INTRODUCTION

INDUSTRIAL RELATIONS:

The concept of industrial relations refers a complex and dynamic relationship between employees and employers, employees and trade unions exist in the organization is said to be Industrial relation.

DEFINITION:

Industrial relation is concerned with the system and procedures used by the unions and employees to determine the reward for effort and other conditions of employment, to protect the invest of employed and employers, and to regulate the ways in which employers treat their employees.

Parties involved in Industrial Relations

1. Employees2. Trade Unions3. Employees Association4. Employers Association5. Government

EMPLOYER WELFARE

After employees have been hired trained and remunerated they need to be retained and maintained to serve the organization better. Welfare facilities are designed to take care of well being of the employees. They do not generally result in any monetary benefit to the employee.

MEANING

Welfare means fairing or doing well and referred to as betterment work for employees, relates to taking care of the well being of workers and employers trade unions and government and non government agencies.

TYPES OF WELFARE ACTIVITIES

The meaning of labour welfare may be made clearer by listing the activities and facilities, which are referred to as welfare measures.

Welfare measures inside the work place.Welfare measures outside the work place.

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Management’s success lies in motivating its workforce and welfare

measures act as the driving force.

Welfare programmes for workers assume special significance in a

country like India where poverty in quite pervasive and where a worker, by

himself, in generally not in a position to create such welfare facilities that

can make his life more pleasant. Where the welfare measures that were

facilitated is closely associated with the productivity of labour, labour

turnover, absenteeism, morale and other economic non-economic

considerations of labour. Now if these measures are been provided by the

employees it also helps in making the work place more congenial.

It is a well known fact that the problem arise in the field of Industrial

Relations such as Indiscipline, high turnover, excessive absenteeism etc.

Which may be caused by maladjustment of the workers to the work

environment. In these situations the labour welfare measures helps to avoid

such disputes and disorders that effect the industrial environment. These

welfare activities not only make the above but also increases the comforts of

the workers and improves their stand and of living. This makes them to

adjust to the environment, reducing displeasures friction and under-

utilization of resources.

It is axiomatic that a stable, well integrated and better satisfied

workforce will help in speeder development and better utilization of

resources. If the working and living conditions are here of the welfare

measures, the workers will be malcontents and will contribute not only

towards efficiency but towards problems.

2

Although the provision of better working and living conditions were

conceived earlier on humanitarian grounds, later it was also realized that it

increased productivity. Effective commitment towards work, improved

morale and also the industrial Peace. This is the fundamental thesis that has

led to the intervention of the state through legislation on labour welfare.

3

PRINCIPLES OF LABOUR WELFARE:

The labour welfare activities should pervade the entire hierarchy of

an organization.

The employees should not bargain labour welfare as a substitute

for wages or monetary incentives.

Labour welfare must aim at helping employees to help themselves

in the long sum.

There should be proper coordination has many and integration of

all labour welfare services in an undertaking.

The labour welfare work of and organization must be

administratively viable and essentially development oriented.

The management should ensure co-operation and active

participation of unions and workers in formulating and

implementing labour welfare programmes.

There must be periodical evaluation of welfare measures and

necessary timely improvements on the basis of feedback.

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NEED FOR THE STUDY

To understand the extent to which the welfare measures provided by

O.N.G.C, towards their employees. To know the level of awareness of

employee about the various welfare measures provided to them. To study

how the Welfare facilities provided helps in increasing the productivity and

job satisfaction. To learn how welfare services provided to employees help

Organization to build up a stable work force by reducing absenteeism and

labour turnover. To offer useful suggestions for improving the effective ness

of welfare measures. To recognize the importance of welfare measures for

O.N.G.C employees to achieve the organization goals.

The real need for welfare arises from the two basis condition

generally known as the ‘long aim of the job’ and the ‘social invasion of the

factory’. The working environment of any job in factory or mine or a

workshop imposes some adverse effect on the workers because of the heat,

noise, and order fumes etc. involved in the manufacturing process. There are

also occupational hazards and environmental problems inherent and

inevitable in the manufacturing process itself, which cannot be removed or

reduced. As a result productive devices and compensatory benefits have to

be provided for the welfare of the workers. This can be referred to as the

‘Long arm of the job’ which stretches out its adverse effect on to the worker,

long after normal working hours, affecting physical and mental well-being.

Hence, the need for welfare services within the factory or work place is felt.

Regarding the aspect of ‘social invasion of the factory’ when a worker

comes to Working place, he is not an isolated individual but a member of

society having family members. A worker need to satisfied regards his

culture and living environment. Hence, the imperative needs to provide a

welfare services to satisfy his personal and family needs is felt.

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OBJECTIVES OF THE STUDY:

The study was conducted in order to achieve the following individual

Objectives:

1. To understand the extent to which the welfare measures

provided by O.N.G.C, towards their employees.

2. To know the level of awareness of employee about the various

welfare measures provided to them.

3. To study how the Welfare facilities provided helps in increasing

the productivity and job satisfaction.

4. To learn how welfare services provided to employees help

Organization to build up a stable work force by reducing

absenteeism and labour turnover.

5. To offer useful suggestions for improving the effectiveness of

welfare measures.

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METHODODLOGY:

The project and mainly based on two sources of the data viz,

1. Primary source

2. Secondary source

Primary source:

The primary source of data is applied for getting the required and

relevant information directly from the Department heads and in the course of

discussion with Executives. The following are the data collected through

primary sources.

a) Type of welfare measures provides O.N.G.C.

b) Refreshment courses conducted in the technical institute.

c) About the course covered through discussion with the employee

and through questionnaires.

Secondary Sources:

The secondary source of data was collected through obtaining records

and files from the Administrative Building of O.N.G.C. and the institutional

guide gave us the remaining necessary information and the staffs relating to

Administration gave me all the necessary information to complete the study.

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SCOPE OF THE STUDY:

Welfare is very wide one and is more or less synonymous with

conditions of work as a whole. It may include not only the minimum

standard of hygiene and safety laid down in general labour legislation, but

also such aspects of working life as social insurance schemes, measures for

the protection of women and young workers, limitation of hours of work,

and paid vacations. In other cases, the definition is much more limited, and

welfare, in addition to general physical working conditions, is mainly

concerned with day-to-day problems of workers and the social relationships

at the place of work.

As the subject of welfare facilities is a very broad one covering a wide

field of amenities and activities, limits cannot be rigidly laid down regarding

its scope for all times. In the final analysis, workers welfare services should

include all extra-mural and intra-mural welfare work, statutory and non-

statutory welfare facilities undertaken by the employers, government, trade

unions of voluntary’ organizations and also social security measures which

contribute to workers welfare such as industrial health, insurance, provident

fund, gratuity, maternity benefits, workmen’s compensation, retirement

benefits, and so on. More specifically,

In the light of above observations, we may define that the term

Employee Welfare is a dynamic concept and no rigid limit for the scope can

be laid down for all industries for all times. However, the scope may be

elaborated to

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a) Enable workers to live a richer and more satisfactory life.

b) Raise the standard of living.

c) Be in line with similar services available in the neighbouring

enterprises.

d) Improve the productivity of employee.

e) Be so designed to accommodate all changes occurring due to

industrialization and technological advancement.

f) Be administratively viable and should have easy access.

Thus, the scope of Employee Welfare covers all intra-mural and extra-

mural welfare activities as well as the statutory and non-statutory welfare

measures undertaken by Government, Trade Unions, or Voluntary

Organizations for the betterment of the workers.

PERIOD OF THE STUDY:

The period of the study is from 1st May 2007 to 30th June 2007. and

the statistical information was been taken to the period of 2006-2007.

LIMITATIONS OF THE STUDY:

As the managers of the organization are busy with their work

schedule it was difficult to collect detailed data.

Time was the major constraint as the mentioned period was not

enough to collect the data in details.

Survey was done with the sample size of as the employees of

the company work in shifts and as they are busy with their

schedule.

Some were unable to understand the language in the

questionnaire so they felt it difficult to answer.

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INTRODUCTION

A WORD ABOUT OIL AND NATURAL GAS

The first oil discovery in India was made in Digboi in Assam in 1889.

Those days nobody thought this discovery was to play in the Country’s quest

for oil and gas later years. Over years grown oil and gas sector played a key

role in the country’s energy sector and account for 54 percent of India’s

commercial energy consumption, as India is eight largest consumer of oil in

the world.

On a conservative basis petroleum product consumption in India is

expected to grow from present level of 97 million tones P.A in 1999-2001

to about 180 million tones P.A in 2006-07 and further about 370 million

tones P.A by 2024-25 and demand for natural gas which was 110 ton million

standard cubic meters per day in 1999-2001 is expected reach 231 million

cubic meters per day by 2006-07 and further to 391 million cubic meters per

day by 2024-25

India proved the oil and gas reserves are 0.5 percent of world reserves

where as oil production is 0.9 percent and gas production 1.2 percent of total

world production respectively. The sedimentary basin area of the country is

about 4 percent of the total world sedimentary area.

India is endowed with 26 sedimentary basins along with deep-water

sedimentary areas. All 26 sedimentary basins of the country are not alike

from the oil and gas prospectively point of view based on degree of

exploration and prospectively as presently known these basins have been

divided into four categories. The highly prospective basin included Bombay

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

Cauvery basins and low prospective basins are Ganga, Vindhya, Kerala-

Konkan, Mahanadi and Bengal basins.

