Embed Size (px)
Citation preview
LOGISTICS MANAGEMENT ANALYSISRELIANCE INDUSTRIES LIMITED JAMNAGAR
PROJECT REPORTSUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
ONJULY 21, 2004
PREPARED BY
MIHIR G JANIN.R.INSTITUTE OF BUSINESS MANAGEMENT
GLS CAMPUS AHMEDABADGUJARAT UNIVERSITY
CONTENTS PAGE PREFACEACKNOWLEDGEMENTEXECUTIVE SUMMARY
1 INTRODUCTION 05
1.1 History and Background of Reliance 061.2 Introduction to RIL REFINERY DEVISION JAMNAGAR 071.3 Important Features of Jamnagar Complex 111.4 Awards & Achievement of RIL. 13
2 OIL SCENARIO OF INDIA 14
2.1 Refineries all over India 162.2 Current Crude Oil Production & Import 182.3 Current Demand & Consumption for Petroleum Products 192.4 Mode Wise Dispatch 212.5 Challenges to Indian Refinery Sector in Future 232.6 Opportunity for Reliance Industries Limited 24
3 LOGISTIC FUNCTION 25
3.1 Study of Major Logistics Function 263.2 Logistics Management Scope 273.3 Hierarchy of Industrial Working 293.4 Important Act and Regulations 313.5 Company Products 333.6 RIL Logistics Function 34
4 PRODUCT EVACUATION PATTERN 36
4.1 Loading Facilities 374.2 Inventory Management 424.3 Transportation Channels 42
5 STRATEGIES FOR DECONTROLLED SCENARIO 53
5.1 Marketing Infrastructure 585.3 Marketing Strategy 59
6 RELIANCE CORE VALUES AND WORK CULTURE 657 SUGGESTIONS AND RECOMMENDATIONS 708 FUTURE PROJECTS 739 APPENDIX 7910 BIBLIOGRAPHY 80
2
PREFACE
“THE MAN WHO HAS NO IMAGINATION HAS NO WINGS”
Human being enters the world with a raw brain and mind. Until he works out with
his imagination, he cannot reach the soaring heights of success. Study of management
will be worthwhile only if it is coupled with the practical studies and imagination
power.
Practical training, which is a part of management studies intends to provide a student
with sufficient knowledge to develop an equation to connect theory and practical
aspects and thereby gives an opportunity to test and verify application of theory and
comprehends interaction between management concepts and practice.
As a partial fulfillment of the Course M.B.A. (Master of Business Administration),
the candidate is required to undertake a project that would help him to enhance his
knowledge.
It is with great sincerity and enthusiasm that we take up the challenge that this field
has placed before us and hope to succeed with guidance from our professors.
3
ACKNOWLEDGEMENTS
It gives me a great pleasure to express my grateful thanks to Mr. K.K.VAGADIA (V.P. HR) and Mr. G.T.VASHI, who provided this opportunity for the management project training, and also Mr. N. HARIHARAN, Mr. J.T. PANDYA and all faculty members of RIL Learning Center for their co-operation and providing library and other facilities.
I am heartly thankful to Mr. BPN SINHA (V.P. OMC), Mr. DINESH. K. SOTA (DGM--MOG) and Mr. S. K. SHRIVASTAVA (DM-MOG), Mr. SURJIT (DM-MOG), Mr. GUNJAN OJHA (AM-MOG), Mr. ARUN TEJA (AM-MOG) for giving me support and great help to accomplishment of my project.
I am also very thankful to all faculty members of N.R.Institute of Business Management for providing me support and guideline for my project.
This is a Great experience for me that would be helpful to me in my future career too.
4
EXECUTIVE SUMMARY:
TOPIC: LOGISTIC MANAGEMENT ANALYSIS IN RELIANCE INDUSTRIES LIMITED.
In this project, it is describes that the requirement of Logistics Management and its functions to meet the demand of various petroleum and petrochemical products. It shows the characteristics and future projection of oil industry in India. It is felt that systematic analysis of logistic of the petroleum and petrochemical products shall favor in achieving the RIL’s domestic and international marketing goals and targets. The growth of the company is depends on how the logistics management is functioning.
The project report cover the following topics:
Introduction to organizations.
Oil scenario of India.
Logistics functions.
Product evacuation pattern.
Marketing strategy.
Interface with other oil companies.
Strategies for decontrolled scenario.
5
1INTRODUCTION
6
1.1 HISTORY AND BACKGROUND OF RELIANCE
This is the story of company with a vision, of how it grew from being a small trading unit, to be ranked among the 50 emerging market companies in the world. It is the story of how a company helped place India firmly on the world industrial scenario taking with its family, a growing family which include collaborators, suppliers, customers, employees and the largest investor base in the country. It is the story of how a company’s vision has extended to include newer challenges, newer goals. And most of all, it is the story of a company where growth is a way of life.
Reliance began in 1958 as a small trading organization dealing in various commodities including nylon and Rayon. In 1966, Reliance set up a textile complex an Naroda, near Ahmedabad to manufacture textile.
In 1982, Reliance backward integrated by setting up India’s largest Polyester manufacturing plant at the Patalganga complex near Mumbai. On the banks of the river patalganga, 78 KMS from Bombay. By 1988, this complex was part of one of the most integrated manufacturing complex of the world.
In 1991, Reliance began manufacturing PVC & MEG at two new plants at Hazira. Hazira complex near Surat in Gujarat is situated on the banks at river Tapi and is spread over 1000 acres of land. Which is comparable in design and Technology to the best in the world.
Now at Jamnagar in Gujarat, Reliance has built the worlds largest grass roots level petroleum refinery, a petrochemical complex and an independent power plant.
7
1.2 INTRODUCTION TO RIL
RELIANCE INDUSTRIES LIMITED is one of the fastest growing refineries. It is a level global player in the area of petrochemicals. RIL, which is the largest grass roots refinery in the world. RIL is taking a major step forward in the field of petroleum refinery. Refinery and petrochemical complex is situated about 30 kms from the city Jamnagar in Saurashtra region of Gujarat state. Spread over 7500 acres of land. It is the worlds largest single grass roots level refinery, with the highest degree of complexity among all refineries in India.
It is the largest state of the refinery in India, accounting for over around 25% of the country’s refining capacity. The Rs27000 Crore complex being setup by the reliance group at Jamnagar represents the single largest investment ever made by the private sector at any single location in India. Reliance Industries Limited refinery division Jamnagar is equipped to meet the challenges of highest world-class product quality and environment norms and speciation. This will enable RIL to build leadership in domestic markets and effectively compete in export markets.
UOP From the USA, the world leaders in refinery technology has provided the basic engineering and license for the project FOSTER WHEELER, B & V PITCHARD, PROCOR, LINDE & UNION CARBIDE are renowned licensors in their areas and are the know how supplies for cover Sulfur granulation, Hydrogen and Polypropylene respectively. Bechtel internationally reputed engineering contractors had the single point responsibility for technology, engineering, procurement construction management and project management services for the project.
The reasons for choosing Jamnagar as the location for setting up these mega projects are:
Proximity to crude surplus regions i.e.: Middle East Well connected to high demand center pipeline network All weather sheltered port-adequate draft Well connected by Rail, Road and Air Link with Kandla enables RPL to use oil sectors substantial tank age and
evacuation facilities.
“It was the beginning of an unending story”
8
BRIEF OVERVIEWS OF RIL REFINERY DEVISION JAMNAGAR:
The complex mainly consists of: Refinery of RIL. Petrochemical Complex of RIL. Rail Road Tank Farm. Marine Terminal. Power Plant.
Reliance industries has the capacity of processing 30 million metric tons per annum of crude, which contributes approximately 25% of India’s existing refinery capacity.And this will lead Reliance to the country’s largest Private Sector Refinery. The estimated production is 540 Kilo Barrels per Stream Day (KBPSD). RIL will also produce unleaded Gasoline, which is not commonly produced by other Oil Refineries in India.
The superior Technology deployed at Reliance will enable it to meet product specifications of highest international levels. The technology is imported from Bechtel Company (USA), the world leader in refinery technology and this company has provided basic engineering and license for the project.
Refinery business gives a tremendous “backward integration” opportunity for Reliance group with their interest ranging from Oil operations to textile manufacturing, the refining business help the Group to capture the value addition at every stage.
The major reforms of government are:
Decanalising the crude import. Deliscensing of the refinery sector. Infrastructure of refinery. Deregulation of products.
This will lead RIL to healthy “Global” Competition.
The Jamnagar facilities are divided into Complex and Plants:The plants of RIL are divided into Fuel and Non fuel plants.
9
COMPLEX PLANTSFUELS Crude
FCC (Fluidized Catalytic Coker)CokerHydrogenSulfurRTF (Refinery Tank Farm)
NON FULES AromaticsPolypropyleneCPP (Captive Power Plant)*Utilities and Offsites*MTF (Marine Tank Farm)*Marine & Offshore*RRTF (Rail Road Tank Farm)*
IPP (Independent Power Plant)
*- Major Units.
CPP:The Reliance Industries Jamnagar complex has it’s own Power Plant for captive consumption for the entire complex including the Marine Tank Farm and the Township.
Utilities and Off sites:Desalination Unit.Fire Water System.Cooling TowersETP (Effluent Treatment Plant) etc.
MTF:Which has the storage facilities for crude and product and which also has the pipelines of these products up to RTF.
Marine & Offshore:JettiesSPM’s (Single Point Mooring) facilities.JKPL (Jamnagar Kandla Pipeline).
RRTF:It consists of Road, Rail, Costal loading and unloading and pipeline (GAIL) loading facilities.
10
OTHER FACILITIES:
LEARNING CENTRE:
Learning Center is established to center to the learning needs of the employees. This center has in-house facilities and Outsource facilities from time to time, depending on the topics & schedule.
Several classrooms, auditorium, workshops, library and internet facilities are equipped with state of the art equipment for imparting the training are incorporated in the world class learning center.
Besides the planned training lessons, additional viewing of the educational videocassettes & interactive lessons on CD ROM can be arranged on requests.
The learning center is located close to the Main Administration Building on Avenue A.
11
1.3 IMPORTANT FEATURES OF JAMNAGAR COMPLEX
Leading Ranks
• Worlds largest grass root level refinery• Worlds largest FCC, COKER PX plants• Group investment over 6 bn US $• Investment equivalent to 4% of turnover of India corporate sector
The two largest Refineries of India1 Reliance 30 mmtpa2 Koyali 13.70 mmtpa
Total length of plant piping is approximately 5000 kms double the distance from Mumbai to Kolkota.
