("$8 E')#'&": La$& 1<40"/60"

Darti(e ratio)i)- lasted u)til 19A03 a)d a shorta-e o+ oil *roducts co)ti)ued u)til 7ell a+ter i)de*e)de)ce9 he -o5er)(e)tLs 19?8 I)dustrial Policy Resolutio) declared the oil i)dustry to be a) area o+ the eco)o(y that should be reser5ed +or state o7)ershi* a)d co)trol3 sti*ulati)- that all )e7 u)its should be -o5er)(e)tBo7)ed u)less s*eci+ically authori6ed9 I)dia re(ai)ed e++ecti5ely tied to a colo)ial su**ly syste(3 ho7e5er9 Oil could o)ly be a++orded i+ i(*orted +ro( a cou)try i) the sterli)- area rather tha) +ro( cou)tries 7here it had to be *aid +or i) dollars9 I) 19?93 I)dia as:ed the oil co(*a)ies o+ Eritai) a)d the &)ited /tates to o++er ad5ice o) a re+i)ery *ro=ect to (a:e the cou)try (ore sel+Bsu++icie)t i) oil9 he =oi)t tech)ical co((ittee ad5ised a-ai)st the *ro=ect a)d said it could o)ly be ru) at a co)siderable loss9 he oil co(*a)ies 7ere *re*ared to co)sider buildi)- t7o re+i)eries3 but o)ly i+ these re+i)eries 7ere allo7ed to sell *roducts at a *rice te) *erce)t abo5e 7orld *arity *rice9 he -o5er)(e)t re+used3 but 7ithi) t7o years a) e5e)t i) the Persia) .ul+ caused the co(*a)ies to cha)-e their (i)ds a)d build the re+i)eries9 he co(*a)ies had lost their hu-e re+i)ery at Abada) i) Ira) to Pri(e <i)ister <ussade-hLs )atio)ali6atio) decree a)d 7ere u)able to su**ly I)diaLs *etroleu( )eeds +ro( a sterli)-Barea cou)try9 Dith the se5ere +orei-) e4cha)-e *roble(s created3 the +orei-) co(*a)ies +eared )e7 Ira)ia) co(*etitio) 7ithi) I)dia9 $5e) (ore i(*orta)t3 the -o5er)(e)t be-a) to discuss setti)u* a re+i)ery by itsel+9 Eet7ee) 19A? a)d 19A73 t7o re+i)eries 7ere built by Eur(ahB/hell a)d /ta)dardB 1acuu( at Eo(bay3 a)d a)other 7as built at 1isa:ha*at)a( by Calte49 Duri)- the sa(e *eriod the co(*a)ies +ou)d the(sel5es i) i)creasi)- co)+lict 7ith the -o5er)(e)t9 he -o5er)(e)t ca(e i)to disa-ree(e)t 7ith Eur(ah Oil o5er the Nahor:atiya oil +ield shortly a+ter its disco5ery i) 19A>9 It re+used Eur(ah the ri-ht to re+i)e or (ar:et this
+

oil a)d i)sisted o) =oi)t o7)ershi* i) crude *roductio)9 Eur(ah the) te(*orarily sus*e)ded all e4*loratio) acti5ities i) I)dia9 /hortly a+ter7ard3 the -o5er)(e)t accused the co(*a)ies o+ char-i)- e4cessi5e *rices +or i(*orti)- oil9 he co(*a)ies also re+used to re+i)e /o5iet oil that the -o5er)(e)t had secured o) 5ery +a5orable ter(s9 he -o5er)(e)t 7as i(*atie)t 7ith the co(*a)iesL relucta)ce to e4*a)d re+i)i)- ca*acity or trai) su++icie)t I)dia) *erso))el9 I) 19A83 the -o5er)(e)t +or(ed its o7) re+i)ery co(*a)y3 I)dia) Re+i)eries Ltd9 Dith /o5iet a)d Ro(a)ia) assista)ce3 the co(*a)y 7as able to build its o7) re+i)eries at Noo)(ati3 Earau)i3 a)d Ioyali9 #orei-) co(*a)ies 7ere told that they 7ould )ot be allo7ed to build a)y )e7 re+i)eries u)less they a-reed to a (a=ority shareholdi)- by the I)dia) -o5er)(e)t9 I) 19A93 the I)dia) Oil Co(*a)y 7as +ou)ded as a statutory body9 At +irst3 its ob=ecti5e 7as to su**ly oil *roducts to I)dia) state e)ter*rise9 he) it 7as (ade res*o)sible +or the sale o+ the *roducts o+ state re+i)eries9 A+ter a 19@1 *rice 7ar 7ith the +orei-) co(*a)ies3 it e(er-ed as the )atio)Ls (a=or (ar:eti)- body +or the e4*ort a)d i(*ort o+ oil a)d -as9 .ro7i)- /o5iet i(*orts led the +orei-) co(*a)ies to res*o)d 7ith a *rice 7ar i) Au-ust 19@19 At this ti(e3 I)dia) Oil had )o retail outlets a)d could sell o)ly to bul: co)su(ers9 he oil co(*a)ies u)dercut I)dia) OilLs *rices a)d le+t it 7ith stora-e *roble(s9 I)dia) Oil the) o++ered e5e) lo7er *rices9 he +orei-) co(*a)ies 7ere the ulti(ate losers because the -o5er)(e)t 7as *ersuaded that a *olicy o+ allo7i)- I)dia) Oil do(i)a)ce i) the (ar:et 7as correct9 his *olicy allo7ed I)dia) Oil the (ar:et share o+ the out*ut o+ all re+i)eries that 7ere *artly or 7holly o7)ed by the -o5er)(e)t9 #orei-) oil co(*a)ies 7ould o)ly be allo7ed such (ar:et share as e,ualed their share o+ re+i)ery ca*acity9

In%ian Oi# C)87)8a$i)n: 1<64 $) $.& 1<<0"

I) /e*te(ber 19@?3 I)dia) Re+i)eries Ltd9 a)d the I)dia) Oil Co(*a)y 7ere (er-ed to +or( the I)dia) Oil Cor*oratio)9 he -o5er)(e)t a))ou)ced that all +uture re+i)ery *art)ershi*s 7ould be re,uired to sell their *roducts throu-h I)dia) Oil9 It 7as 7idely e4*ected that I)dia) Oil a)d I)diaLs Oil a)d Natural .as Co((issio) !ON.C" 7ould e5e)tually be (er-ed i)to a si)-le state (o)o*oly co(*a)y9 Eoth co(*a)ies -re7 5astly i) si6e a)d sales 5olu(e but3 des*ite close li):s3 they re(ai)ed se*arate9 ON.C retai)ed co)trol o+ (ost o+ the cou)tryLs e4*loratio) a)d *roductio) ca*acity9 I)dia) Oil re(ai)ed res*o)sible +or re+i)i)- a)d (ar:eti)-9 Duri)- this sa(e decade3 I)dia +ou)d that ra*id i)dustriali6atio) (ea)t a lar-e +uel bill3 7hich 7as a steady drai) o) +orei-) e4cha)-e9 o (eet the crisis3 the -o5er)(e)t
,

*rohibited i(*orted *etroleu( a)d *etroleu( *roduct i(*orts by *ri5ate co(*a)ies9 I) e++ect3 I)dia) Oil 7as -i5e) a (o)o*oly o) oil i(*orts9 A *olicy o+ state co)trol 7as rei)+orced by I)diaLs closer eco)o(ic a)d *olitical li):s 7ith the /o5iet &)io) a)d its isolatio) +ro( the (ai)strea( o+ 7ester) (ulti)atio)al ca*italis(9 Althou-h I)dia ide)ti+ied its i)ter)atio)al *olitical sta)ce as )o)Bali-)ed3 the -o5er)(e)t beca(e i)creasi)-ly +rie)dly 7ith the /o5iet Eloc3 because the &)ited /tates a)d Chi)a 7ere see) as too closely li):ed to I)diaLs (a=or ri5al3 Pa:ista)9 I)dia a)d the &//R e)tered i)to a )u(ber o+ trade deals9 O)e o+ the (ost i(*orta)t o+ these trade *acts allo7ed I)dia) Oil to i(*ort oil +ro( the &//R a)d Ro(a)ia at *rices lo7er tha) those *re5aili)- i) 7orld (ar:ets a)d to *ay i) local curre)cy3 rather tha) dollars or other co)5ertible curre)cies9 #or a ti(e3 )o (ore +orei-) re+i)eries 7ere allo7ed9 Ey the (idB19@0s3 -o5er)(e)t *olicy 7as (odi+ied to allo7 e4*a)sio)s o+ +orei-)Bo7)ed re+i)ery ca*acity9 he I)dia) Oil Cor*oratio) 7or:ed out barter a-ree(e)ts 7ith (a=or oil co(*a)ies i) order to +acilitate distributio) o+ re+i)ery *roducts9 I) the 1970s3 the Oil a)d Natural .as Co((issio) o+ I)dia3 7ith the hel* o+ /o5iet a)d other +orei-) co(*a)ies3 (ade se5eral i(*orta)t )e7 +i)ds o++ the 7est coast o+ I)dia3 but this i)creased do(estic su**ly 7as u)able to :ee* u* 7ith de(a)d9 Dhe) i)ter)atio)al *rices rose stee*ly a+ter the 197> Arab oil boycott3 I)diaLs +orei-) e4cha)-e *roble(s (ou)ted9 I)dia) OilLs role as the cou)tryLs (o)o*oly buyer -a5e the co(*a)y a) i)creasi)-ly i(*orta)t role i) the eco)o(y9 Dhile the /o5iet &)io) co)ti)ued to be a) i(*orta)t su**lier3 I)dia) Oil also bou-ht /audi3 Ira,i3 Iu7aiti3 a)d &)ited Arab $(irate oil9 I)dia beca(e the lar-est si)-le *urchaser o+ crude o) the Dubai s*ot (ar:et9 he -o5er)(e)t decided to )atio)ali6e the cou)tryLs re(ai)i)- re+i)eries9 he Eur(ahB /hell re+i)ery at Eo(bay a)d the Calte4 re+i)ery at 1isa:ha*at)a( 7ere ta:e) o5er i) 197@9 he Eur(ahB/hell re+i)ery beca(e the (ai) asset o+ a )e7 state co(*a)y3 Eharat Petroleu( Ltd9 Calte4 Oil Re+i)i)- !I)dia" Ltd9 7as a(al-a(ated 7ith a)other state co(*a)y3 0i)dusta) Petroleu( Cor*oratio) Ltd93 i) <arch 19789 0i)dusta) had beco(e +ully I)dia)Bo7)ed o) October 13 197@3 7he) $ssoLs 2@ *erce)t share 7as bou-ht out9 O) October 1?3 19813 Eur(ah OilLs re(ai)i)- i)terests i) the Assa( Oil Co(*a)y 7ere )atio)ali6ed3 a)d I)dia) Oil too: o5er its re+i)i)- a)d (ar:eti)acti5ities9 0al+ o+ I)diaLs 12 re+i)eries belo)-ed to I)dia) Oil9 he other hal+ belo)-ed to other stateBo7)ed co(*a)ies9 Ey the e)d o+ the 1980s3 I)diaLs oil co)su(*tio) co)ti)ued to -ro7 at ei-ht *erce)t *er year3 a)d I)dia) Oil e4*a)ded its ca*acity to about 1A0 (illio) barrels o+ crude *er a))u(9 I) 19893 I)dia) Oil a))ou)ced *la)s to build a )e7 re+i)ery at Pradi* a)d (oder)i6e the Di-boi re+i)ery3 I)diaLs oldest9 0o7e5er3 the -o5er)(e)tLs Public I)5est(e)t Eoard re+used to a**ro5e a 1203000 barrelsB*erBday re+i)ery at Daitari i) Orissa because it +eared +uture o5erBca*acity9 Ey the early 1990s3 I)dia) Oil re+i)ed3 *roduced3 a)d tra)s*orted *etroleu( *roducts throu-hout I)dia9 I)dia) Oil *roduced crude oil3 base oil3 +or(ula *roducts3 lubrica)ts3
#-

-reases3 a)d other *etroleu( *roducts9 It 7as or-a)i6ed i)to three di5isio)s9 he re+i)eries a)d *i*eli)es di5isio) had si4 re+i)eries3 located at .7ahati3 Earau)i3 .u=arat3 0aldia3 <athura3 a)d Di-boi9 o-ether3 the si4 re*rese)ted ?A *erce)t o+ the cou)tryLs re+i)i)- ca*acity9 he di5isio) also laid a)d (a)a-ed oil *i*eli)es9 he (ar:eti)di5isio) 7as res*o)sible +or stora-e a)d distributio) a)d co)trolled about @0 *erce)t o+ the total oil i)dustry sales9 he Assa( Oil di5isio) co)trolled the (ar:eti)- a)d distributio) acti5ities o+ the +or(erly EritishBo7)ed co(*a)y9 I)dia) Oil also established its o7) research ce)ter at #aridabad )ear Ne7 Delhi +or testi)- lubrica)ts a)d other *etroleu( *roducts9 It de5elo*ed lubrica)ts u)der the bra)d )a(es /er5o a)d /er5o*ri(e9 he ce)ter also desi-)ed +uelBe++icie)t e,ui*(e)t9