The great strides have been made in oil and gas exploration by two

national oil company’s namely oil and Natural Gas corporation Ltd;

(O.N.G.C) and oil India ltd;(O I Ltd;)

A number of new discoveries have been made by in the Gulf of

Cambay, Krishna Godavari and Rajasthan basins by private/joint venture

companies. In deep water areas of the Krishna Godavari basins many large

prospects are under drilling. This would result in finding several gas fields

along the east coast with 3-4 years. This area can produce 25-30 percent

more gas over the current production.

As private participation is increased for regulatory the up stream of oil

and gas sector a regulatory body was set by Government, the Director

General of Hydrocarbons(D.G.H) under ministry of Petroleum and

NaturalGas.

Till QI FY99, the Indian oil & gas industry has been under state

control vide the Administered Pricing Mechanism (APM). The production

pattern, capital expenditure and pricing of petroleum products were

determined by the state. The pricing system assured all players a normative

post-tax return of 12% on net worth.

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Decontrol measures were initiated and retention pricing for refineries

has been abolished w.e.f Apr ’98. However, controls on 5 products (MS,

HSD, ATF, SKO AND LPG) that contribute 70% of the volumes, continue

to remain. Subsidies on LPG and SKO will be limited to 15% and 33% of

import parity prices and tariff of crude and petroleum products will be

reduced to 0-5% and 15% respectively.

The major gainers of deregulation process will be old players with old

and depreciated units like – MRL,CRL,BPCL,HPCL, IOCL etc. New

refineries like MRPL, Essar Oil and Reliance Petroleum will be hard hit, as

their refining margins under the market determined pricing mechanism

would be lower than that under the APM. In addition, net profit will be

affected by high interest and depreciation outgo. It is important to note that a

six-mtpa refinery (current minimum economic size)will cost Rs36bn.

Global oil & gas production is skewed with most of the reserves

concentrated in the Middle East, which supplies to deficit countries in the

Americas and the Asia-Pacific. As at end 1998, the world had proven oil

reserves of a little over I bbl and proven gas reserves of little less than 140

trillion cubic meters.

Amongst players, ONGC has a virtual monopoly in upstream crude

oil and gas production, while GAIL has a monopoly in marketing and

distribution of gas. The refining and marketing sector is again dominated by

PSU s, which account for nearly 95% of the total refining capacity and

100% of products marketed. JOIL is the market leader in both refining and

marketing followed by BPCL and HPCL. MRPL was the first non-PSU in

the sector , followed by Reliance and Essar by 1999-2000.

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Stock valuations continue to remain depressed. The two negative

factors for the sector are dim outlook on global refining margins and supply

of stock in the form of government disinvestment. Investors should use all

disinvestment programs as a buying opportunity because the long-term

fundamental story is still intact.

GLOBAL SCENARIO

Primary energy consumption

Primary energy is a critical input and in line with economic growth,

as observed since the late seventies. The world consumption of energy

increased from about 4,800 million metric ton of oil equivalent (mmtoe)in

1970 to about 8,877 mmtoe in 1999, representing a CAGR of about 1.98%.

The growth in consumption would have been much higher but for the

disintegration of the former Soviet Union, whose energy consumption levels

dropped by more than 35% in the last five years.

The average per capita consumption of energy vis-à-vis

hydrocarbons (kgOE)

Country/Region Primary Energy Hydro-Carbons

World 1454 927

India 285 113

China 688 169

Pakistan 264 231

Bangladesh 81 80

Japan 3962 2520

U.K. 3856 2719

Germany 4120 2539

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Source: British Petroleum Statistics – 1998

Importance of oil & gas in primary energy

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

consumption. The situation in Asia! Australia is different with coal still

remaining the primary source of energy. However, the scenario is rapidly

changing, for instance in the last decade, oil & gas consumption has grown

at more than 70% in the Asia Pacific region vis-a-vis 15% in the rest of the

world (excluding the former Soviet Union, where the growth rate has been

negative). The Asia Pacific region is thus gaining importance in the oil &

gas map, with India and China together accounting for 47.50% of the total

demand in this region.

In the last decade, natural gas has taken the lead in growth and in the

emerging energy scenario, it is seen as an environment-friendly substitute

for relatively scarcer – oil. Consumption of natural gas has grown by more

than 26% vis-à-vis 15% in consumption of oil.

Oil and gas reserves

As at end 1999, the world had proven oil reserves of a little over 1,055

million barrels (about 140,900 mmt) while that of gas, a little less than 140

trillion cubic meters. At the current rate of production, oil reserves are likely

to last for about 40 years and natural gas reserves for about 65 years. The

reserves are however unevenly distributed with the Middle East countries

together holding 65% of oil and 34% of gas reserves.

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Oil-Widely traded energy source

Considering the fact that oil & gas would be available in the

foreseeable future without any constraint, oil & gas would continue to be the

most widely traded energy source. World oil trade is estimated to be 38

million barrels a day. The inherent advantages of oil &gas in terms of

versatility ease in handling & transport and adaptability to new

environmental standards would make it the most preferred fuel. Though

reserves by themselves are not a cause for worry, experts feel that as the

reserves/ production ratio falls, the cost of exploration could rise with

increased investment in development of resources leading to a surge 3

prices.

World refining capacity- Reaching record levels(Introduction)

As of 1999,the world’s total refining capacity was close to 82,861

thousand barrels a day. The refinery throughput in the year 1999 stood at

71,126 thousand barrels a day , representing an average capacity utilization

of about 85%.

Oil &gas prices

Oil and gas prices are closely linked to the policies and capacity

utilization of OPEC. Thanks to the two oil price shocks, oil prices which

were reasonably flat at about US$3/ bbl till early seventies spiked to more

than US$3/bbl in 1973-74 and again to more than US$25/ bbl in 1979-80.

The prices have thereafter hovered between US$15-25/ bbl but for a short

blip in 1990 due to Iraqi invasion Kuwait. In1998, oil prices crashed once

again to a decade low of US$11/ bbl due to excess capacity, poor off-take

15

and an overall slowdown in world economies. Subsequently OPEC reduced

crude output, which escalated prices from $11/ bbl in 1998 to $32/ bbl in

June 2000. Later though POEC increased production twice (by 1.45mbpd in

September ’99 and 0.7mbpd in June’00), the quantum was insufficient to

tame prices. The world market now banks on increased supply from non-

OPEC countries namely Mexico, Oman and Norway.

The product prices do not necessarily move in tandem with the crude

oil prices but as a direct function of regional refining capacities vis –a-vis

demand & supply.

Natural gas prices on the other hand have also increased from US$1.5-

2.5 per mbtu in 1998 to $4.36 per mbtu in June 2000. Unlike crude oil , there

are no benchmarks for natural gas and the price is based on calorific value of

gas, local demand & supply and cost of alternate liquid fuels. Huge

disparities exist in the price of natural gas not only between countries but

also within a country.

Energy scenario in India

Primary energy consumption in India Excluding the non-commercial

energy sources like wood and animal waste, the primary energy

consumption in India was 285kgOE in 1998 as against 5800kgOE in North

America. Coal continues to be most important source of energy, constituting

more than 56% of the total energy consumption though there is a conscious

shift towards oil as alternate fuel. The over all demand for oil products

increased from 74mtpain 1996 to 90mtpa in 2000, representing CARG of

5%. At current levels the estimated demand by 2005 is expected to be

around 114mpta while the refining capacity would be around 155mtpa.

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Oil & Gas – Reserves & Production

There are 26 sedimentary basins in India covering an area of 1.78 mn

sq kID,of which 1.46 mn sq km are onshore and 0.32 mn sq km are offshore

in water with up to 200 meters in depth. The total prognosticated reserves

are estimated at 20 bbl of oil, but till date only 27% of this has been

discovered. A total of 5.4 bbl of oil (about 732 mmt ) has thus been

discovered with the annual production in the region accounting to 35-40

nmmtpa. These reserves are likely to last for the next 20 years. However,

the current production level of 35 mmtpa would be highly inadequate,

especially once the planned refining capacities come on stream a large

portion of the crude would need to be imported.

As of 1995, the proved gas reserves were about 660 billion cubic

meters (bcm) while production as of 1999 was 27bcm. At current

production levels these reserves are likely to last for about 30- years.

Natural Gas Demand (MMSCMD)

Refining Capacities

The refining capacity increased from 69.14mtpa in FY99 to 109mtpa

as of January 2000 i.e. about 2.7% of the world refining capacity. Currently

Year Demand

1999-2000 110

2001-2002 151

2006-2007 231

2011-2012 313

2024-2025 391

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there are about 17 refineries of which 7 are owned by Indian Oil

Corporation (IaC),2by Hindustan Petroleum Corporation Ltd(HPCL) and

Madras Refineries Ltd (MRL), 1 BY Bharat Petroleum Corporation Ltd

(bpcl), Cochin Refineries Ltd (CRL), Bongaigoan Refinery &

Petrochemicals Ltd (BRPL), Numaligarh Refineries Ltd (NRL), Mangalore

Refinery & Petrochemicals Ltd (MRPL) and Reliance Petroleum Ltd

(RPL) .

Sector controls

Given the criticality of oil & gas in the national economy, the sector

was completely regulated till 1991. With the ushering of liberalization, the

sector was partially opened with decontrol of lubricants, decanalization of

several products and permission to parallel marketers to sell LPG and SKO.

Currently, administered pricing mechanism is present only in the marketing

sector with the government ruling the prices of most petroleum products.

With the ballooning demand for petroleum products and no fresh discoveries

of oil wells, imports have been continuously swelling. During FYOO, India

imported 44mton of crude and 12mnton of products.

The import bill for FYOO was Rs528bn and if the situation continues,

it could have serious repercussions of the balance of payments situation as

well as smooth & continuous availability of energy. The only solution to this

problem is to attract large investments, both in terms of capital and

technology so as to boost production levels and cater to the growing

demand. To do this, all the controls in the sector would have to be removed.

