Board of Directors

IndianOil is the country's energy behemoth and is dedicated to strengthen India's energy security. The corporation is the largest Central Public Sector Enterprises (CPSE) and works under the aegis of the Ministry of Petroleum and Natural Gas (MoP&NG). The IndianOil Board, comprising of multi-faceted individuals with varied backgrounds, form the apex body and are nominated by the Government. The Board is headed by the Chairman, who is appointed by the Government, as per the provisions of the policy for CPSE's. An optimum mix of Whole-time Functional & Executive Directors, Non-Executive Independent and Government Nominated Directors comprises the Board. Non-Executive Directors are selected on merit basis and come from diverse backgrounds viz., academics, administration, energy, government and public sector, law, marketing, etc. The Board is empowered to take decisions and drive the company to greater heights. The Board of Directors oversees the overall functioning of the company, policy formulation and sets strategic goals in order to achieve the vision and mission of the Corporation.

The strength of the Board of IndianOil was 18 Directors as on 31.03.18, comprising seven Whole-time Functional & Executive Directors and eleven Non-Executive Directors, out of which nine are Independent Directors & two are Government Nominee Directors. Women epresentation on the Board was 5.55%. The company has been able to comply with all the statutory requirements as per SEBI. All mandatory disclosures regarding the positions held by each of the Directors in other companies or committees have been made in the Annual Report .

At the beginning of each financial year, a Memorandum of Understanding is signed between the Government of India and IndianOil, to set the performance target and monitor the performance of the company against the given set of targets and parameters under economic, social and environment categories.

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Governance Structure

Board Committees

Beyond the call of duty

Board Committees

Various Board Committees have been constituted to facilitate smooth and efficient flow of decision. During the year 2017-18, there were 12 functional Board Committees.

Board Meetings

During the year 2017-18, 13 board meetings were held. The maximum gap between 2 subsequent Board meetings was 38 days, which stood at a gap of maximum 58 days for the Audit Committee meetings. The Board meetings are generally held once in a month. The dates of the meetings are fixed & agenda papers circulated well in advance and intimated to the Board members so as to enable them plan their schedule accordingly. However certain exigent proposals are tabled at the Board Meeting with the approval of the Chairman. Presentations are made to the Board on various functional and operational areas of the Company like Refinery, Pipelines and Marketing operations, major projects, financial highlights etc. Information related to the agenda for various board meetings is given in the Annual Report .

Remuneration of Directors

Ethics & Integrity

Compliance: All our installations comply with the provisions of the Corporate Laws, Guidelines and rules, as mandated by the MoP&NG. As a good corporate governance practice, an annual secretarial audit of all the records and documents of the company is carried out and liaison officers are appointed at various locations to ensure a proper implementation of government directives. The audit report is made public as an Annexure to the Annual Report and is duly verified by the Company Secretary. As per the provisions of the MSIHC rules 1989, an external safety audit of all our operating pipelines locations is carried out by third party agency. Stakeholders' Relationship Committee received 3474 complaints during the year 2017-18, all of which were duly resolved.

Whistle Blower Policy: IndianOil has a well defined whistle blower policy that is accessible to all employees and any violation with reference to the laws, rules, regulations or code of conduct can be reported to the concerned authority or to the Chairman of the Audit committee. Anonymity and confidentiality of the applicants are maintained at all levels so as to protect from any form of discrimination at the workplace. The corporate whistle blower policy can be accessed from the corporate website at the following link:https://www. iocl.com/InvestorCenter/Whistle_Blower_policy.pdf

Corruption and Anti-Competitive Behavior: As per the Conduct, Discipline and Appeal Rules (CDA Rules) and Certified Standing Orders, all the employees of the organization are governed by the CDA rules. The CDA rules provide guidelines to assess the risk and ascertain various frauds and reporting, investigating and reporting of the incidents suspected of corruption. As per the various policies and guidelines issues by the Government of India, systems have been implemented to check cases of unethical acts, bribery and corruption. In line with the statutory guidelines, an in-house mechanism is in place to check the anti-competitive behavior. It is mandatory for all employees to comply with the anti-corruption policies. A structured grievance redressal mechanism has been developed to encourage disclosures related to any kind of misconduct. A routine check of all installations is carried out for corruption and related risks and all employees, suppliers and vendors are covered under the ambit of these policies. The number of disciplinary matters related to vigilance cases disposed off during the year 2017-18 was 57. The number of such cases pending at the end of year 2017-18 was 35. The aforesaid cases pertain to irregularities such as indiscipline, dishonesty, negligence in performance of duty or neglect of work .

Three Cases are pending before the Courts pertaining to anti-competitive behavior. Brief of the said cases is as under:

1. North-East Dealers Association had filed complaint before CCI alleging that PSU OMCs are using unfair terms and conditions in the Dealership Agreement and misuse of the dominant position. CCI vide order dated 11.02.14 dismissed the said application for want of merit and substance. Against the said order, North-East Dealers Association filed appeal before COMPAT. The COMPAT vide order dated 26.11.15, set aside the order of CCI against which CCI has filed SLP before the Hon'ble Supreme Court. The Hon'ble Supreme Court admitted the appeal on 13/4/2016 and stayed the operation of order passed by COMPAT.

2. OMCs received notices dated 22.04.2013 from DG requesting information on various modalities of MS pricing as CCI had suo moto started investigation into the prices of MS and asked why OMCs increased and decreased prices simultaneously and by similar amounts. OMCS defended action of CCI submitting that PNGRB had jurisdiction and not CCI. CCI rejected the contention of OMCs vide order dated 23.10.2013. IOCL has filed WP before Delhi High Court against CCI's order 23.10.13. High Court of Delhi vide its order dated 22/11/2013 granted an ad interim stay till further orders.

3. Reliance Industries Limited filed complaint against 3 OMCs & National Aviation Company India Limited (NACIL) before the Competition Commission of India wherein allegations were made about cartelization etc. of tender floated by NACIL for supply of ATF for 2010-11 .11. OMCs had raised preliminary objection relating to the jurisdiction CCI. By Order dated 30.09.2010 CCI held that the preliminary objection was legally not tenable and accordingly dismissed. Against this Order appeal is preferred in High Court.

Public Procurement Policy for Micro,Small & Medium Enterprises (MSME)

As a Public Sector Enterprise and responsible corporate citizen, IndianOil is bound to promote local procurement and skill development / livelihood opportunities for local population. While engaging suppliers, we seek to ensure prompt dealings with integrity, impartiality and courtesy and help promote ancillary industries, in the vicinity of our work places.

As per the provisions of the Public Procurement Policy for Micro and Small Enterprises (MSEs) order 2012, it is mandatory for all CPSEs to procure a minimum of 20% of the total annual value of goods and services from Micro and Small Enterprises. Accordingly, IndianOil encourages MSEs in taking part in various tenders floated by the corporation by undertaking steps like waiving off the Earnest Money Deposit (EMD)/ Tender Fees. During the year 2017-18, 24.09% (excluding crude oil & gas) of our goods and services were procured from MSEs. This initiative is bound to boost the local industry and also provide livelihood opportunities, with wider economic effects. Bulk LPG tender has been floated on State basis to promote participation of local entrepreneurs. Along these lines, IndianOil also seeks to boost the Small and Micro Enterprises in the country through preference purchases.

External Commitments and Public Policy Participation

IndianOil proactively advocates for public welfare with an aim to bring positive change in governance and compliant behavior among key stakeholders such as employees, customers and business partners. Being a government of India enterprise, IndianOil works with various ministries. IndianOil is also actively involved with the various committees formed by the Government of India and other professional bodies, both national and international, for advancement or improvement of public good by contributing to Economic Reforms, Sustainable Business Principles, Energy Security, Inclusive Development Policies and other industry-related issues. As an active founder member and now a permanent member, IndianOil actively participates in the meetings and conferences of the Global Compact Society and supports its ten guiding principles on human rights, labour standards, environment and anticorruption.