C.ang&" in $.& Oi# In%("$8 : La$& 1<<0" an% 4& )n%

he oil i)dustry i) I)dia cha)-ed dra(atically throu-hout the 1990s a)d i)to the )e7 (ille))iu(9 Re+or( i) the do7)strea( hydrocarbo) sectorBBthe sector i) 7hich I)dia) Oil 7as the (ar:et leaderBBbe-a) as early i) 1991 a)d co)ti)ued throu-hout the decade9 I) 19973 the -o5er)(e)t a))ou)ced that the Ad(i)istered Prici)- <echa)is( !AP<" 7ould be dis(a)tled by 20029 o *re*are +or the i)creased co(*etitio) that dere-ulatio) 7ould bri)-3 I)dia) Oil added a se5e)th re+i)ery to its holdi)-s i) 1998 7he) the Pa)i*at +acility 7as co((issio)ed9 he co(*a)y also loo:ed to stre)-the) its i)dustry *ositio) by +or(i)=oi)t 5e)tures9 I) 199>3 the +ir( tea(ed u* 7ith Eal(er La7rie G Co9 a)d N2CO /A o+ #ra)ce to create A5iBOil I)dia Ltd93 a (a)u+acturer o+ oil *roducts used by de+e)se a)d ci5il a5iatio) +ir(s9 O)e year later3 I)do <obil Ltd9 7as +or(ed i) a A0BA0 =oi)t 5e)ture 7ith $44o) <obil9 he )e7 co(*a)y i(*orted a)d ble)ded <obil bra)d lubrica)ts +or (ar:eti)- i) I)dia3 Ne*al3 a)d Ehuta)9 I) additio)3 I)dia) Oil 7as i)5ol5ed i) the +or(atio) o+ te) (a=or 5e)tures +ro( 199@ throu-h 20009 I)dia) Oil also e)tered the *ublic are)a as the -o5er)(e)t di5ested )early 10 *erce)t o+ the co(*a)y9 I) 20003 I)dia) Oil a)d ON.C traded a 10 *erce)t e,uity sta:e i) each other i) a strate-ic allia)ce that 7ould better *ositio) the t7o a+ter the AP< dis(a)tli)-3 7hich 7as scheduled +or 20029 Accordi)- to a 1999 Hindu article3 I)dia) Oil Cor*oratio)Ls strate-y at this ti(e 7as Kto beco(e a di5ersi+ied3 i)te-rated -lobal e)er-y cor*oratio)9K he article 7e)t o) to clai( that K7hile (ai)tai)i)- its leadershi* i) oil re+i)i)-3 (ar:eti)- a)d *i*eli)e tra)s*ortatio)3 it ai(s +or hi-her -ro7th throu-h i)te-ratio) a)d di5ersi+icatio)9 #or this3 it is har)essi)- )e7 busi)ess o**ortu)ities i) *etroche(icals3 *o7er3 lube (ar:eti)-3 e4*loratio) a)d *roductio) 999 a)d +uel (a)a-e(e)t i) this cou)try a)d abroad9K I) early 20023 I)dia) Oil ac,uired IEP3 a stateBo7)ed *etroleu( (ar:eti)- co(*a)y9 he +ir( also *urchased a 2@ *erce)t sta:e i) +i)a)cially troubled 0aldia Petroche(icals Ltd9 I) A*ril o+ that year3 I)dia) OilLs (o)o*oly o5er crude i(*orts e)ded as dere-ulatio) o+ the *etroleu( i)dustry 7e)t i)to e++ect9 As a result3 the co(*a)y +aced i)creased co(*etitio) +ro( lar-e i)ter)atio)al +ir(s as 7ell as )e7 do(estic e)tra)ts to
##

the (ar:et9 Duri)- the +irst ?A days o+ dere-ulatio)3 I)dia) Oil lost Rs792A billio)3 a si-)al that the I)diaLs lar-est oil re+i)er 7ould i)deed +ace challe)-es as a result o+ the cha)-es9 Ne5ertheless3 I)dia) Oil (a)a-e(e)t belie5ed that the dere-ulatio) 7ould bri)lucrati5e o**ortu)ities to the co(*a)y a)d 7ould e5e)tually allo7 it to beco(e o)e o+ the to* 100 co(*a)ies o) the #ortu)e A00BBi) 2001 the co(*a)y 7as ra):ed 2099 Dith de(a)d +or *etroleu( *roducts i) I)dia *ro=ected to -ro7 +ro( 1?8 (illio) (etric to)s i) 200@ to >@8 (illio) (etric to)s by 202A3 I)dia) Oil belie5ed it 7as 7ell *ositio)ed +or +uture -ro7th a)d *ros*erity9 P8in-i7a# S(;"i%ia8i&": I)do <obil Ltd9 !A0M"C A5iBOil Ltd9 !2AM"C I)dia) Oilta):i)Ltd9 !2AM"C Petro)et I)dia Ltd9 !1@M"C Petro)et 1I Ltd9 !2@M"C Petro)et C < Ltd9 !2@M"C Petro)et CIPL Ltd9 !129AM"C I)dia) Oil Petro)as Ltd9 !A0M"C I)dia) Oil Pa)i*at Po7er Co)sortiu( Ltd9 !2@M"C I)dia) Oil C. Petroche( Ltd9 !A0M"C Libri6ol I)dia P5t9 Ltd9 !A0M"9

C)+7an P8)*i#&
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I)diaNs +la-shi* )atio)al oil co(*a)y a)d do7)strea( *etroleu( (a=or3 I)dia) Oil Cor*oratio) Ltd9 !I)dia) Oil" is celebrati)- its .olde) %ubilee i) 20099 It is I)diaLs lar-est co((ercial e)ter*rise3 7ith a sales tur)o5er o+ Rs9 23 8A3>>7 crore J the hi-hestB e5er +or a) I)dia) co(*a)y J a)d a )et *ro+it o+ Rs9 23 9A0 crore +or the year 2008B099 I)dia) Oil is also the hi-hest ra):ed I)dia) co(*a)y i) the *resti-ious #ortu)e L.lobal A00L listi)-3 ha5i)- (o5ed u* 11 *laces to the 10Ath *ositio) i) 20099 M85 Sa8$.a: 4&.(8ia C.ai8+an, In%ian Oi# C)87)8a$i)n Li+i$&%

<r9 /artha: Eehuria is Chair(a)3 I)dia) Oil Cor*oratio) Li(ited3 I)diaNs lar-est co((ercial e)ter*rise 7ith &/O@290> billio) tur)o5er +or the year 2008B20093 si)ce 200A9 0e is also Chair(a) !*artBti(e" o+ -rou* co(*a)y Che))ai Petroleu( Cor*oratio) Ltd93 besides headi)- IO I)+rastructure G $)er-y /er5ices Ltd93 a =oi)t 5e)ture +or buildi)- a)d o*erati)- ter(i)alli)- ser5ices +or *etroleu( *roducts9

&)der <r9 EehuriaNs ste7ardshi*3 I)dia) Oil is tra)s+or(i)- i)to a (a=or3 di5ersi+ied3 tra)s)atio)al i)te-rated e)er-y co(*a)y9 Eesides co)solidatio) i) the core areas o+ re+i)i)- a)d (ar:eti)-3 the Cor*oratio) is 5i-orously *ursui)- a stri)- o+ strate-ic i)itiati5es across the hydrocarbo) 5alue chai) +or u*strea( i)te-ratio) i)to e4*loratio) G *roductio) o+ oil3 do7)strea( i)te-ratio) i)to *etroB che(icals a)d di5ersi+icatio) i)to )atural -as (ar:eti)- a)d alter)ati5e +uels3 besides -lobali6atio) o+ do7)strea( o*eratio)s9

A) alu()us o+ /t9 /te*he)Ns Colle-e3 Delhi3 a)d the I)dia) I)stitute o+ <a)a-e(e)t !II<"3 Ah(edabad3 <r9 Eehuria =oi)ed Eur(ah /hell i) 197> be+ore bei)- absorbed i) Eharat Petroleu( Cor*oratio) Ltd93 7here he rose to the to* *ositio) o+ Chair(a) G <a)a-i)- Director9 0e also ser5ed the erst7hile Oil Coordi)atio) Co((ittee o+ the <i)istry o+ Petroleu( G Natural .as3 .o5t9 o+ I)dia9

<<r9 Eehuria is Preside)t o+ the Dorld LP.as Associatio) !DLP.A" si)ce /e*te(ber 20083 bei)- the +irst I)dia) to head the -lobal body9 0e *resided o5er the 22)d .e)eral Asse(bly o+ Dorld LP .as AsB sociatio) !DLP.A" held at RioBdeB%a)eiro3 Era6il3 i) October 20099 $arlier3 duri)- 200@B083 he 7as #irst 1iceBPreside)t o+ DLP.A re*rese)ti)- the LP. i)dustry o+ Asia9

<r9 Eehuria has bee) co)+erred the 0o)orary #ello7shi* o+ the $)er-y I)stitute3 &I3 7hich is the hi-hestBle5el o+ *ro+essio)al reco-)itio) reser5ed +or those 7ho ha5e (ade a )otable a)d disti)-uished co)tributio) to the e)er-y i)dustry9 0is e4*ertise i) I)diaNs

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oil G -as sector has bee) sou-ht at (a)y )atio)al a)d i)ter)atio)al +oru(s3 7here he chaired sessio)s a)d *rese)ted *a*ers9 I)o7) to be a stro)- *eo*leNs (a)'3 <r9 Eehuria *ractices a (a)a-e(e)t style that is both o*e) a)d tra)s*are)t9 0e is also a :ee) -ol+ a)d brid-e *layer9

=)n)8a8 P)"i$i)n" Chair(a) o+ Petroleu( #ederatio) o+ I)dia !Petro #ed"3 re*rese)ti)- I)dia) a)d i)ter)atio)al co(*a)ies a)d or-a)i6atio)s associated 7ith the I)dia) hydrocarbo) sector !Au-ust 200> till date"9 Chair(a) o+ Cou)cil o+ I)dia) $(*loyers !CI$"3 a) a*e4 body o+ e(*loyers i) I)dia9

A--)#a%&"

Na(ed a(o)- the to* 10 (ost i)+lue)tial oil(e) i) I)dia by &*strea(3 the i)ter)atio)ally acclai(ed oil G -as =our)al9 Co)+erred the *resti-ious P/COP$ A7ard +or $4celle)ce a)d Outsta)di)- Co)tributio) to Public /ector <a)a-e(e)t J I)di5idual Cate-oryN +or the year 200@B079

Co)+erred the P&dyo- Rat)aN a7ard by the P0DCCI i) 200@9

Partici*atio) i) I)ter)atio)al #oru(s Deli5ered a s*ecial address at the AsiaBPaci+ic Eusi)ess #oru( at &N$/CAP held at Ea)-:o: i) A*ril P089

Chaired the sessio) o) PNatural .as as ra)s*ortatio) #uelN at the 19th Dorld Petroleu( Co)-ress at <adrid i) %u)e P089

Re*rese)ted I)dia at the ?th OP$C I)ter)atio)al /e(i)ar at 1ie))a i) <arch N099

Atte)ded the 9Ath sessio) o+ I)ter)atio)al Labour Co)+ere)ce at .e)e5a i) %u)e P093 a)d

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s*o:e o) behal+ o+ I)dia o) (atters o+ *olicy related to the oil G -as sector9