The government is also reacting in this direction.

Business risk

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The uncertainties involved in finding commercial quantities of oil &

gas and the intensive capital required for venturing into the business make

E&O prone to great business risk. Tens of millions of dollars may well have

been spent without discovering a viable oil & gas field. Given this inherent

risk in business where inputs can be determined and outputs are probable,

the successful ventures have to generate sufficient profits for the

unsuccessful ones to keep the business going. An estimated US$50mn may

have to be spent over a period of 3 to 6 years, before one realistically

conclude whether the field is fit to be fully developed for commercial

exploitation.

In order to counter this business risk, E7P companies are spreading

both horizontally and vertically. Horizontal risk spreading envisages

acquisition of large acreage in varied geological environments consisting,

various categories of sedimentary basins. Vertical risk spreading envisages

farming-out participating interest to other oil companies in the oil fields

owned by the other companies. Risk is thus spread widely.

EXPLORATION & PRODUCTION SECTOR IN INDIA

Historical perspective

Exploration activity started in India way back in 1866 in the north

eastern state of Assam, just seven years after drilling of the first oil well in

Pennsylvania, USA. For about a century the E&P activity was restricted to

the northeastern part of the country and till early 1960’s the total crude

production in India was only about 10,000 bpd. Burma oil was the only

company engaged in E&P. with the demand growing , the government

recognized the need to explore hydrocarbon resources and accordingly set

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up Oil & Natural Gas Commission (ONGC) in 1956. Burma oil was also

merged with Oil India Ltd (OIL), this was however taken over by GOI in

1981.ONGC was converted into a public ltd company in 1993. ONGC and

OIL enjoy the status of National Oil Companies (NOC) and have a duopoly

with about 90% and 10% share respectively. The NOC market their produce

directly except natural gas, which is distributed through Gas Authority of

India Ltd(GAIL).

Quality of crude produced in India

The crude produced by ONGC in the Bombay offshore basin,

typically about 38° API with about 0.03% sulphur, is considered to be very

light and sweet and comparable with Nigerian Light Crude. The crude

produced in the Onshore fields typically is about 32° API with about 0.20%

sulphur and comparable with Minas crude from Indonesia. In our opinion,

the crude produced in the Bombay High would trade at a premium to Saudi

Light/ Brent and other crude would approximately equate with Brent prices,

strictly from purity and specific gravity of point of view.

Private sector participation and Production-Sharing Contracts(PSCs)

Private sector participation in the E&P sector started in 1974, by

awarding exploration license. Although three licensing rounds were

completed by 1986, no progress was achieved and the contracts had to be

relinquished. The fourth licensing round was completed in 1991 when two

blocks of the Bombay Offshore basin were awarded licenses. In 1993, the

Government introduced a policy of round-the –year bidding and till 1995,

eight licensing rounds were completed. Till the 8th round, the exploration

cost was borne by the private parties and NOCs had to bear minimal license

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

interest got converted to a participation interest and all revenues were first

applied for recovery of exploration costs and the surplus was shared in the

ratio of participating interest.

A major departure was made in the 9th round and bidding terms

demanded that the contractor indicate the participating interest he is willing

to concede to NOC, which can be a minimum of 25% and a maximum of

40%. Thus it proved to be a joint venture with exploration & production

costs being shared in the ratio of participating interest.

Till date, four oil fields have been given for commercial exploitation

to private sector players, of which the Videocon / Marubeni has bagged the

Ravva oil field combine and the Tapti, Panna & Mukti oil fields have been

bagged by the Reliance/ Enron combine.

The Government has also floated two rounds of licenses for

conducting speculative seismic surveys. The licensees are required to

conduct geological surveys and make available data to upgrade the

information on the country’s hydracarbon potential on a profit sharing basis.

These speculative rounds have however elicited poor response .

The reasons for poor response both for exploration and seismic

surveys can be summarized as under.

Inadequate availability of geophysical data with the perception that

the blocks being offered do not have the geo-potential for being developed

in commercial fields.

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The size of blocks offered is too small.

Time taken to award a contract runs into several years.

Several post-contract clearances are required to start the

operations.

Marketing scenario

Currently, IaC, HPCL, BPCL and IBP market all the petroleum

products. With the introduction of parallel marketing scheme, SKO and LPG

is being marketed by a few new entrants into the sector. However, their

share of marketing is miniscule, given the price distortion between the

products marketed by PSU oil majors. Thus, their market shares are not

expected to grow unless prices of these products marketed by PSU oil

companies are determined. In the year 1995-96, of the estimated total

consumption of 74,688 tmt about 690 tmt was sold by parallel marketers,

72,542tmt was sold by PSU majors and the balance being, direct imports by

industrial consumers.

The market share of these companies during the last three years is given

below.

YEAR IOCL BPCL HPCL IBP

22

Tmt % Tmt % Tmt % Tmt %

2001/

02

36300 55.43 13228 20.20 12588 19.22 2991 4.57

2002/

03

39846 54.94 14780 20.38 14150 19.51 21273 43.51

2003/

04

42180 54.52 15800 20.43 15400 19.93 3475 4.49

While the market share of IOC and IBP has been continuously falling,

the market shares of BPCL and HPCL have been on the rise.

Of the products marketed by oil companies, MS & HSD can be

categorized as retail products where the oil companies fight for the market

share and sale growth. A portion of MS/HSD is also sold to direct industrial

consumers. The importance of these two products lies in the fact that they

together not only constitute more than 50% of the total sales volumes but

also form the constituents of aggressive growth.

The break-up of MS/HSD sales into retail and direct, over the last two

years is below.

MS/HSD – Retail and Direct Sales (tmt)

The share of each of the oil companies in MS & HSD segment – wise for

the last 3 years is given in the table.

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Year MS HSD Total Total

Retail Direct Total Retail Direct Total Retail Direct

2000-01 4511 177 4688 24240 8019 30059 28751 8196

2001-02 4820 166 4986 26660 8590 25250 31480 8576

2002-03 96.22% 3.78% - 75.14% 24.86% - - -

2003-04 96.67% 3.33% - 75.63% 24.37% - - -

MS/HSD Segment-wise sales of oil companies

Year MS Retail MS Direct Total

IOC BPCL HPCL IBP IOC BPCL HPCL IBP MS

2001-02 1359 1240 1068 306 172 5 5 1 4146

002-03 1554 1392 1218 347 159 9 8 1 4688

2003-04 1672 1492 1287 371 150 8 7 1 4988

Year HSD Retail HSD Direct Total

2001-02 8575 5507 4913 2028 5639 712 803 102 28279

2002-03 9885 6346 5737 2271 6036 953 937 94 32259

2003-04 10888 7014 6264 2491 6525 1031 978 55 35246

Thus, IOC is a very large player in the direct market with 90.4% share

in MS Direct and 76.0% share in HSD-Direct.

Transportation and distribution of products

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Considering the geographical spread of the country, the infrastructure

for movement of petroleum products is woefully inadequate ofor handling

the growing volume of POL products. Not much thought has been given for

development of pipelines. Due to non-availability of tank-wagons, oil

movement is undertaken by road which is not only hazardous and polluting

but also 15 to 20 times costlier (in terms of energy consumption as per SRC

report ) compared to pipelines and 5 times costlier than railways. In a

country where oil is being imported, expenditure on movement of POL

products by road results in serious drain of foreign exchange. The losses due

to road/rail transportation are also 3 to 5 times higher compared to

transportation through pipelines.

The current mode of transporting POL products is discussed in the

following paragraphs.

Standard LPG filling and Bitumen filling at refineries

Refinery LPG Filling Bitumen

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Bulk Cylinder Drums

BPS-M 203.0 156.0 480.0

HPC-M 20.0 -- 300.0

HPC-V 98.0 -- 60.0

MRL 32.0 85.0 200.0

CRL 90.2 28.8 98.0

IOC-B 37.0 15.0 --

IOC-H 7.0 20.0 180.0

IOC-M 182.0 -- 330.0

IOC-K 84.0 102.0 200.0

IOC-G -- 6.00 --

IOC-D -- -- 16.0

Total 753.2 412.8 1564.0

Exploration & production

Increasing the competency of ONGC & OIL by empowering the

Board of Directors to diversify into downstream, allowing them to

market their own produce, providing level playing field to all

companies in bidding for blocks, relinquishment etc and providing

international price for domestic crude produced by them.

Enhancement of domestic production through reserve accretion in

India and abroad.

Acquisition and absorption of new technology for reserve

accretion. Mobilization of venture capital required for building

national oil industry.

26

Simplifying procedures in awarding production-sharing contracts,

provision of fiscal incentives and rationalization of tariff structure.

Assignment of regulatory and monitory functions to Directorate

General of Hydrocarbons (DGH ) which shall be an autonomous

body.

SALIENT FEATURES OF NEW EXPLORATION LICENSING

POLICY (NELP),1997

International price to be paid for crude oil extracted from new

wells to all companies including ONGC & OIL.

On all new findings, cess abolished and royalty made advalorem

at12.50% for inland and 10% for offshore areas. For deep-water

areas beyond 400 meters depth, royalty will be 5% for the first 7

years.

Tax holiday for 7 years after commencement of commercial

production from blocks in northeastern region.

Total freedom to market crude in the domestic market.

Any company can bid directly without participation of ONGC or

OIL as against the earlier stipulation of mandatory participation of

ONGC/OIL up to 40%.

27

ONGC/OIL to compete with other companies for winning

licensees.

Natural gas

Market deregulation to be done in phases as the domestic industry

is in a nascent stage.