Total cables length is approx. 14500 kms entire coastline of USA.
Peak construction labor mobilized was 75000 all accommodated in a developed labor colony at site.
Tallest structure is OSBL flare 150 meter Double the height of Qutub Minar.
Largest pipe is 112 inches (Over 9 Ft) diameter, you can drive a Maruti car through it.
Heaviest equipment is C3/C4 splitter 1500 MT.
Desalination plant meets all the requirement of the water.
The refinery site was fully commissioned in 1999 last quarter just 24 months from a green field stage.
12
RELIANCE GROUP OF COMPANIES
LOCATION YEAR PRODUCTNARODA(AHMEDABAD)
1966 APPREAL TEX-TILES “VIMAL” (suiting, shirting, dress material)HOME TEX-TILES (tapestry, curtain)
PATALGANGA(MUMBAI)
1980 PolyesterParaxylenePolyester staple fibreLinear alkyl benzene
HAZIRA(SURAT)
1991-92
Ethylene oxideMono ethylene glycolVinayl chloride monomerPolyvinyl chloride
JAMNAGAR 1999 PETROLEUM PRODUCTS & PETRO CHEMICALS
AWARDS
NARODA 1 ASTM Safety award 1989-96
For achieving disability injury index every year
2 The textile Institute development award
1997 In recognition of the company’s commitment to international standard of quality
HAZIRA 1 ICMA Award 1996 For Environment control strategies and safety in the chemical plants
2 Golden Jubilee memorial trust award
1995-96
For outstanding pollution control program
3 Federation of Gujarat Industrial award
1995 For Environment preservation and pollution control
PATALGANGA 1
2
3
4
Indian merchant chamber award
British safety council awardNational safety awardBaroda productive council first rank trophy
1994
1992
1991
1992-93
For out standing achievement to ward of air and water pollution in industryFor lowest accident rate
For highest accidents free period
For good house keeping contest for petrochemical complex
13
1.4 ACHIVEMENTS/AWARDS:
PATALGANGA
ISO 9002 for all plants & services and ISO 9001 for CES & CTS. Award of honor for 1993,94,95 & 96 from National Safety Council, USA. During 1994,95 & 96 was ranked second amongst the member chemical industries
worldwide. Received Sword of Honor from British Safety Council for 1992,93,94 & 95. Received 5 Star rating from British Safety Council for three consecutive years
1992,94 & 96. Gujarat Safety Council award for lowest Disable Injury index for the year 1992 &
1996. Received first prize in Petrochemical sector for Excellence in energy conservation
and management in 1994-95 and special award in 1996-97 from ministry of power, Govt. of India.
JAMNAGAR:
ISO 9002 for all plants & services and ISO 9001 for CES & CTS. Received Golden Peacock National Quality Award Received 8th IBPL energy conservation award GOLD TROPHY in private sector
for 1997. Best Safety Pace Setters’ Award for the year 2001. Best Safety Pace Setters’ Award for the year 2002. Best Safety Pace Setters’ Award for the year 2003. At Reliance Jamnagar now company brings ISO 18000.
Some of the above Awards are Achieved by Patalganga and Jamnagar Combinely.
14
2 OIL SCENARIOOF INDIA
15
OIL SCENARIO OF INDIA:
Crude oil is the raw material for petroleum products. Crude oil varies widely from region to region and from field to field. Some crude’s are light-colored, mobile liquids; others are thick, treacly or tarry materials. Some have quite pleasant smells Others smell quite disgusting. However all are made up mainly of three types of hydrocarbons, alkenes, cycloalkenes and aromatics.
Major deposits of oil occur in only a fairly limited number of regions. More than half the world’s known reserves are in the Middle East. India has relatively small oil reserves, account for just 0.5 % of the world’s total oil reserves. At the current production rate the reserves are expected to last another 25 years.
India oil production is insufficient to satisfy domestic demand. India has its own crud oil production in Mumbai, Assam etc but in order to meet indigenous demand it has to depend on the import of crude. As a result India is a net importer of crude oil, which account for approximately one third of country ‘s import bill.
Major sources of purchase of raw material:
• Middle east region• Far east region• Northwest region• Singapore region• South America
16
2.1 REFINERIES ALL OVER INDIA There are seventeen Refineries all over India.
15 refineries are in Public Sector. 1 refinery in Joint Sector. 1 refinery in Private Sector.SECTOR SR.NO. REFINERY NAME REGION CAPACITY
(MMTPA)PUBLIC 1 IOC Indian Oil
Corporation
Koyli 13.70Guwahati 1.00Mathura 8.00Panipat 6.00Haldia 4.60
Barauni 4.20Digboi 0.65
2 HPCL Hindustan Oil Corporation Ltd.
Mumbai 5.50Visakh 7.50
3 BPCL Bharat Petroleum Corporation Ltd.
Mumbai 6.90
4 CRL Cochin Refinery Ltd.
Cochin 7.50
5 BRPL Bongaigaon Refinery Ltd.
Bangaigaon 2.80
6 NARIMANAM Crude Distillation Unit Of MRL
Narimanam 0.50
7 NRL Numaligarh Refinery Ltd.
Numaligarh 3.00
8 MRL Madras Refinery Ltd.
Chennai 6.50
JOINT 1 MRPL Mangalore Refinery Ltd.
Mangalore 9.69
PRIVATE 1 RIL Reliance Industries Ltd.
Jamnagar 30.0
17
Total capacity of refineries all over India is 116.04 MMTPA.
Capacity target during Tenth Plan: - 167 MMTPA (31.3.2007)
There are three new joint venture refineries and one private sector refineries.
SECTOR SR.NO REFINERY PARTNERS LOCATION CAPACITY(MMTPA)
JOINT 1 Bharat Oman Refinery Ltd.
M.P. + Oman Oil Company
Bina 6.0
2 Eastern India Refinery ltd.
IOCL + Kuwait Petroleum corp.
Orissa 9.0
3 BPCL BPCL + Shell
Up 7.0
PRIVATE 1 Essar Oil Ltd.
Jamnagar 9.0
18
2.2 CRUDE OIL PRODUCTION & IMPORT:
It is increased rapidly in country in 1980. It was around 34 MT in 1989-90 & it is felt to about 27 MT in 1992-93. The country ‘s production achieved an all time peak of 35 MT in 1995-96. Thereafter the production has stagnated at about 32 MT per year. Production in Gujarat area was about 5.8 MT as per last data received.
With crude oil production stagnating at around 32 MT per year, along with massive refining capacity addition replacing product imports with crude, & demand growing rapidly, the imports of crude oil have rapidly increased in last few years.
CRUDE IMPORT:
YEAR MT
1996-97 & 1997.98 341998.99 401999-00 582000.1 74
During the same period the product Import have dropped down from 22-23 MT in an earlier year to about 9 MT in 2000-01 & further down to 6.5 MT in a year 2002-02.
Self-sufficiency in Oil has dramatically fallen from more than 80% in 1989-90 to 64% in 1990-91 & just 31% in 2000-01.
According to last data received India’s IMPORT/EXPORT.
TOTAL IMPORT RS 2,30,873 CROREEXPORT RS 2,03,571 CRORETRADE BALANCE RS (-27,302 CRORE)
OIL IMPORT RS 71,497 CROREEXPORT RS 8,542 CRORETRADE BALANCE RS (-62,955 CRORE)
OTHERTHAN OIL TRADE
BALANCE RS 35,653 CRORE
19
INDIA’S CRUDE OIL PRODUCTION & IMPORT (IN MT)
ASSAM ON SHORE 5.2ARUNACHAL PRADESH ON SHORE 0.0TAMIL NADU ON SHORE O.7GUJARAT ON SHORE 5.8BOMBAY HIGH OFF SHORE 16.6JVC OFF SHORE 4.1
TOTAL ON SHORE 11.7 ON SHORE 20.7
TOTAL PRODUCTION 32.4 MT IMPORT 74.1 MT AVAILABILITY 106.5 MT
2.3 OVERALL DEMAND FOR PETROLEUM PRODUCT:
In India this demand grew at an average of about 5.3% per year in 1970’s and at 5.8% per year in 1980’s & 1990’s.It was around 100 MT as per last data.
Elasticity of Demand with respect of GDP is 2 in 1970’s, 1.2 in 1980’s, and Unity in 1990’s.
Naphtha Consumption has increased by two & half times from 4.7 MT in 1996-97 to 11.7 MT in 2000-01. It is principally due to the commissioning of India’s largest Naphtha Cracker of Reliance.
INDIA’S PETROLEUM PRODUCT CONSUMPTION:
PRODUCT CONSUMPTIONIN PERCENTAGE
LPG 7.8MS 7.1NAPHTHA 11.8ATF 2.3SKO 10.6HSD 37.2LDO 1.6LUBES 1.2FO/LSHS 12.7BITUMEN 2.6CONSUMPTION OF OTHER PRODUCTS IS 5.1 %
20
India’s Refining Capacity is increased by 64% from around 68 MT per year in 1998-99 to approximately 112 MT in 2000-01 i.e. by 43 MMTPA. In just two years with Reliance’s 30 MMTPA Refinery contributing a large chunk of this increase. This has made the country self sufficient in refining capacity. Significantly improving the energy security and domestic value addition. Product imports have virtually stopped, thus saving the precious foreign exchange for the country.
21
2.4 MODE WISE DESPATCH (IN MMT):
YEAR ROAD RAIL PIPELINE COSTAL2000-
0122.9 35.1 27.8 9.6
2001-02
23.9 37.0 31.5 10.6
2002-03
24.9 36.4 31.6 11.6
MODE WISE DESPATCH (IN PERCENTAGE):
YEAR ROAD RAIL PIPELINE COSTAL2000-
0124 37 29 10
2001-02
23 36 31 10
2002-03
24 35 30 11
Here we can see that the highest percentage for dispatch is for Railway but nowadays the Railways re facing increasing constraints in movement of Oil product due to saturation of track capacity & non-availability of locomotives & tank wagons, due to resources constraint & hence the share of the Railways has been steadily decreasing over the past few years. Over the long run the cost of transportation through Rail increases annually due to higher operating cost as against to Pipelines, whose operating cost is minimal.
