Raj Automobile

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(2010-2011)

PROJECT REPORT

ON

SUBMITTED BY:RAVI PUROHITBBA FINAL YEAR

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Acknowledgement

A formal statement of acknowledgement will hardly meet the ends of the justice in

the matter of expression of my deeply felt sincere and allegiant gratitude to all

those who encouraged me and helped me during my study.

It gives me immense pleasure, to express my unfeigned and sincere thanks and

gratitude toMr. Manoj Mitalfaculty Onkarmal somani college, jodhpurfor her

assistance, advice and support throughout the preparation of this report.

I express my sincere thanks to our beloved principal Prof. N.L.Sahel,for giving

valuable support and encouragement in preparing this report.

I am also thankful to Mr.Rajesh chodhary for giving me valuable information

regarding his concern.

I am also very thankful to all my respondents who took time out of their busy

schedules and helped me in carrying out this project.

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PREFACE

Raj Automobiles and filling station is situated on the main chopasni road, jodhpur. The

properitor Mr. Rajesh Chodhary Mrs. Rajesh Chodhary. They have occupied the big place for

their buisness

They have opened two branch in jodhpur

1. Chopasni Road Branch.

2. Dangiavas Branch.

In the both branch they have good space for their buisness and office work in the main they have

good Buisness places.

They have two type of buisness:-

1. Filling Station:- They have sevral nozel for filling the petrol,

They also have every type of petrol

1. Xtrapremium

2. 2T Mix

3. Xtramile

4. Normal petrol and disel.

1. Wheel alignment:- The wheel alignment business is also competitive in todays

market. For only this reason they give them too many space for this businessalso.

They have sufficient staff for their three type of work:-

1. Filling work

2. Office work

3. Wheel Alignment work

The staff of all work are to supportive and Workable at all condition. They have two

shift for their filling work and office work.

At the and I can only give the my gratitude to Mr. and Mrs, Rajesh Chodhary and their staff for

thieir help and Support for completing this project work.

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TABLE OF CONTENTS PAGE NO

1. Introduction 6

2.Company Profile 8

Petrochemicals

Oil Exploration & Production

Gas

Bio-fuels

Wind Energy Business

Consultancy

Globalization Initiatives

3.Objectives & Obligations 12

4. Directors review 23

Refineries

Pipelines

Marketing

Research & development

Planning & business development

Finance

Human resources

5. Awards and recognition 33

6. Management 34

7. Major units 40

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8. Major projects 42

9. Business 46

Refining Pipelines

Marketing

R&D

Petrochemicals

Gas

E&P

10. Initiatives 57

Integrity pack

Environment

IndianOil Academic Scholarships

IndianOil Sports Scholarship

Corporate Social Responsibility

Global Compact Initiative

11. Recognitions 64

Distinctions

Awards & Accreditations

12. Annexure 74

13.An Introduction to Kamakshi Auto Service 80

14. Conclusion, Suggestion & finding 81

15. Bibliography 82

5
http://www.iocl.com/Aboutus/Environment.aspxhttp://www.iocl.com/Aboutus/Scholarships.aspxhttp://www.iocl.com/Aboutus/IndianOilSports.aspxhttp://www.iocl.com/Aboutus/corporatesocialresponsibility.aspxhttp://www.iocl.com/Aboutus/globalcompactinitiative.aspxhttp://www.iocl.com/Aboutus/Recognitions.aspxhttp://www.iocl.com/Aboutus/Distinctions.aspxhttp://www.iocl.com/Aboutus/Awards_Accreditations.aspxhttp://www.iocl.com/Aboutus/Scholarships.aspxhttp://www.iocl.com/Aboutus/IndianOilSports.aspxhttp://www.iocl.com/Aboutus/corporatesocialresponsibility.aspxhttp://www.iocl.com/Aboutus/globalcompactinitiative.aspxhttp://www.iocl.com/Aboutus/Recognitions.aspxhttp://www.iocl.com/Aboutus/Distinctions.aspxhttp://www.iocl.com/Aboutus/Awards_Accreditations.aspxhttp://www.iocl.com/Aboutus/Environment.aspx


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INDUSTRY PROFILE

IOC (Indian Oil Corporation) was formed in 1964 as the result of merger of Indian Oil Company

Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958).

Indian Oil Corporation Ltd. is the highest ranked Indian company in the prestigious Fortune

Global 500. It was ranked at 135th position in 2007. It is also the 20th largest petroleum

company in the world.

Indian Oil Corporation Ltd. is currently India's largest company by sales with a turnover of Rs.

247,479 crore (US $59.22 billion), and profit of Rs. 6963 crore (US $ 1.67 billion) for fiscal

2007.

Indian Oil and its subsidiaries today accounts for 49% petroleum products market share in India.

Indian Oil group has sold 59.29mn tonnes of Petroleum including 1.74mn tonnes of Natural gas

in the domestic market and exported 3.33mn tonnes in the yr 2007-08.

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VISION OF IOCL

A major diversified, transnational, integrated energy company, with national leadership and a

strong environment conscience, playing a national role in oil security & public distribution.

MISSION OF IOCL

IOCL has the following mission:

To achieve international standards of excellence in all aspects of energy and diversified

business with focus on customer delight through value of products and services and cost

reduction.

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

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

for competitive advantage.

To provide technology and services through sustained Research and Development.

To foster a culture of participation and innovation for employee growth and contribution.

To cultivate high standards of business ethics and Total Quality Management for a strong

corporate identity and brand equity. To help enrich the quality of life of the community and preserve ecological balance and

heritage through a strong environment conscience.

VALUES OF IOCL

Values exist in all organizations and are an integral part of any it. Indian Oil nurtures a set of

core values:

CARE

INNOVATION

PASSION

TRUST

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COMPANY PROFILE

Indias flagship national oil company and downstream petroleum

major, Indian Oil Corporation Ltd. (IndianOil) is celebrating its

Golden Jubilee in 2009. It is India's largest commercial enterprise,

with a sales turnover of Rs. 2, 85,337 crore the highest-ever foran Indian company and a net profit of Rs. 2, 950 crore for the

year 2008-09. IndianOil is also the highest ranked Indian company

in the prestigious Fortune 'Global 500' listing, having moved up 11 places to the 105th position

in 2009. Indias Flagship National Oil Company Incorporated as Indian Oil Company Ltd. on

30th June, 1959, it was renamed as Indian Oil Corporation Ltd. on 1st September, 1964

following the merger of Indian Refineries Ltd. (established 1958) with it. IndianOil and its

subsidiaries account for approximately 48% petroleum products market share, 34% national

refining capacity and 71% downstream sector pipelines capacity in India.

For the year 2008-09, the IndianOil group sold 62.6 million tonnes of petroleum products,

including 1.7 million tonnes of natural gas, and exported 3.64 million tonnes of petroleum

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products.

The IndianOil Group of companies owns and operates 10 of India's

20 refineries with a combined refining capacity of 60.2 million

metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per

day). These include two refineries of subsidiary Chennai Petroleum

Corporation Ltd.

The Corporation's cross-country network of crude oil and product pipelines, spanning over

10,000 km and the largest in the country, meets the vital energy needs of the consumers in an

efficient, economical and environment-friendly manner.

IndianOil is investing Rs. 43,400 crore (US $10.8 billion) during the period 2007-12 in

augmentation of refining and pipeline capacities, expansion of marketing infrastructure and

product quality upgradation as well as in integration and diversification projects. Network

Beyond Compare As the flagship national oil company in the downstream sector, IndianOil

reaches precious petroleum products to millions of people everyday through a countrywide

network of about 35,000 sales points. They are backed for supplies by 167 bulk storage terminals

and depots, 101 aviation fuel stations and 89Indane (LPGas) bottling plants. About 7,335 bulk

consumer pumps are also in operation for the convenience of large consumers, ensuring products

and inventory at their doorstep.

IndianOil operates the largest and the widest network of petrol & diesel stations in the country,

numbering over 18,278. It reaches Indane cooking gas to the doorsteps of over 53 million

households in nearly 2,700 markets through a network of about 5,000 Indane distributors.

IndianOil's ISO-9002 certified Aviation Service commands over 63% market share in aviation

fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines

and the Indian Defence Services. The Corporation also enjoys a dominant share of the bulk

consumer business, including that of railways, state transport undertakings, and industrial,

agricultural and marine sectors. Technology Solutions Provider IndianOil's world-class R&D

Centre is perhaps Asia's finest. Besides pioneering work in lubricants formulation, refinery

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processes, pipeline transportation and alternative fuels, the Centre

is also the nodal agency of the Indian hydrocarbon sector for

ushering in Hydrogen fuel economy in the country. It has set up a

commercial Hydrogen-CNG station at an IndianOil retail outlet in

New Delhi this year. The Centre holds 214 active patents,

including 113 international patents.