In the initial phase the sector may be opened up for private

participation.

A regulatory body that shall lay down transparent rules required to

ensure a level playing field, to lay down safety practices, to ensure

environment protection, fair return to investors and to prevent

abrupt price movement protection, fair return to investors and to

prevent abrupt price movements.

Freedom to foreign companies/ private sector parties to set-up

terminals and pipelines and freedom to import store and distribute

LNG.

Freedom to PSC awardees to transmit, distribute and market the

gas produced by them.

Freedom for setting up spur-lines and city distribution lines.

Introduction of Common Carrier Principle for pipelines. In the

next phase when optimal infrastructure has been created, all further

28

steps to be taken for complete deregulation subject to compliance

of rules laid down by regulatory body.

Pricing of natural gas to be in-line with international prices.

REFINING &MARKETING

Refineries to be decontrolled first followed by upstream and last by

marketing sector.

Total freedom to refineries to decide their product mix to optimize

their profitability through better yields and value added products.

Decanalisation of petroleum products

Continuation of administered pricing for mass consumption products

till the national economy is ready to accept market-determined prices.

Cross subsidization of products to be done away and all subsidies to

be given through budgetary allocations in a transparent manner.

Marketing deregulation to be done in phases, by giving freedom to oil

companies to appoint dealers/ distributors, by withdrawal of SPE mechanism

and thereafter-full decontrol.

Tariff & pricing reforms

The pricing and tariff reforms to be done in phases as per timetable

given in next paragraph.

29

Rationalization of tariff structure by bringing down customs duties to

0-5% and providing a maximum tariff protection 25% on famished products.

Tariff rates to be bound as per WTO.

Future scenario

With the widening gap between demand and supply, both for oil &

gas, the outlook for the upstream sector is extremely positive. The decontrol

of the sector would give more strength to these companies to pursue their

goals with greater vigor. In our opinion, natural gas could turn out to be a

dark horse for the E&P and Distribution companies. The New Exploration

Licensing Policy has already given a thrust and direction to the reforms in

the upstream sector, with virtual decontrol of the sector for oil & gas

explored and produced in new oil fields.

A PROFILE OF “RAJAHMUNDRY ASSET O.N.G.C Ltd;

30

The Oil and Natural Gas Corporation Ltd, (ONGC ) the largest oil

exploration and production (E&P) company in our country producing crude

oil, natural as and LPG stands among the top 25 oil companies in the world

with an annual turnover of US$ 4 Billion and is the number one in the

Indian Corporate sector in terms of assets, profits and overall performance.

The progressive presence of this oil giant has been felt in the state of Andhra

Pradesh since 1978.

The O.N.G.C’s exploration for oil and natural gas in the Krishna

Godavari project has provided sufficient inputs and momentum to the

development of the state too.

O.N.G.C IN KRISHNA GODAVARI PROJECT

The planned exploration work of oil and gas by O.N.G.C in the

southern part of India started was way back in 1958. the geo-scientific

surveys led to the discovery of a major petroliferous sedimentary basin,

which is now famous as “Krishna Godavari project” covering an area of

20,000 sq. km. on land in Andhra Pradesh and about 25,000 sq. km

Offshore (up to 200 m water depth ). The gas was discovered in the first well

drilled in the Narasapur field 1978 and in 1980 oil and gas were discovered

in the first well on G-1 structure in the Godavari offshore. After the start of

commercial gas supply to its first consumer M/s Delta Paper Mills in

February 1988, the Krishna Godavari Project (KG Basin ) has come up on

the oil map of mIndia with its headquarters at Rajahmundry in the East

Godavari district of Andhra Pradesh.

As on date, more than 350 wells have been drilled in the Krishna

Godavari Project leading to the discovery of around 125 oil and gas bearing

31

wells. The success ratio of drilling in Krishna Godavari Basin 1:3 which are

far above the world average 1:9. the major oil producing fields are

Kesanpali (West), Kaiikalur, Lingala and Mori and gas producing fields are

Mandapeta, Pasarlapudi, Ponnmanda, Penumadam, Razole, Elamanchilli,

Lankapalem, Advipalem, Kesavadasapalem, Kulkipalli, Narasapur

Endamuru and Tatipaka. The average oil production, which includes the

condensate from the gas, is above 200 tons per day and the average gas

production on daily basis is approximately four million standard cubic

meters (MMSCM)i.e. 40lakh cubic meter (LCM) per day.

At present seven on-land Rigs, Six EPS (Early Production System)

and three CGS (Gas collection Station) are being operated by O.N.G.C in

Krishna Godavari Project, for exploration and production activities.

Additionally, it has also taken up various projects for expansion of oil and

gas installations at Kesanpalli and Advipalem. Installation offshore well

platform at GS-15 and GS-23 a Mini refmery at Tatipaka, gas supply form

isolated gas wells, etc. is also in progress, O.N.G.C has emphasized high

thrust for exploration activities by adopting highly sophisticated and state of

the are technology for extensive drilling operations.

During the current planed period for more and more oil & gas in the

Krishna Godavari project O.N.G.C is optimistic of finding a large

petroliferous field in Andhra Pradesh for sustaining the efforts of

Exploration & production activities thereby stimulating industrial growth in

the Krishna Godavari project and the adjoining areas. A workforce of around

1500 professionals of O.N.G.C are committed in this relentless search for

which the oil company has already incurred a cumulative expenditure of

around Rs. 3000 crores.

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The Krishna Godavari project comes under Southern Region Business

Centre of O.N.G.C had is one of the prominent and viable projects which

shares around 10% of the O.N.G.C total investment made in the country for

exploration and production of Oil & Gas.

O.N.G.C activities in Krishna Godavari Basin committed in the

relentless search of oil & gas spread over 20,000 sq. k.m in onland and

25,000 sq k.m in offshore of Andhra Pradesh. O.N.G.C K.G project us

supplying up to 40 lakh cubic meter of gas per day to various industries like

NFCL, SPGL, GVK, APSEB, SPEC etc; O.N.G.C K.G Project is expected

to double the gas production in a couple of years and wisher to stimulate

industrial growth in the state of Andhra Pradesh encouraging the use of gas

as a cost effective, viable clean fuel. O.N.G.C has emphasized high trust for

exploration activities by adopting extensive drilling operations during the

current planned period so as to discover more and more oil and gas field in

Krishna Godavari Basin.

O.N.G.C is optimistic of finding a large petroliferous field in Andhra

Pradesh for sustaining the efforts of Exploration and Production activities,

thereby stimulating industrial growth in Krishna Godavari Basin and the

adjoining areas.

O.N.G.C drilling activities in the Krishna Godavari Project indirectly

help in creating roads and bridges in the remotest areas. So far O.N.G.C has

constructed about 130 km. of new roads, improved about 600 km. of

existing roads and developed four bridges.

Aesthetic, cultural and social patterns and historical characteristic of

the areas covered by or adjacent ot the O.N.G.C prefects should not be

33

unduly disturbed by the project activities. Scenic landscapes, historical

heritage and cultural monuments should be preserved and the environment

around them should be kept clean and hygienic.

As far as possible, a minimum area of 500 meters from the high tide

mark in respect of coastal projects located near river banks should be kept

clear of all structures so that beach activities or river front development are

not adversely affected.

Effective mechanisms for monitoring the environment and for

collection of the required data of various parameters of the environment for

the purposes of surveillance should be set up within each project.

Work environment in the operational areas should be conductive to

safe and healthy working conditions. Good housekeeping is an integral part

of sound environment management.

Promoting a healthy, safe, productive, and aesthetically satisfying

environment is the responsibility of O.N.G.C. every effort should be made to

promote positive environmental education and create environmental

awareness at all levels.

KRISHNA GODAVARI PROJECTG IN FUELLING DEVEPMENT

A Social responsible organization:

34

O.N.G.C legend has done much more than exploring and producing

oil and natural gas. underlying in its corporate culture is the good practice of

contributing towards community development and social welfare

programmes especially in and around its operational areas. O.N.G.C has

been working tirelessly and sincerely to help people in bettering their quality

of life. It has not only met the expected standards but also has traveled far in

carrying out the self- assumed social responsibilities. A few of the

contributions are :

Employment Generation:

Through a variety of big and small contracts like public transport

maintenance of civil works, trading, ancillary industries providing goods and

services etc. employment generation efforts are being made. These efforts

have helped thousands of unemployed youth during the pas four decades of

the dedicated services of O.N.G.C in Andhra Pradesh. Special measures are

also taken on regular basis to split major works into several smaller parts

thus enabling more and more people to benefit, even at the cost of increasing

internal administrative work. Two Vocational Educational Centers for

Women (VEC) were also established in Coastal Andhra Pradesh by

O.N.G.C.

Developing local entrepreneurship:

35

Orders for purchase of materials were placed as per availability in the

local market thus generating employment and trading opportunities of the

small-scale local entrepreneurs.

Community Development Programmes:

Towards ameliorating the socio-economic condition of the people

O.N.G.C, Krishna Godavari Project has been earmarking and distributing

substantial grants under different heads. A number of schemes were

included in the community development programmes under the heads

Medicare, health education, sports and culture etc; all of which help in

bringing smiles to the faces of prople belonging to the weaker sections of

society. Apart from grants in aid that are routinely donated to social, cultural

expenditures on construction of infrastructure development, activities like

improvement of community life, special purpose grants for specific projects,

SC/ST annual component plans and social service by the “Mahila Samithi”

are also taken up. So far O.N.G.C has spent around Rs. 50 crores for socio-

economic development including construction of roads and bridges in the

state of Andhra Pradesh.