Movement of products from Depots/Terminals to Retail Outlets situated in their proximity is done only through Road transportation, as alternative modes would be unviable.
With increasing Demand the Product transportation volumes would also increases. This is expected to make Pipelines viable in more sectors & hence the share of Pipeline in moving Petroleum Products is expected to increases. In developed countries is 60 % of total while in India it is only 30 %.
Total Pipeline Network of around 5000Kms., From the Refineries to consumption center.
22
ADVANTAGE OF PIPELINE TRANSPORTATION:
Bulk transportation, Most Energy efficient.
Cost effective & convenient.
Evacuation & Handling Losses are minimal
Product moves container remains stationary unlike the other modes.
Several products can be pumped in the same Pipeline using Batching schedule.
It is more environmental friendly mode of transportation.
It is least affected by natural calamities likes Floods, Landslides, Fire so it is Safest mode of transportation, helps in maintaining Uninterrupted Supply.
Low operation & Maintenance.
23
2.5 CHALLENGES TO INDIAN REFINING SECTOR IN THE FUTURE
As the new millennium dawns, refineries face many challenges in the years ahead. On the one hand, crude oil suppliers will be increasingly heavy and high in sulfur, on the other hand environmental regulations and demand considerations will require that the product slate becomes lighter, lower in sulfur, and in general, of higher quality. To address these challenges, refiners will have to broaden their horizons, embraces new technologies, and seek synergistic projects both within the refinery as well as in outside world.
Crude oil supply:
Crude oil supply is projected to get heavier and sourer. On a world wide, the incremental barrel of crude oil is expected to have a straight run yields of 40% resid, 42% gasoline and distillate, and 18% LPG, naphtha etc. at the same time, the demand for products from the incremental barrel is expected to have the following distribution: 3%resid, 79%gasoline and distillate, 18%LPG, Naptha etc. the mismatch between straight run yields and product demands indicates that resid upgrading process will play an increasing role in the refining industry.
Environmental consideration:
Environmental requirements have played a major role in shaping the operation of today’s refineries and will continue to do so in future. Allowable sulfur levels in refinery products are constantly being pushed downward. For the year ahead target sulfur values for sulfur in reformulated gasoline have been proposed as 143 ppmw and 30-50 ppmw for diesel by the year 2005.
Entry of MNCS:
Globalization and competition would squeeze margins, restructuring and cost reduction will be the new mantra.
24
2.6 OPPORTUNITY FOR RELIANCE PETROLEUM LIMITED
Government of India is in favor of creating additional refining capacity in the country to provide higher level of energy security, hence, in 1001 the Private sector opened up refining sector for the investment. Till then only National oil companies were setting up oil refineries in India.
Assuming that no additional refining capacity is added, incremental demand of petroleum product will have to be met through imports, it is hence reasonable to expect that the new refiners will get tariff adjusted import parity price.
All the above factors lead to the conclusion the refinery investment in India will be a viable proposition.
In the preset scenario RIL is marketing their under Administrative Pricing Mechanism decided by OCC like IOC, HPC, BPC. After April 2002 market will be deregulated which means prices will be decided by market. In such scenario RIL will market their products directly with the customer. That means RIL can directly sell their products to their customer, despite supplying their customers RIL can also supply their products to those refineries, which are going under deficit in terms of supply.
25
3 LOGISTICS FUNCTION
26
3.1 STUDY OF MAJOR LOGISTICS FUNCTION AND EVACUATION ANALYSIS VIA DIFFERENT MODES IN RELIANCE INDUSTRIES LIMITED:
An overview of Major Logistics Functions.
To study Evacuation facilities for an effective and efficient evacuation of the estimated volume of the controlled products from the RIL refinery through different modes of distribution.
To ascertain the total yearly percentage evacuation of controlled products to different region through different modes of transportation.
Strategies for retain marketing of controlled products.
To set a high standard for service delivery time and they meet this standard consistently.
To establish and operate knowledgeable & friendly customer service department that can resolve the problems in a satisfactory & timely manner.
27
3.2 Logistics management scope:
In today’s global market place, selling a product is something is easier than getting customers. Company must decide on the best way to store, handle and move their product and service so that they are available to customers in the right assortment, at the right time, and in the right place. Logistics effectiveness has a measure impact on both customer satisfaction and company costs. A poor distribution system can destroy an otherwise good marketing effort. It involves the management of entire supply chain, value added flows from suppliers to final users. The logistics manager’s task is to coordinate the whole channel of physical distributions system- the activities of suppliers, purchasing agents, marketers, channel member and customer.
The activities include forecasting information systems, purchasing production planning, order processing, inventory, warehousing and transportation planning.
Companies today are placing greater emphasis on logistics for several reasons. First, customer service and satisfaction have become corner customers of marketing strategy in many businesses, and distribution is and important customer element. Second, logistics is a major cost element for most companies. Third, the explosion in product variety has created a need for improved logistics management.
The major logistics a function includes order processing, warehousing, inventory management and transportation.
Order processing:
Order can be submitted in many ways by mail of telephone, through sales people, or via computers and electronic data interchange (EDI).
Ware housing:
Every company stores its gods while the wait to be sold. A storage function is needed because production and consumption cycle rarely match.
28
Inventory:
Inventory levels also affect customer’s satisfaction. The major problem is to maintain the delicate balance between carrying too many inventories and carrying too little.
Transportation:
Marketers need to takes an interest in their company’s transportation decision. The choice of transportation carries affects the pricing of products, delivery performance, and condition of the goods when they arrive all of which affects customers satisfaction.
29
3.3 HIERARCHY OF INDUSTRY WORKING:
MINISTRY OF PETROLEUM
Reliance refinery Before deregulation Oil marketing company
After deregulation
Retail outlet Retail outlet
CUSTOMER
30
Refining Sector was opened up to the Private Sector in 1991.After 1st April 2002 Administered Pricing Mechanism (APM) has been dismantled & Oil Marketing Companies are being allowed to fix Retail Prices for MS & HSD.
The Petroleum Refining & Marketing Regulatory Board is Expected to monitor Petroleum Product Price in the Deregulated Scenario & Ensure that there is no Profiteering by the Oil Marketing Companies. It will also ensure that the Petroleum Products are available through out the Country. In May-02 Government has granted & given Marketing Rights to Reliance.
31
3.4 IMPORTANT ACTS AND REGULATIONS CONCERNING OIL INDUSTRY:
Petroleum Act 1934 & Rules 1976 & the Amendment.
Critical OISD standard.
Standard of weight & measure Act 1976.
Customer & Excise Regulation.
Transport Discipline Guide Line.
Industry Quality Control Manual (Aviation & Non Aviation).
BIS speciation.
Motor Vehicle Act 1988.
Sales Tax Regulation.
Chemical Accident (Emergency Planning, Preparedness & Response) Rules.
MS/HSD (Prevention of malpractice in supply and Distribution) Order 1990.
Kerosene (Restriction on use & Fixation of Ceiling Price order 1993).
Explosive Act 1889.
Gas Cylinder Rules 1981.
The Air Prevention & Control of Pollution Act 1981.
Factories Act 1948 (Bare Act 1998).
The Public Liability Insurance Ace 1991.
32
33
SOME IMPORTANT SAFETY FEATURES:
Fire, heat and gas detection system.
Emergency shut down system.
Overspill sensors.
Interlocks.
Terminal automation system.
Oil movement information system.
Tank inventory system.
Automatic water sprinkler system.
Semi fixed foam supply system in storage tanks
Extensive coverage of fire hydrants/monitors.
Round the clock coverage for fire fighting.
Benzene vapor recovery system.
Nitrogen blanketed tanks for methanol, ATF & Benzene.
Closed drum draining system.
Ows system for handling oily water.
Fire alarm system.
Availability of first aid box at all required locations.
34
3.5 COMPANY PRODUCTS:
PETROLEUM PETROCHEMICAL SOLIDPRODUCTS PRODUCTS PRODUCTS
HSD BZ COKESKO PX SULFURMS OX POLY-LPG FOPROPYLENE HALDO CBFSLCO TOLULENEATF
RECEIPT:
METHANOLETHANOLNRS (NAPTHA RETURN STREAM)
PRODUCTS AND THEIR USAGE:
Diesel Industrial & Transportation Fuel Kerosene Domestic Fuel ATF Aviation Turbine Fuel LAB feedstock Manufacturing of LAB (detergent) LPG Industrial & Domestic Fuel Gasoline Light Motor Vehicle Fuel Naphtha Petrochemical Feedstock Coke Power Plant Fuel Sulfur Manufacture of Sulfuric Acid/Chemical Para Xylene Manufacture of PTA PP Plastic Products
35
3.6 LOGISTICS FUNCTIONS:
ORDER PROCESSING:
There are four modes of dispatches, for Road and Rail SAP automatically create order by the interface of SAP system with customer system, Oil companies have interface with RIL Company.
Once the data matches with Oil Company’s an automatic order is created in SAP system, which is linked with technical automation system (TAS).
The details from SAP are transferred to TAS, which will enable the task to the loading at Gantry. After the loading is over SAP generates excise invoice and other Railway documents.
For coastal and pipeline customer issues LAN (loading advice note) based on loading program given by oil company to different location. Order is created manually in SAP system.
This order reference number is utilized for creating delivery note, invoice and other related documents.
WAREHOUSING:
RTF
The refinery tank farm facility is situated in the man refinery site. It is distributed over an area of 3 sq. km. it covers al the facilities for receiving and handling of the Crude oil, other raw material, intermediates and products.
INVENTORY MANAGEMENT:
TANK INVENTORY SYSTEM
Since all the petrochemical & petroleum and Raw material (crude) are stored in special and scientific tank to maintain optimum inventory level. So the inventory system is called as Tank Inventory System (TIS).
TIS are totally automated one, which is monitored by control panel at RRTF & MTF.
Every tank in RRTF & MTF is attached with a device called ATG (Automatic Tank Gauging), which notice down following Parameters Viz. Level, Temperature, Pressure and Density of a tank. These parameters are used to calculate Gross volume, Water volume and Net volume at 150C and net weight of the stored product.
36
These volume and weight will help in ascertaining the ULLAGE i.e. empty space present in tank, PUMPABLE VOLUME i.e. volume of product above dead stock, FLOW RATE and TIME to LIMITS (it is time to fill or evacuate the tank).
TIS having interface with other SAP software viz. TAS, OMIS etc. will access the information to all the system.
This data helps to maintain the optimum inventory level respect of demand and supply of the product.