IndianOil has joined the league of global technology providers last year with the selection of its

in-house developed INDMAX technology (for maximising LPGas yield) for the 4 MMTPA

Fluidised Catalytic Cracking (FCC) unit at the Corporation's upcoming 15 MMTPA grass roots

refinery at Paradip in Orissa, as well as for the FCC unit coming up at BRPL.

A wholly-owned subsidiary, IndianOil Technologies Ltd., is engaged in commercialising the

innovations and technologies developed by IndianOil's R&D Centre. Customer First At

IndianOil, customers always get the first priority. New initiatives are launched round-the-year for

the convenience of the various customer segments.

Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban markets

offer a range of value-added services to enhance customer delight and loyalty. Large format

Swagatbrand outlets cater to highway motorists, with multiple facilities such as food courts, first

aid, rest rooms and dormitories, spare parts shops, etc. Specially formattedKisan Seva Kendra

outlets meet the diverse needs of the rural populace, offering a variety of products and services

such as seeds, fertilisers, pesticides, farm equipment, medicines, spare parts for trucks and

tractors, tractor engine oils and pump set oils, besides auto fuels and kerosene. SERVOXpress has

been launched recently as a one-stop shop for auto care services.

To safeguard the interest of the valuable customers, interventions like retail automation, vehicle

tracking and marker systems have been introduced to ensure quality and quantity of petroleum

products. Widening Horizons To achieve the next level of growth, IndianOil is currently forging

ahead on a well laid-out road map through vertical integration upstream into oil exploration &

production (E&P) and downstream into petrochemicals and diversification into natural gas

marketing, bio fuels, wind power projects, besides globalisation of its downstream operations.

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Petrochemicals

In petrochemicals, IndianOil is envisaging an investment of Rs. 20,000 crore (US$ 4 billion) by

the year 2011-12. Through the worlds largest single-train Linear Alkyl Benzene (LAB) plant

with an annual capacity of 1,20,000 tonnes set up at its Gujarat Refinery, the Corporation has

already captured a significant market share of LAB in India, besides exporting the product to

Indonesia, Turkey, Thailand, Vietnam, Norway and Oman.

A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX - 3,63,000

tonnes, PTA 5,53,000 tonnes) for polyester intermediates is already in operation at Panipat,

while a Naphtha Cracker with a capacity of 800,000 tonnes of ethylene per annum, 6,00,000

TPA of Propylene, besides an annual production of 3,25,000 TPA of Mono Ethylene Glycol,1,40,000 TPA of Butadiene, 6,50,000 TPA of Polyethylene and 6,00,000 TPA of Polypropylene,

equipped with downstream polymer units is to be completed by December 2009 at Panipat.

A grassroots refinery at Paradip is proposed to be completed by the year 2011-12, subsequently

followed by the setting up of an integrated petrochemical plants with an estimated investment of

Rs 12,000 crore (US$ 2.5 billion) which will further strengthen the Corporations presence in the

sector.

Oil Exploration & Production

In E&P, IndianOil has non-operator participating interest in seven oil & gas blocks awarded

under various NELP (New Exploration Licensing Policy) rounds and two Coal Bed Methane

blocks in India, in consortium with other companies. In addition, IndianOil has two onshore type

S NELP blocks, with 100% participating interest (PI) and sole operatorship. It also has

participating interest in an onshore block in Assam and Arunachal Pradesh through a farm-in.

Overseas ventures of the Corporation includes two blocks (86 and 102/4) in Sirte Basin and

Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran, onshore farm-in

arrangements in one block in Gabon, one on land block in Nigeria, one deepwater offshore block

in Timor-Leste and two onshore blocks in Yemen. In all, IndianOil has 12 domestic exploration

blocks, including 2 blocks where gas discoveries have been made and 9 overseas exploration

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blocks, & the Farsi block in Iran where commerciality of gas discovery has been established.

IndianOil has incorporated Ind-OIL Overseas Ltd. a special purpose vehicle for acquisition of

overseas E&P assets in Port Louis, Mauritius, in consortium with Oil India Ltd. (OIL).

Gas

In natural gas business, IndianOil sold 1.849 million tonnes of the product in 2008-09. A

technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to the

doorstep of bulk consumers in cryogenic containers for industrial as well as captive power

applications.

To consolidate its city gas distribution (CGD) business, IndianOil has tied up with several

players such as Adani Energy, Reliance Gas Corporation, OIL and ONGC, etc., to set up jointventures in various cities of India. The Corporation has also entered into franchise agreements

with CGD players such as Indraprastha Gas Ltd., Mahanagar Gas Ltd., Adani Energy Limited,

GEECL, SITI Energy and GSPC Gas Ltd. to market CNG through its retail outlets

Bio-fuels

To straddle the complete bio-fuel value chain, IndianOil formed a joint venture with the

Chhattisgarh Renewable Development Authority (CREDA) with an equity holding of 74% and

26% respectively. IndianOil CREDA Biofuels Ltd. has been formed for carrying out farming,

cultivating, manufacturing, production and sale of biomass, bio-fuels and allied products and

services.

A pilot project of jatropha plantation on 600 hectares of revenue wasteland is underway in

Jhabua district in Madhya Pradesh to ascertain the feasibility of revenue land-based commercial

biodiesel units and to develop benchmarks for plantation costs and output.

IndianOil has also signed an MoU with M/s Ruchi Soya Industries Ltd. to take up contract

farming on one lakh hectare of private and panchayat wasteland in the state of Uttar Pradesh.

Wind Energy Business

IndianOiI has forayed into wind energy business with the commissioning of a Rs. 130 crore, 21

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MW wind power project in the Kutch district of Gujarat. The cumulative power generation from

the 14 wind turbine generators has crossed 159 lakh KW since commissioning in January 2009.

It has also commissioned two pilot solar lantern charging stations at its Kisan Seva Kendra at

Sathla near Meerut and Chokoni near Bareilly.

Consultancy

For over two decades now, IndianOil has been providing technical and manpower secondment

services to overseas companies. Such services have been extended to Emirates National Oil

Company (ENOC),Kenya Pipeline Company and Aden Refinery, Yemen . For the first time,

SAP implementation / IT consultancy was provided in Sri Lanka. Consultancy on pipelines was

provided to Greater Nile Petroleum Operating Company (GNPOC), Sudan.

Globalization Initiatives

IndianOil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE),

and is simultaneously scouting for new business opportunities in the energy markets of Asia and

Africa.

Lanka IOC Plc (LIOC)

Lanka IOC Ltd. operates about 150 petrol & diesel stations in Sri Lanka, and has a very efficient

lube marketing network. Its major facilities include an oil terminal at Trincomalee, Sri Lanka's

largest petroleum storage facility and an 18,000 tonnes per annum capacity lubricants blending

plant and state-of-the-art fuels and lubricants testing laboratory at Trincomalee. Presently, it

holds a market share of about 40%. In a highly competitive bunker market, catering to all types

of bunker fuels and lubricants at all ports of Sri Lanka, viz., Colombo, Trincomalee and Galle. It

is the major supplier of lubricants and greases to the three arms of the Defence services of Sri

Lanka. LIOC's market share in petrol increased stands at 24.8% in 2008 with an overall market

share of 16.9%.

IndianOil (Mauritius) Ltd. (IOML)

IndianOil (Mauritius) Ltd. has an overall market share of nearly 22% and commands a 35% market share

in aviation fuelling business, apart from its bunkering business. It operates a modern petroleum bulk

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storage terminal at Mer Rouge port, besides 17 filling stations. In addition to the ongoing expansion of

retail network, IOML has to its credit the first ISO-9001 product-testing laboratory in Mauritius.

IndianOil Middle-East FZE (IOME)

The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business expansion in the

Middle East, is mainly into blending and marketing of SERVO lubricants and marketing of petroleum

products in the Middle East, Africa and CIS countries. Finished lubes were exported to Oman , Qatar ,

Yemen , Bahrain , UAE and Nepal .

Objectives & Obligations

Objectives:

To serve the national interests in oil and related sectors in accordance and consistent with

Government policies.

To ensure maintenance of continuous and smooth supplies of petroleum products by way

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

assistance to consumers to conserve and use petroleum products efficiently.

To enhance the country's self-sufficiency in crude oil refining and build expertise in

laying of crude oil and petroleum product pipelines.

To further enhance marketing infrastructure and reseller network for providing assured

service to customers throughout the country.

To create a strong research&development base in refinery processes, product

formulations, pipeline transportation and alternative fuels with a view to

minimizing/eliminating imports and to have next generation products.

To optimise utilisation of refining capacity and maximize distillate yield and gross

refining margin.