In areas indicated by government of Andhra Pradesh in the East, West

and Krishna Districts, O.N.G.C has come forward to jointly take up repaid

works of around 140 km of roads. This is apart form the roads it constructs

while establishing operations these areas. O.N.G.C has also donated for the

construction of Bridge over.

Vishista Godavari linking the island area. Recently O.N.G.C has

contributed Rs. 10 crores for the proposed inter-state bridge between Yanam

36

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

branch of Godavari At times of natural calamities which are becoming

increasingly common in the coastal districts of Andhra Pradesh, O.N.G.C

monetary contribution to the Chief Minister’s fund and mobilization of

necessary machinery and equipment to the calamity hit place for rescue are

some of the social responsibilities of O.N.G.C.

O.N.G.C has paid around Rs.60 crores to Andhra Pradesh state

Government towards royalty and sales tax during the year 2000-01. with a

focused division on the all round development of the community in the

places of its operations as well as beyond, O.N.G.C has been working

relentlessly and sincerely. Its share in various fronts like education, literacy

drive, cleanliness, environment protection and safety, health care and sports

us and impression about the human face of O.N.G.C Krishna Godavari

Project in Andhra Pradesh.

O.N.G.C is looking forward a special social and political environment

conducive for increasing the efficiency and productivity in the field of oil

and gas exploration and production in the state of Andhra Pradesh This will

directly result in greater prosperity of the state through enhancing the

availability of vital energy supplies for various Industrial operations.

The following are the O.N.G.C’s HR Vision and Mission and Policies

HR Vision:

37

To attain organizational excellence by developing and inspiring the

true potential of company’s human capital and providing opportunities for

growth, well being and enrichment”,

HR Mission:

To create a value and knowledge based organization by inculcating a

culture of learning, innovation & team working and aligning business

priorities with aspiration of employees leading to development of an

empowered, responsive and competent human capital”.

HR Objectives

To develop and sustain core values.

To develop business leaders for tomorrow.

To provide job contentment ;through empowerment, accountability

and responsibility.

To build and upgrade competencies through virtual learning,

opportunities for growth and providing challenges in the job.

To foster a climate of creativity, innovation and enthusiasm.

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

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

HR STRATEGY

38

To meet challenging demands of the business environment, focus of

the HR Strategy is on change of the employees’ ‘mindset’.

Building quality culture and resources.

Re-engineering and redeployment for maximizing utilization of HR

potential.

To build and upgrade competencies through virtual learning,

opportunities for growth and providing challenges in the job.

Re-strengthening mutual faith, trust and respect.

Inculcating a sprit of learning & enjoying challenges.

Developing Human Resource through virtual learning, providing

opportunities for growth, inculcating involvement and exposure to

benchmarking in performance.

ROLE OF HR

Alignment of HR vision with corporate vision.

39

Shift from support group to strategic partner in business operations.

HR as a change agent.

Enhance productivity and performance by developing employee

Competency and potential.

Developing Professional attitude and Approach.

Developing ‘Global Managers’ for tomorrow to ensure the role of

global players.

Measuring HR Performance

HR Parameters have been incorporated in the MOU by ONGC since

1994-95, to systematically and scientifically evaluate effectiveness of

HR Systems, which enables and facilitates time bound initiatives.

HR Parameters of MOU for 2000-2001.

Transformation of ONGC-HR as facilitator and Change Agent for

Pilot Implementation at WRBC.

ERP for HR-Project SHRAMIK.

Training and development.

Action Plan and Implementation for achieving HR mission and

objectives.

Roll out of Succession Planning Model for identified key positions.

HR AUDIT

IR for enhancing efficiency and productivity.

Introducing the concepts of mentoring and knowledge management.

40

Conducting a Climate Survey to identify areas for OD interventions.

A Motivated Team

HR policies at ONGC revolve around the basic tenet of creating a

highly motivated, vibrant& self-driven team. The Company cares for each &

every employee and has in-built systems to recognize & reward them

periodically. Motivation plays an important role in HR Development. In

order to keep its employees motivated the company has incorporated

schemes such as Reward and Recognition Scheme, Grievance Handling

Scheme and Suggestion Scheme.

INCENTIVE SCHEMES TO ENHANCE PRODUCTIVITY

Productivity Honorarium Scheme.

Jon Incentive.

Quarterly Incentive.

Reserve Establishment Honorarium.

Roll out of Succession Planning Model for identified key positions.

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

Productivity.

INDUSTRIAL RELATIONS AND LABOUR WELFAREAT A GLANCE

INDUSTRIAL RELATIONS:

Over the years, with the paid industrialization of India, a massive organized sector employing a large work force has come to occupy an important and visible part of the country’s economic life.

41

Hence a new industrial culture has to be taken into account. The top management usually dealt only with major crisis situations. The industrial relations function was not given the importance it deserved, both in terms of manpower as well as in terms of continuity of action or though.

The cost of human resources as a percentage of operating expense in the organized sector has been showing a steady increase. Obviously service sector industries will have a larger percentage, but even in manufacturing it has increased steadily.

The Government has had a major role to play, as a leading actor in Indian industrial relations (IIR). It has played a dual role-one as the i8nitiator of policy and the other as an employer, or owner, by setting up an extremely large public sector.

The government has also tried to build bridges of partnership through the various schemes of participation between the management and the employees. All this was initiated immediately after Independence, whereas in the developed countries, labour legislation and government controls were slower to evolve.

However, in India efforts were made to remove some of the appalling conditions as they were completely out of tune with the changed times, combined with the Indian governments beings of workers.

All this was achieved at a cost. The base of worker pay and other benefits was established at a certain level, certainly much higher than what the workers in the unorganized industrial or agricultural sector were earning.

If a problem crops up, defuse it and come to an immediate solution so that the wheels of production do not grind to a halt. This is a short approach at the group level-Management and unions.

Grievance machinery and discipline are characterized by many observers of industrial relations as the twin pillars of industrial relations. Both are needed not merely as communication channels but to further organization goals and viability. Effective management of industrial relations needs both and not just one of the two pillars.

FUNCTIONS OF IR:

42

IR Section acts as a Nodal Agency/Buffer between management and

collectives. The various functions handled by the section broadly are

as under:-

Collecting and preparing Status/Comments in respect of the Agenda

points submitted by the collectives for discussions with management.

Arranging Bilateral Meetings, drawing minutes, circulating the same

and follow up action thereof.

Interacting with collectives, maintaining rapport with them and

sensitizing employees.

Assisting, Advising and Guiding Functional Heads with regard to

implementation of the provisions of Labour Laws.

Handing of Industrial Disputes at conciliation stage i.e. collection

comments from the section concerned, Drafting replies to be filed

before the conciliation officer, Representing Management in the

conciliation/ joint meetings.

Handing of Strikes – Drafting of Appeals, Circulars, Letters on receipt

of Strike notices from the Collectives; collection information relating

to absenteeism, disruption of activities if any, and sending daily

situation report to Hqrs, Coordinating with various Department during

the strike period.

Submission of Periodical Reports & Returns to Head Quarters.

Providing necessary clarification in matters relating to Labour Laws

such as payment of Bonus Act, 1962, Gratuity Act 1972, Contract

Labour (R&A) Act 1970, Payment of wages Act 1936, Payments of

wages Mines Rules, Minimum wages Act, Mines Act 1952 etc to the

functionaries as and when clarification is sought.

Maintenance of files of Casual Workers, Preparation of their monthly

wage bills, processing their claims.

Processing the cases under workmen compensation Act, 1936.

43

Matters relation to EWC, Mahila Samithi, WDF and other welfare

bodies.

Grievance Management System – Coordination.

Organisation farewall functions for Employees Retiring.

Matters relating to workers education.

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

employee.

Welfare functions both statutory & non statutory.

Canteen Management at Base Complex.

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

to time.

CONCEPTS OF WELFARE

The concept of labour is flexible and elastic widely with

times, region, industry, country , social values and customs degree of

industrialization the general socio-economic development of the people and

the political ideologies prevailing at particular moments. It is also molded

44

according to the age. Group sex, socio-cultural level of workers in various

industries. However efforts have been made by expert bodies their concept

in their own way. A few of these definitions are given below.

The labour welfare investigation committee preferred to include

under labour welfate, including sickness and maternity benefit schemes,

provident fund benefits and pension etc.

Thus the term welfare is a comprehensive term, which includes

any activity, which connects with social, Moral, Economic betterment of

workers provided by any agency. Such activities may differ from country to

country and from region to region and firm to firm.

Different authors say the meaning of welfare:

The oxford dictionary defines "Labour welfare as efforts to

make life worth living for workmen."

Chamber's dictionary:

"welfare as a state of faring or doing well freedom from

calamity enjoyment of health prosperity"

The encyclopedia of social sciences defines.

"The voluntary efforts of the employers to establish with in

the existing industrial item working and something as living and cultural

conditions of employees beyond; at is required by law the customs of the

industry and the conditions of market".

45

R.R.Hopkins:

welfare is fundamentally an attitude of mind on his part of

management activities is undertaken.

Importance of welfare measures

Welfare in the border sense means well-being of the personnel

working in the organization. Welfare measures are the steps taken by the

management to create a good environment in which the workers feel

satisfied both physically and mentally and in the end produce best result by

putting their maximum efforts.

welfare measures directly relates to human and in particular

workers of an organization. In the initial stage of industrialization, welfare

measures of personnel in an industry were given very less importance. The

primitive concept of workers linked it is to a commodity or an intimate

object without any human characteristics. Thus came the concept of labour

as the machine, which has to be kept in a good working order with proper

lubrication to enhanced production, but still regards as lifeless. There was

also the goodwill concept of labour, which was the begining of the

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

was only the 'citizen concept of labour that gave the workers human dignity

with the right to discuss, decide and vote as a citizen of a welfare state. This

concept gave rise to the philosophy of industrial democracy. And now, we

are in the final stage of the partnership concern where labour is regarded as

an equal and responsible partner in industry.

