PERFORMANCE APPRAISAL at Indian Oil Corporation Limited Mathura Refinery

7/27/2019 PERFORMANCE APPRAISAL at Indian Oil Corporation Limited Mathura Refinery

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Summer Training Project ReportOn

PERFORMANCE APPRAISALAt

Indian Oil Corporation Limited

(Mathura Refinery)

Submitted In Partial Fulfillment of the requirement for the awardof the degree of

MASTER OF BUSINESS ADMINISTRATION

Of

Mahamaya Technical University,Noida

(2011)

By

PRADEEP KUMAR SHARMARoll no-1021270024

UNITED INSTITUTE OF MANAGEMENT GREATER NOIDA

(Affiliated to mtu. University noida)


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DECLARATION

I, Pradeep kumar Sharma a bonafide student of UNITED INSTITUTE OF

MANAGEMENT GREATER NOIDA would like to declare that the project

PERFORMANCE APPRAISAL SYSTEM IN INDIAN OIL

CORPORATION LIMITED (MATHURA REFINERY)

LIMITED submitted a partial fulfillment of MASTER OF BUSINESS

ADMINISTRATION.

PLACE:-

DATE :- PRADEEP SHARMA


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ACKNOWLEDGEMENT

I would like to express my gratitude & add some heart full words for the people who were

part of this project in numerous wayspeople who gave unending support from the

stage of the project was conceived.

In particular I wish to thank Mr. JAGANNAATH BILWARA (Training manager

IOCL) to whom I am highly obliged, for providing me with necessary facilities &

opportunity to complete this project on A STUDY OF PERFORMANCE APPRAISAL

AT IOCL, MATHURA REFINERY

I would also like to express my sincere thanks to Mr MANISH SINHA for his kind

attention, help and guidance at every stage of Project Work.

I also elicit my deep regards to various Other Officers & Staff members of Mathura

Refinery for continuous encouragement & help in finding out relevant informations

without which this project would not be possible. I would also like to show my gratitude

towards Dr.RAJEEV SIJARIA (PRINCIPAL), United Institute of Management,

Gr.Noida for providing me the opportunity to conduct such a useful research.

PRADEEP KUMAR SHARMA


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Table Of Contents

Page no

Cover Page

Certificate (by the Head of the Institute/College)

Training Completion Certificate

Declaration

Acknowledgement

Preface

Table of Contents

Chapter 1. Introduction of the TopicChapter 2. Scope & ObjectivesChapter 3. Literature ReviewChapter 2. Company ProfileChapter 3. Research MethodologyChapter 4.

- Theory to the Topic- Data Analysis & Interpretation .- List of Findings- Conclusion

Chapter 5.

- Limitations- Suggestions/ Recommendations

Bibliography/ List of References

Annexure (s)


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PERFORMANCE APPRAISAL

INTRODUCTION:

A Performance Appraisal is a process of evaluating an employees performance on jobs

in terms of its requirements or we may call it a postmortem of a subordinate performance

by his superior during a predetermined period of time, often the proceeding year.

According to Hegel- It is the process of evaluating the performance and qualification of

the employees in terms of the requirements of the job for which he is employed , for the

purpose of administration including placement, selection for promotion, providing

financial reward and other actions which requires differential treatment among the member

of a groups as distinguished from action all members equally.


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Performance Appraisal is the systematic evaluation of the individual with respect to his/her

performance on the job and his potential for development.

Job Analysis sets out requirement, which are translated into performance standards, which

in turn form the basis for performance appraisal.


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MULTIPLE USES OF PERFORMANCE ASSESSMENT

GENERAL APPLICATIONS SPECIFIC PURPOSES

Developmental Uses: 1. Identification of individual

Needs

2. Performance feedback

3. Fixing transfers and job

Assignments

4. Identification of strength &

Weakness

Administrative uses: 1. Salaries

2. Promotion

3. Retention, Termination

4. Layoffs

Organizational: 1. H.R. Planning

Maintenance 2 . Determining Org. training

Objectives needs

3. Evaluation of Org. goal

Achievement

4. Evaluation of H.R. systems


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Documentation: 1. Helping meet legal

Requirement

2. Useful for future research

GENERAL VIEWS ABOUT

PERFORMANCE APPRAISAL

It is an important topic nowadays in every organization because it can play asubstantial role in influencing motivation and moral of the employee in every respect.

It encourages employees to set up his own objectives for the next period following thereview of his past performance, in order to improve his performance on the job.

Good performance appraisal systems may help the employees to overcome theweakness and improve on his strength, contribute to the growth and development of the

self through helping himself in realistic goal setting, provide inputs to system of

rewards administration.

According to the performance appraisal system, training may be arranged for thoseemployees who have lack of skill. The manager can identify those persons who have


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lack of skills in particular fields and set up training to them. It is an effective

instrument for helping people to grow and develop people in an organizational setting.

A Performance appraisal method developed through an objective study by theparticipation of his employees and in consultation with the expert can serve the various

purposes

It helps an employee to overcome his weakness and to strengthen strong pointsgenerates feedback for employees and their superiors, helps in setting realistic goals for

employees provide inputs for the change oversee and promotion, identify the training

needs, createdesirable work culture and climate, helps employees to identify the key

performance areas.

It helps in giving feedback to the employees on their performance. It also helps in

counseling done in an open atmosphere with positive strokes; it can yield very good

result.


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Performance appraisal system attempts to collect data through Performance appraisalsof the employees in different sales and also their potentiality for occupying higher

positions.

Performance appraisal helps to develop self-renewing capability in the organization.On the basis of performance appraisal, self-correcting system be introduced which

could keep on suggesting changes so that purposeful system may operate in the

organization.

Several assumptions bring reality and give clear cut directions for the employees to putin his efforts.

Participating planning and review increases job satisfaction on the part of appraiserParticipating process also develop appraise by providing an opportunity to learn from

his boss and vice-versa while the appraise may learn more about himself his work, the

expectations of the boss, the companys future plans, the appraiser support

requirements and development need to perform his job effectively. In other words, it

improves communication in the organization.


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It brings about more objectivity in appraisal data and consequently in the promotion

decision. It increases accountability.

PERFORMANCE APPRAISAL PROCESS

UNDER STUDY

To study the performance appraisal method of IOCL, I have personally interacted various

pertinent personnel especially of personnel department of Mathura Refinery and also

interacted secretary of officer association of Mathura Refinery because I felt necessary to

know the different view on the subject matter.

To know the awareness of performance appraisal system, its periodicity, and performance

appraisal factor and whether feedback is provided then what sort of feedback gave by the

immediate supervisor, yearly assessment beside performance appraisal system, the

awareness for promotion policy and factory governing the promotion policy.

I met personally 120 officers of different grades along with set of structured

questionnaires, which were served to all to them to know their views on the subject, and in


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turn their response was favorable.

PERFORMANCE APPRAISAL PROCESS

UNDER STUDY

ESTABL ISH PERFORMANCE STANDARD

I

I

COMMUNICATE PERFORMANCE EXPECTATIONS

I

I

MEASURE ACTUAL PERFORMANCE

I

I

COMPARE ACTUAL PERFORMANCE WITH STANDARD

I

I


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DISCUSS APPRAISAL WITH THE EMPLOYEE

I

I

I NI TIATE CORRECTIVE PLAN

STEP 1- ESTABLISH PERFORMANCE STANDARD

The process of evaluation begins with the establishment of performance standard. At the

time of designing a job and formulating a job description performance standard are usually

developed for the position. This standard should be clear and not vague; and objective

enough to be understood and measured. This standard should be discussed to the

supervisor to find out which different factors are to be incorporated. Weights and points to

be given to each factor and these then should be indicated in the appraisal form.

STEP 2- COMMUNICATE PERFORMANCE EXPECTATIONS

Next step is to communicate these standard to the employees lift to them, would find it

difficult to guess what is expected of them. They make communication effective and

feedback is necessary from the subordinate to the manager. Satisfactory feedback insures


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that information communicated by the manager has been received and understood and in

the way it was intended.

STEP 3- MEASURE ACTUAL PERFORMANCE

The third step is the management of performance to determine what actual performance is

necessary to acquire information about it. We should be concerned with how we measure

and what we measures.

Our sources of information are frequently used to measure actual performance- personal

observation reports, oral reports, written reports.