TRANSPORTATION:
Product dispatch facilities
Road and Rail dispatch will be from Road and Rail Tank Farm (RRTF). Sea and Pipeline dispatch will be from Marine Tank Farm (MTF).
RRTF (Road)
Tank age and number of bays differ from product to product LPG is having 16 No. of loading bays, MS is having 3 No. of bays, ATF is having 2 No. of loading bays, SKO is having 6 No. of loading bays and HSD is having 18 No. of loading bays. Total loading is automated and controlled by Terminal Automation System (TAS).
RRTF (Rail)
RIL has two Rail gantries i.e. one for Oil and second for LPG. Oil Gantry has two spurs. Each gantry is for a full rake on a single spur. Oil gantry has pipeline to load HSD rakes. At the request of the industry RIL is providing facilities to load MS & SKO. Mass flow of LPG and volume meter for Diesel as provided. Loading will be automated and controlled by TAS.
MARINE TANK FARM
Tank age at MTF is provided for tanker and pipeline dispatch.LPG and ATF have one tank each for dispatch. MS, HSD & SKO have 3,6 & 2 tank respectively for dispatch. Total eleven tanks for dispatch for the controlled products. Other dispatch facilities are jetties. There are four jetties for product evacuation.
PIPELINE
Petronet VK runs a 24” diameter pipeline across the gulf connecting Jamnagar Refineries and Kandla-Bhatinda pipeline. Tanks at MTF are used for pumping MS, HSD and SKO if required in this pipeline.RPL has also share in Gail Kandla-Loni pipeline, which carries LPG.
37
4 PRODUCT EVACUATION
PATTERN
38
INTRODUCTION
RRTF is engaged in receipt, storage and dispatch of raw materials and finished products. Raw materials for refinery are received from tank lorries, stored in RRTF and transferred to RTF via pipeline, finished products from refinery are received, stored, in RRTF and detached via tank lorries, tank wagons, cross-country pipelines (LPG)
PRODUCT RECEIPT, STORAGE & HANDLING
Products are received from RTF/AEROMATICS/MTF are stored in RRTF, before being dispatched via tank, truck, tank wagons, of pipelines products handled are LPG, PROPYLENE, HSD, SKO, MS, NAPTHA, ATF, BENZYNE, PX, OX, HEAVY AEROMATICS & LDO.
Dedicated pipelines for diff.+ products are used for the transfer from RTF to RRTF. The same run down lines can be used transferring from RRTF to RTF/MTF. However this involves manual operation restored to only as an exception.
All product receipts are metered by custody transfer meters. Dispatches are based on weighbridge measurement/turbine meter measurement. LPG & white oil products respectively.
RAW MATERIAL AND STORAGE
Methanol is received from tank lorries and unloaded at 02 bays having facility of unloading 4 tank lorries at a time there are 02 No. Internal floating roof tanks having capacity of 1100KL each. Methanol is transferred to RTF using methanol transfer pumps via 6” pipelines.
Naphtha return stream and mixed xylene can also be received from tank lorries and unloaded at 02 bays having facility of unloading 4 tank lorries at a time. Provision is made for storing these products in 2 tanks having capacity of 3650KL each.
RAIL TERMINAL
Rail terminal is consists with POL gantry (Spur 1 & Spur 2) and LPG gantry to load full rake of LPG & POL (HSD/MS/SKO/ATF) products liquid gantry is having a full length of 800m to load a full rake of 54 BTPN (8 wheeler) or 72 conventional (4 wheeler) wagons at a time.LPG gantry is having a full length of 800m. Divided into two parts by keeping a 50m distance in between as per chief controller of explosive (CCOE) requirement to load 32 BTPGLN (8wheeler) or 64 conventional (4 wheeler) wagons at a time.
39
POL LOADING FACILITIES (For Spur 1 & Spur 2)
SPUR 1 (1 to 5) and SPUR 2 (6 to 7)
SR NO PRODUCT PUMPS SIZE BCU CAPACITY M3/HR
1 HSD 2+1 18” 08 5002 SKO 1+1 08” 08 5003 PCN 2+1 18” 08 5004 ATF 2+1 20” 08 5005 MS 3% 1+1 08” 08 5006 PCN 2+1 18” 08 5007 MS 1% 2+1 20” 08 500
POL LOADING FACILITY
Each POL (HSD/PCN/ATF/SKO/MS) product having 3 unloading point and 1 centrifugal unloading pump connected with associated pipelines connected to respective product tank.
LPG LOADING FACILITY
LPG loading gantry consists of 2 sections having 50m gaps as per CCOE requirements. Each section consists of 4 bays each having facility of loading four 8 wheeler and eight 4 wheeler wagons.
LPG UNLOADING FACILITY
POL products are dispatched by volume, and LPG is dispatched by weight. One LPG unloading compressor is having capacity of 150 m3/hr is provided to unload LPG sick wagon at any point of the gantry.
PROCEDURE FOR LOGISTIC CORDINATION OF ROAD LOADING
The procedure is covered for the liquid products handled at RPL, RIL, LPG & LSHS load office.Tare weight capturing of tankers (WBN) and preparation of filling advice note (FAN)
Tankers of those products whose loading is not through TAS are first taken on weighbridge are captured in truck tracking system weighbridge entry (incoming)
However incase of LPG tankers (loaded through TAS) tare weight is captured in TAS for each tanker. For those RIL & LSHS products, which load through BCU, only one tanker for each bay is taken on the weighbridge at the beginning of loading & their tare weights are noted.
40
During capturing & noting the weight following care must be takenTanker should be stationary on weighbridge.Driver must have come down from tanker. Truck engine must be off.Tare weight should be within reasonable limits.
FAN indicates the bay no., loading product of the truck, truck no, loading time, truck details. The generation of FAN is done in TAS for those tankers, which load through TAS & in SAP for those tankers, which load manually.
PROCEDURE FOR LOGISTIC CORDINATION OF RAIL LOADING
According to the ILP & BPC (All India rail movement coordinator) directives, the base coordinator places the indent with RIL. RIL based on product availability places the indent with railways.
The scope of the procedure covers logistics planning & marketing coordination activities done to achiever the ILP targets fixed by oil industry to load product such as HSD, MS, SKO, LPG, ATF in tank wagons to the destination mentioned in the LAN issued by base coordinator. The procedure also covers the tank wagon master updating &the activities carried out at rail load office related to rake loading.
The base coordinator will prepare LAN & handover the same to MOG. The LAN contains details such as destination, Oil Company, product, no of wagons duty paid, or bonded. Wherever necessary oil company will also mention the critical parameters such as BZ content in MS, sulfur content in HSD in their LAN.Rail load office person review the stock & accordingly advice the Rail load office officer to prepare an indent &place the same with the railways.
41
PROCEDURE FOR LOGISTICS COORDINATR IN COSTAL & PIPELINE DISPATCH FOR ILP PRODUCTS
The product wise costal & pipeline evacuation is decided in ILP meeting for coastal evacuation, HPC (costal movement coordinator) schedules. The movement of vessels monitors the movement of vessels and also broadly plans the quantity to be loaded in every vessel. Two major pipelines are being operated from Jamnagar. One pipeline is transferring HSD, SKO & MS through VKPL. The other pipeline owned by GAIL is transferring LPG from Jamnagar to loni. The product is evacuated by these agencies (GAIL, PVKL) on behalf of omcs. In case of VKPL the pumping is dome as per quantity to be pumped in the pipeline and also the quantity to be loaded in vessel is conveyed to RIL in the form of LAN for costal & pipeline movement, business group in Mumbai conveys the quantities to MOG Jamnagar/EPS.
GAIL PUMPING
In ILP meeting the oil Industry decides the location wise LPG to be pumped from RIL through GAIL pipeline.
The base coordinator in consultation with other omcs will prepare bulk LAN and hand over the same to RIL, a copy of LAN is sent to GAIL also.
Meanwhile LPG from RRTF sphere is drawn by GAIL as per requirement & pumped into GAIL pipeline. As soon as the LAN the exhausted a fresh LAN will be issued by base coordinator.
The day-to-day pumping rate is monitored as per pre data of ILP.
Incase of any stock or ullage crisis, pumping rates are regulated in consultations with EPS, HO Mumbai & omcs’.
Any query from omcs regarding quality of products will be sorted cut by MOG in consultation with concerned departments like CTS, MTF, RTF, RRTF etc &as per agreed operating procedure.
In case of deviation from quality specification the same is conveyed to omcs and their approval is obtained either orally or written communication.
42
FINDINGS:
Performance Measurement criteria of marketing evacuation group:
Ensure timely evacuation so as to avoid loss of crude through out due to product containment.
Ensure uninterrupted availability of products in the market at the optimum logistics cost.
Co-ordinate with manufacturing to avoid loss of sale of specific product due to product non-availability in the markets.
Optimize utilization of product evacuation capacity.
Ensure finished product inventories are maintained at on optimum level.
REGION WISE & MODE WISE DEAPATCH:
It mainly depends upon these factors
Major shut downs. Change in logistics scenario. Natural calamities.
Due to above factors region & mode wise supply & demand scenario gets affected.
43
LOGISTICS FUNCTION:
4.2 INVENTORY MANAGEMENT:
TANK INVENTORY SYSTEM:
All the Petrochemical & Petroleum products and Raw material (crude) are stored in special and scientific tanks to maintain optimum inventory level. This inventory system is called as Tank Inventory System (TIS).
TIS is totally automated which is monitored by control panel at RRTF & RTF.
Every tank in RRTF & MTF is attached with a device called ATG (Automatic Tank Gauging), which notes down following Parameters viz. Level, Temperature, Pressure and Density of a tank.
These parameters are used to calculate Gross Volume, Water Volume, Net Volume at 150c and Net weight of the stored product.
These volumes and weight will help in ascertaining the ULLAGE i.e. empty space present in a tank, PUMPABLE VOLUMES i.e. volume of product above dead stock, FLOW RATE and TIME to LIMIT (It is time to fill or evacuate the tank).
TIS having interface with other SAP software viz. TAS, OMIS ETC. will access the information to all the systems.This data helps to maintain the optimum inventory level in respect of demand and supply of the product.
4.3 TRANSPORTATION CHANNELS:
ROAD DESPATCH:
Following steps are being put inline for dispatching the products:
Indent:Daily IOC/BPC/HPC issue indent for upliftment product wise /qty. wise for the next day requirement and short fall of qty. as per evacuation plan.