Human Rights

Our approach to workforce is based on the fundamentals of fostering diversity by offering equal opportunity to all employees without any discrimination. IndianOil does not engage into or support direct or indirect discrimination in recruitment, promotion, salary benefits, training and post retirement benefits based on caste, religion, disability, gender, age, race, colour, marital status, etc. All statutory provisions and policy guidelines are followed strictly, without any discrimination while providing welfare facilities for employees' health, efficiency, financial well-being, employment, social status, growth, remuneration or development, satisfaction etc. Explicit terms and conditions are laid down in the General Conditions of Contract (GCC), with instructions to comply with human rights aspects including separate toilets, washing places for men and women, compulsory canteen facilities and medical services for all workers, which are binding on all the vendors and suppliers listed with IndianOil. Provisions are also made wherein all vendors and suppliers are required to submit a written declaration stating that no child labour has been engaged at his/her facilities. IndianOil does not support any form of forced or compulsory labour and discourages any industry from doing so.

There is a robust structured grievance redressal mechanism which is accessible to all IndianOil employees to report any kind of human rights violations. All our installations are monitored and assessed periodically for any human rights violations. The minimum wages paid to the contractors and employees are revised periodically as per the provisions of the Minimum Wages Act 1971 as prescribed by the Government of India, and the salaries paid to all the categories of employees fulfills the norms of the act. A strict policy towards prevention of sexual harassment at workplace is in effect across all the units. If any incidents of sexual harassment are reported,they are taken up by a Complaint Committee and if proved, an appropriate disciplinary action is taken against the offending employees according to the Conduct, Discipline and Appeal Rules (CDA Rules).

There were no incidents of human rights violations reported during the year. No incidents involving rights of indigenous people and discriminated practices or significant disputes involving local communities and indigenous people were reported during the year 2017-18. No instances of forced, compulsory or bonded labour were reported during the year. No child labour is employed at any of our establishments and a minimum age limit of 18 years for permanent and contract labour is maintained. No complaints, whatsoever, were reported during the year pertaining to child labour. No political contributions – financial or in-kind - were made directly or indirectly to any recipient or beneficiary by IndianOil.

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Sustainable Sourcing

IndianOil's business interests extend across the entire hydrocarbon value chain - from exploration & production, refining, pipeline transportation to marketing of petroleum and petrochemical products. In its business pursuit, crude oil is the major raw material which accounts for over 90% of total material consumption interms of value.

IndianOil has well diversified basket for crude oil sourcing involving long term contracts for its overseas procurement besides partnering with domestic upstream oil & gas companies for indigenous procurement. During the year, Corporation improved its share of indigenous procurement (17.88%, in terms of value vs. 16.96% during the previous year) leading to reduced dependence on imports. The corporation also strengthened its position as an upstream player by building a portfolio of oil & gas assets, with participating interest in 9 domestic and 10 international blocks which would ensure uninterrupted crude supply in the long term.

IndianOil's vast network of pipelines or the “Underground Highways”, as they are referred to within the organisation, are the most energy-efficient and environment-friendly mode of transportation. The 13,391 km long pipeline network, as on 31.03.2018, is productively used for supply of crude to Refineries and delivery of petroleum products to marketing terminals.

• During the year, IndianOil transported 73.068 MMT of crude oil through a combination of time charter & voyage charter based on the parcel size, prevailing market price, logistics involved including co-loading of different parcels for optimisation of freight cost.
• Approximately 83% of imported crude oil was transported through very large crude carriers.
• Achieved 98% utilization of time charter vessel through proper planning in deployment of vessels.

Inclusiveness

We ensure that the policies and guidelines issued by the Government of India are implemented to empower the socially backward, marginalised groups and under priviledged sections of society. Any grievance, whatsoever, is looked into with utmost importance through mechanisms established at Divisional, Regional and Unit levels and prompt action is taken to resolve it. To aid the differently-abled employees various facilities like ramps and Braille machines etc have also been provided at our installations. For uplifting marginalized, vulnerable and disadvantaged stakeholders section of our society, we have undertaken various CSR projectsinitiatives like having 33% reservation for female entrepreneurs while handing award of Kisan Seva Kendra (KSK) distributorships and petty contracts among others.

IndianOil pioneered the Pradhan Mantri Ujjwala Yojana (PMUY) by releasing 1.67 crore new LPG connections since the launch of scheme in May 2016. The programme is aimed to safeguard the health of women & children by providing them with a clean cooking fuel (LPG).

POSH: An e-module on Prevention of Sexual Harassment of Women at Workplace (POSH) was launched in September 2017 comprising modules on different areas of the concerned ACT. In its first phase this awareness programme covers 1021 officers in grades G, H and I.

Accountability

IndianOil is diligently focused on maintaining the highest ethical standards by ensuring transparency in all aspects of its operations and across its customer-suppliers base. The ethical and efficient demeanour of the business affairs is the mainstay for value optimisation of our stakeholders. We continuously promote work environment that nurtures and nourishes integrity, transparency and accountability. In 2008, IndianOil signed a MoU with Transparency International India (TII) for the implementation of the Integrity Pact (IP) across its installations which ensures that all the major procurement and work contract activities are governed by it. As per the terms and conditions of the pact, transparency, probity, equity and competitiveness must be maintained in all the procurement processes.

Currently, there are three independent external monitors (IEMs), who are nominated in consultation with The Central Vigilance Commission (CVC) and TII, to monitor all IndianOil tenders exceeding the value of Rs. 10 Crore. During the year 2017-18, IEMs held 11 meetings for monitoring the tenders. As per the conditions of the threshold value, 480 tenders came under the purview of the integrity pact while complaints were received against 13 tenders which were referred to the IEMs and deliberated. 7693 complaints related to services, tenders were received through the public grievance redressal system during 2017-18 and all the complaints were duly resolved. Further, 3,73,588 customer complaints were received during the year and 99.45% were resolved as on 31.03.2018

Right to Information

As per the guidelines laid down in the Right to Information Act (RTI), 2005, a robust feedback mechanism has been enforced through which shareholders and stakeholders can attempt to seek information on various issues, provided it isn’t disclosed on the corporate website or is not available in the annual report. Any information relating to the name, designation and address of the Chief Public Information Officers, Assistant Public Information Officers and Appellate Authority is made public on the corporate website for the ready reference. An RTI manual has also been uploaded on the website detailing the process to file an RTI. It can be accessed from the following link: https://www.iocl.com/Talktous/RTI.aspx

Vigilance

Trust is built only where there is transparency and accountability. The growing importance of vigilance functions cannot be undermined in any scenario where the companies globally are being analysed for their corporate governance practices.

By reiterating the policies and principles, standards and procedures of the organization through training and communications, IndianOil engages in raising awareness of all employees in the organization, and help the officers in discharging their duties efficiently and fearlessly, so that the Corporation can conduct its business in a fair and transparent manner. Activities such as information sharing on the Central Vigilance Commission (CVC) rules/ guidelines, conducting surprise quality and quantity checks of products in transit as well as sales points across the country, conducting system studies to bring out irregularities/inconsistencies, bringing transparency and economy in awarding and execution of contracts are undertaken across the organization. Documents relating to various contracts and procurements are scrutinized, inspections of retail outlets, LPG distributorships and Kerosene Dealerships are carried out, specific complaints are investigated by the Vigilance Cell. Various initiatives like e-tendering, e-collections, e-payments, file tracking system have been implemented across the organization to ensure transparent functioning and accountability. During the year 2017-18, 94 training programs on vigilance awareness were conducted and were attended by 2,300 employees.