STEP 4- COMPARE ACTUAL PERFORMANCE WITH STANDARD

Fourth step is the comparison of actual performance with standard and giving grade against

the skills. The employee is appraised and judgment of his potential for growth and

advancement is done.

STEP 5- DISCUSS APPRAISAL WITH THE EMPLOYEE

The result appraisals are discussed periodically with the employees, where good points,

week points and difficulties are indicate and discussed, so that performance is improved.


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The information the subordinate receive about his assessment has a great impact on his

self-esteem and on his subsequent performance.

STEP 6- INITIATE CORRECTIVE PLAN

This step is the initiation of corrective action when necessary. Immediate action can be of

two types- one is immediate and deals predominantly with symptoms; the other is basic

and deals in causes.

Coaching and counseling may be done or special assignment and projects may be set;

person may be deputed for formal training courses and decision making responsibility and

authority may be delegated to subordinates.

STEP 7-REWARD FOR GOOD PERFORMANCE

The final step is the reward for their good performance and the reward can be in the

following forms-

(i) Promotions

(ii) Lateral Moves

(iii) Tack Force assignments

(iv) Over seas Assignments


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(v) Non-monetary reward

(vi) Cash reward (increment, incentive lump sum, stock

option)

LIMITATIONS OF PERFORMANCE APPRAISAL

The ideal approach to performance appraisal is that in which the evaluator is free from

personal biases, prejudices and idiosyncrasies. Inequalities in evaluations destroy the

usefulness of the performance system- resulting inaccurate, invalid appraisals, which are

unfair too. The limitations are as follows-

a) HALO EFFECT

It is a tendency to let the assessment of an individual. One trait influences the evaluation

of the person; on other specific traits the Halo effect refers to the tendency to rate an

individual. Consistently high/ low/average on the various traits, depending upon whether

the raters overall impression of the individual is favorable or not. This means the Halo

effect allows one character is lies; observation or occurrence or either good or bad to


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influence the rating of all performance factors. When the employee is more friendly

towards appraises, a very high rate may be given to unfriendly employee.

b) LENIENCY OR STRICTNESS TENDENCY OR CONSTANT

ERROR

Every evaluator has its own value system, which acts as a standard against which he makes

his appraisal. Some managers have a tendency to be liberal in their ratings i.e. they

consistently assign high values to their employee while at other times they may have a

tendency to assign consistently two ratings. The former tendency is known as positive

leniency error while later as negative

Leniency error The positively lenient evaluate an individual performance higher than it

actually should. Similarly in negative tendency performance is underscored than what it

should be.

c) INDIVIDUAL DIFFERENCES

Some people are more distinct while some are very liberation assigning the factors points.

They are unable to maintain a fair distinction between two individuals.


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d) MISCELLANEOUS BIASES

Bias against employees ground of sex, religion or cast is a common error in appraisal. For

e.g. a higher rating may be assigned employee who belong to some cast or community or

belong to some geographical area.

e) SOCIAL DIFFERENTIATION

Rating is some time embedded by the evaluator style over rating behavior. Social

differentiation makes evaluation using traits criteria unreliable.


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LITERATURE REVIEW

A performance appraisal interview is a primary and important context for the supervisor

and employee to work together to achieve superior performance. A survey of the research

literature reveals that the appraisal interview functions to provide feedback on

performance, to counsel and provide help, to discover what the employee is thinking, to

teach the employee to problem solve, to help the employee discover ways to improve, to

set performance goals, and to discuss compensation. In addition, the literature reveals three

reasons that determine frequency of interview: the nature of the goal of the interview, the

kind of position the employee has in the organization, and the characteristics of the

employee's performance. Research on climate is centered on praise, criticism and the

superior-subordinate relationship, while that on employee involvement in the performance

appraisal process is divided into preparation and actual participation in the interview,


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including goal setting. Future research in this area should investigate employee

development, credibility and interviewer style, evaluation and climate, and rhetorical

strategies.

COMPANY PROFILE

Indian Oil Corporation Ltd. is the largest commercial enterprise in India, the 17th largest

petroleum company in the world and the only Indian presence in Fortune magazines

Global 500 listing of the worlds largest corporations, with a ranking of 189 in fiscal

2003. In the Forbes International 500 list of largest companies outside US, Indian Oil is

ranked 112 and tops the four Indian companies appearing in the listing. Indian Oil has also

been ranked the first in Petroleum Trading amongst the 15 National Oil Companies in the

region in the 2003 Industry Perception Survey conducted by Applied Trading Systems,

Singapore.

A company, Indian Refineries Ltd., was set up in the year 1958 to refined crude oil.

Another company, namely, Indian Oil Company Ltd., was incorporated in the year 1959 to

market the products. In 1964, the refining company and the marketing company were


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merged and Indian Oil Corporation was born. In 1981 Assam Oil Company, a private

sector oil company was nationalized and merged with Indian Oil Corporation Ltd.

As Indias flagship national oil company, Indian Oil alone accounts for 51.2% petroleum

products market share among PSU companies, 42% national refining capacity and 67%

downstream pipeline throughput capacity. For the year 2003-04, Indian Oil sold 47.264

million tones of petroleum products (1.7% growth), its seven own refineries achieved a

throughput of 37.6 million tones (6.5% increase), and the pipeline network transported

44.50 million tones (9.5% increases) of crude oil and petroleum products.

Indian Oil reaches Indane cooking gas to the doorsteps of about 38 million household in

over 2,000 markets through the countrys largest network of over 4,337 distributors. The

countrys leading SERVO brand lubricants from Indian Oil, with over 42% market share

and 450 grades are sold through 9,000 retail outlets, besides a countrywide network of

bazaar traders.

Indian Oil world-class R&D Center has won recognition for its pioneering work in

lubricants formulation, refinery processes, pipeline transportation and bio-fuels. It has


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developed over 2,100 formulations of SERVO brand lubricants and greases for virtually all

conceivable applications-automotive, railroads, industrial and marine-meeting stringent

international standards and bearing the stamp of approval of all major original equipment

manufacturers.

Indian Oil Corporation Ltd. Has Five Divisions-

1. Refineries Division

2. Pipelines Division

3. Marketing Division

4. Research & Development Center

5.Assam Oil division

Indian Oil Blending Ltd. is a wholly owned subsidiary of Indian Oil Corporation and is

engaged in the manufacture of lubricants and greases. In addition, Indian Oil has three

subsidiary companies-

Chennai Petroleum Corporation Ltd. (CPCL),


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Bongaigoan Refinery & Petrochemicals Ltd.(BRPL),

IBP Co. Ltd.

Indian Oil controls 10 of Indias 18 refineries with a current combined rated capacity of

49.30 million metric tones per annum (MMTPA=20,000 barrels per day). Indian Oil

refineries registered a record throughput of 37.63 million tones during the year 2003-04,

surpassing the previous best of 35.3 million tones in 2002-03. Indian Oil refineries also

achieved record overall production of LPG, MS, SKO, HSD and Bitumen.

All refineries units are accredited with ISO 9002 and ISO 14001 certifications.

12 joint ventures are now operational in partnership with some of the leading

International and leading companies.

Indian Oil and ONGC, in a strategic alliance, is pooling their knowledge andresource base to exploit opportunities across the hydrocarbon value chain.

Indian Oil, in a strategic alliance with CMC Ltd., is pursuing opportunities for

applications of IT in its business.


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Indian Oil has entered into memoranda of understandings/collaboration with

reputed companies in India and abroad to take up projects of mutual interest.

A MOU has been signed between the Govt. of Andhra Pradesh and Kakinada Indian Oil, Petronas- Malaysia and Cocanada Port Co. Ltd., for setting up an LNG

project at Kakinada in Andhra Pradesh.

Indian Oil is marketing diesel fuel additive for automobiles in collaboration withElf Antar, France.

Indian Oil and Air BP are collaborating in aviation fuelling business.

For the past two decades, Indian Oil has been lending its expertise to several countries in

areas of Refining, Marketing, Transportation, Training and Research and Development.

These include Srilanka, Kuwait, Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria,

Nigeria, Nepal, Bhutan, Maldives, Malaysia and Zambia.

Indian Oil commitment to quality, safety, health and environment is reflected in the series

of national & international certifications and awards earned over the years.

From the icy slopes of Leh in the Himalayas to Kanya Kumari where the Bay of Bengal &


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Arabian Sea join the Indian Ocean, and from the single Buoy Mooring at Salaya in the

West to the Monasteries at Tawang in the East, Indian Oil lives in every heart and in every

part of India.