To maximise utilisation of the existing facilities for improving efficiency and increasing

productivity.

To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in

marketing operations to effect energy conservation.

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To earn a reasonable rate of return on investment.

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

Government of Indias policy of liberalisation and reforms.

To achieve higher growth through mergers, acquisitions, integration and diversificationby harnessing new business opportunities in oil exploration&production, petrochemicals,

natural gas and downstream opportunities overseas.

To inculcate strong core values among the employees and continuously update skill sets

for full exploitation of the new business opportunities.

To develop operational synergies with subsidiaries and joint ventures and continuously

engage across the hydrocarbon value chain for the benefit of society at large.

Financial Objectives

To ensure adequate return on the capital employed and maintain a reasonable annual

dividend on equity capital.

To ensure maximum economy in expenditure.

To manage and operate all facilities in an efficient manner so as to generate adequate

internal resources to meet revenue cost and requirements for project investment, without

budgetary support.

To develop long-term corporate plans to provide for adequate growth of the

Corporations business.

To reduce the cost of production of petroleum products by means of systematic cost

control measures and thereby sustain market leadership through cost competitiveness.

To complete all planned projects within the scheduled time and approved cost.

Obligations

Towards customers and dealers:- To provide prompt, courteous and efficient service

and quality products at competitive prices.

Towards suppliers:- To ensure prompt dealings with integrity, impartiality and courtesy

and help promote ancillary industries.

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Towards employees:- To develop their capabilities and facilitate their advancement

through appropriate training and career planning. To have fair dealings with recognised

representatives of employees in pursuance of healthy industrial relations practices and

sound personnel policies.

Towards community:- To develop techno-economically viable and environment-

friendly products. To maintain the highest standards in respect of safety, environment

protection and occupational health at all production units.

Towards Defence Services:- To maintain adequate supplies to Defence and other para-

military services during normal as well as emergency situations.

Group CompaniesExpanding Horizons

IndianOil is currently metamorphosing from a pure sectoral company with dominance in

downstream in India to a vertically integrated, transnational energy behemoth. The Corporation

is already on the way to becoming a major player in petrochemicals by integrating its core

refining business with petrochemical activities, besides making large investments in E&P and

import/marketing ventures for oil&gas in India and abroad.

With a vision to evolve into a major technology provider through excellence in management of

knowledge and innovation, IndianOil has launched IndianOil Technology Ltd. to market the

intellectual properties developed by IndianOil's R&D Centre.

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50 Golden Years in the Service of theNation

Indias flagship national oil company and downstream petroleum major, Indian Oil Corporation Ltd.

(IndianOil) is celebrating its Golden Jubilee during 30th June - 1st September 2009.

Established as an oil marketing entity on 30th June 1959, Indian Oil Company Ltd. was renamed Indian

Oil Corporation Ltd. on 1st September 1964 following the merger of Indian Refineries Ltd. (established

in August 1958) with it. The integrated refining & marketing entity has since grown into the countrys

largest commercial enterprise and Indias No.1 Company in the prestigious Fortune Global 500 listing

of the worlds largest corporates, currently at the 116th position. It is also the 18th largest petroleum

company in the world.

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IndianOil Today

From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38 million tonnes valued

at Rs. 78 crore in the year 1965, IndianOil has since grown over 3000 times with a sales turnover of Rs.

285,337 crore, the highest ever for an Indian company, and a net profit of Rs. 2,950 crore for 2008-09.

Set up with the mandate of achieving self-sufficiency in refining and marketing operations for a nascent

nation set on the path of economic growth and prosperity, IndianOil today accounts for nearly half of

Indias petroleum consumption, reaching precious petroleum products to millions of people everyday

through a countrywide network of around 35,000 sales points. They are backed for supplies by 167 bulk

storage terminals and depots, 101 aviation fuel stations and 89 Indane LPG bottling plants. For the year

2008-09, IndianOil sold 62.6 million tonnes of petroleum products, including 1.7 million tonnes of

natural gas.

The IndianOil Group of companies owns and operates 10 of Indias 20 refineries with a combined

capacity of over 60 MMTPA, accounting for 34% of national refining capacity, after excluding EOU

refineries. Projects under execution will take the capacity further to 80 MMTPA by the year 2011-12.

Besides setting up state-of-the-art facilities to raise product quality to global standards, IndianOil has

undertaken chartering of ships for crude oil imports on its own and is expanding its basket of crudes and

upgrading its refineries to handle a wider array of crudes, including high-sulphur types.

As a pioneer in laying of cross-country crude oil and product pipelines, the Corporation crossed 10,000

km in pipeline length and about 70 MMTPA in throughput capacity with the commissioning of the 330-

km Paradip-Haldia crude oil pipeline recently. Plans are under execution to add about 4,000 km more by

the year 2012. In-house capabilities have enabled the Corporation undertake all pipeline projects on its

own and even offer turnkey expertise in techno-economic feasibility studies, design and detailed

engineering, project execution, operations, maintenance and consultancy services.

Set up in 1972, IndianOil's R&D Centre has blossomed into a world-class institution and Asia's finest.

Besides its pioneering work in lubricants formulation, refinery processes, pipeline transportation andalternative fuels such as ethanol-blended petrol and bio-diesel, the Centre is also the nodal agency of the

Indian hydrocarbon sector for ushering in Hydrogen fuel into the country. It has over 214 active patents to

its credit, including 113 international patents. Its current R&D focus is on the future business needs of

IndianOil in the areas of petrochemicals, including polymers, and alternative energy sources.

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Strategic Origins

IndianOil was born of the vision of Pandit Jawaharlal Nehru, the first Prime Minister of India, to pursue a

policy of self-sufficiency in the petroleum sector as a strategic requirement of a free nation.

As part of Panditjis thrust on oil exploration, refining and marketing operations, Indian Refineries Ltd.

was established in August 1958 under 100% Government ownership to erect refineries and lay petroleum

pipelines. To take care of marketing of petroleum products across the country, Indian Oil Company Ltd.,

another 100% Government-owned Company, was formed on 30th June 1959. It was entrusted with the

task of reaching petroleum products to every nook and corner of the nation, overcoming severe

constraints in terms of logistics, terrain and wide seasonal and regional fluctuations in demand.

The marketing activities of Indian Oil Company began on 17th August 1960 with the receipt of the first

parcel of 11,390 tonnes of imported diesel of Russian origin from MV Uzhgorod docked at Pir Pau Jetty

in Mumbai. The Indian petroleum market at that time was ruled by goliaths like Burmah Shell, Esso

Eastern Inc., Caltex (India) Ltd., Indo-Burmah Petroleum Co. Ltd and Assam Oil Company Ltd. Indian

Oil Companys first and foremost challenge was to assert itself in the face of stiff competition from these

well-entrenched transnational oil companies operating in India. In its first year of marketing (1960-61),

the Companys volume sales was a meager 0.038 million tonnes (approximately 5% of industry sale)

worth Rs. 0.8 crore.

The first activity that Indian Refineries Ltd. undertook was the construction of a refinery at Noonmati

near Guwahati in Assam with Rumanian help. The refinery was inaugurated by Pandit Jawaharlal Nehru

himself in 1962, and processed Upper Assam crude oil received through an Oil India Ltd. (OIL) pipeline

from Nahorkatiya. For product evacuation, the 435-km Guwahati-Siliguri pipeline and the Siliguri

terminal were built and commissioned in 1964. Soon after, It was decided to set up two more refineries,

one each at Barauni and Koyali for processing newly-discovered crude oil at Assam and Gujarat

respectively. The Barauni Refinery was built with Russian collaboration and went on stream in July 1964.

The Koyali Refinery was also set up with technical assistance of Soviet Russia. IndianOil acquired

control of the refinery from Oil & Natural Gas Commission on 1st April 1965 and commissioned it inOctober the same year after formal inauguration by the then President of India, Dr. S Radhakrishnan.

Meanwhile, on 1st September 1964, Indian Refineries Ltd. was merged in Indian Oil Company to form a

vertically integrated entity straddling both refining and marketing functions, and Indian Oil Company was

renamed as Indian Oil Corporation Ltd. (IndianOil). While announcing the historic merger, Prof.

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Humayun Kabir, the then Union Minister of Petroleum & Chemicals, hoped that IndianOil would soon

handle at least half of the trade in petroleum products. He was proved right within five years. By 1969,

the Corporation was handling more than 50% of the total petroleum consumption of the nation and

reached 64.2% market participation by the year 1974.