Vigilance Department of the company is headed by the Chief Vigilance officer (CVO) who acts as a link between the corporation and Government CBI, CVC, etc.

E-PMS

Business Responsibility Report (BRR)

IndianOil, the largest Public Sector Enterprise, works under the aegis of the Government of India and complies by all the statutory requirements laid down by the regulator. In 2012, SEBI directed the top 100 companies listed on BSE and NSE (by market capitalization) to publish their Business Responsibility Report (BRR) as a part of their Annual Report in line with the prescribed guidelines. IndianOil has been disclosing information as per the indices laid down for reporting BRR since then, annually.

Risk Management

The Oil and Gas sector is vulnerable to various threats including depleting resources, global oil & gas crisis, political uncertainities and crude oil price fluctuations among others. IndianOil has a Risk Management Committee, comprising of senior executives of the organization that convenes a meeting every quarter and assesses, both, internal and external risks. The committee categorizes risks as 'A' and 'B' category risks, debates the issues and devises action plan to mitigate them. These are then presented to the executive committee, which consists of Chairman and functional Directors of the Board. Some of the risks & concerns identified during the year 2017-18 are as follows :

Corporate E-Security

IndianOil is growing and the growth is backed by digital growth as well. In its digital journey, IndianOil is adopting newer technologies and thereby increasing its cyber footprint. It not only has one of the largest data networks in India but is also amongst the top Indian organizations in terms of digital transactions. With such a huge digital footprint, cyber security is of paramount importance for the corporation. In tune with the global practices, IndianOil has implemented a defense-in-depth cyber security architecture. The three important elements for success and sustenance of any organization's cyber security projects and outlook are People, Process & Technology. It has also been referred to as the “Golden Triangle” and a back-to-basics approach to solving complex business problems.

To secure an organization properly, there has to be a comprehensive Information Security Management System which addresses People, Process and Technology in a cohesive single package. As part of the IndianOil's e-security, equal emphasis is given to the three aspects to maintain a secure and sustainable security posture. Technology is obviously crucial when it comes to cyber security. Technology can be deployed to prevent or reduce the impact of cyber risks, depending on the risk assessment. The cyber risks that IndianOil faces are identified, and controls are put in place and technologies needed are placed accordingly. The data centers of the corporation have the best of breed solution offered by the cyber security technology vendors for meeting the security requirements. In line with the continuous global advancement in technology, the cyber security appliances at the corporate data centres at Gurugram and Bengaluru are upgraded, as and when needed, with much more efficient appliances to handle the higher threat levels.

Process: IndianOil has a documented IT Policy, which was released in 2017 based on latest technological advancements and to address the latest challenges in IT world. Also as part of the ISO 27001 certification of the data centres, an Information Security Management System is in place which documents all the cyber security processes. IOCL data centres at Gurugram and Bengaluru now have the latest ISO 27001:2013 certification which was obtained in 2017. Regulatory requirements and guidelines for securing public sector undertaking's critical IT infrastructure for business critical applications as issued by the Government of India from time to time are also followed and complied by IndianOil.

People: At IndianOil, Cyber Security is a business issue and everyone has a role to play. Everyone in the business needs to be aware of their role in preventing and reducing cyber threats - whether it's handling sensitive data or working at highly critical units. As part of the security awareness campaign, a corporation wide exercise for understanding how to spot phishing emails was carried out in 2017. A pan-company Cyber quiz was organized to engage all the employees and bring awareness. Various awareness and technical trainings were organized to equip employees to handle the emerging cyber threats. The IT and security posture of the corporation has been appreciated at various levels.

A new customer facing project e-PIC was launched on 8th January, 2018. The portal has been designed to enhance customer experience. The portal provides the customers with a single platform to voice their issues requiring a service/support across any line of business of IndianOil. The concern is then appropriately routed to the concerned person in a centralized Grievance System, with a proper escalation matrix in place. The Social Relationship Management (SRM) module of project e-PIC was also implemented. This is expected to facilitate monitoring of all the important social media pages for gathering positive or negative sentiments about the Corporation. Any grievances on the social media would be integrate with the Centralized Grievance System.

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E-Initiatives

With the ever increasing importance of the role of information and technology in the work sphere; it is paramount for businesses to stay abreast with the technological advancements. IndianOil has developed various in-house platforms for enhancing the efficiency of the system and ease of work.

State of the Art Control & Monitoring Systems

During the year 2017-18, the cyber world was attacked by 2 ransomware attacks - “Wannacry” and “Petya”. Though IndianOil was able to shield its system from these attacks, nonetheless, awareness exercises were conducted across the locations to educate all e-mail users about cyber-attacks and safety from 'phishing' mails/SMS.

Additionally, cyber security audit of selected locations were carried out to identify the potential vulnerabilities and appropriate mitigations steps were taken to strengthen the security wherever required.

A centralized security operation centre was commissioned using which security devices across the organization are now being monitored centrally .

Grid-connected Renewable Power

IndianOil has cumulatively commissioned 185 MW of enewable power as on 31^st March 2018, which includes 68 MW of wind power and 17.5 MW of solar power. During the year 2017-18, we have generated 323 GWh against 171 GWh generated the previous year. The generation of 323 GWh corresponds to GHG emission reductions of 265 TMTCO₂e (thousand metric tonnes carbon dioxide equivalent).

Off-grid Solar Power

IndianOil aims to install Solar Photo voltaic plants across rooftops as well as spare lands in its installations. Accordingly, IndianOil implemented a solar policy in 2015-16 for installing off-grid solar PV systems. As on 31^st March 2018, we have total installed capacity of 16.5 MW of off-grid solar power projects. The power generated from off-grid solar power is 14 million units during the year, which corresponds to GHG emission reductions of 12 TMTCO₂e (thousand metric tonnes carbon dioxide equivalent).

Retail Outlet Solarisation

Retail outlet solarization is a flagship program by IndianOil aimed to create positive environment impact cross its value chain. Besides promoting sustainable value chain, the initiative reduces the retail outlet's dependency on diesel generators, safeguarding the ROs against power fluctuation and provides emission reduction (Scope-3, beyond our boundary). As on 31^st March 2018, IndianOil has solarized 9,140 retail outlets with a cumulative off-grip solar power installed capacity of 38 MW.

Solarized Retail Outlet

Sustainability and CSR Workshops

IndianOil believes enhancing the awareness of each employee of the Corporation about climate change vulnerability, impacts, and adaptation can help build individual and institutional capacity for undertaking climate change mitigation and adaptation measures. Accordingly, IndianOil organizes sustainability work-shops across the divisions and operating locations to enhance awareness about sustainability among the employees at all levels.

Rainwater Harvesting (RWH) Systems

With fresh water becoming a vulnerable resource, water conservation and efficiency measures are gaining momentum across sectors. Rainwater harvesting systems are an efficient and cost effective sustainable water management technique which would not only reduce the fresh water intake but also reduce the overall footprint. IndianOil has implemented rainwater harvesting policy to install rainwater harvesting systems in all the available catchment areas across the installations. Accordingly, we have installed 561 rainwater harvesting systems in IndianOil with the catchment area of more than 1,000 hectares. The RWH systems have the rainwater harvesting potential of 3 billion litres per annum, which amounts to approximately 3% of our refineries total water consumption. The rainwater collected from roof and surface run off were all treated and used in our operations.

RWH System at our Refinery

LED Implementation

Aligning our initiatives in synergy with the Government Policies, IndianOil aims to replace all the conventional lighting with LED lighting in its installations. As on 31^st March 2018, more than 3.4 lakh LEDs were installed in its locations.