Major units

Marketing Division

Registered Office Head Office

Indian Oil Bhavan, Indian Oil Bhavan,

G-9, Ali Yavar Jung Marg, G-9, Ali Yavar Jung Marg,

Bandra (East), Mumbai400051. Bandra (East), Mumbai-400051

Corporate Office Northern Region

3079/3, Sadiq Nagar, Indian Oil Bhavan,

J.B. Tito Marg, 1, Aurbindo Marg, Yusuf Sarai,

New Delhi110049. New Delhi110016

Refineries Division Eastern Region

Indian Oil Bhavan,

Head Office 2, Gariahat Road (South), Dhakuria,

SCOPE Complex, Core2, Kolkata700068

7, Institutional Area, Lodhi road,

New Delhi110003 Southern RegionIndian Oil Bhavan,

Barauni Refinery 139, Nungambakkam High Road,

P.O. Barauni refinery, Chennai600034

Dist. Begusarai861114 (Bihar)

Western Region


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Gujarat Refinery 254C, Dr. Annie Besant Road,

P.O. Jawahar Nagar, Worli Colony,

Dist. Vadodara391320 (Gujarat) Mumbai400030

Haldia Refinery R&D Center

P.O. Haldia Refinery, Sector 13, Faridabad121007

Dist. Midnapur721606 (West Bengal)

Assam Oil Division

Mathura Refinery P.O. Digboi768171 (Assam)

P.O. Mathura Refinery,

Mathura281005 (Uttar Pradesh)

Panipat refinery Subsidiaries

P.O. Panipat Refinery,

Panipat132140 (Haryana) Bongaigaon refinery & Petrochemicals ltd.

P.O. Dhaligaon, Dist. Chirang, Assam - 783385

Pipelines Division

Chennai Petroleum Corporation ltd.

Head Office 536, Anna Salai, Teynampet, Chennai600018

A-1, Udyog Marg,

Sector1, NOIDA201301 IBP Co. Ltd.

IBP House, 34A, Nirmal Chandra Street,

Northern Region Kolkata700013

P.O. Panipat Refinery,

Panipat132140 (Haryana) Indian Oil Technologies Ltd.

SCOPE Complex, Core2,7, Institutional Area

Eastern Region Lodhi Road, New Delhi110003

14, Lee Road,

Kolkata700020 Indian Oil (Mauritius) Ltd.

Mer Rouge, Port Louis, Mauritius.

Western Region


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P.O. Box 1007, Bedipara, IOC Middle East FZE

Morvi Road, Gauridad, LOB 14209, Jebel Ali Free Zone,

Rajkot360003 P.O. Box: 261338.

Lanka IOC Ltd.

20th Floor, West Tower, World Trade Center,

Colombo, Srilanka.

Awards, accreditations and recognitions earned by IOCL

Corporate

Moved up 17 places in the latest FORTUNE GLOBAL 500 listing of the worlds

largest corporations, from 170 in the year 2005 to 153 in 2006 and now it is 135 in

2007; it is also the 2ost largest petroleum company in the world.

Moved up 5 places in the plats TOP 250 GLOBAL ENERGY COMPANY

rankings- from 26th

in 2004 to 21st

in2005. It is the only Indian company to be

featured among the top 25 energy companies worldwide and is also among the top

3 energy companies in the Asia in the listing.

Adjudged Indias No.1 brand by UK-based Brand Finance, an independent

consultancy that deals with valuation of branded businesses.

Conferred the prestigious SCOPE Gold Trophy for Excellence and Outstanding

Contribution to Public Sector ManagementInstitutional Category, for the year


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2003-04 by the Standing Conference of Public Enterprise, the apex body of public

sector undertakings.

Emerged as Indias # 1 corporate in the annual listing of Business world (BW

Real500), Business India (BI Super 100), Business Today (BT 500), The Economic

Times (ET-500) and The Financial Express (FE-500), for the year 2005.

IndianOil, Indias flagship oil company with net sales worth Rs 1,87,224 crores

has maintained its enviable top position by net sales in the ET500 listing released

by Economic Times recently.

IndianOil has been ranked as India's No 1 Company by Business Standard 1000

listing of country's leading industrial companies. With this ranking, it is slotted as

Indias biggest company with consolidated net sales of Rs. 162,418 crore.

In this year's study of Business India's Super 100 (sales in excess of Rs 500 crore),

IndianOil has been ranked 4th in Top 10 Performers of 2006.

Moved up steeply in The Economic Times Brand Equity annual survey of Indias


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Most Trusted Brands, breaking into the top 100 (at 97 in 2005 from 142 in 2004),

and maintained its position as Indias No.1 brand in the Fuel Pump rankings. Indian

Oil also emerged as one of the top 10 service brands in the country in the survey,

climbing to the 8th position this year from 28th position in the previous year.

Listed as Indias Most Trusted Brand in the Gasoline category in the Readers

DigestAC Nielsen survey during the year.

Won the Golden Peacock Award for Innovation in Training for the year 2004-05

from the Institute of Directors.

Bagged a record haul of 13 awards in major categories at the 45th Annual Award ofthe Association of Business Communicators of India, Mumbai, in November 2005,

in recognition of its excellence in business communication among the leading

corporate of India.

Won 5 National Petroleum Management Programme (NPMP) awards for

Excellence in various categories, including Human Resource Management, Women

Development and Creativity & Innovation.

Mr. Sarthak Behuria, Chairman, IndianOil, was conferred the Udyog Ratna award


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by the PHD Chamber of Commerce & Industry.

Three IndianOil sportstars received the coverted Arjuna AwardDeepak Thakur

(Hockey), Abhinn Shyam Gupta (Badminton) and A.Sharath Kamal (Table Tennis).

Awards for Energy Conservation & Environment Protection

Mathura and Haldia refinery won the National Energy Conservation Award-

2005

Panipat Refinery bagged the Jawaharlal Nehru Centenary Award-2005 and the

Energy Conservation Award instituted by the Centre for High Technology and

Petroleum Conservation Research Association respectively

Digboi Refinery bagged the Shri Anil Raj Trophy for the year 2004-05 for

achieving the maximum reduction in energy consumption.

Barauni Refinery won the TERI Corporate Environmental Award of The

Energy and Resources Institute for 2002-03 (Category3) for a case study on


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Installation and commissioning of flue gas scrubbing RFCCU to remove

particular matter and SO2.

Safety Awards

Digboi Refinery earned Level-8 of the International Safety Rating System (ISRS)

by DN, The Netherlands.

Barauni Refinery bagged the Oil Industry Safety Directorate (OISD) Award for the

years 2003-04 and 2004-05 and Salaya-Mathura Pipeline won the OISD award for

2003-04.

Gujarat Refinery and Kandla- Bhatinda Pipeline (KBPL) bagged the British SafetyCouncil Award2004.

HaldiaMourigramRajbandh-Barauni Pipeline and Haldia-Barauni Crude Oil

Pipeline won the Commendation Certificate from the National Safety council of

India for the years 2004 and 2005 respectively.

Six units of Marketing Division won the National Safety Awards instituted by the

Ministry of Labour, Government of India.


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Indian Oil won the Safety Innovation Award for the year 2005 in the category OIL

SECTOR instituted by the Safety and Quality Forum, Institution of Engineers

Quality Award

Panipat Refinery and R&D Centre won the Rajiv Gandhi National Quality

Award.

WHERE WE ARE TODAY

The first Indian Company in Fortune 500 list (Present Ranking: 135)

18th Largest petroleum company in the world

Ranked 279th on Forbes 1000 largest corporations of the world

Asia-pacific # 1 National Petroleum Trader (by Applied Trading Systems,

Singapore2004)

Largest R&D Center in petroleum sector in Asiaholds 140 patent

Largest SAP implementation in Asia-Pacific

Indian Oil created history this year when it became the first corporate to breach the Rs.

Two lakh crore turnover mark, clocking revenues pegged at Rs. 220,779 crore (US $51


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Billion) and profit after tax of Rs. 7499 crore (US $1.73 billion) for fiscal 2006-07.

DEVELOPMENTAL OVERVIEW OF IOCL

1958

Indian Refineries Ltd. was formed with Mr Feroze Gandhi as Chairman.