In-)87)8a$&% a" In%ian Oi# C)+7an L$%9 o) >0th %u)e3 19A93 it 7as re)a(ed as I)dia) Oil Cor*oratio) Ltd9 o) 1st /e*te(ber3 19@? +ollo7i)- the (er-er o+ I)dia) Re+i)eries Ltd9 !established 19A8" 7ith it9 I)dia) Oil a)d its subsidiaries accou)t +or a**ro4i(ately ?8M *etroleu( *roducts (ar:et share3 >?M )atio)al re+i)i)- ca*acity a)d 71M do7)strea( sector *i*eli)es ca*acity i) I)dia9 #or the year 2008B093 the I)dia) Oil -rou* sold @29@ (illio) to))es o+ *etroleu( *roducts3 i)cludi)- 197 (illio) to))es o+ )atural -as3 a)d e4*orted >9@? (illio) to))es o+ *etroleu( *roducts9 he I)dia) Oil .rou* o+ co(*a)ies o7)s a)d o*erates 10 o+ I)diaLs 20 re+i)eries 7ith a co(bi)ed re+i)i)- ca*acity o+ @092 (illio) (etric to))es *er a))u( !<< PA3 9i9e9 192 (illio) barrels *er day"9 hese i)clude t7o re+i)eries o+ subsidiary Che))ai Petroleu( Cor*oratio) Ltd9 he Cor*oratio)Ls crossBcou)try )et7or: o+ crude oil a)d *roduct *i*eli)es3 s*a))i)o5er 103000 :( a)d the lar-est i) the cou)try3 (eets the 5ital e)er-y )eeds o+ the co)su(ers i) a) e++icie)t3 eco)o(ical a)d e)5iro)(e)tB+rie)dly (a))er9 I)dia) Oil is i)5esti)- Rs9 ?>3?00 crore !&/ O1098 billio)" duri)- the *eriod 2007B12 i) au-(e)tatio) o+ re+i)i)- a)d *i*eli)e ca*acities3 e4*a)sio) o+ (ar:eti)- i)+rastructure a)d *roduct ,uality u*-radatio) as 7ell as i) i)te-ratio) a)d di5ersi+icatio) *ro=ects9

T&-.n)#)g S)#($i)n" P8)'i%&8

I)dia) OilLs 7orldBclass RGD Ce)tre is *erha*s AsiaLs +i)est9 Eesides *io)eeri)- 7or: i) lubrica)ts +or(ulatio)3 re+i)ery *rocesses3 *i*eli)e tra)s*ortatio) a)d alter)ati5e +uels3 the Ce)tre is also the )odal a-e)cy o+ the I)dia) hydrocarbo) sector +or usheri)- i) 0ydro-e) +uel eco)o(y i) the cou)try9 It has set u* a co((ercial 0ydro-e)BCN. statio) at a) I)dia) Oil retail outlet i) Ne7 Delhi this year9 he Ce)tre holds 21? acti5e *ate)ts3 i)cludi)- 11> i)ter)atio)al *ate)ts9

C("$)+&8 Fi8"$
At I)dia) Oil3 custo(ers al7ays -et the +irst *riority9 Ne7 i)itiati5es are lau)ched rou)dB theByear +or the co)5e)ie)ce o+ the 5arious custo(er se-(e)ts9 $4clusi5e H RACAR$ *etrol G diesel statio)s u)5eiled i) select urba) a)d se(iBurba) (ar:ets o++er a ra)-e o+ 5alueBadded ser5ices to e)ha)ce custo(er deli-ht a)d loyalty9 Lar-e +or(at Swagat bra)d outlets cater to hi-h7ay (otorists3 7ith (ulti*le +acilities such as +ood courts3 +irst aid3 rest roo(s a)d dor(itories3 s*are *arts sho*s3 etc9 /*ecially +or(atted Kisan Seva Kendra outlets (eet the di5erse )eeds o+ the rural *o*ulace3 o++eri)a 5ariety o+ *roducts a)d ser5ices such as seeds3 +ertilisers3 *esticides3 +ar( e,ui*(e)t3
#(

(edici)es3 s*are *arts +or truc:s a)d tractors3 tractor e)-i)e oils a)d *u(* set oils3 besides auto +uels a)d :erose)e9 SERVOX ress has bee) lau)ched rece)tly as a o)eBsto* sho* +or auto care ser5ices9 o sa+e-uard the i)terest o+ the 5aluable custo(ers3 i)ter5e)tio)s li:e retail auto(atio)3 5ehicle trac:i)- a)d (ar:er syste(s ha5e bee) i)troduced to e)sure ,uality a)d ,ua)tity o+ *etroleu( *roducts9 I)dia) Oil has =oi)ed the lea-ue o+ -lobal tech)olo-y *ro5iders last year 7ith the selectio) o+ its i)Bhouse de5elo*ed IND<AH tech)olo-y !+or (a4i(isi)- LP.as yield" +or the ? << PA #luidised Catalytic Crac:i)- !#CC" u)it at the Cor*oratio)Ls u*co(i)- 1A << PA -rass roots re+i)ery at Paradi* i) Orissa3 as 7ell as +or the #CC u)it co(i)- u* at ERPL9 A 7hollyBo7)ed subsidiary3 I)dia) Oil ech)olo-ies Ltd93 is e)-a-ed i) co((ercialisi)the i))o5atio)s a)d tech)olo-ies de5elo*ed by I)dia) OilLs RGD Ce)tre9 At I)dia)Oil3 cor*orate social res*o)sibility !C/R" has bee) the cor)ersto)e o+ success ri-ht +ro( i)ce*tio) i) the year 19@?9 he Cor*oratio)Ns ob=ecti5es i) this :ey *er+or(a)ce area are e)shri)ed i) its <issio) state(e)t; K!t" #e$ enri%# t#e &ua$it' "( $i(e "( t#e %"))unit' and reserve e%"$"gi%a$ *a$an%e and #eritage t#r"ug# a str"ng envir"n)ent %"ns%ien%e+K As a co)structi5e *art)er i) the co((u)ities i) 7hich it o*erates3 I)dia)Oil has bee) ta:i)co)crete actio) to realise its social res*o)sibility ob=ecti5es3 thereby buildi)- 5alue +or its shareholders a)d custo(ers9 he Cor*oratio) res*ects hu(a) ri-hts3 5alues its e(*loyees3 a)d i)5ests i) i))o5ati5e tech)olo-ies a)d solutio)s +or sustai)able e)er-y +lo7 a)d eco)o(ic -ro7th9 I) the *ast +our decades3 I)dia)Oil has su**orted i))u(erable social a)d co((u)ity i)itiati5es i) I)dia9 ouchi)- the li5es o+ (illio)s o+ *eo*le *ositi5ely by su**orti)e)5iro)(e)tal a)d healthBcare *ro=ects a)d social3 cultural a)d educatio)al *ro-ra((es9 As *art o+ I)dia)OilLs social res*o)sibility *ro-ra((e3 there is a) I)dia)Oil /cholarshi* sche(e3 7hich *ro5ides +or attracti5e scholarshi*s to bri-ht stude)ts selected o) L(eritB cu(B(ea)sL basis9 As *art o+ the sche(e3 s*ecial e)coura-e(e)t is bei)- -i5e) to -irl stude)ts3 *hysically challe)-ed stude)ts3 a)d stude)ts +ro( % G I as 7ell as the Northeast /tates9 Eesides +ocussi)- *ri(arily o) the 7el+are o+ eco)o(ically a)d socially de*ri5ed sectio)s o+ society3 I)dia)Oil also ai(s at de5elo*i)- tech)oBeco)o(ically 5iable a)d e)5iro)(e)tB +rie)dly *roducts G ser5ices +or the be)e+it o+ (illio)s o+ its co)su(ers3 7hile at the sa(e ti(e e)suri)- the hi-hest sta)dards o+ sa+ety a)d e)5iro)(e)t *rotectio) i) its o*eratio)s9 I)dia)Oil has al7ays bee) i) the +ore+ro)t i) ti(es o+ )atio)al e(er-e)cies9 I)dia)OilPeo*le ha5e ti(e a)d a-ai) rallied to hel* 5icti(s o+ )atural cala(ities3 (ai)tai)i)- u)i)terru*ted su**ly o+ *etroleu( *roducts a)d co)tributi)- to relie+ a)d rehabilitatio) (easures i) cash a)d :i)d9

#)

I)dia)Oil has also set u* the I)dia)Oil #ou)datio) !IO#" as a )o)B*ro+it trust to *rotect3 *reser5e a)d *ro(ote )atio)al herita-e (o)u(e)ts9 As *art o+ its e)5iro)(e)tB*rotectio) i)itiati5es3 I)dia)Oil has i)5ested close to Rs9 73000 crore i) stateBo+BtheBart tech)olo-ies at its re+i)eries +or *roductio) o+ -ree) +uels (eeti)-lobal sta)dards9 Dith sa+ety3 health a)d e)5iro)(e)t *rotectio) hi-h o) its cor*orate a-e)da3 I)dia)Oil is co((itted to co)ducti)- busi)ess 7ith a stro)- e)5iro)(e)t co)scie)ce3 so as to e)sure sustai)able de5elo*(e)t3 sa+e 7or: *laces a)d e)rich(e)t o+ the ,uality o+ li+e o+ its e(*loyees3 custo(ers a)d the co((u)ity9 I)dia)Oil is also co((itted to the .lobal Co(*act Pro-ra((e o+ the &)ited Natio)s a)d e)dea5ours to abide by the 10 *ri)ci*les o+ the *ro-ra((e3 so(e o+ 7hich are already *art o+ the Cor*oratio)Ns 1isio) a)d <issio) state(e)ts9 It is the +ir( resol5es o+ I)dia)Oil*eo*le to (o5e beyo)d busi)ess3 touch e5ery heart a)d +uel a billio) drea(s9

3#);a# C)+7a-$ Ini$ia$i'&

I)dia) OilNs *rese)t busi)ess *ractices a)d 5isio) +or the +uture are sy)er-i6ed 7ith sustai)ability9 De ta:e *ride that our cor*orate strate-y is ali-)ed to )atio)al *riorities a)d e)5isio) a -reater societal role i) +uture to acco(*lish the cherished -oal o+ a truly de5elo*ed I)dia3 7here all sectio)s o+ citi6e)s li5e 7ith di-)ity9 he *ast year 7as de+i)itely a)other year o+ sustai)ed -ro7th i) the +ace o+ stu*e)dous odds +or us at I)dia) Oil9 I) the bac:dro* o+ u)*recede)ted hi-h crude oil *rices a)d li,uidity co)strai)ts3 7e (a)a-ed our o*eratio)s a)d +i)a)cials e++icie)tly9 As I)diaLs lar-est *etroleu( re+i)i)- a)d (ar:eti)- co(*a)y3 7e bear the bru)t o+ the burde) o+ oil subsidy o) sale o+ *etrol3 Diesel3 Ierose)e +or *ublic distributio) syste( a)d LP. +or do(estic use3 7hich co)stitute a (a=or *ortio) o+ our *roduct o++eri)-s9 he .o5er)(e)t3 i) tur)3 has *ut i) *lace a (echa)is( to co(*e)sate the oil (ar:eti)- co(*a)ies +or the losses su++ered by the(9 I)dia) Oil Cor*oratio) Li(ited is co((itted to the .lobal Co(*act Pro-ra((e o+ the &)ited Natio)s a)d 7ill e)dea5our to abide by all the te) *ri)ci*les o+ the *ro-ra((e3 so(e o+ 7hich are also a *art o+ our 1isio) a)d <issio) /tate(e)ts9 here+ore3 the co(*a)y co)ti)ues to *led-e su**ort to the *ro-ra((e throu-h its *olicies3 *rocesses3 *roducts3 ser5ices a)d *eo*le9 I) order to (easure a)d co((u)icate our *ro-ress i) our =our)ey to7ards sustai)able de5elo*(e)t3 7e ha5e decided to *ublish the third editio) o+ our /ustai)ability Re*ort +or 2007B08 i) accorda)ce 7ith the .RIB.> -uideli)es +or the +irst ti(e a)d ha5e ai(ed at a**licatio) le5el A9 De *ro*ose to build o) this +irst re*ort i) +uture throu-h a (ore +or(al (ateriality assess(e)t *rocess 7here decisio)s o) cor*orate res*o)sibilities a)d *riorities
#*

7ill i)clude i)*uts +ro( other sta:eholders3 such as shareholders3 e(*loyees etc9