Carbon and Water Footprint

IndianOil carries out carbon and water footprint activities across its installations every year through which it identifies the measures to reduce its footprints. IndianOil has taken a voluntary target to reduce its specific carbon footprint and specific water footprint by 18% and 20% respectively by 2020 as against the base year 2012-13. Water saving measures over the years have helped to reduce our specific water footprint by 8.61% till 2017-18 compared to 2012-13. Similarly, emissions reduction measures have resulted in specific emission reduction by 7.45% till 2017-18 against the base year 2012-13. Energy efficiency and ENCON measures, renewable energy generation are some of the measures that lead to reduction of our specific carbon footprint.

Biofuels

IndianOil is setting-up three 2nd Generation Ethanol Production plants at Panipat (Haryana), Gorakhpur (UP) and Dahej (Gujarat) of 100 KL per day capacity each. Land acquisition has been initiated for the project to be set-up in Panipat, whereas possibilities are being explored for land allotment to set-up the plant in Gorakhpur.

IndianOil has entered into MoUs with various parties for retailing of Bio-CNG and Compost through IndianOil retail channels. The parties would produce Bio-CNG from various sources including Municipal Solid Waste, Paddy Straw, Press Mud, Vegetable Market Waste & Cattle Dung.

Waste Management

IndianOil has installed 25 number of organic waste convertor/biogas plants across the installations to treat kitchen/organic waste and generate biogas. Biogas generated is used for cooking purpose, whereas the slurry is used as manure. We have installed indigenous biomethanation technology developed by IndianOil at our Digboi refinery.

Waste to Energy Plants

IndianOil has commissioned three waste to energy plants of 5 tonnes per day capacity each, at Varanasi, under Swatch Bharat Abhiyan. Two plants, one each at Pahadiya Mandi and IDH Hospital were commissioned during 2017-18. The total power generated during the year 2017-18 from these three waste to energy plants is 38,656 units (kWh).

Solar Lanterns

In an effort to reduce pollution from the usage of kerosene firewood, IndianOil is focused to provide solar based solutions to problems of erratic/ no electricity supply by selling solar lanterns in small towns, semi urban and rural areas through its various channels. Accordingly, IndianOil as sold 4,17,027 solar lanterns cumulatively as on 31^st March 2018. During the year 2017-18, 13,992 solar anterns were sold through LPG network.

Electric Mobility

IndianOil is exploring opportunities for manufacturing and retailing of Lithium-ion batteries besides setting-up fast charging stations. We have pilot charging station at an IndianOil Retail Outlet in Nagpur (COCO RBI, Nagpur) in collaboration with Ola. Another Charging Station has been put up at Centre half station, Sadiq Nagar, New Delhi with one charging point.

Carbon Neutral Events

IndianOil has undertaken carbon neutral event initiative to offset the GHG emissions generated from major business event by carrying out tree plantation at its installations. IndianOil made 16 events carbon neutral during 2017-18 by carrying out plantation of more than 1000 trees. Cumulatively, 107 events were made carbon neutral across the Corporation. To improve the survival rate and growth rate of trees planted, native species were chosen for plantation activity.

Carbon Disclosure Project (CDP)

Carbon Disclosure Project (CDP) is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. IndianOil has been disclosing its environmental performance to carbon Disclosure project since 2012. IndianOil is making disclosures under climate change module of CDP in which it discloses information regarding energy and emissions footprints.

United Nations Global Compact(UNGC)

United Nations Global Compact (UNGC) is a voluntary initiative to implement universal sustainability principles and to undertake partnerships in support of UN goals. UNGC has ten principles to encourage companies to operate responsibly and meet the requirements of Human Rights, Labour, Environment and Anti-Corruption. IndianOil, being a signatory member of UNGC since 2001, adheres to all the UNGC principles and reports its performance on the same.

Global Reporting Initiative (GRI)

Global Reporting Initiative (GRI) is an independent international organization which developed Sustainability Reporting Standards that help companies globally, to report on critical sustainability issues such as climate change, human rights, governance and social well-being. IndianOil has been releasing its annual sustainability report since 2005-06 and has been publishing its reports on sustainability performance in line with GRI guidelines since 2007-08. We follow the latest GRI guidelines while reporting our sustainability performance. Further, IndianOil's sustainability report conforms to GRI Oil and Gas Sector Supplement (OGSS), which provide guidance for companies involved in the exploration, production, refining, transport and sale of oil, gas and petrochemicals.

Panipat Refinery Eco-park

Materials

IndianOil believes material efficiency in the production improves its economic and business competitiveness besides reducing the environment impacts. IndianOil aims to ensure material and resource efficiency in its operations through state of art technologies, efficient utilization of raw materials, recycling of materials at different phases of operations and reducing the overall waste generation. IndianOil is conscious of the fact that its operations are highly dependent on imported raw materials and hence, various initiatives have been undertaken for optimum utilization of resources,considering the ever increasing demand and consumption and our dependence on natural resources. We also track the raw material consumption and waste generation across the value chain to avoid any leakage and effectively utilize our input materials. Crude oil and raw material consumption at our refineries is 69 MMT for the year 2017-18. During the year, IndianOil improved it's share of indigenous procurement (17.88% in terms of value vs. 16.96% during the previous year) leading to reduced dependence on imports.

Energy

Energy is a key driver for economic growth, and the energy demand in India is continuously increasing due to various social and demographic factors like Industrialization, population growth, urbanization etc. India, being a fast growing economy has made great progress across sectors like industrial, agriculture, transportation, commercial and domestic sectors over the past decades. With per capita energy consumption still lower than the global average, energy demand in India is projected to soar over the coming decades to achieve sustained and inclusive economic growth. However, the country's fossil fuel reserves are limited which entails efficient utilization of resources, deriving maximum value from the available resources. Hence, there is a greater emphasis for secured, sustainable and affordable energy as a means to underpin development, while addressing environmental concerns.

As a major mitigation initiative, energy efficiency and renewable energy policies have gained lot of importance over the years. Inclusion of three sectors viz., Railways, Refineries and Electricity Distribution Companies (DISCOMs) in the PAT (Perform Achieve Trade) scheme cycle-II shows that energy efficiency initiatives and policies are gaining traction across the sectors. BEE has achieved a cumulative energy saving of 8.67 million tonnes of oil equivalent (MTOE) against the target of 6.686 MTOE in the PAT cycle-I i.e., from 2012-13 to 2014- 15 .15. With the inclusion of new sectors, it is aimed to achieve an overall energy consumption reduction of 8.869 MTOE under the PAT Cycle -II.

IndianOil refineries contribute over 90% of Corporation's total energy consumption and the energy consumption across the refineries has been duly reported. Our total energy consumption during the year has shown a significant increase. This is due to the inclusion of newly commissioned Paradip refinery which achieved its full capacity utilization in May 2017. IndianOil has policy guidelines on Energy Audit to be carried out at the locations with an aim to reduce the energy consumption by 25%. Further, all our operating locations have designated energy managers to identify and implement energy conservation measures. During the year, the ENCON measures implemented at our refinery locations resulted in an estimated savings of 63,093 SRFT. By undertaking various energy efficiency initiatives across the refineries, our refineries have registered best ever Fuel & Loss (F&L), Specific Energy Consumption (MBN) and Energy Intensity Index (EII) of 8.75%, 72.6 and 98.5 respectively during the year 2017-18.

Emissions

Global warming due to anthropogenic emissions has grown into one of the most complex issues faced globally. The vast consequences of climate change threaten to affect not only our environment but also economic, social and political setup. Warming of our ecosystem is unequivocal, and since the 1950s, many of the observed climatic and environmental changes have been unprecedented. The average surface temperature has risen by about 0.8°C globally since 1880, while sea level has risen by 6-8 inches in the last century. Due to changing weather patterns, our planet is already experiencing extreme climate conditions viz. heat stress, flooding, drought, reduction in agricultural yield, sea level rise, extreme precipitation and storm surges etc. The problem is further accentuated by the fact that the rate of occurrence of these climatic extremes are increasing, e.g. the rate of rise in sea level in the past two decades is nearly double the rate observed in 100 years preceding it. Human influence on climate system is more evident with the co₂ levels surpassing 400 ppm in 2013 for the first time in the history of mankind. In this context, it is critical that companies and governments actively pursue sustainable growth by continuously undertaking various climate mitigation and adaptation actions to prevent adverse impact on our ecosystem.