Commercial:IOC shall provide the commercial documents to facilitate the truck loading/ dispatch.
44
Excise gate pass/invoice. Commercial validation of the tank truck before loading. Delivery challan cum invoice and stock transfer challan etc.
Invoice:Invoice series has been defined as per sells likeDomestic sells : Payment of Excise Duty.Export : No Payment of Excise Duty.Dimed Export : No Payment of Excise Duty.Stock TransferAnd Others : Payment of Excise Duty.
3 copies of L.R. (1 Original Copy is kept with RILLO. & 2 c/c sent to H.O.)4 copies of invoice (2 copies sent to RPPL then RPML and finally to Customer and remaining 2 copies kept with RIL for dispatch to OIL COMPANIES)4 copies of invoice generated for dispatch to others and stock transfer.
Original copy for Buyer : Sent to H.O and then to Buyer.Duplicate copy for Transporter : Given to Driver.Triplicate copy for Assessee : Kept with RILLO. For Record.Extra Copy for Check Post : Given to Tanker Driver.
Every product has its own series No. For invoice that serial No. Should be properly maintained.
Quality Certificate is also given for Customer.
Form-45 is given for product shifted out of Gujarat.
Product Rate is defined in advance and buyer does total payment of product in advance to RIL.
Invoice copy is a important document. If excise duty is paid on product and that product is used as a raw material for further production then after making final product he will gain that paid excise duty deducted.
Safety/Statutory:IOC is responsible for all statutory/safety rules/Regulation pertaining to Loading/movement of products through tank truck, and shall monitor and maintain necessary documents/Database.
45
Quality Control:
RIL shall ensure that all products to be loaded conforms to BIS specifications and CQM norms/standards.
RIL shall provide QC certificate in respect of operating tanks and Joint samples shall be taken and retained from the operating tanks as per IQCM for future reference before commencement of loading operation.
Format for operating tanks details:
Product Tank no DIP Quantity Density/Temp/Flash point.
HSDLPGATFSKOMS
TRUCK LOADING:
ACTIVITY/SEQUENCE:
TRUCK TRACKING SYSTEM (TTS)
MAIN GATE ENTRY (MGN). TIME OFFICE. TRUCK PARKING GANTRY (TPN). REPORT TO OIL COMPANY COUNTER. RELIANCE COUNTER (TOUCH KEY CARD). TRUCK ORDER LINKING (TOL). LOADING ARM BAY ALLOCATION. REPORT TO LOAD OFFICE
RIL LOAD OFFICE :RPL LOAD OFFICE :LSHS LOAD OFFICE :LPG LOAD OFFICE :
ISSUE OF FILLING ADVICE NOTE (FAN). EXCISE INVOICE GENERATED BY RIL. INVOICE HANDOVER TO TRUCK DRIVER. MAIN GATE EXIT (MGX).
46
47
RAIL DESPATCH:
CAPACITIES:
4 Rakes per day in three shifts of LPG and 4 Rakes per day in three shifts of liquids can be loaded.Rake filling time will be 4 hour for both types of wagon for both LPG and liquids like HSD/MS.
FACILITIES:
RIL Load Gantry & LPG Load Gantry.
Rail Gantry for Oil products – 01 No -- 54 (8 wheelers) or 72 (4 wheelers)Tank wagons can be loaded at a time.
Rail Gantry for LPG – 01 No – 32 (8 wheelers) or 64 (4 wheelers)Tank wagons can be loaded at a time.
Facilities for degassing and purging of sick LPG wagons.
CO-ORDINATION:
IOC//HPC/BPC Shall be responsible for co-ordination with railways regarding all matters of loading and dispatches of tank wagons. Oil Company and RIL staff co-ordinate and co-operate with each other during the entire loading operations till the release of the tank wagons. Oil Company gives yearly and monthly demand for products to RIL according to that RIL make planning and put demands of rakes to Railways.
RAILWAY CHARGES:
All the necessary fees such as siding charges/shunting charges/wagon registration fees/ freight charges/ demurrage charges and other payments shall be paid by RIL initially and then Oil Company will pay to RIL. Office spaces for railways staff shall be provided by RIL and Railway shall pay their wages and incidental charges. Oil Company shall be responsible for arranging sufficient number of fit tank wagons from safety & QC point of view.
48
DEMURRAGE/FREETIME:
Demurrage is charged by railways for detention of tank wagons beyond the given free time during the tank wagon loading operations. Free time is calculated from the time when wagon at the gantry, are declared fit by Railways.
WAGON LOADING:
OIL COMPANIES shall accept the placement slip from Railways and a copy is provided to RIL. And the time of rake entry to rail siding is informed well in advance by OIL COMPANIES at siding gate RIL security shall note in time and total no. of wagons.
OIL COMPANIES co-ordinates with Railways for clearance of wagon for loading and physically inspect wagons and confirms to RIL of no. of fit/sick wagons.
OIL COMPANIES provide filling note to RIL for loading operations.
RIL & OIL COMPANIES shall jointly note down the tank wagons no. Manual loading memo. And these no. are entered in OIL COMPANIES system & electronically inform RIL the product allocation tank wagon wise & clearance for loading.
OIL COMPANIES issues sick memo to railways with reasons.
After the loading details finalized and down loaded to TAS, TAS sets the batch controllers with wagon no., the quantity/product to be loaded. TAS will do the lining up, opens necessary valves, commences, operations and complete the operations for the Target quantity.
RIL & OIL COMPANIES shall ensure the smooth and safe filling operations.
RIL & OIL COMPANIES staff shall check the wagons for water presence (not applicable for LPG), water if any, shall be drained out from the bottom and topped with the product.
The final Loading Memo (FLM) prepared by RIL on the basis of quantity registered by the flow meter/mass flow meter.
RIL prepare necessary pocket/paste-on labels wagons wise and hand over both FLM & paste on label to OIL COMPANIES.
OIL COMPANIES cross checks & discrepancy if any shall be rectified immediately by RIL.
49
The manhole cover of all the filled tank wagons shall be closed properly and OIL COMPANIES shall seal all the tank wagons at top & bottom. For LPG sealing will not be required.
OIL COMPANIES shall issue the release memo to railways & co-ordinate for removal of the tank wagons from the siding.
Before removal of the tank wagons, RIL security shall be instructed to allow the Exit of the wagons. RIL security shall note the out-time and no. of wagons removed.
During the removal of wagons gross weight of each wagon of LG shall be obtained from In-motion weigh bridge and the gross weight shall be updated in the loading memo.
PIPELINE TRANSFER:
INDENT/PIPELINE TRANSFER SCHEDULE:
OIL COMPANIES shall co-ordinate with OCC/OMCS and prepare monthly and weekly schedule for pipeline transfer in respect to agreed products.
Everyday at the close of the first shift OIL COMPANIES shall provide indent for pipeline transfer for the next day. With the following.
Time of PLT. Product. Quantity. Duty paid/Bonded.
RIL shall confirm acceptance of indent and in case of change RIL shall inform OIL COMPANIES immediately.
CO-ORDINATION:
OIL COMPANIES shall co-ordinate with the receiving location and confirm the finalized pipeline transfer program well in advance to:
Industry co-ordinates (if any). Custodian of pipeline (if any). Surveyor (if any).
50
51
OIL COMPANIES shall also confirm to RIL in advance the following.
Exact time of PLT. Firm parcel size. Product. Sequence of pumping (if any). Receiving tank No.(s). Ullage of the receiving tank(s). Whether switch over of tank is required. Name of the OIL COMPANIES officer who will supervise pipeline transfer.
ACTIVITIES/SEQUENCES:
As per the “Marketing Agreement” the delivery point shall be segregation (valve) between the pipeline facilities within the RIL facilities and pipeline facilities used by OIL COMPANIES to lift the agreed products. Hence, after the RIL facilities responsibility lies with RIL as far as pipeline operation is concerned.
During the pipeline transfer operation OIL COMPANIES and RIL shall closely co-ordinate to ensure smooth & safe transfer.
Pipeline operations Log Book shall be maintained jointly by RIL & OIL COMPANIES. As far as possible all information/activities communication/occurrences/QC aspects during the pipeline transfer shall be logged and signed by both RIL & OIL COMPANIES personnel.
Any switch over of tanks during PLT by either side shall be informed well in advance and proper care shall be taken for smooth and safe switch over of tanks.
During pipeline transfer dispatch tank shall not be utilized for receipt. Similarly, receipt tank shall not be utilized for dispatch/delivery.
RIL shall ensure that minimum setting time as per industry practice is maintained between receipt and delivery of product from the operating tan.
RIL shall avoid pumping of hot product. As far as possible, the product temperature shall not exceed the ambient temperature by OIL COMPANIES.
Dispatches by pipeline the delivery shall be deemed completed at the time of closing of the gauge for the dispatching tank.
Only after receiving the conformation regarding the completion of PLT from RIL the valves and other facilities at receiving location shall be closed and confirm the same to RIL.
52
53
MARINE TANKER LOADING:
RIL is having 4 jetties facilities for loading and unloading products and for receiving crude.4 jetties are known as A, B, C, and D.
A – Alpha. B – Bravo. C – Charlie. D – Delta.
Among these four jetties Alpha is the Smallest One and Delta is the Biggest One.
Alpha is for LPG, PX, and OX.
Bravo is for NAPHTHA, PX, and OX.
Charlie is for MS, HSD, and LDO & SKO.
Delta is for MS, HSD, and LDO & SKO.
Crude is generally comes from Middle East, Europe, North America, South America, Africa.
Ships are known as LCC, VLCC & ULCC.
LCC – Large Crude Carrier. Capacity is 100-200 KT.
VLCC – Very Large Crude Carrier. Capacity is 200-350 KT.
ULCC – Ultra Large Crude Carrier. Capacity is > 350 KT.
54
Types Of Tankers:
Oil tankers are cargo ship specially designed to transport liquid products in bulk. There are three types of oil tankers available.
Clean tankers, which are utilized for carrying, white oil products.
Dirty tankers, which are utilized for carrying crude oil as well as black oil products. These tankers are normally fitted with heating coils in order to maintain in sufficient high temperature to keep the cargo in liquid form for easy pump ability.
There are special tankers for carrying specially products like lube oils, gases (LPG) bitumen etc. These tankers are fitted with special type of equipment’s depending upon the cargo to be carried.