1959

Indian Oil Company Ltd. was established on 30th June 1959 with Mr S. Nijalingappa as

the first Chairman.

1960

Agreement for supply of SKO and HSD was signed with the then USSR. M.V:

"Uzhgorod" carrying the first parcel of 11,390 tonnes of HSD docked at Pir Pau Jetty in

Mumbai on 17th August 1960.

1962

Guwahati Refinery was inaugurated by Pt. Jawaharlal Nehru.

Construction of Barauni Refinery commenced.


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1963

Foundation was laid for Gujarat Refinery

Indian Oil Blending Ltd. (a 50:50 Joint Venture between IndianOil and Mobil) was

formed.

1964

Indian Oil Corporation Ltd. was born on 1st September, 1964 with the merger of Indian

Refineries Ltd. with Indian Oil Company Ltd.

Barauni Refinery was commissioned.

The first petroleum product pipeline from Guwahati to Siliguri (GSPL) was commissioned.

1965

Gujarat Refinery was inaugurated by Dr. S.Radhakrishnan, the then President of India.

Barauni-Kanpur Pipeline (BKPL) and Koyali- Ahmedabad product Pipeline (KAPL)

commissioned.

IndianOilPeople maintained the vital supply of Petroleum products to Defence in 1965


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War.

1966

The first long-term agreement was signed for harmonious employee relations.

1967

Haldia Baraurii Pipeline (HBPL) was commissioned.

Bitumen and Marine Bunker business began.

1968

Techno-economic studies for Haldia-Calcutta, Bombay-Pune and Bombay-Manmad

Pipelines submitted to the Government.

1969

IndianOil undertook the marketing of Madras Refinery products.

1970

IndianOil acquired 60% majority shares of IBP.

The same was offloaded in favour of the President of India under a Directive in 1972.

1971

Dealership/reservation was extended to war widows, disabled Defence personnel, Freedom

Fighters, etc. after 1971 War.

1972

R&D Centre was established at Faridabad.


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SERVO, the first indigenous lubricant was launched.

1973

Foundation-stone of Mathura Refinery was laid by Mrs Indira Gandhi, the then Prime

Minister of India.

1974

Indian Oil Blending Ltd. (IOBL) became the wholly owned subsidiary of IndianOil.

Marketing Division attained a new watershed with a market participation of 64.2%.

1975

Haldia Refinery was commissioned.

Multipurpose Distribution Centres were introduced at 132 Retail Outlets pioneering rural

convenience.

1976

Private petroleum companies nationalised.

Burmah Shell became BPC.

1977

R&D Centre launched Nutan wick stove.

1978

Phase-wise commissioning of Salaya-Mathura Crude Oil Pipeline (SMPL) began.


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1979

Barauni Refinery and Bongaigaon Refinery and Petrochemicals Ltd. (BRPL) affected by

Assam agitation.

1980

The second Oil Shock was witnessed as a result of Iranian Revolution. Crude Oil price

flared to a new high of $32 per barrel.

1981

Digboi Refmery and Assam Oil Company's (AOC) marketing operations were vested in

IndianOil. It became Assam Oil Division (AOD) of IndianOil.

1982

Mathura Refinery was commissioned.

Mathura-Jalandhar Pipeline (MJPL) was commissioned.

1983

Massive augmentation of LPG storage and distribution facilities was undertaken.

Proposal for the 6 MMTPA Refinery at Karnal was submitted at an estimated cost of Rs

l,181 Crore.


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ALL MAJOR PARTY IN OIL SECTORS

THE MAJOR PLAYERS IN UPSTREAM PART OF OIL &GAS

INDUSTRY ARE:-

OIL (Oil India limited) and ONGC (Oil and Natural Gas Corporation).

ONGC

IOTL

GAIL

PETRONET.

THE MAJOR PLAYERS IN DOWNSTREAM SECTOR ARE:-

IOCL (Indian oil corporation limited),

HPCL (Hindustan petroleum corporation limited),

BPCL (Bharat petroleum corporation limited),

RIL (Reliance industries limited),


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IBP (Indian bharat petroleum)

ASSAM OIL

ESSAR OIL etc

Oil industry is perhapsthe most exiting industry in the history of civilization. Although the

history of oil traces back to seepages of oil as early as 3000 B.C., the real thrill of it started

with the oil boom in the USA. Oil business has been responsible for prosperity, war

intrigues and adventure. Search of oil and gas leads us to some of the most exotic forests,

deserts, and ocean. Perhaps some of the most beautiful man made sights in the world are

offshore platform in Deep Ocean, array of offshore rigs in remote desert or jungle or an

illuminated petrochemical complex at night. Let us understand the importance of oil and

gas industry by looking at its share in the energy supply to the world is provided by oil and

gas. More than 60% of the energy needed in the world is provided by oil and gas.

To understand oil and gas business, one needs to understand a whole spectrum of activities

from oil well to petrochemicals. Its also important to understand the trend and future of

the industry in terms of technology, economics and pricing of energy resources. Energy


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price is very important for the economy of any country. Oil prices have been controlled

from time to time to a high level by the petroleum is that now natural gas is overtaking oil.

During the year 2000, the increase in the energy consumption of the world was 180 million

tons of oil. Out this, share of oil was 20%, share of gas was 55% and that of coal was

15%. It is expected that gas will replace oil as dominant energy provider in near future. Its

cleaner, cheaper and new discoveries and reserves of gas field are coming up in many parts

of the including India.

Very often the question comes up how long the hydrocarbon resources (Oil and gas) will

last. Many predict oil and gas will start depleting in another 20 to 30 years. Its a fact that

although the oil and gas industry will continue to dominate for

several decades from now, at some point of time other forms of energy will take over. So

its just the oil industry but its energy industry.

BIG ACHIEVEMENT IN OIL INDUSTRY

.First To Set Up In India:

Hydrocracker

Riser FCC


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Soaker in Visbreaker

Inferential Control Systems

Diesel Hydro de-sulphuri station Units

Microcrystalline Wax production facilities

IOCL BRANDS

SERVO

With over 42% market share and 470 grades,

The SERVO range of lubricants is used in

Almost every application covering automotive,

industrial and marine sectors.

INDANE LPG GAS

Indian Oil Indane LPGas is used in 40 Million homes as cooking fuel and commands

over 48% market share in India.

INDIAN OIL AVIATION SERVICE

Indian Oil Aviation Services has a market share of 65% with a network of 95 Aviation

Fuel Stations (AFS) Meets complete Aviation Fuel requirements of the Defence


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services.

AUTO GAS

Auto gas (LPG) has been introduced in Hyderabad, Bangalore and Mumbai markets.

PREMIUM FUELS XtraPremium is, in fact, the only

Petrol in India with 91 Octanes

And doped with Multifunctional Additives.

XtraMile, Indian Oils new generation High Speed Diesel with world-classadditives has taken a leadership position in the market.

XTRA POWERIndian Oils XtraPower Fleet Card Program is a complete fleet management

solution

for Fleet Owners / Operators and Corporate which facilitates cashless purchase of fuel &

lubes from designated retail outlets of Indian Oil through flexible prepaid and credit

facilities.

. Swagat HIGHWAY FLAGSHIP RETAIL OUTLETS


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There are 111 such Swagat Flagship ROs planned across the country of which 45

Swagat Flagships have already been commissioned with a complement of fuel and non-

fuel. Non-fueling offering through Best-in-class alliance on exclusive basis wherever

possible (communication, food/rest, healthcare, parking, vehicle care).

XTRA CAREThe launch of XtraCare was the Culmination of a series of plans in retail design, product

and service up gradation, capability training, automation, loyalty programmed retail site

management techniques all benchmarked to global standards. While the industry standard

is to take samples on a quarterly basis, Indian Oil has moved several steps ahead by

introducing fortnightly random sampling with specific importance given to RON

(Research Octane Number) sampling which is truly the definitive test for quality and

quantity. So far over 400 XtraCare ROs have been set up; around 1500 XtraCare ROs will

be ready by end 2006.

Financial Performance

Indian Oils Sales Turnover (inclusive of excise duty) for the year 2005-2006 reached a

new high at Rs. 1,83,204 crore, up by 21.55% as compared to Rs. 1,50,729 crore in the

previous year. However, the Profit After Tax at Rs. 4,915 remained more or less at the

previous years level of Rs. 4895 crore, mainly on account of under-realization on sale of


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four main products.