IndianOil is committed towards low carbon growth by achieving operational excellence that would reduce its carbon footprint. In view of the same, we have undertaken various mitigation measures like energy conservation, energy efficiency, renewable energy generation and tree plantation etc. across our operating locations. IndianOil has also taken a voluntary target to reduce its specific carbon emissions by 18% by 2020 compared to base year 2012-13.

For IndianOil, refineries contribute more than 90% of the total corporation's emissions. We carryout carbon footprinting exercises across our operating locations through which we identify and implement emissions reduction measures. During the year, the total emission from the refineries is 16.7 MMTCO₂e, which is higher by 25% compared to 2016-17. This increase in total emissions is due to the inclusion of newly commissioned Paradip refinery. The specific emissions from the refineries stand at 0.242 MTCO₂e/MT of crude throughput, which is a reduction of 7.45% compared to 2012-13. The ENCON measures implemented during the year has estimated to reduce carbon dioxide emissions equivalent to 2,04,321 tCO₂e. The emissions reported by the corporation are estimated as per international protocols and relevant industry guidelines.

Data Pertains to Refinery Division

During the year, total throughput by the pipeline division is 85.68 MMT and the total GHG emissions associated with our pipeline operations is 3,85,121 tCO₂e. The specific emissions during the year 2017-18 is 4.55 kg CO₂e/ MT of throughput, against 4.59 kgCO₂e/MT for the year 2016-17. Further, an estimated 7,85,080 tCO₂e of GHG emissions have been avoided through our pipeline transportation as compared to transportation through rail network.

Prevention of Air Pollution

IndianOil refineries are complied with the norms of Central Pollution Control Board (CPCB) and State Pollution Control Board (SPCB) to continuously monitor the air emissions from its operations. The corporation tracks its SOx, NOx, stack emissions and particulate matter emissions released into atmosphere from its operations and ensure the emission levels are within the permissible limits.

Water

Water has become one of the most precious and scarce resources today. Water related risk is a growing operational and strategic risk for continued operation of any business. At present, there is an increasing competition for water resource across the geographies, which poses a huge sustainability risk for the communities and the ecosystem. As per a recent report by 2030 Water Resources Group, water demand in India 3 would reach 1.5 trillion m³ by 2030 against the current water supply of 740 billion m . Considering the projected growth, it is estimated that India may face an aggregate gap of 50% of water demand against the supply. Though the water stress in the country is majorly driven by the agriculture sector, adopting water efficiency measures across industrial, commercial and residential sectors has to be ensured, besides reusing/recycling for efficient utilization of water and to address the water related risks.

IndianOil understands that water is the vital resource for its sustained operations, takes continuous actions to improve its water efficiency and to reduce overall water footprint. It aims to reduce the effluent water generation in its operations and recycle every drop of effluent water generated. We have installed water metering systems across our installations through which we continuously monitor total water consumed from various sources, effluent water generated and effluent recycled in our operations. We are making steady progress towards our voluntary target of reducing our specific water consumption by 20% by 2020 compared to 2012-13 levels by undertaking various water conservation measures. During the year, the total water consumption by our refineries stands at 99.45 million KL. The increased water consumption is due to the inclusion of newly commissioned Paradip Refinery. However, the specific water consumption by our refineries stands at 1.44 m³ /MT of crude processed for the year 2017-18, which is a reduction of 8.61% compared to 2012-13.

Water footprinting exercises have been carried out every year across the locations to identify and implement water savings measures. We had installed over 560 rainwater harvesting systems till date with water harvesting potential of around 3 billion litres per annum. During the year, IndianOil refineries have recycled around 38.74 million Kl of water i.e., 89% of effluent water generated. For Indian Oil, surface water is the major source followed by ground water. Measures like rainwater harvesting, reusing/recycling of effluent water generated have helped refineries to reduce the fresh intake of water. We continuously monitor the quality of treated effluent water discharged outside our installation and ensure the PCB guidelines are complied with. Further, IndianOil has ensured that no water resources have been significantly affected due to its operations.

Waste

IndianOil strives to reduce the amount of waste generated at different phases of its operations across the value chain and reuse/recycle the waste generated wherever possible. Oil industry handles highly hazardous and toxic products and hence, safe disposal of waste generation is of utmost important for IndianOil. The wastes that are not recycled in our operations are disposed off as per the CPCB and SPCB norms. We continuously monitor the quantity of hazardous and non-hazardous wastes generated in our value chain and disposed, and records are maintained for the same. The major hazardous wastes generated during our operations are oil slop, oil sludge, spent catalyst and ETP sludge.

IndianOil aims to derive maximum value from the waste generated. Accordingly, we have taken waste paper recycling initiative and implemented organic waste convertors across the locations. For waste paper recycling, our locations have partnered with third party recyclers who would collect the waste paper and provide new paper stationeries against the same. During the year 2017-18, we have recycled around 130 tonnes of waste paper. To treat the organic/kitchen waste generated at our locations, we have installed organic waste convertors and biogas plants. The biogas generated from the biogas plants/organic waste convertors is used for cooking purpose and the compost generated is used as manure. During the year, we have treated 338 tonnes of organic wastes through biogas plants/OWCs installed at our locations. We are not transporting, importing, exporting or treating waste deemed hazardous under the terms of BASEL convention.

Environment Expenditure

IndianOil complies with all the local and national laws and regulations without fail. There have been no violations and penalties reported for the year 2017-18 regarding our operations. We comply with all the environmental standards by central pollution control board and state pollution board. There have been no show cause/ legal notice received from CPCB/SPCB for the year 2017-18. Further, there were no fines, monetary or non-monetary sanctions for non-compliance with environmental laws and regulations have been reported during the year. Strict environmental and regulatory compliance have been achieved across the company.

Gujarat Refinery has received three grievances through GSPC in 2017-18, with respect to foul smell in Vadodara city, dumping of waste at Chamunada nagar-GIDC, Smell in areas of Jetalpur & Refinery boundary, and the same have been addressed and resolved. In Ahmednagar, public grievance case for contamination of Groundwater caused due to leakages of products from petroleum storage tanks and pipelines installed by IndianOil & BPCL was filed and the same is pending with NGT (National Green Tribunal). All the directions given by NGT court are complied by IndianOil.

Bio-Diversity

IndianOil believes Biodiversity is of greater importance for balanced and stable ecosystems. Thus, any harm created to the ecosystems can have serious impacts on habitats of interdependent animals, plants, and microorganisms and their environment. To conserve the natural habitats, IndianOil has developed greenbelts in its operating locations. Also, extensive tree plantations have been undertaken across the refineries, townships and other installation to develop green cover. Native tree species have been chosen to carryout the plantation activity. During the year 2017-18, around 1,22,300 trees have been planted in our operating locations.

Our Employees

IndianOil lays strong emphasis on training and motivating to keep its workforce constantly engaged. We induct officers at the junior-most level of the management hierarchy. Though we focus on hiring the best for the company, the learning process does not stop there. IndianOil is an academy company with 21 training centers for mid-career skill-sets upgradation.

Having pan-India presence with 33000-odd employees, IndianOil has uniform HR policies for all its account, while it also takes into account the disparity of different geographies of India. For example, considering the difficult terrain and hardship that employees posted in north-eastern part of India face, they are provided with better incentives and allowances as compared to say someone who is posted in a metropolis. Similarly, the local culture is adopted at locations so that the local needs can be addressed.