TANKER FLEET:
The Hire Agreement between the Oil Companies and the owner of the vessels is known as “Charter party agreement (c/p)”. There are generally two different types of Charter party agreement:
Time Charter.Voyage Charter.
Time Charter:An Agreement to lease the services of the tanker for a definite period of time is known as charter.
Voyage Charter.A Voyage Charter party (c/p) is a contract entered between the ship owner and the Charters for performing a voyage from one port to another port or as area agreed upon.
55
LOADING SEQUNCE:
Before the arrival of the tankers OIL COMPANIES shall provide the following information to RIL.
Name of the tanker/tankers. Last port of call. Expected time of Departure from. Draught of the vessel. Product and quantity to be loaded. Bunker Requirement of the vessel. Next port of call.
All shipping/port related formalities should be completed by OIL COMPANIES.
OIL COMPANIES shall confirm the Name of the boarding officer who will co-ordinate with the tankers as well as RIL. Similarly, RIL shall confirm the Name of the duty officer who will co-ordinate on behalf of RIL.
On arrival of tanker, OIL COMPANIES shall in consultation with the RIL tender the Notice of Readiness (NOR).
After the Berth has been Nominated, OIL COMPANIES shall inform and co-ordinate with the ship agent, port master, pilot office and surveyor and also co-ordinate with RIL for safe berthing of the vessel.
After Berthing and clearance from the concerned authorities, Boarding officer shall board the tanker and collect from the master all relevant shipping documents.
Boarding officer shall inspect the tanks for establishing the fitness of the tanks to load nominated products.
Boarding officer shall ensure that no other operation, particularly Ballasting, inter tank transfer shall be carried out during the entire loading operations, without obtaining clearance from the boarding officer. Boarding officer shall examine the conditions of the tanker, bulk heads and Boarding officer shall examine the conditions of the tanker, bulk heads and other fitting as far as possible to ensure that there is no leakage of product.
Boarding officer shall supervise the connection of the Hose/loading are to the correct manifold, as advised by the master.
Jetty manifold valve shall be opened just before the commencement of tha loading.
56
Duty officer shall inform the boarding officer about the commencement of loading and wait for the confirmation of receipt at tanker end.
Boarding officer shall arrange to take the first in samples from the tanker’s tank and send to lab for testing and if if meets the specifications the loading shall be resumed.
Boarding officer shall arrange to take the Dips of the tanker tanks every hour and calculate the quantity receipt and compare with the quantity receipt and compare with the quantity pumped from the terminal. If any abnormal variation is observed, matter shall be investigated both at terminal end and if required loading operations shall be stopped. Only after ascertaining the reasons. Loading operations shall be resumed.
After the required quantity is pumped, duty officer shall inform the boarding officer of completion of loading operations. Boarding officer disconnect the Hose of loading arm after clearance from duty officer.
If required bunker fuel shall be supplied by RIL and separate billing shall be raised in this regard.
IMPORTANT TERMS:
LOA: Length Over All (Total length of vessel from Bow to Stern).
BEAM: Width of the Vessel.
DRAFT: Depth of the Vessel.
ULLAGE: In a tanker distance of oil level from the top of tank. It is used for measuring quantity of oil.
CARGO TANKS: The space used for carrying cargo in the tanker.
BALLAST TANKS: Tanks reserved for carrying Ballast when the ship is empty/party loaded.
DROUGHT: Height from the keel to the water line (Depth of the Vessel inside water).
DEAD WEIGHT: Carrying capacity
57
5 STRATEGIES FOR DECONTROLLED
SCENARIO
58
STRATEGIES FOR DECONTROLLED SCENARIO:
In line with the Govt. Oil sector policies, RIL is currently selling the four product namely LPG, Gasoline, Kerosene and Diesel to the public sector oil companies IOC, HPCL and BPCL to the extent required by them.
The marketing of these controlled products is to be deregulated with effect from April-02 as per the schedule announced by the Govt. RIL propose to enter the business of retail marketing of controlled products in India. RIL also gets the permission of establishing their own retail outlets, petrol pumps through out the India. RIL should adopt the following strategies before entering to retail marketing.
OBJECTIVE:
While going for retail marketing RIL should have the following objectives in their mind.
Create a retail sales network:In the present scenario RIL is having retail outlet like IOC/HPC/BPC.Now RIL has to more expand its retail networks all across India.
Create a brand image:There are several decision evaluation processes used by a customer for a particular brand. They prefer those brands:One who satisfies their needs.There are certain benefits attached with the products.
The customer develops a set of brand benefits about where each brand stands on each attribute. The set of benefits about a brand make up the brand image.
RIL has to create brand image among the customer before switch on to retailing. The better the brand is the better the consumer interest.
FUNCTIONS:
Planning new locations:
Retailers are accustomed to saying that the three keys to success are “location, location and location”. Customers generally choose the nearest petrol pump and sales depts.
RIL has to select regions of the country in which to open outlets, then particular cities and then particular sites.
59
Demand forecasting:
In most markets, total demand and company demand is not stable, good forecasting becomes a key factor in company success. All forecast are built on one of three information bases:What people say.What people do.What people have done.The first basis: what people say involves surveying the opinions of buyers or these close to them, such as sales people or outside experts. It encompasses three methods: - survey of buyer’s intentions, composites of sales force opinions and expert opinion. Building a forecast on what people do involves another method, putting the products into a test market to measure buyer response, the final basis what people have dome involves analyzing records of past buying behavior or using a time series analysis or statistical demand analysis.
Sales and market shares:
For Total potential RIL needs to know the actual industry sales taking place in its market, this means identifying its competitions and estimating their sales.
Service: RIL should have to adopt four characteristics of service that greatly affect the design of market programs.
Competitors: RIL will have to face pure competition from public sector companies, because they are offering the same product and service. There is no basis for differentiation, competitors price are also same.
ACTIVITIES:
Update policies:
RIL should have to update their policies so that the company can deal with stakeholders, employees, customers, suppliers, distributors and other important groups.
Earning per customer for development retail counter:
Every company loses money on some of its customer. The well known 20-80 rules says that the top 20 percent of the customer generate 80 percent profit of company.
60
RIL has to consider customers in the following manner:
• The largest customers demand considerable service and receive the deepest discounts.
• The smallest customers pay full price and receive minimal service, but the cost of transaction with small customers reduce their profitability.
• The mid-size customers receive good service and pay nearly full price and they are often the most profitable.
RIL has to measure customer satisfaction as well as customer profitability to earn profit in retailing.
Regular meeting with dealers and visit to retail outlet:
RIL will have to conduct sales meetings because periodic sales meetings provide a social occasion, a break from routine, a chance to meet and talk with “company brass” and each other, and a chance to air feeling and to identify with a large group.
Facility maintenance at Retail Outlet:
RIL will have to maintain facilities like shopping store at their retail outlets to create their brand image.
RIL has declared ‘PetroCard’ as other competitors.
Advertising campaigns:
RIL has to run advertising campaigns for each local market in a process called communication adaptation.
RIL can change its message at four different levels, or RIL can us one message everywhere, varying only the language, name, colors. RIL will have to maintain the following quantities in their advertising campaign.
Create an Efficient & Effective Sales Force for proper commissioning and smooth functioning of R.O. (Retail Outlets).
61
• Public presentation:Advertising public nature confers a kind of legitimacy on the product and also suggest a standardized offering, because many persons receive the message, buyers know that motives for purchasing he product will be publicly understood.
• Pervasiveness:Advertising permits the seller to repeat a message many times. It also allows the buyer to receive and compare the message of various competitors. Large-scale advertising says something positive about the seller’s size, power and success.
• Amplified expressiveness:Advertising provides opportunities for the dramatizing the company and its products, through the artful use of paint, sound and color.
• Impersonality:The audience does not feel obligated to pay attention or respond to advertising. Advertising is a monologue in front of not a dialogue with the audience.
Advertising is used to build up a long-term image for the products or trigger quick sales. Advertising can efficiently reach geographically dispersed buyers. Consumers believe that a heavily advertised brand must offer “good value”.
Business to Business selling:
E-business will drive the over all strategy in the Process Automation System (PAS) market for both suppliers and users in the near future. The effectiveness and potential earnings from using the Internet as a platform for effective business processes are fast becoming a reality. The Internet promises to enhance process information by expanding the lines of traditional system.
It can allow users to views and collect process and store data via hardened web server from any browser anywhere in the world.
62
5.1 MARKETING INFRASTRUCTURE:
In the present scenario RIL markets their product with co-ordination of IOC/HPC/BPC. The evacuation is based upon Administrative Price Mechanism. For each month oil companies decide SPM plan for evacuation in advance.
Evacuation is based upon dispatch facilities available at Reliance.
After Mar-02 there is no Administrative Price Mechanism i.e. RIL can market their products directly to the customers but RIL has to further adopt a multi-pronged strategy, encompassing:
Potential joint venture and alliances. Development of their own distribution and marketing infrastructure. Invest in pipeline distribution structure of India.
63
5.2 MARKETING STRATEGY:
MARKETING AGREEMENT:
RIL and OIL COMPANIES have entered into a long term Marketing Agreement. As per the Agreement OIL COMPANIES shall market all Agreed products Ex. RIL Refinery on the agreed terms & conditions during the period of the Marketing Agreement.
It is the primary responsibility of OIL COMPANIES to evacuate as required products as per the agreed evacuation plan Ex. RIL facilities.
RIL should ensure that all necessary assistance/co-operation as required are extended to evacuate the products as per the plan.
To evacuate the agreed products jointly following all standard safety, statutory, quality and quantity and norms as agreed upon by RIL & OIL COMPANIES.
RIL & OIL COMPANIES INTERFACE:
The successful implementation of evacuation plan Ex. RIL depends on close and positive interface between the RIL and OIL COMPANIES team that facilities dispatches of various products as per the plan, with the flexibility to meet to unforeseen situation that may arise from time to time.
To make the interface smooth and effective the partners (RIL & OIL COMPANIES) must have:
• Mutual understanding and appreciation.• Anticipation of implementing problems and timely exchange of such
information.• Co-ordination effort to find mutually beneficial solution.
Flexibility in approach.
The success or failure of the interface activity is also depend on whether both the partners act as a team or otherwise. This will be a continuous process and to be carried out:
• Informally at various dispatch unit levels Tank wagon/Tank Truck/pipeline/Tanker operations.
• Formally through daily meetings and interaction at different management levels.