In%ianOi# a%)7$" In$&g8i$ Pa-$

I)dia) Oil has e)tered i)to a <e(ora)du( o+ &)dersta)di)- !<o&" 7ith ra)s*are)cy I)ter)atio)al I)dia ! II" i) %a)uary 20083 +or i(*le(e)ti)- a) I)te-rity Pact Pro-ra((e +ocussed o) e)ha)ci)- tra)s*are)cy i) its busi)ess tra)sactio)s3 co)tracts a)d *rocure(e)t *rocesses9 I)dia) Oil belie5es i) total tra)s*are)cy3 i)te-rity a)d accou)tability i) its +u)ctio)i)-9 It 5alues its busi)ess relatio)shi*s 7ith its )u(erous do(estic a)d i)ter)atio)al co)tractors a)d 5e)dors o+ -oods a)d ser5ices a)d is co((itted to deali)7ith the( i) a +air a)d tra)s*are)t (a))er by (ai)tai)i)- the hi-hest ethical sta)dards i) its tra)sactio)s 7ith the(9 he <o& 7as si-)ed by <r9 /artha: Eehuria3 Chair(a)3 I)dia) Oil3 a)d Ad(iral !Retd9" R 0 ahilia)i3 +or(er Chie+ o+ Na5al /ta++ a)d Chair(a) o+ II9 &)der the <o&3 I)dia) Oil is co((itted to i(*le(e)ti)- the I)te-rity Pact i) all its (a=or *rocure(e)t a)d 7or: co)tract acti5ities9 #our I)de*e)de)t $4ter)al <o)itors )o(i)ated by II i) co)sultatio) 7ith the Ce)tral 1i-ila)ce Co((issio) !C1C" shall (o)itor the acti5ities9 he I)te-rity Pact 7ould stre)-the) established syste(s a)d *rocedures by creati)- trust a)d 7ould ha5e the +ull su**ort o+ the Ce)tral 1i-ila)ce Co((issio)9 ra)s*are)cy I)ter)atio)al I)dia3 lau)ched i) 19973 is the I)dia) Cha*ter o+ Eerli)Bbased ra)s*are)cy I)ter)atio)al3 7hich has *rese)ce i) 9> cou)tries9 he I)te-rity Pact Pro-ra((e 7as lau)ched i) the (idB90s by I to create Lisla)ds o+ I)te-rityL throu-h a 5olu)tary co)tract bet7ee) the buyer a)d the seller to eli(i)ate u)+air *ractices9 It establishes (utual co)tractual ri-hts a)d obli-atio)s a)d bri)-s tra)s*are)cy a)d e)ha)ces the credibility o+ the or-a)i6atio)s9 Di"$in-$i)n" I)dia)Oil No91 i) ED A00 Ra):i)I)dia)Oil leads I)dia I)c9 i) #ortu)eLs L.lobal A00L listi)- +or 2009 Da$& 2791092009 1090792009

I)dia)Oil Q the o)ly P/& a(o)- I)diaNs 2A 1@90?92009 best e(*loyers I)dia)Oil +ro)tru))er i) Oil G .as cate-ory >190>92009 i) ,E-.// listi)- o+ I)diaLs to* cor*orates I)dia)Oil to*s Eusi)ess /ta)dardNs LE/ 1000L a-ai) 1>90>92009

I)dia)Oil a(o)- I)diaLs L o* 10L i) Eusi)ess 1991292008 I)diaLs /u*er 100 Listi)La):a IOC ra):ed No9 1 Co(*a)y i) /ri La):a I)dia)Oil to*s Eusi)ess7orldLs PED Real 1291292008

I)dia)Oil to*s L$ A00L ra):i)-s o)ce a-ai) 2191092008 2091092008

#+

A00N ra):i)-s a-ai) I)dia)Oil third (ost 5aluable !co(*a)y" bra)d i) I)dia; $ Bbra)d +i)a)ce sur5ey I)dia)Oil leads I)dia I)c9 i) #ortu)eLs L.lobal A00L listi)- +or 2008 L he <ost rusted Era)dL i) $ Ls Era)d $,uity a))ual sur5eyB2008 I)dia)Oil the L o* Oil G .as Co(*a)yL i) #i)a)cial $4*ressLs L#$ A00L listi)I)dia)Oil o*s Eusi)ess /ta)dardLs LE/ 1000L listi)L o* e)L i) Eusi)ess I)diaLs /u*er 100 Listi)I)dia)Oil a(o)- I)diaLs L o* 1aluable Co(*a)ies i) E A00 Listi)-L I)dia)Oil ra):ed 2)d a(o)-st I)diaNs o* A0 <ost 1aluable Era)ds I)dia)Oil -ets a to* slot i) $ A00 listi)0290992008 1190792008 1290@92008 2>90A92008 1A90292008 1>91292007 >091192007 >190792007 2290>92007

I)dia)Oil to*s LE/ 1000L co(*a)ies i) /ales 0>90192007 a-ai)

J)in$ >&n$(8&"
Name of JV
Avi-Oil India Limited

Date of Promoters & Equity Incorporation

04.11.1993

Area(s) of Operation

IndianOil & Balmer Lawrie: 25% $% &lend" man'(act're and each #ell #)nthetic" #emi eden B!" etherland#: 50% #)nthetic and mineral &a#ed l'&ricatin* %il#" *rea#e# and h)dra'lic (l'id#" related +r%d'ct# and #+ecialitie# (%r ,e(ence and -ivil Aviati%n '#e#. IndianOil & Oiltan2in* 6m&7" 6erman): 50% each $% &'ild and %+erate terminallin* #ervice# (%r +etr%le'm +r%d'ct#.

IO$ In(ra#tr'ct're & .ner*) /ervice# Ltd. 01%rmerl) 2n%wn a# Indian Oiltan2in* Limited3 IndianOil 8etr%na# 8rivate Limited

24.04.1995

03.12.1994

IndianOil & 8etr%na#" 9ala)#ia: 50% each

$% c%n#tr'ct and im+%rt (acilitie# (%r L86 im+%rt at 7aldia and t% en*a*e in +arallel mar2etin* %( L86. $% man'(act're and mar2et chemical# (%r '#e a# additive# in ('el#" l'&ricant# and *rea#e#.

L'&ri:%l India 8rivate Limited

01.04.2000

IndianOil & L'&ri:%l" ;/A: 50% each

#,

8etr%net L 6 Limited 02.04.1994

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,evel%+ment %( (acilitie# (%r im+%rt and re*a#i(icati%n %( L 6 at ,ahe< and =%chi.

8etr%net India Limited 25.05.199>

$% im+lement +etr%le'm +r%d'ct#" +i+eline +r%<ect# thr%'*h /+ecial 8'r+%#e !ehicle#. $% c%n#tr'ct and %+erate a +i+eline (%r tran#+%rtati%n %( +etr%le'm +r%d'ct# (r%m !adinar t% =andla. $% c%n#tr'ct and %+erate a +i+eline (%r evac'ati%n %( +etr%le'm +r%d'ct# (r%m ?8L and .OL re(inerie# at @amna*ar a# well a# (r%m 6'<arat ?e(iner) at =%)ali t% (eed the c%n#'m+ti%n :%ne# at -entral India. -it) 6a# ,i#tri&'ti%n in L'c2n%w and A*ra. 9an'(act'rin* & mar2etin* %( 1-- catal)#t# and additive#. ,e#i*n" (inance" c%n#tr'ct" %+erate & maintain aviati%n ('el (acilit) +r%<ect#. $% &'ild and %+erate it# %wn +%wer *enerati%n +lant at 8ani+at 'tili#in* +etc%2e (r%m 8ani+at ?e(iner). Inve#tment# in %il and *a# ind'#tr) e#+eciall) in the '+#tream #ect%r 1armin*" c'ltivatin*" man'(act'rin*" +r%d'cti%n and #ellin* &i%ma##" &i%('el# and allied +r%d'ct# & #ervice#

8etr%net != Limited

21.05.1994

8etr%net -I Limited

0>.12.2000

6reen 6a# Ltd.

0>.10.2005

IndianOil & 6AIL: 25% I,1-& IL&1/: 20% each Other#: 10% IndianOil & Intercat" ;/A: 50%

Ind% -at 8vt. Limited

01.05.2005

IndianOil /2) $an2in* 21.04.2005 Limited IndianOil 8%wer -%n#%rti'm Limited 05.10.1999

IndianOil" IO$L & /2)tan2in* 6m&7" 6erman): 33.33% each IndianOil & 9ar'&eni -%r+%rati%n" @a+an:50% each

/'ntera i*eria 205 Limited IndianOil--?.,A Bi%('el# Limited

09.05.2005

IndianOil & Oil India: 25% each /'ntera ?e#%'rce# Ltd." -)+r'#: 50% IndianOil: >4% -?.,A: 25%

05.02.2009

$-

In%ian Oi# Ma?)8 Uni$"

Registered Office ?e*i#tered O((ice IndianOil 6-9" Ali Aavar @'n* Bandra 0.a#t3" 9'm&ai -400 051 Bhavan" 9ar*"

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Bara'ni ?e(iner) 6'<arat ?e(iner) 6'wahati ?e(iner) 7aldia ?e(iner)

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9ath'ra ?e(iner)

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.a#tern ?e*i%n

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B'#ine## 6r%'+0-r)%*enic#3" A-4" 9I,-" Am&ad" a#hi2 - 422 010 &roup ompanies -hennai 8etr%le'm -%r+%rati%n Ltd. IndianOil $echn%l%*ie# Ltd 535" Anna $e)nam+et" -hennai - 500 014 /-O8. -%m+leB" >" In#tit'ti%nal L%dhi ew ,elhi-110003 9er 8%rt 9ar'riti'# L%'i# Ali 1ree D%ne" /alai" -%re-2 Area" ?%ad" ?%'*e

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IO- 9iddle .a#t 1D. Lan2a IO- 8L-

LOB 14209" @e&el 8.O.B%B: 251334

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O4JECTI>ES
o ser5e the )atio)al i)terests i) oil a)d related sectors i) accorda)ce a)d co)siste)t 7ith .o5er)(e)t *olicies9 o e)sure (ai)te)a)ce o+ co)ti)uous a)d s(ooth su**lies o+ *etroleu( *roducts by 7ay o+ crude oil re+i)i)-3 tra)s*ortatio) a)d (ar:eti)- acti5ities a)d to *ro5ide a**ro*riate assista)ce to co)su(ers to co)ser5e a)d use *etroleu( *roducts e++icie)tly9 o e)ha)ce the cou)tryLs sel+Bsu++icie)cy i) crude oil re+i)i)- a)d build e4*ertise i) layi)- o+ crude oil a)d *etroleu( *roduct *i*eli)es9 o +urther e)ha)ce (ar:eti)- i)+rastructure a)d reseller )et7or: +or *ro5idi)$%

assured ser5ice to custo(ers throu-hout the cou)try9 o create a stro)- research G de5elo*(e)t base i) re+i)ery *rocesses3 *roduct +or(ulatio)s3 *i*eli)e tra)s*ortatio) a)d alter)ati5e +uels 7ith a 5ie7 to (i)i(i6i)-8eli(i)ati)- i(*orts a)d to ha5e )e4t -e)eratio) *roducts9 o o*ti(ise utilisatio) o+ re+i)i)- ca*acity a)d (a4i(i6e distillate yield a)d -ross re+i)i)- (ar-i)9 o (a4i(ise utilisatio) o+ the e4isti)- +acilities +or i(*ro5i)- e++icie)cy a)d i)creasi)- *roducti5ity9 o (i)i(ise +uel co)su(*tio) a)d hydrocarbo) loss i) re+i)eries a)d stoc: loss i) (ar:eti)- o*eratio)s to e++ect e)er-y co)ser5atio)9 o ear) a reaso)able rate o+ retur) o) i)5est(e)t9 o a5ail o+ all 5iable o**ortu)ities3 both )atio)al a)d -lobal3 arisi)- out o+ the .o5er)(e)t o+ I)diaNs *olicy o+ liberalisatio) a)d re+or(s9 o achie5e hi-her -ro7th throu-h (er-ers3 ac,uisitio)s3 i)te-ratio) a)d di5ersi+icatio) by har)essi)- )e7 busi)ess o**ortu)ities i) oil e4*loratio) G *roductio)3 *etroche(icals3 )atural -as a)d do7)strea( o**ortu)ities o5erseas9 o i)culcate stro)- Pcore 5aluesN a(o)- the e(*loyees a)d co)ti)uously u*date s:ill sets +or +ull e4*loitatio) o+ the )e7 busi)ess o**ortu)ities9

o de5elo* o*eratio)al sy)er-ies 7ith subsidiaries a)d =oi)t 5e)tures a)d co)ti)uously e)-a-e across the hydrocarbo) 5alue chai) +or the be)e+it o+ society at lar-e9 Finan-ia# O;?&-$i'&";

o e)sure ade,uate retur) o) the ca*ital e(*loyed a)d (ai)tai) a reaso)able a))ual di5ide)d o) e,uity ca*ital9 o e)sure (a4i(u( eco)o(y i) e4*e)diture9 o (a)a-e a)d o*erate all +acilities i) a) e++icie)t (a))er so as to -e)erate ade,uate i)ter)al resources to (eet re5e)ue cost a)d re,uire(e)ts +or *ro=ect i)5est(e)t3 7ithout bud-etary su**ort9 o de5elo* lo)-Bter( cor*orate *la)s to *ro5ide +or ade,uate -ro7th o+ the Cor*oratio)Ns busi)ess9 o reduce the cost o+ *roductio) o+ *etroleu( *roducts by (ea)s o+ syste(atic cost co)trol (easures a)d thereby sustai) (ar:et leadershi* throu-h cost co(*etiti5e)ess9 o co(*lete all *la))ed *ro=ects 7ithi) the scheduled ti(e a)d a**ro5ed cost9