Historically, IndianOil has enjoyed low levels of attrition, the figures never having crossed the 2% mark among executives. Over the last several years, the competition to spot and draw the best talent has intensified in the corporate world. To minimize the impact of attrition, a lot more emphasis has been given to succession planning, creating bench-strength and training the workforce to be multiskilled. The exit interviews of the officers are seriously analyzed so that we can take appropriate corrective actions.

Succession Planning, clubbed with talent pipeline building, ensures achieving this objective by identifying and preparing the right person for the right positions, well in advance. Apolicy has been brought out towards a structured succession planning framework and systematic development planning to fill critical senior management positions in line with the vision and business strategy of the Corporation .

In an effort to ensure non-corrupt practices, IndianOil has adopted Conduct, Discipline and Appeal rules that bar acceptance of bribes and consider it as misconduct. There are various checks and measures in-built in the organizational setup which helps in preventing corruption. Employees are given freedom to report, confidentially and anonymously on any malpractices observed in our business practices through various channels. Further various training programmes are held for disseminating know-how of these systems and channels in place.

IndianOil trusts its employees in taking care of the company’s interests and respects their contribution to the Company’s success. To harbor employee’s trust, IndianOil actively strives resolve any matter of grievance, discrimination, harassment in strict compliance to the existing laws and policies of the Company and the Country.

IndianOil has emerged as one of the best employers in India in a study jointly conducted by The Economic Times & Great Place to Work Institute, covering 791 Indian companies and more than 1.5 lakh employees. During the year, IndianOil th th was ranked 27 (34 rank during 2016) in ‘India’s Best Companies to Work For-2017’ list and was the top-ranked PSU.

Employee Engagement

Indian Oil Corporation Limited has always supported the participative culture in the management of its enterprise. It is encouraged through consultative approach with the collectives, establishing a harmonious relationship aiming for industrial peace leading to higher productivity.

Collective Bargaining

In pursuance of healthy industrial relations practices and sound personnel policies, the Management pursues dialogue with recognized representatives of employees. Freedom of Association is available to all 33,157 employees. Overall there are 25 recognized unions representing workmen in various Divisions and one common Officers' Association for all officers in IndianOil and registered under the Trade Union Act, 1926. The right to freedom of association or collective bargaining by the employees are regulated by the Trade Union Act and there are no operations which might pose a risk to it. The organization has established policies and practices through which the collectives exercise the freedom of collective bargaining on issues of common interest such as to settle issues like pay/pay related benefits, allowances, career progression policies etc, which in turn helps develop mutual understanding and nurtures responsible relationship. Around 48% of our total employees are covered by collective bargaining agreements and above 95% employees are a part of the various recognized and unrecognized associations and the IndianOil Officers Association. By serving a notice period of 21 days, IndianOil reserves the right to propose a change in the condition of service applicable to the workmen, in any matter.

Various Committees

The culture of participation has taken roots in the form of various committees such as Works Committee, Safety Committee, Canteen Committee, Grievance Committee, House Allotment Committee, Township Welfare Committee, Recreation Clubs, Consumer Co-operative Societies, Employees' Provident Fund Trust and Superannuation Benefit Fund Trust wherein employees' representatives are actively involved.

Suggestion Scheme

Indian Oil Suggestion Scheme aims at harnessing the latent creativity in every individual thereby fostering amongst the employees a sense of achievement, a feeling of participation and involvement in the growth of the organization. It provides a well designed procedure for receiving, evaluating and rewarding creative ideas of the employees. In order to improve performance & monitoring of the suggestion scheme and to make it more employee friendly, the suggestions are now being accepted online through local e-suggestion portal.

Total Productivity Maintenance (TPM)

TPM activities encourage participation of employees by inculcating sense of ownership at work place resulting in engagement of employees and enhanced productivity, improved quality, reduced cost, improving delivery, enhanced safety and boosting morale. TPM circles of employees are formed at sectional levels and regular circle meetings are held at workplace. Employees discuss and analyze processes in their work areas, identify non-value adding activities (NVAs) and eliminate them to make the work processes more efficient. My Belief, My TPM, My Practice model has been developed and attempted successfully by Refineries Headquarters for the first time in the world. The same is being replicated in all Refinery Units.

Employee Engagement Initiatives

Various employee engagement activities such as surveys, Health talks, Yoga sessions, Run for health, IndianOil Solaris Quiz, Training programmes, Inspirational talks, Plays highlighting Corporation's Core values, Swachh Bharat Pakhwada etc were also conducted during the year. Results of Customer Satisfaction Survey, 2017 have been compared with 2016 results, analyzed and Unit-wise action plans have been formulated for improvement in services based on feedback. Internal Customer Satisfaction Survey for 2018 was also launched on 01.01.2018 for assessing employee needs and happiness level.

Employee Growth

Our people agenda, like everything else we do, embodies the spirit of inclusiveness - both for skill-building and for leadership development. We design training modules for our employees and contractual labours, internally, based on the needs and requirements of the job. Continuous training programs are conducted throughout the year for employees from various verticals depending on the need. Programs are designed to enable functional as well as developmental training of employees. While the functional trainings focus on technical knowledge, developmental trainings are hosted on a wide range of topics including human rights, health & safety, career development and sustainability among others.

Specialised training programs on safety and security and disaster management are mandatory for plant setups. These are undertaken for the employees, contract labours as well as the security personnel. At the end of each training program, a feedback is obtained from the participants to assess the program as well as the trainer. During the year 2017-18, 1.3 lakh man-days of functional, developmental and safety training were imparted to employees. Further more then 7 lakh man hours of training related to Health, Safety & Environment were imparted to workforce across the divisions.

Workforce Diversity & Inclusivity

By imbibing and promoting diversity and inclusiveness in work place, IndianOil strives to understand the needs of its employees, suppliers, and customers in a holistic way and provide better solutions. We understand that a diverse workforce can provide a richer and more productive work environment, and hence strive to attain more diversity amongst our employees.

Our efforts are not merely restricted to hiring stage only, but to also develop and retain the best people. We provide equal opportunity in recruitment, career development, promotion, training and rewards for all employees, without discrimination on the basis of caste, colour, gender, religion or region.

IndianOil scrupulously follows the presidential directives and guidelines issued by Government of India regarding reservation in services for Scheduled Caste, Scheduled Tribe, Other Backward Classes, & Physically Challenged Persons / Ex-servicemen to promote inclusive growth.Rosters are maintained as per the Directives and are regularly inspected by the Liaison Officer(s) of the Corporation as well as the Liaison Officer of MOP&NG to ensure proper compliance of the Directives. Grievance/Complaint Registers are also maintained at Division/Region/ Unit levels for registering grievances from OBC/SC/ST employees. Suitable facilities like ramps and Braille machines etc are provided for our employees with disabilities, at our offices, to make their work experience as smooth as possible. Active efforts are made to promptly resolve representations / grievances received from individuals under these categories.

At IndianOil, steps are taken to make the work-environment secure, friendly and enriching for its women employees to encourage them take up challenging assignments in various business verticals. The culture of the organization is congenial and conducive to productivity, enabling women employees to contribute freely.

We remain one of the largest employers of Women in the Public Sector companies of India, with nearly 8.36% of our workforce being women. Women employees in Public sector are a part of a separate association called Forum of "Women In Public Sector” (WIPS). Various Women's Cells have been created across our Divisions to ensure that women can discuss and demand action on grievances / complaints in these forums. These cells function under the active guidance of Head of Human Resource Department of the Unit / Region concerned. Not only are women recruited and represented without bias, they are also given equal opportunity to grow within the organisation.



Many of our female employees have been presented with prestigious awards for their outstanding contribution at work place. It is in the benefit of the organization to motivate women employees to bring to the table their talent and help the organization by complementing their male counterparts.