46

some of the prominent act are

1. Factories Act, 1948

2.Mines ACT,1952

3.Workermen's Compensation Act 1923.

4.Maternity benefits Act,1961.

5.Employee's State Insurance Act, 1948

6.Emplyee's provident Fund and Miscellaneous provisions Act,1952.

7.Payment of Gratuity Act 1972.

Factories Act.1948

The Main focus of the Act is on employees Health, welfate and

Safety. In so far is Welfare is concerned, the Act provides for provison of on

facilities for washing, storing and drying clothing, first aid, canteens,

shelters, rest rooms and lunch rooms, creche etc. It is the responsiblitiy of

47

the employer to provide the above statutory welfare facilities under this Act.

Mine's Act.1952

The aim of this Act is to provide a consolidated law relating to the

regulation and safety of labour in mines. The Act provides for safety, health,

and welfate amenities of persons working in minds.

The workmen's compensation Act 1923

This provides for the payment to the workmen compensation for

injury by accident, arising out of and in the course of employment. In case of

death/disablement, compensation is payable

Maternity benefit Act 1961

The object of the Act is to provide for Maternity Benefit and certain

other benefits 3 women employees working in factories and other

establishments. Leave with pay of 12 Weeks for the purpose of maternity

related confinement and six weeks for miscarriage/abortion is required to be

given by the employer to women employees, under this Act.

Employee's State Insurance Act 1948

The main objective of ESI Act is to provide the certain benefits to the

employee's case of sickness, maternity and employment injury. The Act

provides for sickness benefit, disablement benefit, and depended benefit

subject to periodicl payment by the injured employee. The ESI Act is

48

applicable to the employees working in the covered establishments of the

notified area.

Employee's provident Fund and Miscellaneous provisions Act 1952

The main object of this Act is to provide for provident Fund,

Employee pension id Deposit linked Insurance for employees working in

Factories and other establishment. The Act contemplates a contribution by

the employer towards PF. It also provides for an employee pension, out of

the contributions made by employer as prescribed in the Act and scheme.

Employees are allowed withdraws for certain specific purpose like, House

Building: Children's marriage/education etc.

Payment of Gratuity Act 1972

The Act provides for payment of gratuity to employees working in

factories, mines etc. The Act enjoins upon the employees to pay gratuity at

the rate of 15 days wages for every completed years of services with a

ceiling of 20 months wages (overall; ceiling Rs.3.5 Lakhs ) to employees

who have put in minimum period years of service. In case of death of an

employee the minimum period condition is relaxed.

AGENCIES OF LABOUR WELFARE IN INDIA

There are several agencies through which various labour

welfare measures are undertaken. However, the Central as well as the State

Governments are the important agencies through which labour welfare

activities are undertaken.

49

In accordance with the Article 44 of the Constitution,

various labour legislations have been enacted by the Central and State

Governments, which have laid down the minimum standard of working

conditions. Therefore, employers have to function as agencies of labour

welfare. Apart from the state and employers, workers organisations, local

bodies and social organisations are also functioning as agencies of labour

welfare.

WELFARE AND SOCIAL SECURITY MEASURES

ONGC draws its strength from 40,000+ strong manpower and

always values its people. As a 'Company that cares', it generously extends

several welfare benefits to its employees in the areas of medical care,

education, housing, recreation and social security.

To develop women employees, ONGC has set up a Women

Development Forum at every Asset/Basin of the Company to look after the

welfare, improvement in work in conditions, training and development, and

redressal of grievances of women employees.

LEAVE FARE ASSISTANCE

Employees and members of this families are eligible for leave fare

Assistance(LFA) after putting one year's service as under:

50

Employees posted at their home-

towns

Once in a block of four years to antny pl any

place in India.

Employees posted at other than

home-town

Once in each calendar year to home-=town and

once in a block of four years, in lieu of one LFA

for home, to any place in India than home-town,

However in any calendar year, LFA may be

availed of only once.

The term "family members" for the purpose of LFA includes parents,

children residing with and wholly dependent on the employee. Unmarried

sisters and minor brothers are also included in the "family members' for

employees who joined ONGC on or before 1st June 1987.

EDUCATION FACILITIES

(a) Central school

ONGC take special interest in the overall development of the

children of its employees. In pursuance of this objective, ONGC has funded

setting up of Kendriya Vidyalayas (Central Schools) at its main work

Centres like Nazira, Sivasagar, Ankleshwar, Baroda, Mehsana, Dehradun,

Cambay, Agartal , Jorhat, Silchar, Lakwa, Ahmedabad, Panvel, Harzira and

Rajahmundry.

(b) Children Education Allowance:

In addition to setting up of schools, ONGC reimburses tution fee and

stationery charges to the employees.

(c) Merit Scholarship

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ONGC grants Merit Scholarship to the meritorious students from vth

Standard to xth Standard, Intermediate, Graduate, Post-graduate and

Professional Courses.

(d)Journey Fare

Children of ONGC employees studying at a place other than the

place of posting of the employees are paid second class fare during approved

vacation twice a year from the educational Institution to join their parents at

the place of posting and back. This fare is admissible where journey is more

than 150 kms.

(e) Special Award scheme

In order to encourage brilliant and meritorious wards of the

employees and to include them to maintain and improve level of their

excellence, Special Awards are granted to those wards of the employees who

secure positions amongst first then on the merit list of the Board/University

examinations and all India competitions.

(f) Hostel Subsidy

ONGC grants Hostel Subsidy to the Children of ONGC's employees,

who stay in a hostel or residential school for the purpose of their academic

pursuits.

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(g) Scholarships for SC & ST Students

As a social welfare measure, ONGC has introduced Scholarship

Scheme to encourage deserving students of SC/ST Community for

undertaking higher education. The Scholarships are granted to SC/ST

Students pursuing full-time studies in Graduate Engineering Courses from a

College or an Institution recognized by Central or State Government.

MEDICAL FACILITIES

ONGC has a generous medicare scheme for its employees, their family

members and dependent parents, which can be availed at specialized centres

of certain work centres and also at reputed medical centres in the country.

Medicare is also extended to all retired employees and their spouses, at

par with those in service, on a nominal contribution.

SOCIAL SECURITY

In order to provide adequate social security cover to the employees, ONGC

has introduced a Composite Social Security Scheme with effect from june

1998.

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

date of its introduction. A contribution of Rs.260/- per month from the

executives and Rs.130/- per month from non-executives shall be dedicated

and equivalent amount be contributed from the company's fund.

The benefit to the dependents /employees on death while in service /

53

permanent total disablement resulting in separation from the Corporation is

Rs.10 Lakhs in the case of executives and Rs.5 Lakhs to non-executives.

COMPENSATION FOR ACCIDENT WHILE ON DUTY

The employees of ONGC who met with accident while on duty, are

eligible for compensation under the Workmen's Compensation Act, 1923.

The employees of ONGC who sustain permanent total disablement or

die due to accident or H2S exposure while on duty, are paid financial

assistance of Rs.1.8 lakhs to Rs.12.00 Lakhs depending on the case. This

amount is in addition to all other benefits / relief available to the employees

under various schemes.

GRATUITY

ONGC grants gratuity under ONGC (Death, Retirement & Terminal

Gratuity) Rules, 1995, to its employees for their good, efficient and faithful

services. This gratuity shall be payable to an employee on termination of

his/her employer on superannuation or on retirement or resignation or on

death or disablement due to accident or disease, after rendering continuous

service of not less than five years. The condition of five years services shall

not be necessary where termination of employment of any employee is due

to death or disablement.

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

emoluments including DA ) for each completed year of service or part

thereof in excess of six months.

CONTRIBUTORY PROVIDENT FUND

54

With the objective of making some provisions for the future of the

employee after his/her retirement and for the dependants in case his/her

early death and to cultivate a spirit among the employees, ONGC has

introduced contributory provident fund system. All the employees of ONGC

are regulated by ONGC Employees Contributory Provident Fund

Regulations. Every employee except a trainee or an apprentice has to be a

member of the Fund from the date of his/her joining ONGC.

Every employee has to subscribe equivalent of 12% of salary and

Corporation contributes an amount equivalent to the employees' compulsory

contribution.

Employees are granted advances out of their own share of

contribution for meeting the expenses of the marriage of dependants, higher

education of children, religious ceremonies etc.

POST RETIREMENT BENEFIT SCHEME

The ONGC Self-Contributory post Retirement and Death in Service

Superannuation Benefit Scheme' (PRBS) has been in operation since

01.04.1990 for executives and from 16.11.1995 for non-executives of

ONGC, in order to meet Post-retirement needs of employees and to provide

safety net during the service. This is in lieu of Employees Pension Scheme,

1995 and has been implemented with due approval of the Ministry of

Petroleum and Natural Gas, Government of India, and the Trust thereof has

also been duty recognised by the Income Tax Authorities.

The Scheme is compulsory for all employees of ONGC and self-

contributory. ONGC also contributes Rs.100/- per annum. The employees

are admissible for pensionary benefits upto a maximum upto a maximum of

55

50% of salary depending upon reckonable service as computed in terms of

the Scheme. Eligibility for pensionary benefit requires minimum 10 years of

continuous and contributory service with ONGC. Refund of contribution is

also admissible to the employees in the event of cessation of employment

with out rendering minimum service of ten years.