The Indian Oil Board, recommended a Final Dividend of 125% (Rs. 140 crore) for the year

2005-2006. IndianOil has made the highest ever contribution of Rs. 43,662 crore to the

exchequer during the year in the form of excise and customs duties as well as through

various State-level levies. For the year 2005-06, the Company's Earnings Per Share (EPS)

stand at Rs. 42.08

Fiscal Performance

Indian Oil sold 49.61million tonnes of petroleum products, including exports, during the

year 2005-06 as against 50.1million tonnes in the previous year, an increase of 3.1%.

Domestic sales were up by 2.9% to 48.17 million tones while exports soared by almost 8%

to 1.96 million tonnes.

The Corporation's Gross Refinery Margin (GRM) rose by about a dollar per barrel during

2004-05, at USD 6.2/bbl, as compared to 2003-04. Its seven refineries registered a crude

oil throughput of 36.63 million tonnes with a capacity utilisation of 88.6%. The pipelines

network posted a combined throughput of 43.03 million tonnes during the year.

Customer Service

"Customer Delight" continued to be the key driver of Indian Oils marketing operations in

2005-06. Despite increased competition, IndianOil maintained its leadership in


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downstream marketing during the year 2005-06. Besides retaining large volume

consumers, IndianOil consolidated its position in retail marketing, opening over 1,500 new

petrol & diesel stations during the year. Of these, over 550 were small format Kisan Seva

Kendras in the largely untapped rural sector. IndianOil has also unveiled 94 large-format

Swagat brand petrol and diesel stations on major highways, aimed at providing the highest

economic value to fleet owners besides vehicle care and comfort to drivers. At the end of

fiscal 2005, the IndianOil Group, including IBP Co. Ltd., accounted for an unassailable

15,226 petrol & diesel stations in the country.

During the year, availability of IndianOils branded fuels, XTRAPREMIUM petrol and

XTRAMILE diesel, was extended to many petrol & diesel stations, including those of

group companies. The XTRAPOWER fleet card, which rewards customer loyalty with

incentives, crossed the one million mark during the year.

With IndianOils initiatives in petroleum retail gaining momentum, brand-building is being

given a major thrust. The Corporations branding efforts that started with XTRAPREMIUM

petrol and XTRAMILE diesel have now been extended to a special retail offering named

XTRACARE that primarily targets urban customers, offering them much more than fuels

in terms of quality and quantity. Besides personalised services and top class facilities like

convenience stores, cashless transactions and sanitised washrooms, XTRACARE retail


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stations will have a distinct identity that will differentiate them from the rest.

The major thrust of IndianOils brand-building efforts has been an optimum mix of

thematic and schematic spends. This, in addition to drivers like cricket and well-timed

moves to forge lasting relationships with all stake-holders, including the media, led to

IndianOil being rated as Indias Most Trusted Fuel Pump brand in the latest Economic

Times Brand Equity survey.

Indane LPG cooking gas customer base grew to 433.8 lakhs at the end of 2005-06.

AutoGas, IndianOils auto LPG brand, is now available from 71 outlets in 22 cities, and it is

proposed to raise the number of Autogas outlets to 200 in 2006-07.

In aviation fuel business, which had registered a double-digit growth during the year,

IndianOil maintained a dominant 64% market share.

Investments For Growth

Indian Oil nurtures the vision of growing from a US $ 35 billion turnover company today

to US $ 60 billion by the year 2011-12 with well-coordinated strategic plans, including

clear blueprints for US$ 15.5 billion (Rs 70,000 crore) investments.

During the X Plan period (2002-07), Indian Oil has planned capital investments to the tune


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of Rs. 24,400 crore. For the year 2004-05, the Corporation's capital expenditure at Rs.

6,460 crore was 63% more than that of the previous year. Among the major projects

commissioned was the world's largest single-train Kerosene-to-LAB (Linear Alkyl

Benzene) plant at Koyali Refinery in Gujarat at a cost of Rs. 1,202 crore. For production of

green fuels, a diesel hydro-treater was commissioned at Mathura Refinery at a cost of Rs.

1,046 crore.

REFINING

Indian Oil controls 10 of India's 18 refineries - at Digboi, Guwahati, Barauni Koyali,

Haldia, Mathura, Panipat, Chennai, Narimanam and Bongaigaon - with a current combined

rated capacity of 54.20 million metric tonnes per annum (MMTPA) or one million barrels

per day (bpd).

< IndianOil accounts for 42% of India's total refining capacity.

PIPELINES

IndianOil owns and operates India's largest network of cross-country crude oil and

product pipelines of nearly 7,7300 km, with a combined capacity of 56.85 MMTPA.

< IndianOil owns & operates 69% of India's downstream pipeline throughput capacity.

MARKETING

IndianOil's countrywide network of over 23,000 retail sales points is backed for supplies


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by its extensive, well spread out marketing infrastructure comprising 165 bulk storage

terminals, installations and depots, 95 aviation fuel stations and 87 LPG bottling plants. Its

subsidiary, IBP Co. Ltd, is a stand-alone marketing company with a nationwide retail

network of over 3000 sales points.

< IndianOil caters to over 56% of India's petroleum consumption.

IMPROVEMENT IN SPECIFICATIONS

HIGH SPEED DIESEL

High Speed Diesel (HSD) of 0.5% sulphur was introduced in Metros from April 1996.

Low sulphur HSD of 0.25% sulphur was introduced in Taj Trapezium area in September

1996 and in Delhi from 15th August 1997.

Diesel Hydro desulphurization units (DHDS) at Gujarat, Panipat & Mathura have already

been commissioned for the production of diesel with 0.25% max (by wt.).

MOTOR SPIRIT (MS)/PETROL

Low lead MS was introduced all over India w.e.f. December 1996. Prior to that it was

introduced in all metros in June 1994.

UNLEADED MOTOR SPIRIT (MS)/PETROL

Unleaded MS was introduced in all metros and radial routes in April 1995. ULP (Unleaded

Petrol) has been available throughout India from 1st February 2000.

BENZENE IN MS


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MS with 1% v/v benzene content is being supplied in NCT, Delhi / NCR from 1st

November 2000 and 28th February 2001 respectively. MS with 3% v/v benzene content

is being supplied to Kolkata and Chennai from 1

st

October 2000 and 1

st

July 2001

respectively.

POLLUTION CONTROL

It is the duty of humanity to preserve the earth for future generations, and to make it safe

for the present generation. Universal concern in this respect is shared by Indian Oil as a

responsible Corporate Citizen.

All refineries have been provided with elaborate facilities to control pollution from

different sources like: liquid effluents, gaseous emissions and hazardous wastes.

GASEOUS EMISSIONS

The refineries of Indian Oil have adopted various measures for control of gaseous

emissions. These include:

Use of low sulphur fuel oil

Desulphurization of refinery fuel gas

Taller stacks for better dispersion

Advanced process control system

Energy conservation measures to reduce fuel consumption


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The sulphur dioxide emissions are well below the limits prescribed by the Ministry of

Environment & Forests and State Pollution Control

Boards. In particular, Mathura Refinery has established three ambient air quality-

monitoring stations between the refinery and the city of Agra and a fourth one at

Bharatpur. Utmost care is taken to keep the impact of refinery operations on the air quality

of the surrounding areas at levels, which are well within the stipulated limits prescribed for

sensitive areas

HAZARDOUS WASTES (OILY SLUDGE)

Regarding Hazardous Wastes (Oily sludge), Indian Oil refineries have adopted required

measures to minimise the deposition of oily sludge in crude oil tanks & recover oil from

the sludge generated prior to and during tank cleaning.

Use of chemical surfactants has been practiced at Gujarat Refinery of Indian Oil for in-situ

recovery of oil from tank sludge. Haldia Refinery has successfully tried Mechanical

Liquidation Process to recover the oil from the sludge. Impervious lined pits/secured

landfills have been provided at Mathura, Gujarat, Barauni, Haldia, Panipat and Digboi

refineries. Bioremediation technology has also been tried at Mathura, Barauni, Guwahati &

Digboi


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ECOLOGICAL PARKS

Scientifically designed green belts have been developed at Gujarat Panipat refineries, to

serve as a pollution sink and to enhance the aesthetic look of the refinery area. Extensive

tree plantation has been undertaken by Gujarat, Digboi, Mathura, Haldia & Barauni

Refineries in order to develop green cover

in the vicinity of refinery and townships. Mathura Refinery has planted about 115,000

trees in Taj Reserve Forest near Taj Mahal under 10 Point Initiative of MoP&NG for

environmental improvement Taj Trapezium.