Battle Spurs

As a veteran IOCian put it once, IndianOil has been genetically coded to serve the Defence services. This

was proved beyond doubt during the 1965 war, when IndianOilPeople maintained the vital supply of

petroleum products to the armed forces with grit and determination. In fact, the Srinagar depot was one of

the first bulk storage facilities set up by the Corporation, in 1963. IndianOils entry into the aviation

fuelling business too began with the Defence Services in October 1964 and then to civil aviation a year

later, in November 1965.

Another opportunity to show its mettle in times of national emergencies came IndianOils way during the

1971 war. In fact, in March 1972, during the war for liberation of Bangladesh, IndianOil even arranged

for crude oil supplies to the Chittagong Refinery. After the war, the Corporation for the first time

extended reservation in award of retail outlet dealerships to war widows, disabled Defence personnel,

freedom fighters, etc., and continues to honour this tradition even now. At the time of Operation Vijay at

Kargil in 1999, despite shelling of its depots at Leh and Kargil, IndianOil maintained petroleum supplies

in the war zone and stood by the families of the war heroes later.

Having proved its mettle in the 1965 war, IndianOil plunged into frenetic activity with new-found

confidence setting up refineries, laying pipelines, building storage terminals and aviation fuel stations,

entering new businesses like bitumen, marine bunkering, and appointing dealers and distributors across

the country. The Haldia Refinery was set up in 1975, Mathura Refinery in 1982 and Panipat Refinery in

1998. The Corporation is setting up another grassroots refinery at Paradip in Orissa, for commissioning

by the year 2012.

Marketing Innovations

Having set up Its first petrol & diesel station (retail outlet) at Kochi in October 1962, IndianOil currently

operates the countrys largest network of retail outlets numbering over 18, 278 with focus on customer

convenience. It was the first oil marketing company to introduce the concept of Multipurpose Distribution

Centres (MPDCs) at its retail outlets located in rural areas way back in 1975. These MPDCs served as

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introduced in LPG marketing from time to time, like mounded storage and 19-kg cylinders for bulk

customers, reticulated supplies for housing complexes and 5-kg cylinders for customers in inaccessible

and hilly terrain. The Corporations in-house IndMax process is aimed at enhancing LPG yield from

crude oil refining. Indane cooking gas today reaches the doorsteps of over 53 million households in nearly

2,700 markets through a network of about 5,000 Indane distributors. This includes customers in Andaman& Nicobar and Lakshadweep islands. Autogas (LPG) dispensing stations are being set up in metros and

major cities to cater to the growing vehicle population using LPG as fuel.

New Businesses

In pursuit of its Corporate Vision and to achieve the next level of growth,, IndianOil is currently forging

ahead on a well laid-out road map through vertical integration - upstream into oil exploration &

production (E&P) and downstream into petrochemicals - and diversification into natural gas marketing,

besides globalisation of its downstream operations.

In petrochemicals, IndianOil is envisaging Rs. 30,000 crore (US$ 7.4 billion) investment by the year

2011-12. Through the worlds largest single-train Linear Alkyl Benzene (LAB) plant with an annual

capacity of 1,20,000 tonnes set up at its Gujarat Refinery, the Corporation has already captured a

significant market share of LAB in India, besides exports. A world-scale Paraxylene/Purified

Terephthalic Acid plant (annual capacities: PX - 3,63,000 tonnes, PTA 5,53,000 tonnes) for polyester

intermediates is already in operation at Panipat, while a Naphtha Cracker with a capacity of 800,000

tonnes of ethylene per annum, equipped with downstream polymer units is also coming up at Panipat.

In E&P, IndianOil has bagged eight oil & gas blocks and two Coal Bed Methane blocks under NELP

(New Exploration Licencing Policy) rounds in India, in consortium with other companies. It has also

acquired participating interest in two onshore blocks in Assam and Arunachal Pradesh. Overseas ventures

of the Corporation include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya, Farsi

Exploration Block in Iran, onshore farm-in arrangements in Gabon, an onland block in Nigeria and two

onshore blocks in Yemen. IndianOil has incorporated Ind-OIL Overseas Ltd. a special purpose vehicle for

acquisition of overseas E&P assets in Port Louis, Mauritius, in consortium with OIL.

In natural gas business, IndianOil is targeting sale of 2 million tonnes in 2008-09. A technology

innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to the doorstep of bulk

consumers in cryogenic containers for industrial as well as captive power applications. An LNG import

terminal is proposed to be set up at Ennore near Chennai. City gas distribution projects are in the pipeline

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in partnership with other companies.

Group Synergy

As part of inorganic growth through mergers and acquisitions, the refinery operations and marketingactivities of Assam Oil Company were vested in IndianOil in October 1981, and it became the Assam Oil

Division of IndianOil. The old units of the vintage Digboi Refinery (the first refinery in Asia) were

revamped and by 1996 it was transformed into a modern refinery of IndianOil.

In the year 2001, IndianOil acquired the Government stake and management control of stand-alone

refiners Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd.

(BRPL), substantially enhancing group refining capacity. Subsequently, capacity expansion of CPCL and

laying of the 526-km Chennai-Trichy-Madurai product pipeline helped further strengthen IndianOils

marketing in South India. Similarly, strategic turnaround initiatives taken by the IndianOil helped BRPL

come out of the red and post profits and merger with the parent company is due soon.

IndianOil acquired IBP in the year 2002 and seamlessly merged it with the parent company in 2007,

leading to the formation of a larger and more formidable marketing network. IndianOil Technologies Ltd.

was launched as a fully-owned R&D subsidiary in the year 2003 to market the Corporations intellectual

property.

IndianOil has set up three overseas subsidiaries in Sri Lanka (2003), Mauritius (2004) and the United

Arab Emirates (2006). Lanka IOC Ltd. operates about 150 petrol & diesel stations in the island nation,

besides an oil terminal and a lube blending plant at Trincomalee. IndianOil (Mauritius) Ltd. operates a

modern petroleum bulk storage terminal at Mer Rouge port, has an overall market share of nearly 20%,

and commands a 32% market share in aviation fuelling business in Mauritius. IOC Middle East FZE

oversees blending of SERVO lubricants and marketing of petroleum products and lubricants in the

Middle East, Africa and CIS countries.

In addition, IndianOil has eight active joint ventures in operation with reputed Indian and overseaspartners in the areas of aviation refuelling, city gas marketing, LPG and LNG imports and storage,

speciality lubricants and additives, terminalling services, etc.

Future Plans

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awards & recognitions

1.l IndianOil yet again clinched the top slot among the seven Indian companies

featured in the Fortune 'Global 500' listing of the world's largest companies

for 2008, improving its ranking to 105.

2.l IndianOil was the only petroleum company among 100 other industrial

giants to emerge as 'The Most Trusted Fuel Pump Brand' in ET's Brand

Equity annual survey for the year 2008. Among the 'Top 50 Service Brands'

of the country, it bagged the 7th position.

3.l IndianOil received the coveted World Petroleum Congress Excellence Award

2008 at Madrid, Spain, in the technical development category for its pathbreaking

R&D work in hydro-processing technology for Green Fuels.

4.l IndianOil won the SCOPE Gold Trophy for Environmental Excellence &

Sustainable Development and Commendation Certificate for Good

Corporate Governance for the year 2007-08.

5.l IndianOil continued to top the annual corporate listings of leading business

publications such as the Economic Times, Business India and

BusinessWorld in addition to topping the Oil & Gas category in the Financial

Express-500 listing.

6.l IndianOil has been ranked as one of Best Employers in a survey conducted

by Hewitt Associates in association with Outlook Business magazine.

7.l IndianOil bagged the prestigious BML Munjal Award for Excellence in

Learning and Development for the year 2009 and was the only award

winner in the public sector category.

8.l In recognition of its operational excellence and business solutions, IndianOil

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received a string of prestigious awards - SAP ACE AWARD (for Customer

Excellence) for the year 2008 from SAP AG for B2B application for oil

exchanges between IndianOil and BPCL SAP systems, Economics Times

Smart Workplace Award for Corporate Business Technology Centre (that

recognises companies using technology to enhance productivity at the

work place) and CIO 100 Award for Innovations in Implementing Business

Continuity for SAP R/3 Environment (for the third consecutive year).

9.l IndianOil received the 'Oil & Gas Supply Chain Excellence' award at the

Second Express, Logistics & Supply Chain Conclave (Asia-Pacific)

organised by India Times Mindscape with Business India group.

10.l Indian Express Uptime Champion Award 2008 was conferred on IndianOil's

Corporate Business Technology Centre in recognition of its well designed

IT infrastructure uptime strategy.

11.l In recognition of its Kisan Seva Kendra initiative in rural markets, IndianOil

received the prestigious 'Most Admired Retailer of the Year - Rural Retailing'

award at the India Retail Forum held in Mumbai.

12.l For the fourth consecutive year, IndianOil was conferred the Safety

Innovation Award instituted by the Safety & Quality Forum of the Institution

Of Engineers (India).