O;#iga$i)n"
$&

o7ards custo(ers a)d dealers;B o *ro5ide *ro(*t3 courteous a)d e++icie)t ser5ice a)d ,uality *roducts at co(*etiti5e *rices9 o7ards su**liers;B o e)sure *ro(*t deali)-s 7ith i)te-rity3 i(*artiality a)d courtesy a)d hel* *ro(ote a)cillary i)dustries9 o7ards e(*loyees;B o de5elo* their ca*abilities a)d +acilitate their ad5a)ce(e)t throu-h a**ro*riate trai)i)- a)d career *la))i)-9 o ha5e +air deali)-s 7ith reco-)ised re*rese)tati5es o+ e(*loyees i) *ursua)ce o+ healthy i)dustrial relatio)s *ractices a)d sou)d *erso))el *olicies9 o7ards co((u)ity; B o de5elo* tech)oBeco)o(ically 5iable a)d e)5iro)(e)tB +rie)dly *roducts9 o (ai)tai) the hi-hest sta)dards i) res*ect o+ sa+ety3 e)5iro)(e)t *rotectio) a)d occu*atio)al health at all *roductio) u)its9 o7ards De+e)ce /er5ices;B o (ai)tai) ade,uate su**lies to De+e)ce a)d other *araB(ilitary ser5ices duri)- )or(al as 7ell as e(er-e)cy situatio)s9

4(8g&)ning IOC (In%ian Oi# C)87)8a$i)n) As a leadi)- *ublic sector e)ter*rise o+ I)dia3 I)dia) Oil has success+ully co(bi)ed its cor*orate social res*o)sibility a-e)da 7ith its busi)ess o++eri)-s3 (eeti)- the e)er-y )eeds o+ (illio)s o+ *eo*le e5eryday across the le)-th a)d breadth o+ the cou)try3 tra5ersi)- a di5ersity o+ cultures3 di++icult terrai)s a)d harsh cli(atic co)ditio)s9 he Cor*oratio) ta:es *ride i) its co)ti)uous i)5est(e)ts i) i))o5ati5e tech)olo-ies a)d solutio)s +or sustai)able e)er-y +lo7 a)d eco)o(ic -ro7th a)d i) de5elo*i)- tech)oB eco)o(ically 5iable a)d e)5iro)(e)tB+rie)dly *roducts G ser5ices +or the be)e+it o+ its co)su(ers9

2i%&ning =)8i@)n" o achie5e the )e4t le5el o+ -ro7th3 I)dia) Oil is curre)tly +or-i)- ahead o) a 7ell laidB out road (a* throu-h 5ertical i)te-ratio)Q u*strea( i)to oil e4*loratio) G *roductio) !$GP" a)d do7)strea( i)to *etroche(icals J a)d di5ersi+icatio) i)to )atural -as (ar:eti)-3 bio +uels3 7i)d *o7er *ro=ects3 besides -lobalisatio) o+ its do7)strea( o*eratio)s9

EA7an%ing =)8i@)n"

$(

I)dia)Oil is curre)tly (eta(or*hosi)- +ro( a *ure sectoral co(*a)y 7ith do(i)a)ce i) do7)strea( i) I)dia to a 5ertically i)te-rated3 tra)s)atio)al e)er-y behe(oth9 he Cor*oratio) is already o) the 7ay to beco(i)- a (a=or *layer i) *etroche(icals by i)te-rati)- its core re+i)i)- busi)ess 7ith *etroche(ical acti5ities3 besides (a:i)- lar-e i)5est(e)ts i) $GP a)d i(*ort8(ar:eti)- 5e)tures +or oilG-as i) I)dia a)d abroad9 Dith a 5isio) to e5ol5e i)to a (a=or tech)olo-y *ro5ider throu-h e4celle)ce i) (a)a-e(e)t o+ :)o7led-e a)d i))o5atio)3 I)dia)Oil has lau)ched I)dia)Oil ech)olo-y Ltd9 to (ar:et the i)tellectual *ro*erties de5elo*ed by I)dia)OilLs RGD Ce)tre9 P&$8)-.&+i-a#" I) *etroche(icals3 I)dia) Oil is e)5isa-i)- a) i)5est(e)t o+ Rs9 203000 crore !&/O ? billio)" by the year 2011B129 hrou-h the 7orldNs lar-est si)-leBtrai) Li)ear Al:yl Ee)6e)e !LAE" *la)t 7ith a) a))ual ca*acity o+ 13203 000 to))es set u* at its .u=arat Re+i)ery3 the Cor*oratio) has already ca*tured a si-)i+ica)t (ar:et share o+ LAE i) I)dia3 besides e4*orti)- the *roduct to I)do)esia3 ur:ey3 haila)d3 1iet)a(3 Nor7ay a)d O(a)9

Oi# EA7#)8a$i)n , P8)%(-$i)n I) $GP3 I)dia) Oil has )o)Bo*erator *artici*ati)- i)terest i) se5e) oil G -as bloc:s a7arded u)der 5arious N$LP !Ne7 $4*loratio) Lice)si)- Policy" rou)ds a)d t7o Coal Eed <etha)e bloc:s i) I)dia3 i) co)sortiu( 7ith other co(*a)ies9 I) additio)3 I)dia)Oil has t7o o)shore ty*e P/N N$LP bloc:s3 7ith 100M *artici*ati)- i)terest !PI" a)d sole o*eratorshi*9 It also has *artici*ati)- i)terest i) a) o)shore bloc: i) Assa( a)d Aru)achal Pradesh throu-h a +ar(Bi)9

3a" I) )atural -as busi)ess3 I)dia) Oil sold 198?9 (illio) to))es o+ the *roduct i) 2008B099 A tech)olo-y i))o5atio) has bee) i)itiated to reach LN. !Li,ue+ied Natural .as" directly to the doorste* o+ bul: co)su(ers i) cryo-e)ic co)tai)ers +or i)dustrial as 7ell as ca*ti5e *o7er a**licatio)s9 o co)solidate its city -as distributio) !C.D" busi)ess3 I)dia) Oil has tied u* 7ith se5eral *layers such as Ada)i $)er-y3 Relia)ce .as Cor*oratio)3 OIL a)d ON.C3 etc93 to set u* =oi)t 5e)tures i) 5arious cities o+ I)dia9 he Cor*oratio) has also e)tered i)to +ra)chise a-ree(e)ts 7ith C.D *layers such as I)dra*rastha .as Ltd93 <aha)a-ar .as Ltd93 Ada)i $)er-y Li(ited3 .$$CL3 /I I $)er-y a)d ./PC .as Ltd9 to (ar:et CN. throu-h its retail outlets 4i)/*(&#" o straddle the co(*lete bioB+uel 5alue chai)3 I)dia) Oil +or(ed a =oi)t 5e)ture 7ith the
$)

Chhattis-arh Re)e7able De5elo*(e)t Authority !CR$DA" 7ith a) e,uity holdi)- o+ 7?M a)d 2@M res*ecti5ely9 I)dia) Oil CR$DA Eio+uels Ltd9 has bee) +or(ed +or carryi)- out +ar(i)-3 culti5ati)-3 (a)u+acturi)-3 *roductio) a)d sale o+ bio(ass3 bioB +uels a)d allied *roducts a)d ser5ices9 I)dia) Oil has si-)ed a) <o& 7ith <8s Ruchi /oya I)dustries Ltd9 to ta:e u* co)tract +ar(i)- o) o)e la:h hectare o+ *ri5ate a)d *a)chayat 7astela)d i) the state o+ &ttar Pradesh9

Other tha) the re-ular *etroleu( *roducts li:e li-ht distillates3 (iddle distillates3 hea5ier *roducts li:e #ur)ace Oil3 Eitu(e)3 etc93 I)dia)Oil re+i)eries also (a)u+acture *etroleu( *roducts +or s*eci+ic a**licatio)s9 hese s*eci+ic a**licatio)s could be +eed stoc: +or che(ical i)dustry3 ra7 (aterial +or s*eci+ic i)dustries a)d solid +uels9 he *etroleu( *roducts3 *roduced +or s*eci+ic a**licatio)s are called3 LPetroche(icals a)d /*ecialties !PG/" ProductsL9 $5ery *etroleu( re+i)ery is )ot desi-)ed to *roduce PG/ *roducts but I)dia)OilLs re+i)eries ha5e bee) *la))ed to (a:e a lar-e *ort+olio o+ PG/ *roducts9 he i)dicati5e list o+ *roducts +ro( I)dia)OilLs 5arious re+i)eries is as +ollo7s; R&*in&8 Earau)i Di-boi .u7ahati P,S P8)%(-$" Carbo) Elac: #eedstoc: !CE#/"3 Ra7 Petroleu( Co:e !RPC"3 /ul*hur Para++i) Da4 Ra7 Petroleu( Co:e !RPC" CE#/3 %ute Eatchi)- Oil !%EO"3 <icro Crystalli)e Da4 !<CD"3 <i)eral 0aldia ur*e)ti)e Oil !< O"3 /ul*hur Ioyali LAE#/3 <i)eral ur*e)ti)e Oil !< O"3 /ul*hur3 olue)e <athura Pro*yle)e3 /ul*hur Pa)i*at Ee)6e)e3 <i)eral ur*e)ti)e Oil !< O"3 Petco:e3 /ul*hur 4a"i- &n% ("&": Ee)6e)e; Che(ical i)dustry CE#/; Carbo) blac: (a)u+acturers %EO; %ute i)dustry LAE#/; LAE (a)u+acturers <icro Crystalli)e Da4 !<CD"; Phar(aceutical i)dustry < O; Pai)t i)dustry Para++i) 7a4; Ca)dle (a)u+actures Petco:e; Ce(e)t i)dustry
$*

Pro*yle)e; Che(ical i)dustry RPC; CPC (a)u+acturers /ul*hur; /ul*huric Acid (a)u+acturers a)d su-ar i)dustry olue)e; $4*losi5es (a)u+acturers

SER>ICES
R&*ining
Eor) +ro( the 5isio) o+ achie5i)- sel+Brelia)ce i) oil re+i)i)- a)d (ar:eti)- +or the )atio)3 I)dia)Oil has -athered a lu(i)ous le-acy o+ (ore tha) 100 years o+ accu(ulated e4*erie)ces i) all areas o+ *etroleu( re+i)i)- by ta:i)- i)to its +old3 the Di-boi Re+i)ery co((issio)ed i) 19019 At *rese)t3 I)dia)Oil co)trols 10 o+ I)diaNs 20 re+i)eries9 he stre)-th o+ I)dia)Oil s*ri)-s +ro( its e4*erie)ce o+ o*erati)- the lar-est )u(ber o+ re+i)eries i) I)dia a)d ada*ti)- to a 5ariety o+ re+i)i)- *rocesses alo)- the 7ay9 0a5i)- absorbed stateBo+BtheBart tech)olo-ies o+ leadi)- *rocess lice)sors li:e &OP3 Che5ro)3 I#P3 /to)e G Debster3 <obil3 0aldor o*soe3 I I8 ech)i*3 Li)de3 CDB ech3 /tor: Co(*ri(o3 etc93 I)dia)Oil i) a) e4celle)t *ositio) to o++er OG< ser5ices +or latest tech)olo-ies such as distillate #CC&s3 Resid #CC&s3 hydrocrac:ers3 re+or(ers !both se(iBre-e)erati5e a)d co)ti)uous catalytic re-e)eratio) ty*es"3 lube *rocessi)u)its3 catalytic deB7a4i)- u)its3 co:ers3 co:e calci)ers3 5isbrea:ers3 (ero43 hydroB treaters +or :ero a)d -asoil strea(s3 etc9 I)dia)Oil re+i)eries also ha5e u)its +or *roduci)- s*ecialty *roducts such as bitu(e)3 LP.3 < E$3 Eute)eB13 Pro*yle)e3 Hyle)es3 DiB<ethyl ere*hthalate !D< "3 *olyester sta*le +ibre !P/#" a)d other *etroche(icals li:e Li)ear Al:yl Ee)6e)e3 Para4yle)e !PH"3 Puri+ied ere*thalic Acid !P A"3 etc9 he Cor*oratio) has co((issio)ed se5eral -rassroot re+i)eries a)d (oder) *rocess u)its9 Procedures +or co((issio)i)- a)d startBu* o+ i)di5idual u)its a)d the re+i)ery ha5e bee) 7ell laidBout a)d e)shri)ed i) 5arious custo(ised o*erati)- (a)uals3 7hich are co)ti)ually u*dated9 I)dia)Oil also o++ers the s*ecialised ser5ices o+ its e4*erts +or co((issio)i)-8startBu* assista)ce de*e)di)- o) the clie)tNs )eed9 Its tea( is also 7ellB e,ui**ed to *re*are o*eratio) (a)uals 7ith clear i)structio)s +or *la)t startBu*3 o*eratio)3 shutdo7)3 e(er-e)cy ha)dli)-3 etc9 O) the e)5iro)(e)t +ro)t3 all I)dia)Oil re+i)eries +ully co(*ly 7ith the statutory re,uire(e)ts9 /e5eral Clea) De5elo*(e)t <echa)is( *ro=ects ha5e also bee) i)itiated9 Dith its 5ast e4*erie)ce i) success+ully i(*le(e)ti)- /0G$ *olicy a)d *ractices at
$+