64
BASIS OF OPERATION:
The Roles/Responsibility/Functions/Operating Procedure/Principles/Practices in respect of evacuation of products shall be based on:
• The agreement.• Standard Norms/Practices in Oil Industry as per Rules/Regulations.
In case of an ambiguity/Disputes in any issue relevant Rules/Regulations or clause of the agreement may be referred.
DELIVERY POINT:
Delivery of all Agreed Products shall be made by RIL to OIL COMPANIES at the following points.
In case of deliveries into Tank Truck and Tank Wagon, the delivery points shall be the end of the Loading Arm in the gantry.
In case of the Pipeline transfer the delivery point shall be the segregation (valve) between the Pipeline facilities used by Oil Companies to lift the agreed products.
In case of Tanker loading &Bunkers the delivery point shall be at the end of the loading arm, Hose connected to the ship’s Flange.
Title to and risk of loss for each Agreed Products shall pass from RIL to OIL COMPANIES at the applicable delivery points.
TRANSPORTATION:
OIL COMPANIES have to provide sufficient number of Tank, Trucks at its own cost, Tank Wagon or Ocean Tankers to ensure receipt of the monthly contract quantity at the delivery points.
MEASUREMENT/ACCOUNTING OF PRODUCTS:
In the case of loading into Tank Wagon/Tank Truck product quantity will be assessed based on flow meters provided by RIL.
In case of transfer by pipeline of ocean tankers RIL should raise invoice on OIL COMPANIES for quantities assessed jointly on custody transfer meter/flow meter provide by RIL.
In case of dispatch by pipeline the delivery shall be completed at the time of closing of the Gauges for the dispatching tank.
65
66
All such flow meters/custody transfer meters are duly calibrated by appropriate agencies of the Government and/or independent and reputed surveyors/inspectors.
All measurement as per the agreement shall be on this basis of Volume determined at 150c for MS, HSD, SKO and ATF and on Weight basis for LPG. For this purpose the quantities at the observed temperatures shall be first conveyed to 150c and the quantities at 150c so arrived, is used for making the invoice.
PRODUCTION AND EVACUATION PLAN:
RIL has to prepare and provide to OIL COMPANIES Annual/Monthly production plan for each of the Agreed products.
Prior to the 15th day of each month RIL should provide OIL COMPANIES with a production schedule for the following month.
OIL COMPANIES should prepare and provide to RIL a monthly Mode-wise Evacuation plan for each of the Agreed Products to match the OIL COMPANIES Annual upliftment plan taking into consideration annual contract quantity and the capacities of RIL delivery facilities within 30 days after the receipt of total annual production plan.
On the bases of annual/monthly contract quantity OIL COMPANIES should give weekly/daily evacuation plan product wise/mode wise.
METER PROVIDING SYSTEM:
The meter reading is done for MS/HSD/ATF/SKO using master turbine meter and for LPG master mass meter. Master turbine meters, will in turn be proved using volumetric process. Master mass flow meters can also be verified using volumetric prover.
WEIGH BRIDGE SYSTEM:
Electronic weighbridge system has been provided in liquids/LPG loading area to acquire Tare and Laden weight of tank truck when it is applicable.
An in-motion weighbridge system has provided to acquire tare and laden weight of LPG Wagon at the Rail Gantry.
67
OTHER FACILITIES:
On line dye Injection system. Tanker cleaning system. Ethyl Mercaptan doping system for LPG. Laboratory Information management system to get quality related data &
Quality Certificate.
INDENT/ORDER:
Every day OIL COMPANIES shall give the Indent mode wise /product wise /quantity wise/shift wise upliftment for the following day.
Every day OIL COMPANIES shall confirm the upliftment program for the sort fall quantity (If any) for the following day.
A specimen format for Indent is given below.
INDENT/ORDER
Date & Time of indent : Supply Date : Product : Quantity : Mode Of Dispatch : Shift/Time Of Dispatch : Category (Duty Paid/Bonded) : Remarks :
SIGNATURE OIL COMPANY
On Receipt of Indent/Order from OIL COMPANIES, RIL has to examine the stock position product wise and other operational aspects and shall confirm the acceptance of the Indent.
If any change is required to be carried out in the Indent the same shall be communicated to OIL COMPANIES immediately.
AUTOMATION/BUSINESS SOFT WARE:
68
The total process and operations of the RIL facilities are integrated and monitored by the DCS (Distributed Controlled System) with the help of following Automation Packages.
TAS (TERMINAL AUTOMATION SYSTEM) TIS (TANK NFORMATION SYSTEM) ATG (AUTO GUAGING SYSTEM) OMIS (OIL MOVEMENT INFORMATION SYSTEM)
All business process/commercial documentation at RIL, Jamnagar are carried out by SAP-ERP Software.
SAP has to Interface with TAS (Terminal Automation System) TDM (Terminal Documentation Module).
Both OIL COMPANIES and RIL operating personnel must have basic understanding of each other’s system/software.
SAP does interface with TAS, which is primarily for handling evacuation of products through different modes safely &efficiently. TAS will have interface with TIS/OMIS.
EXCISE AND CUSTOMS:
When Goods are manufactured in the country & consumed in the country itself then the duty payable comes under Excise Control. Excise is an indirect tax. Although Excise is leviable as soon as goods are manufactured, it is collected only when goods are removed from a factory or a bonded warehouse. Custom Duty is a tax on Import/Export of goods in to/out of the country. Imported goods are permitted to be stored in Bond and Duty is collected at the time of removal of goods bond for home consumption.
SELF REMOVAL PROCEDURE (SRP)
Under this procedure no physical supervision of Excise officers is necessary for removal of excisable goods and other operations in a factory/warehouse. In order to ensure that this is not abused, a detailed accounting procedure, periodical returns and inspections audits have been introduced.
RESPONSIBILITY:
RIL and OIL COMPANIES shall separately be responsible for preparation and submission of returns, records maintenance of both Statutory/Non statutory as applicable to them in respect of the Evacuation of Agreed
69
Products as per Excise/ Customs Rules/Regulations. Some important Records/Documents are noted below.
70
GATE PASS --- GP-1 AND GP-2. PERSONAL LEDGER ACCOUNTS (PLA). INVOICES/CHALLAN. AR3 FOR REMOVAL OF EXCISABLE GOODS IN BOND FOR
TRANSFER TO ANOTHER BONDED WAREHOUSE. AR4 FOR REMOVAL OF EXCISABLE GOODS FOR EXPORT. BILL OF ENTRY. BILL OF LADING. LICENCE FROM COLLECTOR OF CUSTOMS. RG-1 REGISTER SHOWING QUANTITY OF EXCISEABLE GOODS
CLEARED. RT-12 MONTHLY RETURN GIVING DETAILS IN RESPECT OF
QUANTITY. MANUFACTURED, RECEIVED AND CLEARED. DECLARATION UNDER RULE 173B AND 173C. GAUGE BOOK/DIP MEMO. QUALITY CERTIFICATE. CT-1 CENTRAL EXCISE LICENCE. MONTHLY CALIBRATION CERTIFICATE.
To the extent operationally feasible, transaction between RIL and OIL COMPANIES should be based on duty paid withdrawals. Each party should be responsible for compliance with all formalities in its respectively premises. Whenever, Bonded transfers of agreed products from RIL to OIL COMPANIES take place, all excise duty shall be paid by OIL COMPANIES on duty paid withdrawal there after. RIL is responsible for compliance of all formalities in its premises.
INVOICING TO OIL COMPANIES:
Reliance processes a consolidate Invoice for sales made to OIL COMPANIES on a daily basis. All deliveries from beginning of first shift till end of third shift shall be for the same day. In other words date change in documents should follow this timing rather than from mid night to mid night. These Invoices should be processed product/mode/category wise (Bonded or Duty paid). The quantity for this Invoice shall be the sum of individual Gate pass Quantities converted to 150c quantities applying relevant Density/Temperature.
Mutually Agreed-pricing formula should be applied on the total quantity at 150c in order to arrive at total Invoice value by RIL.
71
6 RELIANCE CORE VALUES AND WORK
CULTURE
72
RELIANCE CORE VALUES AND WORK CULTURE
Every enterprise in Reliance evolves around the core belief that:
“Growth is a way of life”
This philosophy has been constantly furthered by a “Bias for Action”
Reliance also believes in,“Think Big, Think Fast & Think Ahead. Pursue your Goals even in the face of difficulties, & convert adversities into Opportunities”. Another strong value for Reliance.Here “can do approach” completely dominant the minds.Fundamental elements of its core values & work culture also provide framework for companies expectation from its employees.
Mastering the Fundamentals:
Excellent command of one’s functional area is the starting point in Reliance.
This is augmented by intimate knowledge about the entire work process, its fundaments and its consequences.The “successful employees” is the one who is mobile and visible and who is familiar with the brass-tacks.
Continuing Education & Learning:
Reliance has kept itself ahead by establishing an environment of constant learning & knowledge enchantment. It provides ample opportunities for continuous learning.
It also expects employees to document and institutionalize this collective learning and constantly engage in knowledge sharing & transfer of learning with in the organization.The “Company” believes that education & learning will enhance your ability to contribute to company’s goals as well as personal prospects.
EMPOWERMENT:
Employees in Reliance are empowered based on knowledge, skill & attitudes.Here one’s demonstrated abilities and positive attitude is a ticket to becoming empowered.Employees are expected to take personal ownership of his/her functions and assignment & stay focused. Empowerment is not only right but it is a responsibility.
73
TRUST:
Trust is a concept with infinite nuances and hence cannot be fully realized through a statement of intent.
At one level it is reflected in the empowerment and operational freedom in its area of expertise. On another level it has to be experienced in the relationships that it forge with its fellow employees, supervisors & peers. It is a two way street.
INITIATIVE & INNOVATION:
Initiative & ability to think differently are hallmarks of Reliance and have played very significant role in its growth and success.These commitments are a distinct feature of Reliance work culture.Reliance believes that ambiguous situations can be dealt with strong initiatives and commitment to end results.
TEAM WORK:
Teamwork is fundamental to RIL belief in creating non-hierarchical work Environment.
Company encourages teamwork.It creates an enormous opportunity to learn from each other’s experience.Cross-functional teams create synergy between various functions & Reliance commonality of approach.
INTEGRITY:
The company expects total financial and intellectual integrity from all employees.
• All the financial dealings of employees, with in the company and with outside agencies should be transparent to the company.