13.l Indian Oil has been conferred the 'Business Super brand 2008' status by

The Super brands Council of India.

14.l IiPM won the ISTD Training Award 2007-08 for innovative training

Practices.

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IndianOil Major Projects

IndianOil continues to lay emphasis on infrastructure development. Towards this end, a number

of schemes have been initiated with increasing emphasis on project execution in compressed

schedules as per world benchmarking standards. Schemes for improvement and increasedprofitability through debottlenecking / modifications / introduction of value added products are

being taken up in addition to grassroots facilities. Project systems have been streamlined in line

with ISO standards.

GRASSROOTS REFINERY PROJECT AT PARADIP (ORISSA)

Project Cost: Rs. 29,777.00 crore

Expected Commissioning: March-November, 2012Benefit: The project will help in partially meeting the deficit in distillates viz. LPG, Naphtha,

MS, Jet/Kero, Diesel and other products, in the eastern part of the country. The complex will

generate intermediate petrochemicals feedstock.

Brief Description: A 15 MMTPA refinery is being constructed at Paradip in Orissa. The

refinery will have, apart from a Crude and Vacuum Distillation Unit, a Hydrocracking Unit, a

Delayed Coker Unit and other secondary processing facilities. This will be the most modern

refinery in India with a nil-residue production, and the products would meet stringent

specifications. IndianOil has taken over 3344 acres of land for the project and necessaryinfrastructure development jobs prior to setting up of the main refinery are in progress.

RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT GUJARAT REFINERY


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Expected Commissioning: January, 2010

Benefit: The objectives of the project are multifold. It will ensure compliance to product

quality requirement of MS/HSD to EURO-III/IV levels, enable processing of increased

quantity of high sulphur crude, and improvement in distillate yield.

Brief Description: The project envisages setting up of a number of units like VGO-HDT,

ATF-Merox, FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU (PDS) and SRU.

IMPROVEMENT IN DIESEL QUALITY AND CAPACITY EXPANSION AT HALDIA REFINERY (WEST

BENGAL)



Benefit: Improvement in quality of HSD conforming to Euro-II/Euro-IV equivalent norms. In

addition, it will improve the distillate yield and crude processing capacity of the refinery.

Brief Description: The project comprises installation of facilities for improvement in Diesel

quality and Distillate yield (Hydrocracker) at Haldia, and capacity expansion of the Refinery

from 6 MMTPA to 7.5 MMTPA. This involves Once-through Hydrocracking Unit (OHCU),

Hydrogen Unit, Sulphur Recovery Units, revamp of Crude Distillation Units, related utilities

and offsite facilities.

NAPHTHA CRACKER AND POLYMER COMPLEX AT PANIPAT (HARYANA)


Expected Commissioning: February, 2010

Benefit: This project is the cornerstone for IndianOil's entry into petrochemicals thereby

creating a new business line for growth. For the state of Haryana, this project shall lay the

foundation for creation of a world-class petrochemicals hub, which will engender significant

industrial activity in the coming years.

Brief Description: The project envisages setting up of a Naphtha Cracker based on captive

utilisation of naphtha from Panipat, Mathura and Koyali refineries of IndianOil. With a

capacity of 800,000 MT/year of ethylene production, the Cracker Complex will have

associated units viz. hydrogenation, butadiene extraction, benzene extraction etc. besides

downstream polymer units like Swing Unit (LLDPE/HDPE), a dedicated HDPE Unit,

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Polypropylene Unit and MEG Unit.

MS QUALITY UPGRADATION PROJECT AT PANIPAT REFINERY (HARYANA)


Expected Commissioning: December, 2009

Benefit: The implementation of this project will improve the quality of MS to conform to

Euro-II/Euro-IV equivalent norms.

Brief Description: The major process units under this project are PENEX (Isomerisation),

Naphtha HTU, Reformate Splitter and FCC Gasoline Desulpurisation Unit.

FCC GASOLINE DESULPHURISATION UNIT AT MATHURA REFINERY (UTTAR PRADESH)

Project Cost: Rs. 348.00 crore



Euro-IV equivalent norms.

Brief Description: In this project a FCC Gasoline Desulpurisation Unit will be installed.

MS QUALITY UPGRADATION PROJECT BARAUNI REFINERY (BIHAR)


Expected Commissioning: June, 2010


Euro-III equivalent norms.

Brief Description: The major process units under this project are Isomerisation, Naphtha

Hydrotreater, Reformate Splitter, FCC Gasoline Desulpurisation Unit and Hydrogen

Generation Unit.

MS QUALITY UPGRADATION PROJECT AT GUWAHATI REFINERY (ASSAM)




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Brief Description: The major process units under this project are Isomerisation, Light Naphtha

Splitter, Naphtha Hydrotreater and Indmax Gasoline Splitter.

MS QUALITY UPGRADATION PROJECT AT DIGBOI REFINERY (ASSAM)





Brief Description: The major process units under this project are Isomerisation, Naphtha

Splitter, Naphtha Hydrotreater and Reformate Splitter.

DADRI-PANIPAT R-LNG SPUR PIPELINE



Benefit: The 132 km long 30 inch diameter spurline carrying regassified LNG (R-LNG) will

stretch from GAIL Indias Dadri terminal in UP to Panipat.

Brief Description: The proposed R-LNG pipeline will provide for an economical means of

feeding natural gas to Panipat refinery.

PANIPAT REFINERY EXPANSION FROM 12 MMTPA TO 15 MMTPA


Expected Commissioning: December, 2009 / August, 2010

Benefit: To meet the growing deficit of petroleum products in the high demand Northwest

region of India.

Brief Description: The project consists of capacity revamp of Crude and Vacuum Distillation

Units (CDU / VDU), Once through Hydrocracking Unit (OHCU), Delayed Coking Unit, and

installation of second stage reactors in Diesel Hydrotreating Unit (DHDT).

CHENNAI - BANGALORE PRODUCT PIPELINE

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Expected Commissioning: December, 2009

Benefit: The pipeline will facilitate effective evacuation of products from CPCL refinery in

Chennai and ensure uninterrupted, regular and economical transportation of petroleum

products to Bangalore-fed areas in a cost-effective manner.

Brief Description: Project consists of laying 14/12-inch diameter 290 km long product

pipeline from CPCL refinery, Chennai to existing TOP at Devanagonthi (Bangalore).

BUSINESS

Refining

Born from the vision of achieving self-reliance in oil refining and marketing for the nation,

IndianOil has gathered a luminous legacy of more than 100 years of accumulated

experiences in all areas of petroleum refining by taking into its fold, the Digboi Refinery

commissioned in 1901.

IndianOil controls 10 of Indias 20 refineries. The group refining capacity is 60.2 million

metric tonnes per annum (MMTPA) or 1.2 million barrels per day -the largest share among

refining companies in India. It accounts for 33.8% share of national refining capacity.

The strength of IndianOil springs from its experience of operating the largest number of

refineries in India and adapting to a variety of refining processes along the way. The basket

of technologies, which are in operation in IndianOil refineries include:Atmospheric/Vacuum Distillation; Distillate FCC/Resid FCC; Hydrocracking; Catalytic

Reforming, Hydrogen Generation; Delayed Coking; Lube Processing Units; Visbreaking;

Merox Treatment; Hydro-Desulphirisation of Kerosene&Gasoil streams; Sulphur recovery;

Dewaxing, Wax Hydro finishing; Coke Calcining, etc.

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The Corporation has commissioned several grassroot refineries and modern process units.

Procedures for commissioning and start-up of individual units and the refinery have been

well laid out and enshrined in various customized operating manuals, which are continually

updated.

IndianOil refineries have an ambitious growth plan with an outlay of about Rs. 55,000 crore

for capacity augmentation, de-bottlenecking, bottom upgradation and quality upgradation.

Major projects under implementation include a 15 MMTPA grassroots refinery at Paradip,

Orissa, Naphtha Cracker and Polymer Complex at Panipat, Panipat Refinery expansion

from 12 MMTPA to 15 MMTPA, among others.

In addition, petrol quality upgradation projects are under implementation at Panipat,

Mathura, Barauni, Guwahati and Digboi refineries proposed to be completed by the end of

2009.

On the environment front, all IndianOil refineries fully comply with the statutory

requirements. Several Clean Development Mechanism projects have also been initiated. To

address concerns on safety at the work place, a number of steps were taken during the year,

resulting in reduction of the frequency of accidents.

Innovative strategies and knowledge-sharing are the tools available for converting

challenges into opportunities for sustained organisational growth. With strategies and plans

for several value-added projects in place, IndianOil refineries will continue to play a leading

role in the downstream hydrocarbon sector for meeting the rising energy needs of our

country.