'AGRANI SAMMAMN'M EX-GRATIA BENEFIT SCHEME

ONGC has recently introduced 'Agrani Samman Ex-gratia Benefit

Scheme for its employees of pre-15.10.1959 and post 14.10.1959, who have

superannuated / voluntarily retired / died while in service after rendering a

minimum ten years of service.

Under this Scheme the beneficiaries will be admissible for ex-gratia

ranging from Rs.750/- to Rs.6,000/- per month depending upon their pay

scales at the time of their separation from the Corporation.

After death of the ex-employee, the spouse is eligible to 50% of the

ex-gratia amount that was / would have been admissible to the deceased

employee.

HOUSING

ONGC strives to provide comfortable housing as far as possible to its

employees. ONGC has Constructed about 144 residential blocks for its

employees at its base complex at Rajahmundry. In addition, ONGC has also

provided accommodation to those employees, who could not bring their

56

families to their place of posting for various reasons like children education,

at a nominal rate of rent.

ONGC pays house rent allowance to those employees who reside in

their own houses or leased houses.

ADVANCES

ONGC encourages its employees to build / acquire residential

accommodation through a liberal House Building Advance at a nominal rate

of interest after they complete seven years of service.

The employees can also purchase a two-wheeler or a car by way of an

advance, for which they can claim the appropriate vehicle maintenance and

fuel cost reimbursement.

The employees of ONGC can also purchase a computer by way of an

advance.

REST & RECREATION

Holiday Home

ONGC promotes the culture of taking time off to relax any where in the

country for a period of ten days. Employees can visit any station in India

either alone or with their family members or can visit such place

57

independently but not more than in two batches/groups in all, once in a

block of two calendar years.

Clubs

ONGC has established Officers Clubs and Staff Recreation Clubs at a

nominal membership fee ) in almost all its work centres for informal get

together of its employees and their family members.

Sports Councils

ONGC places special emphasis on physical fitness and promotes a spirit of

competitiveness through employee's participation in various tournaments /

meets organised by the Sports Councils / Sports Control Board. ONGC is a

member of Petroleum Sports Council Board (PSCB). Excellent

infrastructural facilities exist for various sports like Squash, Tennis, Hockey,

Football, Badminton, Table Tennis, Billiards, Cricket etc.

ONGC Himalayan Association (ONGCHA)

Through the ONGC Himalayan Association, ONGC encourages

participation of its employees in adventure sports like mountaineering, river

rafting, desert safaris etc.

SPICMACAY-The Society for the promotion of Indian Classical Music

among youth

ONGC Chapter of SPICMACAY integrates our cultural diversities by

exposing ONGC families to performances by eminent artists / vocalists /

58

dancers / musicians.

Employees Welfare Committees

To organise, maintain and improve various welfare amenities, ONGC has

setup Employee Welfare Committees in all its work centres. These

Committees are responsible for promoting local sports and cultural activites

at respective work centres.

Associations

ONGC encourages dialogue with various association which look after the

interest of diverse groups of the ONGC family. For instance there are

Association of Scientific & Technical Officers (ASTO), All India SC/ST

Employees Welfare Association, Employees Union, WIPS (Forum of

Women in public Sector ) etc. ONGC also provides equal opportunities and

en empowering environment to its women employees.

Social Development

Apart from its objectives and mission to achieve self-reliance, ONGC pays

social attention to the social development and economic upliftment of the

local populace and environment in which it operates. ONGC has adopted

villages, assisted local bodies in building roads, bridges, school buildings

and provided assistances to various minority groups through community

development programmes.

CLEANLINESS

59

The Rajahmundry Asset of ONGC has shifted its administrative office to

its won premises constructed as its Base Complex. The Building is

maintained cleanly in good hygienic conditions by engaging about 60

labourers.

LATRINES, URINALS, WASH BASINS

The new office building consists of three floors, divided into three wings.

Each wing has been provided with adequate number of latrines, urinals,

wash basins at appropriate places and are maintained regularly.

VENTILATION AND LIGHTING

The new office premises is built in the midst of a beautiful mango garden

and all the rooms are spacious and sufficient ventilation and lighting is

provided in each and every room. The entire office premises are being

Centrally air-conditioned shortly.

CANTEEN

A full-fledged canteen with all infrastructure facilities is provided at base

office for the employees of the Asset. The canteen is being run by a

contractor and tea, coffee, Snacks, meals etc. are provided to the employees

on payment basis.

At the drill sites and other installations, catering facilities are provided to

the employees, round-the-clock at free of cost.

DRINKING WATER

Drinking water facilities are provided adequately at base office as well as

60

drill sites and other installations. Drinking water is supplied through electric

water purifiers.

REST ROOMS

There is a rest room for lady employees in the base office with all required

facilities and at drill sites, air-conditioned accommodation is provided to the

employees working there.

REMOVAL OF WASTES AND ENVIRONMENT PROTECTION

Wastes and effluents are removed from time to time both at drill sites and

at offices. For this purpose of number of house-keeping personnel are

appointed to maintain good hygienic conditions.

KITS & LIVERIES

ONGC is always in forefront to provide safety to its employees. The

Corporation is providing its employees, working at drill sites, uniform,

shoes, helmets, dungarees. socks, gloves etc for the safety of its employees.

ONGC is spending more than sixty lakh rupees a year on account of kits &

Liveries.

Safety and Environment Management (SEM)

Safety and Environmement Management set up in Rajahmundry Asset

of ONGC with a multidisciplinary approach ensures that safety and

environment protection are integrated at all work places.

61

TREE PLANTATION

Tree plantation - A sure step towards environment protection.

Realising the importance, tree plantation has been taken up a regular activity

in ONGC. Every year, a take plantation, but also to spread awareness among

public to give due regard and respect to trees and concern for overall

environment protection.

Training

There is a Staff Training Institute in the ONGC Rajahmundry Asset is

imparting training to employees to sharpen their knowledge, skills and

abilities. Non-executives were sent for trainings conducted by Central Board

of Workers Education at Visakhapatnam under Ministry of Labour,

Government of India.

WOMEN DEVELOPMENT FORUM

The Women Development forum in the Asset was established in

1998. Since then, the Forum has played a constructive role in the activities

of the Asset

ONGC MAHILA SAMITI

The Mahila Samiti is an association of the wives of ONGC

employees. The Mahila Samiti is making pioneering efforts in helping

women from poor families, old age homes and physically challenged

women. The association is closely working with the Rajahmundry Asset in

62

the implementation of its socio-economic development programmes.

VOCATIONAL EDUCATION CENTRE FOR WOMEN

ONGC Rajahmundry Asset started Vocational Education Centre for

Women at Rajahmundry and Amalapuram in 1998. Presently the vocational

Education Centre is conducting Tailoring, Beauty Culture, Embroidery and

Fabric Painting, Spoken & Written English and Computer Awareness

Courses and Distributing Certificates and scholarships to the trained women.

Employees Welfare Committee

As part of the ONGC policy on welfare measures to its employees,

Rajahmundry Asset has setup an 'Employees Welfare Committee' to

organise, maintain and improve various welfare amenities. This committee

is responsible for provision of indoor and outdoor games, sports, athletic

activity, cultural activity, library-cum-reading room etc.

LIBRARY

A full-fledged library with all relevant technical, scientific, general books

and periodicals has been established Rajahmundry Asset for knowledge and

reference of the employees.

SPORTS

Rajahmundry Asset of ONGC is marching ahead in development the

infrastructure facilities for sports and excelling in the sports arena of ONGC.

At Rajahmundry there are numerous sporting facilities like lawn tennis,

table tennis, squash, indoor badminton, golf, skating, football, basket ball.

63

At ONGC Base Complex there is a fully equipped gymnasium and a

children park.

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

Serial Number Responses No. of Responses % of responses

1 YES 190 95%

2 NO 0 0%

64

3 PARTIALLY 10 5%

TOTAL NO.

OF

RESPONSES

200 100%

Source: Questionnaire

The above table depicts respondent’s viewpoint to the extent of awareness of

welfare measures. 95% % of them are totally aware of the welfare

measures. 5% Of them partially aware of the welfare measure and 0%

are not aware of the welfare.

From the above analysis we can know that all of them are totally aware of

the welfare measures providing for employees in the O.N.G.C but, very few

are not aware due to the communication gap and also few of them are not

clear but what comes under welfare measures.

65

95%

0%

5%

YES

NO

PARTIALLY

2.How do you come to know about the new welfare measures being

introduced in the organization?

Serial Number Responses No. of Responses % of Responses

1 Through your

superiors

0 0%

2 Co-Workers 10 5%

3 Circulars 180 90%

4 Unions 10 5%

Source:Questionnaire

From the above table we can depict that 90% of the employees come to

know about the new welfare measures being introduced in ONGC through

circulars and next comes to the 5 % of the employees come to know by

workers shown in the table . Rest of the responders comes to know 5%

through unions, and 0% from their superiors.

66

0% 5%

90%

5%THROUGH YOURSUPERIORS

CO-WORKERS

CIRCULARS

UNIONS

[1] Statutory Welfare measures

1.Canteen Facilities

Responses Very Good Good Satisfied Poor

a.Food 10 50 80 60

% of Responses 5% 25% 40% 30%

b.Environment&Hygiene 10 80 70 40

% of Responses 5% 40% 35% 20%

67

Source:Questionnaire

[a] Food

From the above table we can depict that above 70 % of the employees are

above the satisfaction level regarding the canteen facilities providing in the

organization. And 30% of the responders are not satisfied with the facilities

providing in the O.N.G.C

5%

25%

40%

30%VERY GOOD

GOOD

SATISFIED

POOR

68

5%

40%

35%

20% VERY GOOD

GOOD

SATISFIED

POOR

[b]Drinking Water

Serial Number Responses No. of Responses % of Responses

1 Very Good 10 5%

2 Good 50 25%

3 Satisfied 60 30%

4 Poor 80 40%

Total No. of

Responses

200 100%

Source:: Questionnaire

From the above table we can depict that that 60% of the respondents are

above the satisfaction level regarding the water facilities providing for the

employees at their shop floors.And 40% of the employees are not satisfied

with the drinking water facilities providing for them.