5arious u)its3 I)dia)Oil o++ers its ser5ices i) e)suri)- that the clie)tsN 7or: e)5iro)(e)t is sa+e3 healthy a)d clea)9 I)dia)Oil also o++ers +aculty assista)ce +or PtailorB(adeN trai)i)- *ro-ra((es that suit the re,uire(e)t o+ re+i)ery or *i*eli)es *erso))el or a selectio) o+ *ro-ra((es +ro( the clie)tsN trai)i)- cale)dar9 I))o5ati5e strate-ies a)d :)o7led-eBshari)- are the tools a5ailable +or co)5erti)challe)-es i)to o**ortu)ities +or sustai)ed or-a)isatio)al -ro7th9 I)dia)OilNs Re+i)eries tea( ha5e a dee* u)dersta)di)- o+ the co(*le4ities o+ all the *rocess u)its o+ (oder) re+i)eries a)d ca) o++er co(*rehe)si5e ser5ices o+ a hi-hly *ro+essio)al )ature o) di++ere)t +acets -i5e) i) details i) this se-(e)t9 Dith strate-ies a)d *la)s +or se5eral 5alueBadded *ro=ects i) *lace3 I)dia)Oil re+i)eries 7ill co)ti)ue to *lay a leadi)- role i) the do7)strea( hydrocarbo) sector +or (eeti)the risi)- e)er-y )eeds o+ our cou)try9

R&"&a8-. , D&'&#)7+&n$
I)dia)OilLs 7orldclass RGD Ce)tre3 established i) 19723 has stateBo+ Jthe art +acilities a)d has deli5ered *io)eeri)- results i) lubrica)ts tech)olo-y3 re+i)i)- *rocess3 *i*eli)e tra)s*ortatio)3 bioB+uels a)d +uelBe++icie)t a**lia)ces9 O5er the *ast three decades3 I)dia)Oil RGD Ce)tre has de5elo*ed o5er thousa)ds o+ +or(ulatio)s o+ lubricati)- oils a)d -reases res*o)di)- to the )eeds o+ I)dia) i)dustry a)d co)su(i)- sectors li:e De+e)ce3 Rail7ays3 Public &tilities a)d ra)s*ortatio)9 he Ce)tre has also de5elo*ed a)d i)troduced (a)y )e7 lubrica)t *roducts to the I)dia) (ar:et li:e (ulti-rade railroad oils9 #ocussed research i) the areas o+ lubrica)ts a)d -rease +or(ulatio)s3 +uels3 re+i)i)- *rocesses3 biotech)olo-y3 additi5es3 *i*eli)e tra)s*ortatio)s3 e)-i)e e5aluatio)3 tribiolo-ical a)d e(issio) studies3 a)d a**lied (etallur-y has 7o) se5eral a7ards9 he RGD Ce)treLs acti5ities i) re+i)i)- tech)olo-y are tar-eted i) the areas o+ +luid catalytic crac:i)- !#CC"3 hydro*rocessi)-3 catalysis3 resid u*-radatio)3 distillatio) si(ulatio) a)d (odeli)-3 lube *rocessi)-3 crude e5aluatio)3 *rocess o*ti(i6atio)3 (aterial +ailure a)alysis a)d re(ai)i)- li+e assess(e)t a)d tech)ical ser5ices to o*erati)- u)its9 I) #CC3 a*art +ro( *rocess o*ti(i6atio) a)d catalyst e5aluatio) the acce)t is o) the de5elo*(e)t o+ )o5el tech)olo-ies ai(ed at 5alue additio) to 5arious re+i)ery strea(s9 I)dia)OilLs RGD Ce)tre is +ully e,ui**ed to *ro5ide tech)ical su**ort to co((ercial hydrocrac:er u)its i) the e5aluatio) o+ +eedstoc:s a)d catalysts3 o*ti(i6atio) o+ o*erati)*ara(eters3 e5aluatio) o+ lice)sorsL *rocess tech)olo-ies3 de5elo*(e)t o+ )o5el *rocesses a)d si(ulatio) (odels9 <aterial +ailure a)alysis a)d re(ai)i)- li+e assess(e)t o+ re+i)ery e,ui*(e)t a)d i)stallatio)s
$,

is a hi-hly s*eciali6ed ser5ice bei)- *ro5ided by the RGD Ce)tre to the re+i)eries o+ I)dia)Oil as 7ell as other co(*a)ies9 Dith a 5isio) o+ e5ol5i)- i)to a leader as tech)olo-y *ro5ider throu-h e4celle)ce i) (a)a-e(e)t o+ :)o7led-e3 tech)olo-y a)d i))o5atio)3 I)dia)Oil has lau)ched I)dia)Oil ech)olo-y Ltd9 he )e7 subsidiary (ar:ets the i)tellectual *ro*erties de5elo*ed by I)dia)Oil RGD Ce)tre9 I) a be+itti)- ac:)o7led-e(e)t o+ its e5erBi(*ro5i)- *er+or(a)ce3 a)d a cro7)i)-lory i) its .olde) %ubilee 2ear !19A9B2009"3 I)dia)Oil has (o5ed u* 11 *laces3 i) the =ustBreleased Fortune 'Global 500' li#t %( w%rldF# lar*e#t c%m+anie# &) #ale# (%r the )ear
2009. 8laced at 105" IndianOil lead# the +ac2 %( #even Indian c%m+anie# a++earin* in the li#t that i# &a#ed %n the +er(%rmance in %( the )ear 2004.

I)dia)Oil has bee) co)siste)tly i(*ro5i)- its *ositio) i) the elite list *ublished a))ually by the CNNB i(e Dar)er -rou* (a-a6i)e3 Fortune. In the G6l%&al 500F cl'&" IndianOil
ha# #tead(a#tl) clim&ed (r%m 225 in the )ear 2002 t% 191 in 2003" 149 in 2004 t% 1>0 in 2005" 153 in 2005" 135 in 200>" 115 in 2004 and n%w 105 in 2009.

I)dia)Oil has also (ai)tai)ed its leadershi* status as I)diaLs )u(ero u)o cor*orate i) the *resti-ious listi)-3 +ollo7ed by ata /teel !2A8"3 Relia)ce I)dustries !2@?"3 Eharat Petroleu( !289"3 0i)dusta) Petroleu( !>11"3 /tate Ea): o+ I)dia !>@>" a)d Oil G Natural .as Cor*oratio) !?02"9 Eattli)- odds i) a challe)-i)- busi)ess e)5iro)(e)t3 I)diaLs No91 co((ercial e)ter*rise a)d +la-shi* oil (a=or3 I)dia)Oil )otched u* a)other year o+ sterli)- *er+or(a)ce +or +iscal 2008B20099 I)dia)OilNs -ross tur)o5er !i)clusi5e o+ e4cise duty" +or the year 2008B09 reached a )e7 hi-h o+ Rs9 238A3>>7 crore u* by 1A9>M as co(*ared to Rs9 23?73?A7 crore i) the *re5ious year9 he Pro+it a+ter a4 7as Rs9 239A0 crore9 he Cor*oratio)Ls re+i)eries sur*assed 100M ca*acity utilisatio) a)d cloc:ed the hi-hest e5er throu-h*ut o+ A19? (illio) to))es9 he Cor*oratio) also achie5ed a record sales o+ @29@ (illio) to))es !i)cludi)- 197 (illio) to))es o+ .as"9 Ereachi)- the 103000 :( (ar: i) le)-th3 the *i*eli)es )et7or: re-istered the hi-hestBe5er o*eratio)al throu-h*ut o+ A99A (illio) to))es o+ crude oil a)d *etroleu( *roducts9

C)%& )* -)n%(-$
15 In$8)%(-$i)n his Code o+ Co)duct !herei)a+ter re+erred to as the Code'" shall be called he Code o+ Co)duct +or Eoard <e(bers a)d /e)ior <a)a-e(e)t Perso))el' o+ I)dia) Oil Cor*oratio) Li(ited !herei)a+ter re+erred to as the Co(*a)y'"9 his Code e)5isa-es that the Eoard o+ Directors o+ the Co(*a)y !Eoard'" a)d /e)ior <a)a-e(e)t Perso))el !as herei)a+ter de+i)ed" !collecti5ely re+erred to as O++icers'" (ust act 7ithi) the bou)ds o+ the authority co)+erred u*o) the( a)d 7ith
%-

a duty to co(*ly 7ith the re,uire(e)ts o+ a**licable la79

he *ur*ose o+ this Code is to e)ha)ce ethical a)d tra)s*are)t *rocess i) (a)a-i)the a++airs o+ the Co(*a)y3 a)d thus to sustai) the trust a)d co)+ide)ce re*osed i) the O++icers by the shareholders o+ the Co(*a)y9 O++icers are e4*ected to u)dersta)d3 adhere to3 co(*ly 7ith a)d u*hold the *ro5isio)s o+ this Code a)d the sta)dards laid do7) hereu)der i) their dayBtoBday +u)ctio)i)-9 he *ri)ci*les *rescribed i) this Code are -e)eral i) )ature a)d lay do7) broad sta)dards o+ co(*lia)ce a)d ethics3 as re,uired by Clause ?9 o+ the Listi)A-ree(e)t 7ith he /toc: $4cha)-e o+ <u(bai a)d the Natio)al /toc: $4cha)-e !collecti5ely re+erred to as /toc: $4cha)-es'"9 he O++icers should also re5ie7 other a**licable *olicies a)d *rocedures o+ the Co(*a)y +or s*eci+ic i)structio)s a)d -uideli)es3 7hich are to be read i) co)=u)ctio) 7ith this Code9 he Co(*a)y curre)tly has i) *lace Co)duct3 Disci*li)e G A**eal Rules3 !the CDA Rules'"3 7hich -o5er) the co)duct o+ all e(*loyees o+ the Co(*a)y i)cludi)DholeBti(e Directors but e4cludi)- No) DholeBti(e Directors9 his Code has )o7 bee) +ra(ed s*eci+ically i) co(*lia)ce 7ith the *ro5isio)s o+ Clause ?9 o+ the Listi)A-ree(e)t 7ith the /toc: $4cha)-es9 I) res*ect o+ the Co(*a)yNs DholeBti(e Directors a)d /e)ior <a)a-e(e)t Perso))el this Code is to be read i) co)=u)ctio) 7ith the CDA Rules9 his Code shall co(e i)to +orce 7ith e++ect +ro( the 1st day o+ %a)uary 200@9 All O++icers should si-) the ac:)o7led-(e)t +or( a))e4ed as A**e)di4 I1 hereto a)d retur) the +or( to the Co(*a)y /ecretary i)dicati)- that they ha5e recei5ed3 read3 u)derstood a)d a-ree to co(*ly 7ith the Code9 All O++icers shall be re,uired a++ir( co(*lia)ce 7ith this Code o) a) a))ual basis3 7ithi) >0 days o+ close o+ e5ery +i)a)cial year to the Co(*a)y /ecretary3 i) the +or( a))e4ed hereto as A**e)di4 III9

25 D&*ini$i)n" , In$&878&$a$i)n I) these Code3 u)less re*u-)a)t to the (ea)i)- or co)te4t thereo+3 the +ollo7i)- e4*ressio)s3 7here5er used i) this Code3 shall ha5e the (ea)i)- assi-)ed to the( belo7; KEoardK shall (ea) the board o+ Directors o+ the Co(*a)y9 KEoard <e(bersK shall (ea) the Directors o) the board o+ Directors o+ the Co(*a)y9

KCo(*a)yK shall (ea) the I)dia) Oil Cor*oratio) Li(ited9 K.o5er)(e)tK shall (ea) .o5t9 o+ I)dia9 KO++icersK shall collecti5ely re+er to the Eoard <e(bers a)d the /e)ior <a)a-e(e)t Perso))el KRelati5eK shall ha5e the sa(e (ea)i)- assi-)ed to the ter( i) /ectio)s 2!?1" a)d @ o+ the Co(*a)ies Act3 19A@3 read 7ith /chedule IA o+ the Co(*a)ies Act3 19A@3 a)d as (ore s*eci+ically detailed i) A**e)di4 I9 K/e)ior <a)a-e(e)t Perso))elK shall (ea) *erso))el o+ the Co(*a)y 7ho are (e(bers o+ its core (a)a-e(e)t tea( e4cludi)- the Eoard o+ Directors a)d 7ould co(*rise o+ all (e(bers o+ (a)a-e(e)t o)e le5el belo7 the Dhole i(e Directors3
%#

i)cludi)- head o+ de*art(e)ts directly re*orti)- to Dhole i(e Directors9

KDhole i(e DirectorsK shall (ea) the Eoard <e(bers 7ho are i) the 7holeBti(e e(*loy(e)t o+ the Co(*a)y9 KNo) Dhole i(e DirectorsK shall (ea) the Eoard <e(bers 7ho are *artBti(e Directors a)d )ot i) the 7hole ti(e e(*loy(e)t o+ the Co(*a)y9