In the midst of the Mathura Refinery, a sprawling area of 18,000 sq. mt. around

the polishing pond has been developed into an ecological park. A large number of

migratory birds have made the ecological park as their habitat. Experts from the Bombay

Natural History Society (BNHS), during their recent visit, identified about 96 varieties of

birds in the ecological park. Similar parks have also beendeveloped at Barauni and Gujarat


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Refineries.

The existence of rich flora and fauna in these parks is a clear testimony of the Clean and

eco-friendly environment in and around the refineries. The other refineries are in the

process of developing such ecological parks.

CRUDE OIL PIPELINES

SALAYA-MATHURA PIPELINE (SMPL)

Indian Oil operates the 1870 km long Salaya -Mathura Pipeline from Salaya (near Vadinar)

in Jamnagar district on the coast of Gujarat to bring crude oil to Indian Oil'srefineries at Koyali (Gujarat), Mathura (Uttar Pradesh) and Panipat (Haryana). Two

Single Point Mooring (SPM) systems are operated at Vadinar to unload the crude oil

received from tankers including Very Large crude oil Carriers (VLCCs) with offshore

pipelines. At Vadinar, Indian Oil has a vast crude oil tank farm of 13 tanks with a total

capacity of 0.773 MMT. Indian Oil also has crude oil storage tank farm at Viramgam

with a total capacity of 0.331 MMT. Another storage tank farm @ Chaksu has six

tanks with a total capacity of 0.219 MMT.After traversing 435 km from Vadinar, the

Salaya-Mathura Pipeline branches off at Viramgam in Gujarat through a 148 km pipeline

to Koyali (Baroda).Further, after 716 km, the pipeline branches off at Chaksu to Mathura

and Panipat.

MATHURA-JALANDHAR PIPELINE (MJPL):

The Mathura-Jalandhar Pipeline was commissioned in 1984. It was designed by IndianOil

with in-house construction supervision. The 763 km long pipeline transports

petroleum products from Mathura Refinery to Jalandhar in Punjab with delivery enroute at

Bijwasan in Delhi and Ambala in Haryana. During 1997, the pipeline was connected to

Panipat Refinery, enabling transport of petroleum products from Panipat Refinery. The

pipeline has a branch line from Sonepat to Meerut and from Kurukshetra to Najibabad via

Roorkee.


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MATHURA-TUNDLA PIPELINE (MTPL):

A 55 km long separate pipeline was also laid from Mathura to Tundla to transport

petroleum products from Mathura Refinery.

CRUDE OIL COMES FROM THREE PLACES AT MATHURA

REFINERY:

1. Bombay High- Indigenous crude, API = 38-40, Sulphur content is 0.2%.2. Nigeria- Bonny light crude ( sweet crude), API = 35.7, Sulphur content is 0.1%.3. Middle East High sulphur crude, API= 31, Sulphur content is 2.5%.

MATHURA REFINERY

FOUNDATION

MATHURA REFINERY was established on 2nd OCTOBER 1973 but was commissioned

in the year 1982 as the sixth Indian Oil Refinery to meet the ever-growing demand of

petroleum products in northwest region of the country. Nestled between the historic cities

of Delhi and Agra, the Refinery at Mathura is situated in the mythical & mystical land of

Lord Krishna. It was set up to meet the growing product demand of north and northwestern

parts of the country including the national capital Delhi & its adjoining are

The first lady Prime minister of India Mrs. Indira Gandhi lays foundation of Mathura

Refinery. It was commissioned on 19th Jan 1982 and Mr. P. Shivshankar did its


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inauguration in July 1982 who was petroleum Minister at that time.

The first distillation process was started on 19th Jan 1982 and Russian Experts and Mr. P.

Shivshankar did its inauguration on 14th May 1983.

Mathura refinery, which is operating at a capacity of 8 MMTPA, receives crude oil through

the 1077km long Salaya Mathura Pipeline (SMPL). The cross-country pipeline, which

starts from Salaya on the west coast of Gujarat, traverses through four states- Gujarat,

Rajasthan, Haryana and Uttar Pradesh.

Besides the crude oil pipeline their two product pipelines through which the refinery

dispatches its products namely- Mathura Jalandhar Pipeline (MJPL) and Mathura Tundla

Pipeline (MTPL). Mainly the refinery processes the three different types of crude oils of

Middle East, Nigerian and Bombay High origin

Over the years the refinery has systematically synchronized technological advances with

care for the environment. Its close proximity to the majestic wonder Taj Mahal adds to the

responsibility towards a cleaner environment

Much before the refinery was commissioned, Varadarajan committee carried out an


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Environmental Impact Assessment study. Based on its recommendations , the refinery

setup four continuous ambient air monitoring stations to ensure that sulphur concentration

levels are below the prescribed limit. These stations, working round-the-clock, are situated

in Farah, Keetham, Sikandra (towards Agra) and also at Bharatpur Bird Sanctuary


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ENVIRONMENTAL MANAGEMENT SYSTEM-

ISO-14001

Oil was the first in Asia and the third in the world to receive ISO-14001 accreditation in

the year 1996 for its environmental management systems. All the seven refineries of Indian

Oil now have the distinction of receiving ISO-14001 certification, including the recently

commissioned Panipat Refinery.

MATHURA REFINERY IS THE F IRST TO-

To have started with two Sulphur Recovery Units along with a stand-by-Unit inIndia.

To have installed single largest crude oil distillation column in India in a 67

meter high engineering marvel.

To have achieved a continuous accident free spell of 14 million man hour, a

unique distinction by any refinery in India.

To hare confirmed to minimum national standards for its effluent treatment ever

since it was commissioned.

To have setup a bird sanctuary within the refinery premises

To have achieved ISO -14001 certification for its environmental management


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system. First refinery in Asia and third in the World.

Government so as to have uniform price in all IOCL units, because of all these

regulations individual performance of each unit is difficult to arise, regulates

prices of the petroleum products.

Set up in India Hydrocracker, Microcystalline wax production facilities

For which a scientific Environmental Impact Assessment (EIA) study was carried

out.

To achieve ISO-18001 for Occupational Health and Safety Management in 1998.

The Refinery bagged the prestigious 5 stars Safety Rating from British Safety

Council, UK in 2002.


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MATHURA REFINERY HAS ALL MAJOR PROCESS UNITS OF A

COMPLEX FUEL OIL REFINERY:

PROCESS TECHNOLOGY YEAR OF CAPACITY

UNIT SUPPLIER COMMISSION

Atmospheric Neftech 1982

8.0MMTPA impromerox port, USSR

Vacuum unit

VisBreaker unit UPO, USA 1982 1.0MMTPA

Fluidized UOP, USA 1983 1.0MMTPA

Catalytic

Cracking unit

Propylene EIL, India 1996 24000TPA

Recovery unit

Catalytic IFP, France 1998 0.46MMTPA

Reforming Unit

Diesel Hydro IFP, France 1999 1.1MMTPA

Desulphurization

Unit

Hydrogen HTAS 1999 34000TPA

Germany

Generation Unit


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Sulphur recovery STORK 1999 3*60MTPD Unit

Netherlands

Once through Chevron 2000 1.2MMTPA

USA

Hydro cracker Unit


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NEW INNOVATIONS IN MATHURA REFINERY

Adopting a pragmatic and progressive approach, Mathura Refinery has recently

implemented some innovative and dynamic concepts.

Some of this include-

Launching of the dynamic concept of TPM (Total Productive Maintenance) in Vis

Breaker Unit (as pilot model). This unique concept aims to bring about a change in

the mindset and work culture of employees, thereby improving productivity in the

long run.

The Refinery has also implemented state-of-the-art decision support system by way

of Linear Programming model RPMS (Refinery & Petrochemical Modeling

Software) for optimum production, planning and Utilization of available resources

for maximum profitability.

VISION


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A major, diversified, transnational, integrated energetic Company, with national

leadership and a strong Environment conscience, playing a national Role in oil security &

public distribution.