• Reliance work culture depends more on verbal communication and hence integrity of thoughts, speech and action also assume equal importance.
Adherence to the above enunciated core values and work culture aspects are absolutely essential and no compromise is permissible.
74
HEALTH, SAFETY & ENVIRONMENT POLICY:
“Safety of a person override all the production targets” is the health, safety & environment policy of Reliance.
To attain this, the provisions of safeguard the health, safety & environment in the plants:
Properly designed plants.
Effective use of safe working procedures & practices.
Meeting in all respects the applicable statutory requirements.
Clearly defined procedures for inspection, operation & emergency shut down and their updating.
Imparting relevant training and strict validation of employees after training.
Continuous & systematic & micro level auditing – internal as well as external of work procedures and practices.
Continuous & systematic education of company’s contractors and transporters personnel for observing safe work practices.
Detailed investigations of all incidents including the minor ones & near miss incidents followed b recommendations to avoid recurrence.
Analyze the findings or investigations of accidents in similar industry and take steps to prevent such accidents in the plants.
Keep abreast with the latest international codes, standards & practices.
Continuous of plant & ambient environment as well as of various effluents liquid, gas & solids to maintain a clean and safe environment in and around the plants.
Pre-Employment and periodic medical check ups of employees for early identification of occupational health hazards.
RELIANCE QUALITY POLICY:
75
Reliance is committed to total customer satisfaction in terms of Quality and service for the entire range of its products, its continued commitment of excellence & innovative efforts helps in staying ahead as market leaders.
76
HUMAN RESOURCE DEVELOPMENT PHILOSOPHY:
Fundamental to the work of the Reliance organization and its ultimate competitive position, is a respect for the development of employees through self-help & guidance to foster common purpose & cohesion.
Reliance believe in:
Employee development is not just about acquiring skills to solve specific problems but also expanding minds to address problems and opportunity which have now become apparent with full understanding of cross functional linkages.
Continuing personal development is the constant obligations of all employees and constant responsibility of all executives, managers and supervisors.
The development and use of human potential and a learning organizations.
Continuous success in the future.
77
7 SUGGESTIONSRECOMMENDATIONS
78
SUGGESTIONS/RECOMMENDATIONS:
ROAD:
Road facilities should be increased by 6 lanes passing and Road condition should be improved on all major connecting roads to avoid,
Over crowding of trucks.
Delayed & Unsafe dispatch of product.
Reduce chances of accident.
Reduce cycle time.
Adequate safety measure to avoid fire-catching devices for safe loading.
Adequate bay facilities for products having higher demand in market.
Cycle Time of truck should be reduced.
Most of the time waste in waiting and transits time like in a queue at time office, at a loading point or bay, at the time of invoice so it should be reduced by proper facilities try to increase no of counter at the time office and load office.
Interface between SAP & TAS and other Oil Companies servers should be fast enough.
Inventory should be maintained at optimum level.
Reduce chance of leakage while loading.
Reduce chance of mistake at TOL.
Give proper knowledge to truck driver & cleaner about function of touch key and loading.
Properly working of Display Board.
In addition make proper and somewhat loud announcement in advance at parking so next turn person be ready for his turn.
79
All the documents require to check out should be bring out by supervisor of Transport Company instead of the driver or cleaner this would be very helpful for the smooth working of person at time office and save time.
RAIL:
Rake movement should be improved to meet evacuation target.
Automation loading should be improved.
Try to reduce any chance of mistake by operator at time of loading by giving him proper knowledge and training.
Better co-ordination between oil companies and railway persons and RIL employees.
80
8 FUTURE PROJECTS IN INDIA
81
Installed Capacity Of Petroleum Refineries In India:
Regio Company Name Place Yr. OfInstallation
Capacity
(mmtpa)
ExpansionPlans
North Indian Oil Corporation (IOC)
Mathura 1982 8.00 6.00
Indian Oil Corporation (IOC)
Panipat 1998 6.00
East Indian Oil Corporation (IOC)
Digboi 1901 0.65 1.80
Indian Oil Corporation (IOC)
Guwahati 1962 1.00
Indian Oil Corporation (IOC)
Barauni 1964 4.20
Indian Oil Corporation (IOC)
Haldia 1975 4.60
Bongaigon Refinery & Petrochemicals Ltd. (BRPL)
Bongaigon 1979 2.35
Numaligarh Refinery Ltd (NRL)
Numaligarh 1999 3.00
West Hindustan Petroleum Corpn Ltd. (HPCL)
Mumbai 1954 5.50
Bharat Petroleum Corp. Ltd. (BPCL)
Mumbai 1955 6.00
Indian Oil Corporation (IOC)
Koyali 1965 13.70 1.50
Reliance Industries Ltd. (RIL)
Jamnagar 1999 30.00 13.50
South Kochi Refineries Ltd. (KRL)
Kochi 1966 7.50 6.00
Hindustan Petroleum Corp. Ltd. (HPCL)
Visakh 1957 7.50
Chennai Petroleum Corp. Ltd. (CPCL)
Manali 1969 6.50 3.00
Chennai Petroleum Corp. Ltd.
Narimanam 1995 0.50 0.50
Mangalore Refinery &Petrochemical Ltd. (MRPL)
Mangalore 1996 9.00
Total Refining Capacity 116.0
82
83
FUTURE PROJECTS IN INDIA:
BINA REFINERY:Originally promoted by Bharat Petroleum Corporation and Oman Oil Co., but the latter has opted out. It is to be set up at Bina in MP with a capacity of 6million mtpa expected.
ESTERN INDIA REFINERY:Joint Venture between Indian Oil Corporation and Kuwait Petroleum Corporation. Being set up at Abhayachandrapur, Orissa with installed capacity of 9million mtpa.
BHATINDA REFINERY:Promoted by Hindustan Petroleum. Proposal for joint venture being discussed with group of UAE. Proposed capacity is 9 million mtpa.
PARADIP REFINERY:Indian Oil implement the project on its own after Hinduja Group opted out of the project.
ESSAR OIL REFINRY:It is promoted by Essar Group with capacity of 12 million mtpa at Jamnagar.
HINDUJA REFINERY:The Hinduja Grup is setting up a 2 million mtpa lube oil refinery at Hardispur in Orissa.
SOROS REFINERY:The US based Soros Group is promoting this 6 million mtpa capacity refinery at Haldia, West Bengal.
84
PIPELINE NETWORK IN INDIA:
Pipeline Length(KM)
Capacity(MMTPA)
Owner Year ofCommission
Guwahati-Siliguri 435 0.8 IOCL 1964Koyali-Ahmedabad 116 1.1 IOCL 1966Barauni-Kanpur 669 1.8 IOCL 1966Haldia-Barauni 525 1.4 IOCL 1966Haldia-Mourigram-Rajbandh
269 1.3 IOCL 1974
Mathura-Jalandhar 526 3.7 IOCL 1982Kandla-Bhatinda 1443 6.0 IOCL 1996Mumbai-Pune 161 3.9 HPCL 1985Digboi-Tinsukhia 75 0.7 IOCL -Mumbai-Manmad 252 4.3 BPCL 1998Visakh-Vijaywada 356 4.1 HPCL 1998Total 4827 29.0 - -
VKPL (Vadinar-Kandla Pipeline):It is a joint venture by PIL(Petronet India Ltd.) and IOC.It is 117 Kms long and having capacity of 11.5 MMTPA.This pipeline is meant for evacuation of Petroleum Products from Refineries of Reliance at Jamnagar & Essar Oil Ltd. (EOL) being setup at Vadinar, at present it is laid from Reliance Refinery at Jamnagar to Oil installation of IOC at Kandla where it is hooked up with the existing Kandla-Bhatinda Pipeline of IOC.
85
SOME OTHER PIPELINES PROJECTS ARE:
Kochi-Karur Pipeline (CCKPL)JV by PIL & BPCLLength 292 KmsCapacity 3.3 MMTPA – First Phase 4 MMTPA – Second Phase
Mangalore-Hassan-Banglore (MHBPL)JV by PIL & HPCLLength 364 KmsCapacity 5.5 MMTPA – First Phase 8.5 MMTPA – Second Phase
Chennai-Madurai (CTMPL)JV by PIL & IOCLength 520 KmsCapacity 2.0 MMTPA – First Phase 2.5 MMTPA – Second Phase
Bina-Kanpur PipelineJV by PIL & BPCL
Paradip-Rourkela PipelineJV by PIL & IOC
Bhatinda-Pathankot PipelineJV by PIL & HPCL
86
LONG TERM DEMAND ESTIMATES FOR PETROLEUM PRODUCTS CONSUMPTION IN INDIA. (IN MMT):
Product End of10th plan
2007
End of11th plan
2012
End of12th plan
2017
End of13th plan
2022
By
2025LPG 10 13 15 19 20MS 10 15 21 28 34NAPHTHA 16 19 22 27 29ATF 3 3 4 4 4SKO 15 16 17 18 19HSD 69 99 136 182 214LUBES 1 2 2 2 3FO/LSHS 17 21 25 30 33BITUMEN 4 4 6 7 8OTHERS 3 3 4 5 6TOTAL 148 195 252 322 370
VISION 2025:
Estimated required capacity is approximately 360 MMTPATotal Investment in Refining Sector is about of Rs 2,70,000 Crore.
Rs 1,35,000 Crore Marketing Infrastructure.Rs 21,000 Crore Pipelines.Rs 16,000 Crore Product Tankage & Related facilites.Rs 93,000 Crore Retail Outlets.Rs 5,000 Crore LPG Bottaling Plants over the same period.
Out of total demand in future around 90 % of it is of Middle Distillates.
87
88
BIBLIOGRAPHY
RIL journal
Petroleum Review
RIL monthly review
Oil & Gas journal
Refinery Reviews
Handbook Of Writers & Editors by S. Rao
Website www.ril.com
89
![ACCT NM ADDRESS CITY PIN CODE …...MINA JAYESH MEHTA [STAFF] JAMNAGAR, , JAMNAGAR JAMNAGAR RAJENDRA BABULAL ZAVERI 504 SHALIBHADRA APTT, PANCHESWAR TOWER ROAD, JAMNAGAR JAMNAGAR JYOTIBEN](https://img.pdfslide.us/doc/110x75/5ecf8c4907628275d208e478/acct-nm-address-city-pin-code-mina-jayesh-mehta-staff-jamnagar-jamnagar.jpg)