I) this Code 7ords i(*orti)- (asculi)e shall i)clude +e(i)i)e a)d 7ords i(*orti)- si)-ular shall i)clude *lural or 5ice 5ersa9 35 A77#i-a;i#i$ his Code shall be a**licable to the +ollo7i)- *erso)s; Eoard <e(bers /e)ior <a)a-e(e)t Perso))el9 45 E$.i-a# C)n%(-$ $5ery O++icer shall act 7ithi) the authority co)+erred u*o) hi( by the Co(*a)y a)d u)der a**licable la73 :ee*i)- the best i)terests o+ the Co(*a)y i) 5ie7 a)d shall; Act 7ith *ro+essio)alis(3 ut(ost care3 s:ill3 dili-e)ce3 ho)esty3 -ood +aith a)d i)te-rity as 7ell as hi-h (oral a)d ethical sta)dardsC #ul+il their +iduciary obli-atio)s 7ithout allo7i)- their i)de*e)de)ce o+ =ud-(e)t to be co(*ro(isedC

Act +airly a)d tra)s*are)tly a)d )ot *artici*ate i) a)y decisio)B(a:i)- *rocess o) a sub=ect (atter i) 7hich a co)+lict o+ i)terest e4ists or is li:ely to e4ist such that a) i)de*e)de)t =ud-(e)t o+ the Co(*a)yNs best i)terest ca))ot be e4ercisedC A5oid co)ducti)- busi)ess 7ith !a" a relati5e or !b" a *ri5ate li(ited co(*a)y i) 7hich he or his relati5e is a (e(ber or a director !c" a *ublic li(ited co(*a)y i) 7hich he or his relati5e holds 2M or (ore shares or 5oti)- ri-ht a)d !d" 7ith a +ir( i) 7hich the relati5e is a *art)er3 e4ce*t 7ith the *rior a**ro5al o+ the EoardC A5oid ha5i)- a)y *erso)al a)d8or +i)a)cial i)terest i) a)y busi)ess deali)-s co)cer)i)- the Co(*a)yC Not e)-a-e i) a)y busi)ess3 relatio)shi* or acti5ity 7ith a)yo)e 7ho is a *arty to a tra)sactio) 7ith the Co(*a)yC A5oid a)y deali)-s 7ith a co)tractor or su**lier that co(*ro(ises the ability to tra)sact busi)ess o) a *ro+essio)al3 i(*artial a)d co(*etiti5e basis or i)+lue)ces decisio)s to be (ade by the Co(*a)yC Not hold a)y *ositio)s or =obs or e)-a-e i) other busi)esses or i)terests that are *re=udicial to the i)terests o+ the Co(*a)yC Not e4*loit +or his o7) *erso)al -ai)3 o**ortu)ities that are disco5ered throu-h use o+ cor*orate *ro*erty3 i)+or(atio) or *ositio)3 u)less the o**ortu)ity is disclosed +ully i) 7riti)- to the Eoard a)d the Eoard decli)es to *ursue such o**ortu)ityC Not see:3 acce*t3 or o++er or (a:e3 directly or i)directly3 a)y -i+ts3 ille-al *ay(e)ts3
%$

re(u)eratio)3 do)atio)s or co(*arable be)e+its 7hich are i)te)ded to or *ercei5ed to obtai) busi)ess or u)co(*etiti5e +a5ours +or the co)duct o+ busi)ess sa5e as other7ise *ro5ided u)der the CDA RulesC

Not co((it a)y o++e)ce i)5ol5i)- (oral tur*itude or a)y act co)trary to la7 or o**osed to *ublic *olicy9

B5 Di"-#)"(8&" Not7ithsta)di)- that a)y i)sta)ces o+ co)+lict o+ i)terest e4ist due to a)y historical reaso)s3 ade,uate a)d +ull disclosure by the i)terested O++icer should be (ade to the Co(*a)y9 It is also i)cu(be)t u*o) e5ery O++icer to (a:e a +ull disclosure o+ a)y i)terest 7hich the O++icer or the O++icerNs i((ediate +a(ily3 7hich 7ould i)clude *are)ts3 s*ouse a)d childre)3 (ay ha5e i) a co(*a)y or +ir( 7hich is a su**lier3 custo(er3 distributor o+ or has other busi)ess deali)-s 7ith the Co(*a)y9 Dith res*ect to related *arty disclosures3 Eoard <e(bers shall (a:e disclosure to the Eoard a)d /e)ior <a)a-e(e)t Perso))el shall (a:e disclosure to the Chair(a) u)der the *ro5isio)s o+ Accou)ti)- /ta)dard 18 a))e4ed hereto as A**e)di4 II9

I+ a) O++icer +ails to (a:e a disclosure as re,uired herei)3 a)d the Co(*a)y o+ its o7) accord beco(es a7are o+ a) i)sta)ce o+ co)+lict o+ i)terest that ou-ht to ha5e bee) disclosed by the O++icer3 the Co(*a)y 7ould ta:e a serious 5ie7 o+ the (atter a)d co)sider suitable disci*li)ary actio) a-ai)st the O++icer9

65 O$.&8 Di8&-$)8".i7" &)less s*eci+ically *er(itted by the Chair(a) o+ the Eoard3 O++icers shall )ot ser5e as director o+ a)y other co(*a)y or as *art)er o+ a +ir( that is e)-a-ed i) a co(*eti)- busi)ess 7ith the Co(*a)y9 his clause is )ot a**licable to No)BDhole i(e Directors9 Dhole i(e Directors shall )ot acce*t a)y a**oi)t(e)t or *ost3 7hether ad5isory or ad(i)istrati5e3 i) a)y +ir( or co(*a)y3 7hether I)dia) or +orei-)3 ha5i)- co(*eti)i)terests 7ith the Co(*a)y 7ithi) t7o years +ro( the date o+ cessatio) o+ Directorshi* o+ the Co(*a)y u)less a**ro5ed by the .o5er)(e)t9 05 In"i%&8 T8a%ing $5ery O++icer shall co(*ly 7ith the Code o+ I)ter)al Procedures a)d Co)duct i) deali)- 7ith the securities o+ the Co(*a)y9 95 P(;#i- R&78&"&n$a$i)n an% C)n*i%&n$ia#i$ )* In*)8+a$i)n he Co(*a)y ho)ours the i)+or(atio) re,uire(e)ts o+ the *ublic a)d its sta:eholders9 I) all its *ublic a**eara)ce 7ith res*ect to disclosi)- i)+or(atio) i) relatio) to the Co(*a)yNs acti5ities to *ublic co)stitue)cies such as the (edia3 the +i)a)cial co((u)ity3 e(*loyees a)d shareholders3 the Co(*a)y shall be re*rese)ted o)ly by s*eci+ically authorised O++icers9 A)y i)+or(atio) co)cer)i)- the Co(*a)yNs busi)ess3 its custo(ers3 su**liers3 etc9 to 7hich the O++icers ha5e access or 7hich is *ossessed by the O++icers3 (ust be co)sidered *ri5ile-ed a)d co)+ide)tial a)d should be held i) co)+ide)ce at all ti(es3 a)d should )ot be disclosed to a)y *erso)3 u)less !i" authorised by the EoardC or !ii" the sa(e is *art o+ the *ublic do(ai) at the ti(e o+ disclosureC or !iii" is re,uired to be
%%

disclosed i) accorda)ce 7ith a**licable la7s9

<5 R&g(#a$)8 C)+7#ian-& $5ery O++icer shall3 i) his busi)ess co)duct3 co(*ly 7ith all a**licable la7s3 rules a)d re-ulatio)s3 both i) letter a)d i) s*irit3 i) all the territories i) 7hich he o*erates9 I+ the ethical a)d *ro+essio)al sta)dards set out i) the a**licable la7s a)d re-ulatio)s are belo7 that o+ the Code3 the) the sta)dards o+ the Code shall *re5ail9 105 =&a#$., Sa*&$ An% En'i8)n+&n$ he Co(*a)y a)d the O++icers shall stri5e to *ro5ide a sa+e a)d healthy 7or:i)e)5iro)(e)t a)d co(*ly3 i) the co)duct o+ its busi)ess a++airs3 7ith all re-ulatio)s re-ardi)the *reser5atio) o+ the e)5iro)(e)t o+ the territory it o*erates i)9 he O++icers shall be co((itted to *re5e)t the 7aste+ul use o+ )atural resources a)d (i)i(i6e a)y ha6ardous i(*act o+ the de5elo*(e)t3 *roductio)3 use a)d dis*osal o+ a)y o+ its *roducts a)d ser5ices o) the ecolo-ical e)5iro)(e)t9 115 P8)$&-$i)n O* A""&$" he O++icers shall )ot (isuse3 +or *erso)al -ai) or other7ise3 the assets o+ the Co(*a)y3 i)cludi)- ta)-ible assets such as e,ui*(e)t a)d (achi)ery3 syste(s3 +acilities3 (aterials3 resources as 7ell as i)ta)-ible assets such as *ro*rietary i)+or(atio)3 relatio)shi*s 7ith custo(ers a)d su**liers3 etc93 a)d shall e(*loy the( +or the *ur*ose o+ co)ducti)- the busi)ess +or 7hich they are duly authorised9 125 A+&n%+&n$" T) T.& C)%& he *ro5isio)s o+ this Code ca) be a(e)ded a)d (odi+ied by the Eoard o+ Directors o+ the Co(*a)y +ro( ti(e to ti(e a)d all such a(e)d(e)ts a)d (odi+icatio)s shall ta:e e++ect +ro( the date stated therei)9 All O++icers shall be duly i)+or(ed o+ such a(e)d(e)ts a)d (odi+icatio)s9 135 P#a-&+&n$ O* T.& C)%& On 2&;"i$& Pursua)t to Clause ?9 o+ the Listi)- A-ree(e)t3 this Code a)d a)y a(e)d(e)ts thereto shall be *osted o) the 7ebsite o+ the Co(*a)y9 145 En*)8-&+&n$ O* C)%& O* C)n%(-$ $ach O++icer shall be accou)table +or +ully co(*lyi)- 7ith this Code9 1B5 C)n"&C(&n-&" O* N)n/C)+7#ian-& O* T.i" C)%& I) case o+ breach o+ this Code by the No) Dhole i(e Directors3 the sa(e shall be co)sidered by the Eoard +or i)itiati)- a**ro*riate actio)3 as dee(ed )ecessary9

%&

I) case o+ breach o+ this Code by the Dhole i(e Directors a)d /e)ior <a)a-e(e)t Perso))el3 the sa(e shall be dealt 7ith i) accorda)ce 7ith the CDA Rules9

CASE STUDD
IOC (Jai7(8) in*&8n)
#or all our lo5e o+ the e)5iro)(e)t 7e i) Delhi a)d else7here decided that this Di7ali should be cal( a)d *ollutio) +ree9 /o there 7ere less crac:ers3 less )oise a)d lesser *ollutio)9 Eut )o7 %ai*ur has u)do)e all the -ood e++orts9 Elac: s(o:e co(i)- out a)d +ire s*readi)- to other )earby u)its a)d ha5i)- clai(ed li5es a)d i)=uri)- so (a)y3 all e++orts ha5e -o)e i) 5ai)9 he IOC oil de*ot is a .o5t o+ I)dia establish(e)t9 Jai7(8, N)' 3 (PTI) he Ra=astha) 0i-h Court as:ed the state -o5er)(e)t to e4*lai) the rescue o*eratio) a)d other (easures3 it had u)derta:e) duri)- the IOC de*ot +ire tra-edy3 7hich clai(ed 12 li5es9 O) a PIL3 a di5isio) be)ch o+ Chie+ %ustice %a-dish Ehalla a)d %ustice <a)ish Eha)dari directed the state also to co(e u* 7ith ste*s it 7ould ta:e to a5ert such (isha*s3 7hich led to loss o+ li+e a)d *ublic *ro*erty9

%(

he court as:ed the ad5ocate -e)eral to +ur)ish it 7ith details o) 5arious ste*s the -o5er)(e)t had ta:e) u* a+ter the i)+er)o by No5e(ber 99 he re*ort should i)clude (easures ta:e) +or the rescue o+ i)=ured duri)- the October 29 +ire3 disburse(e)t o+ co(*e)satio)3 rehabilitatio) o+ the ho(eless *erso)s a)d *re5e)tio) o+ the air *ollutio)9