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MISSION

o To achieve international standard of excellence in all aspects of energy and

diversified business with focus on customer delight through value of products and

services, and cost reduction.

o To maximize creation of wealth, value and satisfaction for the shareholders.

o To attain leadership in developing, adopting and assimilating state-of-the-art

technology for competitive advantage.

o To provide technology and services through sustained R&D.

o To foster a culture of participation and innovation for employees growth and

contribution.

o To cultivate high standards of Business Ethics and Total Quality Management for

a strong corporate identity and brand equity.

o To help enrich the quality of life of the community and preserve ecological

balance and heritage through a strong environment conscience


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OBJECTIVES & OBLIGATIONS

OBJECTIVES

o To serve the national interest in the oil and related sectors in accordance and

consistent with government policies.

o To ensure and maintain continuous and smooth supplies of petroleum product by way

of crude refining, transportation and marketing activities and to provide appropriate

assistance to the consumer to conserve and use petroleum product efficiently.

o To earn a reasonable rate of interest on investment.

o To work towards the achievement of self-sufficiency in the field of oil refining

and by setting up adequate capacity and to build up expertise in lying of crude

oil/petroleum product pipeline.

o To create a strong R&D base in the field of oil refining and stimulate the

development of new products formulations with a minimize/eliminate their import

and to have next generation products.

o To maximize utilization of the existing facilities in order to improve efficiency and

increase productivity.


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o To optimize utilization of its existing capacity and maximize distillate yield from

refining of crude oil to minimize foreign exchange outgo.

o To minimize fuel consumption in refineries and stock losses in marketing operations

to effect energy conservation.

o To further enhance distribution network for providing assured service to customers

throughout the country through expansion of reseller network as per Marketing

Plan/Government Approval.

o To avail of viable opportunities, both national and global, arising out of the

Liberalization policies being pursued by the Government.

o To achieve higher growth through integration, mergers, acquisitions and

diversification by harnessing new business opportunities like petrochemicals, Power,

lube business, consultancy abroad and exploration production.

OBLIGATIONS

o Towards Customers and Dealers


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To provide prompt, courteous and efficient service and quality

product at fair and reasonable prices.

o Towards Suppliers

To ensure prompt dealings with integrity, impartiality and &

courtesy and promote ancillary industries.

o Towards Employees

Develop their capability and advancement through appropriate

training and career planning. Expeditious redressal of grievances.

Fair dealing with recognized representatives of employees in

pursuance of healthy trade union practice and sound personnel

policies.

o Towards Defense Services

To maintain adequate supplies to defense services during normaland emergency situation as per their requirement at different

locations.

o Towards Community


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To develop techno-economically viable and environment friendly

product for the benefit of the people.

To encourage progressive indigenous manufacture of products and

material so as to substitute imports.

To ensure safety in operations and highest standard of environment

protection in its manufacturing plants and townships by taking

suitable and effective measures.

To improve the condition of Scheduled Castes/Scheduled Tribes in pursuance of

national policies.

PRODUCT AT A GLANCE

PRODUCT NAME TONES (in 000s)

Liquefied Petroleum Gas LPG 215

Naphtha Naphtha 50


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Solvent Naphtha Sol. Naphtha 10

Aviation Turbine Fuel ATF 600

Superior Kerosene Oil SKO 460

High Speed Diesel HSD 2800

Motor Spirit MS 600

Light Diesel Oil LDO 75

Furnace Oil FO 700

Heavy Petroleum Stock HPS 450

Bitumen Bitumen 500

Sulphur(By product) Sulphur 3

Propylene Propylene 10

HUMAN RESOURCES

EMPLOYEE PROFILE

The human resource in Indian Oil was 31,675 strong as on 31.03.2002, of which 9,728 are

in the Officers cadre and 21,947 are in the Staff cadre. There are 5,672 employees from SC

category and 2,097 from ST category. The SC and ST employees constitute 24.53% of the


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total employees strength. There are 2,387 women employees, out of who 692 are in the

Officers cadre and 1,695 in Staff cadre. The women employees constitute 7.54% of total

employees strength.

WELFARE OF EMPLOYEES

Indian Oil continued its endeavor to upgrade facilities and promote the welfare of

employees. With a view to promote employees welfare, Indian Oil brought about

improvements in policies concerning medical facilities, allowances at remote locations,

Productivity Incentive Scheme and Post-retirement medical facilities.

LOAN & ADVANCE

The rules and regulations as set out here under are framed and laid down entirely as a

welfare measures and do not confer any claim, right or benefit to any employee, nor

impose any liability, responsibility or obligation on the corporation and shall not be a

deemed to be a condition of service between the corporation and any such employee-

Loan & Advance includes

House Building Advance Festival Advance Emergency Advance Conveyance Advance

INDUSTRIAL RELATIONS

Industrial Relations in general during the year 2001-2002 in all establishments remained


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harmonious and peaceful. The main area of concern remained the right sizing of

manpower. Most of the new locations were by and large manner through internal

manpower generation. This was possible mainly due to better employees relations

management and the constructive approach of the employees unions.

The recognized union of Eastern Region (Marketing Division) had not signed the Long

Term Settlement (LTS) on wage revision along with other 20 recognized unions, but raised

a dispute which was under conciliation with Dy. Central Labour Commissioner

(Central)


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the general public and the refinery. Information related to organization is conveyed to the

public through media. PR is entrusted in the job of-

Public relation job Community Development Education Hindi Implementation

LAND MATTERS

Land is needed for the establishment or extension of the organization. Keeping some

aspects in mind like-availability of resources, transportation, environmental factors etc

does site selection or the establishment of the factory. A committee is formed for site

selection, which comprises of engineers, civil engineers and HR managers.

Total area-

Refinery site-1081 acres

Township (residence)-229 acres

Water pipeline-162 acres

Some villages are adopted by IOC and look after the welfare and development of village

with a limited budget of each year.


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human resources with world-class excellence through learning and development. IMCL

will facilitate in upgrading the functional knowledge and skills of the employees and also

impart behavioral training.

Advanced management Programme for senior executives titled The Threshold was held

at IIPM during the year in collaboration with Indian Institute of Management, Ahmedabad

for building comprehensive strategic perspective, preparing for Board positions, creating

mindset of stretched targets and quick response, and leading the organization effectively.

Likewise for middle and junior level executives, a Management Development Programme

titles Cutting Edge Strategies to Stay Ahead of Competition was conducted for building

cross-functional skills, preparing for senior management positions, creating integrated

outlook on organizational issues/situations and learning to perform with high vigor and

intensity.

SECURITY

During the year, the Security Department conducted Security Sensitization Programmes at

various locations of Indian Oil throughout the country. Security Inspection Audits of

installations not only generated security awareness but also created a conducive and secure

work environment.

Instructions were issued to units in case of any threat perceptions received from the

Intelligence Bureau to beef up security arrangements. The efforts resulted in no major

security related incident throughout the year in any of the Division.

MEDICAL FACILITIES


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The corporation maintains its own hospitals at the township attached to each Refinery.

Employees along with their eligible dependents residing with them in township are entitled

to get medical attendance from the Corporations hospital. A patient may be referred to an

outside hospital/ specialist by the CMO only in cases where treatment cannot be had in the

Refinery Hospital. Employees at other locations may receive medical attendance from an

authorized medical attendant, as defined under the medical rules, either under Allopathic or

Homoeopathic system.

HOUSING FACILITY

Townships are being maintained in all the Refineries. Employees are allotted quarters in

the townships for which house rent recovery is made from them at prescribed rates. In

other places the facility of leased accommodation and self-lease is available to employees

within the prescribed ceilings.

OBJECTIVE OF PERFORMACE APPRAISAL


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The aim of performance appraisal is to encourage employees to set his objectives for the next

time period following his past performance in order to improve his performance on the job.

These objectives should be mutually agreed, for next twelve months, as far as possible every

employee should be aware of transaction objectives, since they provide a basis for

individuals performance objectives. The other basis is the appraise and the wishes of the

employee himself. In order to set worthwhile defectives, it is necessary.

Objectives of Appraisal includes;

Effective promotions and transfers,

assess training needs etc.

These objectives are appropriate as long as the approach in individual is individual.

Appraisal in future would assume system orientation. In system approach appraisal aims at

improving the performance instead of merely assessing it.

Emphasize is not on individual assessment rewards or punishment but it is on how the

work system affects the individual performance.

SCOPE OF PERFORMANCE APPRAISAL

Performance Appraisal replaces casual expert with formal, systematic procedures.