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Pipelines

Indian Oil Corporation Ltd. operates a network of 10329 km long crude oil and petroleumproduct pipelines with a capacity of 71.60 million metric tonnes per annum. Cross-country

pipelines are globally recognised as the safest, cost-effective, energy-efficient and environment-

friendly mode for transportation of crude oil and petroleum products.

During the year 2008-09 IndianOils crude oil pipelines registered the throughput of 38.46

million metric tonnes. Corporations largest crude oil handling facility at Vadinar marked the

berthing of 4000th tanker since inception. The terminal operates two offshore Single Point

Mooring (SPM) systems, to feed Koyali, Mathura and Panipat refineries.

Raising efficiency and emerging as the least-cost supplier, IndianOil has added the 330-km

Paradip-Haldia crude oil pipeline (PHCPL) to its bustling pipeline network during the year. The

PHCPL system has a Single Point Mooring installed 20-km off the Paradip coast. With this, it is

now able to pump crude oil from Very Large Crude Carriers to the tank-farm set up onshore and

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onward to Haldia through the pipeline. The Pipeline has replaced the earlier system of receipt of

crude oil at Haldia port through smaller tankers.

On the west coast, the Mundra-Panipat pipeline is being further augmented to transport an

additional 3 Million Metric Tonne Per Annum (MMTPA) of crude oil to Panipat Refinery, under

expansion from 12 to 15 MMTPA. Additional requirement of crude oil for Koyali, Mathura and

Panipat refineries is planned to be met by de-bottlenecking and augmenting Salaya-Mathura

Pipeline system.

IndianOils product pipelines, connecting its refineries directly to high-consumption centres,

achieved a throughput of 20.92 million tonnes during 2008-09. IndianOil has now joined the

select group of companies in India which owns and operates LPG pipelines by building its first

such cross-country facility linking Panipat with Jalandhar. Apart from providing better logistics,

this pipeline can transport 700,000 tonnes of LPG from Kohand near Panipat refinery to

IndianOils bottling plants at Jalandhar and Nabha in Punjab. The pipeline will also

simultaneously to meet the requirement of LPG at Una and Baddi in Himachal Pradesh and at

Jammu and Leh in J&K.

Two pipelines linking the major airports of India have been commissioned during the year to

transport Aviation Turbine Fuel to these airports. The 36 km long pipeline from existing

Devangonthi terminal to New Bengaluru International Airport, Devanhalli, Bengaluru was

commissioned in October 2008. The 95 km long ATF pipeline from CPCL to Chennai AFS was

commissioned in December 2008.

In its continuous efforts of expanding the network IndianOil is implementing 290 km long

product pipeline from Chennai to Bangalore to facilitate cost effective positioning of products at

consumption centre located in and around Bangalore and to strengthen product positioning

capabilities of CPCL Refinery. IndianOil is also implementing a 217 km long branch pipeline

from Koyali-Sanganer Pipeline at Viramgam to existing scrapper station at Churwa along with

use of a 14 km long existing pipeline from Churwa to Kandla.

Marketing

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In today's dynamic business environment, innovation through a sustained process of Research &

Development (R&D) is the only cutting edge tool for organisations to thrive. With emphasis on

development and speedy commercialisation of globally competitive products, processes and

technologies, the focus has now shifted from R&D to RD&D (Research, Development &

Deployment).

INDMAX, a hallmark technology developed by the Centre for maximisation of LPG and light

distillates from refinery residue, has been selected by IndianOil for setting up a 4 million metric

tonnes per annum (MMTPA) INDMAX unit as a part of the 15 MMTPA integrated refinery-

cum-petrochemicals complex at Paradip, as well as at Bongaigaon Refinery & Petrochemicals

Ltd. (BRPL). The Centre has also licenced its Diesel Hydrotreating technology to these two

refineries. These successes have catapulted IndianOil R&D into the elite league of multinational

technology licensors.

Standing in the company of six worldwide technology holders for Marine Oils, with the second

global OEM (original equipment manufacturer) approval by Wartsila, Switzerland, IndianOil's

SERVO Marine Oils are now technically qualified to cater to the lubrication requirements of

more than 90% of the world's marine engine population. In the power-generation segment, the

newly developed SERVO Marine K-Series was approved by Yanmar Co. Ltd. of Japan for use in

their engines operating on distillate fuels.

The R&D Centre continues to provide significant support to the IndianOil Group refineries in

product quality improvement, evaluation of catalysts and additives, health assessment of

catalysts, material failure analysis, troubleshooting and in improving overall efficiency of

operations. In-house developed FCC models are not only being used in IndianOil refineries for

process optimisation but a similar model has also been sold to a multinational company.

IndianOil has formed a joint venture company, Indo Cat Pvt. Ltd., with Intercat, USA, for

manufacturing 15,000 tonnes per annum of FCC (fluidised catalytic cracking) catalysts &

additives in India, for catering to rising global demand.

As a step towards ensuring energy security for the nation, IndianOil has launched several

initiatives to exploit alternative sources of energy such as Hydrogen and Bio-fuels. Subsequent to

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commissioning India's first experimental H-CNG (Hydrogen-Compressed Natural Gas)

dispensing unit at the R&D Centre campus at Faridabad, demonstration projects are underway on

use of H-CNG blends in heavy and light vehicles. IndianOil is also setting up India's first

commercial H-CNG dispensing station at one of its retail outlets in Delhi in the year 2008 for

fuelling experimental vehicles running on H-CNG blends as well as on pure Hydrogen. IndianOil

R&D is also working on production, storage, transportation, distribution and commercialisation

of Hydrogen as an alternative fuel.

In Bio-fuels, besides spearheading commercialisation of Ethanol-Blended Petrol in the country,

IndianOil has been in the forefront of technology development for Bio-diesel production from

various edible and non-edible oils and its application in vehicles. Pioneering studies by IndiaOil's

R&D Centre established that Bio-diesel produced from Jatropha seeds were at par with that

produced from vegetable oils. In the past few years, the R&D Centre has studied the entire value

chain of Bio-diesel, starting from Jatropha plantation to field trials on passenger cars, light

commercial vehicles and railway locos in collaboration with several vehicle manufacturers,

railways and state transport undertakings.

IndianOil, along with its subsidiary IndianOil Technologies Ltd., has been engaged in successful

marketing of in-house developed technologies, technical services and training not only in India

but abroad too.

IndianOil has, till date, invested close to Rs. 1,000 crore in setting up world-class facilities at its

R&D Centre for building world-class capabilities in analytical services, engines, test rigs and

pilot plants for all major refinery processes, catalyst characterisation & development, etc. It plans

to invest about Rs. 500 crore during the period 2007-12 to maintain its leadership in downstream

R&D activities in the hydrocarbon sector. While continuing with cutting edge R&D in the core

areas of lubricants formulations, refinery process technologies and pipeline transportation, the

thrust would now be on commercialising the developed technologies and initiating research in

new frontier areas such as petrochemicals, residue gassification, coal-to-liquid, gas-to-liquid,

alternative fuels, synthetic lubricants, nano-technology, etc. Through these R&D initiatives,

IndianOil will continuously enhance value for all its stakeholders

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natural gas, exploration&production, bio-fuels, etc., and with the passage of time, its capability

to successfully establish itself in new areas of business is slowly but surely strengthening.

Gas market in India is slowly opening up and in the next 5- 10 years time, we are going to

witness enhanced availability of Gas not only from imported sources but also from Indigenous

sources.

Natural gas business presents immense opportunities for IndianOil and has already started

generating significant revenues for the Corporation. The Corporation is in the process of

sourcing more LNG and expanding its customer base. Within the gas business, city gas

distribution is seen as a focus area for rapid growth. Green Gas Ltd., IndianOil's joint venture

with GAIL (India) Ltd., is operational in Agra and Lucknow and plans to expand to other cities

in western UP. IndianOil is also in the process of forming more joint ventures for city gas

distribution in other parts of the country.

As a supplier, IndianOil would be completely responsible for delivery of gas to the customers

premises. The transportation services of the company engaged in transportation of gas would be

hired to ensure deliveries. World over this model is in use wherein through one transportation

system, multiple suppliers operate.

IndianOil has inherent strengths and tremendous business capabilities spread over all parts of the

country. Its current business position and relationship with existing customers can be leveraged

significantly to position itself as a gas supplier with a back up comfort of liquid fuels, which no

other company can offer so far. Gas marketing is going to be a focused activity in future.

E & P

Forays into E & PIn keeping with the dynamic business environment, IndianOil's business development initiatives

continue to be driven by the emerging opportunities and guided by its corporate vision of

becoming a diversified, transnational, integrated energy company. Its business strategy focusses

primarily on expansion across the hydrocarbon value chain, both within and outside the country,

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while simultaneously revisiting its strategic plans and undertaking mid-course corrections,

wherever necessary.