2.a$ .a% .a77&n&%E

he casualty cou)t i) the %ai*ur i)+er)o has reached 103 si)ce it started o++ o) hursday9 O5er @0 hours a+ter the +ire started at the I)dia) oil de*ot3 it still ra-es o)9 7o (ore bodies 7ere reco5ered o) /u)day9 he +ire is )o7 10B20 +eet B subsidi)- +ro( its earlier hei-ht o+ ?0 (etres B but its heat is s*readi)- hori6o)tally9 he +ire had also s*read to a) ad=ace)t +actory3 but ar(y a)d ci5ilia) authorities (a)a-ed to douse it i) ti(e9 Peo*le 7ithi) a radius o+ > :(s o+ the site ha5e bee) e5acuated9

=)F i$ .a77&n&%E
ON 2<T= OCT @;?A *(3 hursday; A lea:a-e 7as detected i) IOC de*ot i) %ai*ur9 #or )e4t ?0 (i)utes e)-i)eers tried to re*air it9 7;>0 *(3 hursday; he +irst co)tai)ers e4*loded3 causi)- a (ild ,ua:e (easuri)- 29> o) the Richter scale 8;00 *(3 hursday; he +ire beca(e u)co)trollableC ?0B+eet hi-h +la(es i) the )i-ht s:yC buildi)-s 1:( a7ay da(a-ed

%)

9;00 *(3 hursday; $)tire area e5acuatedC hu-e tra++ic =a(s o) %ai*urBIota hi-h7ay3 7hich *asses throu-h /ita*ura 10;>0*(3 hursday; All 11 co)tai)ers e4*loded3 each tur)i)- i)to a) i)+er)o9 11;>0 *(3 hursday; I)te)sity o+ +ire be-a) to dro*9 #la(es 7ere as hi-h as 20 +eet hi-h9 ON 30T= OCT 12;00 a(3 #riday; #ire ra-ed all )i-ht3 the strate-y )o7 7as to let the +uel bur) out9 7;>0 a(3 #riday; #ire e4*erts +ro( <u(bai3 <athura arri5e 8;00 a(3 #riday; #ire i) s(aller co)tai)ers do7) by >0B?0M o+ 7hat it 7as last )i-ht9

M a""&""+&n$ about this case is this that the (a-)itude o+ the %ai*ur I)dia) Oil
de*ot I)+er)o a)d the accide)ts clearly sho7 lac: o+ +ire +i-hti)- arra)-e(e)ts a)d *ro5isio)s e5e) i) such 5a)ta-e *laces li:e a (a=or oil de*ot9 .o5t9 has sha(elessly e4*ressed its hel*less)ess9 he -o5er)(e)t has still )ot lear)t a lesso) e5e) a+ter the -reat Eho*al tra-edy decades a-o9 At such 5a)ta-e *oi)ts 7as it )ot the res*o)sibility o+ the IOCL 8 -o5t9 to ha5e hi-h class +ire +i-hti)- e,ui*(e)ts a)d i)+rastructure to co)trol the +ire i) hours a)d (i)i(ise casualtiesR his a-ai) calls +or a) i)5esti-atio) a)d as usual the cul*rits 7ill -o scot +ree9 O+ course )o7 sac:ed the de*ot chie+3 e5e) as the hu-e +ire still bla6es o) +or Ath day9 A)d the Oil <i)ister 7ill )o7 ha5e a reaso) to =ac: u* the *etrol *rices9 1000 crore o+ *ublic *ro*erty is )ot a =o:e9 he res*o)sibility should be +i4ed a)d heads should roll9 he 7hole (a)a-e(e)t should cha)-e9 It (ust ha5e the builtBi) sa+ety *recautio)s +or ha)dli)- i)+la((able ite(s a)d abo5e all a) e(er-e)cy *re*ared)ess *la) i) case a +ire eru*ts9 he e(er-e)cy *la) (ust ha5e (easures to co)trol the +ire 7ith 7ater a)d +oa( a)d abo5e all e)sure that it does )ot s*read to )earby u)its9 he <i)ister ca(e but his hel*less)ess i) sayi)- that he does )ot :)o7 the reaso) o+ +ire a)d he has )ot see) a +ire li:e this a)d he 7ould allo7 the +uel to bur) till ta):s are e(*ty a)d )ei-hbourhood bur)t to ashes3 is a (atter o+ sha(e9

%*

I+ hel*less)ess is 7hat 7e e4*ect +ro( the <i)ister it is better he resi-)s9 his +ire is clearly due to lac: o+ +ire sa+ety (easures at the de*ot a)d their *eriodic chec:i)-9 hose res*o)sible +or the +ire sa+ety at site (ust be re(o5ed a)d char-ed 7ith )e-li-e)ce9 Dith the a(ou)t o+ (o)ey that IOC has bee) char-i)- its custo(ers there ca))ot be lac: o+ (o)ey +or +ire sa+ety (easures9 his is the result o+ utter )e-li-e)ce o+ the +ire sa+ety authorities9 he .o5er)(e)t o) its *art has bee) ,uic: to co5er u* its +ailure by a))ou)ci)- the co(*e)satio) o+ Rs 10 la:hs +or the dead9 his (ay -i5e so(e relie+ to the +a(ily o+ 5icti(s but u)less root cause is addressed such +ires 7ill ta:e *lace a-ai) a)d else7here i) the cou)try9 De ha5e to -et o5er this habit o+ doi)- the +ire +i-hti)- o*eratio)s a)d co(*e)satio) 7he) the +ire is o)9 A detailed +ire +i-hti)- *la) has to be i) *ositio) at *laces 7hich ha)dle i)+la((able substa)ces9 he +act that this *la) has (iserably +ailed calls +or its thorou-h re5ie79 I) additio) to the loss o+ li5es a)d the +uel3 the e)5iro)(e)tal *ollutio) caused by this +ire has bee) u)*recede)ted9 his +ire 7ill *ass but i((ediate root cause o+ this +ire a)d re5ie7 o+ +ire +i-hti)*re*ared)ess at other sites i) the )atio) is called +or i)cludi)- the sa+ety +ro( sabota-e *oi)t o+ 5ie79

CAUSES
19 29 >9 ?9 A9 @9 79 89 he +ire 7as caused due to the L$AIA.$ o+ *etrol9 Due to the careless)ess o+ the o*erators Due to the i)e++ecti5e)ess o+ the O*erators i) sto**i)- the lea:a-e O*erators did )ot co)5ey the *roble( to their boss Lac: o+ su*er5isory No rescue tea( o) the s*ot Also sho7s the lac: o+ i)s*ectio) by the to* (a)a-e(e)t Due to lac: o+ +ire +i-hti)- arra)-e(e)ts a)d *ro5isio)s e5e) i) such 5a)ta-e *laces li:e a (a=or oil de*ot 99 Lac: o+ res*o)sibility a)d accou)tability 109 Due to Lac: o+ +ire sa+ety (easures at the de*ot a)d their *eriodic chec:i)%+

119 Lac: o+ *ro*er (a)a-e(e)t a)d its 7or:i)-

IMPACT
ON PEOPLE

I)creased i)cide)ce o+ dry s:i)3 asth(a3 su++ocatio)3 irritatio) i) the eye Proble( o+ lu)-s 7hich causes res*iratory *roble(s9 Ca) cause a ca)cer *roble( Ca) also da(a-e the eyes o+ *eo*le It (ai)ly has a )e-ati5e e++ect o) childre) a)d old *eo*le Ca) also be da)-erous +or *re-)a)t 7o(e)

ON RESOURCES
Causes a loss to *ro*erty o+ Rs9 1000 crores !a**ro4" Loss o+ *etrol a)d diesel Loss o+ )atural resources 7hich is already i) shorta-e Dasta-e o+ (o)ey s*e)t o) the security a)d sa+ety o+ these oil de*ots 1ast stretches o+ a-ricultural +ields 10 to 1A :( arou)d the IOC de*ot site ha5e re*orted the *rese)ce o+ blac: +la:es 7hich ca) threate) or e5e) destroy soil +ertility

ON EN>IRONMENT
Produces a bla):et o+ s(o:e o+ 2A0 :(s i) le)-th a)d ?:(s i) 7idth i) the e)5iro)(e)t Ela):et o+ s(o:e co)tai)s a har(+ul -as li:e carbo)3 carbo) dio4ide3 sul*hur3 etc Also causes har( to *la)ts a)d *ollute the at(os*here I)crease the le5el o+ *ollutio) i) the e)5iro)(e)t
%,

Ca) -i5e rise to acid rai) .aseous e(issio)s o+ *olluta)ts such as sul*hur a)d )itric o4ide are a cause +or co)cer) as they ca) directly a++ect *eo*leNs health a)d the at(os*here Reductio) i) o4y-e) le5els i) the e)5iro)(e)t As +ire dies do7)3 e)5iro)(e)tal crisis loo:s lar-e

STEPS TA1EN 4D 3O>ERNMENT

19 <obile tea( o+ doctors ha5e bee) +or(ed to *ro5ide door to door (edical +acilities 29 Area u)der 10 :(s arou)d IOC De*ot 7as cleared by ar(y >9 I+ a)y cou-h or a)y ty*e o+ aller-y i((ediately co)tact to doctor ?9 he &)io) <i)ister a))ou)ced a co(*e)satio) o+ Rs A to 10 la:hs to the 5icti(s a)d their +a(ilies9 A9 Rs9 2 la:h to seriously i)=ured a)d Rs9 1 la:h to those 7ith (i)or i)=uries )' 0i-h court o+ Ra=astha) has as:ed to i),uire i)to the +ire accide)t a)d su--est re(edial (easures to *re5e)t reoccurre)ce'

FINDIN3S
19 1000 crore o+ *ublic *ro*erty3 7hich is )ot a =o:e3 has bee) lost9 29 1> *eo*le lost their li5es a)d i)=ured (ore tha) 1A0 *eo*le >9 A chie+ o+ %ai*ur IOC de*ot has bee) sus*e)ded9 ?9 Ca) -i5e rise to acid rai)9 A9 Nearby i)dustries has bee) e++ected a)d da(a-ed @9 /*read a )u(ber o+ diseases li:e s:i) *roble(3 lu)-s *roble( etc 79 Ca) be 5ery da)-erous +or *re-)a)t 7o(e) a)d childre) 89 /ho7s a lac: o+ +ire sa+ety (easures at the de*ot a)d their *eriodic chec:i)-

99 Carbo) hails has +alle) 109 his is o)e o+ the 7orst +ire related i)cide)t i) the history o+ I)dia) Oil Cor*oratio)

&-

119 IOC to *ay Rs A0 crore to u)its a++ected by %ai*ur +ire accide)t 129 0u)dreds o+ *eo*le are 5isiti)- hos*itals 7ith the co(*lai)ts o+ breathi)*roble(3 sore throat3 irritatio) i) the eye3 aller-y a)d itchi)1>9 he release o+ -ree)house -ases such as carbo) (o)o4ide a)d carbo) dio4ide i) the at(os*here 7ill ha5e lo)-Bter( co)se,ue)ces o) cli(ate cha)-e

SU33ESTION
19 O*erators should be -i5e) *ro*er trai)i)- a)d should ha5e e)ou-h :)o7led-e to o*erate o) (achi)es9 29 here should be a tea( o+ s:illed o*erater a)d should ha5e a *ro*er leader >9 Rescue tea( should be al7ays *rese)t ?9 /u*erior should closely loo: i)to the (atter a)d absorb the thi)-s *erso)ally A9 CloseB circuit ca(eras should be i)stalled @9 A alar( should be ra)-ed 7he)e5er there is a *roble( 79 O*erators should i((ediately co)tact their boss i) such situatio) 89 he ta):s i) 7hich *etrol a)d diesel are stored i) de*ot should be +ar a7ay +ro( each other 99 he ta):s should be (ade u* o+ so(e better (aterial 7hich do )ot catch +ire easily 109 here should be e(er-e)cy e4its *oi)ts +or *eo*le to -et a7ay +ro( duri)- such situatio) 119 .et o5er the habit o+ ha5i)- a *la))ed +ire +i-hti)- o*eratio)s 129 A detailed +ire +i-hti)- *la) a)d arra)-e(e)ts has to be i) *ositio) at *laces 7hich ha)dle i)+la((able substa)ces 1>9 I((ediate root cause o+ this +ire a)d re5ie7 o+ +ire +i-hti)- should be do)e 1?9 #ire +i-hti)- *re*ared)ess at other sites i) the )atio) should be (ade alert 1A9 A-ricultural scie)tists should be i((ediately se)t to the area to study the da)-erous *he)o(e)o) a)d su--est (ethods +or soil treat(e)t to sa5e this yearNs rabi cro*s

DON!T REMAIN =APPD IN I3NORANCE

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