Employees know they are being evaluated and are told the criteria that will be used in the

course of arrival, indeed knowledge that an appraisal occur co-motivate an employee is to

increased efforts aimed at enhancing outcome of the assessment. Manager and subordinate

are come to meet and discuss common work related problem.

MBO method is helpful in identification of training needs. Employees set their own goals

and hence are internally motivated to accomplish goals.


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In BARS method employees behavior and not their traits are measured. This method aims at

specific dimensions of job performance. People involved in the job participate in finding job

dimensions and the creation of scale. In this method objectivity improves, as basis is specific

behavior.

360-Degree method provides a broader perspective about an employees performance. It

facilitates greater self-development of the employees. It provides communication links

between an employee and his customer.

IMPORTANCE AND PURPOSE

Performance Appraisal has been considered as a most significant and indispensable tools

for an organization, for the information it is highly useful in making decisions regarding

various personal aspects such as promotions and merit increases. Accurate information

plays a vital role in organization as a whole. They help pinpoint weak areas in the primary

system (e.g. Marketing, Finance and Production). It is easier for manager to see which

employee need training or counseling because jobs are grouped by categories (e.g.

Production Engineer, Sales Manager, and Financial Analyst). These categories can be

broken into smaller and smaller group, if necessary. If valid performance data are


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available, timely, accurate, objective, standardization and relevant management can

maintain consistent promotion and compensation policies throughout the total system

To effect promotions based on competence & performance.

To confirm the services of probationary employees upon theyre completing theprobationary period satisfactorily.

Assess the training & development needs of employees.

To decide upon a pay raise.

To let the employees know where they stand in so far as their performance isconcerned and to assist them with constructive criticism and guidance for the

purpose of their development.

To improve communication.

To evaluate whether H.R. programs such as selection, training, transfers are beingeffective or not.

To discriminate between efficient and inefficient workers.

To assign the individual work for which they are best suited.

To prevent employee grievances.


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PERFORMANCE APPRAISAL METHODS IN INDIAN OIL

CORPORATION LTD.

In IOCL the performance appraisal system is divided into 2 parts-

OFFICERS: Executive, Senior Executive

STAFF: Non-Supervisory personnel, Un-Skilled Personnel


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A) Guidelines for filling up Sr. Executive (PDA)

This document will be used in assessment of performance for the period April to

September and October to March. PDA forms consist of 6 parts. Guidelines for filling

various parts are given below

(1) Key Performance Areas

If there are various 100 areas, only for which those are very critical are to be selected to

achieve their main targets or Goals. It is very important to complete the goal within the

limited time.

(a) Direct Critical Output

(b) Teamwork and boundary management

(c) Selfassessment and appraisers comment

(d) Activity

Forward planning InfoTech Customer Delight Subordinate & Self development

(2) Counseling

Counseling to be done after counter signing of the appraisal-

(a) Strengths

(b) Areas of improvement

(c) Appraisers response

(3) Career Profile & Plan


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(a) PDA is based on his career profile & career analysis; Appraise will give his

own preference assignments in his own discipline or outside the discipline.

(b) Appraiser will give his own observations /comment

on the career plan preferences given by appraises.

(c) Appraiser will give his mobility constraints due to personal

Reasons, if any, with time limit.

(d) The duplicate portion of this part will be taken out from

PDA format of necessary action of H.R. Dept.

(4) Overall Appraisal

Appraiser, Reviewing officer & countersigning officer will assess the overall

potential and performance of appraisee in this part.

(5) General

o Drive & selfmotivation

o Team Membership

o Inspiring Trust

o Concern for sub-ordinate development

o Commitment to total organization

o Entrepreneurial

o Managing change

o Strategic thinking

o Boundary management


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o Customer orientation

B) Guidelines for filling up executive (PDA)

1. Annual Performance Appraisal

In this part appraiser will assess the performance of the appraise against various

attributes like

a. Volume of workb. Quantity of workc. Cost consciousnessd. Job knowledgee. Time schedulef. Planning and Organizationg. Controlh. Leadershipi. Communicationj. Initiativek. Dependabilityl. Problem analysis and decision makingm. Training and development of subordinatesn. Team orientationo. Willingness to accept responsibilityp.

Adaptability to change to new ideas

q. People awarenessr. Ability to withstand pressures. Courage of convictiont. Integrity


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2 . Performance Highlights And Additional Information About Appraise

In this part appraiser will write performance highlights of appraisee in two head within

the areas of working covered under achievement where as other contribution by appraisee

(other than routine assignment) will be covered under contribution and at the last he will

write the additional information about the appraisee on various inters.

u. Award or any punishment or pending of any disciplinary.v. Any adverse report or other informationw. Any instance of the office conversing to the outside influence to bear upon the

co-operation.

x. Record of long/ unauthorized absence if anyy. Specific physical/ mental deficiency of disability, if any.z. Membership of the office in Territorial army

aa.Effectiveness in the development, and protection of SC/ST and the liaisonoffice if the officer works in that capacity.

bb.Whether the officer retired from service in the current year, otherwise not inservice at the time of writing the

cc.Annual Performance appraisal.

3. Overall Appraisal

In this part the appraiser reviewing officer and counter signing officer will assess the

overall potential and performance of appraisal


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4. Career Profile & Plan

In this part the appraisee will write the career profiles and plan. The appraisee will give his

own performance for future assignment in his own discipline or outside the discipline.

METHODOLOGY PROPOSED FOR RESEARCH STUDY

Research methodology may be understood as a science of studying how research is done

scientifically. In it we study the various steps that are generally adopted by a researcher in

studying the research problem along with the logic behind them.

Following are the steps and techniques, which were used by the investigator for

methodology: -

6.1 Universe of Study


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Universe covers the whole defined field on which the study is based. The present study

was carried in Mathura Refinery located on the outskirts of Mathura city when one travel

from Delhi to Agra. The environment of this area is very peaceful with green atmosphere.

Various products including petrol and diesel are manufactured from crude oil. The working

staff of Mathura Refinery is 1586. The universe of the study was all working members

included both workers and officers.

6.2 Sample Size

Sample size depends on the nature of the universe so it should represent the whole universe

without any bias. As there was huge manpower in Mathura refinery, so it was very difficult

to study each and every individual. The limitation of time and money has not permitted the

researcher to study the whole universe. So the researcher has studied only 120 individuals

of Mathura Refinery i.e. Indian Oil division and covered nine departments that

were --

Personnel and administration, Finance, Production, Fire and safety, Mechanical, Planning

and Maintenance, Power and utilities, Instrumentation and material department which

represent the whole staff of the organization.

6.3 Sampling Method

Out of various types of sampling methods the researcher had used Random Sampling, as it

was both time saving as well as easy method of picking up the sample. As random

sampling is also of many types so the researcher had used stratified random sampling for

study because it was more reliable. In this method whole population that is required for

study is divided into different groups and sample were selected from them.

Researcher Design


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Designing is preliminary step in every activity. It provides a picture for the whole before

starting of the work. The researcher had used exploratory researcher for gaining

experience. For this relevant literature related with the subject had been carried out. It also

includes experience survey, selection of respondents, proper questioning etc.

6.4 TOOLS OF DATA COLLECTION

Data had been collected through industrial visits. For this following methods were

used:

1. OBSERVATION METHOD: It is a direct method of study and also has

cause effect relationship, the investigator observed working condition, environment

condition, nature of job etc.


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2. INTERVIEW METHOD: From this inner feelings of respondents will come

out and it becomes easy to collect information about qualitative facts. As it is face-

to-face contact between the interviewer and interviewee. This technique had used

by researcher to known some feelings of the respondent from gestures, glances and

facial expression, to observe things from very close.

3. SCHEDULE METHOD: Schedule is a list of questions, which are asked and

filled in by the researcher in a face-to-face situation. It helps in recording those

things, which cannot be memorized. Since all the information is available in a

written manner therefore tabulation and analysis of the data collected will become

easy. In present study interview schedule was used to collect the relevant data,

which comprised the set of 14 questions related with the topic of study.

4. OTHER SOURCES: Secondary data has been used from reports, studies prior

conducted, records, magazines like Indian Oil annual magazines, weekly and

newspaper known as Darpan, which is published by the organization.

All business undertaking operate in the world of uncertainty, Research methodology can

minimize the

Documents

PERFORMANCE APPRAISAL at Indian Oil Corporation Limited Mathura Refinery