To enhance upstream integration, IndianOil has been pursuing exploration & production

activities both within and outside the country in collaboration with consortium partners.

Recently, IndianOil was associated with two successful discoveries in oil exploration blocks, one

each in India and Iran. Commercial appraisal of these blocks is underway. IndianOil also farmed

into an exploration block in Gabon along with Oil India Ltd. (OIL) as the operator. In addition,

the IndianOil-OIL combine acquired participating interest in a block in Nigeria. The

Corporation, in consortium with OIL, Kuwait Energy and Medco Energi of Indonesia also

succeeded in acquiring participating interest in two exploration blocks in Yemen, awarded

through international bidding.

At home, IndianOil and its consortium partners were awarded two exploration blocks in Mumbai

offshore in Round-VI of bidding under the New Exploration Licencing Policy (NELP). With

this, IndianOil now has an upstream portfolio consisting of participatory interest in eight blocks

under NELP and two blocks under CBM, in addition to two farm-in blocks in northeast India and

seven blocks overseas.

Oil & gas will continue to be the principal energy source in the growing economy. The years

ahead, therefore, hold great opportunities and challenges. Guided by its experience and inherent

spirit, IndianOil shall overcome all the challenges as it has been consistently doing in the past,

and scale up its operations to capitalise on all opportunities and realise its corporate vision.

Initiatives

IndianOil adopts Integrity Pact

IndianOil has entered into a Memorandum of Understanding (MoU) with Transparency

International India (TII) in January 2008, for implementing an Integrity Pact Programme

focussed on enhancing transparency in its business transactions, contracts and procurement

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processes. IndianOil believes in total transparency, integrity and accountability in its functioning.

It values its business relationships with its numerous domestic and international contractors and

vendors of goods and services and is committed to dealing with them in a fair and transparent

manner by maintaining the highest ethical standards in its transactions with them.

The MoU was signed by Mr. Sarthak Behuria, Chairman, IndianOil, and Admiral (Retd.) R H

Tahiliani, former Chief of Naval Staff and Chairman of TII. Under the MoU, IndianOil is

committed to implementing the Integrity Pact in all its major procurement and work contract

activities. Four Independent External Monitors nominated by TII in consultation with the Central

Vigilance Commission (CVC) shall monitor the activities. The Integrity Pact would strengthen

established systems and procedures by creating trust and would have the full support of the

Central Vigilance Commission.

Transparency International India, launched in 1997, is the Indian Chapter of Berlin-based

Transparency International, which has presence in 93 countries. The Integrity Pact Programme

was launched in the mid-90s by TI to create 'islands of Integrity' through a voluntary contract

between the buyer and the seller to eliminate unfair practices. It establishes mutual contractual

rights and obligations and brings transparency and enhances the credibility of the organizations.

Environment

IndianOils Green Agenda

As an active partner of the Global Compact Programme of the United Nations, IndianOil is fully

focussed on sustainable development. As a dominant player, the Corporation recognises

protection of environment as a core commitment of its business.

As part of this commitment, all operating units and installations of IndianOil have a

comprehensive safety, health & environment management system in place. The facilities are

periodically reviewed and upgraded from time to time for better performance.

All IndianOil refineries fully comply with the prescribed environmental standards and

incorporate state-of-the-art effluent treatment technologies. Sustained efforts are being

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made to further improve the standards by introducing new state-of-the-art technologies

further improve the existing standards and facilities.

The environment management systems of all IndianOil refineries, pipeline Installations

and major marketing installations/terminals are certified to ISO-14001 standards.

All IndianOil refineries are accredited for Occupational Health&Safety Assessment

Series (OHSAS-18001). All refineries are also rated under International Safety Rating

System (ISRS). Panipat and Gujarat Refineries are rated Level 9 in the scale of 1 to 10.

All refineries have been provided with full-fledged effluent treatment plants consisting of

physical, chemical, biological&tertiary treatment facilities. Oilivorous-S&Oilivorous-

A technologies are being used for the treatment of oily sludge and acid tar respectively.

The treated effluent is far superior to the stipulated MINAS quality and quantum

standards. Treated effluent is being reused to the extent of 65-70% in the refinery units.

Panipat Refinery continues to maintain zero discharge since commissioning in 1998.

IndianOil refineries have adopted various measures for control of gaseous emissions.

These include use of low-sulphur fuel oil, desulphurisation of refinery fuel gas, tall stacks

for better dispersion of flue gases, advanced process control systems; and energy

conservation measures to reduce fuel consumption.

The sulphur dioxide emissions at IndianOil Refineries are well below the limits

prescribed by the Ministry of Environment&Forests and State Pollution Control Boards.

Ambient air monitoring stations with automatic continuous monitoring instruments are

provided at all the refineries. In particular, Mathura Refinery has set up three ambient air

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

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

quality of the surrounding areas so that the ambient air quality remains within the

stipulated limits prescribed for sensitive areas.

Most IndianOil refineries have commissioned secondary processing units for improvingfuel quality and reducing emissions. Some of the recent commissionings include

Hydrogen unit and Diesel Hydrotreater unit at Mathura refinery and Motor Spirit Quality

projects at Mathura and Haldia refineries. Sulphur recovery units have been installed at

all the refineries.

Green Initiatives

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Low Sulphur (0.5%) Diesel was introduced in metros from April 1996.

Extra-low Sulphur (0.25%) Diesel was introduced in the eco-sensitive Taj Trapezium

area from September 1996, in Delhi from October 1997, and across the country from 1st

January 2000.

Diesel with 0.05% sulphur content was introduced in the metros in 2001.

Unleaded Motor Sprit (petrol or Gasoline) was made available all over the country since

February 1, 2000.

Green fuels (petrol and diesel) conforming to Euro-III emission norms have already been

introduced in 13 cities/states; the rest of the country is getting BS-II fuels.

IndianOil is fully geared to meet the target of reaching EURO-III compliant fuels to all

parts of the country by the year 2010; major cities will upgrade to Euro-IV compliantfuels by that time.

IndianOil has invested about Rs. 7,000 crore so far in green fuel projects at its refineries;

ongoing projects account for a further Rs. 5,000 crore.

Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units

are coming up at three more refineries.

Diesel quality improvement facilities in place at all seven IndianOil refineries, several

more green fuel projects are under implementation or on the anvil.

The R&D Centre of IndianOil is engaged in the formulations of eco-friendly

biodegradable lube formulations.

The Centre has been certified under ISO-14000:1996 for environment management

systems.

Details of Indian Oil Corporation Limited Scholarships

The 450 Scholarships provided by the Indian Oil Corporation Limited are broken under

the following heads:

250 scholarships for 10+/ ITI students on a zonal basis @ Rs. 1000/- per month for two

years.

100 scholarships for Engineering students @ Rs. 2000/- per month for four years.

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40 scholarships for MBBS students @ Rs. 2000/- per month for four years.

60 scholarships for MBBS students @ Rs. 2000/- per month for two years.

Eligibility criteria for Indian Oil Corporation Limited Scholarships

Students pursuing full time courses in the above mentioned streams and studying in Schools /

Colleges / Institutions / Universities recognized by MCI /AICTE / State Education Boards / State

Govt./ ICSE / CBSE / Central Govt./Association of Indian Universities, are eligible to apply for

the Indian Oil Corporation Limited Scholarships. The minimum eligibility criteria for application

is listed below:

For 10+ / ITI scholarships, students securing a minimum of 65% marks in their 10th

standard examination or equivalent may apply.

For Engineering scholarships, students securing a minimum of 65% marks in their 12th

standard examination or equivalent and having a confirmed admission into a full time

engineering degree course may apply.

For MBBS scholarships, students securing a minimum of 65% marks in their 12th

standard examination or equivalent and having a confirmed admission into an MBBS

degree course may apply.

For MBA scholarships, students securing a minimum of 65% marks in their graduation

examination or equivalent and having a confirmed admission into an MBA degree course

may apply.

In all cases, the gross joint income of the family of the candidate from all sources should not

exceed Rs. 1,00,000/- (Rupees One Lakh only).

Reservation and Age Limit for Indian Oil Corporation Limited Scholarships

For application to the Indian Oil Corporation Limited Scholarships, the minimum and maximum

age limits are 15 years and 30 years respectively. Relaxation in the upper age limit is 3 years for

OBC candidates, 5 years for SC/ST candidates and 10 years for physically challenged /

physically handicapped candidates. 50% of the scholarships are reserved for SC/ST & OBC

candidates. In each category, 25% of scholarships are reserved for girl students and 10% for

physically challenged / physically handicapped students. Only those listed in the central

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government's OBC list will be considered against OBC quota.