69

5%25%

30%

40%VERY GOOD

GOOD

SATISFIED

POOR

4.First Aid Facilities

Serial Number Responses No. of Responses % of Responses

1 Very Good 30 15%

2 Good 100 50%

3 Satisfied 60 30%

4 Poor 10 5%

Total No. of

Responses

200 100%

Source:: Questionnaire

From the above table we can depict that 15 % of them are saying that the

first aid facilities providing at work area are very good and 50 % saying

good with the facilities . 30% of the employees are satisfied with the

facilities.And lastly 5 % of the respondents are poor with facilities.

70

15%

50%

30%

5%VERY GOOD

GOOD

SATISFIED

POOR

5.Toilets

Serial Number Responses No. of Responses % of Responses

1 Very Good 30 15%

2 Good 100 50%

3 Satisfied 60 30%

4 Poor 10 5%

Total No. of

Responses

200 100%

71

Source: Questionnaire

From the above table we can depict the regarding the toilets in the ONGC

Organization are about 95 % of them responded above the satisfaction level

and 5 % of them are not satisfied . once if we see the analysis that most of

the employees responded above satisfaction level regarding the maintenance

of the toilets in ongc. But 5 % of them are not satisfied with the toilets

because of poor maintenance and they should be clean for every short period

of time.

15%

50%

30%

5%VERY GOOD

GOOD

SATISFIED

POOR

6.Leave Facilities

Serial Number Responses No. of Responses % of Responses

1 Very Good 120 60%

2 Good 50 25%

3 Satisfied 30 15%

4 Poor 00 0%

Total No. of

Responses

200 100%

72

Source:Questionnaire

The above table depicts that the respondents are very much satisfied with the

number of leaves they are having. And we cannot take those number into

count who are not satisfied because as it was very minute percentage below

1%. We can say that the leaves for ONGC employees are more than they

required. As the employees are having adequate number of leaves they are

totally satisfied in this welfare measures.

60%25%

15% 0%VERY GOOD

GOOD

SATISFIED

POOR

7.Safety Provisions

Serial Number Responses No. of Responses % of Responses

1 Very Good 50 25%

2 Good 90 45%

3 Satisfied 50 25%

4 Poor 10 5%

Total No. of

Responses

200 100%

73

Source:: Questionnaire

From the above table we can depict that the respondents about safety

provisions are mostly 95 % of them are above the satisfaction, and 5% of

them have responded that the t of safety facilities are poor with that of

safety providing in the O.N.G.C

25%

45%

25%5%

VERY GOOD

GOOD

SATISFIED

POOR

[2]Non-Statutory welfare measures

1.Educational Facilities For Employee Children

Serial Number Responses No. of Responses % of Responses

1 Very Good 110 55%

2 Good 80 40%

3 Satisfied 10 5%

4 Poor 00 0%

Total No. of

Responses

200 100%

74

Source:: Questionnaire

The above table depicts that 45% of the employees are satisfied with the

educational facilities provided to them. 55 % of gave an excellent opinion

over the educational facilities..

55%40%

5% 0% VERY GOOD

GOOD

SATISFIED

POOR

2.Medical Facilities

Serial Number Responses No. of Responses % of Responses

1 Very Good 150 75%

2 Good 50 25%

3 Satisfied 00 0%

4 Poor 00 0%

Total No. of

Responses

200 100%

75

Source: Questionnaire

Almost all of the employees are satisfied with the medical facilities.

75 % are highly satisfied with facilities provided by O.N.G.C. There is no

unsatisfied employees. As a major portion of the employees are satisfied

with the medical facilities due to free treatment.

75%

25%

0%

0% Very Good

Good

Satisfactory

poor

3.Housing Facilities

Serial Number Responses No. of Responses % of Responses

1 Very Good 100 50%

2 Good 90 45%

3 Satisfied 10 5%

4 Poor 00 0%

Total No. of

Responses

200 100%

76

Source:Questionnaire

From the above table we can depict that 50 % of the employees have

responded that the housing facilities are very good and 45 % have

responded they are good 5 % are satisfied and only few of % are not

satisfied with the facilities providing for the employees at quarters.

From the above analysis we can conclude that most of hem are above the

satisfaction level regarding the facilities at quarters.

50%45%

5% 0% Very Good

Good

Satisfactory

poor

4.Co-operative Society

Serial Number Responses No. of Responses % of Responses

1 Very Good 30 15%

2 Good 90 45%

3 Satisfied 70 35%

4 Poor 10 5%

Total No. of

Responses

200 100%

77

Source:: Questionnaire

The above table depicts that 95 % of the employees are above satisfied with

the co-operative societies due to the nearness from resident, discounted

price.35 % of the employees are satisfied. A negligible 5 % are unsatisfied.

This figure suggests that 95% of total employees are satisfied with the co-

operative societies due to large number of items available at a has a co-

operative store .so it very near to all residents.

15%

45%

35%

5%Very Good

Good

Satisfactory

poor

5.Recreation Facilities

Serial Number Responses No. of Responses % of Responses

1 Very Good 40 20%

2 Good 60 30%

3 Satisfied 50 25%

4 Poor 50 25%

Total No. of

Responses

200 100%

78

Source:: Questionnaire

From the table we can depict that an overall 75% of the employees are

respondendthat the recreation facilities providing in the O.N.G.C are above

the satisfaction level. But 25% of the employees are not satisfied.

20%

30%25%

25% Very Good

Good

Satisfactory

poor

6.Are The Welfare Officers Helpful To You?

Serial Number Responses No. of Responses % of responses

1 YES 140 70%

2 NO 00 0%

3 PARTIALLY 60 30%

TOTAL NO.

OF

RESPONSES

200 100%

79

Source:: Questionnaire

The above table depicts that the 70 % of the employees responded in a way

that the welfare officer are helpful for them but 30% of them are not

satisfied with the welfare officer. From the above analysis we can say that

from the respondents about 70 % of them are agreed with the point that the

welfare officer are helping the employees. The welfare officers by name it

self say that they are here to look after the welfare of the employees working

in the organization. But30 % of them are not satisfied because the reasons

may be personal. When ever they didn’t get their work done or things may

not happen in their favour the responses will be negative regarding the

welfare officers.

70%0%

30%YES

NO

PARTIALLY

7.Are You Satisfied With All The Welfare Measures Providing In The ONGC

Serial Number Responses No. of Responses % of responses

1 YES 160 80%

2 NO 0 0%

3 PARTIALLY 40 20%

TOTAL NO.

OF

RESPONSES

200 100%

Source:: Questionnaire

80

The above table depicts that most of the employees responded that80 %

have agreed that welfare measures providing to the employees in the ongc

are good and they are satisfied. But20 % of them are not satisfied with the

welfare measures providing to them

80%

0%

20%

YES

NO

PARTIALLY

81

FINDINGS

1. The Welfare Measures Provided by the company are Good and

Satisfactory.

2. 95% Of the Employees are aware of all the Welfare Measure

Provided by O.N.G.C

3. The Employees are Satisfied With Their Job and also with the Welfare

Facilities Provided to them.

4. The Employees are treated with greater respect and taking care of

their Employees.

5. The Employees are Satisfied with the Incentives given by the

company.

6.The Employees are Satisfied with the Medical Facilities Provided by

the Company.

7.The Cleanliness of work area in the company it is Maintained with

high cleanliness.

8.The Employees are not satisfied with the Canteen facility providing by the

company.

SUGGESTIONS

82

1.There Should be Permanent Display about the Welfare Measures in

the O.N.G.C to make

aware of the Employees.

2.Railway Reservation Facility to be made available with in the Company.

3. Lift facility is not provided in the Office building. If this facility is

considered, it would be useful for the employees like physically

handicapped, pregnant ladies, old aged persons who visit the offices for

their work etc.

4.Canteen facilities should be improved. The quality of the food and the

cleanliness in the canteens should be maintained.

5.It is suggested to provide drinking water through a centralized water

purified system instead of the water coolers, as there may be technical

problems in some of the water purifiers in some blocks or there may be

some other related problems.

6.ONGC has provided generous medical facilities to its employees.

However as most of the employees are residing in the town, the dispensary

is functioning in the town, which is three kilometers away from the based

office and residential colony. If a medical doctor and first aid facility is

provided at the base complex, it would be useful for the employees,

school children during emergencies.

7.There should be provide ATM Facilite with in the premises.

83

8.There is no guest house facility in Rajahmundry for the employees or for

the employees who visit Rajahmundry from other work centres. Whenever

they visit the office, thery are provided accommodation in the hotels. If a

guest house is provided, it would be convenient for the employees and also

reduce the expenditure on accoujnt of arranging accommodation in hotels.

9. Even though there is a residential complex for the teachers of

Kendriya Vidyalaya and the employees of ONGC at base complex, there is

no shopping complex, even for essential commoties like milk, provisions,

and vegetables. For all these things, the residents of the colony are to go

about 2-3 kilometers. If a shopping complex is provided, it would help the

residents at a greater extent and the residential blocks which are still

vacant can be occupied by the employees.

84