A long term coaching and mentoring programme, a new experiment and initiative, the first of its kind, was launched in September 2017. Twenty high performing women executives in mid-level are undergoing the programme. The programme is guided by two renowned mentors / experts in the area of leadership training.

Beyond IndianOil, 33% reservation is given to female entrepreneurs while handing out Kisan Seva Kendra (KSK) distributorships and petty contracts among others.

Promotion of Hindi Language

Hindi, being the official language, is promoted to be freely used by employees in their day-to-day work and communications. This includes communication with some of our key stakeholders such as Customers, Central / State Governments, Contractor labours, Supply chain, etc. Many events, daily broadcasts and competitions are organised to spread awareness on the subject. In an Advisory Meeting held at Srinagar by our governing Ministry of Petroleum & Natural Gas, IndianOil was awarded for having undertaken the best efforts to promote Hindi language in its work place.

Top Management Commitment to Safety

As a large Public Sector entity dealing with highly volatile but extremely vital energy sources and infrastructure, safety is given paramount importance at IndianOil. The Head of Health, Safety & Environment at the Corporation reports directly to the Chairman.

Safety is reviewed in the Local Management Committee Meetings chaired by Unit Head / Installation Head. Functional Directors on the Board of IndianOil review safety performance of the Corporation in Performance Review Meetings. Major incidents and corrective actions taken are apprised to the Board. Board is also apprised quarterly about the compliance status of pending points of External Safety Audit (ESA), carried out by Oil Industry Safety Directorate (OISD). Directions issued by the Board during such reviews are implemented in time bound manner .

Safety Emphasis for Employees/ Contract Labours & Supply Chain

Safety of our employees and contractors is vital for us. We aim for a safety culture that goes beyond compliance to one where people feel valued and show a deep care for their actions. To boost safety consciousness, all employees, contractor labour, other staff and security are involved in building the safety culture across our locations. We have a vast network of Safety Committee members playing a vital role in this regard. Events like safety day, safety week, pledge, mock drills, safety related messages / notifications, safety awards etc are designed to engage the employees and reinforce the focus on safe work places and safe practices. We ensure, 100% of our employees are represented by Safety committees .

IndianOil maintains highest level of process safety to avoid any spill or leak of hazardous substances across the operations. Further, we report safety incidents along with their significance with Tier 1 being the most significant followed by Tier 2. During the year 2017-18, six Tier 1 incident and three Tier 2 incidents were reported.



IndianOil has a keen focus on training. Regular training on safety is imparted not only to company employees but also to contract workmen and security personnel in various locations through experts & in-house safety personnel. Considering the socio-economic conditions and high turnover of contractor personnel, major thrust is given to train contractor personnel.

Separate training is also imparted to Safety Trainers to keep them abreast with the latest developments and training tools. During the year, Safety Training was imparted to 470 FPRS (First Person Responsible for Safety). The trainings covered issues such as OISD, sharing of lessons learnt from recent accidents, Work Permit System, Earthing etc.

Safety Beyond IndianOil

Many initiatives are undertaken to sensitize nearby communities, industries, state bodies, regarding the safe practices being followed in our plants, safety practices in day-to-day activities, precautions and emergency responses for countering any accident, etc. Some of the initiatives undertaken by IndianOil to spread the Safety message beyond its boundaries are given as under:-

• On-site Emergency Response Drills are conducted involving the District Authorities, neighbouring industries etc. Indian Oil also participates in off-site mock drills conducted by District Administration.
• Safety Awareness programs are conducted for nearby residents surrounding our units / installations / along our cross-country pipeline.
• Safety clinics and LPG Panchayats are organised for LPG end users. Awareness programs for Customer Attendants, Dealers, Distributors, Consumers, and Delivery Boys etc are also conducted.
• Employees, Contract workmen, Security personnel, TT crew are trained for Safe Operation by adopting Standard Operating Procedures and handling emergencies.

Preparedness Related Action

• Regular mock drills are conducted. In addition, On-site and Off-site Disaster drills are conducted as per defined periodicity to check the emergency preparedness.
• Liasoning with State & Central Government Agencies, e.g. Local Crisis group, National Disaster Response Force (NDRF) etc for better co-ordination.
• To handle emergencies, adequate fire protection and fire-fighting facilities are provided.

Security

Oil & Gas is of vital importance to national energy security. The safety of our infrastructure is important not only from economic but also from a security point-of view. Our efforts to continuously upgrade our security systems, improvements in digital security, centralized monitoring systems and the physical security at installations have been vital in repelling threats to our plants / units. Regular trainings are undertaken for our security personnel to improve and equip them further.

Safety Performance 2017-18

Working Towards Safe Work Places: Learning From Safety Lapses

We strive to improve our processes and premises from both technological and physical safety point of view. All our plants and work undertaken at sites comply with various safety guidelines such as the Oil Industry Safety Directorate (OISD), Petroleum and Explosives Safety Organisation (PESO), Factory Act, NPA etc. Following major fire accident in our Jaipur Terminal, all our locations have now been upgraded as per recommendations of the M B Lal Committee.

All incidents are categorized in terms of the actions they warrant, into three major types: ones requiring systemic changes, procedural changes or behavioural changes. Accordingly, assessment of risks and losses are made before action plans are formalized.

For identification, assessment and control of process related hazards, Hazard and Operability (HAZOP) Study and Risk Analysis are carried out. Quantitative Risk Analysis (QRA) is carried out for any new unit or facilities. Actions are taken on the basis of QRA to mitigate or minimize the hazards.

Representatives of the workmen and officers form the Safety Committee Meetings to identify risk / hazards and measures to curb the same. All accidents / incidents are investigated by a Committee with the objective of learning and to avoid repetitive shortcomings. Recommendations are implemented in time bound manner.

For new projects, pre-commissioning checks and audits are carried out by multi-disciplinary teams and deviations, if any, are corrected before start up. Also pre-commissioning audit is carried by the Oil Industry Safety Directorate (OISD) for new plants. Mechanical integrity of equipment/ system is ensured through condition monitoring, periodic inspection and preventive/predictive maintenance for reliable and safe operation.

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Occupational Health

At IndianOil, focus on employee health is a priority. All programmes are designed with an eye to ensure healthy work places and employee well-being, to improve the productivity of employees. An Occupational Health Manual has been developed for uniform working of Occupational Health services across the Corporation.

All refineries are certified to Occupational Health & Safety Management System (OHSMS / OHSAS 018001), besides having fully equipped occupational health centres.

IndianOil is the first PSU to launch Project Happiness and Wellbeing . Under this project, email based questionnaires / health related suggestions are circulated to all employees and workshop on Happiness and Wellbeing are conducted. Various media of communication such as house journals, posters, films, etc. are extensively used for creating awareness.

In addition, personnel working in hazardous areas are subjected to periodical medical examination to assess any adverse effect of the hazards on the personnel's health. Doctors and paramedics are specially trained to monitor the health of employees / contractor labour working in hazardous areas. We also conduct periodical medical tests to ensure that there are no adverse health impacts on our employees / contractor labour.

In addition, employees are also trained on various aspects of occupational health hazards through basic healthcare programs, fatigue at workplace, control of lifestyle disorders, first aid, art of living, Cancer detection / prevention program etc, and provided with suggestions for improving their health.

Periodical auditing of systems, procedures and facilities relating to Occupational Health and Hygiene is undertaken by qualified persons in Refineries. Other active programmes such as Blood Donation camps and drinking water portability tests are carried out at various locations.

Guidelines for maintenance and upkeep of food courts / canteens across the Corporation, are in place. Nutritional Evaluation Audit (Health & Hygiene) of canteens and guest house kitchens of IndianOil are taken up periodically. As part of Swatch Bharat Abhiyaan, Hygiene Index of all Canteens / Kitchens of IndianOil establishments is being maintained and the Index is prominently displayed.