Application for Indian Oil Corporation Limited Scholarships:

Applications for Indian Oil Corporation Limited Scholarships are to be made as per the proforma

given by the IOCL. The Scholarship Scheme is formally announced through newspaper

advertisements inviting applications on September 1, every year, coinciding with the Indian Oil

day. A period of 30 days is given to students for submission of their application forms and

relevant documents.

IndianOil Academic Scholarships

Indian Oil Corporation Limited - India's largest commercial enterprise and the No.1 Indian

Company in Fortune 'Global 500' listing - awards 450 Scholarships for meritorious students all

over India, under the IndianOil Scholarships Scheme for each academic year.

As part of IndianOil's social responsibility programme, the scheme provides for attractive

scholarships to bright students selected on 'merit-cum-means' basis. For each academic year, 450

scholarships covering the first year students of 10+ / ITI, Engineering, MBBS and MBA, have

been formally announced through newspaper advertisements inviting applications under the

IndianOil Scholarships Scheme

As part of the scheme, special encouragement is being given to girl students, physically

challenged students, and students from J & K as well as the Northeast States.

IndianOil Sports Scholarship

Nurturing Sportspersons Through Scholarships

The objective of this scheme is to award IndianOil Sports Scholarships to promising young

players with a view to encourage talent and create a pool of sportspersons from whom to select

sport appointees to the Corporation.

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Sports scholarships are given to upcoming junior players in the age group of 15-18 years and in

the case of potential/talented players below 15 years but above 14 years. In team games, it is

given to State level players in the team and in other games based on national ranking in the

respective category. The duration of the sports scholarships is for a period of three years subject

to performance review every year. The games and categories for IndianOil sports scholarship are

as follows:

Athletics Boys&Girls

Badminton Boys&Girls

Carrom Boys&Girls

Chess Boys

Cricket Boys

Golf Boys

Hockey Boys

Table Tennis Boys&Girls

Tennis Boys

Snooker & Billiards Boys

Apart from catching them young, IndianOil pursues a policy of providing employment to

national and international sports persons so that they can be assured of their financial safety and

concentrate fully for earning glories for the country.

Auto fuels

AutoGas

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AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from

natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum

gases like propane and butane. The higher energy content in this fuel results in a 10% reduction

of CO2 emission as compared to MS.

AutoGas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when

moderate pressure is applied or when the temperature is sufficiently reduced. This property

makes the fuel an ideal energy source for a wide range of applications, as it can be easily

condensed, packaged, stored and utilised. When the pressure is released, the liquid makes up

about 250 times its volume as gas, so large amounts of energy can be stored and transported

compactly.

The use of LPG as an automotive fuel has become legal in India with effect from April 24, 2000,

albeit within the prescribed safety terms and conditions. Hitherto, the thousands of LPG vehicles

running in various cities have been doing so illegally by using domestic LPG cylinders, a very

unsafe practice. Using domestic LPG cylinders in automobiles is still illegal.

The fuel is marketed by IndianOil under the brand name AutoGas

IndianOil has setup 232 Auto LPG Dispensing Stations (ALDS) covering 124 cities across

India.

AutoGas impacts greenhouse emissions less than any other fossil fuel when measured through

the total fuel cycle. Conversion of petrol to AutoGas helps substantially reduce air pollution

caused by vehicular emissions.

The saving on account of conversion to AutoGas in comparison to petrol is about 35-40%. Low

filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to

AutoGas.

XTRAPREMIUM

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XTRAPREMIUM Petrol is Indias leading branded petrol boosted with new generation

multifunctional additives known as friction busters that prevents combustion chamber deposits.

XTRAPREMIUM is custom designed to deliver higher mileage, more power, better pick up,

faster acceleration, enhanced engine cleanliness and lower emissions.

XTRAPREMIUM is a sought after fuel among discerning customers who own new generation,

high-performance cars who have endorsed its unmatched performance.

In terms of fuel system cleanliness XTRAPREMIUM is hugely superior to any other alternative

fuel in this segment, with the additional benefit of fuel efficiency through the friction modifier.

The additive package contains proprietary components including a detergent dispersant, a

friction modifier and a corrosion inhibitor, as a perfectly optimized formulation in synthetic

carrier oil. The detergent dispersant cleans the fuel system and the friction modifier drastically

reduces friction in the non-lubricated engine area contributing to fuel economy.

XTRAMILE

IndianOils XTRAMILE Super Diesel, the leader in the branded diesel segment is blended with

world-class Multi Functional Fuel Additives (MFA). Commercial vehicle owners choose

XTRAMILE because they see a clear value benefit in terms of superior mileage, lower

maintenance costs and improved engine protection. A growing section of customers who own

diesel automobiles, both in the lifestyle and passenger category, prefer XTRAMILE as a fuel

for its added and enhanced performance. XTRAMILE has brought in a huge savings in the high

mileage commercial vehicle segment. Transport fleets that operate a large number of trucks

crisscrossing the country are using XTRAMILE to not only obtain a higher mileage but also for

low maintenance costs.

Petrol/Diesel StationsPetrol/Diesel Stations

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IndianOil was the pioneer in launching state-of-the-art petrol stations with digital dispensers,

modern canopies, standardized signage and efficient lighting systems way back in the mid-

1990s. The new retail-branding template introduced by IndianOil set in motion a revolution in

the petroleum retail business in the country. IndianOil pioneered differentiated offerings to meet

the diverse needs of its customers, be it through large format Swagat outlets for the highway

traffic, Kisan Seva Kendras for the rural consumer, or even the XTRAcare outlets for the

discerning urban customer.

XTRAcare

IndianOil's XTRAcare E branded full service petrol stations is a result of a series of processes in

retail design, product and service upgradation, capability training, automation, loyalty programs,

retail site management techniques all benchmarked to global standards. Today XTRAcare petrol

stations are synonymous in India with world-class petroleum retailing.

Complete vehicle care begins at an IndianOil XTRAcare petrol pump. From branded auto fuels,

to speedy windshield wipes to quick oil checks and snappy air service, you will experience the

superior services that will leave your vehicle feeling special.

IndianOil's XTRAcare pump is a revolutionary initiative in petroleum retailing that combines the

best bouquet of quality, quantity and warm service, with a guarantee to make your every visit a

truly rejuvenating experience. It is benchmarked to international standards of quality & quantity,

housekeeping, maintenance and customer service certified to globally renowned benchmarks

certified by the globally renowned agency - M/s Bureau Veritas (BV), amongst others.

The maintenance of the equipment at the XTRAcare outlets is undertaken by Original Equipment

Manufacturers under a unique 'Equipment Quality Outsourcing' system.

While the industry standard is to take samples on a quarterly basis, IndianOil has moved several

steps ahead by introducing fortnightly random sampling with specific importance given to RON

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

The surveillance audits by BV are being done on a more comprehensive basis. The scale and

spread of XTRAcare pumps is also an industry record.

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With automated facilities, highly trained attendants and forecourt managers attuned to the needs

of your car an XTRAcare pumps offers the full range of branded fuels-XTRAPREMIUM Petrol

and XTRAMILE Diesel as well as world-class SERVO lubricants and a comprehensive loyalty

programme.

The non-fuel activities get a major fillip at the IndianOil XTRAcare and a wide range of loyalty

programs like XTRAREWARDS, XTRAPOWER and co-branded cards give customers added

benefits (available at present at select petrol pumps). The cutting edge technology introduced at

XTRAcare pumps includes automatic tank level gauges, temperature sensors, density

measurement sensors, back-office server with dispensing unit controls, customer database, etc.

Another vital differentiator in the IndianOil XTRAcare is the importance given to the frontline

customer attendants. They are trained at three levels of competencies--customer service, personal

hygiene/grooming and customer complaint redressals. XTRAcare dealers also undergo extensive

training on 'Retail Site Business Management' a unique training module incorporating best global

practices in retail sales management.

Kisan Seva Kendra

Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by IndianOil to cater

to the needs of the customers' in the rural segment. Today IndianOil's KSKs have emerged as a

dominant player in the rural markets, riding on the rapid growth of upcoming second and third

tier roads in the rural areas. The KSKs come with a fresh perspective enabling dealers to tap the

huge demand driven in by consumers there. In addition, non-fuel retail facilities like convenio

stores have been added to the KSKs selling pesticides, vegetables, banking products and

stationery items. IndianOil has also tied up with Indo Gulf for fertilizers, National Seeds

Corporation for marketing seeds and agricultural inputs as well as alliances with Nabard,

Oriental Bank of Commerce and Bank of Baroda for banking products. At some KSKs even

internet kiosks, communication facilities, etc. have been installed. Business alliances have been

Documents

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