Research, Development & Innovation

The strength of IndianOil is its high-quality Research & Development (R&D) activities in upstream, refining and alternative fuels. IndianOil is gearing up to emerge as a diversified technology-provider and is setting up a new R&D campus at Faridabad to house its new research facilities. It lays emphasis on commercialisation of products & processes.

IndianOil's sprawling R&D Centre at Faridabad near Delhi is one of Asia's finest Centre and plays a key role in supporting the Corporation's, business interests by developing advanced technologies in lubricants formulation, refinery processes, pipeline transportation and alternative fuels, and holds a rich portfolio of 611 active patents.

The R&D Centre also works in the areas of Petrochemical & Polymers, Catalyst, Extraction & Distillation, Battery, Industrial Biotechnology, Refining Technology and Automotive Research.



During the year 2017-18, our R&D Centre filed 82 patents and 50 patents (12 Indian & 38 Overseas) were granted during the year. R&D lends the much-needed backend support to the Company in the form of proprietary research and commercialisation capabilities in lubricants, catalysts, Refinery processes and Pipelines operations. The Centre's forte includes alternative energy programmes in bio-energy, solar energy, Hydrogen energy, H-CNG blends, synthetic fuels and shale oil.

The Centre is nurturing an eco-system conducive for innovations in the domestic hydrocarbons sector through Startup initiatives such as 'Start-Up Sangam' which was launched during October 2017. Under IndianOil Start-Up Fund, 11 projects were selected for funding & incubation in Technology & Business process areas.

Besides enhanced oil recovery processes in upstream, IndianOil's output-maximising technologies like INDMAX and clean-fuel technologies like OCTAMAX and INDAdeptG are being deployed at various refineries. The BS-VI Emission Test Facility was inaugurated during 2017-18 and is designed to test all types of fuels, such as petrol, diesel, ethanol-blended petrol, bio- diesel, CNG, LNG, Hydrogen-CNG and 2G-ethanol blends as per the superior BS-VI norms.

Marketing Communication

IndianOil is reaching out to the remotest corners through over 47,800 customer touch-points spread across the country. This wide network comprises of 27,089 Retail Outlets of which 7,529 are Kisan Seva Kendras (KSKs), 10,213 LPG Distributors, and 91 LPG Bottling Plants, 107 Aviation Fuel Stations, 125 POL Terminals / Depots and 10.6 crores active domestic LPG customers as on 31^st March 2018.

Marketing communication is a tool for transforming customer service into customer relations thus playing an important role in strengthening the close connect that IndianOil has with all its stakeholders.

The Corporation has a strong and dedicated network of Corporate Communication group which drafts, designs and places all marketing communication at the appropriate public platforms and media channels to inform a diverse cross section of customer segments.

The government is focusing on tracking customer feedbacks and grievances on real time basis until the customer is satisfied with the complaint resolution. MoP&NG has created an e-Seva portal for online resolution of business queries related to the oil & gas sector.

Information Dissemination

IndianOil connects to its customers through its official pages on social media forums viz., Facebook, Twitter, Instagram and Youtube.

The Company has also designed mobile applications for customer ease like Fuel@IOC which enables customers to find all IndianOil Retail Outlets within a radius of 5 km from customer’s live location.

Customer Health & Safety

IndianOil's customers perceive the Company as a reliable symbol for high quality products and services. Round-the-clock availability of the mechanics of the LPG agency helps in customers reporting leakage and other related safety issues to the Distributor. Further, the Distributors are mandated to undertake a 'Mandatory Safety Check' of the LPG installation, biennially for its entire customer base.

The safety & fire protection measures at IndianOil encompass a well-sensitised Management, focus on imparting regular training and a culture of safety throughout the Company.

Product information & Labelling

All commercial products of IndianOil follow Bureau of Indian Standards (BIS) guidelines for product information and labelling, details of which are given below:

LPG: LPG Cylinders, Pressure Regulators & Valves conform to BIS Standards, which are displayed on the equipments. The Distributors are also under instruction to sell LPG Rubber Hose and Hot Plates conforming to BIS Standards.

Bitumen: Bitumen is mostly sold in bulk and only approx 10% of product is sold in packed form in barrels. It is ensured that product specifications are made available to the consumer and highest quality control & safety procedures are followed whilst marketing these products.

Lubricants: All product labels, besides complying with Legal Metrology requirements also display the product information for the benefit of customers regarding the technical specification and recommended use of the product being marketed.

Aviation Fuel: The product is sold in bulk and the product specification test report of all the batches is provided.

Petrochemicals: For all our petrochemical products, the Certification of Analysis depicting all quality parameters is attached with each consignment. All Polymer products of IndianOil are 100% recyclable and a “recyclable” symbol is printed on package of products as per ASTM (American Society for Testing & Material) International Resin Identifications Coding Systems.

Statutory Compliance

Compliance with marketing communication norms, safety systems, procedures and environment laws is monitored at the unit, division and corporate levels

Customer Satisfaction Survey

Customer satisfaction, trust and brand loyalty is vital for business sustainability. IndianOil strives to ensure that customers receive our utmost attention and the best quality products. In this regard, we continuously engage with our customers, take their feedback and improve our product / service offerings.

For our bulk customers, Customer Relationship Officers have been assigned for resolution of customer issues, through a single window option. IndianOil also has a dedicated department which keeps track of customer sentiments with respect to IndianOil's products and services.

A market research was also carried out through external Consultants to assess customer satisfaction. In line with the suggestions from the report, we have undertaken necessary upgradation at 1,060 retail outlets thus far. IndianOil launched a new customer grievance platform called 'e-PIC grievance module' in January 2018 which replaced the substantiated complaints regarding breaches of customer privacy and losses of customer data.

In regards to Petrochemicals products, IndianOil has deployed a complaint redressal officer at Polymer and PTA plant locations who keeps track of all customer complaints from the origin to root cause analysis to mitigation. Customer visits are also undertaken by the sales team to address their concerns. Certification of Analysis depicting all quality parameters is attached with each consignment dispatched to the industrial customers while the daily dispatch and funds report are also shared with them.

The Institutional Business has a system of Nodal Officers/CRO (Customer Relationship Officers) for resolution of customer issues, through a single window option for major customers. The Aviation Group takes customer feedback on regular basis. In regards to 'Branding', the Group is administering the Online Reputation Management (ORM) on the web, which tracks the customer sentiments (negative/positive/neutral) with respect to IndianOil's products and services. The ongoing periodical reporting system and the online ORM dashboard content, capture all the conversations on the web including the tweets (and excluding the Facebook accounts) on IndianOil by all its stakeholders including customers. A market research was carried out during 2017-18 to assess customer satisfaction at our retail outlets.

Quality management System

IndianOil has developed a robust system to monitor quality standard procedures which are followed at all times at its refinery, pipelines and marketing installations. As per the guidelines of the Ministry of Petroleum and Natural Gas, Government of India, the Oil Industry has evolved a uniform Quality Control procedure for handling of petroleum products. IndianOil provides the option to test Retail Outlet nozzle samples on customers' request. This helps IndianOil enhance its level of commitment of quality assurance to its valued customers.
The Industry quality control manual covers the entire spectrum of supply and distribution of petroleum products. The procedures outlined in the manual are a basic requirement in order to ensure product quality. Therefore, standard operating procedures with regard to safety in handling of petroleum products in general are followed as laid down in the respective Safety and Operations Manuals and also as enumerated in the Industry Manual on Acceptance of Product by Marketing Companies and Related Issues. The customer is encouraged to visit the plant premises and build faith in the quality of production and dispatches.

Sustainability in IndianOil

Environmental Performance

Employees

Social Performance

Health and Safety

Product Responsibility